Material Information

2020-06-04

YFY announced the Board's resolution to provide commitments for its subsidiary, Arizon RFID Technology Co., Ltd., to be listed on the China Stock Exchange

1.Date of the board of directors:2020/06/04
2.Name of subsidiary:Arizon RFID Technology Co., Ltd.
3.Relationship to the Company and shareholding ratios of subsidiaries:
The company holds 86.51% equity of Arizon RFID Technology Co., Ltd. through
YFY Global Investment BVI Corp. and then through YFY RFID Co. Limited
accordingly.
4.The undertaking that material impact on the finance, business or
shareholder equity of the listed company and the subsidiary./Impact
on the finance, business or shareholder equity of the listed
company and the subsidiary:
In order to develop RFID market, attract local talents, further enhance
market share and improve its global competitiveness, Arizon RFID Technology
Co., Ltd. (hereinafter referred to as ”Arizon”), is preparing to be listed
on the China Stock Exchange. According to the requirements of the relevant
China security authorities' regulations, Arizon and its directly or
indirectly controlling shareholders (i.e. Arizon, YFY Global Investment BVI
Corp., and YFY RFID Co., Ltd.) must provide commitments and declarations
for the IPO purpose. After the appropriate evaluation by the Company's
audit committee, the commitments and declarations have no material impact
to the direct or indirect controlling shareholders (including YFY) and
Arizon's finance, operation and shareholder’s equity.
5.All of the undertaking:
1) Letter of Commitment on stabilizing the stock price within three years
after its listing.
2) Letter of Commitment of its prospectus is free from false records,
misleading contents and major omission.
3) Letter of Commitment by the controlling shareholders on the liquidation
restriction, voluntary lock-in and reduction of shares holdings.
4) Letter of Commitment by the controlling shareholders on compliance and
reduction of related party transactions.
5) Letter of Commitment on taking measures to report timely on the diluted
returns.
6) Restraint measures for the failed performance of the public commitments.
7) Commitment to pay the social security and housing reserve fund.
8) Commitment by the controlling shareholders on the avoidance of occupying
funds.
9) Letter of Commitment on the principle of “five independences” between
the controlling shareholders and Arizon in terms of asset independence,
personnel independence, financial independence, legal entity independence
and business independence.
10) Letter of Commitment by the controlling shareholders on the avoidance of
competition.
11) Commitment of Arizon’s policy on the profit distribution.
6.Date of the special committee or audit committee:2020/06/04
7.Any other matters that need to be specified:NA