Mr. Philip Lo reports

CHINA KELI RECEIVES UPDATED NON-BINDING OFFER FOR GOING PRIVATE TRANSACTION

China Keli Electric Company Ltd. has received an updated non-binding letter of intent from 1062560 B.C. Ltd., a corporation controlled by the company's chairperson, Sou Wa Wong, to take the company private by way of amalgamation. As proposed under the non-binding offer, 1062560 B.C. and the company will amalgamate to create a new company, and the company's common shares held by existing shareholders of the company, other than those held by Ms. Wong and Lou Meng Cheong, will be exchanged for redeemable preferred shares of the amalgamated company and be redeemed immediately after the amalgamation at the redemption price of six cents per share. Ms. Wong and Mr. Lou will be the only remaining shareholders of the amalgamated company. The special committee formed by the board of directors of the company has engaged independent legal counsel, and, if deemed appropriate, engaged other professionals, to assist in the review of the proposed amalgamation and to negotiate with the acquirer with a view of reaching a definitive agreement in relation to the proposed amalgamation.

The proposed amalgamation is subject to a number of conditions, including the entering into of a definitive agreement no later than June 3, 2016, regulatory and shareholders' approval, and other conditions customary in similar going-private transactions. There is no assurance that the proposed amalgamation will be completed.

We seek Safe Harbor.