主要客户供应商重叠

During the Track Record Period, certain of our five largest customers were also our suppliers, and certain of our five largest suppliers were also our customers, which is consistent with industry practice.

During the Track Record Period, we believe the gross profit margins attributable to sales to our Overlapping Customers were generally consistent with those realised for similar products sold to our other major customers, and the terms and conditions of the supply arrangements with our Overlapping Suppliers were negotiated on an arms’ length basis and were generally in line with those with other comparable suppliers.

To manage such risks, (i) we maintain separate commercial teams and approval processes for sales and procurement; (ii) we do not set off trade receivables against trade payables unless permitted by internal finance policies and agreed with the relevant counterparty, (iii) regularly review the contribution of each Overlapping Customer or Overlapping Supplier to our revenue and purchases and monitor concentration levels, (iv) benchmark the prices and terms offered to or obtained from the Overlapping Customers/Suppliers against those offered to or obtained from other independent customers and suppliers; and (v) seek to maintain alternative sources of supply for raw materials and a diversified customer base.

We primarily purchased photovoltaic modules from CHINT Group, with purchase amounts of RMB7,921.3 million, RMB4,549.6 million, RMB4,485.6 million and RMB1,994.5 million in 2023, 2024, 2025 and the six months ended June 30, 2026, respectively.

The sales and purchases with CHINT Group were conducted under separate business arrangements.

Customer-Supplier A purchased electricity generated from residential PV stations under cooperative co-build arrangements and, to a lesser extent, procured certain intelligent electrical products from us.

During the Track Record Period, our other income consisted of (i) interest income from bank deposits, time deposits, receivables for the disposal of long-term assets and finance lease receivable; (ii) government grants, which primarily represent subsidies granted by local government authorities to support our research and development as well as other operating activities; (iii) sales of materials, which primarily represent income from our disposal of raw materials to Hangzhou CoJourney subsequent to our lease of production facilities (the “Disposal”); and (iv) rental income from our lease of self-owned production facilities to Hangzhou CoJourney.

The Disposal was one-off in nature.

We do not intend to continue to source and sell raw materials to Hangzhou CoJourney.

During the Track Record Period, certain of our top five customers were also among our suppliers, while certain of our top five suppliers were also among our customers.

This overlap occurred primarily because these customers/suppliers are technology companies or marketing service providers.

All sales to and purchases from these customers and suppliers were negotiated through separate processes, conducted in the ordinary course of business, and carried out on commercial terms that were negotiated at arm’s length.

Supplier C was our customer during the Track Record Period and our major supplier in 2024, 2025 and the six months ended June 30, 2026.

Supplier G was our customer during the Track Record Period and our major supplier in 2024 and the six months ended June 30, 2026.

Negotiations of the terms of our sales to and purchases from these overlapping customer-suppliers were conducted on an individual basis, and the sales and purchases were neither interconnected nor inter-conditional.

We generated revenue from Customer B by selling our products to such customer and primarily purchased showcase robotics for exhibitions from such customer.

Revenue from Customer B was RMB11.4 million, RMB19.6 million, RMB30.2 million and RMB12.4 million in 2023, 2024 and 2025 and the three months ended March 31, 2026, respectively, and the purchase amount from Customer B was less than 0.5% of our total purchase amounts during the Track Record Period.

We negotiate the transactions with our overlapping customers and suppliers on an arm's-length basis with reasonable and fair pricing terms.

During the Track Record Period, (i) Group A, one of our five largest customers in 2023, 2024, 2025 and the six months ended June 30, 2026, was also one of our suppliers during the same periods and one of our five largest suppliers in 2025 and the six months ended June 30, 2026;

Since October 2024, Group B has discontinued its cooperation with our Company, as it had established its own in-house production capacity.

According to Frost & Sullivan, given considerations including raw materials quality control, cost management, supply chain security and deepened industrial chain collaboration, it is common for large customers in the electrolyte industry to require suppliers to purchase raw materials from them.

