HANGZHOU GREATSTAR INDUSTRIAL CO., LTD.

Hangzhou Greatstar Industrial Co., Ltd. is a manufacturing company listed on the Shenzhen Stock Exchange since 2010. The company specializes in the production of metal products, primarily tools and power tools, serving both residential and industrial markets. It has established a comprehensive global production and supply chain management system, collaborating with over 1,000 suppliers worldwide to enhance operational resilience and meet market demands effectively. The company's main business lines include tools, power tools, and industrial tools. Greatstar has seen significant growth in its tools segment, particularly through its brand WORKPRO, which has gained recognition in the online market. The power tools segment has also achieved notable advancements, especially with the introduction of 20V lithium battery-powered tools. While the industrial tools segment has experienced slower growth due to longer development cycles and economic factors, the company continues to invest in innovation and expand its manufacturing capabilities in Southeast Asia and other global markets, positioning itself competitively in the industry.

1. Internationalization advantages Through nearly a decade of dedicated efforts, the Company has established the most comprehensive global production and supply chain management system within the industry while fostering collaborative partnerships with over 1,000 global suppliers in order to enhance the operational resilience against reliance on any single country or internal production capacity in agile responses to market demands for timely fulfillment of large-scale orders. Amid volatile global trading trends, the Company leverages its well-managed warehousing, logistics, and distribution networks across China, the U.S., and Europe, coupled with 23 global manufacturing facilities, to execute global procurement, manufacturing, and distribution. Furthermore, our integrated global distribution and manufacturing system significantly reduces total landed costs (TLC) for production and purchase, enhancing end-market competitiveness while maintaining adaptability to various customer requirements and complex external environments. During the reporting period, the Company continued to reinforce the manufacturing capacity in Southeast Asia in active pursuit of optimal manufacturing solutions worldwide. Current efforts focus on accelerating the establishment of production bases in Mexico, Singapore, and Malaysia. The Company is rapidly evolving into a global resource-allocation enterprise that synergizes localized services in Western markets, global industrial chain manufacturing, and China-centric R&D and management capabilities. 2. Innovation advantage Innovation has always been the core of the Company, while variety enrichment been the key driver for the growth. The Company has an experienced R&D team for professional tools and non-tool consumer goods, which has been committed to developing and innovating new products, upholding the concept that it's the details that make the difference in refining products in terms of functionality and added value, and working to ensure the long-term core competitiveness of the Company. During the reporting period, the Company invested RMB 366 million in R&D and developed 1,937 new products. Notable innovation was represented by woodworking tools, 20V cordless lithium-ion battery-powered tools and accessories, and smart tool storage solutions, all of which received strong market validation. The Company also executed extensive innovation in power tools, particularly lithium-ion battery-powered systems and secured orders for its 20V cordless tool series and accessories from a major U.S. retail corporation through cost-competitive and innovative offerings. Thanks to its innovation advantage, the Company has responded to and seized market opportunities in a timely manner, continued to gain market share and maintained long-term and stable development in the changeable global tool industry. 3. Brand advantages The Company specializes in residential durables for households and industrial products for professionals. Brand is the most compelling guarantee for the Company to provide consumers with products and services over the long term, so the Company has been committed to building and developing its original brands. During the reporting period, the Company strategically prioritized self-owned brand development to strengthen the influence and market penetration of brands such as WORKPRO, DURATECH, EverBrite, and Prexiso, with revenue growth by 35.97% year-on-year. The brand advantage not only further enhances the international competitiveness of the Company's products, but also effectively improves the Company's gross profit margin and business stability, thus ensuring the long-term healthy development of the Company. 4. Channel advantages The sales channels and the trust of clients are the basis for the continuous development of the Company. The Company's diversified product mix and sustained innovation capability can not only satisfy the one-stop shopping demand of channel clients to the greatest extent possible, but also constantly reduce its procurement and management costs and improve the loyalty of its channel clients. The Company has been one of the largest suppliers of tools and storage to many large supermarket chains such as The Home Depot, Walmart and Lowe's in the US, Kingfisher in Europe and CTC in Canada. It has also expanded its product categories based on these clients. There are now more than 20,000 large supermarket chains worldwide that sell a wide range of the Company's products, including those for hardware, building materials and automotive parts. These channels effectively contribute to the rapid development of various innovative products of the Company. Through three parallel measures – direct cross-border e-commerce operations, acquisition of European and American distribution channels, and establishment of Asia-Pacific distribution channels, Great Star has effectively increased the proportion of direct-to-customer (DTC) business, prioritizing retail customer needs and directly reaching end retail customers. This has not only effectively enhanced the value proposition of individual products but has also provided firsthand client feedback to directly inform R&D. With the above-mentioned channel advantage, the Company is on track to continuously develop new products and expand product categories with good market prospects. It has achieved breakthroughs in some major product categories such as laser measurement, storage and power tools.