| In 1997 Kepengda Industrial Limited ('KPD Industrial'as below) was established in Shenzhen with a view to introducing NTCcomponents
available overseas into the emerging domestic market. Principally engaged in provision of NTC components under foreign brands at its early stage,
KPD Industrial's founders sharply perceived and seized the indefinite business opportunities in the domestic market. Leveraging on decisive investment
worth millions of dollars and close cooperation with professional scientific institutions, KPD Industrial succeed its research and development of NTC
chips and the mass production comes to fruition, which achieved an excellent track record, assisted Chinese NTC enterprises in building national brands,
and diversified product portfolios in the domestic market where once Japanese and American products dominated. KPD Industrial earned honorary
recognition of High-tech POE by the Shenzhen Government.
| Development over the last decades armed Kepengda Electronics Co. Ltd (“KPD Electronics” as below)with strong technical core
competency in research and development of NTC chips, allowing KPD Electronics to possess advanced automated production process featured
with self-owned intellectual properties. In 2008 KPD Electronics injected further investment of RMB 30 million into the NTC chip R&D hub located
in Huangjiang of Chuangjian Kepengda Tech Park, Dongguan City, taking a leading position in the research and development field NTC in China.
| Currently, KPD Electronics boasts its powerful production capacity of an annual output of 1.5 billion NTC chips and 500 million
thermistors in various series together with over 10 million of temperature sensors. By June 2009, KPD Electronics has just relocated itself into a
new research and development hub, significantly doubling its production capacity.