Announcement on Signing a Major Contract for Daily Operations

Hangzhou Shenghao Technology Co., Ltd.

Announcement on Signing a Major Contract for Daily Operations

The Company and all members of the Board of Directors guarantee that the information disclosed is true, accurate, and complete, with no false records, misleading statements, or major omissions.

Special Notes:

1. Contract Amount: The total contract amount including tax is RMB 1,167,200,000, of which RMB 327,200,000 is for robot equipment supply and maintenance services, and RMB 840,000,000 is for full-cycle operation and maintenance services by personnel. The total contract amount exceeds 100% of the Company's audited main business income for the most recent fiscal year and is over RMB 200 million in absolute terms. Robot equipment supply and maintenance services will be accounted for using the gross method, while full-cycle operation and maintenance services by personnel will be accounted for using the net method. The specific revenue recognition will be determined based on contract performance and relevant enterprise accounting standards and the Company's accounting policies, with the final figures subject to audit by the accounting firm.

2. Impact on the Company: If this contract is successfully implemented, it will help promote the expansion of the Company's business, accumulate richer project experience, and have a positive impact on the Company's future business development. This contract is not expected to have a significant impact on the Company's operating results for 2026. According to the agreement, the Company will deliver the first batch of trial operation robots by December 31, 2026. As the trial operation phase does not meet revenue recognition conditions, revenue cannot be recognized for now. If the first batch of robots (a total of 300 units) is fully delivered and meets revenue recognition conditions by December 31, 2027, it will generate RMB 120,000,000 in revenue for the Company. In 2028, the revenue is expected to be approximately RMB 18,000,000-23,000,000, of which robot operation and maintenance service fees will be RMB 13,000,000, and personnel operation and maintenance fees accounted for using the net method will be approximately RMB 5,000,000-10,000,000. In subsequent years, revenue will be recognized based on the costs incurred by robots (mainly the second batch of robots), robot operation and maintenance services, and personnel operation and maintenance fees accounted for using the net method. Given the large contract amount and long performance period, the specific impact on the Company's operating performance during the contract period will be subject to the revenue confirmed by the Company's future audits.

3. Contract Risks and Uncertainties: (1) The contract has been formally signed and is effective. Revenue will be recognized gradually based on the execution progress and payment cycle. Both parties have agreed on key significant matters during the project implementation. However, due to the long service period of this contract, there is a risk that the contract may not be performed or may be partially performed due to policy factors, market environment, or other force majeure events, which could affect revenue. (2) The cooperation period of the agreement signed this time is long. During the performance of the contract, the Company may fail to deliver on time or the product quality may not meet requirements, leading to breach of contract and compensation liability. Contract payments are made in stages and proportionally. Due to the long performance period, there is a risk of slow recovery of funds. Investors are advised to make prudent decisions and pay attention to investment risks.

4. Smart Computing Center Operation and Maintenance is a newly developed business for the Company in recent years. In 2025, the Company's revenue from smart computing center operation and maintenance robots was RMB 542,400, accounting for approximately 0.1737% of the 2025 operating revenue. Currently, the revenue from the Company's smart computing center operation and maintenance robot business and existing orders are relatively small and are not expected to have a significant impact on the Company's short-term revenue structure. The future commercialization and business expansion are uncertain.