Shandong New Beiyang Information Technology Co., Ltd. (SZSE:002376) agreed to acquire additional 26% stake in Weihai Hualing Opto-Electronics Co.,Ltd. from Shandong Hualing Electronics Co., Ltd., Toyo Precision Parts Mfg. Co., Ltd., Weihai Xingke Information Technology Co., Ltd., Tetsunori Sawae and Shihezi Haikeda Equity Investment Partnership (Limited Partnership) for approximately CNY 230 million on March 17, 2014. Shandong New Beiyang Information will acquire 15.6 million shares. After the completion of the acquisition, Shandong New Beiyang Information will hold 51% stake in Weihai Hualing Opto-Electronics. Within 20 days from the signing of the agreement, Shandong New Beiyang Information must pay 55% of the transfer price, within 20 days from the completion of the change in industry and commerce registration, Shandong New Beiyang Information must pay 15% of the transfer price and within 30 days from the disclosure of Weihai Hualing Opto-Electronics' 2016 audit report and if Weihai Hualing Opto-Electronics' 2014 to 2016 audited accumulated net profit is not less than the performance indicators, Shandong New Beiyang Information must pay the remaining amount.

Shandong New Beiyang Information will use excess proceeds of CNY 173.63 million and internal funds of CNY 59.51 million to fund the acquisition. As of December 31, 2013, Weihai Hualing Opto-Electronics has total assets of CNY 293.77 million, total liabilities of CNY 102.24 million, owner's equity of CNY 191.52 million, revenues of CNY 300.44 million and net profit of CNY 89.88 million. On March 17, 2014, Shandong New Beiyang Information held 14th session of the 4th Directorate meeting to approve the acquisition. As of April 17, 2014, the transaction was approved at extraordinary general meeting of Shandong New Beiyang Information Technology Co., Ltd.