Board's Explanation on Compliance with Article 4 of the Guidelines for Major Asset Restructuring
Xiamen Jiarong Technology Co., Ltd. (hereinafter referred to as "the Company") intends to acquire 100% of the shares of Hangzhou Lanran Technology Co., Ltd. (hereinafter referred to as "the Target Company") held by Xiamen Puyu Investment Partnership (Limited Partnership) and 18 other counterparties through a share issuance, and to raise supporting funds by issuing shares to Xiamen Puyu (hereinafter collectively referred to as "this transaction").
In accordance with the requirements of the "Guidelines for Major Asset Restructuring of Listed Companies No. 9" (hereinafter referred to as "Guidelines No. 9"), the board of directors has conducted a prudent analysis of whether this transaction complies with Article 4 of Guidelines No. 9. The board believes that: