# EDGAR Filing Document

**Accession Number:** 0001945415
**File Stem:** 0001213900-23-024193
**Filing Date:** 2023-3
**Character Count:** 1969634
**Document Hash:** 5cdb7164e1005ba96aca9da5ce671dd3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-024193.hdr.sgml**: 20230330

**ACCESSION NUMBER**: 0001213900-23-024193

**CONFORMED SUBMISSION TYPE**: F-1

**PUBLIC DOCUMENT COUNT**: 123

**FILED AS OF DATE**: 20230330

**DATE AS OF CHANGE**: 20230329

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** HUHUTECH International Group Inc.
- **CENTRAL INDEX KEY:** 0001945415
- **STANDARD INDUSTRIAL CLASSIFICATION:** NONFERROUS FOUNDRIES (CASTINGS) [3360]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** F4
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** F-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-270958
- **FILM NUMBER:** 23776517

**BUSINESS ADDRESS:**
- **STREET 1:** 3-1208 TIANANZHIHUI COMPOUND
- **CITY:** WUXI, JIANGSU
- **STATE:** F4
- **ZIP:** 214135
- **BUSINESS PHONE:** 051088681689

**MAIL ADDRESS:**
- **STREET 1:** 3-1208 TIANANZHIHUI COMPOUND
- **CITY:** WUXI, JIANGSU
- **STATE:** F4
- **ZIP:** 214135

**As filed with the Securities and Exchange Commission on March 29, 2022**

#### Registration No. 333-

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

#### ________________

#### FORM F-1<br>REGISTRATION STATEMENT UNDER<br>THE SECURITIES ACT OF 1933

#### ________________

#### HUHUTECH International Group Inc.<br> (Exact name of registrant as specified in its charter)

#### _______________

#### Not Applicable<br> (Translation of Registrant's Name into English)

#### ________________

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| | | |
|:---|:---|:---|
|  **Cayman Islands** | **3366** | **Not Applicable** |
|  (State or other jurisdiction of | (Primary Standard Industrial | (I.R.S. Employer |
|  incorporation or organization) | Classification Code Number) | Identification Number) |

---

**3-1208 Tiananzhihui Compound<br>228 Linghu Road<br>Xinwu District, Wuxi City, Jiangsu Province<br>People's Republic of China 214135<br>0510-88681689 — telephone<br>(Address, including zip code, and telephone number,<br>including area code, of principal executive offices)**

#### Cogency Global Inc. <br> 122 East 42 <sup>nd</sup> Street, 18 <sup>th</sup> Floor <br> New York, NY 10168 <br> (Name, address, including zip code, and telephone<br>number, including area code, of agent for service)

#### ________________
*Copies to:*

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| | |
|:---|:---|
|  **William S. Rosenstadt, Esq.<br>Yarona L. Yieh, Esq.<br>Ortoli Rosenstadt LLP<br>366 Madison Avenue, 3**<sup>rd</sup> **Floor<br>New York, NY 10017<br>Telephone: +1-212-588-0022** | **Laura Hua Luo Hemmann, Esq.<br>King & Wood Mallesons LLP<br>50**<sup>th</sup> **Floor, 500 Fifth Avenue**<br> **New York, New York 10110<br>Telephone: +1**-212-319-4755 |

---

Approximate date of commencement of proposed sale to public: As soon as practicable after the effective date of this Registration Statement.

If any securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under 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.

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[**Table of Contents**](#TOC001)

#### Calculation of Registration Fee

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| | | | | |
|:---|:---|:---|:---|:---|
|  **Title of Class of Securities to be Registered** | **Amount to <br>Be Registered** | **Proposed <br>Maximum <br>Offering <br>Price per <br>Share** | **Proposed <br>Maximum <br>Aggregate <br>Offering <br>Price<sup>(1)</sup>** | **Amount of <br>Registration <br>Fee<sup>(2)</sup>** |
|  Ordinary shares, par value US$0.00001 per share<sup>(3)</sup> |  |  |  |  |
|  Underwriter's warrants<sup>(4)</sup> |  |  |  |  |
|  Ordinary shares, par value US$0.00001, underlying the underwriter's warrants |  |  |  |  |

---

____________

(1) Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(a) under the Securities Act.

(2) Calculated pursuant to Rule 457(o) under the Securities Act, based on an estimate of the proposed maximum aggregate offering price.

(3) In accordance with Rule 416(a), the Registrant is also registering an indeterminate number of additional ordinary shares that shall be issuable pursuant to Rule 416 to prevent dilution resulting from share splits, share dividends or similar transactions.

(4) The Registrant will issue to the underwriter warrants to purchase a number of ordinary shares equal to an aggregate of [•]% of the ordinary shares sold in the offering. The exercise price of the underwriter's warrants is equal to [•]% of the offering price of the ordinary shares offered hereby. The underwriter's warrants are exercisable at any time, and from time to time, in whole or in part, within [•] years commencing from the effective date of the offering.

**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 of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.**

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[**Table of Contents**](#TOC001)

**The information in this prospectus is not complete and may be changed. We will not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.**

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| | |
|:---|:---|
|  **PRELIMINARY PROSPECTUS** | **SUBJECT TO COMPLETION, DATED , 2023** |

---

#### HUHUTECH International Group Inc.

#### — Ordinary Shares
This is an initial public offering of Ordinary Shares of HUHUTECH International Group Inc., a Cayman Islands company. We are offering on a firm commitment basis — Ordinary Shares, par value $— per share. Prior to this offering, there has been no public market for our Ordinary Shares. We expect the initial public offering price will be between $— and $— per ordinary share. This offering is contingent upon us listing our Ordinary Shares on Nasdaq or another national exchange. There is no guarantee or assurance that our Ordinary Shares will be approved for listing on the Nasdaq Capital Market or another national exchange. We have applied to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "—". We cannot assure you that our application will be approved; however, if it is not approved, we will not complete this offering.

HUHUTECH International Group Inc. was incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct our operations in China through Jiangsu Huhu Electromechanical Technology Co., Ltd, or HUHU China, our wholly owned subsidiary. Investors will not and may never directly hold equity interests in HUHU China. HUHUTECH controls and receives the economic benefits of HUHU China's business operations, if any, through equity ownership. Any references to "HUHUTECH" are to HUHUTECH International Group Inc., the ultimate holding company and any references to "we", "us", "our Company," "the Company," or "our" are to HUHUTECH International Group Inc. ("HUHUTECH") and its subsidiaries. Any references to the "holding company" is to HUHUTECH, in which investors are purchasing an interest. HUHU China conducts business operations, and is the operating subsidiary. Any references to HUHU HK is to HUHUTECH(HK) Limited. Any reference to WFOE is to Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Limited. Any references to HUHU Japan is to HUHU Technology Co., Ltd. For more details regarding the risks regarding the Company's holding company structure, please refer to "Prospectus Summary — Holding Company Structure" and "Risk Factor — Risks related to Doing Business in the PRC — HUHUTECH is a holding company, and will rely on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares" on page 24 of the prospectus.

**Investors are cautioned that you are not buying shares of a China**-based **operating company but instead are buying shares of a Cayman Islands holding company with operations conducted by our subsidiaries based in China. For more details, see "Risk Factors — Risks related to doing Business in the PRC — *HUHUTECH is a holding company, and will rely on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares."***

**The holding company may rely on dividends and other distributions on equity paid by our PRC subsidiaries for our cash and financing requirements. As of the date of this prospectus, neither HUHUTECH nor any of its subsidiaries have paid dividends or made distributions to their shareholders. We do not expect to pay dividends in the foreseeable future.**

**If our PRC subsidiary incurs debt on its own behalf in the future, the instruments governing such debt may restrict their ability to pay dividends to us. However, none of our subsidiaries has made any dividends or other distributions to our holding company or any U.S. investors as of the date of this prospectus. In the future, cash proceeds raised from overseas financing activities, including this offering, may be transferred by us to our PRC subsidiaries via capital contribution or shareholder loans, as applicable.** 

**To make loans to HUHU HK, WFOE or HUHU China, according to Matters relating to the Macro**-prudential **Management of Comprehensive Cross**-border **Financing, or PBOC Circular 9 promulgated by the People's Bank of China, the total cross**-border **financing of a company shall be calculated using a risk**-weighted **approach and shall not exceed the statutory foreign debt upper limit. The statutory foreign debt upper limit shall be calculated as capital or assets (for enterprises, net assets shall apply) multiplied by a cross**-border **financing leverage ratio and multiplied by a macro**-prudential **regulation parameter. The macro**-prudential **regulation parameter is currently 1, which may be adjusted by the People's Bank of China and the State Administration of Foreign Exchange in the future, and the cross**-border **financing leverage ratio is 2 for enterprises. Therefore, the statutory foreign debt upper limit of the loans that a PRC company can borrow from foreign companies shall be calculated at 2 times the borrower's net assets. When WFOE and HUHU China jointly apply for borrowing foreign debt, the upper limit of borrowing shall be 2 times of the net assets in the consolidated financial statement, and HUHU China shall make a commitment to refrain from borrowing foreign debt in their own respective names. As of the date of this prospectus, no cash transfer or transfer of other assets has occurred between HUHUTECH and any of its subsidiaries.** 

**Under existing PRC foreign exchange regulations, payment of current account items, such as profit distributions and trade and service**-related **foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies** 

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[**Table of Contents**](#TOC001)

**for current account transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. 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 the PRC), except for transfer of funds involving money laundering and criminal activities. Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there is no restrictions on HUHU China's ability to transfer cash to investors.**

**The PRC has currency and capital transfer regulations that require us to comply with certain requirements for the movement of capital. The Company is able to transfer cash (US Dollars) to its PRC subsidiaries through an investment (by increasing the Company's registered capital in a PRC subsidiary). The Company's subsidiaries within China can transfer funds to each other when necessary through the way of current lending. The transfer of funds among companies are subject to the Provisions on Private Lending Cases, which was implemented on August 20, 2020 to regulate the financing activities between natural persons, legal persons and unincorporated organizations. As advised by our PRC counsel, Jiangsu Junjin Law Firm, the Provisions on Private Lending Cases does not prohibit using cash generated from one subsidiary to fund another subsidiary's operations. We have not been notified of any other restriction which could limit our PRC subsidiaries' ability to transfer cash between PRC subsidiaries. The Company's subsidiaries in the PRC have not transferred any earnings or cash to the Company to date. As of the date of this prospectus, there has not been any assets or cash transfer between the holding company and its subsidiaries. As of the date of this prospectus, there has not been any dividends or distributions made to US investors. The Company's business is primarily conducted through its subsidiaries. The Company is a holding company and its material assets consist solely of the ownership interests held in its PRC subsidiaries. The Company relies on dividends paid by its subsidiaries for its working capital and cash needs, including the funds necessary: (i) to pay dividends or cash distributions to its shareholders, (ii) to service any debt obligations and (iii) to pay operating expenses. As a result of PRC laws and regulations (noted below) that require annual appropriations of 10% of after**-tax **income to be set aside in a general reserve fund prior to payment of dividends, the Company's PRC subsidiaries are restricted in that respect, as well as in other respects noted below, in their ability to transfer a portion of their net assets to the Company as a dividend.** 

**To date, we have not raised any capital, and thus, have not transferred funds to our any of our subsidiaries. In the future, however, cash proceeds raised from overseas financing activities, including this offering, may be transferred by us to our subsidiary via capital contribution or shareholder loans. As of the date of this prospectus, there have not been any such dividends or other distributions from our PRC subsidiaries to our Hong Kong subsidiary. In addition, none of our subsidiaries have ever issued any dividends or distributions to us or their respective shareholders outside of China. We intend to keep any future earnings to re**-invest **in and finance the expansion of our business, and we do not anticipate that any cash dividends will be paid in the foreseeable future. For more details, see "Prospectus Summary — Transfers of Cash" on page 4 of this prospectus.**

**The holding company has limited operation and operation expenses. Our PRC subsidiaries' ability to distribute dividends is based upon their distributable earnings. Current PRC regulations permit our PRC subsidiaries to pay dividends to their respective shareholders only out of their accumulated profits, if any, as determined in accordance with PRC accounting standards and regulations. In addition, under PRC law, our PRC subsidiary is required to set aside at least 10% of their respective after**-tax **profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of its registered capital. These reserves are not distributable as cash dividends. If any of our Chinese subsidiaries incurs debt on its own behalf in the future, the instruments governing such debt may restrict its ability to pay dividends to its shareholders and, ultimately, to HUHUTECH. To date, there have not been any such dividends or other distributions from our Chinese subsidiaries to our subsidiaries located outside of China. In addition, as of the date of this prospectus, none of our subsidiaries have issued any dividends or distributions to HUHUTECH or its shareholders. Furthermore, as of the date of this prospectus, neither HUHUTECH nor any of its subsidiaries have paid dividends or made distributions to their shareholders. HUHUTECH is permitted under PRC laws and regulations as an offshore holding company to provide funding to its PRC subsidiaries in China through shareholder loans or capital contributions, subject to satisfaction of applicable government registration, approval and filing requirements. According to the relevant PRC regulations on foreign**-invested **enterprises in China, there are no quantity limits on HUHUTECH's ability to make capital contributions to its PRC subsidiaries. However, our PRC subsidiaries may not procure loans which exceed the statutory foreign debt upper limit and must register with the State Administration of Foreign Exchange ("SAFE") or its local counterparts, and must submit a foreign exchange loan registration with the National Development and Reform Commission ("NDRC") if required. In the future, cash proceeds raised from overseas financing activities, including this offering, may continue to be transferred by HUHUTECH to the PRC subsidiaries via capital contribution or shareholder loans, as the case may be. We intend to retain most, if not all, of our available funds and any future earnings after this offering to the development and growth of our business in China. We do not expect to pay dividends in the foreseeable future. Our management monitors the cash position of each entity within our organization regularly and prepare monthly budgets to ensure each entity has the necessary funds to fulfill its obligation for the foreseeable future and to ensure adequate liquidity. In the event that there any current or potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we will enter into an intercompany loan for the applicable subsidiary. See "Prospectus Summary — Transfers of Cash to and from Our Subsidiaries" beginning on page 4 and "Corporate History and Structure — Transfers of Cash to and from Our Subsidiaries" beginning on page 58.**

**We are subject to certain legal and operational risks associated with having substantially all business operations in China. Such risks may include changes in the legal, political, and economic policies of the Chinese government, the relations between China and the United States, and Chinese or United States regulations that may materially and adversely affect our business, financial condition, results of operations and the market price of the Ordinary Shares. Any such changes could significantly limit or completely hinder our ability to offer or continue to offer securities to investor and could cause the value of offered securities to significantly decline or become worthless. PRC laws and regulations governing our current business operations are sometimes vague and uncertain. Recently, the PRC government initiated a series of regulatory actions and made statements to regulate business operations in China with little advance notice, including cracking down on illegal activities in the securities market, adopting new measures to extend the scope of cybersecurity reviews, and expanding the efforts in anti**-monopoly **enforcement. Since these statements and regulatory actions are new, it is highly uncertain how soon legislative or administrative regulation making bodies will respond and what existing or new laws or regulations or detailed implementations and interpretations will be modified or promulgated, if any, and the potential impact such modified or new laws and regulations will have on the daily business operation of HUHU China and its subsidiaries and HUHUTECH's ability to accept foreign investments and list on an U.S. or other foreign exchange. These risks may cause significant depreciation of the value of our Ordinary Shares, or a complete hinderance of our ability to offer or continue to offer our securities to investors. See "Risk Factors — Risks Related to Doing Business in the PRC" beginning on page 21.**

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[**Table of Contents**](#TOC001)

**Our Ordinary Shares may be prohibited from trading on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCAA") if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if passed by the U.S. House of Representatives and signed into law, would reduce the period of time for foreign companies to comply with PCAOB audits to two consecutive years instead of three, thus reducing the time period for triggering the prohibition on trading.**

**On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "SOP") with the China Securities Regulatory Commission and the Ministry of Finance of China. The SOP, together with two protocol agreements governing inspections and investigations (together, the "SOP Agreement"), establishes a specific, accountable framework to make possible complete inspections and investigations by the PCAOB of audit firms based in mainland China and Hong Kong, as required under U.S. law. The SOP Agreement remains unpublished and is subject to further explanation and implementation. Pursuant to the fact sheet with respect to the SOP Agreement disclosed by the SEC, the PCAOB shall have sole discretion to select any audit firms for inspection or investigation and the PCAOB inspectors and investigators shall have a right to see all audit documentation without redaction. Under the PCAOB's rules, a reassessment of a determination under the HFCAA may result in the PCAOB reaffirming, modifying or vacating the determination.**

**On December 2, 2021, the U.S. Securities and Exchange Commission ("SEC") adopted final amendments to its rules implementing the HFCAA. The rules apply to registrants the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB is unable to inspect or investigate (Commission**-Identified **Issuers) and require Commission**-Identified **Issuers identified by the SEC to submit documentation and make disclosures required under the HFCAA. In addition, the final amendments also establish procedures the SEC will follow in (i) determining whether a registrant is a "Commission**-Identified **Issuer" and (ii) prohibiting the trading on U.S. securities exchanges and in the over**-the-counter **market of securities of a "Commission**-Identified **Issuer" under the HFCAA. The final amendments are effective on January 10, 2022. The SEC has begun to identify and list Commission**-Identified **Issuers on its website shortly after registrants begin filing their annual reports for 2021. Pursuant to the HFCAA, the PCAOB issued a Determination Report on December 16, 2021, which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in mainland China or Hong Kong, a Special Administrative Region of the PRC, because of a position taken by one or more authorities in the PRC or Hong Kong. In addition, the PCAOB's report identified the specific registered public accounting firms which are subject to these determinations. On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "Statement of Protocol") with the China Securities Regulatory Commission and the Ministry of Finance of China. The terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may inspect and investigate PCAOB**-registered **accounting firms headquartered in China and Hong Kong.** 

**On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB**-registered **public accounting firms headquartered in mainland China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB**-registered **public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor's control. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.** 

**Our auditor, Wei, Wei & Co., LLP has been inspected by the PCAOB on a regular basis, with the last inspection completed in August 2020, and it is not subject to the determinations announced by the PCAOB on December 16, 2021. If trading in our Ordinary Shares is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist our Ordinary Shares. If our Ordinary Shares are unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase our Ordinary Shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative impact on the price of our Ordinary Shares. See "Risk Factors — Risks Related to Doing Business in the PRC — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment" on page 35 of this prospectus.**

**Our holding company is an "emerging growth company" under the federal securities laws and will be subject to reduced public company reporting requirements. See "Prospectus Summary — Implications of Being an Emerging Growth Company" for additional information.**

Upon completion of this offering, our CEO, Yujun Xiao, will beneficially own approximately [ ]% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the over-allotment option, or [ ]%, assuming full exercise of the over-allotment option. As a result, we will be deemed a "controlled company" for the purpose of the Nasdaq Stock Market 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 requirements that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a majority of our board of directors consist of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our director nominees be selected or recommended solely by independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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[**Table of Contents**](#TOC001)

Although we do not intend to rely on the "controlled company" exemption under the Nasdaq listing rules, we could elect to rely on this exemption after we complete this offering. If we elected to rely on the "controlled company" exemption, a majority of the members of our Board of Directors might not be independent directors and our nominating and corporate governance and compensation committees might not consist entirely of independent directors after we complete this offering.

