Wuhan Jingce Electronic Group Co., Ltd. Board of Directors' Explanation on the Company's Purchase and Sale of Assets in the Twelve Months Prior to the Transaction

Wuhan Jingce Electronic Group Co., Ltd. Board of Directors' Explanation on the Company's Purchase and Sale of Assets in the Twelve Months Prior to the Transaction

Wuhan Jingce Electronic Group Co., Ltd. (hereinafter referred to as the "Company" or "Jingce Electronics") intends to acquire 41.17% of the equity of Shanghai Jingce Semiconductor Technology Co., Ltd. (hereinafter referred to as the "Target Company") by issuing shares, convertible corporate bonds, and paying cash, and to raise supporting funds (hereinafter referred to as the "Transaction").