Harbin Weidi Electronics Co., Ltd. Completed the announcement of the establishment of a subsidiary and the acquisition of a business license

Stock code: 603023 Stock abbreviation: Weidi shares Announcement number: 2021-039

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:

● The name of the investment target: Weidi Electronic Technology Laishui Co., Ltd. (hereinafter referred to as "Weidi Laishui")

● Investment amount: 10 million yuan

● Special Risk Warning: This outbound investment is a prudent decision made from the company's long-term interests, but there are still risks caused by uncertainties in various aspects such as policies, management and partners.

1. Overview of outbound investment

(1) The basic situation of foreign investment

Harbin Weidi Electronics Co., Ltd. and Beijing Bus Group Asset Management Laishui Co., Ltd. intend to sign the "Strategic Cooperation Agreement for Enterprises Entering the Park of Public Transport Intelligent Manufacturing Industrial Park" to establish a strategic partnership. According to the agreement to set up a wholly-owned subsidiary in Laishui County, Baoding City, Hebei Province, Weidi Laishui will be dedicated as a funder, using its own funds of not more than 30 million yuan, and plans to use it for the construction, production and sales of CAN bus system and active safety system (ADAS collision prevention early warning system) project implementation.

(2) The above matters were deliberated and approved by the 19th meeting of the fourth session of the Board of Directors held by the Company on July 13, 2021.

(3) Others

This outbound investment does not constitute a related party transaction, nor does it constitute a material 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 the subsidiary that the subsidiary has completed the industrial and commercial registration procedures and obtained the "Business License" issued by the Laishui County Administrative Examination and Approval Bureau, and the relevant registration information is as follows:

1. Name: Weidi Electronic Technology Laishui Co., Ltd

2. Unified social credit code: 91130623MA7AGW7Y6P

3. Type: Limited liability company (sole proprietorship of a legal person invested or controlled by a natural person)

4. Fa Ding Representative: Cui Jianmin

5. Residence: South District, Laishui County Economic Development Zone, Baoding City, Hebei Province

6. Registration capital: 10 million yuan

7. Business scope: electronic technology development, consulting, transfer, promotion services; auto parts and

Accessories, intelligent in-vehicle equipment, sensitive components and sensors, transport equipment and

Manufacturing, sales, and software development of counting instruments for production. (Approval is required in accordance with the law.)

Quasi-projects, after approval by the relevant departments can carry out business activities)

8. Established: September 03, 2021

9. Business period: September 3, 2021 to long-term

10. Company Shareholder: Harbin Weidi Electronics Co., Ltd. holds 100% of the shares

Third, the impact of foreign investment on listed companies

The company set up a wholly-owned subsidiary of Weidi Laishui in Laishui County, Baoding City, Hebei Province, which is an opportunity for the company to actively grasp the construction concept of Beijing Bus Group Asset Management Laishui Co., Ltd. around the construction concept of "Chuangzhi", the development mode of "high-end leading + cluster innovation", and the use of unique "customized" services to drive the high-end resources of upstream and downstream supporting enterprises to gather and create a "whole industrial chain of public transportation". After friendly consultations, the two sides decided to establish a strategic cooperative partnership. Through the construction of mutually beneficial and win-win strategic cooperation alliances, we will give full play to our advantages in their respective fields and comprehensively expand the fields of cooperation. Under the opportunity of the Beijing-Tianjin-Hebei integration policy, we will give full play to the advantages of the industrial field and plan to implement the project in Laishui "Public Transport Intelligent Manufacturing Industrial Park" to create a new profit growth point for the company.

This investment is a strategic layout investment in the company's plan, which will not have a significant adverse impact on the company's finances and will not harm the interests of the company and all shareholders. From the perspective of the company's long-term development, it will have a positive impact on the company's performance improvement and profit growth.

Fourth, the risk analysis of foreign investment

This outbound investment is a prudent decision made from the company's long-term interests, but there are still risks caused by uncertainties in various aspects such as policies, management and partners, and the company will adopt appropriate strategies and management measures to strengthen risk management and control, and actively prevent and respond to risks.

This is hereby announced.

Harbin Weidi Electronics Co., Ltd. Board of Directors

September 3, 2021