Tsinghua Tongfang Co Ltd to Issue New Shares for Equity Acquisition and Fund Raising

Tsinghua Tongfang Co Ltd announced that it will issue A shares of common stock with par value of RMB 1 per share at RMB 7.02 per share to 14 shareholders of a Beijing-based information technology company (Company A), including Du Guoying, Jiang Yufei, two Beijing-based venture capital investment companies and a Shenzhen-based investment management company, so as to acquire a combined 75.27265% stake in Company A. The Company will purchase the remaining 24.72735% stake in Company A from a Beijing-based investment group and Feng Jichao in cash. In addition, the Company will issue new shares at not less than RMB 6.32 per share to up to 10 investors in private placement to raise funds.