(1) Application for the line of credit in 2024

In order to meet the needs of the company's operation and business development, the Company and its subsidiaries within the scope of the consolidated statements in 2024 are expected to apply to banks and non-bank financial institutions for a comprehensive line of credit totaling not more than RMB 800 million. Types of credit include but are not limited to working capital loans, non-working capital loans, project construction loans, merger and acquisition loans, bank acceptance bills, accounts receivable factoring, financial leasing, supply chain financing, The application for the comprehensive line of credit is valid from the date of the seventh meeting of the fourth Board of Directors of the Company to the date of the board of directors of the expected matters of the review and approval of the new guarantee limit. The above line of credit is not equal to the actual amount of financing of the company and its subsidiaries, and the actual amount of financing should be within the line of credit. The specific credit business types, quotas, terms and interest rates are subject to the actual approval results of the relevant financial institutions and the actual contracts signed. The above credit line can be used on a rolling basis within the scope and validity period of the authorization and can be adjusted between different financial institutions.

The Board of Directors of the Company authorizes the chairman of the Board or the authorized agent designated by the Chairman to handle the specific credit granting business according to the actual needs of the company and sign the relevant legal documents within the aforesaid credit limit and term.

(2) Basic situation of guarantee

In order to meet the daily operation and business development needs of the Company and its subsidiaries, and for the Company and its subsidiaries to apply to business partners (including but not limited to banks, financial institutions and other business partners) for comprehensive credit granting or other business operations to carry out smoothly and improve capital turnover efficiency, the Company intends to, on the premise of ensuring standardized operation and controllable risks, It is estimated that the total amount of guarantees in 2024 will not exceed RMB 800 million.

The aforementioned guarantee is limited to the mutual guarantee between the Company and its subsidiaries, including the company's guarantee for the subsidiary, the mutual guarantee between the subsidiary, the subsidiary's guarantee for the company, etc., excluding the guarantee for the entity other than the company and the subsidiary.

The aforementioned forms of security include but are not limited to mortgage, pledge, lien, general guarantee, joint and several liability guarantee, maximum guarantee and other forms of security under applicable laws and regulations.

The guarantee facility is valid from the date of approval at the shareholders' meeting for the consideration of the projected issue of the Guarantee Facility for 2024 to the date of approval at the shareholders' meeting for the consideration of the projected issue of the new guarantee Facility, and the guarantee facility can be recycled during the said validity period.

The total amount of the guarantee mentioned above is not equal to the actual amount of the guarantee, and the actual amount of the guarantee incurred depends on the actual amount of the debt of the relevant transaction party of the secured debtor. The specific guarantee amount, guarantee period, guarantee rate, guarantee method and other contents shall be subject to the formally signed guarantee document.

Within the scope of the consolidated statement, the counterguarantee provided by the subsidiary to relevant parties as required by its business is no longer subject to separate consideration within this limit. There is no counterguarantee when the Company provides guarantee for a wholly-owned subsidiary; When a non-proportional guarantee is provided to a non-wholly-owned subsidiary, the company or other shareholders are required in principle to provide a counter-guarantee corresponding to the proportion of capital contribution.

At the same time, the Board of Directors requests the general meeting of shareholders to authorize the chairman of the Company or the authorized agent designated by the Chairman to handle specific guarantee matters and sign relevant guarantee documents within the above-mentioned quota according to the needs of the actual operation of the company and its subsidiaries.

(3) The internal decision-making procedures for the expected performance of the comprehensive credit and guarantee amount of this application and the procedures that need to be performed

On December 20, 2023, the seventh meeting of the fourth Board of Directors of the Company was held to consider and pass the "Motion on the Company's application for a comprehensive credit Line in 2024" and the "Motion on the Company's forecast of a Guarantee line in 2024"; On the same day, the sixth meeting of the fourth session of the Board of Supervisors was held to consider and pass the "Motion on the Company's 2024 annual guarantee amount forecast". The independent directors have expressed an unequivocally agreed independent opinion on the projected amount of this 2024 guarantee. The proposal still needs to be submitted to the company's general meeting for consideration.