# EDGAR Filing Document

**Accession Number:** 0001997182
**File Stem:** 0001493152-26-025227
**Filing Date:** 2026-5
**Character Count:** 1616514
**Document Hash:** 36d248da20fc7121d6915f74c2d0be63
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-025227.hdr.sgml**: 20260526

**ACCESSION NUMBER**: 0001493152-26-025227

**CONFORMED SUBMISSION TYPE**: F-1/A

**PUBLIC DOCUMENT COUNT**: 88

**FILED AS OF DATE**: 20260526

**DATE AS OF CHANGE**: 20260526

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Carbon Zero Technologies International Inc.
- **CENTRAL INDEX KEY:** 0001997182
- **STANDARD INDUSTRIAL CLASSIFICATION:** HAZARDOUS WASTE MANAGEMENT [4955]
- **ORGANIZATION NAME:** 01 Energy & Transportation
- **EIN:** 000000000
- **STATE OF INCORPORATION:** F4

**FILING VALUES:**
- **FORM TYPE:** F-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-280115
- **FILM NUMBER:** 261019321

**BUSINESS ADDRESS:**
- **STREET 1:** ROOM 610, BLOCK A, BAIRUIDA BUILDING
- **STREET 2:** BANXUEGANG AVENUE, WANKE CITY
- **CITY:** SHENZHEN
- **STATE:** F4
- **ZIP:** 518100
- **BUSINESS PHONE:** 86 0755-23485305

**MAIL ADDRESS:**
- **STREET 1:** ROOM 610, BLOCK A, BAIRUIDA BUILDING
- **STREET 2:** BANXUEGANG AVENUE, WANKE CITY
- **CITY:** SHENZHEN
- **STATE:** F4
- **ZIP:** 518100

**As filed with the Securities and Exchange Commission on May 26, 2026** 

**Registration No. 333-280115**

**UNITED STATES<br> SECURITIES AND EXCHANGE COMMISSION** **<br> Washington, D.C. 20549**

**AMENDMENT NO. 13** 

 **TO**

**FORM F-1** **<br> REGISTRATION STATEMENT<br> Under<br> The Securities Act of 1933**

![](formdrs_001.jpg)

**Carbon Zero Technologies International Inc.**

(Exact name of Registrant as specified in its charter)

**Not Applicable**<br> (Translation of Registrant's name into English)

---

| | | |
|:---|:---|:---|
| **Cayman Islands** | **5090** | **Not Applicable** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard<br> Industrial<br> Classification Code<br> Number) | (I.R.S. Employer<br> Identification Number) |

---

**8 Eu Tong Sen Street, #16-81**

**The Central, Singapore，059818**

**Tel: +65 6592 7626** <br> (Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

 **COGENCY GLOBAL INC.**

 **122 East 42nd Street, 18th Floor**

 **New York, NY 10168**

 **+1 (800) 221-0102**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

**Copies to:**

---

| | |
|:---|:---|
| <br>**Charlotte Westfall, Esq.** <br> **Rimon, P.C.** <br> **800 Oak Grove Avenue, Suite 250** <br> **Menlo Park, CA 94025<br> 415-869-7180** <br>| **Mitchell S. Nussbaum, Esq.**<br> **Lili Taheri, Esq.**<br> **Vivien Bai, Esq.**<br> **Loeb & Loeb LLP**<br> **345 Park Avenue,**<br> **New York, NY 10154**<br> **212-407-159** |

---

**Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration statement.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, or the Securities Act, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933. Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

† The
 term "new or revised financial accounting standard" refers to any update issued
 by the Financial Accounting Standards Board to its Accounting Standards Codification after
 April 5, 2012.

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act, as amended, or until the registration statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a) may determine.**

**EXPLANATORY NOTE**

This registration statement on Form F-1 (File No. 333-280115) contains disclosure that will be circulated as two separate final prospectuses, as set forth below.

● Public offering prospectus. A prospectus (the "Public Offering Prospectus") to be used for the public offering of 3,335,000 American Depositary Shares ("ADSs") representing 13,340,000 Class A ordinary shares of the Registrant (the "Public Offering ADSs"), through the underwriters named on the cover page of the Public Offering Prospectus.

● Resale prospectus. A prospectus (the "Resale Prospectus") to be used for the offer and potential resale by the selling shareholder identified in this registration statement (the "Selling Shareholder") of 1,500,000 American depositary shares representing 6,000,000 Class A ordinary shares of the Registrant (the "Shareholder ADSs").

The Resale Prospectus is substantively identical to the Public Offering Prospectus, except for the following principal points:

● it contains different outside and inside front covers and back cover pages; among other things, the identification of the underwriters and related compensation for the Public Offering ADSs will only be included in the Public Offering Prospectus and the Shareholder ADSs will be listed on the outside and inside front covers of the Resale Prospectus without identification of the underwriters and related compensation information;

● it contains different "Offering" sections in the Prospectus Summary section relating to the offering of the Public Offering ADSs and the Shareholder ADSs, as applicable; such Offering section included in the Public Offering Prospectus will summarize the offering of the Public Offering ADSs and such Offering section included in the Resale Prospectus will summarize the offering of the Shareholder ADSs;

● it contains different "Use of Proceeds" sections, with the Use of Proceeds section included in the Resale Prospectus only indicating that the Registrant will not receive any proceeds from the sale of the Shareholder ADSs by the Selling Shareholder that occur pursuant to this registration statement;

● it does not contain the Capitalization and Dilution sections included in the Public Offering Prospectus;

● a "Selling Shareholder" section is only included in the Resale Prospectus;

● the "Underwriting" section from the Public Offering Prospectus is not included in the Resale Prospectus and the "Plan of Distribution" section is included only in the Resale Prospectus; and

● it does not contain the Legal Matters section and does not include a reference to counsel for the underwriters.

The Registrant has included in this registration statement a set of alternate pages after the back-cover page of the Public Offering Prospectus (the "Alternate Pages") to reflect the foregoing differences in the Resale Prospectus as compared to the Public Offering Prospectus. The Public Offering Prospectus will exclude the Alternate Pages and will be used for the public offering by the Registrant. The Resale Prospectus will be substantively identical to the Public Offering Prospectus except for the addition or substitution of the Alternate Pages and will be used for the resale offering by the Selling Shareholder.

The Selling Shareholder will not be able to sell the Shareholder ADSs, except in an offering exempt from registration, until the ADSs are listed on the Nasdaq Global Market, or Nasdaq. Once, and if, the ADSs are listed on Nasdaq and begin trading, the Shareholder ADSs may be sold at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change or at negotiated prices, or in any manner permitted by the Securities Act. The Company will not receive any proceeds from the sale of any of the Shareholder ADSs. The offering of the Shareholder ADSs will terminate at the earlier of such time as all of the Shareholder ADSs have been sold pursuant to the registration statement and the date on which it is no longer necessary to maintain the registration of the Shareholder ADSs as a result of such ADSs being permitted to be offered and resold without restriction pursuant to the provisions of Rule 144 of the Securities Act, and the offering of the Shareholder ADSs may extend for a longer period of time than the offering of the Public Offering ADSs. The Shareholder ADSs may be sold once ADSs begin trading on Nasdaq and from time to time thereafter. The resales of ADSs representing the Class A ordinary shares registered in the Resale Prospectus could affect the price and liquidity of, and demand for, the ADSs. This risk and other risks are included in "Risk Factors" in each of the Public Offering Prospectus and the Resale Prospectus.

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the United States Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION** 

**PRELIMINARY PROSPECTUS DATED May 26, 2026**![](formdrs_001.jpg)

**Carbon Zero Technologies International Inc.**

**3,335,000 American Depositary Shares**

**Representing 13,340,000 Class A Ordinary Shares**

This is an initial public offering of American depositary shares, or ADSs, representing Class A ordinary shares of Carbon Zero Technologies International Inc., a Cayman Islands exempted company. We are offering on a firm commitment basis 3,335,000 ADSs (the "Public Offering ADSs"). In addition, the registration statement of which this prospectus forms a part also registers on behalf of the Selling Shareholder the resale of an aggregate of 6,000,000 Class A ordinary shares represented by 1,500,000 ADSs (the "Shareholder ADSs") by our shareholder (the "Selling Shareholder"). The initial public offering of the Public Offering ADSs and the offering of the Shareholder ADSs are collectively referred to herein as the offering. Each ADS represents four (4) Class A ordinary shares, par value US$0.00001 per share, of Carbon Zero Technologies International Inc. Prior to this offering, there has been no public market for the ADSs or our Class A ordinary shares. We expect that the initial public offering price will be between $11.00 and $13.00 per ADS.

The Selling Shareholder will not be able to sell the Shareholder ADSs, except in an offering exempt from registration, until the ADSs are listed on the Nasdaq Global Market, or Nasdaq. Once, and if, the ADSs are listed on Nasdaq and begin trading, the Shareholder ADSs may be sold at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change or at negotiated prices, or in any manner permitted by the Securities Act. The Company will not receive any proceeds from the sale of any of the Shareholder ADSs. The offering of the Shareholder ADSs will terminate at the earlier of such time as all of the Shareholder ADSs have been sold pursuant to the registration statement and the date on which it is no longer necessary to maintain the registration of the Shareholder ADSs as a result of such ADSs being permitted to be offered and resold without restriction pursuant to the provisions of Rule 144 of the Securities Act, and the offering of the Shareholder ADSs may extend for a longer period of time than the offering of the Public Offering ADSs. The Shareholder ADSs may be sold once ADSs begin trading on Nasdaq and from time to time thereafter. The resales of ADSs representing the Class A ordinary shares registered in the Resale Prospectus could affect the price and liquidity of, and demand for, the ADSs. This risk and other risks are included in "Risk Factors" in each of the Public Offering Prospectus and the Resale Prospectus.

We have reserved the symbol "CZTI" for purposes of listing the ADSs on the Nasdaq Global Market, or Nasdaq. This offering is contingent on the listing of the ADSs on Nasdaq. At this time, Nasdaq has not yet approved our application to list the ADSs. There is no assurance that such application will be approved, and if our application is not approved by Nasdaq, this offering may not be completed.

**Investing in the ADSs involves a high degree of risk, including the risk of losing your entire investment.** See "Risk Factors" beginning on page 17 to read about factors you should consider before buying the ADSs.

We are both an "emerging growth company" and a "foreign private issuer" as defined under applicable U.S. securities laws and are eligible for reduced public company reporting requirements. Please read the disclosures beginning on page 9 and on page 10 of this prospectus for more information.

**We are not a Chinese operating company but a Cayman Islands holding company. We have no material operations of our own and conduct substantially all of our operations through the Operating Entities in China. Investors in the ADSs are purchasing equity interests in the Cayman Islands holding company, and not in the Operating Entities. Investors in the ADSs may never hold equity interests in the Operating Entities. Our operating structure involves unique risks to investors. The Chinese regulatory authorities could disallow our operating structure, which would likely result in a material change in our operations and/or a material change in the value of the ADSs representing our Class A ordinary shares and could cause the value of the ADSs to significantly decline or in those ADSs becoming worthless.** See "*Risk Factors — Risks Related to Doing Business in the PRC" beginning on page 31 of this prospectus for a discussion of these legal and operational risks.*

**As used in this prospectus, terms such as "the Company," "CZTI," "we," "us," "our company," or "our" refer to Carbon Zero Technologies International Inc., unless the context suggests otherwise, and also includes Carbon Zero Technologies (Hong Kong) Limited ("CZTI HK") and its PRC subsidiaries, as well as Carbon Source Technologies (Hong Kong) Limited ("Carbon Source HK") and its PRC subsidiaries. We directly hold 100% of the equity interests in CZTI HK which directly owns 100% of the equity interests in CZTI WFOE, which directly owns 100% of the equity interests in CZTI Shenzhen. CZTI HK also directly owns 100% of the equity interests in Xieguan Tonglian (Shenzhen) Technology Co., Ltd. and directly owns 65% of the equity interests in Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. owns 67% of equity interests in Guangdong Bo Green Investment Co., Ltd. and 51% of equity interests in Jushang (Hebei) Renewable Resources Co., Ltd. Xieguan Tonglian (Shenzhen) Technology Co., Ltd. directly owns 100% of equity interests of Shenzhen Yize Environmental Protection Technology Co., Ltd., Shenzhen Bgreen Environmental Technology Co., Ltd., Shenzhen Carbon Poly Digital Technology Co., Ltd., and Shenzhen Green Blue Environmental Protection Technology Co., Ltd. Shenzhen Carbon Poly Digital Technology Co., Ltd. directly owns 51% of equity interests in Beijing Guoxun Renewable Resources Co., Ltd. and Carbon Baike (Beijing) Environmental Protection Technology Co., LTD. Shenzhen Yize Environmental Protection Technology Co., Ltd. directly owns 51% of equity interests in Henan Zhicheng Industrial Park Management Co., LTD. CZTI Shenzhen further directly owns 75% equity interests in of Shenzhen ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Shenzhen"). We directly hold 100% of the equity interests in Carbon Source HK which directly owns 100% of the equity interests in Hubei Carbon Link Recycling Technology Co., Ltd. ("Hubei Carbon Link") and 51% of the equity interests in Gongqingcheng Yadannuo Environmental Technology Co., Ltd., Jiangxi Jingchuang Metal Manufacturing Co., Ltd. ("Jingchuang Metal"), Jiangxi Qi Hong New Material Technology Co., Ltd., and Henan ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Henan"). All of our China operating activities are conducted under our Operating Entities. We do not currently use a variable interest entity ("VIE") structure.** See "*Corporate History and Structure*" beginning on page 60 of this prospectus.

**We face various risks associated with being based in or having our operations primarily in China and the evolving laws and regulations in China, including risks related to the legal, political and economic policies of the Chinese government, the relations between China and the United States, or Chinese or United States regulations, which risks could result in a material change in our operations and/or cause the value of the ADSs to significantly decline or become worthless, and significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Because we operate in mainland China, the Chinese government may exercise significant oversight and discretion over the conduct of our subsidiaries' business and may intervene or influence their operations, including that of our PRC subsidiaries, at any time, which could result in a material adverse change in our business and operations, prospects, financial condition, and results of operations, and the value of our securities. Changes in the policies, regulations, rule, and the enforcement of laws of the Chinese government may also be implemented quickly with little advance notice, and the Chinese government may intervene or influence our subsidiaries at any time or may exert more control over offerings conducted overseas or investments in China-based issuers, which could result in material changes in operations and/or the value of the securities we are registering for sale. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment and/or operations in China-based issuers could significantly change our operations, limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Therefore, our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain. For example, recently the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, strengthened supervision on overseas listings by China-based companies using VIE, adopting new measures to extend the scope of cybersecurity reviews and data security protection, and expanding the efforts in anti-monopoly enforcement. The PRC government may also regulate our operations by adopting new laws and regulations from time to time. Furthermore, the PRC government has recently made efforts to exert more oversight over overseas securities offerings and other capital markets activities and foreign investment in China-based companies like us. Any such action, once taken by the PRC government, could cause the value of such securities to significantly decline or in extreme cases, become worthless.**

**As advised by our PRC legal counsel, Zhong Lun Law Firm, as of the date of this prospectus, we have not engaged in any monopolistic behavior and our business does not control more than one million users' personal information as of the date of this prospectus, implicate cybersecurity, or involve any other type of restricted industry. However, we cannot affirm that PRC regulators share the same interpretation. Because these statements and regulatory actions are new and subject to change, it is highly uncertain as to how quickly the legislative or administrative regulation making bodies in China will respond to companies, or what existing or new laws or regulations will be amended or promulgated, if any, or the potential impact such amended or new legislation will have on our daily business operations or our ability to accept foreign investments and list on a U.S. stock exchange. According to the Overseas Listing Filing Rules, we are required to submit the filing application to the China Securities Regulatory Commission (the "CSRC") within three business days after our submission of application for any overseas initial public offering and listing. We have submitted a filing with the CSRC with respect to our overseas initial public offering and listing on November 20, 2023. On May 30, 2024, the CSRC published a Filing Completion Notice on the CSRC's official website ("Filing Completion Notice"), confirming that we have completed the filing procedures with the CSRC under the Trial Measures. Upon completion of the CSRC filing procedures, which was evidenced by the Filing Completion Notice, we have fulfilled the CSRC's requirements regarding our overseas offering and listing under the Trial Measures. However, from the date of issuance of the Filing Completion Notice to the completion of this offering, if we experience any material or significant events that may cause (i) a major change to the main business or business license qualifications of the PRC Subsidiaries; (ii) a major change of control or equity structure; and (iii) a major adjustment to the offering and listing plan which includes but are not limited to changes of the listing place, possible changes of control after the adjustment of the offering plan, and increases in the proportion of shares to be issued, we shall update the filing documents with the CSRC within three business days. Additionally, upon completion of this offering, we shall report the offering information to the CSRC within 15 business days. If a violation of the foregoing and related regulations occurs, the CSRC may order rectification, issue warnings, and impose a fine between RMB 1 million and RMB 10 million on our PRC Subsidiaries, which could adversely and materially affect our business operations and financial outlook, and significantly limit or completely hinder our ability to offer or continue to offer ADSs to investors and could cause the value of the ADSs to significantly decline or such shares to become worthless. Additionally, if we do not obtain the permissions and approvals of the filing procedure for any subsequent offering in a timely manner under PRC laws and regulations, we may be subject to investigations by competent PRC regulators, fines or penalties, ordered to suspend our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and these risks could result in a material adverse change in our operations, limit our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer and list the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations.** See "*Risk Factors — Risks related to Doing Business in the PRC*" beginning on page 31 of this prospectus for a discussion of these legal and operational risks.

**The Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020, and was amended by the Consolidated Appropriations Act, 2023 enacted on December 29, 2022. The amended HFCAA states that if the U.S. Securities and Exchange Commission (the "SEC") determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the U.S. Public Company Accounting Oversight Board (the "PCAOB") for two consecutive years, the SEC shall prohibit our shares or ADSs from being traded on a national securities exchange or in the over-the-counter trading market in the United States. The Consolidated Appropriations Act, 2023 reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three to two years. The PCAOB issued a Determination Report on December 16, 2021 (the "Determination Report") which found that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong because of a position taken by one or more authorities in those jurisdictions. Furthermore, the Determination Report identified the specific registered public accounting firms which are subject to these determinations ("PCAOB Identified Firms"). Our auditor, Marcum Asia CPAs LLP ("Marcum Asia"), the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that are traded publicly in the United States and, a firm registered with the PCAOB, is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Marcum Asia is headquartered in New York, New York, and, as of the date of this prospectus, was not included in the list of PCAOB Identified Firms in the Determination Report. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021, determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms.**

**Each year, the PCAOB will determine whether it can inspect and investigate audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a "Commission-Identified Issuer" following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a "Commission-Identified Issuer" for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. The delisting of the ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. These risks could result in a material adverse change in our operations and the value of the ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors or cause the value of such securities to significantly decline or such securities to become worthless.** For more details, see "*Risk Factors — Risks Related to the ADSs and this Offering — Trading of the ADSs will be prohibited in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if it is later determined that the PCAOB is unable to inspect and investigate completely our auditor. The delisting of and prohibition from trading the ADSs, or the threat of their being delisted and prohibited from trading, may cause the value of the ADSs to significantly decline or the ADSs to become worthless.*" beginning on page 44 of this prospectus.

**As of the date of this prospectus, we have not maintained any cash management policies that dictate the purpose, amount and procedure of fund transfers among our Cayman Islands holding company, our subsidiaries, or investors. Rather, the funds can be transferred in accordance with the applicable laws and regulations.** See "*Prospectus Summary - Cash Transfers and Dividend Distributions*." **As of the date of this prospectus, our Cayman Islands holding company has not declared or paid dividends, made distributions, or transferred assets to its subsidiaries or to investors in the past, nor have any dividends, distributions or asset transfers been made by any PRC subsidiary to CZTI HK, Carbon Source HK and/or the Cayman Islands holding company. For the years ended December 31, 2024 and 2025, our PRC subsidiaries did not declare any dividends to their PRC noncontrolling shareholders. For the year ended December 31, 2024, our Cayman Islands holding company made a capital contribution of RMB 2 million to CZTI HK and provided a working capital loan of RMB 1 million to CZTI HK in January 2024. CZTI HK further made capital contributions of RMB 3 million to CZTI WFOE in January 2024. For the year ended December 31, 2025, Carbon Source HK provided a working capital of RMB 0.7 million to ABGreen Henan** **and made capital contributions of RMB 0.3 million to Hubei Carbon Link.** 

**Our board of directors has complete discretion on whether to distribute dividends, subject to applicable laws. We do not have any current plan to declare or pay any cash dividends on our shares in the foreseeable future after this offering.** See "*Risk Factors — Risks Related to the ADSs and this Offering — We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of the ADSs for return on your investment*" beginning on page 48 of this prospectus. **Subject to certain contractual, legal and regulatory restrictions, cash and capital contributions may be transferred among our Cayman Islands holding company and our subsidiaries. If needed, our Cayman Islands holding company can transfer cash to our subsidiaries through loans and/or capital contributions, and our subsidiaries can transfer cash to our Cayman Islands holding company through loans and/or issuing dividends or other distributions. There are currently no restrictions of transferring funds between our Cayman Islands holding company and subsidiary in Hong Kong. There are limitations on the ability to transfer cash between the Cayman Islands holding company and the PRC subsidiaries. Cash transfers from the Cayman Islands holding company to the PRC subsidiaries are subject to the applicable PRC laws and regulations on loans and direct investment.** See "*Prospectus Summary — Cash Transfers and Dividend Distributions,"* beginning on page 7 and see also *"Risk Factors — Risks Related to Doing Business in the PRC — PRC regulations of loans and direct investment by offshore holding companies to the PRC subsidiaries may delay or prevent us from using the proceeds of our offshore financing to make loans or additional capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and business,*" beginning on page 36 of this prospectus**. If any of the PRC subsidiaries incur debt on their own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to the Cayman Islands holding company. Cash transfers from the PRC subsidiaries to the Cayman Islands holding company are also subject to the current PRC regulations, which permit the PRC subsidiaries to pay dividends to their shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. Cash transfers from the Cayman Islands holding company to the investors are subject to the restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion.** See "*Risk Factors — Risks Related to Doing Business in the PRC — Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations and affect the value of your investment,*" beginning on page 37 of this prospectus**. Additionally, to the extent cash or assets in the business is in China or a PRC subsidiary, the funds or assets may not be available to fund operations or for other use outside of China due to interventions in or the imposition of restrictions and limitations on the ability of our Company or the Operating Entities by the PRC government to transfer cash or assets.** See "*Prospectus Summary — Cash Transfers and Dividend Distributions*," "*Risk Factors — Risks Related to Doing Business in the PRC — We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business.*" beginning on page 35 of this prospectus.

Following the completion of this offering, our issued and outstanding share capital will consist of Class A ordinary shares and Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights, except for voting, transfer and conversion rights. Each Class A ordinary share is entitled to one (1) vote, and each Class B ordinary share is entitled to ten (10) votes. Upon the completion of this offering, we will be a "controlled company" as defined under Nasdaq Marketplace Rules 5615(c), because Mr. Baitong Tang, our Chief Executive Officer, will hold, directly and indirectly, more than 50% of the voting power. See "*Risk Factors — Risks Related to the ADSs and this Offering — We are a "controlled company" within the meaning of the Nasdaq listing standards and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to shareholders of companies that are subject to such requirements.*" beginning on page 43.

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| | | |
|:---|:---|:---|
|  | **Per ADS** | **Total<sup>(3)</sup>** |
| Initial public offering price<sup>(1)</sup> | $12.00 | $40020000 |
| Underwriting discounts<sup>(2)</sup> | $0.876 | $2921460 |
| Proceeds, before expenses | $11.124 | $37098540 |

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(1) Initial
 public offering price per share is assumed as $12.00,
 which is the midpoint of the range set forth on the cover page of the Public Offering Prospectus.

(2) Represents
 underwriting discounts equal to seven point three percent (7.3%) (or $0.876 per ADS). We have also agreed to issue an underwriter purchase option to Ninth Eternity Securities,
 LLC (the "Representative") to purchase a number of ADSs equal to five percent
 (5%) of the total number of ADSs sold in this offering at an exercise price equal to one
 hundred and ten percent (110%) of the public offering price of the ADSs sold in this offering.
 For a complete description of the compensation to be received by the underwriters, see "*Underwriting*."

(3) Assumes
 that the Representative does not exercise any portion of its over-allotment option.

The underwriters are selling the ADSs in this offering on a firm commitment basis. The underwriters are obligated to take and pay for all of the ADSs if any such ADSs are taken. We have granted the underwriters an option for a period of 45 days after the closing of this offering to purchase up to 500,250 ADSs, which is 15% of the total number of Public Offering ADSs to be offered pursuant to this offering (excluding ADSs subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. If the underwriters exercise the option in full, the total underwriting discounts and commissions payable will be $3,359,679, and the total proceeds to us, after underwriting commissions and expenses but before offering expenses, will be $42,663,321.

The underwriters expect to deliver the ADSs against payment in U.S. dollars in New York, New York on or about , 2026.

**Neither the U.S. Securities and Exchange Commission nor any state securities commission nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

![](formdrs_002.jpg)

Prospectus dated __________, 2026

![A diagram of a smart phone Description automatically generated](formdrs_003.jpg)

![A diagram of a smart phone Description automatically generated](image_003.jpg)

**LETTER FROM THE FOUNDER**

Dear Investors,

Thank you for your interest in us. We intend to transform the entire renewable resources recycling business in China, United States, Singapore and Southeast Asian countries as we develop and deploy our Online to Offline system ("O2O system") through online applications and offline sites in the traditional recycling business. Our goal is to establish comprehensive, digitized, artificial intelligence-powered and standardized waste recycling services and convert into renewable resources, covering all categories of recyclable materials. As such, I am excited to share with you our proprietary technology solutions, scale and financial performance, market opportunities, strengths, and growth strategies along with our outlook of the future.

**Our Opportunity in China: to Redefine an "Overlooked" Industry** 

China's renewable resources recycling industry has grown steadily in the past several years. China's recycled renewable resources increased from 283 million tons in 2017 to 418 million tons in 2022, with a compound annual growth rate of 8.1% from 2017 to 2022, of which iron and steel scrap (waste ferrous metals) is the main recycled category of renewable resource. Our network includes approximately 4,600 third-party recycling stations and more than 38,000 registered recycling personnel as of December 31, 2025. The traditional renewable resources recycling model mainly relies on scattered offline channels. There is a difficulty of information asymmetry in the renewable resources recycling industry in China, in which consumers lack awareness of where and how to sell used products. In today's extended enterprise environment, the interactions between thousands of suppliers, vendors, and counterparties drive up cost and complexity. As an industry innovator, we developed an O2O system by collecting and disclosing data on recycling needs on our system. This information enables professional recycling personnel to receive information and collect recyclable items at the consumer's doorstep, not only solving the problem of low efficiency in information dissemination, but also providing consumers with more convenient recycling methods, and achieving efficient renewable resource recycling.

 **Our Opportunity in the United States and Southeast Asia: Capitalizing on the Global Shift**

According to our research, our observation is that the global transition toward a circular economy has created an unprecedented demand for advanced renewable resources recycling as described in i) and ii) below. We plan to strategically expand our footprint into the United States and Southeast Asia, positioning ourselves at the intersection of two distinct but highly complementary multi-billion-dollar market opportunities.

i）The United States: High-Value Markets and Regulatory Tailwinds

In the United States, the recycling industry is undergoing a structural revolution driven by stringent corporate sustainability mandates and massive federal incentives.

● The Infrastructure Surge: Industrial manufacturers and consumer brands face immense pressure to secure reliable, high-purity recycled raw materials to meet their net-zero targets.

● Premium Valuations: The market demands advanced technological solutions that can convert complex waste streams into standardized, premium-grade renewable inputs.

● Our Edge: Our proprietary carbon-zero technologies directly address this gap. We'll provide North American enterprises with verifiable, traceable, and low-carbon footprint recycled resources, allowing us to capture high-margin contracts and establish long-term off-take agreements with Tier-1 industrial buyers.

ii) Southeast Asia: The Fast-Growing Hub of Feedstock and Global Supply Chains

Concurrently, Southeast Asia represents one of the fastest-growing regions for both resource consumption and waste processing, serving as a critical node in the global manufacturing supply chain.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Feedstock
 Abundance: Rapid urbanization and industrialization in countries like Vietnam, Indonesia,
 and Malaysia have generated a vast, underutilized volume of recyclable resources and industrial
 scraps.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Localization
 and Scale: Governments in the region are aggressively implementing EPR (Extended Producer
 Responsibility) laws, forcing local industries to adopt sustainable waste-management frameworks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Our
 Edge: Carbon Zero Technologies will step in to bridge the technology gap in Southeast Asia.
 By deploying our localized, highly efficient recycling infrastructure, we can aggregate raw
 feedstock at a lower cost, process it locally to meet strict international environmental
 standards, and re-introduce it into the global trade flow.

 **The Cross-Continental Synergy**

We believe that our multi-regional strategy creates a powerful operational synergy. We plan to leverage China and Southeast Asia's cost-efficient, high-volume feedstock sourcing to feed regional supply networks, while deploying our advanced processing capabilities in the United States to serve premium, high-value end markets. This balanced geographic approach mitigates macro-economic risks, optimizes our supply chain logistics, and maximizes returns for our shareholders.

We are not just participating in the recycling industry; we believe that we are transforming the industry across continents. We believe that Carbon Zero Technologies is uniquely equipped to capture this fragmented, rapidly growing market, turning global waste into a sustainable, highly profitable engine for a zero-carbon future.

 **Our Vision: to Transform the Recycling Services Industry**

The end-to-end process of renewable resources recycling involves numerous steps and many different players, from major manufacturing companies to individual service providers, and everything in between. Currently, the systems and information to support all these steps are highly disjointed, making it nearly impossible to obtain a comprehensive view of the overall process, thus preventing companies from improving the process as well. We believe that we have prototyped a system that can be used to support the entire end-to-end process. We believe this system prototype, coupled with our proprietary technology, creates value for our industry, as it provides real-time speed and efficiency, tamper-proof reliability, traceability, and transparency for the whole recycling process. Such a system could become even more important as connected devices are increasingly used to capture real-time data and, in the future, as artificial intelligence is used to predict and react to demand.

 **Our Value Proposition: an Open System Driven by Supply Chain Capabilities and Technology**

Recycling business lacks sufficient structure, the recycling channels are fragmented and many recycling systems are idle and inefficient. We believe that building an open system driven by supply chain capabilities and technology and by creating a new infrastructure defined by end-to-end coverage of the value chain are the keys to success in the recycling business.

**Our Outlook: the Future of Our Company**

Our corporate culture balances stability and innovation, focusing on both the present and the future. For the next three to five years, we plan to adhere to two strategic priorities: first, to pursue rapid business growth by enhancing our integrated system capabilities, and second, to expand recycling categories and integrate business chain verticals.

One of the biggest obstacles to the renewable resources recycling business will likely be getting companies and customers to cooperate and collaborate, creating a common vision, developing common standards, and agreeing to build and use a common system. Whether companies are direct competitors or supply chain partners, each has a strategic interest in maintaining advantages over competitors and collaborators. However, we believe that our company's ability to create significant value for each player in our system means that every partner has an incentive to cooperate. We have developed recycling solutions with individual companies throughout the industry and have seen compelling cases and momentum towards shaping the future of the recycling transaction ecosystem.

**Partnership with Our Shareholders: Creating Long-term Value and Contributing to Society** 

I believe that a robust and sustainable business is a good business, but a business that does good for society beyond generating shareholder return is a great business. We believe that the value of a business lies in solving social problems and creating social value. If you share similar values and believe in long-term value creation both economically and socially, join us as we build a better world.

Thank you for reading this letter. We look forward to partnering with you in the exciting journey ahead.

Baitong Tang

Founder and CEO

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [PROSPECTUS SUMMARY](#a_001) | 1 |
| [THE OFFERING](#a_002) | 13 |
| [SUMMARY CONSOLIDATED FINANCIAL DATA](#a_003) | 15 |
| [RISK FACTORS](#a_004) | 17 |
| [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_005) | 53 |
| [USE OF PROCEEDS](#a_006) | 54 |
| [DIVIDEND POLICY](#a_007) | 55 |
| [CAPITALIZATION](#a_008) | 56 |
| [DILUTION](#a_009) | 56 |
| [ENFORCEABILITY OF CIVIL LIABILITIES](#a_010) | 58 |
| [CORPORATE HISTORY AND STRUCTURE](#a_011) | 60 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_012) | 62 |
| [INDUSTRY OVERVIEW](#a_013) | 76 |
| [BUSINESS](#a_014) | 79 |
| [REGULATIONS](#da_001) | 100 |
| [MANAGEMENT](#da_002) | 114 |
| [PRINCIPAL SHAREHOLDERS](#da_003) | 120 |
| [RELATED PARTY TRANSACTIONS](#da_004) | 122 |
| [DESCRIPTION OF SHARE CAPITAL](#Car_001) | 126 |
| [DESCRIPTION OF AMERICAN DEPOSITARY SHARES](#Car_002) | 145 |
| [SHARES ELIGIBLE FOR FUTURE SALE](#Car_003) | 154 |
| [TAXATION](#Car_004) | 155 |
| [UNDERWRITING](#Car_005) | 161 |
| [EXPENSES RELATING TO THIS OFFERING](#Car_006) | 170 |
| [LEGAL MATTERS](#Car_007) | 170 |
| [EXPERTS](#Car_008) | 170 |
| [WHERE YOU CAN FIND ADDITIONAL INFORMATION](#Car_009) | 170 |
| [INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#Car_010) | F-1 |

---

You should rely on the information contained in this prospectus or in any related free writing prospectus. We have not authorized anyone to provide you with information different from that contained in this prospectus or in any related free writing prospectus. We are offering to sell, and seeking offers to buy, the ADSs only in jurisdictions where offers and sales are permitted. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the ADSs.

Neither we, the Selling Shareholder, nor the underwriters have taken any action to permit a public offering of the ADSs outside the United States or to permit the possession or distribution of this prospectus or any filed free-writing prospectus outside the United States. Persons outside the United States who come into possession of this prospectus or any filed free writing prospectus must inform themselves about and observe any restrictions relating to the offering of the ADSs and the distribution of this prospectus or any filed free writing prospectus outside the United States.

**Until [ ], 2026 (the 25<sup>th</sup> day after the date of this prospectus), all dealers that buy, sell or trade ADSs, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers' obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

i

**PROSPECTUS SUMMARY**

*This summary highlights certain information contained elsewhere in this prospectus. You should read the entire prospectus carefully, including our financial statements and related notes and the risks described under "Risk Factors." Our actual results and future events may differ significantly based upon a number of factors. The reader should not put undue reliance on the forward-looking statements in this document, which speak only as of the date on the cover of this prospectus.*

**Overview**

Established in 2016, we, through our Operating Entities, are a technology driven renewable resources recycling company and system provider. We recycled approximately 46.1 million units of waste household appliances, waste plastic, waste paper and scrap vehicles (together as "household waste") since our inception to December 31, 2025, ranking first in China according to the CIC report. We purchase and sell recycled renewable resources, primarily waste ferrous metals and household waste, and provide our renewable resources recycling platform and services based on an O2O (Online to Offline) model through online applications and offline sites. We believe that we are positioned as an innovative driving force in the traditional recycling business, leading the digitization of recycling ecosystems in mainland China. Our goal is to establish comprehensive, digitized, and standardized waste recycling services, covering all categories of recyclable materials.

Our first operating subsidiary in mainland China, ABGreen Shenzhen, was founded in 2016, and in 2017, we launched our proprietary technology software and applications Boolv ShouShou and Boolv Collect. As of December 31, 2025, more than 146,000 electrical and electronic appliance sales personnel are registered in our mini-program Boolv ShouShou and provide household waste and consumer electronics source information. More than 38,000 third-party recycling personnel who perform on-site collection of renewable resources are registered in our Boolv Collect app as of December 31, 2025, which allows registered recycling personnel to bid for and accept recycling orders by connecting with suppliers on our renewable resources recycling online system. In 2020, we launched our Boolv Sorting Center app for sourcing information on collection, inventory management, and settlement systems. The app is now used in third-party recycling stations, transit yards, and sorting centers, in addition to our sorting center.

In 2021, we launched our recycling and disposal of waste metallic resources business, which developed rapidly and became the recycling category that contributed to the largest percentage of our revenue in fiscal years 2024 and 2025. Our business scope currently includes waste metallic resource recycling, household waste recycling, pre-owned electronic sales, as well as downstream services such as metallic resources and household waste dismantling and disposal. Our main revenue is generated from waste metallic resources and household waste. In 2024 and 2025, our revenues reached RMB4.5 billion and RMB5.8 billion, respectively, with a year-over-year growth of 28.9% in 2025 compared to 2024.

**Our Competitive Strengths**

● **Extensive Nationwide Recycling Network:** We have established a renewable resources recycling network covering more than 500 cities (including county-level cities). Our network includes approximately 4,600 third-party recycling stations and more than 38,000 registered recycling personnel as of December 31, 2025. This capability allows end-to-end coverage for connecting the upstream suppliers to the downstream second-hand sales platforms and markets and dismantling and disposal enterprises. We believe our network offers us four major advantages:

○ Efficient Recycling: We allow complete on-site collection within 24 hours after users/suppliers place their orders for recycling, greatly improving service efficiency and establishing a leading competitive edge in nationwide recycling services in China.

○ Effective Sourcing of Supply: Leveraging the recycling service capabilities of our recycling network, we have access to a vast supply of waste products nationwide, enabling us to establish a leading supply capacity.

○ Full Category Business Expansion: With our existing network of third-party recycling stations, transfer yards, and sorting centers, we can efficiently expand our services to include other recycling categories, such as plastic waste recycling and textile waste recycling, thereby increasing revenue and profitability.

○ Cost Reduction and Efficiency Enhancement: Through strategic supply partnerships with over 15 downstream waste dismantling and disposal companies and more than 10 steel production companies, we ensure seamless integration of the entire life cycle of renewable resources, from collection to disposal and dismantling.

● **Tech-Driven Innovations:** Through a combination of internet technology and offline recycling networks, we have created a digitized recycling ecosystem comprising:

○ Boolv ShouShou for collection of recycling information from registered users;

○ Boolv Collect for convenient door-to-door recycling used by recycling personal; and

○ Boolv Sorting Center for refined classification of the recycled items used by recycling station, transit yard, and sorting center personnel to manage the collected renewable resources.

● **Industry-Leading Traceability System for Renewable Resources:** Our system provides key information such as product details, sources, destinations, and sales records, which are recorded data in the system, and technical support. Our system enables unique Environmental, Social, and Corporate Governance ()"**ESG**") traceability capabilities for renewable resources recycling and monitors and traces different processes of every business unit. Our objective is to collectively enhance corporate, environmental, and social value. We use our Boolv ShouShou mini-program to collect recycling information, including order sources, categories of waste, and quantity of waste. Recycling personnel will upload the collected information via the Boolv Collect mobile application. The recycling station, transit yard, and sorting center personnel use our Boolv Sorting Center mobile application to register order sources, categories, quantities, inventory management, and sales. We then use our Boolv Sorting Center application to allocate and sell renewable resources to the dismantling enterprises. The data collected from the above four processes primarily form a full lifecycle of waste household appliance products, from the user to the dismantling enterprises. The Ministry of Commerce of the People's Republic of China invited us to share and promote this traceability system to other local governments, and we were invited by companies in the same industry to share our system.

● **Empower Business Partners and Create a Diverse Ecosystem:** Given our industry knowledge and expertise as well as our business expansion and empowerment capabilities, we cooperate with numerous industry partners in the upstream supplier and downstream customer aspects of the renewable resources recycling industry. These partners are well established in China's renewable resources recycling industry in logistics, environmental protection equipment, and dismantling and disposal.

**Our Growth Strategies**

Our strategies aim to further grow our business as well as increase our penetration in the renewable resources recycling industry in China and globally. To accomplish this, we plan to leverage the strengths and capabilities of our renewable resources recycling platform to achieve organic growth and to search for new opportunities to expand our renewable resources recycling categories and integrate additional business segments:

● **Innovation Driven Growth Strategies:** By improving our current applications and developing more widely applicable digital tools, we plan to strengthen our technology innovation and research and development capabilities, increase investments in digital technology, and emphasize our research on data analysis, traceability management, Internet of Things (IoT) and location-based services (LBS), unique product identifiers, and digital supply chain technologies required by our industry. We aim to grow our user base and promote innovation and enhance capabilities of our technology system and recycling ecosystem.

● **Online and Offline Customer Growth**: We intend to expand our range of customer services through both online and offline growth approaches. By establishing a larger network of third-party physical locations that integrate with our online systems, we aim to cover more cities and connect with more upstream supply channels, such as towns and communities for sourcing renewable resources. We believe this approach will ultimately expand our downstream distribution channels as well. In the next three years, we plan to add approximately 2,000 traditional offline recycling stations and to expand to cover over 6,500 offline recycling stations.

● **Expand ing into the United States and Southeast Asian markets:** We are actively expanding our renewable resources recycling operations into the United States and strategic Southeast Asian markets to capture high-value growth. We are targeting premium U.S. markets driven by strict net-zero mandates, while establishing localization hubs in Southeast Asia to leverage cost-efficient feedstock and new Extended Producer Responsibility (EPR) laws, ultimately creating a cross-continental synergy that maximizes profitability.

● **Expand Recycling Categories and Integrate Business Chain:** Increasing revenue and enhancing margin are our top business development priorities. We plan to continue expanding the scope of our recycling services to cover a wider range of renewable resources categories. These categories include not only waste metallic resources and household waste, but also lithium-ion batteries. By establishing or acquiring a dismantling business, we can extend our business chain from "collection – classification - resale" to include environmentally-sound dismantling. This extension would enable us to increase our gross profit margin, improve profitability and strengthen our value proposition in the industry. For example, an entity in which we previously held equity interests, Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd, completed the filing of the Registration Certificate for Renewable Resource Recycling Operations with the Ministry of Commerce on August 15, 2024, and the Qualification Certificate for End-of-Life Vehicle Dismantling Enterprises (Certificate No. 3604822475) issued by the Jiangxi Provincial Department of Commerce on March 5, 2025. Furthermore, our investment in Hubei Jinke has expanded our business scope, including household waste dismantling and hazardous waste disposal. We plan to increase the proportion of downstream disposal and dismantling segments in the Company's total revenue and profit, overall extending the Company's value chain.

● **Strengthen Business Collaborations:** We believe that connecting with a wider network of business partners is a key driver of our future growth. We plan to collaborate with major manufacturing enterprises to diversify our B2B sourcing network. Furthermore, we aim to establish partnerships with various third-party systems, including property management, appliance repair, home cleaning, and charitable foundations, leveraging their "at-home service" capabilities to expand our sourcing network and user base.

● **Support ESG Sustainable Growth:** ESG principals have become a crucial concept for enterprises globally, and China has implemented policies requiring annual ESG accountability reports from companies nationwide. By supporting compliance and consistency with ESG principles in our business model, we believe we will attract more customers and business collaboration to support our ultimate mission of zero waste product solutions.

● **Participation in Carbon Trading:** In 2021, China launched the world's largest carbon emissions trading system, which will play a fundamental role in reducing carbon emissions. We plan to capitalize on the data and information we collect via our system to accumulate carbon quotas for future profit growth by participating in international/domestic carbon markets. On September 11, 2023, we obtained a Product Carbon Footprint Certification/PCF Certification of Registration in the PRC from Auburn Inspection & Certification Group Co., Ltd.

**Our Corporate History and Structure**

We are a Cayman Islands holding company and primarily conduct our operations in China through ABGreen Shenzhen and its subsidiaries, as well as Carbon Source HK's PRC subsidiaries. In connection with this offering, we underwent a series of restructurings of our corporate structure, which primarily included:

● On July 21, 2022, CZTI Shenzhen acquired 75% equity interests in ABGreen Shenzhen.

● On July 13, 2023, we incorporated CZTI, our holding company, as an exempted company with limited liability under the laws of the Cayman Islands.

● On August 9, 2023, we incorporated CZTI HK in Hong Kong as a wholly owned subsidiary of CZTI.

● On August 30, 2023, we incorporated CZTI WFOE, our onshore holding company, as a wholly owned subsidiary of CZTI HK.

● On September 25, 2023, CZTI WFOE acquired the entire equity interests in CZTI Shenzhen.

Our current corporate structure does not contain any VIE structures in the PRC and neither we nor any of our subsidiaries have any current intention of establishing any VIEs in the PRC in the future. As of the date of this prospectus, substantially all our business is conducted by our PRC subsidiaries.

Our principal executive office is located at 8 Eu Tong Sen Street, #16-81, The Central, Singapore. Our telephone number at this address is +65 6592 7626. Our office address in China is Room 610, Block A, Bairuida Building, Banxuegang Avenue, Wanke City Community, Bantian Street, Longgang District, Shenzhen, China, 518100. Our telephone number at this address is +86 0755-23485305. Our registered office in the Cayman Islands is located at the office of Osiris International Cayman Limited, Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands.

**Corporate Structure**

The following diagram illustrates our corporate structure as of the date of this prospectus:

![](formdrs_049.jpg)

**Summary of Risk Factors**

Investing in the ADSs involves a high degree of risk. Our business is subject to multiple risks and uncertainties, as more thoroughly described in "Risk Factors" beginning on page 17 of this prospectus and elsewhere in this prospectus. We urge you to read "Risk Factors" and this prospectus in full. Our principal risks may be summarized as follows:

***Risks Related to our Business and Industry***

● We face challenges and potential setbacks due to the rapidly evolving renewable resources recycling industry in China, including limited systems, absence of standards, and regulatory uncertainties, which may hinder the anticipated success and acceptance of our business model.

● We risk impeding development and growth if we cannot meet talent recruitment needs for technological development, expanding recycling categories, including downstream businesses, and business expansion.

● We risk misalignment between technological development and business plans, potentially hindering our current growth and strategies if enhanced compatibility and functionality in digital systems, IT capabilities, traceability management, and financial inventory systems are not achieved.

● We face market risks in implementing our business strategy, including renewable resources recycling category expansion and downstream operations expansion. If we are unable to carefully evaluate our investment, market risks, and optimization of production and operational management while expanding, our business, financial condition and results of operations may be materially and adversely affected.

● The potential deterioration of our relationships with business partners in the renewable resources recycling value chain poses a risk of adverse effects on our business prospects and operations.

● We have negative net cash flows from operating activities, which may continue in the future.

● The differences between our merchandise costs and sales of renewable resources and the fees we charge related to services on our online system may fluctuate or decline in the future. Any material decrease in such price differences or fees would harm our business, financial condition and results of operations.

● Our expansion into new renewable resources recycling categories and the offering of new services may expose us to new challenges and more risks.

● Any failure to obtain or renew certain filings, approvals, licenses, permits and certificates required for our business operations may materially and adversely affect our business, financial condition and results of operations.

***Risks Related to Doing Business in the PRC***

● The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required in connection with this offering under PRC law. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations. *See* "*Risk Factors — Risks Related to Doing Business in the PRC — The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required in connection with this offering under PRC law. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations*." beginning on page 31 of this prospectus.

● Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on our business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies. See "*Risk Factors — Risks Related to Doing Business in the PRC — Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on our business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies*." beginning on page 32 of this prospectus.

● The recent policy pronouncements by the PRC government regarding business activities of U.S.-listed PRC businesses may negatively impact our Hong Kong subsidiary.

● There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations, and changes in policies, laws, rules and regulations in the PRC could adversely affect us. Furthermore, we are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our business and prospects, and may result in a material change in our operations and/or the value of the ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or those securities to become worthless. *See* "*Risk Factors — Risks Related to Doing Business in the PRC — There are uncertainties regarding the interpretation and enforcement of PRC laws, rules, and changes in policies, laws, rules and regulations in the PRC could adversely affect us. Furthermore, we are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our business and prospects, and may result in a material change in our operations and/or the value of the ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or those securities to become worthless.*" beginning on page 33 of this prospectus.

● Because we operate in mainland China, the Chinese government may exercise significant oversight and discretion over the conduct of our subsidiaries' business and may intervene or influence their operations, including that of our PRC subsidiaries, at any time, which could result in a material adverse change in our business and operations, prospects, financial condition, and results of operations, and the value of our securities. Changes in the policies, regulations, rule, and the enforcement of laws of the Chinese government may also be implemented quickly with little advance notice, and the Chinese government may intervene of influence our subsidiaries at any time or may exert more control over offerings conducted overseas or investments in China-based issuers, which could result in material changes in operations and/or the value of the securities we are registering for sale. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment and/or operations in China-based issuers could significantly change our operations, limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Therefore, our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain. *See* "*Risk Factors — Risks Related to Doing Business in the PRC — Because we operate in mainland China, the Chinese government may exercise significant oversight and discretion over the conduct of our subsidiaries' business and may intervene or influence their operations, including that of our PRC subsidiaries, at any time, which could result in a material adverse change in our business and operations, prospects, financial condition, and results of operations, and the value of our securities. Changes in the policies, regulations, rule, and the enforcement of laws of the Chinese government may also be implemented quickly with little advance notice, and the Chinese government may intervene of influence our subsidiaries at any time or may exert more control over offerings conducted overseas or investments in China-based issuers, which could result in material changes in operations and/or the value of the securities we are registering for sale. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment and/or operations in China-based issuers could significantly change our operations, limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Therefore, our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain.*" beginning on page 33 of this prospectus.

● Recent oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, and a variety of laws and other obligations regarding data protection to which we are subject, could adversely impact our business and our offering.

● PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject us to liability or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us.

● We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business. See *Risk Factors — Risks Related to Doing Business in the PRC — We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business.*" beginning on page 35 of this prospectus.

● You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management named in the prospectus based on foreign laws.

● The Hong Kong legal system embodies uncertainties which could limit the availability of legal protections.

● Our Hong Kong subsidiary is subject to Hong Kong laws and regulations regarding data security, which could subject them to government enforcement actions and investigations, fines, penalties, and suspension or disruption of their operations.

***Risks Related to Our Corporate Structure and Operations***

 ****

● We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.

● As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards.

● We will incur increased costs as a result of being a public company, particularly after we cease to qualify as an "emerging growth company."

● We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.

● The obligation to disclose information publicly may put us at a disadvantage to competitors that are private companies.

● We are a "controlled company" within the meaning of the Nasdaq listing standards and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to shareholders of companies that are subject to such requirements.

***Risks Related to the ADSs and this Offering***

● Trading of the ADSs will be prohibited in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if it is later determined that the PCAOB is unable to inspect and investigate completely our auditor. The delisting of and prohibition from trading the ADSs, or the threat of their being delisted and prohibited from trading, may cause the value of the ADSs to significantly decline or the ADSs to become worthless.

● There has been no public market for the ADSs prior to this offering, and you may not be able to resell the ADSs at or above the price you paid, or at all.

● Our dual-class voting structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares and the ADSs may view as beneficial.

● If we fail to establish and maintain proper internal financial reporting controls, our ability to produce accurate financial statements or comply with applicable regulations could be impaired.

● Certain recent initial public offerings of companies with smaller public floats have experienced extreme stock price run-ups followed by rapid price declines and stock price volatility seemingly unrelated to company performance. If such volatility were to occur to us it may prove difficult for prospective investors to assess the rapidly changing value of the ADSs.

● ADS holders may not be entitled to a jury trial with respect to claims arising under the deposit agreement or related to the ADSs, which could result in less favorable outcomes to the plaintiff(s) in any such action.

**Cash Transfers and Dividend Distributions**

As of the date of this prospectus, our Cayman Islands holding company has not declared or paid dividends, made distributions, or transferred assets to its subsidiaries or to investors in the past, nor have any dividends, distributions or asset transfers been made by any PRC subsidiary to CZTI HK, Carbon Source HK and/or the Cayman Islands holding company. For the years ended December 31, 2024 and 2025, our PRC subsidiaries did not declare any dividends to their shareholders.

For the year ended December 31, 2024, our Cayman Islands holding company made a capital contribution of RMB 2 million to CZTI HK and provided a working capital loan of RMB 1 million to CZTI HK in January 2024. CZTI HK further made capital contributions of RMB 3 million to CZTI WFOE in January 2024. For the year ended December 31, 2025, Carbon Source HK provided a working capital loan of RMB 0.7 million to ABGreen Henan and made capital contributions of RMB 0.3 million to Hubei Carbon Link.

Our board of directors has complete discretion on whether to distribute dividends, subject to applicable laws. U.S. investors will not be subject to Cayman Islands taxation on dividend distributions, and no withholding will be required on the payment of dividends or distributions to them while they may be subject to U.S. federal income tax. Our Cayman Islands holding company may be classified as a "resident enterprise" of China. This classification could result in unfavorable tax consequences to us and our non-PRC shareholders and dividends paid by us may be subject to PRC withholding tax. See "*Taxation — United States federal income tax considerations — Dividends and Other Distributions on the ADSs or Ordinary Shares.*" We do not have any current plan to declare or pay any cash dividends on our ordinary shares in the foreseeable future after this offering. See *"Risk Factors — Risks related to the ADSs and this Offering — We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of the ADSs for return on your investment"* beginning on page 48 of this prospectus.

Subject to certain contractual, legal, and regulatory restrictions, cash and capital contributions may be transferred among our Cayman Islands holding company, CZTI HK, Carbon Source HK and our PRC subsidiaries. If needed, our Cayman Islands holding company can transfer cash to CZTI HK, Carbon Source HK and our PRC subsidiaries through loans and/or capital contributions, and our PRC subsidiaries can transfer cash to CZTI HK, Carbon Source HK and our Cayman Islands holding company through loans and/or issuing dividends or other distributions. There are currently no restrictions on transferring funds among our Cayman Islands holding company, CZTI HK and Carbon Source HK. There are limitations on the ability to transfer cash between the Cayman Islands holding company and the PRC subsidiaries. Cash transfers from the Cayman Islands holding company to the PRC subsidiaries are subject to the applicable PRC laws and regulations on loans and direct investment. See *"Risk Factors — Risks Related to Doing Business in the PRC — PRC regulations of loans and direct investment by offshore holding companies to the PRC subsidiaries may delay or prevent us from using the proceeds of our offshore financing to make loans or additional capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and business"* beginning on page 36 of this prospectus. If any of the PRC subsidiaries incurs debt on their own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us. Dividends from our PRC subsidiaries to CZTI HK/Carbon Source HK and the Cayman Islands holding company are subject to the current PRC regulations, which permit the PRC subsidiaries to pay dividends to their shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. Cash transfers from our PRC subsidiaries to CZTI HK/Carbon Source HK and the Cayman Islands holding company are subject to the restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion. Additionally, to the extent cash or assets in the business is in China or a Chinese operating entity, the funds or assets may not be available to fund operations or for other use outside of China due to interventions in or the imposition of restrictions and limitations on the ability of our Company or the Operating Entities by the PRC government to transfer cash or assets. See *"Risk Factors — Risks Related to Doing Business in the PRC — We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business"* beginning on page 35 of this prospectus. See also *"Risk Factors — Risks Related to Doing Business in the PRC — Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations and affect the value of your investment"* beginning on page 37 of this prospectus.

As of the date of this prospectus, we have not maintained any cash management policies that dictate the purpose, amount, and procedure of fund transfers among our Cayman Islands holding company, our subsidiaries, or investors. Rather, the funds can be transferred in accordance with the applicable laws and regulations.

**Recent PRC Regulatory Developments**

Recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations in certain areas in China with little advance notice, including cracking down on illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a "VIE", adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti-monopoly enforcement.

***Measures for Cybersecurity Review***

On December 28, 2021, the CAC, and several other regulatory authorities in China jointly promulgated the Measures for Cybersecurity Review, which came into effect on February 15, 2022. Pursuant to the Measures for Cybersecurity Review, (i) where the relevant activity affects or may affect national security, a "critical information infrastructure operator," or a CIIO, that purchases network products and services, or an internet platform operator that conducts data process activities, shall be subject to the cybersecurity review, (ii) an application for cybersecurity review shall be made by an issuer who is an internet platform operator holding personal information of more than one million users before such issuer applies to list its securities on a foreign stock exchange, and (iii) relevant governmental authorities in the PRC may initiate cybersecurity review if they determine an operator's network products or services or data processing activities affect or may affect national security.

As advised by our PRC legal counsel, Zhong Lun Law Firm, as of the date of this prospectus, we are not required to declare a cybersecurity review with the CAC, according to the Measures for Cybersecurity Review, since we are not an online platform operator carrying out data processing activities that affect or may affect national security, and currently do not have over one million users' personal information. As of the date of this prospectus, we have not received any notice from any authorities identifying us as CIIOs or requiring us to undergo a cybersecurity review or network data security review by the CAC.

***CSRC Filing Required for the Listing of the ADSs***

On February 17, 2023, the CSRC issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises, or the Trial Measures, which became effective on March 31, 2023. On the same date of the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, the Notes on the Trial Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises and the relevant CSRC Answers to Reporter Questions on the official website of the CSRC, together with the Trial Measures, the Overseas Listing Filing Rules. Under the Overseas Listing Filing Rules, (i) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures with the CSRC; if a domestic company fails to complete the filing procedures, such domestic company may be subject to administrative penalties; and (ii) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and such filings shall be submitted to the CSRC within three business days after the submission of the overseas offering and listing application.

On February 24, 2023, the CSRC, Ministry of Finance of the PRC, National Administration of State Secrets Protection and National Archives Administration of China jointly issued the Provisions on Strengthening the Confidentiality and Archive Management Work Relating to the Overseas Securities Offering and Listing, or the "Confidentiality Provisions", which came into effect on March 31, 2023, with the Trial Measures. The Confidentiality Provisions require that, among other things, (i) a domestic company that plans to, either directly or through its overseas listed entity, publicly disclose or provide to relevant individuals or entities including securities companies, securities service providers and overseas regulators, any documents and materials that contain state secrets or working secrets of government agencies, shall first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level; and (ii) domestic company that plans to, either directly or through its overseas listed entity, publicly disclose or provide to relevant individuals and entities including securities companies, securities service providers and overseas regulators, any other documents and materials that, if leaked, will be detrimental to national security or public interest, shall strictly fulfill relevant procedures stipulated by applicable national regulations. For more details of the Overseas Listing Filing Rules and the Confidentiality Provisions, please refer to "Regulations — Regulations Relating to Overseas Listing."

According to the Overseas Listing Filing Rules, we are required to submit the filing application to the CSRC within three business days after our submission of application for any overseas initial public offering and listing and complete the filing procedure before our overseas initial public offering and listing. We have submitted a filing with the CSRC with respect to our overseas initial public offering and listing on November 20, 2023. On May 30, 2024, the CSRC published a Filing Completion Notice on the CSRC's official website ("Filing Completion Notice"), confirming that we have completed the filing procedures with the CSRC under the Trial Measures. Pursuant to the requirements of the Filing Completion Notice, if we fail to complete the overseas offering and listing within 12 months from the date of issuance of such notice and intend to continue with the listing process, we shall update the filing materials. In accordance with Article 19 of the Trial Measures, where the filing materials are complete and in compliance with applicable requirements, the CSRC shall complete the filing procedures within 20 working days from the date of receipt of such materials. In compliance with the foregoing requirements of the Filing Completion Notice and the provisions of the Trial Measures, we proceeded with our listing process after May 30, 2025, and accordingly submitted updated filing materials to the CSRC on July 15, 2025. The CSRC officially accepted such updated materials on October 23, 2025, raised no objections within the subsequent 20-working-day period, and has not raised any objections as of the date of this prospectus. However, from the date of issuance of the Filing Completion Notice to the completion of this offering, if we experience any material or significant events that may cause (i) a major change to the main business or business license qualifications of the PRC Subsidiaries; (ii) a major change of control or equity structure; and (iii) a major adjustment to the offering and listing plan which includes but are not limited to changes of the listing place, possible changes of control after the adjustment of the offering plan, and increases in the proportion of shares to be issued, we shall update the filing documents with the CSRC within three business days. Additionally, upon completion of this offering, we shall report the offering information to the CSRC within 15 business days. If a violation of the foregoing and related regulations occurs, the CSRC may order rectification, issue warnings, and impose a fine between RMB 1 million and RMB 10 million on our PRC Subsidiaries, which could adversely and materially affect our business operations and financial outlook, and significantly limit or completely hinder our ability to offer or continue to offer the ADSs to investors and could cause the value of the ADSs to significantly decline or the ADSs to become worthless. Additionally, if we do not obtain the permissions and approvals of the filing procedure for any subsequent offering in a timely manner under PRC laws and regulations, we may be subject to investigations by competent PRC regulators, fines or penalties, ordered to suspend our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and these risks could result in a material adverse change in our operations, limit our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer and list the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations. For details of the associated risks, see "*Risk Factors — Risks Related to Doing Business in the PRC — The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required in connection with this offering under PRC law. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations*."

Additionally, all of our PRC subsidiaries are required to obtain business licenses to operate our business. See *"Risk Factors — Risks Related to Our Business and Industry — Any failure to obtain or renew certain filings, approvals, licenses, permits and certificates required for our business operations may materially and adversely affect our business, financial condition and results of operations."* beginning on page 25 and see also "*Regulations*" beginning on page 100 of this prospectus.

As of the date of this prospectus, (1) we and our PRC subsidiaries have received from PRC authorities the requisite operation licenses, permissions or approvals needed to engage in the businesses currently conducted in China, and no permission or approval has been denied, and (2) we have not received any formal notice, warning, sanction, or objection from the CSRC with respect to the listing of the ADSs.

However, there can be no assurance that the relevant PRC governmental authorities, including the CSRC, would reach the same conclusion as us, or that the CSRC, CAC or any other PRC governmental authorities would not promulgate new rules or new interpretation of current rules (with retrospective effect) to require us to obtain CAC, or other PRC governmental approvals for this offering. If we (i) do not receive or maintain our requisite permissions or approvals, (ii) inadvertently concluded that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and we are required to obtain such permissions or approvals in the future, our ability to offer or continue to offer the ADSs to investors could be significantly limited or completed hindered, which could cause the value of the ADSs to significantly decline or become worthless. We may also face sanctions by the CSRC, the CAC or other PRC regulatory agencies. These regulatory agencies may impose fines, penalties, limit our operations in China, or take other actions that could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as the trading price of our securities. See "*Risk Factors*" beginning on page 17 to read about factors you should consider before buying the ADSs.

**Implication of the Holding Foreign Companies Accountable Act**

The Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020, and was amended by the Consolidated Appropriations Act, 2023 enacted on December 29, 2022. The amended HFCAA states if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the PCAOB for two consecutive years, the SEC shall prohibit the ADSs from being traded on a national securities exchange or in the over-the-counter trading market in the United States. The Consolidated Appropriations Act, 2023 reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three to two years. The PCAOB issued a Determination Report on December 16, 2021 (the "Determination Report") which found that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong because of a position taken by one or more authorities in those jurisdictions. Furthermore, the Determination Report identified the specific registered public accounting firms which are subject to these determinations ("PCAOB Identified Firms"). Our auditor, Marcum Asia, the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Marcum Asia is headquartered in New York, New York, and, as of the date of this prospectus, was not included in the list of PCAOB Identified Firms in the Determination Report. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021, determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms.

Each year, the PCAOB will determine whether it can inspect and investigate audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a "Commission-Identified Issuer" following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a "Commission-Identified Issuer" for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. The delisting of the ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. These risks could result in a material adverse change in our operations and the value of the ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors or cause the value of such securities to significantly decline or such securities to become worthless. For more details, see "*Risk Factors — Risks Related to The ADSs and This Offering — Trading of the ADSs will be prohibited in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if it is later determined that the PCAOB is unable to inspect and investigate completely our auditor. The delisting of and prohibition from trading the ADSs, or the threat of their being delisted and prohibited from trading, may cause the value of the ADSs to significantly decline or the ADSs to become worthless" beginning on page 44 of this prospectus.*

**Corporate Information**

Our principal executive office is located at 8 Eu Tong Sen Street, #16-81, The Central, Singapore. Our telephone number at this address is +65 6592 7626. Our office address in China is Room 610, Block A, Bairuida Building, Banxuegang Avenue, Wanke City Community, Bantian Street, Longgang District, Shenzhen, China, 518100, and our telephone number is +86 0755-23485305. Our website is https://www.boolv.com. Information contained on, or available through, our website does not constitute part of, and is not deemed incorporated by reference into, this prospectus. Our registered office in the Cayman Islands is located at the office of Osiris International Cayman Limited, Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands. Our agent for service of process in the United States is Cogency Global Inc.

**Implications of Being an Emerging Growth Company**

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, as amended (the "JOBS Act"). For as long as we remain an emerging growth company, we may rely on exemptions from some of the reporting requirements applicable to public companies that are not emerging growth companies. As an emerging growth company, we:

● may present only two years of audited financial statements and only two years of related Management's Discussion and Analysis of Financial Condition and Results of Operations, or "MD&A";

● are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives, which is commonly referred to as "compensation discussion and analysis";

● are not required to obtain an attestation and report from our auditors on our management's assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;

● are not required to obtain a non-binding advisory vote from our shareholders on executive compensation or golden parachute arrangements (commonly referred to as the "say-on-pay," "say-on frequency" and "say-on-golden-parachute" votes);

● are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and chief executive officer pay ratio disclosure;

● are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act; and

● will not be required to conduct an evaluation of our internal control over financial reporting until our second annual report on Form 20-F following the effectiveness of our initial public offering.

We intend to take advantage of all reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

Under the JOBS Act, we may take advantage of the above-described reduced reporting requirements and exemptions until we no longer meet the definition of an emerging growth company. We will remain an emerging growth company until the earliest of (a) the last day of the fiscal year during which we have total annual gross revenues of at least $1.235 billion; (b) the last day of our fiscal year following the fifth anniversary of the completion of this offering; (c) the date on which we have, during the preceding three-year period, issued more than $1.0 billion in non-convertible debt; or (d) the date on which we are deemed to be a "large accelerated filer" under the United States Securities Exchange Act of 1934, as amended (the "Exchange Act"), which would occur if the market value of the ADSs that are held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter. Once we cease to be an emerging growth company, we will not be entitled to the exemptions provided in the JOBS Act discussed above.

**Implications of Being a** **Foreign Private Issuer**

We are a foreign private issuer within the meaning of the rules under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As such, we are exempt from certain provisions applicable to United States domestic public companies. For example:

● we are not required to provide as many Exchange Act reports, or as frequently, as a domestic public company;

● for interim reporting, we are permitted to comply solely with our home country requirements, which are less rigorous than the rules that apply to domestic public companies;

● we are not required to provide the same level of disclosure on certain issues, such as executive compensation;

● we are exempt from provisions of Regulation FD aimed at preventing issuers from making selective disclosures of material information;

● we are not required to comply with the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act; and

● Our officers, directors, and principal shareholders are exempt from the short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

**Commonly Used Defined Terms**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "ABGreen Anhui" refers to Anhui ABGreen Environmental Protection Technology Co., Ltd., a limited liability company established under the laws of China, which is a wholly owned subsidiary of ABGreen Shenzhen, ABGreen Anhui has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ABGreen AnKang" refers to Ankang ABGreen Environmental Protection Technology Co. Ltd., a limited liability company established under the laws of China, in which ABGreen Shenzhen owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ABGreen Fuyang" refers to ABGreen (Fuyang) Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "ABGreen Henan" refers to Henan ABGreen Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which Carbon Source HK owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "ABGreen Hunan" refers to Hunan ABGreen Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of ABGreen Shenzhen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ABGreen Shenzhen" refers to Shenzhen ABGreen Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which CZTI Shenzhen owns a 75% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ABGreen Shenzhen RSC" refers to Shenzhen ABGreen Reverse Supply Chain Co., Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ADRs" refers to the American depositary receipts, which, if issued, would evidence ADSs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "ADSs" refers to the American depositary shares, each representing four (4) Class A ordinary shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Beijing Guoxun" refers to Beijing Guoxun Renewable Resources Co., Ltd., a company established in the PRC with limited liability, in which Shenzhen Digital owns a 51% equity interest. Currently, Beijing Guoxun has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Beijing Carbon Baike" refers to Carbon Baike (Beijing) Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which Shenzhen Digital owns a 51% equity interest. Currently, Beijing Carbon Baike has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "CAGR" refers to Compound Annual Growth Rate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "China" or the "PRC" for the purposes of this prospectus only herein refers to the People's Republic of China, excluding Taiwan and the special administrative regions of Hong Kong and Macau;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Class A ordinary shares" refer to the Class A ordinary shares of CZTI, par value US$0.00001 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Class B ordinary shares" refer to the Class B ordinary shares of CZTI, par value US$0.00001 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "CZTI" refers to Carbon Zero Technologies International Inc., a Cayman Islands company, and "we", "us", "our", "the Company" refer to CZTI, CZTI HK, Carbon Source HK and its subsidiaries, Shenzhen Chuangzhiyuan and its subsidiaries, WFOE, CZTI Shenzhen and its subsidiaries, and Xieguan Tonglian and its subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "CZTI HK" refers to Carbon Zero Technologies (Hong Kong) Limited, a limited company organized under the laws of Hong Kong and a wholly owned subsidiary of CZTI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Carbon Source HK" refers to Carbon Source Technologies (Hong Kong) Limited, a limited company organized under the laws of Hong Kong and a wholly owned subsidiary of CZTI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "CZTI Shenzhen" refers to Shenzhen Carbon Zero Technology Co. Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of CZTI WFOE;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "CZTI WFOE" or "WFOE" refers to Beijing Bgreen Technology Development Co. Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of CZTI HK;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Guangxi Meijin" refers to Guangxi Meijin Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 51% equity interest. Currently, Guangxi Meijin has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Gongqingcheng" refers to Gongqingcheng Yadannuo Environmental Technology Co., Ltd., a company established in the PRC with limited liability, in which Carbon Source HK owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Guangdong Bo Green" refers to Guangdong Bo Green Investment Co., Ltd., a company established in the PRC with limited liability, in which Shenzhen Chuangzhiyuan owns a 67% equity interest. Currently, Guangdong Bo Green has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Household waste" refers to waste household appliances (defined below), waste plastic, waste paper and scrap vehicles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Hebei Jushang" refers to Jushang (Hebei) Renewable Resources Co., Ltd., a company established in the PRC with limited liability, in which Shenzhen Chuangzhiyuan owns an 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Hubei Jinke" refers to Hubei Jinke Environmental Protection Technology Co., Ltd., a joint-stock company established in the PRC with limited liability, in which ABGreen Shenzhen owns an 8.5% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Hubei Carbon Link" refers to Hubei Carbon Link Recycling Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of Carbon Source HK;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Henan Bgreen" refers to Henan Bgreen Resources and Environment Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of ABGreen Shenzhen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Henan Zhicheng" refers to Henan Zhicheng Industrial Park Management Co., Ltd., a company established in the PRC with limited liability, in which Shenzhen Yize owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Jingchuang Metal" refers to Jiangxi Jingchuang Metal Manufacturing Co., Ltd., a company established in the PRC with limited liability, in which Carbon Source HK owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Jinyou Metal" refers to Henan Jinyou Metal Technology Co. Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Operating Entities" refers to ABGreen Shenzhen and its subsidiaries, Carbon Source HK's subsidiaries, Shenzhen Chuangzhiyuan and its subsidiaries, and Xieguan Tonglian and its subsidiaries, which control all of our business operational activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "PRC subsidiaries" refers to CZTI WFOE and its subsidiaries, Xieguan Tonglian and its subsidiaries, Shenzhen Chuangzhiyuan and its subsidiaries, and Carbon Source HK's subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Qinghe" refers to Quanzhou Qinghe Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 100% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● "Qi Hong" refers to Jiangxi Qi Hong New Material Technology Co., Ltd., a company established in the PRC with limited liability, in which Carbon Source HK owns a 51% equity interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Renewable resources recycling" refers to the process of collecting, sorting, processing, and reusing renewable materials generated in the process of social production and consumption, the three major categories of which are metallic resources, non-metallic resources, and waste electrical and electronic equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "RMB" or "Renminbi" refers to the legal currency of China;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Shenzhen Green Blue" refers to Shenzhen Green Blue Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of Xieguan Tonglian. Currently, Shenzhen Green Blue has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Shenzhen Yize" refers to Shenzhen Yize Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of Xieguan Tonglian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Shenzhen Bgreen" refers to Shenzhen Bgreen Environmental Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of Xieguan Tonglian. Currently, Shenzhen Bgreen has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Shenzhen Digital" refers to Shenzhen Carbon Poly Digital Technology Co., Ltd., a company established in the PRC with limited liability, which is a wholly owned subsidiary of Xieguan Tonglian. Currently, Shenzhen Digital has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Shenzhen Chuangzhiyuan" refers to Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd., a company established in the PRC with limited liability, in which CZTI HK owns a 65% equity. Currently, Shenzhen Chuangzhiyuan has not engaged in any business activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "U.S. dollars", "dollars", "USD," "US$," or "$" refers to the legal currency of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Waste electrical and electronic equipment" refers to waste household appliances and waste consumer electronics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Waste household appliances" refers to waste air conditioners, waste refrigerators, waste washing/drying machines, waste desktop computers, waste televisions, and various waste small household appliances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Waste metallic resources" refers to iron and steel scrap (waste ferrous metals) and waste non-ferrous metals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Xieguan Tonglian" refers to Xieguan Tonglian (Shenzhen) Technology Co., Ltd., a company established in the PRC with limited liability, in which CZTI HK owns a 100% equity interest. Currently, Xieguan Tonglian has not engaged in any business activity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● "Zhoukou Senbo" refers to Zhoukou Senbo Environmental Protection Technology Co., Ltd., a company established in the PRC with limited liability, in which ABGreen Shenzhen owns a 53% equity interest.

Our reporting currency is the Renminbi. This prospectus also contains translations of certain foreign currency amounts into U.S. dollars for the convenience of the reader. Unless otherwise stated, all translations of Renminbi into U.S. dollars were made at RMB 6.9931 to $1.00, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2025. We make no representation that the Renminbi or U.S. dollars amounts referred to in this prospectus could have been or could be converted into U.S. dollars or Renminbi at any particular rate or at all.

**The Offering**

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| | |
|:---|:---|
| Offering price | We currently estimate that the initial public offering price will be between $11.00 and $13.00 per ADS. |
| ADSs offered by us | 3,335,000 ADSs representing 13,340,000 Class A ordinary shares (excluding the over-allotment discussed below). |
| ADSs outstanding immediately after this offering<sup>(1)</sup> | 3,335,000 ADSs |
| Ordinary shares issued and outstanding immediately after this offering | 172,340,610 ordinary shares, comprising 138,340,610 Class A ordinary shares and 34,000,000 Class B ordinary shares |
| The ADSs | Each ADS represents four (4) Class A ordinary shares, par value US $0.00001 per share. The depositary will hold your ordinary shares underlying the ADSs through its custodian. As an ADS holder, you will not be treated as one of our shareholders and you will not have direct shareholder rights. You will have rights as provided in the deposit agreement.<br>If we declare dividends on our Class A ordinary shares, the depositary will pay you the cash dividends and other distributions it receives on our Class A ordinary shares, after deducting its fees and expenses in accordance with the terms set forth in the deposit agreement.<br>You may surrender the ADSs to the depositary for cancellation to receive Class A ordinary shares. The depositary will charge you fees for any cancellation.<br>We and the depositary may amend and we or the depositary terminate the deposit agreement without your consent. If you continue to hold the ADSs after an amendment to the deposit agreement, you agree to be bound by the deposit agreement as amended.<br>To better understand the terms of the ADSs, you should carefully read the "Description of American Depositary Shares" section of this prospectus. You should also read the deposit agreement, which is filed as an exhibit to the registration statement that includes this prospectus. |
| Use of Proceeds | We anticipate using the net proceeds of this offering primarily for the purposes of expanding our recycling operations in categories beyond household waste, ferrous metals, lithium batteries, and electronic devices, aiming to increase market share and expanding the range of recycling services, expanding downstream operations, utilizing for mergers and acquisitions involving downstream companies engaged in household appliance dismantling, plastic granulation, lithium battery recycling and dismantling, among other related companies, enhancing our research and development systems, increasing employees' compensation and benefit packages, recruiting high-level talent, and investing in vocational training and for general working capital purposes. We will not receive any proceeds from the sale of the Shareholder ADSs by the Selling Shareholder. See "Use of Proceeds" for more information. |

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<sup>(1)</sup> The number of ADSs to be outstanding immediately after this offering does not include an aggregate of 1,500,000 Shareholder ADSs.

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| | |
|:---|:---|
| Underwriter Purchase Option | The registration statement of which this prospectus is a part also registers an underwriter purchase option (the "UPO") to purchase up to 5% of the ADSs sold in this offering of Public Offering ADSs to the Representative of the underwriters, as a portion of the underwriting compensation payable in connection with this offering and the Class A ordinary shares underlying the ADSs issuable upon exercise of the UPO. The UPO will be exercisable at any time, and from time to time, in whole or in part, during the four-and-a-half-year period commencing six (6) months following the effective date of the registration statement of which this prospectus is a part at an exercise price of 110% of the public offering price of the ADSs. Please see "Underwriting — Underwriter Purchase Option" for a description of the UPO. |
| Lock-up | We have agreed with the underwriters not to sell, transfer or otherwise dispose of any of our securities, or ADSs representing our securities, for a period ending three months after the commencement of sales of the offering. Furthermore, each of our directors, executive officers and shareholders of our ordinary shares, except pursuant to the Resale Prospectus, issued and outstanding immediately prior to the consummation of this offering has also entered into a similar lock-up agreement for a period of six months from the date of this prospectus with respect to our securities and ADSs representing our securities. These lock-up restrictions described above shall not apply to (a) transactions relating to lock-up securities acquired in open market transactions after the completion of the public offering; (b) transfers of lock-up securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of a family member; (c) transfers of lock-up securities to a charity or educational institution; or (d) if the lock-up party, directly or indirectly, controls a corporation, partnership, limited liability company or other business entity, any transfers of lock-up securities to any shareholder, partner or member of, or owner of similar equity interests in, the lock-up party, as the case may be; provided that in the case of any transfer pursuant to (b), (c) or (d) above, it shall be a condition to any such transfer that (i) the transferee/donee agrees to be bound by the terms of the lock-up agreement entered into by and between the Company or each of our directors, executive officers, and shareholders and the underwriters. See "Shares Eligible for Future Sale" and "Underwriting" for more information. |
| Controlled Company | Following this offering we will be a "controlled company" within the meaning of the corporate governance rules of Nasdaq. See "Risk Factors — Risks Related to the ADSs and this Offering." |
| Listing | We intend to apply to have the ADSs listed on the Nasdaq Global Market under the symbol "CZTI." This offering is contingent on the listing of the ADSs on the Nasdaq Global Market. At this time, Nasdaq has not yet approved our application to list the ADSs. There is no assurance that such application will be approved, and if our application is not approved by Nasdaq, this offering may not be completed. |
| Proposed Nasdaq symbol | "CZTI" |
| Depositary | The Bank of New York Mellon. |
| Over-allotment | We have granted the underwriters an option for a period of 45 days after the closing of this offering to purchase up to 15% of the total number of our Public Offering ADSs (excluding shares subject to this option), solely for the purpose of covering overallotments, at the initial public offering price less the underwriting discount. We may issue up to 500,250 ADSs pursuant to the underwriters' over-allotment option. |
| Risk Factors | See "Risk Factors" and other information included in this prospectus for a discussion of risks you should carefully consider before investing in the ADSs. |

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The number of ordinary shares to be outstanding after this offering is based on (i) 125,000,610 Class A ordinary shares and (ii) 34,000,000 Class B ordinary shares outstanding as of the date of this prospectus.

**SUMMARY CONSOLIDATED FINANCIAL DATA**

The following summary consolidated statements of operations for the years ended December 31, 2024 and 2025, summary consolidated balance sheets data as of December 31, 2024 and 2025 and summary consolidated cash flows data for the years ended December 31, 2024 and 2025 have been derived from our consolidated financial statements included elsewhere in this prospectus.

Our consolidated financial statements are prepared and presented in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. Our historical results are not necessarily indicative of results expected for future periods. You should read this Summary Consolidated Financial Data section together with our combined and consolidated financial statements and the related notes and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus.

The following table presents our summary consolidated statements of operations data for the periods indicated:

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| | | | |
|:---|:---|:---|:---|
|  | **For the Years ended December 31,** | **For the Years ended December 31,** | **For the Years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Product revenues - third parties | 4340034 | 5565708 | 795886 |
| Product revenues- related parties | 134095 | 192820 | 27573 |
| Net service revenues - third parties | 9283 | 19380 | 2771 |
| Net service revenues- a related party | 226 | - | - |
| **Total revenues** | **4483638** | **5777908** | **826230** |
| **Operating expenses:** |  |  |  |
| Merchandise costs | 4402773 | 5716214 | 817408 |
| Fulfillment expenses | 54341 | 17801 | 2546 |
| Selling expenses | 3224 | 9963 | 1425 |
| General and administrative expenses | 27081 | 28692 | 4103 |
| Research and development expense | 1806 | 1914 | 274 |
| Impairment of long term investment | 5250 |  |  |
| Provision for credit loss | 4951 | 554 | 79 |
| **Total operating expenses** | **4499426** | **5775138** | **825835** |
| **(Loss) income from operations** | **(15788)** | **2770** | **395** |
| Interest expenses | (7632) | (11007) | (1574) |
| Interest incomes | 787 | 424 | 61 |
| Share of losses in equity method investments | (2216) | (1767) | (253) |
| Gain from disposal of subsidiaries | 61 | 233 | 33 |
| Bargain purchase gain | 863 |  |  |
| Other income (loss), net | 3410 | (230) | (30) |
| **Total other expenses, net** | **(4727)** | **(12347)** | **(1763)** |
| **Net loss before income taxes** | **(20515)** | **(9577)** | **(1368)** |
| Provision for income taxes | 4239 | 6046 | 865 |
| **Net loss** | **(24754)** | **(15623)** | **(2233)** |

---

The following table presents our summary consolidated statements of balance sheet data as of December 31, 2024 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Cash and cash equivalent | 45982 | 13899 | 1987 |
| Restricted cash | 200 | 33200 | 4748 |
| **Total current assets** | **1158368** | **511083** | **73081** |
| Total non-current assets | 86721 | 81461 | 11649 |
| **Total assets** | **1245089** | **592544** | **84730** |
| Total current liabilities | 1127814 | 510634 | 73017 |
| Total non-current liabilities | 115301 | 95559 | 13664 |
| **Total liabilities** | **1243115** | **606193** | **86681** |
| Total equity | 1974 | (13649) | (1951) |
| **Total liabilities and equity** | **1245089** | **592544** | **84730** |

---

The following table presents our summary consolidated statements of cash flow data for the periods indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years ended December 31,** | **For the Years ended December 31,** | **For the Years ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
|  | **(in thousands)** | **(in thousands)** | **(in thousands)** |
| Net cash used in operating activities | (68418) | (68943) | (9858) |
| Net cash used in investing activities | (3503) | (17578) | (2514) |
| Net cash provided by financing activities | 109199 | 87438 | 12503 |

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**RISK FACTORS**

*Investment in the ADSs involves a high degree of risk. Before deciding whether to invest in the ADSs, you should consider carefully the risks described below, together with all the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. If any of these risks occurs, our business, financial condition, results of operations, or cash flow could be materially and adversely affected, which could cause the trading price of the ADSs to decline, resulting in a loss of all or part of your investment. The risks described below and discussed in other parts of this prospectus are not the only ones that we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business. You should only consider investing in the ADSs if you can bear the risk of loss of your entire investment. Certain statements in "Risk Factors" are forward-looking statements. See "Special Note Regarding Forward-Looking Statements" elsewhere in this prospectus.*

**Risks Related to Our Business and Industry**

***We face challenges and potential setbacks due to the rapidly evolving renewable resources recycling industry in China, including limited systems, absence of standards, and regulatory uncertainties, which may hinder the anticipated success and acceptance of our business model.***

We face risks in our industry as it undergoes rapid transformation, with potential challenges in achieving the anticipated success and widespread adoption of our business model. The renewable resources recycling sector in China is still in its early stage and experiencing significant evolution, posing limitations in the availability of established systems, widespread recognition, and acceptance for conducting transactions and providing services. Furthermore, the absence of industry-wide pricing standards and regulatory frameworks adds to the uncertainties we encounter. Since the commencement of our business operations in 2016, we have also been trying different business strategies to explore the most effective business model for our operations. We believe that our business model is novel, and we have a limited operating history on which investors can evaluate our business and prospects. There is no guarantee that our business model will be successful or achieve wide acceptance as quickly, or in a magnitude, as we anticipate. As there are few comparable companies and established players in the market, we have to explore different business practices, formulate pricing strategies, set up procedures and standards, and learn from our own experience. Given that we have a limited history operating our O2O systems, we cannot assure you that we will be able to successfully anticipate and respond to industry trends and customer behavior, especially as we continue to attempt to broaden our customer base, expand the scope of our recycling services to cover a wider range of renewable resources categories, and expand our business scope to include downstream disposal and dismantling segments. A potential investor in the ADSs should carefully consider the risks and difficulties frequently encountered by companies in an early stage of development, as well as the risks we face due to our participation in a new and rapidly evolving industry, and our attempt to execute on a new and untested business model. Our business model may not be successful, or we may not successfully overcome the risks associated with this business model.

***We risk impeding development and growth if we cannot meet talent recruitment needs for technological development, expanding recycling categories, including downstream businesses, and business expansion.***

We risk impeding our development and growth if we fail to meet the talent recruitment needs resulting from the further development of our online systems technology, expanding our renewable resources recycling categories, expanding our business scope to include downstream disposal and dismantling segments, and general business expansion. The comprehensive skill requirements for our employees impose new recruitment demands on our management and business teams. Inability to fulfill these requirements may impede our progress, despite talent reserve and development plans through internal training and external recruitment.

***We risk misalignment between technological development and business plans, potentially hindering our current growth and strategies if enhanced compatibility and functionality in digital systems, IT capabilities, traceability management, and financial inventory systems are not achieved.***

We face the risk of misalignment between our technological development and the Company's business plans. To support our current growth and business strategies, we require enhanced compatibility and functionality in our digital systems, IT capabilities, traceability management technology, and inventory management systems. If we are unable to address this risk through internal technical training, system upgrades, network system investments, and the recruitment of skilled technology professionals, our business, financial condition, and results of operations could be materially and adversely affected.

***Our ability to remain competitive is contingent upon continuously enhancing our technologies and systems to keep up with evolving market demands, technological advancements, and industry standards, failure of which may have adverse effects on our business.***

To improve our competitiveness, it is crucial for us to continually enhance and improve the functionality, responsiveness, and features of our mobile apps, websites, software, and business operation systems. The rapidly evolving nature of the industry in which we operate, coupled with changing customer preferences and emerging technologies, poses the risk of rendering our existing technologies and systems obsolete. Our ability to identify, develop, acquire, or license innovative technologies relevant to our business and effectively respond to technological advancements and industry standards in a timely and cost-effective manner will significantly impact our success. However, the development and implementation of new technologies involve inherent technical and business risks, and there is no guarantee that we will successfully develop or utilize new technologies, recover associated costs, or adapt our systems to meet evolving customer needs and industry standards. Failure to develop technologies or adapt to market conditions could have a material and adverse effect on our business, financial condition, and results of operations.

***We face risks in securing necessary funds for operations and expansion due to limited financing channels as a non-public company, which may hinder our ability to support future growth and business plans.***

As a non-public company, we encounter risks due to limited financing channels compared to publicly traded entities, which may hinder our ability to secure necessary funds for operations and expansion. While pursuing an IPO fundraising plan, we will also explore alternative financing methods such as debt financing to address our working capital needs. It is crucial to recognize that a funding crisis could adversely affect our business plans and hinder our future development.

***We face market risks in implementing our business strategy, including renewable resources recycling category expansion and downstream operations expansion. If we are unable to carefully evaluate our investment, market risks, and optimization of production and operational management while expanding, our business, financial condition and results of operations may be materially and adversely affected.***

In implementing our business strategy involving an O2O system, which also includes renewable resources recycling category expansion and the expansion into downstream dismantling and disposal operations of recycled materials, we face the inherent market risks of venturing into new market domains during industry expansion as we engage in diverse sectors.

While expanding, if we are unable to maintain our existing customer base and attract new customers, we risk adverse impacts on our business, financial condition, and operational results. The success of our expansion efforts, including online and offline channels and collaborations with third-party partners, is not guaranteed. Factors such as the early stage of development in the renewable resources recycling industry, consumer preferences, and competition from rival systems, present challenges in effectively growing and retaining our customer base. Lower transaction volumes could negatively affect our reputation and hinder customer attraction and retention. Failure to sustain and increase positive awareness of our system and services further heightens the risk, potentially impacting our business, growth prospects, and financial condition.

***If we are unable to attract and engage consumers, third-party merchants, and other participants in the renewable resources recycling value chain, while delivering a superior experience, we risk adverse impacts on our business, financial condition, operational results, and reputation.***

Our business and reputation may face adverse impact if we are unable to attract and engage consumers, third-party merchants, and other participants in the waste household appliance, waste metallic resources, and other renewable resources recycling value chain, while delivering a superior experience to them. The success of our business relies on various factors, including timely expansion into new recycling categories and value-added services, maintaining reliability in our inspection, grading, and pricing processes, delivering quality products that meet expectations, effective management of online systems, offering competitive prices via our offline systems, fostering partnerships, continuous innovation and enhancement of our system, improving operational efficiency, customer experience, and offline networks, and leveraging technology and data for service improvement. As our business evolves, we cannot guarantee uninterrupted provision of a superior experience, and failure to do so may have material and adverse effects on our financial condition, business, and operational result.

The renewable resources recycling industry in China is still in its early stages, and consumer preferences may hinder their willingness to trade-in, recycle, or purchase waste household appliances, waste metallic resources, and other renewable resources. Competition from rival systems offering more appealing services and prices could lead to customer attrition and hinder customer base growth. Additionally, negative public perception, even if based on isolated incidents or inaccurate information, regarding the authenticity or quality of used electronics sold on our system could damage our reputation and impede customer attraction and retention. Maintaining and enhancing positive awareness of our system and services is vital for sustaining and expanding the customer base. Failure to achieve this could have material and adverse impacts on our business, growth prospects, operational results, and financial condition.

***The potential deterioration of our relationships with business partners in the renewable resources recycling value chain poses a risk of adverse effects on our business prospects and operations.***

We rely on our business partners in the renewable resources recycling value chain, such as household waste and consumer electronics sales businesses like Suning and JD Group, registered sales personnel, recycling personnel, recycling stations, transit yards, sorting centers, and customers such as downstream dismantling and disposal businesses and industrial companies to expand our customer base and increase the supply of renewable resources. These partnerships have been beneficial to our business, and we anticipate continued reliance on them in the foreseeable future. However, failure to maintain cooperative relationships with any of these partners could make it challenging to find suitable alternatives, divert management attention, and adversely impact our daily operations. While we have also engaged in direct sales and other distribution channels from our online system, we cannot guarantee the future maintenance of relationships with our major business partners. There is a possibility that we may not be able to successfully extend or renew our existing collaboration arrangements on reasonable terms or at all, leading to expiration or early termination. Additionally, inadvertent breaches of provisions by us, our employees, or our partners may result in liabilities under these agreements, and unforeseen disputes could arise. Failure to resolve disputes may hinder our ability to continue cooperation. As a result, our system's transaction volume, operational results, and financial condition could be materially and adversely affected.

***If we are unable to manage our growth or execute our strategies effectively, our business and prospects may be materially and adversely affected.***

While our business has demonstrated consistent growth in recent years, there are inherent risks associated with our expansion plans. Although we anticipate continued revenue increase and aim to broaden our scope beyond waste household appliance and waste metallic resource categories, as well as improve our downstream product service lines, there is no guarantee that we will effectively manage our growth or successfully implement new technologies, systems, procedures, and control measures. Moreover, the outcomes of our new business initiatives cannot be assured. If we encounter challenges in managing our growth or executing our strategies proficiently, our expansion efforts may not yield the desired results, potentially having a material and adverse impact on our business and prospects. If we are not able to manage our growth or execute our strategies effectively, our expansion may not be successful, and our business and prospects may be materially and adversely affected.

***The growth and profitability of our business depend on the level of consumer demand and discretionary spending. A severe or prolonged economic downturn in China or around the world could materially and adversely affect consumer discretionary spending and therefore adversely affect our business, financial condition and results of operations.***

The success of our business depends, to a significant extent, on the level of consumer demand and discretionary spending in China. Several factors beyond our control may affect the level of consumer demand and discretionary spending on merchandise that we offer, including, among other things:

● general economic and industry conditions;

● disposable income of consumers;

● discounts, promotions and merchandise offered by our competitors;

● negative reports and publicity about the waste or pre-owned household appliances and metallic resources transactions and services industry;

● outbreak of viruses or widespread illness, including COVID-19 caused by the novel coronavirus;

● unemployment levels;

● minimum wages and debt levels of consumers;

● access to consumption loans by consumers;

● consumer confidence in future economic conditions;

● fluctuations in the financial markets; and

● natural disasters, war, terrorism and other hostilities.

Reduced consumer confidence and spending cutbacks may result in reduced demand for renewable resources. Reduced demand also may require increased selling and promotional expenses. Adverse economic conditions and any related decrease in consumer demand for renewable resources could have a material adverse effect on our business, financial condition and results of operations. For example, the COVID-19 pandemic has reduced the number of trips consumers make to brick-and-mortar stores, including offline used household appliance stores. The COVID-19 pandemic has also resulted in a severe and negative impact on the Chinese and the global economy. Negative economic conditions related to this outbreak may limit consumer confidence and the amount of disposable income available to consumers, which may impact our consumer demand. Whether the pandemic will lead to a prolonged downturn in the economy is still unknown. If this outbreak persists, commercial activities throughout the world could be curtailed with decreased consumer spending, business disruptions, interrupted supply chains, and difficulties in travel. Our business has been adversely affected by the outbreak of COVID-19. The extent to which COVID-19 impacts our results will depend on future developments, which are highly uncertain and cannot be predicted. Even before the outbreak of COVID-19, the global macroeconomic environment was facing numerous challenges. The growth rate of the Chinese economy has been slowing down. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies which had been adopted by the central banks and financial authorities of some of the world's leading economies, including the United States and China, even before 2020. Unrest, terrorist threats, war in the Ukraine and the potential for war elsewhere may increase market volatility across the globe. There have also been concerns about the relationship between China and other countries, including but not limited to the surrounding Asian countries, which may potentially have economic impact. In particular, there is significant uncertainty about the future relationship between the United States and China with respect to trade policies, treaties, government regulations and tariffs. Economic conditions in China are sensitive to global economic conditions, as well as changes in domestic economic and political policies and the expected or perceived overall economic growth rate in China. Any severe or prolonged slowdown in the global or Chinese economy may materially and adversely affect our business, results of operations and financial condition.

In addition, many of the factors identified above also affect commodity rates, transportation costs, interest rates, costs of labor, insurance and healthcare, lease costs, measures that create barriers to or increase the costs associated with international trade, changes in other laws and regulations and other economic factors, all of which may impact our cost of sales, our selling and distribution expenses, and general and administrative expenses, which could have a material adverse effect on our business, financial condition and results of operations.

***We have negative net cash flows from operating activities, which may continue in the future.***

We have experienced negative net cash flows from operating activities in 2024 and 2025. This trend of net losses and negative net cash flows raises concerns about our financial performance. Moving forward, there may be risk of incurring substantial losses and negative net cash flows from our operations due to factors such as declining demand for renewable resources, slower-than-expected growth, increasing competition, deteriorate of our business partnerships, changes of policies and other risks discussed in detail. These circumstances may lead to unforeseen expenses, challenges in generating revenue, and delays in achieving positive net cash flows. Moreover, reducing costs and expenses in proportion to declining revenue may be difficult, given the presence of fixed expenses, and limiting costs could hinder our ability to attract customers and third-party merchants, impacting revenue growth.

***The differences between our merchandise costs and sales of renewable resources and the fees we charge related to services on our online system may fluctuate or decline in the future. Any material decrease in such price differences or fees would harm our business, financial condition and results of operations.***

Our income generation is primarily derived from the differences between the merchandise costs and sales of renewable resources, primarily household waste and ferrous metals, as well as fees and commissions charged for transactions and services provided on our online system. The maintenance and growth of our revenues are contingent upon several key factors, including our ability to deliver superior services, attract consumers, third-party merchants, and participants in the renewable resources recycling value chain.

Maximizing the price differences between acquisition and sale, expanding our sources of supply for renewable resources, reaching end-consumers effectively, and navigating fluctuations in macroeconomic changes are also critical to maintaining revenue growth. Failure to address these risks and uncertainties adequately and promptly would have a material and adverse impact on our business and operational results.

***The risk of mishandling personal information, lack of confidence in privacy and security, and potential data breaches could deter users, harm our reputation, result in legal and regulatory risks, and adversely impact our business operations.***

The potential concerns regarding mishandling personal and sensitive information stored in our online systems, as well as the overall lack of confidence in privacy and security associated with apps and software programs, pose a risk of deterring current and potential users and third-party merchants from utilizing our services, damaging our reputation, resulting in customer loss, and adversely impacting our operating results. Furthermore, our collection, storage, and use of personal information for improved services entail obligations to comply with data protection laws, regulations, and privacy policies. Any failure or perceived failure to comply may lead to customer complaints, inquiries, legal actions, negative publicity, reputational damage, loss of users, customers, or third-party merchants, and adverse effects on our business. Despite our efforts to limit third-party access and invest in security measures, any system failure or security compromise leading to unauthorized access or data breaches may hinder product acquisition and sales, harm our reputation and brand, and negatively affect our business. Although we take precautions, the potential hacking and misuse of data by third parties remains a significant risk, exposing us to legal, regulatory, and business risks.

The PRC regulatory and enforcement regime on data security and data protection is evolving. On May 28, 2020, the National People's Congress of the PRC enacted the *Civil Code of the People's Republic of China*, or PRC Civil Code, which came into effect on January 1, 2021. The PRC Civil Code, in addition to the systematic codification of provisions from existing legislations, establishes general principles of privacy right and the protection of personal information, and provides a clearer legal basis for civil actions against privacy and personal information related infringements and breaches. Other than the PRC Civil Code, more specific provisions in relation to data privacy and cybersecurity are mainly set out in legislation including the *PRC Cyber Security Law* (effective from June 1, 2017), the *PRC Data Security Law* (effective from September 1, 2021), the *PRC Personal Information Protection Law* (effective from November 1, 2021), etc. The PRC governmental authorities have enacted or are in the process of formulating a series of regulations and policies to enhance the protection of cybersecurity, data security and personal information. See "Regulations — Regulations Relating to Cybersecurity, Data Security, Personal Information Protection and National Security" for more details.

Information and data privacy legislation has also been evolving in other jurisdictions. For example, in the European Union, or EU, the General Data Protection Regulation, or GDPR, which came into effect on May 25, 2018, presents increased challenges and risks in relation to policies and procedures relating to data collection, storage, transfer, disclosure, protection and privacy, and will impose penalties for non-compliance, including for example, penalties calculated as a percentage of global revenue under the GDPR. In the United States, various federal, state and foreign legislative and regulatory bodies, or self-regulatory organizations, may expand current laws or regulations, enact new laws or regulations or issue revised rules or guidance regarding privacy, data protection, and information security. For example, California recently enacted the California Consumer Privacy Act, which, among other things, requires new disclosures to California consumers and affords such consumers new abilities to opt out of certain sales of personal information. Outside of the European Union and the U.S., many countries and territories have laws, regulations, or other requirements relating to privacy, data protection, information security, and consumer protection, and new countries and territories are adopting such legislation or other obligations with increasing frequency. New laws or regulations concerning data protection, or the interpretation and application of existing consumer and data protection laws or regulations, which are often uncertain and in flux, may be inconsistent with our practices. If so, in addition to the possibility of fines, this could result in an order requiring that we change our practices, which could have an adverse effect on our business and operating results. Complying with new laws and regulations could cause us to incur substantial costs or require us to change our business practices in a manner materially adverse to our business. If we or those with whom we share information fail to comply with these laws and regulations or experience a data security breach, our reputation could be damaged, and we could be subject to additional litigation and regulatory risks.

***Our expansion into new renewable resources recycling categories and the offering of new services may expose us to new challenges and more risks.***

Unlocking new opportunities through our expansion into diverse recycling categories and innovative services comes with inherent risks and challenges. As we invest heavily in expanding our business to expand renewable resources recycling categories and increasing the downstream service line such as dismantling and disposal, we face the challenge of managing risks associated with limited familiarity and relevant customer data, potentially affecting our ability to anticipate demand and control quality. Additionally, potential product liability claims and intensified competition in these new categories may require aggressive pricing and increased investments, impacting our profitability. While we strive to achieve profitability and recoup our investments, effective risk management strategies are crucial to mitigate uncertainties and ensure successful outcomes in these new ventures. We may face more challenges and regulatory risks that we are unprepared for, and we may get into fierce competitions or even intellectual property litigations against competitors which result in negative impact on our business.

***Any harm to our brands or reputation may materially and adversely affect our business and results of operations.***

We consider the recognition and reputation of our brands, such as ABGreen and Boolv Shoushou, among recycling personnel, consumers, and third-party merchants to be crucial to our business success. Various factors, both within and beyond our control, influence the maintenance and enhancement of our brand, including providing superior experiences to consumers and merchants, maintaining product quality and reliability, offering competitive prices, delivering satisfactory services, supporting third-party merchants, conducting effective marketing and brand promotion, and managing negative publicity.

We face the risk that third-party merchants may struggle to meet our requirements or provide reliable information, potentially exposing us to legal liabilities and undermining customer trust in our system, damaging our reputation. Negative news or media coverage, regardless of its validity, has the potential to harm our reputation and erode customer trust. Failure to effectively address misinformation or negative information could have significant adverse effects on our business, financial condition, and operations.

***Misconduct or illegal actions of our third-party merchants or other business partners in the renewable resources recycling value chain could materially and adversely affect our reputation, business, financial condition, and results of operations.***

We work with third parties in the renewable resources recycling value chain, such as third-party merchants doing transactions on our system and third-party recycling stations, transit yards, and sorting centers, and we are not able to fully control their actions. If these third parties fail to perform as we expect, experience difficulty in meeting our requirements or standards, fail to conduct their business ethically, fail to provide satisfactory services to suppliers, consumers or third-party merchants, receive negative press coverage, violate applicable laws or regulations, breach agreements with us, or if the agreements we have entered into with the third parties are terminated or not renewed, it could damage our business and reputation. In addition, if such third-party providers cease operations, temporarily or permanently, face financial distress or other business disruptions, increase their fees, or if our relationships with them deteriorate, we will suffer from increased costs, be involved in legal or administrative proceedings with or against our third-party service providers and experience delays in providing consumers and third-party merchants with similar services until we find or develop a suitable alternative. Furthermore, if we are unsuccessful in identifying high-quality partners, or establishing cost-effective relationships with them, or effectively managing these relationships, our business and results of operations would be materially and adversely affected.

***We may be held liable for information or content displayed on or linked to our system, which may materially and adversely affect our reputation, business, and results of operations.***

We may be held liable for inaccurate or incomplete information that is available through or linked to our system. The information we collect and use for the recycling of renewable resources may be inaccurate or incomplete due to errors on the part of our employees or third-party information providers, or frauds. Failure to ensure the accuracy and integrity of such information, regardless of its source, could undermine user and customer trust, result in further administrative penalties, and adversely affect our reputation, business, and results of operations.

***We may not be able to successfully halt the operations of websites that aggregate our data as well as data from other companies, or "copycat" websites or apps that misappropriate our data.***

As of the date of this prospectus, we are not aware of any copycat websites or apps that attempt to cause confusion or diversion of traffic from us. We may become a target to such attacks or misappropriations in the future because of our brand recognition in the renewable resources recycling industry in China. We cannot assure you that we will be able to successfully halt the operations of these websites or third parties. Failure to do so could damage our reputation, divert customer traffic or supply of renewable resources from us and thus maternally and negatively affect our business operations, results of operations and financial condition.

***We rely on third-party payment service providers to conduct payment processing and services on our online systems. If those services are limited, restricted, curtailed or degraded in any way or become unavailable to us or our users for any reason, our business may be materially and adversely affected.***

We and our users make payments through a variety of methods, including payment on our online systems or through our third-party online payment service partners, such as WeChat Payment and Alipay. These services are critical to our system. We rely on the convenience and ease of use that these service providers provide for our users. If the quality, utility, convenience, or attractiveness of the services of these service providers decline for any reason, the attractiveness of our system could be materially and adversely affected.

Business involving online payment services is exposed to various risks that could adversely affect third-party online payment service providers' ability to offer payment processing and escrow services, including user dissatisfaction, increased competition, changes in payment system rules, breaches of personal information, service outages or failures to scale, rising costs, and the mismanagement or loss of funds. Additionally, restrictions imposed by commercial banks and challenges in maintaining relationships with payment service providers could further impact on our system and business operation.

***We have limited insurance coverage, which could expose us to costs and business disruption.***

We provide social security insurance including pension insurance, unemployment insurance, work-related injury insurance, maternity insurance and medical insurance for our employees. However, insurance companies in China currently offer limited business-related insurance products. Consistent with customary industry practice in China, we do not maintain business interruption or product transportation insurance, nor do we maintain key-man insurance. We cannot assure you that our insurance coverage is sufficient to prevent us from any loss or that we will be able to successfully claim our losses under our current insurance policy on a timely basis, or at all. If we incur any loss that is not covered by our insurance policies, or the compensated amount is less than our actual loss, our business, financial condition and results of operations could be materially and adversely affected.

***If we fail to manage our inventory effectively, our results of operations, financial condition and liquidity may be materially and adversely affected.***

We depend on our demand forecasts for various kinds of renewable resources to manage our inventory. Demand for our renewable resources, however, can change between the time inventory is ordered and the date by which they are sold. Demand may be affected by seasonality, changes in product cycles and pricing, and changes in consumer spending patterns, among other factors, and consumers and third-party merchants may not order renewable resources in the quantities that we expect.

Our net inventories were approximately RMB 35.0 million and RMB 7.1 million as of December 31, 2024 and 2025, respectively. We may include more household waste and other types of renewable resources in our inventory in the future, which will make it more challenging for us to manage our inventory effectively and we will need to better coordinate with our suppliers, such as recycling stations, transit yards, and sorting centers.

If we fail to manage our inventory effectively, we may be subject to a heightened risk of inventory obsolescence, a decline in inventory values, and inventory write-downs or write-offs. In addition, we may have to lower sale prices to reduce inventory level, which may lead to lower income from operations. High inventory levels may also require us to commit substantial capital resources, preventing us from using that capital for other important purposes. Any of the above may materially and adversely affect our results of operations and financial condition.

On the other hand, if we underestimate demand for certain renewable resources, or if we are unable to obtain enough renewable resources in a timely manner, we may experience inventory shortages, which might result in missed sales, diminished brand loyalty and lost revenues, any of which could harm our business and reputation.

***Our business, results of operations and reputation could be negatively affected by services provided by third-party cloud service providers.***

We use third-party cloud service providers to provide us with cloud services to support our business operations. With the expansion of our business, we may be required to upgrade our technology and infrastructure or those of cloud service providers to keep up with the increasing traffic on our online system. If the services provided are unable to meet our demand, or are disrupted, restricted, curtailed or degraded in any way or become unavailable to us, our business may be materially and adversely affected. In addition, we cannot assure you that we will be able to maintain amicable relationships with our cloud service providers. Our cloud service providers could choose to terminate their relationships with us or propose terms that we cannot accept. If we have to engage other cloud service providers and have to migrate our business operation data to new service providers, we cannot guarantee a smooth transition. We may suffer from unexpected incidents in the transition such as data loss, service interruptions, or loss of certain functionalities. As a result, we may have to incur extra expenses to mitigate losses incurred due to these incidents, which could be substantial. Most importantly, we may experience business interruptions due to these unexpected incidents, which would adversely affect our business operations and could also materially and adversely affect our results of operations. Besides, we have no control over the costs of the services provided by cloud service providers. If the prices we pay for those services rise, our results of operations may be materially and adversely affected.

***Our success depends on the continuing and collaborative efforts of our management team, and our business may be severely disrupted if we lose their services.***

Our success heavily depends upon the continued services of our management. We rely on the expertise and experience of Mr. Baitong Tang, our chairman and chief executive officer, and other executive officers. If one or more members of our senior management are unable or unwilling to continue in their present positions, we might not be able to replace them easily or at all, and our business, financial condition and results of operations may be materially and adversely affected. If any of our senior management joins a competitor or forms a competing business, we may lose consumers, third-party merchants, suppliers, know-how, key professionals, and staff members. Our senior management has entered into employment agreements and confidentiality and non-competition agreements with us. However, if any dispute arises between our officers and us, we may have to incur substantial costs and expenses to enforce such agreements in China or we may be unable to enforce them at all. In addition, we do not have key-man insurance for any of our executive officers or other key personnel. Events or activities attributed to our executive officers or other key personnel, and related publicity, whether justified, may affect their ability or willingness to continue to serve our Company or dedicate their full time and efforts to our Company and negatively affect our brand and reputation, resulting in an adverse effect on our business, operating results and financial condition.

***Any failure to obtain or renew certain filings, approvals, licenses, permits and certificates required for our business operations may materially and adversely affect our business, financial condition and results of operations.***

In accordance with the relevant PRC laws and regulations, we are required to maintain various approvals, licenses, permits and filings to operate our business. The obtaining of these approvals, licenses, permits and filings are subject to satisfactory compliance with, among other things, the applicable laws and regulations.

Our operations in China are governed by PRC laws and regulations. After consulting with our PRC legal counsel, Zhong Lun Law Firm, as of the date of this prospectus, based on PRC laws and regulations currently in force, we believe that our PRC subsidiaries have received the requisite licenses and permits from the relevant PRC government authorities that are necessary for the businesses currently conducted in China, i.e., the business license of each of our PRC subsidiaries from competent PRC authorities. We and our PRC subsidiaries have not been denied for any permission or approval by any PRC authority with respect to the operation of our business as of the date of this prospectus. Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd. was disposed on May 28, 2025.

However, there can be no assurance that the relevant PRC governmental authorities would reach the same conclusion as us or would not promulgate new rules or new interpretation of current rules (with retrospective effect) to require us to obtain additional filings, approvals, license, permits and certificates in the future. If we (i) do not receive or maintain our requisite permissions or approvals, (ii) inadvertently concluded that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and we are required to obtain such permissions or approvals in the future, these regulatory authorities may impose penalties, including fines, suspension of business and confiscation of illegal gains, or take other actions that could have a material adverse effect on our business, financial condition, results of operations.

***Our Operating Entities are subject to risks relating to our leased property.***

The leasehold interest of our Operating Entities in the real property used for its workspace and warehouse have not been registered with the relevant PRC government authorities, as required by PRC law, which may expose our Operating Entities to potential fines if they fail to remediate such lapse after receiving notice from the relevant PRC government authorities.

Failure to complete lease registration for a lease agreement typically does not affect the legal effectiveness of such agreement according to PRC law, but relevant real estate administrative authorities may require the parties to the lease agreement to complete lease registration within a prescribed period of time, and the failure to do so may result in fines from RMB 1,000 to RMB 10,000 for each of such lease agreement.

As of the date of this prospectus, we are not aware of any claim or challenge brought by any third parties concerning the use of some of our Operating Entities' leased property without obtaining proper ownership proof. If Operating Entities' lease agreements are claimed as null and void by third parties who are the real owners of such leased real property, Operating Entities could be required to vacate the property, in such event, Operating Entities could only initiate the claim against the lessors under relevant lease agreements for indemnities for the breach of the relevant leasing agreement, if applicable. We cannot assure you that suitable alternative locations are readily available on commercially reasonable terms, or at all, and if Operating Entities are unable to relocate its facilities, equipment, offices and employees in a timely manner, Operating Entities' operations may be interrupted.

***Any failure or perceived failure by us to comply with anti-monopoly laws and regulations may result in governmental investigations or enforcement actions, litigation or claims against us and could have an adverse effect on our business, financial condition and results of operations.***

We have invested in or acquired certain assets or equity interests in other companies. We have also been invested in by certain investors and entered into business cooperation with certain investors. In the future, we may continue to conduct acquisitions or investment transactions. By conducting these transactions, we are subject to risks related to compliance with relevant anti-monopoly laws and regulations. The PRC Anti-monopoly Law was latest amended on June 24, 2022, and became effective on August 1, 2022. Also, the PRC government authorities have in recent years enacted a series of regulations to strengthen enforcement under the PRC Anti-monopoly Law. See "Regulations — Regulation Relating to Anti-Monopoly" for more details.

There are also uncertainties with respect to the interpretation of relevant anti-monopoly laws and regulations. Certain transactions may not trigger reporting requirements prima facie but turn out to be subject to relevant reporting obligations. Enforcement agencies also have a wide discretion in their enforcement actions. Not only ongoing transactions, but also historical transactions are subject to their enforcement review. We cannot assure you that we will not be subject to any enforcement actions in our future acquisition transactions, nor can we guarantee that our historical acquisition transactions or our shareholders' investments in our company are in full compliance with relevant anti-monopoly laws and regulations in all respects. If any non-compliance is raised by relevant authorities and determined against us or our counterparties in relevant transactions, we may be subject to fines and other penalties and, in extreme cases, completed historical transactions may have to be rescinded to return to the pre-transaction status, which could have a material and adverse effect on our business, financial condition and results of operations.

***Our processing and storage of data exposes us to the risk of cyber-attacks and unauthorized access, which could result in damage to our systems, disclosure of sensitive information, and negative impacts on our business operations, liability, and reputation.***

As part of our regular operations, we process and store data, making us and our third-party service providers potential targets for cyber-attacks, computer viruses, and unauthorized access. Breaches in our security measures could result in hardware and software damage, disruptions to our business activities, unauthorized disclosure of sensitive information, and other adverse effects on our operations. Despite our efforts to protect confidential information, evolving techniques used in unauthorized access may pose challenges, and we may be unable to anticipate and prevent such breaches. Any security breach or unauthorized access could lead to data theft, criminal use of information, liability, litigation, and reputational damage. We acknowledge the risks associated with security breaches and unauthorized access, which could harm our relationships with customers and investors and adversely impact our business and operations.

***The performance and reliability of our technology system are crucial for our success and any interruptions or security breaches could reduce sales, customer satisfaction, and harm our reputation. We also need to continuously upgrade and improve our technology, but there are risks and uncertainties associated with these upgrades that could impact our business operations and financial performance.***

The satisfactory performance, reliability, and availability of our technology system are fundamental to our business success as they directly impact our ability to attract and retain customers and third-party merchants, as well as provide quality customer service. Our Boolv Shoushou, Boolv Collect, and Boolv Sorting Center applications and software serve as the primary channel for collecting recycling information and soliciting sales of renewable resources, and our offline recycling sorting stations rely on our proprietary sorting systems and other technology systems.

Any disruptions in our systems, such as telecommunications failures, computer viruses, hacking attempts, or any actions that harm our systems, can lead to the unavailability or slowdown of our mobile apps and programs. This, in turn, can reduce the volume of products collected and sold and diminish the attractiveness of our product offerings. Our servers are also susceptible to various risks, including computer viruses, physical or electronic break-ins, and other disruptions, which can result in system interruptions, website slowdown or unavailability, transaction processing delays or errors, data loss, or hinder our ability to accept and fulfill customer orders.

Additionally, any malfunctions or inefficiencies in our technology system, including disruptions during system upgrades and challenges in integrating new technologies, could result in operational disruptions, slow response times, compromised data transmission, and have a significant adverse impact on our business, financial condition, and results of operations.

***Our business operations depend on the performance and reliability of China's internet infrastructure, and any disruptions or limitations in internet access could have adverse effects on our ability to serve customers and generate revenue.***

The success and continuity of our business operations rely on the performance, reliability, and availability of China's internet infrastructure, as well as the accessibility of bandwidth and servers provided by our service providers. We rely on the Internet to match recycling personnel with renewable resources, recycling stations, and various other functions in our online system, and any disruptions, failures, or limitations in internet access could severely impact our ability to operate and serve our customers. Surges in internet traffic or technical issues could result in service disruptions, reduced demand, lower revenues, increased costs, and negatively affect our overall business, financial condition, and results of operations.

***User growth and activity on mobile devices depends upon effective use of mobile operating systems, networks and standards that we do not control.***

Users and third-party merchants can access our services through our mobile apps and WeChat software program. Our future growth and our results of operations could suffer if we experience difficulties in integrating our mobile apps into mobile devices or if problems arise with our relationships with providers of mobile operating systems or mobile app download stores, if our apps receive unfavorable treatment compared to competing apps on the download stores or platform programs, or if we face increased costs to distribute or have users or third-party merchants use our mobile apps. We are further dependent on the interoperability of our mobile apps with popular mobile operating systems that we do not control, such as iOS and Android, and any changes in such systems that degrade the functionality of our sites or give preferential treatment to competitive products could adversely affect the usage of our sites on mobile devices. In the event that it is more difficult for consumers or third-party merchants to access and use our apps and mini-programs on their mobile devices, or if consumers or third-party merchants choose not to access or to use our apps or mini-programs on their mobile devices or to use mobile products that do not offer access to our sites, our user growth could be harmed and our business, financial condition and operating results may be adversely affected.

***We may not be able to prevent others from unauthorized use of our intellectual property, which could harm our business and competitive position.***

We regard our trademarks, copyrights, patents, domain names, know-how, proprietary technologies, and similar intellectual property as critical to our success, and we rely on a combination of intellectual property laws and contractual arrangements, including confidentiality, invention assignment and non-compete agreements with our employees and others, to protect our proprietary rights. Despite these measures, any of our intellectual property rights could be challenged, invalidated, circumvented or misappropriated, or such intellectual property may not be sufficient to provide us with competitive advantages. In addition, there can be no assurance that our patent applications will be approved, that any issued patents will adequately protect our intellectual property, or that such patents will not be challenged by third parties or found by a judicial authority to be invalid or unenforceable. Further, because of the rapid pace of technological change in our industry, parts of our business rely on technologies developed or licensed by third parties, and we may not be able to obtain or continue to obtain licenses and technologies from these third parties at all or on reasonable terms.

Similar to situations of many other countries, it is often difficult to register, maintain and enforce intellectual property rights in China. Statutory laws and regulations are subject to judicial interpretation and enforcement and may not be applied consistently. Confidentiality, invention assignment, and non-compete agreements may be breached by counterparties, and there may not be adequate remedies available to us for any such breach. Accordingly, we may not be able to effectively protect our intellectual property rights or to enforce our contractual rights in China. Policing any unauthorized use of our intellectual property is difficult and costly and the steps we take may be inadequate to prevent the infringement or misappropriation of our intellectual property. In the event that we resort to litigation to enforce our intellectual property rights, such litigation could result in substantial costs and a diversion of our managerial and financial resources and could put our intellectual property at risk of being invalidated or narrowed in scope. We can provide no assurance that we will prevail in such litigation, and even if we do prevail, we may not obtain a meaningful recovery. In addition, our trade secrets may be leaked or otherwise become available to, or be independently discovered by, our competitors. Any failure in maintaining, protecting or enforcing our intellectual property rights could have a material adverse effect on our business, financial condition and results of operations.

***We may be subject to intellectual property infringement claims, which may be expensive to defend and may disrupt our business and operations.***

We cannot provide any definitive assurance that our operations or any aspects of our business do not or will not infringe upon or otherwise violate the patents, copyrights, or other intellectual property rights held by third parties. Despite our efforts to diligently assess and manage intellectual property risks, we may face legal proceedings and claims in the future relating to the intellectual property rights of others. Furthermore, there may exist third-party intellectual property that is infringed by the products or services offered by us or by third-party merchants on our online and offline systems, or other aspects of our business, including undisclosed patents that our products or business inadvertently infringe upon. It is uncertain whether holders of patents purportedly relevant to some aspect of our technology system or business, if such holders exist, would seek to enforce such patents against us in China, the United States, or other jurisdictions. The application and interpretation of China's patent laws, as well as the procedures and standards for granting patents, are still evolving and uncertain, and there is no guarantee that PRC courts or regulatory authorities would agree with our analysis of patent infringement. If we are found to have violated the intellectual property rights of others, we may be subject to liability for our infringement activities, which could result in financial damages, injunctions prohibiting our use of the intellectual property, or the requirement to pay licensing fees or develop alternative solutions. Moreover, defending against third-party infringement claims, regardless of their merits, may require significant expenses and diversion of management's attention and resources from our core business operations. Successful infringement or licensing claims made against us could have a material disruptive effect on our business and operations by restricting or prohibiting our use of the intellectual property in question. Additionally, our use of open-source software in connection with our products and services exposes us to the risk of claims challenging ownership or alleging noncompliance with open-source license terms. Such claims, if brought against us, could result in legal suits, claiming ownership of software that we believe to be open source or alleging noncompliance with open-source licensing terms. Certain open-source software licenses may require public disclosure of source code and distribution of derivative works on unfavorable terms or at no cost. Compliance with these requirements or payment of damages for breach of contract could be detrimental to our business, financial condition, and operations.

***If we fail to develop and maintain an effective system of internal control over financial reporting, we may be unable to accurately report our financial results or prevent fraud.***

Prior to this offering, we were a private company with limited accounting personnel and other resources with which to address our internal control over financial reporting. Our independent registered public accounting firm has not conducted an audit of our internal control over financial reporting. However, in preparing our consolidated financial statements for the years ended December 31, 2024 and 2025, we and our independent registered public accounting firm identified material weaknesses in our internal control over financial reporting. As defined in the standards established by the PCAOB, a "material weakness" is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis. The material weakness identified are related to (i) our company's lacks of sufficient competent financial reporting and accounting personnel with appropriate understanding of U.S. GAAP and financial reporting requirements set forth by the SEC to design and implement key controls over financial reporting process to address complex U.S. GAAP accounting issues and related disclosures in accordance with U.S. GAAP and SEC financial reporting requirements; and (ii) the lack of formal internal control policies and independent supervision function to establish formal risk assessment process and internal control framework. While we have taken measures to address this deficiency by hiring additional personnel with appropriate levels of accounting knowledge and experience, and from whom existing team members can learn to enhance their own accounting expertise, there is no assurance that such deficiency has been fully remediated. Failure to correct any deficiencies or identify other weaknesses may result in inaccuracies in our financial statements and impair our ability to comply with financial reporting requirements. Additionally, as a public company, we will be subject to reporting obligations and the Sarbanes-Oxley Act, which may strain our resources and further impact our internal control over financial reporting. Any inadequacy in our internal control environment could lead to material misstatements in our financial statements, increased risk of fraud, regulatory investigations, and potential delisting.

***We may, from time to time, be subject to legal proceedings or administrative penalties during the course of our business operations.***

We may be subject to legal proceedings or administrative penalties from time to time in the ordinary course of our business, which could have a material adverse effect on our business, results of operations and financial condition. Claims arising out of actual or alleged violations of law could be asserted against us by consumers and businesses that utilize our services, by competitors, or by governmental entities in civil or criminal investigations and proceedings or by other entities. These claims could be asserted under a variety of laws, including but not limited to those related to product liability, consumer protection, intellectual property, unfair competition, privacy, labor and employment, securities, real estate, tort, contract, property, and employee benefit. We may continue to be involved in various legal or administrative proceedings and there is no guarantee that we will be successful in defending ourselves in legal and administrative actions or in asserting our rights under various laws. Even if we are successful in our attempt to defend ourselves in legal and administrative actions or to assert our rights under various laws, enforcing our rights against the various parties involved may be expensive, time-consuming and ultimately futile. These actions could expose us to negative publicity and to substantial monetary damages and legal defense costs, injunctive relief and criminal and civil fines and penalties, including but not limited to suspension or revocation of licenses to conduct business.

***Changes in U.S. and international trade policies, particularly with regard to China, may adversely impact our business and operating results.***

The U.S. government has recently made statements and taken certain actions that may lead to potential changes to U.S. and international trade policies, including recently imposed tariffs affecting certain products manufactured in China. For example, on October 28, 2024, the U.S. Department of the Treasury issued a final rule on outbound investment to implement the executive order of August 9, 2023. The final rule became effective on January 2, 2025. The final rule imposes investment prohibition and notification requirements on U.S. persons for a wide range of investments in entities associated with China (including Hong Kong and Macau) that are engaged in activities relating to three sectors: (i) semiconductors and microelectronics, (ii) quantum information technologies, and (iii) artificial intelligence systems, collectively defined as Covered Foreign Persons. U.S. persons subject to the final rule are prohibited from making, or required to report, certain investments in Covered Foreign Persons, which are defined as Covered Transactions. If we were to be deemed a Covered Foreign Person due to changes in our business operations or amendments to relevant laws and regulations, our ability to raise capital would be significantly and negatively affected. In such case, the trading price of our shares and/or the ADSs may be materially and adversely affected. In addition, the U.S. has imposed or proposed the imposition of new tariffs on products imported into the U.S. from a number of countries, such as China and Canada and could propose additional tariffs or increases to those already in place. Although cross-border business may not be an area of our focus, if we plan to expand internationally in the future, any unfavorable government policies on international trade, such as capital controls or tariffs, may affect the demand for our products and services, impact the competitive position of our products or prevent us from being able to sell products in certain countries. If any new tariffs, legislation and/or regulations are implemented, or if existing trade agreements are renegotiated or if the U.S. government takes retaliatory trade actions due to the recent U.S.-China trade tension, such changes could have an adverse effect on our business, financial condition, results of operations.

***Our operations have been and may continue to be affected by the COVID-19 pandemic.***

Our business and financial performance have been adversely affected by the outbreaks of COVID-19. To protect the health and well-being of our employees, we temporarily closed our offices from February 2020 to March 2020 due to the COVID-19 outbreak. As of the date of this prospectus, our Operating Entities have resumed normal operations. For the years ended December 31, 2024 and 2025, the COVID-19 pandemic did not have a material net impact on our financial positions and operating results. On May 5, 2023, the World Health Organization ("WHO") declared that COVID-19 is now an established and ongoing health issue which no longer constitutes a public health emergency of international concern. However, the extent of the impact of COVID-19 on our future financial results will be dependent on future developments such as the length and severity of COVID-19, the potential resurgence of COVID-19, future government actions in response to COVID-19 and the overall impact of COVID-19 on the global economy and capital markets, among many other factors, all of which remain highly uncertain and unpredictable. Given this uncertainty, we are currently unable to quantify the expected impact of COVID-19 on our future operations, financial condition, liquidity and results of operations if the current situation continues.

***We face risks related to natural disasters, health epidemics and other outbreaks, such as the outbreak of COVID-19, which could disrupt our operations.***

Our business is vulnerable to the adverse effects of epidemics, including but not limited to COVID-19, avian influenza, SARS, H1N1, and Ebola. Such occurrences have the potential to severely disrupt our daily operations, including our fulfillment infrastructure and customer service centers, and may even necessitate temporary closures of our facilities. In recent years, there have been global and local outbreaks of epidemics, with notable examples being the COVID-19 pandemic, during which the Chinese government implemented various measures such as extending holidays, imposing quarantines, restricting travel, and canceling public activities. These measures, coupled with the temporary closure of offices, stores, and manufacturing facilities across China, have had a significant impact on our operations. We have implemented measures in response to the outbreak, including remote working arrangements and providing the government with access to our fulfillment infrastructure for crisis relief efforts. However, these measures may reduce operational capacity and efficiency, negatively affecting product procurement and ultimately impacting our financial results. The extent of the impact of COVID-19 on our operations depends on the unpredictable and uncertain future developments of the outbreak, including global severity and containment efforts. Additionally, our results may be adversely affected if the outbreak negatively impacts the Chinese economy. Furthermore, the COVID-19 pandemic has the potential to amplify other risks outlined in our annual report, such as our indebtedness levels, cash flow generation for debt servicing, and compliance with debt agreement covenants.

We are also vulnerable to natural disasters and other calamities. If any such disaster were to occur in the future affecting the places where we have major operations in China, our operations could be materially and adversely affected due to loss of personnel and damages to property, including our technology systems. Our operation could also be severely disrupted if our suppliers, consumers, third-party merchants or business partners were affected by such natural disasters or health epidemics.

***Financial distress experienced by business partners and other contract counterparties could have an adverse impact on the Operating Entities.***

We are party to numerous contracts of varying durations. Although we attempt to assess the creditworthiness of business partners and other contract counterparties, there is no assurance as to the creditworthiness of any such business partner or contract counterparty. In the future, some of these business partners and contract counterparties may be highly leveraged, may be subject to operating, market and regulatory risks, and may experience severe financial problems that can have a significant impact on their creditworthiness. Any material nonperformance of contractual arrangements by these business partners and contract counterparties or any financially distress experienced by them could adversely impact our business, and, in turn, our results of operations and financial condition.

***The recent policy pronouncements by the PRC government regarding business activities of U.S.-listed PRC businesses may negatively impact our Hong Kong subsidiary.***

Recently, the PRC government announced that it would step up supervision of overseas listed PRC businesses. Under the new measures, the PRC government will enhance regulation of cross-border data flows and security, crack down on illegal activity in the securities market and punish fraudulent securities issuance, market manipulation and insider trading. The PRC government will also check sources of funding for securities investment and control leverage ratios. The PRC government has also opened a probe into several U.S.-listed technology companies focusing on anti-monopoly, financial technology regulation and more recently, with the passage of the PRC Data Security Law, how companies collect, store, process and transfer personal data. Currently these laws (other than the Law of the PRC on Safeguarding National Security in Hong Kong) are expected to apply to mainland China domestic businesses, rather than businesses in Hong Kong which operate under a different set of laws from mainland China. However, there can be no assurance that the government of Hong Kong will not enact similar laws and regulations applicable to companies operating in Hong Kong.

Given the PRC government's significant oversight over the conduct of business operations in mainland China and in Hong Kong, and in light of the PRC government's recent extension of authority not only in mainland China but into Hong Kong, there are risks and uncertainties which we cannot foresee for the time being, and rules and regulations in the PRC can change quickly. For example, the government of Hong Kong may enact similar laws and regulations to those in mainland China, which may seek to exert control over offerings conducted overseas by Hong Kong companies. If any or all of the foregoing were to occur, it could affect our operations and limit or hinder our ability to offer securities to overseas investors or remain listed in the U.S., which could cause the value of the securities we are registering for sale to significantly decline or become worthless.

***Increased labor costs, inability to retain suitable employees, or unfavorable labor relations may adversely affect the business, financial condition or results of operations.***

We devote significant resources to recruiting and training employees. Our ability to manage and control labor costs is subject to numerous external factors, including market pressures with respect to prevailing wage rates, unemployment levels, health and other insurance costs, as well as the impact of legislation or regulations governing wage and employee benefits. Any changes in these external factors could significantly increase labor costs, which would reduce the net income and cash flows of the Operating Entities.

We aim to motivate and retain qualified employees. If the employees are unsatisfied with what we offer, such as remuneration packages or working environment, we may not be able to retain qualified employees or replace them with personnel of appropriate skill sets and personal attributes at comparable costs. In such an event, we may need to expend additional resources to retain or replace suitable employees.

From time to time, we may be subject to various employment-related claims, such as individual actions or government enforcement actions relating to wage-hour, labor standards, or healthcare and benefit issues. Such actions, if brought against us and successful in whole or in part, may materially and adversely affect the business of the Operating Entities, and our financial condition or results of operations.

***Interruptions or failures that impair access to information technology systems could adversely affect our business.***

We rely on information technology systems to process, transmit, and store information in relation to our operations. These information technology systems may be vulnerable to interruption due to a variety of events beyond our control, including but not limited to, natural disasters, telecommunications failures, computer viruses, hacking and other security issues. Any material interruptions or failures in these information technology systems could cause disruptions in business operations and may require a significant investment to update, remediate or replace with alternate systems. The costs and potential problems associated with supporting, maintaining, remediating and upgrading the existing information technology systems, or with implementing new systems, may severely disrupt the business operations of the Operating Entities.

***Certain data and information in this prospectus were obtained from third-party sources and were not independently verified by us.***

We have enlisted the services of China Insights Consultancy Ltd. ("China Insights Consultancy"), an independent third-party industry consultant, to prepare a commissioned industry report on the renewable resources recycling industry in China. The information and data regarding the renewable resources recycling industry in this prospectus have been obtained from China Insights Consultancy's industry report. The report also includes statistical data that incorporates projections based on various assumptions, such as (i) the overall global social, economic, and political environment is expected to maintain a stable trend during the forecast period; (ii) the key industry drivers are likely to continue to drive the growth in each market during the forecast period, and (iii) there are no extreme force majeure or unforeseen industry regulations in which the market may be affected either dramatically or fundamentally during the forecast period. However, it is important to note that the growth of the renewable resources recycling industry in China may not align with the projected market data, or it may not experience growth at all. If any of the assumptions underlying the market data are later determined to be incorrect, the actual results may differ from the projections based on those assumptions.

We have not independently verified the information contained in China Insights Consultancy's industry report, or any third-party publications and reports that China Insights Consultancy has relied on in preparing its report. Information contained in such third-party publications and reports may be collected using third-party methodologies, which may differ from the data collection methods used by us. In addition, industry publications and reports generally indicate that the information contained therein is believed to be reliable, but there is no assurance as to the accuracy and completeness of such information.

**Risks Related to Doing Business in the PRC**

***The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required in connection with this offering under PRC law. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations.***

The PRC government has recently sought to exert more oversight over offerings that are conducted overseas or foreign investment in China-based issuers. On February 17, 2023, the CSRC issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises, or the Trial Measures, which became effective on March 31, 2023. On the same date of the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, and has subsequently successively issued No. 6 and No. 7 Supporting Guidance Rules. The Notes on the Trial Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises and the relevant CSRC Answers to Reporter Questions on the official website of the CSRC, or collectively, the Overseas Listing Filing Rules. The Trial Measures states that overseas securities offerings and listing by PRC companies, either in direct or indirect form, shall be filed with the CSRC (the "CSRC Filing"). Under the Overseas Listing Filing Rules, no overseas offering and listing shall be made by PRC companies, whether in direct or indirect form, where such offering and listing is explicitly prohibited by provisions in laws, administrative regulations and relevant state rules, including the Market Access Negative List (2022 Edition) issued by the National Development and Reform Commission of the PRC ("NDRC") and Ministry of Commerce ("MOFCOM"), and other laws, administrative regulations and relevant state provisions that restrict or prohibit listing and financing in the areas of industrial policy, production safety and industry supervision. PRC companies intending overseas offering and listing are required to obtain regulatory opinions, filings or approvals from government authorities of correspondent industries, if applicable, for CSRC Filing. The Trial Measures also stipulates that no overseas offering and listing shall be made where the intended securities offering and listing may endanger national security as reviewed and determined by competent government authorities under the State Council in accordance with PRC law. PRC companies intending overseas offering and listing shall strictly comply with relevant laws, administrative regulations and rules concerning national security in spheres of foreign investment, cybersecurity, and data security. If the intended overseas offering and listing necessitates a national security review, relevant security review procedures shall be completed before the application for such offering and listing is submitted to any overseas parties such as securities regulatory agencies and trading venues. A PRC company that seeks to offer and list securities in overseas markets shall, as required by competent government authorities under the State Council, take measures such as timely rectification, commitment and divestiture of relevant business and assets, to eliminate or avert any impact on national security resulting from such overseas offering and listing.

