TPK : plans to sell 10% shares of TPK Auto Tech (Xiamen) Limited to strategic investor, TES Touch Embedded Solutions (Xiamen) Co., Ltd.

TPK Group plans to sell 10% shares of TPK Auto Tech (Xiamen) Limited to strategic investor, TES Touch Embedded Solutions (Xiamen) Co., Ltd.

2021-11-09

1.Date of occurrence of the event:2021/11/09

2.Counterparty to the contract or commitment:

TES Touch Embedded Solutions (Xiamen) Co., Ltd.

3.Relationship with the Company:

Related party in substance

4.Starting and ending dates (or rescission date) of the

contract or commitment:2021/11/9

5.Major content (not applicable where rescinded):

TPK Glass Solutions (Xiamen) Inc. ("TPKG"), a wholly owned

subsidiary of TPK, plans to carve out its automotive business into a wholly

owned subsidiary TPK Auto Tech (Xiamen) Limited ("AUTOXM"), and

subsequently sell 10% equity ownership AUTOXM to TES Touch Embedded

Solutions (Xiamen) Co., Ltd ("TES"), a Shenzhen listed company with

ticker SHE:003019.

The AUTOXM is valued at US$ 39.8 million dollars, and the transaction

value for the 10% equity interest is US$3.98 million.

In addition, TPKG offers TES a 2-year option to buy additional equity

interest up to an aggregate ownership of 49% of AUTOXM at the same

valuation basis of US$39.8 million.

6.Restrictive covenants (not applicable where rescinded):N/A

7.Commitment (not applicable where rescinded):TPKG will carve out its

automotive business into a newly formed subsidiary AUTOXM, which is

a pre-closing condition for the subject transaction.

8.Any other important agreement (not applicable where rescinded):N/A

9.Effect on company finances and business:No material impact

10.Concrete purpose/objective:Our company's automotive business

primarily covers design, manufacturing and distribution of automotive touch

module. Due to technology transition and supply chain consolidation,

TPK Group plans to seek strategic partnership with upstream or downstream

players to advance our core competency and to better integrate the auto

display value chain.

TES, who focus on system design, system integration, and electronics

manufacturing, is selected as the strategic investor given the synergies and

business opportunities this partnership can potentially create. We expect

this partnership will further strengthen our product roadmaps and expand our

customer base in the coming future.

11.Any other matters that need to be specified:N/A