I. Overview of Financial Assistance
(1) Basic Information on Additional Financial Assistance
DM International Investment Pte. Ltd. (hereinafter referred to as "DM INVESTMENT") is a joint venture established by Hengdian Group Dongci Co., Ltd. (hereinafter referred to as "the Company") and its related party Hengdian Group Singapore Pte. Ltd. (hereinafter referred to as "HG SINGAPORE"). The Company holds 81% of DM INVESTMENT, while HG SINGAPORE holds 19%. On March 11, 2025, the Company held the 19th meeting of the 9th Board of Directors and the 13th meeting of the 9th Supervisory Board, and on April 16, 2025, the 2024 Annual General Meeting approved the proposal to provide financial assistance to the subsidiary DM INVESTMENT, agreeing to provide up to RMB 115 million for investment in overseas magnetic materials projects, with a term of three years, and a borrowing interest rate of 5%. The funds can be rolled over within this total limit, with annual interest payments and principal repayment at maturity. To further support DM INVESTMENT's business development and reduce financing costs, the Company or its designated subsidiaries plan to provide additional financial assistance of up to USD 70 million (or equivalent in RMB) to DM INVESTMENT for industrial investment or to supplement working capital, with a term of three years and an interest rate based on the latest LPR, negotiable within a 10% range. Interest will be paid annually, and early repayment is allowed. The Board has authorized the Chairman or management to handle the necessary procedures and sign relevant legal documents. At the same time, HG SINGAPORE will provide equivalent financial assistance to DM INVESTMENT based on its shareholding ratio.