Announcement on the Launch of Asset Pool Business

Announcement on the Launch of Asset Pool Business

Huaming Power Equipment Co., Ltd. (hereinafter referred to as "the Company") held the seventh meeting of the seventh board of directors on February 26, 2026, where it reviewed and approved the proposal on the launch of the asset pool business. The Company and its subsidiaries will collaborate with banks to conduct asset pool business, sharing an asset pool limit of no more than RMB 400 million. The duration of the asset pool business will be from the date of approval by the 2025 annual shareholders' meeting until the date of the 2026 annual shareholders' meeting. During this period, the limit can be reused. The specific amount for each transaction is authorized by the Company's management based on the operational needs of the Company and its subsidiaries. According to the Company's Articles of Association and relevant regulations, this matter still needs to be submitted for shareholders' meeting approval. The relevant matters are announced as follows:

1. Overview of Asset Pool Business

1. Business Overview
   The asset pool refers to a comprehensive financial service platform provided by the partner bank to meet the unified management and coordinated use of financial assets held by enterprises or enterprise groups, which includes asset management and financing services. The asset pool business encompasses the financial asset pooling, unpooling, and pledge financing services conducted by the partner bank based on the asset pool platform. The assets entering the asset pool include, but are not limited to, financial assets such as certificates of deposit, banker's acceptances, letters of credit, wealth management products, and accounts receivable legally held by the enterprise and recognized by the partner bank.

2. Cooperating Banks
   The Company intends to conduct asset pool business with domestic banks that have good credit ratings. The board authorizes the management to select specific cooperating banks based on the Company's relationship with the banks and the banks' asset pool service capabilities.