On February 24, 2023, the CSRC, Ministry of Finance of the PRC, National Administration of State Secrets Protection and National Archives Administration of China jointly issued the Provisions on Strengthening the Confidentiality and Archive Management Work Relating to the Overseas Securities Offering and Listing, or the Confidentiality Provisions, which came into effect on March 31, 2023. The Confidentiality Provisions require that, among other things, (a) a domestic company that plans to, either directly or through its overseas listed entity, publicly disclose or provide to relevant individuals or entities including securities companies, securities service providers and overseas regulators, any documents and materials that contain state secrets or working secrets of government agencies, shall first obtain approval from competent authorities according to law, and file with the secrecy administrative department at the same level; and (b) domestic company that plans to, either directly or through its overseas listed entity, publicly disclose or provide to relevant individuals and entities including securities companies, securities service providers and overseas regulators, any other documents and materials that, if leaked, will be detrimental to national security or public interest, shall strictly fulfill relevant procedures stipulated by applicable national regulations. For more details of the Overseas Listing Filing Rules and the Confidentiality Provisions, please refer to "Regulations — Regulations Relating to Overseas Listing."

According to the Overseas Listing Filing Rules, we are required to submit the filing application to the CSRC within three business days after our submission of application for any overseas initial public offering and listing and complete the filing procedure before our overseas initial public offering and listing. We have submitted a filing with the CSRC with respect to our overseas initial public offering and listing on November 20, 2023. On May 30, 2024, the CSRC published a Filing Completion Notice on the CSRC's official website ("Filing Completion Notice"), confirming that we have completed the filing procedures with the CSRC under the Trial Measures. Pursuant to the requirements of the Filing Completion Notice, if we fail to complete the overseas offering and listing within 12 months from the date of issuance of such notice and intend to continue with the listing process, we shall update the filing materials. In accordance with Article 19 of the Trial Measures, where the filing materials are complete and in compliance with applicable requirements, the CSRC shall complete the filing procedures within 20 working days from the date of receipt of such materials. In compliance with the foregoing requirements of the Filing Completion Notice and the provisions of the Trial Measures, we proceeded with our listing process after May 30, 2025, and accordingly submitted updated filing materials to the CSRC on July 15, 2025. The CSRC officially accepted such updated materials on October 23, 2025, raised no objections within the subsequent 20-working-day period, and has not raised any objections as of the date of this prospectus. However, from the date of issuance of the Filing Completion Notice to the completion of this offering, if we experience any material or significant events that may cause (i) a major change to the main business or business license qualifications of the PRC Subsidiaries; (ii) a major change of control or equity structure; and (iii) a major adjustment to the offering and listing plan which includes but are not limited to changes of the listing place, possible changes of control after the adjustment of the offering plan, and increases in the proportion of shares to be issued, we shall update the filing documents with the CSRC within three business days. Additionally, upon completion of this offering, we shall report the offering information to the CSRC within 15 business days. If a violation of the foregoing and related regulations occurs, the CSRC may order rectification, issue warnings, and impose a fine between RMB 1 million and RMB 10 million on our PRC Subsidiaries, which could adversely and materially affect our business operations and financial outlook, and significantly limit or completely hinder our ability to offer or continue to offer the ADSs to investors and could cause the value of the ADSs to significantly decline or such shares to become worthless. Additionally, if we do not obtain the permissions and approvals of the filing procedure for any subsequent offering in a timely manner under PRC laws and regulations, we may be subject to investigations by competent PRC regulators, fines or penalties, ordered to suspend our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and these risks could result in a material adverse change in our operations, limit our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer and list the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations.

Meanwhile, although we have completed the required procedures with the CSRC, there can be no assurance that the relevant PRC governmental authorities, including the CSRC, would reach the same conclusion as us, or that the CSRC or any other PRC governmental authorities would not promulgate new rules or new interpretation of current rules (with retrospective effect) to require us to obtain other PRC governmental approvals for this offering. If we (i) do not receive or maintain our requisite permissions or approvals, (ii) inadvertently concluded that such permissions or approvals are not required, or (iii) applicable laws, regulations, or interpretations change and we are required to obtain such permissions or approvals in the future, our ability to offer or continue to offer the ADSs to investors could be significantly limited or completed hindered, which could cause the value of the ADSs to significantly decline or become worthless. We may also face sanctions by the CSRC, the CAC or other PRC regulatory authorities. These regulatory authorities may impose fines, penalties, limit our operations in China, or take other actions that could have a material adverse effect on our business, financial condition, results of operations and prospects, as well as the trading price of our securities.

***Adverse changes in economic, political and social conditions of the PRC government could have a material adverse effect on our business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies.***

Our business, financial condition, results of operations and growth prospects may be influenced to a significant degree by political, economic and social conditions in China generally. The Chinese economy differs from the economies of most of the developed countries in many respects, including the level of government involvement, level of development, growth rate, control of foreign exchange and allocation of resources. Although the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets, and the establishment of improved corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. In addition, the Chinese government continues to play a significant role in regulating industry development by imposing industrial policies. The Chinese government also exercises significant control over China's economic growth through allocating resources, setting monetary policy, and providing preferential treatment to particular industries or companies.

While the Chinese economy has experienced significant growth over the past four decades, growth has been uneven, both geographically and among various sectors of the economy, and the rate of growth has been slowing since 2012. Any adverse changes in economic conditions in China, in the policies of the Chinese government, or in social conditions in China could have a material adverse effect on the overall economic growth of China. Such developments could adversely affect our business and operating results, lead to a reduction in demand for their services and adversely affect their competitive position. The Chinese government has implemented various measures to encourage economic growth and guide allocation of resources. Some of these measures may benefit the overall Chinese economy but may have a negative effect on the Operating Entities. For example, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations. In addition, in the past the Chinese government has implemented certain measures, including interest rate adjustment, to control the pace of economic growth. These measures may cause decreased economic activity in China, which may, in turn, adversely affect our business and operating results.

***There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations, and changes in policies, laws, rules and regulations in the PRC could adversely affect us. Furthermore, we are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our business and prospects, and may result in a material change in our operations and/or the value of the ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or those securities to become worthless.***

Our operations are conducted in mainland China and are governed by PRC laws, rules and regulations. Our PRC subsidiaries are subject to laws, rules, and regulations applicable to foreign investment in China. The PRC legal system is a civil law system based on written statutes, where prior court decisions have limited precedential value. The laws, regulations and policies of the PRC may be amended from time to time. Recently, the PRC government is enhancing supervision over companies seeking listings overseas and some specific business or activities such as data security or anti-monopoly. The PRC government may adopt new measures that may affect our operations. In addition, they may also exert more oversight over offerings conducted outside of China and foreign investment in China-based companies, which could significantly limit or completely hinder our ability to offer or continue to offer our securities to investors, result in a material change in our operation and cause the value of the ADSs to significantly decline or become worthless. We may be subject to challenges brought by these new laws, regulations and policies. However, since these laws, regulations and policies are relatively new and may be amended from time to time, the interpretations of many laws, regulations and rules are not always uniform and there may be changes as to the enforcement of these laws, regulations and rules. Furthermore, as we may be subject to additional, yet undetermined, laws and regulations, compliance may require us to obtain additional permits and licenses, complete or update registrations with relevant regulatory authorities, adjust our business operations, as well as allocate additional resources to monitor developments in the relevant regulatory environment. However, under the stringent regulatory environment, it may take much more time for the relevant regulatory authorities to approve new applications for permits and licenses, and complete or update registrations and we cannot assure you that we will be able to comply with these laws and regulations in a timely manner or at all. The failure to comply with these laws and regulations may delay, or possibly prevent, us from conducting business, accepting foreign investments, or listing overseas.

There are substantial uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations including, but not limited to, the laws and regulations, governing our business and the enforcement and performance of our arrangements with clients in certain circumstances. Because these laws, rules and regulations are relatively new and quickly evolving, and because of the limited number of published decisions and the non-precedential nature of these decisions, and because the laws, rules and regulations often give the relevant regulator certain discretion in how to enforce them, the interpretation and enforcement of these laws, rules and regulations involve uncertainties and can be inconsistent and unpredictable. Our business may be affected if we rely on laws, rules and regulations which are subsequently adopted or interpreted in a manner different from our understanding of these laws and regulations. New laws and regulations that affect existing and proposed future businesses may also be applied retroactively. We cannot predict what effect the interpretation of existing or new PRC laws or regulations may have on our business. Furthermore, the legal system of mainland China is based in part on government policies, some of which are not published or not published on a timely basis. As a result, we may not be aware of our potential violation of such policies and rules.

We operate in mainland China. Our subsidiaries, CZTI HK and Carbon Source HK, are incorporated in Hong Kong but have no substantive business operations of its own. The Company does not have any substantive business operations in Hong Kong or Macau. The operational and legal risks associated with being based in and having operations in China also apply to operations in Hong Kong and Macau, if the Company will have any operations in Hong Kong and Macau in the future, which operate under different sets of laws from those of mainland China. These risks may result in material changes in operations, or a complete hindrance of our ability to offer or continue to offer our securities to investors and could cause the value of our securities to significantly decline or become worthless.

On July 6, 2021, the General Office of the Communist Party of China Central Committee and the General Office of the State Council jointly issued an announcement to crack down on illegal activities in the securities market and promote the high-quality development of the capital market, which, among other things, requires the relevant governmental authorities to strengthen cross-border oversight of law-enforcement and judicial cooperation, to enhance supervision over China-based companies listed overseas, and to establish and improve the system of extraterritorial application of the PRC securities laws. On December 28, 2021, Cybersecurity Review Measures (2021 version) was issued, which became effective on February 15, 2022. The Anti-Monopoly Law, which took effect in 2008 and was amended on June 24, 2022, which amendment became effective August 1, 2022, established additional procedures and requirements that could make merger and acquisition activities by foreign investors more time consuming and complex. As of the date of this prospectus, the above regulations have not impacted our ability to conduct the business, accept foreign investments, or list on a U.S. or other foreign exchange; however, the occurrence of any of these events may materially and adversely affect our business and prospects and may result in a material change in our operations and/or the value of the ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors.

***Because we operate in mainland China, the Chinese government may exercise significant oversight and discretion over the conduct of our subsidiaries' business and may intervene or influence their operations, including that of our PRC subsidiaries, at any time, which could result in a material adverse change in our business and operations, prospects, financial condition, and results of operations, and the value of our securities. Changes in the policies, regulations, rule, and the enforcement of laws of the Chinese government may also be implemented quickly with little advance notice, and the Chinese government may intervene or influence our subsidiaries at any time or may exert more control over offerings conducted overseas or investments in China-based issuers, which could result in material changes in operations and/or the value of the securities we are registering for sale. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment and/or operations in China-based issuers could significantly change our operations, limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Therefore, our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain.***

Substantially all of our operations are located in mainland China. The PRC government may choose to exercise significant oversight and discretion, and the regulations to which any of our subsidiaries is subject may change rapidly. As a result, the application, interpretation and enforcement of new and existing laws and regulations in China are often uncertain. In addition, these laws and regulations may be interpreted and applied inconsistently by different agencies or authorities, and inconsistently with our subsidiaries' current policies and practices. New laws, regulations and other government directives in China may also be costly to comply with, and such compliance or any associated inquiries or investigations or any other government actions may:

● delay or impede our subsidiaries' development;

● result in negative publicity or increase our subsidiaries' operating costs;

● require significant management time and attention; and

● subject us to remedies, administrative penalties and even criminal liabilities that may harm our subsidiaries' business, including fines assessed for our subsidiaries current or historical operations, or demands or orders that our subsidiaries modify or even cease their business practices.

We are aware that, recently, the PRC government initiated a series of regulatory actions and statements to regulate business operations in certain areas in China with little advance notice, including increased oversight of illegal activities in the securities market, enhancing supervision over China-based companies listed overseas using a VIE structure, adopting new measures to extend the scope of cybersecurity reviews and expanding the efforts in anti-monopoly enforcement. These regulatory actions and statements emphasize the need of the PRC government to strengthen the administration over illegal securities activities and the supervision of China-based companies seeking overseas listings. Additionally, companies who hold large amounts of data related to issues of national security, economic development, or public interest will be required to undergo a cybersecurity review if carrying out mergers, restructuring or splits that affect or may affect national security. The PRC government's statements were recently issued, and their official guidance and interpretation remain unclear at this time. While we believe that our subsidiaries' operations are not currently being affected, they may be subject to additional compliance requirements in the near term. Compliance with new regulatory rules or requirements could present a range of new challenges which may create uncertainties for our subsidiaries, including an increase of our subsidiaries' cost of operations.

The Chinese government may intervene or influence our subsidiaries' operations at any time and may exert more control over offerings conducted overseas and foreign investment in China-based issuers, which may result in a material change in our subsidiaries' operations, prospects, financial condition, and results of operations, and/or the value of the ADSs. Any legal or regulatory changes that restrict or otherwise unfavorably impact our subsidiaries' ability to conduct their business could decrease demand for their services, reduce revenues, increase costs, require them to obtain more licenses, permits, approvals or certificates, or subject them to additional liabilities. To the extent that any new or more stringent measures are implemented, our business, financial condition and results of operations could be adversely affected, and the value of the ADSs could decrease or become worthless.

Accordingly, our results of operations, financial condition and prospects are influenced by economic, political and legal developments in China. As the PRC government continues to play a significant role in regulating industrial development, allocation of natural and other resources, production, pricing and management of currency, we cannot predict whether changes in China's economic or social conditions or government policies will have any adverse effect on our current or future business, financial condition or results of operations.

Our ability to successfully expand business operations in the PRC depends on a number of factors, including macro-economic and other market conditions. Demand for our services and our business, financial condition and results of operations may be materially and adversely affected by the following factors:

● changes
 in economic or social conditions of the PRC;

● changes
 in laws, regulations, and administrative directives or the interpretation thereof;

● measures
 which may be introduced to control inflation or deflation; and

● changes
 in the rate or method of taxation.

These factors are affected by a number of variables which are beyond our control. See "*Risk Factors — Risks Related to Doing Business in the PRC – There are uncertainties regarding the interpretation and enforcement of PRC laws, rules and regulations, and changes in policies, laws, rules and regulations in the PRC could adversely affect us. Furthermore, we are subject to extensive and evolving legal development, non-compliance with which, or changes in which, may materially and adversely affect our business and prospects, and may result in a material change in our operations and/or the value of the ADSs or could significantly limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of our securities to significantly decline or be worthless."* and "*Risk Factors — Risks Related to Doing Business in the PRC — The approval, filing or other requirements of the China Securities Regulatory Commission or other PRC government authorities may be required in connection with this offering under PRC law. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations*."

***Recent greater oversight by the CAC over data security, particularly for companies seeking to list on a foreign exchange, and a variety of laws and other obligations regarding data protection to which we are subject***, ***could adversely impact our business and our offering.***

On December 28, 2021, 13 governmental departments of the PRC, including the CAC, jointly promulgated the Measures for Cybersecurity Review, which became effective on February 15, 2022. The Measures for Cybersecurity Review provide that, in addition to critical information infrastructure operators ("CIIOs") that intend to purchase internet products and services, net system operators engaging in data processing activities that affect or may affect national security must be subject to cybersecurity review by the Cybersecurity Review Office of the PRC. According to the Measures for Cybersecurity Review, a cybersecurity review assesses potential national security risks that may be brought about by any procurement, data processing, or overseas listing. The Measures for Cybersecurity Review require that an online platform operator which possesses the personal information of at least one million users must apply for a cybersecurity review by the CAC if it intends to be listed in foreign countries.

On September 24, 2024, the State Council published the Regulations on Network Data Security Management (the "Network Data Security Regulations"), which took effective on January 1, 2025. The Network Data Security Regulations do not stipulate the specifics of cybersecurity review but clearly provide that the network data processors engaging in data processing activities that affect or may affect national security shall be subject to the national security review in accordance with relevant laws and regulations.

The Company, with the assistance of PRC legal counsel, Zhong Lun Law Firm, has consulted with the China Cybersecurity Review Technology and Certification Center (the agency entrusted by the Cybersecurity Review Office to carry out the specific work of cybersecurity review, "CCRC", which has been renamed as China Cybersecurity Review, Certification and Market Regulation Big Data Center on December 25, 2023), which confirmed that, a China-based company that neither holds personal information of more than one million users nor has been identified as a CIIO is not required to apply for cybersecurity review before it applies to list its securities on a foreign stock exchange. As advised by our PRC legal counsel, Zhong Lun Law Firm, as of the date of this prospectus, we are not required to declare a cybersecurity review with the CAC, according to the Measures for Cybersecurity Review, since we are not an online platform operator carrying out data processing activities that affect or may affect national security, and currently do not have over one million users' personal information. As of the date of this prospectus, we have not received any notice from any authorities identifying us as a CIIO or requiring us to undergo a cybersecurity review or network data security review by the CAC.

There remains uncertainty as to how the Measures for Cybersecurity Review and the Network Data Security Regulations will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Cybersecurity Review Measures and the Network Data Security Regulations. If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. We may be required to adjust our business practices to comply with the personal information protection laws and regulations. There is no assurance that PRC regulatory agencies, including the CAC, would take the same view as we do, and there is no assurance that we can fully or timely comply with such laws should they be deemed to be applicable to the operations of the Operating Entities. There is no certainty as to how such review or prescribed actions would impact such operations and we cannot guarantee that any clearance can be obtained, or maintained, if approved, or any actions that may be required can be taken in a timely manner, or at all.

On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Data Cross-border Transfer, which requires that any data processor providing important data collected and generated during operations within mainland China or personal information that should be subject to security assessment according to law to an overseas recipient shall conduct security assessment. On February 24, 2023, the CAC issued the Measures for the Standard Contract for Cross-border Transfer of Personal Information and the Standard Contract for Cross-border Transfer of Personal Information, which requires that for personal information cross-border transfer that do not trigger the security assessment, the activity of transferring personal information abroad may be carried out after the SCC enters into force. Our business does not involve the cross-border transfer of personal information and important data. If it is necessary to transmit personal information outside mainland China due to business needs in the future, we will conduct the security impact assessment for cross-border transfer of personal information and important data in advance.

***PRC regulations relating to the establishment of offshore special purpose companies by PRC residents may subject us to liability or penalties, limit our ability to inject capital into our PRC subsidiaries, limit our ability to increase their registered capital or distribute profits to us, or may otherwise adversely affect us.***

The Circular on Relevant Issues Relating to Domestic Resident's Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, was promulgated by the State Administration of Foreign Exchange, or SAFE, in July 2014 that requires PRC residents or entities to register with SAFE or its local branch, currently with local bank according to Notice of the State Administration of Foreign Exchange on Further Simplifying and Improving Policies for the Foreign Exchange Administration of Direct Investment issued by SAFE on February 13, 2015, in connection with their establishment or control of an offshore entity established for the purpose of overseas investment or financing. In addition, any PRC resident who is a direct or indirect shareholder of an offshore company is required to update the previously filed registration with the local branch of the SAFE, with respect to that offshore company, to reflect any material change involving its round-trip investment, capital variation, such as an increase or decrease in capital, transfer or swap of shares, merger or division. These regulations apply to our shareholders who are PRC residents and may apply to any offshore acquisitions that we make in the future.

We have requested PRC residents holding direct or indirect interest in the Company to our knowledge to make the necessary applications, filings and amendments as required by applicable foreign exchange regulations. We are committed to complying with and to ensuring that our shareholders who are subject to the regulations will comply with the relevant SAFE rules and regulations. However, due to the inherent uncertainty in the implementation of the regulatory requirements by PRC authorities, such registration might not be always practically available in all circumstances as prescribed in those regulations. In addition, we may not always be able to compel them to comply with SAFE Circular 37 or other related regulations. There is no assurance that the SAFE or its local branches will release explicit requirements or interpret the relevant PRC Laws otherwise. Failure by any such shareholders to comply with SAFE Circular 37 may result in restrictions on the foreign exchange activities of the relevant PRC enterprise and may also subject the relevant PRC resident to penalties under the PRC foreign exchange administration regulations.

***PRC laws and regulations establish more complex procedures for some acquisitions of PRC companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.***

A number of PRC laws and regulations, including the M&A Rules, the Anti-monopoly Law promulgated by the Standing Committee of the National People's Congress in August 2007 and latest amended in June 2022, the Rules of Ministry of Commerce on Implementation of Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors promulgated by the Ministry of Commerce in August 2011, and the Measures for the Security Review of Foreign Investment promulgated by the National Development and Reform Commission of the PRC, or NDRC and the Ministry of Commerce in December 2020 have established procedures and requirements that are expected to make merger and acquisition activities in China by foreign investors more time-consuming and complex. These include requirements in some instances that the approval from the Ministry of Commerce be obtained in circumstances where overseas companies established or controlled by PRC enterprises or residents acquire affiliated domestic companies. PRC laws and regulations also require certain merger and acquisition transactions involving an industry that implicates national security to be subject to merger control review or security review.

In the future, we may further grow our business by acquiring businesses. Complying with the requirements of the above-mentioned regulations and other relevant rules to complete such transactions could be time-consuming, and any required approval processes, including obtaining approval from the Ministry of Commerce or its local counterparts may delay or inhibit our ability to complete such transactions. Our ability to expand our business or maintain or expand our market share through future acquisitions would be materially and adversely affected.

***We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business.***

We are a holding company incorporated in the Cayman Islands and we operate our business principally through the Operating Entities in the PRC. Therefore, the availability of funds to us to pay dividends to our shareholders and to service our indebtedness depends upon dividends received from these Operating Entities. The Operating Entities' ability to distribute dividends is based upon their distributable earnings. Current PRC regulations permit the operating entities to pay dividends to their respective shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, each of the PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entities in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. These reserves are not distributable as cash dividends. If our PRC subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments to us. Any limitation on the ability of our PRC subsidiaries to distribute dividends or other payments to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our businesses, pay dividends or otherwise fund and conduct our business.

Under the PRC EIT Law and the Implementation Rules of the PRC EIT Law, dividends, interests, rent or royalties payable by a foreign-invested enterprise to any of its foreign non-resident enterprise investors, and proceeds from any such foreign enterprise investor's disposition of assets (after deducting the net value of such assets) are subject to a 10% withholding tax, unless the foreign enterprise investor's jurisdiction of incorporation has a tax treaty with China that provides for a reduced rate of withholding tax. The Cayman Islands, where our Company is incorporated, does not have such a tax treaty with China. Hong Kong has a tax arrangement with China that provides for a 5% withholding tax on dividends subject to certain conditions and requirements, such as the requirement that the Hong Kong resident enterprise own at least 25% of the PRC enterprise distributing the dividend at all times within the 12-month period immediately preceding the distribution of dividends and be a "beneficial owner" of the dividends. CZTI HK and Carbon Source HK, which directly and indirectly own the equity of our PRC subsidiaries in the PRC, are incorporated in Hong Kong. However, if CZTI HK and Carbon Source HK are not considered to be the beneficial owner of dividends paid to it by the Operating Entities and their PRC subsidiaries under the tax circulars promulgated in February and October 2009, such dividends would be subject to withholding tax at a rate of 10%. If the Operating Entities and other PRC subsidiaries declare and distribute profits to us, such payments will be subject to withholding tax, which will increase our tax liability and reduce the amount of cash available to our Company.

As of the date of this prospectus, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into, and out of Hong Kong (including funds from Hong Kong to mainland China), except for the transfer of funds involving money laundering and criminal activities. However, there is no guarantee that the Hong Kong government will not promulgate new laws or regulations that may impose such restrictions in the future. There is no assurance the PRC government will not intervene in or impose restrictions on our ability to transfer cash or assets.

As a result of the above, to the extent cash or assets in the business are in the PRC/Hong Kong or a PRC/ Hong Kong entity, such funds or assets may not be available to fund operations or for other use outside of the PRC/Hong Kong, due to interventions in or the imposition of restrictions and limitations on the ability of our Company or our subsidiaries by the competent government to the transfer of cash or assets.

***PRC regulations of loans and direct investment by offshore holding companies to the PRC subsidiaries may delay or prevent us from using the proceeds of our offshore financing to make loans or additional capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and business.***

We may transfer funds to the PRC subsidiaries or finance the PRC subsidiaries by means of shareholders' loans or capital contributions after completion of this offering. Any loans to the PRC subsidiaries, which are foreign-invested enterprises, cannot exceed a statutory limit, and shall be filed with the State Administration of Foreign Exchange, or SAFE, or its local counterparts. Furthermore, any capital contributions we make to the PRC subsidiaries shall be registered with the PRC State Administration for Market Regulation or its local counterparts and filed with the Ministry of Commerce ("MOFCOM") or its local counterparts.

On March 30, 2015, SAFE promulgated the Circular on Reforming the Administration Measures on Conversion of Foreign Exchange Registered Capital of Foreign-invested Enterprises, or SAFE Circular 19, which was last amended on March 23, 2023. SAFE Circular 19, however, allows foreign invested enterprises in China to use their registered capital settled in RMB converted from foreign currencies to make equity investments, but the registered capital of a foreign invested company settled in RMB converted from foreign currencies remains not allowed to be used, among other things, for investment in the security markets, or offering entrustment loans, unless otherwise regulated by other laws and regulations. On June 9, 2016, SAFE further issued the Circular on Management of Foreign Exchange Settlement under the Capital Account, or SAFE Circular 16, which, among other things, amended certain provisions of Circular 19. According to SAFE Circular 19 and SAFE Circular 16, the flow and use of the RMB capital converted from foreign currency-denominated registered capital of a foreign invested company is regulated such that Renminbi capital may not be used for purposes beyond its business scope or to provide loans to non-affiliates unless otherwise permitted under its business scope. The applicable foreign exchange circulars and rules may limit our ability to transfer the net proceeds from this offering and convert the net proceeds into RMB, which may adversely affect our business, financial condition, and results of operations.

***We may be exposed to liabilities under the Foreign Corrupt Practices Act and Chinese anti-corruption laws.***

We are subject to the U.S. Foreign Corrupt Practices Act (the "FCPA"), and other laws that prohibit improper payments or offers of payments to foreign governments and their officials and political parties by U.S. persons and issuers as defined by the statute for the purpose of obtaining or retaining business. We are subject to Chinese anti-corruption laws, which strictly prohibit the payment of bribes to government officials. We have operations, agreements with third parties, and make sales in China, which may experience corruption. The activities in China create the risk of unauthorized payments or offers of payments by our employees, consultants or distributors, because these parties are not always subject to our control.

Although we believe we have complied in all material respects with the provisions of the FCPA and Chinese anti-corruption laws as of the date of this prospectus, our existing safeguards and any future improvements may prove to be less than effective, and the employees, consultants or distributors of our Company may engage in conduct for which we might be held responsible. Violations of the FCPA or Chinese anti-corruption laws may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could negatively affect our operating results and financial condition. In addition, governmental authorities may seek to hold our Company liable for successor liability FCPA violations committed by companies in which we invest or that we acquire.

***Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations and affect the value of your investment.***

The PRC government imposes controls and restrictions on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of the PRC. The majority of our income is received in Renminbi and shortages in the availability of foreign currencies may restrict our ability to pay dividends or other payments, or otherwise satisfy their foreign currency denominated obligations, if any. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and expenditures from trade-related transactions, can be made in foreign currencies without prior approval from SAFE, by complying with certain procedural requirements. Approval from appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of the PRC to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may, at its discretion, impose restrictions on access to foreign currencies for current account transactions and if this occurs in the future, we may not be able to pay dividends in foreign currencies to our shareholders.

***Fluctuations in exchange rates could result in foreign currency exchange losses.***

The value of Renminbi against the U.S. dollar and other currencies fluctuates, is subject to changes resulting from the PRC government's policies and depends largely on domestic and international economic and political developments as well as supply and demand in the local market. In July 2005, the PRC government changed its decades-old policy of pegging the value of Renminbi to the U.S. dollar, and Renminbi appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. Since June 2010, Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. With the development of the foreign exchange market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce further changes to the exchange rate system and there is no assurance that Renminbi will not appreciate or depreciate significantly in value against the U.S. dollar in the future. It is difficult to predict how market forces or PRC, or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future.

The proceeds from this offering will be received in U.S. dollars. As a result, any appreciation of the Renminbi against the U.S. dollar may result in the decrease in the value of our proceeds from this offering. Conversely, any depreciation of the Renminbi may adversely affect the value of, and any dividends payable on, the ordinary shares in foreign currency. In addition, there are limited instruments available for us to reduce our foreign currency risk exposure at reasonable costs. All these factors could materially and adversely affect our financial condition, results of operations, and prospects, and could reduce the value of, and dividends payable on, the ADSs in foreign currency terms.

***The enforcement of the PRC Labor Contract Law and other labor-related regulations in the PRC may adversely affect the Operating Entities' business and results of operations.***

The PRC Labor Contract Law became effective on January 1, 2008, and was amended on December 28, 2012. The PRC Labor Contract Law introduced specific provisions related to fixed-term employment contracts, part-time employment, probationary periods, consultation with labor unions and employee assemblies, employment without a written contract, dismissal of employees, severance, and collective bargaining to enhance previous PRC labor laws. Under the PRC Labor Contract Law, an employer is obligated to sign an unlimited-term labor contract with any employee who has worked for the employer for ten consecutive years. Further, if an employee requests or agrees to renew a fixed exchange rate that has already been entered into twice consecutively, the resulting contract must have an unlimited term, subject to certain exceptions. With certain exceptions, an employer must pay severance to an employee where a labor contract is terminated or expires. In addition, the PRC government authorities have continued to introduce various new labor-related regulations since the effectiveness of the PRC Labor Contract Law.

Under the PRC Social Insurance Law and the Administrative Measures on Housing Fund, employees are required to participate in pension insurance, work-related injury insurance, medical insurance, unemployment insurance, maternity insurance, and housing provident funds and employers are required, together with their employees or separately, to pay the social insurance premiums and housing provident funds for their employees. In fiscal years 2024 and 2025, the Operating Entities paid social insurance contributions and housing provident fund contributions based on the local standard for their employees. As of December 31, 2024 and 2025, our accrued wages and welfare payable amounted to RMB 1.2 million and RMB 1.4 million, respectively. According to the Social Insurance Law, an employer that fails to make social insurance contributions may be ordered to pay the outstanding social insurance contributions within the deadline and may be liable to a late payment fee which equals to 0.05% of the outstanding amount for each day of delay. The employer also may be liable to a fine from one to three times the amount of the outstanding contributions if it fails to make such payments. According to the Regulations on Management of Housing Fund, an enterprise that fails to make housing fund contributions may be ordered to rectify the noncompliance and pay the required contributions within a stipulated deadline; if the enterprise fails to rectify the non-compliance with the stipulated deadline, it may be subject to a fine ranging from RMB 10,000 or RMB 50,000 and an application may be made to a local court for compulsory enforcement. These laws are designed to enhance labor protection and tend to increase the Operating Entities' labor costs. In addition, as the interpretation and implementation of these regulations are still evolving, the Operating Entities' employment practices may not be deemed in compliance with the regulations. As a result, they could be subject to penalties or incur significant liabilities in connection with labor disputes or investigations. As of the date of this prospectus, no administrative actions, fines or penalties have been imposed by the relevant PRC government authorities with respect to such non-compliance, nor has any order been received by the Operating Entities to settle the outstanding amount of social insurance contributions and housing provident fund contributions.

Because the interpretation and implementation of labor-related laws and regulations are still evolving, our employment practices may violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. We cannot assure you that we have complied or will be able to comply with all labor-related law and regulations including those relating to obligations to make full social insurance payments and contribute to the housing provident funds. If we are found to have violated applicable labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be adversely affected. We expect to make full contributions or pay any shortfall within the prescribed time period if demanded by the relevant government authorities, which event is not expected to have any potential impact on the securities offered.

***The custodians or authorized users of our controlling non-tangible assets, including chops and seals, may fail to fulfill their responsibilities, or misappropriate or misuse these assets.***

Under the PRC law, legal documents for corporate transactions, including agreements and contracts, are executed using the chop or seal of the signing entity or with the signature of a legal representative whose designation is registered and filed with relevant PRC market regulation administrative authorities. To secure the use of our chops and seals, we have established internal control procedures and rules for using these chops and seals. In any event that the chops and seals are intended to be used, the responsible personnel will apply, and the application will be verified and approved by authorized employees in accordance with our internal control procedures and rules. In addition, to maintain the physical security of our chops, we generally have them stored in secured locations accessible only to authorized employees. Although we monitor such authorized employees, the procedures may not be sufficient to prevent all instances of abuse or negligence. There is a risk that the employees could abuse their authority, for example, by entering into a contract not approved by us or seeking to gain control of one of our subsidiaries. If any employee obtains, misuses or misappropriates our chops and seals or other controlling non-tangible assets for whatever reason, there could be disruptions to our normal operations. We may have to take corporate or legal action in such an event, which could involve significant time and resources to resolve and divert management from our operations.

***If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders.***

Under the PRC EIT Law and the Implementation Rules of the PRC EIT Law, an enterprise established outside of the PRC with its "de facto management body" within the PRC is considered a "resident enterprise" and will be subject to PRC enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts and properties of an enterprise. In 2009, the State Administration of Taxation, or the SAT, issued the Circular of the State Administration of Taxation on Issues Relating to Identification of PRC-Controlled Overseas Registered Enterprises as Resident Enterprises in Accordance With the De Facto Standards of Organizational Management (the "SAT Circular 82"), which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. One of the criteria is that a company's major assets, accounting books and minutes and files of its board and shareholders' meetings are located or kept in the PRC. In addition, the SAT issued Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation) on July 27, 2011, effective from September 1, 2011, providing more guidance on the implementation of the SAT Circular 82. This bulletin clarifies matters including residence status determination, post-determination administration and competent tax authorities. Although both the SAT Circular 82 and the bulletin only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the SAT's general position on how the "de facto management body" text should be applied in determining the tax resident status of all offshore enterprises.

We believe none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body". As substantially all of our management members are based in China, it remains unclear how the tax residency rule will apply to us. If the PRC tax authorities determine that our Company or any of our subsidiaries outside of China is a PRC resident enterprise for PRC enterprise income tax purposes, then our Company or such subsidiary could be subject to PRC tax at a rate of 25% on its world-wide income, which could materially reduce our net income. In addition, we will also be subject to PRC enterprise income tax reporting obligations. Furthermore, if the PRC tax authorities determine that we are a PRC resident enterprise for enterprise income tax purposes, gains realized on the sale or other disposition of the ADSs may be subject to PRC tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC individuals (in each case, subject to the provisions of any applicable tax treaty), if such gains are deemed to be from PRC sources. It is unclear whether non-PRC shareholders of our Company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC if we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in the ADSs.

***If we are not in compliance with the relevant PRC tax laws and regulations, our financial condition and results of operations may be negatively affected.***

We purchased certain fixed assets without obtaining a VAT invoice. If such an invoice is not obtained, the depreciation of fixed assets cannot be deducted when calculating the income tax payable. As of the date of this prospectus, no other administrative actions, fines or penalties have been imposed on the PRC subsidiaries by the relevant PRC tax authorities, nor has any other order been received by the PRC subsidiaries to settle the outstanding amount of tax liabilities.

However, the PRC subsidiaries are subject to periodic examinations on the fulfillment of tax obligations under the PRC tax laws and regulations by PRC tax authorities. If we fail to fulfill tax obligations for any reason, they may be subject to fines, other penalties or actions upon examinations by PRC tax authorities. As a result, our business, financial condition and results of operations may be adversely affected.

***If we become directly subject to the recent scrutiny, criticism and negative publicity involving U.S.-listed Chinese companies, we may have to expend significant resources to investigate and resolve the matter which could harm our operations and reputation and could result in a loss of your investment in the ADSs, especially if such matter cannot be addressed and resolved favorably.***

Recently, U.S. public companies that have substantially all their operations in China have been the subject of intense scrutiny, criticism and negative publicity by investors, financial commentators and regulatory agencies, such as the SEC. Much of the scrutiny, criticism and negative publicity has centered around financial and accounting irregularities, a lack of effective internal controls over financial accounting, inadequate corporate governance policies or a lack of adherence thereto and, in many cases, allegations of fraud. As a result of the scrutiny, criticism and negative publicity, the publicly traded stock of many U.S.-listed Chinese companies has sharply decreased in value and, in some cases, has become virtually worthless. Many of these companies are now subject to shareholder lawsuits and SEC enforcement actions and are conducting internal and external investigations into the allegations. It is not clear what effect this sector-wide scrutiny, criticism and negative publicity will have on our Company. If we become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we will have to expend significant resources to investigate such allegations and/or defend the Company. This situation may be a major distraction to our management. If such allegations are not proven to be groundless, our Company and business operations will be severely hampered and your investment in the ADSs could be rendered worthless.

***Similar to situations of many other countries***, ***it may be difficult for overseas regulators to conduct investigation or collect evidence within China if prohibited by PRC regulations.***

Shareholder claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigation initiated outside of China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the Unities States may not be efficient in the absence of a mutual and practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase difficulties faced by you in protecting your interests.

***You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us or our management named in the prospectus based on foreign laws.***

We are an exempt company incorporated under the laws of the Cayman Islands. In addition, substantial amount of our assets is located in mainland China and all of our executive officers and directors reside within mainland China for a significant portion of the time. As a result, it may be difficult for you to effect service of process upon us or those persons inside mainland China. It may also be difficult for you to enforce in U.S. courts judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against us and our officers and directors as none of them currently resides in the United States or has substantial assets located in the United States. In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of U.S. courts against us, or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state.

The recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. The PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other forms of written arrangement with the United States that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, the PRC courts will not enforce a foreign judgment against us or our directors and officers if they decide that the judgment violates the basic principles of PRC laws or national sovereignty, security or public interest. As a result, it is uncertain whether and on what basis a PRC court would enforce a judgment rendered by a court in the United States.

***The Hong Kong legal system embodies uncertainties which could limit the availability of legal protections.***

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As one of the conditions for the handover of the sovereignty of Hong Kong to China, China accepted conditions such as Hong Kong's Basic Law. The Basic Law ensured Hong Kong will retain its own currency (Hong Kong Dollar), legal system, parliamentary system and people's rights and freedom for fifty years from 1997. This agreement has given Hong Kong the freedom to function with a high degree of autonomy. The Special Administrative Region of Hong Kong is responsible for its own domestic affairs including, but not limited to, the judiciary and courts of last resort, immigration and customs, public finance, currencies and extradition. Hong Kong continues using the English common law system.

However, if the PRC attempts to alter its agreement to allow Hong Kong to function autonomously, this could potentially impact Hong Kong's common law legal system and may in turn bring about uncertainty in, for example, the enforcement of our contractual rights. This could, in turn, materially and adversely affect our business and operations. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the Hong Kong legal system, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements with our customers.

***Our Hong Kong subsidiary is subject to Hong Kong laws and regulations regarding data security, which could subject them to government enforcement actions and investigations, fines, penalties, and suspension or disruption of their operations.***

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Our Hong Kong subsidiaries, CZTI HK and Carbon Source HK, were incorporated in Hong Kong. Even though they do not have any substantive business operations in Hong Kong, they are still thus subject to laws and regulations in Hong Kong in respect of data privacy, data security, and data protection. The main legislation in Hong Kong concerning data security is the Personal Data (Privacy) Ordinance (Cap. 486 of the Laws of Hong Kong) (the "PDPO"), which regulates the collection, usage, storage, and transfer of personal data and imposes a statutory duty on data users to comply with the six data protection principles contained therein. Pursuant to section 33 of the PDPO, the PDPO is applicable to the collection and processing of personal data if such activities take place in Hong Kong, or if the personal data is collected by a data user whose principal place of business is in Hong Kong. As of the date of this prospectus, we and our Hong Kong subsidiary have complied with the laws and requirements in respect of data security in Hong Kong. Our directors confirm that: (i) each of our directors and our Hong Kong subsidiaries have not been involved in any litigation or regulatory action relating to breach of the PDPO; and (ii) they are not aware of any non-compliance incidents relating to breach of the PDPO since the date of incorporation of our Hong Kong subsidiaries. Since our PRC subsidiaries conduct substantially all of their business operations in the mainland China, we believe that the incumbent data security statutory requirements under Hong Kong laws do not materially affect their business. However, the laws on cybersecurity and data privacy are constantly evolving and can be subject to varying interpretations, resulting in uncertainties about the scope of our responsibilities in that regard. Failure to comply with the cybersecurity and data privacy requirements in a timely manner, or at all, may subject us or our Hong Kong subsidiary to consequences including but not limited to government enforcement actions and investigations, fines, penalties, and suspension or disruption of our Hong Kong subsidiary's operations.

***Any failure to comply with PRC regulations regarding the registration requirements for employee stock incentive plans may subject our share incentive plan participants or us to fines and other legal or administrative sanctions.***

In February 2012, the State Administration of Foreign Exchange, or SAFE, promulgated the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company, replacing earlier rules promulgated in 2007. Pursuant to these rules, PRC citizens and non-PRC citizens who reside in China for a continuous period of not less than one year and participate in any stock incentive plan of an overseas publicly listed company, subject to a few exceptions, are required to register with SAFE through a domestic qualified agent, which could be the PRC subsidiaries of such overseas-listed company, and complete certain other procedures. In addition, an overseas-entrusted institution must be retained to handle matters in connection with the exercise or sale of stock options and the purchase or sale of shares and interests. We and our executive officers and other employees who are PRC citizens or who reside in China for a continuous period of not less than one year and who have been granted options will be subject to these regulations when our company becomes an overseas-listed company upon the completion of this offering. Failure to complete SAFE registrations may subject them to fines and legal sanctions and may also limit our ability to contribute additional capital to our PRC subsidiaries and limit our PRC subsidiaries' ability to distribute dividends to us. The relevant regulations are still evolving and could restrict our ability to adopt additional incentive plans for our directors, executive officers and employees under PRC law. See "Regulations — Regulations Relating to Stock Incentive Plans."

In addition, the SAT has issued certain circulars concerning employee share options and restricted shares. Under these circulars, our employees working in China who exercise share options or are granted restricted shares will be subject to PRC individual income tax. Our PRC subsidiaries have obligations to file documents related to employee share options or restricted shares with relevant tax authorities and to withhold individual income taxes of those employees who exercise their share options. If our employees fail to pay or we fail to withhold their income taxes according to relevant laws and regulations, we may face sanctions imposed by the tax authorities or other PRC government authorities. See "Regulations — Regulations Relating to Stock Incentive Plans."

***Inflation in the PRC could negatively affect our profitability and growth.***

The economy of the PRC experienced significant growth, leading to inflation and increased labor costs. According to the National Bureau of Statistics of China, the year-over-year percent change in the consumer price index was (0.3%) in December 2023, 0.1% in December 2024 and 0.8% in December 2025. The PRC's overall economy and the average wage in the PRC are expected to continue to grow. Future increases in the PRC's inflation and material increases in the cost of labor may materially and adversely affect our profitability and results of operations unless we are able to pass on these costs to customers by increasing the price of services.

***The current tension in international trade, particularly with regard to U.S. and China trade policies, may adversely impact our business, financial condition, and results of operations.***

Although cross-border business may not be an area of our focus, if we implement plans to expand our business internationally in the future, any unfavorable government policies on international trade, such as capital controls or tariffs, may affect the demand for our products and services, impact our competitive position, or prevent us from being able to conduct business in certain countries. If any new tariffs, legislation, or regulations are implemented, or if existing trade agreements are renegotiated, such changes could adversely affect our business, financial condition, and results of operations.

Although the direct impact of the current international trade tension, and any escalation of such tension, on the renewable resources recycling industry in China is uncertain, the negative impact on general, economic, political and social conditions may adversely impact our business, financial condition and results of operations.

**Risks Related to Our Corporate Structure and Operations**

***We are a foreign private issuer within the meaning of the rules under the Exchange Act, and as such we are exempt from certain provisions applicable to U.S. domestic public companies.***

Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers, including:

● the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q or current reports on Form 8-K;

● the sections of the Exchange Act regulating the solicitation of proxies, consents, or authorizations in respect of a security registered under the Exchange Act;

● the sections of the Exchange Act subjecting insiders to liability for profits from trades made in a short period of time; and

● the selective disclosure rules by issuers of material nonpublic information under Regulation FD.

We will be required to file an annual report on Form 20-F within four months of the end of each fiscal year. Press releases relating to financial results and material events will also be furnished to the SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC will be less extensive and less timely compared to that required to be filed with the SEC by U.S. domestic issuers. As a result, you may not be afforded the same protections or information that would be made available to you were you investing in a U.S. domestic issuer.

***As a company incorporated in the Cayman Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices may afford less protection to shareholders than they would enjoy if we complied fully with corporate governance listing standards.***

As a foreign private issuer, we are permitted to take advantage of certain provisions in the Nasdaq listing standards that allow us to follow Cayman Islands law for certain governance matters. Certain corporate governance practices in the Cayman Islands may differ significantly from corporate governance listing standards as, except for general fiduciary duties and duties of care, Cayman Islands law has no corporate governance regime which prescribes specific corporate governance standards. Currently, we do not intend to rely on home country practice with respect to our corporate governance after we complete this offering. However, if we choose to follow home country practice in the future, our shareholders may be afforded less protection than they otherwise would have under corporate governance listing standards applicable to U.S. domestic issuers.

***We will incur increased costs as a result of being a public company, particularly after we cease to qualify as an "emerging growth company."***

Upon completion of this offering, we will become a public company and expect to incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act of 2002, as well as rules subsequently implemented by the SEC and Nasdaq, impose various requirements on the corporate governance practices of public companies. We expect these rules and regulations to increase our legal and financial compliance costs and to make some corporate activities more time-consuming and costlier.

As a result of becoming a public company, we will need to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures. We also expect that operating as a public company will make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. In addition, we will incur additional costs associated with our public company reporting requirements. It may also be more difficult for us to find qualified persons to serve on our board of directors or as executive officers. We cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs.

In addition, after we are no longer an "emerging growth company," we expect to incur significant expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404 of the Sarbanes-Oxley Act of 2002 and the other rules and regulations of the SEC.

***We may lose our foreign private issuer status in the future, which could result in significant additional costs and expenses.***

As discussed above, we are a foreign private issuer, and therefore, we are not required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act. The determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter. We would lose our foreign private issuer status if, for example, more than 50% of our outstanding voting securities are directly or indirectly held by residents of the U.S. and we fail to meet additional requirements necessary to maintain our foreign private issuer status. If we lose our foreign private issuer status on this date, we will be required to file with the SEC periodic reports and registration statements on U.S. domestic issuer forms, which are more detailed and extensive than the forms available to a foreign private issuer. We will also have to mandatorily comply with U.S. federal proxy requirements, and our officers, directors and principal shareholders will become subject to the short-swing profit recovery provisions of Section 16 of the Exchange Act. In addition, we will lose our ability to rely upon exemptions from certain corporate governance requirements under the Nasdaq listing rules. As a U.S. listed public company that is not a foreign private issuer, we will incur significant additional legal, accounting and other expenses that we will not incur as a foreign private issuer, and accounting, reporting and other expenses to maintain a listing on a U.S. securities exchange.

***The obligation to disclose information publicly may put us at a disadvantage to competitors that are private companies.***

Upon completion of this offering, we will be a public company in the United States. As a public company, we will be required to file periodic reports with the Securities and Exchange Commission upon the occurrence of matters that are material to our Company and shareholders. Although we may be able to attain confidential treatment of some of our developments, in some cases, we will need to disclose material agreements or results of financial operations that we would not be required to disclose if we were a private company. Our competitors may have access to this information, which would otherwise be confidential. This may give them advantages in competing with our Company. Similarly, as a U.S. public company, we will be governed by U.S. laws that our competitors, which are mostly private Chinese companies, are not required to follow. To the extent compliance with U.S. laws increases our expenses or decreases our competitiveness against such companies, our public company status could affect our results of operations.

***We are a "controlled company" within the meaning of the Nasdaq listing standards and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to shareholders of companies that are subject to such requirements.***

Immediately following this offering and the application of net proceeds from this offering, Mr. Baitong Tang through Expola Investment Limited, Beveist Investment Limited, Getcher Investment Limited, and Endoeval Investment Limited will control approximately 84.53% of the combined voting power of our equity interests through the ownership of ordinary shares, assuming no exercise of the underwriters' over-allotment option and including the assumed sale of 1,500,000 Shareholder ADSs. Because of the voting power of Mr. Baitong Tang, we are considered a "controlled company" for the purposes of Nasdaq. As such, we are exempt from certain corporate governance requirements of the Nasdaq Stock Market, including (i) the requirement that a majority of the board of directors consist of independent directors, (ii) the requirement that we have a Nominating and Corporate Governance Committee that is composed entirely of independent directors and (iii) the requirement that we have a Compensation Committee that is composed entirely of independent directors. Following this offering, we intend to rely on some or all these exemptions. As a result, we are exempt from having a majority of independent directors, so long as we are considered a "controlled company" under the Nasdaq Stock Market requirements. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all the corporate governance requirements of Nasdaq.

**Risks Related to the ADSs and this Offering**

***Trading of the ADSs will be prohibited in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if it is later determined that the PCAOB is unable to inspect and investigate completely our auditor. The delisting of and prohibition from trading the ADSs, or the threat of their being delisted and prohibited from trading, may cause the value of the ADSs to significantly decline or the ADSs to become worthless.***

Pursuant to the HFCAA, if the SEC determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspections by the PCAOB for two consecutive years, the SEC will prohibit the ADSs from being traded on a national securities exchange or in the over-the-counter trading market in the United States.

On December 18, 2020, the HFCAA was signed into law. The HFCAA has since then been subject to amendments by the U.S. Congress and interpretations and rulemaking by the SEC. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act (the "AHFCAA"), which proposes to reduce the period for foreign companies to comply with PCAOB audits from three to two consecutive years, thus reducing the time before the securities of such foreign companies may be prohibited from trading or delisted. On December 29, 2022, the Consolidated Appropriations Act, 2023 was signed into law, which contained, among other things, an identical provision to the AHFCAA, and reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three years to two.

The PCAOB issued a Determination Report on December 16, 2021 (the "Determination Report") which found that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong because of a position taken by one or more authorities in those jurisdictions. Furthermore, the Determination Report identified the specific registered public accounting firms which are subject to these determinations ("PCAOB Identified Firms"). The inability of the PCAOB to conduct inspections of auditors in China made it more difficult to evaluate the effectiveness of these accounting firms' audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors in issuers operating in China to lose confidence in such issuers' procedures and reported financial information and the quality of financial statements.

Our auditor, Marcum Asia, the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that are traded publicly in the United States and a firm registered with the PCAOB, is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Marcum Asia, whose audit report is included in this prospectus, is headquartered in New York, New York, and, as of the date of this prospectus, was not included in the list of PCAOB Identified Firms in the Determination Report.

On December 15, 2022, the PCAOB released a statement confirming it has secured complete access to inspect and investigate registered public accounting firms headquartered in mainland China and Hong Kong, and it issued the 2022 HFCAA Determination Report to vacate its precious determinations to the contrary. The PCAOB is continuing to demand complete access, and it will act immediately to reconsider such determinations should China obstruct, or otherwise fail to facilitate the PCAOB's access, at any time.

Further developments related to the HFCAA could add uncertainties to our offering. We cannot assure you what further actions the SEC, the PCAOB or the stock exchanges will take to address these issues and what impact such actions will have on companies that have significant operations in the PRC and have securities listed on a U.S. stock exchange (including a national securities exchange or over-the-counter stock market). In addition, any additional actions, proceedings, or new rules resulting from these efforts to increase U.S. regulatory access to audit information could create uncertainty for investors, the market price of the ADSs could be adversely affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement. Such a delisting would substantially impair your ability to sell or purchase the ADSs when you wish to do so and would have a negative impact on the price of our shares and the ADSs.

***There has been no public market for the ADSs prior to this offering, and you may not be able to resell the ADSs at or above the price you paid, or at all.***

We intend to apply to have the ADSs listed on the Nasdaq under the symbol "CZTI." Prior to this offering, there has been no public market for the ADSs. The initial offering price of the ADSs is the result of negotiations between us and the underwriters, and the initial offering price may differ significantly from the market price for the ADSs following the offering. There is no assurance that an active trading market for the ADSs will develop or that the market price for the ADSs will not decline below the initial public offering price.

***Because our initial public offering price is substantially higher than our net tangible book value per share, you will experience immediate and substantial dilution.***

If you purchase the ADSs in this offering, you will pay more for your ADSs than the amount paid by our existing shareholders for their ordinary shares on a per ADS basis. As a result, you will experience immediate and substantial dilution of approximately $11.33 per ADS, after giving effect to this offering and an assumed initial public offering price of $12.00 per ADS, the midpoint of the range set forth on the cover page of this prospectus. For more information on the dilution, you may experience as a result of investing in this offering, see "Dilution".

***The trading price of the ADSs is likely to be volatile, which could result in substantial losses to investors.***

The trading price of the ADSs is likely to be volatile and could fluctuate widely due to factors beyond our control. This may happen because of broad market and industry factors, including the performance and fluctuation of the market prices of other companies with business operations located mainly in China that have listed their securities in the United States. In addition to market and industry factors, the price and trading volume for the ADSs may be highly volatile for factors specific to our own operations, including the following:

● Actual or anticipated variations in our revenues, earnings, cash flow, and changes or revisions of our expected results;

● fluctuations in operating metrics;

● announcements of new investments, acquisitions, strategic partnerships, or joint ventures by us or our competitors;

● announcements of new products and services and expansions by us or our competitors;

● changes in financial estimates by securities analysts;

● announcements of studies and reports relating to the quality of our product and service offerings or those of our competitors;

● changes in the economic performance or market valuations of other companies in our industry;

● detrimental negative publicity about us, our competitors, or our industry;

● additions or departures of key personnel;

● regulatory developments affect us or our industry;

● general economic or political conditions in China or elsewhere in the world;

● negative publicity regarding Chinese listed companies;

● release or expiry of lock-up or other transfer restrictions on the ADSs;

● fluctuations of exchange rates between the RMB and the U.S. dollar; and

● potential litigation or regulatory investigations.

Any of these factors may result in large and sudden changes in the volume and price at which the ADSs will trade. Furthermore, the stock market in general experiences price and volume fluctuations that are often unrelated or disproportionate to the operating performance of companies like us. These broad market and industry fluctuations may adversely affect the market price of the ADSs. Volatility or a lack of positive performance in the price of the ADSs may also adversely affect our ability to retain key employees, most of whom have been granted equity incentives.

In the past, shareholders of public companies have often brought securities class action suits against companies following periods of instability in the market price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our business and operations and require us to incur significant expenses to defend the suit, which could harm our results of operations. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material adverse effect on our financial condition and results of operations.

***If securities or industry analysts cease to publish research or reports about our business, or if they adversely change their recommendations regarding the ADSs, the market price for the ADSs and trading volume could decline.***

The trading market for the ADSs will be influenced by research or reports that industry or securities analysts publish about our business. If one or more analysts who cover us downgrade the ADSs, the market price for the ADSs would likely decline. If one or more of these analysts cease to cover us or fail to regularly publish reports on us, we could lose visibility in the financial markets, which, in turn, could cause the market price or trading volume for the ADSs to decline.

***Our dual-class voting structure will limit your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders of our Class A ordinary shares and the ADSs may view as beneficial.***

Our authorized and issued ordinary shares are divided into Class A ordinary shares and Class B ordinary shares. Holders of Class A ordinary shares will be entitled to one vote per share, while the holder of Class B ordinary shares will be entitled to ten votes per share. Each Class B ordinary share is convertible into one Class A ordinary share at any time by the holders thereof, while Class A ordinary shares are not convertible into Class B ordinary shares under any circumstances.

As of the date of this prospectus, Mr. Baitong Tang beneficially owns 34,000,000 Class B ordinary shares and 3,215,296 Class A ordinary shares. Accordingly, Mr. Baitong Tang beneficially owns approximately 23.41% of our total issued and outstanding share capital. Since he is the sole director of Expola Investment Limited, Beveist Investment Limited, Getcher Investment Limited, and Endoeval Investment Limited, he owns the voting power of these four entities. Hence, he beneficially owns approximately 86.95% of the aggregate voting power of our total issued and outstanding share capital as of the same date due to the disparate voting powers associated with our dual-class share structure. As a result of the dual-class share structure and the concentration of ownership, the holder of Class B ordinary shares will have considerable influence over matters such as decisions regarding mergers and consolidations, election of directors, and other significant corporate actions. Such holders may take actions that are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay, or prevent a change in control of our company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium for their shares as part of a sale of our Company and may reduce the price of the ADSs. This concentrated control will limit your ability to influence corporate matters and could discourage others from pursuing any potential merger, takeover, or other change of control transactions that holders of Class A ordinary shares and ADSs may view as beneficial.

***The dual-class structure of our ordinary shares may adversely affect the trading market for the ADSs.***

Certain shareholder advisory firms have announced changes to their eligibility criteria for inclusion of shares of public companies on certain indices, including the S&P 500, to exclude companies with multiple classes of shares and companies whose public shareholders hold no more than 5% of total voting power from being added to such indices. In addition, several shareholder advisory firms have announced their opposition to the use of multiple class structures. As a result, the dual class structure of our ordinary shares may prevent the inclusion of the ADSs representing Class A ordinary shares in such indices and may cause shareholder advisory firms to publish negative commentary about our corporate governance practices or otherwise seek to cause us to change our capital structure. Any such exclusion from indices could result in a less active trading market for the ADSs. Any actions or publications by shareholder advisory firms critical of our corporate governance practices or capital structure could also adversely affect the value of the ADSs.

***The interests of Mr. Baitong Tang may conflict with ours or yours in the future.***

Various conflicts of interest between Mr. Baitong Tang and us could arise. Ownership interests of Mr. Baitong Tang in our Class B ordinary shares could create or appear to create potential conflicts of interest when Mr. Baitong Tang is faced with decisions that could have different implications for himself and us. These decisions could, for example, relate to:

● disagreement over corporate opportunities;

● management stock ownership;

● employee retention or recruiting;

● our dividend policy; and

● the services and arrangements from which we benefit as a result of our relationship with Mr. Baitong Tang;

Potential conflicts of interest could also arise if we enter any new commercial arrangements with Mr. Baitong Tang in the future.

***Substantial future sales or perceived potential sales of ADSs in the public market could cause the price of the ADSs to decline.***

Sales of ADSs in the public market after this offering, or the perception that these sales could occur, could cause the market price of the ADSs to decline. All ADSs sold in this offering will be freely transferable without restriction or additional registration under the Securities Act, and ordinary shares held by our existing shareholders may also be sold in the public market in the future subject to the restrictions in Rule 144 and Rule 701 under the Securities Act and the applicable lock-up agreements. There will be 3,335,000 ADSs (equivalent to 13,340,000 Class A ordinary shares) outstanding immediately after this offering, assuming no exercise of the underwriters' over-allotment option. In connection with this offering, our directors and executive officers and shareholders of our ordinary shares (except in the case of sales pursuant to the Resale Prospectus) have agreed with the underwriters not to offer, issue, sell, encumber, transfer or otherwise dispose of any of our securities, or ADSs representing our securities, for a period of six months after the completion of this offering, subject to certain exceptions. However, the underwriters may release these securities from the applicable lock-up restrictions at any time, subject to applicable regulations of the Financial Industry Regulatory Authority, Inc. ("FINRA"). Because these shareholders have paid a lower price per ordinary share than participants in this offering, when they are able to sell their pre-IPO shares under Rule 144, they may be more willing to accept a lower sales price than the IPO price. This fact could impact the trading price of the ADSs following the completion of the offering, to the detriment of participants in this offering. Under Rule 144, before our pre-IPO shareholders can sell their shares, in addition to meeting other requirements, they must meet the required holding period. To the extent shares are released before the expiration of the lock-up period and sold into the market, the market price of the ADSs could decline.

***We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of the ADSs for return on your investment.***

We currently intend to retain most, if not all, of our available funds and any future earnings after this offering to fund our development and growth. As a result, we do not expect to pay any cash dividends in the foreseeable future. Therefore, you should not rely on an investment in the ADSs as a source for any future dividend income.

Our board of directors has complete discretion as to whether to distribute dividends, subject to certain requirements of Cayman Islands law. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our directors. Under Cayman Islands law, a Cayman Islands company may pay a dividend out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts as they fall due in the ordinary course of business. Even if our board of directors decides to declare and pay dividends, the timing, amount and form of future dividends, if any, will depend on our future results of operations and cash flow, our capital requirements and surplus, the amount of distributions, if any, received by us from the Operating Entities, our financial condition, contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in the ADSs will likely depend entirely upon any future price appreciation of the ADSs. There is no guarantee that the ADSs will appreciate in value after this offering or even maintain the price at which you purchased the ADSs. You may not realize a return on your investment in the ADSs and you may even lose your entire investment in the ADSs.

***We have broad discretion in the use of the net proceeds from our initial public offering and may not use them effectively.***

To the extent (i) we raise more money than required for the purposes explained in the section titled "Use of Proceeds" or (ii) we determine that the proposed uses set forth in that section are no longer in the best interests of our Company, we cannot specify with any certainty the uses of such net proceeds that we will receive from our initial public offering. Our management will have broad discretion in the application of such net proceeds, including working capital and other general corporate purposes, and we may spend or invest these proceeds in a way with which our shareholders disagree. The failure by our management to apply these funds effectively could harm our business and financial condition. Pending their use, we may invest the net proceeds from our initial public offering in a manner that does not produce income or that loses value.

***You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law.***

We are an exempt company incorporated under the laws of the Cayman Islands. Our corporate affairs are governed by our memorandum and articles of association (as may be amended from time to time), the Companies Act (Revised) of the Cayman Islands, and the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by our minority shareholders and the fiduciary duties of our directors to us under Cayman Islands law are largely governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands and from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedents in some jurisdictions in the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United States. Some U.S. states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have the standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (other than the memorandum and articles of association and any special resolutions passed by such companies, and the register of mortgages and charges of such companies) or to obtain copies of lists of shareholders of these companies. Our directors have discretion under our amended and restated memorandum and articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

As a result of all of the above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of our board of directors or controlling shareholders than they would as public shareholders of a company incorporated in the United States. For a discussion of significant differences between the provisions of the Companies Act (Revised) of the Cayman Islands and the laws applicable to companies incorporated in the United States and their shareholders, see "Description of Share Capital - Differences in Corporate Law."

***Certain judgments obtained against us by our shareholders may not be enforceable.***

We are a Cayman Islands company and substantially all of our assets are located outside of the United States. In addition, none of our current directors and officers are nationals and residents of the U.S. Baitong Tang and Lili Guan are nationals or residents of the PRC; our director nominee Ho Ka Chun is a citizen of the United Kingdom, director nominee Victor Ten Tian Hock is a citizen of Singapore and director nominee Kenneth Charles Rumph is a citizen of the United Kingdom. A significant portion of their assets may be located outside the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in the United States if you believe that your rights have been infringed under the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers.

On July 14, 2006, the Supreme People's Court of China and the Government of the Hong Kong Special Administrative Region signed an Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters, or the 2006 Arrangement. Under such arrangement, where any designated People's Court or any designated Hong Kong court has made an enforceable final judgment requiring payment of money in a civil and commercial case pursuant to a choice of court agreement, any party concerned may apply to the relevant People's Court or Hong Kong court for recognition and enforcement of the judgment. On January 18, 2019, the Arrangement on Reciprocal Recognition and Enforcement of Judgments in Civil and Commercial Matters by the Courts of the Mainland and of the Hong Kong Special Administrative Region (the "2019 Arrangement") was signed between the Supreme People's Court of China and Hong Kong and effective on January 29, 2024, and the 2006 Arrangement has been superseded. The 2019 Arrangement establishes a bilateral legal mechanism with greater clarity and certainty for reciprocal recognition and enforcement of judgments between Hong Kong and the PRC in civil and commercial matters under both Hong Kong and PRC law. The 2019 Arrangement sets forth, among others, the scope, specific types of matters to be covered or excluded, jurisdictional grounds for the purpose of recognition and enforcement as well as grounds for refusal of recognition and enforcement. However, the 2006 Arrangement will remain applicable to a "choice of court agreement in writing" as defined in the 2006 Arrangement which is entered into before the 2019 Arrangement taking effect. As the 2019 Arrangement went effective relatively recently and its implementation and interpretation are still evolving, further, China does not have treaties providing for the reciprocal enforcement of judgments of courts with Japan, the United States, the United Kingdom or most other western countries, as a result, investors may have limited resources when they seek recognition and enforcement of judgments obtained from non-PRC counts against us or our Directors or officers who live in the PRC.

***There can be no assurance that we will not be a passive foreign investment company ("PFIC") for United States federal income tax purposes for any taxable year, which could subject United States holders of ADSs to significant adverse United States federal income tax consequences.***

A non-United States corporation will be a passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year if either (i) at least 75% of its gross income for such taxable year is passive income or (ii) at least 50% of the value of its assets (based on average of the quarterly values of the assets) during such year is attributable to assets that that produce or are held for the production of passive income. Based on the current and anticipated value of our assets and the composition of our income assets, we do not expect to be a PFIC for United States federal income tax purposes for our current taxable year ended December 31, 2022, or in the foreseeable future. However, the determination of whether we are a PFIC according to the PFIC rules is made on an annual basis and depends on the composition of our income and assets and the value of our assets from time to time. Therefore, changes in the composition of our income or assets or value of our assets may cause us to become a PFIC. The determination of the value of our assets (including goodwill not reflected on our balance sheet) may be based, in part, on the quarterly market value of ADSs, which is subject to change and may be volatile.

The classification of certain of our income as active or passive, and certain of our assets as producing active or passive income, and hence whether we are or will become a PFIC, depends on the interpretation of certain United States Treasury Regulations as well as certain guidance from the Internal Revenue Service, or IRS, relating to the classification of assets as producing active or passive income. Such regulations guidance is potentially subject to different interpretations. If due to different interpretations of such regulations and guidance the percentage of our passive income or the percentage of our assets treated as producing passive income increases, we may be a PFIC in one of more taxable years. If we are a PFIC for any taxable year during which a United States person holds ADSs, certain adverse United States federal income tax consequences could apply to such United States person.

***For as long as we are an emerging growth company, we will not be required to comply with certain reporting requirements, including those relating to accounting standards and disclosure about our executive compensation, that apply to other public companies.***

We are classified as an "emerging growth company" under the JOBS Act because we generated less than $1.235 billion in revenues for our last fiscal year. For as long as we are an emerging growth company, which may be up to five full fiscal years, unlike other public companies, we will not be required to, among other things, (i) provide an auditor's attestation report on management's assessment of the effectiveness of our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, (ii) comply with any new requirements adopted by the PCAOB requiring mandatory audit firm rotation or a supplement to the auditor's report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer, (iii) provide certain disclosure regarding executive compensation required of larger public companies, or (iv) hold non-binding advisory votes on executive compensation. We will remain an emerging growth company for up to five years, although we will lose that status sooner if we have more than $1.235 billion of revenues in a fiscal year, have more than $700 million in market value of the ADSs held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period.

To the extent that we rely on any of the exemptions available to emerging growth companies, you will receive less information about our executive compensation and internal control over financial reporting than issuers that are not emerging growth companies. If some investors find the ADSs to be less attractive as a result, there may be a less active trading market for the ADSs, and our share price may be more volatile.

***There may be substantial sales of ADSs by the Selling Shareholder after the effective date of this registration statement of which this prospectus forms a part, which could have a material adverse effect on the price of ADSs after this offering.***

The registration statement of which this prospectus forms a part also registers on behalf of the Selling Shareholder an aggregate of 1,500,000 ADSs representing 6,000,000 Class A ordinary shares issued to the Selling Shareholder previously issued by us. In connection with this offering and the Company's registration of the Shareholder ADSs, each of the Selling Shareholder may selling some portion (or even all) of their respective Shareholder ADSs. The Selling Shareholder, however, will not be required to sell any or all of their respective Shareholder ADSs. Sales of a substantial number of ADSs representing our Class A ordinary shares by the Selling Shareholder could cause the market price of ADSs to drop (possibly below the initial public offering price of the Public Offering ADSs in this offering) and could impair our ability to raise capital in the future by selling additional Company securities.

***If we fail to establish and maintain proper internal financial reporting controls, our ability to produce accurate financial statements or comply with applicable regulations could be impaired.***

Pursuant to Section 404 of the Sarbanes-Oxley Act, we will be required to file a report by our management on our internal control over financial reporting, including an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. However, while we remain an emerging growth company, we will not be required to include an attestation report on internal control over financial reporting issued by our independent registered public accounting firm. The presence of material weakness in internal control over financial reporting could result in financial statement errors, which, in turn, could lead to error our financial reports and/or delays in our financial reporting, which could require us to restate our operating results. We might not identify one or more material weaknesses in our internal controls in connection with evaluating our compliance with Section 404 of the Sarbanes-Oxley Act. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls over financial reporting, we will need to expend significant resources and provide significant management oversight. Implementing any appropriate changes to our internal controls may require specific compliance training of our directors and employees, entail substantial costs in order to modify our existing accounting systems, take a significant period of time to complete and divert management's attention from other business concerns. These changes may not, however, be effective in maintaining the adequacy of our internal control.

If we are unable to conclude that we have effective internal controls over financial reporting, investors may lose confidence in our operating results, the price of the ADSs could decline and we may be subject to litigation or regulatory enforcement actions. In addition, if we are unable to meet the requirements of Section 404 of the Sarbanes-Oxley Act, the ADSs may not be able to remain listed on the exchange.

***Our amended and restated memorandum and articles of association contain anti-takeover provisions that could have a material adverse effect on the rights of holders of ADSs.***

Our amended and restated memorandum and articles of association contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. Our board of directors has the authority, without further action by our shareholders, to issue authorized but unissued ordinary shares which could be issued quickly with terms calculated to delay or prevent a change in control of our company or make removal of management more difficult. If our board of directors decides to issue authorized but unissued ordinary shares, the price of the ADSs may fall and the voting and other rights of the holders of the ADSs may be materially and adversely affected.

***Certain recent initial public offerings of companies with smaller public floats have experienced extreme stock price run-ups followed by rapid price declines and stock price volatility seemingly unrelated to company performance. If such volatility were to occur to us it may prove difficult for prospective investors to assess the rapidly changing value of the ADSs.***

There have been instances of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with recent initial public offerings, especially among those with relatively smaller public floats. We may experience greater stock price volatility, extreme price run-ups, lower trading volume, and less liquidity than large-capitalization companies. In particular, the ADSs may be subject to rapid and substantial price volatility, low volumes of trades, and large spreads in bid and ask prices. Such volatility, including any stock run-ups, may be unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of the ADSs. If we encounter such volatility, it may prove difficult and confusing for prospective investors to assess the rapidly changing value of the ADSs and understand the value thereof.

In addition, if the trading volumes of the ADSs are low, persons buying or selling in relatively small quantities may easily influence the price of the ADSs. This low volume of trades could also cause the price of the ADSs to fluctuate greatly, with large percentage changes in price occurring in any trading day session. Holders of ADSs may also not be able to readily liquidate their investment or may be forced to sell at depressed prices due to low volume trading. Broad market fluctuations and general economic and political conditions may also adversely affect the market price of the ADSs. As a result of this volatility, investors may experience losses on their investment in the ADSs. A decline in the market price of the ADSs also could adversely affect our ability to sell additional ADSs or other of our securities and our ability to obtain additional financing in the future. There can be no assurance that an active market in the ADSs will develop or be sustained. If an active market does not develop, holders of the ADSs may be unable to readily sell the shares they hold or may not be able to sell their shares at all.

***ADS holders may not be entitled to a jury trial with respect to claims arising under the deposit agreement or related to the ADSs, which could result in less favorable outcomes to the plaintiff(s) in any such action.***

 ****

The deposit agreement governing the ADSs representing our Class A ordinary shares provides that, to the fullest extent permitted by law, ADS holders waive the right to a jury trial for any claim they may have against us or the depositary arising out of or relating to our shares, the ADSs or the deposit agreement, including any claim under the U.S. federal securities laws. You will not, by agreeing to the terms of the deposit agreement, be deemed to have waived our or the depositary's compliance with U.S. federal securities laws or the rules and regulations promulgated thereunder.

If we or the depositary were to oppose a jury trial based on this waiver, the court would have to determine whether the waiver was enforceable based on the facts and circumstances of the case in accordance with applicable state and federal law. To our knowledge, the enforceability of a contractual pre-dispute jury trial waiver in connection with claims arising under the federal securities laws has not been finally adjudicated by the United States Supreme Court. However, we believe that a contractual pre-dispute jury trial waiver provision is generally enforceable, including under the laws of the State of New York, which govern the deposit agreement, or by a federal or state court in the State of New York, which has nonexclusive jurisdiction over matters arising under the deposit agreement. In determining whether to enforce a contractual pre-dispute jury trial waiver, courts will generally consider whether a party knowingly, intelligently and voluntarily waived the right to a jury trial. We believe that this would be the case with respect to the deposit agreement and the ADSs. It is advisable that you consult legal counsel regarding the jury waiver provision before investing in the ADSs.

If you or any other owners or holders of the ADSs bring a claim against us or the depositary in connection with matters arising under the deposit agreement or the ADSs, including claims under U.S. federal securities laws, you or such other owners or holders may not be entitled to a jury trial with respect to such claims, which may have the effect of limiting and discouraging lawsuits against us or the depositary, and may lead to increased costs to bring a claim. If a lawsuit is brought against us or the depositary under the deposit agreement, it may be heard only by a judge or justice of the applicable trial court, which would be conducted according to different civil procedures and may result in different outcomes than a trial by jury would have, including outcomes that could be less favorable to the plaintiff(s) in any such action.

Nevertheless, if this jury trial waiver is not permitted by applicable law, an action could proceed under the terms of the deposit agreement with a jury trial. No condition, stipulation or provision of the deposit agreement or the ADSs serves as a waiver by any owner or holder of the ADSs or by us or the depositary of compliance with any substantive provision of the U.S. federal securities laws and the rules and regulations promulgated thereunder.

***The voting rights of holders of ADSs are limited by the terms of the deposit agreement, and you may not be able to exercise your right to direct the voting of the Class A ordinary shares represented by your ADSs.***

As an exempted company incorporated in the Cayman Islands, we are not obliged by the Companies Act (As Revised) to call shareholders' annual general meetings. Our amended and restated memorandum and articles of association provide that we may (but are not obliged to) each year hold a general meeting as our annual general meeting. As a holder of ADSs, you will not have any direct right to attend general meetings of our company or to cast any votes at such meetings. You will only be able to exercise the voting rights which attach to the Class A ordinary shares represented your ADSs indirectly by giving voting instructions to the depositary in accordance with the provisions of the deposit agreement. If we ask for your instructions, then upon receipt of your voting instructions, the depositary will try to vote the underlying Class A ordinary shares in accordance with those instructions. If we do not instruct the depositary to ask for your instructions, the depositary may still vote in accordance with instructions you give, but it is not required to do so. You will not be able to directly exercise any right to vote with respect to the underlying Class A ordinary shares unless you cancel the ADSs and withdraw the Class A ordinary shares and become the registered holder of such shares prior to the record date for the general meeting. When a general meeting is convened, you may not receive sufficient advance notice of the meeting to enable you to withdraw the shares represented by the ADSs and become the registered holder of such shares prior to the record date for the general meeting to allow you to attend the general meeting and to vote directly with respect to any specific matter or resolution to be considered and voted upon at the general meeting. In addition, under our amended and restated articles of association, for the purposes of determining those shareholders who are entitled to attend and vote at any general meeting, our directors may close our register of members and/or fix in advance a record date for such meeting, and such closure of our register of members or the setting of such a record date may prevent you from withdrawing the Class A ordinary shares represented by the ADSs and becoming the registered holder of such shares prior to the record date, so that you would not be able to attend the general meeting or to vote directly. Where any matter is to be put to a vote at a general meeting, the depositary will notify you of the upcoming vote and deliver our voting materials to you, if we ask it to. We cannot assure you that you will receive the voting materials in time to ensure you can direct the depositary to vote the Class A Ordinary share represented by your ADSs. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for their manner of carrying out your voting instructions. This means that you may not be able to exercise your right to direct how the shares underlying the ADSs are voted, and you may have no legal remedy if the shares represented by the ADSs are not voted as you requested.

***You may experience dilution of your holdings due to the inability to participate in rights offerings.***

We may, from time to time, distribute rights to our shareholders, including rights to acquire securities. However, we cannot make such rights available to you in the United States unless we register both the rights and the securities to which the rights relate under the Securities Act or an exemption from the registration requirements is available. Under the deposit agreement, the depositary will not distribute rights to holders of ADSs unless the distribution and sale of rights and the securities to which these rights relate are either exempt from registration under the Securities Act with respect to all holders of ADSs or are registered under the provisions of the Securities Act. The depositary may, but is not required to, attempt to sell these undistributed rights to third parties, and may allow the rights to lapse. We may be unable to establish an exemption from registration under the Securities Act, and we are under no obligation to file a registration statement with respect to these rights or underlying securities or to endeavor to have a registration statement declared effective. Accordingly, holders of the ADSs may be unable to participate in our rights offerings and may experience dilution of their holdings as a result.

***You may be subject to limitations on the transfer of the ADSs.***

The ADSs are transferable on the books of the depositary. However, the depositary may close its books at any time or from time to time when it deems it expedient in connection with the performance of its duties and in emergencies, and on weekends and public holidays. The depositary may refuse to deliver, transfer or register transfers of the ADSs generally when our share register or the books of the depositary are closed, or at any time if we or the depositary thinks it is advisable to do so because of any requirement of law or of any government or governmental body, or under any provision of the deposit agreement, or for any other reason.

***We and the depositary may amend the deposit agreement without consent from holders of ADSs and, if such holders disagree with our amendments, their choices will be limited to selling the ADSs or cancelling and withdrawing the underlying Class A ordinary Shares.***

We may agree with the depositary to amend the deposit agreement without consent from holders of ADSs. If an amendment increases fees to be charged to ADS holders or prejudices a substantial existing right of ADS holders, it will not become effective until 30 days after the depositary notifies ADS holders of the amendment. At the time an amendment becomes effective, ADS holders are considered, by continuing to hold their ADSs, to have agreed to the amendment and to be bound by the amended deposit agreement. If holders of ADSs do not agree with an amendment to the deposit agreement, their choices will be limited to selling the ADSs or cancelling and withdrawing the underlying Class A ordinary Shares. No assurance can be given that a sale of ADSs could be made at a price satisfactory to the holder in such circumstances.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements about our current expectations and views of future events, which are contained principally in the sections entitled "Prospectus Summary," "Risk Factors," "Use of Proceeds," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Industry Overview" and "Business." These forward-looking statements relate to events that involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from those expressed or implied by these statements.

You can identify some of these forward-looking statements by words or phrases such as "may," "will," "could," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "propose," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. The forward-looking statements included in this prospectus relate to, among other things:

● our goals and strategies;

● our business and operating strategies and plans for the development of existing and new businesses, ability to implement such strategies and plans and expected time;

● our future business development, financial condition and results of operations;

● expected changes in our revenues, costs or expenditures;

● our dividend policy;

● our expectations regarding demand for and market acceptance of our products and services;

● our expectations regarding our relationships with our clients, business partners and third-parties;

● the trends in, expected growth in and market size of the recycling industry in China and globally;

● our ability to maintain and enhance our market position;

● our ability to continue to develop new technologies and/or upgrade our existing technologies;

● developments in, or changes to, laws, regulations, governmental policies, incentives and taxation affecting our operations;

● relevant governmental policies and regulations relating to our businesses and industry;

● competitive environment, competitive landscape and potential competitor behavior in our industry; overall industry outlook in our industry;

● our ability to attract, train and retain executives and other employees;

● our proposed use of proceeds from this offering;

● the development of the global financial and capital markets;

● fluctuations in inflation, interest rates and exchange rates;

● general business, political, social and economic conditions in China and the overseas markets we have business;

● the future development of the COVID-19 pandemic and its impact on our business and industry; and

● assumptions underlying or related to any of the foregoing.

These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations and our actual results could be materially different from our expectations. Important risks and factors that could cause our actual results to be materially different from our expectations are generally set forth in "Prospectus Summary — Summary of Risk Factors," "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Business," "Regulation" and other sections in this prospectus. Moreover, we operate in an evolving environment. New risk factors and uncertainties emerge from time to time, and it is not possible for our management to predict all risk factors and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. You should read thoroughly this prospectus and the documents that we refer to with the understanding that our actual future results may be materially different from and worse than what we expect. We qualify all our forward-looking statements by these cautionary statements.

This prospectus contains information derived from government and private publications. These publications include forward-looking statements, which are subject to risks, uncertainties and assumptions. Although we believe the data and information to be reliable, we have not independently verified the accuracy or completeness of the data and information contained in these publications. Statistical data in these publications also include projections based on a number of assumptions. The Chinese renewable resources recycling industry may not grow at the rate projected by market data, or at all. Failure of these markets to grow at the projected rate may have a material and adverse effect on our business and the market price of our shares. In addition, the rapidly evolving nature of the recycling industry results in significant uncertainties for any projections or estimates relating to the growth prospects or future condition of our market. Furthermore, if any one or more of the assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. See "*Risk Factors — Risks Related to Our Business.*" Therefore, you should not place undue reliance on these statements.

You should not rely upon forward-looking statements as predictions of future events. The forward-looking statements in this prospectus are made based on events and information as of the date of this prospectus. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this prospectus and the documents that we refer to in this prospectus and have filed as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our actual future results or performance may materially differ from what we expect.

**USE OF PROCEEDS**

We estimate that we will receive net proceeds from this offering in the amount of approximately $36.7 million, or $42.2 million if the underwriters exercise their option to purchase additional ADSs in full, based on the assumed initial public offering price of $12.00 per ADS, the midpoint of the range set forth on the cover page of this prospectus, after deducting underwriting discounts, non-accountable expense allowance and estimated offering expenses payable by us and assuming the underwriter does not exercise the UPO to purchase up to a total of 166,750 ADSs. A $1.00 increase (decrease) in the assumed initial public offering price of $12.00 per ADS would increase (decrease) the net proceeds to us from this offering by approximately $3.1 million, assuming the number of Public Offering ADSs offered by us, as set forth on the front cover of this prospectus, remains the same and after deducting the estimated underwriting discounts, non-accountable expense allowance, and estimated expenses payable by us.

We currently intend to use the net proceeds from this offering for the following purposes:

● approximately 35.0%, or $12.8 million, is expected to be used to expand recycling operations in categories beyond household waste, ferrous metals, lithium batteries, and electronic devices, aiming to increase market share and expand the range of recycling services;

● approximately 25.0%, or $9.2 million, is expected to be used to expand our downstream operations to vertically extend our business operations, which include the dismantling of household appliances, plastic granulation, lithium batteries and automobiles;

● approximately 25.0%, or $9.2 million, is expected to be used for mergers and acquisitions involving downstream companies engaged in household appliance dismantling, plastic granulation, lithium battery recycling, and dismantling, among other related companies (As of the date of this prospectus, we have not identified, or engaged in any material discussions regarding, any potential target);

● approximately 5.0%, or $1.8 million, is expected to be used to enhance our research and development systems;

● approximately 5.0%, or $1.8 million, is expected to be used to increase employees' compensation and benefit packages, recruiting high-level talent, and investing in vocational training;

● approximately 5.0%, or $1.8 million, is expected to be used for other working capital and general corporate purposes.

The amounts and timing of any expenditures will vary depending on the amount of cash generated by our operations, and the rate of growth, if any, of our business, and our plans and business conditions. The foregoing represents our intentions as of the date of this prospectus based upon our current plans and business conditions to use and allocate the net proceeds of this offering. However, our management will have significant flexibility and discretion in applying the net proceeds of this offering. Unforeseen events or changed business conditions may result in application of the proceeds of this offering in a manner other than as described in this prospectus.

We will not receive any proceeds from the sale of the Shareholder ADSs by the Selling Shareholder that occur pursuant to the registration statement of which this prospectus forms a part.

**DIVIDEND POLICY**

Our board of directors has complete discretion as to whether to distribute dividends. In addition, our shareholders may by ordinary resolution declare a dividend, but no dividend may exceed the amount recommended by our board of directors. In either case, all dividends are subject to certain restrictions under Cayman Islands law, namely that we may only pay dividends out of profits or share premium, and provided that in no circumstances may a dividend be paid out of share premium if it would result in us being unable to pay our debts as they fall due in the ordinary course of business. Even if our board of directors decides to pay dividends, the form, frequency and amount will depend upon our future operations and earnings, cash flow, capital requirements and surplus, the amount of distributions, if any, received by us from our subsidiaries, general financial condition, contractual restrictions and other factors that our board of directors may deem relevant. If we pay any dividends on our ordinary shares, we will pay those dividends which are payable in respect of the ordinary shares represented by the ADSs to the depositary, as the registered holder of such ordinary shares, and the depositary then will pay such amounts to the ADS holders in proportion to the Class A ordinary shares represented by the ADSs held by such ADS holders, subject to the terms of the deposit agreement, net of the fees and expenses payable thereunder. See "Description of American Depositary Shares."

We have not previously declared or paid any cash dividend or dividend in kind. We do not have any plan to declare or pay any cash dividends in the foreseeable future after this offering. We intend to retain most, if not all, of our available funds and future earnings to operate and expand our business.

We are an exempt company with limited liability incorporated in the Cayman Islands. We rely principally on dividends distributed by our PRC subsidiaries and payments from the Operating Entities for our cash requirements, including distribution of dividends to our shareholders. Dividends distributed by our PRC subsidiaries are subject to PRC taxes.

In addition, PRC regulations may restrict the ability of our PRC subsidiaries to pay dividends to us and only allow a PRC company to pay dividends out of its accumulated distributable after-tax profits as determined in accordance with its articles of association and the PRC accounting standards and regulations. See "*Risk Factors — Risks Related to Doing Business in the PRC.*"

**CAPITALIZATION**

The following table sets forth our capitalization as of December 31, 2025:

● on an actual basis; and

● on an as adjusted basis to reflect the issuance and sale of the ADSs representing Class A ordinary shares by us in this offering of Public Offering ADSs at the assumed initial public offering price of $12.00 per ADS, the midpoint of the range set forth on the cover page of this prospectus, after deducting the estimated discounts to the underwriters, non-accountable expense allowance and the estimated offering expenses payable by us and assuming no exercise of the underwriters' over-allotment option and that the underwriter does not exercise the UPO to purchase up to a total of 166,750 ADSs.

You should read this table in conjunction with the information under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the related notes included elsewhere in this prospectus:

**(Amounts in thousands, except share data)**

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| | | |
|:---|:---|:---|
|  | **Actual** | **As Adjusted <br> for the <br> Offering** |
| Long-term loan | $13270 | $13270 |
| Class A ordinary shares, 4,900,000,000 shares authorized; 125,000,610 shares issued and outstanding, actual; 138,340,610 shares issued and outstanding, as adjusted; | $1 | $1 |
| Class B ordinary shares, 100,000,000 shares authorized, 34,000,000 shares issued and outstanding, actual; 34,000,000 shares issued and outstanding, as adjusted; | $- | $- |
| Additional paid-in capital | $1945 | $37094 |
| Statutory reserves | $1318 | $1318 |
| Accumulated deficit | $(8522) | $(8522) |
| Total shareholders' (deficit) equity | $(5258) | $29891 |
| Non-controlling interest | $3307 | $3307 |
| Total equity | $(1951) | $33198 |
| **Total capitalization** | $**11319** | $**46468** |

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A $1.00 increase (decrease) in the assumed initial public offering price of $12.00 per ADS would increase (decrease) each of additional paid-in capital, total shareholders' equity and total capitalization by $3.1 million, assuming the number of Public Offering ADSs offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discounts, non-accountable expense allowance and estimated expenses payable by us.

**DILUTION**

If you invest in the ADSs, your interest will be diluted for each ADS you purchase to the extent of the difference between the initial public offering price per ADS and our net tangible book value per ADS after this offering of the Public Offering ADSs. Dilution results from the fact that the initial public offering price per ordinary share is substantially in excess of the net tangible book value per ordinary share attributable to the existing shareholders for our presently outstanding ordinary shares. Because the Class A ordinary shares and Class B ordinary shares have the same dividend and other rights, except for voting and conversion rights, the dilution is presented based on all issued and outstanding ordinary shares, including Class A ordinary shares and Class B ordinary shares.

**Dilution to New Investors**

Our net tangible book value as of December 31, 2025 was in deficit of $6.5 million, or $(0.04) per ordinary share as of that date and $(0.16) per ADS. Net tangible book value represents the amount of our total consolidated assets (excluding intangible assets), less the amount of our total consolidated liabilities and noncontrolling interest. Dilution is determined by subtracting net tangible book value per ordinary share, after giving effect to the additional proceeds we will receive from this offering, from the assumed initial public offering price of $3.00 per ordinary share adjusted to reflect the ADS-to-ordinary share ratio, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The dilution calculation has taken into account the total ordinary shares of (i) 125,000,610 Class A ordinary shares and (ii) 34,000,000 Class B ordinary shares outstanding before completion of this offering.

Without taking into account any other changes in net tangible book value after December 31, 2025, other than to give effect to our sale of the ADSs offered in this offering at the assumed initial public offering price of $12.00 per ADS, after deduction of the underwriting discounts and commissions and estimated offering expenses payable by us and assuming no exercise of the underwriters' over-allotment option, our pro forma as adjusted net tangible book value as of December 31, 2025 would have been $28.7 million, or $0.17 per ordinary share and $0.67 per ADS. This represents an immediate increase in net tangible book value of $0.21 per ordinary share and $0.83 per ADS to the existing shareholders and an immediate dilution in net tangible book value of $2.83 per ordinary share and $11.33 per ADS to investors purchasing ADSs in this offering. The following table illustrates such dilution:

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| | | |
|:---|:---|:---|
|  | **Per Ordinary Share** | **Per ADS** |
| Assumed initial offering price | $3.00 | 12.00 |
| Net tangible book value as of December 31, 2025 | $(0.04) | (0.16) |
| Increase in net tangible book value attributable to the sale of the ADSs | $0.21 | 0.83 |
| Pro forma as adjusted net tangible book value after the offering | $0.17 | 0.67 |
| Amount of dilution in net tangible book value to new investors | $2.83 | 11.33 |

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A $1.00 increase (decrease) in the assumed public offering price of $12.00 per ADS would increase (decrease) our pro forma as adjusted net tangible book value after giving effect to this offering by $3.1 million, the pro forma as adjusted net tangible book value per ordinary share and per ADS after giving effect to this offering by $0.01 per ordinary share and $0.07 per ADS and the dilution in pro forma as adjusted net tangible book value per ordinary share and per ADS to new investors in this offering by $0.24 per ordinary share and $0.93 per ADS, assuming no change to the number of ADSs offered by us as set forth on the cover page of this prospectus, and after deducting underwriting discounts and commissions and other offering expenses.

The following table summarizes, on a pro forma as adjusted basis as of December 31, 2025, the differences between existing shareholders and the new investors with respect to the number of ordinary shares (in the form of ADSs or shares) purchased from us in this offering, the total consideration paid and the average price per ordinary share and per ADS paid before deducting the underwriting discounts and commissions and estimated offering expenses.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary Shares Purchased** | **Ordinary Shares Purchased** | **Total Consideration** | **Total Consideration** | | |
|  | **Number** | **Percent** | **Amount** | **Percent** | **Average<br> Price Per Ordinary**<br>**Share** | **Average<br> Price Per**<br>**ADS** |
| Existing shareholders | 159000610 | 92.26% | $1946000 | 4.64% | $0.01 | $0.05 |
| New investors | 13340000 | 7.74% | $40020000 | 95.36% | $3.00 | $12.00 |
| &nbsp;&nbsp;&nbsp;Total | 172340610 | 100.00% | $41966000 | 100.00% | $0.24 | $0.97 |

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The pro forma as adjusted information discussed above is illustrative only. Our net tangible book value following the completion of this offering is subject to adjustment based on the actual initial public offering price of the ADSs and other terms of this offering determined at pricing.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are incorporated under the laws of the Cayman Islands as an exempt company with limited liability. We are incorporated in the Cayman Islands to enjoy the following benefits: (a) political and economic stability; (b) an effective judicial system; (c) a favorable tax system; (d) the absence of exchange control or currency restrictions; and (e) the availability of professional and support services. However, certain disadvantages accompany incorporation in the Cayman Islands. These disadvantages include:

● the Cayman Islands has a less exhaustive body of securities laws than the United States and these securities laws provide significantly less protection to investors; and

● Cayman Islands companies may not have standing to sue before the federal courts of the United States.

Our constitutional documents do not contain provisions requiring that disputes, including those arising under the securities laws of the United States, among us, our officers, directors and shareholders, be arbitrated.

We conduct a significant portion of our operations in the People's Republic of China ("PRC"), and a significant portion of our assets are located in the PRC. None of our directors or executive officers are nationals or residents of the United States. Baitong Tang and Lili Guan are nationals or residents of the PRC; Ho Ka Chun is a citizen of the United Kingdom; Victor Ten Tian Hock is a citizen of Singapore; and Kenneth Charles Rumph is a citizen of the United Kingdom. A significant portion of their assets may be located outside the United States. Accordingly, it may be difficult or impossible for shareholders to effect service of process within the United States upon us or these individuals, or to enforce judgments obtained in United States courts against us or them, including judgments predicated upon the civil liability provisions of the United States federal securities laws or the securities laws of any state within the United States.

We have appointed Cogency Global Inc. as our agent upon whom process may be served in any action brought against us under the securities laws of the United States.

We have been advised by Ogier, our Cayman Islands legal counsel, that there is uncertainty as to whether the courts of the Cayman Islands would:

● recognize or enforce judgements against us of courts of the United States based on certain civil liability provisions of the securities laws of the United States or any state in the United States; and

● entertain original actions brought in the Cayman Islands against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

There is uncertainty regarding Cayman Islands law as to whether a judgment obtained from the United States courts under civil liability provisions of the securities laws will be determined by the courts of the Cayman Islands as penal or punitive in nature. If such a determination is made, the courts of the Cayman Islands are also unlikely to recognize or enforce the judgment against a Cayman Islands company. Because the courts of the Cayman Islands have yet to rule on whether such judgments are penal or punitive in nature, it is uncertain whether they would be enforceable in the Cayman Islands. There is no statutory enforcement in the Cayman Islands of judgments obtained in the United States, although the courts of the Cayman Islands will, in certain circumstances, recognize and enforce a foreign judgment, without any re-examination or re-litigation of matters adjudicated upon, provided such judgment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is given by a foreign court of competent jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is final;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is not in respect of taxes, a fine or a penalty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) was not obtained by fraud; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) is not of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands.

Subject to the above limitations, in appropriate circumstances, a Cayman Islands court may give effect in the Cayman Islands to other kinds of final foreign judgments such as declaratory orders, orders for performance of contracts and injunctions.

Our PRC legal counsel, Zhong Lun Law Firm, has advised us that there is uncertainty as to whether PRC courts would (i) recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States, or (ii) entertain original actions brought in each respective jurisdiction against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States. Our PRC legal counsel has advised us that the PRC Civil Procedures Law governs the recognition and enforcement of foreign judgments. PRC courts may recognize and enforce foreign judgments in accordance with the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. The PRC does not have any treaties or other agreements with the United States or the Cayman Islands that provide for the reciprocal recognition and enforcement of foreign judgments. According to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if they determine that the judgment violates the basic principles of PRC law or national sovereignty, security, or public interest. As a result, it is uncertain whether a PRC court would enforce a judgment rendered by a court in the United States or the Cayman Islands. Under the PRC Civil Procedures Law, foreign shareholders may originate actions based on PRC law against us in the PRC, if they can establish sufficient nexus to the PRC for a PRC court to have jurisdiction, and meet other procedural requirements, including, among others, the plaintiff must have a direct interest in the case, and there must be a concrete claim, a factual basis and a cause for the suit. It will be difficult for U.S. shareholders to originate actions against us in China in accordance with PRC laws because we are incorporated under the laws of the Cayman Islands and it will be difficult for U.S. shareholders, by virtue of holding ADSs, to establish a connection to China for a PRC court to have jurisdiction as required under the PRC Civil Procedures Law.

In addition, there is uncertainty as to whether the courts of the Cayman Islands or Hong Kong would (i) recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States or (ii) entertain original actions brought in the Cayman Islands or Hong Kong against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

Foreign judgments of United States courts will not be directly enforced in Hong Kong as there are currently no treaties or other arrangements providing for reciprocal enforcement of foreign judgments between Hong Kong and the United States. However, the common law permits an action to be brought upon a foreign judgment. A foreign judgment itself may form the basis of a cause of action since the judgment may be regarded as creating a debt between the parties to it. In a common law action for enforcement of a foreign judgment in Hong Kong, the enforcement is subject to various conditions, including but not limited to, that the foreign judgment is a final judgment conclusive upon the merits of the claim, the judgment is for a liquidated amount in civil matter and not in respect of taxes, fines, penalties, or similar charges, the proceedings in which the judgment was obtained were not contrary to natural justice, and the enforcement of the judgment is not contrary to public policy of Hong Kong. Such a judgment must be for a fixed sum and must also come from a "competent" court as determined by the private international law rules applied by the Hong Kong courts. The defenses that are available to a defendant in a common law action brought on the basis of a foreign judgment include lack of jurisdiction, breach of natural justice, fraud, and contrary to public policy. However, a separate legal action for debt must be commenced in Hong Kong to recover such debt from the judgment debtor. As a result, subject to the conditions regarding enforcement of judgments of United States courts being met, including but not limited to the above, a foreign judgment of United States of civil liabilities predicated solely upon the federal securities laws of the United States or the securities laws of any State or territory within the United States could be enforceable in Hong Kong.

**CORPORATE HISTORY AND STRUCTURE**

We are a Cayman Islands holding company and primarily conduct our operations in China through ABGreen Shenzhen, and its subsidiaries, as well as Carbon Source HK's PRC subsidiaries. In connection with this offering, we underwent a series of restructuring of our corporate structure, which primarily included:

● On July 21, 2022, CZTI Shenzhen acquired 75% equity interests in ABGreen Shenzhen.

● On July 13, 2023, we incorporated CZTI, our holding company, as an exempted company with limited liability under the laws of the Cayman Islands.

● On August 9, 2023, we incorporated CZTI HK in Hong Kong as a wholly owned subsidiary of CZTI.

● On August 30, 2023, we incorporated CZTI WFOE, our onshore holding company, as a wholly owned subsidiary of CZTI HK.

● On September 25, 2023, CZTI WFOE acquired the entire equity interests in CZTI Shenzhen.

Our current corporate structure does not contain any VIE structures in the PRC and neither we nor any of our subsidiaries have any current intention of establishing any VIEs in the PRC in the future. As of the date of this prospectus, substantially all our business is conducted by our PRC subsidiaries.

Our principal executive office is located at 8 Eu Tong Sen Street, #16-81, The Central, Singapore. Our telephone number at this address is +65 6592 7626. Our office address in China is Room 610, Block A, Bairuida Building, Banxuegang Avenue, Wanke City Community, Bantian Street, Longgang District, Shenzhen, China, 518100. Our telephone number at this address is +86 0755-23485305. Our registered office in the Cayman Islands is located at the office of Osiris International Cayman Limited, Suite #4-210, Governors Square, 23 Lime Tree Bay Avenue, PO Box 32311, Grand Cayman KY1-1209, Cayman Islands.

**Restructuring of Overseas Entities**

The following diagram illustrates our corporate structure as of the date of this prospectus:

![](formdrs_050.jpg)

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br> CONDITION AND RESULTS OF OPERATIONS**

*The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and the related notes included elsewhere in this prospectus. This discussion and analysis and other parts of this prospectus contain forward-looking statements based upon current beliefs, plans and expectations that involve risks and, uncertainties and assumptions. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this prospectus. You should carefully read the "Risk Factors" section of this prospectus to gain an understanding of the important factors that could cause actual results to differ materially from our forward-looking statements.*

**Overview**

Established in 2016, we, through our Operating Entities, are a technology driven renewable resources recycling company and system provider. We recycled approximately 46.1 million units of household waste since our inception to December 31, 2025, ranking first in China according to the CIC report. We purchase and sell recycled renewable resources, primarily waste ferrous metals and household waste and provide our renewable resources recycling platform and services based on an O2O (Online to Offline) model through online applications and offline sites. We believe that we are positioned as an innovative driving force in the traditional recycling business, leading the digitization of recycling ecosystems in mainland China. Our goal is to establish comprehensive, digitized, and standardized waste recycling services, covering all categories of recyclable materials.

Our first operating subsidiary in mainland China, ABGreen Shenzhen, was founded in 2016, and in 2017, we launched our proprietary technology software and applications Boolv ShouShou and Boolv Collect. As of December 31, 2025, more than 146,000 electrical and electronic appliance sales personnel are registered in our mini-program Boolv ShouShou and provide household waste and consumer electronics source information. More than 38,000 third-party recycling personnel who perform on-site collection of renewable resources are registered in our Boolv Collect app as of December 31, 2025, which allows registered recycling personnel to bid for and accept recycling orders by connecting with suppliers on our renewable resources recycling online system. In 2020, we launched our Boolv Sorting Center app for sourcing information on collection, inventory management, and settlement systems. The app is now used in third-party recycling stations, transit yards, and sorting centers, in addition to our sorting center.

In 2021, we launched our recycling and disposal of waste metallic resources business, which developed rapidly and became the recycling category that contributed to the largest percentage of our revenue in fiscal years 2024 and 2025. Our business scope currently includes waste metallic resource recycling, household waste recycling, pre-owned electronic sales, as well as downstream services such as metallic resource and household waste dismantling and disposal. Our main revenue is generated from waste metallic resources and household waste. In 2024 and 2025, our total revenues reached RMB4.5 billion and RMB5.8 billion, respectively, with a year-over-year growth of 28.9% in 2025 compared to 2024.

**Key Factors that Affect Operating Results**

Key factors affecting our results of operations include the following:

*Our Ability to Monetize and Profit Through Our Commercial Operations*

Our primary competitive strength lies in our core recycling network system, diverse sources of supply for waste and pre-owned goods, and a business coverage capability throughout the entire industry chain. As a result, we have been equipped with sourcing capabilities of stable and large-scale supply, which improves our bargaining power to downstream customers.

At present, our main product categories are ferrous metals and household waste consisting of waste household appliance, waste plastic and waste paper as well as scrap cars (together as "household waste"). In the future, we plan to expand into downstream disposal and dismantling business and other recycling categories such as lithium batteries, waste vehicle dismantling among others.

Growing our business revenue is our top strategic priority. We have a fully integrated online-offline sourcing network, complemented by our strategic partnerships with other ecosystem participants. Based on this advantage, we believe that the revenue and profit from the future downstream disposal and dismantling business will expand, thereby extending the Company's industrial chain and strengthening its overall value proposition.

*Our Ability to Leverage Technology to Improve Business Operations*

At present, our system integrates industry-leading technologies such as traceability management, data analysis, Internet of Things (IoT), location-based services (LBS), and unique product identifiers. We have developed the mini program Boolv ShouShou, and the mobile applications Boolv Collect and Boolv Sorting Center. Our digitized technology has empowered us and many traditional offline recycling stations to improve management standardization, data informatization, and accounting transparency capabilities.

We believe our digitized technology will connect more upstream suppliers and downstream dismantling companies to enter our O2O system, maintaining a high degree of user viscosity with them. We can also receive information on the amount of supply in the market through big data analysis and, as a result, support downstream dismantling enterprises to formulate disassembly plans to minimize its peak procurement and reduce costs. Furthermore, by understanding the demands of downstream enterprises, we are able to quickly and accurately supply renewable resources to the enterprises in need, thus reducing the inventory cycle and storage costs of recycling stations, transit yards, and sorting centers, increasing their turnover rate, achieving cost reduction and enhancing operational efficiency.

*Our Ability to Effectively Control Costs*

We aim to integrate recycling information nationwide in mainland China through digitization to enhance efficiency and reduce information acquisition costs. We plan to reduce fulfillment related recycling costs by precise recycling through technologies of Internet of Things (IoT) and location-based services (LBS). We also plan to reduce fulfillment cost by digitized delivery arrangement, inventory and exchanges management system through extensive utilization of our Boolv Sorting Center application.

We plan to reduce marginal marketing costs by expanding to more recycling stations, transit yards, and sorting centers, and onboarding more on-site recycling personnel.

Meanwhile, we plan to expand the recycling categories of the renewable resources to control merchandise costs. We have expanded the source of supply of renewable resources for a single recycling station from ferrous metals and waste household appliances to categories such as wastepaper and waste plastics. The scope of business would likely then expand into downstream dismantling, disposal, and renewable materials production to maximize the product value.

 **

**Results of Operations**

 

***For the years ended December 31, 2024 and 2025***

The following table summarizes the results of our operations for the years ended December 31, 2024 and 2025, respectively, and provides information regarding the dollar and percentage increase during such periods.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | | |
| | **2024** | **2024** | **2025** | **2025** | | |
| <br>**Statements of Income Data:** | **RMB** | **As %** <br> **of** <br> **Sales**  | **RMB** | **As %** <br> **of** <br> **Sales**  |<br>**Amount** <br> **Increase** <br> **Decrease**  |<br>**Percentage** <br> **Increase** <br> **Decrease**  |
|  | (In thousands of RMB, except for percentages) | (In thousands of RMB, except for percentages) | (In thousands of RMB, except for percentages) | (In thousands of RMB, except for percentages) | (In thousands of RMB, except for percentages) | (In thousands of RMB, except for percentages) |
| Product revenues-third parties | 4340034 | 96.8% | 5565708 | 96.4% | 1225674 | 28.2% |
| Product revenues-related parties | 134095 | 3.0% | 192820 | 3.3% | 58725 | 43.8% |
| Net service revenue-third parties | 9283 | 0.2% | 19380 | 0.3% | 10097 | 108.8% |
| Net service revenue-a related party | 226 | 0.0% | - | - % | (226) | (100.0)% |
| **Total revenues** | **4483638** | **100.0%** | **5777908** | **100.0%** | **1294270** | **28.9%** |
| **Operating expenses:** |  |  |  |  |  |  |
| Merchandise costs | 4402773 | 98.2% | 5716214 | 98.9% | 1313441 | 29.8% |
| Fulfillment expenses | 54341 | 1.2% | 17801 | 0.3% | (36540) | (67.2)% |
| Selling expenses | 3224 | 0.1% | 9963 | 0.2% | 6739 | 209.0% |
| General and administrative expenses | 27081 | 0.6% | 28692 | 0.5% | 1611 | 5.9% |
| Research and development expense | 1806 | 0.0% | 1914 | 0.0% | 108 | 6.0% |
| Impairment of long-term investment | 5250 | 0.1% |  | -% | (5250) | (100.0)% |
| Provision for credit loss | 4951 | 0.1% | 554 | 0.0% | (4397) | (88.8)% |
| **Total operating expenses** | **4499426** | **100.3%** | **5775138** | **100.0%** | **1275712** | **28.4%** |
| **(Loss) Income from operations** | **(15788)** | **(0.4)%** | **2770** | **0.1%** | **18558** | **(117.5)%** |
| Interest expenses | (7632) | (0.2)% | (11007) | (0.2)% | (3375) | 44.2% |
| Interest income | 787 | 0.0% | 424 | 0.0% | (363) | (46.1)% |
| Share of losses in equity method investments | (2216) | 0.0% | (1767) | 0.0% | 449 | (20.3)% |
| Gain from disposal of subsidiaries | 61 | 0.0% | 233 | 0.0% | 172 | 282.0% |
| Bargain acquisition gain | 863 | 0.0% |  | -% | (863) | (100.0)% |
| Other income (expenses), net | 3410 | 0.1% | (230) | 0.0% | (3640) | (106.7)% |
| **Total other expenses, net** | **(4727)** | **(0.1)%** | **(12347)** | **(0.2)%** | **(7620)** | **161.2%** |
| **Loss before income taxes** | **(20515)** | **(0.5)%** | **(9577)** | **(0.2)%** | **10938** | **(53.3)%** |
| Provision for income taxes | 4239 | 0.1% | 6046 | 0.1% | 1807 | 42.6% |
| **Net loss** | **(24754)** | **(0.6)%** | **(15623)** | **(0.3)%** | **9131** | **(36.9)%** |

---

***Revenues***

The following table sets forth a breakdown of our revenues for the periods indicated:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** | | |
|  | **2024** | **2024** | **2025** | **2025** | **Variance** | **Variance** |
|  | **RMB** | **% of** <br> **Sales**  | **RMB** | **% of** <br> **Sales**  | **Amount** <br> **Increase** <br> **(Decrease)**  | **Percentage** <br> **Increase** <br> **(Decrease)**  |
|  | (All amounts, other than percentages, in thousands of RMB) | (All amounts, other than percentages, in thousands of RMB) | (All amounts, other than percentages, in thousands of RMB) | (All amounts, other than percentages, in thousands of RMB) | (All amounts, other than percentages, in thousands of RMB) | (All amounts, other than percentages, in thousands of RMB) |
| **Product Revenues:** |  |  |  |  |  |  |
| Household waste – offline channel | 1410346 | 31.5% | 1617295 | 28.0% | 206949 | 14.7% |
| Ferrous metals – offline channel | 3061360 | 68.3% | 4140598 | 71.7% | 1079238 | 35.3% |
| Pre-owned electronic sales – offline channel | 407 | 0.0% |  | 0.0% | (407) | (100.0)% |
| Pre-owned electronic sales – online channel | 2016 | 0.0% | 635 | 0.0% | (1381) | (68.5)% |
|  | **4474129** | **99.8%** | **5758528** | **99.7%** | **1284399** | **28.7%** |
| **Net Service Revenues** |  |  |  |  |  |  |
| Regional service revenues | 3003 | 0.1% |  | 0.0% | (3003) | (100.0)% |
| System service revenues | 6506 | 0.1% | 19380 | 0.3% | 12874 | 197.9% |
|  | **9509** | **0.2%** | **19380** | **0.3%** | **9871** | **103.8%** |
| **Total** | **4483638** | **100.0%** | **5777908** | **100.0%** | **1294270** | **28.9%** |

---

For the year ended December 31, 2025, our total revenue was approximately RMB5,777.9 million, as compared to approximately RMB4,483.6 million for the year ended December 31, 2024, representing an increase of approximately RMB1,294.3 million, or 28.9%. The significant increase was mainly due to the increase in product revenue for the year ended December 31, 2025.

***Product Revenues***

The majority of our revenue comes from collection and sales of ferrous metals and waste products consisting of household waste including electronic wastes, waste plastic and waste paper as well as scrap vehicles through offline channels. Our household waste and ferrous metals collection process involve selection and collection of household waste and ferrous metals from location suppliers (recycling stations, transit yards, and sorting center) and sales to customers, primarily including downstream recycling centers and downstream dismantling enterprises. We present revenue generated from its product sales on a gross basis as the we have control of the goods and have the ability to direct the selection and collection of goods to obtain substantially all of the benefits and recognizes revenue at a point in time when control of the goods is transferred to the customers, which generally occurs upon acceptance by customers.

Our total product revenues increased by approximately RMB1,284.4 million, or 28.7%, from approximately RMB4,474.1 million for the year ended December 31, 2024 to approximately RMB5,758.5 million for the year ended December 31, 2025. The significant increase was mainly due to the increase in demand for ferrous metals for the year ended December 31, 2025. Pre-owned electronic sale from both online and offline channels accounted below 0.1% of our total product revenue for years ended December 31, 2024 and 2025.

Our product revenues from ferrous metals sales increased by approximately RMB1,079.2 million, or 35.3%, from approximately RMB3,061.4 million for the year ended December 31, 2024 to approximately RMB4,140.6 million for the year ended December 31, 2025. The increase was primarily attributed to an increase in recycling volume in the year ended December 31, 2025. For the years ended December 31, 2024 and 2025, we achieved a recycling volume of approximately 1.2 million tons and 1.9 million tons, respectively. However, the revenue growth attributable to increased recycling volume was offset by lower average selling price. For the year ended December 31, 2025, the average price for ferrous metals decreased by RMB517.4 per ton, or 19.5%, compared to the same period in 2024.

Household waste offline sales increased by approximately RMB207.0 million, or 14.7%, from approximately RMB1,410.3 million for the year ended December 31, 2024 to approximately RMB1,617.3 million for the year ended December 31, 2025. The increase was mainly due to a rise in sales volume. For the years ended December 31, 2024 and 2025, our recycling volume of household waste was approximately 12.3 million units and 14.2 million units, respectively. However, the average selling price for household waste slightly decreased by RMB0.1 per unit, or 0.1%, for the year ended December 31, 2025, compared to the same period in 2024. The decrease in the average selling price of the household waste was mainly due to expanding of household waste recycling business from waste household appliances to more diversified household waste, including waste paper for the year ended December 31, 2025, which generally carries a lower price.

***Net Service Revenues***

Our net service revenues primarily consist of regional service revenues, system service revenues. For the years ended December 31, 2024 and 2025, our net service revenues represented 0.2% and 0.3% of our total revenue, respectively.

Our net service revenues increased by approximately RMB9.9 million, or 103.8%, from approximately RMB9.5 million for the year ended December 31, 2024 to approximately RMB19.4 million for the year ended December 31, 2025. The increase was driven by an increase of approximately RMB12.9 million in system service revenue, partially offset by a decrease of approximately RMB3.0 million in the regional service revenue.

We charge a fixed system service fee from location suppliers for facilitating the house waste collection between the location supplier and householder. Our system service revenue increased by approximately 197.9% from RMB6.5 million for the year ended December 31, 2024 to RMB19.4 million for the year ended December 31, 2025 as we cooperated with larger commence platforms and was able to expand our customer base in the house waste recycle market.

We charged a fixed amount of regional service fees over the contractual period from certain regional partners for their utilization of our mobile applications to gather local waste household appliance information and share the market information to support their business operations. Starting from January 1, 2023, we no longer charged any new regional service with regional partners to promote the utilization of our system by our regional partners.

***Operating Expenses***

Operating expenses increased by approximately RMB1,275.7 million, or 28.4%, from approximately RMB4,499.4 million for the year ended December 31, 2024 to approximately RMB5,775.1 million for the year ended December 31, 2025. The increase in our operating expenses was mainly due to an increase in merchandise costs of approximately RMB1,313.4 million, offset by a decrease in fulfillment expenses of approximately RMB36.5 million, a decrease in provision for credit loss of approximately RMB4.4 million and impairment of long term investment of approximately RMB5.3 million.

*<u>Merchandise Costs</u>*

Merchandise costs primarily consist of cost of acquired waste products for recycling.

Merchandise costs increased by approximately RMB1,313.4 million, or 29.8%, from approximately RMB4,402.8 million for the year ended December 31, 2024 to approximately RMB5,716.2 million for the year ended December 31, 2025. The significant increase in the merchant costs was attributed to an increase in the volume of ferrous metals recycled. In addition, the Company offered competitive market prices to location suppliers in order to enhance the recycling volume and expand the market for the year ended December 31, 2025. For the years ended December 31, 2024 and 2025, the government grants of RMB212.9 million and RMB207.6 million, respectively, were related to the purchases of household waste and ferrous metals, which were recorded as reductions of the Company's respective merchandise costs. Since the local government has discretion in determining the amount of the government grants based on the local economic conditions and policies, there is no direct correlation between volumes of household waste transacted and the amount of related government grants. For the year ended December 31, 2025, merchandise costs as a percentage of total product revenue increased to 98.9% from 98.2% for the year ended December 31, 2024 and this ratio is currently expected to maintain at a similar level in the coming years, reflecting the Company's growth strategy to offer competitive market prices and attract higher recycling volume.

*<u>Fulfillment Expenses</u>*

Fulfillment expenses consist primarily of expenses incurred in operating the Company's technology infrastructure, waste collection, offline stores and warehouse operations, including reimbursement of the contractors' expenses attributable to purchasing, receiving, inspecting, packaging, lease expense for sorting centers and warehouse and equipment depreciation.

Fulfillment expenses decreased by approximately RMB36.5 million, or 67.2%, from approximately RMB54.3 million for the year ended December 31, 2024 to approximately RMB17.8 million for the year ended December 31, 2025. For the years ended December 31, 2024 and 2025, fulfillment expenses accounted for approximately 1.2% and 0.3% of our total product sales revenue, respectively. The decrease in fulfillment expense was due to significant reduction of reimbursement to the contractors for the year ended December 31, 2025. With the expansion of our waste recycling business, more location suppliers are willing to take on the fulfillment tasks, thereby reducing the fees we paid to outsourced contractors and individuals.

*<u>Selling and Marketing Expenses</u>*

Selling and marketing expenses consist primarily of marketing and channel promotion expenses, advertising expenses, shipping fees and payroll and related expenses for personnel involved in marketing and business development activities.

Selling expenses increased by approximately RMB6.7 million, or 209.0%, from approximately RMB3.2 million for the year ended December 31, 2024 to approximately RMB10.0 million for the year ended December 31, 2025. The increase in selling expenses was primarily related to an increase of RMB4.7 million in sales and marketing employee compensation, an increase of approximately RMB2.2 million in miscellaneous expenses, including office and business entertainment costs and an increase of approximately RMB1.6 million in shipping fees, partially offset by a decrease of approximately RMB1.8 million in advertisement.

 *<u>General and Administrative Expenses</u>*

General and administrative expenses consist primarily of personnel related expenses for general corporate functions, including accounting, finance, legal and human resources, costs associated with these functions including facilities and equipment depreciation expenses, rental and other general corporate related expenses.

General and administrative expenses increased by approximately RMB1.6 million, or 5.9%, from approximately RMB27.1 million for the year ended December 31, 2024 to approximately RMB28.7 million for the year ended December 31, 2025. The increase in general and administrative expenses was primarily related to an increase of approximately RMB2.0 million in depreciation and amortization, an increase of approximately RMB0.5 million of entertainment, and an increase of approximately RMB0.5 million of consulting fee, partially offset by a decrease of RMB1.2 million in employee compensation, a decrease of approximately RMB0.4 million in travel expenses.

 *<u>Research and Development ("R&D") Expenses</u>*

Our research and development expenses primarily consist of personnel-related costs directly associated with research and development, including salaries, welfare and other benefits, material expenses for research and development, and other expenses such as third-party contractor costs, an allocated portion of facility and information technology costs, and depreciation.

R&D expenses were approximately RMB1.8 million and RMB1.9 million for the years ended December 31, 2024 and 2025, respectively. The increase in R&D expenses was because we have increased personnel costs in fiscal 2025, which resulted in higher R&D expenses. For the years ended December 31, 2024 and 2025, the government grants of RMB nil and RMB0.2 million, respectively, were related to research and development of waste recycling and recorded as reductions of the Company's respective research and development expenses.

 ***(Loss) Income from Operations***

As a result of the foregoing, our income from operations amounted to approximately RMB2.8 million for the year ended December 31, 2025, as compared to a loss from operations of approximately RMB15.8 million for the year ended December 31, 2024.

 ***Interest Expenses***

Interest expenses were approximately RMB7.6 million and RMB11.0 million for the years ended December 31, 2024 and 2025, respectively. The increase was due to a higher loan balance during fiscal 2025 as compared to that in fiscal 2024.

 ***Interest Income***

Interest income was approximately RMB0.8 million and RMB0.4 million for the years ended December 31, 2024 and 2025, respectively. The Company increased interest-free loans to third parties, which resulted in lower interest income for the year ended December 31, 2025.

 ***Share of Losses in Equity Method Investments***

Share of losses in equity method investments were approximately RMB2.2 million and RMB1.8 million for the years ended December 31, 2024 and 2025, respectively, which were primarily related to the losses incurred by the equity method investee - Hubei Jinke.

  **

 ***Gain from Disposal of Subsidiaries***

  **

Gain from disposal of Shandong Jinyou Metal Technology Co. Ltd amounted to approximately RMB0.1 million for the year ended December 31, 2024. Gain from disposal of Xinshengtai (Jiangxi) Environmental Technology Co., Ltd. (formerly named Jiangxi Jingchuang scrapped vehicle recycling and dismantling Co., LTD) amounted to approximately RMB0.2 million for the year ended December 31, 2025.

 ***Other Income (expenses), Net***

Our other expenses, net was approximately RMB0.2 million for the year ended December 31, 2025 as compared to other income, net of approximately RMB3.4 million for the year ended December 31, 2024. The decrease of RMB3.6 million in other income was primarily attributable to less government grants received and an increase of RMB0.8 million in penalty expenses. For the year ended December 31, 2024, we received government grants with no designated purpose or obligation to perform of RMB4.6 million, however, we received only RMB1.6 million of government grants for the year ended December 31, 2025.

  ****

 ***Loss before Income Taxes***

For the years ended December 31, 2024 and 2025, our loss before income taxes was approximately RMB20.5 million and RMB9.6 million, respectively. The decrease was primarily attributable to the increase in revenues and decrease in fulfillment expenses and total other expenses, net discussed above.

 ***Provision for Income Taxes***

 <u>Cayman</u>

CZTI is incorporated in the Cayman Islands as an offshore holding Company and is not subject to tax on income or capital gain under the laws of Cayman Islands. Additionally, the Cayman Islands do not impose a withholding tax on payments of dividends to shareholders.

 <u>Hong Kong</u>

Under Hong Kong tax laws, CZTI HK and Carbon Source HK are subject to statutory income tax rate at 16.5% if revenue is generated in Hong Kong and there are no withholding taxes in Hong Kong on remittance of dividends.

<u>PRC</u>

Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. According to the relevant PRC tax policies, once an enterprise meets certain requirements and is identified as a small-scale minimal profit enterprise, the portion of its taxable income not more than RMB3 million is subject to a reduced effective rate of 5%, for the years ended December 31, 2024 and 2025. EIT grants preferential tax treatment to High and New Technology Enterprises ("HNTEs"). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. ABGreen Shenzhen, the Company's main operating subsidiary in PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning December 2021. ABGreen Shenzhen further renewed the "high-tech enterprise" tax status in 2024, and is entitled to the preferential income tax rate of 15% from 2021 to 2026. Jingchuang Metal was recognized as a HNTE on October 28, 2024 and is entitled to the preferential income tax rate of 15% for three years.

Our income tax expenses amounted to approximately RMB4.2 million and RMB6.0 million for the years ended December 31, 2024 and 2025, respectively.

***Net Loss***

As a result of the foregoing, we had net loss amounted to approximately RMB15.6 million for the year ended December 31, 2025, as compared to a net loss of RMB24.8 million for the year ended December 31, 2024.

**Liquidity and Capital Resources**

Substantially all our operations are conducted in China and all our revenue, expenses, and cash are denominated in RMB. RMB is subject to the exchange control regulation in China, and, as a result, we may have difficulty distributing any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert RMB into U.S. dollars. As of December 31, 2024 and 2025, cash and restricted cash of approximately RMB46.2 million and RMB47.1 million were fully held by the Company and its subsidiaries in PRC, respectively.

The Company is a holding company with no material operations of its own. We conduct our operations primarily through our subsidiary in China. As a result, the Company's ability to pay dividends depends upon dividends paid by our subsidiary. Our subsidiary in China is permitted to pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, our subsidiary is required to set aside at least 10% of its after-tax profits each year based on PRC accounting standards, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. The statutory reserve funds are not distributable as cash dividends. Remittance of dividends by our subsidiary out of China is subject to examination by the banks designated by State Administration of Foreign Exchange "SAFE". Our subsidiary has not paid dividends and will not be able to pay dividends until it generates accumulated profits and meets the requirements for statutory reserve funds. In addition, we would need to accrue and pay withholding taxes if we were to distribute funds from our subsidiary in China to us. We do not intend to repatriate such funds in the foreseeable future, as we plan to use the existing cash balance in PRC for general corporate purposes.

The Company's consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. For the years ended December 31, 2024 and 2025, the Company incurred net loss of approximately RMB24.8 million and RMB15.6 million, and net cash used in operating activities was approximately RMB68.4 million and RMB68.9 million, respectively. As of December 31, 2025, the Company had accumulated deficit of approximately RMB59.6 million, and working capital of approximately RMB0.4 million. Overall, the Company evaluates the adverse factors including the historical adverse financial performance, expected loss situation in a foreseeable period and start-up costs in new subsidiaries. Such conditions in the aggregate indicated a substantial doubt regarding the Company's ability to continue as a going concern.

The Company intends to meet the cash requirements for the next twelve months from the issuance date of consolidated financial statements through the following mitigation plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) Strengthening liquidity through secured financing: the Company has secured commitments for additional credit lines to support future operations, specifically including a RMB5.0 million facility from China Resources Bank (available March 2026) and a RMB8.0 million facility from China Guangfa Bank (available April 2026). Meanwhile, management is in active negotiations with lenders and intends to renew or rollover existing loans maturing after December 31, 2025, to maintain stable working capital levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Strategic support from creditors and key individuals: the Company has obtained letters of undertaking from other payables and lenders, who have committed not to demand repayment of outstanding balances in the short term, thereby preserving immediate cash reserves. Mr. Tang, Chairman of the Board of Directors and CEO, has agreed to sign a formal support letter, pledging to provide financial assistance and resources as necessary to ensure the Company's continued development and ability to meet its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) Enhancement of operating profitability: management has developed revised profit forecasts incorporating new, higher-margin business streams, specifically the distribution of "Tmall Trade-in" orders and the "Intelligent Recycling Bin" business. While the Company currently operates under a low-margin model, management's strategy focuses on scaling revenue to improve operational efficiency. As transaction volumes grow, fixed operating expenses will be more effectively absorbed, leading to improved net margins and sustainable cash flow from operations.

Taking into consideration all these actions mentioned above, management concluded that the substantial doubt on the Company's ability to continue as a going concern can be alleviated through the effective implementation of the mitigation plans. As a result, the management prepared the consolidated financial statements assuming the Company will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

However, we may need additional cash resources in the future if we experience changed business conditions or other developments and may also need additional cash resources in the future if we wish to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If we determine that the cash requirements exceed our amounts of cash on hand, we may seek to issue debt or equity securities or obtain a credit facility.

***Cash Flows***

***For the years ended December 31, 2024 and 2025***

The following summarizes the key components of our cash flows for the years ended December 31, 2024 and 2025.

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| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** |
|  | **(in thousands of RMB)** | **(in thousands of RMB)** |
| Net cash used in operating activities | (68418) | (68943) |
| Net cash used in investing activities | (3503) | (17578) |
| Net cash provided by financing activities | 109199 | 87438 |
| Net increase in cash and restricted cash | **37278** | **917** |

---

***Operating Activities***

Net cash used in operating activities was approximately RMB68.9 million for the year ended December 31, 2025. Net cash used in operating activities consisted of a net loss of approximately RMB15.6 million, a decrease of approximately RMB575.2 million in account payable due to timely payments to our suppliers, an increase of approximately RMB113.4 million in note receivable from our customers, a decrease of approximately RMB56.6 million in tax payable, a decrease of approximately RMB12.0 million in accrued expenses and other liabilities, partially offset by adjustments of non-cash items of approximately RMB10.9 million, a decrease of approximately RMB575.6 million in accounts receivable due to timely collection, a decrease of approximately RMB34.9 million in other receivable and other assets, an increase of approximately RMB33.1 million in note payable due to more borrowings with commercial banks, a decrease of approximately RMB25.7 million in inventories, and a decrease of approximately RMB26.9 million in advance to suppliers as more prepayment utilized in the merchandise purchase.

Net cash used in operating activities was approximately RMB68.4 million for the year ended December 31, 2024. Net cash used in operating activities consisted of a net loss of approximately RMB24.8 million, an increase of approximately RMB88.7 million in note receivable, an increase of approximately RMB83.6 million in accounts receivable due to more sales for the year ended December 31, 2024, an increase of approximately RMB18.0 million in other receivable and other assets due to more government grants receivable and security deposits made to our venders, a decrease of approximately RMB4.1 million in advance from customers, and a decrease of approximately RMB16.5 million in accrued expenses and other liabilities, offset by adjustments of non-cash items of approximately RMB20.2 million, an increase of approximately RMB85.1 million in advance to suppliers which was primarily resulted from significant advances to suppliers in our acquired business upon acquisition and utilized in the merchandise purchase for year ended December 31, 2024, an increase of approximately RMB35.3 million in account payable due to more household waste purchased for year ended December 31, 2024, an increase of approximately RMB25.6 million in tax payable and a decrease of approximately RMB2.1 million in inventories.

***Investing Activities***

Net cash used in investing activities was RMB17.6 million for the year ended December 31, 2025, which primarily consisted of purchase of property and equipment of approximately RMB2.1 million, loans to third parties of approximately RMB74.1 million, loans to related parties of approximately RMB39.9 million, deposits for acquisition of approximately RMB10.2 million, and deposit on long term investment of approximately RMB3.9 million, partially offset by collection from related parties loans of approximately RMB58.3 million and collection of loans to third parties of approximately RMB55.0 million.

Net cash used in investing activities was RMB3.5 million for the year ended December 31, 2024, which consisted of purchase of property and equipment of approximately RMB1.0 million, purchase of long term investment of approximately RMB7.0 million, loans to related parties of approximately RMB76.3 million, loans to third parties of approximately RMB45.7 million, partially offset by collection from related parties loans of approximately RMB60.7 million, collection of loans to third parties of approximately RMB58.1 million and cash obtained from acquisition subsidiaries of approximately RMB7.8 million.

***Financing Activities***

Net cash provided by financing activities was approximately RMB87.4 million for the year ended December 31, 2025, which consisted of proceeds from bank loans of approximately RMB189.0 million, proceeds short-term loans from related parties of approximately RMB136.2 million, proceeds from loan payable to third parties of approximately RMB88.1 million, proceeds from long-term loans from related parties of approximately RMB17.7 million, partially offset by repayment of bank loans approximately RMB 56.3 million, repayment of short-term loans from related parties of approximately RMB139.2 million, repayment of loan payable to third parties of approximately RMB106.1 million, repayment of long-term loan from related parties of approximately RMB40.5 million, and payment of deferred issuance costs of approximately RMB1.5 million.

Net cash provided by financing activities was approximately RMB109.2 million for the year ended December 31, 2024, which consisted of proceeds from short-term loans from related parties of approximately RMB27.9 million, proceeds from long-term related parties loans of approximately RMB25.6 million, proceeds from bank loans of approximately RMB115.5 million, proceeds from loan payable to third parties of approximately RMB64.5 million, partially offset by repayment of short-term loans from related parties of approximately RMB17.8 million, repayment of bank loans of approximately RMB17.6 million, repayment of long-term loan from related parties of approximately RMB15.2 million, repayment of loan payable to third parties of approximately RMB71.7 million and payment of deferred issuance costs of approximately RMB2.1 million.

**Capital Expenditures**

The Company made capital expenditures of approximately RMB1.0 million and RMB2.2 million for the years ended December 31, 2024 and 2025, respectively. Our capital expenditures were used for purchases of equipment and intangible assets. The Company will continue to make capital expenditures to meet the expected growth of its business.

**Contractual Obligations**

The Company had outstanding bank loans of RMB193.0 million as of December 31, 2025, respectively. The Company has also entered into operating lease agreements to rent sorting centers, warehouse and office spaces.

The following table sets forth our contractual obligations and commercial commitments as of December 31, 2025:

(All amounts, in thousands of RMB)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | **Total** | **Less than <br> 1 Year** | **1 – 3 <br> Years** | **3 – 5 <br> Years** | **More than <br> 5 Years** |
| Operating lease arrangements | 4106 | 1352 | 2040 | 714 |  |
| Bank loans <sup>(1)</sup> | 192990 | 188490 | 4500 |  |  |
| Loan payable to third parties <sup>(2)</sup> | 41118 | 35702 | 5416 |  |  |
| Due to related parties <sup>(3)</sup> | 36541 | 36541 |  |  |  |
| Long-term loan payable to related parties | 82889 |  | 82889 |  |  |
| Purchase commitment of long-term investment | 14736 | 14736 | - | - |  |
| **Total** | **372380** | **276821** | **94845** | **714** |  |

---

For our contractual obligations less than one year:

(1) Bank loans: As of the date of the prospectus, the Company has repaid
 RMB10.4 million of its aggregate RMB193.0 million loans through its working capital.

(2) Loan payable to third parties: As of the date of the prospectus,
 the Company has repaid RMB13.6 million of its aggregate RMB41.1 million loans through its working capital. For the rest loan balance,
 the Company expects to settle the balance in next year through its own working capital. On the other hand, the third-party lenders
 also confirmed on December 31, 2025 that the Company has the option to extend the original loan term over 1 year and repay the loan
 balance based on the Company's own working capital condition.

(3) Due to related parties: The Company owes a balance of approximately
 RMB5.4 million to its controlling shareholder Mr. Baitong Tang. Mr. Tang has, and agrees to continue to, provide financial support
 to the Company on an as-needed basis. The Company expects to settle the other due to related party balances within 12 months.

Giving effect to the bank loans and other financing activities, the Company believes that its existing working capital should sufficiently support its operations at current levels for at least the next twelve months.

**Off-Balance Sheet Arrangements**

There were no off-balance sheet arrangements for the years ended December 31, 2024 and 2025 and the year ended December 31, 2025 that have or that in the opinion of management are likely to have, a current or future material effect on our financial condition or results of operations.

**Research and development, patents and licenses, etc.**

See "*Our Business — Our Research and Development*" and "*Our Business — Intellectual Property*".

**Trend Information**

Other than as described elsewhere in this prospectus, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material adverse effect on our revenue, income from continuing operations, profitability, liquidity or capital resources, or that would cause our reported financial information not necessarily to be indicative of future operating results or financial condition.

**Critical Accounting Estimates**

We prepare our financial statements in conformity with U.S. GAAP. The preparation of these financial statements requires us to make estimates, judgments, and assumptions that can have a meaningful effect on the reporting of consolidated financial statements. We continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations because of changes in our estimates.

Critical accounting estimates are defined as those reflective of significant judgments, estimates and uncertainties, which may result in materially different results under different assumptions and conditions. The following descriptions of critical accounting estimates should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this Registration Statement.

When reading our consolidated financial statements, you should consider our selection of critical accounting policies, the judgment and other uncertainties affecting the application of such policies and the sensitivity of reported results to changes in conditions and assumptions. Our critical accounting policies and practices include revenue recognition. We believe the following accounting estimates involve the most significant judgments used in the preparation of our consolidated financial statements.

