Indirect PRC investment,Merger and disposal

No.1

Subject: Company announces indirect PRC investment

Date of occurrence of the event: 2018/11/13

Contents:

1.Method of the present increase (decrease) in investment:

(1)Share acquisition:The Company's subsidiary Foxconn (Far East) Limited-CY, that invests in Ci Fu Technology Holding Ltd.that invests Metro Victory Limited shareholders Purchase 100% of shares HONG-QI MECHATRONICS (ANHUI) CO.,LTD. For Foxnum Technology Co., Ltd.

(2)Capital Increased by Cash:The company Invests In HONG-QI MECHATRONICS (ANHUI) CO., LTD., investment by Foxconn (Far East) Limited-CY,one of the company's subsidiary, that invests in Ci Fu Technology Holding Ltd.that invests Metro Victory Limited.

2.Transaction volume, price per unit, and total monetary

amount of the transaction: 

(1)Share acquisition:USD$989,348

(2)Capital Increased by Cash:USD$24,200,000

3.Company name of the invested mainland Chinese company:

HONG-QI MECHATRONICS (ANHUI) CO., LTD.

4.Paid-in capital of said invested mainland Chinese company:

USD$1,000,000

5.Amount of new capital increment currently planned by said invested mainland Chinese company: USD$24,200,000

6.Main business items of said invested mainland Chines company:

Intelligence robot,air purifier,monitor,Automated peripheral equipment,Automated fixture,precision indle bearing,Servo control system,bus control system

7.Amount of actual investment to date in said invested mainland Chinese company: 0

8.The manner of deciding on this transaction, the reference basis for the decision on price and the decision-making department: Board of Directors

9.Concrete purpose of the acquisition or disposal:

Long Term Investment

No.2

Subject:Merger involves Mainland China Subsidiaries

Date of events:2018/11/13

Contents:

1.Kind of merger/acquisition (e.g.merger, consolidation, spin-off

 ,acquisition, or receiving assignment of shares):Merger

2.Date of occurrence of the event:2018/11/13

3.Names of companies participating in the merger (e.g.name of the

other company participating in the merger or consolidation, newly

established company in a spin-off, acquired company, or company

whose shares are taken assignment of):

HONG-QI MECHATRONICS (ANHUI) CO., LTD. merged with Company's another Mainland China subsidiary,HONGQING PRECISION MACHINE CO.,LTD.

4.Counterparty (e.g.name of the other company participating in

the merger or consolidation, company taking assignment of the

spin-off, or counterparty to the acquisition or assignment of shares):

Extended company:HONG-QI MECHATRONICS (ANHUI) CO., LTD.

Annihilation company:HONGQING PRECISION MACHINE CO.,LTD.

5.Relationship between the counterparty and the Company (investee

company in which the Company has re-invested and has shareholding

of XX%), and explanation of the reasons for the decision to acquire,

or take assignment of the shares of, an affiliated enterprise or

related person, and whether it will affect shareholders' equity:

Both are Company's 100% owned subsidiaries. no effect on equity.

6.Purpose/objective of the merger/acquisitionation:

Integrate internal resources, improve company's capital structure, and expand production scale.

7.Anticipated benefits of the merger/acquisition:

To achieve better manufacturing capabilities and economic returns.

8.Effect of the merger or consolidation on net worth per share and

earnings per share:None

9.Share exchange ratio and basis of its calculation:1 on 1

10.Scheduled timetable for consummation:2019

11.Matters related to assumption by the existing company or new

company of rights and obligations of the extinguished (or spun-off)

company:

HONG-QI MECHATRONICS (ANHUI) CO., LTD. as the surviving entity will

assume all HONGQING PRECISION MACHINE CO.,LTD. asset and liability.

12.Basic information of companies participating in the merger:

HONG-QI MECHATRONICS (ANHUI) CO., LTD.:Automated peripheral equipment,Automated fixture,precision indle bearing,Servo control system,bus control system.

HONGQING PRECISION MACHINE CO.,LTD.:Automated peripheral equipment,Automated fixture,precision indle bearing,Servo control system,bus

control system.

No.3

Subject: To announce the disposal of PRC investment Champ Tech Optical (FoShan) Corporation

Date of events:2018/11/13

Contents:

1.Date of occurrence of the event:2018/11/13

2.Method of the present increase (decrease) in investment:

The Company's subsidiary Function Well Limited-CY disposal

held Champ Tech Optical (FoShan) Corporation 100% shares

3.Transaction volume, price per unit, and total monetary

amount of the transaction:RMB989,220,000

4.Company name of the invested mainland Chinese company:

Counterpart to the trade:FUZHUN PRECISION INDUSTRY (SHENZHEN) CO.,LTD. RMB642,993,000;

Counterpart to the trade:FuYu Precision Components (KunShan) Co.,LTD. RMB346,227,000

Total amount equals RMB989,220,000

5.Paid-in capital of said invested mainland Chinese company:

USD$46,670,000

5.Paid-in capital of said invested mainland Chinese company:

USD$46,670,000

6.Amount of new capital increment currently planned

by said invested mainland Chinese company:Na

7.Main business items of said invested mainland Chinese

company: Radiator

8.Amount of actual investment to date in said invested

mainland Chinese company:USD$53,490,425

9.Counterparty to the transaction and its relationship

to the Company:

FUZHUN PRECISION INDUSTRY (SHENZHEN) CO.,LTD.;Connection company

FuYu Precision Components (KunShan) Co.,LTD.;Connection company

10.Where the counterparty to the transaction is an actual

related party, public announcement shall also be made of

the reason for choosing the related party as the

counterparty and the identity of the previous owner

(including its relationship with the company and the

trading counterpart), the date of transfer, and the price:

Made of the reason for choosing:Existing clients Integrate marketing

Counterparty:Starglobe Enterprises Limited

The identity of the previous owner:None

The date of transfer, and the price:2010/03/31;USD$33,780,399

11.Gain (or loss) on disposal:NTD1,258,000,000

12.The manner of deciding on this transaction, the reference

basis for the decision on price and the decision-making

department:Board of Directors

13.Concrete purpose of the acquisition or disposal: 

Existing clients Integrate marketing