Core Viewpoint - The company has approved the expected daily related transactions for 2026, ensuring that these transactions adhere to fair and market-based pricing, without creating significant dependency on related parties [1][6]. Group 1: Daily Related Transactions Overview - The board of directors approved the expected daily related transactions for 2026 on December 24, 2025, with a unanimous vote of 8 in favor [1]. - The independent directors conducted a special meeting to review the related transactions and provided prior approval [1][8]. - The expected total amount for daily related transactions in 2026 is estimated at 30 million yuan [5]. Group 2: Previous Related Transactions - The expected amount for daily related transactions in 2025 was set at 166.6 million yuan, with actual transactions from January to November 2025 amounting to 102.0528 million yuan, indicating that the actual amount will not exceed the expected amount [2]. Group 3: Related Parties and Relationships - Alibaba Group Holding Limited is identified as a related party, with its subsidiary, Hema (China) Co., Ltd., being involved in the transactions [2][4]. - The company recognizes the transactions with Alibaba Group as related transactions due to the ownership structure [4][8]. Group 4: Transaction Pricing and Impact - The pricing for the related transactions is based on market prices, ensuring fairness and transparency [6]. - The purpose of these transactions is to meet the operational needs of the company, which aligns with its business objectives and does not adversely affect its financial status or independence [7].

Core Viewpoint - The company has announced its expected daily related transactions for the year 2026, which will follow fair and open principles, ensuring that transaction prices are aligned with market rates and do not lead to significant dependence on related parties [1][2]. Group 1: Daily Related Transactions Overview - The board of directors approved the expected daily related transactions for 2026 with a unanimous vote, and the proposal does not require shareholder meeting approval [2]. - The independent directors conducted a special meeting to review the related transactions and expressed prior approval [2][9]. Group 2: Previous Related Transactions - In 2025, the company estimated related transactions to be 166.6 million yuan, while the actual transactions from January to November 2025 amounted to 102.0528 million yuan, indicating that the actual amount will not exceed the estimated figure [3]. Group 3: Expected Amount and Categories for 2026 - The company anticipates a total of 30 million yuan in various daily related transactions for 2026, with the current agreement with Alibaba Group's Hema set to expire on March 31, 2026, and will not be renewed [4][6]. Group 4: Related Party Information - Alibaba Group Holding Limited is identified as a major related party, being one of the largest retail entities globally and controlling significant business operations in China [5]. - The relationship with Alibaba is established through its subsidiary, which is considered a related transaction due to its ownership structure [5][9]. Group 5: Transaction Policy and Impact - The company ensures that all related transactions are conducted based on fair and open principles, with prices reflecting market conditions [7]. - These transactions are deemed necessary for the company's operational needs and are not expected to adversely affect its financial status or independence [8].

Core Viewpoint - The company has signed a business cooperation agreement with Hema (China) Co., Ltd., a subsidiary of Alibaba, which will expire on March 31, 2026, and will not be renewed [1] Financial Performance Summary - In 2022, the revenue of the wholly-owned subsidiary Zhejiang Zhehai Huadi Network Technology Co., Ltd. was 429 million yuan, with a net profit of 7.2013 million yuan [1] - In 2023, the revenue increased to 447 million yuan, with a net profit of 11.264 million yuan, reflecting a growth in both revenue and profit [1] - The projected revenue for 2024 is 550 million yuan, with a net profit of 18.3326 million yuan, indicating continued growth [1] - In the first quarter of 2025, the revenue is expected to be 160 million yuan, with a net profit of 8.2607 million yuan [1] Transition and Handover Plans - The company will discuss the relevant transition and handover matters concerning the termination of the agreement as soon as possible [1]