Merger involves Mainland China Subsidiaries

Subject:Merger involves Mainland China Subsidiaries

Date of events:2019/03/29

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:2019/03/29

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):

Kangzhun Electronical Technology (KunShan) Co., Ltd. merged with

Company's another Mainland China subsidiary,,Fuyang Electronical

Technology (Changshu) 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:Kangzhun Electronical Technology (KunShan) Co., Ltd.Annihilation company:Fuyang Electronical Technology (Changshu) 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.Share exchange ratio and basis of its calculation:1 on 1

9.Scheduled timetable for consummation:2019

10.Matters related to assumption by the existing company or new company of rights and obligations of the extinguished (or spun-off) company:

Kangzhun Electronical Technology (KunShan) Co., Ltd. as the surviving entity will assume all Fuyang Electronical Technology (Changshu) Co., Ltd. asset and liability.

11.Basic information of companies participating in the merger:

Kangzhun Electronical Technology (KunShan) Co., Ltd. engages in Manufacturing and marketing of computer components, computer peripherals, etc.

Fuyang Electronical Technology (Changshu) Co.,Ltd. engages in Manufacturing and marketing of computer components and molds