Response from Hunan Friendship Apollo Commercial Co., Ltd. to the Shenzhen Stock Exchange Inquiry Letter on Issuing Shares for Asset Acquisition and Fundraising (Revised Draft)

1-1 Shenzhen Stock Exchange Listing Review Center: Hunan Friendship Apollo Commercial Co., Ltd. (hereinafter referred to as "the listed company," "the company," or "Friendship Apollo") received the Shenzhen Stock Exchange's "Inquiry Letter on Hunan Friendship Apollo Commercial Co., Ltd.'s Application for Issuing Shares to Purchase Assets and Raising Supporting Funds" (Inquiry Letter [2025] No. 130012) on July 14, 2025. The company and relevant intermediaries conducted a thorough review of the questions raised in the Inquiry Letter and made corresponding revisions and supplementary disclosures in the "Draft Report on Issuing Shares and Paying Cash to Purchase Assets and Raising Supporting Funds and Related Transactions" (hereinafter referred to as "the restructuring report") as required. The relevant responses are as follows. Unless otherwise specified, the abbreviations used in this response are consistent with those in the restructuring report. In this response, discrepancies between some totals and the sum of individual items are due to rounding unless otherwise noted. The financial data and indicators cited in this response refer to consolidated financial data and the financial indicators calculated based on such data unless otherwise specified. The font in this response represents the following meanings: Questions listed in the Inquiry Letter are in bold font; responses to the Inquiry Letter are in Song font; modifications to supplementary disclosures in the Inquiry Letter and restructuring report are in italic bold font.

1-2 Table of Contents

1. On the Sales Model and Operating Performance of the Target Assets ............................................................................. 3
2. On the Procurement and Related Transactions of the Target Assets ........................................................................ 7
3. On the Technical Level of the Target Assets ........................................................................................................ 10
4. On the Financial Statements of the Target Assets ............................................................................................... 15
5. On the Assessment Forecast .............................................................................................................................. 17
6. On the Historical Development and Shareholders of the Target Assets ................................................................ 19
7. On the Employee Stockholding Platforms Related to the Target Assets ................................................................ 23
8. On Integration Control and Transaction Arrangements ....................................................................................... 26
9. On the Lock-up Period of Shares and Number of Shareholders ............................................................................. 28
10. On the Fundraising of Supporting Funds ........................................................................................................... 29
11. On the Equity of the Listed Company ................................................................................................................ 30
12. Other Issues ....................................................................................................................................................... 31