Huafa Group plans to subscribe for 3 billion yuan in Huafa shares to specific investors through a private placement.

Hua Fa Group announced that it plans to subscribe for A shares of Hua Fa shares to specific investors with cash. The effective completion of this issue of A-shares to specific investors requires approval from the relevant state-owned asset regulatory authorities, approval from the Hua Fa shareholders' meeting, approval from the Shanghai Stock Exchange, and approval from the China Securities Regulatory Commission. The acquisition of A shares of Hua Fa shares by specific investors will result in the acquirer owning more than 30% of the equity shares issued by the listed company.