Additionally, pursuant to Nasdaq's phase-in rules for newly listed companies, we have one year from the date on which we are first listed on Nasdaq to comply fully with the Nasdaq listing standards. We do not plan to rely on the phase-in rules for newly listed companies and will comply fully with the Nasdaq listing standards at the time of listing.

As a foreign private issuer, however, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, PRC, with respect to appointments to our board of directors and committees in lieu of Nasdaq corporate governance rules. We intend to follow home country practice as permitted by Nasdaq rather than rely on the "controlled company" exception to the corporate governance rules. See "Risk Factors — Risks Related to this Offering and the Trading Market — Because we are a foreign private issuer and are exempt from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer." Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

**Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

**Investing in the Ordinary Shares involves risks. See "Risk Factors" beginning on page 21.**

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| | | | |
|:---|:---|:---|:---|
|  | ***Price to<br>Public*** | ***Underwriting<br> Discounts and<br> Commissions*<sup>1</sup>** | ***Proceeds to Us*** |
|  *Per ordinary share*<sup>(1)</sup> | *US$* | *US$* | *US$* |
|  *Total* | *US$* | *US$* | *US$* |

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____________

(1) Initial public offering price per share is assumed at US$[\*].00.

(2) We have agreed to pay Univest Securities LLC (the "Underwriter") a discount equal to [7]% of the gross proceeds of this offering. For a description of other compensation to be received by the Underwriter, see "Underwriting" beginning on page 127.

Neither the United States Securities and Exchange 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.

The Underwriter expects to deliver the Ordinary Shares against payment in U.S. dollars to purchasers on or about , 2023.

#### Prospectus dated , 2023.

#### The date of this prospectus is ____________, 2023.

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[**Table of Contents**](#TOC001)

#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T21) | 1 |
|  [Risk Factors](#T20) | 21 |
|  [Special Note Regarding Forward-Looking Statements](#T992000) | 51 |
|  [Use of Proceeds](#T19) | 52 |
|  [Dividend Policy](#T18) | 53 |
|  [Capitalization](#T17) | 54 |
|  [Dilution](#T16) | 55 |
|  [Enforceability of Civil Liabilities](#T15) | 56 |
|  [Corporate History and Structure](#T14) | 57 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#T993000) | 60 |
|  [Business](#T13) | 77 |
|  [Regulation](#T12) | 89 |
|  [Management](#T11) | 100 |
|  [Related Party Transactions](#T10) | 103 |
|  [Principal Shareholders](#T9) | 106 |
|  [Description of Share Capital](#T8) | 107 |
|  [Shares Eligible for Future Sale](#T7) | 119 |
|  [Taxation](#T6) | 121 |
|  [Underwriting](#T5) | 127 |
|  [Expenses Related to this Offering](#T4) | 133 |
|  [Legal Matters](#T3) | 134 |
|  [Experts](#T2) | 134 |
|  [Where You Can Find Additional Information](#T1) | 134 |
|  [Index to the Consolidated Financial Statements](#T501) | F-1 |

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**You should rely only 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 Ordinary Shares offered hereby, but only under circumstances and in jurisdictions where offers and sales are permitted and lawful to do so. The information contained in this prospectus is current only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Ordinary Shares.**

**Neither we nor any of the underwriters have taken any action that would permit a public offering of the Ordinary Shares outside the United States or permit the possession or distribution of this prospectus or any related free**-writing **prospectus outside the United States. Persons outside the United States who come into possession of this prospectus or any related free**-writing **prospectus must inform themselves about and observe any restrictions relating to the offering of the Ordinary Shares and the distribution of the prospectus outside the United States.**

**We are incorporated under the laws of the Cayman Islands as an exempted company with limited liability and a majority of our outstanding securities are owned by non**-U**.S. residents. Under the rules of the U.S. Securities and Exchange Commission, or the SEC, we currently qualify for treatment as a "foreign private issuer." As a foreign private issuer, we will not be required to file periodic reports and financial statements with the Securities and Exchange Commission, or the SEC, as frequently or as promptly as domestic registrants whose securities are registered under the Securities Exchange Act of 1934, as amended, or the Exchange Act.**

**Until and including , 2023 (the 25**<sup>th</sup> **day after the date of this prospectus), all dealers that buy, sell or trade our Ordinary Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

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#### PROSPECTUS SUMMARY
*This summary highlights information contained in greater detail elsewhere in this prospectus. This summary is not complete and does not contain all of the information you should consider in making your investment decision. You should read the entire prospectus carefully before making an investment in our Ordinary Shares. You should carefully consider, among other things, our consolidated financial statements and the related notes and the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included elsewhere in this prospectus.*

#### Prospectus Conventions
Unless otherwise indicated or the context requires otherwise, references in this prospectus to:

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "HUHUTECH" is to HUHUTECH International Holding Inc., a Cayman Islands exempted company limited by shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "HUHU China" is to Jiangsu Huhu Electromechanical Technology Co., Ltd.., a PRC incorporated limited liability company. HUHU China is a wholly owned subsidiary of WFOE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "HUHU HK" is to HUHUTECH(HK) Limited, a Hong Kong company, limited by shares, which is a wholly-owned subsidiary of HUHUTECH.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "HUHU Japan" is to "HUHU Technology Co., Ltd. a Japanese limited company and a wholly owned subsidiary of HUHUTECH

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Ordinary Shares" are to the ordinary shares of the Company, par value US$0.00001 per share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "WFOE" is to Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Limited, a wholly foreign-owned enterprise in the PRC and a wholly owned subsidiary of HUHU HK;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "we," "us," "our," "our company," or "the Company" are to HUHUTECH and its subsidiaries, and to HUHU China in the context of describing our operations and consolidated financial information;

This prospectus contains translations of certain RMB amounts into U.S. dollar amounts at specified rates solely for the convenience of the US reporting. The relevant exchange rates are listed below:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six <br>Months Ended <br>June 30, <br>2022** | **For the Six <br>Months Ended <br>June 30, <br>2021** | **For the Year<br> Ended<br> December 31,<br> 2021** | **For the Year<br> Ended<br> December 31,<br> 2020** |
|  **Period Ended RMB: USD exchange rate** | 6.6981 | 6.4566 | 6.3726 | 6.5250 |
|  **Period Average RMB: USD exchange rate** | 6.4791 | 6.4702 | 6.4508 | 6.9042 |

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For the sake of clarity, this prospectus follows the English naming convention of first name followed by last name, regardless of whether an individual's name is Chinese or English. For example, the name of our Chief Executive Officer will be presented as "Yujun Xiao," even though, in Chinese, Mr. Xiao's name is presented as "Xiao Yujun."

We have relied on statistics provided by a variety of publicly available sources regarding China's expectations of growth. We did not, directly or indirectly, sponsor or participate in the publication of such materials, and these materials are not incorporated in this prospectus other than to the extent specifically cited in this prospectus. We have sought to provide current information in this prospectus and believe that the statistics provided in this prospectus remain up-to-date and reliable, and these materials are not incorporated in this prospectus other than to the extent specifically cited in this prospectus. Except where otherwise stated, all ordinary share accounts provided herein are on a pre-share-increase basis.

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#### Overview
Our holding company is incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct our operations through our subsidiaries established in the People's Republic of China, or "PRC" or "China". Our PRC subsidiary, HUHU China was incorporated in Wuxi City, Jiangsu Province, PRC on August 20, 2015 under the laws of the PRC.

We, through our subsidiaries, specialize in providing factory facility management and monitoring systems, including high-purity gas, chemicals and liquid system ("HPS") and factory management and control systems ("FMCS") for our industrial clients, who are mainly semi-conductor manufacturers and electronics manufacturers in China. We believe our products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers.

Within the HPS, we provide two types of solutions: (1) High-purity gas conveyor system. The high-purity gas conveyor consists of a specialized gas cabinet, the Valve Manifold Box ("VMB"), the gas monitoring software and gas valve parts. This system is connected to our clients' own factory equipment, which will receive gas through the system we install. The gas conveyor ensures that the high-purity gas will not be contaminated by being exposed to air, liquid or small particles during the delivery. (2) High-purity chemicals conveyor system. The high-purity chemicals conveyor system conveys multiple chemicals used in the cleaning, corrosion and grinding process. This system consolidates multiple sub-systems including high-purity chemical pipes, valve, chemical sensor, and the chemical monitoring software. With the high-purity chemical conveyor system, we deliver chemicals from the storage container to the client's manufacture equipment through the distribution valve. Both high-purity gas conveyor system and high-purity chemicals conveyor system are capable of delivering special high purity gas and chemicals in a highly controlled environment that ensures the gas and chemicals meet the purity requirement of our clients' production process, as well as monitors potential safety issues in the production.

Our FMCS solution provides instant and effective monitoring over our clients' manufacturing process through the control center located in the clients' factory. The FMCS service monitors the facility production atmosphere, and consolidates sub-systems, including gas monitoring system (GMS), chemical monitoring system (CMS), high and low voltage power distribution, air pressure system, air conditioning system, water system, access control system, elevator system, sewage treatment system, waste gas emission system, pure water system and other systems. Our software is capable of consolidating all the sub-systems by creating a facility-wide software monitoring platform, where one can monitor and control every aspect of the factory condition. Additionally, we also develop individual sub-system for our clients, such as gas monitoring system and chemical monitoring system.

We believe that we have grown to be one of the larger companies in the HPS and FMCS industry in China. Some of our clients are seasoned manufacturers in their industries in China. Our clients include Li Yi System Engineering (Shanghai) Limited, Hefei Lanke Investment Co., Ltd., Shiyuan Technology Engineering Co., Ltd., and AUO Corporation.

We are a nationally recognized brand: we have received ISO9001 standard quality management system certification in June 2021, from Beijing Zhong Jian Xie Certification Centre Co., Ltd., and received both ISO14001 Standard Environmental Management System Certification and ISO45001 Occupational Health and Safety Management System Certification in April 2021, both from TQCS International (Group) Pty, Ltd. We have been recognized as a Technology Driven Medium-Small Enterprise by the Science and Technology Bureau in Jiangsu Province in April 2020. We have been rewarded as First-class Qualification for Professional Contracting of Construction Mechanical and Electrical Installation Engineering by Jiangsu Provincial Department of Housing and Construction in September 2021.

We obtain raw materials mainly from suppliers in the Mainland China. Our most common raw materials include programmable logic controllers ("PLC") modules, network switches, power modules, signal lines, control lines, cables, bridges, and heating materials. For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. For the year ended December 31, 2021, no supplier accounted for more than 10% of our total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% of our total purchases. As of June 30, 2022, four suppliers accounted for approximately 20.6%,19.5%,11.2% and 10.9% of total accounts payable, respectively. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of our total accounts payable, respectively. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of our total accounts payable, respectively.

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#### Corporate history and structure
HUHUTECH is a holding company with no operations of its own. We conduct our operations in China primarily through our subsidiaries in the PRC. The Ordinary Shares offered in this prospectus are those of HUHUTECH.

The following diagram shows our corporate structure as of the date of this prospectus, including our main subsidiaries and consolidated affiliated entities:

HUHUTECH International Group Inc., a Cayman Islands company limited by shares, was incorporated on July 8, 2021. It is a holding company and is not actively engaged in any business as of the date of this prospectus. Under the post-offering memorandum and articles of association that we expect to adopt and to become effective immediately prior to this offering, or the memorandum of association, HUHUTECH is authorized to issue 5,000,000,000 Ordinary Shares, par value $0.00001 per ordinary share. There are currently 5,000,000 issued and outstanding Ordinary Shares of HUHUTECH. HUHUTECH's registered office is at Harneys Fiduciary and its registered office is at 4<sup>th</sup> Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands.

HUHU HK was incorporated on July 28, 2021 under the laws of Hong Kong. HUHU HK is a Hong Kong limited company and a wholly owned subsidiary of HUHUTECH. HUHU HK is a holding company and does not have any operations.

HUHU Japan was incorporated on April 25, 2022 under the laws of Japan as a limited company and a wholly owned subsidiary of HUHUTECH. It will conduct the same type of business in Japan as HUHU China does in China in the near future.

Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd. ("WFOE") was incorporated on December 10, 2021 under the laws of the People's Republic of China. WFOE is a limited liability company, and a wholly-owned subsidiary of HUHU HK. WFOE is a holding company and does not have any operations.

Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") was incorporated on August 20, 2015 under the laws of the People's Republic of China. HUHU China is a limited liability company.

#### Holding Company Structure
HUHUTECH is a holding company with no material operations of its own. We currently conduct our operations primarily through HUHU China. Investors will not and may never directly hold equity interests in HUHU China. We control and receive the economic benefits of HUHU China's business operations, if any, through equity ownership.

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#### Transfers of cash to and from our subsidiaries
Our management monitors the cash position of each entity within our organization regularly and prepares budgets on a monthly basis to ensure each entity has the necessary funds to fulfill its obligation for the foreseeable future and to provide adequate liquidity. In the event that there is a need for cash or a potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we will enter into an intercompany loan for the applicable subsidiary.

HUHUTECH is permitted under the laws of the Cayman Islands to provide funding to HUHU HK through loans or capital contributions without restrictions on the amount of the funds. HUHU HK is permitted under the respective laws of Hong Kong to provide funding to WFOE through dividend distribution without restrictions on the amount of the funds. There are no restrictions on dividend transfers from Hong Kong to the Cayman Islands.

To transfer cash from HUHU HK to WFOE, HUHU HK can increase its registered capital in WFOE, which requires a report with the local commerce department, the registration with the local administration for market regulation and registration with a local bank authorized by SAFE, or through a shareholder loan, which requires a registration with the State Administration of Foreign Exchange or its local bureau. Aside from the aforesaid declaration to the relevant authorities, there is no restriction or limitations on such cash transfer.

To make loans to HUHU HK, WFOE or HUHU China, according to Matters relating to the Macro-prudential Management of Comprehensive Cross-border Financing, or PBOC Circular 9 promulgated by the People's Bank of China, the total cross-border financing of a company shall be calculated using a risk-weighted approach and shall not exceed the statutory foreign debt upper limit. The statutory foreign debt upper limit shall be calculated as capital or assets (for enterprises, net assets shall apply) multiplied by a cross-border financing leverage ratio and multiplied by a macro-prudential regulation parameter. The macro-prudential regulation parameter is currently 1, which may be adjusted by the People's Bank of China and the State Administration of Foreign Exchange in the future, and the cross-border financing leverage ratio is 2 for enterprises. Therefore, the statutory foreign debt upper limit of the loans that a PRC company can borrow from foreign companies shall be calculated at 2 times the borrower's net assets. When WFOE and HUHU China jointly apply for borrowing foreign debt, the upper limit of borrowing shall be 2 times of the net assets in the consolidated financial statement, and HUHU China shall make a commitment to refrain from borrowing foreign debt in their own respective names. As of the date of this prospectus, no cash transfer or transfer of other assets has occurred between HUHUTECH and any of its subsidiaries.

Under existing PRC foreign exchange regulations, payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. 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 the PRC), except for transfer of funds involving money laundering and criminal activities. Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there is no restrictions on HUHU China's ability to transfer cash to investors. As of the date of this prospectus, neither HUHUTECH nor any of its subsidiaries have paid dividends or made distributions to their shareholders. We do not expect to pay dividends in the foreseeable future.

The PRC has currency and capital transfer regulations that require us to comply with certain requirements for the movement of capital. The Company is able to transfer cash (US Dollars) to its PRC subsidiaries through an investment (by increasing the Company's registered capital in a PRC subsidiary). The Company's subsidiaries within China can transfer funds to each other when necessary through the way of current lending. The transfer of funds among companies are subject to the Provisions on Private Lending Cases, which was implemented on August 20, 2020 to regulate the financing activities between natural persons, legal persons and unincorporated organizations. As advised by our PRC counsel, Jiangsu Junjin Law Firm, the Provisions on Private Lending Cases does not prohibit using cash generated

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from one subsidiary to fund another subsidiary's operations. We have not been notified of any other restriction which could limit our PRC subsidiaries' ability to transfer cash between PRC subsidiaries. The Company's subsidiaries in the PRC have not transferred any earnings or cash to the Company to date. As of the date of this prospectus, there has not been any assets or cash transfer between the holding company and its subsidiaries. As of the date of this prospectus, there has not been any dividends or distributions made to US investors. The Company's business is primarily conducted through its subsidiaries. The Company is a holding company and its material assets consist solely of the ownership interests held in its PRC subsidiaries. The Company relies on dividends paid by its subsidiaries for its working capital and cash needs, including the funds necessary: (i) to pay dividends or cash distributions to its shareholders, (ii) to service any debt obligations and (iii) to pay operating expenses. As a result of PRC laws and regulations (noted below) that require annual appropriations of 10% of after-tax income to be set aside in a general reserve fund prior to payment of dividends, the Company's PRC subsidiaries are restricted in that respect, as well as in other respects noted below, in their ability to transfer a portion of their net assets to the Company as a dividend.

HUHUTECH may rely on dividends paid by its subsidiaries for its working capital and cash needs, including the funds necessary to pay dividends to its shareholders. If HUHUTECH's subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to HUHUTECH. As of the date of this prospectus, HUHUTECH's subsidiaries have loans from several banks, but the loans do not restrict their ability to pay dividends to HUHUTECH. As of the date of this prospectus, none of our subsidiaries have made any dividends or distributions and we have not made any dividends or distributions to our shareholders. We currently intend to retain all available funds and future earnings, if any, for the operation and expansion of our business and do not anticipate declaring or paying any dividends in the foreseeable future.

As a result of PRC laws and regulations (noted below) that require annual appropriations of 10% of after-tax income to be set aside in a general reserve fund prior to payment of dividends, WFOE is restricted in that respect, as well as in other respects noted below, in their ability to transfer a portion of their net assets to HUHU HK as a dividend. We note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. PRC regulations currently permit the payment of dividends only out of accumulated profits, as determined in accordance with accounting standards and PRC regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. WFOE is required to set aside, at a minimum, 10% of their net income after taxes, based on PRC accounting standards, each year as statutory general reserves until the cumulative amount of such reserves reaches 50% of their registered capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Such reserves may not be distributed as cash dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. WFOE may, upon a decision made by the shareholder, draw a discretionary common reserve from the after-tax profits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The incurrence of debt, specifically the instruments governing such debt, may restrict a subsidiary's ability to pay stockholder dividends or make other cash distributions.

As of the date of this prospectus, HUHUTECH and its subsidiaries do not have any plans to distribute earnings or settle amounts in the foreseeable future. During the six months ended June 30, 2022 and the fiscal years ended December 31, 2021 and 2020, there was no cash transfer between the holding company and its subsidiaries.

See "Corporate History and Structure — Transfers of Cash to and from Our Subsidiaries"

#### Dividend Policy
We anticipate that we will retain any earnings to support operations and to finance the growth and development of our business after the Company's initial public offering. Therefore, we do not expect to pay cash dividends in the foreseeable future. Any future determination relating to our dividend policy will be made at the discretion of our board of directors and will depend on a number of factors, including future earnings, capital requirements, financial conditions and future prospects and other factors the board of directors may deem relevant. As of the date of this prospectus, we have not paid any dividends or distributions to our shareholders.

