Feasibility Analysis Report on Foreign Exchange Derivative Hedging Business

Ningbo Daye Garden Equipment Co., Ltd.

Feasibility Analysis Report on Foreign Exchange Derivative Hedging Business

I. Background of the Company's Foreign Exchange Derivative Hedging Business

Ningbo Daye Garden Equipment Co., Ltd. (hereinafter referred to as the "Company") and its subsidiaries, in their daily operations, need to export products to overseas markets and import some components and equipment from overseas markets. Affected by international political and economic uncertainties, foreign exchange market risks have significantly increased. To further enhance the Company's ability to cope with foreign exchange market volatility, better hedge and prevent foreign exchange rate and interest rate fluctuation risks, and enhance the Company's financial stability, the Company will conduct foreign exchange derivative hedging transactions to strengthen the Company's foreign exchange risk management and effectively reduce the negative impact of foreign exchange market volatility on the Company's operations.

II. Overview of the Company's Foreign Exchange Derivative Hedging Business

1. Purpose of the Transaction To enhance the Company's ability to cope with foreign exchange volatility risks, better hedge and prevent the foreign exchange rate and interest rate fluctuation risks faced by the Company, and enhance the Company's financial stability, the Company plans to use funds that match the scale of its international business revenue to conduct foreign exchange derivative hedging transactions.

2. Quota and Term The Company plans to conduct foreign exchange derivative hedging transactions not exceeding RMB 5 billion (or equivalent in foreign currency). The term of use will be valid for 12 months from the date of approval by the Company's 2025 annual shareholders' meeting. Within the above quota, it can be used on a revolving basis. The transaction amount at any point in time during the term (including the amount related to the reinvestment of profits from the aforementioned transactions) shall not exceed the approved quota. The funds for the foreign exchange derivative hedging transactions planned by the Company will come from the Company's own funds. There is no direct or indirect use of raised funds or bank credit funds for this business.

3. Types of Transaction Products The types of foreign exchange derivative hedging transactions planned by the Company include, but are not limited to, foreign exchange forward transactions, foreign exchange swap transactions, foreign exchange option transactions, structured forward transactions, interest rate swap transactions, currency swap transactions, and combinations of the above products.