Changchun UP Optotech Co.,Ltd. (SZSE:002338) agreed to acquire 78.89% stake in Changchun Long Aerospace Composite Materials Co., Ltd from Changchun Institute of Optics, Fine Mechanics and Physics, Changchun Kuaixiang Composites Investment Center (Limited Partnership), Changchun Feixiang Composites Investment Center (Limited Partnership),Lin Zaiwen,Liu Yongqi,Shang Weihui,Zou Zhiwei and Wang Haifang for CNY 615 million on March 21, 2022. Under the terms 70% of the transaction consideration is paid by issuing shares and 30% of the transaction consideration is paid in cash. The total amount of the transaction is 615 million of which CNY 431.8 million was paid by issuing shares, accounting for 70% of the transaction consideration; and CNY 185.07 million was paid by cash, accounting for 30% of the transaction consideration. The main approval and filing procedures that have been performed for this transaction. The transaction plan has been reviewed and approved by the internal decision-making body of the counterparty. This transaction has been agreed in principle by the Institute of Optics and Mechanics. The transaction plan has been reviewed and approved at the thirteenth meeting of the seventh board of directors of Changchun UP Optotech Co.,Ltd. The formal plan for this transaction has been reviewed and approved at the fifteenth meeting of the seventh board of directors of Changchun UP Optotech Co.,Ltd. This transaction has been approved by the National Defense Science Technology and Industry Administration for military matters. The feasibility report of this transaction has been pre-examined and approved by the State-owned Assets Supervision and Administration Department. This transaction is still subject to the approval of the State-owned Assets Supervision and Administration Department and China Securities Regulatory Commission. The transaction still needs to be reviewed and approved by the general meeting of shareholders of the Changchun UP Optotech Co.,Ltd. As of July 5, 2022, board of directors of Changchun UP Optotech Co.,Ltd. have approved the transaction.

Zhou Jie, Xing Tianling, Yang Yilun, Zhao Xiabing of Haitong Securities Co., Ltd. (SHSE:600837) acted as financial advisor to Changchun UP Optotech Co.,Ltd. Zhu Jinfeng of Anchorite & Sage Law Office, Liang Chun of Moore Stephens Da Hua acted as accountant to Changchun UP Optotech Co.,Ltd.