China Taisan Tech : Proposed Appointment of Joint Auditors

CHINA TAISAN TECHNOLOGY GROUP HOLDINGS LIMITED

(Company Registration Number: 200711863D)

PROPOSED APPOINTMENT OF JOINT 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") wishes to announce the proposed appointment of Messrs RT LLP ("RT") and Messrs Pan-China Singapore PAC ("Pan-China") (RT and Pan-China collectively referred to as the "Joint Auditors") as the joint auditors of the Company (the "Proposed Appointment of Joint Auditors").

The Proposed Appointment of Joint Auditors follows 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.

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, are of the view that RT and Pan-China are the most appropriate candidates and that (i) the Joints Auditors would be able to meet the overall audit requirements of the Group; and (ii) the appointment of the Joint Auditors would be in compliance with Rule 712 and 715 of the Singapore Exchange Securities Trading Limited Listing Manual. The Board is thus recommending that the Joint Auditors be appointed to act jointly as the new auditors of the Company.

The appointment of joint auditors will be required to comply with the new rules, the Interim Provisions on Accounting Firms' Provision of Auditing Services for the Overseas Listing of Enterprises in Chinese Mainland (the Interim Provisions), which were published on 26 May 2015 and came into force on 1 July 2015, which prevent foreign auditors from auditing Mainland Chinese companies unless they team up with a Mainland Chinese accounting firm. In our case, the Joint Auditors will jointly conduct the audit of the Group. The Joint Auditors will take joint and several responsibility over the auditing requirements of the Company and are under a statutory responsibility to report to Shareholders whether financial statements of the Company give a true and fair view or otherwise. The Joint Auditors will conduct the audit of the consolidated financial statements of the Group in accordance with the Singapore Standards on Auditing to form an opinion on whether the consolidated financial statements give a true and fair view or otherwise.

The Joint Auditors have, on 15 August 2016, given their written consent to be appointed as joint auditors of the Company. The Proposed Appointment of Joint 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 the Joint Auditors as the joint auditors of the Company will take effect upon the approval of the same by the Shareholders at the EGM.

A circular to Shareholders in relation to the Proposed Appointment of Joint 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 19 August 2016