 ***Expected Credit Losses of Receivables***

In 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC Topic 326"), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Company has adopted this ASC Topic 326 and several associated ASUs on January 1, 2023 using a modified retrospective approach. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements. Accounts receivables are recognized and carried at original invoiced amount less an estimated allowance for credit losses. Most accounts receivable was collected within twelve months. The Company estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated economic conditions, customer-specific circumstances, recent payment history and other relevant factors. Delinquent account balances are written-off against the allowance for credit losses after management has determined that the likelihood of collection is not probable. As of December 31, 2024 and 2025, allowance for credit losses amount to RMB5.0 million and RMB3.6 million, respectively.

Other receivable and other assets primarily consist of government grants, security deposits made to customers and prepaid expenses, which are presented net of allowance for doubtful accounts. These balances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the balances to be impaired if the collectability of the balances becomes doubtful. The Company uses the loss-rate method to estimate the allowance for uncollectible balances. The Company considers the past collection experience, any changes in collection trends, the credit worthiness of counter parties, the contractual terms, current economic conditions, and expectation of future economic conditions. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. No allowance for credit losses was recorded as of December 31, 2024 and 2025.

Advances to suppliers primarily consist of advances to suppliers, which are presented net of allowance for doubtful accounts. These balances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Group considers the balances to be impaired if the collectability of the balances becomes doubtful. The Group uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management's best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2024 and 2025, allowance for credit losses was nil and RMB1.8 million.

***Revenue Recognition***

The Company adopted ASC 606 Revenue from Contract with Customers ("ASC606") for all periods presented. According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customer in an amount that reflects the consideration the Company expects to receive in exchange for those goods or services, after considering estimated sales return allowances, price concessions, discount and value added tax ("VAT"). Consistent with the criteria of ASC 606, the Company follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

The Company is a waste services company and revenues are generated primarily from sales of waste product and service that the Company offers to its customers. The Company also generates revenues from sales of pre-owned electronic products through offline and online stores it operates.

 **Product Revenues**

Household Waste and Ferrous Metals

The majority of the Group's revenue comes from recycle and sales of household waste, primarily consisting of electronic wastes ("E-waste"), waste plastic, waste paper and scrap cars (together as "household waste") and ferrous metals through offline channels. The Group's household waste and ferrous metals recycle process involves the selection and collection of household waste from location suppliers and sales to customers, primarily including recycling centers and industrial companies. The Group presents revenue generated from its product sales on a gross basis as the Group has control of the goods and has the ability to direct the selection and collection of goods to obtain substantially all the benefits and recognizes revenue at a point in time when control of the goods is transferred to the customers, which generally occurs upon acceptance by customers. The Group's contracts with customers are primarily on a fixed-price basis and generally do not contain a right of return or cancellable provisions.

Pre-owned Electronic Products

The Company also conducts sales of pre-owned electronic products through online and offline stores it operates. For online sales, the Company recognizes revenue from the sale of pre-owned electronic products through the online stores it operates. The Company utilizes external delivery service providers to deliver goods to its customers. The customers pay for the goods in advance. The Company presents revenue generated from its sales of pre-owned electronic products on a gross basis as the Company has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. Due to China's statutory requirement for seven (7) days return policy for all online purchase, revenues from online sales of pre-owned electronic products are recognized at the point of time when control is transferred, which typically happens upon seven (7) days after the acceptance. The Company's contracts with customers are primarily on a fixed-price basis. Product revenues are reduced by discounts and allowances provided to customers, which has been immaterial in the historical periods. After the seven (7) days, customers generally do not have the right to return product unless damaged or defective.

For sales of pre-owned electronic products through offline stores, the Company recognizes revenue at the point of time when customers pay and obtain control of the products.

The Company typically provides one-year standard product warranties on the pre-owned electronic products sold. Standard warranties are considered to be assurance type warranties and are not accounted for as separate performance obligations. The Company accrues estimated future warranty costs and charges to cost of revenues in the period that the related revenue is recognized, which has been immaterial in the historical periods. These estimates are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability and costs of repairing and replacing defective products.

 **Net Service Revenues**

 <u>Regional Service Revenues</u>

The Company utilizes its own APPs to gather local household waste information and shares the market information with regional partners to leverage their business with the Company's technical, operational and marketing supports. In return, the Company charged a fixed amount regional service fee over the contractual period from certain regional partners for the years ended December 31, 2023 and 2024. Starting from January 1, 2023, the Company no longer entered into any new regional service contracts with regional partners. For the years ended December 31, 2023 and 2024, the Company determined the performance obligation of regional service is satisfied over time as the regional partners simultaneously received and consumed the benefits of accessing to the Company's APP and the related technical, operational and marketing supports provided by the Company. The Company has enforceable right to payments for the work performed. Therefore, revenues for regional service were recognized over time based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. The Company used an input method based on cost incurred as the Company believes that this method most accurately reflected the Company's progress toward satisfaction of the performance obligation.

 <u>System Service Revenues</u>

The Company's APP facilitates the waste collection transaction between the location suppliers and householders. Location suppliers can collect the household waste from householders based on the waste information published by householder on the Company's APP. The Company charges a fixed system service fee from location suppliers for each successful waste collection transaction facilitated through the Company's APP. System service revenues are recognized at a point in time upon when the facilitation service is completed (i.e., at the time location suppliers confirms the collection of the household waste from householder). System service fees are not refundable.

**Internal Control over Financial Reporting**

As defined in the standards established by the PCAOB, a "material weakness" is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of our company's annual or interim financial statements will not be prevented or detected on a timely basis. In connection with the audits of our consolidated financial statements included in this Prospectus/Offer to Exchange, we and our independent registered public accounting firm identified two material weaknesses in our internal control over financial reporting as of December 31, 2025. The material weaknesses identified relate to (i) our Company's lacks of sufficient competent financial reporting and accounting personnel with appropriate understanding of U.S. GAAP and financial reporting requirements set forth by the SEC to design and implement key controls over financial reporting process to address complex U.S. GAAP accounting issues and related disclosures, in accordance with U.S. GAAP and SEC financial reporting requirements; and (ii) the lack of formal internal control policies and independent supervision function to establish formal risk assessment process and internal control framework.

Neither we nor our independent registered public accounting firm undertook a comprehensive assessment of our internal controls under the Sarbanes-Oxley Act for purposes of identifying and reporting any weakness in our internal controls over financial reporting. Had we performed a formal assessment of our internal controls over financial reporting or had our independent registered public accounting firm performed an audit of our internal control over financial reporting, additional material weaknesses or internal control deficiencies may have been identified.

To remediate our identified material weakness, we plan to adopt measures to improve our internal controls over financial reporting, including, among others: (i) hiring additional qualified accounting and financial personnel with appropriate knowledge and experience in U.S. GAAP and SEC reporting requirements, (ii) organizing regular training for our accounting staff, especially training related to U.S. GAAP and SEC reporting requirements, (iii) formulating U.S. GAAP accounting policies and procedures manual, which will be maintained, reviewed and updated, on a regular basis, to the latest U.S. GAAP accounting standards, and (iv) improving period end financial closing policies and procedures for preparation of consolidated financial statements. However, the implementation of these measures may not fully address these deficiencies in our internal control over financial reporting, and we cannot conclude that they have been fully remediated. Our failure to correct these deficiencies or failure to discover and address any other deficiencies could result in inaccuracies in our financial statements and impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis. Moreover, ineffective internal control over financial reporting could significantly hinder our ability to prevent fraud.

**Quantitative and Qualitative Disclosure about Market**

**Inflation Risk**

Inflationary factors, such as increases in personnel and overhead costs, could impair the Company's operating results. Although the Company does not believe that inflation has had a material impact on its financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on the Company's ability to maintain current levels of operating expense as a percentage of sales revenue if the revenues do not increase.

 **Foreign Currency Risk**

A majority of the Company's expense transactions are denominated in RMB and a significant portion of the Company's assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China ("PBOC"). Remittances in currencies other than RMB by subsidiaries in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Company's financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Company's business or results of operations. Currently, the Company's assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Company needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Company would receive from the conversion. Conversely, if the Company decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Company.

**Credit Risk**

Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, cash equivalents and restricted cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts at the balance sheet dates. As of December 31, 2024 and 2025, the aggregate amount of cash and restricted cash of RMB45.9 million and RMB47.1 million, respectively, was held at major financial institutions in mainland, PRC. The Company believes that no significant credit risk exists as all of the Company's cash and cash equivalents are held with PRC financial institutions that Company's management believes to be high credit quality. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for doubtful accounts based on the individual customer's and supplier's financial condition, credit history, and the current economic conditions.

 ***Interest Rate Risk***

Our exposure to interest rate risk primarily relates to the interest expenses on our bank borrowings. Our bank borrowing bears interest at fixed rates. We have not been exposed to, nor do we anticipate being exposed to, material risks due to changes in market interest rates. However, our future interest expenses may exceed expectations due to changes in market interest rates. Increased interest rates may have a material impact on our results of operations and financial condition. Historically, we have been charged annual interest rates of generally between 2.95% and 15.34% on average on our bank loans. Increased interest rates will have a direct impact on us by increasing our interest expenses and in turn decreasing our cash. As of December 31, 2025, we had approximately RMB193.0 million in bank borrowings. For illustrative purposes, if the interest rate charged on such bank borrowings were to increase by 1%, our interest expenses would increase by approximately RMB1.9 million on an annual basis. In addition, as increased interest rates would make it more costly for us to fund our operations by borrowing, we would need to take additional measures to maintain a healthy cash flow, such as by tightening our control over accounts payable and accounts receivable. We may do so by, for example, further negotiating credit terms with customers and suppliers. As a result, our accounts receivable may decrease and our accounts payable may increase to offset the impact of higher borrowing costs.

**INDUSTRY OVERVIEW**

*Unless otherwise noted, all the information and data presented in this section have been derived from an industry report commissioned by us and prepared by China Insights Consultancy, an independent research firm, entitled "Industry report on China's renewable resource recycling industry," dated April 28, 2026 (the "CIC Report"). China Insights Consultancy has advised us that the statistical and graphical information contained herein is drawn from its database and other sources. The following discussion contains projections for future growth, which may not occur at the rates that are projected or at all.*

**Overview of China's Renewable Resources Recycling Industry** 

Chinese renewable resource recycling industry experienced steady growth in the recent five years in terms of the weight of recycled resources. The market size of the renewable resource recycling industry, in terms of the weight of recycled resources, China, 2017-2027E is shown as below.

![](image_005.jpg)

*Source: CIC Report*

● Renewable resources include iron and steel scrap (waste ferrous metals), waste non-ferrous metals, plastic waste, waste papers, scrap tires, wasted household appliances, wasted consumer electronics, scrap vehicles, textile waste, scrap glass, and waste batteries. The Chinese renewable resource recycling industry experienced steady growth in terms of the weight of recycled resources in the recent five years. The industry recycled 418.1 million tons of waste in 2022, increasing from 283.2 tons in 2017 and representing a CAGR of 8.1% between 2017 and 2022, in which iron and steel scrap accounted for the majority. The weight of wasted batteries, wasted household appliances and wasted vehicles increased tremendously between 2017 and 2022 among all renewable resources in China, indicating a CAGR of 24.2%, 20.2%, and 10.5%, respectively.

● As the Chinese government proposes to realize carbon peak by 2030 and carbon neutrality by 2060, coupled with people's growing awareness of recycling resources in China, the Chinese resources recycling industry market is expected to see an upward trend in the future and market size is estimated to reach 590.3 million tons in 2027, registering a CAGR of 7.1% between 2022 and 2027.

*China's Waste Household Appliances and Waste Consumer Electronics Recycling Industry's Market Size – Weight* 

Waste household appliances and waste consumer electronics are two segments of the renewable resources recycling industry.

![](image_006.jpg)

![](formdrs_048.jpg)

*Source: CIC Report*

● Waste household appliances industry and the waste consumer electronics industry are two crucial segments of the renewable resources recycling industry in China. In terms of weight, these two industries recorded robust growth during the period from 2017 to 2022, increasing from 4.8 million tons in 2017 to 12.2 million tons in 2022, with a CAGR of 20.2% during the period. Given household appliances have the higher weight, the waste household appliances recycling industry enjoys the most share, and it rose from 4.8 million tons to 12.1 million tons, indicating a CAGR of 20.2% in the recent five years, while the waste consumer electronics recycling industry's figure increased to 34.2 thousand tons in 2022.

● As people gradually develop the habit of recycling waste electrical and electronic equipment, and since such materials contain valuable metal contents, the total market size of these two recycling industries is expected to increase to 21.8 million tons, and the wasted household appliances recycling market's figure is estimated to arrive at 21.7 million tons by 2027.

In terms of the recycled volume, the market size of China's wasted household appliances recycling industry reached 856.1 million units in 2022.

**Market Drivers of China's Renewable Resources Recycling Industry** 

*Emergence of Online Platforms* 

With the continuous development of the internet, the ability to collect and integrate information is becoming stronger, which also promotes the development of the renewable resources recycling industry. In this industry, internet platforms can help match supply and demand. By declaring recycling needs on the platform, professional recycling personnel receive information and collect items at the doorstep which not only solves the problem of low efficiency in information dissemination in the renewable resources recycling industry but also reduces operating costs for producers and provides consumers with more convenient recycling methods, achieving efficient renewable resources recycling. In addition, internet platforms make recycling information more transparent, which can effectively improve the price differences caused by information asymmetry and protect the rights and interests of enterprises and consumers.

*Expanding Volume of Renewable Resources* 

In recent years, with China's economic growth, the volume of renewable resources recycling in China has maintained an upward trend. For example, the recycled volume of waste household appliances increased from 331.9 million units in 2017 to 856.1 million units in 2022, representing a CAGR of 20.9%. The recycled volume of waste consumer electronics increased from 49.8 million units in 2017 to 128.8 million units in 2022, representing a CAGR of 20.9%. The growth of the relevant product's existing volume has created a large number of potential renewable resources for renewable resource recycling companies. The volume of renewable resources is estimated to continue to increase, further boosting China's renewable resources recycling industry.

*Favorable Government Policy* 

Supportive government policies and regulations are guiding the healthy and stable development of the industry. In China, government and relevant departments have issued a series of industry policies such as "the 14th Five-Year Plan for Circular Economy Development" to encourage strengthening the construction of the recycling and treatment system. The government and society pay close attention to the "dual carbon" issue. The rapid development of the renewable resources recycling industry can effectively reduce the total amount of carbon emissions, which plays an important role in achieving the "dual carbon" goals. Therefore, under the general direction of the "dual carbon" goals and the continued attention from the government and society, the renewable resources recycling industry will also usher in new development opportunities.

**Competitive Landscape of the China's Renewable Resources Recycling Industry** 

According to the CIC Report, most leading players are usually dominant in various renewable resource recycling sub-industries, such as water, waste electrical and electronic equipment, solid waste, among others. Most top recycling companies started their business with a specific focus. As they become leaders in their original domain, business expansion starts, and these forerunners gradually become comprehensive waste recycling solution providers. These companies would have a strong core business unit and diversified business portfolio, thus can receive stable profit while hedging risks. Companies are known for their expertise in certain domains, and the trust is expanded to other business conducted by the company.

China' renewable resources recycling industry is highly fragmented with over 90,000 companies operating in such business in 2022. In China, waste household appliances can be collected and recycled by different market players, including individual recycling personnel, online recycling platforms, household appliance producers with EPR, e-commerce platforms, and disassembly plants' self-established recycling platforms. Most waste household appliances are recycled by individual recycles given they have access to wasted household appliances nearby, but its market share is gradually overtaken by online recycling platforms because these platforms integrate increasing networks and well-trained recycling personnel to recycle all wasted appliances. Household appliance producers with EPR and e-commerce platforms gain popularity among people, but these platforms only handle specific wasted household appliances, while disassembly plants have poor recycling networks with no door-to-door recycling ability and usually rely on other recycling platforms. According to the CIC Report, we were the largest waste household appliance recycling platform in China in 2025, recycling approximately 46.1 million units of wasted household appliances since our inception to December 31, 2025 and generating a revenue of RMB 5.8 billion in 2025.

The following are the key success factors of China's renewable resources recycling industry:

● *Control over supply side resources*. The supply of recycling resources is one of the most critical parts of the value chain. Through years of development, leading companies have controlled over supply side resources and widely obtain the supply of recycling resources from various channels such as consumers, small merchants, and the manufacturers. The companies controlling access to a wide range of supply-side resources are more likely to surpass other rivals in the market.

● *Recycling and dismantling capabilities*. Market participants with capabilities to recycle and dismantle can help to provide stable raw material and quality assurance for downstream companies. Meanwhile, companies can further resource utilization rate, thereby increasing companies' profits. Moreover, market players with recycling and dismantling capabilities have advantages in recycling pollution control, which contributes to the sustainable development of society.

● *Online platform operation*. The layout of online platform operations has broadened a wider range of recycling channels, thereby opening the door to greater market opportunities. The information on recycling resources provided by online platform provides a channel for door-to-door recycling and improves recycling efficiency. Recourses recycling companies that deploy online channels are more likely to succeed.

● *Scale effects*. The realization of economies of scale in China's renewable resources recycling industry is particularly crucial. With the increase in the supply scale and inventory scale of recycled resources, companies can solidify and generate positive effects on bargaining power, enabling businesses to improve their price competitiveness in the market.

**Entry Barriers of the Chinese Renewable Resources Recycling Industry** 

*Qualification Barrier* 

According to China's regulations, enterprises need to obtain business and administrative approval before entering the renewable resource recycling industry. With increased market competition, it has become more challenging for new entrants to enter the industry. Additionally, in the downstream dismantling sector, as environmental laws become increasingly stringent, small and non-compliant dismantling plants within the renewable resource recycling industry will find it increasingly difficult to continue their operations, as there are significant industry qualifications barriers for the dismantling business.

*Capital Barrier* 

Most renewable resources recycling companies require a large amount of capital investment for construction of the recycling channel, plant construction, transportation, warehousing, and R&D. During operation, a large amount of labor and multi-regional logistics is required, leading to high requirements for capital. The renewable resources recycling companies require a large amount of capital investment in the early stage. As a result, the capital barrier has become one of the barriers for new entrants.

*Technology Barrier* 

The renewable resources recycling industry is a technology-intensive industry that integrates key technologies in energy conservation and environmental protection, which requires relatively high requirements for research and development experiments. The R&D and technical personnel accumulated over the years by leading companies are difficult to obtain by new entrants in a short period.

**BUSINESS**

**Our Mission**

To develop zero waste product solutions and contribute to a better living environment by leveraging technology.

**Overview**

***Who We Are***

Established in 2016, we, through our Operating Entities, are a technology driven renewable resources recycling company and system provider. We recycled approximately 46.1 million units of household waste since our inception to December 31, 2025, ranking first in China according to the CIC report. We purchase and sell recycled renewable resources, primarily waste ferrous metals and household waste, and provide our renewable resources recycling platform and services based on an O2O (Online to Offline) model through online applications and offline sites. We believe that we are positioned as an innovative driving force in the traditional recycling business, leading the digitization of recycling ecosystems in mainland China. Our goal is to establish comprehensive, digitized, and standardized waste recycling services, covering all categories of recyclable materials.

Through a combination of internet technology and offline recycling networks, we have established a digitized ecosystem, which includes the entire product lifecycle service solutions spanning from waste product pickup, sorting, disposal, and finally, reuse. Our digital pathway enables suppliers, enterprises, recycling personnel, and recycling sorting centers to efficiently implement the recycling and reuse of renewable resources.

Our first operating subsidiary in mainland China, ABGreen Shenzhen, was founded in 2016, and, in 2017, we launched our proprietary technology software and applications Boolv ShouShou and Boolv Collect. As of December 31, 2025, more than 146,000 electrical and electronic appliance sales personnel are registered in our mini-program Boolv ShouShou and provide waste household appliances and consumer electronics source information. More than 38,000 third-party recycling personnel who perform on-site collection of renewable resources are registered in our Boolv Collect app as of December 31, 2025, which allows registered recycling personnel to bid for and accept recycling orders by connecting with suppliers on our renewable resources recycling online system.

In 2017, our "O2O model of integration of irregular waste household appliances and consumer electronics recycling" received an award from the Global Environment Facility/Small Grants Program. In the same year, we were awarded the "Green Innovation Award" at the 10th International Conference on Electrical and Electronic Product Recycling Technology and Manufacturer Responsibility Extension.

In 2017, we became one of the first to be selected by Beijing Development and Reform Commission, Beijing Urban Management Commission, Beijing Municipal Commission of Commerce, and Beijing Economic and Information Technology Commission for the construction of a new recycling system for waste electrical and electronic equipment in Beijing. We also participated in the development of industry policies for electronic waste, mobile phones, and second-hand waste (including waste household appliances) to set national industry standards in China, including policies for green supply chain management, secure data erasing of used mobile phones, and the construction of an internet-based, second-hand product trading system. In 2020, we launched our Boolv Sorting Center app for sourcing information on collection, inventory management, and settlement systems. The app is now used in third-party recycling stations, transit yards, and sorting centers, in addition to our sorting center.

In 2021, we launched our recycling and disposal of waste metallic resources business, which developed rapidly and became the recycling category that contributed to the largest percentage of our revenue in fiscal years 2023 and 2024. In the same year, we obtained the "National High Tech Enterprise" title from Shenzhen Science and Technology Innovation Commission, Shenzhen Finance Bureau, and Shenzhen Taxation Bureau of the State Administration of Taxation of the PRC. In addition, we were honored to be listed by the Ministry of Commerce of China as a "Key Enterprise for Resources Recycling." These recognitions demonstrate our continued commitment to technology innovation, sustainability, and making a positive impact on the recycling industry.

In 2022, we established a waste vehicle dismantling system through our operating subsidiary ABGreen AnKang and began the application process for the license to recycle and dismantle waste vehicles, which we anticipated to be received in the second half of 2025. Recently, we acquired Xinshengtai (Jiangxi) Environmental Technology Co., Ltd. ("Xinshengtai (Jiangxi)") (Formerly named Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd), which has completed the filing of the Registration Certificate for Renewable Resource Recycling Operations with the Ministry of Commerce on August 15, 2024, and the Qualification Certificate for End-of-Life Vehicle Dismantling Enterprises (Certificate No. 3604822475) issued by the Jiangxi Provincial Department of Commerce on March 5, 2025. In May 2025, we transferred all the shares we held in Xinshengtai (Jiangxi) to Jiangxi New Difeng New Material Technology Co., LTD, a related party.

Our business scope currently includes waste metallic resource recycling, household waste recycling, pre-owned electronic sales, as well as downstream services such as metallic resources and household waste dismantling and disposal. Our main revenue is generated from waste metallic resources and household waste. In 2024 and 2025, our revenues reached RMB 4.5 billion and RMB 5.8 billion, respectively, with a year-over-year growth of 28.9% in 2025 compared to 2024.

***Our Offline Recycling System***

We purchase and sell recycled renewable resources, primarily waste metallic resources such as ferrous metals and household waste, generating approximately 99.8%, and 99.7% of our revenue from our offline operations in fiscal year 2024 and 2025, respectively. Recycling personnel perform an on-site collection of items through telephone communication with individual suppliers or traditional recycling outlets and deliver the collected renewable resources to recycling stations, transit yards, or sorting centers. In addition, individual suppliers or enterprise suppliers will send their renewable resources directly to recycling stations, transit yards, or sorting centers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Household waste: Recycling stations, transit yards, and sorting centers conduct unified classification, sorting, and allocation of the household waste. We purchase the household waste from such centers and sell to downstream platforms (such as third-party online second-hand platforms or offline second-hand markets) and dismantling and disposal enterprises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Waste metallic resources: We purchase waste metallic resources from traditional recycling personnel and traditional recycling outlets and conduct large-scale procurement and sales to downstream waste metal processing companies and steel mills.

*Recycling Station, Transit Yard, and Sorting Center Partners*

Since we began operations in 2016, we have established relationships with approximately 4,600 recycling stations covering over 500 cities (including county-level cities) nationwide in China as of December 31, 2025. In addition, we have established partnerships with approximately 369 transit yards and sorting centers, the majority of which are operated by third-party operators while one sorting center is operated by us. The recycling stations, transit yards, and sorting centers centralize and efficiently coordinate the supply, scheduling, storage, classification, and sales of renewable resources.

*Dismantling and Disposal Enterprise Partners* 

Currently, we have invested in a dismantling enterprise, Hubei Jinke, a PRC company of which ABGreen Shenzhen is a minority shareholder and we have also cooperated with 15 other dismantling enterprises. We believe our efficient sourcing network with stable and large-scale supply capacity to these downstream customers is recognized by many such dismantling enterprises, leading to a wide range of distribution channels for our recycled renewable resources.

Our offline operations are supported by our renewable resources recycling platform and services based on an O2O (Online to Offline) model through our online applications and technology.

***Our Technology***

We believe that innovation and technological advance are our core principles. We integrate industry-leading technologies such as traceability management, data analysis, and location-based services (LBS), as well as unique product identifiers. We utilize these technologies within our mobile applications, WeChat and Alipay mini-programs, and computer software.

**1. Mini-Program on WeChat and Alipay: Boolv ShouShou**

![A diagram of a mobile application Description automatically generated with medium confidence](formdrs_009.jpg)

Our Boolv ShouShou mini-program on WeChat and Alipay collects information on recycling waste household appliances, waste plastic, waste paper, and pre-owned electronic products. The application's primary users are sales personnel at electrical appliance and electronics stores, and end consumers. Sales personnel are paid a commission through the app by the Company if the registered waste or used household appliances and pre-owned electronic products by the sales personnel are then recycled successfully. We believe we are the only renewable resources recycling company in China that connects sales personnel to our software system. The commission-based system has generated a continuous increase in the number of sales personnel who become our source information providers.

**2. App: Boolv Collect**

![A blue cover with a cell phone Description automatically generated](formdrs_010.jpg)

Our Boolv Collect app allows registered recycling personnel who perform on-site collection of renewable resources to bid and accept recycling orders on our renewable resources recycling online system. After registered recycling personnel complete an order, we deduct an information service fee ranging from RMB 5 to RMB 10 per order from the payment to the recycling personnel. Our employees can also use this application to manage on-site recycling services, such as listing products, fulfilling orders, and providing local pickup and delivery services. As of December 31, 2025, Boolv Collect has over 38,000 registered recycling personnel who are associated with approximately 4,600 recycling stations that cover over 500 cities across the country.

**3. App: Boolv Sorting Center**

![](image_001.jpg)

Our Boolv Sorting Center application provides an inventory management system for recycling stations, transit yards, and sorting centers. The majority of such recycling stations, transit yards, and sorting centers are operated by third-party operators while one sorting center is operated by the Company. The app's operations include receiving goods, inventory checking, and sales management, and it can function as remote supervision and record real-time inventory statistics. Currently, this app is used in our recycling sorting stations and our partners' facilities.

***Our Technology and O2O Workflow***

The diagram and description below illustrate the major components of our online and offline workflow:

![](image_002.jpg)

Our technology system digitally integrates the steps of the renewable resources recycling life cycle. We have developed a unique venue through our mini-program Boolv ShouShou, with over 146,000 registered sales personnel from electrical appliance and electronics stores nationwide in China as of December 31, 2025. These sales personnel serve as our registered users and end consumers, providing daily recycling information for waste household appliances and pre-owned electronic products to our program. The end consumers also provide us with the recycling information for waste plastic and waste paper. Our system sends this data through our app Boolv Collect to targeted registered recycling personnel, who then arrange orders through our app and perform door-to-door pick up of the waste household appliances, waste plastic, waste paper, and pre-owned electronic products at the location of the consumer/supplier.

Our system generates strong value propositions for our registered recycling personnel and recycling stations, transit yards, and sorting centers. When registered with our system, recycling personnel can continuously receive sizable orders efficiently. Recycling stations, transit yards, and sorting centers receive daily renewable resource supply information from registered recycling personnel and up-to-date pricing information from our system. With our extensive network of downstream customers such as dismantling and disposal enterprises, online third-party second-hand sales platforms, offline second-hand markets and dismantling enterprises, we offer the recycling stations, transit yards, and sorting centers a quick turnaround and profit realization as we resell the standardized and sorted renewable resources to our downstream customers.

1. How to Place an Order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Offline: Users/suppliers place recycling orders through phone or instant messaging for door-to-door on-site pick-up by recycling personnel or deliver the recycled items directly to recycling stations, transit yards, or sorting centers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. C-end Users: Our C-end users/suppliers, which are generally individual users, place orders by first logging into WeChat or Alipay, then searching for the Boolv ShouShou mini-program to register recycling information of items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. B-end Enterprises: Our B-end users/suppliers, which generally are commercial enterprise users, place orders through their application programming interface with the Company, where enterprise users synchronize orders registered through the system. More than 146,000 electrical and electronic appliance sales personnel at commercial enterprises, however, are registered in our Boolv ShouShou mini-program and provide recycling information of items through Boolv ShouShou.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Third-party Platforms: Users/suppliers place orders through third-party platforms by using the Boolv ShouShou program link on the third-party platform's WeChat official account, official website, online shopping center, or other channels.

2. Procurement of Renewable Resources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Offline: Recycling personnel perform an on-site collection of items through telephone communication with individual suppliers or traditional recycling outlets and then deliver the collected renewable resources to recycling stations, transit yards, or sorting centers. Meanwhile, individual suppliers or enterprise suppliers will send their renewable resources directly to recycling stations, transit yards, or sorting centers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Household Waste: Recycling stations, transit yards, and sorting centers conduct unified classification, sorting, and allocation of the household waste. We purchase the household waste from such centers and sell to downstream platforms and dismantling and disposal enterprises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Waste Metallic Resources: We purchase waste metallic resources from traditional recycling personnel and traditional recycling outlets and conduct large-scale procurement and sales to downstream waste metal processing companies and steel mills.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Online: Recycling personnel download the Boolv Collect app through the app store or the ABGreen's (爱博绿) WeChat official account. After registering as our registered recycling personnel, they can find location-based recycling orders nearby through our Boolv Collect app and make appointments with suppliers for on-site evaluation and pick-up after confirming the receipt of the order. The recycled items that are collected and delivered by the recycling personnel will then be sold to and stored at recycling stations, transit yards, or sorting centers. After registered recycling personnel complete an order, we deduct an information service fee ranging from RMB 5 to RMB 10 per order from the payment to the recycling personnel.

3. Sorting and Sales of the Recycled Items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The recycling station, transit yard, or sorting center operators download the Boolv Sorting Center app through the app store or the ABGreen's (爱博绿) WeChat official account and register for use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Inventory Management and Sales:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) When renewable resources from upstream suppliers enter the recycling stations, transit yards, and sorting centers, the operators and management personnel at such centers will then enter the items into the Boolv Sorting Center app based on type, quantity, brand, among other classification categories, and initiate payment to the supplier through the app. Through our O2O process, we then purchase and uniformly resell the recycled items to steel mills and waste metal processing companies (for waste metallic resources), online and offline downstream second-hand sales platforms and markets, and dismantling and disposal enterprises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Sales to Second-hand Platforms and Markets: Renewable resources are sold to third-party online second-hand platforms or offline second-hand markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Sales to Dismantling and Disposal Enterprises: Renewable resources are also sold to dismantling and disposal enterprises, including Hubei Jinke.

4. Dismantling and Reuse. Hubei Jinke engages in the downstream businesses of dismantling and disposal, hazardous waste treatment, and recycled plastic granulation. It dismantles renewable resources into raw materials such as metallic resources and plastics by extracting precious metals such as gold and silver from dismantled materials such as circuit boards, and it also recycles and refines ternary cathode materials from lithium batteries. In addition, Hubei Jinke granulates and modifies the disassembled plastic into renewable and environmentally friendly raw materials. We then sell such processed, environmentally friendly renewable materials to production and manufacturing enterprises, forming a closed-loop service of the recycling supply chain from collection, disassembly and processing to reuse.

Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd is engaged in scrapped vehicle dismantling. The primary business involves purchasing scrapped household cars and motorcycles from offline suppliers, dismantling and sorting them into recyclable materials such as scrap aluminum, scrap copper, scrap iron, scrap plastic, and scrap sponge, and then selling these materials to corresponding downstream customers. Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd. was disposed on May 28, 2025.

***Our Recycling Categories, Scale and Financial Performance***

**1. Metallic Resources Recycling**

According to the CIC Report, our industry recycled 418.1 million tons of waste in 2022, increasing from 283.2 tons in 2017 and representing a CAGR of 8.1% between 2017 and 2022, in which iron and steel scrap (waste ferrous metals) accounted for the majority. Through the synergy in our O2O model between our technology driven online system and our extensive offline recycling network, the data from approximately 4,600 registered recycling stations in over 500 cities within our renewable resources recycling system as of December 31, 2025, indicated that these stations recycle a large amount of metallic resources. Our research and analysis indicated that waste metallic resources occupy a large market percentage of the renewable resources recycling industry and are characterized with easy standardization and high turnover rate. In 2021, based on our business expansion plan and downstream distribution channels of steel mills and waste metal processing enterprises, we expanded our business into recycling metallic resources. Since then, the waste metallic resources recycling business has become our largest source of revenue. In 2024, our sales revenue from reached RMB3,061.4 million and their recycling volume reached approximately 1.2 million tons. In 2025, our sales revenue from reached RMB4,140.6 million and their recycling volume reached approximately 1.9 million tons.

Compared to other waste metallic resources recycling companies in the market, we believe we have three major advantages:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. *National Recycling Network.* With regional coverage of more than 500 cities (including county-level cities) and approximately 4,600 recycling stations as of December 31, 2025, we are able to cover a diverse recycling sourcing network, quickly respond to sources of supply, and expand into the business of other recycling categories of renewable resources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. *Digitized Technology and Standardized Process for the Metallic Resources Recycling Industry.* We have the ability to track the management of the metallic resources' sources of supply, which ensures the procurement quality for downstream steel mills and waste metal processing enterprises. We believe our digitized technology and standardized process of recycling has enabled us to gain greater brand recognition, and business attachment to our upstream suppliers and downstream customers, and overall build trusting relationships with them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. *Established Downstream Network.* Our O2O system engages the entire life cycle of the renewable resources recycling industry, from recycling and sorting to dismantling and processing into renewable materials. Within our network, we have currently established strategic partnerships with over 10 large steel production enterprises.

**2. Household Waste**

We purchase household waste from online and offline upstream suppliers and uniformly resell the recycled items to online and offline downstream platforms and dismantling and disposal enterprises. In 2024, our recycling volume of household waste amounted to 12.3 million units, generating revenue of approximately RMB1,410.3 million. In 2025, our recycling volume of household waste amounted to 14.2 million units, generating revenue of approximately RMB 1,617.3 million.

**3. Pre-owned Electronic Products**

We also sell pre-owned electronic products through online and offline stores we operate. We utilize external delivery service providers to deliver goods to customers. In 2024, our revenue from the sales of pre-owned electronic products was approximately RMB0.4 million through our offline stores and RMB2.0 million through our online stores. In 2025, our revenue from the sales of pre-owned electronic products was approximately RMB0.6 million, all through our online stores.

**4. System Service Revenues**

Through our Boolv ShouShou mini-program on WeChat and Alipay, we collect information on waste household appliances, waste plastic, waste paper, pre-owned electronic electronics, and other products from sales personnel and users/suppliers. We then form orders, distribute the orders to registered recycling personnel through our app Boolv Collect, and arrange door-to-door pick-up. After successful pick-up, the registered recycling personnel pays an information service fee to our system. In fiscal 2024 and 2025, our system service revenue reached approximately RMB6.5 million and RMB19.4 million.

**5. Regional Service Revenues**

Utilizing the market information gathered through our mini-program and app, we provide comprehensive system services for regional business partners, including technical support services, brand promotion and operational services. As of January 1, 2023, we no longer enter into any new regional service contracts with regional partners. In fiscal 2024 and 2025, our regional service revenues from existing regional service contracts reached approximately RMB 3.0 million and nil, respectively.

***Market Opportunities in China for Creating a New Technology-Driven Infrastructure***

China's renewable resources recycling industry has grown steadily in the past several years. China's recycled renewable resources increased from 283 million tons in 2017 to 418 million tons in 2022, with a compound annual growth rate of 8.1% from 2017 to 2022, of which iron and steel scrap (waste ferrous metals) is the main recycled renewable resource.

In recent years with China's economic growth, the volume of household waste maintained an upward trend. For example, the recycled volume of waste household appliances increased from 331.9 million units in 2017 to 856.1 million units in 2022, representing a CAGR of 20.9%. The recycled volume of waste consumer electronics increased from 49.8 million units in 2017 to 128.8 million units in 2022, representing a CAGR of 20.9%. The growth of the relevant product's existing volume has created a large amount of potential renewable resources for recycling companies, boosting China's renewable resources recycling industry.

Supportive government policies and regulations are guiding the development of the industry. With the continuous promotion of pollution prevention and the continuous strengthening of environmental protection supervision, China's renewable resources recycling industry has shown rapid growth.

The traditional renewable resources recycling model mainly relies on scattered offline channels. Difficulties of information asymmetry in the renewable resources recycling industry currently exist, especially among consumers who lack awareness of where and how to sell used products. The wide range of selling scenarios in China decentralizes recycling, which fragments the recycling sources of supply and increases the difficulty of recycling renewable resources.

Online systems can help match supply and demand. By declaring recycling needs on an online system, professional recycling personnel receive information and collect items at the doorstep, which enhances efficiency in information dissemination and reduces operating costs for producers, providing consumers with more convenient recycling methods. In addition, internet systems make recycling information more transparent, which can effectively improve the price differentials caused by information asymmetry and protect the rights and interests of enterprises and consumers.

We believe the key to capturing the opportunity in the renewable resources recycling market in China is the creation of a new infrastructure defined by end-to-end coverage of the value chain. Compared to the traditional renewable resources recycling business model, our integrated renewable resources recycling system that combines both online management and offline stations has the advantage of improved efficiency, and its centralized sales model reduces timeline and steps of the sales process and increases profit. We believe our Company is well positioned to capitalize on this growing market and its trends.

**Our Competitive Strengths**

● **Extensive Nationwide Recycling Network:** We have established a renewable resources recycling network covering more than 500 cities (including county-level cities). Our network includes approximately 4,600 third-party recycling stations and more than 38,000 registered recycling personnel as of December 31, 2025. This capability allows end-to-end coverage for connecting the upstream suppliers to the downstream second-hand sales platforms and markets and dismantling and disposal enterprises. We believe our network offers us four major advantages:

○ Efficient Recycling: We allow complete on-site collection within 24 hours after users/suppliers place their orders for recycling, greatly improving service efficiency and establishing a leading competitive edge in nationwide recycling services in China.

○ Effective Sourcing of Supply: Leveraging the recycling service capabilities of our recycling network, we have access to a vast supply of waste products nationwide, enabling us to establish a leading supply capacity.

○ Full Category Business Expansion: With our existing network of third-party recycling stations, transfer yards, and sorting centers, we can efficiently expand our services to include other recycling categories, such as plastic waste recycling and textile waste recycling, thereby increasing revenue and profitability.

○ Cost Reduction and Efficiency Enhancement: Through strategic supply partnerships with over 15 downstream waste dismantling and disposal companies and more than 10 steel production companies, we ensure seamless integration of the entire life cycle of renewable resources, from collection to disposal and dismantling.

● **Tech-Driven Innovations:** Through a combination of internet technology and offline recycling networks, we have created a digitized recycling ecosystem comprising:

○ Boolv ShouShou for collection of recycling information from registered users;

○ Boolv Collect for convenient door-to-door recycling used by recycling personal; and

○ Boolv Sorting Center for refined classification of the recycled items used by recycling station, transit yard, and sorting center personnel to manage the collected renewable resources.

● **Industry-Leading Traceability System for Renewable Resources:** Our system provides key information such as product details, sources, destinations, and sales records, which are recorded data in the system, and technical support. Our system enables unique ESG traceability capabilities for renewable resources recycling and monitors and traces different processes of every business unit. Our objective is to collectively enhance corporate, environmental, and social value.

 We use our Boolv ShouShou mini-program to collect recycling information, including order sources, categories of waste, and quantity of waste. Recycling personnel will upload the collected information via the Boolv Collect mobile application. The recycling station, transit yard, and sorting center personnel use our Boolv Sorting Center mobile application to register order sources, categories, quantities, inventory management, and sales. We then use our Boolv Sorting Center application to allocate and sell renewable resources to the dismantling enterprises. The data collected from the above four processes primarily forms a full lifecycle of waste household appliance products from the user to the dismantling enterprises.

 The Ministry of Commerce of the People's Republic of China invited us to share and promote this traceability system to other local governments, and we were invited by companies in the same industry to share our system.

● **Empower Business Partners and Create a Diverse Ecosystem:** Given our industry knowledge and expertise as well as our business expansion and empowerment capabilities, we cooperate with numerous industry partners in the upstream supplier and downstream customer aspects of the renewable resources recycling industry. These partners are well established in China's renewable resources recycling industry in logistics, environmental protection equipment, and dismantling and disposal.

**Our Growth Strategies**

Our strategies aim to further grow our business as well as increase our penetration in the renewable resources recycling industry in China and globally. To accomplish this, we plan to leverage the strengths and capabilities of our renewable resources recycling platform to achieve organic growth and to search for new opportunities to expand our renewable resources recycling categories and integrate additional business segments:

● **Innovation Driven Growth Strategies:** By improving our current applications and developing more widely applicable digital tools, we plan to strengthen our technology innovation and research and development capabilities, increase investments in digital technology, and emphasize our research on data analysis, traceability management, Internet of Things (IoT) and location-based services (LBS), unique product identifiers, and digital supply chain technologies required by our industry. We aim to grow our user base and promote innovation and enhance capabilities of our technology system and recycling ecosystem.

● **Online and Offline Customer Growth**: We intend to expand our range of customer services through both online and offline growth approaches. By establishing a larger network of third-party physical locations that integrate with our online systems, we aim to cover more cities and connect with more upstream supply channels, such as towns and communities for sourcing renewable resources. We believe this approach will ultimately expand our downstream distribution channels as well. In the next three years, we plan to add approximately 2,000 traditional offline recycling stations and to expand to cover over 6,500 offline recycling stations.

● **Expanding into the United States and Southeast Asian markets:** We are actively expanding our renewable resources recycling operations into the United States and strategic Southeast Asian markets to capture high-value growth. We are targeting premium U.S. markets driven by strict net-zero mandates, while establishing localization hubs in Southeast Asia to leverage cost-efficient feedstock and new Extended Producer Responsibility (EPR) laws, ultimately creating a cross-continental synergy that maximizes profitability.

● **Expand Recycling Categories and Integrate Business Chain:** Increasing revenue and enhancing margin are our top business development priorities. We plan to continue expanding the scope of our recycling services to cover a wider range of renewable resources categories. These categories include not only waste metallic resources and household waste, but also lithium-ion batteries. By establishing or acquiring a dismantling business, we can extend our business chain from "collection – classification - resale" to include environmentally-sound dismantling. This extension would enable us to increase our gross profit margin, improve profitability and strengthen our value proposition in the industry. For example, an entity in which we previously held equity interests, Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd, completed the filing of the Registration Certificate for Renewable Resource Recycling Operations with the Ministry of Commerce on August 15, 2024, and the Qualification Certificate for End-of-Life Vehicle Dismantling Enterprises (Certificate No. 3604822475) issued by the Jiangxi Provincial Department of Commerce on March 5, 2025. Furthermore, our recent investment in Hubei Jinke has expanded our business scope, including waste household appliance dismantling and hazardous waste disposal. We plan to increase the proportion of downstream disposal and dismantling segments in the Company's total revenue and profit, overall extending the Company's value chain.

● **Strengthen Business Collaborations:** We believe that connecting with a wider network of business partners is a key driver of our future growth. We plan to collaborate with major manufacturing enterprises to diversify our B2B sourcing network. Furthermore, we aim to establish partnerships with various third-party systems, including property management, appliance repair, home cleaning, and charitable foundations, leveraging their "at-home service" capabilities to expand our sourcing network and user base.

● **Support ESG Sustainable Growth:** ESG principals have become a crucial concept for enterprises globally, and China has implemented policies requiring annual ESG accountability reports from companies nationwide. By supporting compliance and consistency with ESG principles in our business model, we believe we will attract more customers and business collaboration to support our ultimate mission of zero waste product solutions.

● **Participation in Carbon Trading:** In 2021, China launched the world's largest carbon emissions trading system, which will play a fundamental role in reducing carbon emissions. We plan to capitalize on the data and information we collect via our system to accumulate carbon quotas for future profit growth by participating in international/domestic carbon markets. On September 11, 2023, we have obtained a Product Carbon Footprint Certification/PCF Certification of Registration in the PRC from Auburn Inspection & Certification Group Co., Ltd.

**Competition**

The renewable resources recycling industry in China is rapidly evolving and increasingly competitive. Most leading recycling companies began their business with a focus on a specific sub-sector of the industry, such as water, solid waste, waste electrical and electronic equipment, among others. As they become leaders in their original domain, business expansion starts, and these forerunners gradually become comprehensive waste recycling solution providers. According to the CIC report, we are the only company in China to have fully connected the entire industry chain by establishing a nationwide recycling system and having comprehensive regional disassembly capabilities. Competitors in the upstream recycling sector include traditional recycling stations and similar platforms. In the downstream recycling sector, there are competitors such as environmentally sound dismantling companies. We recycled approximately 46.1 million units of household waste since our inception to December 31, 2025.

**Our Suppliers**

We procure renewable resources from registered recycling personnel through our Boolv Shoushou mini-program, also from traditional offline recycling personnel and traditional offline recycling outlets, and from individual suppliers or enterprise suppliers that send their renewable resources directly to recycling stations, transit yards, or sorting centers. The Operating Entities have no major suppliers due to the nature of our business activities.

For the year ended December 31, 2024, no supplier accounted for more than 10% of the Company's total purchases. For the year ended December 31, 2025, two suppliers accounted for approximately 13% and 10% of the Company's total purchases, respectively. As of December 31, 2024 and 2025, no supplier accounted for more than 10% of the Company's total accounts payable.

**Our Customers**

We resell renewable resources to steel mills and waste metal processing companies (for waste metallic resources), online and offline second-hand downstream platforms and markets, and dismantling and disposal enterprises.

For the year ended December 31, 2024, two customers accounted for approximately 16% and 12% of the Company's total revenues, respectively. For the year ended December 31, 2025, one customer accounted for approximately 12% of the Company's total revenues. As of December 31, 2024, no customer accounted for more than 10% of the Company's accounts receivable. As of December 31, 2025, two customers accounted for approximately 18% and 12% of the Company's accounts receivable, respectively.

We had a concentration of revenues of 39.7% and 39.7% from the top five customers for the years ended December 31, 2024 and 2025, respectively. The following table outlines the concentration of each of the top five customers compared to our total revenues.

For the fiscal year ended December 31, 2024:

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| | | |
|:---|:---|:---|
|  | **Products sold by our**<br> **Operating Entities** | **For the Fiscal <br> Year Ended <br> December 31, 2024 <br> Concentration (%)** |
| Largest customer | Ferrous metals | 16.4% |
| 2<sup>nd</sup> largest customer | Ferrous metals | 11.9% |
| 3<sup>rd</sup> largest customer | Ferrous metals | 4.3% |
| 4<sup>th</sup> largest customer | Household waste | 3.9% |
| 5<sup>th</sup> largest customer | Ferrous metals | 3.2% |
| Total |  | 39.7% |

---

For the fiscal year ended December 31, 2025:

---

| | | |
|:---|:---|:---|
|  | **Products sold by our**<br> **Operating Entities** | **For the Fiscal** <br> **Year Ended** <br> **December 31,** <br> **2025<br> Concentration (%)** |
| Largest customer | Ferrous metals | 12.0% |
| 2<sup>nd</sup> largest customer | Ferrous metals | 9.2% |
| 3<sup>rd</sup> largest customer | Ferrous metals | 7.6% |
| 4<sup>th</sup> largest customer | Ferrous metals | 6.5% |
| 5<sup>th</sup> largest customer | Ferrous metals | 4.4% |
| Total |  | 39.7% |

---

**Employees**

As of the date of this prospectus, we have a total of 157 full-time employees in the PRC.

---

| | | |
|:---|:---|:---|
| **Function** | **Number of<br> Employees** | **Percentage** |
| Management | 5 | 3.18% |
| Research and Development | 15 | 9.55% |
| Sales and Marketing | 56 | 35.67% |
| General Administration and Support | 28 | 17.83% |
| Customer Service | 20 | 12.74% |
| Workers and warehouse staff | 33 | 21.02% |
| **Total** | **157** | **100.0%** |

---

**Real Properties**

**Owned Properties**

The following table shows the information of the properties we own as of the date of this prospectus:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Company** | **Address** | **Square Meters** | **Usage** | **Term of Use** |
| Jingchuang Metal | Office Building, east of Road Section A and south of Huoju 7th Road, Mobile Phone Industry Park, Gongqingcheng High tech Zone, Jiujiang City, Zhejiang Province | Land Use Right Area: 1,507.80 sq m / Building Area: 4,232.54 sq m | Industrial Land / Office Building | June 13, 2022 to June 12, 2072 |
| Jingchuang Metal | Factory Building # 4, east of Road Section A and south of Huoju 7th Road, Mobile Phone Industry Park, Gongqingcheng High tech Zone, Jiujiang City, Zhejiang Province | Land Use Right Area: 6,935.28 sq m / Building Area: 6,935.28 sq m | Industrial Land / Industry | June 13, 2022 to June 12, 2072 |
| Jingchuang Metal | Factory Building # 5, east of Road Section A and south of Huoju 7th Road, Mobile Phone Industry Park, Gongqingcheng High tech Zone, Jiujiang City, Zhejiang Province | Land Use Right Area: 3,576.02 sq m / Building Area: 3,576.02 sq m | Industrial Land / Industry | June 13, 2022 to June 12, 2072 |
| Jingchuang Metal | Factory Building # 6, east of Road Section A and south of Huoju 7th Road, Mobile Phone Industry Park, Gongqingcheng High tech Zone, Jiujiang City, Zhejiang Province | Land Use Right Area: 6,057.60 sq m / Building Area: 6,057.60 sq m | Industrial Land / Industry | June 13, 2022 to June 12, 2072 |

---

**Leased Properties**

As of the date of this prospectus, we have leased the following properties as described in the chart below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Leased Office Address<sup>（1）</sup>** | **Contractual Parties** | **Square Meters** | **Usage** | **Term and Renewable Agreement** | **Rent** |
| ABGreen Shenzhen | Room 610, 6F, Block A, Xintianxia Bairuida Building, Wanke City Community, Bantian Street, Longgang District, Shenzhen City | Shenzhen Xintianxia Group Co., Ltd. | 996.36 sq m | Office Space | July 20, 2025, to July 31, 2026, renewable three months before the expiration date | RMB 70,000 (approximately $9,859) monthly |
| ABGreen Shenzhen | Room 601-1, 6F, Block A, Xintianxia Bairuida Building, Wanke City Community, Bantian Street, Longgang District, Shenzhen City | Shenzhen Xintianxia Group Co., Ltd. | 260 sq m | Office Space | July 20, 2025, to July 31, 2026, renewable three months before the expiration date | RMB 18,500 (approximately $2,534) monthly |
| Shenzhen Digital | Room 601-2, 6F, Block A, Xintianxia Bairuida Building, Wanke City Community, Bantian Street, Longgang District, Shenzhen City | Shenzhen Xintianxia Group Co., Ltd. | 260 sq m | Office Space | July 20, 2025, to July 31, 2026 renewable three months before the expiration date | RMB 18,500 (approximately $2,534) monthly |
| ABGreen Shenzhen | 1-22-11, No. 7-1, Jinqiao Road, Dadong District, Shenyang City, Liaoning Province | Haining Lan | 46.47 sq m | Office Space | March 16, 2025, to September 15, 2025 | The total rent is RMB 15,000 (approximately $2,055) |
| Zhoukou Senbo | Jizhong Town, Industrial Park,<br> Dancheng County | Henan Dingsheng Standard Parts Co., Ltd. | Approximately 800 sq m | Warehouse (sorting center) | November 20, 2021 to November 19, 2025, Zhoukou Senbo shall have priority to renew the lease upon the expiration date | The total rent is RMB 200,000 (approximately $27,399), and the first year is rent free |
| ABGreen Fuyang | 2F, Xicheng Machinery Industrial Park, Jieshou City, Anhui Province | Anhui Rongcheng High-tech Industry Development Group Co., Ltd | 229.66 sq m | Office Space | July 14, 2024, to July 13, 2027, renewable three months before the expiration date | RMB 38,582 (approximately $5,285) annually |
| Hebei Jushan | Economic Development Zone, Julu County, Xingtai City, Hebei Province | Xingtai Fangxing Environmental Protection Equipment Co., Ltd | 6,139.39 sq m | Workshop and Warehouse | April 1, 2025 to March 30, 2028, renewable three months before the expiration date | RMB 530,400 (approximately $74,040) annually |
| CZTI WFOE | No.18, Beiguanfang Hutong, Xicheng District, Beijing | Beijing Real Estate Exchange Co., Ltd | 327.52 sq m | Office Space | March 20, 2025 to March 19, 2030, renewable upon mutual agreement | First year: RMB660,000 (approximately $92,132);<br> Second and third years: RMB720,000 (approximately $100,508);<br> Fourth and fifth years: RMB727,200 (approximately $101,513);  |
| CZTI | 8 Eu Tong Sen Street#16-81 The Central, Singapore 059818 | CHU HAI BAO PTE. LTD. | 80 sq m | Office Space | February 1, 2026 to January 31, 2027 | S$186,000 (approximately $145,191) annually |
| Hubei Carbon Link | Electronic Industrial Park, Fang County, Shiyan City, Hubei Province | Fangxian Haohan Asset Management Co., Ltd. | 7445.48 sq m | Workshop and Office Space | March 10, 2025 to June 9, 2028, renewable upon mutual agreement | RMB536,073 (approximately $76,657), with three months free |
| ABGreen Henan | Qingyuan Road, Industrial Park, Zhumadian City, Henan Province | Runan County Tianzhong Investment Group Co., Ltd. | 235 sq m | Office Space | September 1, 2025 to August 31, 2028 | RMB50,760 (approximately $7,258) |

---

(1) The approximately 247 square
 meters office currently used by the Zhoukou Senbo office is provided by the local governments for free use in order to attract
 investment for the governments, and we have not signed any agreements.

(2) After the lease agreement
 expired, Jinyou Metal has been negotiating with the lessor to renew the lease. Currently, it is paying rent to the lessor according
 to the previous lease agreement.

**Intellectual Property**

***Copyrights***

As of the date of this prospectus, the Company has registered 72 software copyrights with China's National Copyright Administration, the details of which are listed below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Copyright Name** | **Owner** | **Copyright No.** | **Development Completion Date** | **Date of Approval** | **Method of Obtaining Rights** |
| 1 | E-waste targeted procurement system V1.0 | ABGreen Shenzhen | 2017SR057592 | 12/22/2016 | 02/27/2017 | Original acquisition |
| 2 | E-waste order delivery system V1.0 | ABGreen Shenzhen | 2017SR051259 | 12/22/2016 | 02/22/2017 | Original acquisition |
| 3 | E-waste direct sale system V1.0 | ABGreen Shenzhen | 2017SR049818 | 12/27/2016 | 02/21/2017 | Original acquisition |
| 4 | Crowdsourcing recycling order place system V1.0 | ABGreen Shenzhen | 2017SR712029 | 07/31/2017 | 12/21/2017 | Original acquisition |
| 5 | Crowdsourcing recycling source registration system V1.0 | ABGreen Shenzhen | 2017SR711925 | 07/31/2017 | 12/21/2017 | Original acquisition |
| 6 | Crowdsourcing recycling information registration system V1.0 | ABGreen Shenzhen | 2017SR715538 | 07/31/2017 | 12/21/2017 | Original acquisition |
| 7 | Extended producer responsibility service system operation management system V1.0 | ABGreen Shenzhen | 2018SR194819 | 12/31/2016 | 03/22/2018 | Original acquisition |
| 8 | Extended producer responsibility service system front-end recycling management system V1.0 | ABGreen Shenzhen | 2018SR194802 | 12/31/2017 | 03/22/2018 | Original acquisition |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 9 | Extended producer responsibility service system transaction management system V1.0 | ABGreen Shenzhen | 2018SR194359 | 12/31/2017 | 03/22/2018 | Original acquisition |
| 10 | Extended producer responsibility service system financial management system V1.0 | ABGreen Shenzhen | 2018SR194374 | 12/31/2016 | 03/22/2018 | Original acquisition |
| 11 | ABGreen quick order dispatch system V1.0 | ABGreen Shenzhen | 2018SR860874 | 08/20/2018 | 10/29/2018 | Original acquisition |
| 12 | ABGreen quick online order place system V1.0 | ABGreen Shenzhen | 2018SR863646 | 08/20/2018 | 10/29/2018 | Original acquisition |
| 13 | Multi-source isomerism data advanced processing technology system V1.0 | ABGreen Shenzhen | 2020SR1046221 | 05/15/2019 | 09/04/2020 | Original acquisition |
| 14 | Waste electrical and electronic products online trade-in system V1.0.1 | ABGreen Shenzhen | 2019SR0832688 | 06/06/2019 | 08/12/2019 | Original acquisition |
| 15 | Waste electrical and electronic products online trade-in management system V1.0.1 | ABGreen Shenzhen | 2019SR0825938 | 06/06/2019 | 08/08/2019 | Original acquisition |
| 16 | Waste mobile phone recycling inventory statistical system software V1.0 | ABGreen Shenzhen | 2018SR710897 | 03/12/2018 | 09/04/2018 | Original acquisition |
| 17 | Waste mobile phone intelligent brand identification and sorting system V1.0 | ABGreen Shenzhen | 2018SR711142 | 03/02/2018 | 09/04/2018 | Original acquisition |
| 18 | Online and offline recycling mode sorting center sales management system V1.0 | ABGreen Shenzhen | 2019SR1285094 | 08/19/2019 | 12/04/2019 | Original acquisition |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 19 | Online and offline recycling mode sorting storage receiving management system V1.0 | ABGreen Shenzhen | 2019SR1285086 | 08/19/2019 | 12/04/2019 | Original acquisition |
| 20 | Recovery process logistics scheduling control system V1.0 | ABGreen Shenzhen | 2020SR1045782 | 07/09/2019 | 09/04/2020 | Original acquisition |
| 21 | Recovery data automation integrated Processing system V1.0 | ABGreen Shenzhen | 2020SR1045944 | 08/20/2019 | 09/04/2020 | Original acquisition |
| 22 | Online and offline recycling system operation management system V1.0 | ABGreen Shenzhen | 2020SR1045936 | 10/14/2019 | 09/04/2020 | Original acquisition |
| 23 | Online and offline data fusion processing system V1.0 | ABGreen Shenzhen | 2020SR1045960 | 11/08/2019 | 09/04/2020 | Original acquisition |
| 24 | Intelligent recognition system of renewable resource image V1.0 | ABGreen Shenzhen | 2020SR1045047 | 12/02/2019 | 09/04/2020 | Original acquisition |
| 25 | Regulation and value-added system for online recycling transaction matching V1.0 | ABGreen Shenzhen | 2021SR1872590 | 03/24/2021 | 11/24/2021 | Original acquisition |
| 26 | Intelligent planning system of integrated mechanism and data of renewable resource recovery V1.0 | ABGreen Shenzhen | 2021SR1872602 | 06/30/2021 | 11/24/2021 | Original acquisition |
| 27 | Waste mobile terminal intelligent detection and identification system V1.0 | ABGreen Shenzhen | 2021SR1872612 | 11/02/2021 | 11/24/2021 | Original acquisition |
| 28 | Internet based renewable resource recycling system data system V1.0 | ABGreen Shenzhen | 2021SR1872781 | 08/31/2021 | 11/24/2021 | Original acquisition |
| 29 | Nondestructive testing and quality determination system for complex decommissioning configuration V1.0 | ABGreen Shenzhen | 2021SR1872782 | 08/31/2021 | 11/24/2021 | Original acquisition |
| 30 | Decommissioned mobile terminal data acquisition, feature performance detection and extraction database system software V1.0 | ABGreen Shenzhen | 2021SR1872777 | 04/21/2021 | 11/24/2021 | Original acquisition |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 31 | Data-driven intelligent value assessment system for typical urban renewable resources V1.0 | ABGreen Shenzhen | 2021SR1872778 | 07/07/2021 | 11/24/2021 | Original acquisition |
| 32 | Multivariate data intelligent identification and classification system for typical urban renewable resources V1.0 | ABGreen Shenzhen | 2021SR1872779 | 09/15/2021 | 11/24/2021 | Original acquisition |
| 33 | Renewable resource recovery system based on intelligent information interaction of big data V1.0 | ABGreen Shenzhen | 2021SR1872780 | 09/16/2021 | 11/24/2021 | Original acquisition |
| 34 | Data simulation software of waste electrical and electronic products V1.0 | ABGreen Shenzhen | 2022SR1299491 | 04/21/2021 | 08/26/2022 | Original acquisition |
| 35 | Route optimization system for vehicle scheduling of waste electrical and electronic products recycling V1.0 | ABGreen Shenzhen | 2022SR1273518 | 06/23/2021 | 08/25/2022 | Original acquisition |
| 36 | Traceable database software of waste electrical and electronic products V1.0 | ABGreen Shenzhen | 2022SR1136078 | 12/30/2021 | 08/15/2022 | Original acquisition |
| 37 | Static identification and detection system of waste electrical and electronic products V1.0 | ABGreen Shenzhen | 2022SR1135794 | 11/30/2021 | 08/15/2022 | Original acquisition |
| 38 | Intelligent sorting system based on waste mobile terminal classification detection V1.0 | ABGreen Shenzhen | 2022SR1135793 | 06/29/2022 | 08/15/2022 | Original acquisition |
| 39 | Database software for deep processing of online and offline recycling data of waste electrical and electronic products V1.0 | ABGreen Shenzhen | 2022SR1246949 | 03/15/2022 | 08/23/2022 | Original acquisition |
| 40 | Waste electrical and electronic products intelligent inventory system V1.0 | ABGreen Shenzhen | 2022SR1244201 | 02/28/2022 | 08/23/2022 | Original acquisition |
| 41 | Long-term and short-term supply system of waste electrical and electronic products V1.0 | ABGreen Shenzhen | 2022SR1244639 | 05/11/2022 | 08/23/2022 | Original acquisition |
| 42 | Boolv Shoushou - On site Recycling Service Order System V2.0 | ABGreen Shenzhen | 2024SR1080733 | N/A | 07/29/2024 | Original acquisition |

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43 ShouShou - On-site Recycling Service Order System V1.0 ABGreen Shenzhen 2023SR0223372 08/31/2017 02/10/2023 Original acquisition

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 44 | Cross-organizational reverse logistics information management system V1.0 | ABGreen Shenzhen | 2023SR1284542 | 02/28/2023 | 10/24/2023 | Original acquisition |
| 45 | Retired Electronic and Electrical Reverse Logistics Information Integration Service Platform V1.0 | ABGreen Shenzhen | 2023SR1295224 | 01/11/2023 | 10/25/2023 | Original acquisition |
| 46 | Cross-organizational Reverse Logistics Information Integration Support System V1.0 | ABGreen Shenzhen | 2023SR1313709 | 12/20/2022 | 10/26/2023 | Original acquisition |
| 47 | Retired Mechanical and Electrical Products Reverse Logistics Technology Platform V1.0 | ABGreen Shenzhen | 2023SR1313700 | 08/04/2023 | 10/26/2023 | Original acquisition |
| 48 | A product recycling traceability platform supported by Internet of Things technology V1.0 | ABGreen Shenzhen | 2023SR1321170 | 05/17/2023 | 10/27/2023 | Original acquisition |
| 49 | Internet + Reverse Logistics Recycling System V1.0 | ABGreen Shenzhen | 2023SR1321177 | 03/30/2023 | 10/27/2023 | Original acquisition |
| 50 | Complex multi-level recycling assessment system for mechanical and electrical products V1.0 | ABGreen Shenzhen | 2023SR1321615 | 08/21/2023 | 10/27/2023 | Original acquisition |
| 51 | Application platform of efficient traceability technology in reverse logistics V1.0 | ABGreen Shenzhen | 2023SR1321575 | 06/08/2023 | 10/27/2023 | Original acquisition |
| 52 | Retired Construction Machinery Reverse Logistics Information Management System V1.0 | ABGreen Shenzhen | 2023SR1379786 | 03/08/2023 | 11/03/2023 | Original acquisition |
| 53 | Reverse Logistics Information Integration Service Platform V1.0 | ABGreen Shenzhen | 2023SR1422776 | 12/30/2022 | 11/14/2023 | Original acquisition |
| 54 | Boolv Shoushou On-Site Recycling Smart Order Platform V1.0 | ABGreen Shenzhen | 2025SR0772952 | N/A | 05/13/2025 | Original acquisition |
| 55 | Boolv Sorting Center - Multi-Warehouse Intelligent Scheduling Platform [Abbreviation: Boolv Sorting Center] V1.0 | ABGreen Shenzhen | 2025SR0773070 | N/A | 05/13/2025 | Original acquisition |
| 56 | Boolv Smart Scale Scrap Material Recycling Management Software V1.0 | ABGreen Shenzhen | 2025SR0772894 | N/A | 05/13/2025 | Original acquisition |
| 57 | Boolv Smart Scale Environmental Post Smart Recycling and User-Binding System V1.0 | ABGreen Shenzhen | 2025SR0773118 | N/A | 05/13/2025 | Original acquisition |
| 58 | Boolv Shoushou Home Appliance Recycling Information Registration System V1.0 | ABGreen Shenzhen | 2025SR0773141 | N/A | 05/13/2025 | Original acquisition |
| 59 | Huoyuantong Supply Chain Intelligent Integrated Platform V1.0 | ABGreen Shenzhen | 2025SR0776802 | N/A | 05/13/2025 | Original acquisition |
| 60 | Intelligent Sorting Center Procurement and Sales Order Tracking Platform V1.0 | ABGreen Shenzhen | 2025SR0773195 | N/A | 05/13/2025 | Original acquisition |
| 61 | Boolv Shoushou – Comprehensive Management Platform for Used Goods Recycling [Abbreviation: Boolv Shoushou] V1.0 | ABGreen Shenzhen | 2025SR0773301 | N/A | 05/13/2025 | Original acquisition |
| 62 | Management system for waste electrical and electronic products inbound and outbound V1.0 | Zhoukou Senbo | 2023SR0680924 | 10/31/2022 | 10/31/2022 | Original acquisition |
| 63 | Vehicle transportation management system for waste electrical and electronic products V1.0 | Zhoukou Senbo | 2023SR0680923 | 12/30/2022 | 12/30/2022 | Original acquisition |
| 64 | Management System for Waste Electrical and Electronic Products Sorting Center V1.0 | Zhoukou Senbo | 2023SR0680939 | 01/31/2023 | 01/31/2023 | Original acquisition |
| 65 | Scrap Material Recycling Logistics Management System V1.0 | ABGreen Fuyang | 2023SR0722051 | 11/30/2022 | 06/27/2023 | Original acquisition |
| 66 | Waste Electrical and Electronic Products Order Management System V1.0 | ABGreen Fuyang | 2023SR0722052 | 01/05/2023 | 06/27/2023 | Original acquisition |
| 67 | Waste Electrical and Electronic Products Recycling Management System V1.0 | ABGreen Fuyang | 2023SR0722093 | 11/30/2022 | 06/27/2023 | Original acquisition |
| 68 | The intelligent terminal system of BoLv Recycling Box | Shenzhen Bgreen | 2026SR0493554 | N/A | 3/26/2026 | Original acquisition |
| 69 | BoLv Big Data Waste Disposal Management Platform | Shenzhen Bgreen | 2026SR0493471 | N/A | 3/26/2026 | Original acquisition |
| 70 | The door-to-door recycling terminal system of BoLv | Shenzhen Bgreen | 2026SR0493419 | N/A | 3/26/2026 | Original acquisition |
| 71 | Intelligent scheduling software for reverse logistics of waste materials | Shenzhen Bgreen | 2026SR0493362 | N/A | 3/26/2026 | Original acquisition |
| 72 | Bolv Renewable Resources Utilization Management Platform Software | Shenzhen Bgreen | 2026SR0493224 | N/A | 3/26/2026 | Original acquisition |

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***Patents***

As of the date of this prospectus, the Company has registered 31 patents with the Patent Office of China National Intellectual Property Administration. See details listed below.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Patent No.** | **Patent Name** | **Patent Application Date** | **Authorization Announcement Date** | **Patent Type** | **Patent Term** | **Owner** | **Status** |
| 1 | ZL201820694199.6 | A counting device for mobile devices | 05/10/2018 | 12/07/2018 | Utility Model | 10 years | ABGreen Shenzhen | Registered |
| 2 | ZL202021611799.5 | A device for dismantling, sorting, and recycling household appliance waste | 08/06/2020 | 04/30/2021 | Utility Model | 10 years | ABGreen Shenzhen | Registered |
| 3 | ZL202110604588.1 | A platform for value assessment and disassembling of waste household appliances | 05/31/2021 | 05/03/2022 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 4 | ZL202110604606.6 | A washing machine drum detection system with data standardization output function | 05/31/2021 | 07/26/2022 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 5 | ZL201830212192.1 | Mobile device counting machine | 05/10/2018 | 09/28/2018 | Design | 10 years | ABGreen Shenzhen | Registered |
| 6 | ZL201911034534.5 | A method and device for recycling management | 10/29/2019 | 04/07/2023 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 7 | ZL201911034396.0 | A recycling business management method and device | 10/29/2019 | 04/14/2023 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 8 | ZL202210873993.8 | A method, device and computer equipment for calculating quality fraction of mechanical and electrical products | 07/25/2022 | 11/11/2022 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 9 | ZL202310706784.9 | Recycling methods and systems for waste electronic products | 06/15/2023 | 09/22/2023 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 10 | ZL202311048190.X | An appearance defect detection equipment and process for waste electronic products | 08/21/2023 | 02/20/2024 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 11 | ZL202311492858.X | New energy vehicle battery recycling management collection and release device | 11/10/2023 | 02/02/2024 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 12 | ZL202311765304.2 | A management system for waste household appliance recycling enterprises | 12/21/2023 | 05/31/2024 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 13 | ZL202311262276.2 | A method and system for evaluating the quality of a pre-retirement motor | 09/27/2023 | 12/22/2023 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 14 | ZL202310987230.0 | An Internet-based method and system for electronic waste recycling | 08/08/2023 | 12/15/2023 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 15 | ZL202310533729.4 | An Internet-based method and system for electronic waste recycling | 05/11/2023 | 08/01/2025 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 16 | ZL202210829026.1 | An electronic product recycling method, device and computer equipment based on knowledge graph | 07/13/2022 | 12/12/2025 | Invention | 20 years | ABGreen Shenzhen | Registered |
| 17 | ZL202111365908.9 | A wear-resistant hydraulic metal baler | 11/18/2021 | 11/29/2024 | Invention | 20 years | Jingchuang Metal | Registered |
| 18 | ZL201810979434.9 | Counter magnetic separator | 08/24/2018 | 12/13/2024 | Invention | 20 years | Jingchuang Metal | Registered |
| 19 | ZL202320047554.1 | A waste iron recycling and cleaning device | 01/06/2023 | 04/25/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 20 | ZL202320115982.3 | A load-bearing machine for waste iron recycling | 01/31/2023 | 04/18/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 21 | ZL202223400841.0 | A crushing device for waste iron recycling | 12/19/2022 | 05/26/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 22 | ZL202320165227.6 | A pickling device for waste iron recycling | 02/09/2023 | 07/04/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 23 | ZL202320420052.9 | A waste iron collection and fixation device | 03/08/2023 | 07/21/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 24 | ZL202320539876.8 | A briquetting and forming device for waste iron | 03/20/2023 | 07/07/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 25 | ZL202320721977.7 | A hydraulic shearing device for metal scrap iron | 04/04/2023 | 09/22/2023 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 26 | ZL202322779606.7 | A device for separating scrap iron from solid waste | 10/17/2023 | 08/09/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 27 | ZL202323499373.1 | A scrap iron lifting device | 12/21/2023 | 10/11/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 28 | ZL202420073539.9 | A scrap iron lifting device | 01/11/2024 | 08/02/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 29 | ZL202322907419.2 | A transfer device for scrap iron recycling | 10/30/2023 | 08/02/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 30 | ZL202323636315.9 | A scrap iron dismantling and collecting machine | 12/29/2023 | 10/25/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |
| 31 | ZL202323361033.2 | A high-efficiency scrap iron shearing machine | 12/11/2023 | 08/20/2024 | Utility Model | 10 years | Jingchuang Metal | Registered |

---

***Trademarks***

As of the date of this prospectus, the Company has registered 43 trademarks with the Trademark Office of the China National Intellectual Property Administration. All of trademarks are obtained by original registration by the registrants. See details listed below.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Trademark** | **Classification** | **Registration No.** | **Registration date** | **Valid Until** | **Registrant** | **Status** |
| 1 | ![](formdrs_013.jpg) | 9 | 45984349 | 4/14/2021 | 4/13/2031 | ABGreen Shenzhen | Registered |
| 2 | ![](formdrs_014.jpg) | 9 | 57481758 | 01/21/2022 | 01/20/2032 | ABGreen Shenzhen | Registered |
| 3 | ![](formdrs_015.jpg) | 9 | 38686684 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 4 | ![](formdrs_016.jpg) | 35 | 38701917 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 5 | ![](formdrs_017.jpg) | 40 | 38697032 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 6 | ![](formdrs_018.jpg) | 42 | 38685896 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 7 | ![](formdrs_019.jpg) | 35 | 27434742 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 8 | ![](formdrs_020.jpg) | 9 | 27432013 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 9 | ![](formdrs_021.jpg) | 37 | 27448592 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 10 | ![](formdrs_022.jpg) | 38 | 27432059 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 11 | ![](formdrs_023.jpg) | 39 | 27432068 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 12 | ![](formdrs_024.jpg) | 40 | 27441207 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 13 | ![](formdrs_025.jpg) | 42 | 27448623 | 10/28/2018 | 10/27/2028 | ABGreen Shenzhen | Registered |
| 14 | ![](formdrs_026.jpg) | 9 | 38701887 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 15 | <br> ![](formdrs_027.jpg) | 35 | 38688119 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 16 | ![](formdrs_028.jpg)<br>| 40 | 38701958 | 02/07/2020 | 02/06/2030 | ABGreen Shenzhen | Registered |
| 17 | ![](formdrs_029.jpg)<br>| 42 | 38690308 | 02/21/2020 | 02/20/2030 | ABGreen Shenzhen | Registered |
| 18 | ![](formdrs_030.jpg) | 9 | 19976345 | 09/14/2017 | 09/13/2027 | ABGreen Shenzhen | Registered |
| 19 | ![](formdrs_031.jpg) | 35 | 19976344 | 09/14/2017 | 09/13/2027 | ABGreen Shenzhen | Registered |
| 20 | ![](formdrs_032.jpg) | 38 | 19976343 | 07/07/2017 | 07/06/2027 | ABGreen Shenzhen | Registered |
| 21 | ![](formdrs_033.jpg) | 42 | 19976346 | 09/14/2017 | 09/13/2027 | ABGreen Shenzhen | Registered |
| 22 | ![](formdrs_034.jpg) | 7 | 20832593 | 09/21/2017 | 09/20/2027 | ABGreen Shenzhen | Registered |
| 23 | <br> ![](formdrs_035.jpg) | 16 | 20832619 | 11/21/2017 | 11/20/2027 | ABGreen Shenzhen | Registered |
| 24 | ![](formdrs_036.jpg) | 37 | 20832699 | 11/07/2017 | 11/06/2027 | ABGreen Shenzhen | Registered |
| 25 | ![](formdrs_037.jpg) | 40 | 20832633 | 09/28/2017 | 09/27/2027 | ABGreen Shenzhen | Registered |
| 26 | ![](formdrs_038.jpg) | 35 | 23292293 | 03/07/2018 | 03/06/2028 | ABGreen Shenzhen | Registered |
| 27 | ![](formdrs_039.jpg) | 38 | 23292235 | 03/14/2018 | 03/13/2028 | ABGreen Shenzhen | Registered |
| 28 | ![](formdrs_040.jpg) | 9 | 20058005 | 09/14/2017 | 09/13/2027 | ABGreen Shenzhen | Registered |
| 29 | <br> ![](formdrs_041.jpg) | 35 | 20058004 | 07/14/2017 | 07/13/2027 | ABGreen Shenzhen | Registered |
| 30 | ![](formdrs_042.jpg) | 42 | 20058006 | 07/14/2017 | 07/13/2027 | ABGreen Shenzhen | Registered |
| 31 | ![](formdrs_043.jpg) | 7 | 20832774 | 11/21/2017 | 11/20/2027 | ABGreen Shenzhen | Registered |
| 32 | ![](formdrs_044.jpg) | 16 | 20832745 | 11/21/2017 | 11/20/2027 | ABGreen Shenzhen | Registered |
| 33 | ![](formdrs_045.jpg) | 37 | 20832904 | 11/21/2017 | 11/20/2027 | ABGreen Shenzhen | Registered |
| 34 | ![](formdrs_046.jpg) | 38 | 20832957 | 09/28/2017 | 09/27/2027 | ABGreen Shenzhen | Registered |
| 35 | ![](formdrs_047.jpg) | 40 | 20832924 | 11/28/2017 | 11/27/2027 | ABGreen Shenzhen | Registered |
| 36 | ![](image_004.jpg) | 40 | 79997303 | 02/07/2025 | 02/06/2035 | ABGreen Shenzhen | Registered |
| 37 | ![](image_007.jpg) | 40 | 79995699 | 02/07/2025 | 02/06/2035 | ABGreen Shenzhen | Registered |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| 38.0 | ![](image_008.jpg) | 37.0 | 80004785.0 | 04/07/2025 | 04/06/2035 | ABGreen Shenzhen | Registered |
| 39.0 | ![](image_009.jpg) | 39.0 | 80001763.0 | 04/07/2025 | 04/06/2035 | ABGreen Shenzhen | Registered |
| 40.0 | ![](image_010.jpg) | 37.0 | 79995694.0 | 04/07/2025 | 04/06/2035 | ABGreen Shenzhen | Registered |
| 41.0 | ![](image_011.jpg) | 37.0 | 79987674.0 | 04/07/2025 | 04/06/2035 | ABGreen Shenzhen | Registered |
| 42.0 | ![](image_012.jpg) | 35.0 | 72285017.0 | 01/21/2024 | 01/20/2034 | Hebei Jushang | Registered |
| 43.0 | ![](image_013.jpg) | 40.0 | 86183543.0 | 01/14/2026 | 01/13/2036 | Jingchuang Metal | Registered |

---

***Domain Name***

As of the date of this prospectus, we have registered two domain names, "boolv.com" and "boolv.cn," and our website is https://www.boolv.com.

We seek to protect our technology and associated intellectual property rights through licensing agreements and other contractual protections. In addition, we entered into employment agreements with confidentiality arrangements with our employees to protect our proprietary rights. We primarily rely upon the relevant intellectual property laws of the PRC to protect these intellectual property rights, however, there is no assurance that this form of protection will be successful in any given case, particularly since the laws of the PRC do not protect proprietary rights as fully as in the United States. As of the date of this prospectus, the Operating Entities' intellectual property rights have not been subject to any adverse claims. We have not been involved in any litigation or other claims related to any third party's intellectual property rights.

**Permits and Licenses**

As of the date of this prospectus, we and the Operating Entities have received from PRC government authorities all requisite permits or licenses needed to engage in the businesses currently conducted in China. Such permits and licenses include business licenses, Registration Certificate for Renewable Resource Recycling Operations and the Qualification Certificate for End-of-Life Vehicle Dismantling Enterprises.

**Insurance**

We provide social security insurance for our employees as required by PRC law. Consistent with customary industry practice in China, we do not maintain business interruption or product transportation insurance, nor do we maintain key-man insurance. See "*Risk Factors — Risks Related to Our Business and Industry — We have limited insurance coverage, which could expose us to costs and business disruption.*"

**Legal Proceedings**

We may from time to time become a party to various legal or administrative proceedings arising in the ordinary course of our business. As of the date hereof, neither we nor any of our subsidiaries is a party to any pending legal proceedings, nor are we aware of any such proceedings threatened against us or our subsidiaries.

**REGULATIONS**

*This section sets forth a summary of applicable laws, rules, regulations, government and industry policies and requirements that have a significant impact on the Operating Entities' business in the PRC. This summary does not purport to be a complete description of all the laws and regulations that apply to the Operating Entities' business. Investors should note that the following summary is based on relevant laws and regulations in force as of the date of this prospectus, which may be subject to change.*

**Regulation Relating to the Recycling of Renewable Resources and Circulation of Pre-owned Household Appliances and Consumer Electronics**

The Measures for Administration of the Circulation of Second-hand Goods (for Trial Implementation) issued by the Ministry of Internal Trade of the PRC (which is the predecessor of the MOFCOM) and the Ministry of Public Security of the PRC on March 9, 1998 requires that second-hand goods operators shall record the names of entities and the resident identity cards of individuals that/who sell or consign for sale, or are entrusted to sell or consign for sale second-hand goods; and shall strictly check the power of attorney of the entrusting entities and resident identity cards of the entrusting individuals.

The Administrative Measures for the Recycling of Renewable Resources, or the Recycling of Renewable Resources Measures, which was initially promulgated on March 27, 2007 and amended by the MOFCOM and other authorities on November 30, 2019, regulates "renewable resources" including all kinds of wastes that are generated in social production and living and consumption, and that have lost all or part of their use value, but can regain use value through recovery and processing, including discarded electronic products, etc. To engage in renewable resources recovery business, a recycling operator can start business only after getting a business license, and the business scope specified on the business license shall include the business of recycling of renewable resources. In addition to the requirements under the Recycling of Renewable Resources Measures, a recycling operator engaging in the purchase and sale of pre-owned electric appliances and electronic products shall also comply with other more specific requirements set forth in other laws and regulations.

The Administrative Measures on the Circulation of Pre-owned Electrical and Electronic Products, or the Pre-owned Electronics Circulation Measures, promulgated by the MOFCOM on March 15, 2013, further specifies the requirements under the above two regulations. According to the Pre-owned Electronics Circulation Measures, recycling operators engaging in the purchase and sale of pre-owned electric appliances and electronic products shall record information of the purchased products, including the product name, trademark, model, original purchase voucher or identity information of sellers of the products. Pre-owned electric appliances and electronic products to be sold shall be labeled as used products in a prominent position. Recycling operators are prohibited from purchasing the following electric appliances and electronic products: (i) those sealed up or impounded according to the law, (ii) those that are obtained by stealing, robbing, swindling, smuggling or other illegal criminal means by the sellers and clearly known by such operator, (iii) those whose legitimate sources cannot be explained, and (iv) other used electrical and electronic products which are forbidden to be purchased according to laws and administrative regulations. Violation of the above provision may result in a fine up to RMB 30,000 to be imposed on the recycling operator, or even criminal liability if the case is serious enough. It is also clarified that purchase and sale of pre-owned electric appliances and electronic products through the internet shall also comply with the requirements under the Pre-owned Electronics Circulation Measures.

**Regulations Related to Dismantling and Disposal of Scarp Cars**

The Administrative Measures for the Recycling of Scrapped Motor Vehicles was promulgated by the State Council on April 22, 2019, and came into effect on June 1, 2019. According to the Administrative Measures for the Recycling of Scrapped Motor Vehicles, the state applies a qualification accreditation system for enterprises engaged in the recycling of scrapped motor vehicles. No entity or individual may engage in the recycling of scrapped motor vehicles without the qualification accreditation.

The Detailed Rules for the Implementation of the Measures for the Recycling of End-of-Life Vehicles (the "Detailed Rules for the Recycling of End-of-Life Vehicles") was deliberated and adopted at the 25th executive meeting of the Ministry of Commerce and with the consent of the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Ecology and Environment, the Ministry of Transport and the State Administration for Market Regulation, was issued on July 18, 2020 and came into force on September 1, 2020. The Detailed Rules for the Recycling of End-of-Life Vehicles further clarifies and details the implementation rules relating to the recycling of end-of-life vehicles.

The Interim Measures for the Administration of Recycling and Comprehensive Utilization of Waste Power Batteries of New Energy Vehicles were jointly promulgated by relevant national authorities and came into force on April 1, 2026. These measures standardize the collection, storage, transportation, recycling and comprehensive utilization of waste power batteries of new energy vehicles, specify operational specifications, filing obligations and compliance requirements for recycling enterprises, and improve the whole life cycle supervision system for waste power batteries, which is relevant to the company's renewable resources recycling and dismantling business layout.

**Regulations Relating to Foreign Investment**

*PRC Company Law and Foreign Investment Laws*

The PRC Company Law was initially adopted by the Standing Committee of the National People's Congress of the PRC (the "SCNPC") on December 29, 1993, and the last amendment became effective on October 26, 2018 (the "Company Law"). On December 29, 2023, the SCNPC promulgated the new amendment to the Company Law, which became effective on July 1, 2024. The Company Law governs the establishment, operations, and management of corporate entities in the PRC. Foreign invested enterprises ("FIEs") must comply with the Company Law unless the PRC foreign investment laws provide otherwise. Pursuant to the Provisions on the Implementation of the Registered Capital Registration System under the PRC Company Law, promulgated by the State Council on July 1, 2024, for limited liability companies that were registered and established before June 30, 2024, if the remaining period for the subscribed capital contribution extends beyond five years from July 1, 2027, such companies shall revise the remaining subscribed capital contribution period to not exceed five years and make the corresponding amendments to their articles of association by no later than June 30, 2027.

The Foreign Investment Law of the PRC (the "Foreign Investment Law") was adopted by the National People's Congress of the PRC (the "NPC") on March 15, 2019, and came into force on January 1, 2020. The Foreign Investment Law grants national treatment to an FIE except when such enterprise operates in industries deemed to be "encouraged," "restricted," or "prohibited." The Catalog of Encouraged Industries for Foreign Investment (2025 Edition) (the "Catalog") lists the "encouraged" industries for foreign investment. The Catalog was promulgated jointly by the National Development and Reform Commission (the "NDRC") and the Ministry of Commerce (the "MOFCOM") on December 15, 2025, and became effective on February 1, 2026, replacing the 2022 Edition which was simultaneously abolished.

The Special Administrative Measures (Negative List) for the Entrance of Foreign Investment (2021 Version) (the "Negative List (2021)"), which was promulgated jointly by the NDRC and the MOFCOM on December 27, 2021, and became effective on January 1, 2022, identifies the "prohibited" and "restricted" industries for foreign investment. The Special Administrative Measures (Negative List) for the Entrance of Foreign Investment (2024 Version) (the "Negative List (2024)") was promulgated by the NDRC and the MOFCOM on September 6, 2024, which came into force on November 1, 2024 and replace the previous Negative List (2021). Compared to the Negative List (2021), Negative List (2024) eliminates relevant restrictions on the manufacturing industry while other foreign investment activities in China shall still comply with the same provisions as outlined in the Negative List (2021). The Catalog and the Negative List contain specific market entrance rules for foreign investment in different industries. If the investment falls within the "encouraged" category, such foreign investment will be entitled to certain preferential treatment and benefits extended by the government. If the investment falls within the "restricted" category, such foreign investment will be permitted to the extent that it satisfies certain restrictions under the PRC laws. If the investment falls within the "prohibited" category, such foreign investment will be prohibited. If the investment falls within an industry not included in the Negative List, such foreign investment will be allowed, unless it is specifically prohibited or restricted by other PRC laws and regulations.

The Implementing Regulations of the Foreign Investment Law (the "Implementing Regulations") were promulgated by the State Council of the PRC on December 26, 2019, and came into effect on January 1, 2020. According to the Implementing Regulations, an FIE must be registered with the State Administration for Market Regulation (the "SAMR") or its authorized local counterparts. A foreign investor or an FIE must submit investment information to the MOFCOM or its local counterparts via the enterprise registration system and the enterprise credit information publicity system. The Foreign Investment Law and the Implementing Regulations apply to the investment made by an FIE in the PRC.

The Measures on Reporting of Foreign Investment Information, promulgated jointly by the MOFCOM and the SAMR on December 30, 2019, came into effect on January 1, 2020. Pursuant to such measures, an FIE must report investment information for establishment, modification, dissolution, and annual reports of the FIE.

*M&A Rules*

On August 8, 2006, the MOFCOM, the State-owned Assets Supervision and Administration Commission of the State Council, the State Administration of Taxation (the "SAT"), the China Securities Regulatory Commission (the "CSRC"), the State Administration for Industry and Commerce, and the State Administration of Foreign Exchange (the "SAFE") jointly promulgated the Regulations on the Merger and Acquisition of Domestic Enterprises by Foreign Investors (the "M&A Rules"). The M&A Rules came into effect on September 8, 2006, and were amended on June 22, 2009. The M&A Rules require a foreign investor to obtain necessary approvals when the investor (i) acquires the equity of a Chinese enterprise so as to convert the Chinese enterprise into an FIE; (ii) subscribes for new equity of a Chinese enterprise so as to convert the Chinese enterprise into an FIE; (iii) establishes an FIE, which purchases and operates the assets of a Chinese enterprise; or (iv) purchases the assets of a Chinese enterprise, and then invests such assets to establish an FIE. The M&A Rules, among other things, further require that an offshore special purpose vehicle (the "SPV"), formed for overseas listing purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain the CSRC's approval prior to listing such SPV's securities on an overseas stock exchange, especially in the event that the SPV acquires shares or an equity interest in the PRC companies by offering the shares of any offshore companies. Pursuant to Article 11 of the M&A Rules, where a Chinese company, enterprise or natural person intends to acquire their related Chinese company in the name of an offshore company which they lawfully established or control, such acquisition shall be subject to the examination and approval of the MOFCOM. After the Foreign Investment Law and its Implementing Regulations took effect on January 1, 2020, the provisions of the M&A Rules remain effective to the extent they are not inconsistent with the Foreign Investment Law and its Implementation Regulations. The MOFCOM has stated on its official website that, following the implementation of the Foreign Investment Law, the approval and filing requirements for establishing or changing foreign-invested enterprises are no longer required. For example, on April 9, 2024, The MOFCOM responded to a query regarding whether the approval process outlined in the M&A Rules is still necessary after the Foreign Investment Law came into effect. The response clarified that since 2020, the MOFCOM no longer requires approval or filing for the establishment or changes of foreign-invested enterprises. Foreign investors acquiring domestic companies must still comply with the M&A Rules, but the approval procedure with the MOFCOM is no longer required.

**Regulations Relating to Overseas Listing**

On February 17, 2023, the CSRC issued the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Enterprises, or the Trial Measures, which became effective on March 31, 2023. On the same date of the issuance of the Trial Measures, the CSRC circulated No. 1 to No. 5 Supporting Guidance Rules, and has subsequently successively issued No. 6 and No. 7 Supporting Guidance Rules. The Notes on the Trial Measures, the Notice on Administration Arrangements for the Filing of Overseas Listings by Domestic Enterprises and the relevant CSRC Answers to Reporter Questions on the official website of the CSRC, together with the Trial Measures, the Overseas Listing Filing Rules. According to the Overseas Listing Filing Rules, (i) domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedure and report relevant information to the CSRC; if a domestic company fails to complete the filing procedure or conceals any material fact or falsifies any major content in its filing documents, such domestic company may be subject to administrative penalties, such as order to rectify, warnings, fines, and its controlling shareholders, actual controllers, the person directly in charge and other directly liable persons may also be subject to administrative penalties, such as warnings and fines; (ii) if the issuer meets both of the following conditions, the overseas offering and listing shall be determined as an indirect overseas offering and listing by a domestic company: (a) any of the total assets, net assets, revenues or profits of the domestic operating entities of the issuer in the most recent accounting year accounts for more than 50% of the corresponding figure in the issuer's audited consolidated financial statements for the same period; (b) its major operational activities are carried out in China or its main places of business are located in China, or the senior managers in charge of operation and management of the issuer are mostly Chinese citizens or are domiciled in China; and (iii) where a domestic company seeks to indirectly offer and list securities in an overseas market, the issuer shall designate a major domestic operating entity responsible for all filing procedures with the CSRC, and where an issuer makes an application for listing in an overseas market, the issuer shall submit filings with the CSRC within three business days after such application is submitted. On the same day, the CSRC also held a press conference for the release of the Trial Measures and issued the Notice on Administration for the Filing of Overseas Offering and Listing by Domestic Companies, which clarifies that (1) on or prior to the effective date of the Trial Measures, domestic companies that have already submitted valid applications for overseas offering and listing but have not obtained approval from overseas regulatory authorities or stock exchanges may reasonably arrange the timing for submitting their filing applications with the CSRC, and must complete the filing before the completion of their overseas offering and listing; (2) a six-month transition period will be granted to domestic companies which, prior to the effective date of the Trial Measures, have already obtained the approval from overseas regulatory authorities or stock exchanges, but have not completed the indirect overseas listing; if domestic companies fail to complete the overseas listing within such six-month transition period, they shall file with the CSRC according to the requirements; and (3) the CSRC will solicit opinions from relevant regulatory authorities and complete the filing of the overseas listing of companies with contractual arrangements which duly meet the compliance requirements, and support the development and growth of these companies.

As of the date of this prospectus, neither we nor the PRC subsidiaries have been subject to any investigation, or received any notice, warning, or sanction from the CSRC or other applicable government authorities related to this offering.

On February 24, 2023, the CSRC and several other administrations jointly released the Provisions on Strengthening the Confidentiality and Archive Management Work Relating to the Overseas Securities Offering and Listing, or the Archives Rules, which took effect on March 31, 2023. The Archives Rules apply to both overseas direct offerings and overseas indirect offerings. The Archives Rules provides that, among other things, (i) in relation to the overseas listing activities of domestic enterprises, the domestic enterprises are required to strictly comply with the relevant requirements on confidentiality and archives management, establish a sound confidentiality and archives system, and take necessary measures to implement their confidentiality and archives management responsibilities; (ii) during the course of an overseas offering and listing, if a domestic enterprise needs to publicly disclose or provide to securities companies, accounting firms or other securities service providers and overseas regulators, any materials that contain relevant state secrets or that have a sensitive impact (i.e. be detrimental to national security or the public interest if divulged), the domestic enterprise should complete the relevant approval/filing and other regulatory procedures; and (iii) working papers produced in the PRC by securities companies and securities service institutions, which provide domestic enterprises with securities services during their overseas issuance and listing, should be stored in the PRC, and the transmission of all such working papers to recipients outside of the PRC is required to be approved by competent authorities of the PRC.

In addition, on July 10, 2021, the Cyberspace Administration of China (the "CAC") issued the Measures for Cybersecurity Review (Revision Draft for Comments) for public comments, which propose to authorize the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, including listings in foreign countries by companies that possess the personal data of more than one million users. On December 28, 2021, the Measures for Cybersecurity Review (2021 version) was promulgated and took effect on February 15, 2022, which iterates that any "online platform operator" controlling personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review. The Measures for Cybersecurity Review (2021 version), further elaborates the factors to be considered when assessing the national security risks of the relevant activities, including, among others, (i) the risk of core data, important data or a large amount of personal information being stolen, leaked, destroyed, and illegally used or exited the country; and (ii) the risk of critical information infrastructure, core data, important data or a large amount of personal information being affected, controlled, or maliciously used by foreign governments after listing abroad. The CAC has said that under the proposed rules companies holding data on more than one million users must now apply for cybersecurity approval when seeking listings in other nations because of the risk that such data and personal information could be "affected, controlled, and maliciously exploited by foreign governments." The cybersecurity review will also investigate the potential national security risks from overseas IPOs. On December 8, 2022, the MIIT published the Data Security Management Measures in the Field of Industry and Information Technology (for Trial Implementation), or the Data Security Measures in the IT Field, which took effect on January 1, 2023. The Data Security Measures in the IT Field requires the industrial and telecom data processors to further implement data classification and hierarchical management, take necessary measures to ensure that data remains effectively protected and being lawfully applied and conduct data security risk monitoring. The Data Security Measures in the IT Field provides that all businesses which handle industrial and telecoms data in mainland China are required to categorize such information into "general," "important" and "core" and businesses processing "important" and "core" data shall comply with certain filing and reporting obligations. Data in the field of industry and information technology shall include industrial data, telecoms data, etc. "Industrial data" refers to data produced and collected during research and development design, manufacturing, operation, and management, operating and maintenance, and platform operation in various sectors and fields of industry. "Telecoms data" refers to the data generated and collected during telecommunications business operations. For different categories of data, the Data Security Measures in the IT Field prescribes different requirements in terms of security management and protection in terms of data collection, storage, processing, transmission, provision, publication, destruction, exit, transfer, entrusted processing, etc. For general data, the data processors shall establish a life-cycle safety management system, assign management personnel, reasonably determine operation authority, formulate emergency plans, conduct emergency drills, conduct education and training, and keep log records.

**Regulations Relating to E-Commerce**

On August 31, 2018, the Standing Committee of the National People's Congress promulgated the E-Commerce Law of the PRC, or the E-Commerce Law, which took effect on January 1, 2019. The promulgation of the E-Commerce Law established the basic legal framework for the development of China's e-commerce business and clarified the obligations of the e-commerce business operators and the possible legal consequences if e-commerce business operators are found to be in violation of legal obligations. The e-commerce business operators shall not fabricate transactions or users' comments to conduct false or misleading business promotions so as to defraud or mislead consumers. Violation of the provisions of the E-Commerce Law may result in being ordered to make corrections within a prescribed period, confiscation of illegally obtained gains, fines, suspension of business, inclusion of such violations in the credit records and possible civil liabilities.

On March 15, 2021, the SAMR promulgated the Measures for the Supervision and Administration of Online Transactions, or the Online Transactions Measures, which came into effect on May 1, 2021 and amended and published by the SAMR on March 18, 2025, and then took effect on May 1, 2025. The Online Transactions Measures implements relevant legislative principles and purpose of the E-Commerce Law and refines a series of relevant laws and regulations. It further specifies the responsibilities of online trading platform operators and the requirements for protecting online consumers' rights and interests.

On February 28, 2025, the State Administration for Market Regulation promulgated the Guiding Opinions on Promoting the Implementation of Compliance Management Responsibilities by Online Trading Platform Enterprises, or the Guiding Opinions, with the objective of enhancing compliance management frameworks for internet trading platform operators. The Guiding Opinions emphasize the imperative for enterprises to fully assume their primary compliance obligations, while explicitly reinforcing the accountability of corporate executives in overseeing compliance management systems.

**Regulations Relating to Cybersecurity, Data Security, Personal Information Protection and National Security**

*Regulations on Cybersecurity*

On November 7, 2016, the Standing Committee of the National People's Congress promulgated the Cyber Security Law, which came into effect on June 1, 2017, and was amended on October 28, 2025, with the amended version officially taking effect on January 1, 2026, and applies to the construction, operation, maintenance, and use of networks as well as the supervision and administration of cybersecurity in China. The Cyber Security Law defines "networks" as systems that are composed of computers or other information terminals and relevant facilities used for the purpose of collecting, storing, transmitting, exchanging, and processing information in accordance with certain rules and procedures. "Network operators", who are broadly defined as owners and administrators of networks and network service providers, are subject to various security protection-related obligations, including: (i) complying with security protection obligations in accordance with tiered cybersecurity system's protection requirements, which include formulating internal security management rules and manual, appointing cybersecurity responsible personnel, adopting technical measures to prevent computer viruses and cybersecurity endangering activities, adopting technical measures to monitor and record network operation status and cybersecurity events; (ii) formulating cybersecurity emergency response plans, timely handling security risks, initiating emergency response plans, taking appropriate remedial measures and reporting to regulatory authorities; and (iii) providing technical assistance and support for public security and national security authorities for protection of national security and criminal investigations in accordance with the law. Network service providers who do not comply with the Cyber Security Law may be subject to fines, suspension of their businesses, shutdown of their websites, and revocation of their business licenses.

*Regulations on Data Security*

On May 28, 2020, the NPC approved the PRC Civil Code, which came into effect on January 1, 2021. Pursuant to the PRC Civil Code, the collection, storage, use, process, transmission, provision, and disclosure of personal information should follow the principles of legitimacy, properness, and necessity.

On June 10, 2021, the SCNPC published the PRC Data Security Law, which took effect on September 1, 2021. The PRC Data Security Law requires data processing, which includes the collection, storage, use, processing, transmission, provision, publication of data, to be conducted in a legitimate and proper manner. The PRC Data Security Law provides for data security and privacy obligations on entities and individuals carrying out data activities. The PRC Data Security Law also introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree of harm it may cause to national security, public interests, or legitimate rights and interests of individuals or organizations if such data are tampered with, destroyed, leaked, illegally acquired or illegally used. The appropriate level of protection measures is required to be taken for each respective category of data. For example, a processor of important data is required to designate the personnel and the management body responsible for data security, carry out risk assessments of its data processing activities and file the risk assessment reports with the competent authorities. Core data, i.e., data concerning national security, the lifelines of the national economy, important aspects of people's lives, and major public interests, shall be subject to stricter management system. Moreover, the PRC Data Security Law provides a national security review procedure for those data activities which affect or may affect national security and imposes export restrictions on certain data and information. In addition, the PRC Data Security Law also provides that any organization or individual within the territory of the PRC shall not provide any foreign judicial body and law enforcement body with any data without the approval of the competent PRC governmental authorities.

On July 6, 2021, certain PRC regulatory authorities issued Opinions on Strictly Cracking Down on Illegal Securities Activities, which, among others, provides for improving relevant laws and regulations on data security, cross-border data transmission, and confidential information management. It provides that efforts will be made to revise the regulations on strengthening the confidentiality and file management relating to the offering and listing of securities overseas, to implement the responsibility on information security of overseas listed companies, and to strengthen the standardized management of cross-border information provision mechanisms and procedures.

On July 30, 2021, the State Council promulgated the Regulations on Security Protection of Critical Information Infrastructure, which became effective on September 1, 2021. Pursuant to such regulation, critical information infrastructure refers to any important network facilities and information systems of an important industry and field such as public communication and information service, energy, transport, water conservation, finance, public services, e-government affairs and national defense related science and technology industry, and other industries and fields that may seriously endanger national security, people's livelihood and public interest in case of damage, function loss or data leakage. In addition, relevant administration departments of each important industry and field are responsible for formulating eligibility criteria and determining the critical information infrastructure in the respective industry or field. The operators will be informed by the relevant regulatory authority about the final determination as to whether they are categorized as "critical information infrastructure operators."

On September 24, 2024, the State Council published the Regulations on Network Data Security Management (the "Network Data Security Regulations"), which took effect on January 1, 2025. The Network Data Security Regulations provide that network data processors refer to individuals or organizations that autonomously determine the purpose and the manner of processing network data, and the network data processors engaging in data processing activities that affect or may affect national security shall be subject to the national security review in accordance with relevant laws and regulations. Additionally, the Network Data Security Regulations emphasize the obligations of important data processors, and clarify the definition and obligations of "large-scale network platform" service providers, with the "large-scale network platform" referring to a network platform with more than 50 million registered users or more than 10 million monthly active users, complex business types, and network data processing activities having a significant impact on national security, economic operation, national welfare and people's livelihood, etc.

*Regulations on Personal Information Protection*

On August 20, 2021, the SCNPC promulgated the PRC Personal Information Protection Law, which integrates the scattered rules with respect to personal information rights and privacy protection and took effect on November 1, 2021. Pursuant to the PRC Personal Information Protection Law, "personal information" refers to any kind of information related to an identified or identifiable individual as electronically or otherwise recorded but excluding the anonymized information. The processing of personal information includes the collection, storage, use, processing, transmission, provision, disclosure, and deletion of personal information. The PRC Personal Information Protection Law applies to the processing of personal information of individuals within the territory of the PRC, as well as personal information processing activities outside the territory of the PRC, for the purpose of providing products or services to natural persons located within China, for analyzing or evaluating the behaviors of individuals located within China, or for other circumstances as prescribed by laws and administrative regulations. The PRC Personal Information Protection Law provides a personal information processor may process the personal information of this individual only under the following circumstances: (i) where consent is obtained from the individual; (ii) where it is necessary for the execution or performance of a contract to which the individual is a party, or where it is necessary for carrying out human resource management pursuant to employment rules legally adopted or a collective contract legally concluded; (iii) where it is necessary for performing a statutory responsibility or statutory obligation; (iv) where it is necessary in response to a public health emergency, or for protecting the life, health or property safety of a natural person in the case of an emergency; (v) where the personal information is processed within a reasonable scope to carry out any news reporting, supervision by public opinions or any other activity for public interest purposes; (vi) where the personal information, which has already been disclosed by an individual or otherwise legally disclosed, is processed within a reasonable scope; or (vii) any other circumstance as provided by laws or administrative regulations. In principle, the consent of an individual must be obtained for the processing of his or her personal information, except under the circumstances of the aforementioned items (ii) to (vii). Where personal information is to be processed based on the consent of an individual, such consent shall be a voluntary and explicit indication of intent given by such individual on a fully informed basis. If laws or administrative regulations provide that the processing of personal information shall be subject to the separate consent or written consent of the individual concerned, such provisions shall prevail. In addition, the processing of the personal information of a minor under 14 years old must obtain the consent by a parent or a guardian of such minor and the personal information processors must adopt special rules for processing personal information of minors under 14 years old. The PRC Personal Information Protection Law also contains certain specific provisions with respect to the obligations of a personal information processor and imposes further obligations on a personal information processor that provides for basic internet platform services, has large number of users, or has complicated business activities. These obligations include, without limitation, formulation of an independent institution mainly comprising of outside members to supervise personal information processing activities, termination of provision of services for product or service providers on the platform whose personal information processing activities are in material violation of laws and regulations, and issuing personal information protection social responsibilities reports regularly.

*Regulations on Privacy Protection*

With respect to the security of information collected and used by mobile apps, pursuant to the Announcement of Conducting Special Supervision against the Illegal Collection and Use of Personal Information by Apps, which was issued on January 23, 2019, app operators should collect and use personal information in compliance with the Cybersecurity Law and should be responsible for the security of personal information obtained from users and take effective measures to strengthen the personal information protection. Furthermore, app operators must not force their users to make authorization by means of bundling, suspending installation or in other default forms and should not collect personal information in violation of laws, regulations, or breach of user agreements. Such regulatory requirements were emphasized by the Notice on the Special Rectification of Apps Infringing upon User's Personal Rights and Interests, which was issued by MIIT on October 31, 2019.

On November 28, 2019, the CAC, the MIIT, the Ministry of Public Security and the SAMR jointly issued the Methods of Identifying Illegal Acts of Apps to Collect and Use Personal Information. This regulation further illustrates certain commonly-seen illegal practices of apps operators in terms of personal information protection, including "failure to publicize rules for collecting and using personal information", "failure to expressly state the purpose, manner and scope of collecting and using personal information", "collection and use of personal information without consent of users of such App", "collecting personal information irrelevant to the services provided by such app in violation of the principle of necessity", "provision of personal information to others without users' consent", "failure to provide the function of deleting or correcting personal information as required by laws" and "failure to publish information such as methods for complaints and reporting". Among others, any of the following acts of an app operator will constitute "collection and use of personal information without consent of users": (i) collecting an user's personal information or activating the permission for collecting any user's personal information without obtaining such user's consent; (ii) collecting personal information or activating the permission for collecting the personal information of any user who explicitly refuses such collection, or repeatedly seeking for user's consent such that the user's normal use of such app is disturbed; (iii) any user's personal information which has been actually collected by the app operator or the permission for collecting any user's personal information activated by the app operator is beyond the scope of personal information which such user authorizes such app operator to collect; (iv) seeking for any user's consent in a non-explicit manner; (v) modifying any user's settings for activating the permission for collecting any personal information without such user's consent; (vi) using users' personal information and any algorithms to push any information from targeted sources, without providing the option of non-targeted pushing such information; (vii) misleading users to permit collecting their personal information or activating the permission for collecting such users' personal information by improper methods such as fraud and deception; (viii) failing to provide users with the means and methods to withdraw their permission of collecting personal information; and (ix) collecting and using personal information in violation of the rules for collecting and using personal information promulgated by such app operator.

Pursuant to the Notice of the Supreme People's Court, the Supreme People's Procuratorate and the Ministry of Public Security on Legally Punishing Criminal Activities Infringing upon the Personal Information of Citizens, issued in 2013, and the Interpretation of the Supreme People's Court and the Supreme People's Procuratorate on Several Issues regarding Legal Application in Criminal Cases Infringing upon the Personal Information of Citizens, which was issued on May 8, 2017 and took effect on June 1, 2017, the following activities may constitute the crime of infringing upon a citizen's personal information: (i) providing a citizen's personal information to specified persons or releasing a citizen's personal information online or through other methods in violation of relevant national provisions; (ii) providing legitimately collected information relating to a citizen to others without such citizen's consent (unless the information is processed, not traceable to a specific person and not recoverable); (iii) collecting a citizen's personal information in violation of applicable rules and regulations when performing a duty or providing services; or (iv) collecting a citizen's personal information by purchasing, accepting or exchanging such information in violation of applicable rules and regulations.

In addition, on May 28, 2020, the National People's Congress of the PRC approved the PRC Civil Code, which came into effect on January 1, 2021. Pursuant to the PRC Civil Code, the collection, storage, use, process, transmission, provision, and disclosure of personal information should follow the principles of legitimacy, properness and necessity.

On July 7, 2022, the CAC promulgated the Measures for the Security Assessment of Data Cross-border Transfer, or the Security Assessment Measures, which took effect on September 1, 2022, and aims to establish a continuous assessment and monitoring mechanism with respect to cross-border data transfers. The Security Assessment Measures requires that any data processor providing personal information and important data collected and generated during operations within the territory of the PRC or personal information that should be subject to security assessment according to law to an overseas recipient shall conduct security assessment. The Security Assessment Measures provides five circumstances, under any of which data processors shall apply to the national cyberspace administration for security assessment of data cross-border transfer. These circumstances include: (i) where a data processor provides important data abroad; (ii) where a CIIO or a data processor processing the personal information of more than one million individuals provides personal information abroad; (iii) where a data processor who has provided personal information of 100,000 individuals or sensitive personal information of 10,000 individuals in total since January 1 of the previous year provides personal information abroad; and (iv) other circumstances where a security assessment of cross-border data transfer is required as prescribed by the national cyberspace administration. Prior to applying for security assessment, a data processor shall conduct self-assessment on the risks of cross-border data transfers, with an emphasis on the following matters: (i) the legality, legitimacy and necessity of the purpose, scope and method of cross-border data transfers and data processing of the overseas recipient; (ii) the scale, scope, type and sensitivity of the data to be provided cross-border, and the risks to national security, public interests or the legitimate rights and interests of individuals or organizations caused by cross-border data transfers; (iii) the responsibilities and obligations that the overseas recipient promises to undertake, and whether the overseas recipient's management and technical measures and capabilities for performing its responsibilities and obligations could guarantee the security of the data; (iv) risks of the data to be tampered with, destroyed, divulged, lost, transferred, illegally obtained or illegally used during and after cross-border data transfers, and whether the channel for the maintenance of personal information rights and interests is unobstructed; (v) whether the relevant contracts on the data to be concluded with the overseas recipient or other legally binding documents have fully agreed on the responsibilities and obligations to protect the data security; and (vi) other matters that may affect the security of cross-border data transfers. The result of a security assessment of cross-border data transfer would be valid for two years, commencing from the date when the result is issued, and the data processor shall re-apply for an assessment if certain circumstances occur within the period of validity or 60 business days prior to the expiration of the period of validity. For cross-border data transfers that have been carried out before the effectiveness of the Security Assessment Measures, if not in compliance with these measures, rectification shall be completed within six months from the effectiveness of the Security Assessment Measures. On March 22, 2024, the CAC issued the Provisions on Promoting and Regulating Cross-border Flow of Data, or the New Cross-border Data Flow Provisions, which took effect on the same day. The New Cross-border Data Flow Provisions state that if there is any conflict with the Security Assessment Measures and the Measures for the Standard Contract for the Cross-border Transfer of Personal Information, the New Cross-border Data Flow Provisions shall prevail. The New Cross-border Data Flow Provisions set out scenarios under which certain obligations for the cross-border data transfer are waived, which include, among others, passing the security assessment of cross-border data transfer, concluding a standard contract for the cross-border transfer of personal information or passing the personal information protection certification.

**Regulations Relating to Rental Agreements**

Pursuant to the Law on Administration of Urban Real Estate which took effect in January 1995 with the latest amendment in August 2019, lessors and lessees are required to enter a written lease contract containing provisions such as the term of the lease, the intended use of the premises, the respective parties' liability for rent and repair, and other rights and obligations of both parties. Both lessor and lessee are also required to register the lease with the real estate administration department.

**Regulations Relating to Environmental Protection**

The Environmental Protection Law of the PRC (the "Environmental Protection Law") was promulgated and became effective on December 26, 1989, and was most recently amended on April 24, 2014. Pursuant to the Environmental Protection Law, an environmental impact assessment shall be conducted as legally required in the construction of a project impacting the environment. The pollution prevention and control installations in a construction project must be designed, built and used simultaneously with the body of the project. Enterprises, public institutions, and other businesses subject to pollutant discharge licensing management shall discharge pollutants according to the requirements of their respective pollutant discharge licenses; and those without a pollutant discharge license may not discharge pollutants.

The Environmental Impact Assessment Law of the PRC (the "Environmental Impact Assessment Law") was promulgated on October 28, 2002, and last amended on December 29, 2018. The Environmental Impact Assessment Law implements classified administration of environmental impact assessments for construction projects in accordance with the degree of environmental impact of construction projects. In the event of any possible significant environmental impact, an environmental impact report shall be prepared for comprehensive assessment of the environmental impact. In the event of any slight environmental impact, an environmental impact statement shall be prepared for analysis or assessment of specific items relating to the environmental impact. In the event of minimal environmental impact which does not warrant an environmental impact assessment, an environmental impact registration form shall be completed. Where the environmental impact assessment documents of a construction project are not examined or approved by the relevant examination and approval authorities, the construction shall not be permitted to commence.

On March 12, 2026, the National People's Congress formally adopted the Ecological and Environmental Code of the PRC, which shall officially come into force on August 15, 2026. Upon the effective date of such Ecological and Environmental Code, both the Environmental Protection Law and the Environmental Impact Assessment Law mentioned above will be officially repealed and cease to be in effect.

As of the date of this prospectus, the PRC subsidiaries have provided the required environmental impact assessments to the relevant government authorities, and none of the PRC subsidiaries have received any notice of material noncompliance by any relevant government authorities.

**Regulation Relating to Anti-Monopoly**

On August 30, 2007, the SCNPC adopted the PRC Anti-Monopoly Law, which was recently amended on June 24, 2022, and became effective on August 1, 2022, providing the regulatory framework for the PRC anti-monopoly. Under the PRC Anti-Monopoly Law, the prohibited monopolistic acts include monopolistic agreements, abuse of a dominant market position and concentration of businesses that may have the effect of eliminating or restricting competition.

Pursuant to the PRC Anti-Monopoly Law, a business operator that possesses a dominant market position is prohibited from abusing its dominant market position, including conducting the following acts: (i) selling commodities at unfairly high prices or buying commodities at unfairly low prices; (ii) without justifiable reasons, selling commodities at prices below cost; (iii) without justifiable reasons, refusing to enter into transactions with their trading counterparts; (iv) without justifiable reasons, allowing trading counterparts to make transactions exclusively with itself or with the business operators designated by it; (v) without justifiable reasons, tying commodities or imposing unreasonable trading conditions to transactions; (vi) without justifiable reasons, applying differential prices and other transaction terms among their trading counterparts who are on an equal footing; and (vii) other acts determined as abuse of dominant market position by the relevant governmental authorities.

Pursuant to Provisions on Thresholds for Prior Notification of Concentrations of Undertakings, or the Prior Notification Rules adopted by the State Council on January 22, 2024, when a concentration of undertakings occurs and reaches any of the following thresholds, the undertakings concerned shall file a prior notification with the anti-monopoly agency (i.e., the SAMR), (i) the total global turnover of all operators participating in the transaction exceeded RMB 10 billion in the preceding fiscal year and at least two of these operators each had a turnover of more than RMB 400 million within China in the preceding fiscal year, or (ii) the total turnover within China of all the operators participating in the concentration exceeded RMB 2 billion in the preceding fiscal year, and at least two of these operators each had a turnover of more than RMB 400 million within China in the preceding fiscal year are triggered, and no concentration shall be implemented until the anti-monopoly agency clears the anti-monopoly filing. Where, although a concentration of undertakings does not reach the threshold, there is evidence proving that the concentration has or may have effect of eliminating or restricting competition, the State Council may require the undertakings to file a prior notification. "Concentration of undertakings" means any of the following: (i) merger of undertakings; (ii) acquisition of control over another undertaking by acquiring equity or assets; or (iii) acquisition of control over, or exercising decisive influence on, another undertaking by contract or by any other means. If business operators fail to comply with the PRC Anti-Monopoly Law or other relevant regulations, the anti-monopoly agency is empowered to cease the relevant activities, unwind the transactions, and confiscate illegal gains and fines. Furthermore, business operators may be subject to criminal liability in the case of serious violation.

**Regulations Relating to Intellectual Property Rights**

*Trademarks*

The Trademark Law of the PRC (the "Trademark Law") was promulgated by the SCNPC on August 23, 1982, was last revised on April 23, 2019, and became effective on November 1, 2019. According to the Trademark Law, any natural person, legal person, or other organization that needs to obtain the exclusive right to use a trademark for its goods or services in the course of manufacturing and business activities shall apply to the trademark office of the administrative department for industry and commerce under the State Council for trademark registration. A registered trademark refers to a trademark that is registered with the approval of the trademark office.

The owner of a registered trademark enjoys the exclusive right to use the trademark. A registered trademark shall be valid for 10 years, commencing from the date when its registration is approved. The exclusive right to use a registered trademark shall be limited to trademarks which are registered upon approval and to the commodities on which the use of a trademark is approved.

According to the Trademark Law, if anyone uses a trademark that is similar to a registered trademark on the same kind of goods, or uses a trademark that is identical with or similar to the registered trademark on similar goods, without the authorization of the registered trademark owner, and the use is likely to cause confusion, such use shall constitute infringement on the trademark owner's exclusive right to use the registered trademark. Any dispute over infringement upon the exclusive right to use a registered trademark shall be resolved through negotiation. Where the parties concerned refuse to negotiate or a negotiation fails, the trademark registrant or any interested party may file a lawsuit in the court or request the administrative department for industry and commerce to deal with the dispute.

As of the date of this prospectus, the Operating Entities have 43 registered trademarks in the PRC.

*Copyrights*

The Copyright Law of the PRC (the "Copyright Law") was promulgated by the SCNPC on September 7, 1990, and was last amended on November 11, 2020, and became effective on June 1, 2021. According to the Copyright Law, works of Chinese citizens, legal persons, or unincorporated organizations, whether published or not, shall have copyright in accordance with the Copyright Law. The National Copyright Administration shall be responsible for the administration of copyrights nationwide. The local departments of copyright at or above the county level shall be responsible for the administration of copyright in their respective administrative regions.

The duration of copyright protection is generally fifty years. Copyright includes the right of publication, authorship, alteration, integrity, reproduction, distribution, rental, exhibition, performance, projection, broadcasting, communication through information network, cinematography, adaptation, translation, compilation, and other rights.

A copyright dispute may be settled through mediation or be submitted to an arbitration institution for arbitration under a written arbitration agreement between the parties or under the arbitration clause in the copyright contract. In the event there is neither a written arbitration agreement between the parties nor an arbitration clause in the copyright contract, parties may directly bring a lawsuit in a court.

As of the date of this prospectus, the Operating Entities have 72 registered copyrights in the PRC.

*Patents*

According to the PRC Patent Law promulgated by the SCNPC on March 12, 1984, with the currently effective version took effect from June 1, 2021, and the Implementation Rules of the PRC Patent Law, which was promulgated by the State Council in December 12, 1992 and last amended on December 11, 2023, there are three types of patents in the PRC: invention patents, utility model patents and design patents. The protection period is 20 years for an invention patent and 10 years for a utility model patent and 15 years for a design patent, commencing from their respective application dates. Any individual or entity that utilizes a patent or conducts any other activities that infringe a patent without prior authorization of the patent holder shall pay compensation to the patent holder and is subject to a fine imposed by relevant administrative authorities and, if constituting a crime, shall be held criminally liable in accordance with the law. According to the PRC Patent Law, any organization or individual that applies for a patent in a foreign country for an invention or utility model patent established in China is required to report to the National Intellectual Property Administration for confidentiality examination.

As of the date of this prospectus, the Operating Entities have 31 registered patents in the PRC.

*Domain Name* 

The Administrative Measures for Internet Domain Names was promulgated by the MIIT on August 24, 2017, and became effective on November 1, 2017. It applies the "first-to-file" principle to domain name registration service, unless otherwise provided in relevant rules.

According to the Interpretation of the Supreme People's Court on several issues concerning the Applicable Law in the trial of civil cases involving network domain names promulgated on July 17, 2001 and amended on December 29, 2020, where the court determines that the registration and use of a domain name constitutes infringement or unfair competition, it may order the defendant to stop the infringement or cancel the domain name, or, at the request of the plaintiff, order the plaintiff to register and use the domain name. If actual damage is caused to the right holder, the defendant may be ordered to compensate for the loss.

As of the date of this prospectus, the Operating Entities have two registered domain names in the PRC.

As of the date of this prospectus, to the best of our knowledge, we have legally obtained adequate copyrights, trademarks, and domains names to support our operations and as our business develops, we may need to apply for or obtain more intellectual rights. To the best of our knowledge, neither we, nor any of the PRC subsidiaries have infringed, nor have we received any notice of infringement or been subject to any disputes regarding the intellectual property of others since our inception.

**Regulations Relating to Taxation**

*Enterprise Income Tax ("EIT")*

According to the Enterprise Income Tax Law of the PRC (the "PRC EIT Law"), which became effective on January 1, 2008, and amended on February 24, 2017, and December 29, 2018, and the Implementation Rules of the PRC EIT Law, which was promulgated by the State Council in December 2007, last amended on December 6, 2024 and became effective on January 20, 2025, an enterprise established outside the PRC with a de facto management body within the PRC is considered as a resident enterprise for PRC enterprise income tax purposes. An enterprise which is established under the laws of foreign countries and has no de facto management body within the PRC, but has established institutions or premises in the PRC, or has no such institutions or premises but has income generated from the PRC, is considered as a non-resident enterprise. EIT shall be applicable at a uniform rate of 25% to both resident and non-resident enterprises. EIT shall be payable by a resident enterprise for income sourced within or outside the PRC. EIT shall be payable by a non-resident enterprise, for income sourced within the PRC by its institutions or premises established in the PRC, and for income sourced outside the PRC for which the institutions or premises established in the PRC have a de facto relationship. Where the non-resident enterprise has no institutions or premises established in the PRC or has income bearing no de facto relationship with the institution or premises established in the PRC, EIT shall be payable by the non-resident enterprise only for income sourced within the PRC at the rate of 20%. A PRC withholding tax at the rate of 10% is applicable to dividends payable to foreign investors that are non-resident enterprises to the extent that such dividends have their sources within the PRC, unless otherwise provided in any applicable tax treaty. Similarly, any gain realized on the transfer of equity interests by such investors is subject to the EIT at the rate of 10% if such gain is regarded as income derived from the PRC.

The applicable EIT rate of the PRC subsidiaries is 25%, 15% (if qualified as high and new technology enterprise) or 5% (if qualified as small-scaled minimal profit enterprise). As of the date of this prospectus, there have not been any notifications of any instances of any material non-compliance to the PRC EIT Law and rules in China provided to us or any of the PRC subsidiaries by the relevant government authorities.

*Value-added Tax ("VAT")*

Pursuant to the Pilot Scheme for Replacing Business Tax with Value-Added Tax (the "Pilot Scheme"), which was issued jointly by the Ministry of Finance of the PRC ("MOF") and the SAT on November 16, 2011 and became effective on the same day, the VAT rate of 17% applies to movable property leasing services, the VAT rate of 11% applies to transportation and construction services, and the VAT rate of 6% applies to the other modern services, such as research and technical services, information technology services, cultural and creative services, and logistics support services. As of August 1, 2013, the Pilot Scheme has been implemented nationwide.

Pursuant to the Provisional Regulations on Value-added Tax of the PRC (the "VAT Regulations"), which was promulgated by the State Council on December 13, 1993, and was last amended and became effective on November 19, 2017, and the Implementing Rules of the Provisional Regulations on Value-added Tax of the PRC, which was promulgated by the MOF on December 25, 1993, and was last amended on October 28, 2011, entities or individuals in the PRC engaging in the sale of goods, services, intangible assets or real estate, the provision of processing, repairs and replacement services, and the importation of goods are required to pay VAT. The amount of VAT payable is calculated by subtracting "input VAT" from "output VAT." Where a taxpayer engages in the sale or importation of goods, provision of processing, repairs, and replacement services, or moving property leasing, the VAT rate is 17%, except as otherwise provided in the VAT Regulations.

On December 25, 2024, the Standing Committee of the National People's Congress of the PRC promulgated the Value-Added Tax Law of the People's Republic of China, which became effective on January 1, 2026 and the above provisional regulations have been superseded.

The applicable VAT rate of the PRC subsidiaries is 13%, 6%, or 3%. As of the date of this prospectus, there have not been any notifications of any instances of any material non-compliance to the VAT rules and regulations in China provided to us nor to any of the PRC subsidiaries by the relevant government authorities.

**Regulations Relating to Employment and Social Welfare**

*Labor Contracts*

Pursuant to the Labor Contract Law of the PRC, which was adopted by the SCNPC on June 29, 2007, was amended on December 28, 2012, and became effective on July 1, 2013, and the Regulations on Implementation of the Labor Contract Law of the PRC, which was promulgated by the State Council and became effective on September 18, 2008, a written labor contract should be concluded to establish a labor relationship. If no written labor contract is concluded as of the date of employment, such contract shall be concluded within one month as of the date of employment. If an employer fails to conclude a written labor contract with an employee for more than one month but less than one year as of the date of employment, the employer shall pay the employee two times his monthly salary. In addition, if an employer fails to conclude a written labor contract with an employee within one year as of the date of employment, the employer shall be deemed to have concluded an open-ended labor contract with the employee.

As of the date of this prospectus, there have not been notifications of any instances of non-compliance to the labor-related laws in China provided to us nor to any of the PRC subsidiaries by the relevant government authorities.

*Social Insurance and Housing Provident Fund*

According to the Social Insurance Law of the PRC (the "Social Insurance Law"), which was promulgated by the SCNPC on October 28, 2010, and was amended and became effective on December 29, 2018, employees shall participate in the basic endowment insurance, basic medical insurance, unemployment insurance, employment injury insurance and maternity insurance. The basic endowment, medical insurance and unemployment insurance premiums shall be jointly paid by employers and employees. The employment injury insurance and maternity insurance premiums shall be paid by employers rather than employees. An employer shall apply to the local social insurance agency for social insurance registration in accordance with the Social Insurance Law. In addition, an employer shall declare and pay social insurance premiums in full and on time. No postponement, reduction or exemption of payment shall be allowed without any force majeure or other statutory exceptions.

According to the Regulations on Management of Housing Provident Fund, which was promulgated by the State Council, and was last amended and became effective on March 24, 2019, an employer needs to pay housing provident funds for its employees. A newly established entity shall register with the relevant housing provident fund management center within 30 days from the date of establishment and open a housing provident fund account at a designated bank on behalf of its employees within 20 days from the date of registration. When hiring a new employee, an employer shall register with the housing provident fund management center within 30 days from the date of employment and open a housing provident fund account for such new employee at a designated bank. An employer shall pay the full amount of the housing provident fund on time and shall not be overdue in the payment or underpay the housing provident fund. The housing provident fund payment by both an employer and an employee shall not be less than 5% of the average monthly salary of the employee in the previous year. If an employer fails to make full payment of housing provident funds for its employees in accordance with relevant laws and regulations, the housing provident fund management center shall order such employer to make the payment within a prescribed time limit. If payment is still not made within the prescribed time limit, an application may be made to the court for compulsory enforcement.

**Regulations Relating to Foreign Currency Exchange and Dividend Distributions**

*Foreign Currency Exchange*

According to the Regulations on the Foreign Exchange Control of the PRC (the "Foreign Exchange Administration Regulations"), which was promulgated by the State Council on January 29, 1996, and was last amended on August 5, 2008, payments of current account items, such as trade and service-related foreign exchange transactions and dividend payments, can be made in foreign currencies without prior approval from the SAFE. However, prior approval from the SAFE is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital account items, such as capital transfer, direct investment, investment in securities, derivative products, or loans. Under the Foreign Exchange Administration Regulations, if an FIE intends to pay dividends and provides certain evidence documents (board resolution, tax certificates, etc.), such enterprise may purchase foreign currency without approval of the SAFE. If an FIE intends to engage in trade and services-related foreign exchange transactions and provides relevant commercial documents, such enterprise may purchase foreign currency without approval of the SAFE. An FIE may retain a certain amount of foreign currency, subject to a cap approved by the SAFE, to satisfy its foreign currency liabilities. In addition, foreign exchange transactions involving overseas direct investment, investment in securities, or derivative products must be registered with the governmental authorities in charge of foreign exchange administration and must be approved or put on record by the other relevant governmental authorities where necessary.

The Circular on Reforming the Administrative Approaches to Settlement of Foreign Exchange Capital of Foreign-invested Enterprises (the "SAFE Circular 19") was promulgated by the SAFE on March 30, 2015, became effective on June 1, 2015 and was last amended on March 23, 2023. In comparison to the Foreign Exchange Administration Regulations, the SAFE Circular 19 provides greater flexibility to an FIE in converting foreign exchange capital in its capital account into Renminbi funds and allows an FIE to use its converted Renminbi funds to make equity investments in China after performing required procedures. Under the SAFE Circular 19, an FIE may choose to convert any amount of foreign exchange capital in its capital account into Renminbi funds according to its actual business needs. The converted Renminbi funds will be kept in a designated account. If an FIE intends to initiate a new foreign exchange transaction in its capital account, it must provide supporting documents and go through the review process with the bank. An FIE is allowed to use its converted Renminbi funds only within the approved business scope.

On June 9, 2016, the SAFE issued the Circular on Management of Foreign Exchange Settlement under the Capital Account (the "SAFE Circular 16"), which reiterates some of the rules set forth in the SAFE Circular 19. According to the SAFE Circular 16, an enterprise may convert its foreign exchange capital, foreign debt, and funds recovered from overseas listing into Renminbi on a discretionary basis. The converted Renminbi funds may be used to extend loans to related parties or repay inter-company loans (including advances by third parties).

On November 19, 2012, the SAFE promulgated the Circular of Further Improving and Adjusting Foreign Exchange Administration Policies on Foreign Direct Investment (the "SAFE Circular 59"), which became effective on December 17, 2012, and was amended on December 30, 2019. The SAFE Circular 59 amends and simplifies the foreign exchange procedure. According to the SAFE Circular 59, approval or verification from the SAFE is not required for a foreign investor or an FIE: (i) to open various special purpose foreign exchange accounts, such as pre-investment expenses accounts, foreign exchange capital accounts, asset realization accounts, and guarantee accounts; (ii) to reinvest his lawful income derived in the PRC, such as profits, proceeds of equity transfer, capital reduction, liquidation and early repatriation of investment; or (iii) to remit foreign exchange capital as a result of capital reduction, liquidation, early repatriation or stock transfer. Multiple capital accounts for the same entity may be opened in different provinces.

On July 4, 2014, the SAFE promulgated the Circular of the SAFE on Foreign Exchange Administration of Overseas Investments and Financing and Round-Trip Investments by Domestic Residents via Special Purpose Vehicles (the "SAFE Circular 37"). According to the SAFE Circular 37, a Chinese resident must apply to a local SAFE branch to register foreign exchange before contributing money to an overseas SPV. An overseas SPV refers to an overseas company that is directly incorporated or indirectly controlled by a Chinese resident using its assets or rights and interests for the purpose of investments and financing. Following the initial registration, in the event of any alternation in the basic information, such as shareholders, name and operating duration of any individual Chinese resident, or key information, such as increases or decreases in capital, or equity transfers, swaps, consolidations, or splits, a Chinese resident must register the change in the foreign exchange with a local SAFE branch. If a Chinese shareholder holding interest in an overseas SPV fails to fulfill the required SAFE registration, the SPV's PRC subsidiaries may be restricted from making profit distributions to the offshore parent and prohibited from carrying out cross-border foreign exchange transactions, and the SPV may be restricted from contributing additional capital to its PRC subsidiaries. Furthermore, failure to comply with the various SAFE registration requirements described above could result in liability under the PRC law for evasion of foreign exchange controls.

On February 13, 2015, the Circular of Further Simplifying and Improving the Foreign Exchange Management Policies for Direct Investment (the "SAFE Circular 13") was promulgated by the SAFE and took effect on June 1, 2015 and was last amended on December 30, 2019. The SAFE Circular 13 cancels registration and verification of foreign exchange under direct investment. Chinese and overseas investment entities can go directly to banks for registration for foreign exchange under domestic or overseas direct investment. The SAFE Circular 13 simplifies procedures for some direct investment-related foreign exchange transactions and cancels annual check of foreign exchange for direct investment and replaces it with registration for accumulated equity in domestic and overseas direct investment.

Pursuant to the Circular 37, a PRC resident shall register with a local SAFE branch before he or she contributes assets or equity interests in an overseas SPV, that is directly established or controlled by the PRC resident for the purpose of conducting overseas investment or financing. Failure to comply with the SAFE registration requirements could result in penalties for evasion of foreign exchange controls. The Circular No. 13 provides that banks can directly handle the initial foreign exchange registration and amendment registration under the Circular 37.

All of the PRC resident shareholders of our Company completed the initial foreign exchange registration on August 21, 2023.

*Dividend Distributions*

If we determine to pay dividends on any of the ADSs in the future, as a holding company incorporated in the Cayman Islands, we will be dependent on receipt of funds from our Hong Kong subsidiary, ABGreen HK.

Current PRC regulations permit our indirect PRC subsidiaries to pay dividends to ABGreen HK only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our subsidiaries in China is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each such entity in China is also required to further set aside a portion of its after-tax profits to fund the employee welfare fund, although the amount to be set aside, if any, is determined at the discretion of its board of directors. Although the statutory reserves can be used, among other purposes, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation.

The PRC government imposes controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in complying with the administrative requirements necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries and affiliates in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments. If we or our subsidiaries are unable to receive all of the revenue from our operations, we may be unable to pay dividends on the ADSs.

Cash dividends, if any, on the ADSs will be paid in U.S. dollars. ABGreen HK may be considered a non-resident enterprise for PRC tax purposes. Any dividends that our PRC subsidiaries pay to ABGreen HK may be regarded as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%.

