Securities Code: 002001 Securities Abbreviation: Xinhuadu Announcement No.: 2026-010 Zhejiang Xinhuadu Co., Ltd. Announcement on Carrying Out Bill Pool Business The Company and the Board of Directors guarantee the content of the information disclosed is true, accurate, and complete, and there are no false records, misleading statements, or major omissions. Zhejiang Xinhuadu Co., Ltd. (hereinafter referred to as the "Company") held the 18th meeting of the 9th Board of Directors on April 14, 2026, and deliberated and approved the "Proposal on Carrying Out Bill Pool Business." It was agreed that the Company and its subsidiaries would share a bill pool limit not exceeding RMB 500 million. The bill pool business will be carried out from the date of approval by the 2025 annual shareholder meeting to the date of the 2026 annual shareholder meeting. The aforementioned limit can be used on a rolling basis within the business period. The specific amount of each transaction will be authorized by the Company's shareholder meeting to the Company's Chairman to determine according to the principle of maximizing systemic benefits based on the operating needs of the Company and its subsidiaries. This matter needs to be submitted for approval by the Company's 2025 annual shareholder meeting to take effect. The relevant matters are hereby announced as follows: I. Overview of Bill Pool Business
- Business Overview A bill pool refers to a package of services provided by banks to customers for commercial bill identification, inquiry, custody, and collection. It can also provide commercial bill withdrawal, discounting, and pledge issuance services according to customer needs, ensuring a comprehensive value-added bill service to meet the company's operating needs. Through systematic management, banks help customers manage bill liquidity. This business can comprehensively revitalize the company's bill assets, reduce customer bill management costs, effectively increase the company's bill revenue, and reduce the company's bill risk.
- Partner Banks The partner banks for the proposed bill pool business are commercial banks with good creditworthiness in China. The specific partner banks will be selected by the Company's shareholder meeting authorizing the Company's Chairman based on the Company's cooperative relationship with commercial banks, the bill pool service capabilities of commercial banks, and other comprehensive factors.
- Business Period The period for carrying out the bill pool business is from the date of approval of this proposal by the 2025 annual shareholder meeting to the date of the 2026 annual shareholder meeting.
- Implementation Limit The Company and its subsidiaries will share a bill pool limit not exceeding RMB 500 million. The total outstanding balance of bills pledged or mortgaged for the bill pool business with all partner banks shall not exceed RMB 500 million. This limit can be used on a rolling basis within the business period. The specific amount of each transaction will be authorized by the Company's shareholder meeting to the Company's Chairman to determine according to the principle of maximizing systemic benefits based on the operating needs of the Company and its subsidiaries.
- Guarantee Methods Under the premise of controllable risks, the Company and its subsidiaries may adopt various guarantee methods for the establishment and use of the bill pool, such as maximum amount pledge, general pledge, certificate of deposit pledge, and bill pledge. The specific guarantee method and amount for each transaction will be authorized by the Company's shareholder meeting to the Company's Chairman to determine according to the principle of maximizing systemic benefits based on the operating needs of the Company and its subsidiaries. II. Purpose of Carrying Out Bill Pool Business With the expansion of the Company's business scale, the Company receives a large number of commercial bills in the process of collecting sales payments due to an increasing number of customers using bills for settlement. At the same time, the Company also frequently uses commercial bills to settle payments with suppliers.
- Upon receiving commercial bills, the Company can use the bill pool business to deposit accounts receivable uniformly into the agreement bank for centralized management. The bank will handle custody, collection, and other services on behalf of the Company, which can reduce the Company's cost of managing commercial bills.
- The Company can use the outstanding commercial bills in the bill pool as collateral to issue commercial bills not exceeding the pledged amount, which can be used to pay suppliers for goods and other operating expenses. This is conducive to reducing the occupation of monetary capital, improving the efficiency of using liquid assets, and maximizing shareholder equity.
- By carrying out the bill pool business, the Company can centrally manage its accounts receivable and accounts payable bills, reduce the occupation of company funds, optimize the financial structure, and improve the utilization rate of funds. III. Risks and Risk Control of Bill Pool Business
- Liquidity Risk When carrying out the bill pool business, the Company needs to open a special margin account for bill pool pledge financing business with the partner bank. This account will be used as the account for receiving funds from the collection of pledged bills upon maturity under the bill pool. The inconsistency in the maturity dates of accounts receivable and accounts payable may lead to the collection funds being transferred to the margin account for the commercial bills applied for from the partner bank, which will have a certain impact on the Company's liquidity. Risk Control Measures: The Company can resolve this impact by using newly received bills to replenish the margin account, making the liquidity risk controllable.
- Guarantee Risk The Company pledges the bills entering the bill pool to apply to the partner bank for issuing commercial bills to pay suppliers for goods and other operating expenses. As the pledged bills mature and are collected, if the bills cannot be collected normally upon maturity, the pledged guarantee amount of bills may be insufficient, leading the partner bank to request the Company to provide additional guarantees. Risk Control Measures: After carrying out the bill pool business with the partner bank, the Company will arrange a dedicated person to liaise with the partner bank, establish a bill pool ledger, and conduct tracking management. The Company will promptly understand the collection and payment status of maturing bills and arrange for newly received bills to enter the pool, ensuring the safety and liquidity of the bills in the pool. IV. Decision-Making Procedures and Organizational Implementation
- Within the limit, the Company's shareholder meeting will authorize the Company's Chairman to exercise decision-making power for specific operations and sign relevant contract documents, including but not limited to selecting qualified commercial banks, determining the specific bill pool limit, collateral, and guarantee methods and amounts that can be used by the Company and its subsidiaries.
- The Company's Finance Department will be authorized to organize and implement the bill pool business. The Finance Department will promptly analyze and track the progress of the bill pool business. If any adverse factors are found or judged, corresponding measures will be taken promptly to control risks, and the Board of Directors will be reported immediately.
- The Company's Audit Department will be responsible for auditing and supervising the implementation of the bill pool business.
- Independent Directors have the right to supervise and inspect the specific situation of the Company's bill pool business. V. Documents for Reference
- Resolution of the 18th Meeting of the 9th Board of Directors Hereby announced. Zhejiang Xinhuadu Co., Ltd. Board of Directors April 16, 2026