CITIC Securities Co., Ltd. Regarding Guangzhou Fastcom Wireless Communication Co., Ltd.'s Special Due Diligence Opinion on Industry Policy and Transaction Type for the Transaction
Guangzhou Fastcom Wireless Communication Co., Ltd. (hereinafter referred to as "the Company" or "Fastcom") plans to acquire 37.16% of the shares of Shenzhen Hongsheng Electronics Co., Ltd. (hereinafter referred to as "the Target Company" or "Hongsheng Electronics") by paying cash, and thereby control the Target Company through an acting-in-concert agreement (hereinafter referred to as "the Transaction"). The Transaction constitutes a major asset restructuring for the Company.
As the independent financial advisor for the Company in this Transaction, CITIC Securities Co., Ltd. (hereinafter referred to as "the Independent Financial Advisor") has reviewed the "Shenzhen Fastcom Wireless Communication Co., Ltd. Major Asset Purchase Report (Draft)" and materials provided by all parties related to this Transaction, in accordance with the requirements of the "Supervision Rule Application Guidelines - Listed Companies No. 1" and other normative documents issued by the China Securities Regulatory Commission (hereinafter referred to as "CSRC"). The Independent Financial Advisor hereby expresses its due diligence opinion on the following matters related to the Transaction: