In the early spring of Year of the Ox, there is a good news for the group: the group has entered into an agreement with TECHCO Silicone & Technology Co.,Ltd. (hereinafter referred to as “TECHCO”) on acquiring all its assets,including its design and production technology, intellectual property,technology team, production facilities, customer resources, so as to expand the technology and capacity of the group in the silicone mold and production solutions,further expand product portfolio and market, consolidate the position of the world’s leading one-stop integrated injection molding solutions provider.Relevant agreement will take effect on April 1, 2021.

“TECHCO”is an enterprise focusing on precision LSR liquid silicone injection molding business, specializing in liquid silicone product research and development,mold design and manufacturing, production and assembly of silicone products,and providing customers with a full range of liquid silicone mold and product solutions. Silicone products are widely used in optical, medical, baby products, automotive, consumer electronics and household products. “TECHCO” has the capability of silicone product design, mold development and mass production,owns advanced technology and stable customer base, and enjoys a good reputation in the industry.

The group will set up a subsidiary “TK TECHCO (Dongguan) Co., Ltd.” (also referred to as “TK TECHCO”) as the buyer responsible for LSR business, in terms of operation management, “TK TECHCO” will become a new business unit (BU) under the injection molding factory (TKP) and assume the main function of agile“TKTECHCO” will continue to operate at its original location in Fenggang, Dongguanby employing former TECHCO management personnel. Following the completion of the acquisition, the group plans to increase its investment in LSR business to expand its production and business scale.

By virtue of the financial strength, customer network and corporate management of the group, we believe that the acquisition will generate synergies to drive the execution of LSR business strategy and the long-term development of the group,and will also help consolidate the group position as the world's leading one-stop injection molding solutions provider.