For us to pay dividends to our shareholders, we will rely on payments made from the Operating Entities in the PRC to CZTI WFOE, from CZTI WFOE to ABGreen HK, and the distribution of such payments indirectly to our Company. According to the PRC EIT Law, such payments from subsidiaries to parent companies in China are subject to the PRC enterprise income tax at a rate of 25%.

Pursuant to the Arrangement between mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project. The 5% withholding tax rate, however, does not automatically apply and certain requirements must be satisfied, including without limitation that (i) the Hong Kong project must be the beneficial owner of the relevant dividends; and (ii) the Hong Kong project must directly hold no less than a 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends. As of the date of this prospectus, ABGreen HK is more likely to be subject to the 10% withholding tax rate. If ABGreen HK is considered as a Hong Kong resident enterprise, as stipulated by the Double Tax Avoidance Arrangement and other applicable laws, the withholding tax may be reduced to 5%.

**Regulations Relating to Stock Incentive Plans**

According to the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company, or the Share Incentive Rules, which was issued on February 15, 2012 and other regulations, directors, supervisors, senior management and other employees participating in any share incentive plan of an overseas listed company who are PRC citizens or non-PRC citizens residing in China for a continuous period of not less than one year, subject to certain exceptions, are required to register with the SAFE. All such participants need to authorize a qualified PRC agent, such as a PRC subsidiary of the overseas listed company to register with the SAFE and handle foreign exchange matters such as opening accounts, transferring and settlement of the relevant proceeds. The Share Incentive Rules further require an offshore agent to be designated to handle matters in connection with the exercise of share options and sales of proceeds for the participants of the share incentive plans. Failure to complete the said SAFE registrations may subject us and the participants to fines and legal sanctions.

In addition, the SAT has issued certain circulars concerning employee stock options and restricted shares. Under these circulars, employees working in the PRC who exercise stock options or are granted restricted shares will be subject to PRC individual income tax. The PRC subsidiaries of an overseas listed company are required to file documents related to employee stock options and restricted shares with relevant tax authorities and to withhold individual income taxes of employees who exercise their stock option or purchase restricted shares. If the employees fail to pay or the PRC subsidiaries fail to withhold income tax in accordance with relevant laws and regulations, the PRC subsidiaries may face sanctions imposed by the tax authorities or other PRC governmental authorities.

**MANAGEMENT**

**Directors and Executive Officers**

The following table sets forth information regarding our directors and executive officers as of the date of this prospectus.

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| | | |
|:---|:---|:---|
| **Directors and Executive Officers** | **Age** | **Position/Title** |
| Baitong Tang | 48 | Chairman, Chief Executive Officer, and Director |
| Lili Guan | 50 | Chief Financial Officer and Director |
| Ho Ka Chun\* | 49 | Independent Director Nominee |
| Kenneth Charles Rumph\* | 62 | Independent Director Nominee |
| Victor Ten Tian Hock\* | 59 | Independent Director Nominee |

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\*We intend to appoint these individuals as independent directors, effective upon the SEC's declaration of effectiveness of our registration statement on Form F-1, of which this prospectus is a part.

**Baitong Tang – Chairman, Chief Executive Officer, and Director**

Baitong Tang has served as the Chairman of the board of directors (the "Board") of the Company since July 13, 2023, and Chief Executive Officer of the Company since September 9, 2023. He has also served as the executive director of ABGreen Shenzhen RSC since August 2, 2013, the founder and chairman of ABGreen Shenzhen since March 23, 2016, the executive director of Shenqiu ABGreen Environmental Protection Technology Co., Ltd since April 2019, an executive director of CZTI Shenzhen since June 2022, an executive director of AGreen AnKang since June 2022, an executive director of Xieguan Tonglian since January 2024, an executive director of Shenzhen Zeyi, Shenzhen Bgreen and Shenzhen Digital since February 2024, an executive director of Shenzhen Chuangzhiyuan since March 2024, and an executive director of Beijing Guoxun since May 2024. From June 2012 to December 2015, he served as the Executive Deputy General Manager of Shenzhen Taolv Information Technology Co., Ltd. From July 2006 to January 2010, he served as the Deputy General Manager of Foshan Tiantian new network technology Co., Ltd. From May 2004 to March 2006, he served as the Technical Engineer of China software and Technology Services Co., Ltd. From June 2001 to March 2004, he worked in Guangzhou modern video Co., Ltd. and successively held the posts of Product Testing and Product Manager, etc. From July 1998 to May 2001, he served as the Deputy Secretary of the Youth League Committee of the power branch of Sichuan Guangwang Group. Mr. Tang received his bachelor's degree in computer technology from Guangdong University of Technology in 2007 and a junior college diploma of computer automatic control from Chongqing Electric Power College in 1998.

**Lili Guan - Chief Financial Officer and Director**

Lili Guan has served as a director of the Board of the Company since July 13, 2023, and the Chief Financial Officer since September 9, 2023. She has served as the Chief Financial Officer of ABGreen Shenzhen since September 2016. From February 2015 to September 2016, she served as the Chief Financial Officer of Shenzhen TaoLv Information Technology Co., Ltd. Mrs. Guan worked as a Financial Manager of Yangyu Optoelectronics (Shenzhen) Co., Ltd. from March 2003 to February 2015. Mrs. Guan received a junior college diploma in finance from Beijing Language University in July 2005.

**Ho Ka Chun – Independent Director Nominee**

Ho Ka Chun has served as Vice President of Hades Group (Hong Kong) Ltd. since March 2024. From January 2018 to February 2024, Mr. Ho served as Vice President of Family Fortune Consultancy Company. Prior to that, Mr. Ho held positions of increasing responsibility in the banking and financial services sectors, including serving in the Corporate Banking Division and Risk Management department at The Bank of East Asia from July 2004 to October 2017, as Assistant Relationship Manager at Bank of China (Hong Kong) Limited from September 2002 to June 2004, in the Sales Development Department at Eagle Star Financial Adviser from June 2001 to September 2002, as Assistant Research Analyst at CN-Market from October 2000 to May 2001, and as a Credit Officer at The China and South Sea Bank Ltd. from October 1999 to October 2000. Mr. Ho brings extensive experience in the financial industry, with expertise spanning corporate banking, risk management, finance, investment, taxation, and regulatory matters. Mr. Ho received his Executive Master of Business Administration degree from the Olin Business School at Washington University in St. Louis, in partnership with Fudan University, in 2018. He received his Bachelor's degree in Financial Engineering from The Chinese University of Hong Kong in 1999.

Mr. Ho is qualified to serve as a member of our board of directors due to his extensive experience in corporate banking, risk management, and financial advisory services, as well as his leadership roles spanning over two decades in the financial services industry.

**Kenneth Charles Rumph – Independent Director Nominee**

Kenneth Charles Rumph has served as an Equity Analyst at Goodbody AIB since December 2022, specializing in CleanTech and environmental research. From December 2017 to July 2022, Mr. Rumph served as an Equity Analyst at Jefferies International, covering the video games, clean technology, and SMID growth sectors. From October 2013 to December 2017, Mr. Rumph served as an Equity Analyst at Stifel Nicolaus Europe (formerly Oriel Securities), where he conducted research on clean technology and IP commercialization. From September 2009 to September 2013, Mr. Rumph served as an Equity Analyst in the clean technology sector at Nomura Code. From November 2007 to August 2009, Mr. Rumph served as an Equity Analyst at Clear Capital/Noble. From November 1997 to May 2006, Mr. Rumph served as Sector Head at Merrill Lynch. From June 1993 to November 1997, Mr. Rumph served as a Research Analyst at UBS Securities. From October 1986 to June 1993, Mr. Rumph served as Research Analyst and Fund Manager at Scottish Amicable Investment Managers.

Mr. Rumph received his Master of Science degree in Environmental Management for Business from Cranfield University in 2007. He received his Bachelor of Arts degree (Honours) in Natural Sciences from Trinity College, Cambridge in 1986. Mr. Rumph has been ranked in the top three in the Institutional Investor/Extel surveys in three different sectors over the course of his career. He has established new sector franchises at both small and large financial institutions and is recognized as a thought leader in ESG matters.

Mr. Rumph is qualified to serve as a member of our board of directors due to his extensive experience in equity research and industry analysis related to energy, environmental protection, clean technology, and ESG, as well as his academic background in science and environmental management.

**Victor Ten Tian Hock – Independent Director Nominee**

Victor Ten Tian Hock has served as Chief Financial Officer of BHG Retail Reit (SGX Listed) since January 2018. From November 2013 to December 2017, Mr. Ten served as Financial Controller at Hyflux Ltd, a Singapore-based company. From January 2013 to October 2013, Mr. Ten served as Group Financial Controller at YCH Group Pte Ltd in Singapore. From October 2011 to December 2012, Mr. Ten served as Group Financial Controller at Pacific Healthcare Holdings Ltd in Singapore. From October 2006 to March 2010, Mr. Ten served as Financial Controller at Gamuda Bhd, a company listed on Bursa Malaysia (KLSE). Mr. Ten has over 20 years of cross-sector experience spanning fintech, real estate, hospitality, and infrastructure, with deep expertise in financial operations, tax, and regulatory compliance. He is experienced in managing multi-jurisdictional finance structures and leading finance functions in high-growth, regulated environments.

Mr. Ten received his Bachelor of Arts degree (Honours) in Accounting from the University of Bolton (United Kingdom). He completed the Data Analytics and Business Insights program online courses at the Wharton Business School in 2023.

Mr. Ten is qualified to serve as a member of our board of directors due to his extensive experience as a chief financial officer and financial controller across multiple industries, his expertise in financial operations, tax, and compliance matters, and his experience managing complex, multi-jurisdictional corporate structures.

**Family Relationships**

None of our directors or executive officers have a family relationship as defined in Item 401 of Regulation S-K.

**Controlled Company**

Upon completion of this offering, our Chairman of the board, Mr. Baitong Tang, through Expola Investment Limited, Beveist Investment Limited, Getcher Investment Limited, Endoeval Investment Limited, will beneficially own approximately 84.53% of the aggregate voting power of our issued and outstanding Class A and Class B ordinary shares as a group, assuming no exercise of the underwriters' over-allotment option and including the assumed sale of 1,500,000 Shareholder ADSs. As a result, we will be deemed a "controlled company" for the purpose of the Nasdaq listing rules. As a controlled company, we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements, including:

● the requirement that our director nominees be selected or recommended solely by independent directors; and

● the requirement that we have a nominating and corporate governance committee and a compensation committee that are composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committees.

Although we do not intend to rely on the controlled company exemptions under the Nasdaq listing rules even if we are deemed a controlled company, we could elect to rely on these exemptions in the future, and if so, you would not have the same protection afforded to shareholders of companies that are subject to all the corporate governance requirements of Nasdaq.

**Board of Directors**

Our board of directors will consist of five directors upon closing of this offering, three of whom will be "independent" within the meaning of the corporate governance standards of the Nasdaq listing rules and will meet the criteria for independence set forth in Rule 10A-3 of the Exchange Act.

The shareholding qualification for directors may be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required. None of our directors has a service contract with us that provides for benefits upon termination of service.

**Committees of the Board of Directors**

We will establish three committees under the board of directors immediately upon the effectiveness of our registration statement on Form F-1, of which this prospectus is a part: an audit committee, a compensation committee, and a nominating and corporate governance committee. We have adopted a charter for each of the three committees. Each committee's members and functions are described below.

***Audit Committee***

Our audit committee will consist of Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph. Ho Ka Chun will be the chairperson of our audit committee. We have determined that Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph will satisfy the "independence" requirements of the Nasdaq listing rules under and Rule 10A-3 under the Securities Exchange Act. Our board also has determined that Ho Ka Chun qualifies as an audit committee financial expert within the meaning of the SEC rules or possesses financial sophistication within the meaning of the Nasdaq listing rules. The audit committee will oversee our accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee will be responsible for, among other things:

● appointing the independent auditors and pre-approving all auditing and non-auditing services permitted to be performed by the independent auditors;

● reviewing with the independent auditors any audit problems or difficulties and management's response;

● discussing the annual audited financial statements with management and the independent auditors;

● reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any steps taken to monitor and control major financial risk exposures;

● reviewing and approving all proposed related party transactions;

● meeting separately and periodically with management and the independent auditors; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

***Compensation Committee***

Our compensation committee will consist of Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph. Victor Ten Tian Hock will be the chairperson of our compensation committee. We have determined that Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph will satisfy the "independence" requirements of the Nasdaq listing rules and Rule 10C-1 under the Securities Exchange Act. The compensation committee will assist the board in reviewing and approving the compensation structure, including all forms of compensation relating to our directors and executive officers. Our chief executive officer may not be present at any committee meeting during which his compensation is deliberated. The compensation committee will be responsible for, among other things:

● reviewing and approving the total compensation package for our most senior executive officers;

● approving and overseeing the total compensation package for our executives other than the most senior executive officers;

● reviewing and recommending to the board with respect to the compensation of our directors;

● reviewing periodically and approving any long-term incentive compensation or equity plans;

● selecting compensation consultants, legal counsel, or other advisors after taking into consideration all factors relevant to that person's independence from management; and

● reviewing programs or similar arrangements, annual bonuses, employee pension, and welfare benefit plans.

***Nominating and Corporate Governance Committee***

Our nominating and corporate governance committee will consist of Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph. Kenneth Charles Rumph will be the chairperson of our nominating and corporate governance committee. We have determined that Ho Ka Chun, Victor Ten Tian Hock and Kenneth Charles Rumph will satisfy the "independence" requirements of the Nasdaq listing rules. The nominating and corporate governance committee will assist the board of directors in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee will be responsible for, among other things:

● identifying and recommending nominees for election or re-election to our board of directors or for appointment to fill any vacancy;

● reviewing annually with our board of directors its current composition considering the characteristics of independence, age, skills, experience, and availability of service to us;

● identifying and recommending to our board the directors to serve as members of committees;

● advising the board periodically with respect to significant developments in the law and practice of corporate governance as well as our compliance with applicable laws and regulations, and making recommendations to our board of directors on all matters of corporate governance and on any corrective action to be taken; and

● monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and effectiveness of our procedures to ensure proper compliance.

**Duties of Directors**

Under Cayman Islands law, our directors owe fiduciary duties to our company, including a duty of loyalty, a duty to act honestly, and a duty to act in good faith in what they consider to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors also have a duty to exercise the skills they possess and such care and diligence that a reasonably prudent person would exercise in comparable circumstances.

In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association as may be amended from time to time. Our company has a right to seek damages against any director who breaches a duty owed to us.

The functions and powers of our board of directors include, among others:

● convening shareholders' annual general meetings and reporting its work to shareholders at such meetings;

● declaring dividends and distributions;

● appointing officers and determining the term of office of officers; and

● exercising the borrowing powers of our company and mortgaging the property of our company.

**Code of Ethics and Corporate Governance**

We will adopt a code of ethics, which will be applicable to all our directors, executive officers, and employees prior to the effectiveness of our registration statement on Form F-1, of which this prospectus is a part. We will make our code of ethics publicly available on our website.

In addition, our board of directors will adopt a set of corporate governance guidelines covering a variety of matters, including approval of related party transactions prior to the effectiveness of our registration statement on Form F-1, of which this prospectus is a part.

**Terms of Directors and Officers**

Our officers are elected by and serve at the discretion of the board of directors. Our directors are not subject to a term of office and hold office until their resignation, death, or incapacity, or until their respective successors have been elected and qualified or until his or her office is otherwise vacated in accordance with our amended and restated articles of association as may be amended from time to time.

A director will also be removed from office automatically if, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his creditors, (ii) dies or is found to be or becomes of unsound mind, (iii) resigns his office by notice in writing, (iv) without special leave of absence from our board, is absent from meetings of our board for a continuous period of six months, or (v) is removed from office pursuant to any other provisions of our amended and restated memorandum and articles of association as may be amended from time to time.

**Interested Transactions**

A director may, subject to any separate requirement for audit committee approval under applicable law, the amended and restated memorandum and articles of association, as may be amended from time to time, or the Nasdaq Listing Rules, or disqualification by the chairman of the relevant board meeting, vote in respect of any contract or transaction in which he or she has an interest which is not a material interest, provided that the nature of the interest of any directors in such contract or transaction is disclosed by him or her at or prior to its consideration and any vote in that matter.

**Limitation on Liability and Other Indemnification Matters**

Cayman Islands law allows us to indemnify our directors, officers and auditors acting in relation to any of our affairs against actions, costs, charges, losses, damages, and expenses incurred by reason of any act done or omitted in the execution of their duties as our directors, officers and auditors.

Under our amended and restated memorandum and articles of association, we may indemnify our directors and officers, among other persons, from and against all actions, costs, charges, losses, damages and expenses which they or any of them may incur or sustain by reason of any act done, concurred in or omitted in or about the execution of their duty or supposed duty in their respective offices or trusts, except such (if any) as they shall incur or sustain through their own fraud or dishonesty.

**Employment Agreements and Indemnification Agreements**

We have entered into employment agreements with our executive officers. Each of our executive officers is employed for a continuous term until the executive officer's successor is duly elected or appointed and qualified or until the executive officer's earlier death, disqualification, resignation or removal from office, pursuant to the terms of the employment agreement, the Company's then current memorandum and articles of association, as may be amended from time to time, or any applicable laws, rules, or regulations. We may terminate an executive officer's employment for cause, at any time, without notice or remuneration, if the executive officer is convicted or pleads guilty to a felony or to an act of fraud, misappropriation or embezzlement, has been grossly negligent or acted dishonestly to the detriment of the Company, has engaged in actions amounting to willful misconduct or failed to perform his duties under this employment agreement and such failure continues after the executive officer is afforded a reasonable opportunity to cure such failure, or the executive officer violates confidentiality term of the employment agreement. An executive officer may terminate his or her employment at any time with one month's prior written notice.

We have also entered into indemnification agreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers against all liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our company to the fullest extent permitted by law with certain limited exceptions.

**Compensation of Directors and Executive Officers**

During the fiscal year ended December 31, 2024 and 2025, we paid an aggregate of approximately RMB1.1 million and RMB1.0 million to our executive officers and directors, respectively, and we did not pay any compensation to our independent directors. Our PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her medical insurance, maternity insurance, workplace injury insurance, unemployment insurance, pension benefits through a PRC government-mandated multi-employer defined contribution plan and other statutory benefits. We made contributions to our executive officers and directors' medical insurance, unemployment insurance, and other statutory benefits as required by PRC law, which totaled approximately RMB 0.1 million and RMB 0.1 million for the fiscal year ended December 31, 2024 and 2025, respectively.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our ordinary shares as of the date of this prospectus, and as adjusted to reflect the sale of the ADSs offered in this offering for:

● each of our directors and executive officers who beneficially own our ordinary shares;

● our directors and executive officers as a group; and

● each person known to us to own beneficially more than 5% of our ordinary shares.

Beneficial ownership includes voting or investment power with respect to the securities. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all ordinary shares shown as beneficially owned by them. The percentage of beneficial ownership of each listed person prior to this offering is based on (i) 125,000,610 Class A ordinary shares and (ii) 34,000,000 Class B ordinary shares outstanding. Each holder of Class A ordinary shares is entitled to one vote per share and each holder of our Class B ordinary shares is entitled to ten votes per share on all matters submitted to them for a vote. Percentage of beneficial ownership of each listed person after this offering is based on (i) 138,340,610 Class A ordinary shares and (ii) 34,000,000 Class B ordinary shares outstanding immediately after the completion of this offering and assuming no exercise of the underwriters' over-allotment option.

Information with respect to beneficial ownership has been furnished by each director, officer, or beneficial owner of 5% or more of our ordinary shares. Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of shares beneficially owned by a person listed below and the percentage ownership of such person, shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person. Except as otherwise indicated in the footnotes to this table, or as required by applicable community property laws, all persons listed have sole voting and investment power for all ordinary shares shown as beneficially owned by them. As of the date of the prospectus, we have 21 shareholders of record, none of whom are located in the United States. We will be required to have at least 400 unrestricted round lot shareholders at closing to satisfy the Nasdaq listing rules.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Named Executive Officers and Directors** | **Amount of <br> Beneficial <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(1)</sup>** | **Pre-<br> Offering <br> Percentage <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(2)</sup>** | **Post-<br> Offering <br> Percentage <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(2)(3)</sup>** | **Amount of <br> Beneficial <br> Ownership <br> of Class B <br> Ordinary <br> Shares <br> Pre- and <br> Post- Offering** | **Pre-<br> Offering Percentage <br> Ownership <br> of Class B <br> Ordinary <br> Shares<sup>(2)</sup>** | **Post- <br> Offering <br> Combined <br> Voting <br> Power of <br> Class A <br> and Class B <br> Ordinary <br> Shares<sup>(2)(3)</sup>** |
| **Directors and Named Executive Officers:** |  |  |  |  |  |  |
| Baitong Tang | 3215296<sup>(4)(5)(6)</sup> | 2.57% | 2.32% | 3400000<sup>(7)</sup> | 100% | 84.53% |
| Lili Guan | 2873547<sup>(6)</sup> | 2.30% | 2.08% |  |  | 0% |
| Ho Ka Chun\* |  |  |  |  |  |  |
| Victor Ten Tian Hock\* |  |  |  |  |  |  |
| Kenneth Charles Rumph\* |  |  |  |  |  |  |
| **All director and executive officer as a group (six individuals):** | 6088843 | 4.87% | 4.40% | 34000000<sup>(7)</sup> | 100% | 84.53% |
| **5% Beneficial Owners:** |  |  |  |  |  |  |
| Expola Investment Limited |  |  |  | 34000000<sup>(7)</sup> | 100% | 71.08% |
| Beveist Investment Limited | 22526500<sup>(4)</sup> | 18.02% | 16.28% |  |  | 4.71% |
| Getcher Investment Limited | 21560000<sup>(5)</sup> | 17.25% | 15.58% |  |  | 4.51% |
| Endoeval Investment Limited | 20250506<sup>(6)</sup> | 16.20% | 14.64% |  |  | 4.23% |
| Unatee Investment Limited | 13080000<sup>(8)</sup> | 10.46% | 9.45% |  |  | 2.73% |
| Groadse Investment Limited | 10244573<sup>(9)</sup> | 8.20% | 7.41% |  |  | 2.14% |

---

Notes:

(1) Beneficial
 ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the Class
 A Ordinary Shares and Class B Ordinary Shares. All shares represent only Class A Ordinary Shares and Class B Ordinary Shares held
 by shareholders as no options are issued or outstanding.

(2) Calculation based 125,000,610 Class A Ordinary Shares and 34,000,000 Class B Ordinary Shares issued and outstanding immediately before the Offering. Each Class A Ordinary Share shall entitle the holder thereof to one vote on all matters subject to vote at general meetings of the Company. Each Class B Ordinary Share shall entitle the holder thereof to ten votes on all matters subject to vote at general meetings of the Company.

(3) Assuming 3,335,000 ADSs are issued in this offering of Public Offering ADSs.

(4) These shares are held by Beveist Investment Limited, a British Virgin Islands company. Baitong Tang is the sole director of Beveist Investment Limited. Beveist Investment Limited is approximately 36.84% held by Haibin Lin, 19.89% held by Shujun Li, 8.88% held by Meixia Zhang, 8.88% held by Xiaohua Li, 7.97% held by Yuanhua Zhou, 7.97% held by Fukang Xing, 7.97% held by Rongping Xing, and 1.6% held by Baitong Tang. The registered address of Beveist Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

(5) These shares are held by Getcher Investment Limited, a British Virgin Islands company. Baitong Tang is the sole director of Getcher Investment Limited. Getcher Investment Limited is approximately 66.61% held by Di Xue, 26.62% held by Feng Zhang, and 6.77% held by Baitong Tang. The registered address of Getcher Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

(6) These shares are held by Endoeval Investment Limited, a British Virgin Islands company. Baitong Tang is the sole director of Endoeval Investment Limited. Endoeval Investment Limited is approximately 46.55% held by Cuili Zhang who is the spouse of Mr. Baitong Tang, 14.19% held by Lili Guan who is the Chief Financial Officer and Director of CZTI, 6.89% held by Baitong Tang, 9.58% held by Tiexin Tang, 6.38% held by Chongyan Yi, 5.94% held by Xinhua Wen, 5.68% held by Rentao Zhang, 3.02% held by Sicheng Li, and 1.77% held by Luanbo Hu. The registered address of Endoeval Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

(7) These shares are held by Expola Investment Limited, a company incorporated in the British Virgin Islands. Expola Investment Limited is 100% owned by Mr. Baitong Tang, who is its sole shareholder and director. The registered address of Expola Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

(8) These shares are held by Unatee Investment Limited, a British Virgin Islands company. Unatee Investment Limited is 100 % owned by Mr. Guangchun Zhuang, who is its sole shareholder and director. The registered address of Unatee Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

(9) These shares are held by Groadse Investment Limited, a British Virgin Islands company. Groadse Investment Limited is 100% owned by Mr. Kewen Lin, who is its sole shareholder and director. The registered address of Groadse Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British Virgin Islands.

\* We intend to appoint these individuals as independent directors, effective upon the SEC's declaration of effectiveness of our registration statement on Form F-1, of which this prospectus is a part. 

As of the date of this prospectus, none of our outstanding ordinary shares are held by record holders in the United States.

We are not aware of any arrangement that may result in a change of control of our Company at a subsequent date.

**RELATED PARTY TRANSACTIONS**

The Company records transactions with various related parties. These related party balances as of December 31, 2023, 2024 and 2025, and transactions for the years ended December 31, 2023, 2024 and 2025 are identified as follows (amounts in thousands):

**(1) Related Parties with Transactions and Related Party Relationships** 

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to the Group** |
| Mr. Baitong Tang | Chief Executive Officer and Chairman of the Board of Directors |
| Ms. Xiangying Xiang | A minority shareholder of Mingdi |
| Mr. Renlu Dong | A minority shareholder of Hebei Jushang |
| Mr. Yueqiang Wang | A minority shareholder of ABGreen Henan |
| ABGreen Supply Chain Management (Beijing) Co., LTD ("ABGreen BJ") | Owned by a minority shareholder of the Group |
| Beijing ABGreen Reverse Supply Chain Co., LTD ("BJ ABGreen RSC") | An entity controlled by Mr. Baitong Tang |
| Shenzhen ABGreen Reverse Supply Chain Partnership (limited partnership) ("SZ ARSC(LP)") | An entity controlled by Mr. Baitong Tang |
| Henan Haiyue Metal Technology Co. LTD ("HNHY") | A minority shareholder of Jinyou Metal |
| Tianjiu Sharing Wisdom Enterprise Service Co. LTD ("Tianjiu") | A minority shareholder of CZTI Shenzhen |
| Hubei Jinke Environmental Protection Technology Co., LTD ("Hubei Jinke") | Mr. Baitong, Tang has been a Board member of Hubei Jinke since September 12, 2023 |
| Shenqiu ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Shenqiu") | An entity controlled by Mr. Haibing Ling which was disposed on September 20, 2023 |
| Zhoukou Bolv Environmental Protection Technology Co. Ltd ("Zhoukou Bolv") | An entity controlled by Mr. Haibing Ling, the Chief Executive Officer and Chairman of the Board of Directors of ABGreen Fuyang. |
| Henan Zhongyuan Recycling Science and Technology Industrial Park Construction and Development Co., LTD ("Henan ZYR") | An entity 35% owned by Jinyou Metal |
| China Link (Shenzhen) Management Consulting Co., LTD ("China Link") | Owned by a minority shareholder of the Group |
| Henan Jiataihong environmental protection technology Co., LTD ("Henan Jiataihong Environmental") | An entity controlled by Henan ZYR |
| Shanghai Zhongyao City mining Industry Co., LTD ("Shanghai Zhongyao") | A minority shareholder of Qi Hong |
| Jiangxi New Difeng new material technology Co., LTD ("Jiangxi New Difeng") | An entity controlled by Mr. Qi Yu |
| Jiangxi Yu Innovation Material Technology Co., LTD ("Jiangxi Yuchuang") | An entity controlled by Mr. Qi Yu |
| Jiujiang Lichuang renewable resources Co., LTD ("Jiujiang Lichuang") | An entity controlled by Mr. Qi Yu |
| Jiujiang Xinchuang renewable resources Co., LTD ("Jiujiang Xinchuang") | An entity controlled by Mr. Qi Yu |
| Jiangxi Yachuang renewable resources Co., LTD ("Jiangxi Yachuang") | An entity controlled by Mr. Qi Yu |
| Gongqingcheng Yi An new material Co., LTD ("GQC Yi An") | An entity controlled by Mr. Qi Yu |
| Gongqingcheng Siyi new material Co., LTD ("GQC Siyi") | An entity controlled by Mr. Qi Yu |
| Jiujiang Chen An renewable resources Co., LTD ("Jiujiang Chen An") | An entity controlled by Mr. Qi Yu |
| Nanchang Lvshang renewable resources Co., LTD ("Nanchang Lvshang") | An entity controlled by Mr. Qi Yu |
| Xinshengtai (Jiangxi) Environmental Technology Co., Ltd. ("Xinshengtai (Jiangxi)") | Formerly named as Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd. ("Jingchuang Scrapped Vehicle"), an entity controlled by Jiangxi Jingchuang, disposed to Jiangxi New Difeng on May 28, 2025  |
| Henan Wanyin Environmental Protection Technology Co., LTD ("Henan Wanyin") | An entity controlled by Henan ZYR |
| Henan Qingyu Environmental Protection Technology Co., LTD ("Henan Qingyu") | An entity controlled by Henan ZYR |
| Jiangxi Runding Metal Materials Co., LTD ("Jiangxi Runding") | An entity controlled by Mr. Qi Yu |
| Henan Dinghan Renewable Resources Co., Ltd. ("Henan Dinghan") | An entity controlled by Henan ZYR  |
| Jiangxi Shengren New Materials Co., LTD ("Jiangxi Shengren") | An entity controlled by Mr. Qi Yu |
| Jiangxi Yijiu New Materials Co., LTD ("Jiangxi Yijiu") | An entity controlled by Mr. Qi Yu |
| Jiangxi Linghao New Materials Technology Co., LTD ("Jiangxi Linghao") | An entity controlled by Mr. Qi Yu |
| Henan Yunji Environmental Protection Technology Co., Ltd. ("Henan Yunji") | An entity controlled by Mr. Yueqiang Wang  |
| Henan Chengrun Environmental Protection Technology Co., Ltd. ("Henan Chengrun") | An entity controlled by Mr. Yueqiang Wang  |
| Gongqingcheng Yucan renewable resources Co., LTD ("GQC Yucan")  | An entity controlled by Mr. Qi Yu  |

---

**(2) Accounts Receivable from Related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 2025** |
|  | RMB <br>(in thousands) | RMB <br>(in thousands) | RMB <br>(in thousands) |
| ABGreen BJ | 94 | 240 |  |
| Xinshengtai (Jiangxi) |  |  | 738 |
| Hubei Jinke | 28597 | 44395 | 38506 |
| Subtotal | 28691 | 44635 | 39244 |
| Less: long term account receivable, a related party | -  | -  | (3563 ) |
| Total | **28691**  | **44635**  | **35681**  |

---

For the years ended December 31, 2023 and 2024, the Company provided software development services to ABGreen BJ. The balance was fully collected.

For the years ended December 31, 2023, 2024 and 2025, the Company sold waste household appliances to Hubei Jinke. The balance as of December 31, 2023 was fully collected. Subsequently, the Group collected RMB6,804 of the balance as of December 31, 2025.

For the year ended December 31, 2025, the Group provided system services to Xinshengtai (Jiangxi). The balance was collected subsequently.

**(3) Advance to Suppliers -related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 2025** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| Jiangxi Yachuang <sup>(ii)</sup> |  |  | 622 |
| Jiangxi Runding <sup>(ii)</sup> |  |  | 859 |
| Mr. Yueqiang Wang <sup>(ii)</sup> |  |  | 1500 |
| Henan Chengrun <sup>(ii)</sup> |  |  | 511 |
| Henan Yunji <sup>(ii)</sup> |  |  | 511 |
| Tianjiu <sup>(i)</sup> | 541 |  |  |
| Zhoukou Bolv <sup>(ii)</sup> | - | 500 | 500 |
| **Total** | **541** | **500** | **4503** |

---

(i) For
 the year ended December 31, 2023, the Company paid regional service incremental cost to Tianjiu
 in advance, which is subject to amortization along with the regional service progress made.

(ii) For
 the years ended December 31, 2024 and 2025, the Group made prepayments to purchase equipment
 and household waste from the above related parties.

**(4) Account Payable - Related parties**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 2025** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| GQC Yi An |  | 36538 |  |
| Jiujiang Chen An |  | 26084 |  |
| Jiujiang Lichuang |  | 24199 |  |
| Jiujiang Xinchuang |  | 22681 |  |
| GQC Siyi |  | 22481 |  |
| GQC Yucan |  | 21973 |  |
| Nanchang Lvshang |  | 3331 |  |
| Henan Jiataihong Environmental |  |  | 22647 |
| Henan ZYR |  |  | 585 |
| Xinshengtai (Jiangxi) |  |  | 848 |
| Jiangxi Yachuang |  | - | 159 |
| **Total** |  | **157287** | **24239** |

---

For the years ended December 31, 2023, 2024 and 2025, the Company purchased household waste from the above related parties.

**(5) Sales to and Service Provided for Related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended** | **For the years ended** | **For the years ended** |
|  | **2023** | **2024** | **2025** |
|  | RMB (in thousands) | RMB (in thousands) | RMB (in thousands) |
| ABGreen BJ | 1347 | 226 |  |
| Hubei Jinke | 11252 | 134095 | 177828 |
| Xinshengtai (Jiangxi) | - | - | 14992 |
| **Total** | **12599** | **134321** | **192820** |

---

For the year ended December 31, 2023, the Company sold waste household appliances to Hubei Jinke, and provided software development service to ABGreen BJ. From January 1, 2023 to September 11, 2023, which was for the period prior Hubei Jinke becoming the related party, the Company sold RMB77,097 waste household appliances to Hubei Jinke; from September 12, 2023 to December 31, 2023, the Company sold RMB11,252 waste household appliances to Hubei Jinke.

For the year ended December 31, 2024, the Company sold RMB134,095 waste household appliances to Hubei Jinke, and provided system service totaling RMB 226 to ABGreen BJ.

For the year ended December 31, 2025, the Group sold RMB177,828 and RMB14,992 household waste to Hubei Jinke and Xinshengtai (Jiangxi), respectively.

The sales to and service provided for related parties represented approximately 0%, 3% and 3% of the Group's total revenue for the years ended December 31, 2023, 2024 and 2025, respectively.

In addition, on May 28, 2025, the Company disposed its subsidiary, Xinshengtai (Jiangxi), to a related party, Jiangxi New Difeng, with gain from disposal of RMB233 for the year ended December 31, 2025. The disposal was not material to the Company.

**(6) Purchase Products and Service from Related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended** | **For the years ended** | **For the years ended** |
|  | **2023** | **2024** | **2025** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| Jiangxi Run Ding <sup>(i)</sup> |  |  | 730371 |
| Jiangxi Linghao <sup>(i)</sup> |  |  | 198155 |
| Henan Jiataihong Environmental <sup>(i)</sup> |  |  | 156116 |
| Henan Qingyu <sup>(i)</sup> |  |  | 135121 |
| Henan Dinghan <sup>(i)</sup> |  |  | 95293 |
| Jiujiang Xinchuang <sup>(i)</sup> |  | 357966 | 53917 |
| Henan Wanyin <sup>(i)</sup> |  |  | 11560 |
| Jiujiang Lichuang <sup>(i)</sup> |  | 118721 | 264 |
| Jiangxi Yachuang <sup>(i)</sup> |  | 19843 | 602392 |
| Nanchang Lvshang <sup>(i)</sup> |  | 13716 | 70928 |
| Jiujiang Chen An <sup>(i)</sup> |  | 6440 |  |
| Jiangxi Yuchuang <sup>(i)</sup> |  | 992 | 324 |
| Henan ZYR <sup>(i)</sup> |  | 498 | 60314 |
| Xinshengtai (Jiangxi) <sup>(i)</sup> |  |  | 5468 |
| Jiangxi Yijiu <sup>(i)</sup> |  |  | 2963 |
| Jiangxi Shengren <sup>(i)</sup> |  |  | 702 |
| GQC Siyi <sup>(i)</sup> |  |  | 47 |
| Tianjiu <sup>(ii)</sup> | 1355 | 541 | - |
| **Total** | **1355** | **518717** | **2123935** |

---

<sup>(i)</sup> For the years ended December 31, 2024 and 2025, the Company purchased household waste from various related parties in the amount of RMB518,176 and RMB2,123,935, respectively.

<sup>(ii)</sup> For the years ended December 31, 2023 and 2024, the Company incurred regional service incremental cost amortization from advances to Tianjiu in the amount of RMB1,355 and RMB541, respectively.

For the years ended December 31, 2023, 2024 and 2025, the Company's products and service purchased from related parties, represented approximately less than 0.1%, 11% and 37% of the Company's total purchase.

**(7) Due from Related Parties** 

As of December 31, 2023, 2024 and 2025, the balance of due from related parties was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 20245** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| Mr. Weicheng Wang <sup>(1)</sup> | 100 |  |  |
| ABGreen Shenqiu <sup>(2)</sup> | 1698 | 85 |  |
| Henan ZYR <sup>(3)</sup> |  | 14700 | 1100 |
| HNHY<sup>(4)</sup> |  | 400 | 400 |
| Henan Jiataihong Environmental<sup>(5)</sup> |  | 1800 |  |
| Shanghai Zhongyao<sup>(6)</sup> |  | 2570 |  |
| Jiangxi Yuchuang<sup>(7)</sup> |  | 205 |  |
| Ms. Hong Wang<sup>(8)</sup> |  | 440 |  |
| Jiangxi New Difeng<sup>(9)</sup> |  | 300 |  |
| Nanchang Lvshang<sup>(10)</sup> | - | - | 10200 |
| **Total** | **1798** | **20500** | **11700** |

---

(1) For the year ended December
 31, 2022, the Company loaned RMB 100 to Mr. Weicheng Wang. The loan was unsecured, interest free and due on demand. The loan was
 fully collected by the Company in 2024.

(2) For the year ended December
 31, 2023, the Company loaned RMB1,698 to ABGreen Shenqiu. The advance was unsecured, fixed annual interest rate of 15% and due on
 demand and the term of these loans was within one year. The Company fully recovered the principal in September 2024. As of December
 31, 2024, the outstanding remaining interest was RMB85. The loan was fully collected by the Company in 2025.

(3) During
 May 7, 2024 to December 31, 2024, the Company provided unsecured, interest-free loans to Henan ZYR in the amount of RMB68,300. After
 partial collection, the outstanding balance amounted to RMB 14,700 as of December 31, 2024. For the year end December 31, 2025,
 the Group continued to provide loans of RMB7,700. After partial collection, the balance was RMB1,100 as of December 31, 2025.

(4) During
 February to December 31, 2024, the Company provided unsecured, interest-free loans to HNHY in the amount of RMB400. As of December
 31, 2025, the loan was outstanding.

(5) During
 September to December 31, 2024, the Company loaned approximately RMB3,800 to Henan Jiataihong
 Environmental for working capital purpose. The loan was unsecured, interest free and due
 on demand. After partial collection, the balance was RMB1,800. The loan was fully collected
 by the Company in 2025.

(6) On December 27, 2024, the
 Company loaned approximately RMB3,220 to Shanghai Zhongyao. The loan was unsecured, interest free and due on demand. The loan was
 unsecured, interest free and due on demand. After partial collection, the balance was RMB2,570 as of December 31, 2024. The loan
 was fully collected in 2025.

(7) On May 1, 2024, the Company
 loaned RMB 205 to Jiangxi Yuchuang. The loan was unsecured, interest free and due on demand. The loan was fully collected in 2025.

(8) For the year ended December
 31, 2024, the Company loaned RMB440 to Ms. Hong Wang. The loan was unsecured, interest free and due on demand. The loan was fully
 collected in 2025.

(9) During April to December
 31, 2024, the Company loaned RMB300 to Jiangxi New Difeng. The loan was unsecured, interest free and due on demand. The loan was
 fully collected in 2025.

(10) For
 the year ended December 31, 2025, the Group paid RMB10,200 to Nanchang Lvshang controlled by Mr. Qi Yu, who was the original shareholder
 of Jingchuang Metal, as a security deposit for the acquisition consideration payable on Jingchuang Metal.

**(8) Due to Related Parties** 

As of December 31, 2023, 2024 and 2025, due to related parties was as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31, 2025** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| Mr. Baitong Tang <sup>(1)</sup> | 2290 | 2821 | 5449 |
| Ms. Lanzhen Du <sup>(1)</sup> | 51 |  |  |
| Zhoukou Bolv <sup>(1)</sup> | 3360 | 4498 | 2544 |
| SZ ARSC(LP) <sup>(1)</sup> | 2898 | 2898 | 2898 |
| Mr. Peng Du<sup>(1)</sup> | 2900 |  |  |
| Ms. Meixia Zhang<sup>(1)</sup> |  | 550 |  |
| China Link <sup>(1)</sup> |  | 9087 | 1648 |
| Mr. Qi Yu<sup>(1)</sup> |  | 2385 |  |
| Jiangxi Yuchuang<sup>(1)</sup> |  | 2610 | 874 |
| Henan Qingyu<sup>(1)</sup> |  |  | 5700 |
| Ms. Xiangying Xiang<sup>(2)</sup> |  | 248 | 248 |
| Mr. Renlu Dong<sup>(2)</sup> |  | 4542 | 4542 |
| Shanghai Zhongyao<sup>(2)</sup> |  | 173 | 173 |
| Shanghai Zhongyao<sup>(1)</sup> |  |  | 2265 |
| Jiangxi New Difeng<sup>(2)</sup> | - | 10200 | 10200 |
| **Total** | **11499** | **40012** | **36541** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company obtained
 short-term working capital loans from these related parties from time to time. Most loans are due on demand and interest-free.

&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 aggregated balance of RMB15,163 as of December 31, 2024 and 2025 represented the acquisition
 consideration payable in connection with the Group's business combinations for the
 year ended December 31, 2024.

**(9) Long term Loan Payable to Related Parties** 

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2023** | **December 31, 2024** | **December 31,** <br> 2025** |
|  | RMB <br> (in thousands) | RMB <br> (in thousands) | RMB <br> (in thousands) |
| Beginning balance | 98959 | 85893 | 101141 |
| Additions in principle amount | 7304 | 25565 | 17670 |
| Accrued interests | 2383 | 4848 | 4528 |
| Repayments | (22753) | (15165) | (40450) |
| **Ending balance** | **85893** | **101141** | **82889** |

---

During the year ended December 31, 2022, the Company signed several loan agreements with the shareholders of BJ ABGreen RSC and obtained unsecured interest-free working capital loans in aggregated of RMB98,959 payable. Subsequently, the Company repaid RMB6,001 and obtained additional RMB 7,304 long term loan during the six months ended June 30, 2023. On July 1, 2023, the Company entered into an amended loan agreement with BJ ABGreen RSC and its shareholders for the remaining loan balance of RMB 99,958 (the "long-term portion loan"). Pursuant to the amended loan agreement, the shareholders of BJ ABGreen RSC transferred their creditor's right in the long-term loan to BJ ABGreen RSC and the loan will mature on June 30, 2028. Upon maturity, the Company has the right to renew the loan with BJ ABGreenRSC. The amended loan carried annual interest rate of 5.5% with interest payable on annual basis.

On January 1, 2024, the Company entered into a loan agreement with BJ ABGreen RSC to obtain a working capital loan of RMB25,565. The loan carried annual interest rate of 5% with interest payable on annual basis. For the year ended December 31, 2025, the Group further borrowed RMB17,670.

From the years ended December 31, 2023, 2024 and 2025, the Company repaid an aggregated of RMB22,753, RMB 15,165 and RMB40,450, respectively, and the remaining long term loan payable to related parties balance was RMB 85,893, RMB101,141 and RMB82,889, respectively.

**DESCRIPTION OF SHARE CAPITAL**

The following description of our share capital and provisions of our amended and restated memorandum and articles of association, as amended from time to time, are summaries and do not purport to be complete. Reference is made to our amended and restated memorandum and articles of association, copies of which are filed as an exhibit to the registration statement of which this prospectus is a part (and which is referred to in this section as, respectively, the "memorandum" and the "articles").

We were incorporated as an exempt company with limited liability under the Companies Act (Revised) of the Cayman Islands, or the "Cayman Companies Act," on July 13, 2023. A Cayman Islands exempted company:

● is a company that conducts its business mainly outside the Cayman Islands;

● is prohibited from trading in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the exempted company carried on outside the Cayman Islands (and for this purpose can affect and conclude contracts in the Cayman Islands and exercise in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands);

● does not have to hold an annual general meeting;

● does not have to make its register of members open to inspection by shareholders of that company;

● may obtain an undertaking against the imposition of any future taxation;

● may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● may register as a limited duration company; and

● may register as a segregated portfolio company.

**Class A&B Ordinary Shares**

All our issued and outstanding ordinary shares are fully paid and non-assessable. Our ordinary shares are issued in registered form and are issued when registered in our register of members. Unless the board of directors determine otherwise, each holder of our ordinary shares will not receive a certificate in respect of such ordinary shares. Our shareholders who are non-residents of the Cayman Islands may freely hold and vote their ordinary shares. We may not issue shares or warrants to the bearer.

As of the date of this prospectus, our authorized share capital is $50,000.00 divided into i) 4,900,000,000 Class A ordinary shares of par value 0.00001 each and ii) 100,000,000 Class B ordinary shares of par value 0.00001 each. As of the date of this prospectus, there are 125,000,610 Class A ordinary shares issued and outstanding and 34,000,000 Class B ordinary shares issued and outstanding.

Subject to the provisions of the Cayman Companies Act and our articles regarding redemption and purchase of the shares, the directors have general and unconditional authority to allot, issue, grant options over or otherwise deal with any unissued shares to such persons, at such times and on such terms and conditions as they may decide. The directors may deal with unissued shares either at a premium or at par, or with or without preferred, deferred or other special rights or restrictions, whether in regard to dividend, voting, return of capital or otherwise. No share may be issued at a discount except in accordance with the provisions of the Cayman Companies Act. The directors may refuse to accept any application for shares and may accept any application in whole or in part, for any reason or for no reason.

Subject to the provision of our articles and any special resolution of the shareholders to the contrary and without prejudice to any special rights conferred thereby on the holders of any other shares or class of shares, Class A ordinary and Class B ordinary shares shall carry equal rights and rank pari passu with one another in all respects other than as set out below:

(a) Conversion Rights:

(i) Subject to the provisions of our articles and to compliance with all fiscal and other laws and regulations applicable thereto, including the Cayman Companies Act, a holder of Class B ordinary shares shall have the Conversion Right in respect of each Class B ordinary share in its holding. For the avoidance of doubt, a holder of Class A ordinary shares shall have no rights to convert Class A ordinary shares into Class B ordinary shares under any circumstances.

(ii) Each Class B ordinary share shall be converted at the option of the holder, at any time after issue and without the payment of any additional sum, into such number of fully paid Class A ordinary share calculated at the conversion rate on a 1:1 basis, or at such rate as may be determined by the Company from time to time. Such conversion shall take effect on the date as specified in the conversion notice. A conversion notice shall not be effective if it is not accompanied by the share certificates in respect of the relevant Class B ordinary shares and/or such other evidence (if any) as the directors may reasonably require to prove the title of the person exercising such right (or, if such certificates have been lost or destroyed, such evidence of title and such indemnity as the directors may reasonably require). Any and all taxes and stamp, issue, and registration duties (if any) arising on conversion shall be borne by the holder of Class B ordinary shares requesting conversion.

(iii) On the conversion date, every Class B ordinary share converted shall automatically be re-designated and re-classified as the applicable number of Class A ordinary shares with such rights and restrictions attached thereto and shall rank pari passu in all respects with the Class A ordinary shares then in issue and the Company shall enter or procure the entry of the name of the relevant holder of converted Class B ordinary shares as the holder of the corresponding number of Class A ordinary shares resulting from the conversion of the Class B ordinary shares in, and make any other necessary and consequential changes to, the register of members and shall procure that certificates in respect of the relevant Class A ordinary shares, together with a new certificate for any unconverted Class B ordinary shares comprised in the certificate(s) surrendered by the holder of the Class B ordinary shares, are issued to the holders thereof.

(iv) Until such time as the Class B ordinary shares have been converted into Class A ordinary shares, the Company shall:

(A) at all times keep available for issue and free of all liens, charges, options, mortgages, pledges, claims, equities, encumbrances and other third-party rights of any nature, and not subject to any preemptive rights out of its authorized but unissued share capital, such number of authorized but unissued Class A ordinary shares as would enable all Class B ordinary shares to be converted into Class A ordinary shares and any other rights of conversion into, subscription for or exchange into Class A ordinary shares to be satisfied in full; and

(B) not make any issue, grant or distribution or take any other action if the effect would be that on the conversion of the Class B ordinary shares to Class A ordinary shares it would be required to issue Class A ordinary shares at a price lower than the par value thereof.

(b) Voting Rights:

(i) Holders of Class A ordinary shares and Class B ordinary shares have the right to receive notice of, attend, speak, and vote at general meetings of the Company. Holders of shares of Class A ordinary shares and Class B ordinary shares shall, at all times, vote together as a single class on all matters submitted to a vote for members' consent.

(ii) Each Class A ordinary share shall be entitled to one (1) vote on all matters subject to the vote at general meetings of the Company.

(iii) Each Class B ordinary share shall be entitled to ten (10) votes on all matters subject to the vote at general meetings of the Company.

(c) Transfer

(i) Upon any sale, transfer, assignment or disposition of Class B ordinary shares by a holder thereof to any person or entity which is not an affiliate of such holder, such Class B ordinary shares validly transferred to the new holder shall be automatically and immediately converted into such number of Class A ordinary shares calculated based on the conversion rate on a 1:1 basis or at such rate as may be determined by the Company from time to time.

(ii) For the avoidance of doubt, (i) a sale, transfer, assignment or disposition shall be effective upon the Company's registration of such sale, transfer, assignment or disposition in the Company's register of members; and (ii) the creation of any pledge, charge, encumbrance or other third party right of whatever description on any of Class B ordinary shares to secure a holder's contractual or legal obligations shall not be deemed as a sale, transfer, assignment or disposition unless and until any such pledge, charge, encumbrance or other third party right is enforced and results in the third party holding fee simple ownership interest to the related Class B ordinary shares, in which case all the related Class B ordinary shares shall be automatically converted into the same number of Class A ordinary shares upon the Company's registration of the third party or its designee as a member holding that number of Class A ordinary shares in the register of members.

**Dividends**

Subject to the provisions of the Cayman Companies Act and any rights attaching to any class or classes of shares under and in accordance with the articles:

● the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose; and

● our shareholders may, by ordinary resolution, declare dividends but no such dividend shall exceed the amount recommended by the directors.

Subject to the requirements of the Cayman Companies Act regarding the application of a company's share premium account and with the sanction of an ordinary resolution, dividends may also be declared and paid out of any share premium account. The directors, when paying dividends to shareholders, may make such payment either in cash or in specie.

Unless provided by the rights attached to a share, no dividend shall bear interest.

**Voting Rights**

Subject to any rights or restrictions as to voting attached to any shares, unless any share carries special voting rights, on a show of hands every shareholder who is present in person and every person representing a shareholder by proxy shall have one vote per ordinary share. On a poll, each Class A ordinary share shall be entitled to one (1) vote on all matters subject to vote at general meetings of the Company, and each Class B ordinary share shall be entitled to ten (10) votes on all matters subject to vote at general meetings of the Company. In addition, all shareholders holding shares of a particular class are entitled to vote at a meeting of the holders of that class of shares. Votes may be given either personally or by proxy.

**Variation of Rights of Shares**

Whenever our capital is divided into different classes of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class.

Unless the terms on which a class of shares was issued state otherwise, the rights conferred on the shareholder holding shares of any class shall not be deemed to be varied by the creation or issue of further shares ranking pari passu with the existing shares of that class.

**Alteration of Share Capital**

Subject to the Cayman Companies Act, our shareholders may, by ordinary resolution:

● increase our share capital by new shares of the amount fixed by that ordinary resolution and with the attached rights, priorities and privileges set out in that ordinary resolution;

● consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;

● convert all or any of our paid-up shares into stock, and reconvert that stock into paid up shares of any denomination

● sub-divide our shares or any of them into shares of an amount smaller than that fixed by the memorandum, so, however, that in the sub-division, the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the share from which the reduced share is derived; and

● cancel shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of our share capital by the amount of the shares so cancelled or, in the case of shares without nominal par value, diminish the number of shares into which our capital is divided.

Subject to the Cayman Companies Act and to any rights for the time being conferred on the shareholders holding a particular class of shares, our shareholders may, by special resolution, reduce their share capital in any way.

**Calls on Shares and Lien on Shares**

Subject to the terms of allotment, the directors may make calls on the shareholders in respect of any monies unpaid on their shares including any premium and each shareholder shall (subject to receiving at least 14 clear days' notice specifying when and where payment is to be made), pay to us the amount called on his shares. Shareholders registered as the joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share. If a call remains unpaid after it has become due and payable the person from whom it is due and payable shall pay interest on the amount unpaid from the day it became due and payable until it is paid at the rate fixed by the terms of allotment of the share or in the notice of the call or if no rate is fixed, at the rate of ten per cent per annum as the directors may determine. The directors may waive payment of the interest wholly or in part.

We have a first and paramount lien on all shares (whether fully paid up or not) registered in the name of a shareholder (whether solely or jointly with others). The lien is for all monies payable to us by the shareholder or the shareholder's estate:

● either alone or jointly with any other person, whether or not that other person is a shareholder; and

● whether or not those monies are presently payable.

At any time, the directors may declare any share to be wholly or partly exempt from the lien on shares provisions of the articles.

We may sell, in such manner as the directors may determine, any share on which the sum in respect of which the lien exists is presently payable, if due notice that such sum is payable has been given (as prescribed by the articles) and, within 14 clear days of the date on which the notice is deemed to be given under the articles, such notice has not been complied with.

**Unclaimed Dividend**

A dividend that remains unclaimed for a period of six years after it became due for payment shall be forfeited to, and shall cease to remain owing by, the company.

**Forfeiture or Surrender of Shares**

If a shareholder fails to pay any capital call, the directors may give to such shareholder not less than 14 clear days' notice requiring payment and specifying the amount unpaid including any interest which may have accrued, any expenses which have been incurred by us due to that person's default and the place where payment is to be made. The notice shall also contain a warning that if the notice is not complied with, the shares in respect of which the call is made will be liable to be forfeited.

If such notice is not complied with, the directors may, before the payment required by the notice has been received, resolve that any share being the subject of that notice be forfeited (which forfeiture shall include all dividends or other monies payable in respect of the forfeited share and not paid before such forfeiture).

A forfeited share may be sold, re-allotted or otherwise disposed of on such terms and in such manner as the directors determine and at any time before a sale, re-allotment or disposition the forfeiture may be cancelled on such terms as the directors think fit.

A person whose shares have been forfeited shall cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeiture, remain liable to pay to us all monies which at the date of forfeiture were payable by him to us in respect of the shares, together with all expenses and interest from the date of forfeiture or surrender until payment, but his liability shall cease if and when we receive payment in full of the unpaid amount.

A declaration, whether statutory or under oath, made by a director or the secretary shall be conclusive evidence that the person making the declaration is our director or secretary and that the shares have been forfeited or surrendered on a particular date.

**Share Premium Account**

The directors shall establish a share premium account and shall carry the credit of such account from time to time to a sum equal to the amount or value of the premium paid on the issue of any share or capital contributed or such other amounts required by the Cayman Companies Act.

**Redemption and Purchase of Own Shares**

Subject to the Cayman Companies Act and any rights for the time being conferred on the shareholders holding a particular class of shares, we may:

● issue shares that are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on the terms and in the manner our directors determine before the issue of those shares;

● with the consent by special resolution of the shareholders holding shares of a particular class, vary the rights attaching to that class of shares so as to provide that those shares are to be redeemed or are liable to be redeemed at our option on the terms and in the manner which the directors determine at the time of such variation; and

● purchase all or any of our own shares of any class including any redeemable shares on the terms and in the manner which the directors determine at the time of such purchase.

We may make a payment in respect of the redemption or purchase of our own shares in any manner authorized by the Cayman Companies Act, including out of any combination of capital, our profits and the proceeds of a fresh issue of shares.

When making a payment in respect of the redemption or purchase of shares, the directors may make the payment in cash or in specie (or partly in one and partly in the other) if so authorized by the terms of the allotment of those shares or by the terms applying to those shares, or otherwise by agreement with the shareholder holding those shares.

**Transfer of Shares**

Subject to any applicable requirements set forth in the articles and provided that a transfer of Class A ordinary shares complies with applicable rules of the Nasdaq Global Market, a shareholder may transfer Class A ordinary shares to another person by completing an instrument of transfer in a common form or in a form prescribed by Nasdaq or in any other form approved by the directors, executed:

● where the ordinary shares are fully paid, by or on behalf of that shareholder; and

● where the ordinary shares are partly paid, by or on behalf of that shareholder and the transferee.

The transferor shall be deemed to remain the holder of a Class A ordinary share until the name of the transferee is entered into our register of members.

Where the Class A ordinary shares in question are not listed on or subject to the rules of the Nasdaq Global Market, registration of any transfer of Class A ordinary shares must be approved by the directors by resolutions, and our board of directors may, in its absolute discretion, decline to register any transfer of any Class A ordinary share that has not been fully paid up or is subject to a company lien. Our board of directors may also, but are not required to, decline to register any transfer of such Class A ordinary share unless:

● the instrument of transfer is lodged with us, accompanied by the certificate for the Class A ordinary shares to which it relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;

● the instrument of transfer is in respect of only Class A ordinary shares;

● the instrument of transfer is properly stamped, if required;

● the ordinary share transferred is fully paid and free of any lien in favor of us;

● any fee related to the transfer has been paid to us; and

● in the case of a transfer to joint holders, the number of joint holders to whom the Class A Ordinary share is to be transferred does not exceed four.

If our directors refuse to register a transfer, they are required, within one month after the date on which the instrument of transfer was lodged, to send to each of the transferor and the transferee notice of such refusal.

The registration of transfers may, on 14 days' notice being given by advertisement in such one or more newspapers or by electronic means, be suspended and our register of members closed at such times and for such periods as our board of directors may, in their absolute discretion, from time to time determine. The registration of transfers, however, may not be suspended, and the register may not be closed for more than 30 days in any year.

**Inspection of Books and Records**

Holders of our ordinary shares will have no general right under the Cayman Companies Act to inspect or obtain copies of our register of members or our corporate records.

**General Meetings**

As a Cayman Islands exempt company, we are not obligated by the Cayman Companies Act to call shareholders' annual general meetings; accordingly, we may, but shall not be obliged to, in each year hold a general meeting as an annual general meeting. Any annual general meeting held shall be held at such time and place as may be determined by our board of directors. All general meetings other than annual general meetings shall be called extraordinary general meetings.

The directors may convene general meetings whenever they think fit. General meetings shall also be convened on the written requisition of one or more of the shareholders entitled to attend and vote at our general meetings who (together) hold not less than ten percent of the rights to vote at such general meeting in accordance with the notice provisions in the articles, specifying the purpose of the meeting and signed by each of the shareholders making the requisition. If the directors do not convene such meeting within 21 clear days' from the date of receipt of the written requisition, those shareholders who requested the meeting or any of them may convene the general meeting themselves within three months after the end of such period of 21 clear days in which case reasonable expenses incurred by them as a result of the directors failing to convene a meeting shall be reimbursed by us.

At least 14 clear days' notice of an extraordinary general meeting and 21 clear days' notice of an annual general meeting shall be given to shareholders entitled to attend and vote at such meeting. The notice shall specify the place, the day and the hour of the meeting, if the meeting is to be held in two or more places, the technology that will be used to facilitate the meeting, and the general nature of that business. In addition, if a resolution is proposed as a special resolution, the text of that resolution shall be given to all shareholders. Notice of every general meeting shall also be given to the directors and our auditors.

Subject to the Cayman Companies Act, a general meeting may be convened on shorter notice with the consent of the shareholders who, individually or collectively, hold at least 90 percent of the voting rights of all those who have a right to vote at a general meeting.

A quorum shall consist of the presence (whether in person or represented by proxy) of one or more shareholders holding shares that represent not less than one-third of the outstanding shares carrying the right to vote at such general meeting.

If, within 15 minutes from the time appointed for the general meeting, or at any time during the meeting, a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be cancelled. In any other case it shall stand adjourned to the same time and place seven days hence or to such other time or place as is determined by the directors.

The chairman may, with the consent of a meeting at which a quorum is present, adjourn the meeting. When a meeting is adjourned for seven clear days or more, notice of the adjourned meeting shall be given in accordance with the articles.

At any general meeting a resolution put to the vote of the meeting shall be decided on a show of hands, unless a poll is (before, or on, the declaration of the result of the show of hands) demanded by the chairman of the meeting or by at least two shareholders having the right to vote on the resolutions or one or more shareholders present who together hold not less than ten percent of the voting rights of all those who are entitled to vote on the resolution. Unless a poll is so demanded, a declaration by the chairman as to the result of a resolution and an entry to that effect in the minutes of the meeting shall be conclusive evidence of the outcome of a show of hands, without proof of the number or proportion of the votes recorded in favor of, or against, that resolution.

If a poll is duly demanded it shall be taken in such manner as the chairman directs and the result of the poll shall be deemed to be the resolution of the meeting at which the poll was demanded.

In the case of an equality of votes, whether on a show of hands or on a poll, the chairman of the meeting at which the show of hands takes place or at which the poll is demanded, shall be entitled to a second or casting vote.

**Directors**

We may by ordinary resolution, from time to time, fix the maximum and minimum number of directors to be appointed. Under the articles, we are required to have a minimum of one director and the maximum number of directors shall be unlimited.

A director may be appointed by ordinary resolution or by the directors. Any appointment may be to fill a vacancy or as an additional director.

Unless the remuneration of the directors is determined by the shareholders by ordinary resolution, the directors shall be entitled to such remuneration as the directors may determine.

The shareholding qualification for directors may be fixed by our shareholders by ordinary resolution and unless and until so fixed no share qualification shall be required.

A director may be removed by ordinary resolution.

A director may at any time resign from office by giving us notice in writing. Unless the notice specifies a different date, the director shall be deemed to have resigned on the date that the notice is delivered to us.

Subject to the provisions of the articles, the office of a director may be terminated forthwith if:

● he is prohibited by the law of the Cayman Islands from acting as a director;

● he is made bankrupt or makes an arrangement or composition with his creditors generally;

● he resigns his office by notice to us;

● he only held office as a director for a fixed term and such term expires;

● in the opinion of a registered medical practitioner by whom he is being treated he becomes physically or mentally incapable of acting as a director;

● he is given notice by the majority of the other directors (not being less than two in number) to vacate office (without prejudice to any claim for damages for breach of any agreement relating to the provision of the services of such director);

● he is made subject to any law relating to mental health or incompetence, whether by court order or otherwise; or

● without the consent of the other directors, he is absent from meetings of directors for continuous period of six months.

Each of the compensation committee and the nominating and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules. The audit committee shall consist of at least three directors, all of whom shall be independent within the meaning of Section 5605(a)(2) of the Nasdaq listing rules and will meet the criteria for independence set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.

**Powers and Duties of Directors**

Subject to the provisions of the Cayman Companies Act and our memorandum and articles, our business shall be managed by the directors, who may exercise all our powers. No prior act of the directors shall be invalidated by any subsequent alteration of our memorandum or articles. To the extent allowed by the Cayman Companies Act, however, shareholders may by special resolution validate any prior or future act of the directors which would otherwise be in breach of their duties.

The directors may delegate any of their powers to any committee consisting of one or more persons who need not be shareholders and may include non-directors so long as the majority of those persons are directors; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the directors. Upon the initial closing of this offering, our board of directors will have established an audit committee, compensation committee, and nomination and corporate governance committee.

The board of directors may establish any local or divisional board of directors or agency and delegate to it its powers and authorities (with power to sub-delegate) for managing any of our affairs whether in the Cayman Islands or elsewhere and may appoint any persons to be members of a local or divisional board of directors, or to be managers or agents, and may fix their remuneration.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, either generally or in respect of any specific matter, to be our agent with or without authority for that person to delegate all or any of that person's powers.

The directors may from time to time and at any time by power of attorney or in any other manner they determine appoint any person, whether nominated directly or indirectly by the directors, to be our attorney or our authorized signatory and for such period and subject to such conditions as they may think fit. The powers, authorities and discretions, however, must not exceed those vested in, or exercisable, by the directors under the articles.

The board of directors may remove any person so appointed and may revoke or vary the delegation.

The directors may exercise all our powers to borrow money and to mortgage or charge our undertaking, property and assets both present and future and uncalled capital or any part thereof, to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of ours or our parent undertaking (if any) or any subsidiary undertaking of us or of any third party.

A director shall not, as a director, vote in respect of any contract, transaction, arrangement or proposal in which he has an interest which (together with any interest of any person connected with him) is a material interest (otherwise than by virtue of his interests, direct or indirect, in shares or debentures or other securities of, or otherwise in or through, us) and if he shall do so his vote shall not be counted, nor in relation thereto shall he be counted in the quorum present at the meeting, but (in the absence of some other material interest than is mentioned below) none of these prohibitions shall apply to:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 giving of any security, guarantee or indemnity in respect of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) money
 lent or obligations incurred by him or by any other person for our benefit or any of our
 subsidiaries; or

(ii) a
 debt or obligation of ours or any of our subsidiaries for which the director himself has
 assumed responsibility in whole or in part and whether alone or jointly with others under
 a guarantee or indemnity or by the giving of security;

&nbsp;&nbsp;&nbsp;&nbsp;(b) where
 we or any of our subsidiaries is offering securities in which offer the director is or may
 be entitled to participate as a holder of securities or in the underwriting or sub-underwriting
 of which the director is to or may participate;

(c) any
 contract, transaction, arrangement or proposal affecting any other body corporate in which
 he is interested, directly or indirectly and whether as an officer, shareholder, creditor
 or otherwise howsoever, provided that he (together with persons connected with him) does
 not to his knowledge hold an interest representing one percent or more of any class of the
 equity share capital of such body corporate (or of any third body corporate through which
 his interest is derived) or of the voting rights available to shareholders of the relevant
 body corporate;

(d) any
 act or thing done or to be done in respect of any arrangement for the benefit of the employees
 of us or any of our subsidiaries under which he is not accorded as a director any privilege
 or advantage not generally accorded to the employees to whom such arrangement relates; or

(e) any
 matter connected with the purchase or maintenance for any director of insurance against any
 liability or (to the extent permitted by the Cayman Companies Act) indemnities in favor of
 directors, the funding of expenditure by one or more directors in defending proceedings against
 him or them or the doing of anything to enable such director or directors to avoid incurring
 such expenditure.

A director may, as a director, vote (and be counted in the quorum) in respect of any contract, transaction, arrangement or proposal in which he has an interest which is not a material interest or as described above.

**Capitalization of Profits**

The directors may resolve to capitalize:

● any part of our profits not required for paying any preferential dividend (whether or not those profits are available for distribution); or

● any sum standing to the credit of our share premium account or capital redemption reserve, if any.

The amount resolved to be capitalized must be appropriate to the shareholders who would have been entitled to it had it been distributed by way of dividend and in the same proportions.

**Liquidation Rights**

If we are wound up, the shareholders may, subject to the articles and any other sanction required by the Cayman Companies Act, pass a special resolution allowing the liquidator to do either or both of the following:

● to divide in specie among the shareholders the whole or any part of our assets and, for that purpose, to value any assets and to determine how the division shall be carried out as between the shareholders or different classes of shareholders; and

● to vest the whole or any part of the assets in trustees for the benefit of shareholders and those liable to contribute to the winding up.

The directors have the authority to present a petition for our winding up to the Grand Court of the Cayman Islands on our behalf without the sanction of a resolution passed at a general meeting.

**Register of Members**

Under the Cayman Companies Act, we must keep a register of members and there should be entered therein:

● the names and addresses of our shareholders, and, a statement of the shares held by each member, which:

● distinguishes each share by its number (so long as the share has a number);

● confirms the amount paid, or agreed to be considered as paid, on the shares of each member;

● confirms the number and category of shares held by each member; and

● confirms whether each relevant category of shares held by a member carries voting rights under the articles of association of the company, and if so, whether such voting rights are conditional;

● the date on which the name of any person was entered on the register as a shareholder; and

● the date on which any person ceased to be a shareholder.

Under the Cayman Companies Act, the register of members of our company is prima facie evidence of the matters set out therein (that is, the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a shareholder registered in the register of members is deemed as a matter of the Cayman Companies Act to have legal title to the shares as set against its name in the register of members. Upon the completion of this offering, the register of members will be immediately updated to record and give effect to the issuance of shares by us to the custodian or its nominee. Once our register of members has been updated, the shareholders recorded in the register of members will be deemed to have legal title to the shares set against their name.

If the name of any person is incorrectly entered in or omitted from our register of members, or if there is any default or unnecessary delay in entering on the register the fact of any person having ceased to be a shareholder of our company, the person or shareholder aggrieved (or any shareholder of our company or our company itself) may apply to the Grand Court of the Cayman Islands for an order that the register be rectified, and the Court may either refuse such application or it may, if satisfied of the justice of the case, make an order for the rectification of the register.

**Differences in Corporate Law**

The Cayman Companies Act is largely derived from the older Companies Acts of England and Wales but does not follow recent United Kingdom statutory enactments, and accordingly there are significant differences between the Cayman Companies Act and the current Companies Act of the UK. In addition, the Cayman Companies Act differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Cayman Companies Act applicable to us and the comparable laws applicable to companies incorporated in the State of Delaware in the United States.

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| *Title of Organizational Documents* | Certificate of Incorporation and Bylaws | Certificate of Incorporation and Memorandum and Articles of Association |
| *Duties of Directors* | Under Delaware law, the business and affairs of a corporation are managed by or under the direction of its board of directors. In exercising their powers, directors are charged with a fiduciary duty of care to protect the interests of the corporation and a fiduciary duty of loyalty to act in the best interests of its shareholders. The duty of care requires that directors act in an informed and deliberative manner and inform themselves, prior to making a business decision, of all material information reasonably available to them. The duty of care also requires that directors exercise care in overseeing and investigating the conduct of the corporation's employees. The duty of loyalty may be summarized as the duty to act in good faith, not out of self-interest, and in a manner which the director reasonably believes to be in the best interests of the shareholders. | As a matter of Cayman Islands law, a director owes three types of duties to the company: (i) statutory duties, (ii) fiduciary duties, and (iii) common law duties. The Cayman Companies Act imposes a number of statutory duties on a director. A Cayman Islands director's fiduciary duties are not codified, however the courts of the Cayman Islands have held that a director owes the following fiduciary duties (a) a duty to act in what the director bona fide considers to be in the best interests of the company, (b) a duty to exercise their powers for the purposes they were conferred, (c) a duty to avoid fettering his or her discretion in the future and (d) a duty to avoid conflicts of interest and of duty. The common law duties owed by a director are those to act with skill, care and diligence that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and, also, to act with the skill, care and diligence in keeping with a standard of care commensurate with any particular skill they have which enables them to meet a higher standard than a director without those skills. In fulfilling their duty of care to us, our directors must ensure compliance with our amended and restated memorandum and articles of association, as amended and restated from time to time. We have the right to seek damages where certain duties owed by any of our directors are breached. |

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| *Limitations on Personal Liability of Directors* | Subject to the limitations described below, a certificate of incorporation may provide for the elimination or limitation of the personal liability of a director to the corporation or its shareholders for monetary damages for a breach of fiduciary duty as a director. Such provision cannot limit liability for breach of loyalty, bad faith, intentional misconduct, unlawful payment of dividends or unlawful share purchase or redemption. In addition, the certificate of incorporation cannot limit liability for any act or omission occurring prior to the date when such provision becomes effective. | The Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. |
| *Indemnification of Directors, Officers, Agents, and Others* | A corporation has the power to indemnify any director, officer, employee, or agent of corporation who was, is, or is threatened to be made a party who acted in good faith and in a manner he believed to be in the best interests of the corporation, and if with respect to a criminal proceeding, had no reasonable cause to believe his conduct would be unlawful, against amounts actually and reasonably incurred. | Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own fraud or dishonesty.<br>Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of directors and officers, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against the consequences of committing a crime, or against the indemnified person's own fraud or dishonesty.<br> Our amended and restated articles of association provide to the extent permitted by law, we shall indemnify each existing or former secretary, director (including alternate director), and any of our other officers (including an investment adviser or an administrator or liquidator) and their personal representatives against: (a) all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by the existing or former director (including alternate director), secretary or officer in or about the conduct of our business or affairs or in the execution or discharge of the existing or former director (including alternate director), secretary's or officer's duties, powers, authorities or discretions; and (b) without limitation to paragraph (a) above, all costs, expenses, losses or liabilities incurred by the existing or former director (including alternate director), secretary or officer in defending (whether successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed) concerning us or our affairs in any court or tribunal, whether in the Cayman Islands or elsewhere.<br>No such existing or former director (including alternate director), secretary or officer, however, shall be indemnified in respect of any matter arising out of his own actual fraud, willful default or willful neglect.<br> To the extent permitted by law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing or former director (including alternate director), secretary or any of our officers in respect of any matter identified in above on condition that the director (including alternate director), secretary or officer must repay the amount paid by us to the extent that we are ultimately found not liable to indemnify the director (including alternate director), the secretary or that officer for those legal costs. |

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| *Interested Directors* | Under Delaware law, a transaction in which a director who has an interest in such transaction would not be voidable if (i) the material facts as to such interested director's relationship or interests are disclosed or are known to the board of directors and the board in good faith authorizes the transaction by the affirmative vote of a majority of the disinterested directors, even though the disinterested directors are less than a quorum, (ii) such material facts are disclosed or are known to the shareholders entitled to vote on such transaction and the transaction is specifically approved in good faith by vote of the shareholders, or (iii) the transaction is fair as to the corporation as of the time it is authorized, approved or ratified. Under Delaware law, a director could be held liable for any transaction in which such director derived an improper personal benefit. | Interested director transactions are governed by the terms of a company's memorandum and articles of association. |

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| | | |
|:---|:---|:---|
| *Voting Requirements* | &nbsp;&nbsp;The certificate of incorporation may include a provision requiring supermajority approval by the directors or shareholders for any corporate action.<br>In addition, under Delaware law, certain business combinations involving interested shareholders require approval by a supermajority of the non-interested shareholders. | For the protection of shareholders, certain matters must be approved by special resolution of the shareholders as a matter of Cayman Islands law, including alteration of the memorandum or articles of association, appointment of inspectors to examine company affairs, reduction of share capital (subject, in relevant circumstances, to court approval), change of name, authorization of a plan of merger or transfer by way of continuation to another jurisdiction or consolidation or voluntary winding up of the company.<br>The Cayman Companies Act requires that a special resolution be passed by a majority of at least two-thirds, or such higher percentage as set forth in the memorandum and articles of association, of shareholders being entitled to vote and do vote in person or by proxy at a general meeting, or by unanimous written consent of shareholders entitled to vote at a general meeting.<br>The Cayman Companies Act defines "special resolutions" only. A company's memorandum and articles of association can therefore tailor the definition of "ordinary resolutions" as a whole, or with respect to specific provisions. |
| *Voting for Directors* | Under Delaware law, unless otherwise specified in the certificate of incorporation or bylaws of the corporation, directors shall be elected by a plurality of the votes of the shares present in person or represented by proxy at the meeting and entitled to vote on the election of directors. | Director election is governed by the terms of the memorandum and articles of association. |
| *Cumulative Voting* | No cumulative voting for the election of directors unless so provided in the certificate of incorporation. | There are no prohibitions in relation to cumulative voting under the Cayman Companies Act but our amended and restated articles of association do not provide for cumulative voting. |
| *Directors' Powers Regarding Bylaws* | The certificate of incorporation may grant the directors the power to adopt, amend or repeal bylaws. | The memorandum and articles of association may only be amended by a special resolution of the shareholders. |

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| *Nomination and Removal of Directors and Filling Vacancies on Board* | Shareholders may generally nominate directors if they comply with advance notice provisions and other procedural requirements in company bylaws. Holders of a majority of the shares may remove a director with or without cause, except in certain cases involving a classified board or if the company uses cumulative voting. Unless otherwise provided for in the certificate of incorporation, directorship vacancies are filled by a majority of the directors elected or then in office. | Nomination and removal of directors and filling of board vacancies are governed by the terms of the memorandum and articles of association. |
| *Mergers and Similar Arrangements* | Under Delaware law, with certain exceptions, a merger, consolidation, or sale of all or substantially all of the assets of a corporation must be approved by the board of directors and by a majority of the outstanding voting power of the shares entitled to vote thereon. Under Delaware law, a shareholder of a corporation participating in certain mergers are entitled to appraisal rights pursuant to which such shareholder may receive cash in the amount of the fair value (as determined by the Delaware Court of Chancery) of the shares held by such shareholder in lieu of the consideration such shareholder would otherwise receive in the transaction. | The Cayman Companies Act provides for the merger or consolidation of two or more companies into a single entity. The legislation makes a distinction between a "consolidation" and a "merger." In a consolidation, a new entity is formed from the combination of each participating company, and the separate consolidating parties, as a consequence, cease to exist and are each stricken off by the Registrar of Companies. In a merger, one company remains as the surviving entity, having in effect absorbed the other merging parties that are then stricken off and cease to exist. |
|  | Delaware law also provides that a parent entity, by resolution of its board of directors, may merge with any subsidiary corporation, of which it owns at least 90% of each class of capital stock without a vote by shareholders of such subsidiary. Upon any such merger, dissenting shareholders of the subsidiary would have appraisal rights unless the subsidiary is wholly owned. | Two or more Cayman-registered companies may merge or consolidate. Cayman-registered companies may also merge or consolidate with foreign companies provided that the laws of the foreign jurisdiction permit such merger or consolidation.<br>Under the Cayman Companies Act, a plan of merger or consolidation shall be authorized by each constituent company by way of (i) a special resolution of the members of each such constituent company; and (ii) such other authorization, if any, as may be specified in such constituent company's memorandum and articles of association. |

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| | | |
|:---|:---|:---|
| **Delaware** | **Cayman Islands** | **Cayman Islands** |
|  | &nbsp;&nbsp;&nbsp;&nbsp;A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose, a subsidiary is a company of which at least ninety percent (90%) of the votes are owned by the parent company.<br>The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.<br>Save in certain circumstances, a dissentient shareholder of a Cayman constituent company is entitled to payment of the fair value of his shares upon dissenting to a merger or consolidation. The exercise of appraisal rights will preclude the exercise of any other rights save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.<br>In addition, there are statutory provisions that facilitate the reconstruction and amalgamation of companies, provided that the arrangement is approved by seventy-five percent (75%) in value of the shareholders or class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that: | &nbsp;&nbsp;&nbsp;&nbsp;A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every member of that Cayman subsidiary to be merged unless that member agrees otherwise. For this purpose, a subsidiary is a company of which at least ninety percent (90%) of the votes are owned by the parent company.<br>The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.<br>Save in certain circumstances, a dissentient shareholder of a Cayman constituent company is entitled to payment of the fair value of his shares upon dissenting to a merger or consolidation. The exercise of appraisal rights will preclude the exercise of any other rights save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.<br>In addition, there are statutory provisions that facilitate the reconstruction and amalgamation of companies, provided that the arrangement is approved by seventy-five percent (75%) in value of the shareholders or class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that: |
|  | ● | the statutory provisions as to the required majority vote have been met; |
|  | ● | the shareholders have been fairly represented at the meeting in question; |

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| | | | |
|:---|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** | **Cayman Islands** |
|  |  | ● | the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and |
|  |  | ● | the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Companies Act or that would amount to a "fraud on the minority". |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;<br> When a takeover offer is made and accepted by holders of not less than 90.0% in value of the shares for which the offer has been made, the offeror may at any time, within a two (2) month period after approval by the said holders, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands, but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.<br>If an arrangement and reconstruction is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares. | &nbsp;&nbsp;&nbsp;&nbsp;<br> When a takeover offer is made and accepted by holders of not less than 90.0% in value of the shares for which the offer has been made, the offeror may at any time, within a two (2) month period after approval by the said holders, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands, but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.<br>If an arrangement and reconstruction is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares. |
| ***Shareholder Suits*** | Class actions and derivative actions generally are available to shareholders under Delaware law for, among other things, breach of fiduciary duty, corporate waste and actions not taken in accordance with applicable law.<br>In such actions, the court generally has discretion to permit the winning party to recover attorneys' fees incurred in connection with such action, but such discretion is rarely used. Generally, Delaware follows the American rule under which each party bears its own costs. | In principle, we will normally be the proper plaintiff and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, there are exceptions to the foregoing principle, including when: | In principle, we will normally be the proper plaintiff and as a general rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, there are exceptions to the foregoing principle, including when: |
|  |  | ● | a company acts or proposes to act illegally or ultra vires; |
|  |  | ● | the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and |
|  |  | ● | those who control the company are perpetrating a "fraud on the minority. |

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| | | |
|:---|:---|:---|
|  | **Delaware** | **Cayman Islands** |
| ***Inspection of Corporate Records*** | Under Delaware law, shareholders of a corporation, upon written demand under oath stating the purpose thereof, have the right during normal business hours to inspect for any proper purpose, and to make copies and extracts of list(s) of shareholders and other books and records of the corporation and its subsidiaries, if any, to the extent the books and records of such subsidiaries are available to the corporation. | Shareholders of a Cayman Islands exempted company have no general right under Cayman Islands law to inspect or obtain copies of a list of shareholders or other corporate records (other than copies of our memorandum and articles, the register of mortgages or charges, and any special resolutions passed by our shareholders) of the company. However, these rights may be provided in the company's memorandum and articles of association. |
| ***Shareholder Proposals*** | Under Delaware law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the corporation's governing documents. A special meeting may be called by the board of directors, or any other person authorized to do so in the corporation's governing documents, but shareholders may be precluded from calling special meetings. | The Cayman Companies Act does not provide shareholders with any right to bring business before a meeting or requisition a general meeting. However, these rights may be provided in the company's memorandum and articles of association. |
| ***Approval of Corporate Matters by Written Consent*** | Delaware law permits shareholders to take action by written consent signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting of shareholders unless otherwise provided in the corporation's certificate of incorporation. A corporation must send prompt notice of the taking of the corporate action approved by shareholders without a meeting by less than unanimous written consent to those shareholders who have not consented in writing and who would have otherwise been entitled to notice of the meeting at which such action would have been taken. | The Cayman Companies Act allows a special resolution to be passed in writing if signed by all the voting shareholders (if authorized by the memorandum and articles of association). |
| ***Calling of Special Shareholders Meetings*** | Delaware law permits the board of directors or any person who is authorized under a corporation's certificate of incorporation or bylaws to call a special meeting of shareholders. | The Cayman Companies Act does not have provisions governing the proceedings of shareholders meetings which are usually provided in the memorandum and articles of association. |

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**Anti-money Laundering - Cayman Islands**

In order to comply with legislation or regulations aimed at the prevention of money laundering, we are required to adopt and maintain anti-money laundering procedures and may require subscribers to provide evidence to verify their identity and source of funds. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information as is necessary to verify the identity of a subscriber. In some cases the directors may be satisfied that no further information is required since an exemption applies under the Anti-Money Laundering Regulations (Revised) of the Cayman Islands, as amended and revised from time to time (the "Regulations"). Depending on the circumstances of each application, a detailed verification of identity might not be required where:

● the subscriber makes the payment for their investment from an account held in the subscriber's name at a recognized financial institution; or

● the subscriber is regulated by a recognized regulatory authority and is based or incorporated in, or formed under the law of, a recognized jurisdiction; or

● the application is made through an intermediary which is regulated by a recognized regulatory authority and is based in or incorporated in, or formed under the law of a recognized jurisdiction and an assurance is provided in relation to the procedures undertaken on the underlying investors.

For the purposes of these exceptions, recognition of a financial institution, regulatory authority, or jurisdiction will be determined in accordance with the Regulations by reference to those jurisdictions recognized by the Cayman Islands Monetary Authority as having equivalent anti-money laundering regulations.

In the event of delay or failure on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited.

We also reserve the right to refuse to make any redemption payment to a shareholder if our directors or officers suspect or are advised that the payment of redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure our compliance with any such laws or regulations in any applicable jurisdiction.

If any person resident in the Cayman Islands knows or suspects or has reason for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of their business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) a nominated officer (appointed in accordance with the Proceeds of Crime Act (Revised) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (Revised), if the disclosure relates to criminal conduct or money laundering or (ii) to a police constable or a nominated officer (pursuant to the Terrorism Act (Revised) of the Cayman Islands) or the Financial Reporting Authority, pursuant to the Terrorism Act (Revised), if the disclosure relates to involvement with terrorism or terrorist financing and terrorist property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

**Data Protection in the Cayman Islands - Privacy Notice**

This privacy notice explains the manner in which we collect, process, and maintain personal data about our investors pursuant to the Data Protection Act (Revised) of the Cayman Islands, as amended from time to time and any regulations, codes of practice, or orders promulgated pursuant thereto (the "DPA**"**).

We are committed to processing personal data in accordance with the DPA. In our use of personal data, we will be characterized under the DPA as a "data controller," whilst certain of our service providers, affiliates, and delegates may act as "data processors" under the DPA. These service providers may process personal information for their own lawful purposes in connection with services provided to us.

By virtue of your investment in our Company, we and certain of our service providers may collect, record, store, transfer, and otherwise process personal data by which individuals may be directly or indirectly identified.

Your personal data will be processed fairly and for lawful purposes, including (a) where the processing is necessary for us to perform a contract to which you are a party or for taking pre-contractual steps at your request, (b) where the processing is necessary for compliance with any legal, tax, or regulatory obligation to which we are subject, or

(c) where the processing is for the purposes of legitimate interests pursued by us or by a service provider to whom the data is disclosed. As a data controller, we will only use your personal data for the purposes for which we collected it. If we need to use your personal data for an unrelated purpose, we will contact you.

We anticipate that we will share your personal data with our service providers for the purposes set out in this privacy notice. We may also share relevant personal data where it is lawful to do so and necessary to comply with our contractual obligations or your instructions or where it is necessary or desirable to do so in connection with any regulatory reporting obligations. In exceptional circumstances, we will share your personal data with regulatory, prosecuting, and other governmental agencies or departments, and parties to litigation (whether pending or threatened), in any country or territory including to any other person where we have a public or legal duty to do so (e.g. to assist with detecting and preventing fraud, tax evasion, and financial crime or compliance with a court order).

Your personal data shall not be held by our Company for longer than necessary with regard to the purposes of the data processing.

We will not sell your personal data. Any transfer of personal data outside of the Cayman Islands shall be in accordance with the requirements of the DPA. Where necessary, we will ensure that separate and appropriate legal agreements are put in place with the recipient of that data.

We will only transfer personal data in accordance with the requirements of the DPA and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction, or damage to the personal data.

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data on individuals connected to you for any reason in relation to your investment into our Company, this will be relevant for those individuals and you should inform such individuals of the content.

You have certain rights under the DPA, including (a) the right to be informed as to how we collect and use your personal data (and this privacy notice fulfills our obligation in this respect), (b) the right to obtain a copy of your personal data, (c) the right to require us to stop direct marketing, (d) the right to have inaccurate or incomplete personal data corrected, (e) the right to withdraw your consent and require us to stop processing or restrict the processing, or not begin the processing of your personal data, (f) the right to be notified of a data breach (unless the breach is unlikely to be prejudicial), (g) the right to obtain information as to any countries or territories outside the Cayman Islands to which we, whether directly or indirectly, transfer, intend to transfer, or wish to transfer your personal data, general measures we take to ensure the security of personal data, and any information available to us as to the source of your personal data, (h) the right to complain to the Office of the Ombudsman of the Cayman Islands, and (i) the right to require us to delete your personal data in some limited circumstances.

If you consider that your personal data has not been handled correctly, or you are not satisfied with our responses to any requests you have made regarding the use of your personal data, you have the right to complain to the Cayman Islands' Ombudsman. The Ombudsman can be contacted by calling +1 (345) 946-6283 or by email at info@ombudsman.ky.

**Legislation of the Cayman Islands**

The Cayman Islands, together with several other non-European Union jurisdictions, have recently introduced legislation aimed at addressing concerns raised by the Council of the European Union as to offshore structures engaged in certain activities which attract profits without real economic activity. With effect from January 1, 2019, the International Tax Co-operation (Economic Substance) Act (Revised) (the "Substance Act") came into force in the Cayman Islands introducing certain economic substance requirements for "relevant entities" in the Cayman Islands. A "relevant entity" includes an exempted company incorporated in the Cayman Islands as is our Company. Based on the current interpretation of the Substance Act, we believe that our Company is a pure equity holding company since it only holds equity participation in other entities and only earns dividends and capital gains. Accordingly, for so long as our Company is a "pure equity holding company", it is only subject to the minimum substance requirements, which require us to (i) comply with all applicable filing requirements under the Companies Act; and (ii) has adequate human resources and adequate premises in the Cayman Islands for holding and managing equity participations in other entities. However, there can be no assurance that we will not be subject to more requirements under the Substance Act.

**History of Share Issuances**

The following is a summary of our share issuances since incorporation.

We were incorporated in the Cayman Islands as an exempt company with limited liability on July 13, 2023, 1 Class A ordinary share was issued to Osiris International Cayman Limited. On July 13, 2023, the 1 Class A ordinary share was transferred from Osiris International Cayman Limited to Arrowmask Investment Limited and Carbon Zero Technologies International Inc. further issued the following shares on the same date:

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Classes of Ordinary Shares** | **Date of <br> Issuance** | **Number of <br> Shares Issued** |
| Expola Investment Limited | Class B ordinary shares | July 13, 2023 | 34000000 |
| Beveist Investment Limited | Class A ordinary shares | July 13, 2023 | 22526500 |
| Getcher Investment Limited | Class A ordinary shares | July 13, 2023 | 21560000 |
| Endoeval Investment Limited | Class A ordinary shares | July 13, 2023 | 20250506 |
| Unatee Investment Limited | Class A ordinary shares | July 13, 2023 | 13080000 |
| Groadse Investment Limited | Class A ordinary shares | July 13, 2023 | 10244573 |
| Brookline Management Limited | Class A ordinary shares | July 13, 2023 | 7000000 |
| Sprint Investment Limited | Class A ordinary shares | July 13, 2023 | 6780000 |
| South Kensington Investment Limited | Class A ordinary shares | July 13, 2023 | 6000000 |
| Prospe Investment Limited | Class A ordinary shares | July 13, 2023 | 4740000 |
| Gravel Investment Limited | Class A ordinary shares | July 13, 2023 | 2548902 |
| Arrowmask Investment Limited | Class A ordinary shares | July 13, 2023 | 2179999 |
| Rocage Investment Limited | Class A ordinary shares | July 13, 2023 | 2000000 |
| Eagletree Investment Limited | Class A ordinary shares | July 13, 2023 | 1733170 |
| Dumace Investment Limited | Class A ordinary shares | July 13, 2023 | 1241584 |
| Seekant Investment Limited | Class A ordinary shares | July 13, 2023 | 1241584 |
| Feyond Investment Limited | Class A ordinary shares | July 13, 2023 | 765604 |
| Bisoon Investment Limited | Class A ordinary shares | July 13, 2023 | 418347 |
| Paulee Investment Limited | Class A ordinary shares | July 13, 2023 | 275941 |
| Schrodier Investment Limited | Class A ordinary shares | July 13, 2023 | 275941 |
| Chaingi Investment Limited | Class A ordinary shares | July 13, 2023 | 137958 |

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As of the date of this prospectus, we have an aggregate of 125,000,610 Class A ordinary shares and 34,000,000 Class B ordinary shares issued and outstanding.

**Underwriter Purchase Option**

We have agreed to sell to the Representative an underwriter purchase option ("UPO") to purchase up to a total of 166,750 ADSs (5% of the ADSs sold in this offering) for consideration of $100. The UPO will be exercisable at any time, and from time to time, in whole or in part, during the four and a half-year period commencing six months from the effective date of the offering, which period shall not extend further than five years from the effective date of the registration statement, of which this prospectus is a part, in compliance with FINRA Rule 5110(f)(2)(G). The UPO is exercisable at a per ADS price equal to 110% of the public offering price per ADS in the offering. The UPO has been deemed compensation by FINRA and is therefore subject to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA. The Representative (or permitted assignees under Rule 5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate the UPO or the securities underlying the UPO, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the UPO or the underlying securities for a period of 180 days from the date of this prospectus.

The exercise price and number of ADSs issuable upon exercise of the UPO may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or recapitalization, reorganization, merger or consolidation.

**DESCRIPTION OF AMERICAN DEPOSITARY SHARES**

**American Depositary Shares**

The Bank of New York Mellon, as depositary, will register and deliver the ADSs. Each ADS will represent specified contractual rights with respect to four (4) Class A ordinary shares, deposited with The Hongkong and Shanghai Banking Corporation Limited, as custodian for the depositary. Each ADS will also represent specified contractual rights with respect to any other securities, cash or other property which may be held by the depositary under the deposit agreement. The depositary's office at which the ADSs will be administered is located at 240 Greenwich Street, New York, NY 10286, USA. The principal executive office of the depositary is located at 240 Greenwich Street, New York, NY 10286, USA.

You may hold ADSs either (A) directly (i) by having an American Depositary Receipt, also referred to as an ADR, which is a certificate evidencing a specific number of ADSs, registered in your name, or (ii) by having uncertificated ADSs registered in your name, or (B) indirectly by holding a security entitlement in ADSs through your broker or other financial institution that is a direct or indirect participant in The Depository Trust Company, also called DTC. If you hold ADSs directly, you are a registered ADS holder, also referred to as an ADS holder. This description assumes you are an ADS holder. If you hold the ADSs indirectly, you must rely on the procedures of your broker or other financial institution to assert the rights of ADS holders described in this section. You should consult with your broker or financial institution to find out what those procedures are.

Registered holders of uncertificated ADSs will receive statements from the depositary confirming their holdings.

As an ADS holder, we will not treat you as one of our shareholders and you will not have shareholder rights. Cayman Islands law governs shareholder rights. The depositary will be the holder of the shares underlying your ADSs. As a registered holder of ADSs, you will have ADS holder rights. A deposit agreement among us, the depositary, ADS holders and all other persons indirectly or beneficially holding ADSs sets out ADS holder rights as well as the rights and obligations of the depositary. New York law governs the deposit agreement and the ADSs.

The following is a summary of the material provisions of the deposit agreement. For more complete information, you should read the entire deposit agreement and the form of ADR. For directions on how to obtain copies of those documents, see "Where You Can Find Additional Information."

**Dividends and Other Distributions**

 ***How will You Receive Dividends and Other Distributions On the Shares?***

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The depositary has agreed to pay or distribute to ADS holders the cash dividends or other distributions it or the custodian receives on shares or other deposited securities, upon payment or deduction of its fees and expenses. You will receive these distributions in proportion to the number of shares your ADSs represent.

***Cash.*** The depositary will convert any cash dividend or other cash distribution we pay on the shares into U.S. dollars, if it can do so on a reasonable basis and can transfer the U.S. dollars to the United States. If that is not possible or if any government approval is needed and cannot be obtained, the deposit agreement allows the depositary to distribute the foreign currency only to those ADS holders to whom it is possible to do so. It will hold the foreign currency it cannot convert for the account of the ADS holders who have not been paid. It will not invest the foreign currency and it will not be liable for any interest.

Before making a distribution, any withholding taxes, or other governmental charges that must be paid will be deducted. See "Taxation" for additional information. The depositary will distribute only whole U.S. dollars and cents and will round fractional cents to the nearest whole cent. If the exchange rates fluctuate during a time when the depositary cannot convert the foreign currency, you may lose some of the value of the distribution.

***Shares.*** The depositary may distribute additional ADSs representing any shares we distribute as a dividend or free distribution. The depositary will only distribute whole ADSs. It will sell shares which would require it to deliver a fraction of an ADS (or ADSs representing those shares) and distribute the net proceeds in the same way as it does with cash. If the depositary does not distribute additional ADSs, the outstanding ADSs will also represent the new shares. The depositary may sell a portion of the distributed shares (or ADSs representing those shares) sufficient to pay its fees and expenses in connection with that distribution.

***Rights to Purchase Additional Shares.*** If we offer holders of our securities any rights to subscribe for additional shares or any other rights, the depositary may (i) exercise those rights on behalf of ADS holders, (ii) distribute those rights to ADS holders or (iii) sell those rights and distribute the net proceeds to ADS holders, in each case after deduction or upon payment of its fees and expenses. To the extent the depositary does not do any of those things, it will allow the rights to lapse. In that case, you will receive no value for them. The depositary will exercise or distribute rights only if we ask it to and provide satisfactory assurances to the depositary that it is legal to do so. If the depositary will exercise rights, it will purchase the securities to which the rights relate and distribute those securities or, in the case of shares, new ADSs representing the new shares, to subscribing ADS holders, but only if ADS holders have paid the exercise price to the depositary. U.S. securities laws may restrict the ability of the depositary to distribute rights or ADSs or other securities issued on exercise of rights to all or certain ADS holders, and the securities distributed may be subject to restrictions on transfer.

***Other Distributions.*** The depositary will send to ADS holders anything else we distribute on deposited securities by any means it thinks is legal, fair and practical. If it cannot make the distribution in that way, the depositary has a choice. It may decide to sell what we distributed and distribute the net proceeds, in the same way as it does with cash. Or, it may decide to hold what we distributed, in which case the ADSs will also represent the newly distributed property. However, the depositary is not required to distribute any securities (other than the ADSs) to ADS holders unless it receives satisfactory evidence from us that it is legal to make that distribution. The depositary may sell a portion of the distributed securities or property sufficient to pay its fees and expenses in connection with that distribution. U.S. securities laws may restrict the ability of the depositary to distribute securities to all or certain ADS holders, and the securities distributed may be subject to restrictions on transfer.

The depositary is not responsible if it decides that it is unlawful or impractical to make a distribution available to any ADS holders. We have no obligation to register ADSs, shares, rights or other securities under the Securities Act. We also have no obligation to take any other action to permit the distribution of ADSs, shares, rights or anything else to ADS holders. This means that you may not receive the distributions we make on our shares or any value for them if it is illegal or impractical for us to make them available to you.

**Deposit, Withdrawal and Cancelation**

***How are the ADSs Issued?***

The depositary will deliver ADSs if you or your broker deposits shares or evidence of rights to receive shares with the custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will register the appropriate number of ADSs in the names you request and will deliver the ADSs to or upon the order of the person or persons that made the deposit.

Except for Class A ordinary shares deposited by us and the Selling Shareholder in connection with this offering, no Class A ordinary shares will be accepted for deposit during a period of three months from the date of this prospectus. The three-month lock up period is subject to adjustment under certain circumstances as described in the section entitled "Shares Eligible for Future Sale—Lock-up Agreements."

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***How can ADS Holders withdraw the Deposited Securities?***

You may turn in your ADSs at the depositary's office or by providing appropriate instructions to your broker. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, the depositary will deliver the ordinary shares and any other deposited securities underlying the ADSs to you or a person you designate at the office of the custodian. Or, at your request, risk and expense, the depositary will deliver the deposited securities at its office, to the extent permitted by law.

 ***How do ADS Holders Interchange between Certificated ADSs and Uncertificated ADSs?***

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You may surrender your ADR to the depositary for the purpose of exchanging your ADR for uncertificated ADSs. The depositary will cancel that ADR and will send to the ADS holder a statement confirming that the ADS holder is the registered holder of uncertificated ADSs. Upon receipt by the depositary of a proper instruction from a registered holder of uncertificated ADSs requesting the exchange of uncertificated ADSs for certificated ADSs, the depositary will execute and deliver to the ADS holder an ADR evidencing those ADSs.

**Voting Rights**

***How do You Vote?***

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ADS holders may instruct the depositary how to vote the number of deposited shares their ADSs represent. See "Description of Share Capital" for more information on the voting rights of our Class A ordinary shares underlying the ADSs. If we request the depositary to solicit your voting instructions (and we are not required to do so), the depositary will notify you of a shareholders' meeting and send or make voting materials available to you. Those materials will describe the matters to be voted on and explain how ADS holders may instruct the depositary how to vote. For instructions to be valid, they must reach the depositary by a date set by the depositary. The depositary will try, as far as practical, subject to the laws of the Cayman Islands and the provisions of our articles of association or similar documents, to vote or to have its agents vote the shares or other deposited securities as instructed by ADS holders. If we do not request the depositary to solicit your voting instructions, you can still send voting instructions, and, in that case, the depositary may try to vote as you instruct, but it is not required to do so.

We cannot assure you that you will receive the voting materials in time to ensure that you can instruct the depositary to vote the shares represented by your ADSs.

In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that you may not be able to exercise voting rights and there may be nothing you can do if the shares represented by your ADSs are not voted as you requested.

In order to give you a reasonable opportunity to instruct the depositary as to the exercise of voting rights relating to Deposited Securities, if we request the depositary to act, we agree to give the depositary notice of any such meeting and details concerning the matters to be voted upon at least 30 days in advance of the meeting date.

**Fees and Expenses**

As an ADS holder, you will be required to pay the following service fees to the depositary bank and certain taxes and governmental charges (in addition to any applicable fees, expenses, taxes and other governmental charges payable on the deposited securities represented by any of your ADSs):

As an ADS holder, you will also be responsible for paying certain fees and expenses incurred by the depositary and certain taxes and governmental charges (in addition to any applicable fees, expenses, taxes and other governmental charges payable on the deposited securities represented by any of your ADSs) such as:

● Fees for the transfer and registration of ordinary shares charged by the registrar and transfer agent for the ordinary shares in the Cayman Islands (i.e., upon deposit and withdrawal of ordinary shares).

● Expenses incurred for converting foreign currency into U.S. dollars.

● Expenses for fax and SWIFT transmissions and for delivery of securities.

● Taxes and duties upon the transfer of securities, including any applicable stamp duties, any stock transfer charges or withholding taxes (i.e., when ordinary shares are deposited or withdrawn from deposit).

● Fees and expenses incurred in connection with the delivery or servicing of ordinary shares on deposit.

● Fees and expenses incurred in connection with complying with exchange control regulations and other regulatory requirements applicable to ordinary shares, deposited securities and ADSs.

● Any applicable fees and penalties thereon.

The depositary collects its fees for delivery and surrender of the ADSs directly from investors depositing shares or surrendering the ADSs for the purpose of withdrawal or from intermediaries acting for them. The depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees. The depositary may collect its annual fee for depositary services by deduction from cash distributions or by directly billing investors or by charging the book-entry system accounts of participants acting for them. The depositary may collect any of its fees by deduction from any cash distribution payable (or by selling a portion of securities or other property distributable) to ADS holders that are obligated to pay those fees. The depositary may generally refuse to provide fee-attracting services until its fees for those services are paid.

From time to time, the depositary may make payments to us to reimburse us for costs and expenses generally arising out of establishment and maintenance of the ADS program, waive fees and expenses for services provided to us by the depositary or share revenue from the fees collected from ADS holders. In performing its duties under the deposit agreement, the depositary may use brokers, dealers, foreign currency dealers or other service providers that are owned by or affiliated with the depositary and that may earn or share fees, spreads or commissions.

The depositary may convert currency itself or through any of its affiliates, or the custodian or we may convert currency and pay U.S. dollars to the depositary. Where the depositary converts currency itself or through any of its affiliates, the depositary, acts as principal for its own account and not as agent, advisor, broker or fiduciary on behalf of any other person and earns revenue, including, without limitation, transaction spreads, that it will retain for its own account.

The revenue is based on, among other things, the difference between the exchange rate assigned to the currency conversion made under the deposit agreement and the rate that the depositary or its affiliate receives when buying or selling foreign currency for its own account. The depositary makes no representation that the exchange rate used or obtained by it or its affiliate in any currency conversion under the deposit agreement will be the most favorable rate that could be obtained at the time or that the method by which that rate will be determined will be the most favorable to ADS holders, subject to the depositary's obligation to act without negligence or bad faith. The methodology used to determine exchange rates used in currency conversions made by the depositary is available upon request. Where the custodian converts currency, the custodian has no obligation to obtain the most favorable rate that could be obtained at the time or to ensure that the method by which that rate will be determined will be the most favorable to ADS holders, and the depositary makes no representation that the rate is the most favorable rate and will not be liable for any direct or indirect losses associated with the rate. In certain instances, the depositary may receive dividends or other distributions from us in U.S. dollars that represent the proceeds of a conversion of foreign currency or translation from foreign currency at a rate that was obtained or determined by us and, in such cases, the depositary will not engage in, or be responsible for, any foreign currency transactions and neither it nor we make any representation that the rate obtained or determined by us is the most favorable rate and neither it nor we will be liable for any direct or indirect losses associated with the rate.

**Payment of Taxes**

You will be responsible for any taxes or other governmental charges payable on your ADSs or on the deposited securities represented by any of your ADSs. The depositary may refuse to register any transfer of your ADSs or allow you to withdraw the deposited securities represented by your ADSs until those taxes or other charges are paid. It may apply payments owed to you or sell deposited securities represented by your ADSs to pay any taxes owed and you will remain liable for any deficiency. If the depositary sells deposited securities, it will, if appropriate, reduce the number of the ADSs to reflect the sale and pay to ADS holders any proceeds, or send to ADS holders any property, remaining after it has paid the taxes.

**Tender and Exchange Offers; Redemption, Replacement or Cancelation of Deposited Securities**

The depositary will not tender deposited securities in any voluntary tender or exchange offer unless instructed to do so by an ADS holder surrendering the ADSs and subject to any conditions or procedures the depositary may establish.

If deposited securities are redeemed for cash in a transaction that is mandatory for the depositary as a holder of deposited securities, the depositary will call for surrender of a corresponding number of the ADSs and distribute the net redemption money to the holders of called ADSs upon surrender of those ADSs.

If there is any change in the deposited securities such as a sub-division, combination or other reclassification, or any merger, consolidation, recapitalization or reorganization affecting the issuer of deposited securities in which the depositary receives new securities in exchange for or in lieu of the old deposited securities, the depositary will hold those replacement securities as deposited securities under the deposit agreement. However, if the depositary decides it would not be lawful and practical to hold the replacement securities because those securities could not be distributed to ADS holders or for any other reason, the depositary may instead sell the replacement securities and distribute the net proceeds upon surrender of the ADSs.

If there is a replacement of the deposited securities and the depositary will continue to hold the replacement securities, the depositary may distribute new ADSs representing the new deposited securities or ask you to surrender your outstanding ADSs in exchange for new ADSs identifying the new deposited securities.

If there are no deposited securities underlying the ADSs, including if the deposited securities are canceled, or if the deposited securities underlying the ADSs have become apparently worthless, the depositary may call for surrender of those ADSs or cancel those ADSs upon notice to the ADS holders.

**Amendment and Termination**

***How may the Deposit Agreement be Amended?***

We may agree with the depositary to amend the deposit agreement and the ADRs without your consent for any reason. If an amendment adds or increases fees or charges, except for taxes and other governmental charges or expenses of the depositary for registration fees, facsimile costs, delivery charges or similar items, or prejudices a substantial right of ADS holders, it will not become effective for outstanding ADSs until 30 days after the depositary notifies ADS holders of the amendment. At the time an amendment becomes effective, you are considered, by continuing to hold your ADSs, to agree to the amendment and to be bound by the ADRs and the deposit agreement as amended.

***How may the Deposit Agreement be Terminated?***

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The depositary will initiate termination of the deposit agreement if we instruct it to do so. The depositary may initiate termination of the deposit agreement if:

● 60 days have passed since the depositary told us it wants to resign but a successor depositary has not been appointed and accepted its appointment;

● we delist the ADSs from an exchange in the United States on which they were listed and do not list the ADSs on another exchange in the United States or make arrangements for trading of the ADSs on the U.S. over-the-counter market;

● to the extent applicable, we delist our shares from an exchange outside the United States on which they were listed and do not list the shares on another exchange outside the United States;

● the depositary has reason to believe the ADSs have become, or will become, ineligible for registration on Form F-6 under the Securities Act of 1933;

● we appear to be insolvent or enter insolvency proceedings;

● all or substantially all the value of the deposited securities has been distributed either in cash or in the form of securities;

● there are no deposited securities underlying the ADSs or the underlying deposited securities have become apparently worthless; or

● there has been a replacement of deposited securities.

If the deposit agreement will terminate, the depositary will notify ADS holders at least 90 days before the termination date. At any time after the termination date, the depositary may sell the deposited securities. After that, the depositary will hold the money it received on the sale, as well as any other cash it is holding under the deposit agreement, unsegregated and without liability for interest, for the pro rata benefit of the ADS holders that have not surrendered their ADSs. Normally, the depositary will sell as soon as practicable after the termination date.

After the termination date and before the depositary sells, ADS holders can still surrender their ADSs and receive delivery of deposited securities, except that the depositary may refuse to accept a surrender for the purpose of withdrawing deposited securities or reverse previously accepted surrenders of that kind that have not settled if it would interfere with the selling process. The depositary may refuse to accept a surrender for the purpose of withdrawing sale proceeds until all the deposited securities have been sold. The depositary will continue to collect distributions on deposited securities, but, after the termination date, the depositary is not required to register any transfer of the ADSs or distribute any dividends or other distributions on deposited securities to the ADS holders (until they surrender their ADSs) or give any notices or perform any other duties under the deposit agreement except as described in this paragraph.

**Books of Depositary**

The depositary will maintain ADS holder records. You may inspect such records during regular business hours but solely for the purpose of communicating with other holders in the interest of business matters relating to the Company, the ADSs and the deposit agreement.

These facilities may be closed at any time or from time to time when such action is deemed necessary or advisable by the depositary in connection with the performance of its duties under the deposit agreement or at our reasonable written request.

**Limitations on Obligations and Liability**

***Limits on Our Obligations and the Obligations of the Depositary; Limits on Liability to Holders of the ADSs***

The deposit agreement expressly limits our obligations and the obligations of the depositary. It also limits our liability and the liability of the depositary. We and the depositary:

● are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith, and the depositary will not be a fiduciary or have any fiduciary duty to holders of the ADSs;

● are not liable if we are or it is prevented or delayed by law or by events or circumstances beyond our or its ability to prevent or counteract with reasonable care or effort from performing our or its obligations under the deposit agreement;

● are not liable if we or it exercises discretion permitted under the deposit agreement;

● are not liable for the inability of any holder of the ADSs to benefit from any distribution on deposited securities that is not made available to holders of the ADSs under the terms of the deposit agreement, or for any special, consequential or punitive damages for any breach of the terms of the deposit agreement;

● have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on your behalf or on behalf of any other person;

● may rely upon any documents we believe or it believes in good faith to be genuine and to have been signed or presented by the proper person;

● are not liable for the acts or omissions of any securities depository, clearing agency or settlement system; and

● the depositary has no duty to make any determination or provide any information as to our tax status, or any liability for any tax consequences that may be incurred by ADS holders as a result of owning or holding the ADSs or be liable for the inability or failure of an ADS holder to obtain the benefit of a foreign tax credit, reduced rate of withholding or refund of amounts withheld in respect of tax or any other tax benefit.

In the deposit agreement, we and the depositary agree to indemnify each other under certain circumstances.

**Arbitration of Disputes**

Under the deposit agreement, any controversy, claim or cause of action brought by any party against us arising out of or relating to the Class A ordinary shares, the ADSs, the ADRs, or the breach hereof or thereof, if so elected by the claimant, shall be settled by arbitration in accordance with the International Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. The place of the arbitration shall be The City of New York, State of New York, United States of America. This provision applies to ADS holders who purchased the ADSs in this offering and secondary transactions, and applies to claims under the U.S. federal security laws. However, a claimant could also elect not to submit its claim to arbitration and instead bring its claim in any court having jurisdiction of it. The deposit agreement does not give us the right to require anyone to submit any claim to arbitration.

**Jury Trial Waiver**

The deposit agreement provides that each party to the deposit agreement (including each holder, beneficial owner and holder of interests in the ADRs) irrevocably waives, to the fullest extent permitted by applicable law, any right it may have to a trial by jury in any lawsuit or proceeding against us or the depositary arising out of or relating to our shares, the ADSs or the deposit agreement, including any claim under the U.S. federal securities laws. If we or the depositary opposed a jury trial demand based on the waiver, the court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable law.

You will not, by agreeing to the terms of the deposit agreement, be deemed to have waived our or the depositary's compliance with U.S. federal securities laws or the rules and regulations promulgated thereunder.

**Requirements for Depositary Actions**

Before the depositary will deliver or register a transfer of the ADSs, make a distribution on the ADSs, or permit withdrawal of shares, the depositary may require:

● payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third parties for the transfer of any shares or other deposited securities;

● satisfactory proof of the identity and genuineness of any signature or other information it deems necessary; and

● compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including presentation of transfer documents.

The depositary may refuse to deliver the ADSs or register transfers of the ADSs when the transfer books of the depositary or our transfer books are closed or at any time if the depositary or we think it advisable to do so.

**Your Right to Receive the Shares Underlying your ADSs**

ADS holders have the right to cancel their ADSs and withdraw the underlying shares at any time except:

● when temporary delays arise because: (i) the depositary has closed its transfer books or we have closed our transfer books; (ii) the transfer of shares is blocked to permit voting at a shareholders' meeting; or (iii) we are paying a dividend on our shares;

● when you owe money to pay fees, taxes and similar charges; or

● when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to the ADSs or to the withdrawal of shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the deposit agreement.

**Direct Registration System**

In the deposit agreement, all parties to the deposit agreement acknowledge that the Direct Registration System, also referred to as DRS, and Profile Modification System, also referred to as Profile, will apply to the ADSs. DRS is a system administered by DTC that facilitates interchange between registered holding of uncertificated ADSs and holding of security entitlements in the ADSs through DTC and a DTC participant. Profile is a feature of DRS that allows a DTC participant, claiming to act on behalf of a registered holder of uncertificated ADSs, to direct the depositary to register a transfer of those ADSs to DTC or its nominee and to deliver those ADSs to the DTC account of that DTC participant without receipt by the depositary of prior authorization from the ADS holder to register that transfer.

In connection with and in accordance with the arrangements and procedures relating to DRS/Profile, the parties to the deposit agreement understand that the depositary will not determine whether the DTC participant that is claiming to be acting on behalf of an ADS holder in requesting registration of transfer and delivery as described in the paragraph above has the actual authority to act on behalf of the ADS holder (notwithstanding any requirements under the Uniform Commercial Code). In the deposit agreement, the parties agree that the depositary's reliance on and compliance with instructions received by the depositary through the DRS/Profile system and in accordance with the deposit agreement will not constitute negligence or bad faith on the part of the depositary.

**Shareholder Communications; Inspection of Register of Holders of the ADSs**

The depositary will make available for your inspection at its office all communications that it receives from us as a holder of deposited securities that we make generally available to holders of deposited securities. The depositary will send you copies of those communications or otherwise make those communications available to you if we ask it to. You have a right to inspect the register of holders of the ADSs, but not for the purpose of contacting those holders about a matter unrelated to our business or the ADSs.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there has been no public market for our ordinary shares or the ADSs. While we intend to apply to list the ADSs on the Nasdaq Global Market, we cannot assure you that an active trading market for the ADSs will develop or be sustained after this offering. Future sales of substantial amounts of the ADSs in the public market following this offering or perception that such future sales may occur could adversely affect market price prevailing from time to time and could impair our ability through sale of our equity securities. We currently do not expect that an active trading market will develop for our ordinary shares not represented by the ADSs.

Upon completion of this offering of Public Offering ADSs, 3,335,000 ADSs will be outstanding, representing 13,340,000 Class A ordinary shares. An aggregate of 1,500,000 Shareholder ADSs will be eligible for immediate sale by the Selling Shareholder upon the completion of this offering of Public Offering ADSs. All of the Public Offering ADSs and Shareholder ADSs sold in this offering will be freely transferable by persons other than our "affiliates" (as that term is defined in Rule 144 under the Securities Act) without restriction or further registration under the Securities Act. Sales of substantial amounts of the ADSs in the public market could materially adversely affect prevailing market prices of the ADSs.

**Lock-up Agreements**

We have agreed not to, for a period of three months after the commencement of sales of the offering, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale, lend or otherwise dispose of, except in this offering, any of our ordinary shares, ADSs, or any securities that are convertible into or exchangeable for, or that represent the right to receive, our ordinary shares or ADSs or any such substantially similar securities (other than pursuant to employee share option plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of, the date such lock-up agreement was executed), without the prior written consent of the representatives of the underwriters.

Furthermore, each of our directors, executive officers and shareholders of our ordinary shares issued and outstanding immediately prior to the consummation of the filing has also entered into a similar lock-up agreement for a period of six months from the date of this prospectus, subject to certain exceptions and except pursuant to the Resale Prospectus, with respect to our ordinary shares and securities that are convertible into or exchangeable for, or that represent the right to receive, our ordinary shares or ADSs. These parties collectively own all of our outstanding ordinary shares, without giving effect to this offering.

These lock-up restrictions described above shall not apply to (a) transactions relating to lock-up securities acquired in open market transactions after the completion of the public offering; (b) transfers of lock-up securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of a family member; (c) transfers of lock-up securities to a charity or educational institution; or (d) if the lock-up party, directly or indirectly, controls a corporation, partnership, limited liability company or other business entity, any transfers of lock-up securities to any shareholder, partner or member of, or owner of similar equity interests in, the lock-up party, as the case may be; <u>provided</u> that in the case of any transfer pursuant to (b), (c) or (d) above, it shall be a condition to any such transfer that (i) the transferee/donee agrees to be bound by the terms of the lock-up agreement entered into by and between the Company or each of our directors, executive officers, and shareholders and the underwriters.

**Rule 144**

All of our ordinary shares that will be outstanding upon the completion of this offering, other than those sold in this offering, are "restricted securities" as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person (or persons whose shares are aggregated) who at the time of a sale is not, and has not been during the three months preceding the sale, an affiliate of ours and has beneficially owned our restricted securities for at least six months is entitled to sell the restricted securities without registration under the Securities Act, subject to the availability of current public information about us, and will be entitled to sell restricted securities beneficially owned for at least one year without restriction. Persons who are our affiliates (including persons beneficially owning 10% or more of our outstanding shares) and have beneficially owned our restricted securities for at least six months may sell within any three-month period a number of restricted securities that does not exceed the greater of the following:

● 1% of the number of ordinary shares of the same class then outstanding, in the form of ADSs or otherwise, which will equal approximately 1,383,406 Class A ordinary shares immediately after this offering; or

● the average weekly trading volume of the Class A ordinary shares in the form of ADSs or otherwise on Nasdaq during the four calendar weeks preceding the date on which notice of the sale on Form 144 is filed with the SEC.

Such sales are also subject to manner-of-sale provisions, notice requirements and the availability of current public information about us.

**Rule 701**

Beginning 90 days after the date of this prospectus, persons other than affiliates who purchased ordinary shares under a written compensatory plan or other written agreement executed prior to the completion of this offering may be entitled to sell such shares in the United States in reliance on Rule 701 under the Securities Act, or Rule 701. Rule 701 permits affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144.

Rule 701 further provides that non-affiliates may sell these shares in reliance on Rule 144 subject only to its manner-of-sale requirements. However, the Rule 701 shares would remain subject to any applicable lock-up arrangements and would only become eligible for sale when the lock-up period expires.

**Regulation S**

Regulation S provides generally that sales made in offshore transactions are not subject to the registration or prospectus-delivery requirements of the Securities Act.

**TAXATION**

*The following discussion of material PRC, Cayman Islands, and United States federal income tax consequences of an investment in the ADSs or ordinary shares is based upon laws and relevant interpretations thereof in effect as of the date of this prospectus, all of which are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in the ADSs or ordinary shares, such as the tax consequences under state, local, and other tax laws or under tax laws of jurisdictions other than the Cayman Islands, the PRC, and the United States. To the extent that the discussion relates to matters of Cayman Island tax law, it represents the opinion of Ogier, our Cayman Islands legal counsel; to the extent it relates to the PRC tax law, it is the opinion of Zhong Lun Law Firm, our PRC legal counsel.*

**Cayman Islands Taxation**

The Cayman Islands currently levy no taxes on individuals or corporations based upon profits, income, gains or appreciations and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to the Company levied by the Government of the Cayman Islands save certain stamp duties which may be applicable, from time to time, on certain instruments executed in or brought within the jurisdiction of the Cayman Islands. The Cayman Islands are a party to a double tax treaty entered into with the United Kingdom in 2010 but otherwise is not party to any double tax treaties.

Further, no stamp duty is payable in the Cayman Islands on transfers of shares of Cayman Islands companies except those which hold interests in land in the Cayman Islands.

Payments of dividends and capital in respect of the Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of the Shares, nor will gains derived from the disposal of the Shares be subject to Cayman Islands income or corporation tax.

**PRC Taxation**

Under the PRC EIT Law, which became effective on January 1, 2008, and amended on February 24, 2017, and December 29, 2018, respectively, an enterprise established outside the PRC with "de facto management bodies" within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the PRC EIT Law, a "de facto management body" is defined as a body that has material and overall management and control over the manufacturing and business operations, personnel and human resources, finances and properties of an enterprise.

In addition, the SAT Circular 82 issued by the State Administration of Taxation in April 2009 specifies that certain offshore incorporated enterprises controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or resident in the PRC: (a) senior management personnel and core management departments that are responsible for daily production, operation and management; (b) financial and human resources decisions are subject to determination or approval by persons or bodies in the PRC; (c) key properties, accounting books, company seal, minutes of board meetings and shareholders' meetings; and (d) half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the State Administration of Taxation issued the Announcement of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation), or SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82. SAT Bulletin 45 provides for procedures and administration details of determination on resident status and administration on post-determination matters. Our company is incorporated outside the PRC. As a holding company, its key assets are its ownership interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors and the resolutions of its shareholders) are maintained, outside the PRC. As such, we do not believe that our company meets all of the conditions above or is a PRC resident enterprise for PRC tax purposes. For the same reasons, we believe our other entities outside China are not PRC resident enterprises either. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and the interpretation of the term "de facto management body" is still evolving. There can be no assurance that the PRC government will ultimately take a view that is consistent with our position. If the PRC tax authorities determine that our Cayman Islands holding company is a PRC resident enterprise for PRC enterprise income tax purposes, a 10% withholding tax would be imposed on dividends we pay to our non-PRC enterprise shareholders (including the ADS holders) if such dividends are deemed to be sourced within the PRC. In addition, non-PRC resident enterprise shareholders (including the ADS holders) may be subject to PRC tax on gains realized on the sale or other disposition of ADSs or ordinary shares at a rate of 10%, if such income is treated as sourced from within the PRC. Furthermore, if we are deemed a PRC resident enterprise, dividends paid to our non-PRC individual shareholders (including the ADS holders) and any gain realized on the transfer of ADSs or ordinary shares by such shareholders may be subject to PRC tax at a rate of 20% (which, in the case of dividends, may be withheld at source by us) if such dividends or gains are deemed to be sourced within the PRC. These rates may be reduced by an applicable tax treaty, but it is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. See "Risk Factors — Risks Related to Doing Business in the PRC — If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders or ADS holders."

**United States Federal Income Tax Considerations**

The following discussion is a summary of certain material United States federal income tax consequences to a United States Holder (as defined below), under current law, of an investment in the ADSs or ordinary shares in the offering. This discussion is based on the federal income tax laws of the United States as of the date of this prospectus, including the United States Internal Revenue Code of 1986, as amended, or the Code, existing and proposed Treasury Regulations promulgated thereunder, judicial authority, published administrative positions of the United States Internal Revenue Service, or the IRS, and other applicable authorities, all as of the date of this prospectus. All of the foregoing authorities are subject to change, which change could apply retroactively and could significantly affect the tax consequences described below. We have not sought any ruling from the IRS with respect to the statements made and the conclusions reached in the following discussion and there can be no assurance that the IRS or a court will not take a position contrary to any position that we take. This discussion, moreover, does not address the United States federal estate, gift, Medicare, and alternative minimum tax considerations, or any state, local and non-United States tax considerations, relating to the ownership or disposition of the ADSs or ordinary shares.

Except as specifically described below, this discussion does not address any of the tax consequences of holding the ADSs or ordinary shares through a bank, financial institution or other entity, or a branch thereof, located, organized or resident outside the United States, including withholding taxes or reporting obligations applicable to accounts maintained with non-United States financial institutions (through which a United States Holder may hold the ADSs or ordinary shares) and does not describe any tax considerations arising in respect of the Foreign Account Tax Compliance Act, or FATCA. This discussion applies only to a United States Holder (as defined below) that holds ADSs or ordinary shares as capital assets for United States federal income tax purposes (generally, property held for investment). The discussion neither addresses the tax consequences to any particular investor nor describes all of the tax consequences applicable to persons in special tax situations, such as:

● banks and certain other financial institutions;

● insurance companies;

● regulated investment companies;

● real estate investment trusts;

● brokers or dealers in stocks and securities, or currencies;

● persons who use or are required to use a mark-to-market method of accounting;

● certain former citizens or residents of the United States subject to Section 877 of the Code;

● entities subject to the United States anti-inversion rules;

● tax-exempt organizations and entities;

● persons subject to the alternative minimum tax provisions of the Code;

● persons whose functional currency is other than the United States dollar;

● persons holding ADSs or ordinary shares as part of a straddle, hedging, conversion or integrated transaction;

● persons that actually or constructively own ADSs or ordinary shares representing 10% or more of our total voting power or value;

● persons who acquired ADSs or ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation;

● partnerships or other pass-through entities, or persons holding ADSs or ordinary shares through such entities;

● persons required to accelerate the recognition of any item of gross income with respect to the ADSs or ordinary shares as a result of such income being recognized on an applicable financial statement; or

● persons that held, directly, indirectly or by attribution, ADSs or ordinary shares or other ownership interests in us prior to this offering.

If a partnership (including an entity or arrangement treated as a partnership for United States federal income tax purposes) holds the ADSs or ordinary shares, the tax treatment of a partner in the partnership generally will depend upon the status of the partner and the activities of the partnership. A partnership or partner in a partnership holding ADSs or ordinary shares should consult its own tax advisors regarding the tax consequences of investing in and holding the ADSs or ordinary shares.

**THE FOLLOWING DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT A SUBSTITUTE FOR CAREFUL TAX PLANNING AND ADVICE. HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE UNITED STATES FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS, AS WELL AS ANY TAX CONSEQUENCES ARISING UNDER THE UNITED STATES FEDERAL ESTATE OR GIFT TAX LAWS OR THE LAWS OF ANY STATE, LOCAL OR NON-UNITED STATES TAXING JURISDICTION OR UNDER ANY APPLICABLE TAX TREATY.**

For purposes of the discussion below, a "United States Holder" is a beneficial owner of the ADSs or ordinary shares that is, for United States federal income tax purposes:

● an individual who is a citizen or resident of the United States;

● a corporation (or other entity treated as a corporation for United States federal income tax purposes) created or organized in or under the laws of the United States, any state thereof or the District of Columbia;

● an estate, the income of which is subject to United States federal income taxation regardless of its source; or

● a trust, if (i) a court within the United States is able to exercise primary jurisdiction over its administration and one or more United States persons (as defined in the Code) have the authority to control all of its substantial decisions or (ii) in the case of a trust that was treated as a domestic trust under the law in effect before 1997, a valid election is in place under applicable Treasury Regulations to treat such trust as a domestic trust.

The discussion below assumes that the representations contained in the deposit agreement and any related agreement are true and that the obligations in such agreements will be complied with in accordance with their terms.

***ADSs***

For United States federal income tax purposes, it is generally expected that a United States Holder of ADSs will be treated as the beneficial owner of the underlying shares represented by the ADSs. The remainder of this discussion assumes that a United States Holder of the ADSs will be treated in this manner. Accordingly, deposits or withdrawals of ordinary shares for ADSs will generally not be subject to United States federal income tax.

***Dividends and Other Distributions on the ADSs or Ordinary Shares***

Subject to the passive foreign investment company rules discussed below, the gross amount of any distribution that we make to you with respect to the ADSs or ordinary shares (including any amounts withheld to reflect PRC withholding taxes) will be taxable as a dividend, to the extent paid out of the current or accumulated earnings of us and profits, as determined under United States federal income tax principles. Such income (including any withheld taxes) will be includable in your gross income on the day actually or constructively received by you, if you own the ordinary shares, or by the depositary, if you own ADSs.

Because we do not intend to determine the earnings and profits of us on the basis of United States federal income tax principles, any distribution paid generally will be reported as a "dividend" for United States federal income tax purposes. Such dividends will not be eligible for the dividends-received deduction allowed to qualifying corporations under the Code.

Dividends received by a non-corporate United States Holder may qualify for the lower rates of tax applicable to "qualified dividend income," if the dividends are paid by a "qualified foreign corporation" and other conditions discussed below are met with respect to certain eligible holders. A non-United States corporation is treated as a qualified foreign corporation (i) with respect to dividends paid by that corporation on shares (or American depositary shares backed by such shares) that are readily tradable on an established securities market in the United States or (ii) if such non-United States corporation is eligible for the benefits of a qualifying income tax treaty with the United States that includes an exchange of information program. However, a non-United States corporation will not be treated as a qualified foreign corporation if it is a passive foreign investment company in the taxable year in which the dividend is paid or the preceding taxable year.

Under a published IRS Notice, common or ordinary shares (such as our ordinary shares), or American depositary shares (such as the ADSs) representing such shares, are considered to be readily tradable on an established securities market in the United States if they are listed on the Nasdaq, as the ADSs (but not our ordinary shares) are expected to be. Based on existing guidance, it is unclear whether the ordinary shares will be considered to be readily tradable on an established securities market in the United States, because only the ADSs, and not the underlying ordinary shares, are listed on a securities market in the United States. We believe, but we cannot assure you, that dividends we pay on the ordinary shares that are represented by ADSs, but not on the ordinary shares that are not so represented, will be eligible for the reduced rates of taxation, subject to applicable limitations (including ineligibility for reduced rates as a result of our being a PFIC for the taxable year in which the dividend is paid or the preceding taxable year). In addition, if we are treated as a PRC resident enterprise under the PRC tax law (see "Taxation — PRC Taxation"), then we could be eligible for the benefits of the income tax treaty between the United States and the PRC (the "Treaty"). If we were eligible for such benefits, then dividends that we pay on our ordinary shares, regardless of whether such shares are represented by out ADSs, would be eligible for the reduced rates of taxation, subject to applicable limitations (including ineligibility for reduced rates as a result of our being a PFIC for the taxable year in which the dividend is paid or the preceding taxable year).

Even if dividends would be treated as paid by a qualified foreign corporation, a non-corporate United States Holder will not be eligible for reduced rates of taxation if it does not hold the ADSs or ordinary shares for more than 60 days during the 121-day period beginning 60 days before the ex-dividend date (disregarding certain periods of ownership while the United States Holder's risk of loss is diminished) or if the United States Holder elects to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code. In addition, the rate reduction will not apply to dividends of a qualified foreign corporation if the non-corporate United States Holder receiving the dividend is obligated to make related payments with respect to positions in substantially similar or related property.

You should consult your own tax advisors regarding the availability of the lower tax rates applicable to qualified dividend income for any dividends that we pay with respect to the ADSs or ordinary shares, as well as the effect of any change in applicable law after the date of this prospectus.

Any PRC withholding taxes imposed on dividends paid to you with respect to the ADSs or ordinary shares (at a rate not exceeding the applicable rate provided in the Treaty if the Treaty applies and if you are eligible for Treaty benefits) generally will be treated as foreign taxes eligible for credit against your United States federal income tax liability, subject to the various limitations and disallowance rules that apply to foreign tax credits generally. For purposes of calculating the foreign tax credit, dividends paid to you with respect to the ADSs or ordinary shares will be treated as income from sources outside the United States and generally will constitute passive category income. The rules relating to the determination of the foreign tax credit are complex and recently issued Treasury Regulations have introduced additional requirements and limitations to the foreign tax credit rules. You should consult your tax advisors regarding the availability of a foreign tax credit in your particular circumstances.

***Disposition of the ADSs or Ordinary Shares***

You will recognize gain or loss on a sale or exchange of the ADSs or ordinary shares in an amount equal to the difference between the amount realized on the sale or exchange and your tax basis in the ADSs or ordinary shares. Subject to the discussion under "— Passive Foreign Investment Company" below, such gain or loss generally will be capital gain or loss. Capital gains of a non-corporate United States Holder, including an individual, that has held the shares for more than one year may be eligible for reduced tax rates. The deductibility of capital losses is subject to limitations.

Any gain or loss that you recognize on a disposition of the ADSs or ordinary shares generally will be treated as United States-source income or loss for foreign tax credit limitation purposes. However, if we are treated as a PRC resident enterprise for PRC tax purposes and PRC tax is imposed on gain from the disposition of the ADSs or ordinary shares (see "Taxation — PRC Taxation"), then if the Treaty applies and a United States Holder that is eligible for the benefits of the Treaty, such United States Holder may elect to treat the gain as PRC-source income for foreign tax credit purposes. If such an election is made, the gain so treated will be treated as a separate class or "basket" of income for foreign tax credit purposes. You should consult your tax advisors regarding the proper treatment of gain or loss, as well as the availability of a foreign tax credit, in your particular circumstances.

***Passive Foreign Investment Company***

We will be treated as a passive foreign investment company, or PFIC, for United States federal income tax purposes for any taxable year if, applying applicable look-through rules, either:

● at least 75% of the Company's gross income for such year is passive income; or

● at least 50% of the value of the Company's assets (determined based on a quarterly average) during such year is attributable to assets that produce or are held for the production of passive income.

Although the law in this regard is not entirely clear, we treat the VIE (including their subsidiaries) as being owned by us for U.S. federal income tax purposes because we control their management decisions and are entitled to substantially all of the economic benefits associated with them. As a result, we consolidated their results of operations in our consolidated U.S. GAAP financial statements. If it were determined, however, that we are not the owner of the VIE or its subsidiaries for U.S. federal income tax purposes, we may be treated as a PFIC for the current taxable year and any subsequent taxable year.

Assuming that we are the owner of the consolidated VIE (including their subsidiaries) for U.S. federal income tax purposes, and based on the current and anticipated composition and classification of our income and assets (taking into account the expected cash proceeds from, and our anticipated market capitalization following this offering) and the nature of our business operations, we do not expect to be a PFIC for the current taxable year ending December 31, 2023, although there can be no assurance in this regard. The determination of PFIC status for a taxable year is based on an annual determination that cannot be made until the close of a taxable year, involves extensive factual investigation, including ascertaining the fair market value of all of our assets on a quarterly basis and the character of each item of income that we earn, and is subject to uncertainty in several respects. Under circumstances where we determine not to deploy significant amounts of cash for active purposes or if it were determined that we do not own the stock of the VIE for U.S. federal income tax purposes, our risk of becoming a PFIC may substantially increase. We cannot assure you that we will not be treated as a PFIC for any taxable year, or that the IRS will not take a position contrary to any position that we take regarding the determination of our PFIC status.

