Shenzhen Auto Electric Power Plant Co.,Ltd announced a private placement of up to 66,179,220 A shares for the gross proceeds of up to CNY 800 million on June 28, 2020. The transaction will include participation from up to 35 specific investors including Liao Xiaoxia the actual controller of the company for up to CNY 30 million. The company has signed share subscription agreement with Liao Xiaoxia.

The pricing base date for shares is the first day of the offering period, and the offering price is not less than 80% of the average stock price of the company 20 trading days before the pricing base date. The shares issued to Liao Xiaoxia carry a hold period of 18 months from the closing date and shares subscribed by other investors carry a hold period of 6 months from the closing date. The transaction has been approved by fourth meeting of the company's fifth board of directors and subject to be reviewed and approved by the company's general meeting of shareholders and reported to the China Securities Regulatory Commission and other relevant approval authorities for approval.