Zhejiang Founder Motor Co., Ltd. (SZSE:002196) resolved to acquire Shenzhen Gold Corolla Electronics Co., Ltd. from Weng Weiwen and 30 other shareholders for approximately CNY 270 million on January 5, 2014. Zhejiang Founder Motor signed a conditional agreement on January 23, 2014. The 30 other shareholders are Jin Yingjie, Chang Zheng, Wu Zhenghua, Luo Yi, Wu Jun, He Dongfei, Ren Yanming, Hu Yuanmiao, Zhang Hongliang, Lian Haitao, Shao Shimei, Wang Jianchuan, Li Jun, Pi Yinqun, Luo Ruhong, Wu Tianxiang, Feng Songdi, Zhang Tianfu, Shen Shizhong, Tang Yongqiang, Yin Anhui, Li Yanning, Li Ling, Yang Jing, Chen Degang, Gong Yu, Zhan Duo, Wang Jian, Wang Ruihong and Zhao Zhanghua.

Zhejiang Founder Motor will issue 21.5 million shares of its common stock as consideration. As of December 31, 2013, Shenzhen Gold Corolla Electronics reported Total assets of CNY 193.9 million, Total shareholders' equity of CNY 72.5 million, Revenue of CNY 210.1 million, operating loss CNY 4.4 million and net loss of CNY 5.25 million. The transaction is subject to approval by shareholders of Shenzhen Gold Corolla Electronics and China Securities Regulatory Commission. The transaction was approved by shareholders of Shenzhen Gold Corolla Electronics Co., Ltd on January 5, 2014. The transaction was approved at 22nd session of the 4th directorate meeting of Zhejiang Founder Motor on January 23, 2014. The transaction was approved by shareholders of Zhejiang Founder Motor on April 2, 2014. The handling transfer procedures should complete within 60 days from the date the acquisition obtains the approval of China Securities Regulatory Commission. CSRC approved the transaction on June 16, 2014. CITIC Securities Co., Ltd. acted as financial advisor and Zhejiang L&H Law Firm acted as legal advisor for Zhejiang Founder Motor. Pan-China Certified Public Accountants LLP acted as an accountant for Zhejiang Founder Motor.

Zhejiang Founder Motor Co., Ltd. (SZSE:002196) completed the acquisition of Shenzhen Gold Corolla Electronics Co., Ltd. from Weng Weiwen and 30 other shareholders on September 6, 2014.