Shanghai Feilo Acoustics Co., Ltd (SHSE:600651) agreed to acquire Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd. from a group of shareholders for CNY 2.7 billion on December 13, 2019. Shanghai Feilo Acoustics Co., Ltd shall issue 619.2 million shares as consideration. Shanghai Feilo Acoustics Co., Ltd (SHSE:600651) agreed to acquire Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd. from a group of shareholders for approximately CNY 5 billion. As on August 13, 2020, Shanghai Feilo Acoustics Co., Ltd approved to issue of 495,356,678 shares to INESA (Group) Co., Ltd., 92,879,377 shares to Shanghai Lingang Economic Development (Group) Co., Ltd, 30,959,792 shares to Shanghai Huayi Group Corporation Limited, 614,806,959 shares to Shanghai INESA Electron (Group) Co., Ltd., 28,196,314 shares to Shanghai Union Asset Management Co., Ltd., 2,787,769 shares to Shanghai Changfeng Industrial Corporation, 469,938 shares to Shanghai Fuxin Communication Technology Development Co., Ltd., 469,938 shares to Shanghai Quyou Network Technology Co., Ltd., 3,261,690 shares to Hong Bin, 1,393,884 shares to Lu Fengying, 464,628 shares to Gong Defu, 464,628 shares to Gu Qiuhua, 464,628 shares to Wen Xiang, 278,776 shares to Zhao Ping, 148,681 shares to Xu Huanjian, 148,681 shares to Hu Jun, 148,681 shares to Li Xinhua, 92,925 shares to Liu Ying, 92,925 shares to Guo Mei, 92,925 shares to Li Chengyu, 92,925 shares to Lu Xueyuan, 92,925 shares to Zhu Zhaomei, 74,340 shares to Xu Zhen, 37,170 shares to Xu Jianping, 37,170 shares to Fang Jiaming, 23,231 shares to Zhang Xiangsheng and 23,231 to Rao Mingqiang. Post completion, Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd will operate as wholly-owned subsidiaries of Shanghai Feilo Acoustics Co., Ltd.

For the year ended December 31, 2018, Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd. reported total assets of CNY 3.4 billion, revenues of CNY 2.7 billion, net income of CNY 148.3 million and net assets of CNY 2.3 billion. Boards of Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd. need to fulfill the internal decision-making review process and approve the deal. The deal also requires approval from SASAC, China Securities Regulatory Commission and shareholders of Shanghai Feilo Acoustics Co., Ltd. On December 13, 2019, the Board of Directors of Shanghai Feilo Acoustics Co., Ltd approved the transaction. On May 12, 2020, SASAC approved the transaction. The Merger, Acquisition and Reorganization Examination Committee of Listed Company (the Committee) of the China Securities Regulatory Commission will hold a working conference on July 16, 2020 to verify connected transaction of assets purchase through shares issuance. As of July 16, 2020, securities regulator approved the transaction. As of August 13, 2020, China Securities Regulatory Commission approved the deal. He Qing, Chen Shilai, Wang Pai, Jiang Hualin of Guotai Junan Securities Co., Ltd. (SHSE:601211) acted as financial advisors for Shanghai Feilo Acoustics. Li Qiang, Lin Lin, Chen Jie and Fei Yuanshi of Grandall Lawyer (Shanghai) Office acted as legal advisors to Shanghai Feilo in the transaction. Zhang Xiaorong, Zhuang Yibei and Hong Liangjun of Shanghui Certified Public Accountants (Special General Partnership) acted as accountants to Shanghai Feilo in the transaction. Qiu Jingzhi, Ye Hui, Li Jinghao, He Hao and Du Wenhao of Baker Tilly International Accounting Firm (Special General Partnership) acted as accountants to Shanghai Feilo in the transaction. Fang Ming and Wang Xiaomin of Shanghai Dongzhou Asset Appraisal Co., Ltd acted as evaluation agency in the transaction.

Shanghai Feilo Acoustics Co., Ltd (SHSE:600651) completed the acquisition of Shanghai Industrial Automation Instrumentation Research Institute Co., Ltd., Shanghai Yidian Automotive Electronic System Co., Ltd. and Shanghai Yidian Intelligent Electronics Co., Ltd. from a group of shareholders on August 19, 2020. Shanghai Feilo Acoustics Co., Ltd completed the acquisition of Shanghai Yidian Automotive Electronic System Co., Ltd. on August 18, 2020.