Harbin Weidi Electronics Co., Ltd. Announcement on the establishment of equity investment by wholly-owned subsidiaries and the acquisition of business licenses by partnerships

Stock code: 603023 Securities abbreviation: Weidi shares Announcement number: 2021-035

The Board of Directors and all Directors of the Company warrant that the contents of this announcement are free from any misrepresentation, misleading statement or material omission and accept sole and several liability for the truthfulness, accuracy and completeness of the contents.

If any director cannot guarantee or has objections to the authenticity, accuracy and completeness of the contents of the interim announcement, the company shall make a special reminder in the announcement.

Important Content Tips:

● Name of the investment target: Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership)

● Special Risk Warning:

(1) Lishui Liwei Equity Investment Co., Ltd. (hereinafter referred to as "wholly-owned subsidiary") participated in the investment and establishment of Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership) around the high-end equipment and intelligent manufacturing industries related to the automotive field, and Harbin Weidi Electronics Co., Ltd. (hereinafter referred to as "Weidi Shares") has a strong synergy relationship, there is currently uncertainty about the target project, there may be a risk that the target project operation and management is not good, and the expected synergy effect cannot be achieved;

(2) The investment period is long, may face a longer investment return period, there may be a risk of not being able to achieve the expected returns, and not being able to exit in a timely and effective manner;

(3) The investment amount is large, if the manager cannot fully demonstrate and manage the investment target before and after investment, there may be a risk of large investment losses;

1. Overview of outbound investment

(1) In order to support The Company to become bigger and stronger, this project intends to rely on the listed company platform to invest in high-end equipment and intelligent manufacturing industries related to the automotive field, and at the same time use professional management institutions to find and reserve high-quality project resources to create a new profit growth point for the company.

(2) At the 16th meeting of the 4th Board of Directors held on 22 January 2021 and the 2nd Extraordinary General Meeting of Shareholders of 2021 held on 8 February 2021, the Matter was deliberated and approved by the "Proposal on The Investment and Establishment of Industrial Funds and Related Party Transactions", which can be found on 23 January 2021 and 9 February 2021 published on the websites of China Securities News, Shanghai Securities News, Securities Times, Securities Daily and Shanghai Stock Exchange www.sse.com.cn Harbin Weidi Electronics Co., Ltd. 4th Board of Directors 16th Meeting Resolution Announcement Announcement No.: 2021-007, "Announcement of resolutions of the Company's 2021 Second Extraordinary General Meeting of Shareholders" Announcement No. 2021-009.

(3) The actual controller of Shanghai Jiuyou Chuangu Investment Management Co., Ltd. (hereinafter referred to as "Jiuyou Chuangu") is Mr. Liu Xiaolong. Mr. Liu Xiaolong will serve as a director of Weidi Shares, and Jiuyou Chuangu (appointed representative: Liu Xiaolong) will serve as the executive partner of Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership), in summary, Mr. Liu Xiaolong and this transaction will constitute a related party transaction, and there is no other related party relationship. This outbound investment does not constitute a major asset restructuring as stipulated in the Measures for the Administration of Material Asset Restructuring of Listed Companies.

Second, the basic situation of the investment target

Recently, the company received a notice from a wholly-owned subsidiary that Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership) has completed the industrial and commercial registration procedures and obtained the "Business License" issued by the Lishui Market Supervision and Administration Bureau, and the relevant registration information is as follows:

1. Name: Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership)

2. Unified social credit code: 91331100MA2HLAEC5F

3. Type: Limited Partnership

4. Managing Partner: Shanghai Jiuyou Chuangu Investment Management Co., Ltd. (Delegated Representative: Liu Xiaolong)

5. Main business place: International Automobile City, No. 309 Lugu Avenue, Nanmingshan Street, Liandu District, Lishui City, Zhejiang Province

Building 15, Level 11 - 149

6. Business scope: general projects: equity investment; information consulting services (excluding licensing information consulting services) (except for projects that require approval according to law, independent business activities are carried out according to law with business licenses).

7. Established: August 23, 2021

8. Partnership period: August 23, 2021 to August 23, 2031

Third, the impact of foreign investment on listed companies

This project further clarifies the business development direction of the coordinated development of the company's industrial operation and capital operation, and the follow-up investment plan and time depend on the capital situation of the listed company, which will never affect the continuous operation and development of the company's original business sector, and will not affect the realization of the performance commitment of the original controlling shareholder.

The source of funds for this investment is the company's own funds, the risk exposure borne by the company is limited to the amount of investment, there is no situation that harms the interests of the shareholders of the listed company, there is no interest transmission between the controlling shareholder and the project, and the controlling shareholder does not use its own decision-making and control advantages to engage in acts that harm the legitimate rights and interests of the shareholders of the company and other companies and will not affect the independence of the company.

Fourth, the risk analysis of foreign investment

In the process of operation, it will be affected by various factors such as economic environment, industry cycle, operation and management of investment targets, trading schemes, etc., including but not limited to:

(1) The main business of Weidi co., LTD. is the research and development, design, manufacturing and sales of automotive electronic products, and the Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership) invested and established by the wholly-owned subsidiary this time focuses on the high-end equipment and intelligent manufacturing industries related to the automotive field, and there is a strong synergy relationship with the main business of WD Shares, and there is currently uncertainty about the target project, and there may be a risk that the target project operation and management are not good and the expected synergy effect cannot be achieved;

(2) The investment period is 10 years, the first five years are the investment period, the sixth to tenth years are the management period and the exit period, and the above ten years of operation period is six months before the expiration of the above ten years, and all partners decide whether to extend the period for two years after consultation. This investment may face a long return period, and there may be a risk that the expected return cannot be realized and the exit cannot be made in a timely and effective manner;

(3) The investment in the establishment of Lishui Liwei Jiuyou Equity Investment Partnership (Limited Partnership), wholly-owned subsidiary subscribed to contribute 250 million yuan, the amount of this investment is large, if the manager can not fully demonstrate the investment target and post-investment management, there may be a risk of large investment losses;

(4) Other risks such as the occurrence of force majeure events.

This is hereby announced.

Harbin Weidi Electronics Co., Ltd. Board of Directors

August 26, 2021