Changes in the value of our assets or the nature or composition of our income or assets may cause us to be or become a PFIC for one or more taxable years. The determination of whether we will be a PFIC for any taxable year will also depend in part upon the value of our goodwill and other unbooked intangibles not reflected on our balance sheet (which may depend upon the market price of the ADSs from time to time, which may fluctuate significantly) and also may be affected by how, and how quickly, we spend our liquid assets and the cash we generate from our operations and raise in this offering. In estimating the value of our goodwill and other unbooked intangibles, we have taken into account our anticipated market capitalization following the listing of the ADSs on the Nasdaq. Among other matters, if our market capitalization is less than anticipated or subsequently declines, we may be or become a PFIC for the current or one or more future taxable years because our liquid assets and cash (which are for this purpose considered assets that produce passive income) may then represent a greater percentage of the value of our overall assets. Further, while we believe our classification methodology and valuation approach are reasonable, it is possible that the IRS may challenge our classification or valuation of our assets (including our goodwill and other unbooked intangibles), which may make it more likely that we are a PFIC for the current or one or more future taxable years.

If we are a PFIC for any taxable year during which you hold ADSs or ordinary shares, we generally will continue to be treated as a PFIC with respect to you for all succeeding years during which you hold ADSs or ordinary shares, unless we were to cease to be a PFIC and you make a "deemed sale" election with respect to the ADSs or ordinary shares. If such election is made, you will be deemed to have sold the ADSs or ordinary shares you hold at their fair market value and any gain from such deemed sale would be subject to the rules described in the following two paragraphs. After the deemed sale election, so long as we do not become a PFIC in a subsequent taxable year, the ADSs or ordinary shares with respect to which such election was made will not be treated as shares in a PFIC and, as a result, you will not be subject to the rules described below with respect to any "excess distribution" you receive from us or any gain from an actual sale or other taxable disposition of the ADSs or ordinary shares. You should consult your tax advisors as to the possibility and consequences of making a deemed sale election if we are and then cease to be a PFIC and such an election becomes available to you.

If we are a PFIC for any taxable year during which you hold ADSs or ordinary shares, then, unless you make a "mark-to-market" election (as discussed below), you generally will be subject to special and adverse tax rules with respect to any "excess distribution" that you receive from us and any gain that you recognize from a sale or other disposition, including a pledge, of ADSs or ordinary shares. For this purpose, distributions that you receive in a taxable year that are greater than 125% of the average annual distributions that you received during the shorter of the three preceding taxable years or your holding period for the ADSs or ordinary shares will be treated as an excess distribution. Under these rules:

● the excess distribution or recognized gain will be allocated ratably over your holding period for the ADSs or ordinary shares;

● the amount of the excess distribution or recognized gain allocated to the taxable year of distribution or gain, and to any taxable years in your holding period prior to the first taxable year in which we were treated as a PFIC, will be treated as ordinary income; and

● the amount of the excess distribution or recognized gain allocated to each other taxable year will be subject to the highest tax rate in effect for individuals or corporations, as applicable, for each such year and the resulting tax will be subject to the interest charge generally applicable to underpayments of tax.

The tax liability for amounts allocated to years prior to the year of disposition or excess distribution cannot be offset by any net operating losses for such years, and gains (but not losses) from a sale or other disposition of the ADSs or ordinary shares cannot be treated as capital, even if you hold the ADSs or ordinary shares as capital assets.

If we are a PFIC for any taxable year during which you hold ADSs or ordinary shares and any of our non-United States subsidiaries that are corporations for United States federal income tax purposes (or other corporations in which we directly or indirectly own equity interests (including our consolidated VIE or any subsidiaries of the consolidated VIE)) is also a PFIC, you would be treated as owning a proportionate amount (by value) of the shares of each such non-United States corporation classified as a PFIC (each such corporation, a lower tier PFIC) for purposes of the application of these rules. You should consult your own tax advisor regarding the application of the PFIC rules to any of our lower tier PFICs.

If we are a PFIC for any taxable year during which you hold ADSs or ordinary shares, then in lieu of being subject to the tax and interest-charge rules discussed above, you may make an election to include gain on the ADSs or ordinary shares as ordinary income under a mark-to-market method, provided that the ADSs or ordinary shares constitute "marketable stock." Marketable stock is stock that is regularly traded on a qualified exchange or other market, as defined in applicable Treasury regulations. The ADSs, but not our ordinary shares, are expected to be listed on the Nasdaq, which is a qualified exchange or other market for these purposes. Consequently, if the ADSs are and remain listed on the Nasdaq and are regularly traded, and you are a holder of ADSs, we expect that the mark-to-market election would be available to you for each taxable year for which we are a PFIC, but no assurances are given in this regard.

If a mark-to-market election is available to you and you make the election, you will include as ordinary income in each taxable year the excess of the fair market value of your ADSs at the end of such taxable year over your adjusted tax basis in the ADSs. You will be entitled to deduct as an ordinary loss in each taxable year the excess of your adjusted tax basis in such ADSs over their fair market value at the end of the year, but only to the extent of the net amount previously included in income as a result of the mark-to-market election. If you make a mark-to-market election and we cease to be a PFIC, you will not take into account the gain or loss described above during any period in which we are not a PFIC. If you make a mark-to-market election, any gain you recognize upon the sale or other disposition of the ADSs in a year in which we are a PFIC will be treated as ordinary income and any loss will be treated as ordinary loss to the extent of the net amount of previously included income as a result of the mark-to-market election. Your adjusted tax basis in the ADSs will be increased by the amount of any income inclusion and decreased by the amount of any deductions under the mark-to-market rules. If you make a mark-to-market election, it will be effective for the taxable year for which the election is made and all subsequent taxable years in which we are a PFIC, unless the ADSs are no longer regularly traded on a qualified exchange or other market, or the IRS consents to the revocation of the election.

Because a mark-to-market election cannot be made for any lower-tier PFICs that we may own, if we were a PFIC for any taxable year, a United States Holder that makes a mark-to-market election with respect to the ADSs may continue to be subject to the tax and interest charges under the general PFIC rules with respect to such United States Holder's indirect interest in any investments held by us that are treated as an equity interest in a PFIC for United States federal income tax purposes.

In certain circumstances, a shareholder in a PFIC may avoid the adverse tax and interest-charge regime described above by making a "qualified electing fund" election to include in income its share of the corporation's income on a current basis. As previously noted, if we were a PFIC, you would be able to make a qualified electing fund election with respect to the ADSs or ordinary shares only if we agreed to furnish you annually with a PFIC annual information statement as specified in the applicable Treasury regulations. We currently do not intend to prepare or provide the information that would enable you to make a qualified electing fund election if we were a PFIC and, as a result, you will not be able to make such an election.

A United States Holder that holds the ADSs or ordinary shares in any year in which we are a PFIC will be required to file an annual report containing such information as the United States Treasury Department may require.

You should consult your own tax advisor regarding the application of the PFIC rules to your ownership and disposition of the ADSs or ordinary shares, the associated reporting requirements and the availability, application and consequences of the elections discussed above.

***Information Reporting and Backup Withholding***

Information reporting to the IRS and backup withholding generally will apply to dividends in respect of the ADSs or ordinary shares, and the proceeds from the sale or exchange of the ADSs or ordinary shares, that are paid to you within the United States (and in certain cases, outside the United States), unless you furnish a correct taxpayer identification number and make any other required certification, generally on IRS Form W-9 or you otherwise establish an exemption from information reporting and backup withholding. Backup withholding is not an additional tax. Amounts withheld as backup withholding generally are allowed as a credit against your United States federal income tax liability, and you may be entitled to obtain a refund of any excess amounts withheld under the backup withholding rules if you file an appropriate claim for refund with the IRS and furnish any required information in a timely manner.

United States Holders should consult their tax advisors regarding the application of the information reporting and backup withholding rules.

***Information with Respect to Foreign Financial Assets***

United States Holders who are individuals (and certain entities closely held by individuals) generally will be required to report our name, address and such information relating to an interest in the ADSs or ordinary shares as is necessary to identify the class or issue of which the ADSs or ordinary shares are a part. These requirements are subject to exceptions, including an exception for ADSs or ordinary shares held in accounts maintained by certain financial institutions and an exception applicable if the aggregate value of all "specified foreign financial assets" (as defined in the Code) does not exceed $50,000.

United States Holders should consult their tax advisors regarding the application of these information reporting rules.

**UNDERWRITING**

We have entered into an underwriting agreement with Ninth Eternity Securities LLC ("NES") as the representative of the underwriters (the "Representative"), with respect to the ADSs being offered. Any offers or sales in the United States will be conducted by broker-dealers registered with the SEC. Subject to the terms and conditions of the underwriting agreement, the underwriters named below have severally agreed to purchase from us on a firm commitment basis the following respective number of ADSs at the public price less the underwriting discounts set forth on the cover page of this prospectus:

---

| | |
|:---|:---|
| **Underwriters** | **Number of<br> ADSs** |
| Ninth Eternity Securities LLC | [ ] |
| **Total** | **[ ]** |

---

The underwriters are offering the ADSs subject to their acceptance of the ADSs from us and subject to prior sale. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the ADSs included in this offering are subject to approval of legal matters by counsel and to other conditions. The underwriters are obligated to take and pay for all of the ADSs offered by this offering (other than those covered by the over-allotment option described below) if any of the ADSs are taken by them.

ADSs sold by the underwriters to the public will initially be offered at the initial public offering price set forth on the cover page of this prospectus. Any ADSs sold by the underwriters to securities dealers may be sold at a discount from the initial public offering price not to exceed $[ ] per ADS. If all of the ADSs are not sold at the initial offering price, the underwriters may change the offering price and the other selling terms. The Representative has advised us that the underwriters do not intend to make sales to discretionary accounts.

If the underwriters sell more ADSs than the total number set forth in the table above, we have granted to the underwriters an option, exercisable for 45 days from the closing of this offering, to purchase up to 500,250 additional ADSs at the public offering price less the underwriting discount, based on the assumed offering price of $12.00 per ADS, the midpoint of the price range set forth on the cover page of this prospectus. The underwriters may exercise this option solely for the purpose of covering over-allotments, if any, in connection with this offering. To the extent the option is exercised, each underwriter must purchase a number of additional ADSs approximately proportionate to that underwriter's initial purchase commitment. Any ADSs issued or sold under the option will be issued and sold on the same terms and conditions as the other ADSs that are the subject of this offering.

In connection with the offering, the underwriters may purchase and sell ADSs in the open market. Purchases and sales in the open market may include short sales, purchases to cover short positions, which may include purchases pursuant to the over-allotment option, and stabilizing purchases.

Purchases to cover short positions and stabilizing purchases, as well as other purchases by the underwriters for their own accounts, may have the effect of preventing or retarding a decline in the market price of the ADSs. They may also cause the price of the ADSs to be higher than the price that would otherwise exist in the open market in the absence of these transactions. The underwriters may conduct these transactions in the over-the-counter market or otherwise. If the underwriters commence any of these transactions, they may discontinue them at any time.

**Discounts and Expenses**

The following table shows the underwriting discounts payable to the underwriters by us in connection with this offering (assuming both the exercise and non-exercise of the over-allotment option that we have granted to the underwriters):

---

| | | | |
|:---|:---|:---|:---|
|  | **Per ADS** | **Total Without<br> Exercise of<br> Over-Allotment<br> Option** | **Total With<br> Exercise of<br> Over-Allotment<br> Option** |
| Public offering price<sup>(1)</sup> | $12.00 | $40020000 | $46023000 |
| Underwriting discounts<sup>(2)(3)</sup> | $0.876 | $2921460 | $3359679 |

---

(1) Initial public offering
 price per share is assumed as $12.00, which is the midpoint of the range set forth on the cover page of the Public Offering Prospectus.

(2) Represents underwriting
 discounts equal to seven point three percent (7.3%) (or $0.876 per ADS).

(3) Does not include expenses,
 and fees and disbursements of the Representative and transfer agent of up to $250,000.

We have agreed to pay all fees, disbursements and expenses relating to the offering, including, but not limited to, (i) the costs of preparing, printing, mailing and delivering the registration statements, prospectuses and all amendments, supplements and exhibits thereto and as many preliminary and final prospectuses as the Representative may reasonably deem necessary; (ii) preparing and printing stock certificates; (iii) the costs of any due diligence meetings, net roadshow, i-Deal system; (iv) all filing fees, costs and expenses incurred in the registration of the ADSs to be sold in this offering with the SEC and the filing of the offering materials with FINRA; (v) all fees, expenses and disbursements relating to the registration or qualification of the shares under the "blue sky" securities laws of such states and other jurisdictions as the Representative may reasonably designate, if applicable; (vi) costs of conducting background checks for our senior management and board of directors; (vii) preparation of leather bound volumes and Lucite cube mementos in such quantities as the Representative may reasonably request; and (viii) all fees, and any expenses and fees incurred by the Representative's counsel, and the transfer agent and registrar fees subject to a maximum amount of $250,000 (the "Expense Cap"). We have provided an advance against out-of-pocket expenses to the Representative in the amount of $25,000 upon the execution of our engagement agreement with the Representative. An additional $25,000 will be paid to the Representative concurrently with the filing of the registration statement in connection with this offering.

We estimate that the total expenses of the offering payable by us, excluding the underwriting discounts and commissions, will be approximately $1,950,000, including the Expense Cap.

**Listing**

We intend to apply to have the ADSs listed on the Nasdaq Global Market under the symbol "CZTI". There is no assurance that such an application will be approved, and if our application is not approved, this offering will not be completed. This offering is contingent upon final approval of the listing of the ADSs on the Nasdaq Global Market.

**Underwriter Purchase Option**

We have agreed to sell to the Representative an underwriter purchase option ("UPO") to purchase up to a total of 166,750 ADSs (5% of the ADSs sold in this offering of Public Offering ADSs) for $100. The UPO will be exercisable at any time, and from time to time, in whole or in part, during the four and a half-year period commencing six months from the effective date of the registration statement, of which this prospectus is a part, which period shall not extend further than five years from the effective date of the offering in compliance with FINRA Rule 5110(f)(2)(G). The UPO is exercisable at a per ADS price equal to 110% of the public offering price per ADS in the offering of Public Offering ADSs. The UPO has been deemed compensation by FINRA and is therefore subject to a 180-day lock-up pursuant to Rule 5110(g)(1) of FINRA. The Representative (or permitted assignees under Rule 5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate the UPO or the securities underlying the UPO, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the UPO or the underlying securities for a period of 180 days from the date of this prospectus.

The exercise price and number of ADSs issuable upon exercise of the UPO may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or recapitalization, reorganization, merger or consolidation.

**Lock-Up Agreements**

We have agreed with the underwriters not to sell, transfer or otherwise dispose of any of our securities, or ADSs representing our securities, for a period ending three months after the commencement of sales of the offering, and each of our directors and officers and shareholders of our ordinary shares issued and outstanding immediately prior to the consummation of this offering have agreed or are otherwise contractually restricted for a period of six months from the date of this prospectus, except pursuant to the Resale Prospectus, without the prior written consent of the underwriters not to directly or indirectly:

● issue (in the case of us), offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of any of the ADSs or other capital stock or any securities convertible into or exercisable or exchangeable for the ADSs, ordinary share or other capital stock;

● in the case of us, file or cause the filing of any registration statement under the Securities Act with respect to any the ADSs, any shares of ordinary share or other capital stock or any securities convertible into or exercisable or exchangeable for ADSs, ordinary share or other capital stock, other than registration statements on Form S-8 filed with the SEC after the closing date of this offering; or

● enter into any swap or other agreement, arrangement, hedge or transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic consequences of ownership of the ADSs, ordinary share or other capital stock or any securities convertible into or exercisable or exchangeable for ADSs, ordinary share or other capital stock.

whether any transaction described in any of the foregoing bullet points is to be settled by delivery of our ordinary shares or other capital stock, other securities, in cash or otherwise, or publicly announce an intention to do any of the foregoing.

These lock-up restrictions described above shall not apply to (a) transactions relating to lock-up securities acquired in open market transactions after the completion of the public offering; (b) transfers of lock-up securities as a *bona fide* gift, by will or intestacy or to a family member or trust for the benefit of a family member; (c) transfers of lock-up securities to a charity or educational institution; or (d) if the lock-up party, directly or indirectly, controls a corporation, partnership, limited liability company or other business entity, any transfers of lock-up securities to any shareholder, partner or member of, or owner of similar equity interests in, the lock-up party, as the case may be; <u>provided</u> that in the case of any transfer pursuant to (b), (c) or (d) above, it shall be a condition to any such transfer that (i) the transferee/donee agrees to be bound by the terms of the lock-up agreement entered into by and between the Company or each of our directors, executive officers, and shareholders and the underwriters.

**Pricing of this Offering**

Prior to this offering, there has been no public market for the ADSs. The initial public offering price of the ADSs and the exercise price of the UPO will be determined through negotiations between us and the Representative. The factors to be considered in these negotiations will be prevailing market conditions, our financial information, market valuations of other companies that we and the Representative believe to be comparable to us, estimate of our business potential and earning prospects, the present state of our development and other factors deemed relevant. The initial public offering price of the ADSs in this offering of Public Offering ADSs does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of our Company.

Based on the above valuation factors and the number of ordinary shares outstanding, we set our per-ADS price between $11.00 and $13.00.

An active trading market for the ADSs may not develop. It is possible that after this offering the ADSs will not trade in the public market at or above the initial offering price.

**Other Relationships**

Certain of the underwriters and their affiliates may in the future provide various advisory, investment banking, commercial banking and other financial services for us and our affiliates for which they may in the future receive customary fees and commissions.

**Price Stabilization, Short Positions and Penalty Bids**

To facilitate this offering, the underwriters may engage in transactions that stabilize, maintain or otherwise affect the price of the ADSs during and after the offering of Public Offering ADSs. Specifically, the underwriters may create a short position in the ADSs for their own account by selling more ADSs than we have sold to the underwriters. The underwriters may close out any short position by purchasing ADSs in the open market.

In addition, the underwriters may stabilize or maintain the price of the ADSs by bidding for or purchasing ADSs in the open market and may impose penalty bids. If penalty bids are imposed, selling concessions allowed to broker-dealers participating in this offering are reclaimed if ADSs previously distributed in this offering are repurchased, whether in connection with stabilization transactions or otherwise. The effect of these transactions may be to stabilize or maintain the market price of the ADSs at a level above that which might otherwise prevail in the open market. The imposition of a penalty bid may also affect the price of the ADSs to the extent that it discourages resales of the ADSs. The magnitude or effect of any stabilization or other transactions is uncertain. These transactions may be effected on the Nasdaq Global Market or otherwise and, if commenced, may be discontinued at any time.

Neither we nor the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of the ADSs. In addition, neither we nor the underwriters make any representation that the underwriters will engage in these transactions or that any transaction, if commenced, will not be discontinued without notice.

**Passive Market Making**

In connection with this offering, the underwriters may engage in passive market making transactions in the ADSs on the Nasdaq Global Market in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the ADSs and extending through the completion of the distribution. A passive market maker must display its bid at a price not in excess of the highest independent bid of that security. However, if all independent bids are lowered below the passive market maker's bid, then that bid must then be lowered when specified purchase limits are exceeded.

**Affiliations**

Each underwriter and its respective affiliates are a full-service financial institution engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. The underwriters may in the future engage in investment banking and other commercial dealings in the ordinary course of business with us or our affiliates. The underwriters may in the future receive customary fees and commissions for these transactions. We have not engaged the underwriters to perform any services for us in the previous 180 days, nor do we have any agreement to engage the underwriters to perform any services for us in the future, subject to the right to act as an advisor as described above.

In the ordinary course of its various business activities, each underwriter and its respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for its own account and for the accounts of its customers, and such investment and securities activities may involve securities and/or instruments of the issuer. Each underwriter and its respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

**Electronic Offer, Sale and Distribution**

A prospectus in electronic format may be made available on the websites maintained by the underwriters or selling group members. The underwriters may agree to allocate a number of securities to selling group members for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members that will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors. In connection with the offering, the underwriters or securities dealers may distribute prospectuses by electronic means, such as e-mail.

**Selling Restrictions**

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**Notice to Investors**

**Notice to Prospective Investors in the European Economic Area**

In relation to each member state of the European Economic Area, an offer of ADSs described in this prospectus may not be made to the public in that member state unless the prospectus has been approved by the competent authority in such member state or, where appropriate, approved in another member state and notified to the competent authority in that member state, all in accordance with the Prospectus Regulation, except that an offer to the public in that member state of any ADSs may be made at any time under the following exemptions under the Prospectus Regulation:

● to any legal entity which is a qualified investor as defined in the Prospectus Regulation;

● to fewer than 150 natural or legal persons (other than qualified investors as defined in the Prospectus Regulation), as permitted under the Prospectus Directive, subject to obtaining the prior consent of the relevant Dealer or Dealers nominated by us for any such offer; or

● in any other circumstances falling within Article 1(4) of the Prospectus Regulation,

provided that no such offer of ADSs shall require us or any underwriter to publish a prospectus pursuant to Article 3 of the Prospectus Regulation or supplement a prospectus pursuant to Article 23 of the Prospectus Regulation.

For purposes of this provision, the expression an "offer of securities to the public" in any member state means the communication in any form and by any means of sufficient information on the terms of the offer and the ADSs to be offered so as to enable an investor to decide to purchase or subscribe for the ADSs and the expression "Prospectus Regulation" means Regulation (EU) 2017/1129.

The sellers of the ADSs have not authorized and do not authorize the making of any offer of ADSs through any financial intermediary on their behalf, other than offers made by the underwriters with a view to the final placement of the ADSs as contemplated in this prospectus. Accordingly, no purchaser of the ADSs, other than the underwriters, is authorized to make any further offer of the ADSs on behalf of the sellers or the underwriters.

**Notice to Prospective Investors in the United Kingdom**

This prospectus is only being distributed to, and is only directed at, persons in the United Kingdom that are qualified investors as defined in the Prospectus Regulation that are also (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, or Order, or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (each such person being referred to as a "relevant person"). This prospectus and its contents are confidential and should not be distributed, published, or reproduced (in whole or in part) or disclosed by recipients to any other persons in the United Kingdom. Any person in the United Kingdom that is not a relevant person should not act or rely on this document or any of its contents.

**Notice to Prospective Investors in France**

Neither this prospectus nor any other offering material relating to the ADSs described in this prospectus has been submitted to the clearance procedures of the Autorité des Marchés Financiers or of the competent authority of another member state of the European Economic Area and notified to the Autorité des Marchés Financiers. The ADSs have not been offered or sold and will not be offered or sold, directly or indirectly, to the public in France. Neither this prospectus nor any other offering material relating to the ADSs has been or will be:

● released, issued, distributed, or caused to be released, issued or distributed to the public in France; or

● used in connection with any offer for subscription or sale of the ADSs to the public in France.

Such offers, sales and distributions will be made in France only:

● to qualified investors (*investisseurs qualifiés*) and/or to a restricted circle of investors (*cercle restreint d'investisseurs*), in each case investing for their own account, all as defined in, and in accordance with articles L.411-2, D.411-1, D.411-2, D.734-1, D.744-1, D.754-1 and D.764-1 of the French Code *monétaire et financier*;

● to investment services providers authorized to engage in portfolio management on behalf of third parties; or

● in a transaction that, in accordance with article L.411-2-II-1° -or-2° -or 3° of the French Code *monétaire et financier* and article 211-2 of the General Regulations (*Règlement Général*) of the Autorité des Marchés Financiers, does not constitute a public offer (*appel public à l'épargne*).

ADSs may be resold directly or indirectly, only in compliance with articles L.411-1, L.411-2, L.412-1 and L.621-8 through L.621-8-3 of the French Code monétaire et financier.

**Notice to Prospective Investors in Switzerland**

This document, as well as any other offering or marketing material relating to the ADSs which are the subject of the offering contemplated by this prospectus, neither constitutes a prospectus pursuant to Article 652a or Article 1156 of the Swiss Code of Obligations nor a simplified prospectus as such term is understood pursuant to article 5 of the Swiss Federal Act on Collective Investment Schemes. Neither the ADSs nor the shares underlying the ADSs will be listed on the SIX Swiss Exchange and, therefore, the documents relating to the ADSs, including, but not limited to, this document, do not claim to comply with the disclosure standards of the listing rules of SIX Swiss Exchange and corresponding prospectus schemes annexed to the listing rules of the SIX Swiss Exchange.

ADSs are being offered in Switzerland by way of a private placement, i.e., to a small number of selected investors only, without any public offer and only to investors who do not purchase the ADSs with the intention to distribute them to the public. The investors will be individually approached from time to time. This document, as well as any other offering or marketing material relating to the ADSs, is confidential and it is exclusively for the use of the individually addressed investors in connection with the offer of the ADSs in Switzerland and it does not constitute an offer to any other person. This document may only be used by those investors to whom it has been handed out in connection with the offering described herein and may neither directly nor indirectly be distributed or made available to other persons without our express consent. It may not be used in connection with any other offer and shall in particular not be copied and/or distributed to the public in or from Switzerland.

**Notice to Prospective Investors in Australia**

This prospectus is not a formal disclosure document and has not been, nor will be, lodged with the Australian Securities and Investments Commission. It does not purport to contain all information that an investor or their professional advisers would expect to find in a prospectus or other disclosure document (as defined in the Corporations Act 2001 (Australia)) for the purposes of Part 6D.2 of the Corporations Act 2001 (Australia) or in a product disclosure statement for the purposes of Part 7.9 of the Corporations Act 2001 (Australia), in either case, in relation to the ADSs.

ADSs are not being offered in Australia to "retail clients" as defined in sections 761G and 761GA of the Corporations Act 2001 (Australia). This offering is being made in Australia solely to "wholesale clients" for the purposes of section 761G of the Corporations Act 2001 (Australia) and, as such, no prospectus, product disclosure statement or other disclosure document in relation to the securities has been, or will be, prepared.

This prospectus does not constitute an offer in Australia other than to wholesale clients. By submitting an application for the ADSs, you represent and warrant to us that you are a wholesale client for the purposes of section 761G of the Corporations Act 2001 (Australia). If any recipient of this prospectus is not a wholesale client, no offer of, or invitation to apply for, the ADSs shall be deemed to be made to such recipient and no applications for the ADSs will be accepted from such recipient. Any offer to a recipient in Australia, and any agreement arising from acceptance of such offer, is personal and may only be accepted by the recipient. In addition, by applying for the ADSs you undertake to us that, for a period of 12 months from the date of issue of the ADSs, you will not transfer any interest in the ADSs to any person in Australia other than to a wholesale client.

**Notice to Prospective Investors in Hong Kong**

The ADSs may not be offered or sold in Hong Kong by means of any document other than (i) in circumstances which do not constitute an offer to the public within the meaning of the Companies Ordinance (Cap. 32, Laws of Hong Kong), or (ii) to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder, or (iii) in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies Ordinance (Cap. 32, Laws of Hong Kong) and no advertisement, invitation or document relating to the ADSs may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to ADSs which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws of Hong Kong) and any rules made thereunder.

**Notice to Prospective Investors in Japan**

The ADSs offered in this prospectus have not been and will not be registered under the Financial Instruments and Exchange Law of Japan. The ADSs have not been offered or sold and will not be offered or sold, directly or indirectly, in Japan or to or for the account of any resident of Japan (including any corporation or other entity organized under the laws of Japan), except (i) pursuant to an exemption from the registration requirements of the Financial Instruments and Exchange Law and (ii) in compliance with any other applicable requirements of Japanese law.

**Notice to Prospective Investors in Singapore**

This prospectus has not been registered as a prospectus with the Monetary Authority of Singapore. Accordingly, this prospectus and any other document or material in connection with the offer or sale, or invitation for subscription or purchase, of the ADSs may not be circulated or distributed, nor may the ADSs be offered or sold, or be made the subject of an invitation for subscription or purchase, whether directly or indirectly, to persons in Singapore other than (i) to an institutional investor under Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the "SFA"), (ii) to a relevant person pursuant to Section 275(1), or any person pursuant to Section 275(1A), and in accordance with the conditions specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the conditions of, any other applicable provision of the SFA, in each case subject to compliance with conditions set forth in the SFA.

Where the ADSs are subscribed or purchased under Section 275 of the SFA by a relevant person which is:

● a corporation (which is not an accredited investor (as defined in Section 4A of the SFA)) the sole business of which is to hold investments and the entire share capital of which is owned by one or more individuals, each of whom is an accredited investor; or

● a trust (where the trustee is not an accredited investor) whose sole purpose is to hold investments and each beneficiary of the trust is an individual who is an accredited investor,

shares, debentures and units of shares and debentures of that corporation or the beneficiaries' rights and interest (howsoever described) in that trust shall not be transferred within six months after that corporation or that trust has acquired the ADSs pursuant to an offer made under Section 275 of the SFA except:

● to an institutional investor (for corporations, under Section 274 of the SFA) or to a relevant person defined in Section 275(2) of the SFA, or to any person pursuant to an offer that is made on terms that such shares, debentures and units of shares and debentures of that corporation or such rights and interest in that trust are acquired at a consideration of not less than $200,000 (or its equivalent in a foreign currency) for each transaction, whether such amount is to be paid for in cash or by exchange of securities or other assets, and further for corporations, in accordance with the conditions specified in Section 275 of the SFA;

● where no consideration is or will be given for the transfer; or

● where the transfer is by operation of law.

**Notice to Prospective Investors in Canada**

The ADSs may be sold only to purchasers purchasing, or deemed to be purchasing, as principal that are accredited investors, as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario), and are permitted clients, as defined in National Instrument 31-103 Registration Requirements, Exemptions and Ongoing Registrant Obligations. Any resale of the ADSs must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable securities laws.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

Pursuant to section 3A.3 (or, in the case of securities issued or guaranteed by the government of a non-Canadian jurisdiction, section 3A.4) of National Instrument 33-105 Underwriting Conflicts (NI 33-105), the underwriters are not required to comply with the disclosure requirements of NI 33-105 regarding underwriter conflicts of interest in connection with this offering.

**Notice to Prospective Investors in the Cayman Islands**

This prospectus is an offer to sell only the ADSs offered hereby, but only under circumstances and in jurisdictions where it is lawful to do so. We are not making an offer to sell these securities in any jurisdiction where the offer or sale is not permitted or where the person making the offer or sale is not qualified to do so or to any person to whom it is not permitted to make such offer or sale. For the avoidance of doubt, no offer or invitation to subscribe for ADSs is made to the public in the Cayman Islands.

**Notice to Prospective Investors in the PRC**

This prospectus has not been and will not be circulated or distributed in the PRC, and the ADSs may not be offered or sold, and will not be offered or sold to any person for re-offering or resale, directly or indirectly, to any residents of the PRC except pursuant to applicable laws and regulations of the PRC. For the purposes of this paragraph, the PRC does not include Taiwan, Hong Kong or Macau.

**Notice to Prospective Investors in Taiwan**

The ADSs have not been and will not be registered or filed with, or approved by, the Financial Supervisory Commission of Taiwan pursuant to relevant securities laws and regulations and may not be offered or sold in Taiwan through a public offering or in circumstances which constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or relevant laws and regulations that require a registration, filing or approval of the Financial Supervisory Commission of Taiwan. No person or entity in Taiwan has been authorized to offer or sell the ADSs in Taiwan.

**Notice to Prospective Investors in Qatar**

In the State of Qatar, the offer contained herein is made on an exclusive basis to the specifically intended recipient thereof, upon that person's request and initiative, for personal use only and shall in no way be construed as a general offer for the sale of securities to the public or an attempt to do business as a bank, an investment company or otherwise in the State of Qatar. This prospectus and the underlying securities have not been approved or licensed by the Qatar Central Bank or the Qatar Financial Center Regulatory Authority or any other regulator in the State of Qatar. The information contained in this prospectus shall only be shared with any third parties in Qatar on a need-to-know basis for the purpose of evaluating the contained offer. Any distribution of this prospectus by the recipient to third parties in Qatar beyond the terms hereof is not permitted and shall be at the liability of such recipient.

**Notice to Prospective Investors in Kuwait**

Unless all necessary approvals from the Kuwait Ministry of Commerce and Industry required by Law No. 31/1990 "Regulating the Negotiation of Securities and Establishment of Investment Funds," its Executive Regulations and the various Ministerial Orders issued pursuant thereto or in connection therewith, have been given in relation to the marketing and sale of the ADSs, these may not be marketed, offered for sale, nor sold in the State of Kuwait. Neither this prospectus (including any related document), nor any of the information contained therein is intended to lead to the conclusion of any contract of whatsoever nature within Kuwait. Investors in Kuwait who approach us or any of the underwriters to obtain copies of this prospectus are required by us and the underwriters to keep such prospectus confidential and not to make copies thereof nor distribute the same to any other person in Kuwait and are also required to observe the restrictions provided for in all jurisdictions with respect to offering, marketing and the sale of the ADSs.

**Notice to Prospective Investors in the United Arab Emirates**

The ADSs have not been offered or sold, and will not be offered or sold, directly or indirectly, in the United Arab Emirates, except: (1) in compliance with all applicable laws and regulations of the United Arab Emirates; and (2) through persons or corporate entities authorized and licensed to provide investment advice and/or engage in brokerage activity and/or trade in respect of foreign securities in the United Arab Emirates. The information contained in this prospectus does not constitute a public offer of securities in the United Arab Emirates in accordance with the Commercial Companies Law (Federal Law No. 8 of 1984 (as amended)) or otherwise and is not intended to be a public offer and is addressed only to persons who are sophisticated investors.

**Notice to Investors in the Dubai International Financial Center**

This document relates to an Exempt Offer, as defined in the Offered Securities Rules module of the DFSA Rulebook (the "OSR"), in accordance with the Offered Securities Rules of the Dubai Financial Services Authority. This document is intended for distribution only to Persons, as defined in the OSR, of a type specified in those rules. It must not be delivered to, or relied on by, any other Person. The Dubai Financial Services Authority has no responsibility for reviewing or verifying any documents in connection with Exempt Offers. The Dubai Financial Services Authority has not approved this document nor taken steps to verify the information set out in it and has no responsibility for it. The ADSs to which this document relates may be illiquid and/or subject to restrictions on their resale. Prospective purchasers of the ADSs offered should conduct their own due diligence on the ADSs. If you do not understand the contents of this document you should consult an authorized financial adviser.

**Notice to Prospective Investors in Saudi Arabia**

This prospectus may not be distributed in the Kingdom of Saudi Arabia except to such persons as are permitted under the Offers of Securities Regulations issued by the Capital Market Authority. The Capital Market Authority does not make any representation as to the accuracy or completeness of this prospectus, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this prospectus. Prospective purchasers of the securities offered hereby should conduct their own due diligence on the accuracy of the information relating to the securities. If you do not understand the contents of this prospectus you should consult an authorized financial adviser.

**EXPENSES RELATING TO THIS OFFERING**

Set forth below is an itemization of the total expenses, excluding underwriting discounts and non-accountable expense allowance, expected to be incurred in connection with the offer and sale of the ADSs. Except for the SEC registration fee, the Nasdaq listing fee and the Financial Industry Regulatory Authority Inc. filing fee, all amounts are estimates.

---

| | |
|:---|:---|
| SEC registration fee | $11528.43 |
| Financial Industry Regulatory Authority Inc. filing fee | $4830 |
| Nasdaq application and listing fee | $295000 |
| Printing and engraving expenses | $20000 |
| Transfer agent fee | $20000 |
| Legal fees and expenses | $1200000 |
| Accounting fees and expenses | $80000 |
| Miscellaneous | $68641.57 |
| **Total** | $**1700000** |

---

We will bear these expenses and the underwriting discounts incurred in connection with the offer and sale of ADSs by us.

**LEGAL MATTERS**

We are being represented by Rimon, P.C. with respect to certain legal matters as to United States federal securities and New York State law. Certain legal matters in connection with this offering have been passed upon for the underwriters by Loeb & Loeb LLP, New York, New York. The validity of the Class A ordinary shares offered in this offering will be passed upon for us by Ogier. Certain legal matters as to PRC law will be passed upon for us by Zhong Lun Law Firm. Rimon, P.C. may rely upon Ogier with respect to matters governed by Cayman Islands law and Zhong Lun Law Firm with respect to matters governed by PRC law.

**EXPERTS**

Our consolidated financial statements as of December 31, 2024 and 2025, and for each of the fiscal years then ended, have been included herein and in the registration statement in reliance upon the report of Marcum Asia CPAs LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. The registered business address of Marcum Asia CPAs LLP is Suite 830, 7 Penn Plaza New York, NY, 10001.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form F-1, including relevant exhibits and schedules under the Securities Act, covering the ADSs offered by this prospectus. You should refer to our registration statement and its exhibits and schedules if you would like to find out more about us and about the ADSs. This prospectus summarizes material provisions of contracts and other documents that we refer you to. Since the prospectus may not contain all the information that you may find important, you should review the full text of these documents.

Immediately upon the completion of this offering, we will be subject to periodic reporting and other informational requirements of the Exchange Act, as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. All information filed with the SEC can be obtained over the internet at the SEC's website at *www.sec.gov*. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

 **INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES**

---

| | |
|:---|:---|
|  | **Page** |
| **Consolidated Financial Statements as of and for the years ended December 31, 2024 and 2025** |  |
| [Report of Independent Registered Public Accounting Firm](#DA_001) (PCAOB ID: 5395) | F-1 |
| [Consolidated Balance Sheets as of December 31, 2024 and 2025](#DA_002) | F-2 |
| [Consolidated Statements of Operations and Comprehensive loss for the Years Ended December 31, 2024 and 2025](#DA_003) | F-3 |
| [Consolidated Statements of Changes in Shareholders' Deficit for the Years Ended December 31, 2024 and 2025](#DA_004) | F-4 |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2025](#DA_005) | F-5 |
| [Notes to Consolidated Financial Statements](#DA_006) | F-6 |

---

**Report of Independent Registered Public Accounting Firm**

To the Shareholders and Board of Directors of

Carbon Zero Technologies International Inc.

**Opinion on the Financial Statements**

We have audited the accompanying consolidated balance sheets of Carbon Zero Technologies International Inc. (the "Company") as of December 31, 2024 and 2025, the related consolidated statements of operations and comprehensive loss, changes in shareholders' deficit and cash flows for each of the years in the two-year period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Marcum Asia CPAs LLP

Marcum Asia CPAs LLP

We have served as the Company's auditor since 2022.

Guangzhou, China

May 26, 2026

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> CONSOLIDATED BALANCE SHEETS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **ASSETS** |  |  |  |
| **Current assets:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash and cash equivalent | 45982 | 13899 | 1987 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 200 | 33200 | 4748 |
| &nbsp;&nbsp;&nbsp; Notes receivable | 88715 | 113429 | 16220 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 755291 | 177193 | 25338 |
| &nbsp;&nbsp;&nbsp; Accounts receivable-related parties | 44635 | 35681 | 5102 |
| &nbsp;&nbsp;&nbsp; Inventories | 35031 | 7102 | 1015 |
| &nbsp;&nbsp;&nbsp; Advance to suppliers, net | 74361 | 32260 | 4613 |
| &nbsp;&nbsp;&nbsp; Advance to suppliers-related parties | 500 | 4503 | 644 |
| &nbsp;&nbsp;&nbsp; Due from related parties | 20500 | 11700 | 1673 |
| &nbsp;&nbsp;&nbsp; Other receivable and other assets-current | 93153 | 82116 | 11741 |
| **Total current assets** | **1158368** | **511083** | **73081** |
| &nbsp;&nbsp;&nbsp; Property and equipment, net | 44348 | 42132 | 6024 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 7445 | 7297 | 1044 |
| &nbsp;&nbsp;&nbsp; Long term accounts receivable-a related party |  | 3563 | 510 |
| &nbsp;&nbsp;&nbsp; Other receivable and other assets-non-current | 6008 | 3887 | 556 |
| &nbsp;&nbsp;&nbsp; Long term investment | 10028 | 8261 | 1181 |
| &nbsp;&nbsp;&nbsp; Right-of-use assets-operating lease | 8481 | 4407 | 630 |
| &nbsp;&nbsp;&nbsp; Deferred issuance costs | 9195 | 10698 | 1530 |
| &nbsp;&nbsp;&nbsp; Goodwill | 1216 | 1216 | 174 |
| **TOTAL ASSETS** | **1245089** | **592544** | **84730** |
| **LIABILITIES AND EQUITY** |  |  |  |
| **Current liabilities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Bank loans-current portion | 148651 | 188490 | 26953 |
| &nbsp;&nbsp;&nbsp; Notes payable |  | 33064 | 4728 |
| &nbsp;&nbsp;&nbsp; Accounts payable | 597618 | 135498 | 19376 |
| &nbsp;&nbsp;&nbsp; Accounts payable-related parties | 157287 | 24239 | 3466 |
| &nbsp;&nbsp;&nbsp; Advance from customers | 3122 | 1402 | 200 |
| &nbsp;&nbsp;&nbsp; Due to related parties | 40012 | 36541 | 5225 |
| &nbsp;&nbsp;&nbsp; Loan payable to third parties | 54686 | 35702 | 5105 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 20961 | 8539 | 1221 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 103948 | 45807 | 6550 |
| &nbsp;&nbsp;&nbsp; Lease liabilities-operating lease-current portion | 1529 | 1352 | 193 |
| **Total current liabilities** | **1127814** | **510634** | **73017** |
| **Non-current liabilities** |  |  |  |
| &nbsp;&nbsp;&nbsp; Bank loans-non-current portion | 1900 | 4500 | 643 |
| &nbsp;&nbsp;&nbsp; Loan payable to third parties-non-current | 5279 | 5416 | 774 |
| &nbsp;&nbsp;&nbsp; Long-term loan payable to related parties | 101141 | 82889 | 11853 |
| &nbsp;&nbsp;&nbsp; Lease liabilities-operating lease-non-current | 6981 | 2754 | 394 |
| **TOTAL LIABILITIES** | **1243115** | **606193** | **86681** |
| **COMMITMENTS AND CONTINGENCIES (Note 17)** |  |  |  |
| **EQUITY:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Class A ordinary shares ($0.00001 par value, 4,900,000,000 shares authorized, 125,000,610 shares issued and outstanding as of December 31, 2024 and December 31, 2025) | 8 | 8 | 1 |
| &nbsp;&nbsp;&nbsp; Class B ordinary shares ($0.00001 par value, 100,000,000 shares authorized, 34,000,000 shares issued and outstanding as of December 31, 2024 and December 31, 2025) | 2 | 2 |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 13601 | 13601 | 1945 |
| &nbsp;&nbsp;&nbsp; Statutory reserves | 7215 | 9214 | 1318 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (43760) | (59597) | (8522) |
| **Total shareholders' deficit** | **(22934)** | **(36772)** | **(5258)** |
| &nbsp;&nbsp;&nbsp; Non-controlling interest | 24908 | 23123 | 3307 |
| **TOTAL EQUITY** | **1974** | **(13649)** | **(1951)** |
| **TOTAL LIABILITIES AND EQUITY** | **1245089** | **592544** | **84730** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | | **2025** | **2025** |
|  | **2024**<br> **RMB** | **RMB** | **US$** |
| **Revenue** |  |  |  |
| &nbsp;&nbsp;&nbsp; Product revenues-third parties | 4340034 | 5565708 | 795886 |
| &nbsp;&nbsp;&nbsp; Product revenues-related parties | 134095 | 192820 | 27573 |
| &nbsp;&nbsp;&nbsp; Net service revenues-third parties | 9283 | 19380 | 2771 |
| &nbsp;&nbsp;&nbsp; Net service revenues-related parties | 226 | - | - |
| **Total revenue** | **4483638** | **5777908** | **826230** |
| **Operating expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Merchandise costs | 4402773 | 5716214 | 817408 |
| &nbsp;&nbsp;&nbsp; Fulfillment expenses | 54341 | 17801 | 2546 |
| &nbsp;&nbsp;&nbsp; Selling expenses | 3224 | 9963 | 1425 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 27081 | 28692 | 4103 |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 1806 | 1914 | 274 |
| &nbsp;&nbsp;&nbsp; Impairment of long-term investment | 5250 |  |  |
| &nbsp;&nbsp;&nbsp; Provision for credit loss | 4951 | 554 | 79 |
| **Total operating expenses** | **4499426** | **5775138** | **825835** |
| **(Loss) income from operations** | **(15788)** | **2770** | **395** |
| **Other expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest expenses | (7632) | (11007) | (1574) |
| &nbsp;&nbsp;&nbsp; Interest income | 787 | 424 | 61 |
| &nbsp;&nbsp;&nbsp; Share of losses in equity method investments | (2216) | (1767) | (253) |
| &nbsp;&nbsp;&nbsp; Gain from disposal of subsidiaries | 61 | 233 | 33 |
| &nbsp;&nbsp;&nbsp; Bargain purchase gain | 863 |  |  |
| &nbsp;&nbsp;&nbsp; Other income (expenses), net | 3410 | (230) | (30) |
| **Total other expenses, net** | (4727) | (12347) | (1763) |
| **Loss before income taxes** | **(20515)** | **(9577)** | **(1368)** |
| Provision for income taxes | 4239 | 6046 | 865 |
| **Net loss** | **(24754)** | **(15623)** | **(2233)** |
| &nbsp;&nbsp;&nbsp; Less: net loss attributable to non-controlling interests | (2423) | (1785) | (255) |
| **Net loss attributable to the Company's shareholders** | **(22331)** | **(13838)** | **(1978)** |
| **COMPREHENSIVE LOSS** | **(24754)** | **(15623)** | **(2233)** |
| Less: comprehensive loss attributable to non-controlling interests | (2423) | (1785) | (255) |
| **Comprehensive loss attributable to the Company** | **(22331)** | **(13838)** | **(1978)** |
| Loss per share |  |  |  |
| -Basic and diluted – Class A Ordinary shares | (0.14) | (0.09) | (0.01) |
| -Basic and diluted – Class B Ordinary shares | (0.14) | (0.09) | (0.01) |
| Weighted Average number of ordinary Shares Outstanding |  |  |  |
| -Basic and diluted – Class A Ordinary shares | 125000610 | 125000610 | 125000610 |
| -Basic and diluted – Class B Ordinary shares | 34000000 | 34000000 | 34000000 |
| Total Ordinary shares | 159000610 | 159000610 | 159000610 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**For the Years Ended December 31, 2024 and 2025**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Class A** <br> **Ordinary Shares**  | **Class A** <br> **Ordinary Shares**  | **Class B** <br> **Ordinary Shares**  | **Class B** <br> **Ordinary Shares**  | | | | | |
|  | **Number** | **RMB** | **Number** | **RMB** | **Additional<br> Paid in<br> Capital**<br> **RMB** | **Statutory reserves**<br> **RMB** | **Accumulated<br> Deficit**<br> **RMB** | **Non-<br> controlling<br> interest**<br> **RMB** | **Total** <br> **Equity** <br> **RMB** |
| **Balance as of December 31, 2023** | **125000610** | **8** | **34000000** | **2** | **13601** | **6036** | **(20250)** | **12369** | **11766** |
| Capital contribution made by shareholders |  |  |  |  |  |  |  | 200 | 200 |
| Net loss |  |  |  |  |  |  | (22331) | (2423) | (24754) |
| Non- controlling interests from acquisition of subsidiaries |  |  |  |  |  |  |  | 14722 | 14722 |
| Non-controlling interests disposed through divestiture |  |  |  |  |  |  |  | 40 | 40 |
| Appropriation to statutory reserve | - | - | - | - | - | 1179 | (1179) | - | - |
| **Balance as of December 31, 2024** | **125000610** | **8** | **34000000** | **2** | **13601** | **7215** | **(43760)** | **24908** | **1974** |
| Net loss | **-** | **-** | **-** | **-** |  |  | (13838) | (1785) | (15623) |
| Appropriation to statutory reserve | **-** | **-** | **-** | **-** | - | 1999 | (1999) | - | - |
| **Balance as of December 31, 2025** | **125000610** | **8** | **34000000** | **2** | **13601** | **9214** | **(59597)** | **23123** | **(13649)** |
| **Balance as of December 31, 2025(US$)** | **125000610** | **1** | **34000000** | **-** | **1945** | **1318** | **(8522)** | **3307** | **(1951)** |

---

The accompanying notes are an integral part of these consolidated financial statements.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Amounts in thousands and otherwise noted)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For The Years Ended December 31,** | **For The Years Ended December 31,** | **For The Years Ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Cash flows from operating activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Net loss | (24754) | (15623) | (2233) |
|  ***Adjustments to reconcile net loss to net cash used in operating activities:*** |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation and amortization | 2309 | 2606 | 372 |
| &nbsp;&nbsp;&nbsp; Provision for credit loss | 4951 | 554 | 79 |
| &nbsp;&nbsp;&nbsp; Impairment of long-term investment | 5250 |  |  |
| &nbsp;&nbsp;&nbsp; Amortization of operating lease right-of-use assets | 1354 | 1421 | 203 |
| &nbsp;&nbsp;&nbsp; Share of losses in equity method investments | 2216 | 1767 | 253 |
| &nbsp;&nbsp;&nbsp; Bargain purchase gain | (863) |  |  |
| &nbsp;&nbsp;&nbsp; Gain from disposal of subsidiaries | (61) | (233) | (33) |
| &nbsp;&nbsp;&nbsp; Gain from termination of operating lease obligations |  | (181) | (26) |
| &nbsp;&nbsp;&nbsp; Accrued interest expenses | 4994 | 4926 | 704 |
|  ***Changes in operating assets and liabilities*** |  |  |  |
| &nbsp;&nbsp;&nbsp; Notes receivable | (88715) | (113429) | (16220) |
| &nbsp;&nbsp;&nbsp; Accounts receivable | (67612) | 570193 | 81537 |
| &nbsp;&nbsp;&nbsp; Accounts receivable-related parties | (15944) | 5391 | 771 |
| &nbsp;&nbsp;&nbsp; Inventories | 2129 | 25686 | 3673 |
| &nbsp;&nbsp;&nbsp; Advance to suppliers | 84606 | 31505 | 4505 |
| &nbsp;&nbsp;&nbsp; Advance to suppliers-related parties | 541 | (4610) | (659) |
| &nbsp;&nbsp;&nbsp; Other receivable and other assets | (17960) | 34949 | 4998 |
| &nbsp;&nbsp;&nbsp; Notes payable |  | 33064 | 4728 |
| &nbsp;&nbsp;&nbsp; Accounts payable | (121945) | (460620) | (65868) |
| &nbsp;&nbsp;&nbsp; Accounts payable-related parties | 157287 | (114615) | (16390) |
| &nbsp;&nbsp;&nbsp; Advance from customers | (4136) | (1529) | (219) |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | (16505) | (11950) | (1709) |
| &nbsp;&nbsp;&nbsp; Taxes payable | 25640 | (56645) | (8100) |
| &nbsp;&nbsp;&nbsp; Operating leases liabilities | (1200) | (1570) | (224) |
| **Net cash used in operating activities** | **(68418)** | **(68943)** | **(9858)** |
| **Cash flows from investing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Purchase of property and equipment | (968) | (2110) | (302) |
| &nbsp;&nbsp;&nbsp; Purchase of intangible assets |  | (106) | (15) |
| &nbsp;&nbsp;&nbsp; Purchase of long-term investment | (7015) |  |  |
| &nbsp;&nbsp;&nbsp; Cash from disposed subsidiaries | (9) | (565) | (81) |
| &nbsp;&nbsp;&nbsp; Cash obtained from acquired subsidiaries | 7752 |  |  |
| &nbsp;&nbsp;&nbsp; Collection of third-party loans | 58060 | 54985 | 7863 |
| &nbsp;&nbsp;&nbsp; Loans to third parties | (45726) | (74111) | (10598) |
| &nbsp;&nbsp;&nbsp; Loans to related parties | (76261) | (39931) | (5710) |
| &nbsp;&nbsp;&nbsp; Collection of related-party loans | 60664 | 58347 | 8344 |
| &nbsp;&nbsp;&nbsp; Deposit on long term investment |  | (3887) | (556) |
| &nbsp;&nbsp;&nbsp; Deposit for acquisition | - | (10200) | (1459) |
| **Net cash used in investing activities** | **(3503)** | **(17578)** | **(2514)** |
| **Cash flows from financing activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp; Repayment of short-term loans from related parties | (17839) | (139167) | (19901) |
| &nbsp;&nbsp;&nbsp; Short-term loans from related parties | 27921 | 136229 | 19480 |
| &nbsp;&nbsp;&nbsp; Long-term loan from related parties | 25565 | 17670 | 2527 |
| &nbsp;&nbsp;&nbsp; Repayment of long-term loans from related parties | (15165) | (40450) | (5784) |
| &nbsp;&nbsp;&nbsp; Proceeds from bank loans | 115452 | 188988 | 27025 |
| &nbsp;&nbsp;&nbsp; Repayment of bank loans | (17629) | (56334) | (8056) |
| &nbsp;&nbsp;&nbsp; Proceeds from loan payable to third parties | 64522 | 88103 | 12599 |
| &nbsp;&nbsp;&nbsp; Repayment of loan payable to third parties | (71693) | (106098) | (15172) |
| &nbsp;&nbsp;&nbsp; Shareholder contribution | 200 |  |  |
| &nbsp;&nbsp;&nbsp; Deferred issuance costs | (2135) | (1503) | (215) |
| **Net cash provided by financing activities** | **109199** | **87438** | **12503** |
| **Net increase in cash and restricted cash** | **37278** | **917** | **131** |
| **Cash and restricted cash, beginning of year** | **8904** | **46182** | **6604** |
| **Cash and restricted cash, end of year** | **46182** | **47099** | **6735** |
| **Reconciliation of cash and restricted cash, end of year** |  |  |  |
| Cash | 45982 | 13899 | 1987 |
| Restricted cash | 200 | 33200 | 4748 |
| **Cash and restricted cash, end of year** | 46182 | 47099 | 6735 |
| **Supplemental cash flow disclosures:** |  |  |  |
| Cash paid for income tax | 4505 | 15712 | 2247 |
| Cash paid for interest | 2638 | 5383 | 770 |
| **Non-cash activities:** |  |  |  |
| Right-of-use assets obtained in exchange of operating lease obligations | 9530 | 5252 | 751 |
| Acquisition considerations payable included in due to related parties and accrued expense and other liability | 15323 |  |  |
| Right-of-use assets offset with operating lease obligations due to lease cancellation |  | 8086 | 1156 |
| Offset maturing notes receivable and short-term loans |  | 88715 | 12686 |
| Offset accounts payable-related parties and due to related parties |  | 17435 | 2493 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 1 — ORGANIZATION AND BUSINESS DESCRIPTION**

Carbon Zero Technologies International Inc. ("CZTI" or the "Company") was established under the laws of the Cayman Islands on July 13, 2023 as a holding company. The Company, through its subsidiaries (together the "Group"), specializes in waste services in China. Mr. Baitong Tang ("Mr. Tang"), the Chairman of the Board of Directors and Chief Executive Officer ("CEO"), is the ultimate controlling shareholder ("the controlling shareholder") of the Group.

As of the date of this report, the Company's subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Subsidiaries** | **Date of <br> Incorporation** | **Jurisdiction of <br> Formation** | **Percentage of <br> direct/indirect <br> Economic <br> Ownership** | **Principal <br> Activities** |
| Carbon Zero Technologies (Hong Kong) Limited. ("CZTI HK") | August 9, 2023 | Hong Kong, PRC | 100% | Investment <br> Holding |
| Beijing Bgreen Technology Development Co., Ltd. ("CZTI WFOE") | August 30, 2023 | Beijing, PRC | 100% | Investment <br> Holding |
| Shenzhen Carbon Zero Technology Co., Ltd. ("CZTI Shenzhen") | June 7, 2022 | Shenzhen, PRC | 100% | Technical <br> service |
| Shenzhen ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Shenzhen") | March 23, 2016 | Shenzhen, PRC | 75% subsidiary of CZTI Shenzhen | Information & IT technologies service |
| Shenzhen ABGreen Reverse Supply Chain Co., Ltd. ("ABGreen Shenzhen RSC") | August 2, 2013 | Shenzhen, PRC | 51% subsidiary of ABGreen Shenzhen | Information & IT technologies service |
| Henan Jinyou Metal Technology Co., Ltd. ("Jinyou Metal") | March 10, 2021 | Henan, PRC | 51% subsidiary of ABGreen Shenzhen | Household waste collection |
| Zhoukou Senbo Environmental Protection Technology Co., Ltd. ("Zhoukou Senbo") | September 28, 2021 | Henan, PRC | 53% subsidiary of ABGreen Shenzhe | Household waste collection |
| Zhoukou Bgreen Environmental Protection Technolog Co., LTD ("Zhoukou Bgreen") | January 5, 2023 | Henan, PRC | 55% subsidiary of Zhoukou Senbo | Household waste collection |
| ABGreen (Fuyang) Environmental Protection Technology Co., Ltd. ("ABGreen Fuyang)" | June 8, 2022 | Anhui, PRC | 51% subsidiary of ABGreen Shenzhen | Household waste collection |
| Ankang ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Ankang") | June 8, 2022 | Shanxi, PRC | 51% subsidiary of ABGreen Shenzhen | Household waste collection |
| Guangxi Meijin Environmental Protection Technology Co., Ltd ("Guangxi Meijin") | April 16, 2024 | Guangxi, PRC | 51% subsidiary of ABGreen Shenzhen | Household waste collection and Information & IT technologies service |
| Quanzhou Qinghe Environmental Protection Technology Co., Ltd. ("Qinghe") | December 26, 2025 | Fujian, PRC | 100% subsidiary of ABGreen Shenzhen | Household waste collection |
| Henan Bgreen Resources and Environment Co., Ltd. ("Henan Bgreen") | January 28, 2026 | Henan, PRC | 100% subsidiary of ABGreen Shenzhen | Household waste collection |
| Hunan ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Hunan") | December 24, 2025 | Hunan, PRC | 100% subsidiary of ABGreen Shenzhen | Household waste collection |
| Anhui ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Anhui") | March 3, 2026 | Anhui, PRC | 100% subsidiary of ABGreen Shenzhen | Household waste collection |
| Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. ("Shenzhen Chuangzhiyuan") | March 20, 2024 | Shenzhen, PRC | 65% subsidiary of CZTI HK | Household waste collection |
| Jushang (Hebei) Renewable Resources Co., Ltd. ("Hebei Jushang") | March 24, 2022 | Hebei, PRC | 51% subsidiary of Shenzhen Chuangzhiyuan | Household waste collection |
| Guangdong Bo Green investment Co., Ltd. ("Guangdong Bo Green") | September 27, 2024 | Guangdong, PRC | 67% subsidiary of Shenzhen Chuangzhiyuan | Household waste collection |
| Xieguan Tonglian (Shenzhen) Technology Co., Ltd. ("Xieguan Tonglian") | January 19, 2024 | Shenzhen, PRC | 100% | Information & IT technologies service |
| Shenzhen Green Blue Environmental Protection Technology Co., Ltd. ("Shenzhen Green Blue") | March 2, 2023 | Shenzhen, PRC | 100% | International Trade |
| Shenzhen Yize Environmental Protection Technology Co., Ltd. ("Shenzhen Yize") | February 1, 2024 | Shenzhen, PRC | 100% | Household waste collection |
| Henan Zhicheng Industrial Park Management Co., Ltd. ("Henan Zhicheng") | October 22, 2025 | Henan, PRC | 51% subsidiary of <br> Shenzhen Yize  | Household waste collection |
| Shenzhen Bgreen Environmental Technology Co., Ltd ("Shenzhen Bgreen") | February 4, 2024 | Shenzhen, PRC | 100% | Information & IT technologies service |
| Shenzhen Carbon Poly Digital Technology Co., Ltd. ("Shenzhen Digital") | February 4, 2024 | Shenzhen, PRC | 100% | Information & IT technologies service |
| Beijing Guoxun Renewable Resources Co., Ltd. ("Beijing Guoxun") | May 31, 2024 | Beijing, PRC | 51% subsidiary of Shenzhen Digital | Household waste collection |
| Carbon Baike (Beijing) Environmental Protection Technology Co., Ltd. ("Beijing Carbon Baike") | November 13, 2025 | Beijing, PRC | 51% subsidiary of Shenzhen Digital | Information & IT technologies service |
| Carbon Source Technologies (Hong Kong) Limited ("Carbon Source HK") | September 3, 2024 | Hong Kong, PRC | 100% | Investment <br> Holding |
| Gongqingcheng Yadannuo Environmental Technology Co., Ltd. ("Gongqingcheng") | October 9, 2024 | Jiangxi, PRC | 51% subsidiary of Carbon Source HK | Household waste collection |
| Jiangxi Jingchuang Metal Manufacturing Co., Ltd. ("Jingchuang Metal") | March 18, 2022 | Jiangxi, PRC | 51% subsidiary of Carbon Source HK | Household waste collection |
| Jiangxi Qi Hong New Material Technology Co., Ltd. ("Qi Hong") | July 15, 2024 | Jiangxi, PRC | 51% subsidiary of Carbon Source HK | Household waste collection |
| Hubei Carbon Link Recycling Technology Co., Ltd. ("Hubei Carbon Link") | February 19, 2025 | Hubei, PRC | 100% | Household waste collection |
| Henan ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Henan") | April 3, 2025 | Henan, PRC | 51% subsidiary of Carbon Source HK | Household waste collection |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 1 — ORGANIZATION AND BUSINESS DESCRIPTION (cont.)**

As described below, the Company, through a series of transactions which are accounted for as a reorganization of entities under common control (the "Reorganization"), became the ultimate parent of its subsidiaries.

***Reorganization***

A reorganization of the legal structure was completed on September 25, 2023. The reorganization involved:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) formation
 of CZTI Shenzhen on June 7, 2022 and 75% equity interests of ABGreen Shenzhen was transferred to CZTI Shenzhen on July 27, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 formation of the Company's wholly owned subsidiary- CZTI HK on August 9, 2023 and its wholly owned subsidiary — CZTI
 WFOE on August 30, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) during
 the period from August to September, 2023, after a series of transfers under common control and at nominal considerations, all of
 the shareholders' equity interest in CZTI Shenzhen was ultimately transferred to CZTI WFOE on September 25, 2023.

Before and after the reorganization, the Company, together with its subsidiaries, is effectively controlled by the same shareholder, and therefore the reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification ("ASC") 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements in accordance with ASC 805-50-45-5.

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***Basis of presentation***

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and pursuant to the rules and regulations of the Securities Exchange Commission ("SEC").

***Liquidity***

The Group's consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities during the normal course of operations. For the years ended December 31, 2024 and 2025, the Group incurred net loss of approximately RMB24,754 and RMB15,623, and net cash used in operating activities was approximately RMB68,418 and RMB68,943, respectively. As of December 31, 2025, the Group had accumulated deficit of approximately RMB59,597, and working capital of approximately RMB449. Overall, the Group evaluates the adverse factors including the historical adverse financial performance, expected loss situation in a foreseeable period and start-up costs in new subsidiaries. Such conditions in the aggregate indicated a substantial doubt regarding the Group's ability to continue as a going concern.

The Group intends to meet the cash requirements for the next twelve months from the issuance date of consolidated financial statements through the following mitigation plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) Strengthening liquidity through secured financing: the Group has secured commitments for additional credit lines to support future operations, specifically including a RMB5,000 facility from China Resources Bank (available March 2026) and a RMB8,000 facility from China Guangfa Bank (available April 2026). Meanwhile, management is in active negotiations with lenders and intends to renew or rollover existing loans maturing after December 31, 2025, to maintain stable working capital levels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) Strategic support from creditors and key individuals: the Group has obtained letters of undertaking from other payables and lenders, who have committed not to demand repayment of outstanding balances in the short term, thereby preserving immediate cash reserves. Mr. Tang, Chairman of the Board of Directors and CEO, has agreed to sign a formal support letter, pledging to provide financial assistance and resources as necessary to ensure the Group's continued development and ability to meet its obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) Enhancement of operating profitability: management has developed revised profit forecasts incorporating new, higher-margin business streams, specifically the distribution of "Tmall Trade-in" orders and the "Intelligent Recycling Bin" business. While the Group currently operates under a low-margin model, management's strategy focuses on scaling revenue to improve operational efficiency. As transaction volumes grow, fixed operating expenses will be more effectively absorbed, leading to improved net margins and sustainable cash flow from operations.

Taking into consideration all these actions mentioned above, management concluded that the substantial doubt on the Group's ability to continue as a going concern can be alleviated through the effective implementation of the mitigation plans. As a result, the management prepared the consolidated financial statements assuming the Group will continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.**)

***Uses of estimates and assumptions***

In preparing the consolidated financial statements in conformity with US GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements. Significant accounting estimates required to be made by management include, but are not limited to revenue recognition, credit loss for accounts receivable, the useful lives of property and equipment and the recoverability of the carrying amounts of property and equipment and right-of-use assets and realization of deferred tax assets. The Group evaluates its estimates and assumptions on an ongoing basis and its estimates on historical experience, current and expected future conditions and various other assumptions that management believes are reasonable under the circumstances based on the information available to management at the time these estimates and assumptions are made. Actual results and outcomes may differ significantly from these estimates and assumptions.

***Principles of consolidation***

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All intercompany transactions and balances between the Company and its subsidiaries are eliminated upon consolidation.

Subsidiaries are those entities in which the Company, directly or indirectly, controls more than one half of the voting power; or has the power to govern the financial and operating policies, to appoint or remove the majority of the members of the board of directors, or to cast a majority of votes at the meeting of directors.

***Non-controlling interests***

Non-controlling interest represents the portion of the net assets of subsidiaries attributable to interests that are not owned or controlled by the Company. The non-controlling interest is presented in the consolidated balance sheets, separately from equity attributable to the shareholders of the Company. Non-controlling interest's operating results are presented on the face of the consolidated statements of income and comprehensive income as an allocation of the total loss for the year between non-controlling shareholders and the shareholders of the Company. As of December 31, 2024 and 2025, the balance of non-controlling interests amounted to equity of RMB24,908 and RMB23,123, respectively. A movement of non-controlling interest for the year ended December 31, 2024 and 2025 were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024**<br>**RMB** | **December 31, 2025**<br>**RMB** |
| Beginning Balance | 12369 | 24908 |
| Capital contribution made by shareholders | 200 |  |
| Non-controlling interest from acquisition of subsidiaries | 14722 |  |
| Non-controlling interests disposed through divestiture | 40 |  |
| Proportionate shares of net loss | (2423) | (1785) |
| Ending balance | 24908 | 23123 |

---

***Business acquisition***

 ****

The Group accounts for its business combinations using the acquisition method of accounting. The cost of an acquisition is measured as the aggregate of the acquisition date fair value of the assets transferred to the sellers, liabilities incurred by the Group and equity instruments issued by the Group. Transaction costs directly attributable to the acquisition are expensed as incurred. Identifiable assets acquired and liabilities assumed are measured separately at their fair values as of the acquisition date, irrespective of the extent of any non-controlling interests. The excess of (i) the total of consideration paid and fair value of the non-controlling interests over (ii) the fair value of the identifiable net assets of the acquiree is recorded as goodwill. If the consideration of acquisition is less than the fair value of the net assets acquired, the difference is recognized directly in the consolidated statements of income and comprehensive income.

The Group engages the assistance of valuation specialists in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. Amounts recorded in a business combination may change during the measurement period, which is a period not to exceed one year from the date of acquisition, as additional information about conditions existing at the acquisition date becomes available.

 ****

***Cash and cash equivalent***

Cash and cash equivalent consists of cash in bank and in other third-party platforms. The Group maintains most of its bank accounts in the PRC.

The Group considers all highly liquid investment instruments with an original maturity of three months or less from the date of purchase to be cash equivalents.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Restricted cash***

Cash that is restricted as to withdrawal or is used or pledged as security is reported separately on the face of the consolidated balance sheets and is included in the total cash in the consolidated statements of cash flows. The Group's restricted cash mainly represents security deposits held in designated bank accounts for notes payable.

***Notes receivable***

 ****

Notes receivable are primarily bank acceptance notes. The Group accepts bank acceptance notes from customers for products sold or services performed in the ordinary course of business. Acceptance notes are primarily negotiable instruments with cash settlement from commercial banks within half a year. Upon receipt of the bank acceptance notes, the Group's accounts receivable from the customer is derecognized. Bank acceptance notes of RMB88,715 and RMB109,027 were discounted to banks for the years ended December 31, 2024 and 2025, respectively.

***Expected credit losses of receivables***

In 2016, the FASB issued ASU No. 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASC Topic 326"), which amends previously issued guidance regarding the impairment of financial instruments by creating an impairment model that is based on expected losses rather than incurred losses. The Group has adopted this ASC Topic 326 and several associated ASUs on January 1, 2023 using a modified retrospective approach. The adoption of this guidance did not have a material impact on the Group's consolidated financial statements. Accounts receivables are recognized and carried at original invoiced amount less an estimated allowance for credit losses. Most accounts receivable was collected within twelve months. The Group estimates the allowance for credit losses based on an analysis of the aging of accounts receivable, assessment of collectability, including any known or anticipated economic conditions, customer-specific circumstances, recent payment history and other relevant factors. Delinquent account balances are written-off against the allowance for credit losses after management has determined that the likelihood of collection is not probable. As of December 31, 2024 and 2025, allowance for credit losses amounted to RMB4,951 and RMB3,567, respectively.

Other receivable and other assets primarily consist of government grants receivable, security deposits and loan to third parties which are presented net of allowance for credit losses and prepaid expenses. The balances of government grants receivable, security deposits and loan to third parties are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Group considers the balances to be impaired if the collectability of the balances becomes doubtful. The Group uses the loss-rate method to estimate the allowance for uncollectible balances. The Group considers the past collection experience, any changes in collection trends, the credit worthiness of counter parties, the contractual terms, current economic conditions, and expectation of future economic conditions. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for credit losses after management has determined that the likelihood of collection is not probable. As of December 31, 2024 and 2025, allowance for credit losses was nil.

***Advances to suppliers***

Advances to suppliers primarily consist of advances to suppliers, which are presented net of allowance for doubtful accounts. These balances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Group considers the balances to be impaired if the collectability of the balances becomes doubtful. The Group uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management's best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. As of December 31, 2024 and 2025, allowance for credit losses was nil and RMB1,817.

***Inventories***

Inventories are stated at the lower of cost or net realizable value. Costs include the cost of household waste overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories.

Net realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. The Group evaluates inventories on a quarterly basis for its net realizable value adjustments, and reduces the carrying value of those inventories that are obsolete or in excess of the forecasted usage to their estimated net realizable value based on various factors including aging and future demand of each type of inventories. No reserve was recorded as of December 31, 2024 and 2025.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Property and equipment***

Property and equipment are recorded at cost. Depreciation is provided in amounts sufficient to amortize the cost of the related assets over their useful lives using the straight-line method, as follows:

---

| | |
|:---|:---|
|  | **Useful life** |
| Building | 50 years |
| Machinery equipment | 3-5 years |
| Electronic equipment | 3 years |
| Transportation equipment | 5 years |
| Other equipment | 2 years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and comprehensive income in other income or expenses.

***Intangible assets***

Intangible assets consist primarily of land use right, software, copyrights and patents. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method.

---

| | |
|:---|:---|
| **Category** | **Estimated useful life** |
| Land use right | 50 years |
| Software | 2 years |
| Copyright | 10 years |
| Patents | 10 years |

---

 ****

***Goodwill***

Goodwill is recognized and initially measured as any excess of the acquisition-date consideration transferred in a business combination over the acquisition-date amounts recognized for the net identifiable assets acquired. Goodwill is not amortized but is tested for impairment annually, or more frequently if an event occurs or circumstances change that would more likely than not result in an impairment of goodwill. Impairment testing is performed at the reporting unit level. A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of that component. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. If fair value is in excess of the carrying value, impairment is not indicated. If the carrying amount of a reporting unit is higher than its estimated fair value, the excess is recorded as an impairment expense. The Group performs its goodwill impairment test on annual basis. For the years ended December 31, 2024 and 2025, no impairment of goodwill was recorded.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Impairment of long-lived assets other than goodwill***

The Group evaluates long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount of an asset or a group of long-lived assets may not be recoverable. When these events occur, the Group evaluates for impairment by comparing the carrying amount of the asset or asset group to future undiscounted net cash flows expected to result from the use of the asset or asset group and their eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset or asset group, the Group would recognize an impairment loss based on the excess of the carrying amount of the asset or asset group over its fair value. Fair value is generally determined by discounting the cash flows expected to be generated by the asset or asset group, when market prices are not readily available for the long-lived assets. There were no impairments of these assets as of December 31, 2024 and 2025.

***Long term investment***

ASU 2016-01 ("ASU 2016-01"), Recognition and Measurement of Financial Assets and Financial Liabilities amend certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The main provisions require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value through earnings, unless they qualify for a measurement alternative. The Group adopted the accounting standard from January 1, 2020.

*Equity investments with readily determinable fair values*

Equity investments with readily determinable fair values are measured and recorded at fair value using the market approach based on the quoted prices in active markets at the reporting date.

*Equity investments without readily determinable fair values*

After the adoption of this accounting standard, the Group elected to record equity investments without readily determinable fair values and not accounted for under the equity method at cost, less impairment, adjusted for subsequent observable price changes on a nonrecurring basis, and report changes in the carrying value of the equity investment in current earnings. Changes in the carrying value of the equity investment are required to be made whenever there are observable price changes in orderly transactions for the identical or similar investment of the same issuer. Reasonable efforts shall be made to identify price changes that are known or that can reasonably be known.

*Equity investments accounted for using the equity method*

The Group accounts for its equity investment over which it has significant influence but does not own a majority equity interest or otherwise control, using the equity method. The Group adjusts the carrying amount of the investment and recognizes investment income or loss for its share of the earnings or loss of the investee after the date of investment. The Group assesses its equity investment for other-than-temporary impairment by considering factors including, but not limited to, current economic and market conditions, operating performance of the entity, including current earnings trends and undiscounted cash flows, and other entity-specific information. The fair value determination, particularly for investments in a privately held entity, requires judgment to determine appropriate estimates and assumptions. Changes in these estimates and assumptions could affect the calculation of the fair value of the investment and determination of whether any identified impairment is other-than-temporary.

The Group continually reviews its investments in equity investees to determine whether a decline in fair value below the carrying value is other-than-temporary. The primary factors the Group considers in its determination include the financial condition, operating performance and the prospects of the equity investee; other company specific information such as recent financing rounds; the geographic region, market and industry in which the equity investee operates; and the length of time that the fair value of the investment is below its carrying value. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. For the years ended December 31, 2024 and 2025, impairment loss was RMB5,250 and nil, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Deferred issuance costs***

Deferred issuance costs consist of underwriting, legal and other expenses incurred through the balance sheet date that are directly related to the proposed offering and that would be charged to shareholders' equity upon the completion of the proposed offering. Should the proposed offering prove to be unsuccessful, these deferred issuance costs will be charged as expense to the Consolidated Statements of Operations. As of December 31, 2024 and 2025, the deferred issuance costs were RMB9,195 and RMB10,698, respectively.

***Notes payable***

 ****

Notes payable are bank acceptance notes issued by financial institutions on the Group's behalf to vendors with a specific due date usually for a period of within 12 months. These notes can either be endorsed by the vendor to other third parties as payment or can be discounted to other financial institutions before maturity date. As collateral security for financial institutions' undertakings, the Group is required to maintain deposits with such financial institutions as restricted cash amounts of 50% to 100% of the balances of the bank acceptance notes.

***Fair Value of Financial Instruments***

ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

● Level
 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

● Level
 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted
 market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable
 and inputs derived from or corroborated by observable market data.

● Level
 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Group's financial instruments, including cash, accounts receivable, advances to suppliers, other receivable and other assets, accounts payable, advance from customers, accrued expenses, bank loans and taxes payable, approximates their recorded values due to their short-term maturities. The Group determined that the carrying value of the long-term portion of bank loans and loans payable to third parties approximated their fair value by comparing the stated loan interest rate to the rate charged by similar financial institutions.

***Related Parties***

Parties are considered to be related to the Group if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Group. Related parties also include principal owners of the Group, its management, members of the immediate families of principal owners of the Group and its management and other parties with which the Group may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests. The Group discloses all significant related party transactions.

***Revenue recognition***

The Group adopted ASC 606 Revenue from Contract with Customers ("ASC606") for all periods presented. According to ASC 606, revenue is recognized when control of the promised good or service is transferred to the customer in an amount that reflects the consideration the Group expects to receive in exchange for those goods or services, after considering estimated sales return allowances, price concessions, discount and value added tax ("VAT"). Consistent with the criteria of ASC 606, the Group follows five steps for its revenue recognition: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation.

The Group is a waste services company and revenues are generated primarily from sales of waste product and service that the Group offers to its customers. The Group also generates revenues from sales of pre-owned electronic products through offline and online stores it operates.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

**Product revenues**

<u>Household waste and ferrous metals</u>

The majority of the Group's revenue comes from recycle and sales of household waste, primarily consisting of electronic wastes ("E-waste"), waste plastic, waste paper and scrap cars (together as "household waste") and ferrous metals through offline channels. The Group's household waste and ferrous metals recycle process involves the selection and collection of household waste from location suppliers and sales to customers, primarily including recycling centers and industrial companies. The Group presents revenue generated from its product sales on a gross basis as the Group has control of the goods and has the ability to direct the selection and collection of goods to obtain substantially all the benefits and recognizes revenue at a point in time when control of the goods is transferred to the customers, which generally occurs upon acceptance by customers. The Group's contracts with customers are primarily on a fixed-price basis and generally do not contain a right of return or cancellable provisions.

<u>Pre-owned electronic products</u>

The Group also conducts sales of pre-owned electronic products through online and offline stores it operates. For online sales, the Group recognizes revenue from the sale of pre-owned electronic products through the online stores it operates. The Group utilizes external delivery service providers to deliver goods to its customers. The customers pay for the goods in advance. The Group presents revenue generated from its sales of pre-owned electronic products on a gross basis as the Group has control of the goods and has the ability to direct the use of goods to obtain substantially all the benefits. Due to China's statutory requirement for 7 days return policy for all online purchase, revenues from online sales of pre-owned electronic products are recognized at the point of time when control is transferred, which typically happens upon 7 days after the acceptance. The Group's contracts with customer are primarily on a fixed-price basis. Product revenues are reduced by discounts and allowances provided to customers, which has been immaterial in the historical periods. After 7 days, customers generally do not have the right to return product unless damaged or defective.

For sales of pre-owned electronic products through offline stores, the Group recognizes revenue at the point of time when customers pay and obtain control of the products.

The Group typically provides one-year standard product warranties on the pre-owned electronic products sold. Standard warranties are considered to be assurance type warranties and are not accounted for as separate performance obligations. The Group accrues estimated future warranty costs and charges to cost of revenues in the period that the related revenue is recognized, which has been immaterial in the historical periods. These estimates are based on historical warranty experience and any known or expected changes in warranty exposure, such as trends of product reliability and costs of repairing and replacing defective products.

**Net service revenues**

<u>Regional service revenues</u>

The Group utilizes its own APPs to gather local household waste information and shares the market information with regional partners to leverage their business with the Group's technical, operational and marketing supports. In return, the Group charged a fixed amount regional service fee over the contractual period from certain regional partners for the years ended December 31, 2023 and 2024. Starting on January 1, 2023, the Group no longer enters into any new regional service contracts with regional partners. For the years ended December 31, 2023 and 2024, the Group determined the performance obligation of regional service is satisfied over time as the regional partners simultaneously received and consumed the benefits of accessing to the Group's APP and the related technical, operational and marketing supports provided by the Group. The Group has enforceable right to payments for the work performed. Therefore, revenues for regional service were recognized over time based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligations. The Group used an input method based on cost incurred as the Group believes that this method most accurately reflected the Group's progress toward satisfaction of the performance obligation.

The Group charged regional service revenues from certain regional partners but incurred certain marketing reimbursement to the same location partners. In such cases, the Group determined that consideration payable to a customer shall be accounted as a reduction of the regional service revenues in accordance with ASC 606-10-32-25.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

<u>System service revenues</u>

The Group's APP (or mini program) facilitates the waste collection transaction between the location suppliers and householders. Location suppliers can collect the household waste from householders based on the waste information published by householder on the Group's APP. The Group charges a fixed system service fee from location suppliers for each successful waste collection transaction facilitated through the Group's APP. System service revenues are recognized at a point in time upon when the facilitation service is completed (i.e., at the time location suppliers confirm the collection of the household waste from householder). System service fees are not refundable.

For the years ended December 31, 2024 and 2025, the disaggregation of revenue by the type was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| **Product Revenues:** |  |  |
| &nbsp;&nbsp;&nbsp; Household Waste – offline channel | 1410346 | 1617295 |
| &nbsp;&nbsp;&nbsp; Ferrous metals– offline channel | 3061360 | 4140598 |
| &nbsp;&nbsp;&nbsp; Pre-owned electronic sales – offline channel | 407 |  |
| &nbsp;&nbsp;&nbsp; Pre-owned electronic sales – online channel | 2016 | 635 |
|  | 4474129 | 5758528 |
| **Net Service revenues:** |  |  |
| &nbsp;&nbsp;&nbsp; Regional service revenues | 3003 |  |
| &nbsp;&nbsp;&nbsp; System service revenues | 6506 | 19380 |
|  | 9509 | 19380 |
| **Total** | **4483638** | **5777908** |

---

For the years ended December 31, 2024 and 2025, the disaggregation of revenue by the timing of transfer of goods or services was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| &nbsp;&nbsp;&nbsp; Revenues recognized at a point in time | 4480635 | 5777908 |
| &nbsp;&nbsp;&nbsp; Revenues recognized over time | 3003 | - |
| **Total** | **4483638** | **5777908** |

---

The Group does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which it recognizes revenue at the amount to which it has the right to invoice for services performed. The Group has determined that the contracts do not include a significant financing component because the Group expects the period between when transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less.

A contract liability exists when the Group has received consideration but has not transferred the related goods or services to the customer. The Group's contract liabilities consist of advanced payments received from customers before they received the products and service, mainly related to online channel sales of pre-owned electronics and regional service provided, in which the Group receives advance payments pursuant to the agreements with certain customers before the products or service are transferred. As of December 31, 2024 and 2025, the advances from customer amounted to RMB3,122 and RMB1,402, respectively. During the years ended December 31, 2024 and 2025, the Group recognized RMB7,258 and RMB3,054 revenue that was included in contract liabilities balance on December 31, 2023 and 2024, respectively. The Company expected to recognize the entire contract liabilities as of December 31, 2025 as revenue in the next 12 months.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.**)

***Merchandise costs***

Merchandise costs primarily consist of cost of acquired waste products for recycling.

***Fulfillment***

Fulfillment expenses consist primarily of expenses incurred in operating the Group's technology infrastructure, waste collection, offline stores and warehouse operations, including contractors' expenses attributable to purchasing, receiving, inspecting, packaging, lease expense for sorting centers and warehouse and equipment depreciation.

***Sales and marketing***

Sales and marketing expenses consist primarily of payroll and related expenses for employees involved in sales and marketing activities, advertising costs. Advertising expenses amounted to RMB1,662 and RMB937 for the years ended December 31, 2024 and 2025, respectively.

***General and administrative expenses***

General and administrative expenses consist primarily of payroll and related expenses for employees involved in management activities, consulting expense, lease expenses, depreciation and amortization, entertainment, the total amounted to RMB 27,081 and RMB 28,692 for the years ended December 31, 2024 and 2025, respectively.

***Government grants***

Government grants consist of cash subsidies entitled by the PRC local governments. Grants as incentives for conducting business in certain local districts with no performance obligation or other restriction as to the use are recognized when the Group is entitled to them. Government grants with specified performance obligations are recognized when all the obligations have been fulfilled or otherwise deferred. Government grants related to the purchases of assets are used to net the cost of the respective assets. For the government grants with not specified purpose for and are not tied to future trends or performance of the Group; receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances, the unspecific purpose subsidies are recognized as other income as further performance by the Group is not required. For the years ended December 31, 2024 and 2025, the unspecified government grants of RMB4,615 and RMB1,600, respectively, were included as other income in the Group's consolidated loss and comprehensive loss. For the years ended December 31, 2024 and 2025, the government grants of RMB212,871 and RMB207,558, respectively, were related to the purchases of household waste merchandise and recorded as reductions of the Group's respective cost of merchandise costs. For the years ended December 31, 2024 and 2025, the government grants of nil and RMB240, respectively, were directly related to research and development of waste recycling benefits and recorded as reductions of the Group's respective research and development program's expenses. Deferred government grants balance for research and development was nil as of December 31, 2024 and 2025, respectively. As of December 31, 2024 and 2025, the government grants receivable balance for household waste merchandise purchase was RMB63,509 and RMB26,705, respectively. The Group collected RMB13,900 as of the date of this filing.

***Leases***

The Group adopted Topic 842 on January 1, 2021 using the modified retrospective transition approach. The Group has lease contracts office space under operating leases. The Group determines whether an arrangement constitutes a lease and records lease liabilities and right-of-use assets on its consolidated balance sheets at lease commencement. The Group measures its lease liabilities based on the present value of the total lease payments not yet paid discounted based on the more readily determinable of the rate implicit in the lease or its incremental borrowing rate, which is the estimated rate the Group would be required to pay for a collateralized borrowing equal to the total lease payments over the term of the lease. The Group estimates its incremental borrowing rate based on an analysis of weighted average interest rate of its own bank loans. The Group measures right-of-use assets based on the corresponding lease liability adjusted for payments made to the lessor at or before the commencement date, and initial direct costs it incurs under the lease. The Group begins recognizing lease expense when the lessor makes the underlying asset available to the Group.

For leases with lease term less than one year (short-term leases), the Group records operating lease expense in its consolidated statements of operations on a straight-line basis over the lease term and record variable lease payments as incurred.

***Research and development expenses***

Research and development expenses include costs directly associated with the Group's research and development projects, including the cost of salaries and other employee benefits, testing expenses, consumable equipment and consulting fees. All costs associated with research and development are expensed as incurred. For the years end December 31, 2024 and 2025, after netting off with government grant for specific research and development project, research and development expenses were RMB1,806 and RMB1,914, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Income taxes***

The Group accounts for current income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2024 and 2025. As of December 31, 2025, the tax years ended December 31, 2020 through December 31, 2024 for the Group's PRC subsidiaries remain open for statutory examination by PRC tax authorities.

***Value added tax ("VAT")***

Revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 13%, depending on the type of products sold. The VAT may be offset by VAT paid by the Group on raw materials and other materials included in the cost of producing or acquiring its finished products. The Group recorded a VAT payable net of payments in the accompanying consolidated financial statements. All of the VAT returns filed by the Group's subsidiaries in China, have been and remain subject to examination by the tax authorities for five years from the date of filing.

***Earnings per Share***

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share" ("ASC 260"). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period using the two-class method. Under the two-class method, net income is allocated between Ordinary Shares and other participating securities based on their participating rights. Diluted EPS presents the dilutive effect on a per share basis of potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2024 and 2025, there were no dilutive shares.

***Foreign currency***

The Group's reporting currency is Renminbi ("RMB"). The functional currency of the Company and the Group's entities incorporated in the Cayman Islands ("Cayman"), and Hong Kong ("HK") is the Hong Kong dollar ("HKD"). The functional currency of the Group's PRC subsidiaries is the RMB.

Monetary assets and liabilities denominated in currencies other than the functional currency are translated into the functional currency at the rates of exchange ruling at the balance sheet date. Transactions in currencies other than the functional currency are measured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Translation gains and losses are recognized in the combined and consolidated statements of comprehensive loss.

The Group reporting currency is Renminbi ("RMB"). For entities within the Group that have a functional currency other than the reporting currency, assets and liabilities are translated from each entity's functional currency to the reporting currency at the exchange rates in effect on the balance sheet date. Equity amounts are translated at historical exchange rates. Revenues, expenses, gains and losses are translated using the average rates for the year. Translation adjustments are reported as cumulative translation adjustments and are shown as a component of other comprehensive income in the statements of comprehensive income and the consolidated statements of changes in equity.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Convenience Translation into United States Dollars***

Translations of balances in the consolidated balance sheets, consolidated statements of income and consolidated statements of cash flows from RMB into USD (or "$") for the year ended December 31, 2025 are solely for the convenience of the reader and were calculated at the rate of $1.00 = RMB6.9931, the exchange rate set forth in the H.10 statistical release of the Federal Reserve Board on December 31, 2025. No representation is made that the RMB amounts represent or could have been, or could be, converted, realized or settled into $ at that rate, or at any other rate.

***Segment reporting***

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The Group adopted ASU 2023-07 on January 1, 2024.

The Group's Chief Executive Officer or chief operating decision-maker ("CODM") reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Group as a whole and hence, the Group's CODM has determined the Group has one reportable segment and the Group operates and manages its business in the PRC as a single segment, which results in no changes to the reporting of our or presentation the Group's consolidated financial statements. As the Group's long-lived assets are substantially all located in the PRC and substantially all of the Group's revenues are derived from within the PRC, no geographical segments are presented.

***Concentrations of risks***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; a. Concentration of credit risk

Assets that potentially subject the Group to a significant concentration of credit risk primarily consist of cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts at the balance sheet dates. As of December 31, 2024 and 2025, the aggregate amount of cash and restricted cash of RMB45,982 and RMB47,088, respectively, was held at major financial institutions in mainland, PRC. The Group believes that no significant credit risk exists as all of the Group's cash and cash equivalents are held with PRC financial institutions that the Group's management believes to be high credit quality. The Group conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Group establishes an accounting policy to provide for allowance for doubtful accounts based on the individual customer's and supplier's financial condition, credit history, and the current economic conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; b. Significant customers

For the year ended December 31, 2024, two customers accounted for approximately 16% and 12% of the Group's total revenues, respectively. For the year ended December 31, 2025, one customer accounted for approximately 12% of the Group's total revenues. As of December 31, 2024, no customer accounted for more than 10% of the Group's accounts receivable. As of December 31, 2025, two customers accounted for approximately 18% and 12% of the Group's accounts receivable, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; c. Significant suppliers

For the year ended December 31, 2024, no supplier accounted for more than 10% of the Group's total purchases. For the year ended December 31, 2025, two suppliers accounted for approximately 13% and 10% of the Group's total purchases, respectively. As of December 31, 2024 and 2025, no supplier accounted for more than 10% of the Group's total accounts payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; d. Foreign currency risk

A majority of the Group's expense transactions are denominated in RMB and a significant portion of the Group's assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by the People's Bank of China ("PBOC"). Remittances in currencies other than RMB by subsidiaries in China must be processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in order to affect the remittance.

It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the RMB and the U.S. dollar in the future. The change in the value of the RMB relative to the U.S. dollar may affect the Group's financial results reported in the U.S. dollar terms without giving effect to any underlying changes in the Group's business or results of operations. Currently, the Group's assets, liabilities, revenues and costs are denominated in RMB. To the extent that the Group needs to convert U.S. dollars into RMB for capital expenditures and working capital and other business purposes, appreciation of RMB against U.S. dollar would have an adverse effect on the RMB amount the Group would receive from the conversion. Conversely, if the Group decides to convert RMB into U.S. dollar for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollar against RMB would have a negative effect on the U.S. dollar amount available to the Group.

***Recent Accounting Pronouncements***

The Group considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

<u>Recently adopted accounting pronouncements</u>

In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"), which requires disclosure of significant segment expenses and other segment items on an annual and interim basis under ASC 280. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. Early adoption is permitted and the amendments in this ASU should be applied on a retrospective basis to all periods presented. The Company adopted this ASU on January 1, 2024. The adoption of this ASU did not have significant impact on the Group's financial statements.

In December 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"). This ASU requires that public business entities must annually "(1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by the applicable statutory income tax rate)." A public entity should apply the amendments in ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company adopted this ASU on January 1, 2025. The adoption of this ASU did not have significant impact on the Group's financial statements.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)**

***Recent Accounting Pronouncements (cont.)***

On March 21, 2024, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update No. 2024-01 ("ASU 2024-01"), which clarifies how an entity determines whether a profits interest or similar award is (1) within the scope of ASC 718 or (2) not a share-based payment arrangement and therefore within the scope of other guidance. The guidance in ASU 2024-01 applies to all entities that issue profits interest awards as compensation to employees or nonemployees in exchange for goods or services. ASU 2024-01 is effective for public business entities for annual periods beginning after December 15, 2024, including interim periods within those periods. The Company adopted this ASU on January 1, 2025. The adoption of this ASU did not have significant impact on the Group's financial statements.

<u>Recently issued accounting pronouncements not yet adopted</u>

In November 2024, the FASB issued Accounting Standards Update 2024-03, *Income Statement*—*Reporting Comprehensive Income*—*Expense Disaggregation Disclosures (Subtopic 220-40)* ("ASU 2024-03"). The objective of ASU 2024-03 is to improve disclosures about a public entity's expenses, primarily through additional disaggregation of income statement expenses. In January 2025, the FASB further clarified the effective date of ASU 2024-03 with the issuance of Accounting Standards Update 2025-01, *Income Statement* — *Reporting Comprehensive Income* — *Expense Disaggregation Disclosures (Subtopic 220-40)* ("ASU 2025-01"). ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and may be applied either on a prospective or retrospective basis. The Group is currently assessing the impact this standard will have on the Group's consolidated financial statements

In May 2025, the FASB issued ASU 2025-03, Business Combinations (Topic 805) and Consolidation (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity. ASU 2025-03 clarifies the guidance to determine the accounting acquirer in a business combination that is effected primarily by exchanging equity interests, when the legal acquiree is a variable interest entity ("VIE") that meets the definition of a business. ASU 2025-03 requires entities to consider the same factors in ASC 805, Business Combinations, required for determining which entity is the accounting acquirer in other acquisition transactions. ASU 2025-03 is effective for the Company's annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-03 is required to be applied on a prospective basis to any acquisition transaction that occurs after the initial application date. The Group is currently assessing the impact this standard will have on the Group's consolidated financial statements.

In July 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue Recognition. Under the practical expedient, entities may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company's annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Group is currently assessing the impact this standard will have on the Group's consolidated financial statements.

In December 2025, the FASB issued ASU 2025-10, Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities to establish authoritative guidance on the accounting for government grants received by business entities. This update is effective beginning with the Company's 2029 fiscal year annual reporting period, with early adoption permitted. The Group is currently evaluating the impact that the adoption of this standard will have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements. ASU 2025-12 makes thirty-three incremental improvements to generally accepted accounting principles. ASU 2025-12 is effective for all entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual reporting periods. The Group is currently evaluating the impact of ASU 2025-12 on its financial statements and related disclosures.

The Group does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Group's consolidated balance sheets, statements of operations and comprehensive loss and statements of cash flows.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 3 — ACCOUNTS RECEIVABLE, NET**

Accounts receivable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Accounts receivable | 804877 | 220004 |
| Less: allowance for credit losses | (4951) | (3567) |
| Total accounts receivable, net | 799926 | 216437 |
| Less: accounts receivable-related parties | (44635) | (35681) |
| Less: long term accounts receivable-a related party | - | (3563) |
| **Accounts receivable, net** | **755291** | **177193** |

---

Allowance for credit losses movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Beginning |  | (4951) |
| (Provision for) reversal of credit loss | (4951) | 1263 |
| Write off | - | 121 |
| **Ending balance** | **(4951)** | **(3567)** |

---

**Note 4 — INVENTORIES**

Inventories consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2025** | **December 31, 2025** |
|  | **RMB** | **RMB** | **RMB** | **RMB** |
| Finished goods | | 35,031 | | 7,102 |
| **Inventories** | | **35,031** | | **7,102** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 5 — ACQUISITION AND DIVESTITURE**

**(a) <u>Acquisitions</u>**

For the year ended December 31, 2024, the Group completed four acquisitions of waste collection and recycling business, which are complementary to the Group's existing operations and fit the Group's growth strategy. The Group expects these acquired businesses to contribute towards the achievement of the Company's expansion strategy. These acquisitions were accounted for as business combinations in accordance with ASC 805. These acquisitions are not material to the Group's results of operations, individually or in the aggregate. The results of operations of the acquired businesses are reflected in the Group's consolidated financial statements from the Acquisition Date. The cash consideration was not transferred on the acquisition date for each of these acquisitions due to the fact that these acquisitions are required to complete foreign direct investment fund registration with local government in) the PRC prior to the transfer of cash consideration. The related registration and the settlement of the consideration are expected to be completed before December 31, 2026, because the Company's Foreign Direct Investment Account has not been set up pending on regulatory approval process. The minority shareholders are unable to legally rescind these agreements at any time prior to receipt of cash settlement.

While the Group uses its best estimates and assumptions as a part of the purchase price allocation process with assistance of an independent valuation firm to accurately value assets acquired and liabilities assumed at the acquisition date, the Group's estimates are inherently uncertain.

**(i) Acquisition of Jingchuang Metal**

On November 1, 2024, the Group consummated an acquisition of 51% equity interest in Jingchuang Metal with its wholly owned subsidiary, Xinshengtai (Jiangxi) (formerly known as Jingchuang Scrapped Vehicle) from its original shareholders for a cash consideration of RMB10,200, which was not paid and outstanding as of December 31, 2024 and 2025 due to the process of the foreign direct investment fund registration with local government. The related registration and the settlement of the consideration are expected to be completed before December 31, 2026, because the Company's Foreign Direct Investment Account has not been set up due to the approval process. The historical consolidated operating results of Jingchuang Metal were not significant to the Group. The acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

---

| | |
|:---|:---|
|  | **Amount** |
|  | **RMB** |
| Cash | 516 |
| Accounts receivable, net | 247754 |
| Prepaid expenses and other current assets | 138507 |
| Property and equipment, net | 39686 |
| Land use right | 7197 |
| Goodwill | 364 |
| Total assets | 434024 |
| Current liabilities | (414024) |
| Total liabilities | (414024) |
| 49% Equity Value with non-controlling interests | (9800) |
| **Total consideration** | **10200** |

---

Jingchuang Metal's revenue and net loss included in the Group's consolidated financial statements of operations and comprehensive loss since date of acquisition through December 31, 2024, were RMB390,178 and RMB348, respectively.

Supplemental pro forma information (unaudited)

The unaudited pro forma information summarizes the results of operations of the Group for the years ended 2024 assuming that the acquisition of Jingchuang Metal occurred as of January 1, 2024. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results:

---

| | |
|:---|:---|
|  | **For the year ended** <br> **December 31, 2024**  |
|  | **RMB** |
|  | **(unaudited)** |
| Pro forma revenue | 5519899 |
| Pro forma income (loss) | (25675) |

---

(ii) **Acquisition of Qi Hong**

On October 31, 2024, the Group consummated the acquisition of the 51% equity interest in Qi Hong from its original shareholders for a cash consideration of RMB173, which was not paid and outstanding as of December 31, 2024 and 2025. The related registration and the settlement of the consideration are expected to be completed before December 31, 2026, because the Company's Foreign Direct Investment Account had not been set up due to the approval process. The historical consolidated operating results of Qi Hong were not significant to the Group. The acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

---

| | |
|:---|:---|
|  | **Amount** |
|  | **RMB** |
| Cash | 250 |
| Accounts receivable, net | 25255 |
| Prepaid expenses and other current assets | 727 |
| Goodwill | 483 |
| Total assets | 26715 |
| Current liabilities | (26376) |
| Total liabilities | (26376) |
| 49% Equity Value with non-controlling interests | (166) |
| **Total consideration** | **173** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 5 — ACQUISITION- (cont.)**

(iii) **Acquisition of Mingdi**

On October 30, 2024, the Group consummated the acquisition of the 51% equity interest in Jiujiang Mingdi Environmental Protection Technology Co., Ltd ("Mingdi") from its original shareholders for a cash consideration of RMB408, which was not paid and outstanding as of December 31, 2024 and 2025 due to the process of the foreign direct investment fund registration with local government. The related registration and the settlement of the consideration are expected to be completed before December 31, 2026, because the Company's Foreign Direct Investment Account had not been set up due to the approval process. The historical consolidated operating results of Mingdi were not significant to the Group. The acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

---

| | |
|:---|:---|
|  | **Amount** |
|  | **RMB** |
| Cash | 6796 |
| Accounts receivable, net | 132779 |
| Prepaid expenses and other current assets | 3101 |
| Right-of-use assets-operating lease | 34 |
| Property and equipment, net | 17 |
| Total assets | 142727 |
| Current liabilities | (141064) |
| Total liabilities | (141064) |
| 49% Equity Value with non-controlling interests | (392) |
| Bargain purchase gain | (863) |
| **Total consideration** | **408** |

---

Mingdi's revenue and net income included in the Group's consolidated financial statements of operations and comprehensive income (loss) since date of acquisition through December 31, 2024, were RMB496,972 and RMB1,525, respectively.

Supplemental pro forma information (unaudited)

The following unaudited pro forma information summarizes the results of operations of the Group for the years ended December 31, 2024 assuming that the acquisition of Mingdi occurred as of January 1, 2024. The following pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisitions been completed at the beginning of the periods as indicated, nor is it indicative of future operating results:

---

| | |
|:---|:---|
|  | **For the year ended** <br> **December 31, 2024**  |
|  | **RMB** |
|  | **(unaudited)** |
| Pro forma revenue | 4986809 |
| Pro forma income (loss) | (29375) |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 5 — ACQUISITION- (cont.)**

(iv) **Acquisition of Hebei Jushang**

On August 28, 2024, the Group consummated the acquisition of the 51% equity interest in Hebei Jushang from its original shareholders for a cash consideration of RMB4,542. which was not paid and outstanding as of December 31, 2024 and 2025 due to the process of the foreign direct investment fund registration with local government. The related registration and the settlement of the consideration are expected to be completed before December 31, 2026, because the company's Foreign Direct Investment Account had not been set up due to the approval process. The historical consolidated operating results of Hebei Jushang were not significant to the Group. The acquisition was accounted for as business combination in accordance with ASC 805. Acquisition-related costs incurred for the acquisitions are not material. The following table summarizes the fair value of the identifiable assets acquired and liabilities assumed at the acquisition date, which represents the net purchase price allocation at the date of the acquisition based on a valuation performed by an independent valuation firm engaged by the Company.

---

| | |
|:---|:---|
|  | **Amount** |
|  | **RMB** |
| Cash | 190 |
| Accounts receivable, net | 1208 |
| Prepaid expenses and other current assets | 7003 |
| Long term investment | 880 |
| Property and equipment, net | 2400 |
| Goodwill | 369 |
| Total assets | 12050 |
| Current liabilities | (3144) |
| Total liabilities | (3144) |
| 49% Equity Value with non-controlling interests | (4364) |
| **Total consideration** | **4542** |

---

**(b) <u>Divestiture of subsidiaries</u>**

The Group might, from time to time, divest subsidiaries when their operations and financial performance no longer align with the Group's growth strategy.

On October 12, 2024, the Group divested its subsidiary Shandong Jinyou Metal Technology Co. Ltd to a third party for consideration of RMB1,800 and recognized a gain from disposal of amounted to RMB61 for the year ended December 31, 2024.

On May 23, 2025, the Group divested Xinshengtai (Jiangxi) Environmental Technology Co., Ltd. (formerly named Jiangxi Jingchuang scrapped vehicle recycling and dismantling Co., LTD) to a third party for consideration of nil and recognized a gain from disposal of amounted to RMB233 for the year ended December 31, 2025.

All above divestitures do not represent a strategic shift that will have a major effect on the Group's operations and financial results and, therefore, did not qualify for presentation as a discontinued operation.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 6 —Advance to suppliers, net**

Advance to suppliers consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Advance to suppliers for material purchase | 74861 | 38580 |
| Less: allowance for advance to suppliers | - | (1817) |
| **Subtotal** | **74861** | **36763** |
| Less: advance to suppliers-related parties | (500) | (4503) |
| **Advance to suppliers, net** | **74361** | **32260** |

---

Allowance for credit losses movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Beginning |  |  |
| Provision for credit loss |  | (1817) |
| **Ending balance** |  | **(1817)** |

---

**Note 7 — OTHER RECEIVABLE AND OTHER ASSETS, NET**

Other receivable and other current assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Government grants receivable | 63509 | 26705 |
| Security deposits | 16604 | 9017 |
| Others receivable | 2752 | 4095 |
| Prepaid promotion expenses | 91 |  |
| Prepaid taxes |  | 10153 |
| Prepayments for office improvement |  | 821 |
| Loans to third parties <sup>(1)</sup> | 16205 | 35212 |
| **Subtotal** | **99161** | **86003** |
| Less: Other receivable and other assets-non-current <sup>(2)</sup> | (6008) | (3887) |
| **Other receivable and other assets–current** | **93153** | **82116** |

---

(1) For
 the years ended December 31, 2024 and 2025, the Group provided unsecured short-term loans to various third parties in the waste and
 recycling business. The outstanding principal and interest amounted to RMB16,205 and RMB35,212 as of December 31, 2024 and 2025,
 respectively. The total interest income recognized on these loans was RMB179 and RMB181 for the years ended December 31, 2024 and
 2025, respectively. The movement of loans was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Beginning balance | 28360 | 16205 |
| Additions | 45905 | 74111 |
| Collections | (58060) | (54985) |
| Interest |  | 181 |
| Divestiture | - | (300) |
| **Ending balance** | **16205** | **35212** |

---

(2) On
 August 18, 2025, the Group entered into an agreement to acquire 14.3882% of Hubei Jinke's equity interests for RMB18,623. The
 Group needs to pay a deposit of RMB5,587, and the remaining balance must be paid by July 30, 2026. As of December 31, 2025, the Group
 has paid RMB3,887.

For the years ended December 31, 2024 and 2025, no allowance was recorded for other receivable and other assets.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 8 — PROPERTY AND EQUIPMENT, NET**

Property, plant and equipment, net, consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Building | 34863 | 35500 |
| Machinery and equipment | 13019 | 12013 |
| Transportation vehicles | 2578 | 2372 |
| Office and electronic equipment | 1305 | 2608 |
| **Subtotal** | **51765** | **52493** |
| Less: accumulated depreciation | (7417) | (10361) |
| **Property and equipment, net** | **44348** | **42132** |

---

Depreciation expense was RMB2,205 and RMB2,351 for the years ended December 31, 2024 and 2025, respectively. As of December 31, 2025, the Company pledged buildings to secure bank borrowings to the Company as disclosed in Note 14.

**Note 9 — INTANGIBLE ASSETS, NET**

The Group states intangible assets at cost less accumulated amortization. Amortization expenses were RMB104 and RMB255 for the years ended December 31, 2024 and 2025, respectively.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Software | 30 | 137 |
| Patents | 20 | 20 |
| Copyrights | 663 | 663 |
| Land use rights | 7562 | 7562 |
| Less: accumulated amortization | (830) | (1085) |
| **Intangible assets, net** | **7445** | **7297** |

---

The estimated future amortization expenses are as follows:

---

| | |
|:---|:---|
| **Twelve months ending December 31,** | **Estimated Amortization Expense** |
|  | **RMB** |
| 2026 | 255 |
| 2027 | 255 |
| 2028 | 220 |
| 2029 | 151 |
| 2030 | 151 |
| thereafter | 6265 |
| **Total** | **7297** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 10 — LONG TERM INVESTMENT**

---

| | | | |
|:---|:---|:---|:---|
|  | **Equity <br> investments <br> accounted <br> for using the <br> equity <br> method (i)** | **Equity investments without readily determinable fair values (ii)** | **Total** |
|  | **RMB** | **RMB** | **RMB** |
| **Balance as of December 31, 2023** | **9599** |  | **9599** |
| Additions | 7015 |  | 7015 |
| Equity investment acquired through business combination | 880 |  | 880 |
| Share of loss in equity method investee | (2216) |  | (2216) |
| Impairment | (5250) |  | (5250) |
| **Balance as of December 31, 2024** | **10028** |  | **10028** |
| Share of loss in equity method investee | (1767) |  | (1767) |
| **Balance as of December 31, 2025** | **8261** |  | **8261** |

---

(i) As
 of December 31, 2024 and 2025 the Group owns 35% equity interest in ABGreen Foshan. The Group
 accounted for such investments using equity method, because the Group has significant influence
 but does not own a majority equity interest or otherwise control over the equity investee.
 Under the equity method, the Group adjusts the carrying amount of the investment and recognizes
 investment income or loss for its share of the earnings or loss of the investee after the
 date of investment. When the Group's share of losses in the equity investee equals
 or exceeds its interest in the equity investee, the Group does not recognize further losses,
 unless the Group has incurred obligations or made payments or guarantees on behalf of the
 equity investee. For the years ended December 31, 2024 and 2025, the investment loss in ABGreen
 Foshan was RMB2 and RMB2, respectively. As
 of December 31, 2024 and 2025, the Group also owns 40% equity interests in Shanxi ABGreen Environmental Protection Technology Co.,
 Ltd. ("ABGreen Shanxi") with original investment amount of RMB23 and owns 36% equity interests in Changsha ABGreen Environmental
 Protection Technology Co., Ltd. ("ABGreen Changsha") with original investment amount of RMB31. The other shareholders
 of these two investees are independent third parties. The Group accounted for such investments using equity method, because the Group
 has significant influence but does not own a majority equity interest or otherwise control over the equity investees. Prior to January
 1, 2021, the Group's investments in these two investees were reduced to nil, because the Group's share of historical
 losses exceeded the carrying value of its investments and the Group does not have any guaranteed obligations or commitments to provide
 further financial support for these two investees. As a result, the Group discontinued applying the equity method to recognize any
 losses incurred in excess of its total investments in accordance with ASC 323-10-35-20. As
 of December 31, 2024 and 2025, the Group with an independent investor incorporated Guangzhou Boolv Xian Egg Environmental Protection
 Recycling Technology Co., Ltd. ("ABGreen Guangzhou") and owns 49% equity interest in ABGreen Guangzhou. The Group's
 commitment on the capital contribution to ABGreen Guangzhou is RMB49. The Group contributed its committed portion of registered capital
 RMB15 by December 31, 2025. The Group accounted for such investments using equity method, because the Group has significant influence
 but does not own a majority equity interest or otherwise control over the equity investee. For the year ended December 31, 2024 and
 2025, the investment loss in ABGreen Guangzhou was RMB3 and RMB2.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 10 — LONG TERM INVESTMENT (cont.)**

(i) As
 of December 31, 2024 and 2025, the Group owns 8.5% equity interest in Hubei Jinke Environmental
 Protection Technology Co., Ltd. ("Hubei Jinke"), Mr. Tang Baitong, the Group's
 Chief Executive Officer and Chairman of the Board of Directors, joined the board of directors
 of Hubei Jinke. Since the representation on the board of directors indicates ability to exercise
 significant influence over Hubei Jinke, the Group accounted such investments under equity
 method. For the years ended December 31, 2024 and 2025, investment loss in Hubei Jinke were
 RMB1,904 and RMB1,736, respectively. Since Hubei Jinke incurred continuous losses, management
 determined the decline in value is other than temporary. Accordingly, the Group recorded
 RMB5,250 and nil impairment loss for the investment in Hubei Jinke for the year ended December
 31, 2024 and 2025. On
 May 31, 2024, the Group invested RMB7,000 in Henan Zhongyuan Recycling Science and Technology Co., LTD ("Henan ZYR")
 for 35% of its equity interest. The Group accounted for such investments using equity method, because the Group has significant influence
 but does not own a majority equity interest or otherwise control over the equity investee. For the years ended December 31, 2024
 and 2025, investment loss in Henan ZYR were RMB267 and RMB30, respectively. On
 September 23, 2024, Certain third-party investors and the Group incorporated Shenzhen Shouwangzhe Technology Co., Ltd. ("Shenzhen
 SWZ") and the Group owns 20% equity interest of Shenzhen SWZ. The Group's commitment on the capital contribution to Shenzhen
 SWZ is RMB250, which was not contributed by the Group by December 31, 2025 and the Group expected to contribute related capital by
 December 31, 2026. The Group accounted for such investments using equity method, because the Group has significant influence but
 does not own a majority equity interest or otherwise control over the equity investee. For the year ended December 31, 2024 and 2025,
 the investment loss in Shenzhen SWZ was nil. On
 April 6, 2024, the Group invested in Jubang (Hebei) New material Technology Co., LTD ("Jubang (Hebei)) and owns 30% equity
 interest in Jubang (Hebei). The Group's commitment on the capital contribution to Henan Jubang (Hebei) is RMB900 and the Group
 contributed RMB880 for the year ended December 31, 2024 and expected to contribute the remaining portion of capital by December 31,
 2025. The Group accounted for such investments using equity method, because the Group has significant influence but does not own
 a majority equity interest or otherwise control over the equity investee. For the year ended December 31, 2024, investment loss in
 Jubang (Hebei) were RMB40. For the year ended December 31, 2025, investment income in Jubang (Hebei) were RMB4.

(ii) As
 of the year ended December 31, 2024 and 2025, the Group owns its 15% equity interest in Zhongshan ABGreen Environmental Protection
 Technology Co., Ltd. ("ABGreen Zhongshan"). Since such investment
 does not have readily determinable fair values, the Group elected to account for using alternative measurement.

The Group continually reviews its investments in equity investees under equity method and under the Measurement Alternative to determine whether a decline in fair value to below the carrying value is other-than-temporary. The primary factors the Group considers in its determination are the duration and severity of the decline in fair value, financial and business performance, cash position and, recent financing rounds. If the decline in fair value is deemed to be other-than-temporary, the carrying value of the equity investee is written down to fair value. For the years ended December 31, 2024 and 2025, the Group recognized impairment charge on long term investments of RMB5,250 and nil, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 11 — ACCRUED EXPENSES AND OTHER LIABILITIES**

Accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Fulfillment expenses payable | 8322 |  |
| Promotion fee payable | 849 | 133 |
| Wages and welfare payable | 1240 | 1363 |
| Security deposit payable | 2883 | 3163 |
| Building improvement payable | 6622 | 2348 |
| Others | 1045 | 1532 |
| **Accrued expenses and other liabilities** | **20961** | **8539** |

---

**Note 12 —LOAN PAYABLE TO THIRD PARTIES**

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Beginning balance | 53137 | 59965 |
| Loan payable to third party acquired through business combination | 13810 |  |
| Additions | 64522 | 88103 |
| Repayments | (71693) | (106098) |
| Interest expense | 189 | 403 |
| Divestiture | - | (1255) |
| **Ending balance** | **59965** | **41118** |
| Less: Loan payable to third party- non-current portion | (5279) | (5416) |
| **Loan payable to third party – current portion** | **54686** | **35702** |

---

As of January 1, 2024, the balance of loan payable to third parties was RMB53,137. For the year ended December 31, 2024, the Group obtained working capital loans in aggregate of approximately RMB64,522 from several independent third parties, which were unsecured, and due on demand. For the years ended December 31, 2024, the Group repaid RMB71,693. After partial repayments during 2024, the balance of loan payable to third parties was RMB59,965 as of December 31, 2024.

For the year ended December 31, 2025, the Group obtained working capital loans in aggregate of approximately RMB88,103 from several independent third parties, which were unsecured, and due on demand. For the year ended December 31, 2025, the Group repaid RMB106,098. After partial repayments during 2025, the balance of loan payable to third parties was RMB41,118 as of December 31, 2025. Subsequently up to the report date, the Group repaid RMB13,616.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 13 —RIGHT-OF-USE ASSETS**

The Group has several operating leases for sorting centers, warehouse and offices. The Group's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Total lease expense for the years ended December 31, 2024 and 2025 amounted to RMB1,394 and RMB1,590, respectively.

Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,**<br> **2024** | **As of December 31,**<br> **2025** |
|  | **RMB** | **RMB** |
| Right-of-use assets, net | 8481 | 4407 |
| Operating lease liabilities-current | 1529 | 1352 |
| Operating lease liabilities-non-current | 6981 | 2754 |
| **Total operating lease liabilities** | **8510** | **4106** |

---

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2025:

---

| | |
|:---|:---|
| Remaining lease term and discount rate: |  |
| Weighted average remaining lease term (years) | 3.55 years |
| Weighted average discount rate | 3.60% |

---

The following is a schedule of maturities of lease liabilities as of December 31, 2025:

---

| | |
|:---|:---|
| Twelve months ending December 31, | **RMB** |
| 2026 | 1471 |
| 2027 | 1421 |
| 2028 | 727 |
| 2029 | 727 |
| 2030 | - |
| Total future minimum lease payments | 4346 |
| Less: imputed interest | (240) |
| **Present value of lease liabilities** | **4106** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 14 —BANK LOANS**

Bank loan consists of the following loans:

---

| | | |
|:---|:---|:---|
|  | **December 31,** <br> **2024**  | **December 31,** <br> **2025**  |
|  | **RMB** | **RMB** |
| **WeBank** |  |  |
| Short-term loans with annual interests ranging from 11.34% to 15.34% and maturity dates ranging from September 14, 2025 to September 26, 2026<sup>(i) and (ii)</sup>. Subsequently, the loan was repaid in RMB 271. | 3474 | 814 |
| **China Construction Bank** |  |  |
| Short term loans with annual interests ranging from 3.05% to 3.95% and maturity dates ranging from March 7, 2025 to November 29, 2026 <sup>(ii) and (iv) and (v)</sup>. Subsequently, the RMB 2,000 loan was partially repaid by RMB 60, with the remaining RMB1,940 renewed to March 20, 2027, at a revised interest rate of 2.75%. Concurrently, the separate RMB750 loan was fully renewed to March 2, 2027, with its interest rate adjusted to 3.30%. | 9688 | 5423 |
| **Industrial and Commercial Bank** |  |  |
| Short term loans with annual interests ranging from 3.30% to 3.50% and maturity dates ranging from December 5, 2025 to July 27, 2026<sup>(v) and (xii)</sup>. | 82200 | 69040 |
| **Tianjin Jincheng Bank** |  |  |
| Loan with annual interest rate of 11.52% and maturity date on September 1, 2025<sup>(ii)</sup>. | 1125 |  |
| **BMW Financial Services** |  |  |
| Loan with annual interest rate of 6.88% and maturity date on May 27, 2025 <sup>(vi)</sup>. | 63 |  |
| **Agricultural Bank of China** |  |  |
| Short term loans with annual interests ranging from 3.55% to 4.15% and maturity dates ranging from March 12, 2025 to March 19, 2026<sup>(iv) and (v)</sup>. Subsequently, the RMB 9,900 loan was renewed to March 8, 2027, at a revised interest rate of 3.20%. Concurrently, the separate RMB 586 loan was renewed to March 4, 2027, with its interest rate adjusted to 3.60%. | 10486 | 10486 |
| **Bank of Beijing** |  |  |
| Loan with annual interest rate of 4.15% and maturity date on November 27, 2026<sup>(x)</sup>. | 8000 | 8000 |
| **Bank of China** |  |  |
| Short term loans with annual interests ranging from 2.95% to 3.60% and maturity dates ranging from June 7, 2025 to September 8, 2026<sup>(iii) and (viii)</sup>. | 15000 | 15000 |
| **Bank of Jiujiang** |  |  |
| Short term loans with annual interests ranging from 3.88% to 4.31% and maturity dates ranging from March 21, 2025 to April 15, 2026 <sup>(iv)</sup>. Subsequently, the RMB 10,000 loan was renewed to April 29, 2027, with the interest rate revised to 3.69%. | 5000 | 10000 |
| **Postal Savings Bank of China** |  |  |
| Short term loans with annual interests ranging from 4.20% to 4.60% and maturity dates ranging from January 5, 2025 to December 15, 2026<sup>(vii) and (xii)</sup>. | 5000 | 13247 |
| **Zhongyuan Bank** |  |  |
| Short term loans with annual interests ranging from 3.30% to 4.35% and maturity dates ranging from January 21, 2025 to March 28, 2026<sup>(vi) and (xi)</sup>. Subsequently, the loan was repaid in March 2026. | 2000 | 5000 |
| **Bank of Shanghai** |  |  |
| Short term loans with annual interests of 3.30% and maturity dates ranging from June 12, 2025 to June 26, 2025<sup>(xii)</sup>. | 8515 |  |
| **Rural Commercial Bank** |  |  |
| Loans with annual interests ranging from 4.03% to 5.50% and maturity dates ranging from February 8, 2026 to March 27, 2027<sup>(x)</sup>. Subsequently, the loan was repaid in RMB5,000. |  | 9500 |
| **Ping An Bank** |  |  |
| Short term loan with annual interest rate of 4.00% and maturity date on September 28, 2026<sup>(ii)</sup>. |  | 3000 |
| **Bank of Communications** |  |  |
| Short term loan with annual interest rate of 3.50% and maturity date on December 1, 2026<sup>(ii)</sup>. Subsequently, the loan was repaid RMB100 in April 2026. |  | 8000 |
| **China Merchants Bank** |  |  |
| Short term loan from factoring notes receivable with recourse<sup>(xii)</sup>. | - | 35480 |
| **Total** | **150551** | **192990** |
| **Less: Bank loans–current portion** | (148651) | (188490) |
| **Bank loans–non-current portion** | **1900** | **4500** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 14 —BANK LOANS (cont.)**

(i) The repayments were guaranteed by Mr. Haibing Ling, the Chief Executive
 Officer of ABGreen Fuyang.

(ii) The repayments were guaranteed by Mr. Baitong Tang, or Mr. Baitong
 Tang and his wife, the Group's Chief Executive Officer and Chairman of the Board of Directors.

(iii) The repayments were jointly guaranteed by Mr. Baitong Tang, Zhoukou
 Senbo, and ABGreen Fuyang.

(iv) The repayments of loan were guaranteed by a third party Jiujiang City Financing Guarantee Group Co., Ltd. ("Jiujiang Financing"), Mr. Qi Yu and other related
 parties.

(v) The repayments of loan were guaranteed by Mr. Xingpeng Yue, or Mr.
 Xingpeng Yue and a third party Shijiazhuang United Venture Financing Guarantee Co., Ltd., the Chief Executive Officer of
 Jushang.

(vi) The repayments of loan were guaranteed by Mr. Peng Du and Ms. Qingqing
 Zhang.

(vii) The repayment of loan was guaranteed by Zhumadian City Small and
 Medium Enterprises Financing Guarantee Co., Ltd. ("SME") and other three related parties.

(viii) The repayments of loan were guaranteed by a third party Jiujiang
 City Financing Guarantee Group Co., Ltd. ("Jiujiang Financing"), Mr. Qi Yu and other related parties, The Company pledged
 the fixed assets for the bank loan.

(x) The repayments of loan were guaranteed by Mr. Qi Yu and other related
 parties.

(xi) The repayments of loan were guaranteed by Mr. Peng Du, Ms. Qingqing
 Zhang, other two related parties.

(xii) As of December 31, 2024, the Group discounted
 bank acceptance receivable totaling RMB80,200 to Industrial and Commercial Bank with recourse and discounted bank acceptance receivable
 totaling RMB8,515 to Bank of Shanghai with recourse. Since the Group retained all risk of the discounted notes receivable, the cash
 proceeds are recognized as a short-term loan as of December 31, 2024. Such bank acceptance receivables were fully settled for the
 year ended December 31, 2025. As of December 31, 2025, the Group discounted
 bank acceptance receivable totaling RMB62,300 to Industrial and Commercial Bank with recourse and discounted bank acceptance receivable
 totaling RMB11,247 to Postal Savings Bank of China with recourse as well as discounted bank acceptance receivable totaling RMB35,480
 to China Merchants Bank with recourse. Since the Group retained all risk of the discounted notes receivable, the cash proceeds are
 recognized as a short-term loan as of December 31, 2025.

Interest expense was RMB1,664 and RMB2,471 for the years ended December 31, 2024 and 2025, respectively.

The carrying values of the Company's pledged assets to secure short-term borrowings by the Company are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31,<br> 2024** | **December 31,<br> 2024** | **December 31,<br> 2025** | **December 31,<br> 2025** |
|  |  | **RMB** |  | **RMB** |
|  Buildings, net |  | 34461 |  | 33813 |
|  Notes receivable |  | 88715 |  | 109027 |

---

The movement of bank loans are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Beginning balance | 15131 | 150551 |
| Loans of the acquired subsidiaries | 37597 |  |
| Additions | 115452 | 188988 |
| Repayments | (17629) | (56334) |
| Settlement maturing accounts receivable bills and short-term loans |  | (88715) |
| Divestiture | - | (1500) |
| **Ending balance** | **150551** | **192990** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 15 — RELATED PARTY TRANSACTIONS**

The Group records transactions with various related parties. These related party balances as of December 31, 2024 and 2025 and transactions for the years ended December 31, 2024 and 2025 are identified as follows:

**(1) Related parties with transactions and related party relationships**

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to the Group** |
| Mr. Baitong Tang | Chief Executive Officer and Chairman of the Board of Directors |
| Mr. Qi Yu | A minority shareholder of Jingchuang Metal |
| Ms. Meixia Zhang | A minority shareholder of Guagnxi Meijin |
| Ms. Hong Wang | Chief Executive Officer and Chairman of the Henan Jinyou |
| Ms. Xiangying Xiang | A minority shareholder of Mingdi |
| Mr. Renlu Dong | A minority shareholder of Hebei Jushang |
| Mr. Yueqiang Wang | A minority shareholder of ABGreen Henan |
| ABGreen Supply Chain Management (Beijing) Co., LTD ("ABGreen BJ") | Owned by a minority shareholder of the Group |
| Beijing ABGreen Reverse Supply Chain Co., LTD ("BJ ABGreen RSC") | An entity controlled by Mr. Baitong Tang |
| Shenzhen ABGreen Reverse Supply Chain Partnership (limited partnership) ("SZ ARSC(LP)") | An entity controlled by Mr. Baitong Tang |
| Henan Haiyue Metal Technology Co. LTD ("HNHY") | A minority shareholder of Jinyou Metal |
| Tianjiu Sharing Wisdom Enterprise Service Co. LTD ("Tianjiu") | A minority shareholder of CZTI Shenzhen |
| Hubei Jinke Environmental Protection Technology Co., LTD ("Hubei Jinke") | Mr. Baitong Tang has been a Board member of Hubei Jinke since September 12, 2023 |
| Shenqiu ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Shenqiu") | An entity controlled by Mr. Haibing Ling which was disposed on September 20, 2023 |
| Zhoukou Bolv Environmental Protection Technology Co. Ltd ("Zhoukou Bolv") | An entity controlled by Mr. Haibing Ling |
| Henan Zhongyuan Recycling Science and Technology Industrial Park Construction and Development Co., LTD ("Henan ZYR") | An entity 35% owned by Jinyou Metal |
| China Link (Shenzhen) Management Consulting Co., LTD ("China Link") | Owned by a minority shareholder of the Group |
| Henan Jiataihong environmental protection technology Co., LTD ("Henan Jiataihong Environmental") | An entity controlled by Henan ZYR |
| Shanghai Zhongyao City mining Industry Co., LTD ("Shanghai Zhongyao") | A minority shareholder of Qi Hong |
| Jiangxi New Difeng New Material Technology Co., LTD ("Jiangxi New Difeng") | An entity controlled by Mr. Qi Yu |
| Jiangxi Yu Innovation Material Technology Co., LTD ("Jiangxi Yuchuang") | An entity controlled by Mr. Qi Yu |
| Jiujiang Lichuang renewable resources Co., LTD ("Jiujiang Lichuang") | An entity controlled by Mr. Qi Yu |
| Jiujiang Xinchuang renewable resources Co., LTD ("Jiujiang Xinchuang") | An entity controlled by Mr. Qi Yu |
| Jiangxi Yachuang renewable resources Co., LTD ("Jiangxi Yachuang") | An entity controlled by Mr. Qi Yu |
| Gongqingcheng Yi An New material Co., LTD ("GQC Yi An") | An entity controlled by Mr. Qi Yu |
| Gongqingcheng Siyi New material Co., LTD ("GQC Siyi") | An entity controlled by Mr. Qi Yu |
| Gongqingcheng Yucan renewable resources Co., LTD ("GQC Yucan") | An entity controlled by Mr. Qi Yu |
| Jiujiang Chen An renewable resources Co., LTD ("Jiujiang Chen An") | An entity controlled by Mr. Qi Yu |
| Nanchang Lvshang renewable resources Co., LTD ("Nanchang Lvshang") | An entity controlled by Mr. Qi Yu |
| Xinshengtai (Jiangxi) Environmental Technology Co., Ltd. ("Xinshengtai (Jiangxi)") | Formerly named as Jiangxi Jingchuang Scrapped Vehicle Recycling and Dismantling Co., Ltd. ("Jingchuang Scrapped Vehicle"), an entity controlled by Jiangxi Jingchuang, disposed to Jiangxi New Difeng on May 28, 2025 |
| Henan Qingyu Environmental Protection Technology Co., Ltd. ("Henan Qingyu") | An entity controlled by Henan ZYR |
| Henan Wanyin Environmental Protection Technology Co., Ltd. ("Henan Wanyin") | An entity controlled by Henan ZYR |
| Henan Dinghan Renewable Resources Co., Ltd. ("Henan Dinghan") | An entity controlled by Henan ZYR |
| Jiangxi Runding Metal Materials Co., Ltd. ("Jiangxi Runding") | An entity controlled by Jiangxi New Difeng |
| Jiangxi Linghao New Materials Technology Co., Ltd. ("Jiangxi Linghao") | An entity controlled by Jiangxi New Difeng |
| Jiangxi Shengren New Materials Co., Ltd. ("Jiangxi Shengren") | An entity controlled by Jiangxi Run Ding |
| Jiangxi Yijiu New Materials Co., Ltd. ("Jiangxi Yijiu") | An entity controlled by Jiangxi Run Ding |
| Henan Yunji Environmental Protection Technology Co., Ltd. ("Henan Yunji") | An entity controlled by Mr. Yue Wang |
| Henan Chengrun Environmental Protection Technology Co., Ltd. ("Henan Chengrun") | An entity controlled by Mr. Yueqiang Wang |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 15 — RELATED PARTY TRANSACTIONS (cont.)**

**(2) Accounts receivable from related parties**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Hubei Jinke | 44395 | 38506 |
| Xinshengtai (Jiangxi) |  | 738 |
| ABGreen BJ | 240 | - |
| **Subtotal** | **44635** | **39244** |
| Less: long term accounts receivable-a related party | - | (3563) |
| **Total** | **44635** | **35681** |

---

For the year ended December 31, 2025, the Group sold waste household appliances to Hubei Jinke. Subsequently, the Group collected RMB6,804.

For the year ended December 31, 2025, the Group provided system services to Xinshengtai (Jiangxi). The balance was collected subsequently.

**(3) Advance to suppliers-related parties**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Jiangxi Yachuang <sup>(i)</sup> |  | 622 |
| Mr. Yueqiang Wang <sup>(i)</sup> |  | 1500 |
| Jiangxi Runding |  | 859 |
| Henan Chengrun <sup>(i)</sup> |  | 511 |
| Henan Yunji <sup>(i)</sup> |  | 511 |
| Zhoukou Bolv <sup>(ii)</sup> | 500 | 500 |
| **Total** | **500** | **4503** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) For the years ended December 31 2025, the Group made prepayments to purchase equipment and household waste from the above related parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) For the year ended December 31 2024, the Group made prepayments to purchase household waste from Zhoukou Bolv.

**(4) Account payable-related parties**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Henan Jiataihong Environmental |  | 22647 |
| Henan ZYR |  | 585 |
| Xinshengtai (Jiangxi) |  | 848 |
| Jiangxi Yuchuang |  | 159 |
| GQC Yi An | 36538 |  |
| Jiujiang Chen An | 26084 |  |
| Jiujiang Lichuang | 24199 |  |
| Jiujiang Xinchuang | 22681 |  |
| GQC Siyi | 22481 |  |
| GQC Yucan | 21973 |  |
| Nanchang Lvshang | 3331 | - |
| **Total** | **157287** | **24239** |

---

For the years ended December 31, 2024 and 2025, the Group purchased household waste from the above related parties.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 15 — RELATED PARTY TRANSACTIONS (cont.)**

**(5) Sales to and service provided for related parties**

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended<br> December 31,** | **For the Year Ended<br> December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Hubei Jinke | 134095 | 177828 |
| Xinshengtai (Jiangxi) |  | 14992 |
| ABGreen BJ | 226 | - |
| **Total** | **134321** | **192820** |

---

For the year ended December 31, 2024, the Group sold RMB134,095 household waste to Hubei Jinke, and provided system service of RMB226 to ABGreen BJ.

For the year ended December 31, 2025, the Group sold RMB177,828 and RMB14,992 household waste to Hubei Jinke and Xinshengtai (Jiangxi), respectively.

The sales to and service provided for related parties represented approximately 3% of the Group's total revenue for the years ended December 31, 2024 and 2025.

**(6) Purchase products and service from related parties**

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended December 31,** | **For the Year Ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Jiangxi Run Ding <sup>(i)</sup> |  | 730371 |
| Jiangxi Yachuang <sup>(i)</sup> | 19843 | 602392 |
| Jiangxi Linghao <sup>(i)</sup> |  | 198155 |
| Henan Jiataihong Environmental <sup>(i)</sup> |  | 156116 |
| Henan Qingyu <sup>(i)</sup> |  | 135121 |
| Henan Dinghan<sup>(i)</sup> |  | 95293 |
| Nanchang Lvshang <sup>(i)</sup> | 13716 | 70928 |
| Henan ZYR <sup>(i)</sup> | 498 | 60314 |
| Jiujiang Xinchuang <sup>(i)</sup> | 357966 | 53917 |
| Henan Wanyin <sup>(i)</sup> |  | 11560 |
| Xinshengtai (Jiangxi) <sup>(i)</sup> |  | 5468 |
| Jiangxi Yijiu <sup>(i)</sup> |  | 2963 |
| Jiangxi Shengren <sup>(i)</sup> |  | 702 |
| Jiangxi Yuchuang <sup>(i)</sup> | 992 | 324 |
| Jiujiang Lichuang <sup>(i)</sup> | 118721 | 264 |
| GQC Siyi <sup>(i)</sup> |  | 47 |
| Jiujiang Chen An <sup>(i)</sup> | 6440 |  |
| Tianjiu <sup>(ii)</sup> | 541 | - |
| **Total** | **518717** | **2123935** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) For
 the year ended December 31, 2024, the Group purchased household waste from the related parties in the amount of RMB518,176. For the
 years ended December 31, 2025, the Group purchased household waste from the related parties in the amount of RMB2,123,935.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) For
 the years ended December 31, 2024 and 2025, the Group incurred regional service cost to Tianjiu in the amount of RMB541 and nil,
 respectively.

