Sponsorship Letter for Zhejiang Bofay Electric Co., Ltd.'s 2025 Simplified Procedure Stock Issuance to Specific Targets

Statement

Caitong Securities Co., Ltd. (hereinafter referred to as "Caitong Securities," "the Sponsor," or "the Sponsor Institution") accepts the entrustment of Zhejiang Bofay Electric Co., Ltd. (hereinafter referred to as "Bofay Electric," "the Company," or "the Issuer") to act as its sponsor for the simplified procedure stock issuance to specific targets (hereinafter referred to as "this issuance"). In accordance with the Company Law of the People's Republic of China (hereinafter referred to as "the Company Law"), the Securities Law of the People's Republic of China (hereinafter referred to as "the Securities Law"), the Administrative Measures for the Sponsorship of Securities Issuance and Listing (hereinafter referred to as "the Sponsorship Management Measures"), the Administrative Measures for the Registration of Securities Issuance by Listed Companies (hereinafter referred to as "the Registration Management Measures"), the Shenzhen Stock Exchange Listing Rules (hereinafter referred to as "the Listing Rules"), and the relevant regulations of the China Securities Regulatory Commission (hereinafter referred to as "CSRC") and the Shenzhen Stock Exchange (hereinafter referred to as "SZSE"), the sponsor institution and its representatives act with honesty and diligence, strictly following the legally established business rules and industry self-regulatory norms to issue this sponsorship letter, ensuring the authenticity, accuracy, and completeness of the documents provided.

Table of Contents

1. Statement ........................................................................................................................... 1
2. Table of Contents ................................................................................................................ 2
3. Basic Information of the Issuer ......................................................................................... 3
   1. Overview of the Issuer .................................................................................................. 3
   2. Introduction to Main Business ..................................................................................... 3
   3. Key Financial Data and Indicators .............................................................................. 4
   4. Major Risks Faced by the Issuer ................................................................................... 6
4. Details of This Issuance .................................................................................................... 13
   1. Overview of This Issuance ........................................................................................... 13
   2. Information on the Sponsor Representatives, Co-sponsors, and Other Project Team Members ...... 16
   3. Explanation of Any Circumstances That May Affect the Impartiality of the Sponsor's Duties ........ 17
5. Commitments of the Sponsor Institution ......................................................................... 18
6. Sponsor's Opinions on This Issuance ............................................................................... 19
   1. Decision-making Procedures for the Issuer Regarding This Securities Issuance ............ 19
   2. Explanation of the Issuer's Compliance with Conditions for Simplified Procedure Stock Issuance to Specific Targets .................................................................................................................. 20
7. Specific Arrangements for Continuous Supervision Work .................................................. 32
8. Sponsor's Conclusion on This Simplified Procedure Stock Issuance to Specific Targets ....... 33