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Explanation of Confidentiality Measures and System for the Proposed Transaction by Wuhan Jingce Electronic Group Co., Ltd. Board of Directors

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Wuhan Jingce Electronic Group Co., Ltd. outlines its confidentiality measures for a proposed transaction involving issuing shares and convertible bonds to acquire a stake in Shanghai Jingce Semiconductor Technology Co., Ltd. The company has implemented strict internal controls, limited insider access, and informed relevant parties of their obligations to prevent insider trading and market manipulation.

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Wuhan Jingce Electronic Group Co., Ltd. Board of Directors

Explanation of Confidentiality Measures and System for the Proposed Transaction

Wuhan Jingce Electronic Group Co., Ltd. (hereinafter referred to as the "Company") proposes to acquire 41.17% of the equity of Shanghai Jingce Semiconductor Technology Co., Ltd. (hereinafter referred to as the "Target Company") by issuing shares, convertible corporate bonds, and paying cash, and to raise supporting funds (hereinafter referred to as the "Transaction").

In accordance with the "Administrative Measures for Major Asset Restructuring of Listed Companies," "Supervision Guidelines No. 5 for Listed Companies—Registration System for Insiders of Listed Companies' Inside Information," and the "Articles of Association," and other relevant laws, regulations, and normative documents, the Company has adopted necessary and sufficient confidentiality measures and established a strict and effective confidentiality system for this Transaction. The specific details are as follows:

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