Jiahong Baoguang No. 1 Private Securities Investment fund managed by Zhejiang Jiahong Asset Management Co., Ltd signed a Share Transfer Agreement to acquire 5% stake in Jiangsu NanFang Precision Co.,Ltd. (SZSE:002553) from Shi Jianwei for approximately CNY 160 million on May 17, 2023. Under the terms of transaction, Shi Jianwei intends to transfer 17,400,000 shares of Jiangsu NanFang Precision Co.,Ltd to Zhejiang Jiahong Asset Management Co., Ltd at CNY 8.97 per share.

The initial share transfer price is CNY 1 million that will be paid within seven working days after the signing of this agreement. The second phase of the share transfer price is CNY 35 million need to be paid within 20 working days after the transfer registration and the remaining share transfer price of CNY 120,078,000 shall separately agree on the payment time and payment method of the remaining transfer price. The transfer of shares under this agreement does not involve a tender offer and does not constitute a related party transaction.

The transfer of shares under this agreement still needs to be reviewed and confirmed by the Shenzhen Stock Exchange before the procedures for the transfer of shares can be handled at the Shenzhen Branch of China Securities Depository and Clearing Corporation Limited