Subsidiary Shenzhenshi Yuzhan obtaining shares

Subject:Subsidiary Shenzhenshi Yuzhan Precision Technology Co., Ltd. obtaining Shenzhen Hengdrive Electric Co., Ltd shares

Contents:

1.Name and nature of the underlying assets (if preferred shares, the terms and conditions of issuance shall also be indicated, e.g., dividend yield, etc.):Shenzhen Hengdrive Electric Co.,Ltd shares

2.Date of occurrence of the event:2021/09/02

3.Amount, unit price, and total monetary amount of the transaction:

30,775,500 shares at no more than RMB 12.2825 each per ;

Total amount no more than RMB 378,000,000

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):The original shareholders of Shenzhen Hengdrive Electric Co.,Ltd: Zhang jian wen 、Wang ruo yang 、Chen lin cun 、Zhang jian min 、Wang zhe yi 、Tong cun hua 、Zhang lei 、Zhang guo hua 、Liu xu;no relation to the 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.Matters related to the current disposal of creditors' rights (including types of collaterals of the disposed creditor's rights; if creditor's rights over a related party, announcement shall be made of the name of the related party and the book amount of the creditor's rights, currently being disposed of, over such related party):Na

8.Profit or loss from the disposal (not applicable in cases of acquisition of securities) (those with deferral should provide a table explaining recognition):Na

9.Terms of delivery or payment (including payment period and monetary amount), restrictive covenants in the contract, and other important terms and conditions:

(1)Important conditions precedent to closing: In addition to the general closing conditions, Hengdrive Electric must be delisted from the National Equities Exchange and Quotations and changed to a limited liability company

(2)Transaction price adjustment mechanism: If the audited net profit for 2021 is less than 27 million (27 million not included), the valuation will be lowered

10.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:

Negotiation;Evaluation is valued at other basis;Board of Directors

11.Net worth per share of the Company's underlying securities acquired or disposed of:RMB 1.3007

12.Cumulative no.of shares held (including the current transaction), their monetary amount, shareholding percentage, and status of any restriction of rights (e.g., pledges), as of the present moment:30,775,500 shares ；no more than RMB 378,000,000；approximately 63%；restriction of rights:None

13.Current ratio of securities investment (including the current trade, as listed in article 3 of Regulations Governing the Acquisition and Disposal of Assets by Public Companies) to the total assets and equity attributable to owners of the parent as shown in the most recent financial statement and working capital as shown in the most recent financial statement as of the present:

Ratio to total assets:0.09%, ratio to shareholder's equity:0.22%

Operating Capital:NTD-125,205,791,000

14.Broker and broker's fee:None

15.Concrete purpose or use of the acquisition or disposal:

This investment could be seen as a part of the Company's Electric Vehicle Strategy and for Communication & Networking Products to move into the manufacturing of its upstream components

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

17.Whether the counterparty of the current transaction is a related party:No

18.Date of the board of directors resolution:NA

19.Date of ratification by supervisors or approval by the Audit Committee:NA

20.Whether the CPA issued an unreasonable opinion regarding the current transaction:No

21.Name of the CPA firm:RSM International

22.Name of the CPA:Li ping

23.Practice certificate number of the CPA:510100290522

24.Whether the transaction involved in change of business model:No

25.Details on change of business model:Na

26.Details on transactions with the counterparty for the past year and the expected coming year:None

27.Source of funds:private capital

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