#### Our Solutions
We, through HUHU China, design and provide customized high-purity gas and chemical production system and equipment. Our products mainly include HPS and FMCS. Our products are customized according to the needs of our clients.

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*High-purity Process System*

The high-purity process system revolves around applying effective control of impurities in the production process. It is mainly used in the core processes of integrated circuit manufacturing in the pan-semiconductor industry, including the processes of doping, photolithography, etching and CVD film formation processes. The system consists of high-purity process system equipment, high-purity process system piping, valve boxes, valve components and monitoring systems. We offer the overall solution design, installation and value-added services such as ancillary engineering, testing, plant hosting, calibration and maintenance. The technology used in this industry involves a variety of basic sciences such as physics, semiconductor physics, physical chemistry and electrochemistry and various engineering disciplines such as chemical, mechanical, materials and surface treatment. The new production lines of domestic fabrication plants ("fabs") will bring development opportunities for us for the following reason: our high-purity process system covers 16-65nm equipment, and our high-purity process system possesses the essential technology to support equipment that is used to produce 5nm sized wafers; we believe such capacity gives us a comparative advantage in the industry, due to the technical difficulty in supporting equipment producing wafers of that size; such comparative advantage will help us gain more market shares in the industry, which will bring us development opportunities.

We provide high-purity process systems which we design and install for the clients, utilizing the equipment we procure from our suppliers, which is special equipment used in high-purity process systems and transport distribution pipelines. Within high purity process systems, there are two main types: high purity gas delivery systems and high purity chemical delivery systems.

<u><u>High-purity</u> <u>Gas Conveyor System</u></u>

The high purity gas conveyor system consists of components including special gas cabinets, valve manifold box, gas monitoring software systems (safety and security systems), gas pipes and valve fittings etc. The front end of the system is connected to the high-purity gas plant and the rear end of the system is connected to the client's own production equipment. This system currently generates most of the Company's revenue.

<u><u>High-purity</u> <u>Chemical Conveyor System</u></u>

The high- purity chemical delivery system is used during the manufacturing process in the pan-semiconductor industry. It supplies a wide range of chemicals for cleaning, etching, grinding and other industrial processes at production facilities in the pan-semiconductor industry. The chemical conveyor system delivers chemicals from tanks and tankers to the various machine demand points via VMB distribution valves. In addition to the associated piping, equipment and valves, a reliable chemical software monitoring system is also required for the system to work properly.

We also offer our customers value-added services related to the conveyor systems, such as ancillary engineering, testing, plant hosting, calibration and maintenance, if applicable.

*Factory Management and Control System (FMCS)*

Our FMCS provides instant and effective monitoring of our clients' manufacturing process through the control center of the clients' factories. We offer a consolidated factory monitoring system that combines multiple factory monitoring systems on one platform and individual factory monitoring systems that specialize in certain aspects of factory environment, including gas monitoring system and chemical monitoring system. All our systems are equipped with a control room where multiple monitoring screens show live status of the facility condition.

<u><u>Consolidated FMCS</u></u>

Consolidated FMCS integrates the monitoring information of the various systems of the plant facilities into the central monitoring server, using Ethernet, controllers and communication equipment to form a factory-wide monitoring web, so as to interoperate the information of the whole factory, improve the overall management performance of the factory, simplify the operation and maintenance process, and reduce the management costs. This system integrates the entire factory sub-systems. Through integration, it manages the operational status of each sub-system, serving as the monitoring and management center and coordinating and managing the operation of the entire facility.

We prioritize the software development of the FMCS, among other aspects of the FMCS solution. The system monitors our clients' entire plant, including the plant's gas monitoring, process cooling water monitoring, water supply and drainage monitoring, pure water station monitoring, waste water treatment monitoring, plant environment

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monitoring, air conditioning monitoring, hot and cold source monitoring, ventilation and exhaust system monitoring, compressed air/vacuum and bulk gas system monitoring, variable power distribution system monitoring, and comprehensive automation monitoring.

<u><u>Gas Monitoring System (GMS)</u></u>

We also design and install individual gas monitoring systems. As hazardous gas is routinely used in the manufacturing process in the semi-conductor facilities, the monitoring system of poisonous gas plays a crucial role in the facility. The design of our gas monitoring system takes into account the types of particular gas and the pipeline used to distribute the particular gas, as well as the arrangement of the processing machines. The monitoring system collects data, transmits signals through the gas monitoring equipment and turns off the gas valve timely when warning signs appear. The GMS system has great stability, and is supported by a network of multiple internet devices that work independently without being interfered by any breakdown that could occur to one of the devices. The system is also equipped with backup monitors in the monitoring room in case any individual monitor stops working. The above designs ensures that our monitoring system provides around-the-clock control of the gas transportation process and sends a signal that can turn off the gas valve timely. The picture below illustrates our GMS design:

![](timage_002.jpg)

The GMS is connected to the alarm system and is capable of detecting any leakage of hazardous gas and sending timely signals to people in the facilities. The design is fairly flexible and easy to adapt and improve through our software control. It works with any number of equipment without the need of being adapted or rewritten.

<u><u>Chemical Monitoring System (CMS)</u></u>

In the factories in the pan-semiconductor industry, various chemical ingredients are used for cleaning, etching, grinding and other processes, and are distributed through chemical containers and distribution valves. The CMS monitors the safety of the distribution process. The display unit in the control room shows the facility status, including the valve status, pressure number, error signs, electricity input and output, and then sends warnings to the technicians onsite who can timely check the equipment status.

*Production Procedure*

For a typical production project, we obtain clients' needs and formulate an initial proposal of our design, which we will submit for bidding to the client. The client will assess our qualifications before admitting us into the bidding process. If we win the bid, we enter into an agreement with the clients. Our team will then start production. We have adopted an integrated business model to meet our clients' needs in the production stage: our engineering team sets

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up the schedule and production steps; the quality control team confirms the qualification of equipment, material sample quality and staff qualification. We charge our clients based on the quantity of equipment that is connected to our system. 10% – 20% of payment will be made upon entry of the agreement, with the remainder of the payment made throughout the production stage. Typically, 95% to 97% of the total purchase price will have been paid upon project delivery. The remaining payment will be made one to two years after the delivery, when the customer is satisfied with our production.

The following chart illustrates our production process:

![](tflowchart_002.jpg)

#### Our Suppliers
For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. For the year ended December 31, 2021, no supplier accounted for more than 10% of our total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% and of total purchases, respectively. As of June 30, 2022, four suppliers accounted for approximately 20.6%, 19.5%, 11.2% and 10.9% of total accounts payable, respectively. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of total accounts payable, respectively.

#### Our Customers and Sales
We service major players in the pan-semiconductor and pharmaceutical industries by supplying reliable high-purity gas and chemical systems and equipment and FMCS. We are a business partner and supplier of many renowned companies in Asia, including Shiyuan Technology Engineering Co., Ltd., Suzhou Ruize System Engineering Co., Ltd., Hesheng Enterprise Co., Ltd., China Electronic System Engineering Fourth Construction Co., Ltd., Li Yi System Engineering (Shanghai) Co., Ltd.

For the six months ended June 30, 2022, three customers accounted for 30.4%, 13.7% and 12.5% of total revenues, respectively. For the year ended December 31, 2021, three customers accounted for 28.6%,13.3% and,10.6% of total revenues. For the year ended December 31, 2020, two customers accounted for 34.6% and 30.6% of total revenues. As of June 30, 2022, five customers accounted for 17.6%, 17.2%, 12.8%, 11.6% and 11.2% of total accounts receivable, respectively. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable. As of December 31, 2020, three customers accounted for 33.1%, 28.1% and 21.1% of total accounts receivable.

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#### Our Growth Strategy
Our growth strategies include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Client Development and Management*** — Our team consists of members with years of experience in the industry. We have built an excellent relationship with our suppliers and customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Research & Development*** — We will keep investing substantially in research and development, including research and development of semiconductor process line cleaning control systems, semiconductor ultrapure water system control software, semiconductor process gas detection systems, semiconductor process pipeline temperature automatic control system, FMCS related technology and new equipment. We will keep improving our existing technology and explore the development of FMCS and related new equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Expand Product and Service Range*** — We aim to expand our product range to areas including water supply systems, electricity supply systems, air conditioning and ventilation systems. In the services section, we plan to offer annual maintenance and servicing program, the software maintenance and valve and PLC module replacement for the FMCS product. We believe such plans will improve our profitability.

#### Competitive Advantages
We are committed to providing our customers with high quality service. We believe we have several competitive advantages that will enable us to maintain and further improve our market position in the industry. Our competitive advantages include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Technological Capacity. We own software copyright over various programs in fields including facility gas supply, chemical and water processing. Our products, such as the FMCS software, effectively increase operation efficiency by using standardized module software.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Experienced and Diverse Management Team.*** Our management team members have more than ten years of experience in their respective fields. Our founder Yujun Xiao is an experienced entrepreneur with extensive experience in business management and operations. Since the founding of the Company, we have established a reliable, professional team with many management and strategy talents. Mr. Xiao and members of this team entered the semiconductor industry relatively early, and have experienced the early development stage of the monitoring service industry for semiconductor businesses in China. He built this team from years of experience as an industry veteran.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Software Solution Modularity.** The PLC module in the system adopts mature algorithm. After the one-time arrangement is completed, the subsequent increase of detector gas cabinet, valve manifold box equipment does not require redownloading of the PLC program. This reduces the errors caused by frequent updates of the program (such as mistakenly shutting down the gas delivery equipment) that could cause customer downtime and lead to significant economic losses. Utilizing software simulation, we test and improve our software without interfering with the operation of the equipment. Our software solution is user-friendly and our clients can add monitoring applications from their end.

#### Sales and Marketing
We believe that our solutions have a strong competitive edge in China's domestic market. Our CEO and CTO play essential roles in bringing in new clients, due to their multiple years of experience in the industry. Additionally, we have established a good reputation among our clients through our consistent high-quality products, which ensures we have plenty of long-term clients that we maintain carefully on a periodical basis. Our sales and marketing department work diligently in maintaining existing client relationships by visiting clients regularly. Our sales personnel also attend industry events and exhibitions to expand our connections and promote our products. Due to our renowned reputation in China, we also receive consultation requests and offers from prospective clients, who discover our product and service by word of mouth and industry exhibitions such as SEMII CHINA and China (Shanghai) International Semiconductor Exhibition.

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#### Risk Factors Summary
An investment in our Ordinary Shares is subject to a number of risks, including risks related to our business, risks related to doing business in China and risks related to our Ordinary Shares and this offering. You should carefully consider all of the information in this prospectus before making an investment in our Ordinary Shares. The following list summarizes some, but not all, of these risks. Please read the information in the section entitled "Risk Factors" for a more thorough description of these and other risks.

<u>Risks Related to Doing Business in the PRC</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PRC regulations relating to investments in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries or limit our PRC subsidiaries' ability to increase their registered capital or distribute profits. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — PRC regulations relating to investments in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries or limit our PRC subsidiaries' ability to increase their registered capital or distribute profits." on page 21 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. We will likely be required to obtain approval from Chinese authorities to list on U.S exchanges. If we were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange and the value of our Ordinary Shares may significantly decline or be worthless, which would materially affect the interest of the investors. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. We will likely be required to obtain approval from Chinese authorities to list on U.S exchanges. If we were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange and the value of our Ordinary Shares may significantly decline or be worthless, which would materially affect the interest of the investors." on page 23 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because our business is conducted in RMB and the price of our Ordinary Shares is quoted in United States dollars, changes in currency conversion rates may affect the value of your investments. Any significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. Changes in the conversion rate between the United States dollar and the RMB will affect that amount of proceeds we will have available for our business. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — Because our business is conducted in RMB and the price of our Ordinary Shares is quoted in United States dollars, changes in currency conversion rates may affect the value of your investments. Any significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. Changes in the conversion rate between the United States dollar and the RMB will affect that amount of proceeds we will have available for our business." on page 25 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in laws and regulations in China could adversely affect us and limit the legal protections available to you and us. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in laws and regulations in China could adversely affect us and limit the legal protections available to you and us." on page 26 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information, and the greater oversight by the Cybersecurity Administration of China over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and proposed offering. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal

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information, and the greater oversight by the Cybersecurity Administration of China over data security, particularly for companies seeking to list on a foreign exchange, could adversely impact our business and proposed offering" on page 27 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us, the majority of our directors or our management named in the prospectus based on foreign laws. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — You may experience difficulties in effecting service of legal process, enforcing foreign judgments or bringing actions in China against us, the majority of our directors or our management named in the prospectus based on foreign laws" on page 29 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The approval of the China Securities Regulatory Commission may be required in connection with this offering. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — The approval of the China Securities Regulatory Commission may be required in connection with this offering, and, if required, we cannot predict whether we will be able to obtain such approval" on page 31 of the prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment" on page 35 of the prospectus.

<u><u>Risks Related to Our Business</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may fail to anticipate or adapt to technology innovations in a timely manner, so our software design may fail to gain recognition from the customers and the software design industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The average selling prices of our products may decrease from time to time due to technological advancement, and we may not be able to pass onto our suppliers such decreases, which may in turn adversely affect our profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we fail to maintain an effective quality control system, our business could be materially and adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our limited operating history and our volatile historical results of operations could make it difficult for us to forecast our business and assess the seasonality and volatility in our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ongoing global coronavirus COVID-19 outbreak had caused significant disruptions in our business, which we expect will materially and adversely affect our results of operations and financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our management team lacks experience in managing a U.S.-listed public company and complying with laws applicable to such company, the failure of which may adversely affect our business, financial conditions and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will incur increased costs as a result of being a public company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Increases in labor costs in the PRC may adversely affect our business and our profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to make the substantial research and development investments that are required to remain competitive in our business

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may encounter difficulties in recruiting and retaining key personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may face difficulties in protecting our intellectual property rights.

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<u><u>Risks Related to this Offering</u></u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There has been no public market for our shares or Ordinary Shares prior to this offering, and you may not be able to resell our Ordinary Shares at or above the price you paid, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The trading price of the Ordinary Shares is likely to be volatile, which could result in substantial losses to investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience extreme stock price volatility unrelated to our actual or expected operating performance, financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If securities or industry analysts cease to publish research or reports about our business, or if they adversely change their recommendations regarding the Ordinary Shares, the market price for the Ordinary Shares and trading volume could decline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on the price appreciation of our Ordinary Shares for a return on your investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are an emerging growth company within the meaning of the Securities Act and may take advantage of certain reduced reporting requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There can be no assurance that we will not be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. holders of the Ordinary Shares.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nasdaq may apply additional and more stringent criteria for our initial and continued listing because we plan to have a small public offering and insiders will hold a large portion of the company's listed securities

#### Holding Foreign Companies Accountable Act (the "HFCAA")
Our Ordinary Shares may be prohibited from trading on a national exchange under the HFCAA if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if passed by the U.S. House of Representatives and signed into law, would reduce the period of time for foreign companies to comply with PCAOB audits to two consecutive years instead of three, thus reducing the time period for triggering the prohibition on trading. On December 2, 2021, the U.S. Securities and Exchange Commission ("SEC") adopted final amendments to its rules implementing the HFCAA. The rules apply to registrants the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB is unable to inspect or investigate (Commission-Identified Issuers) and require Commission-Identified Issuers identified by the SEC to submit documentation and make disclosures required under the HFCAA. In addition, the final amendments also establish procedures the SEC will follow in (i) determining whether a registrant is a "Commission-Identified Issuer" and (ii) prohibiting the trading on U.S. securities exchanges and in the over-the-counter market of securities of a "Commission-Identified Issuer" under the HFCAA. The final amendments are effective on January 10, 2022. The SEC will begin to identify and list Commission-Identified Issuers

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on its website shortly after registrants begin filing their annual reports for 2021. Pursuant to the HFCAA, the PCAOB issued a Determination Report on December 16, 2021, which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in mainland China or Hong Kong, a Special Administrative Region of the PRC, because of a position taken by one or more authorities in the PRC or Hong Kong. In addition, the PCAOB's report identified the specific registered public accounting firms which are subject to these determinations. Our auditor, Wei, Wei & Co., LLP, has been inspected by the PCAOB on a regular basis, with the last inspection completed in August 2020, and it is not subject to the determinations announced by the PCAOB on December 16, 2021. On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "Statement of Protocol") with the China Securities Regulatory Commission and the Ministry of Finance of China. The terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong. Under the PCAOB's rules, a reassessment of a determination under the HFCA Act may result in the PCAOB reaffirming, modifying or vacating the determination.

On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor's control. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.

If trading in our Ordinary Shares is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist our Ordinary Shares. See "Risk Factors — Risks Related to Doing Business in the PRC — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment." on page 35 of this prospectus.

#### PRC Limitations on Overseas Listing
On December 24, 2021, the CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures," collectively with the Draft Administrative Provisions, the "Draft Rules Regarding Overseas Listing"), both of which have a comment period that expires on January 23, 2022. The Draft Rules Regarding Overseas Listing lay out the filing regulation arrangement for both direct and indirect overseas listing, and clarify the determination criteria for indirect overseas listing in overseas markets. Among other things, if a domestic enterprise intends to indirectly offer and list securities in an overseas market, the record-filing obligation is with a major operating entity incorporated in the PRC and such filing obligation shall be completed within three working days after the overseas listing application is submitted. The required filing materials for an initial public offering and listing shall include but not limited to: regulatory opinions, record-filing, approval and other documents issued by competent regulatory authorities of relevant industries (if applicable); and security assessment opinion issued by relevant regulatory authorities (if applicable).

On February 17, 2023, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, and five supporting guidelines, which will come into effect on March 31, 2023. Pursuant to the Trial Measures, domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures and report relevant information to the

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CSRC pursuant to the requirements of the Trial Measures within three working days following its submission of initial public offerings or listing application. See "Regulations — Regulation Relating to M&A and Overseas Listings." Any failure or perceived failure by us to comply with such filing requirements under the Rules Regarding Overseas Listing may result in forced corrections, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.

If the CSRC or other regulatory agencies later promulgate new rules or explanations requiring that we obtain their approvals for this offering and any follow-on offering, we may be unable to obtain such approvals and we may face sanctions by the CSRC or other PRC regulatory agencies for failure to seek such approvals which could significantly limit or completely hinder our ability to offer or continue to offer securities to our investors and the securities currently being offered may substantially decline in value and be worthless.

Our PRC legal counsel, Jiangsu Junjin Law Firm, has advised us based on their understanding of the current PRC law, rules, and regulations that as of the date of this prospectus, no relevant laws or regulations in the PRC explicitly require us to seek approval from the CSRC or any other PRC governmental authorities for this offering, nor has our company or any of our subsidiaries received any inquiry, notice, warning or sanctions regarding our planned offering from the CSRC or any other PRC governmental authorities. However, since these statements and regulatory actions by the PRC government are newly published and official guidance and related implementation rules have not been issued, there remain some uncertainties as to how the rules will be interpreted or implemented in the context of an overseas offering and the potential impact such modified or new laws and regulations will have on the daily business operation of our PRC subsidiaries. We cannot assure you that relevant PRC government agencies, including the CSRC, would reach the same conclusion as we do. The PRC regulatory authorities may in the future promulgate laws, regulations or implementing rules that requires our company or our subsidiaries to obtain regulatory approval from Chinese authorities before listing in the U.S. If it is determined that CSRC approval is required for this offering, we may face sanctions by the CSRC or other PRC regulatory agencies for failure to seek CSRC approval for this offering.

