Shanghai Highly (Group) Co., Ltd. announced a private placement of not more than 264,990,076 common shares for gross proceeds of not more than CNY 1,594,000,000 on October 20, 2020. The transaction will include participation from no more than 35 investors including the existing shareholder Shanghai Electric (Group) Corporation which intends to subscribe for no less than 27.07% of the actual issuance of A shares in this transaction. The shares to be issued in the transaction will be subject to a lock-up period of 18 months from the date of issuance for Shanghai Electric (Group) Corporation and 6 months from the date of issuance for other investors. The transaction has been approved by the board of directors of the company at the 3rd meeting of the 9th directorate and is still subject to approval from the state-owned assets supervision and administration authority, the shareholders of the company at the 3rd special shareholders' meeting of 2020 to be held on November 6, 2020 and the China Securities Regulatory Commission. The transaction will be valid for 12 months since approval from the shareholders’ meeting of the company.