SHENZHEN HUAQIANG INDUSTRY CO., LTD.

Shenzhen Huaqiang Industry Co., Ltd. is a leading enterprise in the wholesale sector, primarily focused on the electronics and information industry. Founded in 1994 and listed on the Shenzhen Stock Exchange in January 1997, the company operates over 100 subsidiaries and employs more than 2,000 individuals. Shenzhen Huaqiang has established itself as the largest comprehensive electronic components trading and service platform in China, leveraging its extensive experience and resources to maintain a strong market presence. The company's main business lines include the authorized distribution of electronic components, long-tail procurement solutions, and the operation of the "Huaqiang Electronics World," the world's largest offline trading market for electronic components. Shenzhen Huaqiang also runs the "Huaqiang Electronic Network," a prominent B2B information service platform for electronic components. By integrating digital and intelligent systems, the company effectively addresses supply and demand challenges in the market. With a commitment to sustainable development and continuous innovation, Shenzhen Huaqiang aims to enhance its competitive advantages and solidify its leadership in the electronics and information industry.

Shenzhen Huaqiang offers high-end services for electronics and information industry. It has long been adhering to the long-term, stable and sustainable development concept, and has created a trading and service platform throughout each link of the electronics and information industry, thus accumulating positive and favorable resources such as business, talents, reputation, capital, credit, society and industry resources. It has established comprehensive competitive advantages in the field of providing trading and related services for electronics and information industry. (i) Shenzhen Huaqiang has a clear development strategy and a complete business structure. Since its inception, Shenzhen Huaqiang has been deeply cultivating the electronics industry. Based on the objective laws of industrial development and the company's own resource endowment, Shenzhen Huaqiang has formulated and continuously optimized its sustainable development strategy. Through multi-dimensional and progressive innovation practices, Shenzhen Huaqiang continues to improve and extend its business system, gradually enhancing its value in the industry. (ii) Shenzhen Huaqiang has gathered abundant industrial resources, possessing a significant scale advantage. The resources aggregated by Shenzhen Huaqiang’s electronic components trading and service platform include: numerous international and domestic suppliers; millions of customers spanning large, medium, small, and micro enterprises as well as small and medium-sized traders; hundreds of millions of supply and demand information records; massive transaction data resources; and comprehensive supporting resources such as warehousing, logistics, and customs clearance services.Shenzhen Huaqiang's core business segments and industrial resources are as follows: Authorized distribution of electronic components: As a leading authorized distributor of electronic components in China, Shenzhen Huaqiang has obtained the distribution authorization for product lines from over 200 high-quality domestic and international suppliers, with the quantity ranking at the forefront of the industry. It covers the main downstream application industries and has established long-term, stable cooperation relationships with leading manufacturers in various application industries. Long-tail procurement of electronic components: Shenzhen Huaqiang has accumulated tens of thousands of high-quality supply channels of electronic components and tens of millions of SKU data, holding a leading advantage in data accumulation. By leveraging digital and intelligent systems to efficiently and accurately match supply and demand, Shenzhen Huaqiang has effectively addressed the pain points in long-tail procurement of electronic components, establishing itself as a benchmark for digital transformation in the industry. Offline trading market of electronic components and electronic terminal products: Shenzhen Huaqiang operates "Huaqiang Electronics World", the world's largest offline trading market of electronic components and electronic terminal products. "Huaqiang Electronics World" hosts thousands of merchants offering a diverse range of electronic components and electronic products, attracting numerous domestic and international buyers with daily foot traffic over tens of thousands. B2B information service for electronic components: Shenzhen Huaqiang has developed "Huaqiang Electronic Network (www.hqew.com)", a globally renowned internet information service platform specializing in the vertical field of electronic components."Huaqiang Electronic Network" has over 1.7 million registered users, including more than 10,000 annual paid users, attracts over 10 million unique visitors annually, generates hundreds of millions of page views per year, and hosts over 100 million active supply-and-demand listings. (iii) Shenzhen Huaqiang has advantages in technology, property, capital and talents. Advantages in technical: Shenzhen Huaqiang maintains a robust AE and FAE technical team with comprehensive capabilities in developing integrated hardware-software solutions and providing technical support.Concurrently, Shenzhen Huaqiang prioritizes R&D in digital and intelligent technologies. The self-developed EBS system demonstrates superior intelligence, high-precision recognition, and rapid matching capabilities. The online platform implements distributed data centers, storage systems, and computing technologies to ensure high system availability. It leverages search engine technology and a proprietary electronics industry lexicon to enable intelligent search across tens of millions of electronic components by model number and technical specifications. Advantages in property: Shenzhen Huaqiang owns several properties with high commercial, whose total area about 400,000 square meters, spread over many core areas of cities such as Shenzhen and Jinan. Advantages in capital: Shenzhen Huaqiang possesses high-quality assets and well-operating businesses, and has been operating steadily for many years. Shenzhen Huaqiang is one core customer of domestic and foreign mainstream banks. It has sufficient bank credit line every year and manages to continuously and stably gain low-cost fund required by the onshore and offshore business operations. Advantages in talents: Shenzhen Huaqiang owns an efficient, collaborative and integral management team, a highly competitive and experienced M&A team, and an ambitious business team, which generate the company's talent competitiveness that guarantees the fulfillment of the company's future strategic plan.