Group 1 - The company is holding its third extraordinary general meeting of shareholders on May 29, 2025, to discuss important proposals [1][2] - Shareholders are reminded to fulfill their legal obligations and respect the rights of other shareholders during the meeting [1] - The meeting will include discussions on the renewal of the financial services agreement with Zhuhai Huafa Group Financial Co., Ltd., which will provide various financial services for a period of three years [2][3] Group 2 - The company plans to initiate a supply chain asset special plan business, utilizing accounts receivable from suppliers as the underlying assets, with a total limit not exceeding 20 billion yuan, which can be reused [2][3] - The proposals discussed at the meeting involve related party transactions, and related shareholders are required to abstain from voting [2][3]

Core Viewpoint - Zhuhai Huafa Industrial Co., Ltd. has conducted a series of board meetings to approve various related party transactions, including the renewal of a financial services agreement and the initiation of a supply chain asset special plan business, which are aimed at optimizing financial management and improving capital efficiency [1][23][41]. Group 1: Financial Services Agreement - The company plans to renew the financial services agreement with Zhuhai Huafa Group Financial Co., Ltd., which will provide deposit, loan, settlement, bill, foreign exchange, and guarantee services for a period of three years [23][24]. - The financial company is a subsidiary of the controlling shareholder, Huafa Group, and the agreement constitutes a related party transaction [24][25]. - The agreement has been approved by the board and will be submitted for shareholder approval [23][43]. Group 2: Supply Chain Asset Special Plan Business - The company intends to launch a supply chain asset special plan business with a total limit not exceeding RMB 20 billion, which can be reused [6][9]. - The basic assets for this plan will be accounts receivable from suppliers, and the implementation does not constitute a major asset restructuring [6][9]. - This initiative aims to optimize accounts receivable management, reduce financial costs, and improve cash flow [17][20]. Group 3: Related Party Transactions - The board has approved the risk assessment report for related party transactions with Zhuhai Huafa Group Financial Co., Ltd. [2][20]. - Related directors recused themselves from voting on these matters to ensure compliance with regulations [2][20]. - The pricing for these transactions is based on industry averages and is deemed fair and reasonable, not harming the interests of the company or its shareholders [16][41]. Group 4: Upcoming Shareholder Meeting - A third extraordinary general meeting of shareholders is scheduled for May 29, 2025, to discuss and vote on the approved proposals [45][46]. - The meeting will utilize both on-site and online voting systems to facilitate participation [46][51]. - Shareholders with related interests will abstain from voting on relevant proposals to maintain fairness [50][51].

Core Viewpoint - The company plans to optimize its asset-liability structure and improve capital efficiency by launching a supply chain asset special plan with a total limit of up to 20 billion RMB, which can be reused [1][2][5]. Transaction Basic Information - The supply chain asset special plan will be based on accounts receivable from suppliers and will not constitute a major asset restructuring [1][2]. - The plan has been approved by the company's board and will require shareholder approval [1][6]. Related Party Transactions - The transaction involves related parties, specifically Huafa Group, which is the controlling shareholder, and Huajin Securities, a subsidiary of Huafa Group [2][3]. - The related party transactions exceed 5% of the company's latest audited net assets, necessitating shareholder approval [2][5]. Financial Data of Related Parties - Huafa Group has total assets of approximately 72.93 billion RMB and total liabilities of about 55.63 billion RMB as of December 31, 2024 [3]. - Huajin Securities has total assets of approximately 1.13 billion RMB and total liabilities of about 752.33 million RMB as of December 31, 2024 [3]. Pricing of Related Transactions - The pricing for the supply chain asset special plan will be based on industry average fees and market conditions, ensuring fairness and transparency [4][5]. Purpose and Impact of the Transactions - The supply chain asset special plan aims to optimize account management, reduce financial costs, and improve cash flow for the company [4][5]. Authorization Matters - The company will seek authorization from shareholders to allow the board chairman to decide on the issuance of the supply chain asset special plan products within the 20 billion RMB limit [4][5]. Procedures for Related Transactions - The independent directors have unanimously agreed that the plan will not harm the interests of the company or its shareholders and have submitted the proposal for board approval [5][6].