Phoenix shares: planning to issue shares to acquire 75% equity of Baiyin Huaxin and raise funds

Fengxing announced that it plans to purchase 75% equity of Baiyin Huaxin held by Guangdong Huaxin through issuing shares, and also plans to raise funds from up to 35 specific investors. This transaction is expected to constitute a major asset reorganization. As Guangdong Huaxin is an indirectly controlling shareholder of the company, this transaction constitutes a related party transaction and will not result in a change in control. As of now, the intermediary has conducted due diligence, but the audit and evaluation of the target assets are not completed, the valuation is not determined, the parties have not signed a formal agreement, and there is a high level of uncertainty.