Zhejiang Zhongde Automatic Control Technology Co., Ltd.

Announcement of Resolutions of the Sixteenth Meeting of the First Board of Directors

The company and all members of the board of directors guarantee the truthfulness, accuracy and completeness of the announcement content, without false records

Misleading statements or major omissions, and bear individual and joint legal liabilities for the truthfulness, accuracy and completeness of the content.

1. The situation of the meeting

The sixteenth meeting of the first board of directors of Zhejiang Zhongde Automation Technology Co., Ltd. (hereinafter referred to as the "Company") was held on October 19, 2016 in the company's conference room. The meeting has been notified in writing 10 days in advance.

The meeting was presided over by the company’s chairman Zhang Zhongmin. 7 directors should be present at this meeting, and 7 directors were actually present. All the company’s supervisors and some senior management personnel attended the meeting as nonvoting delegates. The convening of the meeting complies with the relevant provisions of the "Company Law" and the "Articles of Association".

2. Proposals and voting conditions considered at the meeting

After deliberation by all directors attending the meeting, the meeting adopted the following motions by a show of hands:

1. Deliberated and passed the "Proposal on the Company's Application for Loans from the Changxing Sub-branch of Agricultural Bank of China Co., Ltd.", and submitted it to the 2016 Third Extraordinary General Meeting of Shareholders for deliberation;

Voting results: 7 votes in favor, 0 abstentions, and 0 votes against.

2. Deliberated the "Proposal on Company Shareholders Providing Guarantees for Company Loans". As related directors Zhang Zhongmin, Zhang Deguang, Zhang Zhongyi, Zhang Dechun, Zhang Zhongbiao and Chen Xiaohua abstained from voting, the board of directors had fewer than three members. According to the "Articles of Association", the proposal It needs to be submitted to the company's third extraordinary general meeting of shareholders in 2016 for deliberation.

3. Deliberated and passed the "Proposal on Enactment", and submitted it to the 2016 Third Extraordinary General Meeting of Shareholders for deliberation;

Voting results: 7 votes in favor, 0 abstentions, and 0 votes against.

4. Deliberated and approved the "Proposal on Proposal to Convene the Third Extraordinary General Meeting of Shareholders in 2016";

Voting results: 7 votes in favor, 0 abstentions, and 0 votes against.

3. Documents for reference

(1) The resolutions of the 16th meeting of the first board of directors of the company;

(2) Fund-raising management system.

Zhejiang Zhongde Automatic Control Technology Co., Ltd.

Board of Directors

October 20, 2016