China Taisan Tech : Proposed Appointment of Auditors

CHINA TAISAN TECHNOLOGY GROUP HOLDINGS LIMITED

(Company Registration Number: 200711863D)

PROPOSED APPOINTMENT OF AUDITORS

The Board of Directors (the "Board" or "Directors") of China Taisan Technology Group Holdings Limited (the "Company" and together with its subsidiaries, the "Group") refers to its announcement dated 19 August 2016 in relation to the proposed appointment of Messrs RT LLP and Messrs Pan-China Singapore PAC as the joint auditors of the Company.

Further to consultation with the Singapore Exchange Securities Trading Limited, the Board has decided to appoint only Messrs RT LLP ("RT") as the auditors of the Company (the "Proposed Appointment of Auditors"). The Board also wishes to clarify that the Interim Provisions on Accounting Firms' Provision of Auditing Services for the Overseas Listing of Enterprises in Chinese Mainland, as mentioned in the announcement dated 19 August 2016, are not applicable as the Company is incorporated in Singapore.

The Proposed Appointment of Auditors is as part of the Company's efforts to be cost- efficient. The Board further refers to the announcement by the Company on 25 April 2016 titled "Results of Annual General Meeting", which states that Messrs Mazars LLP ("Mazars") had informed the Company that they were not seeking re-appointment as auditors of the Company. The Board wishes to express its appreciation for the past audit services rendered by Mazars.

As part of the Company's efforts to be cost efficient, the Board has sourced for quotes from several reputable audit firms which have experience in auditing public companies. The Board, having considered various factors including, inter alia, the fee proposals from various audit firms, the adequacy of resources, the experience of the audit firm and the audit engagement partner, the number and experience of supervisory and professional staff, the audit firm's other audit engagements and the size and complexity of the Group's operations, is of the view that RT is the most appropriate candidate and that (i) RT would be able to meet the overall audit requirements of the Group; and (ii) the appointment of RT would be in compliance with Rule 712 and 715 of the Singapore Exchange Securities Trading Limited Listing Manual. The Board is thus recommending that RT be appointed to act as the new auditors of the Company.

RT has, on 15 August 2016, given its written consent to be appointed as auditors of the Company. The Proposed Appointment of Auditors is subject to the approval of shareholders of the Company (the "Shareholders") at an extraordinary general meeting of the Company to be convened in due course (the "EGM"), and the appointment of RT as the auditors of the Company will take effect upon the approval of the same by the Shareholders at the EGM. If the Proposed Appointment of Auditors is approved, the audit engagement partner from RT will be Mr. Su Chun Keat, and RT will hold office until the conclusion of the next annual general meeting of the Company.

A circular to Shareholders in relation to the Proposed Appointment of Auditors, together with a notice of the EGM, will be despatched to Shareholders in due course.

BY ORDER OF THE BOARD

Lin Wen Chang

Chief Executive Officer 26 August 2016