Shaanxi Fenghuo Electronics Co., Ltd. (SZSE:000561) agreed to acquire 98.395% stake in Shaanxi Changling Electronic Tech Co., Ltd. from Shaanxi Electronic Information Group Co., Ltd., Shaanxi Changling Electric Co., Ltd. and Shaanxi Jinchuang Hexin Investment Co., Ltd. on July 13, 2023. The final transaction will be made in cash and shares, share payment and cash payment ratio of this transaction have not yet been determined. Cash consideration of this transaction and replenish working capital.

The controlling shareholder and indirect controlling shareholder of Shaanxi Fenghuo Electronics Co., Ltd. have agreed in principle to this transaction. Shaanxi Fenghuo Electronics Co., Ltd. has approved the transaction by board of directors on July 13, 2023 and Changling Electric, Jinchuang and Xinhe Information Group, have performed internal decision-making procedures and approved the transaction.This transaction is subject to the approval of the formal plan by the competent state-owned assets supervision and administration department, State Administration of Science, Technology and Industry for National Defense?s opinion on the review of military matters, Shenzhen Stock Exchange and registered with the China Securities Regulatory Commission, and other possible approvals or approvals required by relevant laws and regulations. Western Securities Co.,Ltd. (SZSE:002673) acted as Financial advisor to Shaanxi Fenghuo Electronics Co., Ltd.