We believe that we will be required to comply with the filing requirements or procedures set forth in the Trial Measures and that none of the situations that would clearly prohibit overseas offering and listing applies to us. In reaching this conclusion, we are relying on the advice of our PRC counsel, Jiangsu Junjin Law Firm, which has advised us that the holding company and our subsidiaries may be required to make filing with/obtain approval from Chinese authorities, including the filing procedures of the CSRC, and the Cyberspace Administration of China, if applicable, to list on U.S exchanges or issue securities to foreign investors.

It should be noted however, that there is uncertainty in relying on such advice of counsel in connection with draft legislation as the final version may be materially different and/or that the implementing regulations have yet to be promulgated. We cannot assure you that we will be able to get the clearance of filing procedures under the Trial Measures on a timely basis, or at all. Any failure of us to fully comply with new regulatory requirements may significantly limit or completely hinder our ability to continue to offer our Ordinary Shares, cause significant disruption to our business operations, and severely damage our reputation, which could materially and adversely affect our financial condition and results of operations and cause our Ordinary Shares to significantly decline in value or become worthless.

For more detailed information, see "Risk Factors — Risks Related to Doing Business in the PRC — The approval of the China Securities Regulatory Commission may be required in connection with this offering." on page 31 of this prospectus.

#### Recent Cybersecurity Regulatory Development in PRC
On November 7, 2016, the Standing Committee of the PRC National People's Congress issued the Cybersecurity Law of the PRC, or Cybersecurity Law, which became effective on June 1, 2017.

On June 10, 2021, the Standing Committee of the NPC promulgated the PRC Data Security Law, which became effective on September 1, 2021. The Data Security Law sets forth the data security protection obligations for entities and individuals handling personal data, including that no entity or individual may acquire such data by stealing or other illegal means, and the collection and use of such data should not exceed the necessary limits.

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On July 10, 2021, the Cyberspace Administration of China, or the CAC, issued a revised draft of the Measures for Cybersecurity Review 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, thirteen PRC regulatory agencies, namely, the CAC, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) required that, among others, in addition to "operator of critical information infrastructure" any "operator of network platform" holding personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review.

In addition, on November 14, 2021, the CAC released the Regulations on Network Data Security (draft for public comments), or the draft Regulations on Network Data Security, and accepted public comments until December 13, 2021. According to the draft Regulations on Network Data Security, if a data processor that processes personal data of more than one million users intends to list overseas, it shall apply for a cybersecurity review. In addition, data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the local cyberspace affairs administration department before January 31 of each year. Currently, the draft Regulations on Network Data Security has been released for public comment only, and its implementation provisions and anticipated adoption or effective date remains substantially uncertain and may be subject to change. We do not know what regulations will be adopted or how such regulations will affect us and our listing on Nasdaq. In the event that the CAC determines that we are subject to these regulations, we may be required to delist from Nasdaq and we may be subject to fines and penalties.

Our PRC legal counsel, Jiangsu Junjin Law Firm, has advised us based on their understanding of the current PRC law, rules, and regulations that we are not expected to be subject to the cybersecurity review by the CAC for this offering, given that: (i) using our products and services does not require users to provide any personal information; (ii) we do not possess any personal information of users in our business operations; and (iii) data processed in our business does not have a bearing on national security and thus may not be classified as core or important data by the authorities. However, if the draft Regulations on Network Data Security is adopted into law and we become listed on Nasdaq, our PRC subsidiaries likely will be required to perform annual data security assessment either by itself or retaining a third-party data security service provider and submit such data security assessment report to the local agency every year. Neither the CAC nor any other PRC regulatory agency or administration has contacted the Company in connection with our PRC subsidiaries' operations. The Company is currently not required to obtain regulatory approval from the CAC nor any other PRC authorities for the PRC subsidiaries' operations. However, there remains uncertainty as to how the Measures for Cybersecurity Review (2021) 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 Measures for Cybersecurity Review (2021). We cannot assure you 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. In the event that the applicable laws, regulations, or interpretations change such that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we cannot guarantee whether we can complete the registration process in a timely manner, or at all. Given such uncertainty, we may be further required to suspend our relevant business, shut down our website, or face other penalties, which could materially and adversely affect our business, financial condition, results of operations and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

For more detailed information, see "Risk Factors — Risks Related to Doing Business in the PRC — "We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information" on page 27 of this prospectus

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#### Permission Required from the PRC Authorities
As of the date of this prospectus, HUHU China, the WFOE and HUHU HK have obtained substantially all permissions and approvals to operate their respective business, including registration of incorporation, business license, permit for opening bank account, labor and employment recordation, social insurance registration, internet content provide registration record and such other permissions and approval as required by the PRC regulatory authorities.

As confirmed by our PRC counsel, Jiangsu Junjin Law Firm, we will not be subject to cybersecurity review with the CAC pursuant to the Cybersecurity Review Measures. No relevant laws or regulations in the PRC explicitly require us to seek approval from the CSRC for our overseas listing plan.

As of the date of this prospectus, we and our PRC subsidiaries have not received any inquiry, notice, warning, or sanctions regarding our planned overseas listing from the China Securities Regulatory Commission ("CSRC") or any other PRC governmental authorities. Since these statements and regulatory actions are newly published, however, official guidance and related implementation rules have not been issued. It is highly uncertain what the potential impact such modified or new laws and regulations will have on the daily business operations of our subsidiaries, our ability to accept foreign investments, and our listing on an U.S. exchange. The Standing Committee of the National People's Congress or PRC regulatory authorities may in the future promulgate laws, regulations, or implementing rules that require us, our subsidiaries to obtain regulatory approval from Chinese authorities before listing in the U.S.

If we do not receive or maintain the approval, or permission, or inadvertently conclude that such approval or permission is not required, or applicable laws, regulations, or interpretations change such that we are required to obtain approval or permission in the future, we may be subject to an investigation by competent regulators, fines or penalties, or an order prohibiting us from conducting an offering, and these risks could result in a material adverse change in our operations and the value of our Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless. See "Risk Factors — Risks Related to Doing Business in the PRC — *We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information*" on page 27 of this prospectus."

#### Selected Condensed Consolidating Financial Data
The tables below are condensed consolidating financial data summarizing separately the financial position and cash flows of HUHUTECH. ("Parent" in the tables below), HUHU HK, WFOE, and HUHU China ("Subsidiaries" in the tables below). The financial data for the Parent reflects the operations from the date of incorporation on July 8, 2021.

#### SELECTED CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND <br>COMPREHENSIVE INCOME

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Revenues | $— | $6318135 | $— | $6318135 |
|  Equity of subsidiaries | $1012252 | $— | $(1012252) | $— |
|  Net income | $1012252 | $1012252 | $(1012252) | $1012252 |
|  Comprehensive income | $840129 | $840129 | $(840129) | $840129 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** |
|  | **<br> Parent** | **<br> Subsidiaries** | **<br> Eliminations** | **Consolidated<br> Total** |
|  Revenues | $— | $10156441 | $— | $10156441 |
|  Equity of subsidiaries | $692615 | $— | $(692615) | $— |
|  Net income | $692615 | $1369042 | $(692615) | $1369042 |
|  Comprehensive income | $727181 | $1419024 | $(727181) | $1419024 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** |
|  | **<br> Parent** | **<br> Subsidiaries** | **<br> Eliminations** | **Consolidated<br> Total** |
|  Revenues | $— | $4484984 | $— | $4484984 |
|  Equity of subsidiaries | $— | $— | $— | $— |
|  Net income | $— | $1064470 | $— | $1064470 |
|  Comprehensive income | $— | $1117038 | $— | $1117038 |

---

#### SELECTED CONDENSED CONSOLIDATING BALANCE SHEETS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of June 30, 2022 (Unaudited)** | **As of June 30, 2022 (Unaudited)** | **As of June 30, 2022 (Unaudited)** | **As of June 30, 2022 (Unaudited)** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Cash | $— | $1109463 | $— | $1109463 |
|  Total current assets | $— | $9241167 | $— | $9241167 |
|  Investments in subsidiaries | $1567310 | $— | $(1567310) | $— |
|  Total non-current assets | $1567310 | $1238990 | $(1567310) | $1238990 |
|  Total assets | $1567310 | $10480157 | $(1567310) | $10480157 |
|  Total liabilities | $— | $6779171 | $— | $6779171 |
|  Total shareholders' equity (deficit) | $1567310 | $3700986 | $(1567310) | $3700986 |
|  Total liabilities and shareholders' equity | $1567310 | $10480157 | $(1567310) | $10480157 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2021** | **As of December 31, 2021** | **As of December 31, 2021** | **As of December 31, 2021** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Cash | $— | $75059 | $— | $75059 |
|  Total current assets | $— | $6486656 | $— | $6486656 |
|  Investments in subsidiaries | $727181 | $— | $(727181) | $— |
|  Total non-current assets | $727181 | $1395925 | $(727181) | $1395925 |
|  Total assets | $727181 | $7882581 | $(727181) | $7882581 |
|  Total liabilities | $— | $5021724 | $— | $5021724 |
|  Total shareholders' equity (deficit) | $727181 | $2860857 | $(727181) | $2860857 |
|  Total liabilities and shareholders' equity | $727181 | $7882581 | $(727181) | $7882581 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of December 31, 2020** | **As of December 31, 2020** | **As of December 31, 2020** | **As of December 31, 2020** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Cash | $— | $155240 | $— | $155240 |
|  Total current assets | $— | $2729506 | $— | $2729506 |
|  Total non-current assets | $— | $890295 | $— | $890295 |
|  Total assets | $— | $3619801 | $— | $3619801 |
|  Total liabilities | $— | $2639009 | $— | $2639009 |
|  Total shareholders' deficit | $— | $980792 | $— | $980792 |
|  Total liabilities and shareholders' deficit | $— | $3619801 | $— | $3619801 |

---

#### SELECTED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** | **For the Six Months June 30, 2022 (Unaudited)** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Net cash provided by operating activities | $— | $191774 | $— | $191774 |
|  Net cash (used in) investing activities | $— | $(10752) | $— | $(10752) |
|  Net cash provided by financing activities | $— | $556397 | $— | $556397 |

---

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** | **For the Year Ended December 31, 2021** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Net cash (used in) operating activities | $— | $(448158) | $— | $(448158) |
|  Net cash (used in) investing activities | $— | $(283854) | $— | $(283854) |
|  Net cash provided by financing activities | $— | $690738 | $— | $690738 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** | **For the Year Ended December 31, 2020** |
|  | **Parent** | **Subsidiaries** | **Eliminations** | **Consolidated Total** |
|  Net cash (used in) operating activities | $— | $(122793) | $— | $(122793) |
|  Net cash (used in) investing activities | $— | $(524994) | $— | $(524994) |
|  Net cash provided by financing activities | $— | $1138079 | $— | $1113079 |

---

#### Corporate Information
Our principal executive office is located at 3-1208 Tiananzhihui Compound 228 Linghu Road Xinwu District, Wuxi City, Jiangsu Province People's Republic of China 214135. The telephone number of our principal executive offices is +0510 88681689. Our registered office is located at Harneys Fiduciary (Cayman) Limited, 4<sup>th</sup> Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands. Our agent for service for process in the United States is Cogency Global Inc., located at 122 E 42<sup>nd</sup> St 18<sup>th</sup> Fl, New York, NY 10168.

#### Implications of Being an Emerging Growth Company
We qualify as an "emerging growth company" as defined in the Jumpstart our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of specified reduced reporting and other burdens that are otherwise applicable generally to public companies. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to include 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 disclosure; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002.

We may take advantage of these provisions for up to five years or such earlier time that we are no longer 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 revenue of at least US$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 US$1.0 billion in non-convertible debt; or (d) the date on which we are deemed to be a "large accelerated filer" under the Securities Exchange Act of 1934, as amended, or the Exchange Act, which would occur if the market value of the Ordinary Shares that are held by non-affiliates exceeds US$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.

#### Implication 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are not required to provide as many Exchange Act reports or provide periodic and current reports as frequently, as a domestic public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are not required to comply with Section 16 of the Exchange Act requiring insiders to file public reports of their share ownership and trading activities and establishing insider liability for profits realized from any "short-swing" trading transaction.

#### Implications of Being a Controlled Company
Upon completion of this offering, our Director, Yujun Xiao, will beneficially own approximately [ ]% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the over-allotment option, or [ ]%, assuming full exercise of the over-allotment option. As a result, we will be deemed a "controlled company" for the purpose of the Nasdaq Stock Market 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 requirements that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a majority of our board of directors consist of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our director nominees be selected or recommended solely by independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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" exemption under the Nasdaq listing rules, we could elect to rely on this exemption after we complete this offering. If we elected to rely on the "controlled company" exemption, a majority of the members of our Board of Directors might not be independent directors and our nominating and corporate governance and compensation committees might not consist entirely of independent directors after we complete this offering.

Additionally, pursuant to Nasdaq's phase-in rules for newly listed companies, we have one year from the date on which we are first listed on Nasdaq to comply fully with the Nasdaq listing standards. We do not plan to rely on the phase-in rules for newly listed companies and will comply fully with the Nasdaq listing standards at the time of listing.

As a foreign private issuer, however, Nasdaq corporate governance rules allow us to follow corporate governance practice in our home country, PRC, with respect to appointments to our board of directors and committees in lieu of Nasdaq corporate governance rules. We intend to follow home country practice as permitted by Nasdaq rather than rely on the "controlled company" exception to the corporate governance rules. See "Risk Factors — Risks Related to this Offering and the Trading Market — Because we are a foreign private issuer and are exempt from certain Nasdaq corporate governance standards applicable to U.S. issuers, you will have less protection than you would have if we were a domestic issuer." Accordingly, you would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq.

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#### The Offering

---

| | |
|:---|:---|
|  Shares Offered by Us: | — Ordinary Shares |
|  Shares Outstanding Prior to Completion of this Offering: | <br>5,000,000 Ordinary Shares |
|  Ordinary Shares Outstanding Immediately after this Offering: | <br>— Ordinary Shares |
|  Assumed Initial Public Offering Price per Share: | <br>We currently estimate that the initial public offering price will be between $— to $— per ordinary share |
|  Gross Proceeds to Us Before Expenses: | $— assuming the offering price is $5.00 per ordinary share |
|  Underwriter Warrants: | We will issue to the Underwriter warrants entitling the Underwriter to purchase 5% of the aggregate number of Ordinary Shares issued in this offering, at an exercise price per share equal to 110% of the initial public offering price per share (the "Underwriter Warrants"). The Underwriter Warrants are exercisable commencing on the effective date of the offering at any time, and from time to time, in whole or in part, through the date of expiration and will expire on the fifth anniversary from the commencement of sale of this offering. |
|  Lock-up: | Our directors, officers and shareholders have agreed with the Underwriter, subject to certain exceptions, not to sell, transfer or dispose of, directly or indirectly, any of our Ordinary Shares or securities convertible into or exercisable or exchangeable for our Ordinary Shares for a period of — months after this offering is completed. See "Underwriting" for more information. |
|  Listing: | We have applied to list our Ordinary Shares listed on the Nasdaq Capital Market. |
|  Nasdaq Capital Market Symbol: | "HUHU" |
|  Transfer Agent: |  |
|  Risk Factors: | Investing in these securities involves a high degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "Risk Factors" section of this prospectus before deciding to invest in our Ordinary Shares. |
|  Use of Proceeds: | We intend to use the proceeds from this offering for research and development, advertising and marketing, and general working capital. See "Use of Proceeds" for more information. |

---

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#### RISK FACTORS
*An investment in our Ordinary Shares involves a high degree of risk. Before deciding whether to invest in our Ordinary Shares, you should consider carefully the risks described below, together with all of the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operation" and our consolidated financial statements and related notes. If any of these risks actually occurs, our business, financial condition, results of operations or cash flow could be materially and adversely affected, which could cause the trading price of our Ordinary Shares to decline, resulting in a loss of all or part of your investment. The risks described below and in the documents referenced above 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 our Ordinary Shares if you can bear the risk of loss of your entire investment.*

<u>**<u>Risks Related to Doing Business in the PRC</u>**</u>

***PRC regulations relating to investments in offshore companies by PRC residents may subject our PRC-resident beneficial owners or our PRC subsidiaries to liability or penalties, limit our ability to inject capital into our PRC subsidiaries or limit our PRC subsidiaries' ability to increase their registered capital or distribute profits.***

As an offshore holding company of our PRC subsidiaries, HUHUTECH may make loans or make additional capital contributions to our subsidiaries, subject to satisfaction of applicable governmental registration and approval requirements.

Any loans we extend to our PRC subsidiaries, which are treated as foreign-invested enterprises under PRC law, cannot exceed the statutory foreign debt upper limit and must be registered with the local counterpart of the SAFE, and a foreign exchange loan registration with the NDRC if required.

In July 2014, SAFE promulgated the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents' Offshore Investment and Financing and Roundtrip Investment through Special Purpose Vehicles, or SAFE Circular 37, which replaces the previous SAFE Circular 75. SAFE Circular 37 requires PRC residents, including PRC individuals and PRC corporate entities, to register with SAFE or its local branches in connection with their direct or indirect offshore investment activities. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be applicable to any offshore acquisitions that we may make in the future.

Under SAFE Circular 37, PRC residents who make, or have prior to the implementation of SAFE Circular 37 made, direct or indirect investments in offshore special purpose vehicles, or SPVs, are required to register such investments with SAFE or its local branches. In addition, any PRC resident who is a direct shareholder of an SPV, is required to update its registration with the local branch of SAFE with respect to that SPV, to reflect any material change. Moreover, any subsidiary of such SPV in China is required to urge the PRC resident shareholders to update their registration with the local branch of SAFE to reflect any material change. If any PRC resident shareholder of such SPV fails to make the required registration or to update the registration, the subsidiary of such SPV in China may be prohibited from distributing its profits or the proceeds from any capital reduction, share transfer or liquidation to the SPV, and the SPV may also be prohibited from making additional capital contributions into its subsidiaries in China. In February, 2015, SAFE promulgated a Notice on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment, or SAFE Notice 13. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct investments and outbound direct investments, including those required under SAFE Circular 37, must be filed with qualified banks instead of SAFE. Qualified banks should examine the applications and accept registrations under the supervision of SAFE. We have used our best efforts to notify PRC residents or entities directly or indirectly hold shares in our Cayman Islands holding company and who are known to us as PRC residents to complete the foreign exchange registrations. However, we may not be informed of the identities of all the PRC residents or entities holding direct or indirect interest in our company, nor can we compel our beneficial owners to comply with SAFE registration requirements. Currently, all of our shareholders have completed Circular 37 Registration and are in compliance. All our shareholders who are PRC residents have completed Circular 37 Registration, but we cannot assure that all such shareholders will in the future make, obtain or update any applicable registrations or approvals required by, SAFE regulations. Failure by such shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, and limit our PRC subsidiaries' ability to make distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects.