During the Track Record Period, certain of our five largest customers in each period also acted as our suppliers, or vice versa.

These overlapping customers and suppliers include Kingdom Sci-Tech, one of our largest customers in each period during the Track Record Period, was also a supplier during the Track Record Period.

Our Directors confirm that all of our sales to and purchases from these overlapping customers and suppliers were conducted in the ordinary course of business under normal commercial terms and on arm’s length basis.

For the years ended December 31, 2023, 2024 and 2025 and the six months ended June 30, 2025 and 2026, the revenue generated from sales to Customer-Supplier D amounted to RMB38.5 million, RMB54.0 million, RMB139.3 million, RMB51.4 million and RMB121.4 million, respectively, accounting for approximately 12.0%, 15.2%, 22.3%, 18.1% and 33.3% of our total revenue for the same respective period; and our purchase amounts from Customer-Supplier D for the same periods was RMB56.3 million, RMB45.5 million, RMB7.7 million, RMB6.3 million and RMB4.0 million, respectively, accounting for approximately 41.3%, 35.9%, 2.8%, 5.6% and 2.0% of our total purchase amounts for the same respective period.

This reciprocal customer-supplier arrangement is driven by clear commercial rationale and the complementary positioning of both parties within the PV industrial chain, as well as the independent operational nature of Customer-Supplier D’s relevant business segments.

During the Track Record Period, the sales and procurement transactions between us and Customer-Supplier D were independent transactions, all conducted in accordance based on commercial terms negotiated on an arm’s length basis.

During the Track Record Period, certain entities were both our customers and our suppliers (and vice versa).

Supplier D was among our top five suppliers in 2023. We mainly purchased magnetic core from it. Supplier D also purchased energy storage products from us in 2025.

Our Directors confirm that transactions with these overlapping customers and suppliers during the Track Record Period were conducted on normal commercial terms in the ordinary course of business.

During the Track Record Period, certain of our five largest customers in each year during the Track Record Period also acted as our suppliers, or vice versa.

The revenue generated from the overlapping customers and suppliers were RMB1,840.0 million, RMB2,363.0 million, RMB2,149.3 million and RMB1,184.2 million in 2023, 2024, 2025 and for the six months ended June 30, 2026, respectively, accounting for 10.5%, 11.9%, 10.6% and 11.2% of our total revenue for the same periods, respectively.

Our purchase amount from the overlapping customers and suppliers were RMB2,334.5 million, RMB2,768.5 million, RMB3,116.4 million and RMB1,413.2 million in 2023, 2024, 2025 and for the six months ended June 30, 2026, respectively, accounting for 14.1%, 16.4%, 18.6% and 16.9% of our total purchase amount for the same periods, respectively.

Customer I, one of our five largest customers in 2024, was also our supplier.

In 2023, 2024 and 2025 and the six months ended June 30, 2026, the revenue that we generated from Customer I amounted to RMB0.9 million, RMB4.4 million, RMB5.7 million and RMB3.1 million, respectively, accounting for 1.0%, 3.2%, 2.3% and 2.3% of our total revenue, respectively.

As a result, it is common for upstream and downstream enterprises within the industry to engage in transactions with each other as both suppliers and customers.

Company A, Company B, Company C and Company D each were among our five largest customers and five largest suppliers in 2023, 2024 and 2025 and the three months ended March 31, 2026.

The overlapping of these major customers and suppliers was primarily attributable to the following reasons: (i) our five largest customers are all leading lithium-ion battery manufacturers, which are the key target customers of us and other cathode material producers; and (ii) lithium sources are critical upstream raw materials in the lithium-ion battery industry value chain.

The negotiations of the sales and purchase terms with the overlapping customers and suppliers were conducted separately and on an individual basis, and the relevant sales and purchases were entered into on normal commercial terms following arm’s length negotiations with reference to the then prevailing market prices.

During the Track Record Period, there were two entities, namely Customer C and Customer D, which were among our five largest customers and also our suppliers.

