Shun electronics 124 million yuan to buy the South Glass electronics to avoid competition

In order to avoid competition in the industry, Shun Electronics (002138) to be held by the South Glass a holding Shenzhen CSG Electronics Co., Ltd. 100% equity. The company announced today that the company and CSG a signed the "Equity transfer contract" on January 13, 2008, CSG A will be held by the South Glass electronics 50 million yuan equity (100% of the registered capital) transferred to Shun Electronics, the contract total price of 124 million yuan. The above price is composed of three parts, the first part is the transfer price of all the shares of CSG electronic is 97.8 million yuan; the other two parts are based on the accounting statement as at December 31, 2007, the South Glass electronic knot owes South Glass A's internal borrowings 8.087 million yuan and the South Glass electron to deal with the South Glass a dividend 18.5958 million Shenzhen CSG electronic registered capital of 50 million yuan, the Department of CSG a wholly-owned enterprises, CSG a decided to the South Glass electronic equity integration, its holding of the South Glass electronic equity transfer to the company. As of December 31, 2007, CSG electronic total assets of 160 million yuan, 2007 net profit of 8.148 million yuan. At the same time, CSG a guarantees that, within three years after the entry into force of this contract, the manufacture of electronic ceramic components and related products shall not be made in cooperation with other parties, nor shall the technical support or services of the above-mentioned products be provided to any third party. CSG electronic now holds "SNEC" registered trademarks and related to the production and manufacture of electronic ceramic components and associated products of patents, proprietary technology, etc. belong to the transfer of the intangible assets involved in the scope of the transfer to the company.