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Furthermore, as these foreign exchange and outbound investment-related regulations are relatively new and their interpretation and implementation has been constantly evolving, it is unclear how these regulations, and any future regulation concerning offshore or cross-border investments and transactions, will be interpreted, amended and implemented by the relevant government authorities. For example, we may be subject to a more stringent review and approval process with respect to our foreign exchange activities, such as remittance of dividends and foreign-currency-denominated borrowings, which may adversely affect our financial condition and results of operations. We cannot assure you that we have complied or will be able to comply with all applicable foreign exchange and outbound investment-related regulations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict our ability to implement our acquisition strategy and could adversely affect our business and prospects.

In light of the various requirements imposed by PRC regulations on loans to, and direct investment in, PRC entities by offshore holding companies, we cannot assure you that we will be able to complete the necessary government registrations or obtain the necessary government approvals on a timely basis, if at all, with respect to future loans to the PRC subsidiaries or future capital contributions by us to our PRC subsidiary. If we fail to complete such registrations or obtain such approvals, our ability to use the proceeds we expect to receive from this offering and to fund our PRC operations may be negatively affected, which could materially and adversely affect our liquidity and our ability to fund and expand our business.

***Substantial uncertainties exist with respect to the interpretation and implementation of the PRC Foreign Investment Law and how it may impact the viability of our current corporate structure, corporate governance and business operations.***

On March 15, 2019, the National People's Congress approved the PRC Foreign Investment Law, which took effect on January 1, 2020 and replaced three existing laws on foreign investments in China, namely, the PRC Equity Joint Venture Law, the PRC Cooperative Joint Venture Law and the Wholly Foreign-owned Enterprise Law, together with their implementation rules and ancillary regulations. The PRC Foreign Investment Law embodies an expected PRC regulatory trend to rationalize its foreign investment regulatory regime in line with prevailing international practice and the legislative efforts to unify the corporate legal requirements for both foreign and domestic invested enterprises in China. The PRC Foreign Investment Law establishes the basic framework for the access to, and the promotion, protection and administration of foreign investments in view of investment protection and fair competition.

According to the PRC Foreign Investment Law, "foreign investment" refers to investment activities directly or indirectly conducted by one or more natural persons, business entities, or otherwise organizations of a foreign country (collectively referred to as "foreign investor") within China, and the investment activities include the following situations: (i) a foreign investor, individually or collectively with other investors, establishes a foreign-invested enterprise within China; (ii) a foreign investor acquires stock shares, equity shares, shares in assets, or other like rights and interests of an enterprise within China; (iii) a foreign investor, individually or collectively with other investors, invests in a new project within China; and (iv) investments in other means as provided by laws, administrative regulations, or the State Council.

According to the PRC Foreign Investment Law, the State Council will publish or approve to publish the "negative list" for special administrative measures concerning foreign investment. The PRC Foreign Investment Law grants national treatment to foreign-invested entities, or FIEs, except for those FIEs that operate in industries deemed to be either "restricted" or "prohibited" in the "negative list. The PRC Foreign Investment Law provides that FIEs operating in foreign restricted or prohibited industries will require market entry clearance and other approvals from relevant PRC governmental authorities. If a foreign investor is found to invest in any prohibited industry in the "negative list", such foreign investor may be required to, among other aspects, cease its investment activities, dispose of its equity interests or assets within a prescribed time limit and have its income confiscated. If the investment activity of a foreign investor is in breach of any special administrative measure for restrictive access provided for in the "negative list", the relevant competent department shall order the foreign investor to make corrections and take necessary measures to meet the requirements of the special administrative measure for restrictive access.

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Pursuant to the PRC Foreign Investment Law, the Implementing Rules of the PRC Foreign Investment Law, and the Information Reporting Measures for Foreign Investment jointly promulgated by the MOFCOM and the SAMR, which took effect on January 1, 2020, the PRC government shall establish a foreign investment information reporting system, according to which foreign investors or foreign-invested enterprises shall submit investment information to the competent department for commerce concerned through the enterprise registration system and the enterprise credit information publicity system, and a security review system under which the security review shall be conducted for foreign investment affecting or likely affecting the state security.

Furthermore, the PRC Foreign Investment Law provides that foreign invested enterprises established according to the existing laws regulating foreign investment may maintain their structure and corporate governance within five years after the implementing of the PRC Foreign Investment Law.

In addition, the PRC Foreign Investment Law also provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, that a foreign investor may freely transfer into or out of China, in Renminbi or a foreign currency, its contributions, profits, capital gains, income from disposition of assets, royalties of intellectual property rights, indemnity or compensation lawfully acquired, and income from liquidation, among others, within China; local governments shall abide by their commitments to the foreign investors; governments at all levels and their departments shall enact local normative documents concerning foreign investment in compliance with laws and regulations and shall not impair legitimate rights and interests, impose additional obligations onto FIEs, set market access restrictions and exit conditions, or intervene with the normal production and operation activities of FIEs; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; and mandatory technology transfer is prohibited.

#### Failure to obtain prior approval from the MOFCOM for or in connection with the Company's reorganization may have an adverse effect on our operations.
Article 11 of the Provisions on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors ("M&A Provisions") provides that mergers and acquisitions of domestic companies with which they are affiliated by domestic companies, enterprises or natural persons in the name of companies legally established or controlled by them outside of China shall be reported to the Ministry of Commerce for approval. Article 11 of the M&A Provisions further provides that the parties thereto shall not evade the above provision by the domestic investment of a foreign investment enterprise or by any other means.

As of the date of this prospectus, we have not applied for approval from the Ministry of Commerce related to the reorganization. As advised by our PRC legal counsel, the Company's reorganization, pursuant to the M&A Provisions, may be subject to prior approval from the MOFCOM. Not obtaining such prior approval may adversely affect our business operations. Pursuant to Article 38 of the PRC Foreign Investment Law, the violations of laws and regulations committed by foreign investors and foreign-funded enterprises shall be investigated by the relevant departments according to the law and included in the credit information system according to the relevant provisions issued by the state. As such, we may face regulatory actions or penalties imposed by MOFCOM, foreign exchange control authorities or other competent PRC regulators for failing to obtain MOFCOM's approval prior to our reorganization. Although there remain uncertainties as to the actions that may be taken, any such action may adversely affect our business, financial condition, results of operations and prospects.

***The Chinese government exerts substantial influence over the manner in which we must conduct our business activities. We will likely be required to make filing with/obtain approval from Chinese authorities to list on U.S exchanges. If we were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange and the value of our Ordinary Shares may significantly decline or be worthless, which would materially affect the interest of the investors.***

The Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations.

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For example, the Chinese cybersecurity regulator announced on July 2, 2021 that it had begun an investigation of Didi Global Inc. (NYSE: DIDI) and two days later ordered that the Company's app be removed from smartphone app stores.

As such, the Company's business may be subject to various government and regulatory interference in the provinces in which they operate. The Company could be subject to regulation by various political and regulatory entities, including various local and municipal agencies and government sub-divisions. The Company may incur increased costs necessary to comply with existing and newly adopted laws and regulations or penalties for any failure to comply. The Chinese government may intervene or influence our operations at any time with little advance notice, which could result in a material change in our operations and in the value of our Ordinary Shares. Any actions by the Chinese government to exert more oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers could significantly 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.

Furthermore, it is uncertain when and whether the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission from any of the PRC federal or local government to obtain such permission and has not received any denial to list on the U.S. exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or industry. As a result, our Ordinary Shares may decline in value dramatically or even become worthless should we become subject to new requirement to obtain permission from the PRC government to list on U.S. exchange in the future.

The General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severe and Lawful Crackdown on Illegal Securities Activities, which was available to the public on July 6, 2021. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies. These opinions proposed to take effective measures, such as promoting the construction of relevant regulatory systems, to deal with the risks and incidents facing China-based overseas-listed companies and the demand for cybersecurity and data privacy protection. Moreover, On December 28, 2021, thirteen PRC regulatory agencies, namely, the CAC, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) required that, among others, in addition to "operator of critical information infrastructure" any "operator of network platform" holding 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 aforementioned policies and any related implementation rules to be enacted may subject us to additional compliance requirement in the future. As these opinions were recently issued, official guidance and interpretation of the opinions remain unclear in several respects at this time. Therefore, we cannot assure you that we will remain fully compliant with all new regulatory requirements of these opinions or any future implementation rules on a timely basis, or at all. See "— We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information" and "The approval of the China Securities Regulatory Commission may be required in connection with this offering, and, if required, we cannot predict whether we will be able to obtain such approval."

***HUHUTECH is a holding company, and will rely on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares.***

HUHUTECH is a holding company and conduct substantially all of our business through our PRC subsidiaries. We may rely on dividends to be paid by our PRC subsidiaries to fund our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders, to service any debt we may incur and to pay our operating expenses. If our PRC subsidiary incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

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Under PRC laws and regulations, the WFOE and HUHU China may pay dividends only out of its accumulated profits as determined in accordance with PRC accounting standards and regulations. In addition, the WFOE is required to set aside at least 10% of its accumulated after-tax profits each year, if any, to fund a certain statutory reserve fund, until the aggregate amount of such fund reaches 50% of its registered capital.

Our PRC subsidiaries generate primarily all of their revenue in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may limit the ability of our PRC subsidiaries to use its Renminbi revenues to pay dividends to us. The PRC government may continue to strengthen its capital controls, and more restrictions and substantial vetting process may be put forward by SAFE for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other kinds of payments to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business. As of the date of this prospectus, neither HUHUTECH nor any of its subsidiaries have paid dividends or made distributions to their shareholders. We do not expect to pay dividends in the foreseeable future.

In addition, the Enterprise Income Tax Law, or EIT, and its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by Chinese companies to non-PRC-resident enterprises unless otherwise exempted or reduced according to treaties or arrangements between the PRC central government and governments of other countries or regions where the non-PRC resident enterprises are incorporated. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other distributions to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

***Because our business is conducted in RMB and the price of our Ordinary Shares is quoted in United States dollars, changes in currency conversion rates may affect the value of your investments. Any significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. Changes in the conversion rate between the United States dollar and the RMB will affect the amount of proceeds we will have available for our business.***

Our business is conducted in the PRC, our books and records are maintained in RMB, which is the currently of the PRC, and the financial statements that we file with the SEC and provide to our shareholders are presented in United States dollars. Changes in the exchange rate between the RMB and dollar affect the value of our assets and the results of our operations in United States dollars. The value of the RMB against the United States dollar and other currencies may fluctuate and is affected by, among other things, changes in the PRC's political and economic conditions and perceived changes in the economy of the PRC and the United States. Any significant revaluation of the RMB may materially and adversely affect our cash flows, revenue and financial condition. Further, our Ordinary Shares offered by this prospectus are offered in United States dollars, we will need to convert the net proceeds we receive into RMB in order to use the funds for our business. Changes in the conversion rate between the United States dollar and the RMB will affect that amount of proceeds we will have available for our business.

The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China's foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar, and the 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, the Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. On November 30, 2015, the Executive Board of the International Monetary Fund (IMF) completed the regular five-year review of the basket of currencies that make up the Special Drawing Right, or the SDR, and decided that with effect from October 1, 2016, Renminbi is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the Euro, the Japanese yen and the British pound. In the fourth quarter of 2016, the Renminbi depreciated significantly in the backdrop of a surging U.S. dollar and persistent capital outflows of China.

This depreciation halted in 2017, and the RMB appreciated approximately 7% against the U.S. dollar during this one-year period. The Renminbi in 2018 depreciated approximately by 5% against the U.S. dollar. Starting from the beginning of 2019, the Renminbi has depreciated significantly against the U.S. dollar again. In early

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August 2019, the PBOC set the Renminbi's daily reference rate at RMB7.0039 to US$1.00, the first time that the exchange rate of Renminbi to U.S. dollar exceeded 7.0 since 2008. 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 we cannot assure you that the 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.

There remains significant international pressure on the Chinese government to adopt a flexible currency policy to allow the Renminbi to appreciate against the U.S. dollar. Significant revaluation of the Renminbi may have a material and adverse effect on your investment. Substantially all of our revenues and costs are denominated in Renminbi. Any significant revaluation of Renminbi may materially and adversely affect our revenues, earnings and financial position, and the value of, and any dividends payable on, our Ordinary Shares in U.S. dollars.

To the extent that we need to convert U.S. dollars we receive from this offering into Renminbi for capital expenditures and working capital and other business purposes, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the Renminbi amount we would receive from the conversion. Conversely, a significant depreciation of the Renminbi against the U.S. dollar may significantly reduce the U.S. dollar equivalent of our earnings, which in turn could adversely affect the price of our Ordinary Shares, and if we decide to convert Renminbi into U.S. dollars for the purpose of making dividend payments on our Ordinary Shares, strategic acquisitions or investments or other business purposes, appreciation of the U.S. dollar against the Renminbi would have a negative effect on the U.S. dollar amount available to us.

our exposure to exchange rate fluctuations. To date, we have not entered into any hedging transactions in an effort to reduce our exposure to foreign currency exchange risk. While we may decide to enter into hedging transactions in the future, the availability and effectiveness of these hedges may be limited and we may not be able to adequately hedge our exposure or at all. In addition, our currency exchange losses may be magnified by PRC exchange control regulations that restrict our ability to convert Renminbi into foreign currency. As a result, fluctuations in exchange rates may have a material adverse effect on your investment.

***Uncertainties with respect to the PRC legal system, including uncertainties regarding the enforcement of laws, and sudden or unexpected changes in laws and regulations in China could adversely affect us and limit the legal protections available to you and us.***

The PRC subsidiary was formed under and are governed by the laws of the PRC. The PRC legal system is based on written statutes. Prior court decisions may be cited for reference, but have limited precedential value. In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general, such as foreign investment, corporate organization and governance, commerce, taxation and trade. As a significant part of our business is conducted in China, our operations are principally governed by PRC laws and regulations. However, since the PRC legal system continues to evolve rapidly, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties, which may limit legal protections available to us. Uncertainties due to evolving laws and regulations could also impede the ability of a China-based company, such as our company, to obtain or maintain permits or licenses required to conduct business in China. In the absence of required permits or licenses, governmental authorities could impose material sanctions or penalties on us. In addition, some regulatory requirements issued by certain PRC government authorities may not be consistently applied by other PRC government authorities (including local government authorities), thus making strict compliance with all regulatory requirements impractical, or in some circumstances impossible. For example, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law or contract. However, since PRC administrative and court authorities have discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to predict the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems. Furthermore, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all and may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after the violation. Such uncertainties, including uncertainty over the scope and effect of our contractual, property (including intellectual property) and procedural rights, could materially and adversely affect our business and impede our ability to continue our operations.

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Furthermore, if China adopts more stringent standards with respect to environmental protection or corporate social responsibilities, we may incur increased compliance costs or become subject to additional restrictions in our operations. Intellectual property rights and confidentiality protections in China may also not be as effective as in the United States or other countries. In addition, we cannot predict the effects of future developments in the PRC legal system on our business operations, including the promulgation of new laws, or changes to existing laws or the interpretation or enforcement thereof. These uncertainties could limit the legal protections available to us and our investors, including you. Moreover, any litigation in China may be protracted and result in substantial costs and diversion of our resources and management attention.

The PRC government has significant oversight and discretion over the conduct of our business and may intervene or influence our operations as the government deems appropriate to further regulatory, political and societal goals. The PRC government has recently published new policies that significantly affected certain industries such as the education and internet industries, and we cannot rule out the possibility that it will in the future release regulations or policies regarding our industry that could adversely affect our business, financial condition and results of operations. Furthermore, the PRC government has recently indicated an intent to exert more oversight and control over securities offerings and other capital markets activities that are conducted overseas and foreign investment in China-based companies like us. Any such action, once taken by the PRC government, could significantly 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 in extreme cases, become worthless.

***We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. We may be liable for improper use or appropriation of personal information.***

We may become subject to a variety of laws and regulations in the PRC regarding privacy, data security, cybersecurity, and data protection. These laws and regulations are continuously evolving and developing. The scope and interpretation of the laws that are or may be applicable to us are often uncertain and may be conflicting, particularly with respect to foreign laws. In particular, there are numerous laws and regulations regarding privacy and the collection, sharing, use, processing, disclosure, and protection of personal information and other user data. Such laws and regulations often vary in scope, may be subject to differing interpretations, and may be inconsistent among different jurisdictions.

We expect to obtain information about various aspects of our operations as well as regarding our employees and third parties. We also maintain information about various aspects of our operations as well as regarding our employees. The integrity and protection of our customer, employee and company data is critical to our business. We do not collect personal information from our customers. Our employees expect that we will adequately protect their personal information. We are required by applicable laws to keep strictly confidential the personal information that we collect, and to take adequate security measures to safeguard such information.

The PRC Criminal Law, with its latest amendment (Amendment 11) effective on March 1, 2021, prohibits institutions, companies and their employees from selling or otherwise illegally disclosing a citizen's personal information obtained during the course of performing duties or providing services or obtaining such information through theft or other illegal ways. On November 7, 2016, the Standing Committee of the PRC National People's Congress issued the Cybersecurity Law of the PRC, or Cybersecurity Law, which became effective on June 1, 2017.

Pursuant to the Cybersecurity Law, network operators must not, without users' consent, collect their personal information, and may only collect users' personal information necessary to provide their services. Providers are also obliged to provide security maintenance for their products and services and shall comply with provisions regarding the protection of personal information as stipulated under the relevant laws and regulations.

The Civil Code of the PRC (issued by the PRC National People's Congress on May 28, 2020 and effective from January 1, 2021) provides main legal basis for privacy and personal information infringement claims under the Chinese civil laws. PRC regulators, including the Cyberspace Administration of China, Ministry of Industry and Information Technology, and the Ministry of Public Security have been increasingly focused on regulation in the areas of data security and data protection.

The PRC regulatory requirements regarding cybersecurity are constantly evolving. For instance, various regulatory bodies in China, including the Cyberspace Administration of China, the Ministry of Public Security and the SAMR, have enforced data privacy and protection laws and regulations with varying and evolving standards and interpretations.

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In November 2016, the Standing Committee of China's National People's Congress passed China's first Cybersecurity Law ("CSL"), which became effective in June 2017. The CSL is the first PRC law that systematically lays out the regulatory requirements on cybersecurity and data protection, subjecting many previously under-regulated or unregulated activities in cyberspace to government scrutiny. The legal consequences of violation of the CSL include penalties of warning, confiscation of illegal income, suspension of related business, winding up for rectification, shutting down the websites, and revocation of business license or relevant permits.

On June 10, 2021, the Standing Committee of the NPC promulgated the PRC Data Security Law, which took effect on September 1, 2021. The Data Security Law sets forth the data security protection obligations for entities and individuals handling personal data, including that no entity or individual may acquire such data by stealing or other illegal means, and the collection and use of such data should not exceed the necessary limits The costs of compliance with, and other burdens imposed by, CSL and any other cybersecurity and related laws may limit the use and adoption of our products and services and could have an adverse impact on our business.

