Grandall Law Firm (Shenzhen) Legal Opinion
This legal opinion is hereby issued in accordance with the requirements of relevant laws and regulations, and in accordance with the generally accepted business standards, ethical norms, and diligence of the legal profession. Based on the understanding of the facts and the interpretation of the law, the lawyers of this firm hereby issue the legal opinion as follows:
I. Procedures for the Convening and Holding of the EGM
The Company held the second meeting of the Fourth Board of Directors on April 21, 2026, and resolved to hold the 2025 Annual General Meeting on May 15, 2026.
On April 23, 2026, the Board of Directors published the "Notice of the 2025 Annual General Meeting" (hereinafter referred to as the "Meeting Notice") on the designated information disclosure media of the Company. The Meeting Notice specified the convener, meeting time, meeting format, share registration date, attendees, meeting location, matters to be reviewed at the meeting, registration matters, and relevant operating procedures for online voting.
The EGM was held using a combination of on-site voting and online voting. The on-site meeting was held at 14:00 on May 15, 2026, in Conference Room 204, Entropy Technology, No. 32, Pingshan Industrial Road, Tangxia Town, Dongguan City, Guangdong Province, and was presided over by Mr. Che Quanhong, Chairman of the Company. The online voting period for the EGM was May 15, 2026. Specifically, the online voting time through the Shenzhen Stock Exchange trading system was from 9:15 to 9:25, 9:30 to 11:30, and 13:00 to 15:00 on May 15, 2026; the online voting time through the Shenzhen Stock Exchange internet voting system was any time during the period from 9:15 to 15:00 on May 15, 2026.
Upon verification by the lawyers of this firm, the time, method, and content of the notice for the EGM comply with the provisions of laws, administrative regulations, normative documents, and the "Articles of Association"; the actual time, location, content, and online voting time and method of the EGM are consistent with the Meeting Notice.
The lawyers of this firm are of the opinion that the procedures for convening and holding the EGM comply with the relevant laws, administrative regulations, normative documents, and the "Articles of Association".
II. Qualifications of the Convener and Attendees of the EGM
(I) According to the Meeting Notice, the EGM was convened by the Board of Directors of the Company.
(II) Upon verification by the lawyers of this firm, the total number of shareholders and shareholder representatives attending the EGM was 114, representing 144,157,057 shares with voting rights, accounting for 61.5437% of the total shares with voting rights (the total shares with voting rights refers to the total share capital of the Company as of the record date, excluding shares repurchased in the treasury share account, the same below). Among them, excluding the Company's directors, senior management, and shareholders who individually or collectively hold more than 5% of the shares, there were 110 small and medium-sized investors and their representatives (hereinafter referred to as "small and medium-sized investors"), representing 5,212,929 shares with voting rights, accounting for 2.2255% of the total shares with voting rights.
- Based on the Company's shareholder register provided by China Securities Depository and Clearing Corporation Limited Shenzhen Branch as of the close of trading on May 11, 2026, the lawyers of this firm verified the identity documents and powers of attorney of the shareholders and shareholder representatives attending the on-site meeting. There were 4 shareholders and shareholder representatives attending the on-site meeting, representing 15,032,116 shares with voting rights, accounting for 6.4175% of the total shares with voting rights.