Subsidiary disposal of financial products

No.1

Subject: Subsidiary, YANTAI FUHUADA PRECISION ELECTRONICS CO., LTD., announces disposal of financial products

Date of events:2014/09/01

Contents:

1. Name and nature of the subject matter (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g.dividend yield):

Bank of Communications, "Yun Tong wealth, increasing profits 45 days" financial products

2. Volume, unit price, and total monetary amount of the transaction:

RMB200,000,000

3. Counterpart to the trade and its relationship to the Company (if the trading counterpart is a natural person and furthermore is not an actual related party of the Company, the name of the trading counterpart is not required to be disclosed):

BANK OF COMMUNICATIONS, Yantai Branch; None

4. Anticipated profit or loss from the disposal (not applicable in cases of acquisition of securities) (where originally deferred, the status or recognition shall be stated and explained):

RMB1,134,246.58