Shenglong Co., Ltd.: Issued 215 million shares at a price of 7.82 RMB per share

Shenglong Co., Ltd.’s announcement: After negotiations between the issuer and the sponsor (lead underwriter), the number of new shares to be issued in this offering is 215 million shares. All of them are newly issued publicly offered shares, and no transfer of old shares is arranged. After this public offering, the company’s total share capital will be 1.84B shares. The number of shares being publicly offered in this offering accounts for approximately 11.71% of the company’s total share capital after this public offering. The issue price of 7.82 yuan per share corresponds to a diluted static price-to-earnings ratio (based on the lower of the issuer’s attributable net profit before and after the deduction of non-recurring gains and losses for 2024) of 19.11 times, which is lower than the 39.85 times average static price-to-earnings ratio for the most recent month for companies in the same industry published by CICC China Securities Index Co., Ltd., and also lower than the 27.4 times average static price-to-earnings ratio for comparable listed companies in the same industry (based on the lower of attributable net profit before and after the deduction of non-recurring gains and losses). However, there is still a risk that a future decline in the issuer’s share price could cause losses to investors.