On July 10, 2021, the Cyberspace Administration of China ("CAC") issued a revised draft of the Measures for Cybersecurity Review for public comments. Further, on December 28, 2021, thirteen PRC regulatory agencies, namely, the CAC, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) authorized the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, and required that, among others, in addition to "operator of critical information infrastructure" any "operator of network platform" holding 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) further elaborated 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; (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 if going public; and (iii) the risks of network information security. The cybersecurity review will also look into the potential national security risks from overseas IPOs.

On November 14, 2021, the CAC published the Regulations on Network Data Security (draft for public comments), or the draft Regulations on Network Data Security, which reiterates that data processors that process the personal information of more than one million users intends to list overseas should apply for a cybersecurity review. In addition, data processors that process important data or are listed overseas shall carry out an annual data security assessment on their own or by engaging a data security services institution, and the data security assessment report for the prior year should be submitted to the local cyberspace affairs administration department before January 31 of each year. Currently, the draft Regulations on Network Data Security has been released for public comment only, and its implementation provisions and anticipated adoption or effective date remains substantially uncertain and may be subject to change. We do not know what regulations will be adopted or how such regulations will affect us and our listing on Nasdaq. In the event that the CAC determines that we are subject to these regulations, we may be required to delist from Nasdaq and we may be subject to fines and penalties.

We do not expect to be subject to the cybersecurity review by the CAC for this offering, given that: (i) using our products and services does not require users to provide any personal information; (ii) we do not possess any personal information from users in our business operations; and (iii) data processed in our business does not have a bearing on national security and thus may not be classified as core or important data by the authorities. However, if the draft Regulations on Network Data Security is adopted into law and we become listed on Nasdaq, our PRC subsidiaries likely will be required to perform annual data security assessment either by itself or retaining a third-party data security service provider and submit such data security assessment report to the local agency every year. Neither the CAC nor any other PRC regulatory agency or administration has contacted the Company in connection with the PRC subsidiaries. Neither the Company nor the PRC subsidiaries are currently required to obtain regulatory approval from the CAC nor any other PRC authorities. However, there remains uncertainty as to how the Measures for Cybersecurity Review (2021) 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 Measures for Cybersecurity Review (2021). We cannot assure you that PRC regulatory

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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. Our PRC subsidiaries currently have obtained substantially all permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations in the PRC, including the business license. In the event that the applicable laws, regulations or interpretations change such that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we cannot guarantee whether we can complete the registration process in a timely manner, or at all. If we inadvertently conclude that such approval is not required, fail to obtain and maintain such approvals, licenses or permits required for our business or respond to changes in the regulatory environment, we could be subject to liabilities, penalties and operational disruption, which may materially and adversely affect our business, operating, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

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

We are an exempted company incorporated under the laws of the Cayman Islands, however, we conduct substantially all of our operations in China and substantially all of our assets are located in China. In addition, all our senior executive officers and the majority of our directors reside within China for a significant portion of the time and all of them are PRC nationals. As a result, it may be difficult for our shareholders to effect service of process upon us or our management residing in China. In addition, China does not have treaties providing for reciprocal recognition and enforcement of judgments of courts with the Cayman Islands and some other countries and regions. Therefore, recognition and enforcement in China of judgments of a court in any of these non-PRC jurisdictions in relation to any matter not subject to a binding arbitration provision may be difficult or impossible.

#### It may be difficult for overseas regulators to conduct investigation or collect evidence within China.
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 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 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. See also "— Risks Related to Our Ordinary Shares and this Offering — 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" for risks associated with investing in us as a Cayman Islands company.

***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 and ordinary shareholders.***

Under the *PRC Enterprise Income Tax Law* and its implementation rules, an enterprise established outside of the PRC with "de facto management body" within China is considered a "resident enterprise" and will be subject to the 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 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,* or 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. Although this circular only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners,

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the criteria set forth in the circular may reflect SAT's general position on how the "de facto management body" should be applied in determining the tax resident status of all offshore enterprises. According to SAT Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in China; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in China; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in China; and (iv) at least 50% of voting board members or senior executives habitually reside in China.

We believe none of our entities outside of China is a PRC resident enterprise for PRC tax purposes. 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." If the PRC tax authorities determine that HUHUTECH is a PRC resident enterprise for enterprise income tax purposes, we could be subject to PRC tax at a rate of 25% on our worldwide income, which could materially reduce our net income, and we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises, including the holders of our Ordinary Shares. In addition, non-resident enterprise shareholders (including our ordinary shareholders) may be subject to PRC tax at a rate of 10% on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated as sourced from within China. Furthermore, if we are deemed a PRC resident enterprise, dividends payable to our non-PRC individual shareholders (including our ordinary shareholders) and any gain realized on the transfer of Ordinary Shares by such shareholders may be subject to PRC tax at a rate of 20% (and such PRC tax may be withheld at source in the case of dividends). Any PRC income tax liability may be reduced under applicable tax treaties. However, it is unclear whether in practice non-PRC shareholders of HUHUTECH would be able to obtain 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. Any such tax may reduce the returns on your investment in the Ordinary Shares.

#### We face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies.
We face uncertainties regarding the reporting on and consequences of previous private equity financing transactions involving the transfer and exchange of shares in our company by non-resident investors. In February 2015, the SAT issued the *Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non PRC Resident Enterprises,* or Bulletin 7. Pursuant to Bulletin 7, an "indirect transfer" of PRC assets, including a transfer of equity interests in an unlisted non-PRC holding company of a PRC resident enterprise, by non-PRC resident enterprises may be re-characterized and treated as a direct transfer of the underlying PRC assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. Bulletin 7 also introduced safe harbors for internal group restructurings and the purchase and sale of equity securities through a public securities market. On October 17, 2017, the SAT issued the *Announcement of the State Administration of Taxation on Issues Concerning the Withholding of Non*-resident *Enterprise Income Tax at Source,* or Bulletin 37, which came into effect on December 1, 2017. The Bulletin 37 further clarifies the practice and procedure of the withholding of nonresident enterprise income tax.

We face uncertainties on the reporting and consequences of future private equity financing transactions, share exchanges or other transactions involving the transfer of shares in our company by investors that are non-PRC resident enterprises. The PRC tax authorities may pursue such non-resident enterprises with respect to a filing or the transferees with respect to withholding obligation, and request our PRC subsidiaries to assist in the filing. As a result, we and non-resident enterprises in such transactions may become at risk of being subject to filing obligations or being taxed under Bulletin 7 and Bulletin 37, and may be required to expend valuable resources to comply with them or to establish that we and our non-resident enterprises should not be taxed under these regulations, which may have a material adverse effect on our financial condition and results of operations.

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***If our preferential tax treatments and government subsidies are revoked or become unavailable or if the calculation of our tax liability is successfully challenged by the PRC tax authorities, we may be required to pay tax, interest and penalties in excess of our tax provisions.***

The Chinese government has provided tax incentives to our HUHU China, including reduced enterprise income tax rates. For example, under the *Enterprise Income Tax Law* and its implementation rules, the statutory enterprise income tax rate is 25%. However, the income tax of an enterprise that has been determined to be a high and new technology enterprise can be reduced to a preferential rate of 15%. Any increase in the enterprise income tax rate applicable to HUHU China, or any discontinuation, retroactive or future reduction or refund of any of the preferential tax treatments and local government subsidies currently enjoyed by HUHU China, could adversely affect our business, financial condition and results of operations.

Further, in the ordinary course of our business, we are subject to complex income tax and other tax regulations, and significant judgment is required in the determination of a provision for income taxes. Although we believe our tax provisions are reasonable, if the PRC tax authorities successfully challenge our position and we are required to pay tax, interest and penalties in excess of our tax provisions, our financial condition and results of operations would be materially and adversely affected.

#### The procedure of the China Securities Regulatory Commission will be required in connection with this offering.
On December 24, 2021, the CSRC released the Administrative Provisions of the State Council Regarding the Overseas Issuance and Listing of Securities by Domestic Enterprises (Draft for Comments) (the "Draft Administrative Provisions") and the Measures for the Overseas Issuance of Securities and Listing Record-Filings by Domestic Enterprises (Draft for Comments) (the "Draft Filing Measures", collectively with the Draft Administrative Provisions, the "Draft Rules Regarding Overseas Listing"), both of which have a comment period that expires on January 23, 2022. The Draft Rules Regarding Overseas Listing lay out the filing regulation arrangement for both direct and indirect overseas listing, and clarify the determination criteria for indirect overseas listing in overseas markets.

On February 17, 2023, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, and five supporting guidelines, which will come into effect on March 31, 2023. Pursuant to the Trial Measures, domestic companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures and report relevant information to the CSRC pursuant to the requirements of the Trial Measures within three working days following its submission of initial public offering or listing application. See "Regulations — Regulation Relating to Overseas Listings." Any failure or perceived failure by us to comply with such filing requirements under the Rules Regarding Overseas Listing may result in forced corrections, warnings and fines against us and could materially hinder our ability to offer or continue to offer our securities.

We believe that HUHUTECH and its subsidiaries, including the PRC subsidiary will likely be required to make filing with/obtain approval from Chinese authorities, including the filing procedures of China Securities Regulatory Commission, or CSRC, and Cybersecurity Administration Committee, or CAC, if applicable, to list on U.S exchanges or issue securities to foreign investors. We have not been denied any permission either as of the date of this prospectus. However, if we were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors. It is uncertain when and whether the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission from any of the PRC federal or local government to obtain such permission and has not received any denial to list on the U.S. exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or industry.

We believe that we will be required to comply with the filing requirements or procedures set forth in the Trial Measures and that none of the situations that would clearly prohibit overseas offering and listing applies to us. In reaching this conclusion, we are relying on the advice of our PRC counsel, Jiangsu Junjin Law Firm. We cannot

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assure you that we will be able to get the clearance of filing procedures under the Trial Measures on a timely basis, or at all. Any failure of us to fully comply with new regulatory requirements may significantly limit or completely hinder our ability to continue to offer our Ordinary Shares, cause significant disruption to our business operations, and severely damage our reputation, which could materially and adversely affect our financial condition and results of operations and cause our Ordinary Shares to significantly decline in value or become worthless.

***Failure to comply with PRC laws and regulations on leased property may expose us to potential fines and negatively affect our ability to use the properties we lease.***

Our leasehold interests in leased properties have not been registered with the relevant PRC government authorities as required by PRC law, which may expose us to potential fines if we fail to remediate after receiving any notice from the relevant PRC government authorities. Failure to complete the lease registration will not affect the legal effectiveness of the lease agreements according to PRC law, but the real estate administrative authorities may require the parties to the lease agreements to complete lease registration within a prescribed period of time, and the failure to do so may subject the parties to fines from RMB1,000 to RMB10,000 for each of such lease agreements.

Certain lessors of our leased properties have not provided us with valid property ownership certificates or any other documentation proving their right to lease those properties to us. If our lessors are not the owners of the properties or they have not obtained consents from the owners or their lessors or permits from the relevant government authorities, our leases could be invalidated.

As of the date of this prospectus, we are not aware of any actions, claims or investigations threatened against us or our lessors with respect to the defects in our leasehold interests. However, if any of our leases is terminated as a result of challenges by third parties or governmental authorities for lack of title certificates or proof of authorization to lease, we do not expect to be subject to any fines or penalties, but we may be forced to relocate the affected offices and incur additional expenses relating to such relocation.

***PRC regulations relating to offshore investment activities by PRC residents may limit our PRC subsidiaries' ability to change their registered capital or distribute profits to us or otherwise expose us or our PRC resident beneficial owners to liability and penalties under PRC laws.***

In July 2014, SAFE promulgated the *Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents' Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles,* or SAFE Circular 37. SAFE Circular 37 requires PRC residents (including PRC individuals and PRC corporate entities as well as foreign individuals that are deemed as PRC residents for foreign exchange administration purpose) to register with SAFE or its local branches in connection with their direct or indirect offshore investment activities. SAFE Circular 37 further requires amendment to the SAFE registrations in the event of any changes with respect to the basic information of the offshore special purpose vehicle, such as change of a PRC individual shareholder, name and operation term, or any significant changes with respect to the offshore special purpose vehicle, such as increase or decrease of capital contribution, share transfer or exchange, or mergers or divisions. SAFE Circular 37 is applicable to our shareholders who are PRC residents and may be applicable to any offshore acquisitions that we make in the future.

If our shareholders who are PRC residents or entities do not complete their registration with the local SAFE branches, our PRC subsidiaries may be prohibited from distributing its profits and proceeds from any reduction in capital, share transfer or liquidation to us, and we may be restricted in our ability to contribute additional capital to our PRC subsidiaries. In February 2015, SAFE promulgated a *Circular on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment,* or SAFE Circular 13, effective in June 2015. Under SAFE Circular 13, applications for foreign exchange registration of inbound foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, will be filed with qualified banks instead of SAFE The qualified banks will directly examine the applications and accept registrations under the supervision of SAFE.

The failure or inability of such shareholders or beneficial owners to comply with SAFE Circular 37 or other SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC

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subsidiaries' ability to make distributions or pay dividends to us or affect our ownership structure. Moreover, failure to comply with the various foreign exchange registration requirements described above could result in liability under PRC law for circumventing applicable foreign exchange restrictions. As a result, our business operations and our ability to distribute profits to you could be materially and adversely affected.

Furthermore, as these foreign exchange regulations are still relatively new and their interpretation and implementation has been constantly evolving, it is unclear how these regulations, and any future regulation concerning offshore or cross-border transactions, will be interpreted, amended and implemented by the relevant government authorities. For example, we may be subject to a more stringent review and approval process with respect to our foreign exchange activities, such as remittance of dividends and foreign currency-denominated borrowings, which may adversely affect our financial condition and results of operations. In addition, if we decide to acquire a PRC domestic company, we cannot assure you that we or the owners of such company, as the case may be, will be able to obtain the necessary approvals or complete the necessary filings and registrations required by the foreign exchange regulations. This may restrict our ability to implement our acquisition strategy and could adversely affect our business and prospects.

***PRC regulation of loans to and direct investment in PRC entities by offshore holding companies may delay us from using the proceeds of this offering to make loans or additional capital contributions to our PRC subsidiaries, which could materially and adversely affect our liquidity and our ability to fund and expand our business.***

Any funds we transfer to the PRC subsidiaries, either as a shareholder loan or as an increase in registered capital, are subject to approval by or registration with relevant governmental authorities in China. According to the relevant PRC regulations on foreign invested enterprises in China, capital contributions to our PRC subsidiaries are subject to a report with the local commerce department, the registration with the State Administration for Market Regulation or its local counterpart and registration with a local bank authorized by SAFE. In addition, (i) any foreign loan procured by our PRC subsidiaries is required to be registered with the SAFE or its local branches and (ii) any of our PRC subsidiaries may not procure loans which exceed the difference between its total investment amount and registered capital or, as an alternative, only procure loans subject to the calculation approach and limitation as provided by the People's Bank of China. Additionally, any medium or long-term loans to be provided by us to the PRC subsidiaries must be registered with the National Development and Reform Commission and SAFE or its local branches. We may not be able to obtain these government approvals or complete such registrations in a timely manner, or at all, with respect to future capital contributions or loans by us to our PRC subsidiaries. If we fail to receive such approvals or complete such registration or filing, our ability to use the proceeds of this offering to capitalize our PRC operations may be negatively affected, which could adversely affect our liquidity and our ability to fund and expand our business.

#### Governmental control of currency conversion may limit our ability to utilize our revenues effectively and affect the value of your investment.
The PRC government imposes controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. We receive substantially all of our revenues in Renminbi. Under our current corporate structure, our Cayman Islands holding company may rely on dividend payments from the PRC subsidiaries to fund any cash and financing requirements we may have. Under existing PRC foreign exchange regulations, payments of current account items, including profit distributions, interest payments and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval of SAFE, by complying with certain procedural requirements. Specifically, under the existing exchange restrictions, without prior approval of SAFE, cash generated from the operations of PRC subsidiaries may be used to pay dividends to our Company. However, approval from or registration with appropriate government authorities is required where Renminbi is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. As a result, we need to obtain SAFE approval to use cash generated from the operations of the PRC subsidiaries to pay off their respective debt in a currency other than Renminbi owed to entities outside China, or to make other capital expenditure payments outside China in a currency other than Renminbi.

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In light of the flood of capital outflows of China in 2016 due to the weakening Renminbi, the PRC government has imposed more restrictive foreign exchange policies and stepped up scrutiny of major outbound capital movement including overseas direct investment. More restrictions and substantial vetting process are put in place by SAFE to regulate cross-border transactions falling under the capital account. If any of our shareholders regulated by such policies fails to satisfy the applicable overseas direct investment filing or approval requirement timely or at all, it may be subject to penalties from the relevant PRC authorities. The PRC government may at its discretion further restrict access in the future to foreign currencies for current account transactions. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands, we may not be able to pay dividends in foreign currencies to our shareholders, including holders of the Ordinary Shares.

#### Our failure to fully comply with PRC labor-related laws may expose us to potential penalties.
We are required under PRC laws and regulations to participate in various government sponsored employee benefit plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations where we operate our businesses. We have not fully complied with the relevant PRC laws and regulations such as failing to make adequate employee benefit payments to the social security insurance and housing provident fund to the competent local governmental authorities. As such, we may be required to make up the contributions for these plans as well as to pay late fees and fines. Any such actions may adversely affect our financial condition and results of operations.

***All of our shareholders are in compliance with the PRC's regulations relating to offshore investment activities by PRC residents. However, we are unable to assure that our shareholders who are subject to these rules continue to comply, and in the case of non-compliance, the shareholder may be subject to penalties.***

In July 2014, the State Administration of Foreign Exchange promulgated the Circular on Issues Concerning Foreign Exchange Administration over the Overseas Investment and Financing and Roundtrip Investment by Domestic Residents via Special Purpose Vehicles, or "Circular 37". According to Circular 37, prior registration with the local SAFE branch is required for Chinese residents to contribute domestic assets or interests to offshore companies, known as SPVs. Circular 37 further requires amendment to a PRC resident's registration in the event of any significant changes with respect to the SPV, such as an increase or decrease in the capital contributed by PRC individuals, share transfer or exchange, merger, division, or other material event. Further, foreign investment enterprises established by way of round-tripping shall complete the relevant foreign exchange registration formalities pursuant to the prevailing foreign exchange control provisions for direct investments by foreign investors, and disclose the relevant information such as actual controlling party of the shareholders truthfully.

Currently, all of our shareholders who are Chinese residents have completed Circular 37 Registration and are in compliance. We have asked our shareholders who are Chinese residents to make the necessary applications and filings as required by Circular 37. We attempt to comply, and attempt to ensure that our shareholders who are subject to these rules continue to comply, with the relevant requirements. We cannot, however, provide any assurances that all of our and future shareholders who are Chinese residents will comply with our request to make or obtain any applicable registration or comply with other requirements required by Circular 37 or other related rules. The Chinese resident shareholders' failure to comply with Circular 37 registration may result in restrictions being imposed on part of foreign exchange activities of the offshore special purpose vehicles, including restrictions on its ability to receive registered capital as well as additional capital from Chinese resident shareholders who fail to complete Circular 37 registration; and repatriation of profits and dividends derived from special purpose vehicles to China, by the Chinese resident shareholders who fail to complete Circular 37 registration, are also illegal. In addition, the failure of the Chinese resident shareholders to complete Circular 37 registration may subject each of the shareholders to fines less than RMB50,000. We cannot assure you that each of our Chinese resident shareholders will in the future complete the registration process as required by Circular 37.

