Northeast Securities Co., Ltd. on Jiangsu Allfavor Intelligent Circuits Technology Co., Ltd.'s Issuance of Convertible Bonds

1. Basic Information on This Issuance

1.1 Statement

Northeast Securities Co., Ltd. accepts the entrustment of Jiangsu Allfavor Intelligent Circuits Technology Co., Ltd. to act as the sponsor for the issuance of convertible bonds to unspecified investors, and issues this sponsorship letter for the issuance. The sponsor and designated representatives have acted in good faith, diligently, and responsibly in accordance with the Company Law, Securities Law, and relevant regulations from the China Securities Regulatory Commission and Shenzhen Stock Exchange, ensuring the authenticity, accuracy, and completeness of this sponsorship letter. Unless otherwise specified, terms used in this letter have the same meanings as those in the prospectus for the issuance of convertible bonds by Jiangsu Allfavor Intelligent Circuits Technology Co., Ltd. Some totals in this letter may differ from the sum of individual items due to rounding.

1.2 Table of Contents

1. Statement............................................................................................................................ 1
2. Table of Contents................................................................................................................ 2
3. Basic Information on This Issuance................................................................................. 3
   1. Sponsor Institution and Project Team Information....................................................... 3
   2. Basic Information of the Issuer.................................................................................... 4
   3. Issuance Plan.................................................................................................................. 4
   4. Issuer's Shareholding Structure and Top Ten Shareholders........................................ 15
   5. Historical Fundraising, Cash Dividends, and Changes in Net Assets......................... 16
   6. Main Financial Data and Indicators of the Issuer....................................................... 17
   7. Relationship Between Sponsor and Issuer................................................................... 19
   8. Internal Review Procedures and Opinions of the Sponsor........................................... 20
4. Commitments of the Sponsor.......................................................................................... 22
5. Sponsorship Opinions on This Issuance......................................................................... 23
   1. Issuer's Compliance with Relevant Decision-Making Procedures................................ 23
   2. Compliance with Issuance Conditions as per Company Law...................................... 24
   3. Compliance with Issuance Conditions as per Securities Law..................................... 24
   4. Compliance with General Regulations for Issuing Convertible Bonds to Unspecified Investors................................................. 26
   5. Compliance with Special Regulations for Issuing Convertible Bonds to Unspecified Investors.................................................. 30
   6. Compliance with Relevant Regulations of Securities and Futures Legal Application Opinion No. 18........................................... 36
   7. Compliance with Relevant Regulations of the Management Measures for Convertible Bonds.................................................. 38
   8. Review Opinions on the Reasonableness of Immediate Return Dilution and Related Commitments................................................. 39
   9. Evaluation of the Issuer's Development Prospects..................................................... 40
   10. Major Risks Faced by the Issuer................................................................................. 41
   11. Review of Related Actions for Engaging Third Parties.............................................. 57
   12. Conclusion of the Sponsor on This Issuance............................................................ 58
6. Appendix............................................................................................................................ 59