Nanjing Yingruichuang Electronic Technology Co., Ltd. singed a conditional Equity Transfer Agreement to acquire a 51% stake in Juxun Semiconductor Technology (Shanghai) Co., Ltd. from Liaoning Kelong Fine Chemical,Inc. (SZSE:300405) for CNY 59.7 million on March 1, 2022. Nanjing Yingruichuang will also pay CNY 15.3 million for shareholder dividends, totaling the consideration to CNY 75 million. Nanjing Yingruichuang will pay within 10 working days after the entry into force of this agreement, CNY 22.5 million and the remaining within five working days from the date of written waiver by Liaoning Kelong. As of March 31, 2022, Liaoning Kelong Fine has received 30% of the consideration equals to CNY 22.5 million. As of the date of this agreement, Liaoning Kelong Fine hold 51% stake, Zhang Zhicai holds 17.54% stake, Jiang Yujun holds 8.36%, Shanghai Yurong Electronic Technology Service Department holds 2% stake, Shenzhen Jiali Chuang Investment Co., Ltd. and Shenzhen Huaqiu Electronics Co., Ltd. holds 5% stake each in Juxun Semiconductor. For the year ended December 31, 2021, Juxun Semiconductor reported total assets of CNY 52.03 million, Owners' equity of CNY 13.95 million, Operating income of CNY 53.76 million, and net income of CNY 16.37 million. The transaction is approved by the second meeting of the fifth board of directors and the second meeting of the fifth board of supervisors of Liaoning Kelong Fine and still subject to the approval of the general meeting of shareholders, Nanjing Yingruichuang has performed internal decision-making procedures to review and approve the transaction. The transaction is expected to be completed before March 31, 2022.

Nanjing Yingruichuang Electronic Technology Co., Ltd. completed the acquisition of a 51% stake in Gainsil Semiconductor Technology (Shanghai) Co., Ltd. from Liaoning Kelong Fine Chemical,Inc. (SZSE:300405) on May 26, 2022.