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***Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment.***

On April 21, 2020, SEC Chairman Jay Clayton and PCAOB Chairman William D. Duhnke III, along with other senior SEC staff, released a joint statement highlighting the risks associated with investing in companies based in or have substantial operations in emerging markets including China. The joint statement emphasized the risks associated with lack of access for the PCAOB to inspect auditors and audit work papers in China and higher risks of fraud in emerging markets.

On May 18, 2020, Nasdaq filed three proposals with the SEC to (i) apply minimum offering size requirement for companies primarily operating in "Restrictive Market", (ii) adopt a new requirement relating to the qualification of management or board of director for Restrictive Market companies, and (iii) apply additional and more stringent criteria to an applicant or listed company based on the qualifications of the company's auditors.

On May 20, 2020, the U.S. Senate passed the Holding Foreign Companies Accountable Act requiring a foreign company to certify it is not owned or controlled by a foreign government if the PCAOB is unable to audit specified reports because the company uses a foreign auditor not subject to PCAOB inspection. If the PCAOB is unable to inspect the company's auditors for three consecutive years, the issuer's securities are prohibited to trade on a national securities exchange or in the over the counter trading market in the U.S. On December 2, 2020, the U.S. House of Representatives approved the Holding Foreign Companies Accountable Act. On December 18, 2020, the Holding Foreign Companies Accountable Act was signed into law.

On March 24, 2021, the SEC announced that it had adopted interim final amendments to implement congressionally mandated submission and disclosure requirements of the Act. The interim final amendments will apply to registrants that the SEC identifies as having filed an annual report on Forms 10-K, 20-F, 40-F or N-CSR with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB has determined it is unable to inspect or investigate completely because of a position taken by an authority in that jurisdiction. The SEC will implement a process for identifying such a registrant and any such identified registrant will be required to submit documentation to the SEC establishing that it is not owned or controlled by a governmental entity in that foreign jurisdiction, and will also require disclosure in the registrant's annual report regarding the audit arrangements of, and governmental influence on, such a registrant.

On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if passed by the U.S. House of Representatives and signed into law, would reduce the number of consecutive non-inspection years required for triggering the prohibitions under the Holding Foreign Companies Accountable Act from three years to two.

On December 2, 2021, the SEC issued amendments to finalize rules implementing the submission and disclosure requirements in the Holding Foreign Companies Accountable Act. The rules apply to registrants that the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that PCAOB is unable to inspect or investigate completely because of a position taken by an authority in foreign jurisdictions. The final amendments are effective on January 10, 2022. The SEC will begin to identify and list Commission-Identified Issuers on its website shortly after registrants begin filing their annual reports for 2021.

On December 16, 2021, PCAOB announced the PCAOB Holding Foreign Companies Accountable Act determinations (the "PCAOB determinations") relating to the PCAOB's inability to inspect or investigate completely registered public accounting firms headquartered in mainland China of the PRC or Hong Kong, a Special Administrative Region and dependency of the PRC, because of a position taken by one or more authorities in the PRC or Hong Kong.

On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "Statement of Protocol") with the China Securities Regulatory Commission and the Ministry of Finance of China. The terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong.

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On December 15, 2022, the PCAOB announced that it was able to secure complete access to inspect and investigate PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong completely in 2022. The PCAOB Board vacated its previous 2021 determinations that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong. However, whether the PCAOB will continue to be able to satisfactorily conduct inspections of PCAOB-registered public accounting firms headquartered in mainland China and Hong Kong is subject to uncertainties and depends on a number of factors out of our and our auditor's control. The PCAOB continues to demand complete access in mainland China and Hong Kong moving forward and is making plans to resume regular inspections in early 2023 and beyond, as well as to continue pursuing ongoing investigations and initiate new investigations as needed. The PCAOB has also indicated that it will act immediately to consider the need to issue new determinations with the HFCAA if needed.

The lack of access to the PCAOB inspection in China prevents the PCAOB from fully evaluating audits and quality control procedures of the auditors based in China. As a result, the investors may be deprived of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditors in China makes 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 our stock to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

Our auditor, Wei, Wei & Co., LLP, 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 United States pursuant to which the PCAOB conducts regular inspections to assess our auditor's compliance with the applicable professional standards. Our auditor is headquartered in New York, New York, and is subject to inspection by the PCAOB on a regular basis with the last inspection in August 2020. Therefore, we believe that, as of the date of this prospectus, our auditors are not subject to the PCAOB determinations. Wei, Wei & Co., LLP has an office in Beijing, China, in which it has a total of 20 staff. Among them, there is one director, three managers, four seniors and twelve auditors. Regarding the audit of our Company, Wei, Wei & Co., LLP sent a team of eight staff from the Beijing Office, including one manager, two seniors and five auditors to conduct fieldwork under supervision of the U.S. office. Due to the travel restriction because of the COVID 19 pandemic, the U.S. office was unable to travel to China, however, the U.S. team worked with the local team to conduct planning, assess the audit risks, develop audit approaches and provide ongoing supervision and guidance throughout the audit. Engagement quality control review was performed by the U.S. office.

However, the recent developments would add uncertainties to our offering and we cannot assure you whether the SEC, the PCAOB, Nasdaq, or other regulatory authorities would apply additional and more stringent criteria to us after considering the effectiveness of our auditor's audit procedures and quality control procedures, adequacy of personnel and training, or sufficiency of resources, geographic reach or experience as it relates to the audit of our financial statements. It remains unclear what further actions the SEC, the PCAOB or Nasdaq will take to address these issues and what impact those actions will have on U.S. 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 some uncertainty for investors, the market price of our Ordinary Shares could be adversely affected, and we could be delisted if we and our auditor are unable to meet the PCAOB inspection requirement or being required to engage a new audit firm, which would require significant expense and management time. If trading in our Ordinary Shares is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist our Ordinary Shares. If our Ordinary Shares are unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase our Ordinary Shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative impact on the price of our Ordinary Shares.

***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 plan 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 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

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trade agreements are renegotiated, such changes could adversely affect our business, financial condition, and results of operations. Recently, there have been heightened tensions in international economic relations, such as the one between the United States and China. The U.S. government has recently imposed, and has recently proposed to impose additional, new, or higher tariffs on certain products imported from China to penalize China for what it characterizes as unfair trade practices. China has responded by imposing, and proposing to impose additional, new, or higher tariffs on certain products imported from the United States. Following mutual retaliatory actions for months, on January 15, 2020, the United States and China entered into the Economic and Trade Agreement Between the United States of America and the People's Republic of China as a phase one trade deal, effective on February 14, 2020.

Although the direct impact of the current international trade tension, and any escalation of such tension, on the industries in which we operate is uncertain, the negative impact on general, economic, political and social conditions may adversely impact our business, financial condition and results of operations.

#### The Hong Kong legal system embodies uncertainties which could limit the legal protections available to the Company.
Hong Kong is a Special Administrative Region of the PRC and enjoys a high degree of autonomy under the "one country, two systems" principle. The Hong Kong Special Administrative Region's constitutional document, the Basic Law, ensures that the current political situation will remain in effect for 50 years. Hong Kong has enjoyed the freedom to function in a high degree of autonomy for its affairs, including currencies, immigration and custom, independent judiciary system and parliamentary system. However, we are not in any position to guarantee the implementation of the "one country, two systems" principle and the level of autonomy as currently in place at the moment. Any changes in the state of political environment in Hong Kong may materially and adversely affect our business and operation. Additionally, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States or other countries. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements with our clients.

#### Hong Kong regulatory requirement of prior approval for transfer of shares in excess of certain threshold may restrict future takeovers and other transactions.
Section 132 of SFO requires prior approval from the SFC for any company or individual to become a substantial shareholder of a SFC licensed company in Hong Kong. Under the SFO, a person will be a "substantial shareholder" of a licensed company if he, either alone or with associates, has an interest in or is entitled to control the exercise of the voting power of more than 10% of the total number of issued shares of the licensed company, or exercises control of 35% or more of the voting power of a company that controls more than 10% of the voting power of the licensed company. This regulatory requirement may discourage, delay or prevent a change in control of the Company, which could deprive our shareholders the opportunity to receive a premium for their shares as part of a future sale and may reduce the price of our shares upon the consummation of a future proposed business combination.

***Failure to make adequate contributions to various employee benefit plans and withhold individual income tax on employees' salaries as required by PRC regulations may subject us to penalties.***

Companies operating in China are required to participate in various government-mandated employee benefit contribution plans, including certain social insurance, housing funds and other welfare-oriented payment obligations, and contribute to the plans in amounts equal to certain percentages of salaries, including bonuses and allowances, of our employees up to a maximum amount specified by the local government from time to time at locations where we operate our businesses. The requirement of employee benefit contribution plans has not been implemented consistently by the local governments in China given the different levels of economic development in different locations. Companies operating in China are also required to withhold individual income tax on employees' salaries based on the actual salary of each employee upon payment. We may be subject to late fees and fines in relation to the underpaid employee benefits and under-withheld individual income tax, our financial condition and results of operations may be adversely affected.

#### Failure to obtain prior approval from the MOFCOM for or in connection with the Company's reorganization may have an adverse effect on our operations.
On August 8, 2006, six PRC regulatory agencies, including the MOFCOM, the State-Owned Assets Supervision and Administration Commission, or the SASAC, the State Administration of Taxation, or the SAT, the SAIC, the CSRC, and the State Administration of Foreign Exchange, or the SAFE (collectively the "M&A Agencies")

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jointly adopted the Regulations on Mergers and Acquisitions of Domestic Enterprises by Foreign Investors, or the M&A Rules, which came into effect on September 8, 2006 and were amended on June 22, 2009. The M&A Rules provides that mergers and acquisitions of domestic companies with which they are affiliated by domestic companies, enterprises or natural persons in the name of companies legally established or controlled by them outside of China shall be reported to the Ministry of Commerce for approval. Article 11 of the M&A Rules further provides that the parties thereto shall not evade the above provision by the domestic investment of a foreign investment enterprise or by any other means.

As of the date of this prospectus, we have not applied for approval from the Ministry of Commerce related to the reorganization that was completed on January 14, 2022. As advised by our PRC legal counsel, Jiangsu Junjin Law Firm, the Company's reorganization, pursuant to the M&A Provisions, may be subject to prior approval from the MOFCOM. Not obtaining such prior approval may adversely affect our reorganization. Pursuant to Article 38 of the PRC Foreign Investment Law, the violations of laws and regulations committed by foreign investors and foreign-funded enterprises could be subject to sanctions by any of the relevant departments according to the law and included in the credit information system according to the relevant provisions issued by the state. As such, we may face regulatory actions or penalties imposed by MOFCOM, foreign exchange control authorities or any other competent PRC regulators for failing to obtain MOFCOM's approval prior to our reorganization. Although there remain uncertainties as to the actions that may be taken, including fines and penalties on our operations in the PRC or limitations on our operating privileges in the PRC, any such action may adversely affect our business, financial condition, results of operations, reputation and prospects, as well as the trading price of our ordinary shares.

#### Risks Relating to Our Business
***We may fail to anticipate or adapt to technology innovations in a timely manner, so our software design may fail to gain recognition from the customers and the software design industry.***

The software design industry is experiencing rapid technological changes. Failure to anticipate technology innovations or adapt to such innovations in a timely manner, or at all, may result in our products becoming obsolete at sudden and unpredictable intervals. As a result, our software design may fail to gain recognition from the customers and the industry, which could materially and adversely affect our business, results of operations or financial condition. To maintain the relevancy of our products, we have actively invested in product planning and research and development. The process of developing and marketing new products is inherently complex and involves significant uncertainties. We cannot assure you that our efforts will bring customers and industry recognition. There are various risks, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our product planning efforts may fail to result in the development or commercialization of new technologies or ideas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our research and development efforts may fail to translate new product plans into commercially feasible products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our new technologies or new products may not be well received by consumers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not have adequate funding and resources necessary for continual investments in product planning and research and development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our products may become obsolete due to rapid advancements in technology and changes in consumer preferences; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our newly developed technologies may not be protected as proprietary intellectual property rights.

Any failure to anticipate the next-generation technology roadmap or changes in customer preferences or to timely develop new or enhanced products in response could result in decreased revenue and market share. In particular, we may experience difficulties with product design, product development, marketing or certification, which could result in excessive research and development expenses and capital expenditure, delays or prevent our introduction of new or enhanced products. Furthermore, our research and development efforts may not yield the expected results or may prove to be futile due to the lack of market demand.

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***The average selling prices of our products may decrease from time to time due to technological advancement, and we may not be able to pass onto our suppliers such decreases, which may in turn adversely affect our profitability.***

The factory facility design industry is characterized by rapid launches of new products, continuous technological advancements, and changing market trends and customer preferences, all of which translate to a shorter life cycle and a gradual decrease in the average selling prices of products over time. Because we compete in the environment of rapidly-evolving technology advancement and market trends and developments of the facility design industry, we may need to lower the price of our products to gain stronger market competitiveness and we cannot assure you that we will be able to pass on any decrease in average selling prices of our products to our suppliers. If the average selling prices of our products unusually or significantly decrease and such decreases cannot be offset by a corresponding decrease in the prices of the principal components of our products, our gross profit margins may be materially and adversely affected, which in turn, may adversely affect our profitability.

#### If we fail to maintain an effective quality control system, our business could be materially and adversely affected.
We place great emphasis on product quality and adhere to stringent quality control measures. To meet our customers' requirements and expectations for the quality and safety of our products, we have selected leading third-party assembling partners with quality control certifications such as ISO9001 and adopted a stringent quality control system to ensure that every step of the production process is strictly monitored and managed. Failure to maintain an effective quality control system or to obtain or renew our quality standards certifications may result in a decrease in demand for our products or cancelation or loss of purchase orders from our customers. Moreover, our reputation could be impaired. As a result, our business, results of operations and financial condition could be materially and adversely affected.

***If we are unable to maintain or enhance our brand recognition, our business, results of operations and financial condition may be materially and adversely affected.***

Maintaining and enhancing the recognition, image and acceptance of our brand are important to our ability to differentiate our products from and to compete effectively with our peers. Our brand image, however, could be jeopardized if we fail to maintain high product quality, pioneer and keep pace with evolving technology trends, or timely fulfill the orders for our products. If we fail to promote our brand or to maintain or enhance our brand recognition and awareness among our customers, or if we are subject to events or negative allegations affecting our brand image or the publicly perceived position of our brand, our business, results of operations and financial condition could be adversely affected.

***Our limited operating history and our volatile historical results of operations could make it difficult for us to forecast our business and assess the seasonality and volatility in our business.***

We have a relatively short operating history since 2015. Our total revenue was $6,318,135, $10,156,441 and $4,484,984 for the six months ended June 30, 2022 and the years ended December 31, 2021 and 2020, respectively. As the facility design market is relatively nascent and still rapidly evolving, and due to our limited operating history and historical data, as well as the limited visibility into future demand trends for our products, we may not be able to accurately forecast our future total revenue and budget our operating expenses accordingly. As most of our expenses are fixed in the short-term or incurred in advance of anticipated total revenue, we may not be able to adjust our expenses in a timely manner in order to offset any shortfall in revenue.

Our business may be subject to the varying order patterns of the fabless facility design market. We may experience fluctuations in orders in the future. Our volatile historical results of operations could make it difficult to assess the impact of seasonal factors on our business. If we or any of our third-party manufacturing service providers are unable to increase production of new or existing products to meet any increases in demand due to seasonality or other factors, our total revenue would be adversely affected and our reputation with our customers may be damaged.

***The ongoing global coronavirus COVID-19 outbreak had caused significant disruptions in our business, which we expect will materially and adversely affect our results of operations and financial condition.***

The outbreak of COVID-19 has spread throughout the world. On March 11, 2020, the World Health Organization declared the outbreak a global pandemic. Many businesses and social activities in China and other countries and regions have been severely disrupted in the first quarter of 2020, including those of our suppliers, customers and employees. This global outbreak has also caused market panics, which materially and negatively

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affected the global financial markets, such as the plunge of global stocks on major stock exchanges in March 2020. Such disruption and the potential slowdown of the world's economy in 2020 and beyond could have a material adverse effect on our results of operations and financial condition. We and our customers experienced and may continue to experience significant business disruptions and suspension of operations due to quarantine measures to contain the spread of the pandemic, which may cause shortage in the supply of raw materials, reduce our production capacity, increase the likelihood of default from our customers and delay our product delivery. For example, in April 2022, we experienced temporary delay in product delivery due to shutdown caused by the pandemic that affected our logistics service providers. Our business operation was also disrupted, and may continue to be disrupted, if any of our employees are suspected of having contracted any contagious disease or condition, since it could require our employees to be quarantined or our offices and production to be closed down and disinfected. Moreover, regional outbreaks of COVID-19 may continue to emerge. All of these had, and may continue to have, a material adverse effect on our results of operations and financial condition in the near term. COVID-19 and actions taken to reduce its spread continue to rapidly evolve. In late March and April 2022, certain regions in China were subject to lock-down and other constraints imposed by the local government authorities due to a new wave of COVID-19 outbreak in those regions. Employees who are located in those regions were required to work remotely and/or suspended any business travels. The extent to which COVID-19 may reduce the productivity of our employees, disrupt our service supply chains, reduce our access to capital or limit our business development activities, will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions and social distancing in the Japan and other countries, business closures or business disruptions and the effectiveness of actions taken in the U.S. and other countries to contain and treat the disease. To the extent the COVID-19 pandemic adversely affects our business, financial condition and results of operations, it may also have the effect of heightening many of the other risks described in this "Risk Factors" section. Despite the foregoing, in 2020 and 2021 and the six months ended June 30, 2022, we saw increased revenues and order activity since the COVID-19 pandemic. These results, as well as those of other metrics such as revenues, gross margins and other financial and operating data, may not be indicative of results for future periods. Some of the increased demand is likely due to customers being required or encouraged to stay at home, school closures and employers requiring employees to work remotely. Such increased demand may increase beyond manageable levels, may fluctuate significantly, or may not continue, including the possibility that demand may decrease from historical levels. The duration and severity of the COVID-19 pandemic, the amount of time it will take for normal economic activity to resume, and future government actions that may be taken are all unknown, and accordingly the situation remains dynamic and subject to rapid and possibly material change, including but not limited to changes that may materially affect the operations of our suppliers, logistics providers and customers, which ultimately could result in material adverse effects on our business, financial condition and results of operations.

We are closely monitoring the development of the COVID-19 pandemic and continuously evaluating any further potential impact on our business, results of operations and financial condition, which we believe will depend on the duration and degree of the pandemic. If the outbreak persists or escalates, we may be subject to further negative impact on our business operations and financial condition.

