JRH Microelectronics (Quzhou) Co., Ltd. singed a Share Purchase Agreement to acquire a 58.7% stake in Guojing (Jiaxing) Semiconductor Co., Ltd. from Shanghai Zhezhong Group Co.,Ltd (SZSE:002346) and Shanghai Kangfeng Investment Management Co., Ltd. for approximately CNY 630 million on February 7, 2022. JRH Microelectronics shall pay CNY 315.2 million each on March 10, 2022 and after the completion of the transfer and before May 8, 2022. As part of the transaction, JRH Microelectronics will acquire 44.44% stake from Shanghai Zhezhong Group for CNY 352.6 million and 14.25% stake from Shanghai Kangfeng Investment for CNY 277.9 million in Guojing (Jiaxing) Semiconductor.

For the year ended December 31, 2021, Guojing (Jiaxing) Semiconductor reported Total Assets of CNY 1.87 billion, Net Assets of 1.11 billion, Revenue of CNY 23,211 and Net loss of CNY 46.59 million. This has been approved by the board of Hangzhou Lion Electronics Co., Ltd., parent of JRH Microelectronics and does not need the Shareholders' Approval.