For the years ended December 31, 2024 and 2025, the Group's products and service purchased from related parties, represented approximately 11% and 37% of the Group's total purchase, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 15 — RELATED PARTY TRANSACTIONS (cont.)**

**(7) Due from related parties**

As of December 31, 2024 and 2025, the balance due to related parties was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Henan ZYR <sup>(1)</sup> | 14700 | 1100 |
| HNHY <sup>(2)</sup> | 400 | 400 |
| Shanghai Zhongyao <sup>(3)</sup> | 2570 |  |
| Henan Jiataihong Environmental <sup>(4)</sup> | 1800 |  |
| Ms. Hong Wang <sup>(5)</sup> | 440 |  |
| Jiangxi New Difeng <sup>(6)</sup> | 300 |  |
| Jiangxi Yuchuang <sup>(7)</sup> | 205 |  |
| ABGreen Shenqiu <sup>(8)</sup> | 85 |  |
| Nanchang Lvshang <sup>(9)</sup> | - | 10200 |
| **Total** | **20500** | **11700** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) During
 May to December 31, 2024, the Group provided unsecured, interest-free loans to Henan ZYR in the amount of RMB68,300. After partial
 collection, the outstanding balance amounted to RMB14,700 as of December 31, 2024. For the year end December 31, 2025, the Group
 continued to provide loans of RMB7,700. After partial collection, the balance was RMB1,100 as of December 31, 2025.

(2) During
 February to December 31, 2024, the Group provided unsecured, interest-free loans to HNHY in the amount of RMB400. As of December
 31, 2025, the loan was outstanding.

(3) On
 December 27, 2024, the Group loaned approximately RMB3,220 to Shanghai Zhongyao. The loan was unsecured, interest free and due on
 demand. The loan was unsecured, interest free and due on demand. The loan was fully collected in 2025.

(4) During
 September to December 31, 2024, the Group loaned approximately RMB3,800 to Henan Jiataihong Environmental for working capital purpose.
 The loan was unsecured, interest free and due on demand. After partial collection, the balance was RMB1,800 as of December 31, 2024.
 The loan was fully collected in 2025.

(5) For
 the year ended December 31, 2024, the Group loaned RMB440 to Ms. Hong Wang. The loan was unsecured, interest free and due on demand.
 The loan was fully collected in 2025.

(6) During
 April to December 31, 2024, the Group loaned RMB300 to Jiangxi New Difeng. The loan was unsecured, interest free and due on demand.
 The loan was fully collected in 2025.

(7) On
 May 1, 2024, the Group loaned RMB205 to Jiangxi Yuchuang. The loan was unsecured, interest free and due on demand. The loan was fully
 collected in 2025.

(8) For
 the year ended December 31, 2023, the Group loaned RMB1,698 to ABGreen Shenqiu. The advance was unsecured, fixed annual interest
 rate of 15% and due on demand and the term of these loans was within one year. The Group fully recovered the principal in September
 2024. Outstanding remaining interest of RMB85 as of December 31, 2024 was collected in 2025.

(9) For
 the year ended December 31, 2025, the Group paid RMB 10,200 to Nanchang Lvshang controlled by Mr. Qi Yu, who was the original shareholder
 of Jingchuang Metal, as a security deposit for the acquisition consideration payable on Jingchuang Metal (Note 5).

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 15 — RELATED PARTY TRANSACTIONS (cont.)**

**(8) Due to related parties**

As of December 31, 2024 and 2025, due to related parties was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2025** |
|  | **RMB** | **RMB** |
| Jiangxi New Difeng <sup>(2)</sup> | 10200 | 10200 |
| Mr. Renlu Dong <sup>(2)</sup> | 4542 | 4542 |
| Henan Qingyu <sup>(1)</sup> |  | 5700 |
| SZ ARSC(LP) <sup>(1)</sup> | 2898 | 2898 |
| Zhoukou Bolv <sup>(1)</sup> | 4498 | 2544 |
| Shanghai Zhongyao <sup>(2)</sup> | 173 | 173 |
| Shanghai Zhongyao <sup>(1)</sup> |  | 2265 |
| China Link <sup>(1)</sup> | 9087 | 1648 |
| Mr. Baitong Tang <sup>(1)</sup> | 2821 | 5449 |
| Jiangxi Yuchuang <sup>(1)</sup> | 2610 | 874 |
| Ms. Meixia Zhang <sup>(1)</sup> | 550 |  |
| Ms. Xiangying Xiang <sup>(2)</sup> | 248 | 248 |
| Mr. Qi Yu <sup>(1)</sup> | 2385 | - |
| **Total** | **40012** | **36541** |

---

(1) The
 Group obtained short-term working capital loans from these related parties from time to time. Most loans are due on demand and interest-free.

(2) The
 aggregated balance of RMB15,163 as of December 31, 2024 and 2025 represented the acquisition consideration payable in connection
 with the Group's business combinations for the year ended December 31, 2024 (refer to Note 5).

**(9) Long term loan payable to related parties**

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Beginning balance | 85893 | 101141 |
| Additions in principle amount | 25565 | 17670 |
| Accrued interests | 4848 | 4528 |
| Repayments | (15165) | (40450) |
| **Ending balance** | **101141** | **82889** |

---

As January 1, 2023, the Group had several working capital loan agreements with the shareholders of BJ ABGreen RSC with an aggregated loans payable of RMB98,959, which was unsecured and interest-free. On July 1, 2023, the Group entered into an amended loan agreement with BJ ABGreen RSC and its shareholders. Pursuant to the amended loan agreement, the shareholders of BJ ABGreen RSC transferred their creditor's right to BJ ABGreen RSC and the loan shall be fully repaid by June 30, 2028. Upon maturity, the Group has the right to renew the loan with BJ ABGreen RSC. The amended loan carried annual interest rate of 5.5% with interest payable on annual basis.

On January 1, 2024, the Group entered into a new loan agreement with BJ ABGreen RSC to obtain a working capital loan of RMB25,565. The loan carried annual interest rate of 5% with interest payable on annual basis. For the year ended December 31, 2025, the Group further borrowed RMB17,670. For the years ended December 31, 2024 and 2025, the Group repaid RMB15,165 and RMB40,450, respectively.

 **CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 16 — TAXES**

**(a) Corporate Income Taxes ("CIT")**

<u>Cayman Islands</u>

CZTI is incorporated in Cayman Islands as an offshore holding company and is not subject to tax on income or capital gain under the laws of Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

<u>Hong Kong</u>

Under Hong Kong tax laws, CZTI HK is subject to statutory income tax rate at 16.5% if revenue is generated in Hong Kong and there are no withholding taxes in Hong Kong on remittance of dividends.

<u>PRC</u>

Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on case-by-case basis. EIT grants preferential tax treatment to High and New Technology Enterprises ("HNTEs"). Under this preferential tax treatment, HNTEs are entitled to an income tax rate of 15%, subject to a requirement that they re-apply for HNTE status every three years. ABGreen Shenzhen, the Company's main operating subsidiary in PRC, was approved as a HNTE and is entitled to a reduced income tax rate of 15% beginning December 2021. ABGreen Shenzhen further renewed the "high-tech enterprise" tax status in 2024, and is entitled to the preferential income tax rate of 15% from 2021 to 2026. Jingchuang Metal was recognized as a HNTE on October 28, 2024 and is entitled to the preferential income tax rate of 15% from 2024 to 2026.

EIT is typically governed by the local tax authority in PRC. Each local tax authority at times may grant preferred tax treatment to local enterprises as a way to encourage entrepreneurship and stimulate local economy. Certain subsidiaries of the Group were qualified as "small-scaled minimal profit enterprise", where were entitled to preferential rate of 5% for the related taxation year. As most of subsidiaries were in loss situation for the years ended December 31, 2024 and 2025, the tax treatment noted above did not realize significant tax savings for the above-mentioned years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***i)***  ***Loss before income tax expense is attributable to the following geographic locations:*** 

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br> December 31,** | **For the Year Ended <br> December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| PRC | 19557 | 8483 |
| Hong Kong | 32 | 13 |
| Cayman | 926 | 1081 |
| **Total** | **20515** | **9577** |

---

***ii)*** ***The components of income tax provision are as follows:***

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br> December 31,** | **For the Year Ended <br> December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Current income tax expense |  |  |
| PRC | 4239 | 6046 |
| Hongkong |  |  |
| Cayman | - | - |
| **Total current tax expense** | **4239** | **6046** |
| Deferred income tax expense: |  |  |
| PRC |  |  |
| Hongkong |  |  |
| Cayman | - | - |
| **Total deferred tax expense** | - | - |
| Total income tax expense: |  |  |
| PRC | 4239 | 6046 |
| Hongkong |  |  |
| Cayman | - | - |
| **Total income tax expense** | **4239** | **6046** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 16 — TAXES (cont.)**

***iii)*** ***The reconciliation of taxes at the PRC statutory rate to our provision for (benefit from) income taxes for the years ended December 31, 2024 and 2023 in accordance with the guidance prior to the adoption of ASU 2023-09 was as follows:***

---

| | | |
|:---|:---|:---|
|  | **For the Years ended December 31,** | **For the Years ended December 31,** |
|  | **2023** | **2024** |
| PRC statutory income tax rate | 25% | 25% |
| Effect of preferential tax rate | 12.4% | (12.5)% |
| Addition deduction of qualified R&D expenditures \* | (6.8)% | 0.0% |
| Change in valuation allowance | 37.8% | (19.4)% |
| Impact of changes in tax rates | (0.4)% | 0.0% |
| Non-deductible expenses | 4.0% | (8.6)% |
| Effect of true-up on NOL | 0.0% | (1.8)% |
| Others | 0.0% | (3.4)% |
| **Effective tax rate** | **72.0%** | **(20.7)%** |

---

---

| | |
|:---|:---|
| \* | According to PRC tax regulations, 200% and 200% R&D expense approved by the local tax authority may be deducted from tax income for the year 2023 and 2024, respectively. |
|  | Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, the reconciliation of taxes at the PRC statutory rate to our provision for (benefit from) income taxes for the year ended December 31, 2025 was as follows: |

---

---

| | | |
|:---|:---|:---|
|  | **For the Years ended December 31, 2025** | **For the Years ended December 31, 2025** |
|  | **RMB** | **%** |
| Loss before income tax | (9577) | 100.0% |
| PRC statutory income tax rate | 25.0% | 25.0% |
| Computed income tax benefit with PRC statutory income tax rate | (2393) | 25.0% |
| Domestic tax effects: |  |  |
| Preferential tax rate | 1860 | (19.4)% |
| Non-deductible entertainment expense | 480 | (5.0)% |
| Fair value change of long-term investment | 268 | (2.8)% |
| Changes in valuation allowance | 5438 | (56.8)% |
| True-up on NOL | (98) | 1.0% |
| Others | 218 | (2.3)% |
| Foreign tax effects: |  |  |
| &nbsp;&nbsp;&nbsp; Hong Kong: |  |  |
| &nbsp;&nbsp;&nbsp; - Statutory tax rate difference between Hong Kong and PRC | 1 | 0.0% |
| &nbsp;&nbsp;&nbsp; - Changes in valuation allowances | (146) | 1.5% |
| &nbsp;&nbsp;&nbsp; - True-up on NOL | 148 | (1.5)% |
| &nbsp;&nbsp;&nbsp; Cayman: |  |  |
| &nbsp;&nbsp;&nbsp; - Statutory tax rate difference between Cayman and PRC | 270 | (2.8)% |
| **Effective tax rate** | **6046** | **(63.1)%** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 16 — TAXES (cont.)**

***iv)*** ***Upon adoption of ASU 2023-09, Improvements to Income Tax Disclosures, as described in Note 2, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, cash paid for income taxes, during the year ended December 31, 2025 was as follows:***

---

| | | |
|:---|:---|:---|
|  | **For the Year Ended <br> December 31,** | **For the Year Ended <br> December 31,** |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| PRC | 4505 | 15712 |
| Hongkong |  |  |
| Cayman | - | - |
| **Total** | **4505** | **15712** |

---

***v)***  ***The following table summarizes deferred tax assets resulting from differences between financial accounting basis and tax basis of assets and liabilities:*** 

---

| | | |
|:---|:---|:---|
|  | **As of the Year Ended December 31,**  | **As of the Year Ended December 31,**  |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Tax loss carrying forward | 12868 | 18674 |
| Allowance for credit losses | 413 | 67 |
| Allowance for advance to suppliers | - | 288 |
| **Total deferred tax assets** | **13281** | **19029** |
| Less: valuation allowance | (13281) | (19029) |
| **Total deferred tax assets, net of valuation allowance** | **-** | **-** |

---

***vi)*** ***The changes related to valuation allowance are as follows:***

---

| | | |
|:---|:---|:---|
|  | **As of the Year Ended December 31,**  | **As of the Year Ended December 31,**  |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Balance at beginning of the year | 9297 | 13281 |
| Additions | 4469 | 5913 |
| Disposal of subsidiary | (25) | (67) |
| Reversals | (460) | (98) |
| **Balance at end of the year** | **13281** | **19029** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 16 — TAXES (cont.)**

According to PRC tax regulations, the PRC enterprise's net operating loss can be generally carried forward for no longer than five years, and HNTE's net operating losses can be carried forward for no more than 10 years, starting from the year subsequent to the year in which the loss was incurred. Carryback of losses is not permitted. The Group will re-apply for the HNTE certificate when the prior certificate expires in the foreseeable future.

Total net operating losses carryforwards of the Group's subsidiaries in PRC are RMB77,518 and RMB105,009 as of December 31, 2024 and 2025, respectively. As of December 31, 2025, the net operating loss carryforwards from PRC will expire in calendar years 2026 through 2035, if not utilized. The net operating loss carryforwards of the Group's subsidiaries in Hong Kong are RMB1,832 and RMB13 as of December 31, 2024 and 2025, respectively, which can be carried forward without an expiration date.

Management considers positive and negative evidence to determine whether some portion or all of the deferred tax assets will more-likely-than-not be realized. This assessment considers, among other matters, the nature, frequency and severity of recent losses, forecasts of future profitability, the duration of statutory carry forward periods, the Group's experience with tax attributes expiring unused and tax planning alternatives. Valuation allowances have been established for deferred tax assets based on a more-likely-than-not threshold. The Group's ability to realize deferred tax assets depends on its ability to generate sufficient taxable income within the carry forward periods provided for in the tax law. Valuation allowance amounted to RMB13,281 and RMB19,029 as of December 31, 2024 and 2025, respectively. The tax effect of net change of valuation allowance for the years ended December 2024 and 2025 was RMB3,984 and RMB5,748.

The Group evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred.

Based on management's evaluation, the total amount of unrecognized tax benefits related to research and development costs as of December 31, 2024 and 2025 was RMB1,499 and RMB1,499, respectively. There were no interest or penalties related to unrecognized tax benefits as of December 31, 2024 and 2025. The amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate as of December 31, 2024 and 2025 was "zero" as the Group has recorded a full valuation allowance against its deferred tax assets because of uncertainty as to future realization. As of December 31, 2025, the tax years ended December 31, 2020 to 2024 for the Company's PRC subsidiaries remain open for statutory examination by any applicable tax authorities.

**(b) Taxes payable**

Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of the Year Ended December 31,**  | **As of the Year Ended December 31,**  |
|  | **2024** | **2025** |
|  | **RMB** | **RMB** |
| Income tax payable | 3534 | 3389 |
| Value added tax payable | 94662 | 38166 |
| Other taxes payable | 5752 | 4252 |
| **Total taxes payable** | **103948** | **45807** |

---

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 17 — SHAREHOLDERS' EQUITY**

***Ordinary Shares***

The Company was established under the laws of the Cayman Islands on July 13, 2023. Based on the Company's amended and restated memorandum and articles of association amended on August 7, 2024, the authorized number of Class A ordinary shares was 4,900,000,000 ordinary shares with par value of $0.00001 and 125,000,610 Class A ordinary shares were issued and outstanding. The authorized number of Class B ordinary shares was 100,000,000 ordinary shares with par value of $0.00001 and 34,000,000 Class B ordinary shares were issued and outstanding.

Holders of Class A ordinary shares and Class B ordinary shares of the Company have the same rights, except for voting rights, conversion rights and transfer rights. Holders of Class B ordinary shares are entitled to ten votes per share in all shareholders' meetings, while holders of Class A ordinary shares were entitled to one vote per share.

The issuance of 125,000,610 Class A ordinary shares and 34,000,000 Class B ordinary shares is considered as a part of the reorganization of the Company, which was retroactively applied as if the transaction occurred at the beginning of the period presented.

In addition, in accordance with the Company's Memorandum and Articles of Association amended on July 13, 2023, the Company has authorized number of preference shares was 1,000,000,000 shares with par value of $0.00001, but no share was issued and outstanding.

***Statutory reserve and restricted net assets***

The Company's ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company's PRC subsidiaries incorporated in PRC only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The consolidated results of operations reflected in the consolidated financial statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company's subsidiaries.

Under PRC law, the Company's subsidiaries located in the PRC (collectively referred as the ("PRC entities") are required to provide for certain statutory reserves, namely a general reserve, an enterprise expansion fund and a staff welfare and bonus fund. The PRC entities are required to allocate at least 10% of their after-tax profits on an individual company basis as determined under PRC accounting standards to the statutory reserve and has the right to discontinue allocations to the statutory reserve if such reserve has reached 50% of registered capital on an individual company basis. The statutory reserve amounted to RMB7,215 and RMB9,214 as of December 31, 2024 and 2025, respectively. Amounts restricted include share capital and the statutory reserve of the Company's PRC subsidiaries. The balance of restricted net assets was RMB20,826 and RMB22,825 as of December 31, 2024 and 2025, respectively.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 18 — COMMITMENTS AND CONTINGENCIES**

***Contingencies***

The Group may be involved in various legal proceedings, claims and other disputes arising from the commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. The Group determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed probable and can be reasonably estimated. Although the Group can give no assurances about the resolution of pending claims, litigation or other disputes and the effect such outcomes may have on the Group, the Group believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on the Group's consolidated financial position or results of operations or liquidity.

***Contractual Obligations***

The Group had outstanding bank loans of RMB192,990 as of December 31, 2025. The Group has also entered into operating lease agreements to rent sorting centers, warehouse and office spaces.

The following table sets forth our contractual obligations and commercial commitments as of December 31, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | **Total** | **Less than <br> 1 Year** | **1 – 3 <br> Years** | **3 – 5 <br> Years** | **More than <br> 5 Years** |
| Operating lease arrangements | 4106 | 1352 | 2040 | 714 |  |
| Bank loans | 192990 | 188490 | 4500 |  |  |
| Loan payable to third parties | 41118 | 35702 | 5416 |  |  |
| Due to related parties | 36541 | 36541 |  |  |  |
| Long-term loan payable to related parties | 82889 |  | 82889 |  |  |
| Purchase commitment of long-term investment | 14736 | 14736 | - | - |  |
| **Total** | **372380** | **276821** | **94845** | **714** |  |

---

**Note 19 — SEGMENT INFORMATION**

The Group uses the "management approach" in determining its operating segments. The management approach considers the internal organization and reporting used by the Group's Chief Operating Decision Maker ("CODM") for making strategic decisions, assessing performance, and allocating resources. The Company's CODM has been identified as the Chief Executive Officer of the Group. The Group determined it operates as one reportable segment.

As a single reportable segment entity, the GAAP measure utilized by the CODM to assess performance and allocate resources is the Group's consolidated revenue, operating expenses and net income (loss). Significant expenses include merchandise costs, fulfillment expenses, selling expenses, general and administrative expenses and research and development, which are each separately presented on the Company's Consolidated Statement of Operations and Comprehensive Loss. Other segment items within net loss include interest expenses.

During the years ended December 31, 2024 and 2025, all revenue is domestic revenue. To-date we have not sold our product outside of China. The Company's long-lived assets consist primarily of property and equipment, all of which are located in China.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. AND SUBSIDIARIES<br> NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 20 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY**

The Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in the PRC is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company's PRC subsidiaries are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

In addition, the Group's operations and revenues are conducted and generated in the PRC, and all of the Group's revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Group may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Group's ability to convert RMB into USD.

Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company's PRC subsidiary exceed 25% of the consolidated net assets of the Company.

Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company's investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries.

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC.<br> PARENT COMPANY BALANCE SHEETS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 20 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (cont.)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Assets** |  |  |  |
| &nbsp;&nbsp;&nbsp; Cash | 209 | 6 | 1 |
| &nbsp;&nbsp;&nbsp; Due from subsidiaries | 1312 | 1317 | 189 |
| &nbsp;&nbsp;&nbsp; Deferred issuance costs | 1437 | 1510 | 216 |
| **Total Assets** | **2958** | **2833** | **406** |
| **Liabilities** |  |  |  |
| Loan payable to third party | 934 | 963 | 138 |
| Deficit of investments in subsidiaries | 20179 | 32936 | 4710 |
| Due to related parties |  | 790 | 113 |
| Long-term loan payable to a third party | 4779 | 4916 | 703 |
| **Total liabilities** | **25892** | **39605** | **5664** |
| **Shareholders' Deficit** |  |  |  |
| &nbsp;&nbsp;&nbsp; Class A ordinary shares\* ($0.00001 par value, 4,900,000,000 shares authorized, 125,000,610 shares issued and outstanding as of December 31, 2024 and December 31, 2025) | 8 | 8 | 1 |
| &nbsp;&nbsp;&nbsp; Class B ordinary shares\* ($0.00001 par value, 100,000,000 shares authorized, 34,000,000 shares issued and outstanding as of December 31, 2024 and December 31, 2025) | 2 | 2 | 0 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 13601 | 13601 | 1945 |
| &nbsp;&nbsp;&nbsp; Statutory reserves | 7215 | 9214 | 1318 |
| &nbsp;&nbsp;&nbsp; Accumulated deficit | (43760) | (59597) | (8522) |
| **Total Shareholders' Deficit** | **(22934)** | **(36772)** | **(5258)** |
| **Total Liabilities and Shareholders' Deficit** | **2958** | **2833** | **406** |

---

\* Shares and per share data are presented on a retroactive basis to reflect the reorganization and authorized shares amendment (Note 17).

**CARBON ZERO TECHNOLOGIES INTERNATIONAL INC.<br> PARENT COMPANY STATEMENTS OF LOSS AND COMPREHENSIVE LOSS**

**(Amounts in thousands, except share and per share data and otherwise noted)**

**Note 20 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (cont.)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31** | **For the Years Ended December 31** | **For the Years Ended December 31** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| Equity in losses of subsidiaries | (21405) | (12757) | (1823) |
| General and administrative expenses | (926) | (1081) | (155) |
| **Net loss** | **(22331)** | **(13838)** | **(1978)** |
| **Comprehensive loss** | **(22331)** | **(13838)** | **(1978)** |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended December 31,** | **For the Years Ended December 31,** | **For the Years Ended December 31,** |
|  | **2024** | **2025** | **2025** |
|  | **RMB** | **RMB** | **US$** |
| **Cash flows from operating activities:** |  |  |  |
| Net loss | (22331) | (13838) | (1978) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |  |
| Amount due to subsidiary | (1312) | (5) | (1) |
| Equity in losses of subsidiaries | 21405 | 12757 | 1823 |
| **Net cash used in operating activities** | **(2238)** | **(1086)** | **(156)** |
| **Cash flows from investing activities** |  |  |  |
| Gross investment in subsidiary | (1819) | - | - |
| **Net cash used in investing activities** | **(1819)** | **-** | **-** |
| **Cash flows from financing activities:** |  |  |  |
| Proceeds from loan payable to third-party | 1276 | 166 | 24 |
| Due to related parties |  | 790 | 113 |
| Deferred issuance costs | (105) | (73) | (10) |
| **Net cash provided by financing activities** | **1171** | **883** | **127** |
| **Changes in cash** | **(2886)** | **(203)** | **(29)** |
| **Cash, beginning of year** | **3095** | **209** | **30** |
| **Cash, end of year** | **209** | **6** | **1** |

---

**Note 21 — SUBSEQUENT EVENTS**

The Group has evaluated the impact of events that have occurred subsequent to December 31, 2025, through the issuance date of the consolidated financial statement and concluded that no material subsequent events have occurred that would require recognition in the consolidated financial statements or disclosure in the notes to the consolidated financial statements.

 **3,335,000 American Depositary Shares** 

**Representing 13,340,000 Class A Ordinary Shares**

![](formdrs_001.jpg)

**Carbon Zero Technologies International Inc.**

Prospectus dated __________, 2026

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the United States Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION** 

**PRELIMINARY PROSPECTUS DATED May 26, 2026**![](formdrs_001.jpg)

**Carbon Zero Technologies International Inc.**

 **1,500,000 American Depositary Shares**

**Representing 6,000,000 Class A Ordinary Shares**

This prospectus relates to the resale of 1,500,000 American Depositary Shares ("ADSs") representing 6,000,000 Class A ordinary shares (the "Shareholder ADSs") by the selling shareholder (the "Selling Shareholder") named in this prospectus. We will not receive any of the proceeds from the sale of the ADSs by the Selling Shareholder named in this prospectus. We are registering on the registration statement of which this prospectus forms a part a total of 1,500,000 ADSs representing 6,000,000 Class A ordinary shares. Of the ADSs being registered, the Shareholder ADSs are being registered for resale by the Selling Shareholder, and we are offering on a firm commitment basis 3,335,000 ADSs (the "Public Offering ADSs") for sale in connection with an initial public offering by the Company. Prior to this offering, there has been no public market for ADSs or our Ordinary Shares.

The Selling Shareholder will not be able to sell the Shareholder ADSs, except in an offering exempt from registration, until the ADSs are listed on the Nasdaq Global Market, or Nasdaq. Once, and if, the ADSs are listed on Nasdaq and begin trading, the Shareholder ADSs may be sold at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change or at negotiated prices, or in any manner permitted by the Securities Act. The Company will not receive any proceeds from the sale of any of the Shareholder ADSs. The offering of the Shareholder ADSs will terminate at the earlier of such time as all of the Shareholder ADSs have been sold pursuant to the registration statement and the date on which it is no longer necessary to maintain the registration of the Shareholder ADSs as a result of such ADSs being permitted to be offered and resold without restriction pursuant to the provisions of Rule 144 of the Securities Act, and the offering of the Shareholder ADSs may extend for a longer period of time than the offering of the Public Offering ADSs. The Shareholder ADSs may be sold once ADSs begin trading on Nasdaq and from time to time thereafter. We expect the initial public offering price of the ADSs will be between $11.00 and $13.00 per ADS. The last trading price of the ADSs on Nasdaq on [ ], 2026 was $[ ] per ADS. The resales of ADSs representing the Class A ordinary shares registered in the Resale Prospectus could affect the price and liquidity of, and demand for, the ADSs. This risk and other risks are included in "Risk Factors" in each of the Public Offering Prospectus and the Resale Prospectus.

We have reserved the symbol "CZTI" for purposes of listing the ADSs on the Nasdaq Global Market, or Nasdaq. This offering is contingent on the listing of the ADSs on Nasdaq. At this time, Nasdaq has not yet approved our application to list the ADSs. There is no assurance that such application will be approved, and if our application is not approved by Nasdaq, this offering may not be completed.

**Investing in the ADSs involves a high degree of risk, including the risk of losing your entire investment.** See "Risk Factors" beginning on page 17 of the Public Offering Prospectus to read about factors you should consider before buying the ADSs.

We are both an "emerging growth company" and a "foreign private issuer" as defined under applicable U.S. securities laws and are eligible for reduced public company reporting requirements. Please read the disclosures beginning on page 9 and on page 10 of the Public Offering Prospectus for more information.

**We are not a Chinese operating company but a Cayman Islands holding company. We have no material operations of our own and conduct substantially all of our operations through the Operating Entities in China. Investors in the ADSs are purchasing equity interests in the Cayman Islands holding company, and not in the Operating Entities. Investors in the ADSs may never hold equity interests in the Operating Entities. Our operating structure involves unique risks to investors. The Chinese regulatory authorities could disallow our operating structure, which would likely result in a material change in our operations and/or a material change in the value of the ADSs representing our Class A ordinary shares and could cause the value of the ADSs to significantly decline or become worthless.** See "*Risk Factors — Risks Related to Doing Business in the PRC"* beginning on page 31 of the Public Offering Prospectus for a discussion of these legal and operational risks.

**As used in this prospectus, terms such as "the Company," "CZTI," "we," "us," "our company," or "our" refer to Carbon Zero Technologies International Inc., unless the context suggests otherwise, and also includes Carbon Zero Technologies (Hong Kong) Limited ("CZTI HK") and its PRC subsidiaries, as well as Carbon Source Technologies (Hong Kong) Limited ("Carbon Source HK") and its PRC subsidiaries. We directly hold 100% of the equity interests in CZTI HK which directly owns 100% of the equity interests in CZTI WFOE, which directly owns 100% of the equity interests in CZTI Shenzhen. CZTI HK also directly owns 100% of the equity interests in Xieguan Tonglian (Shenzhen) Technology Co., Ltd. and directly owns 65% of the equity interests in Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. owns 67% of equity interests in Guangdong Bo Green Investment Co., Ltd. and 51% of equity interests in Jushang (Hebei) Renewable Resources Co., Ltd. Xieguan Tonglian (Shenzhen) Technology Co., Ltd. directly owns 100% of equity interests of Shenzhen Yize Environmental Protection Technology Co., Ltd., Shenzhen Bgreen Environmental Technology Co., Ltd. and Shenzhen Carbon Poly Digital Technology Co., Ltd., and Shenzhen Green Blue Environmental Protection Technology Co., Ltd. Shenzhen Carbon Poly Digital Technology Co., Ltd. directly owns 51% of equity interest in Beijing Guoxun Renewable Resources Co., Ltd. and Carbon Baike (Beijing) Environmental Protection Technology Co., LTD. Shenzhen Yize Environmental Protection Technology Co., Ltd. directly owns 51% of equity interests in Henan Zhicheng Industrial Park Management Co., LTD. CZTI Shenzhen further directly owns 75% of equity interest in Shenzhen ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Shenzhen"). We directly hold 100% of the equity interests in Carbon Source HK which directly owns 100% of the equity interests in Hubei Carbon Link Recycling Technology Co., Ltd. and 51% of the equity interests in Gongqingcheng Yadannuo Environmental Technology Co., Ltd., Jiangxi Jingchuang Metal Manufacturing Co., Ltd. ("Jingchuang Metal"), Jiangxi Qi Hong New Material Technology Co., Ltd., and Henan ABGreen Environmental Protection Technology Co., Ltd. ("ABGreen Henan"). All of our China operating activities are conducted under our Operating Entities. We do not currently use a VIE.** See "*Corporate History and Structure*" beginning on page 60 of the Public Offering Prospectus.

**We face various risks associated with being based in or having our operations primarily in China and the evolving laws and regulations in China, including risks related to the legal, political and economic policies of the Chinese government, the relations between China and the United States, or Chinese or United States regulations, which risks could result in a material change in our operations and/or cause the value of the ADSs to significantly decline or become worthless, and significantly limit or completely hinder our ability to offer or continue to offer securities to investors. Because we operate in mainland China, the Chinese government may exercise significant oversight and discretion over the conduct of our subsidiaries' business and may intervene or influence their operations, including that of our PRC subsidiaries, at any time, which could result in a material adverse change in our business and operations, prospects, financial condition, and results of operations, and the value of our securities. Changes in the policies, regulations, rule, and the enforcement of laws of the Chinese government may also be implemented quickly with little advance notice, and the Chinese government may intervene or influence our subsidiaries at any time or may exert more control over offerings conducted overseas or investments in China-based issuers, which could result in material changes in operations and/or the value of the securities we are registering for sale. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment and/or operations in China-based issuers could significantly change our operations, limit or completely hinder our ability to offer or continue to offer securities to investors and cause the value of such securities to significantly decline or be worthless. Therefore, our assertions and beliefs concerning the risk imposed by the PRC legal and regulatory system cannot be certain. For example, recently the PRC government initiated a series of regulatory actions and statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, strengthened supervision on overseas listings by China-based companies using a VIE, adopting new measures to extend the scope of cybersecurity reviews and data security protection, and expanding the efforts in anti-monopoly enforcement. The PRC government may also regulate our operations by adopting new laws and regulations from time to time. Furthermore, the PRC government has recently made efforts to exert more oversight over overseas securities offerings and other capital markets activities and foreign investment in China-based companies like us. Any such action, once taken by the PRC government, could cause the value of such securities to significantly decline or in extreme cases, become worthless.**

**As advised by our PRC legal counsel, Zhong Lun Law Firm, as of the date of this prospectus, we have not engaged in any monopolistic behavior and our business does not control more than one million users' personal information as of the date of this prospectus, implicate cybersecurity, or involve any other type of restricted industry. However, we cannot affirm that PRC regulators share the same interpretation. Because these statements and regulatory actions are new and subject to change, it is highly uncertain as to how quickly the legislative or administrative regulation making bodies in China will respond to companies, or what existing or new laws or regulations will be amended or promulgated, if any, or the potential impact such amended or new legislation will have on our daily business operations or our ability to accept foreign investments and list on a U.S. stock exchange. According to the Overseas Listing Filing Rules, we are required to submit the filing application to the China Securities Regulatory Commission (the "CSRC") within three business days after our submission of application for any overseas initial public offering and listing. We have submitted a filing with the CSRC with respect to our overseas initial public offering and listing on November 20, 2023. On May 30, 2024, the CSRC published a Filing Completion Notice on the CSRC's official website ("Filing Completion Notice"), confirming that we have completed the filing procedures with the CSRC under the Trial Measures. Pursuant to the requirements of the Filing Completion Notice, if we fail to complete the overseas offering and listing within 12 months from the date of issuance of such notice and intend to continue with the listing process, we shall update the filing materials. In accordance with Article 19 of the Trial Measures, where the filing materials are complete and in compliance with applicable requirements, the CSRC shall complete the filing procedures within 20 working days from the date of receipt of such materials. In compliance with the foregoing requirements of the Filing Completion Notice and the provisions of the Trial Measures, we proceeded with our listing process after May 30, 2025, and accordingly submitted updated filing materials to the CSRC on July 15, 2025. The CSRC officially accepted such updated materials on October 23, 2025, raised no objections within the subsequent 20-working-day period, and has not raised any objections as of the date of this prospectus. However, from the date of issuance of the Filing Completion Notice to the completion of this offering, if we experience any material or significant events that may cause (i) a major change to the main business or business license qualifications of the PRC Subsidiaries; (ii) a major change of control or equity structure; and (iii) a major adjustment to the offering and listing plan which includes but are not limited to changes of the listing place, possible changes of control after the adjustment of the offering plan, and increases in the proportion of shares to be issued, we shall update the filing documents with the CSRC within three business days. Additionally, upon completion of this offering, we shall report the offering information to the CSRC within 15 business days. If a violation of the foregoing and related regulations occurs, the CSRC may order rectification, issue warnings, and impose a fine between RMB 1 million and RMB 10 million on our PRC Subsidiaries, which could adversely and materially affect our business operations and financial outlook, and significantly limit or completely hinder our ability to offer or continue to offer ADSs to investors and could cause the value of the ADSs to significantly decline or such shares to become worthless. Additionally, if we do not obtain the permissions and approvals of the filing procedure for any subsequent offering in a timely manner under PRC laws and regulations, we may be subject to investigations by competent PRC regulators, fines or penalties, ordered to suspend our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and these risks could result in a material adverse change in our operations, limit our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. Any failure of fully complying with the approval, filing or other requirements may completely hinder our ability to offer and list the ADSs, cause significant disruption to our business operations, and severely damage our reputation, which would materially and adversely affect our financial condition and results of operations.** See "*Risk Factors — Risks related to Doing Business in the PRC*" beginning on page 31 of the Public Offering Prospectus for a discussion of these legal and operational risks.

**The Holding Foreign Companies Accountable Act, or the HFCAA, was enacted on December 18, 2020, and was amended by the Consolidated Appropriations Act, 2023 enacted on December 29, 2022. The amended HFCAA states that if the U.S. Securities and Exchange Commission (the "SEC") determines that we have filed audit reports issued by a registered public accounting firm that has not been subject to inspection by the U.S. Public Company Accounting Oversight Board (the "PCAOB") for two consecutive years, the SEC shall prohibit our shares or ADSs from being traded on a national securities exchange or in the over-the-counter trading market in the United States. The Consolidated Appropriations Act, 2023 reduced the number of consecutive non-inspection years required for triggering the prohibitions under the HFCAA from three years to two years. The PCAOB issued a Determination Report on December 16, 2021 (the "Determination Report") which found that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong because of a position taken by one or more authorities in those jurisdictions. Furthermore, the Determination Report identified the specific registered public accounting firms which are subject to these determinations ("PCAOB Identified Firms"). Our auditor, Marcum Asia CPAs LLP ("Marcum Asia"), the independent registered public accounting firm that issues the audit report included elsewhere in this prospectus, as an auditor of companies that are traded publicly in the United States and, a firm registered with the PCAOB, is subject to laws in the U.S. pursuant to which the PCAOB conducts regular inspections to assess its compliance with the applicable professional standards. Marcum Asia is headquartered in New York, New York, and, as of the date of this prospectus, was not included in the list of PCAOB Identified Firms in the Determination Report. On December 15, 2022, the PCAOB issued a report that vacated its December 16, 2021, determination and removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms.**

**Each year, the PCAOB will determine whether it can inspect and investigate audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a "Commission-Identified Issuer" following the filing of the annual report on Form 20-F for the relevant fiscal year. There can be no assurance that we would not be identified as a "Commission-Identified Issuer" for any future fiscal year, and if we were so identified for two consecutive years, we would become subject to the prohibition on trading under the HFCAA. The delisting of the ADSs, or the threat of their being delisted, may materially and adversely affect the value of your investment. These risks could result in a material adverse change in our operations and the value of the ADSs, significantly limit or completely hinder our ability to offer or continue to offer securities to investors or cause the value of such securities to significantly decline or become worthless.** For more details, see "*Risk Factors — Risks Related to the ADSs and this Offering — Trading of the ADSs will be prohibited in the United States under the Holding Foreign Companies Accountable Act, or the HFCAA, if it is later determined that the PCAOB is unable to inspect and investigate completely our auditor. The delisting of and prohibition from trading the ADSs, or the threat of their being delisted and prohibited from trading, may cause the value of the ADSs to significantly decline or be worthless.*" beginning on page 44 of the Public Offering Prospectus.

**As of the date of this prospectus, we have not maintained any cash management policies that dictate the purpose, amount and procedure of fund transfers among our Cayman Islands holding company, our subsidiaries, or investors. Rather, the funds can be transferred in accordance with the applicable laws and regulations.** See "*Prospectus Summary - Cash Transfers and Dividend Distributions*." **As of the date of this prospectus, our Cayman Islands holding company has not declared or paid dividends, made distributions, or transferred assets to its subsidiaries or to investors in the past, nor have any dividends, distributions or asset transfers been made by any PRC subsidiary to CZTI HK, Carbon Source HK and/or the Cayman Islands holding company. For the years ended December 31, 2024 and 2025, our PRC subsidiaries declared dividends of RMB nil and RMB nil to their PRC noncontrolling shareholders, respectively. For the years ended December 31, 2024 and 2025, there was no cash transfer among our Cayman Islands holding company, CZTI HK, Carbon Source HK and our PRC subsidiaries. For the year ended December 31, 2024, our Cayman Islands holding company made a capital contribution of RMB 2 million to CZTI HK and provided a working capital loan of RMB 1 million to CZTI HK in January 2024. CZTI HK further made capital contributions of RMB 3 million to CZTI WFOE in January 2024. For the year ended December 31, 2025, Carbon Source HK provided a working capital of RMB 0.7 million to ABGreen Henan and provided a working capital of RMB 0.3 million to Hubei Carbon Link.** 

**Our board of directors has complete discretion on whether to distribute dividends, subject to applicable laws. We do not have any current plan to declare or pay any cash dividends on our shares or ADSs in the foreseeable future after this offering.** See "*Risk Factors — Risks Related to the ADSs and this Offering — We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of the ADSs for return on your investment*" beginning on page 48 of the Public Offering Prospectus. **Subject to certain contractual, legal and regulatory restrictions, cash and capital contributions may be transferred among our Cayman Islands holding company and our subsidiaries. If needed, our Cayman Islands holding company can transfer cash to our subsidiaries through loans and/or capital contributions, and our subsidiaries can transfer cash to our Cayman Islands holding company through loans and/or issuing dividends or other distributions. There are currently no restrictions of transferring funds between our Cayman Islands holding company and subsidiary in Hong Kong. There are limitations on the ability to transfer cash between the Cayman Islands holding company and the PRC subsidiaries. Cash transfers from the Cayman Islands holding company to the PRC subsidiaries are subject to the applicable PRC laws and regulations on loans and direct investment.** See "*Prospectus Summary — Cash Transfers and Dividend Distributions,"* beginning on page 7 of the Public Offering Prospectus and see also *"Risk Factors — Risks Related to Doing Business in the PRC — PRC regulations of loans and direct investment by offshore holding companies to the PRC subsidiaries may delay or prevent us from using the proceeds of our offshore financing to make loans or additional capital contributions to the PRC subsidiaries, which could materially and adversely affect our liquidity and business,*" beginning on page 36 of the Public Offering Prospectus**. If any of the PRC subsidiaries incur debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to the Cayman Islands holding company. Cash transfers from the PRC subsidiaries to the Cayman Islands holding company are also subject to the current PRC regulations, which permit the PRC subsidiaries to pay dividends to their shareholders only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. Cash transfers from the Cayman Islands holding company to the investors are subject to the restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion.** See "*Risk Factors — Risks Related to Doing Business in the PRC — Restrictions on the remittance of Renminbi into and out of China and governmental control of currency conversion may limit our ability to pay dividends and other obligations and affect the value of your investment,*" beginning on page 37 of the Public Offering Prospectus**. Additionally, to the extent cash or assets in the business is in China or a PRC subsidiary, the funds or assets may not be available to fund operations or for other use outside of China due to interventions in or the imposition of restrictions and limitations on the ability of our Company or the Operating Entities by the PRC government to transfer cash or assets.** See "*Prospectus Summary — Cash Transfers and Dividend Distributions*," "*Risk Factors — Risks Related to Doing Business in the PRC — We may rely on dividends and other distributions on equity paid by the Operating Entities to fund any cash and financing requirements we may have. To the extent funds or assets in the business are in the PRC or a PRC entity, the funds or assets may not be available to fund operations or for other use outside of the PRC due to interventions in or the imposition of restrictions, and limitations on the ability of our Company or PRC/Hong Kong subsidiaries by the PRC government to make payments to us and our investors, which could have a material and adverse effect on our ability to conduct our business.*" beginning on page 35 of the Public Offering Prospectus.

Following the completion of this offering, our issued and outstanding share capital will consist of Class A ordinary shares and Class B ordinary shares. Holders of Class A ordinary shares and Class B ordinary shares have the same rights, except for voting, transfer and conversion rights. Each Class A ordinary share is entitled to one (1) vote, and each Class B ordinary share is entitled to ten (10) votes. Upon the completion of this offering, we will be a "controlled company" as defined under Nasdaq Marketplace Rules 5615(c), because Mr. Baitong Tang, our Chief Executive Officer, will hold, directly and indirectly, more than 50% of the voting power. See "*Risk Factors — Risks Related to the ADSs and this Offering — We are a "controlled company" within the meaning of the Nasdaq listing standards and, as a result, will qualify for, and intend to rely on, exemptions from certain corporate governance requirements. You will not have the same protections afforded to shareholders of companies that are subject to such requirements.*" beginning on page 43 of the Public Offering Prospectus.

**Neither the U.S. Securities and Exchange Commission nor any state securities commission nor any other regulatory body has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.**

Prospectus dated __________, 2026

**THE OFFERING**

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| | |
|:---|:---|
| ADSs offered by us | 0 |
| ADSs offered by the Selling Shareholder | 1,500,000 ADSs representing 6,000,000 Class A ordinary shares |
| Ordinary Shares outstanding before the offering | 159,000,610 ordinary shares, comprising 125,000,610 Class A ordinary shares and 34,000,000 Class B ordinary shares |
| ADSs outstanding immediately after this offering<sup>(1)(2)</sup> | 3,335,000 ADSs |
| Ordinary Shares outstanding immediately after this offering<sup>(1)(2)</sup> | 172,340,610 ordinary shares, comprising 138,340,610 Class A ordinary shares and 34,000,000 Class B ordinary shares |
| Use of proceeds | We will not receive any of the proceeds from the sale of the ADSs by the Selling Shareholder named in this prospectus. |

---

(1) Including 3,335,000 ADSs representing 13,340,000 Class A ordinary shares to be sold by the Company, and excluding 166,750 ADSs underlying the Underwriter Purchase Option, pursuant to the Public Offering Prospectus.

(2) Assumes that the underwriters' over-allotment option has not been exercised.

**USE OF PROCEEDS**

We will not receive any of the proceeds from the sale of ADSs by the Selling Shareholder. In addition, the underwriters will not receive any compensation from the sale of the ADSs by the Selling Shareholder. The Selling Shareholder will receive all of the net proceeds from the sales of Shareholder ADSs under this prospectus. We have agreed to bear the expenses relating to the registration of the ADSs for the Selling Shareholder.

**SELLING SHAREHOLDER**

The following sets forth the name of the Selling Shareholder, the nature of any position, office or other material relationship, if any, that the Selling Shareholder has had within the past three years with us or with any of our predecessors or affiliates, the number of Class A ordinary shares owned by the Selling Shareholder immediately prior to the date of this prospectus and the number of ADSs to be offered by the Selling Shareholder pursuant to the Resale Prospectus. The table also provides information regarding the beneficial ownership of our ordinary shares by the Selling Shareholder as adjusted to reflect the assumed sale of all of the ADSs offered under the Public Offering Prospectus and the Resale Prospectus.

Beneficial ownership is based on information furnished by the Selling Shareholder. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all ordinary shares shown as beneficially owned by them.

The Selling Shareholder is not a broker-dealer or an affiliate of a broker-dealer. For the ADSs to be offered by the Selling Shareholder, they do not have an agreement or understanding to distribute any of the ADSs being registered. The Selling Shareholder may offer for sale from time to time any or all of the ADSs. The table below assumes that the Selling Shareholder will sell all of the ADSs offered for sale by the Resale Prospectus.

Beneficial ownership is determined in accordance with the rules of the SEC and generally requires that such person have voting or investment power with respect to securities. In computing the number of ordinary shares beneficially owned by a person listed below and the percentage ownership of such person, ordinary shares underlying options, warrants, or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus are deemed outstanding, but are not deemed outstanding for computing the percentage ownership of any other person.

The Company may require the Selling Shareholder to suspend the sales of ADSs offered by this prospectus upon the occurrence of any event that makes any statement in this prospectus or the related registration statement untrue in any material respect or that requires the changing of statements in these documents in order to make statements in those documents not misleading.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name of Selling Shareholder** | **Amount of <br> Beneficial <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(1)</sup>** | **Pre-<br> Offering <br> Percentage <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(2)</sup>** | **Number of ADSs to be Sold** | **Number of Underlying Class A <br> Ordinary <br> Shares** | **Post-<br> Offering <br> Percentage <br> Ownership <br> of Class A <br> Ordinary <br> Shares<sup>(2)(3)</sup>** | **Post-<br> Offering<br> Combined<br> Voting<br> Power of<br> Class A<br> and Class B<br> Ordinary<br> Shares<sup>(2)(3)</sup>** |
| South Kensington Investment Limited | 6000000<sup>(4)</sup> | 4.80% | 1500000 | 6000000 | 0% | 0% |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Beneficial
 ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the Class
 A ordinary shares and Class B ordinary shares. All shares represent only ordinary shares held by shareholders as no options are issued
 or outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Calculation
 based on 125,000,610 Class A ordinary shares and 34,000,000 Class B ordinary shares issued
 and outstanding immediately before the offering. Each Class A Ordinary Share shall entitle
 the holder thereof to one vote on all matters subject to vote at general meetings of the
 Company. Each Class B Ordinary Share shall entitle the holder thereof to ten votes on all
 matters subject to vote at general meetings of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;(3) Assuming 3,335,000 ADSs are issued in this offering
 of Public Offering ADSs and assuming no exercise of the underwriters' over-allotment option.

(4) These
 shares are held by South Kensington Investment Limited, a British Virgin Islands company. Wenguang Ding is the sole director
 of South Kensington Investment Limited. South Kensington Investment Limited is 100% held by Black Spade Ltd. The registered
 address of South Kensington Investment Limited is Start Chambers, Wickham's Cay II, P. O. Box 2221, Road Town, Tortola, British
 Virgin Islands.

**Relationships with the Selling Shareholder**

Shenzhen ABGreen Environmental Protection Technology Co., Ltd ("ABGreen Shenzhen") entered into a loan agreement with China Link (Shenzhen) Management Consulting Co., LTD ("China Link") on January 18, 2024, pursuant to which ABGreen Shenzhen borrowed RMB 9 million from China Link as unsecured short-term working capital loans for its daily operations, with a loan term of one year and an annual interest rate of 1%. Concurrently, the Company, ABGreen Shenzhen, and China Link entered into a supplementary agreement to the loan agreement on January 18, 2024, agreeing that South Kensington Investment Limited, the Selling Shareholder, which is 100% owned by Black Spade Ltd, who is also the sole shareholder of China Link, has the right to have the 6,000,000 Class A ordinary shares owned by it registered by the Company in the Company's initial public offering to resell the 6,000,000 Class A ordinary shares. The Selling Shareholder is a passive investor without any other relationships with the Company other than described herein.

**PLAN OF DISTRIBUTION**

The Selling Shareholder and any of its pledgees, donees, assignees and successors-in-interest may, from time to time, after the effective date of the registration statement of which this Resale Prospectus forms a part, sell any or all of the ADSs being offered under this Resale Prospectus on any stock exchange, market or trading facility on which the ADSs are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Shareholder will not offer for sale the Shareholder ADSs covered by the Resale Prospectus at the initial public offering price of the Public Offering ADSs until such time as the ADSs are listed on Nasdaq. Thereafter, the Selling Shareholder may sell the Shareholder ADSs covered by the Resale Prospectus from time to time, at market prices prevailing at the time of sale, at prices related to market prices, at a fixed price or prices subject to change or at negotiated prices, or in any manner permitted by the Securities Act, including any one or more of the following ways:

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the ADSs as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resales by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● to cover short sales made after the date that the registration statement of which this prospectus is a part is declared effective by the SEC;

● broker-dealers may agree with the Selling Shareholder to sell a specified number of such ADSs at a stipulated price per share;

● a combination of any of these methods of sale; and

● any other method permitted pursuant to applicable law.

The ADSs may also be sold under Rule 144 under the Securities Act of 1933, as amended, if available for a Selling Shareholder, rather than under this prospectus. The Selling Shareholder has the sole and absolute discretion not to accept any purchase offer or make any sale of ADSs if they deem the purchase price to be unsatisfactory at any particular time.

The Selling Shareholder may pledge their ADSs to its brokers under the margin provisions of customer agreements. If a Selling Shareholder defaults on a margin loan, the broker may, from time to time, offer and sell the pledged ADSs.

Broker-dealers engaged by the Selling Shareholder may arrange for other broker-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Shareholder (or, if any broker-dealer acts as agent for the purchaser of ADSs, from the purchaser) in amounts to be negotiated, which commissions as to a particular broker or dealer may be in excess of customary commissions to the extent permitted by applicable law.

If sales of ADSs offered under the Resale Prospectus are made to broker-dealers as principals, we would be required to file a post-effective amendment to the registration statement of which the Resale Prospectus forms a part. In the post-effective amendment, we would be required to disclose the names of any participating broker-dealers and the compensation arrangements relating to such sales.

The Selling Shareholder and any broker-dealers or agents that are involved in selling the ADSs offered under the Resale Prospectus may be deemed to be "underwriters" within the meaning of the Securities Act in connection with these sales. Commissions received by these broker-dealers or agents and any profit on the resale of the ADSs purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act. Any broker-dealers or agents that are deemed to be underwriters may not sell ADSs offered under the Resale Prospectus unless and until we set forth the names of the underwriters and the material details of their underwriting arrangements in a supplement to the Resale Prospectus or, if required, in a replacement prospectus included in a post-effective amendment to the registration statement of which the Resale Prospectus forms a part.

The Selling Shareholder and any other persons participating in the sale or distribution of the ADSs offered under the Resale Prospectus will be subject to applicable provisions of the Exchange Act, and the rules and regulations under that act, including Regulation M. These provisions may restrict activities of, and limit the timing of purchases and sales of any of the ADSs by, the Selling Shareholder or any other person. Furthermore, under Regulation M, persons engaged in a distribution of securities are prohibited from simultaneously engaging in market making and other activities with respect to those securities for a specified period of time prior to the commencement of such distributions, subject to specified exceptions or exemptions. All of these limitations may affect the marketability of the securities.

The Selling Shareholder may enter into hedging transactions with broker-dealers or other financial institutions. In connection with such transactions, broker-dealers or other financial institutions may engage in short sales of the ADSs in the course of hedging transactions, broker-dealers or other financial institutions may engage in short sales of the ADSs in the course of hedging the positions they assume with a Selling Shareholder. The Selling Shareholder may also sell the Shareholder ADSs short and redeliver the securities to close out such short positions. The Selling Shareholder may also enter into option or other transactions with broker-dealers or other financial institutions which require the delivery to such broker-dealer or other financial institution of the Shareholder ADSs offered by the Resale Prospectus, which shares such broker-dealer or other financial institution may resell pursuant to such prospectus, as supplemented or amended to reflect such transaction to the extent required. The Selling Shareholder may also pledge the Shareholder ADSs offered hereby to a broker-dealer or other financial institution, and, upon a default, such broker-dealer or other financial institution, may effect sales of the pledged Shareholder ADSs pursuant to the Resale Prospectus, as supplemented or amended to reflect such transaction to the extent required.

The Selling Shareholder may enter into derivative transactions with third parties or sell the Shareholder ADSs to third parties in privately negotiated transactions. If the applicable prospectus supplement indicates, in connection with those derivatives, the third parties may sell the Shareholder ADSs covered by the Resale Prospectus and the applicable prospectus supplement, including in short sale transactions. If so, the third party may use Shareholder ADSs pledged by the Selling Shareholder or borrowed from the Selling Shareholder or others to settle those sales or to close out any related open borrowings of stock and may use such Shareholder ADSs received from such Selling Shareholder in settlement of those derivatives to close out any related open borrowings of stock. The third party in such sale transactions will be an underwriter and, if not identified in the Resale Prospectus, will be identified in the applicable prospectus supplement (or a post-effective amendment).

We may authorize underwriters, dealers and agents to solicit from third parties offers to purchase Shareholder ADSs under contracts providing for payment and delivery on future dates. The applicable prospectus supplement will describe the material terms of these contracts, including any conditions to the purchasers' obligations, and will include any required information about commissions we may pay for soliciting these contracts.

Such underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to other underwriters a portion of the underwriting discount received by it because the representatives have repurchased ADSs sold by or for the account of such underwriter in stabilizing or short covering transactions.

Purchases to cover a short position and stabilizing transactions may have the effect of preventing or retarding a decline in the market price of ADSs, and together with the imposition of the penalty bid, may stabilize, maintain or otherwise affect the market price of ADSs. As a result, the price of ADSs may be higher than the price that otherwise might exist in the open market. If these activities are commenced, they may be discontinued at any time.

In addition, a Selling Shareholder that is an entity may elect to make a pro rata in-kind distribution of securities to its members, partners or stockholders pursuant to the registration statement of which the Resale Prospectus forms a part by delivering a prospectus. Such members, partners or stockholders would thereby receive freely tradeable ADSs pursuant to the distribution through such registration statement. To the extent a distributee is an affiliate of ours (or to the extent otherwise required by law), we may file a prospectus supplement in order to permit the distributees to use such prospectus to resell such ADSs acquired in such distribution.

The Shareholder ADSs covered by the Resale Prospectus may also be sold in private transactions or under Rule 144 under the Securities Act rather than pursuant to such prospectus.

If any of the ADSs offered for sale pursuant to the Resale Prospectus are transferred other than pursuant to a sale under the Resale Prospectus, then subsequent holders could not use the Resale Prospectus until a post-effective amendment or prospectus supplement is filed, naming such holders. We offer no assurance as to whether the Selling Shareholder will sell all or any portion of the ADSs offered under the Resale Prospectus.

We have agreed to pay all fees and expenses we incur incident to the registration of the ADSs being offered under the Resale Prospectus. However, the Selling Shareholder and each purchaser is responsible for paying any discounts, and similar selling expenses they incur.

We and the Selling Shareholder have agreed to indemnify one another against certain losses, damages and liabilities arising in connection with the Resale Prospectus, including liabilities under the Securities Act.

![](formdrs_001.jpg)

**Carbon Zero Technologies International Inc.**

 **1,500,000 American Depositary Shares**

**Representing 6,000,000 Class A Ordinary Shares**

Prospectus dated __________, 2026

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 6. Indemnification of Directors and Officers**

Cayman Islands law does not limit the extent to which a company's articles of association may provide indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to the public policy, such as providing indemnification against civil fraud or the consequences of committing a crime.

Our amended and restated memorandum and articles of association provide that to the extent permitted by law, the Company shall indemnify each existing or former director (including alternate director), secretary and other officer (including an investment adviser or an administrator or liquidator) and their personal representatives against: (a) all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by the existing or former director (including alternate director), secretary and other officer in or about the conduct of the Company's business or affairs or in the execution or discharge of the existing or former director's, secretary's or officer's duties, powers, authorities or discretions; and (b) without limitation to paragraph (a), all costs, expenses, losses or liabilities incurred by the existing or former director (including alternate director), secretary and other officer in defending (whether successfully or otherwise) any civil, criminal, administrative or investigative proceedings (whether threatened, pending or completed) concerning the Company or its affairs in any court or tribunal, whether in the Cayman Islands or elsewhere. No such existing or former director (including alternate director), secretary and other officer, however, shall be indemnified in respect of any matter arising out of his own fraud, willful default or willful neglect. To the extent permitted by law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing or former director (including alternate director), secretary or any of our officers in respect of any matter identified in above on condition that the director (including alternate director), secretary or officer must repay the amount paid by us to the extent that we are ultimately found not liable to indemnify the director (including alternate director), the secretary or that officer for those legal costs. See our amended and restated memorandum and articles of association filed as Exhibit 3.1 to this registration statement.

Under the form of indemnification agreement to be filed as Exhibit 10.1 to this registration statement, we will agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or executive officer.

The form of underwriting agreement to be filed as Exhibit 1.1 to this registration statement will also provide for indemnification of us and our officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us under the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

**Item 7. Recent Sales of Unregistered Securities**

During the past three years, we have issued the following securities. We believe that each of the following issuances was exempt from registration under the Securities Act in reliance on Regulation D under the Securities Act or pursuant to Section 4(a)(2) of the Securities Act regarding transactions not involving a public offering or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions. We believe that our issuance of options to our employees, directors, officers and consultants were exempt from registration under the Securities Act in reliance on Rule 701 under the Securities Act. No underwriters were involved in these issuances of securities. As of the date of this prospectus, we have an aggregate of 125,000,610 Class A ordinary shares and 34,000,000 Class B ordinary shares issued and outstanding. See "Principal Shareholders."

On July 13, 2023, the date of the incorporation of Carbon Zero Technologies International Inc., 1 Class A ordinary share was issued to Osiris International Cayman Limited. On July 13, 2023, the 1 Class A ordinary share was transferred from Osiris International Cayman Limited to Arrowmask Investment Limited and Carbon Zero Technologies International Inc. further issued the following shares on the same date:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Classes of Ordinary Shares** | **Date of <br> Issuance** | **Number of <br> Shares Issued** |
| Expola Investment Limited | Class B ordinary shares | July 13, 2023 | 34000000 |
| Beveist Investment Limited | Class A ordinary shares | July 13, 2023 | 22526500 |
| Getcher Investment Limited | Class A ordinary shares | July 13, 2023 | 21560000 |
| Endoeval Investment Limited | Class A ordinary shares | July 13, 2023 | 20250506 |
| Unatee Investment Limited | Class A ordinary shares | July 13, 2023 | 13080000 |
| Groadse Investment Limited | Class A ordinary shares | July 13, 2023 | 10244573 |
| Brookline Management Limited | Class A ordinary shares | July 13, 2023 | 7000000 |
| Sprint Investment Limited | Class A ordinary shares | July 13, 2023 | 6780000 |
| South Kensington Investment Limited | Class A ordinary shares | July 13, 2023 | 6000000 |
| Prospe Investment Limited | Class A ordinary shares | July 13, 2023 | 4740000 |
| Gravel Investment Limited | Class A ordinary shares | July 13, 2023 | 2548902 |
| Arrowmask Investment Limited | Class A ordinary shares | July 13, 2023 | 2179999 |
| Rocage Investment Limited | Class A ordinary shares | July 13, 2023 | 2000000 |
| Eagletree Investment Limited | Class A ordinary shares | July 13, 2023 | 1733170 |
| Dumace Investment Limited | Class A ordinary shares | July 13, 2023 | 1241584 |
| Seekant Investment Limited | Class A ordinary shares | July 13, 2023 | 1241584 |
| Feyond Investment Limited | Class A ordinary shares | July 13, 2023 | 765604 |
| Bisoon Investment Limited | Class A ordinary shares | July 13, 2023 | 418347 |
| Paulee Investment Limited | Class A ordinary shares | July 13, 2023 | 275941 |
| Schrodier Investment Limited | Class A ordinary shares | July 13, 2023 | 275941 |
| Chaingi Investment Limited | Class A ordinary shares | July 13, 2023 | 137958 |

---

**Item 8. Exhibits and Financial Statement Schedules**

**(a) Exhibits**

See Exhibit Index beginning on page II-3 of this registration statement.

**(b) Financial Statement Schedules**

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the Consolidated Financial Statements or the Notes thereto.

**Item 9. Undertakings.**

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 6, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For
 purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of
 this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant under Rule 424(b)(1)
 or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared
 effective.

(2) For
 the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus
 shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities
 at that time shall be deemed to be the initial bona fide offering thereof.

(3) To file, during any period in which offers
 or sales are being made, a post-effective amendment to this Registration Statement: (i) To include any prospectus required by
 section 10(a)(3) of the Securities Act of 1933; (ii) To reflect in the prospectus any facts
 or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which,
 individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding
 the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not
 exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected
 in the form of prospectus filed with the Commission pursuant to Rule 424(b) (§230.424(b) of this chapter) if, in the aggregate,
 the changes in volume and price represent no more than 20% change in the maximum aggregate Offering Price set forth in the "Calculation
 of Registration Fee" table in the effective Registration Statement; and (iii) To include any material information
 with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information
 in the Registration Statement.

(4) That, for the purpose of determining any
 liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new Registration Statement
 relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial
 bona fide offering thereof.

(5) To remove from registration by means of
 a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(6) To file a post-effective amendment to the Registration Statement
 to include any financial statements required by Item 8.A. of Form 20-F at the start of any delayed offering or throughout a continuous
 offering, unless the registrant includes in the prospectus, by means of a post-effective amendment, financial statements required
 pursuant to this paragraph and other information necessary to ensure that all other information in the prospectus is at least as
 current as the date of those financial statements.

(7) That, for the purpose of determining liability
 under the Securities Act to any purchaser: (i) each prospectus filed pursuant to Rule
 424(b)(3) (§ 230.424(b)(3) of this chapter) shall be deemed to be part of the registration statement as of the date the filed
 prospectus was deemed part of and included in the registration statement; and (ii) Each prospectus required to be filed
 pursuant to Rule 424(b)(2), (b)(5), or (b)(7) (§ 230.424(b)(2), (b)(5), or (b)(7) of this chapter) as part of a registration
 statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (vii), or (x) (§ 230.415(a)(1)(i),
 (vii), or (x) of this chapter) for the purpose of providing the information required by section 10(a) of the Securities Act of 1933
 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is
 first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus.
 As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall
 be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which
 that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
 Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or
 made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of
 the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify
 any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any
 such document immediately prior to such effective date.

(8) For
 the purpose of determining any liability of the registrant under the Securities Act to any purchaser in the initial distribution of
 the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant
 to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
 are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller
 to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any
 preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii) Any
 free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the
 undersigned registrant;

(iii) The
 portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant
 or its securities provided by or on behalf of the undersigned registrant; and

(iv) Any
 other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

**EXHIBITS INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **<br> Description of Exhibit** |
| 1.1\* | [Form of Underwriting Agreement.](ex1-1.htm) |
| 3.1\*\* | [Amended and Restated Memorandum and Articles of Association of the Registrant.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224034341/ex3-1.htm) |
| 4.1\*\* | [Form of Specimen American Depositary Receipt (included in Exhibit 4.4).](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex4-4.htm) |
| 4.2\*\* | [Registrant's Specimen Certificate for Class A ordinary shares.](https://www.sec.gov/Archives/edgar/data/1997182/000164117225005904/ex4-2.htm) |
| 4.3\*\* | [Form of Underwriter Purchase Option (included in Exhibit 1.1).](https://www.sec.gov/Archives/edgar/data/1997182/000164117225011896/ex1-1.htm) |
| 4.4\* | [Form of Deposit Agreement among the Registrant, the depositary, owners and holders of the American Depositary Shares.](ex4-4.htm) |
| 5.1\* | [Opinion of Ogier regarding the validity of the ordinary shares being registered.](ex5-1.htm) |
| 5.2\* | [Opinion of Rimon, P.C. regarding the validity of the Underwriter Purchase Option being registered.](ex5-2.htm) |
| 8.1\* | [Opinion of Ogier regarding certain Cayman Islands tax matters (included in Exhibit 5.1).](ex5-1.htm) |
| 8.2\* | [Opinion of Zhong Lun Law Firm regarding certain PRC tax matters (included in Exhibit 99.1).](ex99-1.htm) |
| 10.1\*\* | [Form of Indemnification Agreement between the Registrant and each of its directors and executive officers.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-1.htm) |
| 10.2\*\* | [Form of Employment Agreement between the Registrant and an executive officer of the Registrant.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-2.htm) |
| 10.3\*\* | [English Translation of Form of Sorting Center Cooperation Agreement between ABGreen Shenzhen and its Partners.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-3.htm) |
| 10.4\*\* | [English Translation of Form of Recycling Services Agreement between ABGreen Shenzhen and the Recycling Stations.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-4.htm) |
| 10.5\*\* | [English Translation of Form of Cooperation Agreement between ABGreen Shenzhen and the Regional Business Partners.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-5.htm) |
| 10.6\*\* | [English Translation of Investment Agreement among ABGreen Shenzhen, Baitong Tang and Kewen Lin, dated January 19, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-6.htm) |
| 10.7\*\* | [English Translation of Investment Agreement among ABGreen Shenzhen, Baitong Tang and Lijun Zhao, dated January 19, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-7.htm) |
| 10.8\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Shuo Li, dated October 22, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-8.htm) |
| 10.9\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Yaping Wang, dated November 1, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-9.htm) |
| 10.10\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Qinghong Chen, dated November 2, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-10.htm) |
| 10.11\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Ronghua Yang, dated November 3, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-11.htm) |
| 10.12\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Zhiai Lu, dated November 4, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-12.htm) |
| 10.13\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Jiuhao Zhang, dated November 4, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-13.htm) |
| 10.14\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Kewen Lin, dated November 5, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-14.htm) |
| 10.15\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Liguang Chen, dated November 5, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-15.htm) |
| 10.16\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Zhongxuan Ban, dated November 7, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-16.htm) |
| 10.17\*\* | [English Translation of Investment Agreement among CZTI Shenzhen, Baitong Tang and Jingkai Li, dated November 10, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-17.htm) |
| 10.18\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Liguang Chen, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-18.htm) |
| 10.19\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Qinghong Chen, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-19.htm) |
| 10.20\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Zhongxuan Ban, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-20.htm) |
| 10.21\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Yaping Wang, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-21.htm) |
| 10.22\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Kewen Lin, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-22.htm) |
| 10.23\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Ronghua Yang, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-23.htm) |
| 10.24\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Shuo Li, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-24.htm) |
| 10.25\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Jingkai Li, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-25.htm) |
| 10.26\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Jiuhao Zhang, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-26.htm) |
| 10.27\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among CZTI Shenzhen, BJ ABGreen RSC and Zhiai Lu, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-27.htm) |
| 10.28\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among ABGreen Shenzhen, BJ ABGreen RSC and Kewen Lin, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-28.htm) |
| 10.29\*\* | [English Translation of Creditor's Rights and Debt Relationship Confirmation and Loan Agreement among ABGreen Shenzhen, BJ ABGreen RSC and Lijun Zhao, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-29.htm) |
| 10.30\*\* | [English Translation of Confirmation Agreement of Offsetting between Creditors' Rights and Debt among BJ ABGreen RSC, ABGreen Shenzhen, CZTI Shenzhen, Kewen Lin, Lijun Zhao, Shuo Li, Jingkai Li, Qinghong Chen, Yaping Wang, Ronghua Yang, Jiuhao Zhang, Zhiai Lu, Zhongxuan Ban, Liguang Chen, dated July 1, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-30.htm) |
| 10.31\*\* | [English Translation of Credit Line Agreement between ABGreen Shenzhen and Ping An Bank Company limited Shenzhen Branch, dated August 19, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-31.htm) |
| 10.32\*\* | [English Translation of Maximum Amount Guarantee Agreement between Baitong Tang, Cuili Zhang and Ping An Bank Company limited Shenzhen Branch, dated September 16, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-32.htm) |
| 10.33\*\* | [English Translation of Loan Agreement between ABGreen Shenzhen and Ping An Bank Company limited Shenzhen Branch, dated September 27, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-33.htm) |
| 10.34\*\* | [English Translation of Loan Agreement between ABGreen Shenzhen and Rongping Xing, dated May 22, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-34.htm) |
| 10.35\*\* | [English Translation of Loan Agreement between Zhoukou Senbo and Shenzhen Qianhai Micro Public Bank Co. Ltd., dated September 15, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-35.htm) |
| 10.36\*\* | [English Translation of Loan Agreement between Zhoukou Senbo and Shenzhen Qianhai Micro Public Bank Co. Ltd., dated September 15, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-36.htm) |
| 10.37\*\* | [English Translation of Loan Agreement between ABGreen Fuyang, Haibin Lin and China Construction Bank Corporation Jieshou Sub-branch, dated September 5, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-37.htm) |
| 10.38\*\* | [English Translation of Loan Agreement between ABGreen Fuyang and Shenzhen Qianhai Micro Public Bank Co. Ltd., dated July 17, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-38.htm) |
| 10.39\*\* | [English Translation of Loan Agreement between ABGreen Fuyang and Shenzhen Qianhai Micro Public Bank Co. Ltd., dated July 17, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-39.htm) |
| 10.40\*\* | [English Translation of Loan Agreement between Jinyou Metal, Qinqin Zhang and China Construction Bank Corporation Zhumadian Branch, dated May 25, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-40.htm) |
| 10.41\*\* | [English Translation of Loan Agreement between Jinyou Metal and Industrial and Commercial Bank of China Limited Xiping Branch, dated December 13, 2023.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-41.htm) |
| 10.42\*\* | [English Translation of Vehicle Mortgage Agreement between Jinyou Metal, Qinqin Zhang and BMW Automotive Finance (China) Co., Ltd, dated May 20, 2022.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex10-42.htm) |
| 10.43\*\* | [English Translation of Loan Agreement between ABGreen Shenzhen and China Link, dated January 18, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224047960/ex10-43.htm) |
| 10.44\*\* | [English Translation of Supplementary Agreement to the Loan Agreement among the Company, ABGreen Shenzhen and China Link, dated January 18, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224047960/ex10-44.htm) |
| 10.45\*\* | [English Translation of Equity Transfer Agreement between Carbon Source HK, Xiangying Xiang and Xinliang Wang, respectively, dated October 30, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000164117225011896/ex10-45.htm) |
| 10.46\*\* | [English Translation of Equity Transfer Agreement among Jingchuang Metal, Carbon Source HK, and Jiangxi Xindifeng New Materials Co., Ltd, dated November 1, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000164117225011896/ex10-46.htm) |
| 10.47\*\* | [English Translation of Equity Transfer Agreement among Shenzhen Chuangzhiyuan, Hebei Jushang, and Renlu Dong, dated August 28, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000164117225011896/ex10-47.htm) |
| 10.48\*\* | [English Translation of Equity Transfer Agreement among Jiangxi Qi Hong New Material Technology Co., Ltd, Carbon Source HK, and Shanghai Zhongyaocheng Mining Industry Co., Ltd., dated October 31, 2024.](https://www.sec.gov/Archives/edgar/data/1997182/000164117225011896/ex10-48.htm) |
| 21.1\* | [List of the Registrant's Subsidiaries.](ex21-1.htm) |
| 23.1\* | [Consent of Marcum Asia CPAs LLP](ex23-1.htm). |
| 23.2\* | [Consent of Ogier (included in Exhibit 5.1).](ex5-1.htm) |
| 23.3\* | [Consent of Zhong Lun Law Firm (included in Exhibit 99.1).](ex99-1.htm) |
| 23.4\* | [Consent of China Insights Industry Consultancy Limited.](ex23-4.htm) |
| 23.5\* | [Consent of Rimon, P.C. (included in Exhibit 5.2)](ex5-2.htm) |
| 99.1\* | [Opinion of Zhong Lun Law Firm regarding certain PRC law matters.](ex99-1.htm) |
| 99.2\*\* | [Code of Business Conduct and Ethics.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex99-2.htm) |
| 99.3\*\* | [Audit Committee Charter.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex99-3.htm) |
| 99.4\*\* | [Compensation Committee Charter.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex99-4.htm) |
| 99.5\*\* | [Nominating Committee Charter.](https://www.sec.gov/Archives/edgar/data/1997182/000149315224030920/ex99-5.htm) |
| 99.6\* | [Consent of Ho Ka Chun, Independent Director Nominee.](ex99-6.htm) |
| 99.7\* | [Consent of Victor Ten Tian Hock, Independent Director Nominee.](ex99-7.htm) |
| 99.8\* | [Consent of Kenneth Charles Rumph, Independent Director Nominee.](ex99-8.htm) |
| 107\* | [Calculation of Filing Fee Table.](ex107.htm) |

---

\* Filed herewith

\*\* Previously filed

**SIGNATURES**

Pursuant to the requirements of the Securities Act, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Shenzhen, People's Republic of China, on May 26, 2026.

---

| | |
|:---|:---|
| Carbon Zero Technologies International Inc. | Carbon Zero Technologies International Inc. |
| By: | */s/ Baitong Tang* |
| Name: | Baitong Tang |
| Title: | Chief Executive Officer (Principal Executive Officer), and Chairman of the Board of Directors |
| By: | */s/ Lili Guan* |
| Name: | Lili Guan |
| Title: | Chief Financial Officer (Principal Financial and Accounting Officer) and Director |

---

**AUTHORIZED REPRESENTATIVE IN THE UNITED STATES**

Pursuant to the Securities Act of 1933, the undersigned, the duly authorized representative in the United States of Carbon Zero Technologies International Inc., has signed this registration statement or amendment thereto in New York, New York on May 26, 2026.

---

| | |
|:---|:---|
| **Authorized U.S. Representative**  | **Authorized U.S. Representative**  |
| **Cogency Global Inc.**  | **Cogency Global Inc.**  |
| By: | */s/ Colleen A. De Vries* |
| Name: | Colleen A. De Vries <br>|
| Title: | Sr. Vice President on behalf of Cogency Global Inc. |

---

## Exhibit 1.1

**Exhibit 1.1**

**CARBON ZERO TECHNOLOGY INTERNATIONAL INC.**

**UNDERWRITING AGREEMENT**

_________, 2026

Ninth Eternity Securities LLC

1 Broadway, 14th Floor

Cambridge, MA 02412

As Representative of the Underwriters

named on <u>Schedule I</u> hereto

Ladies and Gentlemen:

The undersigned, Carbon Zero Technologies International Inc., a Cayman Islands exempted company (the "**Company**"), hereby confirms its agreement (this "**Agreement**") to issue and sell to the underwriter or underwriters, as the case may be, named in Schedule I hereto (each, an "**Underwriter**" and, collectively, the "**Underwriters**"), for whom Ninth Eternity Securities LLC is acting as representative (in such capacity, the "**Representative**"), (A) an aggregate of ________ Class A ordinary shares, to be delivered in the form of an aggregate of ________ American Depositary Shares (the "**Firm ADSs**"), each American Depositary Share ("**ADS**") representing ________ Class A ordinary shares, par value $0.00001 per share of the Company ("**Class A Ordinary Shares**") and (B) at the election of the Representative, up to an additional ________ ADSs (the "**Option ADSs**", and together with the Firm ADSs, the "**Securities**"). The offering and sale of the Securities contemplated by this Agreement is referred to herein as the "**Offering**". The Securities are to be deposited pursuant to a deposit agreement dated as of ________, 2026 (the "**Deposit Agreement**"), entered into by and among the Company, The Bank of New York Mellon, as depositary (the "**Depositary**"), and holders and beneficial holders from time to time of the American Depositary Receipts (the "**ADRs**") issued by the Depositary and evidencing the ADSs. Each ADS will initially represent ________ Class A Ordinary Shares deposited pursuant to the Deposit Agreement.

1. <u>Securities; Over-Allotment Option</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Purchase of Firm ADSs</u>. On the basis of the representations and warranties herein contained, but subject to the terms and conditions herein set forth, the Company agrees to issue and sell, severally and not jointly, to the several Underwriters, an aggregate of ________ Firm ADSs, representing an aggregate of ________ Class A Ordinary Shares, (the "**Firm Shares**"), at a purchase price of $________ per Firm ADS (the "**Purchase Price**") which represents a discount of seven and three-tenth percent (7.3%) to the public offering price per Firm ADS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm ADSs set forth opposite their respective names on <u>Schedule I</u> attached hereto and made a part hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment and Delivery</u>. Delivery and payment for the Firm ADSs shall be made at 10:00 a.m., New York time, on the first Business Day following the effective date (the "**Effective Date**") of the Registration Statement (as hereinafter defined) (or the second Business Day following the Effective Date, if the Registration Statement is declared effective after 4:00 p.m. New York time) or at such other time as shall be agreed upon by the Representative and the Company at the offices of the Representative or at such other place as shall be agreed upon by the Representative and the Company. The hour and date of delivery and payment for the Firm ADSs is called the "**Closing Date**." The closing of the payment of the purchase price for, and delivery of certificates representing, the Firm ADSs is referred to herein as the "**Closing**." Payment for the Firm ADSs shall be made on the Closing Date by wire transfer in immediately available funds and, upon receipt of which, delivery of certificates (in form and substance satisfactory to the Underwriters) representing the Firm ADSs (or delivery through the full fast transfer facilities of the Depository Trust Company (the "**DTC**")) for the account of the Underwriters shall be made. The Firm ADSs shall be registered in such name or names and in such authorized denominations as the Representative may request in writing at least one Business Day prior to the Closing Date. The Company will permit the Representative to examine and package the Firm ADSs for delivery, at least one Business Day prior to the Closing Date. The Company shall not be obligated to sell or deliver the Firm ADSs except upon tender of payment by the Representative for all the Firm ADSs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Over-allotment Option</u>. For the purposes of covering any over-allotments in connection with the distribution and sale of the Firm ADSs, the Representative on behalf of the Underwriters are hereby granted an option (the "**Over-Allotment Option**") to purchase up to an additional ________ Option ADSs, representing ________ Class A Ordinary Shares (the "**Option Shares**"), at the initial public offering price representing fifteen percent (15%) of the Firm ADSs sold in the Offering from the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Exercise of Option</u>. The Over-allotment Option granted pursuant to Section 1(d) hereof may be exercised by the Representative as to all (at any time) or any part (from time to time) of the Option ADSs within 45 days after the Closing Date. The Underwriters will not be under any obligation to purchase any of such Option ADSs prior to the exercise of the Over-allotment Option. The Over-allotment Option granted hereby may be exercised by the giving of written notice to the Company from the Representative, setting forth the number of Option ADSs to be purchased and the date and time for delivery of and payment for such Option ADSs, which will not be later than three Business Days after the date of the notice or such other time as shall be agreed upon by the Company and the Representative, at the offices of the Representative or at such other place as shall be agreed upon by the Company and the Representative. If such delivery and payment for all of the Option ADSs does not occur on the Closing Date, the date and time of the closing for such Option ADSs will be as set forth in the notice (hereinafter the "**Option Closing Date**"). Upon exercise of the Over-allotment Option, the Company will become obligated to convey to the Underwriters, and, subject to the terms and conditions set forth herein, the Underwriters will become obligated to purchase, the number of Option ADSs specified in such notice. If any Option ADSs are to be purchased, each Underwriter agrees, severally and not jointly, to purchase the number of Option ADSs (subject to such adjustments to eliminate fractional shares as the Representative may determine) that bears the same proportion to the number of Firm ADSs to be purchased as set forth on <u>Schedule 1</u> opposite the name of such Underwriter bears to the total number of Firm ADSs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Payment and Delivery of Option ADSs</u>. Payment for Option ADSs shall be made on the Option Closing Date by wire transfer in immediately available funds by deposit of the price for the Option ADSs being purchased to the Company upon delivery to the Underwriters of certificates (in form and substance satisfactory to the Underwriters) representing such Option ADSs (or through the full fast transfer facilities of DTC) for the account of the Underwriters. The certificates representing the Option ADSs to be delivered will be in such denominations and registered in such names as the Representative requests not less than one Business Day prior to the Closing Date or the Option Closing Date, as the case may be, and will be made available to the Representative for inspection, checking and packaging at the aforesaid office of the Company's transfer agent or correspondent not less than one Business Day prior to the Closing Date or the Option Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Representative's Purchase Option</u>. The Company hereby agrees to issue to the Representative (and/or its permitted assignees) on the Closing Date, an underwriter purchase option to purchase ________ ADSs (the "**Representative's Purchase Option**") equal to an aggregate of up to five percent (5%) of the number of ADSs sold in the Offering for $100. The Representative's Purchase Options shall be exercisable, in whole or in part, commencing six (6) months from the Effective Date and will expire five years after the Effective Date. The Company has agreed to register the Representative's Purchase Option and the ADSs underlying the Representative's Purchase Options at the Company's expense with the Registration Statement (defined below). The Representative's Purchase Option will have an initial exercise price of $________ per ADS, which is equal to one hundred and ten percent (110%) of the offering price of the ADSs sold in the Offering.

2. <u>Representations and Warranties of the Compan</u>y. The Company represents, warrants and covenants to, and agrees with, each of the Underwriters that, as of the date hereof and as of the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has prepared and filed with the Securities and Exchange Commission (the "**Commission**") a registration statement on Form F-1 (Registration No. 333-280115), and amendments thereto, and related preliminary prospectuses for the registration under the Securities Act of 1933, as amended (the "**Securities Act**"), of the Securities which registration statement, as so amended (including post-effective amendments, if any), has been declared effective by the Commission and copies of which have heretofore been delivered to the Underwriters, if requested. The registration statement, as amended at the time it became effective, including the prospectus, financial statements, schedules, exhibits and other information (if any) deemed to be part of the registration statement at the time of effectiveness pursuant to Rule 430A under the Securities Act, is hereinafter referred to as the "**Registration Statement**." If the Company has filed or is required pursuant to the terms hereof to file a registration statement pursuant to Rule 462(b) under the Securities Act registering additional Securities (a "**Rule 462(b**) **Registration Statement**"), then, unless otherwise specified, any reference herein to the term "**Registration Statement**" shall be deemed to include such Rule 462(b) Registration Statement. Other than a Rule 462(b) Registration Statement, which, if filed, becomes effective upon filing, no other document with respect to the Registration Statement has heretofore been filed with the Commission. The Company has responded to all requests of the Commission for additional or supplemental information. No stop order suspending the effectiveness of either the Registration Statement or the Rule 462(b) Registration Statement, if any, has been issued and no proceeding for that purpose has been initiated or, to the Company's knowledge, threatened by the Commission. The Company, if required by the Securities Act and the rules and regulations of the Commission (the "**Rules and Regulations**"), proposes to file the Prospectus with the Commission pursuant to Rule 424(b) under the Securities Act ("**Rule 424(b**)"). The prospectus, in the form in which it is to be filed with the Commission pursuant to Rule 424(b), or, if the prospectus is not to be filed with the Commission pursuant to Rule 424(b), the prospectus in the form included as part of the Registration Statement at the time the Registration Statement became effective, is hereinafter referred to as the "**Prospectus,**" except that if any revised prospectus or prospectus supplement shall be provided to the Underwriters by the Company for use in connection with the Offering which differs from the Prospectus (whether or not such revised prospectus or prospectus supplement is required to be filed by the Company pursuant to Rule 424(b)), the term "**Prospectus**" shall also refer to such revised prospectus or prospectus supplement, as the case may be, from and after the time it is first provided to the Underwriters for such use. Any preliminary prospectus or prospectus subject to completion included in the Registration Statement or filed with the Commission pursuant to Rule 424 under the Securities Act is hereafter called a "**Preliminary Prospectus**." Any reference herein to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the exhibits incorporated by reference therein pursuant to the Rules and Regulations on or before the Effective Date of the Registration Statement, the date of such Preliminary Prospectus or the date of the Prospectus, as the case may be. Any reference herein to the terms "amend", "amendment" or "supplement" with respect to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include: (i) the filing of any document under the Securities Exchange Act of 1934, as amended, and together with the Rules and Regulations promulgated thereunder (the "**Exchange Act**") after the Effective Date, the date of such Preliminary Prospectus or the date of the Prospectus, as the case may be, which is incorporated therein by reference, and (ii) any such document so filed. All references in this Agreement to the Registration Statement, the Rule 462(b) Registration Statement, a Preliminary Prospectus and the Prospectus, or any amendments or supplements to any of the foregoing, shall be deemed to include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System ("**EDGAR**"). The Prospectus delivered to the Underwriters for use in connection with the Offering was or will be identical to the electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T promulgated by the Commission. A registration statement on Form F-6 (No. [333-284724]) covering the registration of the Securities evidenced by the ADRs under the Securities Act has also been filed with the Commission. The registration statement relating to the Securities, as amended from time to time, is hereinafter referred to as the "**ADS Registration Statement**." All of the Securities have been registered under the Securities Act pursuant to the Registration Statement, ADS Registration Statement, or, if any Rule 462(b) Registration Statement is filed, will be duly registered under the Securities Act with the filing of such Rule 462(b) Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the time of the effectiveness of the Registration Statement, the ADS Registration Statement, or any Rule 462(b) Registration Statement or the effectiveness of any post-effective amendment to the Registration Statement, when the Prospectus is first filed with the Commission pursuant to Rule 424(b), when any supplement to or amendment of the Prospectus is filed with the Commission, and at the Closing Date, if any, the Registration Statement, the ADS Registration Statement, and the Prospectus and any amendments thereof and supplements or exhibits thereto complied or will comply in all material respects with the applicable provisions of the Securities Act, the Exchange Act and the Rules and Regulations, and did not and will not, as of the date of such amendment or supplement, contain an untrue statement of a material fact and did not and will not, as of the date of such amendment or supplement, omit to state any material fact required to be stated therein or necessary in order to make the statements therein: (i) in the case of the Registration Statement and the ADS Registration Statement, not misleading, and (ii) in the case of the Prospectus, in light of the circumstances under which they were made as of its date, not misleading. When any Preliminary Prospectus was first filed with the Commission (whether filed as part of the registration statement for the registration of the Securities or any amendment thereto or pursuant to Rule 424(a) under the Securities Act) and when any amendment thereof or supplement thereto was first filed with the Commission, such Preliminary Prospectus and any amendments thereof and supplements thereto complied in all material respects with the applicable provisions of the Securities Act, the Exchange Act and the Rules and Regulations and did not contain an untrue statement of a material fact and did not omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. No representation and warranty is made in this subsection (b), however, with respect to any information contained in or omitted from the Registration Statement, the ADS Registration Statement, or the Prospectus or any related Preliminary Prospectus or any amendment thereof or supplement thereto in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of any Underwriter through the Representative specifically for use therein. The parties acknowledge and agree that such information provided by or on behalf of any Underwriter consists solely of: the statements set forth in the "Underwriting" section of the Prospectus only insofar as such statements relate to the names and corresponding share amounts set forth in the table of Underwriters, the amount of selling concession and re-allowance or to over-allotment and related activities that may be undertaken by the Underwriters and the paragraph relating to stabilization by the Underwriters (the "**Underwriters' Information**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither: (i) any Issuer-Represented General Free Writing Prospectus(es) (as defined below) issued at or prior to the Applicable Time (as defined below) and the Statutory Prospectus (as defined below), all considered together (collectively, the "**General Disclosure Package**"), nor (ii) any individual Issuer-Represented Limited-Use Free Writing Prospectus(es) (as defined below) when considered together with the General Disclosure Package, includes or included as of the Applicable Time any untrue statement of a material fact or omits or omitted as of the Applicable Time to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from any Statutory Prospectus included in the Registration Statement, the ADS Registration Statement, the General Disclosure Package or any Issuer-Represented Limited-Use Free Writing Prospectus (as defined below) in conformity with the Underwriters' Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Issuer-Represented Free Writing Prospectus, as of its issue date and at all subsequent times until the Closing Date or until any earlier date that the Company notified or notifies the Representative as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the then-current Registration Statement, the ADS Registration Statement, Statutory Prospectus or Prospectus. If at any time following issuance of an Issuer-Represented Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer-Represented Free Writing Prospectus conflicted or would conflict with the information contained in the then-current Registration Statement, the ADS Registration Statement, Statutory Prospectus or Prospectus relating to the Securities or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company has notified or will notify promptly the Representative so that any use of such Issuer-Represented Free Writing Prospectus may cease until it is promptly amended or supplemented by the Company, at its own expense, to eliminate or correct such conflict, untrue statement or omission. The preceding two sentences do not apply to statements in or omissions from any Issuer-Represented Free Writing Prospectus in conformity with the Underwriters' Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company has not distributed and will not distribute any prospectus or other offering material in connection with the offering and sale of the Securities other than the General Disclosure Package, any Issuer-Represented Limited-Use Free Writing Prospectus or the Prospectus or other materials permitted by the Securities Act to be distributed by the Company. Unless the Company obtains the prior consent of the Representative, the Company has not made and will not make any offer relating to the Securities that would constitute an "issuer free writing prospectus," as defined in Rule 433 under the Securities Act, or that would otherwise constitute a "free writing prospectus," as defined in Rule 405 under the Securities Act, required to be filed with the Commission; provided that the prior written consent of the Representative shall be deemed to have been given in respect of any free writing prospectus referenced on <u>Schedule II</u> attached hereto. The Company has complied and will comply with the requirements of Rules 164 and 433 under the Securities Act applicable to any Issuer-Represented Free Writing Prospectus as of its issue date and at all subsequent times through the Closing Date, including timely filing with the Commission where required, legending and record keeping. To the extent an electronic road show is used, the Company has satisfied and will satisfy the conditions in Rule 433 under the Securities Act to avoid a requirement to file with the Commission any electronic road show.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Representative agrees that, unless it obtains the prior written consent of the Company, it will not make any offer relating to the Securities that would constitute an Issuer-Represented Free Writing Prospectus or that would otherwise (without taking into account any approval, authorization, use or reference thereto by the Company) constitute a "free writing prospectus" required to be filed by the Company with the Commission or retained by the Company under Rule 433 of the Securities Act; provided that the prior written consent of the Company hereto shall be deemed to have been given in respect of any issuer-Represented General Free Writing Prospectuses referenced on <u>Schedule II</u> attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) As used in this Agreement, the terms set forth below shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**Applicable Time**" means ________, 2026, ____ a.m/p.m. Eastern time) on the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Statutory Prospectus**" as of any time means the prospectus that is included in the Registration Statement immediately prior to that time. For purposes of this definition, information contained in a form of prospectus that is deemed retroactively to be a part of the Registration Statement pursuant to Rule 430A or 430B shall be considered to be included in the Statutory Prospectus as of the actual time that form of prospectus is filed with the Commission pursuant to Rule 424(b) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "**Issuer-Represented Free Writing Prospectus**" means any "issuer free writing prospectus," as defined in Rule 433 under the Securities Act, relating to the Securities that (A) is required to be filed with the Commission by the Company, or (B) is exempt from filing pursuant to Rule 433(d)(5)(i) under the Securities Act because it contains a description of the Securities or of the Offering that does not reflect the final terms or pursuant to Rule 433(d)(8)(ii) because it is a "bona fide electronic road show," as defined in Rule 433 under the Securities Act, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g) under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "**Issuer-Represented General Free Writing Prospectus**" means any Issuer-Represented Free Writing Prospectus that is intended for general distribution to prospective investors, as evidenced by its being specified in <u>Schedule II</u> to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Issuer-Represented Limited-Use Free Writing Prospectus**" means any Issuer-Represented Free Writing Prospectus that is not an Issuer-Represented General Free Writing Prospectus. The term Issuer-Represented Limited-Use Free Writing Prospectus also includes any "bona fide electronic road show," as defined in Rule 433 under the Securities Act, that is made available without restriction pursuant to Rule 433(d)(8)(ii), even though not required to be filed with the Commission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Marcum Asia CPAs LLP (the "**Auditor**"), whose reports relating to the Company are included in the Registration Statement, the General Disclosure Package and the Prospectus is an independent registered public accounting firm as required by the Securities Act, the Exchange Act and the Rules and Regulations and the Public Company Accounting Oversight Board (the "**PCAOB**"). To the Company's knowledge, the Auditor is not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002, as amended ("**Sarbanes-Oxley**"). The Auditor has not, during the periods covered by the financial statements included in the Registration Statement, the General Disclosure Package and the Prospectus, provided to the Company any non-audit services, as such term is used in Section 10A(g) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subsequent to the respective dates as of which information is presented in the Registration Statement, the General Disclosure Package and the Prospectus, and except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus: (i) the Company has not declared, paid or made any dividends or other distributions of any kind on or in respect of its capital stock, and (ii) there has been no material adverse change (or, to the knowledge of the Company, any development which would reasonably be expected to result in a material adverse change in the future), whether or not arising from transactions in the ordinary course of business, in or affecting: (A) the business, condition (financial or otherwise), results of operations, shareholders' equity, properties or prospects of the Company; (B) the long-term debt or capital stock of the Company; or (C) the Offering or consummation of any of the other transactions contemplated by this Agreement, the Representative's Purchase Option, the Registration Statement, the General Disclosure Package and the Prospectus (a "**Material Adverse Change**"). Since the date of the latest balance sheet presented in the Registration Statement, the General Disclosure Package and the Prospectus, and other than in the ordinary course of business, the Company has not incurred or undertaken any liabilities or obligations, whether direct or indirect, liquidated or contingent, matured or unmatured, or entered into any transactions, including any acquisition or disposition of any business or asset, which are material to the Company, except for liabilities, obligations and transactions which are disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) As of the dates indicated in the Registration Statement, the General Disclosure Package and the Prospectus, the authorized, issued and outstanding shares of capital stock of the Company were as set forth in the Registration Statement, the General Disclosure Package and the Prospectus in the column headed "Actual" under the section thereof captioned "Capitalization" and, after giving effect to the Offering and the other transactions (excluding the offer and sale of the Option ADSs) contemplated by this Agreement, the Registration Statement, the General Disclosure Package and the Prospectus, will be as set forth in the column headed "As Adjusted" in such section. All of the issued shares of capital stock of the Company, including the outstanding Class A Ordinary Shares of the Company, have been duly authorized and validly issued and are fully paid and nonassessable and have been issued in compliance with all applicable state, federal and securities laws and none of those shares was issued in violation of any preemptive rights, rights of first refusal or other similar rights to the extent any such rights were not waived; the shares have been duly authorized and, when issued and delivered against payment therefore as provided in this Agreement, will be validly issued, fully paid and non-assessable, and the issuance of the Securities is not subject to any preemptive rights, rights of first refusal or other similar rights that have not heretofore been waived (with copies of such waivers provided to the Underwriters); and no holder of any ordinary shares or any ADSs is or will be subject to personal liability by reason of being such a holder. The Securities conform to the descriptions thereof contained in the Registration Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Except as described in the Registration Statement, the General Disclosure Package and the Prospectus, (A) there are no outstanding rights (contractual or otherwise), warrants or options to acquire, or instruments convertible into or exchangeable for, or agreements or understandings with respect to the sale or issuance of, any shares of capital stock of or other equity interest in the Company or any of its Subsidiaries and (B) there are no contracts, agreements or understandings between the Company and/or any of its Subsidiaries and any person granting such person the right to require the Company to file a registration statement under the Securities Act or otherwise register any securities of the Company owned or to be owned by such person and any such rights so disclosed have been waived by the holders thereof in connection with this Agreement and the transactions contemplated hereby including the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company is a "foreign private issuer" within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The ADSs underlying the Representative's Purchase Option have been duly authorized and reserved for issuance, conform to the description thereof in the Registration Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus and have been validly reserved for issuance and will, upon exercise of the Representative's Purchase Option and payment of the exercise price thereof, be duly and validly issued, fully paid and non-assessable and will not have been issued in violation of or be subject to preemptive or similar rights to subscribe for or purchase securities of the Company and the holders thereof will not be subject to personal liability by reason of being such holders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The subsidiaries of the Company (the "**Subsidiaries**"), together with their respective jurisdictions of incorporation are listed on <u>Schedule IV</u> hereto. Each of the Subsidiaries is directly or indirectly wholly-owned by the Company and no person or entity has any right to acquire any equity interest in any of the Subsidiaries. Except as otherwise disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company holds no ownership or other interest, nominal or beneficial, direct or indirect, in any corporation, partnership, joint venture or other business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company and each of its Subsidiaries has been duly incorporated and validly exists as a company, in good standing under the laws of the jurisdiction of its incorporation or has been duly formed and validly exists as a limited liability company under the laws of the jurisdiction of its formation. The Company and each of its Subsidiaries has all requisite power and authority to carry on its business as it is currently being conducted and as described in the Registration Statement, the General Disclosure Package and the Prospectus, and to own, lease and operate its properties. The Company and each of its Subsidiaries is duly qualified to do business and is in good standing as a foreign corporation, partnership or limited liability company in each jurisdiction in which the character or location of its properties (owned, leased or licensed) or the nature or conduct of its business makes such qualification necessary, except, in each case, for those failures to be so qualified or in good standing which (individually and in the aggregate) would not reasonably be expected to have a material adverse effect on: (i) the business, condition (financial or otherwise), results of operations, shareholders' equity, properties or prospects of the Company and its Subsidiaries, considered as a whole; (ii) the long-term debt or capital stock of the Company; or (iii) the Offering or consummation of any of the other transactions contemplated by this Agreement, the Registration Statement, the General Disclosure Package and the Prospectus (any such effect being a "**Material Adverse Effect**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) To the knowledge of the Company, neither the Company nor any of its Subsidiaries is: (i) in violation of its amended and restated memorandum and articles of incorporation or bylaws or other organizational documents (ii) in default under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its property or assets is subject; and no event has occurred which, with notice or lapse of time or both, would constitute a default under or result in the creation or imposition of any lien, security interest, charge or other encumbrance (a "**Lien**") upon any of its property or assets pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its property or assets is subject, or (iii) in violation in any respect of any law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or governmental agency or body, foreign or domestic, except, in the case of subsections (ii) and (iii) above, for such violations or defaults which (individually or in the aggregate) would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Company has full right, power and authority to execute and deliver this Agreement, the Representative's Purchase Option and all other agreements, documents, certificates and instruments required to be delivered pursuant to this Agreement and the Representative's Purchase Option. The Company has duly and validly authorized this Agreement, the Representative's Purchase Option and each of the transactions contemplated thereby. This Agreement has been duly and validly executed and delivered by the Company and constitutes the legal, valid and binding obligations of the Company and are enforceable against the Company in accordance with their terms, except (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally; (ii) as enforceability of any indemnification or contribution provision may be limited under federal and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) When issued, the Representative's Purchase Option will constitute valid and binding obligations of the Company to issue and sell, upon exercise thereof and payment of the respective exercise prices therefor, the number and type of securities of the Company called for thereby in accordance with the terms thereof and the Representative's Purchase Option are enforceable against the Company in accordance with their respective terms, except: (i) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally; (ii) as enforceability of any indemnification or contribution provision may be limited under foreign, federal and state securities laws; and (iii) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The execution, delivery, and performance by the Company of this Agreement, the Representative's Purchase Option and all other agreements, documents, certificates and instruments required to be delivered pursuant to this Agreement, and the Representative's Purchase Option and consummation of the transactions contemplated hereby and thereby do not and will not: (i) conflict with, require consent under or result in a breach of any of the terms and provisions of, or constitute a default (or an event which with notice or lapse of time, or both, would constitute a default) under, or result in the creation or imposition of any Lien upon any property or assets of the Company of any of its Subsidiaries pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement, instrument, franchise, license or permit to which the Company or any of its Subsidiaries is a party or by which the Company, any of its Subsidiaries or any of their respective properties, operations or assets may be bound or (ii) violate or conflict with any provision of the certificate of incorporation, by-laws, or other organizational documents of the Company or any of its Subsidiaries, or (iii) violate or conflict with any law, rule, regulation, ordinance, directive, judgment, decree or order of any judicial, regulatory or other legal or governmental agency or body, domestic or foreign applicable to the Company or any of its Subsidiaries, or (iv) except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, trigger a reset or repricing of any outstanding securities of the Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and each of its Subsidiaries have all material consents, approvals, authorizations, orders, registrations, qualifications, licenses, filings and permits of, with and from all judicial, regulatory and other legal or governmental agencies and bodies and all third parties, foreign and domestic (collectively, the "**Consents**"), to own, lease and operate their respective properties and conduct their respective businesses as they are now being conducted and as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, and each such Consent is valid and in full force and effect, except which (individually or in the aggregate), in each such case, would not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has received notice of any investigation or proceedings which results in or, if decided adversely to the Company or any of its Subsidiaries could reasonably be expected to result in, the revocation of, or imposition of a materially burdensome restriction on, any Consent. No Consent contains a materially burdensome restriction not adequately disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, except for such revocation or imposition which would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company and each of its Subsidiaries is in compliance with all material applicable laws, rules, regulations, ordinances, directives, judgments, decrees and orders, foreign and domestic, except for any non-compliance the consequences of which would not have or reasonably be expected to have a Material Adverse Effect.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) One or more registration statements in respect of the ADSs and Class A Ordinary Shares have been filed on Form 8-A pursuant to Section 12(b) of the Exchange Act, each of which registration statement complies in all material respects with the Exchange Act. The Form 8-A Registration Statement was declared effective by the Commission on or prior to the date hereof. The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the ADSs or Class A Ordinary Shares under the Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The ADSs have been approved for listing on the NASDAQ Global Market, subject to official notice of issuance (the "**Exchange**"), and the Company has taken no action designed to, or likely to have the effect of, delisting the ADSs from the Exchange, nor has the Company received any notification that the Exchange is contemplating terminating such listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) No consent of, with or from any judicial, regulatory or other legal or governmental agency or body or any third party, foreign or domestic is required for the execution, delivery and performance of this Agreement or the Representative's Purchase Option or the consummation of each of the transactions contemplated hereby and thereby, including the issuance, sale and delivery of the Securities to be issued, sold and delivered hereunder, except (i) such as may have previously been obtained (with copies of such consents provided to the Underwriters), (ii) the registration under the Securities Act of the Securities, which has become effective, (iii) such consents as may be required under state securities or blue sky laws or the by-laws and rules of the Nasdaq Global Market, and (iii) the FINRA in connection with the purchase and distribution of the Securities by the Underwriters, each of which has been obtained and is in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there is no judicial, regulatory, arbitral or other legal or governmental proceeding or other litigation or arbitration, domestic or foreign, pending to which the Company or any of its Subsidiaries is a party or of which any property, operations or assets of the Company or any of its Subsidiaries is the subject which, individually or in the aggregate, if determined adversely to the Company or any of its Subsidiaries would reasonably be expected to have a Material Adverse Effect. To the Company's knowledge, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, no such proceeding, litigation or arbitration is threatened or contemplated against or involving the Company or any of its Subsidiaries that would be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) The financial statements, including the notes thereto, and the supporting schedules included in the Registration Statement, the General Disclosure Package and the Prospectus comply in all material respects with the requirements of the Securities Act and the Exchange Act, and present fairly in all material respects the financial position as of the dates indicated and the cash flows and results of operations for the periods specified of the Company. Except as otherwise stated in the Registration Statement, the General Disclosure Package and the Prospectus, said financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("**GAAP**") applied on a consistent basis throughout the periods involved, except in the case of unaudited financials which are subject to normal year-end adjustments and do not contain certain footnotes. The supporting schedules included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly in all material respects the information required to be stated therein. No other financial statements or supporting schedules are required to be included or incorporated by reference in the Registration Statement, the General Disclosure Package or the Prospectus. The other financial information included in the Registration Statement, the General Disclosure Package and the Prospectus present fairly in all material respects the information included therein and have been prepared on a basis consistent with that of the financial statements that are included in the Registration Statement, the General Disclosure Package and the Prospectus and the books and records of the respective entities presented therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) There are no pro forma or as adjusted financial statements which are required to be included in the Registration Statement, the General Disclosure Package and the Prospectus in accordance with Regulation S-X which have not been included as so required. The pro forma and pro forma as adjusted financial information included in the Registration Statement, the General Disclosure Package and the Prospectus has been properly compiled and prepared in accordance with the applicable requirements of the Securities Act and the Rules and Regulations and include all adjustments necessary to present fairly in accordance with GAAP the pro forma and as adjusted financial position of the respective entity or entities presented therein at the respective dates indicated and their cash flows and the results of operations for the respective periods specified. The assumptions used in preparing the pro forma and pro forma as adjusted financial information included in the Registration Statement, the General Disclosure Package and the Prospectus provide a reasonable basis for presenting the significant effects directly attributable to the transactions or events described therein. The related pro forma and pro forma as adjusted adjustments give appropriate effect to those assumptions; and the pro forma and pro forma as adjusted financial information reflect the proper application of those adjustments to the corresponding historical financial statement amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) The statistical, industry-related and market-related data included in the Registration Statement, the General Disclosure Package and the Prospectus are based on or derived from sources which the Company reasonably and in good faith believes are reliable and accurate, and such data agree with the sources from which they are derived.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) The Company has established and maintains disclosure controls and procedures over financial reporting (as defined in Rules 13a-15 and 15d-15 under the Exchange Act) and such controls and procedures are designed to ensure that information relating to the Company required to be disclosed in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company has utilized such controls and procedures in preparing and evaluating the disclosures in the Registration Statement, in the ADS Registration Statement, in the General Disclosure Package and in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company's board of directors has validly appointed an audit committee whose composition satisfies the requirements of the rules and regulations of the Nasdaq Stock Market and the board of directors and/or audit committee has adopted a charter that satisfies the requirements of the rules and regulations of the Nasdaq Stock Market. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, neither the board of directors nor the audit committee has been informed, nor is the Company aware, of: (i) any significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; or (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Neither the Company nor any of its Subsidiaries nor any of their respective Affiliates (as defined in the Securities Act) has taken, directly or indirectly, any action which constitutes or is designed to cause or result in, or which could reasonably be expected to constitute, cause or result in, the stabilization or manipulation of the price of any security to facilitate the sale or resale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) Neither the Company nor any of its Subsidiaries nor any of their respective Affiliates has, prior to the date hereof, made any offer or sale of any securities which are required to be "integrated" pursuant to the Securities Act or the Rules and Regulations with the offer and sale of the Securities pursuant to the Registration Statement. Except as disclosed in the Registration Statement, the General Disclosure Package, and the Prospectus, neither the Company nor any of its Affiliates has sold or issued any securities during the 180-day period preceding the date of the Prospectus, including but not limited to any sales pursuant to Rule 144A or Regulation D or Regulation S under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) To the knowledge of the Company, all information contained in the questionnaires completed by each of the Company's officers and directors and holders of 10% or more of the Company's Class A Ordinary Shares immediately prior to the Offering and provided to the Representative as well as the biographies of such officers and directors in the Registration Statement are true and correct in all material respects and the Company has not become aware of any information which would cause the information disclosed in the questionnaires completed by the directors and officers to become inaccurate and incorrect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) To the knowledge of the Company, no director or officer of the Company is subject to any non-competition agreement or non-solicitation agreement with any current employer or prior employer which could materially affect his ability to be and act in his respective capacity of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company is not and, at all times up to and including consummation of the transactions contemplated by this Agreement, and after giving effect to application of the net proceeds of the Offering, will not be, subject to registration as an "investment company" under the Investment Company Act of 1940, as amended, and is not and will not be an entity "controlled" by an "investment company" within the meaning of such act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) To the knowledge of the Company, no relationship, direct or indirect, exists between or among any of the Company or, to the knowledge of the Company, any Affiliate of the Company, on the one hand, and any director, officer, shareholder, customer or supplier of the Company or, to the knowledge of the Company, any Affiliate of the Company, on the other hand, which is required by the Securities Act, the Exchange Act or the Rules and Regulations to be described in the Registration Statement, or the Prospectus which is not so described as required. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company to or for the benefit of any of the officers or directors of the Company or any of their respective family members. The Company has not, in violation of Sarbanes-Oxley directly or indirectly extended or maintained credit, arranged for the extension of credit, or renewed an extension of credit, in the form of a personal loan to or for any director or executive officer of the Company, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) The Company is in material compliance with the rules and regulations promulgated by the Nasdaq Stock Market (to the extent applicable to the Company prior to the listing of the ADSs on the Nasdaq Global Market following the Closing) or any other governmental or self-regulatory entity or agency, except for such violations which, singly or in the aggregate, would not have a Material Adverse Effect. Without limiting the generality of the foregoing: (i) all members of the Company's board of directors who are required to be "independent" (as that term is defined under applicable laws, rules and regulations), including, without limitation, all members of the audit committee of the Company's board of directors, meet the qualifications of independence as set forth under applicable laws, rules and regulations and (ii) the audit committee of the Company's board of directors has at least one member who is an "audit committee financial expert" (as that term is defined under applicable laws, rules and regulations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) To the knowledge of the Company, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no contracts, agreements or understandings between the Company or any of its Subsidiaries and any Person that would give rise to a valid claim against the Company or any of its Subsidiaries or, to the knowledge of the Company, any Underwriter for a brokerage commission, finder's fee, financial consulting fee or other like payment in connection with the transactions contemplated by this Agreement or, to the knowledge of the Company, any arrangements, agreements, understandings, payments or issuance with respect to the Company or any of its officers, directors, shareholders, partners, employees or Affiliates that may affect the Underwriters' compensation as determined by FINRA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) The Company and each of its Subsidiaries owns or leases all such properties (other than intellectual property, which is covered by Section 2(nn)) as are necessary to the conduct of its business as presently operated as described in the Registration Statement, the General Disclosure Package and the Prospectus. The Company and each of its Subsidiaries has good and marketable title in fee simple to all real property and good and marketable title to all personal property owned by it that are material to the respective businesses of the Company and its Subsidiaries, in each case free and clear of all Liens except such as are described in the Registration Statement, the General Disclosure Package and the Prospectus or such as are not reasonably be expected, individually or in the aggregate to have a Material Adverse Effect. Any material real property and buildings held under lease or sublease by the Company or any of its Subsidiaries are held by it under valid, subsisting and, to the Company's knowledge, enforceable leases with such exceptions as are not material to, and do not materially interfere with, the use made and proposed to be made of such property and buildings by the Company or any of its Subsidiaries. Neither the Company nor any of its Subsidiaries has received any notice of any claim adverse to its ownership of any real or personal property or of any claim against the continued possession of any real property, whether owned or held under lease or sublease by the Company or any of its Subsidiaries, except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The Company and each of its Subsidiaries: (i) owns, possesses, or has the adequate right to use all patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights, licenses, formulae, customer lists, and know-how and other intellectual property (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures, "**Intellectual Property**") necessary for the conduct of its businesses as being conducted and as described in the Registration Statement, the General Disclosure and Prospectus and (ii) has no knowledge that the conduct of its business conflicts or will conflict with the rights of others, and has not received any notice of any claim of conflict with, any right of others. Except as set forth in the Registration Statement, the General Disclosure Package or the Prospectus, neither the Company nor any of its Subsidiaries has granted or assigned to any other Person any right to sell any of the products or services of the Company or any of its Subsidiaries. To the Company's knowledge, there is no infringement by third parties of any such Intellectual Property; there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the rights of the Company or any of its Subsidiaries in or to any such Intellectual Property, and the Company is unaware of any facts which would form a reasonable basis for any such claim; and there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others that the Company or any of its Subsidiaries infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary rights of others, and the Company is unaware of any other fact which would form a reasonable basis for any such claim. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any of its Subsidiaries has received any claim for royalties or other compensation from any Person, including any employee of the Company or any of its Subsidiaries who made inventive contributions to the technology or products of the Company or any of its Subsidiaries that are pending or unsettled, and except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus neither the Company nor any of its Subsidiaries has any obligation to pay material royalties to any Person on account of inventive contributions, except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) The agreements and documents described in the Registration Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus conform in all material respects to the descriptions thereof contained therein. Each agreement or other instrument (however characterized or described) to which the Company or any of its Subsidiaries is a party or by which any of their respective properties or business are or may be bound or affected and (i) that is referred to in the Registration Statement, the ADS Registration Statement, the General Disclosure Package or the Prospectus or attached as an exhibit thereto, or (ii) is material to the businesses of the Company and its Subsidiaries, has been duly and validly executed by the Company or its Subsidiary, as the case may be, is in full force and effect in all material respects and is enforceable against the Company in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the foreign, federal and state securities laws, and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefor may be brought, and none of such agreements or instruments has been assigned by the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries, nor, to the Company's knowledge, any other party is in breach or default thereunder and, to the Company's knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a breach or default thereunder, in any such case, which would result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) The disclosures in the Registration Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus concerning the effects of foreign, federal, state and local regulation on the respective businesses of the Company and each of its Subsidiaries as currently contemplated are correct in all material respects and do not omit to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each of its Subsidiaries (i) has made or filed all United States federal, state and local income and all Cayman Islands, the People's Republic of China ("**PRC**"), Hong Kong, and other foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. The provisions for taxes payable, if any, shown on the financial statements filed with or as part of the Registration Statement are sufficient for all accrued and unpaid taxes, whether or not disputed, and for all periods to and including the dates of such consolidated financial statements. No deficiency assessment with respect to a proposed adjustment of the federal, state, local or foreign taxes of the Company or any of its Subsidiaries is pending or, to the Company's knowledge, is threatened. There is no tax lien, whether imposed by any federal, state, foreign or other taxing authority, outstanding against the assets, properties or business of the Company or any of its Subsidiaries, other than liens for taxes not yet delinquent, or being contested in good faith by appropriate proceedings and for which reserves in accordance with GAAP have been established in the Company's books and records. The term "taxes" mean all federal, state, local, foreign (including Swiss), and other net income, gross income, gross receipts, sales, use, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profits, customs, duties or other taxes, fees, assessments, or charges in the nature of taxes, together with any interest and any penalties, additions to tax, or additional amounts with respect thereto. The term "returns" means all returns, declarations, reports, statements, and other documents required to be filed in respect to taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) No labor disturbance or dispute by or with the employees of the Company or any of its Subsidiaries which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, currently exists or, to the Company's knowledge, is threatened. The Company and each of its Subsidiaries is in compliance in all material respects with the labor and employment laws and collective bargaining agreements and extension orders applicable to its employees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) The Deposit constitutes a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting creditors' rights generally or general equitable principles. Upon the issuance, sale and payment for the underlying Securities in accordance with the terms hereof and the due issuance by the Depositary of the ADRs evidencing the Securities against the deposit of the underlying Shares in respect thereof in accordance with the provisions of the Deposit Agreement, such Securities and ADRs will be duly and validly issued, and the persons in whose names the Securities and ADRs are registered will be entitled to the rights specified therein, respectively, and in the Deposit Agreement; and the Deposit Agreement and the ADRs conform in all material respects to the descriptions thereof contained in the Registration Statement, the General Disclosure Package and the Prospectus. There has been no change in the Company's agreement with the Depositary in connection with any pre-release of the Company's ADRs and no such change is currently contemplated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) No consent, approval, authorization, license, registration, qualification or order of, or any filing or declaration with, any court or arbitrator or governmental or regulatory authority, agency or body having jurisdiction over the Company or any of its subsidiaries, is required in connection with the authorization, issuance, transfer, sale or delivery of the Securities by the Company, in connection with the execution, delivery and performance of this Agreement by the Company or in connection with the taking by the Company of any action contemplated hereby, the filing of the Prospectus pursuant to Rule 424(b) under the Act not later than the Commission's close of business on the second business day following the execution and delivery of this Agreement and as have been made or obtained under the Act, the Rules and Regulations, and such as may be required under state securities or Blue Sky laws or the by-laws and rules of FINRA in connection with the purchase and distribution by the Underwriter of the Securities to be sold by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) Except as disclosed in the Registration Statement and in the ADS Registration Statement, to the knowledge of the Company the General Disclosure Package and the Prospectus, and would not be reasonably expected, individually or in the aggregate, to have a Material Adverse Effect, the Company and each of its Subsidiaries (i) has at all times operated its business in material compliance with all Environmental Laws (as hereinafter defined), and no material expenditures are or will be required in order to comply therewith. Neither the Company nor any of its Subsidiaries has received any notice or communication that relates to or alleges any actual or potential violation or failure to comply with any Environmental Laws that would, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. As used herein, the term "**Environmental Laws''** means all applicable laws and regulations relating to the protection of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants, (ii) except as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect, has received all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its businesses and (iii) is in compliance in all material respects with all terms and conditions of any such permit, license or approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) Except as would not result in a Material Adverse Effect, neither the Company nor any of its Subsidiaries has failed to file with the applicable regulatory authorities any filing, declaration, listing, registration, report or submission that is required to be so filed for the business operation of the Company and its Subsidiaries as currently conducted. All such filings were in material compliance with applicable laws when filed and no deficiencies have been asserted in writing by any applicable regulatory authority with respect to any such filings, declarations, listings, registrations, reports or submissions. The Company and each of its Subsidiaries holds, and is in material compliance with, all franchises, grants, authorizations, licenses, permits, easements, consents, certificates and orders ("**Permits**") of any governmental or self-regulatory agency, authority or body required for the conduct of the business of the Company and its Subsidiaries as currently conducted, and all such Permits are in full force and effect, in each case except where the failure to hold, or comply with, any of them is not reasonably likely to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) Neither the Company nor any Subsidiary of the Company nor, to the knowledge of the Company, any other person associated with or acting on behalf of the Company or any Subsidiary including, without limitation, any director, officer, agent or employee of the Company or any Subsidiary, has, directly or indirectly, while acting on behalf of the Company or such Subsidiary: (i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses relating to political activity; (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from corporate funds; (iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other unlawful payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA**") and to regulation by the Board of Governors of the Federal Reserve System (the "**Federal Reserve**"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) The operations of the Company and each of its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial record keeping and reporting requirements and money laundering statutes of the Cayman Islands, PRC, Hong Kong and the United States and, to the Company's knowledge, all other jurisdictions to which the Company is subject, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency (collectively, the "**Money Laundering Laws**") and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the best knowledge of the Company, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) Neither the Company nor any of its Subsidiaries nor to the knowledge of the Company, any director, officer, agent, employee or Affiliate of the Company or any of its Subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ("**OFAC**"), the United Nations Security Council, the European Union, her Majesty's Treasury (UK HMT), the Swiss Secretariat of Economic Affairs, the Monetary Authority of Singapore or other relevant authorities (collectively, "**Sanctions**") nor located, organized or resident in a country or territory that is the subject of Sanctions. The Company will not directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any joint venture partner or other person or entity, for the purpose of funding or financing the activities or business of or with any Person or in any country or territory that. At the time of such funding or facilitation is the subject of to any Sanctions, or in any other manner that will result in a violation of Sanctions by any Person (including any Person participating in the Offering). For the past five years, neither the Company nor any of its Subsidiaries has knowingly engaged in, is not now knowingly engaged in, and will not engage in, any dealings or transactions with any Person, or in any country or territory, that at the time of the dealing or transaction is or was the subject of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) Except as set forth in the Registration Statement, the ADS Registration Statement, the General Disclosure Package and the Prospectus, no brokerage or finder's fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. To the Company's knowledge, there are no other arrangements, agreements or understandings of the Company or, to the Company's knowledge, any of its Affiliates that may affect the Underwriters' compensation, as determined by FINRA. The Company has not made any direct or indirect payments (in cash, securities or otherwise) to (i) any person, as a finder's fee, investing fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who provided capital to the Company, (ii) any FINRA member, or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member participating in the Offering within the 12-month period prior to the date on which the Registration Statement was filed with the Commission (the "**Filing Date**") or thereafter. To the Company's knowledge, no (i) officer or director of the Company or its Subsidiaries, (ii) owner of 10% or more of the Company's unregistered securities or that of its Subsidiaries or (iii) owner of any amount of the Company's unregistered securities acquired within the 180-day period prior to the Filing Date, has any direct or indirect affiliation or association with any FINRA member participating in the Offering. The Company will advise the Underwriters and their respective counsel if it becomes aware that any officer, director or stockholder of the Company or its Subsidiaries is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) The Company and each of its Subsidiaries maintains insurance in such amounts and covering such risks as the Company reasonably considers adequate for the conduct of their respective businesses and the value of their respective properties and as is customary for companies engaged in similar businesses in similar industries, all of which insurance is in full force and effect, except where the failure to maintain such insurance could not reasonably be expected to have Material Adverse Effect. The Company reasonably believes that it and each of its Subsidiaries will be able to renew its existing insurance as and when such coverage expires or will be able to obtain replacement insurance adequate for the conduct of its respective business and the value of its respective properties at a cost that would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) Except as disclosed in the General Disclosure Package and the Prospectus, under current laws and regulations of the Cayman Islands and any political subdivision thereof all dividends and other distributions declared and payable on the Securities may be paid by the Company to the holder thereof in United States dollars and freely transferred out of the Cayman Islands and all such payments made to holders thereof or therein who are non-residents of the Cayman Islands will not be subject to income, withholding or other taxes under laws and regulations of the Cayman Islands or any political subdivision or taxing authority thereof or therein and will otherwise be free and clear of any other tax, duty, withholding or deduction in the Cayman Islands or any political subdivision or taxing authority thereof or therein and without the necessity of obtaining any governmental authorization in the Cayman Islands or any political subdivision or taxing authority thereof or therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) The choice of the laws of the State of New York as the governing law of this Agreement and the Representative's Purchase Option is a valid choice of law under the laws of the Cayman Islands and will be honored by courts in the Cayman Islands The Company has the power to submit, and pursuant to Section 15 of this Agreement, has legally, validly, effectively and irrevocably submitted, to the personal jurisdiction of each United States federal court and New York state court located in the Borough of Manhattan, in the City of New York, New York, U.S.A, (each, a "**New York Court**"), and the Company has the power to designate, appoint and authorize, and pursuant to Section 15 of this Agreement, has legally, validly, effectively and irrevocably designated, appointed and authorized an agent for service of process in any action arising out of or relating to this Agreement, the Registration Statement, the Prospectus or the Securities in any New York Court, and service of process effected on such authorized agent will be effective to confer valid personal jurisdiction over the Company as provided in Section 15 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) Except as provided by laws or statutes generally applicable to transactions of the type described in this Agreement, neither the Company nor any of its respective properties, assets or revenues has any right of immunity under the Cayman Islands, PRC, Hong Kong, New York or United States law, from any legal action, suit or proceeding, from the giving of any relief in any Cayman Islands, PRC, Hong Kong, New York or United States federal court, from service of process, attachment upon or prior judgment, or attachment in aid of execution of judgment, or from execution of a judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of a judgment, in any such court, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with this Agreement. To the extent that the Company or any of its respective properties, assets or revenues may have or may hereafter become entitled to any such right of immunity in any such court in which proceedings may at any time be commenced, the Company waives or will waive such right to the extent permitted by law and has consented to such relief and enforcement as provided in Section 15 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) Each of this Agreement and the Representative's Purchase Option is in proper form under the laws of the Cayman Islands for the enforcement thereof against the Company, and to ensure the legality, validity, enforceability or admissibility into evidence in the Cayman Islands of this Agreement and the Representative's Purchase Option, it is not necessary that this Agreement or the Representative's Purchase Option be filed or recorded with any court or other authority in the Cayman Islands or PRC or, except as disclosed in the most recent Preliminary Prospectus or Prospectus, that any stamp or similar tax in the Cayman Islands or PRC be paid on or in respect of this Agreement, the Representative's Purchase Option or any other documents to be furnished hereunder. Any final judgment for a fixed or readily calculable sum of money rendered by a New York Court having jurisdiction under its own domestic laws in respect of any suit, action or proceeding against the Company based upon this Agreement or the Representative's Purchase Option and any instruments or agreements entered into for the consummation of the transactions contemplated herein and therein would be declared enforceable against the Company, without re-examination or review of the merits of the cause of action in respect of which the original judgment was given or re-litigation of the matters adjudicated upon, by the courts of the Cayman Islands. The aforesaid judgment may be recognized and enforceable by the courts of the PRC, subject to (i) compliance with the public policy of the PRC and relevant PRC Laws including, without limitation. Civil Procedural Law of the PRC and the applicable laws and regulations regarding choice of foreign law, and (ii) international and/or bilateral treaties concluded or acceded to by the PRC or the principle of reciprocity. The Company is not aware of any reason why the enforcement in the Cayman Islands or PRC of such a New York Court judgment would be, as of the date hereof, contrary to public policy of the Cayman Islands or PRC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) As used in this Agreement, references to matters being "**material**" with respect to the Company or any of its Subsidiaries shall mean a material event, change, condition, status or effect related to the condition (financial or otherwise), properties, assets (including intangible assets), liabilities, business, prospects, operations or results of operations of the Company and such Subsidiaries either individually or taken as a whole, as the context requires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) As used in this Agreement, the term "**knowledge of the Company**" (or similar language) shall mean the knowledge of the executive officers of the Company who are named in the Prospectus, with the assumption that such executive officers shall have made reasonable and diligent inquiry of the matters presented (with reference to what is customary and prudent for the applicable individuals in connection with the discharge by the applicable individuals of their duties as executive officers of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Any certificate signed by or on behalf of the Company and delivered to the Underwriters or to Loeb & Loeb LLP ("**Underwriters' Counsel**") shall be deemed to be a representation and warranty by the Company to each Underwriter listed on <u>Schedule I</u> hereto as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jjj) Cybersecurity; Data Protection. (i) Each of the Company and its Subsidiaries has complied with all applicable laws concerning cybersecurity, data security and protection, confidentiality and archive administration (collectively, the "**Data Protection Laws**") in all material respects; (ii) neither the Company nor any of its Subsidiaries has been informed by any relevant authority that the Company or any of its Subsidiaries has been identified as a "critical information infrastructure operator" under the cybersecurity laws of the PRC; (iii) neither the Company nor any of its Subsidiaries is subject to any investigation, inquiry or sanction relating to cybersecurity, data privacy, confidentiality or archive administration, or any cybersecurity review by the Cyberspace Administration of China (the "**CAC**"), the China Securities Regulatory Commission (the "**CSRC**"), or any other relevant governmental authority; (iv) neither the Company nor any of its Subsidiaries has received any notice (including, without limitation, any enforcement notice, de-registration notice or transfer prohibition notice), letter, complaint or allegation from the relevant cybersecurity, data privacy, confidentiality or archive administration governmental authority alleging any breach or non-compliance by it of the applicable Data Protection Laws or prohibiting the transfer of data to a place outside the relevant jurisdiction; (v) neither the Company nor any of its Subsidiaries has received any claim for compensation or any other claim from any person in respect of its business under the applicable Data Protection Laws and industry standards in respect of inaccuracy, loss, unauthorized destruction or unauthorized disclosure of data and there is no outstanding order against the Company or any of its Subsidiaries in respect of the rectification or erasure of data; (vi) no warrant has been issued authorizing the cybersecurity, data privacy, confidentiality or archive administration governmental authority (or any of its officers, employees or agents) to enter any of the premises of the Company or any of its Subsidiaries for the purposes of, inter alia, searching them or seizing any documents or other materials found there; (vii) neither the Company nor any of its Subsidiaries has received any communication, enquiry, notice, warning or sanctions with respect to the cybersecurity law of the PRC or from the CAC or pursuant to the Data Protection Laws (including, without limitation, the CSRC Archive Rules); (viii) the Company is not aware of any pending or threatened investigation, inquiry or sanction relating to cybersecurity, data privacy, confidentiality or archive administration, or any cybersecurity review, by the CAC, the CSRC, or any other relevant governmental authority on the Company or any of its Subsidiaries or any of their respective directors; (ix) the Company is not aware of any pending or threatened actions, suits, claims, demands, investigations, judgments, awards and proceedings on the Company or any of its Subsidiaries or any of their respective directors pursuant to the Data Protection Laws (including, without limitation, the CSRC Archive Rules); (x) neither the Company nor any of its Subsidiaries has received any objection to the offering of the ADSs or the transactions contemplated under this Agreement from the CSRC, the CAC or any other relevant governmental authority, except as would not, in each case under clauses (i) to (x) above, individually or in the aggregate, have a Material Adverse Change; and (xi) The Company's and its Subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, "**IT Systems**") are adequate for, and operate and perform as required in connection with the operation of the business of the Company and its Subsidiaries as currently conducted, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented and maintained commercially reasonable controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data (including all personal, personally identifiable, sensitive, confidential or regulated data or any such data that may constitute trade secrets, important data and working secrets of any governmental authority or any other data that would otherwise be detrimental to national security, public interest or lawful rights and interests of relevant individuals or organizations pursuant to the applicable laws ("Personal and Confidential Data")) used in connection with their businesses, and/or the offering of the ADSs, and there have been no, and the Company and the Subsidiaries have not been notified of and have no knowledge of any event or condition that would reasonably be expected to result in, breaches, violations, outages, destruction, loss, leakage, misappropriation, modification or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company and its Subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any Governmental Entity, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal and Confidential Data ("Data Security Obligations") and to the protection of such IT Systems and Personal and Confidential Data from unauthorized use, access, misappropriation or modification. The Company and its Subsidiaries have not received any notification of or complaint regarding and are unaware of any other facts that, individually or in the aggregate, would reasonably indicate non-compliance with any Data Security Obligations, and there have been no action, suit or proceeding by or before any court or government agency, authority or body pending or threatened alleging non-compliance with any Data Security Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kkk) <u>PRC Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Beijing Bgreen Technology Development Co., Ltd. and Xieguan Tonglian (Shenzhen) Technology Co., Ltd are wholly foreign-owned enterprises (collectively, "**WFOEs**") of the Company and have been duly organized and are validly existing as companies under the laws of the PRC, and their business licenses are in full force and effect; the WFOEs have been duly qualified as foreign invested enterprises with the following approvals and certificates: (A) Certificate of Filing and (B) Business License. 100% of the equity interests of the WFOEs are owned by the Company as described in the Registration Statement, the General Disclosure Package and the Prospectus, and such equity interests are free and clear of all Liens; the articles of associations, the business licenses and other constituent documents of each of the WFOEs comply with the requirements of the applicable laws and regulations of the PRC and are in full force and effect; each of the WFOEs has full power and authority (corporate and other) and all consents, approvals, authorizations, permits, licenses, orders, registrations, clearances and qualifications of or with any governmental authorities having jurisdiction over the WFOEs or any of their properties required for the ownership or lease of property or asset by them and the conduct of their business in accordance with their registered business scopes and have the legal right and authority to own, use, lease and operate their properties and assets and to conduct their business in the manner presently conducted and as described in the Registration Statement, the General Disclosure Package and the Prospectus; and the registered capital of the WFOEs have been fully paid in accordance with their articles of association and the applicable PRC laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each of the WFOEs has legal and valid title to all of its properties and assets, free and clear of all Liens; each lease agreement to which it is a party is duly executed and delivered, and is valid, legally binding and enforceable; none of the WFOEs owns, operates, manages or has any other right or interest in any other material real property of any kind, which would, or could reasonably be expected, result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>PRC Taxes</u>. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, including the risk factor set forth in "Risk Factors— If we are classified as a PRC resident enterprise for PRC income tax purposes, such classification could result in unfavorable tax consequences to us and our non-PRC shareholders," no transaction, stamp, capital or other issuance, registration, transaction, transfer or withholding taxes or duties are payable in the PRC to any PRC taxing authority in connection with (A) the issuance, sale and delivery of the ADSs to or for the account of the purchasers, and (B) the purchase from the Company and the sale and delivery of the ADSs to purchasers thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Compliance with Overseas Investment and Listing Regulations</u>. Each of the Company and its Subsidiaries has complied with, and has taken all commercially reasonable steps to ensure each of its shareholders, option holders, directors, officers, and employees that is, or is directly or indirectly owned or controlled by, a PRC resident or PRC citizen to comply with any existing and applicable rules and regulations of the relevant PRC Governmental Entity (including but not limited to the Ministry of Commerce, the National Development and Reform Commission, the China Securities Regulatory Commission and the State Administration of Foreign Exchange (the "**SAFE**")) relating to overseas investment by PRC residents and citizens or the repatriation of the proceeds from overseas offering and listing by offshore special purpose vehicles controlled directly or indirectly by PRC companies and individuals, such as the Company (the "**PRC Overseas Investment and Listing Regulations**"), including without limitation, requesting each shareholder, option holder, director, officer and employee that is, or is directly or indirectly owned or controlled by, a PRC resident or citizen to complete any registration and other procedures required under applicable PRC Overseas Investment and Listing Regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>M&A</u>. The Company is aware of and has been advised as to the content of the Rules on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors and any official clarifications, guidance, interpretations, or implementation rules in connection with or related thereto jointly promulgated by the Ministry of Commerce, the State Assets Supervision and Administration Commission, the State Tax Administration, the State Administration of Industry and Commerce, the CSRC and the SAFE on August 8, 2006 and as amended on June 22, 2009 (the "**M&A Rules**"), in particular the relevant provisions thereof that purport to require offshore special purpose vehicles formed for the purpose of obtaining a stock exchange listing outside of the PRC and controlled directly or indirectly by companies or natural persons of the PRC, to obtain the approval of the CSRC prior to the listing and trading of their securities on a stock exchange located outside of the PRC; the Company has received legal advice specifically with respect to the M&A Rules from its PRC counsel and understands such legal advice. In addition, the Company has communicated such legal advice in full to each of its directors that signed the Registration Statement and each such director has confirmed that he or she understands such legal advice. Except as described in the Registration Statement, the General Disclosure Package and the Prospectus, the Company confirms with the Underwriters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) The issuance and sale of the ADSs, the listing and trading of the ADSs on Nasdaq and the consummation of the transactions contemplated by this Agreement are not and will not be, as of the date hereof or on the applicable Closing Date, affected by the M&A Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) As of the date hereof or on the applicable Closing Date, the M&A Rules did not, do not, and will not require the Company to obtain the approval of the CSRC prior to the issuance and sale of the ADSs, the listing and trading of the ADSs on Nasdaq, or the consummation of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(lll) <u>Overseas Securities Offering and Listing Rules</u>. (i) The content of the filing materials, made to the CSRC, relating to or in connection with the offering of the ADSs pursuant to the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies (境内企业境外发行证券和上市管理试行办法) and supporting guidelines issued by the CSRC, as amended, supplemented or otherwise modified from time to time (the "**CSRC Filing Rules**") (the "**CSRC Filing Report**") and supplementary explanation, filings and/or responses for the purpose of replying to queries and comments raised by the CSRC (the "**CSRC Filings**") as of the time when it was made was, true, accurate and complete and not misleading in any material respect, and did not omit any information which would make the statements made therein misleading in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The Company has complied with all requirements and timely submitted all requisite filings in connection with the offering of the ADSs (including, without limitation, the CSRC Filing Report) with the CSRC pursuant to the CSRC Filing Rules as the date hereof , and the Company has not received any notice of rejection, withdrawal or revocation from the CSRC in connection with such CSRC Filings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The CSRC Filings made by or on behalf of the Company are in compliance with the disclosure requirements in all material respects pursuant to the CSRC Filing Rules. The Company has not submitted any undertakings in connection with the Company or the offering of the ADSs to CSRC or other PRC regulators for the purposes of the offering of the ADSs and/or the listing of the ADSs on Nasdaq that the Underwriters are not aware of.

