FUTAIHUA PRECISION cancels obtaining fixed asset.

Subject: Subsidiary FUTAIHUA PRECISION ELECTRONICS (ZHENGZHOU) CO.,LTD. cancels obtaining fixed asset.

Date of events:2016/05/19

Contents:

1.Date of occurrence of the event:2016/05/19

2.Date of the original public announcement and reporting:2016/01/06

3.Summary of the content originally publicly announced and reported:

(1)Name and nature of the subject matter :61-62F, the North Tower,"Zhengdong,Greenland Center",Intersection of East Jinshui Road and South Dongfeng Road

(2)Transaction volume unit price, total transaction price:

Transaction volume: 6,020.76㎡, convert into 1,821.28

Ping Unit price: RMB15,500

Total transaction price:RMB93,321,780

(3)Counterparty to the trade and its relationship with the company :

Henan Greenland Square Property Development Co. Ltd;None

4.Reason for, and major content of, the change:

As the real estate industry is going to replace business tax with

a value-added tax, the company has dicided to obtain the fixed

asset through an entity outside of the bonded area (Lankao Yuzhan).

5.Effect on the Company's finances and business after the change:

To lower cost and save tax.