Sinmag Equipment Corporation announced a private placement of 13,055,090 shares at a price of CNY 3.7 per share for gross proceeds of CNY 48,303,833 on June 10, 2022. The shares carries par value of CNY 1 per share. The transaction will include participation from existing investor, Sinmag Equipment (China) Co.,Ltd. and 13,055,090 shares have been subscribed by the employees. The company will give up all subscriptions for this cash capital increase, which will be subscribed by employees of the subsidiary Sinmag Equipment (China) Co., Ltd.. After the completion of the cash capital increase, the company's shareholding in Sinmag Equipment (China) Co., Ltd. decreased from 99.99% to 96.38%.The transaction has been approved by the board of directors.