Explanation by the Board of Directors
Guangzhou Zhiguang Electric Co., Ltd. (hereinafter referred to as "Zhiguang Electric," "the listed company," or "the company") intends to acquire a 27.18% equity stake in Guangzhou Zhiguang Energy Storage Technology Co., Ltd. (hereinafter referred to as "Zhiguang Energy Storage" or "the target company") through the issuance of shares and cash payment. Additionally, the company plans to issue shares to no more than 35 specific investors to raise supporting funds (hereinafter referred to as "this transaction" or "this restructuring").