Board of Directors' Explanation on Confidentiality Measures and System for the Transaction
Shenzhen Goodix Wireless Technology Inc. (hereinafter referred to as the "Company") proposes to acquire 37.16% of the shares of Shenzhen Honsheng Electronics Co., Ltd. (hereinafter referred to as the "Target Company" or "Honsheng Electronics") by way of cash payment, and to control the Target Company through an acting-in-concert agreement (hereinafter referred to as the "Transaction"). Upon completion of the Transaction, Honsheng Electronics will become a controlling subsidiary of the Company.