Gelin Electronics: Reply to Inquiry Letter Regarding Review of Issuance of Shares for acquisition of Assets

Gailun Electronics announced that the company plans to issue shares and pay cash to acquire 100% equity of Chengdu Ruicheng Xinwei and 45.64% equity of Nano Microelectronics, and to raise supporting funds. This transaction constitutes a major asset restructuring and related-party transaction. On January 9th, the company received an inquiry letter from the Shanghai Stock Exchange for review, and the company and its intermediaries have completed the replies and revisions to the draft. This transaction still needs to be approved by the Shanghai Stock Exchange, and the registration approval from the China Securities Regulatory Commission is uncertain in terms of approval and timing. The company will proceed with the related work and disclose it in accordance with regulations.