3. <u>Offering</u>. Upon authorization of the release of the Securities by the Representative, the Underwriters propose to offer the Securities for sale to the public upon the terms and conditions set forth in the Prospectus.

4. <u>Covenants of the Company</u>. The Company acknowledges, covenants and agrees with the Representative that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registration Statement, the ADS Registration Statement, and any amendments thereto have been declared effective, and if Rule 430A is used or the filing of the Prospectus is otherwise required under Rule 424(b), the Company will file the Prospectus (properly completed if Rule 430A has been used) pursuant to Rule 424(b) within the prescribed time period and will provide evidence satisfactory to the Representative of such timely filing. The Company will file with the Commission all Issuer Free Writing Prospectuses in the time and manner required under Rules 433(d) or 163(b)(2), as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) During the period beginning on the date hereof and ending on the later of the Closing Date or such date as, in the opinion of Loeb & Loeb LLP ("**Underwriters' Counsel**"), the Prospectus is no longer required by law to be delivered (or in lieu thereof the notice referred to in Rule 173(a) under the Securities Act is no longer required to be provided), in connection with sales by an underwriter or dealer (the "**Prospectus Delivery Period**"), prior to amending or supplementing the Registration Statement or the Prospectus, the Company shall furnish to the Representative for review a copy of each such proposed amendment or supplement, and the Company shall not file any such proposed amendment or supplement to which the Representative reasonably object within 36 hours of delivery thereof to the Representative and Underwriters' Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After the date of this Agreement, the Company shall promptly advise the Representative in writing (i) of the receipt of any comments of, or requests for additional or supplemental information from, the Commission, (ii) of the time and date of any filing of any post-effective amendment to the Registration Statement, the ADS Registration Statement, or any amendment or supplement to any prospectus, the General Disclosure Package or the Prospectus, (iii) of the time and date that any post-effective amendment to the Registration Statement or the ADS Registration Statement becomes effective, and (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement, the ADS Registration Statement, or any post-effective amendment thereto or of any order preventing or suspending its use or the use of any prospectus, the General Disclosure Package, the Prospectus or any Issuer-Represented Free Writing Prospectus, or of any proceedings to remove, suspend or terminate from listing the Class A Ordinary Shares from any securities exchange upon which they are listed for trading, or of the threatening or initiation of any proceedings for any of such purposes. If the Commission shall enter any such stop order at any time, the Company will use its commercially reasonable efforts to obtain the lifting of such order at the earliest possible moment. Additionally, the Company agrees that it shall comply with the provisions of Rules 424(b), 430A and 430B, as applicable, under the Securities Act and will use its commercially reasonable efforts to confirm that any filings made by the Company under Rule 424(b) or Rule 433 were received in a timely manner by the Commission (without reliance on Rule 424(b)(8) or Rule 164(b)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) During the Prospectus Delivery Period, the Company will comply in all material respects with all requirements imposed upon it by the Securities Act, as now and hereafter amended, and by the Rules and Regulations, as from time to time in force, and by the Exchange Act so far as necessary to permit the continuance of sales of or dealings in the Securities as contemplated by the provisions hereof, the General Disclosure Package, the Registration Statement, the ADS Registration Statement, and the Prospectus. If during such period any event occurs as a result of which the Prospectus (or if the Prospectus is not yet available to prospective purchasers, the General Disclosure Package) would include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which such statements were made, not misleading, or if during such period it is necessary or appropriate in the opinion of the Company or its counsel or the Representative or Underwriters' Counsel to amend the Registration Statement or the ADS Registration Statement, or supplement the Prospectus (or if the Prospectus is not yet available to prospective purchasers, the General Disclosure Package) to comply with the Securities Act or to file under the Exchange Act any document which would be deemed to be incorporated by reference in the Prospectus in order to comply with the Securities Act or the Exchange Act, the Company will promptly notify the Representative and will amend the Registration Statement or the ADS Registration Statement, or supplement the Prospectus (or if the Prospectus is not yet available to prospective purchasers, the General Disclosure Package) or file such document (at the expense of the Company) so as to correct such statement or omission or effect such compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If at any time following issuance of an Issuer-Represented Free Writing Prospectus there occurred or occurs an event or development as a result of which such Issuer-Represented Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement, the ADS Registration Statement, the Statutory Prospectus or the Prospectus or included or would include an untrue statement of a material fact or omitted or would omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified or promptly will notify the Representative and has promptly amended or will promptly amend or supplement, at its own expense, such Issuer-Represented Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company will promptly deliver to the Underwriters and Underwriters' Counsel a signed copy of the Registration Statement and the ADS Registration Statement, as initially filed and all amendments thereto, including all consents and exhibits filed therewith, and will maintain in the Company's files manually signed copies of such documents for at least five (5) years after the date of filing thereof. The Company will promptly deliver to each of the Underwriters such number of copies of any Preliminary Prospectus, the Prospectus, the Registration Statement, the ADS Registration Statement, and all amendments of and supplements to such documents, if any, and all documents which are exhibits to the Registration Statement and Prospectus or any amendment thereof or supplement thereto, as the Underwriters may reasonably request. Prior to 10:00 a.m., New York time, on the Business Day next succeeding the date of this Agreement and from time to time thereafter, the Company will furnish the Underwriters with copies of the Prospectus in New York City in such quantities as the Underwriters may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company consents to the use and delivery of the Preliminary Prospectus by the Underwriters in accordance with Rule 430 and Section 5(b) of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If the Company elects to rely on Rule 462(b) under the Securities Act, the Company shall both file a Rule 462(b) Registration Statement with the Commission in compliance with Rule 462(b) and pay the applicable fees in accordance with Rule 111 of the Securities Act by the earlier of: (i) 10:00 p.m., New York City time, on the date of this Agreement, and (ii) the time that confirmations are given or sent, as specified by Rule 462(b)(2).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Company will use its commercially reasonable efforts, in cooperation with the Representative, at or prior to the time of effectiveness of the Registration Statement, to qualify the Securities for offering and sale under the securities laws relating to the offering or sale of the Securities of such jurisdictions, domestic or foreign, as the Representative may reasonably designate and to maintain such qualification in effect for so long as required for the distribution thereof, except that in no event shall the Company be obligated in connection therewith to qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction, to execute a general consent to service of process in any such jurisdiction, or to subject itself to taxation in any such jurisdiction if it is otherwise not so subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) During the three (3) months period following the date of this Agreement (the "**Company Lock-up Period**"), the Company may not, without the prior written consent of the Representative, (i) offer, sell, issue, contract to sell, pledge or grant any option to purchase, make any short sale, lend or otherwise dispose of, except in the Offering, any of the Company's Class A Ordinary Shares, the ADSs, including but not limited to any options or warrants to purchase the Company's Class A Ordinary Shares, the ADSs or any securities that are convertible into or exchangeable for, or that represent the right to receive, the Company's Class A Ordinary Shares, the ADSs or any such substantially similar securities, other than (A) pursuant to employee stock option plans existing on, or (B) upon the conversion or exchange of convertible or exchangeable securities outstanding as of the date this Agreement was executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Schedule II</u> hereto contains a complete and accurate list of the Company's executive officers, directors and holders of the Company's issued and outstanding Class A Ordinary Shares (collectively, the "**Lock-Up Parties**"). The Company has caused each of the Lock-Up Parties to deliver to the Representative an executed Lock-Up Agreement, in the form attached hereto as <u>Annex I</u> (the "**Lock-Up Agreement**"), prior to the execution of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) If the Representative, in its sole discretion, agrees to release or waive the restrictions set forth in a Lock-Up Agreement described in Section 4(j) hereof for an officer, director or holder of the Company and provide the Company with notice of the impending release or waiver at least three business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by (i) a press release substantially in the form of <u>Annex VI</u> hereto through a major news service or (ii) any other method that satisfies the obligations described in FINRA Rule 5131(d)(2) at least two business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company agrees, prior to the Closing Date, to deposit Class A Ordinary Shares with the Depositary in accordance with the provisions of the Deposit Agreement and otherwise to comply with the Deposit Agreement so that ADRs evidencing the applicable Securities will be issued by the Depositary against receipt of such Securities and delivered to the Underwriter at such Closing Date or Option Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) For a period of at least two (2) years from the Effective Date, the Company shall retain a nationally recognized PCAOB registered independent public accounting firm reasonably acceptable to the Representative. The Representative acknowledges that Marcum Asia CPAs LLP is acceptable to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) During the period of one (1) year from the Effective Date, the Company will make available to the Representative copies of all reports or other communications (financial or other) furnished to security holders or from time to time published or publicly disseminated by the Company, and will deliver to the Representative: (i) as soon as practicable after they are available, copies of any reports, financial statements and proxy or information statements furnished to or filed with the Commission or any national securities exchange on which any class of securities of the Company is listed; and (ii) such additional information concerning the business and financial condition of the Company as the Representative may from time to time reasonably request in writing pursuant to a specific regulatory or liability issue or; provided, that any such item which is available on the EDGAR system (or successor thereto) need not be furnished in physical form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company will not issue press releases or engage in any other publicity, without the Representative's prior written consent, for a period ending at 5:00 p.m. Eastern time on the first Business Day following the sixtieth (60th) day following the Closing Date, other than normal and customary releases issued in the ordinary course of the Company's business, or as required by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) [Intentionally Omitted.].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Company will apply the net proceeds from the sale of the Securities as set forth under the caption "Use of Proceeds" in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Company will use its commercially reasonable efforts to effect and maintain the listing of the ADSs on the Nasdaq Stock Market for at least three (3) years after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Company, during the Prospectus Delivery Period, will file all documents required to be filed with the Commission pursuant to the Securities Act, the Exchange Act and the Rules and Regulations within the time periods required thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The Company will use its commercially reasonable efforts to do and perform all things required to be done or performed under this Agreement by the Company prior to the Closing Date, and to satisfy all conditions precedent to the delivery of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The Company will not take, and will use its commercially reasonable efforts to cause its Affiliates not to take, directly or indirectly, any action which constitutes or is designed to cause or result in, or which could reasonably be expected to constitute, cause or result in, the stabilization or manipulation of the price of any security to facilitate the sale or resale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) The Company shall cause to be prepared and delivered to the Representative, at its expense, within two (2) Business Days from the effective date of this Agreement, an Electronic Prospectus to be used by the Underwriters in connection with the Offering. As used herein, the term "Electronic Prospectus" means a form of prospectus, and any amendment or supplement thereto, that meets each of the following conditions: (i) it shall be encoded in an electronic format, satisfactory to the Representative, that may be transmitted electronically by the other Underwriters to offerees and purchasers of the Securities for at least the period during which a Prospectus relating to the Securities is required to be delivered under the Securities Act; (ii) it shall disclose the same information as the paper prospectus and prospectus filed pursuant to EDGAR, except to the extent that graphic and image material cannot be disseminated electronically, in which case such graphic and image material shall be replaced in the electronic prospectus with a fair and accurate narrative description or tabular representation of such material, as appropriate; and (iii) it shall be in or convertible into a paper format or an electronic format, satisfactory to the Representative, that will allow recipients thereof to store and have continuously ready access to the prospectus at any future time, without charge to such recipients (other than any fee charged for subscription to the Internet as a whole and for on-line time).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company represents and agrees that, unless it obtains the prior written consent of the Representative, and the Representative represents and agrees that, unless it obtains the prior written consent of the Company, it has not made and will not make any offer relating to the Securities that would constitute an "issuer free writing prospectus," as defined in Rule 433 under the Securities Act, or that would otherwise constitute a "free writing prospectus," as defined in Rule 405 under the Securities Act, required to be filed with the Commission; provided that the prior written consent of the parties hereto shall be deemed to have been given in respect of the free writing prospectuses included in <u>Schedule II</u>. Any such free writing prospectus consented to by the Company and the Representative is hereinafter referred to as a "Permitted Free Writing Prospectus." Each of the Company and the Representative represents that it has treated or agrees that it will treat each Permitted Free Writing Prospectus as an "issuer free writing prospectus," as defined in Rule 433, and has complied and will comply with the requirements of Rule 433 applicable to any Permitted Free Writing Prospectus, including timely Commission filing where required, legending and record keeping.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Company shall comply with the PRC Overseas Investment and Listing Regulations, and shall use commercially reasonable efforts to cause its securityholders that are Chinese residents or Chinese citizens, or that are directly or indirectly owned or controlled by Chinese residents or Chinese citizens, to comply with the PRC Overseas Investment and Listing Regulations applicable to them, including, without limitation, requesting each such shareholder to complete any registration and other procedures required under applicable PRC Overseas Investment and Listing Regulations (including any applicable rules and regulations of the SAFE).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) The Company shall comply with all applicable laws (including, without limitation and for the avoidance of doubt, the rules, regulations and requirements of the CSRC, Nasdaq and the Commission or any other relevant governmental authority) including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Where there is any material information that shall be reported to the CSRC pursuant to the applicable laws (including, without limitation, the CSRC Filing Rules and the CSRC Archive Rules), promptly notifying the CSRC or the relevant PRC governmental authority and providing it with such material information in accordance with to the applicable laws, and promptly notifying the Representative of such material information to the extent permitted by the applicable laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) To keep the Representative informed of any material change to the information previously given to the CSRC, Nasdaq, the Commission or of any other relevant governmental authority, and to enable the Representative to provide (or procuring their provision) to the CSRC, the Nasdaq, the Commission or any such relevant governmental authority, in a timely manner, such information as the CSRC, the Nasdaq, the Commission or any such relevant governmental authority may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) To cooperate with and fully assist, and procure the Company and its Subsidiaries, the substantial shareholders, associates of the Company, and/or any of their respective directors, officers, employees, affiliates, agents, advisers, reporting accountants, auditors, legal counsels and other relevant parties engaged by the Company in connection with the Offering to cooperate with and fully assist, in a timely manner, each of the Underwriters, to facilitate its performance of its duties and to meet its obligations and responsibilities under all applicable laws from time to time in force, including, without limitation, the CSRC Filing Rules, the CSRC Archive Rules and the rules of Nasdaq and the Commission.

5. <u>Payment of Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whether or not the transactions contemplated by this Agreement, the Registration Statement, the ADS Registration Statement, and the Prospectus are consummated or this Agreement is terminated, the Company hereby agrees to pay all reasonable and documented costs and expenses incident to the performance of its obligations hereunder including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all filing fees and communication expenses related to the registration of the Securities to be sold in the Offering including all expenses in connection with the preparation, printing, formatting for EDGAR and filing of the Registration Statement, any Preliminary Prospectus and the Prospectus and any and all amendments and supplements thereto and the mailing and delivering of copies thereof to the Underwriters and dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all fees and expenses in connection with filings with FINRA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all fees, disbursements and expenses of the Company's counsel and accountants in connection with the registration of the Securities under the Securities Act and the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all fees and expenses in connection with listing the ADSs on the Nasdaq Global Market, including all fees and expenses incurred by such parties pursuant to the Deposit Agreement and the ADRs with respect to the deposit of the Securities and the delivery of ADSs representing such deposited Class A Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the costs of all mailing and printing of the underwriting documents (including this Agreement, any blue sky surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers' Agreement, Underwriters' Questionnaire and Power of Attorney);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all reasonable travel expenses of the Company's officers and employees and any other expenses of the Company incurred in connection with attending or hosting meetings with prospective purchasers of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any stock transfer taxes payable upon the transfer of securities by the Company to the Underwriters and any other taxes incurred by the Company in connection with this Agreement or the Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) the costs associated with book building, prospectus tracking and compliance software and the cost of preparing certificates representing the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the cost and charges of any transfer agent or registrar for the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any reasonable cost and expenses in conducting background checks of the Company's officers and directors by a background search firm acceptable to the Representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) fees of Underwriters' Counsel (subject to limits on the Representative's total out-of-pocket accountable expenses described below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the cost of preparing, printing and delivering certificates representing each of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) all other costs, fees and expenses incident to the performance of the Company obligations hereunder which are not otherwise specifically provided for in this Section 5;.

The Company and the Representative acknowledge that the Company has previously paid to the Representative advances in an amount of $25,000 (the "**Advance**") against the Representative's out-of-pocket expenses. Any portion of the Advance not used shall be returned back to the Company to the extent not incurred. The Representative's total out-of-pocket accountable expenses (including legal fees, costs and expenses) in connection with the Offering shall not exceed $250,000 in the event of Closing of the Offering, and shall not exceed $50,000 in the event there is not a Closing of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything to the contrary in this Section 5, in the event that this Agreement is terminated by the Company, pursuant to Section 11(b) hereof, or subsequent to a Material Adverse Change, the Company will pay the out-of-pocket expenses actually incurred as allowed under FINRA Rule 5110 by the Underwriters through the date of such termination (including the fees and disbursements of Underwriters' Counsel) in an aggregate amount not to exceed $250,000 less the Advance previous paid.

6. <u>Conditions of Underwriters' Obli</u>g<u>ations</u>. The obligations of the Underwriters to purchase and pay for the Firm ADSs or the Option ADSs, as the case may be, as provided herein shall be subject to: (i) the accuracy of the representations and warranties of the Company herein contained, as of the date hereof and as of the Closing Date, (ii) the absence from any certificates, opinions, written statements or letters furnished to the Representative or to Underwriters' Counsel pursuant to this Section 6 of any misstatement or omission, (iii) the performance by the Company of its obligations hereunder, and (iv) each of the following additional conditions. For purposes of this Section 6, the terms "Closing Date" and "Closing" shall refer to the Closing Date for the Firm ADSs or the Option ADSs, as the case may be, and each of the foregoing and following conditions must be satisfied as of each Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Registration Statement and the ADS Registration Statement shall have become effective and all necessary regulatory or listing approvals shall have been received not later than 5:30 p.m., New York time, on the date of this Agreement, or at such later time and date as shall have been consented to in writing by the Representative. If the Company shall have elected to rely upon Rule 430A under the Securities Act, the Prospectus shall have been filed with the Commission in a timely fashion in accordance with the terms hereof and a form of the Prospectus containing information relating to the description of the Securities and the method of distribution and similar matters shall have been filed with the Commission pursuant to Rule 424(b) within the applicable time period; and, at or prior to the Closing Date or the actual time of the Closing, no stop order suspending the effectiveness of the Registration Statement or the ADS Registration Statement or any part thereof, or any amendment thereof, nor suspending or preventing the use of the General Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus shall have been issued; no proceedings for the issuance of such an order shall have been initiated or threatened; any request of the Commission for additional information (to be included in the Registration Statement, the ADS Registration Statement, the General Disclosure Package, the Prospectus, any Issuer Free Writing Prospectus or otherwise) shall have been complied with to the Representative's satisfaction; and FINRA shall have raised no objection to the fairness and reasonableness of the underwriting terms and arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Representative shall not have reasonably determined, and advised the Company, that the Registration Statement, the ADS Registration Statement, the General Disclosure Package or the Prospectus, or any amendment thereof or supplement thereto, or any Issuer Free Writing Prospectus, contains an untrue statement of fact which, in the Representative's reasonable opinion, is material, or omits to state a fact which, in the Representative's reasonable opinion, is material and is required to be stated therein or necessary to make the statements therein not misleading; provided, however, that if in the Representative's opinion such deficiency is curable Representative shall have given the Company reasonable notice of such deficiency and a reasonable chance to cure such deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Representative shall have received the written opinions of (i) Rimon P.C., the U.S., legal counsel for the Company, dated as of the Closing Date and addressed to the Representative substantially in the form attached hereto as <u>Annex II</u>, (ii) Ogier, Cayman Islands counsel for the Company dated as of the Closing Date and addressed to the Representative substantially in the form attached hereto as <u>Annex III</u>, and (iii) Zhong Lun Law Firm, legal advisors as to PRC law for the Company dated as of the Closing Date and addressed to the Representative substantially in the form attached hereto as <u>Annex IV</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Representative shall have received a certificate of the Chief Executive Officer and Chief Financial Officer of the Company, dated as of each Closing Date to the effect that: (i) the condition set forth in subsection (a) of this Section 6 has been satisfied, (ii) as of the date hereof and as of the applicable Closing Date, the representations and warranties of the Company set forth in Sections 1 and 2 hereof are accurate, (iii) as of the applicable Closing Date, all agreements, conditions and obligations of the Company to be performed or complied with hereunder on or prior thereto have been duly performed or complied with, (iv) subsequent to the respective dates as of which information is given in the Registration Statement, the ADS Registration Statement, the General Disclosure Package or the Prospectus, the Company has not sustained any material loss or interference with their respective businesses, whether or not covered by insurance, or from any labor dispute or any legal or governmental proceeding, (v) no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereof has been issued and no proceedings therefor have been initiated or threatened by the Commission, (vi) there are no pro forma or as adjusted financial statements that are required to be included or incorporated by reference in the Registration Statement, the ADS Registration Statement, and the Prospectus pursuant to the Rules and Regulations which are not so included or incorporated by reference, and (vii) subsequent to the respective dates as of which information is given in the Registration Statement, the ADS Registration Statement, and the Prospectus there has not been any Material Adverse Change or any development involving a prospective Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On the date of this Agreement and on the Closing Date, the Representative shall have received (i) a "cold comfort" letter from the Auditor as of the date of delivery and addressed to the Representative and in form and substance satisfactory to the Representative and Underwriters' Counsel, confirming that they are independent certified public accountants with respect to the Company within the meaning of the Securities Act and the Rules and Regulations, and stating, as of the date of delivery (or, with respect to matters involving changes or developments since the respective dates as of which specified financial information is given in the Prospectus, as of a date not more than five (5) days prior to the date of such letter), the conclusions and findings of such firm with respect to the financial information and other matters relating to the Registration Statement, the ADS Registration Statement, and the Prospectus covered by such letter; and (ii) a certificate of the Chief Financial Officer of the Company confirming certain financial information contained in the Registration Statement, the ADS Registration Statement, and the Prospectus not otherwise covered by the comfort letter described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date, there shall not have been any change in the capital stock or long-term debt of the Company or any change or development involving a change, whether or not arising from transactions in the ordinary course of business, in the business, condition (financial or otherwise), results of operations, shareholders' equity, properties or prospects of the Company including but not limited to the occurrence of any fire, flood, storm, explosion, accident, act of war or terrorism or other calamity, the effect of which, in any such case described above, is, in the sole judgment of the Representative, so material and adverse as to make it impracticable or inadvisable to proceed with the Offering on the terms and in the manner contemplated in the Prospectus (exclusive of any supplement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Prior to the execution and delivery of this Agreement, the Representative shall have received a lock-up agreement from each Lock-Up Party, duly executed by the applicable Lock-Up Party, in each case substantially in the form attached hereto as <u>Annex I</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Class A Ordinary Shares and ADSs are registered under the Exchange Act and, as of the Closing Date, the ADSs shall be listed and admitted and authorized for trading on the Nasdaq Global Market and satisfactory evidence of such action shall have been provided to the Representative. The Company shall have taken no action designed to, or likely to have the effect of terminating the registration of the ADSs under the Exchange Act or delisting or suspending from trading the ADSs from the Nasdaq Global Market, nor has the Company received any information suggesting that the Commission or the Nasdaq Global Market is contemplating terminating such registration of listing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) FINRA shall have confirmed that it has not raised any objection with respect to the fairness and reasonableness of the underwriting terms and arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state or foreign governmental or regulatory authority that would, as of the Closing Date, prevent the issuance or sale of the Securities; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the issuance or sale of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Company shall have furnished the Representative satisfactory evidence of the good standing of the Company and its Subsidiaries listed on <u>Schedule IV</u>, in their respective jurisdictions of organization (to the extent the concept of "good standing" or such equivalent concept exists under the laws of the applicable jurisdictions) and their good standing as foreign entities in such other jurisdictions as the Underwriter may reasonably request, in each case in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdictions. If the applicable jurisdiction does not have a concept of "good standing," the Company will furnish evidence in writing or any standard form of telecommunication from the appropriate governmental authorities that the relevant company was duly incorporated and remains duly registered in the jurisdiction of its incorporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Company shall have furnished the Representative and Underwriters' Counsel with such other certificates, opinions or other documents as they may have reasonably requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) On each Closing Date, there shall have been issued to the Representative, a Representative's Purchase Option in the form attached hereto as <u>Annex V</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Depositary shall have furnished or caused to be furnished to the Representative a certificate satisfactory to the Representative of one of its authorized officers with respect to the deposit with the Custodian (as defined in the Deposit Agreement) of the Class A ordinary shares against issuance of the Securities, the execution, issuance, countersignature (if applicable) and delivery of the Securities pursuant to the Deposit Agreement and such other customary matters related thereto as the Representative may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Company and the Depositary shall have executed and delivered the Deposit Agreement, and the Deposit Agreement shall be in full force and effect.

If any of the conditions specified in this Section 6 shall not have been fulfilled when and as required by this Agreement, or if any of the certificates, opinions, written statements or letters furnished to the Representative or to Underwriters' Counsel pursuant to this Section 6 shall not be reasonably satisfactory in form and substance to the Representative and to Underwriters' Counsel, all obligations of the Underwriters hereunder may be cancelled by the Representative at, or at any time prior to, the consummation of the Closing. Notice of such cancellation shall be given to the Company in writing or by telephone. Any such telephone notice shall be confirmed promptly thereafter in writing.

7. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees to indemnify and hold harmless each Underwriter, its officers, directors and employees, and each Person, if any, who controls such Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to reasonable attorneys' fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise (including in settlement of any litigation if such settlement is effected with the written consent of the Company), insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in (A) the Registration Statement and the ADS Registration Statement, including the information deemed to be a part of the Registration Statement and the ADS Registration Statement at the time of effectiveness and at any subsequent time pursuant to Rules 430A and 430B of the Rules and Regulations, the General Disclosure Package, the Prospectus, or any amendment or supplement thereto (including any documents filed under the Exchange Act and deemed to be incorporated by reference into the Prospectus), (B) any Issuer Free Writing Prospectus or in any other materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the offering of the Securities, including any road show or investor presentations made to investors by the Company (whether in person or electronically) (collectively "**Marketing Materials**") or (C) any filings or reports filed by the Company under the Exchange Act or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse such indemnified party for any legal or other expenses reasonably incurred by it in connection with investigating or defending against such loss, claim, damage, liability or action; or (ii) in whole or in part upon any inaccuracy in the representations and warranties of the Company contained herein; or (iii) in whole or in part upon any failure of the Company to perform its obligations hereunder; provided, however, that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, liability or action arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the ADS Registration Statement, any Preliminary Prospectus, the General Disclosure Package, the Prospectus, or any such amendment or supplement, any Issuer Free Writing Prospectus or any other Marketing Materials, in reliance upon and in conformity with the Underwriters' Information. With respect to any untrue statement or omission or alleged untrue statement or omission made in the Preliminary Prospectus, the indemnity agreement contained in this Section 7(a) shall not inure to the benefit of an Underwriter to the extent that any loss, liability, claim, damage or expense of such Underwriter results from the fact that a copy of the Prospectus was not given or sent to the Person asserting any such loss, liability, claim or damage at or prior to the written confirmation of sale of the Securities to such Person as required by the Securities Act and the rules and regulations thereunder, and if the untrue statement or omission has been corrected in the Prospectus, unless such failure to deliver the Prospectus was a result of non-compliance by the Company with its obligations under this Agreement. The Company agrees promptly to notify each Underwriter of the commencement of any litigation or proceedings against the Company or any of its officers, directors or Controlling Persons in connection with the issue and sale of the Securities or in connection with the Registration Statement, the ADS Registration Statement, or Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Underwriter, severally and not jointly, shall indemnify and hold harmless the Company, each of the directors of the Company, each of the officers of the Company who shall have signed the Registration Statement, and each other Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, liabilities, claims, damages and expenses whatsoever as incurred (including but not limited to attorneys' fees and any and all expenses whatsoever incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, and any and all amounts paid in settlement of any claim or litigation), joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, liabilities, claims, damages or expenses (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, as originally filed or any amendment thereof, or any related Preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that any such loss, liability, claim, damage or expense arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with the Underwriters' Information; provided, however, that in no case shall any Underwriter be liable or responsible for any amount in excess of the aggregate underwriting discount applicable to the Securities to be purchased by such Underwriter hereunder. The parties agree that such information provided by or on behalf of any Underwriter through the Representative consists solely of the material referred to in the last sentence of Section 2(b) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice of any claims or the commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party under such subsection, notify each party against whom indemnification is to be sought in writing of the claim or the commencement thereof (but the failure so to notify an indemnifying party shall not relieve the indemnifying party from any liability which it may have under this Section 7 to the extent that it is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability that such indemnifying party may have otherwise than on account of the indemnity agreement hereunder). In case any such claim or action is brought against any indemnified party, and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate, at its own expense in the defense of such action, and to the extent it may elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel satisfactory to such indemnified party; provided however, that counsel to the indemnifying party shall not (except with the written consent of the indemnified party) also be counsel to the indemnified party. Notwithstanding the foregoing, the indemnified party or parties shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of such indemnified party or parties unless (i) the employment of such counsel shall have been authorized in writing by one of the indemnifying parties in connection with the defense of such action, (ii) the indemnifying parties shall not have employed counsel to have charge of the defense of such action within a reasonable time after notice of commencement of the action, (iii) the indemnifying party does not diligently defend the action after assumption of the defense, or (iv) such indemnified party or parties shall have reasonably concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party, or any of them, in conducting the defense of any such action or there may be legal defenses available to it or them which are different from or additional to those available to one or all of the indemnifying parties (in which case the indemnifying parties shall not have the right to direct the defense of such action on behalf of the indemnified party or parties), in any of which events such fees and expenses shall be borne by the indemnifying parties and shall be paid as incurred. No indemnifying party shall, without the prior written consent of the indemnified parties (which consent shall not be unreasonably delayed, withhold or denied), effect any settlement or compromise of, or consent to the entry of judgment with respect to, any pending or threatened claim, investigation, action or proceeding in respect of which indemnity or contribution may be or could have been sought by an indemnified party under this Section 7 or Section 8 hereof (whether or not the indemnified party is an actual or potential party thereto), unless (x) such settlement, compromise or judgment (i) includes an unconditional release of the indemnified party from all liability arising out of such claim, investigation, action or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or any failure to act, by or on behalf of the indemnified party, and (y) the indemnifying party confirms in writing its indemnification obligations hereunder with respect to such settlement, compromise or judgment.

8. <u>Contribution</u>. In order to provide for contribution in circumstances in which the indemnification provided for in Section 7 is for any reason held to be unavailable from any indemnifying party or is insufficient to hold harmless a party indemnified thereunder, the Company and the Underwriters shall contribute to the aggregate losses, claims, damages, liabilities and expenses of the nature contemplated by such indemnification provision (including any investigation, legal and other expenses incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claims asserted, but after deducting in the case of losses, claims, damages, liabilities and expenses suffered by the Company, any contribution received by the Company from Persons, other than the Underwriters, who may also be liable for contribution, including Persons who control the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, officers of the Company who signed the Registration Statement and directors of the Company) as incurred to which the Company and one or more of the Underwriters may be subject, in such proportions as is appropriate to reflect the relative benefits received by the Company and the Underwriters from the Offering or, if such allocation is not permitted by applicable law, in such proportions as are appropriate to reflect not only the relative benefits referred to above but also the relative fault of the Company and the Underwriters in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Underwriters shall be deemed to be in the same proportion as (x) the total proceeds from the Offering (net of underwriting discounts and commissions but before deducting expenses) received by the Company bears to (y) the underwriting discount or commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. The relative fault of each of the Company and of the Underwriters shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to above in this Section. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 8 shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any judicial, regulatory or other legal or governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. Notwithstanding the provisions of this Section 8: (i) no Underwriter shall be required to contribute any amount in excess of the aggregate discounts and commissions applicable to the Securities underwritten by it and distributed to the public and (ii) no Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 8, each Person, if any, who controls an Underwriter within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as such Underwriter, and each Person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to clauses (i) and (ii) of the immediately preceding sentence. Any party entitled to contribution will, promptly after receipt of notice of commencement of any action, suit or proceeding against such party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties from whom contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have under this Section 8 or otherwise. The obligations of the Underwriters to contribute pursuant to this Section 8 are several in proportion to the respective number of Securities to be purchased by each of the Underwriters hereunder and not joint.

9. <u>Underwriter Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Underwriter or Underwriters shall default in its or their obligation to purchase Firm ADSs hereunder, and if the securities with respect to which such default relates (the "**Default Securities**") do not (after giving effect to arrangements, if any, made by the Representative pursuant to subsection (b) below) exceed in the aggregate 10% of the number of Firm ADSs, each non-defaulting Underwriter, acting severally and not jointly, agrees to purchase from the Company that number of Default Securities that bears the same proportion of the total number of Default Securities then being purchased as the number of Firm ADSs set forth opposite the name of such Underwriter on <u>Schedule I</u> hereto bears to the aggregate number of Firm ADSs set forth opposite the names of the non-defaulting Underwriters, subject, however, to such adjustments to eliminate fractional shares as the Representative in its sole discretion shall make.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the aggregate number of Default Securities exceeds 10% of the number of Firm ADSs, the Representative may in its discretion arrange for themselves or for another party or parties (including any non-defaulting Underwriter or Underwriters who so agree) to purchase the Default Securities on the terms contained herein. In the event that within 48 hours after such a default the Representative does not arrange for the purchase of the Default Securities as provided in this Section 9, this Agreement shall thereupon terminate, without liability on the part of the Company with respect thereto (except in each case as provided in Sections 5, 7, 8, 9 and 11(d)) or the Underwriters, but nothing in this Agreement shall relieve a defaulting Underwriter or Underwriters of its or their liability, if any, to the other Underwriters and the Company for damages occasioned by its or their default hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event that any Default Securities are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid, the Representative or the Company shall have the right to postpone the Closing Date for a period, not exceeding five (5) Business Days, in order to effect whatever changes may thereby be necessary in the Registration Statement, the ADS Registration Statement, or the Prospectus or in any other documents and arrangements, and the Company agrees to file promptly any amendment or supplement to the Registration Statement, the ADS Registration Statement, or the Prospectus which, in the reasonable opinion of Underwriters' Counsel, may thereby be made necessary or advisable. The term "Underwriter" as used in this Agreement shall include any party substituted under this Section 9 with like effect as if it had originally been a party to this Agreement with respect to such Firm ADSs.

10. <u>Survival of Representations and A</u>g<u>reements</u>. All representations and warranties, covenants and agreements of the Company and the Underwriters contained in this Agreement or in certificates of officers of the Company submitted pursuant hereto, including the agreements contained in Sections 5, 10, 14 and 15, the indemnity agreements contained in Section 7 and the contribution agreements contained in Section 8 hereof, shall remain operative and in full force and effect regardless of any investigation made by or on behalf of any Underwriter or any controlling Person thereof or by or on behalf of the Company, any of its officers and directors or any controlling Person thereof, and shall survive delivery of and payment for the Securities to and by the Underwriters. The representations contained in Section 2 hereof and the covenants and agreements contained in Sections 5, 7, 8, this Section 10 and Sections 12, 13, 14 and 15 hereof shall survive any termination of this Agreement, including termination pursuant to Section 9 or 11 hereof. The representations and covenants contained in Sections 2, 3 and 4 hereof shall survive termination of this Agreement if any Securities are purchased pursuant to this Agreement.

11. <u>Effective Date of Agreement; Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall become effective upon the later of: (i) receipt by the Representative and the Company of notification of the effectiveness of the Registration Statement and the ADS Registration Statement or (ii) the execution of this Agreement. Notwithstanding any termination of this Agreement, the provisions of this Section 11 and of Sections 5, 7, 8, 12, 13, 14 and 15, inclusive, shall remain in full force and effect at all times after the execution hereof. If this Agreement is terminated after any Securities have been purchased hereunder, the provisions of Sections 2, 3 and 4 hereof shall survive termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Representative shall have the right to terminate this Agreement at any time prior to the consummation of the Closing if: (i) any domestic or international event or act or occurrence has materially disrupted, or in the opinion of the Representative will in the immediate future materially disrupt, the market for the Company's securities or securities in general; or (ii) trading on the New York Stock Exchange or the Nasdaq Stock Market shall have been suspended or been made subject to material limitations, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required, on the New York Stock Exchange or the Nasdaq Stock Market or by order of the Commission, FINRA or any other governmental authority having jurisdiction; or (iii) a banking moratorium has been declared by any state or federal authority or if any material disruption in commercial banking or securities settlement or clearance services shall have occurred; (iv) any downgrading shall have occurred in the Company's corporate credit rating or the rating accorded the Company's debt securities by any "nationally recognized statistical rating organization" (as defined for purposes of Rule 436(g) under the Securities Act) or if any such organization shall have been publicly announced that it has under surveillance or review, with material negative implications, its rating of any of the Company's debt securities; or (v) (A) there shall have occurred any outbreak or escalation of hostilities or acts of terrorism involving the United States or there is a declaration of a national emergency or war by the United States, excluding a national emergency declared related to the COVID-19 pandemic, or (B) there shall have been any other calamity or crisis or any change in political, financial or economic conditions if the effect of any such event in (A) or (B), in the judgment of the Representative, is so material and adverse that such event makes it impracticable or inadvisable to proceed with the offering, sale and delivery of the Firm ADSs on the terms and in the manner contemplated by the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any notice of termination pursuant to this Section 11 shall be in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If this Agreement shall be terminated pursuant to any of the provisions hereof or if the sale of the Securities provided for herein is not consummated because any condition to the obligations of the Underwriters set forth herein is not satisfied or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or comply with any provision hereof, the Company will, subject to demand by the Representative, reimburse the Underwriters for those out-of-pocket expenses (including the reasonable fees and expenses of Underwriters' Counsel), actually incurred by the Underwriters in connection herewith up to a maximum of $250,000 less the Advance previously paid.

12. <u>Notices</u>. All communications hereunder, except as may be otherwise specifically provided herein, shall be in writing, and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if sent to the Representative or any Underwriter, shall be mailed, delivered, or faxed and confirmed in writing, to:

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|:---|
| Ninth Eternity Securities LLC |
| 1 Broadway, 14th Floor |
| Cambridge, MA 02412 |
| Attention: [NAME] |

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Fax: [______]

with a copy to Underwriters' Counsel at:

Loeb & Loeb LLP

345 Park Avenus

New York, NY 10154

Attention: Mitchell S. Nussbaum, Esq.

Fax: (212)-407-4990

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if sent to the Company, shall be mailed, delivered, or faxed and confirmed in writing to the Company and its counsel at the addresses set forth in the Registration Statement.

13. <u>Parties; Limitation of Relationship</u>. This Agreement shall inure solely to the benefit of, and shall be binding upon, the Underwriters, the Company and the controlling Persons, directors, officers, employees and agents referred to in Sections 7 and 8 hereof, and their respective successors and assigns, and no other Person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Agreement or any provision herein contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the parties hereto and said controlling Persons and their respective successors, officers, directors, heirs and legal representative, and it is not for the benefit of any other Person. The term "successors and assigns" shall not include a purchaser, in its capacity as such, of Securities from any of the Underwriters.

14. <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to conflict of laws principles (other than Section 5-1401 of the General Obligations Law.

15. <u>Submission to Jurisdiction, Etc</u>. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. The Company irrevocably (a) submits to the jurisdiction of any court of the State of New York for the purpose of any suit, action, or other proceeding arising out of this Agreement, or any of the agreements or transactions contemplated by this Agreement, the Registration Statement and the Prospectus (each, a "**Proceeding**"), **(**b) agrees that all claims in respect of any Proceeding may be heard and determined in any such court, (c) waives, to the fullest extent permitted by law, any immunity from jurisdiction of any such court or from any legal process therein, (d) agrees not to commence any Proceeding other than in such courts, and (e) waives, to the fullest extent permitted by law, any claim that such Proceeding is brought in an inconvenient forum. EACH OF THE COMPANY (ON BEHALF OF ITSELF AND, TO THE FULLEST EXTENT PERMITTED BY LAW, ON BEHALF OF ITS RESPECTIVE EQUITY HOLDERS AND CREDITORS) HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED UPON, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE REGISTRATION STATEMENT, AND THE PROSPECTUS.

16. <u>Entire A</u>g<u>reement</u>. This Agreement, together with the exhibits, schedules and annexes attached hereto and as the same may be amended from time to time in accordance with the terms hereof, constitutes the entire agreement of the parties to this Agreement and supersedes all prior or contemporaneous written or oral agreements, understandings, promises and negotiations with respect to the subject matter hereof.

17. <u>Severability</u>. If any term or provision of this Agreement or the performance thereof shall be invalid or unenforceable to any extent, such invalidity or unenforceability shall not affect or render invalid or unenforceable any other provision of this Agreement and this Agreement shall be valid and enforced to the fullest extent permitted by law.

18. <u>Amendment</u>. This Agreement may only be amended by a written instrument executed by each of the parties hereto.

19. <u>Waiver, etc</u>. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way effect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

20. <u>No Fiduciary Relationship</u>. The Company hereby acknowledges that the Underwriters are acting solely as underwriters in connection with the offering of the Company's Securities. The Company further acknowledge that the Underwriters are acting pursuant to a contractual relationship created solely by this Agreement entered into on an arm's length basis and in no event do the parties intend that the Underwriters act or be responsible as a fiduciary to the Company, its management, shareholders, creditors or any other person in connection with any activity that the Underwriters may undertake or have undertaken in furtherance of the offering of the Company's Securities, either before or after the date hereof. The Underwriters hereby expressly disclaim any fiduciary or similar obligations to the Company, either in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions, and the Company hereby confirms its understanding and agreement to that effect. The Company hereby further confirms its understanding that no Underwriter has assumed an advisory or fiduciary responsibility in favor of the Company with respect to the Offering contemplated hereby or the process leading thereto, including any negotiation related to the pricing of the Securities; and the Company has consulted its own legal and financial advisors to the extent it has deemed appropriate in connection with this Agreement and the Offering. The Company and the Underwriters agree that they are each responsible for making their own independent judgments with respect to any such transactions, and that any opinions or views expressed by the Underwriters to the Company regarding such transactions, including but not limited to any opinions or views with respect to the price or market for the Company's securities, do not constitute advice or recommendations to the Company. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against the Underwriters with respect to any breach or alleged breach of any fiduciary or similar duty to the Company in connection with the transactions contemplated by this Agreement or any matters leading up to such transactions.

21. <u>Judgment Currency</u>. The obligation of the Company in respect of any sum due to any Underwriter under this Agreement shall, notwithstanding any judgment in a currency other than U.S. dollars (the "**Judgment Currency**"), not be discharged until the first business day, following receipt by such Underwriter of any sum adjudged to be so due in the Judgment Currency, on which (and only to the extent that) such Underwriter may in accordance with normal banking procedures purchase U.S. dollars with the Judgment Currency; if the U.S. dollars so purchased are less than the sum originally due to such Underwriter hereunder, the Company agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such Underwriter against such loss. If the U.S. dollars so purchased are greater than the sum originally due to such Underwriter hereunder, such Underwriter agrees to pay to the Company an amount equal to the excess of the U.S. dollars so purchased over the sum originally due to such Underwriter hereunder

22. <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. Delivery of a signed counterpart of this Agreement by facsimile or other electronic transmission shall constitute valid and sufficient delivery thereof.

23. <u>Headings</u>. The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement.

24. <u>Time is of the Essence</u>. Time shall be of the essence of this Agreement. As used herein, the term "Business Day" shall mean any day other than a Saturday, Sunday or any day on which the major stock exchanges in New York, New York are not open for business.

[Signature Pages Follow]

If the foregoing correctly sets forth your understanding, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement among us.

Very truly yours,

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|:---|
| CARBON ZERO TECHNOLOGY INTERNATIONAL INC. |
| By: |
| Name: |
| Title: |

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**Accepted by the Representative, acting for themselves and as<br> Representative of the Underwriters named on <u>Schedule I</u> attached hereto,<br> as of the date first written above:**

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|:---|:---|
| NINTH ETERNITY SECURITIES LLC | NINTH ETERNITY SECURITIES LLC |
| By: |  |
| Name: | [_____] |
| Title: | [________] |

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**SCHEDULE I**

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| | | |
|:---|:---|:---|
| **Underwriter** | **Total Number of Firm Shares to be Purchased** | **Number of Option Shares to be Purchased if the Over-Allotment Option is Fully Exercised** |
| Ninth Eternity Securities LLC |  |  |
| **TOTAL** |  |  |

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Schedule I-1

**SCHEDULE II**

**Lock-Up Parties**

---

| |
|:---|
| Baitong Tang |
| Lili Guan |
| Tiexin Tang |
| Wei Zhao |
| Xin Yao |
| Zhengwu Zhang |
| Expola Investment Limited |
| Beveist Investment Limited |
| Getcher Investment Limited |
| Endoeval Investment Limited |
| Unatee Investment Limited |
| Groadse Investment Limited |

---

Schedule II-1

**SCHEDULE III**

**Free Writing Prospectus**

Schedule III-1

**SCHEDULE IV**

**Subsidiaries**

---

| | |
|:---|:---|
| **Subsidiaries** | **Place of Incorporation** |
| Carbon Zero Technologies (Hong Kong) Limited. | Hong Kong |
| Carbon Source Technologies (Hong Kong) Limited. | Hong Kong |
| Beijing Bgreen Technology Development Co. Ltd. | China |
| Shenzhen Carbon Zero Technology Co. Ltd. | China |
| Shenzhen ABGreen Environmental Protection Technology Co., Ltd. (including Shenzhen ABGreen Environmental Protection Technology Co., Ltd Liaoning Branch) | China |
| Shenzhen Green Blue Environmental Protection Technology Co., Ltd. | China |
| ABGreen (Fuyang) Environmental Protection Technology Co., Ltd. | China |
| Guangxi Meijin Environmental Protection Technology Co., Ltd. | China |
| Ankang ABGreen Environmental Protection Technology Co. Ltd. | China |
| Shenzhen ABGreen Reverse Supply Chain Co., Ltd. | China |
| Henan Jinyou Metal Technology Co. Ltd. | China |
| Zhoukou Senbo Environmental Protection Technology Co., Ltd. | China |
| Xieguan Tonglian (Shenzhen) Technology Co., Ltd. | China |
| Shenzhen Yize Environmental Protection Technology Co., Ltd. | China |
| Shenzhen Bgreen Environmental Technology Co., Ltd. | China |
| Shenzhen Carbon Poly Digital Technology Co., Ltd. | China |
| Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. | China |
| Beijing Guoxun Renewable Resources Co., Ltd. | China |
| Gongqingcheng Yadannuo Environmental Technology Co., Ltd. | China |
| Jiangxi Jingchuang Metal Manufacturing Co., Ltd. | China |
| Hubei Carbon Link Recycling Technology Co., Ltd. | China |
| Henan AB Green Environmental Protection Technology Co., Ltd. | China |
| Jiangxi Qi Hong New Material Technology Co., Ltd. | China |
| Jushang (Hebei) Renewable Resources Co., Ltd. | China |
| Guangdong Bo Green Investment Co., Ltd. | China |
| Zhoukou Bgreen Environmental Protection Technology Co., Ltd. | China |
| Hunan ABGreen Environmental Protection Technology Co. Ltd. | China |
| Quanzhou Qinghe Environmental Protection Technology Co., Ltd. | China |
| Carbon Baike (Beijing) Environmental Protection Technology Co., Ltd. | China |
| Anhui ABGreen Environmental Protection Technology Co. Ltd. | China |
| Henan Zhicheng Industrial Park Management Co., Ltd. | China |
| Henan Bgreen Resources and Environment Co., Ltd. | China |

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Schedule IV-1

**ANNEX I**

**FORM OF LOCK-UP AGREEMENT**

__________, 2026

Ninth Eternity Securities LLC

1 Broadway, 14th Floor

Cambridge, MA 02412

Ladies and Gentlemen:

The undersigned understands that Ninth Eternity Securities LLC (the "**Representative**") proposes to enter into an Underwriting Agreement (the "**Underwriting Agreement**") with Carbon Zero Technologies International Inc., a Cayman Islands exempted company (the "**Company**"), providing for the public offering (the "**Public Offering**") of American Depositary Shares (the "**ADSs**") each American Depositary Share ("**ADS**") representing _____ Class A ordinary shares, par value $0.00001 per share of the Company ("**Ordinary Shares**").

To induce the Representative to continue its efforts in connection with the Public Offering, the undersigned hereby agrees that, without the prior written consent of the Representative, the undersigned will not, during the period commencing on the date of the Underwriting Agreement and six months after such date (the "**Lock-Up Period**"), (1) offer, pledge, sell, contract to sell, grant, lend, or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or ADSs or any securities convertible into or exercisable or exchangeable for Ordinary Shares, whether now owned or hereafter acquired by the undersigned or with respect to which the undersigned has or hereafter acquires the power of disposition (collectively, the "**Lock-Up Securities**"); (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of the Lock-Up Securities, whether any such transaction described in clause (1) or (2) above is to be settled by delivery of Lock-Up Securities, in cash or otherwise; (3) make any demand for or exercise any right with respect to the registration of any Lock-Up Securities; or (4) publicly disclose the intention to make any offer, sale, pledge or disposition, or to enter into any transaction, swap, hedge or other arrangement relating to any Lock-Up Securities.

Annex I-1

The foregoing restrictions will not apply to the registration of the offer and sale of the Ordinary Shares, and the sale of the ADSs to the underwriters, in each case as contemplated by the Underwriting Agreement. In addition, subject to the conditions below, the undersigned may transfer Lock-Up Securities, (1) if the undersigned is a natural person, to any transfers made by the undersigned (a) by gift, will or intestacy succession to a family member (for purposes of this lock-up agreement, "family member" means any relationship by blood, marriage or adoption, not more remote than first cousin), (b) to a family member, (c) to a trust whose beneficiaries consist exclusively of one or more of the undersigned and/or a family member, or (d) as a *bona fide* gift to a charity or educational institution, if, in any such case, such transfer is not for value; (2) if the undersigned is a corporation, partnership, limited liability company or other business entity, to any transfers to any shareholder, partner, or member of, or owner of a similar equity interest in, the undersigned; (3) if the undersigned is a corporation, partnership, limited liability company or other business entity, to any transfer made by the undersigned to another corporation, partnership, limited liability company or other business entity so long as the transferee is an affiliate of the undersigned or is an investment fund or any other entity controlling, controlled by, managing, or managed by or under common control with the undersigned or affiliates of the undersigned (including, for the avoidance of doubt, where the undersigned is a partnership, to its general partner or a successor partnership or fund, or any other funds managed by such partnership); (4) to transactions relating to Lock-Up Securities acquired in the Public Offering if the undersigned is not an officer or director of the Company or in open market transactions after completion of the Public Offering, provided that no filing under the Exchange Act (other than reports filed under Section 13 of the Exchange Act) shall be required, and such transaction is not publicly announced (whether on Form 4, Form 5 or otherwise) during the Lock-Up Period and, if the filing of a report is required under Section 13 of the Exchange Act during the Lock-Up Period, such filing shall clearly indicate the type of transaction giving rise to the change in ownership; (5) to the entry, by the undersigned, at any time on or after the date of the Underwriting Agreement, of any trading plan providing for the sale of Lock-Up Securities by the undersigned, which trading plan meets the requirements of Rule 10b5-1(c) under the Exchange Act, provided, however, that such plan does not provide for, or permit, the sale of any Shares during the Lock-Up Period and no public announcement or filing is voluntarily made or required regarding such plan during the Lock-Up Period; (6) to any transfers made by the undersigned to the Company in connection with the exercise, vesting or settlement of options, warrants, or other rights to acquire Lock-Up Securities in accordance with their terms (including, in each case, by way of net exercise and/or to cover withholding tax obligations); (7) to any transfer of Lock-Up Securities pursuant to a bona fide third-party tender offer for securities of the Company, merger, consolidation or other similar transaction made to all holders of the Company's securities involving a change of control, which transaction is approved by the board of directors of the Company, provided that all of the undersigned's securities subject to this agreement that are not so transferred, sold, tendered or otherwise disposed of remain subject to this agreement, and provided further that it shall be a condition of the transfer that if the tender offer, merger, consolidation or other such transaction is not completed, the undersigned's securities subject to this agreement shall remain subject to the restrictions herein; (8) to any transfer of Lock-Up Securities by operation of law, such as pursuant to a qualified domestic order or as required by a divorce settlement; (9) to any transfer of the undersigned's Lock-Up Securities to the Company in connection with (a) the termination of the undersigned's employment with the Company, or (b) pursuant to agreements under which the Company has the option to repurchase such shares; (10) create any security interest or encumbrance over any Lock-Up Securities pursuant to a margin account or in connection with a *bona fide* debt financing made to the undersigned by banks or other financial institutions, provided that no enforcement of, or foreclosure with respect to such Lock-Up Securities shall take place during the Lock-Up Period; and (11) to any transfer of Lock-Up Securities to a depositary in exchange for American Depositary Shares, provided that any such Lock-up Securities received upon such conversion or American Depositary Shares received upon exchange shall be subject to the restrictions on transfer set forth in this agreement; *provided, however*, that in any such case, it shall be a condition to such transfer that:

● in the case of any transfer described in clause (1), (2), (3) or (4) above, it shall be a condition to the transfer that each transferee executes and delivers to the Representative an agreement in form and substance satisfactory to the Representative stating that such transferee is receiving and holding such Lock-Up Securities subject to the provisions of this agreement and agrees not to sell or offer to sell such Lock-Up Securities, engage in any swap or engage in any other activities restricted under this agreement except in accordance with this agreement (as if such transferee had been an original signatory hereto);

● in the case of any transfer described in clause (1), (2), (3) and (4) above, prior to the expiration of the Lock-Up Period, no public disclosure or filing under Section 16 of the Exchange Act by any party to the transfer (donor, donee, transferor or transferee) shall be required, or made voluntarily, reporting a reduction in beneficial ownership in connection with such transfer; and

● in the case of any transfer described in clause (6), (8), (9) or (11) above, that any required filing under Section 16 of the Exchange Act shall indicate in the footnotes thereto that the filing relates to the circumstances described in such clause and no other public announcement shall be required or shall be made voluntarily in connection with such transfer.

Annex I-2

If the undersigned is an officer or director of the Company, (i) the undersigned agrees that the foregoing restrictions shall be equally applicable to any Securities that the undersigned may purchase in the Public Offering; (ii) the Representative agrees that, at least three (3) business days before the effective date of any release or waiver of the foregoing restrictions in connection with a transfer of Lock-Up Securities, the Representative will notify the Company of the impending release or waiver; and (iii) the Company has agreed in the Underwriting Agreement to announce the impending release or waiver by press release through a major news service at least two (2) business days before the effective date of the release or waiver. Any release or waiver granted by the Representative hereunder to any such officer or director shall only be effective two (2) business days after the publication date of such press release. The provisions of this paragraph will not apply if (a) the release or waiver is effected solely to permit a transfer of Lock-Up Securities not for consideration and (b) the transferee has agreed in writing to be bound by the same terms described in this lock-up agreement to the extent and for the duration that such terms remain in effect at the time of such transfer.

No provision in this lock-up agreement shall be deemed to restrict or prohibit the exercise, exchange or conversion by the undersigned of any securities exercisable or exchangeable for or convertible into Ordinary Shares or ADSs, as applicable; <u>provided</u> that the undersigned does not transfer the Ordinary Shares or ADSs acquired on such exercise, exchange or conversion during the Lock-Up Period, unless otherwise permitted pursuant to the terms of this lock-up agreement. In addition, no provision herein shall be deemed to restrict or prohibit the entry into or modification of a so-called "10b5-1" plan at any time (other than the entry into or modification of such a plan in such a manner as to cause the sale of any Lock-Up Securities within the Lock-Up Period) or a sale of 100% of the Company's outstanding Ordinary Shares.

The undersigned understands that the Company and the Representative are relying upon this lock-up agreement in proceeding toward consummation of the Public Offering. The undersigned further understands that this lock-up agreement is irrevocable and shall be binding upon the undersigned's heirs, legal representatives, successors and assigns.

The undersigned understands that, if the Underwriting Agreement is not executed by ______________, 2026, or if the Underwriting Agreement (other than the provisions thereof which survive termination) shall terminate or be terminated prior to payment for and delivery of the securities to be sold thereunder, then this lock-up agreement shall be void and of no further force or effect.

Whether or not the Public Offering actually occurs depends on a number of factors, including market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement, the terms of which are subject to negotiation between the Company and the Representative.

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| |
|:---|
| Very truly yours, |
| By: |
| Print Name: |
| Name of Signatory, in the case of entities: |
| Title of Signatory, in the case of entities: |

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Annex I-3

**ANNEX II**

**FORM OF U.S. SECURITIES COUNSEL OPINION**

[Intentionally Omitted.]

Annex II-1

**ANNEX III**

**FORM OF CAYMAN ISLANDS COUNSEL OPINION**

[Intentionally Omitted.]

Annex III-1

**ANNEX IV**

**FORM OF OPINION OF PRC COUNSEL**

[Intentionally Omitted.]

Annex IV-1

**ANNEX V**

**FORM OF REPRESENTATIVE'S PURCHASE OPTION**

**AMERICAN DEPOSITORY SHARES PURCHASE WARRANT**

**CARBON ZERO TECHNOLOGY INTERNATIONAL INC.**

Warrant ADSs: [ ] Original Issuance Date: [ ], 2026

THIS AMERICAN DEPOSITORY SHARES PURCHASE WARRANT (the "Warrant") certifies that, for value received, Ninth Eternity Securities LLC or its assigns (the "Holder") is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or from time to time from [ ], 2026 (the "Initial Exercise Date")<sup>1</sup> and on or prior to 5:00 p.m. (New York City time) on [ ], [2030] (the "Termination Date")<sup>2</sup> but not thereafter, to subscribe for and purchase from Carbon Zero Technologies International Inc., a Cayman Islands exempted company (the "Company"), up to [ ] American Depositary Shares (each, an "ADS" and, collectively, the "ADSs"), each ADS representing [ ] Class A ordinary share, par value US$0.00001 per share of the Company (the "Ordinary Shares") (as subject to adjustment hereunder, the "Warrant ADSs"). The purchase price of one ADS under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).

Section 1. <u>Definitions</u>. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Underwriting Agreement (the "Agreement"), dated [ ], 2026 by and between the Company and Ninth Eternity Securities LLC, as representative of the several underwriters.

Section 2. <u>Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Exercise of Warrant</u>. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto (the "Notice of Exercise"). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier's check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant ADSs available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant ADSs available hereunder shall have the effect of lowering the outstanding number of Warrant ADSs purchasable hereunder in an amount equal to the applicable number of Warrant ADSs purchased. The Holder and the Company shall maintain records showing the number of Warrant ADSs purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Business Day of receipt of such notice. **The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant ADSs hereunder, the number of Warrant ADSs available for purchase hereunder at any given time may be less than the amount stated on the face hereof.**

<sup>1</sup> Six (6) months from the Effective Date of Registration Statement.

<sup>2</sup> Five (5) years from the Effective Date of Registration Statement.

Annex V-1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Exercise Price. The exercise price per ADS under this Warrant shall be $[ ] (which is 110% of the offering price per ADS in the offering contemplated by the Agreement) (the "Exercise Price").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Cashless Exercise. Notwithstanding anything contained herein to the contrary, provided that the Trading Price, as defined below, is equal to or greater than the Exercise Price, on the Termination Date, this Warrant may also be exercised, in whole or in part, at such time by means of a "cashless exercise" in which the Holder shall be entitled to receive a number of Warrant ADSs equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of "regular trading hours" (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Ordinary Shares on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder's execution of the applicable Notice of Exercise if such Notice of Exercise is executed during "regular trading hours" on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of "regular trading hours" on a Trading Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to Section 2(a) hereof after the close of "regular trading hours" on such Trading Day (such applicable price for (a), the "Trading Price");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) = the Exercise Price of this Warrant, as adjusted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(X) = the number of Warrant ADSs that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

If Warrant ADSs are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant ADSs shall take on the characteristics of the Warrants being exercised and the holding period of the Warrants being exercised may be tacked on to the holding period of the Warrant ADSs. The Company agrees not to take any position contrary to this Section 2(c).

"Bid Price" means, for any date, the price determined by the first of the following clauses that applies: (a) if the ADSs are then listed or quoted on a Trading Market, the bid price of the ADSs for the time in question (or the nearest preceding date) on the Trading Market on which the ADSs then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the ADSs are traded on OTCQB or OTCQX, the volume weighted average sales price of the ADSs for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the ADSs are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the ADSs are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per ADS so reported, or (d) in all other cases, the fair market value of an ADS as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

Annex V-2

"VWAP" means, for any date, the price determined by the first of the following clauses that applies: (a) if the ADSs are then listed or quoted on a Trading Market, the daily volume weighted average price of the ADSs for such date (or the nearest preceding date) on the Trading Market on which the ADSs are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if the ADSs are traded on OTCQB or OTCQX , the volume weighted average sales price of the ADSs for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the ADSs are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the ADSs are then reported in the "Pink Sheets" published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per ADS so reported, or (d) in all other cases, the fair market value of an ADS as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

Provided that the Trading Price is equal to or greater than the Exercise Price, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Mechanics of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Delivery of Warrant ADSs Upon Exercise</u>. The Company shall cause the Warrant ADSs purchased hereunder to be transmitted by Deutsche Bank Trust Company Americas (the "Depositary") to the Holder either by (A) crediting the account of the Holder's or its designee's balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system ("DWAC") if the Company is then a participant in such system and there is an effective registration statement permitting the issuance of the Warrant ADSs to or resale of the Warrant ADSs by Holder, or (B) if there is no effective registration statement and the Warrant is exercised via cashless exercise at a time when such Warrant ADSs would be eligible for resale under Rule 144 by a non-affiliate of the Company, such Warrant ADSs are delivered to Holder's broker, and the Company receives a statement from Holder's broker that it has received instructions to sell the Warrant ADSs or that it would take responsibility that the sales of the Warrant ADSs will only be made if the Warrant ADSs are eligible to be sold under Rule 144, and otherwise by physical delivery of a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of Warrant ADSs to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earliest of (i) two (2) Trading Days after the delivery to the Company of the Notice of Exercise, (ii) one (1) Trading Day after delivery of the aggregate Exercise Price to the Company and (iii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the "Warrant ADS Delivery Date"). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant ADSs with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant ADSs, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant ADSs subject to a Notice of Exercise by the Warrant ADS Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant ADSs subject to such exercise (based on the VWAP of the ADSs on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant ADS Delivery Date until such Warrant ADSs are delivered or Holder rescinds such exercise. The Company agrees to use commercially reasonable efforts to maintain a transfer agent or Depositary that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used herein, "Standard Settlement Period" means the standard settlement period, expressed in a number of Trading Days, on the Company's primary Trading Market with respect to the ADSs as in effect on the date of delivery of the Notice of Exercise.

Annex V-3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Delivery of New Warrants Upon Exercise</u>. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant ADSs, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant ADSs called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Rescission Rights</u>. If the Company fails to cause the Depositary to transmit to the Holder the Warrant ADSs pursuant to Section 2(d)(i) by the Warrant ADS Delivery Date, then the Holder will have the right to rescind such exercise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Compensation for Buy-In on Failure to Timely Deliver Warrant ADSs Upon Exercise</u>. In addition to any other rights available to the Holder, if the Company fails to cause the Depositary to transmit to the Holder the Warrant ADSs in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise on or before the Warrant ADS Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder's brokerage firm otherwise purchases, ADSs to deliver in satisfaction of a sale by the Holder of the Warrant ADSs which the Holder anticipated receiving upon such exercise (a "Buy-In"), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder's total purchase price (including brokerage commissions, if any) for the ADSs so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant ADSs that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant ADSs for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of ADSs that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases ADSs having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of ADSs with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit a Holder's right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company's failure to timely deliver ADSs upon exercise of the Warrant as required pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>No Fractional ADSs or Scrip</u>. No fractional ADSs or scrip representing fractional ADSs shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round down to the next whole share.

Annex V-4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. <u>Charges, Taxes and Expenses</u>. Issuance of Warrant ADSs shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such Warrant ADSs, all of which transfer taxes and expenses shall be paid by the Company, and such Warrant ADSs shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event that Warrant ADSs are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Depositary fees required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant ADSs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. <u>Closing of Books</u>. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Holder's Exercise Limitations</u>. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder's Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder's Affiliates (such Persons, "Attribution Parties")), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of ADSs or Ordinary Shares beneficially owned by the Holder and its Affiliates and Attribution Parties shall include the number of ADSs and underlying Ordinary Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of ADSs which would be issuable upon (i) exercise of the remaining, non-exercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or non-converted portion of any other securities of the Company (including, without limitation, any other Ordinary Share equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder's determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding ADSs, a Holder may rely on the number of outstanding ADSs as reflected in (A) the Company's most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Depositary setting forth the number of ADSs outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of ADSs then outstanding. In any case, the number of outstanding ADSs shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date as of which such number of outstanding ADSs was reported. The "Beneficial Ownership Limitation" shall be 4.99% of the number of ADSs outstanding immediately after giving effect to the issuance of ADSs issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of ADSs outstanding immediately after giving effect to the issuance of ADSs upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

Annex V-5

Section 3. <u>Certain Adjustments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Stock Dividends and Splits</u>. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on ADSs or any other equity or equity equivalent securities payable in ADSs or Ordinary Shares (which, for avoidance of doubt, shall not include any ADSs or Ordinary Shares issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding ADSs or Ordinary Shares into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding ADSs or Ordinary Shares into a smaller number of shares, or (iv) issues by reclassification of Ordinary Shares, any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Ordinary Shares (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of ADSs or Ordinary Shares outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Subsequent Rights Offerings</u>. In addition to any adjustments pursuant to Section 3(a) above, if at any time, the Company grants, issues or sells any Ordinary Share equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of ADSs or Ordinary Shares (the "Purchase Rights"), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of ADSs or Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of ADSs or Ordinary Shares are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder's right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such ADSs or Ordinary Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

Annex V-6

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Pro Rata Distributions</u>. During such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of Ordinary Shares or ADSs, by way of return of capital or otherwise, other than cash (including, without limitation, any distribution of stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a "Distribution"), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of ADSs or Ordinary Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of ADSs or Ordinary Shares are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder's right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any ADSs or Ordinary Shares as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Fundamental Transaction</u>, If. at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person (other than solely with respect to a name change of the Company), (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which holders of ADSs or Ordinary Shares are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding ADSs or Ordinary Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the ADSs or Ordinary Shares or any compulsory share exchange pursuant to which the ADSs or Ordinary Shares are effectively converted into or exchanged for other securities, cash or property (other than a reclassification in which the Company's shareholders remain the same), or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding ADSs or Ordinary Shares (not including any ADSs or Ordinary Shares held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a "Fundamental Transaction"), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant ADS that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of ADSs or Ordinary Shares of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the "Alternate Consideration") receivable as a result of such Fundamental Transaction by a holder of the number of ADSs or Ordinary Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one ADS or one Ordinary Share in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of ADSs are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. Notwithstanding anything to the contrary, in the event of a Fundamental Transaction, the Company or any Successor Entity (as defined below) shall, at the Holder's option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction (or, if later, the date of the public announcement of the applicable Fundamental Transaction), purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction; provided, however, if the Fundamental Transaction is not within the Company's control, including not approved by the Company's Board of Directors or the consideration is not in all stock of the Successor Entity, Holder shall only be entitled to receive from the Company or any Successor Entity, as of the date of consummation of such Fundamental Transaction, the same type or form of consideration (and in the same proportion), at the Black Scholes Value (as defined below) of the unexercised portion of this Warrant, that is being offered and paid to the holders of ADSs or Ordinary Shares of the Company in connection with the Fundamental Transaction, whether that consideration be in the form of cash, stock or any combination thereof, or whether the holders of ADSs or Ordinary Shares are given the choice to receive from among alternative forms of consideration in connection with the Fundamental Transaction. "Black Scholes Value" means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the "OV" function on Bloomberg, L.P. ("Bloomberg") determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the Trading Day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the greater of (i) the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (ii) the greater of (x) the last VWAP immediately prior to the public announcement of such Fundamental Transaction and (y) the last VWAP immediately prior to the consummation of such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date. The payment of the Black Scholes Value will be made by wire transfer of immediately available funds within five Business Days of the Holder's election (or, if later, on the effective date of the Fundamental Transaction). The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the "Successor Entity") to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the Ordinary Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the Ordinary Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the "Company" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

Annex V-7

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Calculations</u>. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of ADSs or Ordinary Shares deemed to be issued and outstanding as of a given date shall be the sum of the number of ADSs or Ordinary Shares (excluding treasury shares, if any) issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Notice to Holder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Adjustment to Exercise Price</u>. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant ADSs and setting forth a brief statement of the facts requiring such adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Notice to Allow Exercise by Holder</u>. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Ordinary Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Ordinary Shares, (C) the Company shall authorize the granting to all holders of the Ordinary Shares rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Ordinary Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Ordinary Shares are converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Ordinary Shares of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Ordinary Shares of record shall be entitled to exchange their Ordinary Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Report on Form 6-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

Annex V-8

Section 4. <u>Transfer of Warrant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Transferability</u>. Pursuant to FINRA Rule 5110(g)(l) and the Agreement, neither this Warrant nor any Warrant ADSs issued upon exercise of this Warrant shall be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the securities by any person for a period of six (6) months immediately following the date of effectiveness or commencement of sales of the offering pursuant to which this Warrant is being issued, except the transfer of any security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. by operation of law or by reason of reorganization of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. to any FINRA member firm participating in the offering and the officers and partners thereof, if all securities so transferred remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. if the aggregate amount of securities of the Company held by the Holder or related person do not exceed 1% of the securities being offered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. that is beneficially owned on a pro-rata basis by all equity owners of an investment fund, provided that no participating member manages or otherwise directs investments by the fund, and participating members in the aggregate do not own more than 10% of the equity in the fund; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. the exercise or conversion of any security, if all securities received remain subject to the lock-up restriction in this Section 4(a) for the remainder of the time period.

Subject to the foregoing restrictions, compliance with any applicable securities laws, and the conditions set forth in Section 4(d) hereof, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant ADSs without having a new Warrant issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>New Warrants</u>. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Original Issuance Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant ADSs issuable pursuant thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Warrant Register</u>. The Company shall maintain a register for this Warrant, upon records to be maintained by the Company for that purpose (the "Warrant Register"), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

Annex V-9

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Representation by the Holder</u>. The Holder, by the acceptance hereof, represents and warrants that it is acquiring this Warrant and, upon any exercise hereof, will acquire the Warrant ADSs issuable upon such exercise, for its own account and not with a view to or for distributing or reselling such Warrant or Warrant ADSs or any part thereof in violation of the Securities Act or any applicable state securities law, except pursuant to sales registered or exempted under the Securities Act.

Section 5. <u>Registration Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>Demand Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Grant of Right</u>. Unless all of the Registrable Securities (defined as below) are included in an effective registration statement with a current prospectus or are not eligible for resale pursuant to Rule 144 of the Securities Act, the Company, upon written demand ("Initial Demand Notice") of the Holder(s) of at least 51% of the Warrant ADSs ("Majority Holders"), agrees to register on two occasions only (each, a "Demand Registration") under the Securities Act all or any portion of the Warrant ADSs requested by the Majority Holders in the Initial Demand Notice (the "Registrable Securities"). On such occasion, the Company will file a registration statement covering the Registrable Securities within 60 days after receipt of the Initial Demand Notice and use its commercially reasonable efforts to have such registration statement declared effective as soon as possible thereafter. A demand for registration may be made at any time during which the Majority Holders hold any of the Warrant ADSs. Notwithstanding the foregoing, the Company shall not be required to effect a registration pursuant to this Section 5 a): (A) with respect to securities that are not Registrable Securities; (B) during any Scheduled Black-Out Period; (C) if the aggregate offering price of the Registrable Securities to be offered is less than $250,000, unless the Registrable Securities to be offered constitute all of the then-outstanding Registrable Securities; or (D) within 24 months after the effective date of a prior registration in respect of the ADSs or Ordinary Shares, including a Demand Registration (or, in the event that Holders were prevented from including any Registrable Securities requested to be included in a Piggyback Registration pursuant to Section 5(b), within 90 days after the effective date of such prior registration in respect of the ADSs or Ordinary Shares. For purposes of this Agreement, a "Scheduled Black-Out Period" shall means the periods from and including the day that is ten days prior to the last day of a fiscal quarter of the Company to and including the day that is two days after the day on which the Company publicly releases its earnings for such fiscal quarter. The Initial Demand Notice shall specify the number of shares of Registrable Securities proposed to be sold and the intended method(s) of distribution thereof. The Company will notify all holders of the Warrant ADSs of the demand within ten days from the date of the receipt of any such Initial Demand Notice. Each holder of the Warrant ADSs who wishes to include all or a portion of such holder's Warrant ADSs in the Demand Registration (each such holder including shares of Registrable Securities in such registration, a "Demanding Holder") shall so notify the Company within 15 days after the receipt by the holder of the notice from the Company. Upon any such request, the Demanding Holders shall be entitled to have their Warrant ADSs included in the Demand Registration. The term of the Demand Registration shall not be more than five (5) years from the Effective Date. The Representative shall not demand the registration rights provided in Section 5(a) provided that the Warrant and the Warrant ADSs issuable upon the exercise of the Warrant have been registered with the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Effective Registration</u>. A registration will not count as a Demand Registration until the registration statement filed with the Commission with respect to such Demand Registration has been declared effective and the Company has complied with all of its obligations under this Warrant with respect thereto.

Annex V-10

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Terms.</u> In connection with the first Demand Registration, the Company shall bear all fees and expenses attendant to registering the Registrable Securities, including the reasonable expenses of one legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In connection with the second Demand Registration, the Holders shall bear all fees and expenses attendant to registering the Registrable Securities including the reasonable expenses of the Company's legal counsel. The Company agrees to qualify or register the Registrable Securities in such states as are reasonably requested by the Majority Holder(s); provided, however, that in no event shall the Company be required to register the Registrable Securities in a state in which such registration would cause (i) the Company to be obligated to qualify to do business in such state, or would subject the Company to taxation as a foreign corporation doing business in such jurisdiction or (ii) the principal shareholders of the Company to be obligated to escrow their shares of Ordinary Shares of the Company. The Company shall cause any registration statement filed pursuant to the demand rights granted under Section 5(a)(iii) to remain effective until all Registrable Securities are sold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Deferred Filing</u>. Notwithstanding the foregoing, if the Board of Directors of the Company determines in its good faith judgment that the filing of a registration statement in connection with a Demand Registration (i) would be seriously detrimental to the Company in that such registration would interfere with a material corporate transaction or (ii) would require the disclosure of material non-public information concerning the Company that at the time is not, in the good faith judgment of the Board of Directors, in the best interests of the Company to disclose and is not, in the opinion of the Company's counsel, otherwise required to be disclosed, then the Company shall have the right to defer such filing for the period during which such registration would be seriously detrimental under clause (i) or would require such disclosure under clause (ii); provided, however, that (x) the Company may not defer such filing for a period of more than one hundred and twenty (120) days after receipt of any demand by the Holders and (y) the Company shall not exercise its right to defer a Demand Registration more than once in any 12-month period. The Company shall give written notice of its determination to the Holders to defer the filing and of the fact that the purpose for such deferral no longer exists, in each case, promptly after the occurrence thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. <u>No Cash Settlement Option</u>. The Company is only required to use its commercially reasonable efforts to cause a registration statement covering issuance of the Registrable Securities to be declared effective, and once effective, only to use its commercially reasonable efforts to maintain the effectiveness of the registration statement. The Company will not be obligated to deliver securities, and there are no contractual penalties for failure to deliver securities, if a registration statement is not effective at the time of exercise. Additionally, in no event is the Company obligated to settle any Warrants, in whole or in part, for cash in the event it is unable to register the Registrable Securities.

Annex V-11

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Piggy-Back Registration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Piggy-Back Rights</u>. If at any time during the five (5) year period after the Effective Date, the registration statement filed pursuant to this Section 5(a) is no longer effective and the Registrable Securities are not eligible for resale pursuant to Rule 144 of the Securities Act, the Company proposes to file a registration statement under the Securities Act with respect to an offering of equity securities, or securities or other obligations exercisable or exchangeable for, or convertible into, equity securities, by the Company for its own account or for shareholders of the Company for their account (or by the Company and by shareholders of the Company including, without limitation, pursuant to Section 5(a)), other than a registration statement (i) filed in connection with any employee share option or other benefit plan, (ii) for an exchange offer or offering of securities solely to the Company's existing shareholders, or (iii) for a dividend reinvestment plan, then the Company shall (x) give written notice of such proposed filing to the holders of Registrable Securities as soon as practicable but in no event less than ten days before the anticipated filing date, which notice shall describe the amount and type of securities to be included in such offering, the intended method(s) of distribution, and the name of the proposed managing underwriter or underwriters, if any, of the offering, and (y) offer to the holders of Registrable Securities in such notice the opportunity to register the sale of such number of Warrant ADSs held by such holder (the "Piggy-Back Registrable Securities"), as such holders may request in writing within five days following receipt of such notice (a "Piggy-Back Registration"). The Company shall cause such Piggy-Back Registrable Securities to be included in such registration and shall use its commercially reasonable efforts to cause the managing underwriter or underwriters of a proposed underwritten offering to permit the Piggy-Back Registrable Securities requested to be included in a Piggy-Back Registration on the same terms and conditions as any similar securities of the Company and to pennit the sale or other disposition of such Piggy-Back Registrable Securities in accordance with the intended method(s) of distribution thereof. All holders of Piggy-Back Registrable Securities proposing to distribute their securities through a Piggy-Back Registration that involves an underwriter or underwriters shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such Piggy-Back Registration. The Representative shall not demand the registration rights provided in Section 5(b) provided that the Warrant and the Warrant ADSs issuable upon the exercise of the Warrant have been registered with the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>Reduction of Offering</u>. If the managing underwriter or underwriters for a Piggy-Back Registration that is to be an underwritten offering advises the Company and the holders of Registrable Securities in writing that the dollar amount or number of ADSs or Ordinary Shares which the Company desires to sell, taken together with ADSs or Ordinary Shares, if any, as to which registration has been requested pursuant to written contractual arrangements with persons other than the holders of Piggy-Back Registrable Securities hereunder, the Piggy-Back Registrable Securities as to which registration has been requested under this Section 5(b), and the ADSs or Ordinary Shares, if any, as to which registration has been requested pursuant to the written contractual piggy-back registration rights of other shareholders of the Company, exceeds the maximum dollar amount or maximum number of shares that can be sold in such offering without adversely affecting the proposed offering price, the timing, the distribution method, or the probability of success of such offering (such maximum dollar amount or maximum number of shares, as applicable, the "Maximum Number of Shares"), then the Company shall include in any such registration:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) If the registration is undertaken for the Company's account: (A) first, the ADSs or Ordinary Shares or other securities that the Company desires to sell that can be sold without exceeding the Maximum Number of Shares; and (B) second, subject to the requirements of registration rights granted by the Company prior to the date hereof, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), up to the amount of ADSs or Ordinary Shares or other securities that can be sold without exceeding the Maximum Number of Shares, on a pro rata basis, from (i) Piggy-Back Registrable Securities as to which registration has been requested and (ii) the ADSs or Ordinary Shares or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual piggy-back registration rights with such persons;

Annex V-12

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) If the registration is a Demand Registration undertaken at the demand of holders of Registrable Securities, subject to the requirements of registration rights granted by the Company prior to the date hereof, (A) first, the ADSs or Ordinary Shares or other securities for the account of the demanding persons that can be sold without exceeding the Maximum Number of Shares; (B) second, to the extent that the Maximum Number of Shares has not been reached under the foregoing clause (A), the ADSs or Ordinary Shares or other securities comprised of Piggy-Back Registrable Securities, pro rata, as to which registration has been requested pursuant to the terms hereof that can be sold without exceeding the Maximum Number of Shares; and (C) third, to the extent that the Maximum Number of Shares has not been reached under the foregoing clauses (A) and (B), the ADSs or Ordinary Shares or other securities for the account of other persons that the Company is obligated to register pursuant to written contractual arrangements with such persons, that can be sold without exceeding the Maximum Number of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Withdrawal</u>. Any holder of Piggy-Back Registrable Securities may elect to withdraw such holder's request for inclusion of such Piggy-Back Registrable Securities in any Piggy-Back Registration by giving written notice to the Company of such request to withdraw prior to the effectiveness of the registration statement. The Company (whether on its own determination or as the result of a withdrawal by persons making a demand pursuant to written contractual obligations) may withdraw a registration statement at any time prior to the effectiveness of the registration statement. Notwithstanding any such withdrawal, the Company shall pay all expenses incurred by the holders of Piggy-Back Registrable Securities in connection with such Piggy-Back Registration as provided in Section 5(b)(iv).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. <u>Terms</u>. The Company shall bear all fees and expenses attendant to registering the Piggy-Back Registrable Securities, including the expenses of one legal counsel selected by the Holders to represent them in connection with the sale of the Piggy-Back Registrable Securities but the Holders shall pay any and all underwriting commissions related to the Piggy-Back Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Piggy-Back Registrable Securities with not less than fifteen days written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each applicable registration statement filed (during the period in which the Warrant is exercisable) by the Company until such time as all of the Piggy-Back Registrable Securities have been registered and sold. The Holders of the Piggy-Back Registrable Securities shall exercise the "piggy-back" rights provided for herein by giving written notice, within ten days of the receipt of the Company's notice of its intention to file a registration statement. The Company shall cause any registration statement filed pursuant to the above "piggyback" rights to remain effective for five (5) years from the date that the Holders of the Piggy-Back Registrable Securities are first given the opportunity to sell all of such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>General Terms</u>. These additional terms shall relate to registration under Sections 5(a) above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. <u>Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) The Company shall, to the fullest extent permitted by applicable law, indemnify the Holder) s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against litigation, commenced or threatened, or any claim whatsoever whether arising out of any action between the underwriter and the Company or between the underwriter and any third party or otherwise) to which any of them may become subject under the Act, the Exchange Act or otherwise, arising from such registration statement; provided, however, that, with respect to any Holder of Registrable Securities, this indemnity shall not apply to any loss, liability, claim, damage or expense to the extent arising out of an untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the Company by such Holder expressly for use in the registration statement (or any amendment thereto), or any preliminary prospectus or the prospectus (or any amendment or supplement thereto).

Annex V-13

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company, its officers and directors and each person, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20(a) of the Exchange Act, against all loss, claim, damage, expense or liability (including all reasonable attorneys' fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement(or any amendment thereto), or any preliminary prospectus or the prospectus (or any amendment or supplement thereto).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Each indemnified party shall give prompt notice to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder, but failure to so notify an indemnifying party shall not relieve the indemnifying party from any liability it may have under this Agreement, except to the extent that the indemnifying party is prejudiced thereby. If it so elects, after receipt of such notice, an indemnifying party, jointly with any other indemnifying parties receiving such notice, may assume the defense of such action with counsel chosen by it; provided, however, that the indemnified party shall be entitled to participate in (but not control) the defense of such action with counsel chosen by it, the reasonable fees and expenses of which shall be paid by such indemnified party, unless a conflict would arise if one counsel were to represent both the indemnified party and the indemnifying party, in which case the reasonable fees and expenses of counsel to the indemnified party shall be paid by the indemnifying party or parties. In no event shall the indemnifying party or parties be liable for a settlement of an action with respect to which they have assumed the defense if such settlement is effected without the written consent of such indemnifying party, or for the reasonable fees and expenses of more than one counsel for (i) the Company, its officers, directors and controlling persons as a group, and (ii) the selling Holders and their controlling persons as a group, in each case, in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances; provided. however, that if, in the reasonable judgment of an indemnified party, a conflict of interest may exist between such indemnified party and the Company or any other of such indemnified parties with respect to such claim, the indemnifying party shall be obligated to pay the reasonable fees and expenses of such additional counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) If the indemnification provided for in or pursuant to Section 5(b)(i) is due in accordance with the terms hereof but held by a court of competent jurisdiction to be unavailable or unenforceable in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each applicable indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages, liabilities or expenses in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions which result in such losses, claims, damages, liabilities or expenses as well as any other relevant equitable considerations. The relative fault of the indemnifying party on the one hand and of the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party, and by such party's relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

Annex V-14

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. <u>[Intentionally Omitted]</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. <u>Supplemental Prospectus</u>. Each Holder agrees, that upon receipt of any notice from the Company of the happening of any event as a result of which the prospectus included in the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, such Holder will immediately discontinue disposition of Registrable Securities pursuant to the registration statement covering such Registrable Securities until such Holder's receipt of the copies of a supplemental or amended prospectus, and, if so desired by the Company, such Holder shall deliver to the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of such destruction) all copies, other than permanent file copies then in such Holder's possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. Immediately after discovering of such an event which causes the prospectus included in the registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, the Company shall prepare and file, as soon as practicable, a supplement or amendment to the prospectus so that such registration statement does not include any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing and distribute such supplement or amendment to each Holder.

Section 6. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) <u>No Rights as Stockholder Until Exercise</u>. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(1), except as expressly set forth in Section 3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) <u>Loss, Theft, Destruction or Mutilation of Warrant</u>. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant ADSs, and in case of loss, theft or destraction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

Annex V-15

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) <u>Authorized Shares</u>.

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant ADSs above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable Warrant ADSs upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant ADSs for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) <u>Jurisdiction</u>. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f) <u>Restrictions</u>. The Holder acknowledges that the Warrant ADSs acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g) <u>Non-waiver and Expenses</u>. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision of this Warrant or the Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys' fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

Annex V-16

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h) <u>Notices</u>. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) <u>Limitation of Liability</u>. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant ADSs, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Ordinary Shares or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j) <u>Remedies</u>. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k) <u>Successors and Assigns</u>. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant ADSs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l) <u>Amendment</u>. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m) <u>Severability</u>. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;n) <u>Headings</u>. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*

 

*(Signature Page Follows)*

Annex V-17

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

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| |
|:---|
| **CARBON ZERO TECHNOLOGY INTERNATIONAL INC.** |
| By: |
| Name: |
| Title: |

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**NOTICE OF EXERCISE**

TO: CARBON ZERO TECHNOLOGY INTERNATIONAL INC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The undersigned hereby elects to purchase Warrant ADSs of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Payment shall take the form of (check applicable box):

☐ in lawful money of the United States; or

☐ if permitted the cancellation of such number of Warrant ADSs as is necessary, in accordance with the formula set forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant ADSs purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Please issue said Warrant ADSs in the name of the undersigned or in such other name as is specified below:

____________________

The Warrant ADSs shall be delivered to the following DWAC Account Number:

____________________

____________________

____________________

[SIGNATURE OF HOLDER]

Name of Investing Entity:____________________________________________________

*Signature of Authorized Signatory of Investing Entity:*________________________________

Name of Authorized Signatory:________________________________________________

Title of Authorized Signatory:_________________________________________________

Date:____________________________________________________________________

Annex V-18

EXHIBIT B

**ASSIGNMENT FORM**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase ADSs.)

FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

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| | |
|:---|:---|
| Name: | |
| Address: | (Please Print) |
| Phone Number: | |
| Email Address: | (Please Print) |
| Dated: ________, ____ |  |
| Holder's Signature: | |
| Holder's Address: | |

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Annex V-19

<u>Warrant Exercise Log</u>

Date Number of Warrant ADSs Available to be Exercised Number of Warrant ADSs Exercised Number of Warrant ADSs Remaining to be Exercised <br>

Annex V-20

CARBON ZERO TECHNOLOGY INTERNATIONAL INC.

WARRANT DATED __________, 2026

WARRANT NO. [ ]

FORM OF ASSIGNMENT

[To be completed and signed only upon transfer of Warrant]

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto ________________________________ the right represented by the above-captioned Warrant to purchase ____________ American Depositary Shares and appoints ________________ attorney to transfer said right on the books of the Company with full power of substitution in the premises.

Dated: _______________, ____

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| |
|:---|
| (Signature must conform in all respects to name of holder as specified on the face of the Warrant) |
| Address of Transferee |
| In the presence of: |

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Annex V-21

**ANNEX VI**

FORM OF PRESS RELEASE

CARBON ZERO TECHNOLOGY INTERNATIONAL INC.

__________, 2026

Carbon Zero Technologies International Inc., a Cayman Islands exempted company (the "Company") announced today that Ninth Eternity Securities LLC, the sole book-running manager in the Company's recent public sale of _____ Class A ordinary shares ("Ordinary Shares") in the form of ___American Depositary Shares, are [waiving][releasing] a lock-up restriction with respect to ____ Ordinary Shares held by [certain officers or directors] [an officer or director] of the Company. The [waiver][release] will take effect on ____, 2026 and the Ordinary Shares may be sold on or after such date.

**This press release is not an offer for sale of the securities in the United States or in any other jurisdiction where such offer is prohibited, and such securities may not be offered or sold in the United States absent registration or an exemption from registration under the United States Securities Act of 1933, as amended.**

[to be attached]

Annex VI-1

## Exhibit 4.4

**Exhibit 4.4**

CARBON ZERO TECHNOLOGIES INTERNATIONAL INC.

AND

THE BANK OF NEW YORK MELLON

As Depositary

AND

OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES

Deposit Agreement

__________, 2026

**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| ARTICLE 1. | DEFINITIONS | 1 |
| &nbsp;&nbsp;&nbsp;SECTION 1.1. | American Depositary Shares. | 1 |
| &nbsp;&nbsp;&nbsp;SECTION 1.2. | Commission. | 2 |
| &nbsp;&nbsp;&nbsp;SECTION 1.3. | Company. | 2 |
| &nbsp;&nbsp;&nbsp;SECTION 1.4. | Custodian. | 2 |
| &nbsp;&nbsp;&nbsp;SECTION 1.5. | Deliver; Surrender. | 2 |
| &nbsp;&nbsp;&nbsp;SECTION 1.6. | Deposit Agreement. | 3 |
| &nbsp;&nbsp;&nbsp;SECTION 1.7. | Depositary; Depositary's Office. | 3 |
| &nbsp;&nbsp;&nbsp;SECTION 1.8. | Deposited Securities. | 3 |
| &nbsp;&nbsp;&nbsp;SECTION 1.9. | Disseminate. | 3 |
| &nbsp;&nbsp;&nbsp;SECTION 1.10. | Dollars. | 3 |
| &nbsp;&nbsp;&nbsp;SECTION 1.11. | DTC. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.12. | Foreign Registrar. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.13. | Holder. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.14. | Owner. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.15. | Receipts. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.16. | Registrar. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.17. | Replacement. | 4 |
| &nbsp;&nbsp;&nbsp;SECTION 1.18. | Restricted Securities. | 5 |
| &nbsp;&nbsp;&nbsp;SECTION 1.19. | Securities Act of 1933. | 5 |
| &nbsp;&nbsp;&nbsp;SECTION 1.20. | Shares. | 5 |
| &nbsp;&nbsp;&nbsp;SECTION 1.21. | SWIFT. | 5 |
| &nbsp;&nbsp;&nbsp;SECTION 1.22. | Termination Option Event. | 5 |
| ARTICLE 2. | FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY, TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES | 6 |
| &nbsp;&nbsp;&nbsp;SECTION 2.1. | Form of Receipts; Registration and Transferability of American Depositary Shares. | 6 |
| &nbsp;&nbsp;&nbsp;SECTION 2.2. | Deposit of Shares. | 7 |
| &nbsp;&nbsp;&nbsp;SECTION 2.3. | Delivery of American Depositary Shares. | 8 |
| &nbsp;&nbsp;&nbsp;SECTION 2.4. | Registration of Transfer of American Depositary Shares; Combination and Split-up of Receipts; Interchange of Certificated and Uncertificated American Depositary Shares. | 9 |
| &nbsp;&nbsp;&nbsp;SECTION 2.5. | Surrender of American Depositary Shares and Withdrawal of Deposited Securities. | 10 |
| &nbsp;&nbsp;&nbsp;SECTION 2.6. | Limitations on Delivery, Registration of Transfer and Surrender of American Depositary Shares. | 11 |
| &nbsp;&nbsp;&nbsp;SECTION 2.7. | Lost Receipts, etc. | 11 |

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i

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; SECTION 2.8. | Cancellation and Destruction of Surrendered Receipts. | 12 |
| &nbsp;&nbsp;&nbsp; SECTION 2.9. | DTC Direct Registration System and Profile Modification System. | 12 |
| ARTICLE 3. | CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES | 13 |
| &nbsp;&nbsp;&nbsp; SECTION 3.1. | Filing Proofs, Certificates and Other Information. | 13 |
| &nbsp;&nbsp;&nbsp; SECTION 3.2. | Liability of Owner for Taxes. | 13 |
| &nbsp;&nbsp;&nbsp; SECTION 3.3. | Warranties on Deposit of Shares. | 14 |
| &nbsp;&nbsp;&nbsp;SECTION 3.4. | Disclosure of Interests. | 14 |
| ARTICLE 4. | THE DEPOSITED SECURITIES | 14 |
| &nbsp;&nbsp;&nbsp; SECTION 4.1. | Cash Distributions. | 14 |
| &nbsp;&nbsp;&nbsp;SECTION 4.2. | Distributions Other Than Cash, Shares or Rights. | 15 |
| &nbsp;&nbsp;&nbsp;SECTION 4.3. | Distributions in Shares. | 16 |
| &nbsp;&nbsp;&nbsp;SECTION 4.4. | Rights. | 17 |
| &nbsp;&nbsp;&nbsp;SECTION 4.5. | Conversion of Foreign Currency. | 18 |
| &nbsp;&nbsp;&nbsp;SECTION 4.6. | Fixing of Record Date. | 20 |
| &nbsp;&nbsp;&nbsp;SECTION 4.7. | Voting of Deposited Shares. | 20 |
| &nbsp;&nbsp;&nbsp;SECTION 4.8. | Tender and Exchange Offers; Redemption, Replacement or Cancellation of Deposited Securities. | 21 |
| &nbsp;&nbsp;&nbsp;SECTION 4.9. | Reports. | 23 |
| &nbsp;&nbsp;&nbsp;SECTION 4.10. | Lists of Owners. | 23 |
| &nbsp;&nbsp;&nbsp;SECTION 4.11. | Withholding. | 23 |
| ARTICLE 5. THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY | ARTICLE 5. THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY | 24 |
| &nbsp;&nbsp;&nbsp;SECTION 5.1. | Maintenance of Office and Register by the Depositary. | 24 |
| &nbsp;&nbsp;&nbsp;SECTION 5.2. | Prevention or Delay of Performance by the Company or the Depositary. | 24 |
| &nbsp;&nbsp;&nbsp;SECTION 5.3. | Obligations of the Depositary and the Company. | 25 |
| &nbsp;&nbsp;&nbsp;SECTION 5.4. | Resignation and Removal of the Depositary. | 26 |
| &nbsp;&nbsp;&nbsp;SECTION 5.5. | The Custodians. | 27 |
| &nbsp;&nbsp;&nbsp;SECTION 5.6. | Notices and Reports. | 27 |
| &nbsp;&nbsp;&nbsp;SECTION 5.7. | Distribution of Additional Shares, Rights, etc. | 28 |
| &nbsp;&nbsp;&nbsp;SECTION 5.8. | Indemnification. | 29 |
| &nbsp;&nbsp;&nbsp;SECTION 5.9. | Charges of Depositary. | 29 |
| &nbsp;&nbsp;&nbsp;SECTION 5.10. | Retention of Depositary Documents. | 30 |
| &nbsp;&nbsp;&nbsp;SECTION 5.11. | Exclusivity. | 30 |
| &nbsp;&nbsp;&nbsp;SECTION 5.12. | Information for Regulatory Compliance. | 31 |
| ARTICLE 6. | AMENDMENT AND TERMINATION | 31 |
| &nbsp;&nbsp;&nbsp;SECTION 6.1. | Amendment. | 31 |
| &nbsp;&nbsp;&nbsp;SECTION 6.2. | Termination. | 31 |
| ARTICLE 7. | MISCELLANEOUS | 32 |
| &nbsp;&nbsp;&nbsp;SECTION 7.1. | Counterparts; Signatures; Delivery; Electronic Records. | 32 |
| &nbsp;&nbsp;&nbsp;SECTION 7.2. | No Third Party Beneficiaries. | 33 |
| &nbsp;&nbsp;&nbsp;SECTION 7.3. | Severability. | 33 |
| &nbsp;&nbsp;&nbsp;SECTION 7.4. | Owners and Holders as Parties; Binding Effect. | 33 |
| &nbsp;&nbsp;&nbsp;SECTION 7.5. | Notices. | 33 |
| &nbsp;&nbsp;&nbsp;SECTION 7.6. | Arbitration; Settlement of Disputes. | 34 |
| &nbsp;&nbsp;&nbsp;SECTION 7.7. | Appointment of Agent for Service of Process; Submission to Jurisdiction; Jury Trial Waiver. | 35 |
| &nbsp;&nbsp;&nbsp;SECTION 7.8. | Waiver of Immunities. | 36 |
| &nbsp;&nbsp;&nbsp;SECTION 7.9. | Governing Law. | 36 |

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ii

DEPOSIT AGREEMENT

DEPOSIT AGREEMENT dated as of __________, 2026 among CARBON ZERO TECHNOLOGIES INTERNATIONAL INC., a company incorporated under the laws of the Cayman Islands (herein called the Company), THE BANK OF NEW YORK MELLON, a New York banking corporation (herein called the Depositary), and all Owners and Holders (each as hereinafter defined) from time to time of American Depositary Shares issued hereunder.

W I T N E S S E T H:

WHEREAS, the Company desires to provide, as set forth in this Deposit Agreement, for the deposit of Shares (as hereinafter defined) of the Company from time to time with the Depositary or with the Custodian (as hereinafter defined) under this Deposit Agreement, for the creation of American Depositary Shares representing the Shares so deposited and for the execution and delivery of American Depositary Receipts evidencing the American Depositary Shares; and

WHEREAS, the American Depositary Receipts are to be substantially in the form of Exhibit A annexed to this Deposit Agreement, with appropriate insertions, modifications and omissions, as set forth in this Deposit Agreement;

NOW, THEREFORE, in consideration of the premises, it is agreed by and between the parties hereto as follows:

ARTICLE 1. DEFINITIONS

The following definitions shall for all purposes, unless otherwise clearly indicated, apply to the respective terms used in this Deposit Agreement:

SECTION 1.1. <u>American Depositary Shares.</u>

The term "<u>American Depositary Shares</u>" shall mean the securities created under this Deposit Agreement representing rights with respect to the Deposited Securities. American Depositary Shares may be certificated securities evidenced by Receipts or uncertificated securities. The form of Receipt annexed as Exhibit A to this Deposit Agreement shall be the prospectus required under the Securities Act of 1933 for sales of both certificated and uncertificated American Depositary Shares. Except for those provisions of this Deposit Agreement that refer specifically to Receipts, all the provisions of this Deposit Agreement shall apply to both certificated and uncertificated American Depositary Shares.

Each American Depositary Share shall represent the number of Shares specified in Exhibit A to this Deposit Agreement, <u>except that</u>, if there is a distribution upon Deposited Securities covered by Section 4.3, a change in Deposited Securities covered by Section 4.8 with respect to which additional American Depositary Shares are not delivered or a sale of Deposited Securities under Section 3.2 or 4.8, each American Depositary Share shall thereafter represent the amount of Shares or other Deposited Securities that are then on deposit per American Depositary Share after giving effect to that distribution, change or sale.

SECTION 1.2. <u>Commission.</u>

The term "<u>Commission</u>" shall mean the Securities and Exchange Commission of the United States or any successor governmental agency in the United States.

SECTION 1.3. <u>Company.</u>

The term "<u>Company</u>" shall mean Carbon Zero Technologies International Inc., a company incorporated under the laws of the Cayman Islands, and its successors.

SECTION 1.4. <u>Custodian.</u>

The term "<u>Custodian</u>" shall mean The Hongkong and Shanghai Banking Corporation Limited, as custodian for the Depositary in Hong Kong for the purposes of this Deposit Agreement, and any other firm or corporation the Depositary appoints under Section 5.5 as a substitute or additional custodian under this Deposit Agreement, and shall also mean all of them collectively.

SECTION 1.5. <u>Deliver; Surrender.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The term "<u>deliver</u>", or its noun form, when used with respect to Shares or other Deposited Securities, shall mean (i) book-entry transfer of those Shares or other Deposited Securities to an account maintained by an institution authorized under applicable law to effect transfers of such securities designated by the person entitled to that delivery or (ii) physical transfer of certificates evidencing those Shares or other Deposited Securities registered in the name of, or duly endorsed or accompanied by proper instruments of transfer to, the person entitled to that delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "<u>deliver</u>", or its noun form, when used with respect to American Depositary Shares, shall mean (i) registration of those American Depositary Shares in the name of DTC or its nominee and book-entry transfer of those American Depositary Shares to an account at DTC designated by the person entitled to that delivery, (ii) registration of those American Depositary Shares not evidenced by a Receipt on the books of the Depositary in the name requested by the person entitled to that delivery and mailing to that person of a statement confirming that registration or (iii) if requested by the person entitled to that delivery, execution and delivery at the Depositary's Office to the person entitled to that delivery of one or more Receipts evidencing those American Depositary Shares registered in the name requested by that person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "<u>surrender</u>", when used with respect to American Depositary Shares, shall mean (i) one or more book-entry transfers of American Depositary Shares to the DTC account of the Depositary, (ii) delivery to the Depositary at its Office of an instruction to surrender American Depositary Shares not evidenced by a Receipt or (iii) surrender to the Depositary at its Office of one or more Receipts evidencing American Depositary Shares.

SECTION 1.6. <u>Deposit Agreement.</u>

The term "<u>Deposit Agreement</u>" shall mean this Deposit Agreement, as it may be amended from time to time in accordance with the provisions of this Deposit Agreement.

SECTION 1.7. <u>Depositary; Depositary's Office.</u>

The term "<u>Depositary</u>" shall mean The Bank of New York Mellon, a New York banking corporation, and any successor as depositary under this Deposit Agreement. The term "<u>Office</u>", when used with respect to the Depositary, shall mean the office at which its depositary receipts business is administered, which, at the date of this Deposit Agreement, is located at 240 Greenwich Street, New York, New York 10286.

SECTION 1.8. <u>Deposited Securities.</u>

The term "<u>Deposited Securities</u>" as of any time shall mean Shares at such time deposited or deemed to be deposited under this Deposit Agreement, including without limitation, Shares that have not been successfully delivered upon surrender of American Depositary Shares, and any and all other securities, property and cash received by the Depositary or the Custodian in respect of Deposited Securities and at that time held under this Deposit Agreement.

SECTION 1.9. <u>Disseminate.</u>

The term "<u>Disseminate</u>," when referring to a notice or other information to be sent by the Depositary to Owners, shall mean (i) sending that information to Owners in paper form by mail or another means or (ii) with the consent of Owners, another procedure that has the effect of making the information available to Owners, which may include (A) sending the information by electronic mail or electronic messaging or (B) sending in paper form or by electronic mail or messaging a statement that the information is available and may be accessed by the Owner on an Internet website and that it will be sent in paper form upon request by the Owner, when that information is so available and is sent in paper form as promptly as practicable upon request.

SECTION 1.10. <u>Dollars.</u>

The term "<u>Dollars</u>" shall mean United States dollars.

SECTION 1.11. <u>DTC.</u>

The term "<u>DTC</u>" shall mean The Depository Trust Company or its successor.

SECTION 1.12. <u>Foreign Registrar.</u>

The term "<u>Foreign Registrar</u>" shall mean the entity that carries out the duties of registrar for the Shares and any other agent of the Company for the transfer and registration of Shares, including, without limitation, any securities depository for the Shares.

SECTION 1.13. <u>Holder.</u>

The term "<u>Holder</u>" shall mean any person holding a Receipt or a security entitlement or other interest in American Depositary Shares, whether for its own account or for the account of another person, but that is not the Owner of that Receipt or those American Depositary Shares.

SECTION 1.14. <u>Owner.</u>

The term "<u>Owner</u>" shall mean the person in whose name American Depositary Shares are registered on the books of the Depositary maintained for that purpose.

SECTION 1.15. <u>Receipts.</u>

The term "<u>Receipts</u>" shall mean the American Depositary Receipts issued under this Deposit Agreement evidencing certificated American Depositary Shares, as the same may be amended from time to time in accordance with the provisions of this Deposit Agreement.

SECTION 1.16. <u>Registrar.</u>

The term "<u>Registrar</u>" shall mean any corporation or other entity that is appointed by the Depositary to register American Depositary Shares and transfers of American Depositary Shares as provided in this Deposit Agreement.

SECTION 1.17. <u>Replacement.</u>

The term "<u>Replacement</u>" shall have the meaning assigned to it in Section 4.8.

SECTION 1.18. <u>Restricted Securities.</u>

The term "<u>Restricted Securities</u>" shall mean Shares that (i) are "restricted securities," as defined in Rule 144 under the Securities Act of 1933, except for Shares that could be resold in reliance on Rule 144 without any conditions, (ii) are beneficially owned by an officer, director (or person performing similar functions) or other affiliate of the Company, (iii) otherwise would require registration under the Securities Act of 1933 in connection with the public offer and sale thereof in the United States or (iv) are subject to other restrictions on sale or deposit under the laws of the Cayman Islands, a shareholder agreement or the articles of association or similar document of the Company.

SECTION 1.19. <u>Securities Act of 1933.</u>

The term "<u>Securities Act of 1933</u>" shall mean the United States Securities Act of 1933, as from time to time amended.

SECTION 1.20. <u>Shares.</u>

The term "<u>Shares</u>" shall mean Class A ordinary shares of the Company that are validly issued and outstanding, fully paid and nonassessable and that were not issued in violation of any pre-emptive or similar rights of the holders of outstanding securities of the Company; <u>provided</u>, <u>however</u>, that, if there shall occur any change in nominal or par value, a split-up or consolidation or any other reclassification or, upon the occurrence of an event described in Section 4.8, an exchange or conversion in respect of the Shares of the Company, the term "Shares" shall thereafter also mean the successor securities resulting from such change in nominal value, split-up or consolidation or such other reclassification or such exchange or conversion.

SECTION 1.21. <u>SWIFT.</u>

The term "<u>SWIFT</u>" shall mean the financial messaging network operated by the Society for Worldwide Interbank Financial Telecommunication, or its successor.

SECTION 1.22. <u>Termination Option Event.</u>

The term "<u>Termination Option Event</u>" shall mean any of the following events or conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company institutes proceedings to be adjudicated as bankrupt or insolvent, consents to the institution of bankruptcy or insolvency proceedings against it, files a petition or answer or consent seeking reorganization or relief under any applicable law in respect of bankruptcy or insolvency, consents to the filing of any petition of that kind or to the appointment of a receiver, liquidator, assignee, trustee, custodian or sequestrator (or other similar official) of it or any substantial part of its property or makes an assignment for the benefit of creditors, or if information becomes publicly available indicating that unsecured claims against the Company are not expected to be paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Shares are delisted, or the Company announces its intention to delist the Shares, from a stock exchange outside the United States, and the Company has not applied to list the Shares on any other stock exchange outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the American Depositary Shares are delisted from a stock exchange in the United States on which the American Depositary Shares were listed and, 30 days after that delisting, the American Depositary Shares have not been listed on another stock exchange in the United States, nor is there a symbol available for over-the-counter trading of the American Depositary Shares in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Depositary has received notice of facts that indicate, or otherwise has reason to believe, that the American Depositary Shares have become, or with the passage of time will become, ineligible for registration on Form F-6 under the Securities Act of 1933; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) an event or condition that is defined as a <u>Termination Option Event</u> in Section 4.1, 4.2 or 4.8.

ARTICLE 2. FORM OF RECEIPTS, DEPOSIT OF SHARES, DELIVERY, TRANSFER AND SURRENDER OF AMERICAN DEPOSITARY SHARES

SECTION 2.1. <u>Form of Receipts; Registration and Transferability of American Depositary Shares.</u>

Definitive Receipts shall be substantially in the form set forth in Exhibit A to this Deposit Agreement, with appropriate insertions, modifications and omissions, as permitted under this Deposit Agreement. No Receipt shall be entitled to any benefits under this Deposit Agreement or be valid or obligatory for any purpose, unless that Receipt has been (i) executed by the Depositary by the manual signature of a duly authorized officer of the Depositary or (ii) executed by the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized signatory of the Depositary or the Registrar or a co-registrar. The Depositary shall maintain books on which (x) each Receipt so executed and delivered as provided in this Deposit Agreement and each transfer of that Receipt and (y) all American Depositary Shares delivered as provided in this Deposit Agreement and all registrations of transfer of American Depositary Shares, shall be registered. A Receipt bearing the facsimile signature of a person that was at any time a proper officer of the Depositary shall, subject to the other provisions of this paragraph, bind the Depositary, even if that person was not a proper officer of the Depositary on the date of issuance of that Receipt.

The Receipts and statements confirming registration of American Depositary Shares may have incorporated in or attached to them such legends or recitals or modifications not inconsistent with the provisions of this Deposit Agreement as may be required by the Depositary or required to comply with any applicable law or regulations thereunder or with the rules and regulations of any securities exchange upon which American Depositary Shares may be listed or to conform with any usage with respect thereto, or to indicate any special limitations or restrictions to which any particular Receipts and American Depositary Shares are subject by reason of the date of issuance of the underlying Deposited Securities or otherwise.

American Depositary Shares evidenced by a Receipt, when the Receipt is properly endorsed or accompanied by proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York. American Depositary Shares not evidenced by Receipts shall be transferable as uncertificated registered securities under the laws of the State of New York. The Depositary, notwithstanding any notice to the contrary, may treat the Owner of American Depositary Shares as the absolute owner thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in this Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under this Deposit Agreement to any Holder of American Depositary Shares (but only to the Owner of those American Depositary Shares).

SECTION 2.2. <u>Deposit of Shares.</u>

Subject to the terms and conditions of this Deposit Agreement, Shares or evidence of rights to receive Shares may be deposited under this Deposit Agreement by delivery thereof to any Custodian, accompanied by any appropriate instruments or instructions for transfer, or endorsement, in form satisfactory to the Custodian.

As conditions of accepting Shares for deposit, the Depositary may require (i) any certification required by the Depositary or the Custodian in accordance with the provisions of this Deposit Agreement, (ii) a written order directing the Depositary to deliver to, or upon the written order of, the person or persons stated in that order American Depositary Shares representing those deposited Shares, (iii) evidence satisfactory to the Depositary that those Shares have been re-registered in the books of the Company or the Foreign Registrar in the name of the Depositary, a Custodian or a nominee of the Depositary or a Custodian, (iv) evidence satisfactory to the Depositary that any necessary approval for the transfer or deposit has been granted by any governmental body in each applicable jurisdiction and (v) an agreement or assignment, or other instrument satisfactory to the Depositary, that provides for the prompt transfer to the Custodian of any dividend, or right to subscribe for additional Shares or to receive other property, that any person in whose name those Shares are or have been recorded may thereafter receive upon or in respect of those Shares, or, in lieu thereof, such agreement of indemnity or other agreement as shall be satisfactory to the Depositary.

The Depositary shall refuse, and shall instruct the Custodian to refuse, to accept Shares for deposit if the Depositary has received a notice from the Company that the Company has restricted transfer of those Shares under the Company's articles of association or any applicable laws or that the deposit would result in any violation of the Company's articles of association or any applicable laws.

At the request and risk and expense of a person proposing to deposit Shares, and for the account of that person, the Depositary may receive certificates for Shares to be deposited, together with the other instruments specified in this Section, for the purpose of forwarding those Share certificates to the Custodian for deposit under this Deposit Agreement.

The Depositary shall instruct each Custodian that, upon each delivery to a Custodian of a certificate or certificates for Shares to be deposited under this Deposit Agreement, together with the other documents specified in this Section, that Custodian shall, as soon as transfer and recordation can be accomplished, present that certificate or those certificates to the Company or the Foreign Registrar, if applicable, for transfer and recordation of the Shares being deposited in the name of the Depositary or its nominee or that Custodian or its nominee.

Deposited Securities shall be held by the Depositary or by a Custodian for the account and to the order of the Depositary or at such other place or places as the Depositary shall determine.

SECTION 2.3. <u>Delivery of American Depositary Shares.</u>

The Depositary shall instruct each Custodian that, upon receipt by that Custodian of any deposit pursuant to Section 2.2, together with the other documents or evidence required under that Section, that Custodian shall notify the Depositary of that deposit and the person or persons to whom or upon whose written order American Depositary Shares are deliverable in respect thereof. Upon receiving a notice of a deposit from a Custodian, or upon the receipt of Shares or evidence of the right to receive Shares by the Depositary, the Depositary, subject to the terms and conditions of this Deposit Agreement, shall deliver, to or upon the order of the person or persons entitled thereto, the number of American Depositary Shares issuable in respect of that deposit, but only upon payment to the Depositary of the fees and expenses of the Depositary for the delivery of those American Depositary Shares as provided in Section 5.9, and of all taxes and governmental charges and fees payable in connection with that deposit and the transfer of the deposited Shares. <u>However</u>, the Depositary shall deliver only whole numbers of American Depositary Shares.

SECTION 2.4. <u>Registration of Transfer of American Depositary Shares; Combination and Split-up of Receipts; Interchange of Certificated and Uncertificated American Depositary Shares.</u>

The Depositary, subject to the terms and conditions of this Deposit Agreement, shall register a transfer of American Depositary Shares on its transfer books upon (i) in the case of certificated American Depositary Shares, surrender of the Receipt evidencing those American Depositary Shares, by the Owner or by a duly authorized attorney, properly endorsed or accompanied by proper instruments of transfer or (ii) in the case of uncertificated American Depositary Shares, receipt from the Owner of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.9), and, in either case, duly stamped as may be required by the laws of the State of New York and of the United States of America. Upon registration of a transfer, the Depositary shall deliver the transferred American Depositary Shares to or upon the order of the person entitled thereto.

The Depositary, subject to the terms and conditions of this Deposit Agreement, shall upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts, execute and deliver a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered.

The Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated American Depositary Shares, shall cancel the Receipt evidencing those certificated American Depositary Shares and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American Depositary Shares. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.9) from the Owner of uncertificated American Depositary Shares for the purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and register and deliver to the Owner a Receipt evidencing the same number of certificated American Depositary Shares.

The Depositary may appoint one or more co-transfer agents for the purpose of effecting registration of transfers of American Depositary Shares and combinations and split-ups of Receipts at designated transfer offices on behalf of the Depositary. In carrying out its functions, a co-transfer agent may require evidence of authority and compliance with applicable laws and other requirements by Owners or persons entitled to American Depositary Shares and will be entitled to protection and indemnity to the same extent as the Depositary.

SECTION 2.5. <u>Surrender of American Depositary Shares and Withdrawal of Deposited Securities.</u>

Upon surrender of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby and payment of the fee of the Depositary for the surrender of American Depositary Shares as provided in Section 5.9 and payment of all taxes and governmental charges payable in connection with that surrender and withdrawal of the Deposited Securities, and subject to the terms and conditions of this Deposit Agreement, the Owner of those American Depositary Shares shall be entitled to delivery (to the extent delivery can then be lawfully and practicably made), to or as instructed by that Owner, of the amount of Deposited Securities at the time represented by those American Depositary Shares, <u>but not</u> any money or other property as to which a record date for distribution to Owners has passed (since money or other property of that kind will be delivered or paid on the scheduled payment date to the Owner as of that record date), <u>and except that</u> the Depositary shall not be required to accept surrender of American Depositary Shares for the purpose of withdrawal to the extent it would require delivery of a fraction of a Deposited Security. That delivery shall be made, as provided in this Section, without unreasonable delay.

As a condition of accepting a surrender of American Depositary Shares for the purpose of withdrawal of Deposited Securities, the Depositary may require (i) that each surrendered Receipt be properly endorsed in blank or accompanied by proper instruments of transfer in blank and (ii) that the surrendering Owner execute and deliver to the Depositary a written order directing the Depositary to cause the Deposited Securities being withdrawn to be delivered to or upon the written order of a person or persons designated in that order.

Thereupon, the Depositary shall direct the Custodian to deliver, subject to Sections 2.6, 3.1 and 3.2, the other terms and conditions of this Deposit Agreement and local market rules and practices, to the surrendering Owner or to or upon the written order of the person or persons designated in the order delivered to the Depositary as above provided, the amount of Deposited Securities represented by the surrendered American Depositary Shares, and the Depositary may charge the surrendering Owner a fee and its expenses for giving that direction by cable (including SWIFT) or facsimile transmission. The Company agrees not to prevent, hinder or unreasonably delay any lawful delivery or registration of transfer of Deposited Securities upon surrender of American Depositary Shares for the purpose of withdrawal.

If Deposited Securities are delivered physically upon surrender of American Depositary Shares for the purpose of withdrawal, that delivery will be made at the Custodian's office, <u>except that</u>, at the request, risk and expense of an Owner surrendering American Depositary Shares for withdrawal of Deposited Securities, and for the account of that Owner, the Depositary shall direct the Custodian to forward any cash or other property comprising, and forward a certificate or certificates, if applicable, and other proper documents of title, if any, for, the Deposited Securities represented by the surrendered American Depositary Shares to the Depositary for delivery at the Depositary's Office or to another address specified in the order received from the surrendering Owner.

SECTION 2.6. <u>Limitations on Delivery, Registration of Transfer and Surrender of American Depositary Shares.</u>

As a condition precedent to the delivery, registration of transfer or surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, Custodian or Registrar may require payment from the depositor of Shares or the presenter of the Receipt or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as provided in this Deposit Agreement, may require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with any regulations the Depositary may establish consistent with the provisions of this Deposit Agreement, including, without limitation, this Section 2.6.

The Depositary may refuse to accept deposits of Shares for delivery of American Depositary Shares or to register transfers of American Depositary Shares in particular instances, or may suspend deposits of Shares or registration of transfer generally, whenever it or the Company considers it necessary or advisable to do so. The Depositary may refuse surrenders of American Depositary Shares for the purpose of withdrawal of Deposited Securities in particular instances, or may suspend surrenders for the purpose of withdrawal generally, <u>but, notwithstanding anything to the contrary in this Deposit Agreement, only for</u> (i) temporary delays caused by closing of the Depositary's register or the register of holders of Shares maintained by the Company or the Foreign Registrar, or the deposit of Shares, in connection with voting at a shareholders' meeting or the payment of dividends, (ii) the payment of fees, taxes and similar charges, (iii) compliance with any U.S. or foreign laws or governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities or (iv) any other reason that, at the time, is permitted under paragraph I(A)(1) of the General Instructions to Form F-6 under the Securities Act of 1933 or any successor to that provision.

The Depositary shall not knowingly accept for deposit under this Deposit Agreement any Shares that, at the time of deposit, are Restricted Securities.

SECTION 2.7. <u>Lost Receipts, etc.</u>

If a Receipt is mutilated, destroyed, lost or stolen, the Depositary shall deliver to the Owner the American Depositary Shares evidenced by that Receipt in uncertificated form or, if requested by the Owner, execute and deliver a new Receipt of like tenor in exchange and substitution for such mutilated Receipt, upon surrender and cancellation of that mutilated Receipt, or in lieu of and in substitution for that destroyed, lost or stolen Receipt. <u>However</u>, before the Depositary will deliver American Depositary Shares in uncertificated form or execute and deliver a new Receipt, in substitution for a destroyed, lost or stolen Receipt, the Owner must (a) file with the Depositary (i) a request for that replacement before the Depositary has notice that the Receipt has been acquired by a bona fide purchaser and (ii) a sufficient indemnity bond and (b) satisfy any other reasonable requirements imposed by the Depositary.

SECTION 2.8. <u>Cancellation and Destruction of Surrendered Receipts.</u>

The Depositary shall cancel all Receipts surrendered to it and is authorized to destroy Receipts so cancelled.

SECTION 2.9. <u>DTC Direct Registration System and Profile Modification System.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding the provisions of Section 2.4, the parties acknowledge that DTC's Direct Registration System ("<u>DRS</u>") and Profile Modification System ("<u>Profile</u>") apply to the American Depositary Shares upon acceptance thereof to DRS by DTC. DRS is the system administered by DTC that facilitates interchange between registered holding of uncertificated securities and holding of security entitlements in those securities through DTC and a DTC participant. Profile is a required feature of DRS that allows a DTC participant, claiming to act on behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register that transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with DRS/Profile, the parties acknowledge that the Depositary will not determine whether the DTC participant that is claiming to be acting on behalf of an Owner in requesting a registration of transfer and delivery as described in paragraph (a) above has the actual authority to act on behalf of that Owner (notwithstanding any requirements under the Uniform Commercial Code). For the avoidance of doubt, the provisions of Sections 5.3 and 5.8 apply to the matters arising from the use of the DRS/Profile. The parties agree that the Depositary's reliance on and compliance with instructions received by the Depositary through the DRS/Profile system and otherwise in accordance with this Deposit Agreement shall not constitute negligence or bad faith on the part of the Depositary.

ARTICLE 3. CERTAIN OBLIGATIONS OF OWNERS AND HOLDERS OF AMERICAN DEPOSITARY SHARES

SECTION 3.1. <u>Filing Proofs, Certificates and Other Information.</u>

Any person presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, exchange control approval, or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such certificates and to make such representations and warranties, as the Depositary may deem necessary or proper, or as the Company may reasonably require by written request to the Depositary. The Depositary may withhold the delivery or registration of transfer of American Depositary Shares, the distribution of any dividend or other distribution or of the proceeds thereof or the delivery of any Deposited Securities until that proof or other information is filed or those certificates are executed or those representations and warranties are made. The Depositary shall provide the Company, upon the Company's written request and at the Company's expense, as promptly as practicable, with copies of any information or other materials that the Depositary receives pursuant to this Section, to the extent that the requested disclosure is permitted under applicable law.

SECTION 3.2. <u>Liability of Owner for Taxes.</u>

If any tax or other governmental charge shall become payable by the Custodian or the Depositary with respect to or in connection with any American Depositary Shares or any Deposited Securities represented by any American Depositary Shares or in connection with a transaction to which Section 4.8 applies, that tax or other governmental charge shall be payable by the Owner of those American Depositary Shares to the Depositary. The Depositary may refuse to register any transfer of those American Depositary Shares or any withdrawal of Deposited Securities represented by those American Depositary Shares until that payment is made, and may withhold any dividends or other distributions or the proceeds thereof, or may sell for the account of the Owner any part or all of the Deposited Securities represented by those American Depositary Shares and apply those dividends or other distributions or the net proceeds of any sale of that kind in payment of that tax or other governmental charge <u>but</u>, even after a sale of that kind, the Owner of those American Depositary Shares shall remain liable for any deficiency. The Depositary shall distribute any net proceeds of a sale made under this Section that are not used to pay taxes or governmental charges to the Owners entitled to them in accordance with Section 4.1. If the number of Shares represented by each American Depositary Share decreases as a result of a sale of Deposited Securities under this Section, the Depositary may call for surrender of the American Depositary Shares to be exchanged on a mandatory basis for a lesser number of American Depositary Shares and may sell American Depositary Shares to the extent necessary to avoid distributing fractions of American Depositary Shares in that exchange and distribute the net proceeds of that sale to the Owners entitled to them.

SECTION 3.3. <u>Warranties on Deposit of Shares.</u>

Every person depositing Shares under this Deposit Agreement shall be deemed thereby to represent and warrant that those Shares and each certificate therefor, if applicable, are validly issued, fully paid and nonassessable and were not issued in violation of any preemptive or similar rights of the holders of outstanding securities of the Company and that the person making that deposit is duly authorized so to do. Every depositing person shall also be deemed to represent that the Shares, at the time of deposit, are not Restricted Securities. All representations and warranties deemed made under this Section shall survive the deposit of Shares and delivery of American Depositary Shares.

SECTION 3.4. <u>Disclosure of Interests.</u>

When required in order to comply with applicable laws and regulations or the articles of association or similar document of the Company, the Company may from time to time request each Owner and Holder to provide to the Depositary information relating to: (a) the capacity in which it holds American Depositary Shares, (b) the identity of any Holders or other persons or entities then or previously interested in those American Depositary Shares and the nature of those interests and (c) any other matter where disclosure of such matter is required for that compliance. Each Owner and Holder agrees to provide all information known to it in response to a request made pursuant to this Section. Each Holder consents to the disclosure by the Depositary and the Owner or any other Holder through which it holds American Depositary Shares, directly or indirectly, of all information responsive to a request made pursuant to this Section relating to that Holder that is known to that Owner or other Holder. The Depositary agrees to use reasonable efforts to comply with written instructions requesting that the Depositary forward any request authorized under this Section to the Owners and to forward to the Company any responses it receives in response to that request. The Depositary may charge the Company a fee and its expenses for complying with requests under this Section 3.4.

ARTICLE 4. THE DEPOSITED SECURITIES

SECTION 4.1. <u>Cash Distributions.</u>

Whenever the Depositary receives any cash dividend or other cash distribution on Deposited Securities, the Depositary shall, subject to the provisions of Section 4.5, convert that dividend or other distribution into Dollars and distribute the amount thus received (net of the fees and expenses of the Depositary as provided in Section 5.9) to the Owners entitled thereto, in proportion to the number of American Depositary Shares representing those Deposited Securities held by them respectively; <u>provided</u>, <u>however</u>, that if the Custodian or the Depositary shall be required to withhold and does withhold from that cash dividend or other cash distribution an amount on account of taxes or other governmental charges, the amount distributed to the Owners of the American Depositary Shares representing those Deposited Securities shall be reduced accordingly. <u>However</u>, the Depositary will not pay any Owner a fraction of one cent, but will round each Owner's entitlement to the nearest whole cent.

The Company or its agent will remit to the appropriate governmental agency in each applicable jurisdiction all amounts withheld and owing to such agency.

If a cash distribution would represent a return of all or substantially all the value of the Deposited Securities underlying American Depositary Shares, the Depositary may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) require payment of or deduct the fee for surrender of American Depositary Shares (whether or not it is also requiring surrender of American Depositary Shares) as a condition of making that cash distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) sell all Deposited Securities other than the subject cash distribution and add any net cash proceeds of that sale to the cash distribution, call for surrender of all those American Depositary Shares and require that surrender as a condition of making that cash distribution.

If the Depositary acts under this paragraph, that action shall also be a <u>Termination Option Event</u>.

SECTION 4.2. <u>Distributions Other Than Cash, Shares or Rights.</u>

Subject to the provisions of Sections 4.11 and 5.9, whenever the Depositary receives any distribution other than a distribution described in Section 4.1, 4.3 or 4.4 on Deposited Securities (but not in exchange for or in conversion or in lieu of Deposited Securities), the Depositary shall cause the securities or property received by it to be distributed to the Owners entitled thereto, after deduction or upon payment of any fees and expenses of the Depositary and any taxes or other governmental charges, in proportion to the number of American Depositary Shares representing such Deposited Securities held by them respectively, in any manner that the Depositary deems equitable and practicable for accomplishing that distribution (which may be a distribution of depositary shares representing the securities received); <u>provided</u>, <u>however</u>, that if in the opinion of the Depositary such distribution cannot be made proportionately among the Owners entitled thereto, or if for any other reason (including, but not limited to, any requirement that the Company or the Depositary withhold an amount on account of taxes or other governmental charges or that securities received must be registered under the Securities Act of 1933 in order to be distributed to Owners or Holders) the Depositary deems such distribution not to be lawful and feasible, the Depositary, after consultation with the Company to the extent practicable, may adopt such other method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of the securities or property thus received, or any part thereof, and distribution of the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in Section 5.9) to the Owners entitled thereto, all in the manner and subject to the conditions set forth in Section 4.1. The Depositary may withhold any distribution of securities under this Section 4.2 if it has not received satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933. The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Section 4.2 that is sufficient to pay its fees and expenses in respect of that distribution.

If a distribution to be made under this Section 4.2 would represent a return of all or substantially all the value of the Deposited Securities underlying American Depositary Shares, the Depositary may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) require payment of or deduct the fee for surrender of American Depositary Shares (whether or not it is also requiring surrender of American Depositary Shares) as a condition of making that distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) sell all Deposited Securities other than the subject distribution and add any net cash proceeds of that sale to the distribution, call for surrender of all those American Depositary Shares and require that surrender as a condition of making that distribution.

If the Depositary acts under this paragraph, that action shall also be a <u>Termination Option Event</u>.

SECTION 4.3. <u>Distributions in Shares.</u>

Whenever the Depositary receives any distribution on Deposited Securities consisting of a dividend in, or free distribution of, Shares, the Depositary may deliver to the Owners entitled thereto, in proportion to the number of American Depositary Shares representing those Deposited Securities held by them respectively, an aggregate number of American Depositary Shares representing the amount of Shares received as that dividend or free distribution, subject to the terms and conditions of this Deposit Agreement with respect to the deposit of Shares and issuance of American Depositary Shares, including withholding of any tax or governmental charge as provided in Section 4.11 and payment of the fees and expenses of the Depositary as provided in Section 5.9 (and the Depositary may sell, by public or private sale, an amount of the Shares received (or American Depositary Shares representing those Shares) sufficient to pay its fees and expenses in respect of that distribution). In lieu of delivering fractional American Depositary Shares, the Depositary may sell the amount of Shares represented by the aggregate of those fractions (or American Depositary Shares representing those Shares) and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.1. If and to the extent that additional American Depositary Shares are not delivered and Shares or American Depositary Shares are not sold, each American Depositary Share shall thenceforth also represent the additional Shares distributed on the Deposited Securities represented thereby.

If the Company declares a distribution in which holders of Deposited Securities have a right to elect whether to receive cash, Shares or other securities or a combination of those things, or a right to elect to have a distribution sold on their behalf, the Depositary may, after consultation with the Company, make that right of election available for exercise by Owners in any manner the Depositary considers to be lawful and practical. As a condition of making a distribution election right available to Owners, the Depositary may require satisfactory assurances from the Company that doing so does not require registration of any securities under the Securities Act of 1933 that has not been effected.

SECTION 4.4. <u>Rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If rights are granted to the Depositary in respect of deposited Shares to purchase additional Shares or other securities, the Company and the Depositary shall endeavor to consult as to the actions, if any, the Depositary should take in connection with that grant of rights. The Depositary may, to the extent deemed by it to be lawful and practical (i) if requested in writing by the Company, grant to all or certain Owners rights to instruct the Depositary to purchase the securities to which the rights relate and deliver those securities or American Depositary Shares representing those securities to Owners, (ii) if requested in writing by the Company, deliver the rights to or to the order of certain Owners, or (iii) sell the rights to the extent practicable and distribute the net proceeds of that sale to Owners entitled to those proceeds. To the extent rights are not exercised, delivered or disposed of under (i), (ii) or (iii) above, the Depositary shall permit the rights to lapse unexercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Depositary will act under (a)(i) above, the Company and the Depositary will enter into a separate agreement setting forth the conditions and procedures applicable to the particular offering. Upon instruction from an applicable Owner in the form the Depositary specified and upon payment by that Owner to the Depositary of an amount equal to the purchase price of the securities to be received upon the exercise of the rights, the Depositary shall, on behalf of that Owner, exercise the rights and purchase the securities. The purchased securities shall be delivered to, or as instructed by, the Depositary. The Depositary shall (i) deposit the purchased Shares under this Deposit Agreement and deliver American Depositary Shares representing those Shares to that Owner or (ii) deliver or cause the purchased Shares or other securities to be delivered to or to the order of that Owner. The Depositary will not act under (a)(i) above unless the offer and sale of the securities to which the rights relate are registered under the Securities Act of 1933 or the Depositary has received an opinion of United States counsel that is satisfactory to it to the effect that those securities may be sold and delivered to the applicable Owners without registration under the Securities Act of 1933. For the avoidance of doubt, nothing in this Deposit Agreement shall create any obligation on the part of the Company to file a registration statement with respect to rights or the underlying securities or to endeavor to have such a registration statement declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Depositary will act under (a)(ii) above, the Company and the Depositary will enter into a separate agreement setting forth the conditions and procedures applicable to the particular offering. Upon (i) the request of an applicable Owner to deliver the rights allocable to the American Depositary Shares of that Owner to an account specified by that Owner to which the rights can be delivered and (ii) receipt of such documents as the Company and the Depositary agreed to require to comply with applicable law, the Depositary will deliver those rights as requested by that Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Depositary will act under (a)(iii) above, the Depositary will use reasonable efforts to sell the rights in proportion to the number of American Depositary Shares held by the applicable Owners and pay the net proceeds to the Owners otherwise entitled to the rights that were sold, upon an averaged or other practical basis without regard to any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Payment or deduction of the fees of the Depositary as provided in Section 5.9 and payment or deduction of the expenses of the Depositary and any applicable taxes or other governmental charges shall be conditions of any delivery of securities or payment of cash proceeds under this Section 4.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Depositary shall not be responsible for any failure to determine that it may be lawful or feasible to make rights available to or exercise rights on behalf of Owners in general or any Owner in particular, or to sell rights.

SECTION 4.5. <u>Conversion of Foreign Currency.</u>

Whenever the Depositary or the Custodian receives foreign currency, by way of dividends or other distributions or the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars transferred to the United States, the Depositary or one of its agents or affiliates or the Custodian shall convert or cause to be converted by sale or in any other manner that it may determine that foreign currency into Dollars, and those Dollars shall be distributed to the Owners entitled thereto. A cash distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Owners based on exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and shall be net of any expenses of conversion into Dollars incurred by the Depositary as provided in Section 5.9.

If a conversion of foreign currency or the repatriation or distribution of Dollars can be effected only with the approval or license of any government or agency thereof, the Depositary may, but will not be required to, file an application for that approval or license.

