Keli Motor Group Co., Ltd.

(I) Main Business and Operating Model 1. Since its establishment, the company has been dedicated to the development, production, and sale of motor and intelligent drive control technology. The company strives to become a leading global provider of motor and intelligent drive control technology. With a foundation in motor technology, material technology, drive technology, control technology, microelectronics technology, and sensing technology, leveraging excellent design and research capabilities and robust manufacturing capabilities, the company extends its development into areas such as drive and control. The company's products are widely used in various fields, including intelligent homes, office automation, security surveillance, medical instruments, 3D printing, lithium battery equipment, robots, industrial automation equipment, and new energy vehicles. (Ⅱ) The company's main products and their applications. Based on application areas, the company’s main products are categorized into three areas: Intelligent Home Products, Health and Care Products, and Motion Control Products. Intelligent Home Products: Widely used in ovens, refrigerators, ventilators, washing machines, heaters, microwaves, robotic vacuum cleaners, vacuum cleaners, air fryers, air purifiers, coffee machines, and more. Health and Care Products: Widely applied in medical nebulizers, hair dryers, food mixers, juicers, soybean milk machines, and other related appliances. Motion Control Products: Extensively used in 3D printers, security surveillance, robots, 5G base stations, high-end CNC machine tools, automated production lines, electronic processing equipment, lithium battery processing equipment, medical device manufacturing equipment, laser processing equipment, office automation, industrial automation, and new energy vehicles. Based on technical principles, the company's main products are classified into shaded-pole motors, series-wound motors, brushless DC motors, stepper motors, servo motors, encoders, drivers, automotive motors, and precision pumps, among others. (Ⅲ)Business Operation Model (1) Research and Development Model The company adheres to the principles of "technology as the primary productive force, talent as the primary resource, and innovation as the primary driving force." With a focus on technology-driven innovation, the company has established research and development centers in Hunan, Shenzhen, and Suzhou, gathering a large number of high-end talents in the industry. The company adopts a research and development model with independent research and development as a focus, assisted by collaborative development and innovation introduction to continually enhance the technological level of products and expand new products and new markets. At the forefront of motor and drive, and intelligent control technologies, the company collaborates with research institutions such as Harbin Institute of Technology, Donghua University, and Taiwan Institute of Industrial Research. It also establishes connections with foreign research institutions in Switzerland, Japan, and other countries, continuously enhancing the company's research and development capabilities and technological reserves. (2) Procurement Model The company has established a cooperative relationship of "mutual benefit and win-win cooperation" with outstanding suppliers in the industry. For materials such as silicon steel and enameled wire with significant procurement demand, the group company centrally manages the procurement to reduce costs. The group is responsible for selecting suppliers, while each subsidiary company conducts individual procurement. For other raw material suppliers, a comprehensive evaluation is conducted based on factors such as quality, price, delivery time, and service. Typically, for the procurement of the same type of material, at least two or more high-quality suppliers are identified. (3) Production Model The company primarily adopts a "production based on sales" approach, organizing production according to orders received from customers. To meet both large-scale production and individual customer requirements, the company combines automated and flexible production methods to organize production, ensuring a rapid response to the diverse needs of customers. The company implements comprehensive quality management and lean production practices. Through ERP systems, the entire production process, including ingredient preparation, processing, and assembly, is monitored in real-time. This not only ensures the production of high-quality products but also effectively enhances production capacity and efficiency while reducing inventory and manufacturing costs. (4) Sales Model The company sets a sales and operations center in Shenzhen, responsible for overseeing the company's sales and operational management. Sales are conducted through an in-house sales network utilizing a direct sales model. The majority of customers enter into annual sales agreements, where prices, payment terms, quality guarantees, and other terms are pre-determined. Customers then submit delivery requests in the form of orders. A small portion of customers opt for single-batch purchasing with specified pricing. To ensure a swift response to market demands and provide excellent service, the company has established sales service points in key customer-concentrated regions within the country. Internationally, marketing representative offices are located in the United States and Italy.