Merger involves Mainland China Subsidiaries

Subject:Merger involves Mainland China Subsidiaries

Date of events:2020/11/12

Contents:

1.Type of merger and acquisition (e.g., merger, spin-off, acquisition, or share transfer):Merger

2.Date of occurrence of the event:2020/11/12

3.Names of companies participating in the merger and acquisition (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):Lankao YuFu Precision Technology Co., Ltd. merged with LanKao YuDe Environment Material Technology Inc.

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:Lankao YuFu Precision Technology Co., Ltd.

Annihilation company:LanKao YuDe Environment Material Technology Inc.

5.Whether the counterparty of the current transaction is a related party:Yes

6.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.

7.Purpose/objective of the merger and acquisition:Integrate internal resources

8.Anticipated benefits of the merger and acquisition:RMB 12,900,000

9.Scheduled timetable for consummation:2021/06/30

10.Matters related to assumption by the existing company or new company of rights and obligations of the extinguished (or spun-off) company:Lankao YuFu Precision Technology Co., Ltd. entity will assume all LanKao YuDe Environment Material Technology Inc. asset and liability.

11.Basic information of companies participating in the merger:

Lankao YuFu Precision Technology Co., Ltd.:Design, Research and Development of Optical Lenses, Metal Fittings, Manufacturing of Glass Products and Processing Equipments, Production and Sales of Optical Lenses, Metal Fittings and Glass Products, Housing and Machinery Leasing, Domestic Trade, Import / Export Operations.

LanKao YuDe Environment Material Technology Inc.:Research and Development, Production and Sales of Bamboo Fiber Packaging Products, Production and Sales of Cartons, Color Boxes and Packaging Boxes; Research and Development, Design and Sales of Precision Die-Cutting Parts, Self-Adhesive Stickers, Silk-Screen Printing Paper, Tape, Protective Film and Labels; Packaging Design, Graphic Design, Brand Design, Domestic Trade, Import and Export perations.

12.Other important stipulations:None

13.Other important matters concerning the merger and acquisition:None

14.Whether the directors have any objection to the present transaction:None

15.Information regarding directors with personal interest (name of natural person director or name of legal person director and its representative, material interest of the director or the legal person represented by the director (including but not limited to form of actual or expected investment in another company in the merger, shareholding, transaction price, participation in the subject company's business or otherwise, and other terms of investment), reason for recusal or otherwise, details of recusal, and reason for a resolution for or against the merger proposal):None

16.Whether the transaction involved in change of business model:None

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

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