Ningbo Jingshang Huaxiang Auto Parts Co., Ltd. agreed to acquire 100% stakes in two companies from Ningbo Huaxiang Electronic Co., Ltd. (SZSE:002048) on February 9, 2015. The two companies are Shanghai Huaxiang Automobile Parts Co., Ltd. (including 100% stake in Gongzhuling Huaxiang Automobile Parts Co., Ltd., 75% stake in Ningbo Huaxiang Automobile Accessories Co., Ltd.) and 100% stake in Chengdu Huaxiang Automobile Parts Co., Ltd. In a related deal, Ningbo Jingshang Huaxiang Auto Parts Co., Ltd. agreed to acquire all assets and businesses of Shanghai Lianxiang Automotive Co., Ltd. Luen Cheung except land and real estate's from Shanghai Lianxiang Automotive Co., Ltd. Luen Cheung on February 9, 2015. In a related deal, Ningbo Jingshang Huaxiang Auto Parts Co., Ltd. agreed to acquire 25% stake in Ningbo Huaxiang Automobile Accessories Co., Ltd., hard and soft foam auto parts business and assets of Tianjin Inoac Polymer Co., Ltd., 66% stake in Wuxi Inoue Huaguang Automotive Parts Co., Ltd., 66% stake in Wuxi Anyang Plastic Products Co., Ltd., 100% stake in Chengdu Inoac Polymer Co., Ltd. from Polyfoam Asia Pte.

Ltd. and Dongguan Inoac Kenjou Automotive Co., Ltd. from Kenjou Investment Co., Ltd. on February 9, 2015. The total transaction amount will not be more than CNY 600 million. The transaction is subject to approval of shareholders of Ningbo Huaxiang Electronic.

The transaction is approved by Board of Directors of Ningbo Huaxiang Electronic.