Verification Opinion of Zhejiang Zhaoshang Securities Co., Ltd. on Zhejiang Taotao Vehicle Co., Ltd.'s Foreign Exchange Hedging Business

Verification Opinion of Zhejiang Zhaoshang Securities Co., Ltd. on Zhejiang Taotao Vehicle Co., Ltd.'s Foreign Exchange Hedging Business

Zhejiang Zhaoshang Securities Co., Ltd. (hereinafter referred to as "Zhaoshang Securities" or "Sponsor") has conducted a verification of Zhejiang Taotao Vehicle Co., Ltd. (hereinafter referred to as "Taotao Vehicle" or "Company") regarding its foreign exchange hedging business as part of its continuous sponsorship for the company's initial public offering and listing on the Growth Enterprise Market. This verification is in accordance with the "Administrative Measures for Securities Issuance and Listing Sponsorship," "Shenzhen Stock Exchange Growth Enterprise Market Listing Rules," and "Self-Regulatory Guidelines No. 2 for Listed Companies on the Shenzhen Stock Exchange—Standard Operation of Growth Enterprise Market Listed Companies." The specific verification details are as follows:

1. Basic Situation of the Foreign Exchange Hedging Business

1. Purpose of Transactions
   With the expansion of the company's international business, the scale of foreign exchange income and expenditure has gradually increased, and the impact of exchange rate fluctuations on the company's operating performance is significant. By conducting foreign exchange hedging, the company can lock in costs, avoid exchange rate risks, and ensure the stability of operating results, aligning with the company's development strategy of prudent management.

2. Transaction Amount
   Based on the company's asset scale and business needs, the company and its subsidiaries plan to conduct foreign exchange hedging with a transaction amount not exceeding $150 million (including the principal) or its equivalent in RMB and other foreign currencies at any point within the effective period of the limit.

3. Transaction Methods

   • Types of Transactions
     The foreign exchange hedging business will include but is not limited to forward foreign exchange contracts, currency swaps, foreign exchange swaps, foreign exchange futures, foreign exchange options, interest rate swaps, interest rate swaps, interest rate options, and other financial derivatives or combinations thereof.
   • Currencies Involved
     The foreign exchange hedging business will be limited to currencies used in the company's production and operations, including but not limited to USD, EUR, and other currencies relevant to actual business.
   • Counterparties
     The company plans to engage in foreign exchange hedging with banks and other financial institutions approved by relevant government departments and qualified to conduct foreign exchange hedging. The counterparties for this foreign exchange hedging business do not involve related parties.