If the Depositary determines that in its judgment any foreign currency received by the Depositary or the Custodian is not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof that is required for such conversion is not filed or sought by the Depositary or is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same.

If any conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled thereto, the Depositary may in its discretion make that conversion and distribution in Dollars to the extent practicable and permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold that balance uninvested and without liability for interest thereon for the account of, the Owners entitled thereto.

The Depositary may convert currency itself or through any of its affiliates, or the Custodian or the Company may convert currency and pay Dollars to the Depositary. Where the Depositary converts currency itself or through any of its affiliates, the Depositary acts as principal for its own account and not as agent, advisor, broker or fiduciary on behalf of any other person and earns revenue, including, without limitation, transaction spreads, that it will retain for its own account. The revenue is based on, among other things, the difference between the exchange rate assigned to the currency conversion made under this Deposit Agreement and the rate that the Depositary or its affiliate receives when buying or selling foreign currency for its own account. The Depositary makes no representation that the exchange rate used or obtained by it or its affiliate in any currency conversion under this Deposit Agreement will be the most favorable rate that could be obtained at the time or that the method by which that rate will be determined will be the most favorable to Owners, subject to the Depositary's obligations under Section 5.3. The methodology used to determine exchange rates used in currency conversions made by the Depositary is available upon request. Where the Custodian converts currency, the Custodian has no obligation to obtain the most favorable rate that could be obtained at the time or to ensure that the method by which that rate will be determined will be the most favorable to Owners, and the Depositary makes no representation that the rate is the most favorable rate and will not be liable for any direct or indirect losses associated with the rate. In certain instances, the Depositary may receive dividends or other distributions from the Company in Dollars that represent the proceeds of a conversion of foreign currency or translation from foreign currency at a rate that was obtained or determined by or on behalf of the Company and, in such cases, the Depositary will not engage in, or be responsible for, any foreign currency transactions and neither it nor the Company makes any representation that the rate obtained or determined by the Company is the most favorable rate and neither it nor the Company will be liable for any direct or indirect losses associated with the rate.

SECTION 4.6. <u>Fixing of Record Date.</u>

Whenever a cash dividend, cash distribution or any other distribution is made on Deposited Securities or rights to purchase Shares or other securities are issued with respect to Deposited Securities (which rights will be delivered to or exercised or sold on behalf of Owners in accordance with Section 4.4) or the Depositary receives notice that a distribution or issuance of that kind will be made, or whenever the Depositary receives notice that a meeting of holders of Shares will be held in respect of which the Company has requested the Depositary to send a notice under Section 4.7, or whenever the Depositary will assess a fee or charge against the Owners, or whenever the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary otherwise finds it necessary or convenient, the Depositary shall fix a record date, which shall be the same as, or as near as practicable to, any corresponding record date set by the Company with respect to Shares, (a) for the determination of the Owners (i) who shall be entitled to receive the benefit of that dividend or other distribution or those rights, (ii) who shall be entitled to give instructions for the exercise of voting rights at that meeting, (iii) who shall be responsible for that fee or charge or (iv) for any other purpose for which the record date was set, or (b) on or after which each American Depositary Share will represent the changed number of Shares. Subject to the provisions of Sections 4.1 through 4.5 and to the other terms and conditions of this Deposit Agreement, the Owners on a record date fixed by the Depositary shall be entitled to receive the amount distributable by the Depositary with respect to that dividend or other distribution or those rights or the net proceeds of sale thereof in proportion to the number of American Depositary Shares held by them respectively, to give voting instructions or to act in respect of the other matter for which that record date was fixed, or be responsible for that fee or charge, as the case may be.

SECTION 4.7. <u>Voting of Deposited Shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon receipt of notice of any meeting of holders of Shares at which holders of Shares will be entitled to vote, if requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, Disseminate to the Owners a notice, the form of which shall be in the sole discretion of the Depositary, that shall contain (i) the information contained in the notice of meeting received by the Depositary, (ii) a statement that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provision of Cayman Islands law and of the articles of association or similar documents of the Company, to instruct the Depositary as to the exercise of the voting rights pertaining to the amount of Shares represented by their respective American Depositary Shares, (iii) a statement as to the manner in which those instructions may be given and (iv) the last date on which the Depositary will accept instructions (the "<u>Instruction Cutoff Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the written request of an Owner of American Depositary Shares, as of the date of the request or, if a record date was specified by the Depositary, as of that record date, received on or before any Instruction Cutoff Date established by the Depositary, the Depositary may, and if the Depositary sent a notice under the preceding paragraph shall, endeavor, in so far as practicable, to vote or cause to be voted the amount of deposited Shares represented by those American Depositary Shares in accordance with the instructions set forth in that request. The Depositary shall not vote or attempt to exercise the right to vote that attaches to the deposited Shares other than in accordance with instructions given by Owners and received by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There can be no assurance that Owners generally or any Owner in particular will receive the notice described in paragraph (a) above in time to enable Owners to give instructions to the Depositary prior to the Instruction Cutoff Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Shares, if the Company will request the Depositary to Disseminate a notice under paragraph (a) above, the Company shall give the Depositary notice of the meeting, details concerning the matters to be voted upon and copies of materials to be made available to holders of Shares in connection with the meeting not less than 30 days prior to the meeting date.

SECTION 4.8. <u>Tender and Exchange Offers; Redemption, Replacement or Cancellation of Deposited Securities.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Depositary shall not tender any Deposited Securities in response to any voluntary cash tender offer, exchange offer or similar offer made to holders of Deposited Securities (a "<u>Voluntary Offer</u>"), except when instructed in writing to do so by an Owner surrendering American Depositary Shares and subject to any conditions or procedures the Depositary may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Depositary receives a written notice that Deposited Securities have been redeemed for cash or otherwise purchased for cash in a transaction that is mandatory and binding on the Depositary as a holder of those Deposited Securities (a "<u>Redemption</u>"), the Depositary, at the expense of the Company, shall (i) if required, surrender Deposited Securities that have been redeemed to the issuer of those securities or its agent on the redemption date, (ii) Disseminate a notice to Owners (A) notifying them of that Redemption, (B) calling for surrender of a corresponding number of American Depositary Shares and (C) notifying them that the called American Depositary Shares have been converted into a right only to receive the money received by the Depositary upon that Redemption and those net proceeds shall be the Deposited Securities to which Owners of those converted American Depositary Shares shall be entitled upon surrenders of those American Depositary Shares in accordance with Section 2.5 or 6.2 and (iii) distribute the money received upon that Redemption to the Owners entitled to it upon surrender by them of called American Depositary Shares in accordance with Section 2.5 (and, for the avoidance of doubt, Owners shall not be entitled to receive that money under Section 4.1). If the Redemption affects less than all the Deposited Securities, the Depositary shall call for surrender a corresponding portion of the outstanding American Depositary Shares and only those American Depositary Shares will automatically be converted into a right to receive the net proceeds of the Redemption. The Depositary shall allocate the American Depositary Shares converted under the preceding sentence among the Owners pro-rata to their respective holdings of American Depositary Shares immediately prior to the Redemption, <u>except that</u> the allocations may be adjusted so that no fraction of a converted American Depositary Share is allocated to any Owner. A Redemption of all or substantially all of the Deposited Securities shall be a <u>Termination Option Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Depositary is notified of or there occurs any change in nominal value or any subdivision, combination or any other reclassification of the Deposited Securities or any recapitalization, reorganization, sale of assets substantially as an entirety, merger or consolidation affecting the issuer of the Deposited Securities or to which it is a party that is mandatory and binding on the Depositary as a holder of Deposited Securities and, as a result, securities or other property have been or will be delivered in exchange, conversion, replacement or in lieu of, Deposited Securities (a "<u>Replacement</u>"), the Depositary shall, if required, surrender the old Deposited Securities affected by that Replacement of Shares and hold, as new Deposited Securities under this Deposit Agreement, the new securities or other property delivered to it in that Replacement. <u>However</u>, the Depositary may elect to sell those new Deposited Securities if in the opinion of the Depositary it is not lawful or not practical for it to hold those new Deposited Securities under this Deposit Agreement because those new Deposited Securities may not be distributed to Owners without registration under the Securities Act of 1933 or for any other reason, at public or private sale, at such places and on such terms as it deems proper and proceed as if those new Deposited Securities had been Redeemed under paragraph (b) above. A Replacement shall be a <u>Termination Option Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the case of a Replacement where the new Deposited Securities will continue to be held under this Deposit Agreement, the Depositary may call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing the new Deposited Securities and the number of those new Deposited Securities represented by each American Depositary Share. If the number of Shares represented by each American Depositary Share decreases as a result of a Replacement, the Depositary may call for surrender of the American Depositary Shares to be exchanged on a mandatory basis for a lesser number of American Depositary Shares and may sell American Depositary Shares to the extent necessary to avoid distributing fractions of American Depositary Shares in that exchange and distribute the net proceeds of that sale to the Owners entitled to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If there are no Deposited Securities with respect to American Depositary Shares, including if the Deposited Securities are cancelled, or the Deposited Securities with respect to American Depositary Shares have become apparently worthless, the Depositary may call for surrender of those American Depositary Shares or may cancel those American Depositary Shares, upon notice to Owners, and that condition shall be a <u>Termination Option Event</u>.

SECTION 4.9. <u>Reports.</u>

The Depositary shall make available for inspection by Owners at its Office any reports and communications, including any proxy solicitation material, received from the Company which are both (a) received by the Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of those Deposited Securities by the Company. The Company shall furnish reports and communications, including any proxy soliciting material to which this Section applies, to the Depositary in English, to the extent those materials are required to be translated into English pursuant to any regulations of the Commission.

SECTION 4.10. <u>Lists of Owners.</u>

As promptly as practicable upon written request by the Company, the Depositary shall, at the expense of the Company, furnish to it a list, as of a recent date, of the names, addresses and American Depositary Share holdings of all Owners.

SECTION 4.11. <u>Withholding.</u>

If the Depositary determines that any distribution received or to be made by the Depositary (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charge that the Depositary is obligated to withhold, the Depositary may sell, by public or private sale, all or a portion of the distributed property (including Shares and rights to subscribe therefor) in the amounts and manner the Depositary deems necessary and practicable to pay those taxes or charges, and the Depositary shall distribute the net proceeds of that sale, after deduction of those taxes or charges, to the Owners entitled thereto in proportion to the number of American Depositary Shares held by them respectively.

Services for Owners and Holders that may permit them to obtain reduced rates of tax withholding at source or reclaim excess tax withheld, and the fees and costs associated with using services of that kind, are not provided under, and are outside the scope of, this Deposit Agreement.

Each Owner and Holder agrees to indemnify the Company, the Depositary, the Custodian and their respective directors, employees, agents and affiliates for, and hold each of them harmless against, any claim by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced withholding at source or other tax benefit received by it.

ARTICLE 5. THE DEPOSITARY, THE CUSTODIANS AND THE COMPANY

SECTION 5.1. <u>Maintenance of Office and Register by the Depositary.</u>

Until termination of this Deposit Agreement in accordance with its terms, the Depositary shall maintain facilities for the delivery, registration of transfers and surrender of American Depositary Shares in accordance with the provisions of this Deposit Agreement.

The Depositary shall keep a register of all Owners and all outstanding American Depositary Shares, which shall be open for inspection by the Owners at the Depositary's Office during regular business hours, but only for the purpose of communicating with Owners regarding the business of the Company or a matter related to this Deposit Agreement or the American Depositary Shares.

The Depositary may close the register for delivery, registration of transfer or surrender for the purpose of withdrawal from time to time as provided in Section 2.6.

If any American Depositary Shares are listed on one or more stock exchanges, the Depositary shall act as Registrar or appoint a Registrar or one or more co-registrars for registration of those American Depositary Shares in accordance with any requirements of that exchange or those exchanges.

The Company shall have the right, at all reasonable times, upon written request, to inspect the transfer and registration records of the Depositary, the Registrar and any co-transfer agents or co-registrars and to require them to supply, at the Company's expense (unless otherwise agreed in writing between the Company and the Depositary), copies of such portion of their records as the Company may reasonably request.

SECTION 5.2. <u>Prevention or Delay of Performance by the Company or the Depositary.</u>

Neither the Depositary nor the Company nor any of their respective directors, employees, agents or affiliates shall incur any liability to any Owner or Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if by reason of (A) any provision of any present or future law or regulation or other act or action of the government of the United States, any State of the United States or any other state or jurisdiction, or of any governmental or regulatory authority or stock exchange; (B) (in the case of the Depositary only) any provision, present or future, of the articles of association or similar document of the Company, or any provision of any securities issued or distributed by the Company, or any offering or distribution thereof; or (C) any event or circumstance, whether natural or caused by a person or persons, that is beyond the ability of the Depositary or the Company, as the case may be, to prevent or counteract by reasonable care or effort (including, but not limited to, earthquakes, floods, severe storms, fires, explosions, war, terrorism, civil unrest, labor disputes, criminal acts or outbreaks of infectious disease; interruptions or malfunctions of utility services, Internet or other communications lines or systems; unauthorized access to or attacks on computer systems or websites; or other failures or malfunctions of computer hardware or software or other systems or equipment), the Depositary or the Company is, directly or indirectly, prevented from, forbidden to or delayed in, or could be subject to any civil or criminal penalty on account of doing or performing and therefore does not do or perform, any act or thing that, by the terms of this Deposit Agreement or the Deposited Securities, it is provided shall be done or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for any exercise of, or failure to exercise, any discretion provided for in this Deposit Agreement (including any determination by the Depositary or the Company to take, or not take, any action that this Deposit Agreement provides the Depositary or the Company, as the case may be, may take);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for the inability of any Owner or Holder to benefit from any distribution, offering, right or other benefit that is made available to holders of Deposited Securities but is not, under the terms of this Deposit Agreement, made available to Owners or Holders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for any special, consequential or punitive damages for any breach of the terms of this Deposit Agreement.

Where, by the terms of a distribution to which Section 4.1, 4.2 or 4.3 applies, or an offering to which Section 4.4 applies, or for any other reason, that distribution or offering may not be made available to Owners, and the Depositary may not dispose of that distribution or offering on behalf of Owners and make the net proceeds available to Owners, then the Depositary shall not make that distribution or offering available to Owners, and shall allow any rights, if applicable, to lapse.

SECTION 5.3. <u>Obligations of the Depositary and the Company.</u>

The Company assumes no obligation nor shall it be subject to any liability under this Deposit Agreement to any Owner or Holder, except that the Company agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith.

The Depositary assumes no obligation nor shall it be subject to any liability under this Deposit Agreement to any Owner or Holder (including, without limitation, liability with respect to the validity or worth of the Deposited Securities), except that the Depositary agrees to perform its obligations specifically set forth in this Deposit Agreement without negligence or bad faith, and the Depositary shall not be a fiduciary or have any fiduciary duty to Owners or Holders.

Neither the Depositary nor the Company shall be under any obligation to appear in, prosecute or defend any action, suit or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares on behalf of any Owner or Holder or any other person.

Each of the Depositary and the Company may rely, and shall be protected in relying upon, any written notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties.

Neither the Depositary nor the Company shall be liable for any action or non-action by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or any other person believed by it in good faith to be competent to give such advice or information.

The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with any matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises the Depositary performed its obligations without negligence or bad faith while it acted as Depositary.

The Depositary shall not be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of American Depositary Shares or Deposited Securities or otherwise.

In the absence of bad faith on its part, the Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities, or for the manner in which any such vote is cast or the effect of any such vote.

The Depositary shall have no duty to make any determination or provide any information as to the tax status. Neither the Depositary nor the Company shall have any liability for any tax consequences that may be incurred by Owners or Holders as a result of owning or holding American Depositary Shares. Neither the Depositary nor the Company shall be liable for the inability or failure of an Owner or Holder to obtain the benefit of a foreign tax credit, reduced rate of withholding or refund of amounts withheld in respect of tax or any other tax benefit.

SECTION 5.4. <u>Resignation and Removal of the Depositary.</u>

The Depositary may at any time resign as Depositary hereunder by written notice of its election so to do delivered to the Company, to become effective upon the appointment of a successor depositary and its acceptance of that appointment as provided in this Section. The effect of resignation if a successor depositary is not appointed is provided for in Section 6.2.

The Depositary may at any time be removed by the Company by 90 days' prior written notice of that removal, to become effective upon the later of (i) the 90th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of its appointment as provided in this Section.

If the Depositary resigns or is removed, the Company shall use its best efforts to appoint a successor depositary, which shall be a bank or trust company having an office in the Borough of Manhattan, The City of New York. Every successor depositary shall execute and deliver to the Company an instrument in writing accepting its appointment under this Deposit Agreement. If the Depositary receives notice from the Company that a successor depositary has been appointed following its resignation or removal, the Depositary, upon payment of all sums due it from the Company, shall deliver to its successor a register listing all the Owners and their respective holdings of outstanding American Depositary Shares and shall deliver the Deposited Securities to or to the order of its successor. When the Depositary has taken the actions specified in the preceding sentence (i) the successor shall become the Depositary and shall have all the rights and shall assume all the duties of the Depositary under this Deposit Agreement and (ii) the predecessor depositary shall cease to be the Depositary and shall be discharged and released from all obligations under this Deposit Agreement, except for its duties under Section 5.8 with respect to the time before that discharge. A successor Depositary shall notify the Owners of its appointment as soon as practical after assuming the duties of Depositary.

Any corporation or other entity into or with which the Depositary may be merged or consolidated shall be the successor of the Depositary without the execution or filing of any document or any further act.

SECTION 5.5. <u>The Custodians.</u>

The Custodian shall be subject at all times and in all respects to the directions of the Depositary and shall be responsible solely to it. The Depositary in its discretion may at any time appoint a substitute or additional custodian or custodians, each of which shall thereafter be one of the Custodians under this Deposit Agreement. If the Depositary receives notice that a Custodian is resigning and, upon the effectiveness of that resignation there would be no Custodian acting under this Deposit Agreement, the Depositary shall, as promptly as practicable after receiving that notice, appoint a substitute custodian or custodians, each of which shall thereafter be a Custodian under this Deposit Agreement. The Depositary shall notify the Company of the appointment of a substitute or additional Custodian as promptly as practicable. The Depositary shall require any Custodian that resigns or is removed to deliver all Deposited Securities held by it to another Custodian.

SECTION 5.6. <u>Notices and Reports.</u>

If the Company takes or decides to take any corporate action of a kind that is addressed in Sections 4.1 to 4.4, or 4.6 to 4.8, or that effects or will effect a change of the name or legal structure of the Company, or that effects or will effect a change to the Shares, the Company shall notify the Depositary and the Custodian of that action or decision as soon as it is lawful and practical to give that notice. The notice shall be in English and shall include all details that the Company is required to include in any notice to any governmental or regulatory authority or securities exchange or is required to make available generally to holders of Shares by publication or otherwise.

The Company will arrange for the translation into English, if not already in English, to the extent required pursuant to any regulations of the Commission, and the prompt transmittal by the Company to the Depositary and the Custodian of all notices and any other reports and communications which are made generally available by the Company to holders of its Shares. If requested in writing by the Company, the Depositary will Disseminate, at the Company's expense, those notices, reports and communications to all Owners or otherwise make them available to Owners in a manner that the Company specifies as substantially equivalent to the manner in which those communications are made available to holders of Shares and compliant with the requirements of any securities exchange on which the American Depositary Shares are listed. The Company will timely provide the Depositary with the quantity of such notices, reports, and communications, as requested by the Depositary from time to time, in order for the Depositary to effect that Dissemination.

The Company represents, as of the date of this Deposit Agreement, that the statements in Article 11 of the form of Receipt appearing as Exhibit A to this Deposit Agreement or, if applicable, most recently filed with the Commission pursuant to Rule 424(b) under the Securities Act of 1933 with respect to the Company's obligation to file periodic reports under the United States Securities Exchange Act of 1934, as amended, or its qualification for exemption from registration under that Act pursuant to Rule 12g3-2(b) under that Act, as the case may be, are true and correct. The Company agrees to promptly notify the Depositary upon becoming aware of any change in the truth of any of those statements or if there is any change in the Company's status regarding those reporting obligations or that qualification.

SECTION 5.7. <u>Distribution of Additional Shares, Rights, etc.</u>

If the Company or any affiliate of the Company determines to make any issuance or distribution of (1) additional Shares, (2) rights to subscribe for Shares, (3) securities convertible into Shares, or (4) rights to subscribe for such securities (each a "<u>Distribution</u>"), the Company shall notify the Depositary in writing in English as promptly as practicable and in any event before the Distribution starts and, if reasonably requested in writing by the Depositary, the Company shall promptly furnish to the Depositary either (i) evidence satisfactory to the Depositary that the Distribution is registered under the Securities Act of 1933 or (ii) a written opinion from U.S. counsel for the Company that is reasonably satisfactory to the Depositary, stating that the Distribution does not require, or, if made in the United States, would not require, registration under the Securities Act of 1933.

The Company agrees with the Depositary that neither the Company nor any company controlled by, controlling or under common control with the Company will at any time deposit any Shares that, at the time of deposit, are Restricted Securities.

SECTION 5.8. <u>Indemnification.</u>

The Company agrees to indemnify the Depositary, its directors, employees, agents and affiliates and each Custodian against, and hold each of them harmless from, any liability or expense (including, but not limited to any documented fees and expenses incurred in seeking, enforcing or collecting such indemnity and the documented and reasonable fees and expenses of counsel) that may arise out of or in connection with (a) any registration with the Commission of American Depositary Shares or Deposited Securities or the offer or sale thereof or (b) acts performed or omitted, pursuant to the provisions of or in connection with this Deposit Agreement and the American Depositary Shares, as the same may be amended, modified or supplemented from time to time, (i) by either the Depositary or a Custodian or their respective directors, employees, agents and affiliates, except for any liability or expense arising out of the negligence or bad faith of either of them, or (ii) by the Company or any of its directors, employees, agents and affiliates.

The Depositary agrees to indemnify the Company, its directors, employees, agents and affiliates and hold them harmless from any liability or expense that may arise out of acts performed or omitted by the Depositary or any Custodian or their respective directors, employees, agents and affiliates due to their negligence or bad faith.

SECTION 5.9. <u>Charges of Depositary.</u>

The following charges shall be incurred by any party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.3), or by Owners, as applicable: (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals hereunder, (3) such cable (including SWIFT) and facsimile transmission fees and expenses as are expressly provided in this Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.5, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.3, 4.3 or 4.4 and the surrender of American Depositary Shares pursuant to Section 2.5 or 6.2, (6) a fee of $.05 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to this Deposit Agreement, including, but not limited to Sections 4.1 through 4.4 and Section 4.8, (7) a fee for the distribution of securities pursuant to Section 4.2 or of rights pursuant to Section 4.4 (where the Depositary will not exercise or sell those rights on behalf of Owners), such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities under this Deposit Agreement (for purposes of this item 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under item 6 above, a fee of $.05 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in item 9 below, and (9) any other charges payable by the Depositary or the Custodian, any of the Depositary's or Custodian's agents or the agents of the Depositary's or Custodian's agents, in connection with the servicing of Shares or other Deposited Securities (which charges shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.6 and shall be payable at the sole discretion of the Depositary by billing those Owners for those charges or by deducting those charges from one or more cash dividends or other cash distributions).

The Depositary may collect any of its fees by deduction from any cash distribution payable, or by selling a portion of any securities to be distributed, to Owners that are obligated to pay those fees.

In performing its duties under this Deposit Agreement, the Depositary may use brokers, dealers, foreign currency dealers or other service providers that are owned by or affiliated with the Depositary and that may earn or share fees, spreads or commissions.

The Depositary may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares.

SECTION 5.10. <u>Retention of Depositary Documents.</u>

The Depositary is authorized to destroy those documents, records, bills and other data compiled during the term of this Deposit Agreement at the times permitted by the laws or regulations governing the Depositary, unless the Company, at the Company's expense, requests reasonably prior to such destruction that those papers be retained for a longer period or turned over to the Company.

SECTION 5.11. <u>Exclusivity.</u>

Without prejudice to the Company's rights under Section 5.4, the Company agrees not to appoint any other depositary for issuance of depositary shares, depositary receipts or any similar securities or instruments so long as The Bank of New York Mellon is acting as Depositary under this Deposit Agreement.

SECTION 5.12. <u>Information for Regulatory Compliance.</u>

Each of the Company and the Depositary shall provide to the other, as promptly as practicable, information from its records or otherwise available to it that is reasonably requested by the other to permit the other to comply with applicable law or requirements of governmental or regulatory authorities.

ARTICLE 6. AMENDMENT AND TERMINATION

SECTION 6.1. <u>Amendment.</u>

The form of the Receipts and any provisions of this Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary without the consent of Owners or Holders in any respect that they may deem necessary or desirable. Any amendment that would impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable (including SWIFT) or facsimile transmission costs, delivery costs or other such expenses), or that would otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of 30 days after notice of that amendment has been Disseminated to the Owners of outstanding American Depositary Shares. Every Owner and Holder, at the time any amendment so becomes effective, shall be deemed, by continuing to hold American Depositary Shares or any interest therein, to consent and agree to that amendment and to be bound by this Deposit Agreement as amended thereby. Upon the effectiveness of an amendment to the form of Receipt, including a change in the number of Shares represented by each American Depositary Share, the Depositary may call for surrender of Receipts to be replaced with new Receipts in the amended form or call for surrender of American Depositary Shares to effect that change of ratio. In no event shall any amendment impair the right of the Owner to surrender American Depositary Shares and receive delivery of the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.

SECTION 6.2. <u>Termination.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may initiate termination of this Deposit Agreement by notice to the Depositary. The Depositary may initiate termination of this Deposit Agreement if (i) at any time 60 days shall have expired after the Depositary delivered to the Company a written resignation notice and a successor depositary has not been appointed and accepted its appointment as provided in Section 5.4 or (ii) a Termination Option Event has occurred. If termination of this Deposit Agreement is initiated, the Depositary shall Disseminate a notice of termination to the Owners of all American Depositary Shares then outstanding setting a date for termination (the "<u>Termination Date</u>"), which shall be at least 90 days after the date of that notice, and this Deposit Agreement shall terminate on that Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the Termination Date, the Company shall be discharged from all obligations under this Deposit Agreement except for its obligations to the Depositary under Sections 5.8 and 5.9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At any time after the Termination Date, the Depositary may sell the Deposited Securities then held under this Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners of American Depositary Shares that remain outstanding, and those Owners will be general creditors of the Depositary with respect to those net proceeds and that other cash. After making that sale, the Depositary shall be discharged from all obligations under this Deposit Agreement, <u>except</u> (i) to account for the net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of this Deposit Agreement and any applicable taxes or governmental charges) and (ii) for its obligations under Section 5.8 and (iii) to act as provided in paragraph (d) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) After the Termination Date, the Depositary shall continue to receive dividends and other distributions pertaining to Deposited Securities (that have not been sold), may sell rights and other property as provided in this Deposit Agreement and shall deliver Deposited Securities (or sale proceeds) upon surrender of American Depositary Shares (after payment or upon deduction, in each case, of the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of those American Depositary Shares in accordance with the terms and conditions of this Deposit Agreement and any applicable taxes or governmental charges). After the Termination Date, the Depositary shall not accept deposits of Shares or deliver American Depositary Shares. After the Termination Date, (i) the Depositary may refuse to accept surrenders of American Depositary Shares for the purpose of withdrawal of Deposited Securities (that have not been sold) or reverse previously accepted surrenders of that kind that have not settled if in its judgment the requested withdrawal would interfere with its efforts to sell the Deposited Securities, (ii) the Depositary will not be required to deliver cash proceeds of the sale of Deposited Securities until all Deposited Securities have been sold and (iii) the Depositary may discontinue the registration of transfers of American Depositary Shares and suspend the distribution of dividends and other distributions on Deposited Securities to the Owners and need not give any further notices or perform any further acts under this Deposit Agreement except as provided in this Section.

ARTICLE 7. MISCELLANEOUS

SECTION 7.1. <u>Counterparts; Signatures; Delivery; Electronic Records.</u>

This Deposit Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of those counterparts shall constitute one and the same instrument. Copies of this Deposit Agreement shall be filed with the Depositary and shall be open to inspection by any Owner or Holder during regular business hours.

This Deposit Agreement may be executed by manual or electronic signatures, including images of manually executed signatures, DocuSign, AdobeSign or a similar agreed-upon electronic signature system, and may be delivered by exchange of copies of this Deposit Agreement by facsimile or email including a pdf or similar bit-mapped image of the signature pages. The parties to this Deposit Agreement represent and agree that if it has been executed or delivered electronically as provided in the preceding sentence or subsequently stored in and retrieved from an electronic record-keeping system, it shall have the same legal effect, validity and enforceability as a manually executed agreement maintained in a paper-based record-keeping system to the fullest extent permitted by applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act and any other applicable law, and that they shall not argue to the contrary.

SECTION 7.2. <u>No Third Party Beneficiaries.</u>

This Deposit Agreement is for the exclusive benefit of the Company, the Depositary, the Owners and the Holders and their respective successors and shall not be deemed to give any legal or equitable right, remedy or claim whatsoever to any other person.

SECTION 7.3. <u>Severability.</u>

In case any one or more of the provisions contained in this Deposit Agreement or in a Receipt should be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained in this Deposit Agreement or that Receipt shall in no way be affected, prejudiced or disturbed thereby.

SECTION 7.4. <u>Owners and Holders as Parties; Binding Effect.</u>

The Owners and Holders from time to time shall be parties to this Deposit Agreement and shall be bound by all of the terms and conditions of this Deposit Agreement and of the Receipts by acceptance of American Depositary Shares or any interest therein.

SECTION 7.5. <u>Notices.</u>

Any and all notices to be given to the Company shall be in writing and shall be deemed to have been duly given if personally delivered or sent by domestic first class or international air mail or air courier or sent by facsimile transmission or email attaching a pdf or similar bit-mapped image of a signed writing, addressed to CARBON ZERO TECHNOLOGIES INTERNATIONAL INC., Room 610, Block A, Bairuida Building, Banxuegang Avenue, Wanke City Community, Bantian Street, Longgang District, Shenzhen 518100, People's Republic of China, Attention: Te Lai, or any other place to which the Company may have transferred its principal office with notice to the Depositary.

Any and all notices to be given to the Depositary shall be in writing and shall be deemed to have been duly given if in English and personally delivered or sent by first class domestic or international air mail or air courier or sent by facsimile transmission or email attaching a pdf or similar bit-mapped image of a signed writing, addressed to The Bank of New York Mellon, 240 Greenwich Street, New York, New York 10286, Attention: Depositary Receipt Administration, email: <u>bnymdepositarynotices@bnymellon.com</u> or any other place to which the Depositary may have transferred its Office with notice to the Company.

Delivery of a notice to the Company or Depositary by mail or air courier shall be deemed effected when deposited, postage prepaid, in a post-office letter box or received by an air courier service. Delivery of a notice to the Company or Depositary sent by facsimile transmission or email shall be deemed effected when the recipient acknowledges receipt of that notice.

A notice to be given to an Owner shall be deemed to have been duly given when Disseminated to that Owner. Dissemination in paper form will be effective when personally delivered or sent by first class domestic or international air mail or air courier, addressed to that Owner at the address of that Owner as it appears on the transfer books for American Depositary Shares of the Depositary, or, if that Owner has filed with the Depositary a written request that notices intended for that Owner be mailed to some other address, at the address designated in that request. Dissemination in electronic form will be effective when sent in the manner consented to by the Owner to the electronic address most recently provided by the Owner for that purpose.

SECTION 7.6. <u>Arbitration; Settlement of Disputes.</u>

Any controversy, claim or cause of action brought by any party hereto against the Company arising out of or relating to the Shares or other Deposited Securities, the American Depositary Shares, the Receipts or this Deposit Agreement, or the breach hereof or thereof, if so elected by the claimant, shall be settled by arbitration in accordance with the International Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.

The place of the arbitration shall be The City of New York, State of New York, United States of America, and the language of the arbitration shall be English.

The number of arbitrators shall be three, each of whom shall be disinterested in the dispute or controversy, shall have no connection with any party thereto, and shall be an attorney experienced in international securities transactions. Each party shall appoint one arbitrator and the two arbitrators shall select a third arbitrator who shall serve as chairperson of the tribunal. If a dispute, controversy or cause of action shall involve more than two parties, the parties shall attempt to align themselves in two sides (i.e., claimant(s) and respondent(s)), each of which shall appoint one arbitrator as if there were only two parties to such dispute, controversy or cause of action. If such alignment and appointment shall not have occurred within thirty (30) calendar days after the initiating party serves the arbitration demand, the American Arbitration Association shall appoint the three arbitrators, each of whom shall have the qualifications described above. The parties and the American Arbitration Association may appoint from among the nationals of any country, whether or not a party is a national of that country.

The arbitral tribunal shall have no authority to award any consequential, special or punitive damages or other damages not measured by the prevailing party's actual damages and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions of this Deposit Agreement.

SECTION 7.7. <u>Appointment of Agent for Service of Process; Submission to Jurisdiction; Jury Trial Waiver.</u>

The Company hereby (i) designates and appoints the person named in Exhibit A to this Deposit Agreement as the Company's authorized agent in the United States upon which process may be served in any suit or proceeding (including any arbitration proceeding) arising out of or relating to the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Deposit Agreement (a "Proceeding"), (ii) consents and submits to the jurisdiction of any state or federal court in the State of New York in which any Proceeding may be instituted and (iii) agrees that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any Proceeding. The Company agrees to deliver to the Depositary, upon the execution and delivery of this Deposit Agreement, a written acceptance by the agent named in Exhibit A to this Deposit Agreement of its appointment as process agent. The Company further agrees to take any and all action, including the filing of any and all such documents and instruments, as may be necessary to continue that designation and appointment in full force and effect, or to appoint and maintain the appointment of another process agent located in the United States as required above, and to deliver to the Depositary a written acceptance by that agent of that appointment, for so long as any American Depositary Shares or Receipts remain outstanding or this Deposit Agreement remains in force. In the event the Company fails to maintain the designation and appointment of a process agent in the United States in full force and effect, the Company hereby waives personal service of process upon it and consents that a service of process in connection with a Proceeding may be made by certified or registered mail, return receipt requested, directed to the Company at its address last specified for notices under this Deposit Agreement, and service so made shall be deemed completed five (5) days after the same shall have been so mailed.

EACH PARTY TO THIS DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH OWNER AND HOLDER) HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THIS DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, ANY QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) AND ANY CLAIM BASED ON U.S. FEDERAL SECURITIES LAWS.

No disclaimer of liability under the United States federal securities laws or the rules and regulations thereunder is intended by any provision of this Deposit Agreement, inasmuch as no person is able to effectively waive the duty of any other person to comply with its obligations under those laws, rules and regulations.

SECTION 7.8. <u>Waiver of Immunities.</u>

To the extent that the Company or any of its properties, assets or revenues may have or may hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any duty of performance under this Deposit Agreement, claim, legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or from execution of judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities, the American Depositary Shares, the Receipts or this Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any immunity of that kind and consents to relief and enforcement as provided above.

SECTION 7.9. <u>Governing Law.</u>

This Deposit Agreement and the Receipts shall be interpreted in accordance with and all rights hereunder and thereunder and provisions hereof and thereof shall be governed by the laws of the State of New York.

IN WITNESS WHEREOF, CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. and THE BANK OF NEW YORK MELLON have duly executed this Deposit Agreement as of the day and year first set forth above and all Owners and Holders shall become parties hereto upon acceptance by them of American Depositary Shares or any interest therein.

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| |
|:---|
| CARBON ZERO TECHNOLOGIES INTERNATIONAL INC. |
| By: |
| Name: |
| Title: |
| THE BANK OF NEW YORK MELLON, |
| as Depositary |
| By: |
| Name: |
| Title: |

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EXHIBIT A

AMERICAN DEPOSITARY SHARES

(Each American Depositary Share represents

four deposited Shares)

THE BANK OF NEW YORK MELLON

AMERICAN DEPOSITARY RECEIPT

FOR CLASS A ORDINARY SHARES OF

CARBON ZERO TECHNOLOGIES INTERNATIONAL INC.

(INCORPORATED UNDER THE LAWS OF THE CAYMAN ISLANDS)

The Bank of New York Mellon, as depositary (hereinafter called the "Depositary"), hereby certifies that_________________________________________, or registered assigns IS THE OWNER OF _____________________________

AMERICAN DEPOSITARY SHARES

representing deposited Class A ordinary shares (herein called "Shares") of Carbon Zero Technologies International Inc., incorporated under the laws of the Cayman Islands (herein called the "<u>Company</u>"). At the date hereof, each American Depositary Share represents four Shares deposited or subject to deposit under the Deposit Agreement (as such term is hereinafter defined) with a custodian for the Depositary (herein called the "<u>Custodian</u>") that, as of the date of the Deposit Agreement, was The Hongkong and Shanghai Banking Corporation Limited located in Hong Kong. The Depositary's Office and its principal executive office are located at 240 Greenwich Street, New York, N.Y. 10286.

THE DEPOSITARY'S OFFICE ADDRESS IS

240 GREENWICH STREET, NEW YORK, N.Y. 10286

1. THE DEPOSIT AGREEMENT.

This American Depositary Receipt is one of an issue (herein called "<u>Receipts</u>"), all issued and to be issued upon the terms and conditions set forth in the Deposit Agreement dated as of [__________], 2026 (herein called the "<u>Deposit Agreement</u>") among the Company, the Depositary, and all Owners and Holders from time to time of American Depositary Shares issued thereunder, each of whom by accepting American Depositary Shares agrees to become a party thereto and become bound by all the terms and conditions thereof. The Deposit Agreement sets forth the rights of Owners and Holders and the rights and duties of the Depositary in respect of the Shares deposited thereunder and any and all other securities, property and cash from time to time received in respect of those Shares and held thereunder (those Shares, securities, property, and cash are herein called "<u>Deposited Securities</u>"). Copies of the Deposit Agreement are on file at the Depositary's Office in New York City and at the office of the Custodian.

The statements made on the face and reverse of this Receipt are summaries of certain provisions of the Deposit Agreement and are qualified by and subject to the detailed provisions of the Deposit Agreement, to which reference is hereby made. Capitalized terms defined in the Deposit Agreement and not defined herein shall have the meanings set forth in the Deposit Agreement.

2. SURRENDER OF AMERICAN DEPOSITARY SHARES AND WITHDRAWAL OF SHARES.

Upon surrender of American Depositary Shares for the purpose of withdrawal of the Deposited Securities represented thereby and payment of the fee of the Depositary for the surrender of American Depositary Shares as provided in Section 5.9 of the Deposit Agreement and payment of all taxes and governmental charges payable in connection with that surrender and withdrawal of the Deposited Securities, and subject to the terms and conditions of the Deposit Agreement, the Owner of those American Depositary Shares shall be entitled to delivery (to the extent delivery can then be lawfully and practicably made), to or as instructed by that Owner, of the amount of Deposited Securities at the time represented by those American Depositary Shares, <u>but not</u> any money or other property as to which a record date for distribution to Owners has passed (since money or other property of that kind will be delivered or paid on the scheduled payment date to the Owner as of that record date), <u>and except that</u> the Depositary shall not be required to accept surrender of American Depositary Shares for the purpose of withdrawal to the extent it would require delivery of a fraction of a Deposited Security. The Depositary shall direct the Custodian with respect to delivery of Deposited Securities and may charge the surrendering Owner a fee and its expenses for giving that direction by cable (including SWIFT) or facsimile transmission. The Company agrees not to prevent, hinder or unreasonably delay any lawful delivery or registration of transfer of Deposited Securities upon surrender of American Depositary Shares for the purpose of withdrawal. If Deposited Securities are delivered physically upon surrender of American Depositary Shares for the purpose of withdrawal, that delivery will be made at the Custodian's office, <u>except that</u>, at the request, risk and expense of the surrendering Owner, and for the account of that Owner, the Depositary shall direct the Custodian to forward any cash or other property comprising, and forward a certificate or certificates, if applicable, and other proper documents of title, if any, for, the Deposited Securities represented by the surrendered American Depositary Shares to the Depositary for delivery at the Depositary's Office or to another address specified in the order received from the surrendering Owner.

3. REGISTRATION OF TRANSFER OF AMERICAN DEPOSITARY SHARES; COMBINATION
AND SPLIT-UP OF RECEIPTS; INTERCHANGE OF CERTIFICATED AND UNCERTIFICATED AMERICAN DEPOSITARY SHARES.

The Depositary, subject to the terms and conditions of the Deposit Agreement, shall register a transfer of American Depositary Shares on its transfer books upon (i) in the case of certificated American Depositary Shares, surrender of the Receipt evidencing those American Depositary Shares, by the Owner or by a duly authorized attorney, properly endorsed or accompanied by proper instruments of transfer or (ii) in the case of uncertificated American Depositary Shares, receipt from the Owner of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.9 of that Agreement), and, in either case, duly stamped as may be required by the laws of the State of New York and of the United States of America. Upon registration of a transfer, the Depositary shall deliver the transferred American Depositary Shares to or upon the order of the person entitled thereto.

The Depositary, subject to the terms and conditions of the Deposit Agreement, shall upon surrender of a Receipt or Receipts for the purpose of effecting a split-up or combination of such Receipt or Receipts, execute and deliver a new Receipt or Receipts for any authorized number of American Depositary Shares requested, evidencing the same aggregate number of American Depositary Shares as the Receipt or Receipts surrendered.

The Depositary, upon surrender of certificated American Depositary Shares for the purpose of exchanging for uncertificated American Depositary Shares, shall cancel the Receipt evidencing those certificated American Depositary Shares and send the Owner a statement confirming that the Owner is the owner of the same number of uncertificated American Depositary Shares. The Depositary, upon receipt of a proper instruction (including, for the avoidance of doubt, instructions through DRS and Profile as provided in Section 2.9 of the Deposit Agreement) from the Owner of uncertificated American Depositary Shares for the purpose of exchanging for certificated American Depositary Shares, shall cancel those uncertificated American Depositary Shares and register and deliver to the Owner a Receipt evidencing the same number of certificated American Depositary Shares.

As a condition precedent to the delivery, registration of transfer, or surrender of any American Depositary Shares or split-up or combination of any Receipt or withdrawal of any Deposited Securities, the Depositary, the Custodian, or Registrar may require payment from the depositor of the Shares or the presenter of the Receipt or instruction for registration of transfer or surrender of American Depositary Shares not evidenced by a Receipt of a sum sufficient to reimburse it for any tax or other governmental charge and any stock transfer or registration fee with respect thereto (including any such tax or charge and fee with respect to Shares being deposited or withdrawn) and payment of any applicable fees as provided in the Deposit Agreement, may require the production of proof satisfactory to it as to the identity and genuineness of any signature and may also require compliance with any regulations the Depositary may establish consistent with the provisions of the Deposit Agreement.

The Depositary may refuse to accept deposits of Shares for delivery of American Depositary Shares or to register transfers of American Depositary Shares in particular instances, or may suspend deposits of Shares or registration of transfer generally, whenever it or the Company considers it necessary or advisable to do so. The Depositary may refuse surrenders of American Depositary Shares for the purpose of withdrawal of Deposited Securities in particular instances, or may suspend surrenders for the purpose of withdrawal generally, <u>but, notwithstanding anything to the contrary in the Deposit Agreement, only for</u> (i) temporary delays caused by closing of the Depositary's register or the register of holders of Shares maintained by the Company or the Foreign Registrar, or the deposit of Shares, in connection with voting at a shareholders' meeting or the payment of dividends, (ii) the payment of fees, taxes and similar charges, (iii) compliance with any U.S. or foreign laws or governmental regulations relating to the American Depositary Shares or to the withdrawal of the Deposited Securities or (iv) any other reason that, at the time, is permitted under paragraph I(A)(1) of the General Instructions to Form F-6 under the Securities Act of 1933 or any successor to that provision.

The Depositary shall not knowingly accept for deposit under the Deposit Agreement any Shares that, at the time of deposit, are Restricted Securities. The Depositary shall refuse, and shall instruct the Custodian to refuse, to accept Shares for deposit if the Depositary has received a notice from the Company that the Company has restricted transfer of those Shares under the Company's articles of association or any applicable laws or that the deposit would result in any violation of the Company's articles of association or any applicable laws.

4. LIABILITY OF OWNER FOR TAXES.

If any tax or other governmental charge shall become payable by the Custodian or the Depositary with respect to or in connection with any American Depositary Shares or any Deposited Securities represented by any American Depositary Shares or in connection with a transaction to which Section 4.8 of the Deposit Agreement applies, that tax or other governmental charge shall be payable by the Owner of those American Depositary Shares to the Depositary. The Depositary may refuse to register any transfer of those American Depositary Shares or any withdrawal of Deposited Securities represented by those American Depositary Shares until that payment is made, and may withhold any dividends or other distributions or the proceeds thereof, or may sell for the account of the Owner any part or all of the Deposited Securities represented by those American Depositary Shares, and may apply those dividends or other distributions or the net proceeds of any sale of that kind in payment of that tax or other governmental charge but, even after a sale of that kind, the Owner shall remain liable for any deficiency. The Depositary shall distribute any net proceeds of a sale made under Section 3.2 of the Deposit Agreement that are not used to pay taxes or governmental charges to the Owners entitled to them in accordance with Section 4.1 of the Deposit Agreement. If the number of Shares represented by each American Depositary Share decreases as a result of a sale of Deposited Securities under Section 3.2 of the Deposit Agreement, the Depositary may call for surrender of the American Depositary Shares to be exchanged on a mandatory basis for a lesser number of American Depositary Shares and may sell American Depositary Shares to the extent necessary to avoid distributing fractions of American Depositary Shares in that exchange and distribute the net proceeds of that sale to the Owners entitled to them.

5. WARRANTIES ON DEPOSIT OF SHARES.

Every person depositing Shares under the Deposit Agreement shall be deemed thereby to represent and warrant that those Shares and each certificate therefor, if applicable, are validly issued, fully paid and nonassessable and were not issued in violation of any preemptive or similar rights of the holders of outstanding securities of the Company and that the person making that deposit is duly authorized so to do. Every depositing person shall also be deemed to represent that the Shares, at the time of deposit, are not Restricted Securities. All representations and warranties deemed made under Section 3.3 of the Deposit Agreement shall survive the deposit of Shares and delivery of American Depositary Shares.

6. FILING PROOFS, CERTIFICATES, AND OTHER INFORMATION.

Any person presenting Shares for deposit or any Owner or Holder may be required from time to time to file with the Depositary or the Custodian such proof of citizenship or residence, exchange control approval, or such information relating to the registration on the books of the Company or the Foreign Registrar, if applicable, to execute such certificates and to make such representations and warranties, as the Depositary may deem necessary or proper or as the Company may reasonably require by written request to the Depositary. The Depositary may withhold the delivery or registration of transfer of any American Depositary Shares, the distribution of any dividend or other distribution or of the proceeds thereof or the delivery of any Deposited Securities until that proof or other information is filed or those certificates are executed or those representations and warranties are made. The Depositary shall provide the Company, upon the Company's written request and at the Company's expense, as promptly as practicable, with copies of any information or other materials which the Depositary receives pursuant to Section 3.4 of the Deposit Agreement, to the extent that the requested disclosure is permitted under applicable law.

As conditions of accepting Shares for deposit, the Depositary may require (i) any certification required by the Depositary or the Custodian in accordance with the provisions of the Deposit Agreement, (ii) a written order directing the Depositary to deliver to, or upon the written order of, the person or persons stated in that order, the number of American Depositary Shares representing those Deposited Shares, (iii) evidence satisfactory to the Depositary that those Shares have been re-registered in the books of the Company or the Foreign Registrar in the name of the Depositary, a Custodian or a nominee of the Depositary or a Custodian, (iv) evidence satisfactory to the Depositary that any necessary approval has been granted by any governmental body in each applicable jurisdiction and (v) an agreement or assignment, or other instrument satisfactory to the Depositary, that provides for the prompt transfer to the Custodian of any dividend, or right to subscribe for additional Shares or to receive other property, that any person in whose name those Shares are or have been recorded may thereafter receive upon or in respect of those Shares, or, in lieu thereof, such agreement of indemnity or other agreement as shall be satisfactory to the Depositary.

7. CHARGES OF DEPOSITARY.

The following charges shall be incurred by any party depositing or withdrawing Shares or by any party surrendering American Depositary Shares or to whom American Depositary Shares are issued (including, without limitation, issuance pursuant to a stock dividend or stock split declared by the Company or an exchange of stock regarding the American Depositary Shares or Deposited Securities or a delivery of American Depositary Shares pursuant to Section 4.3 of the Deposit Agreement), or by Owners, as applicable: (1) taxes and other governmental charges, (2) such registration fees as may from time to time be in effect for the registration of transfers of Shares generally on the Share register of the Company or Foreign Registrar and applicable to transfers of Shares to or from the name of the Depositary or its nominee or the Custodian or its nominee on the making of deposits or withdrawals hereunder, (3) such cable (including SWIFT) and facsimile transmission fees and expenses as are expressly provided in the Deposit Agreement, (4) such expenses as are incurred by the Depositary in the conversion of foreign currency pursuant to Section 4.5 of the Deposit Agreement, (5) a fee of $5.00 or less per 100 American Depositary Shares (or portion thereof) for the delivery of American Depositary Shares pursuant to Section 2.3, 4.3 or 4.4 of the Deposit Agreement and the surrender of American Depositary Shares pursuant to Section 2.5 or 6.2 of the Deposit Agreement, (6) a fee of $.05 or less per American Depositary Share (or portion thereof) for any cash distribution made pursuant to the Deposit Agreement, including, but not limited to Sections 4.1 through 4.4 and 4.8 of the Deposit Agreement, (7) a fee for the distribution of securities pursuant to Section 4.2 of the Deposit Agreement or of rights pursuant to Section 4.4 of that Agreement (where the Depositary will not exercise or sell those rights on behalf of Owners), such fee being in an amount equal to the fee for the execution and delivery of American Depositary Shares referred to above which would have been charged as a result of the deposit of such securities under the Deposit Agreement (for purposes of this item 7 treating all such securities as if they were Shares) but which securities are instead distributed by the Depositary to Owners, (8) in addition to any fee charged under item 6, a fee of $.05 or less per American Depositary Share (or portion thereof) per annum for depositary services, which will be payable as provided in item 9 below, and (9) any other charges payable by the Depositary or the Custodian, any of the Depositary's or Custodian's agents or the agents of the Depositary's or Custodian's agents, in connection with the servicing of Shares or other Deposited Securities (which charges shall be assessed against Owners as of the date or dates set by the Depositary in accordance with Section 4.6 of the Deposit Agreement and shall be payable at the sole discretion of the Depositary by billing those Owners for those charges or by deducting those charges from one or more cash dividends or other cash distributions).

The Depositary may collect any of its fees by deduction from any cash distribution payable, or by selling a portion of any securities to be distributed, to Owners that are obligated to pay those fees.

The Depositary may own and deal in any class of securities of the Company and its affiliates and in American Depositary Shares.

From time to time, the Depositary may make payments to the Company to reimburse the Company for costs and expenses generally arising out of establishment and maintenance of the American Depositary Shares program, waive fees and expenses for services provided by the Depositary or share revenue from the fees collected from Owners or Holders. In performing its duties under the Deposit Agreement, the Depositary may use brokers, dealers, foreign currency dealers or other service providers that are owned by or affiliated with the Depositary and that may earn or share fees, spreads or commissions.

8. DISCLOSURE OF INTERESTS.

When required in order to comply with applicable laws and regulations or the articles of association or similar document of the Company, the Company may from time to time request each Owner and Holder to provide to the Depositary information relating to: (a) the capacity in which it holds American Depositary Shares, (b) the identity of any Holders or other persons or entities then or previously interested in those American Depositary Shares and the nature of those interests and (c) any other matter where disclosure of such matter is required for that compliance. Each Owner and Holder agrees to provide all information known to it in response to a request made pursuant to Section 3.4 of the Deposit Agreement. Each Holder consents to the disclosure by the Depositary and the Owner or other Holder through which it holds American Depositary Shares, directly or indirectly, of all information responsive to a request made pursuant to that Section relating to that Holder that is known to that Owner or other Holder.

9. TITLE TO AMERICAN DEPOSITARY SHARES.

It is a condition of the American Depositary Shares, and every successive Owner and Holder of American Depositary Shares, by accepting or holding the same, consents and agrees that American Depositary Shares evidenced by a Receipt, when the Receipt is properly endorsed or accompanied by proper instruments of transfer, shall be transferable as certificated registered securities under the laws of the State of New York, and that American Depositary Shares not evidenced by Receipts shall be transferable as uncertificated registered securities under the laws of the State of New York. The Depositary, notwithstanding any notice to the contrary, may treat the Owner of American Depositary Shares as the absolute owner thereof for the purpose of determining the person entitled to distribution of dividends or other distributions or to any notice provided for in the Deposit Agreement and for all other purposes, and neither the Depositary nor the Company shall have any obligation or be subject to any liability under the Deposit Agreement to any Holder of American Depositary Shares, but only to the Owner.

10. VALIDITY
 OF RECEIPT.

This Receipt shall not be entitled to any benefits under the Deposit Agreement or be valid or obligatory for any purpose, unless this Receipt shall have been (i) executed by the Depositary by the manual signature of a duly authorized officer of the Depositary or (ii) executed by the facsimile signature of a duly authorized officer of the Depositary and countersigned by the manual signature of a duly authorized signatory of the Depositary or the Registrar or a co-registrar.

11. REPORTS;
 INSPECTION OF TRANSFER BOOKS.

The Company is subject to the periodic reporting requirements of the Securities Exchange Act of 1934 and, accordingly, files certain reports with the Securities and Exchange Commission. Those reports will be available for inspection and copying through the Commission's EDGAR system or at public reference facilities maintained by the Commission in Washington, D.C.

The Depositary will make available for inspection by Owners at its Office any reports, notices and other communications, including any proxy soliciting material, received from the Company which are both (a) received by the Depositary as the holder of the Deposited Securities and (b) made generally available to the holders of those Deposited Securities by the Company. The Company shall furnish reports and communications, including any proxy soliciting material to which Section 4.9 of the Deposit Agreement applies, to the Depositary in English, to the extent such materials are required to be translated into English pursuant to any regulations of the Commission.

The Depositary will maintain a register of American Depositary Shares and transfers of American Depositary Shares, which shall be open for inspection by the Owners at the Depositary's Office during regular business hours, but only for the purpose of communicating with Owners regarding the business of the Company or a matter related to the Deposit Agreement or the American Depositary Shares.

12. DIVIDENDS
 AND DISTRIBUTIONS.

Whenever the Depositary receives any cash dividend or other cash distribution on Deposited Securities, the Depositary will, if at the time of receipt thereof any amounts received in a foreign currency can in the judgment of the Depositary be converted on a reasonable basis into Dollars transferable to the United States, and subject to the Deposit Agreement, convert that dividend or other cash distribution into Dollars and distribute the amount thus received (net of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.9 of the Deposit Agreement) to the Owners entitled thereto; <u>provided</u>, <u>however</u>, that if the Custodian or the Depositary is required to withhold and does withhold from that cash dividend or other cash distribution an amount on account of taxes or other governmental charges, the amount distributed to the Owners of the American Depositary Shares representing those Deposited Securities shall be reduced accordingly.

If a cash distribution would represent a return of all or substantially all the value of the Deposited Securities underlying American Depositary Shares, the Depositary may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) require payment of or deduct the fee for surrender of American Depositary Shares (whether or not it is also requiring surrender of American Depositary Shares) as a condition of making that cash distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) sell all Deposited Securities other than the subject cash distribution and add any net cash proceeds of that sale to the cash distribution, call for surrender of all those American Depositary Shares and require that surrender as a condition of making that cash distribution.

If the Depositary acts under this paragraph, that action shall also be a <u>Termination Option Event</u>.

Subject to the provisions of Section 4.11 and 5.9 of the Deposit Agreement, whenever the Depositary receives any distribution other than a distribution described in Section 4.1, 4.3 or 4.4 of the Deposit Agreement on Deposited Securities (but not in exchange for or in conversion or in lieu of Deposited Securities), the Depositary will cause the securities or property received by it to be distributed to the Owners entitled thereto, after deduction or upon payment of any fees and expenses of the Depositary and any taxes or other governmental charges, in any manner that the Depositary deems equitable and practicable for accomplishing that distribution (which may be a distribution of depositary shares representing the securities received); <u>provided</u>, <u>however</u>, that if in the opinion of the Depositary such distribution cannot be made proportionately among the Owners entitled thereto, or if for any other reason the Depositary deems such distribution not to be lawful and feasible, the Depositary, after consultation with the Company to the extent practicable, may adopt such other method as it may deem equitable and practicable for the purpose of effecting such distribution, including, but not limited to, the public or private sale of the securities or property thus received, or any part thereof, and distribution of the net proceeds of any such sale (net of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.9 of the Deposit Agreement) to the Owners entitled thereto all in the manner and subject to the conditions set forth in Section 4.1 of the Deposit Agreement. The Depositary may withhold any distribution of securities under Section 4.2 of the Deposit Agreement if it has not received satisfactory assurances from the Company that the distribution does not require registration under the Securities Act of 1933. The Depositary may sell, by public or private sale, an amount of securities or other property it would otherwise distribute under this Article that is sufficient to pay its fees and expenses in respect of that distribution.

If a distribution to be made under Section 4.2 of the Deposit Agreement would represent a return of all or substantially all the value of the Deposited Securities underlying American Depositary Shares, the Depositary may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) require payment of or deduct the fee for surrender of American Depositary Shares (whether or not it is also requiring surrender of American Depositary Shares) as a condition of making that distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) sell all Deposited Securities other than the subject distribution and add any net cash proceeds of that sale to the distribution, call for surrender of all those American Depositary Shares and require that surrender as a condition of making that distribution.

If the Depositary acts under this paragraph, that action shall also be a <u>Termination Option Event</u>.

Whenever the Depositary receives any distribution consisting of a dividend in, or free distribution of, Shares, the Depositary may deliver to the Owners entitled thereto, an aggregate number of American Depositary Shares representing the amount of Shares received as that dividend or free distribution, subject to the terms and conditions of the Deposit Agreement with respect to the deposit of Shares and issuance of American Depositary Shares, including the withholding of any tax or other governmental charge as provided in Section 4.11 of the Deposit Agreement and the payment of the fees and expenses of the Depositary as provided in Article 7 hereof and Section 5.9 of the Deposit Agreement (and the Depositary may sell, by public or private sale, an amount of Shares received (or American Depositary Shares representing those Shares) sufficient to pay its fees and expenses in respect of that distribution). In lieu of delivering fractional American Depositary Shares, the Depositary may sell the amount of Shares represented by the aggregate of those fractions (or American Depositary Shares representing those Shares) and distribute the net proceeds, all in the manner and subject to the conditions described in Section 4.1 of the Deposit Agreement. If and to the extent that additional American Depositary Shares are not delivered and Shares or American Depositary Shares are not sold, each American Depositary Share shall thenceforth also represent the additional Shares distributed on the Deposited Securities represented thereby.

If the Company declares a distribution in which holders of Deposited Securities have a right to elect whether to receive cash, Shares or other securities or a combination of those things, or a right to elect to have a distribution sold on their behalf, the Depositary may, after consultation with the Company, make that right of election available for exercise by Owners in any manner the Depositary considers to be lawful and practical. As a condition of making a distribution election right available to Owners, the Depositary may require satisfactory assurances from the Company that doing so does not require registration of any securities under the Securities Act of 1933 that has not been effected.

If the Depositary determines that any distribution received or to be made by the Depositary (including Shares and rights to subscribe therefor) is subject to any tax or other governmental charge that the Depositary is obligated to withhold, the Depositary may sell, by public or private sale, all or a portion of the distributed property (including Shares and rights to subscribe therefor) in the amounts and manner the Depositary deems necessary and practicable to pay those taxes or charges, and the Depositary shall distribute the net proceeds of that sale, after deduction of those taxes or charges, to the Owners entitled thereto in proportion to the number of American Depositary Shares held by them respectively.

Each Owner and Holder agrees to indemnify the Company, the Depositary, the Custodian and their respective directors, employees, agents and affiliates for, and hold each of them harmless against, any claim by any governmental authority with respect to taxes, additions to tax, penalties or interest arising out of any refund of taxes, reduced withholding at source or other tax benefit received by it. Services for Owners and Holders that may permit them to obtain reduced rates of tax withholding at source or reclaim excess tax withheld, and the fees and costs associated with using services of that kind, are not provided under, and are outside the scope of, the Deposit Agreement.

13. RIGHTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If rights are granted to the Depositary in respect of deposited Shares to purchase additional Shares or other securities, the Company and the Depositary shall endeavor to consult as to the actions, if any, the Depositary should take in connection with that grant of rights. The Depositary may, to the extent deemed by it to be lawful and practical (i) if requested in writing by the Company, grant to all or certain Owners rights to instruct the Depositary to purchase the securities to which the rights relate and deliver those securities or American Depositary Shares representing those securities to Owners, (ii) if requested in writing by the Company, deliver the rights to or to the order of certain Owners, or (iii) sell the rights to the extent practicable and distribute the net proceeds of that sale to Owners entitled to those proceeds. To the extent rights are not exercised, delivered or disposed of under (i), (ii) or (iii) above, the Depositary shall permit the rights to lapse unexercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Depositary will act under (a)(i) above, the Company and the Depositary will enter into a separate agreement setting forth the conditions and procedures applicable to the particular offering. Upon instruction from an applicable Owner in the form the Depositary specified and upon payment by that Owner to the Depositary of an amount equal to the purchase price of the securities to be received upon the exercise of the rights, the Depositary shall, on behalf of that Owner, exercise the rights and purchase the securities. The purchased securities shall be delivered to, or as instructed by, the Depositary. The Depositary shall (i) deposit the purchased Shares under the Deposit Agreement and deliver American Depositary Shares representing those Shares to that Owner or (ii) deliver or cause the purchased Shares or other securities to be delivered to or to the order of that Owner. The Depositary will not act under (a)(i) above unless the offer and sale of the securities to which the rights relate are registered under the Securities Act of 1933 or the Depositary has received an opinion of United States counsel that is satisfactory to it to the effect that those securities may be sold and delivered to the applicable Owners without registration under the Securities Act of 1933. For the avoidance of doubt, nothing in the Deposit Agreement shall create any obligation on the part of the Company to file a registration statement with respect to rights or the underlying securities or to endeavor to have such a registration statement declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Depositary will act under (a)(ii) above, the Company and the Depositary will enter into a separate agreement setting forth the conditions and procedures applicable to the particular offering. Upon (i) the request of an applicable Owner to deliver the rights allocable to the American Depositary Shares of that Owner to an account specified by that Owner to which the rights can be delivered and (ii) receipt of such documents as the Company and the Depositary agreed to require to comply with applicable law, the Depositary will deliver those rights as requested by that Owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Depositary will act under (a)(iii) above, the Depositary will use reasonable efforts to sell the rights in proportion to the number of American Depositary Shares held by the applicable Owners and pay the net proceeds to the Owners otherwise entitled to the rights that were sold, upon an averaged or other practical basis without regard to any distinctions among such Owners because of exchange restrictions or the date of delivery of any American Depositary Shares or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Payment or deduction of the fees of the Depositary as provided in Section 5.9 of the Deposit Agreement and payment or deduction of the expenses of the Depositary and any applicable taxes or other governmental charges shall be conditions of any delivery of securities or payment of cash proceeds under Section 4.4 of the Deposit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Depositary shall not be responsible for any failure to determine that it may be lawful or feasible to make rights available to or exercise rights on behalf of Owners in general or any Owner in particular , or to sell rights.

14. CONVERSION
 OF FOREIGN CURRENCY.

Whenever the Depositary or the Custodian receives foreign currency, by way of dividends or other distributions or the net proceeds from the sale of securities, property or rights, and if at the time of the receipt thereof the foreign currency so received can in the judgment of the Depositary be converted on a reasonable basis into Dollars and the resulting Dollars transferred to the United States, the Depositary or one of its agents or affiliates or the Custodian shall convert or cause to be converted by sale or in any other manner that it may determine that foreign currency into Dollars, and those Dollars shall be distributed to the Owners entitled thereto. A cash distribution may be made upon an averaged or other practicable basis without regard to any distinctions among Owners based on exchange restrictions, the date of delivery of any American Depositary Shares or otherwise and shall be net of any expenses of conversion into Dollars incurred by the Depositary as provided in Section 5.9 of the Deposit Agreement.

If a conversion of foreign currency or the repatriation or distribution of Dollars can be effected only with the approval or license of any government or agency thereof, the Depositary may, but will not be required to, file an application for that approval or license.

If the Depositary determines that in its judgment any foreign currency received by the Depositary or the Custodian is not convertible on a reasonable basis into Dollars transferable to the United States, or if any approval or license of any government or agency thereof that is required for such conversion is not filed or sought by the Depositary or is not obtained within a reasonable period as determined by the Depositary, the Depositary may distribute the foreign currency received by the Depositary to, or in its discretion may hold such foreign currency uninvested and without liability for interest thereon for the respective accounts of, the Owners entitled to receive the same.

If any conversion of foreign currency, in whole or in part, cannot be effected for distribution to some of the Owners entitled thereto, the Depositary may in its discretion make that conversion and distribution in Dollars to the extent practicable and permissible to the Owners entitled thereto and may distribute the balance of the foreign currency received by the Depositary to, or hold that balance uninvested and without liability for interest thereon for the account of, the Owners entitled thereto.

The Depositary may convert currency itself or through any of its affiliates, or the Custodian or the Company may convert currency and pay Dollars to the Depositary. Where the Depositary converts currency itself or through any of its affiliates, the Depositary acts as principal for its own account and not as agent, advisor, broker or fiduciary on behalf of any other person and earns revenue, including, without limitation, transaction spreads, that it will retain for its own account. The revenue is based on, among other things, the difference between the exchange rate assigned to the currency conversion made under the Deposit Agreement and the rate that the Depositary or its affiliate receives when buying or selling foreign currency for its own account. The Depositary makes no representation that the exchange rate used or obtained by it or its affiliate in any currency conversion under the Deposit Agreement will be the most favorable rate that could be obtained at the time or that the method by which that rate will be determined will be the most favorable to Owners, subject to the Depositary's obligations under Section 5.3 of that Agreement. The methodology used to determine exchange rates used in currency conversions made by the Depositary is available upon request. Where the Custodian converts currency, the Custodian has no obligation to obtain the most favorable rate that could be obtained at the time or to ensure that the method by which that rate will be determined will be the most favorable to Owners, and the Depositary makes no representation that the rate is the most favorable rate and will not be liable for any direct or indirect losses associated with the rate. In certain instances, the Depositary may receive dividends or other distributions from the Company in Dollars that represent the proceeds of a conversion of foreign currency or translation from foreign currency at a rate that was obtained or determined by or on behalf of the Company and, in such cases, the Depositary will not engage in, or be responsible for, any foreign currency transactions and neither it nor the Company makes any representation that the rate obtained or determined by the Company is the most favorable rate and neither it nor the Company will be liable for any direct or indirect losses associated with the rate.

15. RECORD
 DATES.

Whenever a cash dividend, cash distribution or any other distribution is made on Deposited Securities or rights to purchase Shares or other securities are issued with respect to Deposited Securities (which rights will be delivered to or exercised or sold on behalf of Owners in accordance with Section 4.4 of the Deposit Agreement) or the Depositary receives notice that a distribution or issuance of that kind will be made, or whenever the Depositary receives notice that a meeting of holders of Shares will be held in respect of which the Company has requested the Depositary to send a notice under Section 4.7 of the Deposit Agreement, or whenever the Depositary will assess a fee or charge against the Owners, or whenever the Depositary causes a change in the number of Shares that are represented by each American Depositary Share, or whenever the Depositary otherwise finds it necessary or convenient, the Depositary shall fix a record date, which shall be the same as, or as near as practicable to, any corresponding record date set by the Company with respect to Shares, (a) for the determination of the Owners (i) who shall be entitled to receive the benefit of that dividend or other distribution or those rights, (ii) who shall be entitled to give instructions for the exercise of voting rights at that meeting, (iii) who shall be responsible for that fee or charge or (iv) for any other purpose for which the record date was set, or (b) on or after which each American Depositary Share will represent the changed number of Shares. Subject to the provisions of Sections 4.1 through 4.5 of the Deposit Agreement and to the other terms and conditions of the Deposit Agreement, the Owners on a record date fixed by the Depositary shall be entitled to receive the amount distributable by the Depositary with respect to that dividend or other distribution or those rights or the net proceeds of sale thereof in proportion to the number of American Depositary Shares held by them respectively, to give voting instructions or to act in respect of the other matter for which that record date was fixed, or be responsible for that fee or charge, as the case may be.

16. VOTING
 OF DEPOSITED SHARES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon receipt of notice of any meeting of holders of Shares at which holders of Shares will be entitled to vote, if requested in writing by the Company, the Depositary shall, as soon as practicable thereafter, Disseminate to the Owners a notice, the form of which shall be in the sole discretion of the Depositary, that shall contain (i) the information contained in the notice of meeting received by the Depositary, (ii) a statement that the Owners as of the close of business on a specified record date will be entitled, subject to any applicable provision of Cayman Islands law and of the articles of association or similar documents of the Company, to instruct the Depositary as to the exercise of the voting rights pertaining to the amount of Shares represented by their respective American Depositary Shares, (iii) a statement as to the manner in which those instructions may be given and (iv) the last date on which the Depositary will accept instructions (the "<u>Instruction Cutoff Date</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the written request of an Owner of American Depositary Shares, as of the date of the request or, if a record date was specified by the Depositary, as of that record date, received on or before any Instruction Cutoff Date established by the Depositary, the Depositary may, and if the Depositary sent a notice under the preceding paragraph shall, endeavor, in so far as practicable, to vote or cause to be voted the amount of deposited Shares represented by those American Depositary Shares in accordance with the instructions set forth in that request. The Depositary shall not vote or attempt to exercise the right to vote that attaches to the deposited Shares other than in accordance with instructions given by Owners and received by the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There can be no assurance that Owners generally or any Owner in particular will receive the notice described in paragraph (a) above in time to enable Owners to give instructions to the Depositary prior to the Instruction Cutoff Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In order to give Owners a reasonable opportunity to instruct the Depositary as to the exercise of voting rights relating to Shares, if the Company will request the Depositary to Disseminate a notice under paragraph (a) above, the Company shall give the Depositary notice of the meeting, details concerning the matters to be voted upon and copies of materials to be made available to holders of Shares in connection with the meeting not less than 30 days prior to the meeting date.

17. TENDER
 AND EXCHANGE OFFERS; REDEMPTION, REPLACEMENT OR CANCELLATION OF DEPOSITED SECURITIES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Depositary shall not tender any Deposited Securities in response to any voluntary cash tender offer, exchange offer or similar offer made to holders of Deposited Securities (a "<u>Voluntary Offer</u>"), except when instructed in writing to do so by an Owner surrendering American Depositary Shares and subject to any conditions or procedures the Depositary may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Depositary receives a written notice that Deposited Securities have been redeemed for cash or otherwise purchased for cash in a transaction that is mandatory and binding on the Depositary as a holder of those Deposited Securities (a "<u>Redemption</u>"), the Depositary, at the expense of the Company, shall (i) if required, surrender Deposited Securities that have been redeemed to the issuer of those securities or its agent on the redemption date, (ii) Disseminate a notice to Owners (A) notifying them of that Redemption, (B) calling for surrender of a corresponding number of American Depositary Shares and (C) notifying them that the called American Depositary Shares have been converted into a right only to receive the money received by the Depositary upon that Redemption and those net proceeds shall be the Deposited Securities to which Owners of those converted American Depositary Shares shall be entitled upon surrenders of those American Depositary Shares in accordance with Section 2.5 or 6.2 of the Deposit Agreement and (iii) distribute the money received upon that Redemption to the Owners entitled to it upon surrender by them of called American Depositary Shares in accordance with Section 2.5 of that Agreement (and, for the avoidance of doubt, Owners shall not be entitled to receive that money under Section 4.1 of that Agreement). If the Redemption affects less than all the Deposited Securities, the Depositary shall call for surrender a corresponding portion of the outstanding American Depositary Shares and only those American Depositary Shares will automatically be converted into a right to receive the net proceeds of the Redemption. The Depositary shall allocate the American Depositary Shares converted under the preceding sentence among the Owners pro-rata to their respective holdings of American Depositary Shares immediately prior to the Redemption, <u>except that</u> the allocations may be adjusted so that no fraction of a converted American Depositary Share is allocated to any Owner. A Redemption of all or substantially all of the Deposited Securities shall be a <u>Termination Option Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Depositary is notified of or there occurs any change in nominal value or any subdivision, combination or any other reclassification of the Deposited Securities or any recapitalization, reorganization, sale of assets substantially as an entirety, merger or consolidation affecting the issuer of the Deposited Securities or to which it is a party that is mandatory and binding on the Depositary as a holder of Deposited Securities and, as a result, securities or other property have been or will be delivered in exchange, conversion, replacement or in lieu of, Deposited Securities (a "<u>Replacement</u>"), the Depositary shall, if required, surrender the old Deposited Securities affected by that Replacement of Shares and hold, as new Deposited Securities under the Deposit Agreement, the new securities or other property delivered to it in that Replacement. <u>However</u>, the Depositary may elect to sell those new Deposited Securities if in the opinion of the Depositary it is not lawful or not practical for it to hold those new Deposited Securities under the Deposit Agreement because those new Deposited Securities may not be distributed to Owners without registration under the Securities Act of 1933 or for any other reason, at public or private sale, at such places and on such terms as it deems proper and proceed as if those new Deposited Securities had been Redeemed under paragraph (b) above. A Replacement shall be a <u>Termination Option Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the case of a Replacement where the new Deposited Securities will continue to be held under the Deposit Agreement, the Depositary may call for the surrender of outstanding Receipts to be exchanged for new Receipts specifically describing the new Deposited Securities and the number of those new Deposited Securities represented by each American Depositary Share. If the number of Shares represented by each American Depositary Share decreases as a result of a Replacement, the Depositary may call for surrender of the American Depositary Shares to be exchanged on a mandatory basis for a lesser number of American Depositary Shares and may sell American Depositary Shares to the extent necessary to avoid distributing fractions of American Depositary Shares in that exchange and distribute the net proceeds of that sale to the Owners entitled to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If there are no Deposited Securities with respect to American Depositary Shares, including if the Deposited Securities are cancelled, or the Deposited Securities with respect to American Depositary Shares have become apparently worthless, the Depositary may call for surrender of those American Depositary Shares or may cancel those American Depositary Shares, upon notice to Owners, and that condition shall be a <u>Termination Option Event</u>.

18. LIABILITY
 OF THE COMPANY AND DEPOSITARY.

Neither the Depositary nor the Company nor any of their respective directors, employees, agents or affiliates shall incur any liability to any Owner or Holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if by reason of (A) any provision of any present or future law or regulation or other act or action of the government of the United States, any State of the United States or any other state or jurisdiction, or of any governmental or regulatory authority or stock exchange; (B) (in the case of the Depositary only) any provision, present or future, of the articles of association or similar document of the Company, or by reason of any provision of any securities issued or distributed by the Company, or any offering or distribution thereof; or (C) any event or circumstance, whether natural or caused by a person or persons, that is beyond the ability of the Depositary or the Company, as the case may be, to prevent or counteract by reasonable care or effort (including, but not limited to earthquakes, floods, severe storms, fires, explosions, war, terrorism, civil unrest, labor disputes, criminal acts or outbreaks of infectious disease; interruptions or malfunctions of utility services, Internet or other communications lines or systems; unauthorized access to or attacks on computer systems or websites; or other failures or malfunctions of computer hardware or software or other systems or equipment), the Depositary or the Company is, directly or indirectly, prevented from, forbidden to or delayed in, or could be subject to any civil or criminal penalty on account of doing or performing and therefore does not do or perform, any act or thing that, by the terms of the Deposit Agreement or the Deposited Securities, it is provided shall be done or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for any exercise of, or failure to exercise, any discretion provided for in the Deposit Agreement (including any determination by the Depositary or the Company to take, or not take, any action that the Deposit Agreement provides the Depositary or the Company, as the case may be, may take);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) for the inability of any Owner or Holder to benefit from any distribution, offering, right or other benefit that is made available to holders of Deposited Securities but is not, under the terms of the Deposit Agreement, made available to Owners or Holders; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for any special, consequential or punitive damages for any breach of the terms of the Deposit Agreement.

Where, by the terms of a distribution to which Section 4.1, 4.2 or 4.3 of the Deposit Agreement applies, or an offering to which Section 4.4 of that Agreement applies, or for any other reason, that distribution or offering may not be made available to Owners, and the Depositary may not dispose of that distribution or offering on behalf of Owners and make the net proceeds available to Owners, then the Depositary shall not make that distribution or offering available to Owners, and shall allow any rights, if applicable, to lapse.

Neither the Company nor the Depositary assumes any obligation or shall be subject to any liability under the Deposit Agreement to Owners or Holders, except that they agree to perform their obligations specifically set forth in the Deposit Agreement without negligence or bad faith. The Depositary shall not be a fiduciary or have any fiduciary duty to Owners or Holders. The Depositary shall not be subject to any liability with respect to the validity or worth of the Deposited Securities. Neither the Depositary nor the Company shall be under any obligation to appear in, prosecute or defend any action, suit, or other proceeding in respect of any Deposited Securities or in respect of the American Depositary Shares, on behalf of any Owner or Holder or other person. Neither the Depositary nor the Company shall be liable for any action or non-action by it in reliance upon the advice of or information from legal counsel, accountants, any person presenting Shares for deposit, any Owner or Holder, or any other person believed by it in good faith to be competent to give such advice or information. Each of the Depositary and the Company may rely, and shall be protected in relying upon, any written notice, request, direction or other document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Depositary shall not be liable for any acts or omissions made by a successor depositary whether in connection with a previous act or omission of the Depositary or in connection with a matter arising wholly after the removal or resignation of the Depositary, provided that in connection with the issue out of which such potential liability arises, the Depositary performed its obligations without negligence or bad faith while it acted as Depositary. The Depositary shall not be liable for the acts or omissions of any securities depository, clearing agency or settlement system in connection with or arising out of book-entry settlement of American Depositary Shares or Deposited Securities or otherwise. In the absence of bad faith on its part, the Depositary shall not be responsible for any failure to carry out any instructions to vote any of the Deposited Securities or for the manner in which any such vote is cast or the effect of any such vote. The Depositary shall have no duty to make any determination or provide any information as to the tax status of the Company. Neither the Depositary nor the Company shall have any liability for any tax consequences that may be incurred by Owners or Holders as a result of owning or holding American Depositary Shares. Neither the Depositary nor the Company shall be liable for the inability or failure of an Owner or Holder to obtain the benefit of a foreign tax credit, reduced rate of withholding or refund of amounts withheld in respect of tax or any other tax benefit.

19. RESIGNATION
 AND REMOVAL OF THE DEPOSITARY; APPOINTMENT OF SUCCESSOR CUSTODIAN.

The Depositary may at any time resign as Depositary under the Deposit Agreement by written notice of its election so to do delivered to the Company, to become effective upon the appointment of a successor depositary and its acceptance of such appointment as provided in the Deposit Agreement. The Depositary may at any time be removed by the Company by 90 days' prior written notice of that removal, to become effective upon the later of (i) the 90th day after delivery of the notice to the Depositary and (ii) the appointment of a successor depositary and its acceptance of its appointment as provided in the Deposit Agreement. The Depositary in its discretion may at any time appoint a substitute or additional custodian or custodians.

20. AMENDMENT.

The form of the Receipts and any provisions of the Deposit Agreement may at any time and from time to time be amended by agreement between the Company and the Depositary without the consent of Owners or Holders in any respect which they may deem necessary or desirable. Any amendment that would impose or increase any fees or charges (other than taxes and other governmental charges, registration fees, cable (including SWIFT) or facsimile transmission costs, delivery costs or other such expenses), or that would otherwise prejudice any substantial existing right of Owners, shall, however, not become effective as to outstanding American Depositary Shares until the expiration of 30 days after notice of that amendment has been Disseminated to the Owners of outstanding American Depositary Shares. Every Owner and Holder, at the time any amendment so becomes effective, shall be deemed, by continuing to hold American Depositary Shares or any interest therein, to consent and agree to that amendment and to be bound by the Deposit Agreement as amended thereby. Upon the effectiveness of an amendment to the form of Receipt, including a change in the number of Shares represented by each American Depositary Share, the Depositary may call for surrender of Receipts to be replaced with new Receipts in the amended form or call for surrender of American Depositary Shares to effect that change of ratio. In no event shall any amendment impair the right of the Owner to surrender American Depositary Shares and receive delivery of the Deposited Securities represented thereby, except in order to comply with mandatory provisions of applicable law.

21. TERMINATION
 OF DEPOSIT AGREEMENT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company may initiate termination of the Deposit Agreement by notice to the Depositary. The Depositary may initiate termination of the Deposit Agreement if (i) at any time 60 days shall have expired after the Depositary delivered to the Company a written resignation notice and a successor depositary has not been appointed and accepted its appointment as provided in Section 5.4 of that Agreement or (ii) a Termination Option Event has occurred. If termination of the Deposit Agreement is initiated, the Depositary shall Disseminate a notice of termination to the Owners of all American Depositary Shares then outstanding setting a date for termination (the "<u>Termination Date</u>"), which shall be at least 90 days after the date of that notice, and the Deposit Agreement shall terminate on that Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the Termination Date, the Company shall be discharged from all obligations under the Deposit Agreement except for its obligations to the Depositary under Sections 5.8 and 5.9 of that Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At any time after the Termination Date, the Depositary may sell the Deposited Securities then held under the Deposit Agreement and may thereafter hold uninvested the net proceeds of any such sale, together with any other cash then held by it hereunder, unsegregated and without liability for interest, for the pro rata benefit of the Owners of American Depositary Shares that remain outstanding, and those Owners will be general creditors of the Depositary with respect to those net proceeds and that other cash. After making that sale, the Depositary shall be discharged from all obligations under the Deposit Agreement, except (i) to account for the net proceeds and other cash (after deducting, in each case, the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of such American Depositary Shares in accordance with the terms and conditions of the Deposit Agreement and any applicable taxes or governmental charges), (ii) for its obligations under Section 5.8 of that Agreement and (iii) to act as provided in paragraph (d) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) After the Termination Date, the Depositary shall continue to receive dividends and other distributions pertaining to Deposited Securities (that have not been sold), may sell rights and other property as provided in the Deposit Agreement and shall deliver Deposited Securities (or sale proceeds) upon surrender of American Depositary Shares (after payment or upon deduction, in each case, of the fee of the Depositary for the surrender of American Depositary Shares, any expenses for the account of the Owner of those American Depositary Shares in accordance with the terms and conditions of the Deposit Agreement and any applicable taxes or governmental charges). After the Termination Date, the Depositary shall not accept deposits of Shares or deliver American Depositary Shares. After the Termination Date, (i) the Depositary may refuse to accept surrenders of American Depositary Shares for the purpose of withdrawal of Deposited Securities (that have not been sold) or reverse previously accepted surrenders of that kind that have not settled if in its judgment the requested withdrawal would interfere with its efforts to sell the Deposited Securities, (ii) the Depositary will not be required to deliver cash proceeds of the sale of Deposited Securities until all Deposited Securities have been sold and (iii) the Depositary may discontinue the registration of transfers of American Depositary Shares and suspend the distribution of dividends and other distributions on Deposited Securities to the Owners and need not give any further notices or perform any further acts under the Deposit Agreement except as provided in Section 6.2 of that Agreement.

22. DTC
 DIRECT REGISTRATION SYSTEM AND PROFILE MODIFICATION SYSTEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding the provisions of Section 2.4 of the Deposit Agreement, the parties acknowledge that DTC's Direct Registration System ("<u>DRS</u>") and Profile Modification System ("<u>Profile</u>") apply to the American Depositary Shares upon acceptance thereof to DRS by DTC. DRS is the system administered by DTC that facilitates interchange between registered holding of uncertificated securities and holding of security entitlements in those securities through DTC and a DTC participant. Profile is a required feature of DRS that allows a DTC participant, claiming to act on behalf of an Owner of American Depositary Shares, to direct the Depositary to register a transfer of those American Depositary Shares to DTC or its nominee and to deliver those American Depositary Shares to the DTC account of that DTC participant without receipt by the Depositary of prior authorization from the Owner to register that transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with DRS/Profile, the parties acknowledge that the Depositary will not determine whether the DTC participant that is claiming to be acting on behalf of an Owner in requesting registration of transfer and delivery as described in paragraph (a) above has the actual authority to act on behalf of that Owner (notwithstanding any requirements under the Uniform Commercial Code). For the avoidance of doubt, the provisions of Sections 5.3 and 5.8 of the Deposit Agreement apply to the matters arising from the use of the DRS/Profile. The parties agree that the Depositary's reliance on and compliance with instructions received by the Depositary through the DRS/Profile system and otherwise in accordance with the Deposit Agreement, shall not constitute negligence or bad faith on the part of the Depositary.

23. ARBITRATION;
 SETTLEMENT OF DISPUTES.

Any controversy, claim or cause of action brought by any party to the Deposit Agreement and hereto against the Company arising out of or relating to the Shares or other Deposited Securities, the American Depositary Shares, the Receipts or the Deposit Agreement, or the breach hereof or thereof, if so elected by the claimant, shall be settled by arbitration in accordance with the International Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.

The place of the arbitration shall be The City of New York, State of New York, United States of America, and the language of the arbitration shall be English.

The number of arbitrators shall be three, each of whom shall be disinterested in the dispute or controversy, shall have no connection with any party thereto, and shall be an attorney experienced in international securities transactions. Each party shall appoint one arbitrator and the two arbitrators shall select a third arbitrator who shall serve as chairperson of the tribunal. If a dispute, controversy or cause of action shall involve more than two parties, the parties shall attempt to align themselves in two sides (i.e., claimant(s) and respondent(s)), each of which shall appoint one arbitrator as if there were only two parties to such dispute, controversy or cause of action. If such alignment and appointment shall not have occurred within thirty (30) calendar days after the initiating party serves the arbitration demand, the American Arbitration Association shall appoint the three arbitrators, each of whom shall have the qualifications described above. The parties and the American Arbitration Association may appoint from among the nationals of any country, whether or not a party is a national of that country.

The arbitral tribunal shall have no authority to award any consequential, special or punitive damages or other damages not measured by the prevailing party's actual damages and may not, in any event, make any ruling, finding or award that does not conform to the terms and conditions of the Deposit Agreement.

24. APPOINTMENT
 OF AGENT FOR SERVICE OF PROCESS; SUBMISSION TO JURISDICTION; JURY TRIAL WAIVER; WAIVER OF
 IMMUNITIES.

The Company has (i) appointed Cogency Global Inc., 122 East 42nd Street, 18th Floor, New York, New York 10168 as the Company's authorized agent in the United States upon which process may be served in any suit or proceeding (including any arbitration proceeding) arising out of or relating to the Shares or Deposited Securities, the American Depositary Shares, the Receipts or the Deposit Agreement, (ii) consented and submitted to the jurisdiction of any state or federal court in the State of New York in which any such suit or proceeding may be instituted, and (iii) agreed that service of process upon said authorized agent shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding.

EACH PARTY TO THE DEPOSIT AGREEMENT (INCLUDING, FOR AVOIDANCE OF DOUBT, EACH OWNER AND HOLDER) THEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING AGAINST THE COMPANY AND/OR THE DEPOSITARY DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE SHARES OR OTHER DEPOSITED SECURITIES, THE AMERICAN DEPOSITARY SHARES OR THE RECEIPTS, THE DEPOSIT AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREIN OR THEREIN, OR THE BREACH HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, ANY QUESTION REGARDING EXISTENCE, VALIDITY OR TERMINATION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) AND ANY CLAIM BASED ON U.S. FEDERAL SECURITIES LAWS.

No disclaimer of liability under the United States federal securities laws or the rules and regulations thereunder is intended by any provision of the Deposit Agreement, inasmuch as no person is able to effectively waive the duty of any other person to comply with its obligations under those laws, rules and regulations.

To the extent that the Company or any of its properties, assets or revenues may have or hereafter become entitled to, or have attributed to it, any right of immunity, on the grounds of sovereignty or otherwise, from any duty of performance under the Deposit Agreement, claim, legal action, suit or proceeding, from the giving of any relief in any respect thereof, from setoff or counterclaim, from the jurisdiction of any court, from service of process, from attachment upon or prior to judgment, from attachment in aid of execution or judgment, or other legal process or proceeding for the giving of any relief or for the enforcement of any judgment, in any jurisdiction in which proceedings may at any time be commenced, with respect to its obligations, liabilities or any other matter under or arising out of or in connection with the Shares or Deposited Securities, the American Depositary Shares, the Receipts or the Deposit Agreement, the Company, to the fullest extent permitted by law, hereby irrevocably and unconditionally waives, and agrees not to plead or claim, any such immunity and consents to such relief and enforcement.

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

---

| | |
|:---|:---|
| **Carbon Zero Technologies International Inc.** | **D +852 3656 6054** |
|  | **E nathan.powell@ogier.com** |
|  | **D +852 3656 6023** |
|  | **E janice.chu@ogier.com** |
|  | Reference: NMP/JTC/503760.00002 |

---

26 May 2026

Dear Sirs

**Carbon Zero Technologies International Inc. (the Company)**

We have acted as Cayman Islands counsel to the Company in connection with the Company's registration statement on Form F-1, including all amendments or supplements thereto (the **Registration Statement**), as filed with the United States Securities and Exchange Commission (the **Commission**) under the United States Securities Act of 1933, as amended (the **Act**). The Registration Statement relates to the offering (the **Offering**) of:

(i) 3,335,000
 American Depositary Shares (the **Public ADSs**), each representing 4 Class A Ordinary Shares (as defined in below) (the **ADSs**)
 on a firm commitment basis; and

(ii) an
 option for a period of 45 days after closing of the Offering for the underwriters of the Company (the **Underwriters**) to purchase
 such number of additional ADSs in the amount representing up to fifteen percent (15%) of the Public ADSs sold in the Offering to
 cover over-allotments (together with the Public ADSs, the **IPO ADSs**), if any (the **Over-allotment Option**).

The Company will also be issuing an underwriter purchase option to Ninth Eternity Securities LLC, the representative of the Underwriters (the **UPO**) to purchase such number of ADSs equal to an aggregate of five (5%) percent of the Public ADSs sold in the Offering (the **UPO ADSs**).

In addition, there will be a resale by South Kensington Investment Limited (the **Selling Shareholder**), being an existing shareholder of the Company of (the **Resale**) up to 6,000,000 Class A Ordinary Shares which are presently issued and outstanding, represented by 1,500,000 ADSs (the **Resale ADSs**).

We are furnishing this opinion as Exhibit 5.1, Exhibit 8.1 and Exhibit 23.2 to the Registration Statement.

---

| | | | |
|:---|:---|:---|:---|
| **Ogier**<br> Providing advice on British Virgin Islands, Cayman Islands and Guernsey laws<br>Floor 11 Central Tower<br> 28 Queen's Road Central<br> Central<br> Hong Kong<br>T +852 3656 6000<br> F +852 3656 6001<br> **ogier.com** | **Partners**<br> Nicholas Plowman<br> Nathan Powell<br> Anthony Oakes<br> Oliver Payne<br> Kate Hodson<br> David Nelson<br> Joanne Collett<br> Dennis Li<br> Cecilia Li | Yuki Yan<br> David Lin<br> Alan Wong<br> Janice Chu<br> Zhao Rong Ooi<br> Rachel Huang\*\*<br> Florence Chan\*<sup>‡</sup><br> Richard Bennett\*\*<sup>‡</sup><br> James Bergstrom<sup>‡</sup><br>| \* admitted in New Zealand<br> \*\* admitted in England and Wales<br> <sup>‡</sup> not ordinarily resident in Hong Kong |

---

Page 2 of **6**

Unless a contrary intention appears, all capitalised terms used in this opinion have the respective meanings set forth in the Documents. The headings herein are for convenience only and do not affect the construction of this opinion.

---

| | |
|:---|:---|
| **1** | **Documents examined** |

---

For the purposes of giving this opinion, we have examined copies, or drafts of the following documents (the **Documents**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 certificate of incorporation of the Company dated 13 July 2023 issued by the Registrar of Companies of the Cayman Islands (the **Registrar**)

(b) the
 memorandum and articles of association of the Company as filed with the Registrar on 13 July 2023;

(c) the
 amended and restated memorandum and articles of association of the Company adopted by special resolution dated 7 August 2024 and
 filed with the Registrar on 13 August 2024 (the **Memorandum and Articles**);

(d) a
 certificate of good standing dated 29 April 2026 (the **Good Standing Certificate**) issued by the Registrar in respect of the
 Company;

(e) the
 register of directors of the Company provided to us on 12 May 2026 (the **ROD**);

(f) the
 register of members of the Company provided to us on 30 April 2026 (the **ROM**, and together with the ROD, the **Registers**);

(g) a
 copy of written resolutions of the first directors of the Company dated 13 July 2023;

(h) a
 copy of the written resolutions of all the directors of the Company dated 14 November 2023, 10 January 2025, 22 April 2025 and 12
 May 2026 approving among others, the Company's filing of the Registration Statement and issuance of the IPO ADSs, the UPO ADSs,
 the Underlying Ordinary Shares (as defined in below) and the Resale (together with item (g) above, the **Board Resolutions**);

(i) 21
 copies of application for shares all dated 13 July 2023 signed by each shareholder of the Class A Ordinary Shares and the Class B
 Ordinary Shares (as defined in below);

(j) a
 certificate dated 26 May 2026 as to certain matters of fact signed by a director of the Company (the **Director's Certificate**);

(k) the
 Registration Statement;

(l) the
 draft form of underwriting agreement appended as an exhibit to the Registration Statement (the **Underwriting Agreement**); and

(m) a
 draft form of deposit agreement to be entered among the Company, the depositary named therein (the **Depositary**) and the owners
 and holders of the ADSs issued thereunder and appended as an exhibit to the Registration Statement (the **Deposit Agreement**).

Page 3 of **6**

---

| | |
|:---|:---|
| **2** | **Assumptions** |

---

In giving this opinion we have relied upon the assumptions set forth in this paragraph 2 without having carried out any independent investigation or verification in respect of those assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all
 original documents examined by us are authentic and complete;

(b) all
 copy documents examined by us (whether in facsimile, electronic or other form) conform to the originals and those originals are authentic
 and complete;

(c) all
 signatures, seals, dates, stamps and markings (whether on original or copy documents) are genuine;

(d) each
 of the Good Standing Certificate, the Director's Certificate and the Registers is accurate and complete as at the date of this
 opinion;

(e) all
 copies of the memorandum and articles of association of the Company effective at relevant time provided to us are in full force and
 effect and have not been amended, varied, supplemented or revoked in any respect;

(f) all
 copies of the Registration Statement are true and correct copies and the Registration Statement conform in every material respect
 to the latest drafts of the same produced to us and, where the Registration Statement has been provided to us in successive drafts
 marked-up to indicate changes to such documents, all such changes have been so indicated;

(g) the
 Board Resolutions remain in full force and effect and each of the directors of the Company has acted in good faith with a view to
 the best interests of the Company and has exercised the standard of care, diligence and skill that is required of him or her in approving
 the Offering and the Resale, and no director has a financial interest in or other relationship to a party of the transactions contemplated
 by the Documents which has not been properly disclosed in the Board Resolutions;

(h) no
 invitation has been or will be made by or on behalf of the Company to the public in the Cayman Islands to subscribe for any Ordinary
 Shares and none of the Ordinary Shares have been offered or issued to residents of the Cayman Islands;

(i) the
 Company is, and after the allotment (where applicable) and issuance of any Class A Ordinary Shares and ADSs will be, able to pay
 its liabilities as they fall due; and

(j) there
 is no provision of the law of any jurisdiction, other than the Cayman Islands, which would have any implication in relation to the
 opinions expressed herein.

Page 4 of **6**

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| | |
|:---|:---|
| **3** | **Opinions** |

---

On the basis of the examinations and assumptions referred to above and subject to the limitations and qualifications set forth in paragraph 4 below, we are of the opinion that:

**Corporate status**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company has been duly incorporated as an exempted company with limited liability on 13 July 2023 and is validly existing and in good
 standing under the laws of the Cayman Islands.

**Authorised Share capital**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 authorised share capital of the Company is US$50,000 divided into 4,900,000,000 Class A ordinary
 shares of a nominal or par value of US$0.00001 each (the **Class A Ordinary Shares**);
 and 100,000,000 Class B ordinary shares of a nominal or par value of US$0.00001 each (the **Class B Ordinary Shares**, together with the Class A Ordinary Shares, the **Ordinary Shares**).

**Valid Issuance of Underlying Ordinary Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Class A Ordinary Shares underlying the IPO ADSs (the **Ordinary Shares Underlying the IPO ADSs**) to be issued by the Company as contemplated by the Registration Statement have
 been duly authorised for issue and when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issued
 and allotted by the Company against payment in full of the consideration therefor in accordance
 with the terms set out in the Registration Statement, the Underwriting Agreement, the Deposit
 Agreement and the Memorandum and Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 issuance of the Ordinary Shares Underlying the IPO ADSs has been duly registered in the Company's
 register of members as fully paid shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Depositary or its nominee has been entered in the Company's register of members as
 the holder of the Ordinary Shares Underlying the IPO ADSs in accordance with the Deposit
 Agreement

will be validly issued, fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Class A Ordinary Shares underlying the UPO ADSs (the **Ordinary Shares Underlying the UPO ADSs**, together with the Ordinary Shares Underlying the IPO ADSs, the **Underlying Ordinary Shares**) which are to be issued pursuant to the UPO when the UPO is exercisable under
 the terms of the Underwriting Agreement, have been duly authorised for issue and when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issued
 by the Company upon due exercise of the UPO against payment in full of the consideration
 therefor in accordance with the terms of the Underwriting Agreement, the Deposit Agreement
 and the Company's then effective memorandum and articles of association;

Page 5 of **6**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such
 issuance of the Ordinary Shares Underlying the UPO ADSs has been duly registered in the Company's
 register of members as fully paid shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Depositary or its nominee has been entered in the Company's register of members as
 the holder of the Ordinary Shares Underlying the UPO ADSs in accordance with the Deposit
 Agreement

will be, validly issued, fully paid and non-assessable.

**Valid Issuance of Ordinary Shares Represented by the Resale ADSs**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Class A Ordinary Shares represented by the Resale ADSs for resale by the Selling Shareholder
 have been validly issued, fully paid and are non-assessable.

**Registration Statement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 statements contained in the Registration Statement which pertain to Cayman Islands law, including
 without limitation, in the sections headed "Cayman Islands Taxation", "Description
 of Share Capital" and "Enforceability of Civil Liabilities", in so far
 as they purport to summarise the laws or regulations of the Cayman Islands, are accurate
 in all material respects and that such statements constitute our opinion.

---

| | |
|:---|:---|
| **4** | **Limitations and Qualifications** |

---

4.1 We
 offer no opinion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as
 to any laws other than the laws of the Cayman Islands, and we have not, for the purposes
 of this opinion, made any investigation of the laws of any other jurisdiction, and we express
 no opinion as to the meaning, validity, or effect of references in the Documents to statutes,
 rules, regulations, codes or judicial authority of any jurisdiction other than the Cayman
 Islands; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except
 to the extent that this opinion expressly provides otherwise, as to the commercial terms
 of, or the validity, enforceability or effect of the Registration Statement, the accuracy
 of representations, the fulfilment of warranties or conditions, the occurrence of events
 of default or terminating events or the existence of any conflicts or inconsistencies among
 the Registration Statement and any other agreements into which the Company may have entered
 or any other documents.

4.2 Under
 the Companies Act (Revised) (**Companies Act**) of the Cayman Islands annual returns in
 respect of the Company must be filed with the Registrar, together with payment of annual
 filing fees. A failure to file annual returns and pay annual filing fees may result in the
 Company being struck off the Register of Companies, following which its assets will vest
 in the Financial Secretary of the Cayman Islands and will be subject to disposition or retention
 for the benefit of the public of the Cayman Islands.

4.3 In **good standing** means only that as of the date of the Good Standing Certificate, the
 Company is up-to-date with the filing of its annual returns and payment of annual fees with
 the Registrar. We have made no enquiries into the Company's good standing with respect
 to any filings or payment of fees, or both, that it may be required to make under the laws
 of the Cayman Islands other than the Companies Act.

Page 6 of **6**

---

| | |
|:---|:---|
| **5** | **Governing law of this opinion** |

---

5.1 This
 opinion is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) governed
 by, and shall be construed in accordance with, the laws of the Cayman Islands;

(b) limited
 to the matters expressly stated in it; and

(c) confined
 to, and given on the basis of, the laws and practice in the Cayman Islands at the date of
 this opinion.

5.2 Unless
 otherwise indicated, a reference to any specific Cayman Islands legislation is a reference
 to that legislation as amended to, and as in force at, the date of this opinion.

---

| | |
|:---|:---|
| **6** | **Reliance** |

---

6.1 We
 hereby consent to the filing of this opinion as an exhibit to the Registration Statement
 and to the reference to our firm under the headings "*Taxation* ", "*Enforceability of Civil Liabilities*" and "*Legal Matters*" of the Registration
 Statement. In giving such consent, we do not believe that we are "experts" within
 the meaning of such term used in the Act or the rules and regulations of the Commission issued
 thereunder with respect to any part of the Registration Statement, including this opinion
 as an exhibit or otherwise.

6.2 This
 opinion may be used only in connection with the Offering, the UPO, the IPO ADSs, the UPO
 ADSs, the Underlying Ordinary Shares and the Resale of the Resale ADSs while the Registration
 Statement is effective.

Yours faithfully

![](ex5-1_002.jpg)

**Ogier**

## Exhibit 5.2

**Exhibit 5.2**

![](ex5-2_001.jpg)

May 26, 2026

Carbon Zero Technologies International Inc.

8 Eu Tong Sen Street, #16-81

The Central, Singapore，059818

Tel: +65 6592 7626

RE: **<u>Carbon Zero Technologies International Inc.</u>**

Ladies and Gentlemen:

We are acting as U.S. counsel to Carbon Zero Technologies International Inc., a company incorporated in the Cayman Islands (the "Company"), with reference being made herein to the Registration Statement on Form F-1 (Registration No. 333-280115) filed by the Company, with the Securities and Exchange Commission (the "Commission") under the Securities Act of 1933, as amended (the "Securities Act"), including the prospectus and all amendments and supplements thereto (the "Registration Statement"), relating to the registration of (i) Class A ordinary shares, par value US$0.00001 per share, of the Company, which will be represented by American depositary shares ("ADSs") evidenced by American depositary receipts, (ii) an underwriter purchase option to purchase up to 5% of the ADSs sold in the offering to be issued to the underwriter(s) (the "Underwriter Purchase Option"), and (iii) the ADSs issuable upon exercise of the Underwriter Purchase Option.

In connection with this opinion letter, we have examined originals, or copies certified or otherwise identified to our satisfaction, of (i) the Registration Statement, (ii) the form of the Underwriter Purchase Option, and (iii) such other documents and records as we have deemed necessary. With respect to such examination, for the purposes of the opinion expressed herein, we have assumed (without investigation) the genuineness of all signatures, the legal capacity of all natural persons, the correctness of all certificates, the authenticity of the documents submitted to us as originals, the conformity with the originals of all documents submitted to us as certified, facsimile or photostatic copies and the authenticity of the originals of all documents submitted to us as copies. We have assumed that the Company has the requisite legal power and authority under the law of the Cayman Islands to execute and deliver the Underwriter Purchase Option and perform its obligations thereunder. In addition, in rendering this opinion, we assumed that the securities issuable under the Underwriter Purchase Option were or will be offered in the manner and on the terms identified or referred to in the Registration Statement, including all amendments thereto.

We are admitted to practice in the State of New York. In rendering this opinion, our examination of matters of law have been limited to, and we express no opinion as to the laws of any state or jurisdiction other than, (i) the applicable laws of the State of New York and (ii) federal securities laws of the United States of America ((i) and (ii) together, "Applicable Law"). We express no opinion concerning any matters respecting or affected by any laws other than Applicable Law that a lawyer in New York exercising customary professional diligence would reasonably recognize as being directly applicable to the transactions contemplated by the Underwriter Purchase Option.

![](ex5-2_002.jpg)

Australia \| Canada \| China \| Colombia \| France \| Germany \| Israel \| Morocco \| Poland

Russia \| South Korea \| United Arab Emirates \| United Kingdom \| United States

1 \| PAGE

Based upon the foregoing, we are of the opinion that to the extent governed by Applicable Law, the Underwriter Purchase Option has been duly authorized and, when executed, registered and delivered and paid for in the manner contemplated by the Registration Statement, will constitute valid and legally binding obligations of the Company.

The foregoing opinion is qualified to the extent that (a) enforceability may be limited by and be subject to general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law (including, without limitation, concepts of notice and materiality), and by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' and debtors' rights generally (including, without limitation, any state or federal law in respect of fraudulent transfers); and (b) no opinion is expressed herein as to compliance with or the effect of federal or state securities or blue sky laws.

This opinion has been prepared for use in connection with the Registration Statement.

You are separately receiving an opinion from your Cayman Islands counsel, Ogier, with respect to the corporate proceedings, validity of the securities and such other matters set forth therein relating to the securities issuable pursuant to the Underwriter Purchase Option.

We hereby consent to the use of this opinion as an exhibit to the Registration Statement on the date hereof, to the use of our name as your U.S. counsel and to all references made to us in the Registration Statement and in the prospectus forming a part thereof. In giving this consent, we do not hereby admit that we are in the category of persons whose consent is required under Section 7 of the Act, or the rules and regulations promulgated thereunder.

---

| |
|:---|
| Very truly yours, |
| /s/ Rimon P.C. |
| **Rimon P.C.** |

---

---

| | |
|:---|:---|
| ![](ex5-2_003.jpg)<br>| 400 Madison Ave, Suite 11D, New York, NY 10017 \| 212.515.9979<br> 800 Oak Grove Avenue, Suite 250, Menlo Park, CA 94025 \| 415.869.7180 |

---

2 \| PAGE

## Exhibit 21.1

**Exhibit 21.1**

**Carbon Zero Technologies International Inc.**

**Subsidiaries of the Registrant**

---

| | |
|:---|:---|
| **Subsidiaries** | **Place of Incorporation** |
| Carbon Zero Technologies (Hong Kong) Limited. | Hong Kong |
| Carbon Source Technologies (Hong Kong) Limited. | Hong Kong |
| Beijing Bgreen Technology Development Co. Ltd. | China |
| Shenzhen Carbon Zero Technology Co. Ltd. | China |
| Shenzhen ABGreen Environmental Protection Technology Co., Ltd. (including Shenzhen ABGreen |  |
| Environmental Protection Technology Co., Ltd Liaoning Branch) | China |
| Shenzhen Green Blue Environmental Protection Technology Co., Ltd. | China |
| ABGreen (Fuyang) Environmental Protection Technology Co., Ltd. | China |
| Guangxi Meijin Environmental Protection Technology Co., Ltd. | China |
| Ankang ABGreen Environmental Protection Technology Co. Ltd. | China |
| Shenzhen ABGreen Reverse Supply Chain Co., Ltd. | China |
| Henan Jinyou Metal Technology Co. Ltd. | China |
| Zhoukou Senbo Environmental Protection Technology Co., Ltd. | China |
| Xieguan Tonglian (Shenzhen) Technology Co., Ltd. | China |
| Shenzhen Yize Environmental Protection Technology Co., Ltd. | China |
| Shenzhen Bgreen Environmental Technology Co., Ltd. | China |
| Shenzhen Carbon Poly Digital Technology Co., Ltd. | China |
| Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd. | China |
| Beijing Guoxun Renewable Resources Co., Ltd. | China |
| Gongqingcheng Yadannuo Environmental Technology Co., Ltd. | China |
| Jiangxi Jingchuang Metal Manufacturing Co., Ltd. | China |
| Hubei Carbon Link Recycling Technology Co., Ltd. | China |
| Henan ABGreen Environmental Protection Technology Co., Ltd. | China |
| Jiangxi Qi Hong New Material Technology Co., Ltd. | China |
| Jushang (Hebei) Renewable Resources Co., Ltd. | China |
| Guangdong Bo Green Investment Co., Ltd. | China |
| Zhoukou Bgreen Environmental Protection Technology Co., Ltd. | China |
| Hunan ABGreen Environmental Protection Technology Co. Ltd. | China |
| Quanzhou Qinghe Environmental Protection Technology Co., Ltd. | China |
| Carbon Baike (Beijing) Environmental Protection Technology Co., Ltd. | China |
| Anhui ABGreen Environmental Protection Technology Co. Ltd. | China |
| Henan Zhicheng Industrial Park Management Co., Ltd. | China |
| Henan Bgreen Resources and Environment Co., Ltd. | China |

---

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

**<u>Independent Registered Public Accounting Firm's Consent</u>**

We consent to the use in this Registration Statement on Form F-1 of our report dated May 26, 2026 relating to the financial statements of Carbon Zero Technologies International Inc. appearing in this Registration Statement. We also consent to the reference to us under the heading "Experts" in such Registration Statement.

/s/ Marcum Asia CPAs LLP

Marcum Asia CPAs LLP

Guangzhou, China

May 26, 2026

GUANGZHOU OFFICE • Ste.1601 • CTF Finance Center • 6 Pearl River East Rd. • Pearl River New Town • Tianhe Dist. • Guangzhou • 510623

Phone 8620.3877.0819 • Fax 8620.8072.0039 • www.marcumasia.com

## Exhibit 23.4

**Exhibit 23.4**

![](ex23-4_001.jpg)

## Exhibit 99.1

**Exhibit 99.1**

May 26, 2026

**To: Carbon Zero Technologies International Inc. (the "Company")**

8 Eu Tong Sen Street, #16-81

The Central, Singapore，059818

Tel: +65 6592 7626

**Dear Sir/Madam,**

We are qualified lawyers of the People's Republic of China (the "**PRC**" or "**China**", which, for the purpose of this opinion only, excluding Hong Kong Special Administration Region, Macau Special Administration Region and Taiwan region) and as such are qualified to issue this opinion with respect to laws and regulations of the PRC currently in force and publicly available as of the date hereof (hereinafter referred to as the "**PRC Laws**").

We are acting as PRC legal counsel to the Company in connection with (i) the proposed initial public offering (the "**Offering**") of certain number of American Depositary Shares of the Company (the "**ADSs**") , each representing a certain number of Class A ordinary shares (the "**Ordinary Shares**") of the Company, as set forth in the Company's registration statement on Form F-1, including all amendments or supplements thereto (the "**Registration Statement**"), filed by the Company with the United States Securities and Exchange Commission (the "**SEC**") in relation to the Offering and (ii) the proposed listing of the ADSs on the NASDAQ Global Market (the "**Listing**").

**A. Documents and Assumptions**

For the purpose of giving this opinion, we have carried out due diligence and examined copies of the Registration Statement and other documents (collectively the "**Documents**") as we have deemed necessary and appropriate as a basis for the opinions hereinafter set forth. Where certain facts were not independently established and verified by us, we have relied upon certificates or statements issued or made by the relevant Governmental Agencies (as defined below), and appropriate representatives of the Company and the PRC Subsidiaries (as defined below). In delivering this opinion, we have made the following assumptions (the "**Assumptions**"):

(a) the
 genuineness of all the signatures, seals and chops;

(b) the
 authenticity of the Documents submitted to us as originals and the conformity to the originals of the Documents submitted to us as
 copies;

(c) the
 truthfulness, accuracy and completeness of all Documents of or in connection with the Company and the PRC Subsidiaries as they were
 presented to us;

(d) that
 the Documents which have been presented to us remain in full force and effect as of the date hereof and have not been revoked, amended,
 varied or supplemented, except as noted therein;

(e) in
 response to our due diligence inquiries, requests and investigation for the purpose of this opinion, all the relevant information
 and materials that have been provided to us by the Company and the PRC Subsidiaries, including all factual statements in the Documents
 and all other factual information provided to us by the Company and the PRC Subsidiaries, and the statements made by the Company
 and the PRC Subsidiaries and relevant government officials, are true, accurate, complete and not misleading, and that the Company
 and PRC Subsidiaries has not withheld anything that, if disclosed to us, would reasonably cause us to alter this opinion in whole
 or in part. Where important facts were not independently established to us, we have relied upon certificates issued by governmental
 authorities and officers or representatives of the Company and/or other relevant entities and/or upon representations made by such
 persons in the course of our inquiry and consultation;

(f) that
 all parties to the Documents provided to us in connection with this opinion, other than the PRC Subsidiaries, have the requisite
 power and authority to enter into, and have duly executed, delivered and/or issued those documents to which they are parties, and
 have the requisite power and authority to perform their obligations thereunder;

(g) that
 all Governmental Authorizations and other official statement or documentation were obtained from competent Governmental Agencies
 by lawful means and all explanations and interpretations provided by government officials duly reflect the official position of the
 relevant Governmental Agencies and are complete, true and correct; and

(h) with
 respect to all parties, the due compliance with, and the legality, validity, effectiveness and enforceability under, all laws other
 than the laws of the PRC.

In giving this opinion, we have assumed and have not verified the accuracy as to financial or auditing matters of each Document we have reviewed, and have relied upon opinions or reports issued by overseas legal advisers, auditors and reporting accountants of the Company.

We do not purport to be experts on and do not purport to be generally familiar with or qualified to express legal opinions on any laws other than the laws of the PRC and accordingly express no legal opinion herein on any laws of any jurisdiction other than the PRC.

**B. Definitions**

In addition to the terms defined in the context of this opinion, the following capitalized terms used in this opinion shall have the meanings ascribed to them as follows:

---

| | |
|:---|:---|
| "**CSRC**" | means the China Securities Regulatory Commission. |
| "**Governmental Agencies**" | means any competent government authorities, agencies, courts, arbitration commissions, or regulatory bodies of the PRC or any province, autonomous region, city or other administrative division of the PRC. |
| "**Governmental Authorizations**" | means any approval, consent, waiver, order, sanction, certificate, authorization, filing, declaration, disclosure, registration, exemption, permission, endorsement, annual inspection, clearance, qualification, permit or license by, from or with any Governmental Agencies pursuant to any PRC Laws. |
| "**Overseas Listing Filing Rules**" | means, collectively, the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, and No.1 to No.7 Supporting Guidance Rules, which were promulgated by CSRC (No. 1 to No. 5) on February 17, 2023 and came into effect on March 31, 2023, No. 6 was promulgated on May 16, 2023 and came into effect on the same day, No. 7 was promulgated on May 7, 2024. |
| "**M&A Rules**" | means the Rules on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, which were jointly promulgated on August 8, 2006 by six Governmental Agencies, namely, the Ministry of Commerce, the State Assets Supervision and Administration Commission, the State Administration for Taxation, the State Administration for Industry and Commerce, the CSRC and the State Administration of Foreign Exchange, became effective on September 8, 2006 and were amended on June 22, 2009. |
| "**PRC Laws**" | means all applicable national, provincial and local laws, regulations, rules, notices, orders, decrees and judicial interpretations of the PRC currently in effect and publicly available on the date of this opinion. |
| "**PRC Subsidiaries**" | mean any and all PRC Subsidiaries as listed in Schedule I hereto. |
| "**Registration Statement**" | means the Company's registration statement on Form F-1, including all amendments or supplements there to, filed by the Company with the SEC under the Act in relation to the Offering, including the preliminary prospectus, as amended or supplemented, that forms part of the registration statement. |

---

**C. Opinions**

Based on the foregoing and subject to the qualifications set out below, we are of the opinion that:

1. *Corporate Structure.* Based on our understanding of the current PRC Laws, the ownership structures
 of consolidated equity of the PRC Subsidiaries, both currently and immediately after giving
 effect to the Offering, do not and will not contravene any applicable PRC Laws currently
 in effect.

2. *M&A Rules.* The M&A Rules came into effect on September 8, 2006, and were amended on June
 22, 2009. Based on our understanding of the explicit provisions under PRC Laws, except as
 disclosed in the Registration Statement, a prior approval from the CSRC as required under
 the M&A Rules is not required for the Offering. However, uncertainties still exist as
 to how the M&A rules will be interpreted or implemented and our opinion stated above
 is subject to any new laws, rules and regulations or detailed implementation and interpretation
 in any form relating to the M&A rules.

3. *Overseas Listing Filing Rules.* Pursuant to the Overseas Listing Filing Rules, the Company is required
 to complete the filing procedure before the Offering. The Company has submitted a filing
 with the CSRC with respect to the Offering on November 20, 2023. On May 30, 2024, the CSRC
 published a Filing Completion Notice on the CSRC's official website, confirming that
 the Company has completed the filing procedures with the CSRC under the Overseas Listing
 Filing Rules. Pursuant to the requirements of the Filing Completion Notice, if the Company
 fail to complete the overseas offering and listing within 12 months from the date of issuance
 of such notice and intend to continue with the listing process, the Company shall update
 the filing materials.

4. *Taxation.* The statements made in the Registration Statement under the sections entitled "Taxation—PRC
 Taxation", with respect to the PRC tax laws and regulations, are correct and accurate
 in all material respects.

5. *Enforceability of Civil Procedures.* There is uncertainty as to whether PRC courts would (i) recognize
 or enforce judgments of United States courts obtained against the Company or its directors
 or officers predicated upon the civil liability provisions of the securities laws of the
 United States or any state in the United States, or (ii) entertain original actions brought
 in each respective jurisdiction against the Company or its directors or officers predicated
 upon the securities laws of the United States or any state in the United States. The recognition
 and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law.
 PRC courts may recognize and enforce foreign judgments in accordance with the requirements
 of PRC Civil Procedures Law based either on treaties between China and the jurisdiction where
 the judgment is made or on principles of reciprocity between jurisdictions. China does not
 have any treaties or other form of reciprocity with the United States or the Cayman Islands
 that provide for the reciprocal recognition and enforcement of foreign judgments. In addition,
 according to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment
 against a company or its directors and officers if they decide that the judgment violates
 the basic principles of PRC law or national sovereignty, security or public interest. As
 a result, it is uncertain whether and on what basis a PRC court would enforce a judgment
 rendered by a court in the United States or the Cayman Islands.

6. *PRC Laws.* To the best of our knowledge after due and reasonable inquiry, the statements in
 the Registration Statement on the cover page and under the captions "Prospectus Summary",
 "Risk Factors", "Enforceability of Civil Liabilities", "Regulations",
 "Use of Proceeds", "Taxation", and "Legal Matters", to
 the extent that they describe or summarize matters of the PRC Laws, are true, accurate and
 correct in all material respects, and nothing has come to our attention, insofar as the PRC
 Laws are concerned, that causes us to believe that there is any omission from such statements
 which causes such statements misleading in any material respect.

**D. Qualifications**

The foregoing opinions are subject to the following qualifications (the "**Qualifications**"):

(a) Our
 opinions are limited to PRC Laws of general application on the date hereof. We have made
 no investigation of, and do not express or imply any views on, the laws of any jurisdiction
 other than the PRC, and we have assumed that no such other laws would affect our opinions
 expressed above.

(b) PRC
 Laws referred to herein are laws and regulations publicly available and currently in force
 on the date hereof and there is no guarantee that any of such laws and regulations, or the
 interpretation or enforcement thereof, will not be changed, amended or revoked in the future
 with or without retrospective effect.

(c) Our
 opinions are subject to (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
 moratorium or similar laws in the PRC affecting creditors' rights generally, and (ii)
 possible judicial or administrative actions or any PRC Laws affecting creditors' rights.

(d) Our
 opinions are subject to the effects of (i) certain legal or statutory principles affecting
 the enforceability of contractual rights generally under the concepts of public interests,
 social ethics, national security, good faith, fair dealing, and applicable statutes of limitation;
 (ii) any circumstance in connection with the formulation, execution or performance of any
 legal documents that would be deemed materially mistaken, clearly unconscionable, fraudulent,
 coercionary or concealing illegal intentions with a lawful form; (iii) judicial discretion
 with respect to the availability of specific performance, injunctive relief, remedies or
 defenses, or the calculation of damages; and (iv) the discretion of any competent PRC legislative,
 administrative or judicial bodies in exercising their authority in the PRC.

(e) This
 opinion is issued based on our understanding of PRC Laws. For matters not explicitly provided
 under PRC Laws, the interpretation, implementation and application of the specific requirements
 under PRC Laws, as well as their application to and effect on the legality, binding effect
 and enforceability of certain contracts, are subject to the final discretion of competent
 PRC legislative, administrative and judicial authorities. Under PRC Laws, foreign investment
 is restricted in certain industries. The interpretation and implementation of these laws
 and regulations, and their application to and effect on the legality, binding effect and
 enforceability of contracts and transactions contemplated thereunder, are subject to the
 discretion of the competent Governmental Agency.

(f) The
 term "enforceable" or "enforceability" as used in this opinion means
 that the obligations assumed by the relevant obligors under the relevant Documents are of
 a type which the courts of the PRC may enforce. It does not mean that those obligations will
 necessarily be enforced in all circumstances in accordance with their respective terms and/or
 additional terms that may be imposed by the courts. As used in this opinion, the expression
 "to the best of our knowledge after due inquiry" or similar language with reference
 to matters of fact refers to the current, actual knowledge of the attorneys of this firm
 who have worked on matters for the Company in connection with the Offering and the transactions
 contemplated thereby. We may rely, as to matters of fact (but not as to legal conclusions),
 to the extent we deem proper, on certificates and confirmations of responsible officers of
 the Company, the PRC Subsidiaries and Governmental Agencies.

(g) We
 have not undertaken any independent investigation, search or other verification action to
 determine the existence or absence of any fact or to prepare this opinion, and no inference
 as to our knowledge of the existence or absence of any fact should be drawn from our representation
 of the Company or the PRC Subsidiaries or the rendering of this opinion.

(h) This
 opinion is intended to be used in the context which is specifically referred to herein; each
 paragraph shall be construed as a whole and no part shall be extracted and referred to independently.

This opinion is strictly limited to the matters stated herein and no opinion is implied or may be inferred beyond the matters expressly stated herein. The opinions expressed herein are rendered only as of the date hereof, and we assume no responsibility to advise you of facts, circumstances, events or developments that hereafter may be brought to our attention and that may alter, affect or modify the opinion expressed herein.

We hereby consent to the use of this opinion in, and the filing hereof as an exhibit to the Registration Statement, and to the reference to our name in such Registration Statement.

Yours faithfully, <br>   <br> Zhong Lun Law Firm

**SCHEDULE I**

**PRC SUBSIDIARIES**

---

| | | | |
|:---|:---|:---|:---|
| **No.** | **Company** | **Date of**<br> **Incorporation** | **Percentage of Economic<br> Ownership** |
| 1 | Shenzhen ABGreen Reverse Supply Chain Co., Ltd (ABGreen Shenzhen RSC) | August 2, 2013 | 51.00% by ABGreen Shenzhen |
| 2 | Shenzhen ABGreen Environmental Protection Technology Co., Ltd (ABGreen Shenzhen) | March 23, 2016 | 75.00% by CZTI Shenzhen |
| 3 | Henan Jinyou Metal Technology Co., Ltd (Jinyou Metal) | March 10, 2021 | 51.00% by ABGreen Shenzhen |
| 4 | Zhoukou Senbo Environmental Protection Technology Co., Ltd (Zhoukou Senbo) | September 28, 2021 | 53.00% by ABGreen Shenzhen |
| 5 | Jiangxi Jingchuang Metal Manufacturing Co., Ltd | March 18, 2022 | 51.00% by Carbon Source Technologies (Hong Kong) Limited |
| 6 | Jushang (Hebei) Renewable Resources Co., Ltd. | March 24, 2022 | 51.00% by Shenzhen Chuangzhiyuan |
| 7 | Shenzhen Carbon Zero Technology Co., Ltd (CZTI Shenzhen) | June 7, 2022 | 100.00% by CZTI WFOE |
| 8 | ABGreen (Fuyang) Environmental Protection Technology Co., Ltd (ABGreen Fuyang) | June 8, 2022 | 51.00% by ABGreen Shenzhen |
| 9 | Ankang ABGreen Environmental Protection Technology Co., Ltd (ABGreen Ankang) | June 8, 2022 | 51.00% by ABGreen Shenzhen |
| 10 | Zhoukou BoGreen Environmental Protection Technology Co., Ltd. | January 5, 2023 | 53.00% by Zhoukou Senbo |
| 11 | Shenzhen Green Blue Environmental Protection Technology Co., Ltd （Shenzhen Green Blue） | March 2, 2023 | 100.00% by Xieguan Tonglian |
| 12 | Beijing Bgreen Technology Development Co., Ltd (CZTI WFOE) | August 30, 2023 | 100.00% by Carbon Zero Technologies (Hong Kong) Limited |
| 13 | Guangxi Meijin Environmental Protection Technology Co., Ltd （Guangxi Meijin ） | April 16, 2024 | 51.00% by ABGreen Shenzhen |
| 14 | Xieguan Tonglian (Shenzhen) Technology Co., Ltd (Xieguan Tonglian) | January 19, 2024 | 100.00% by Carbon Zero Technologies (Hong Kong) Limited |
| 15 | Shenzhen Carbon Poly Digital Technology Co., Ltd (Shenzhen Digital) | February 1, 2024 | 100.00% by Xieguan Tonglian |
| 16 | Shenzhen Yize Environmental Protection Technology Co., Ltd (Shenzhen Yize) | February 1, 2024 | 100.00% by Xieguan Tonglian |
| 17 | Shenzhen Bgreen Environmental Technology Co., Ltd (Shenzhen Bgreen) | February 4, 2024 | 100.00% by Xieguan Tonglian |
| 18 | Beijing Guoxun Renewable Resources Co., Ltd (Beijing Guoxun) | May 31, 2024 | 51.00% by Shenzhen Digital |
| 19 | Chuangzhiyuan Environmental Holding (Shenzhen) Co., Ltd (Shenzhen Chuangzhiyuan) | March 20, 2024 | 65.00% by Carbon Zero Technologies (Hong Kong) Limited |
| 20 | Jiangxi Qihong New Materials Technology Co., Ltd. | July 15, 2024 | 51.00% by Carbon Source Technologies (Hong Kong) Limited |
| 21 | Guangdong Bo Green Investment Co., Ltd. | September 27, 2024 | 67.00% by Shenzhen Chuangzhiyuan |
| 22 | Gongqingcheng Yadanuo Environmental Technology Co., Ltd. | October 9, 2024 | 51.00% by Carbon Source Technologies (Hong Kong) Limited |
| 23 | Henan ABGreen Environmental Protection Technology Co., Ltd. | April 3, 2025 | 51.00% by Carbon Source Technologies (Hong Kong) Limited |
| 24 | Hubei Carbon Link Recycling Technology Co., Ltd. | February 24, 2025 | 100.00% by Carbon Source Technologies (Hong Kong) Limited |
| 25 | Henan Zhicheng Industrial Park Management Co., Ltd. | October 22, 2025 | 51.00% by Shenzhen Yize |
| 26 | Carbon Baike (Beijing) Environmental Protection Technology Co., Ltd. | November 13, 2025 | 51.00% by Shenzhen Digital |
| 27 | Hunan ABGreen Environmental Technology Co. Ltd | December 24, 2025 | 100.00% by ABGreen Shenzhen |
| 28 | Quanzhou Qinghe Environmental Protection Technology Ltd. | December 26, 2025 | 100.00% by ABGreen Shenzhen |
| 29 | Henan Bolv Resources and Environment Co., Ltd. | January 28, 2026 | 100.00% by ABGreen Shenzhen |
| 30 | Anhui ABGreen Environmental Protection Technology Co., Ltd. | March 3, 2026 | 100.00% by ABGreen Shenzhen |
| 31 | Shanghai Rikewo Recycled Resources Co., Ltd. | April 8, 2026 | 100.00% by Zhoukou Senbo |

---

## Exhibit 99.6

**Exhibit 99.6**

**Consent of Ho Ka Chun**

In connection with the filing by Carbon Zero Technologies International Inc. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of Carbon Zero Technologies International Inc. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

---

| |
|:---|
| Dated: May 18, 2026 |
| */s/ Ho Ka Chun* |
| Ho Ka Chun |

---

## Exhibit 99.7

**Exhibit 99.7**

**Consent of Victor Ten Tian Hock**

In connection with the filing by Carbon Zero Technologies International Inc. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of Carbon Zero Technologies International Inc. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

---

| |
|:---|
| Dated: May 18, 2026 |
| */s/ Victor Ten Tian Hock* |
| Victor Ten Tian Hock |

---

## Exhibit 99.8

**Exhibit 99.8**

**Consent of Kenneth Charles Rumph**

In connection with the filing by Carbon Zero Technologies International Inc. of the Registration Statement on Form F-1 with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the "Securities Act"), I hereby consent, pursuant to Rule 438 of the Securities Act, to being named as a nominee to the board of directors of Carbon Zero Technologies International Inc. in the Registration Statement and any and all amendments and supplements thereto. I also consent to the filing of this consent as an exhibit to such Registration Statement and any amendments thereto.

---

| |
|:---|
| Dated: May 18, 2026 |
| */s/ Kenneth Charles Rumph* |
| Kenneth Charles Rumph |

---

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEES

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Calculation of Filing Fee Tables**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **F-1**  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Carbon Zero Technologies International Inc.**  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Type**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Security Class Title**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Calculation or Carry Forward Rule**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Maximum Aggregate Offering Price**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Fee Rate**  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Amount of Registration Fee**  |
| **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** | **Newly Registered Securities** |
| Fees to be Paid | 1 | Equity | Class A ordinary shares, $0.00001 par value per share, represented by ADSs | 457(o) | $46023000.00 | 0.0001381 | $6355.78 |
| Fees to be Paid | 2 | Equity | Class A ordinary shares issuable upon exercise of the Underwriter Purchase Option, represented by ADSs | 457(o) | $2301150.00 | 0.0001381 | $317.79 |
| Fees to be Paid | 3 | Equity | Class A ordinary shares, $0.0001 par value per share, represented by ADSs (Selling Shareholder resale) | 457(o) | $18000000.00 | 0.0001381 | $2485.80 |
| Fees Previously Paid |  |  |  |  |  |  |  |
| **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** | **Carry Forward Securities** |
| Carry Forward Securities |  |  |  |  |  |  |  |
|  |  |  | Total Offering Amounts: | Total Offering Amounts: | $66324150.00  |  | $9159.37  |
|  |  |  | Total Fees Previously Paid:  | Total Fees Previously Paid:  |  |  | $0.00  |
|  |  |  | Total Fee Offsets:  | Total Fee Offsets:  |  |  | $9159.37  |
|  |  |  | Net Fee Due:  | Net Fee Due:  |  |  | $0.00  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Offering Note** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> American depositary shares issuable upon deposit of Class A ordinary shares registered hereby will be registered under a separate registration statement on Form F-6 (Registration No. 333-284724). Each American depositary share represents four (4) Class A ordinary shares. Estimated solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). Includes Class A ordinary shares represented by ADSs that may be purchased by the Underwriter pursuant to its option to purchase additional ADSs to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price. Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of ordinary shares as may be issued after the date hereof as a result of stock splits, stock dividends or similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> American depositary shares issuable upon deposit of Class A ordinary shares registered hereby will be registered under a separate registration statement on Form F-6 (Registration No. 333-284724). Each American depositary share represents four (4) Class A ordinary shares. Estimated solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). Includes Class A ordinary shares represented by ADSs that may be purchased by the Underwriter pursuant to its option to purchase additional ADSs to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price. Pursuant to Rule 457(g) under the Securities Act, because the Registrant's Class A ordinary shares represented by ADSs underlying the Underwriter Purchase Option (defined below) are registered hereby, no separate registration fee is required with respect to the Underwriter Purchase Option registered hereby. Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act. The underwriter purchase option granted to the Representative to purchase a number of ADSs equal to five percent (5%) of the total number of ADSs sold in this offering at an exercise price equal to one hundred and ten percent (110%) of the public offering price of the ADSs sold in this offering (the "Underwriter Purchase Option"). As estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(g) under the Securities Act, the proposed maximum aggregate offering price of the Representative's underwriter purchase option is equal to 110% of $2,301,150 (which is 5% of the proposed maximum aggregate offering price of $46,023,000). Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of ordinary shares as may be issued after the date hereof as a result of stock splits, stock dividends or similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>3</sup> American depositary shares issuable upon deposit of Class A ordinary shares registered hereby will be registered under a separate registration statement on Form F-6 (Registration No. 333-284724). Each American depositary share represents four (4) Class A ordinary shares. Estimated solely for the purpose of calculating the amount of the registration fee in accordance with Rule 457(o) under the Securities Act of 1933, as amended (the "Securities Act"). Includes Class A ordinary shares represented by ADSs that may be purchased by the Underwriter pursuant to its option to purchase additional ADSs to cover over-allotments, if any. Calculated pursuant to Rule 457(o) based on an estimate of the proposed maximum aggregate offering price. Reflects the resale by the Selling Shareholders set forth herein of up to 6,000,000 Class A ordinary shares. Pursuant to Rule 416 under the Securities Act, the securities being registered hereunder include such indeterminate number of additional shares of ordinary shares as may be issued after the date hereof as a result of stock splits, stock dividends or similar transactions.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | Registrant or Filer Name | Form or Filing Type | File Number | Initial Filing Date | Filing Date | Fee Offset Claimed | Fee Paid with Fee Offset Source |
| **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** | **Rules 457(b) and 0-11(a)(2)** |
| Fee Offset Claims | 1 |  | F-1 | 333-280115 | 06/11/2024 |  | $6228.72 |  |
| Fee Offset Claims | 2 |  | F-1 | 333-280115 | 06/11/2024 |  | $2930.65 |  |
| Fee Offset Sources |  | Carbon Zero Technologies International Inc. | F-1 | 333-280115 |  | 06/11/2024 |  | $6228.72 |
| Fee Offset Sources |  | Carbon Zero Technologies International Inc. | F-1 | 333-280115 |  | 10/30/2024 |  | $5067.61 |
| **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** | **Rule 457(p)** |
| Fee Offset Claims |  |  |  |  |  |  |  |  |
| Fee Offset Sources |  |  |  |  |  |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Explanation of the basis for claimed offset:** <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>1</sup> The Company previously paid $6,228.72 a maximum aggregate offering price of $42,200,000 in connection with its filing of the Registration Statement on Form F-1 (File No. 333-280115) on June 11, 2024. In accordance with Rule 457(b) under the Securities Act, the Company is using $6,228.72 of the previously paid fees to offset the filing fee payable in connection with this amendment to this Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <sup>2</sup> The Company previously paid an additional $5,299.71 a maximum aggregate offering price of $75,300,000 in connection with its filing of the Registration Statement on Form F-1 (File No. 333-280115) on October 30, 2024. In accordance with Rule 457(b) under the Securities Act, the Company is using $5,299.71 of the previously paid fees to offset the filing fee payable in connection with this amendment to this Registration Statement.