Qi Yong Qiang and Wan Li Group Company Limited entered into an agreement to acquire 74% stake in Ningbo Yidong Electronic Co. Ltd. (SEHK:8249) from China Ruilian Holding Corp, Wang Ya Qun, Wei Hong Jun, YanLi, Shi Jian Er, Gong Zheng Jun and Chen Zheng Tu for CNY 37 million in cash on December 19, 2011. Qi Yong Qiang and Wan Li will acquire 306.9 million and 63.1 million shares respectively. The offer per share is CNY 0.1. Wan Li Group will settle the consideration with China Ruilian within 10 days from the completion date pursuant to the share transfer agreement. Wan li Group will acquire 61.38% stake while Qi Yong Qiang will acquire 12.62% stake in Ningbo Yidong Electronic Co. China Ruilian Holding Corp will sell 25.9% stake, Wang Ya Qun will sell 7.57% stake, Wei Hong Jun will sell 0.64% stake, Shi Jian Er will sell 0.64% stake, Gong Zheng Jun will sell 18.33% stake while Chen Zheng Tu will sell 12.62% stake in Ningbo Yidong Electronic Co. In respect of the acquisition of 306.9 million domestic shares by Wan Li Group under the share transfer agreement, the consideration for an aggregate of 177.4 million domestic shares as agreed to be sold by Wang, Gong, Yang, Wei and Shi has been settled. In respect of the acquisition of 63.1 million domestic shares by Qi Yong Qiang under the share transfer agreement, the consideration to be sold by Chen Zheng Tuhas been settled. After the share transfer agreement, the possible mandatory unconditional cash offer will be made by Partners Capital International Limited on behalf of Hongkong Lotteon for all the H Shares not already owned or agreed to be acquired by Hongkong Lotteon, Qi Yong Qiang and Wan Li Group Company in accordance with the takeovers code. If completion of the share transfer agreement takes place, it is expected that some of the existing Directors, namely Liu Xiao Chun, Gong Zheng Jun, Chen Zheng Tu, Zheng Yi Song, Liu Feng, Wang Wei Shi and Pang Jun will resign from their office with effect from the earliest time permitted under the takeovers code. Qi Yong Qiang and Wan Li Group Company intend to nominate Mr. Zhu Guo, Qi Yong Qiang and Zhu Chun Rong as the executive Directors, Jiang Guo Ping, Zheng Xin and Zhu Guo Dan as the non-executive Directors and Lu Xuan as an independent non-executive Director and such appointments will not take effect earlier than the date of posting of the offer document subject to the requirements under the takeovers code. The deal is subject to the publication of this joint announcement on the stock exchange and approval by shareholders of Ningbo Yidong Electronic. The deal is expected to be completed after the completion date of the change of business registration in relation to the share transfer agreement at Ningbo Administration for Industry & Commerce. If the conditions are not satisfied on or before June 30, 2012 or such other date as the parties to the share transfer agreement may agree, the agreement shall cease and be terminated. As of March 29, 2012, Ningbo Yidong Electronic announced that extraordinary general meeting is scheduled for May 19, 2012 for shareholders to approve the transaction. The Board of Directors of Ningbo Yidong Electronic recommends the shareholders to approve the share transfer agreement. The transaction was approved by the shareholders of Ningbo Yidong Electronic on May 19, 2012 in an extraordinary general meeting. Chanceton Capital Partners Limited acted as financial advisor for Ningbo Yidong Electronic Co. Qi Yong Qiang and Wan Li Group Company Limited completed the acquisition of 74% stake in Ningbo Yidong Electronic Co. Ltd. (SEHK:8249) from China Ruilian Holding Corp, Wang Ya Qun, Wei Hong Jun, YanLi, Shi Jian Er, Gong Zheng Jun and Chen Zheng Tu on May 24, 2012. All the conditions under the agreement have been fulfilled.