At the tenth meeting of the fifth board of directors held on January 7, 2014, the company reviewed and approved the "Proposal on the Establishment of a Holding Subsidiary Using Part of the Over-raised Funds" and agreed to use the over-raised funds of 25.5 million yuan in cash with two natural persons. Invested to establish a subsidiary company with a registered capital of 50 million yuan. Among them, the company's investment accounted for 51% of the registered capital.

       On March 5, 2014, Zhejiang Rifa Precision Machinery Co., Ltd. (hereinafter referred to as "Rifa Precision Machinery") established a new subsidiary, Zhejiang Rifa Aviation Digital Equipment Co., Ltd. (hereinafter referred to as "Rifa Aviation Equipment") to complete the business Registration procedures, and obtained the "Business License" issued by the Xinchang County Administration for Industry and Commerce, representing the formal establishment of Rifa Aviation Equipment Company.

        Rifa Aviation Equipment is a holding subsidiary of Rifa Precision Machinery, specializing in the development and manufacture of special processing equipment for aerospace and digital equipment systems, high-precision aerospace parts and fixtures and other equipment.