The company and all members of the board of directors and senior management guarantee that the information disclosed is true, accurate, and complete, without false records, misleading statements, or significant omissions.
I. Basic Information on Daily Related Transactions
(1) Overview of Related Transactions
Given that the wholly-owned subsidiary Gaomi Wanren Thermal Power Co., Ltd. (hereinafter referred to as "Wanren Thermal Power") is responsible for heating and steam supply in Gaomi City, to absorb its remaining production capacity and increase the company's benefits, the company agrees that Wanren Thermal Power will sell electricity, steam, heat, and water to Gaomi Chengjia Thermal Co., Ltd. (hereinafter referred to as "Chengjia Thermal") with an annual contract amount of approximately 150 million yuan. The company and its subsidiaries will sell quilts, water, electricity, and motors to Gaomi Anxin Investment Management Co., Ltd. and its controlled companies, with an annual contract amount of approximately 2.8 million yuan; the company and its subsidiaries will sell quilt products to Gaomi Jindun Security Service Co., Ltd. with an annual contract amount of approximately 100,000 yuan. The company will accept raw materials, maintenance, and labor provided by Shandong Hengci Motor Co., Ltd. and its controlled companies, with an estimated annual contract amount not exceeding 35 million yuan; the company will accept engineering services provided by Gaomi Water Conservancy Construction and Installation Company, with an estimated annual contract amount not exceeding 3 million yuan; accept heat sales from Xincheng Thermal not exceeding 4 million yuan; and accept security services from Gaomi Jindun Security Service Co., Ltd. with an annual contract amount not exceeding 400,000 yuan. These related transactions were reviewed and approved by the company's 25th meeting of the 8th Board of Directors on April 7, 2026, with a voting result of 3 votes in favor, 0 votes against, 0 abstentions, and 6 votes evaded. Six directors, Zhang Guohua, Xiao Maochang, Guan Jinlian, Wang Qijun, Qin Feng, and Gong Xiaoyan, are related parties and therefore evaded this vote. This related transaction needs to be submitted to the company's 2025 annual shareholders' meeting for review.