Wuxi DK Electronic Materials Co.,Ltd. (SZSE:300842) agreed to acquire Jiangsu Suote Electronic Material Co., Ltd. from a group of shareholders for CNY 2.1 billion in July 2021. Wuxi DK Electronic will issue 28.373142 million shares to the counter parties. The initial transaction price of the target asset is CNY 1.247 billion. Taizhou Suote M&A Investment Fund (Limited Partnership) will be paid CNY 242 million or 5.506257 million shares. Shanghai M&A Equity Investment Fund Phase II Partnership Enterprise (Limited Partnership) will be paid CNY 200 million or 4.550625 million shares, Shenzhen Fuhai New Material Phase III Venture Capital Fund Partnership Enterprise (Limited Partnership) will be paid CNY 65.2 million or 1.483503 million shares, Shenzhen Fuhai Zhuoyue Venture Capital Enterprise (Limited Partnership) will be paid CNY 97.8 million or 2.25255 million shares, Shanghai Yiliu Industrial Corporation will be paid CNY 120 million or 2.730375 million shares, Hangzhou Yuanyin Equity Investment Partnership Enterprise (Limited Partnership) will be paid CNY 202 million or 4.596131 million shares, Wuxi Yicun Zhigeng Investment Partnership Enterprise (Limited Partnership) will be paid CNY 50 million or 1.137656 million shares, Zhuji Yuwu Jewelry Co., Ltd. will be paid CNY 45 million or 1.023890 million shares, Yingtan Rongtang Daxin Enterprise Service Center (Limited Partnership) will be paid CNY 30 million or 0.682596 million shares, Suzhou Yirong Venture Capital Partnership Enterprise (Limited Partnership) will be paid CNY 20 million or 0.455062 million shares, Shanghai Xijin International Trade Co., Ltd. will be paid CNY 10 million or 0.227531 million shares, Deng Zhenguo will be paid CNY 100 million or 2.275312 million shares, Mao Chenglie will be paid CNY 45 million or 1.023890 million shares, Lv Jiafang will be paid CNY 10 million or 0.227531 million shares and Shi Weili will be paid CNY 10 million or 0.227531 million shares. The supporting funds will be used to pay for this transaction's intermediary institution fees, tax fees, M&A integration fees, replenishment of the company's and the target's working capital, repayment of liabilities and for the target's project construction. Jiangsu Suote has a total assets of CNY 388 million and net assets of 344 million As of June 30, 2021. The transaction has been approved by target's executive director. This transaction still needs to be approved by the following: After the completion of the audit and appraisal works, this transaction still needs to be approved by the Wuxi DK Electronic Materials Co.,Ltd's directorate. Wuxi DK Electronic Materials Co.,Ltd's shareholders' meeting and Shenzhen Stock Exchange and CSRC approval. As of December 30, 2021, The transaction has been approved by board of Wuxi DK Electronic Materials. As of December 31, 2021, Wuxi DK Electronic Materials Co.,Ltd. will issue A shares to not more than 35 specific investors to raise supporting funds. The supporting funds will not exceed CNY 350 million and the issue volume will not exceed 30% of total capital prior to issuance. CNY 4 million will be used for payment of transaction related fees.

Everbright Securities Company Limited acted as financial advisor, Shanghai Llinks Law Offices acted as legal advisor and Jonten Certified Public Accountants Co Ltd acted as accountant to Wuxi DK Electronic Materials.