Subsidiary Futaihua (Weihai) obtaining assecs

Subject:Subsidiary Futaihua Precision Industry(Weihai) Co.,Ltd announces obtaining Land、Building and Machinery equipment

Contents:

1.Name and nature of the underlying asset (e.g., land located at Sublot XX, Lot XX, North District, Taichung City):

Land and Building located at no.29 Jinzhou Road, Torch Hi-tech Science Development Zone, Weihai, Shandong Province, PRC.、Machinery

2.Date of occurrence of the event:2022/06/10

3.Transaction unit amount (e.g.XX square meters, equivalent to XX ping), unit price, and total transaction price:

Transaction unit amount:

 Land:30,873 square meters, equivalent to 9,339.08 ping

 Building:30,345.52 square meters, equivalent to 9,179.52 ping

Unit price:

 Land:RMB 814.8868/square meters

 Building:RMB 2,332.14/square meters

Transaction price:

 Land:RMB 25,158,800 (including VAT RMB 1,198,000)

 Building:RMB 70,770,000 (including VAT RMB 3,370,000)

 Machinery:RMB 46,657,587 (including VAT RMB 5,367,687)

Total transaction price:RMB 142,585,587

4.Trading counterparty and its relationship with the Company (if the trading counterparty is a natural person and furthermore is not a related party of the Company, the name of the trading counterparty is not required to be disclosed):HP Printing (Shandong) Co., LTD；；Non-affiliated company

5.Where the trading counterparty is a related party, announcement shall also be made of the reason for choosing the related party as trading counterparty and the identity of the previous owner, its relationship with the Company and the trading counterparty, and the previous date and monetary amount of transfer:NA

6.Where an owner of the underlying assets within the past five years has been a related party of the Company, the announcement shall also include the date and price of acquisition and disposal by the related party, and its relationship with the Company at the time of the transaction:NA

7.Projected gain (or loss) through disposal (not applicable for acquisition of assets; those with deferral should provide a table explaining recognition):NA

8.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions:RMB 142,585,587 one-time payment in July 2022

9.The manner of deciding on this transaction (such as invitation to tender, price comparison, or price negotiation), the reference basis for the decision on price, and the decision-making unit:Negotiated;market price;the Board of Directors

10.Name of the professional appraisal firm or company and its appraisal price:Appraisal company name:Cushman & Wakefield Shenzhen Valuation Co., Ltd.Qingdao BranchAppraisal Price: Land RMB23,960,000(VAT free)；Building RMB 67,400,000 (VAT free)

11.Name of the professional appraiser: Luwei Xiu

12.Practice certificate number of the professional appraiser:3720070129

13.The appraisal report has a limited price, specific price, or special price:NA

14.An appraisal report has not yet been obtained:NA

15.Reason for an appraisal report not being obtained:NA

16.Reason for any significant discrepancy with the appraisal reports and opinion of the CPA:NA

17.Name of the CPA firm:NA

18.Name of the CPA:NA

19.Practice certificate number of the CPA:NA

20.Broker and broker's fee:None

21.Concrete purpose or use of the acquisition or disposal:Develop new business

22.Any dissenting opinions of directors to the present transaction:None

23.Whether the counterparty of the current transaction is a related party:NO

24.Date of the board of directors resolution:NA

25.Date of ratification by supervisors or approval by the audit committee:NA

26.The transaction is to acquire a real property or right-of-use asset from a related party:NA

27.The price assessed in accordance with the Article 16 of the Regulations Governing the Acquisition and Disposal of Assets by Public Companies:NA

28.Where the above assessed price is lower than the transaction price, the price assessed in accordance with the Article 17 of the same regulations:NA

29.Any other matters that need to be specified:None