Fuzhou Huahong Intelligent Technology Co.,Ltd entered into a share subscription agreement for the placement of 7,500,000 common shares at an issue price of CNY 4 per share for gross proceeds of CNY 30,000,000 and entered into a share transfer agreement for the placement of 8,750,000 common shares at an issue price of CNY 4 per share for gross proceeds of CNY 35,000,000 for aggregate gross proceeds of CNY 65,000,000 on September 8, 2023. The transaction will include participation from new investor, Keli Sensing Technology (Ningbo) Co.,Ltd. for 16,250,000 shares for 38.240% stake. 8,750,000 shares issued under the share transfer agreement have a hold period of 12 months from the issue completion date.

The transaction is subject to approval of National Equities Exchange and Quotations through its issuance of no-objection letter.