Guangzhou KDT Machinery Co.,Ltd. announced that it has entered into a subscription agreement to issue not exceeding 90,906,009 A shares at a par value of CNY 1 each share for gross proceeds of not exceeding CNY 1,000,000,000 on March 9, 2022. The pricing base date of this non-public offering is the first day of the issue period, and the issue price is not less than 80% of the average price of the company's stocks 20 trading days before the first day of the issue period. The transaction will include participation from not more than 35 special investors including returning individual investor, Mr. Li Maohong for no less than CNY 150,000,000 and no more than CNY 400,000,000 and will subject to lock-up period of 12 months if the increased holdings of no more than 2% before the end of this offering, the shares subscribed by me in this non-public offering will have 18 months lock up period and on the contrary, if more than 2%, the lock-up period will be 36 months.

The lock-up period for the other investors is 6 months. The resolution of this issuance is valid for 12 months from the date of deliberation and approval by the company's shareholders meeting. The transaction has been approved at the 11th meeting of the 4th directorate of the company and is subject to approval of company's shareholders meeting, and the China Securities Regulatory Commission.