During the Track Record Period, we made only one purchase from Customer C, amounting to RMB25,800, schooling which occurred during the six months ended June 30, 2026.

The aggregate purchase amounts from Customer D were nil, RMB2.2 million, RMB7.2 million and RMB3.0 million, in 2023, 2024, 2025 and the six months ended June 30, 2026 respectively, representing approximately nil, 0.4%, 1.0% and 0.6% of our total purchases during the same periods.

Our sales to Supplier/Customer A accounted for less than 3.5% of our total revenue in 2023, 2024, 2025 and the four months ended April 30, 2026.

Accordingly, the sales and procurement transactions were independent of each other, conducted on normal commercial terms and in line with our ordinary business practices.

Our sales and purchases with the Supplier/Customer A and the Customer/Supplier B were not inter-conditional with each other.

During the Track Record Period, we purchased raw materials and retrofit services from Supplier H.

In 2023, 2024 and 2025 and for the five months ended May 31, 2025 and 2026, revenue generated from the purchases from Supplier H accounted for 0.04%, 0.3%, 1.1%, 0.9%, and 1.9% of our total revenue for the same periods, respectively.

Negotiations of the terms of our sales to and purchases from such overlapping customers and suppliers were conducted on an individual basis and the sales and purchases were neither inter-connected nor inter-conditional with each other.

In 2023, 2024 and 2025 and for the five months ended May 31, 2026, three, four, four and three of our five largest customers during the Track Record Period were also our suppliers, generating revenue of RMB10.6 billion, RMB23.2 billion, RMB30.5 billion and RMB11.8 billion, respectively, which represented 69.6%, 83.3%, 87.7% and 86.6% of our total revenue in the same years/period, respectively.

Certain of our Overlapping Customers and Suppliers require their suppliers, including us, to purchase certain raw materials and components manufactured or procured from themselves to exert overall control over the procurement process, and to better control the cost and quality of raw materials.

Our purchases from and sales to such Overlapping Customers and Suppliers were separate processes and took place at different stages of the industry value chain, and were conducted in the ordinary course of business and on commercial terms negotiated on an arm’s length basis.

During the Track Record Period, we sold cold chain agricultural products to certain customers who also acted as our suppliers.

In 2023, 2024 and 2025 and for the four months ended April 30, 2026, our revenue from such overlapping customers and suppliers, which were among our five largest customers during each year/period of the Track Record Period, was RMB433.6 million, RMB459.9 million, RMB466.1 million and RMB165.1 million, respectively, accounting for 34.6%, 15.4%, 7.9% and 5.9% of our total revenue for the corresponding periods.

In particular, for certain strategic customers, we adopted more competitive pricing, including in limited cases pricing below cost on specific transactions, to support long-term cooperation and business development, resulting in negative or lower margins in the relevant periods.

Customer E, being our fifth largest customer in 2023, was also our supplier in 2023 and 2025.

In 2023, 2024, 2025 and four months ended April 30, 2026, our sales to Customer E amounted to RMB7.3 million, RMB2.6 million, RMB1.7 million and RMB13.9 thousand, accounting for 4.5%, 1.1%, 0.6% and 0.01% of our total revenue, respectively.

Negotiations of the terms of our sales to and purchases from the overlapping customers and suppliers were conducted on a project-by-project/standalone basis and purchases were neither interconnected nor inter-conditional with each other.

During the Track Record Period, our overlapping customers and suppliers mainly included (i) ZhongAn Group, which was one of our five largest customers in 2023 and 2024 and our five largest suppliers in 2024 and (ii) Supplier F which was a telecommunication service provider and one of our five largest suppliers in 2024 and our customer in the same period.

Our transactions with overlapping customers-suppliers primarily reflect the mutually beneficial relationships with our business partners, where they provide us with high-quality telecommunication services at reasonable prices while procuring our solutions.

Our Directors confirm that our sales to and our purchases from the Overlapping Customers-Suppliers were (i) entered into after due consideration taking into account the prevailing purchase and selling prices at the relevant times and (ii) conducted on an arm’s length basis.