***Our management team lacks experience in managing a U.S.-listed public company and complying with laws applicable to such company, the failure of which may adversely affect our business, financial conditions and results of operations.***

Our current management team lacks experience in managing a company publicly traded in the U.S., interacting with public company investors and complying with the increasingly complex laws pertaining to U.S.-listed public companies. Prior to the completion of this offering, we mainly operate our businesses as a private company in the PRC. As a result of this offering, our company will become subject to significant regulatory oversight and reporting obligations under the U.S. federal securities laws and the scrutiny of securities analysts and investors, and our management currently has no experience in complying with such laws, regulations and obligations. Our management team may not successfully or efficiently manage our transition to becoming a U.S.-listed public company. These new obligations and constituents will require significant attention from our senior management and could divert their attention away from the day-to-day management of our business, which could adversely affect our business, financial conditions and results of operations.

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#### We will incur increased costs as a result of being a public company.
Once we become a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company prior to our initial public offering. In addition, the Sarbanes-Oxley Act of 2002, as well as new rules subsequently implemented by the SEC and Nasdaq, have required changes in corporate governance practices of public companies. We expect these new rules and regulations to increase our legal, accounting and financial compliance costs and to make certain corporate activities more time-consuming and costly. In addition, we incur ongoing additional costs associated with our public company reporting requirements. We are currently evaluating and monitoring developments with respect to these new rules, and we cannot predict or estimate the amount of additional costs we may incur or the timing of such costs.

#### Increases in labor costs in the PRC may adversely affect our business and our profitability.
China's economy has experienced increases in labor costs in recent years. China's overall economy and the average wage in China are expected to continue to grow. The average wage level for our employees has also increased in recent years. We expect that our labor costs, including wages and employee benefits, will continue to increase. Unless we are able to pass on these increased labor costs to our customers by increasing prices for our products or services, our profitability and results of operations may be materially and adversely affected.

In addition, we have been subject to stricter regulatory requirements in terms of entering into labor contracts with our employees and paying various statutory employee benefits, including pension insurance, housing provident fund, medical insurance, work-related injury insurance, unemployment insurance and childbearing insurance to designated government agencies for the benefit of our employees. Pursuant to the PRC Labor Contract Law, or the Labor Contract Law, that became effective in January 2008 and its implementing rules that became effective in September 2008 and its amendments that became effective in July 2013, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employees' probation and unilaterally terminating labor contracts. In the event that we decide to terminate some of our employees or otherwise change our employment or labor practices, the Labor Contract Law and its implementation rules may limit our ability to effect those changes in a desirable or cost-effective manner, which could adversely affect our business and results of operations.

As the interpretation and implementation of labor-related laws and regulations are still evolving, we cannot assure you that our employment practice does not and will not violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated relevant 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 materially and adversely affected.

#### We may be unable to make the substantial research and development investments required to remain competitive in our business.
Advances in technologies, such as artificial intelligence and cloud computing, have led to increased demand for software of higher performance and power efficiency for solving computational problems of increasing complexity. We intend to broaden our product offerings to design and develop solutions covering more application scenarios, including vision computing and privacy computing. We are committed to investing in new product development in order to stay competitive in our markets. Nevertheless, if we are unable to generate enough revenue or raise enough capital to make adequate research and development investments going forward, our product development and relevant research and development initiatives may be restricted or delayed, or we may not be able to keep pace with the latest market trends and satisfy our customers' needs, which could materially and adversely affect our results of operations. Furthermore, our substantial research and development expenditures may not yield the expected results that enable us to roll out new products, which in turn will harm our prospects and results of operations.

We are currently working on providing more systematic products in the high-purity industry by combining equipment manufacturing and system installation. This combined business model will increase our competitiveness in the industry. If we fail to realize the prospect, our business may become less competitive compared to similar high-purity system providers.

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#### We may encounter difficulties in recruiting and retaining key personnel.
Our future growth and success depend to a significant extent on the continuing service and contribution of our engineers and senior management personnel. Many of these key personnel are highly skilled and experienced and are difficult to recruit and retain, particularly as we seek to expand our business with respect to the high-purity conveyor system solutions and distributed computing and monitoring software solutions. Competition for recruiting qualified personnel is intense, and recruiting personnel with the combination of skills and attributes required to execute our business strategy may be difficult, time-consuming and expensive. As a result, the loss of any key personnel or failure to recruit, train or retain qualified personnel could have a significant negative impact on our operations.

#### We may face difficulties in protecting our intellectual property rights.
We rely on our intellectual property rights, and in particular, our patents and software copyrights. Even though we have successfully registered certain of our intellectual property rights in China, it may be possible for a third party to imitate or use our intellectual property rights without authorization. Additionally, we have developed and utilized some intellectual property that has not been registered. If a third party misuses or misappropriates our intellectual property, we may not be able to easily differentiate our products from the others in the market easily. As a result, we may be forced into an adverse price competition that reduces our profit margin. As we develop new technologies, we will need to continue to apply for intellectual property rights protections. There is no guarantee that we will be able to obtain valid and enforceable intellectual property rights in China or in other relevant jurisdictions as needed. Even when we are able to obtain such protections, there is no guarantee that we will be able to effectively enforce our rights effectively.

In this respect, we may incur expenses and efforts to monitor and enforce our intellectual property rights. Infringement of our intellectual property rights and the resulting diversion of resources to protect such rights through litigation or other means could also adversely affect our profitability.

#### We currently do not have insurance coverage covering all risks related to our business and operations.
We do not maintain insurance policies covering all of our business risks, such as risks relating to properties, receivables, goods in transit and public liability. We cannot assure you that the insurance coverage we currently have would be sufficient to cover our potential losses. See "Business — Insurance" for more information on the insurance policies maintained by us. In the event there is any damage to any assets or incidents for which we do not have sufficient insurance coverage if at all, we would have to pay for the difference ourselves where our cash flow and liquidity could be negatively affected.

#### Any global systemic economic and financial crisis could negatively affect our business, results of operations and financial condition.
Any prolonged slowdown in the Chinese or global economy may have a negative impact on our business, results of operations and financial condition. For example, the global financial markets have experienced significant disruptions since 2008 and the United States, Europe and other economies have experienced periods of recession. The recovery from the lows of 2008 and 2009 has been uneven and there are new challenges, including the escalation of the European sovereign debt crisis from 2011 and the slowdown of the PRC's economic growth since 2012, which may continue. The market panics over the global outbreak of coronavirus COVID-19 and the drop in oil price have materially and negatively affected the global financial markets in March 2020, which may cause a potential slowdown of the world's economy. As of the date of this prospectus, the COVID-19 pandemic is still an ongoing phenomenon in China, and may cause substantial disruption to the local business operation and market demands. Additionally, there is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial authorities of some of the world's leading economies, including the United States and China. There have also been (1) concerns over the ongoing war in Ukraine, the Middle East and Africa, which have resulted in volatility in financial and other markets; (2) concerns over the United Kingdom leaving the European Union as well as the significant potential changes to United States trade policies, treaties and tariffs, including trade policies and tariffs regarding China; (3) concerns about the economic effect of the tensions in the relationship between China and surrounding Asian countries; and (4) concerns over the rising level of inflation in major industrial countries including the United States and worries that efforts to curb inflation may result in recession. There were and could be in the future a number of domino effects from such turmoil on

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our business, including significant decreases in orders from our customers, insolvency of key suppliers resulting in product delays, rises in raw material prices leading up to increased level of cost of sales that we may not be able to pass onto customers, inability of customers to obtain credit to finance purchases of our products and/or customer insolvencies, and counterparty failures negatively impacting our operations. Any systemic economic or financial crisis could cause revenues for the semiconductor industry as a whole to decline dramatically and could materially and adversely affect our results of operations. Since our inception, inflation in China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, the year-over-year percent changes in the consumer price index for 2019, 2020 and 2021 were increases of 2.9%, 2.5% and 0.9%, respectively. The year-over-year percent changes in the consumer price index for November 2022 was 1.6%. Since inflation in China has not materially impacted our business operations and results of operations, we have not taken or planned to take actions to mitigate inflationary pressures. Although we have not in the past been materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in China.

<u>***<u>Risks Related to this Offering</u>***</u>

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

Prior to this initial public offering, there has been no public market for our shares or Ordinary Shares. We will apply to list our Ordinary Shares on the Nasdaq Stock Exchange. Our shares will not be listed on any exchange or quoted for trading on any over-the-counter trading system. If an active trading market for our Ordinary Shares does not develop after this offering, the market price and liquidity of our Ordinary Shares will be materially and adversely affected.

Negotiations with the Underwriter will determine the initial public offering price for our Ordinary Shares which may bear no relationship to their market price after the initial public offering. We cannot assure you that an active trading market for our Ordinary Shares will develop or that the market price of our Ordinary Shares will not decline below the initial public offering price.

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

The trading price of the Ordinary Shares 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 Ordinary Shares may be highly volatile for factors specific to our own operations, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• variations in our revenues, earnings, cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in operating metrics;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements of new solutions and services and expansions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• termination or non-renewal of contracts or any other material adverse change in our relationship with our key customers or strategic investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in financial estimates by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detrimental negative publicity about us, our competitors or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• release of lockup or other transfer restrictions on our outstanding equity securities or sales of additional equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments affecting us or our industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential litigation or regulatory investigations.

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Any of these factors may result in large and sudden changes in the volume and price at which the Ordinary Shares 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 our Ordinary Shares. Volatility or a lack of positive performance in our ordinary share price may also adversely affect our ability to retain key employees, most of whom have been granted share 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.

***We may experience extreme stock price volatility unrelated to our actual or expected operating performance, financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.***

Recently, there have been instances of extreme stock price run-ups followed by rapid price declines and strong stock price volatility with a number of recent initial public offerings, especially among companies with relatively smaller public floats. As a relatively small-capitalization company with relatively small public float, we may experience greater stock price volatility, extreme price run-ups, lower trading volume and less liquidity than large-capitalization companies. In particular, our Ordinary Shares 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 up, may be unrelated to our actual or expected operating performance, financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Ordinary Shares.

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

Furthermore, the stock market in general, and the market prices for companies with operations in China in particular, have experienced volatility that often has been unrelated to the operating performance of such companies. The securities of some China-based companies that have listed their securities in the United States have experienced significant volatility since their initial public offerings in recent years, including, in some cases, substantial declines in the trading prices of their securities. The trading performances of these companies' securities after their offerings may affect the attitudes of investors towards China-based companies listed in the United States in general, which consequently may impact the trading performance of our Ordinary Shares, regardless of our actual operating performance. In addition, any negative news or perceptions about inadequate corporate governance practices or fraudulent accounting, corporate structure or other matters of other China-based companies may also negatively affect the attitudes of investors towards China-based companies in general, including us, regardless of whether we have engaged in any inappropriate activities.

In addition to the above factors, the price and trading volume of the Ordinary Shares may be highly volatile due to multiple factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory developments affecting us, our clients or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conditions in the financing advisory industry in China;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements of studies and reports relating to the quality of our service offerings or those of our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investor perceptions about us, our business and in general companies with operations in China;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the economic performance or market valuations of other financing advisory companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and securities market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual or anticipated fluctuations in our quarterly results of operations and changes or revisions of our expected results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the financial projections we may provide to the public, any changes in these projections or our failure to meet these projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of cash dividends on our Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in financial estimates by securities research analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• announcements by us or our competitors of new product and service offerings, acquisitions, strategic relationships, joint ventures or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• additions to or departures of our senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detrimental negative publicity about us, our management or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations of exchange rates between the Renminbi and the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• release or expiry of lock-up or other transfer restrictions on our outstanding Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the development and sustainability of an active trading market for our Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales or perceived potential sales of additional Ordinary Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The COVID-19 pandemic, the ensuing economic recessions and deterioration in the credit market in many countries.

Other than the aforementioned potential factors that may affect the price and trading volume of our Ordinary Shares, there are no known factors particular to our offering that may add to this risk.

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

The trading market for the Ordinary Shares 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 Ordinary Shares, the market price for the Ordinary Shares 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 Ordinary Shares to decline.

***We currently do not expect to pay dividends in the foreseeable future after this offering and you must rely on price appreciation of our Ordinary Shares 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 the development and growth of our business. 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 our Ordinary Shares 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. Under Cayman Islands law, a Cayman Islands exempted 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,

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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 our subsidiaries, our financial condition, contractual restrictions and other factors deemed relevant by our board of directors. Accordingly, the return on your investment in our Ordinary Shares will likely depend entirely upon any future price appreciation of our Ordinary Shares. There is no guarantee that our Ordinary Shares will appreciate in value after this offering or even maintain the price at which you purchased the Ordinary Shares. You may not realize a return on your investment in our Ordinary Shares and you may even lose your entire investment in our Ordinary Shares.

***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 Ordinary Shares in this offering, you will pay more for your Ordinary Shares than the amount paid by our existing shareholders for their Ordinary Shares on a per ordinary share basis. As a result, you will experience immediate and substantial dilution, representing the difference between the initial public offering price of per ordinary share, and our adjusted net tangible book value per ordinary share, after giving effect to our sale of the Ordinary Shares offered in this offering. In addition, you may experience further dilution to the extent that our Ordinary Shares are issued upon the exercise or vesting, as the case may be, of our share incentive awards. See "Dilution" for a more complete description of how the value of your investment in the Ordinary Shares will be diluted upon completion of this offering.

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

Sales of our Ordinary Shares in the public market after this offering, or the perception that these sales could occur, could cause the market price of our Ordinary Shares to decline. All Ordinary Shares sold in this offering will be freely transferable without restriction or additional registration under the Securities Act. The remaining Ordinary Shares issued and outstanding after this offering will be available for sale, upon the expiration of the lock-up period in connection with this offering, subject to volume and other restrictions as applicable under Rules 144 and 701 under the Securities Act. Any or all of these shares may be released prior to the expiration of the lock-up period at the discretion of the Underwriter of this offering. To the extent shares are released before the expiration of the lock-up period and sold into the market, the market price of our Ordinary Shares could decline.

After completion of this offering, certain holders of our Ordinary Shares may cause us to register under the Securities Act the sale of their shares, subject to the lock-up period in connection with this offering. Registration of these shares under the Securities Act would result in Ordinary Shares representing these shares becoming freely tradable without restriction under the Securities Act immediately upon the effectiveness of the registration. Sales of these registered shares in the form of Ordinary Shares in the public market could cause the price of our Ordinary Shares to decline.

***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 our Ordinary Shares and the Ordinary Shares.***

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 preferred shares with such preferred, deferred or other special rights, restrictions or privileges whether in regard to voting, distributions, a return of capital or otherwise and in such classes and series, if any, as the directors may determine, any or all of which may be greater than the rights associated with our Ordinary Shares. Preferred shares 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 preferred shares, the price of the Ordinary Shares may fall and the voting and other rights of the holders of our Ordinary Shares and the Ordinary Shares may be materially and adversely affected.

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

We may, from time to time, distribute rights to our shareholders, including rights to acquire securities. 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 Ordinary Shares may be unable to participate in our rights offerings and may experience dilution of their holdings as a result.

***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 exempted company incorporated under the laws of the Cayman Islands. Our corporate affairs are governed by our amended and restated memorandum and articles of association, the Companies Act (as amended) 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 owed to us under Cayman Islands law are to a large extent 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 as well as 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 owed to us under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent 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 or to obtain copies of lists of shareholders of these companies. Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of 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.

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

We are a Cayman Islands exempted company and substantially all of our assets are located outside of the United States. All of our current operations are conducted in China. In addition, substantially all of our current directors and officers are nationals and residents of countries other than 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 in the event that 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. For more information regarding the relevant laws of the Cayman Islands and China, see "Enforceability of Civil liabilities."

***We are an emerging growth company within the meaning of the Securities Act and may take advantage of certain reduced reporting requirements.***

As a company with less than US$1.235 billion in revenues for our last fiscal year, we qualify as an "emerging growth company" pursuant to the JOBS Act. Therefore, we may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, in the assessment of the emerging growth company's internal control over financial reporting and permission to delay

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adopting new or revised accounting standards until such time as those standards apply to private companies. As a result, if we elect not to comply with such reporting and other requirements, in particular the auditor attestation requirements, our investors may not have access to certain information they may deem important.

The JOBS Act also provides that an emerging growth company does not need to comply with any new or revised financial accounting standards until such date that a private company is otherwise required to comply with such new or revised accounting standards. We do not plan to "opt out" of such exemptions afforded to an emerging growth company. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.

***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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and trading activities and liability for insiders who profit from trades made in a short period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the selective disclosure rules by issuers of material nonpublic information under Regulation FD; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain audit committee independence requirements in Rule 10A-3 of the Exchange Act.

***There can be no assurance that we will not be a passive foreign investment company, or PFIC, for U.S. federal income tax purposes for any taxable year, which could result in adverse U.S. federal income tax consequences to U.S. holders of the Ordinary Shares.***

A non-U.S. corporation, such as our company, will be considered a passive foreign investment company, or "PFIC," for any taxable year if either (i) at least 75% of its gross income is passive income or (ii) at least 50% of the value of its assets (generally determined on the basis of a quarterly average) is attributable to assets that produce or are held for the production of passive income.

Based upon our current and projected income and assets, including the expected proceeds from this offering, and projections as to the value of our assets (which are based on the expected market price of the Ordinary Shares immediately following this offering), we do not expect to be a PFIC for the current taxable year or the foreseeable future. However, no assurance can be given in this regard because the determination of whether we will be or become a PFIC is a factual determination made annually that will depend, in part, upon the composition of our income and assets. Fluctuations in the market price of the Ordinary Shares may cause us to be a PFIC for the current or future taxable years because the value of our assets for purposes of the asset test, including the value of our goodwill and unbooked intangibles, may be determined by reference to the market price of the Ordinary Shares from time to time (which may be volatile). If our market capitalization subsequently declines, we may be or become a PFIC for the current taxable year or future taxable years. Furthermore, the composition of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk of being or becoming a PFIC may substantially increase. Because there are uncertainties in the application of the relevant rules, there can be no assurance that we will not be a PFIC for the current taxable year or any future taxable year.

If we were treated as a PFIC for any taxable year during which a U.S. investor held an ordinary share or an ordinary share, certain adverse U.S. federal income tax consequences could apply to the U.S. investor. See "Taxation — United States Federal Income Tax Considerations — Passive Foreign Investment Company Rules."

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***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 Securities and Exchange Commission, or the SEC, 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 costly.

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 are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or estimate with any degree of certainty the number of additional costs we may incur or the timing of such costs.

In addition, as an emerging growth company, we will still incur expenses in relation to management assessment according to requirements of Section 404(a) of the Sarbanes-Oxley Act of 2002. After we are no longer an "emerging growth company," we expect to incur additional significant expenses and devote substantial management effort toward ensuring compliance with the requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002 and the other rules and regulations of the SEC.

***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***

Prior to this offering, we were a private company with limited accounting personnel and other resources with which to address our internal controls and procedures. We will be in a continuing process of developing, establishing, and maintaining internal controls and procedures that will allow our management to report on, and our independent registered public accounting firm to attest to, our internal controls over financial reporting if and when required to do so under Section 404 of the Sarbanes-Oxley Act of 2002. Although our independent registered public accounting firm is not required to attest to the effectiveness of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act until the date we are no longer an emerging growth company, our management will be required to report on our internal controls over financial reporting under Section 404.

As of December 31, 2021, our management assessed the effectiveness of our internal control over financial reporting. The material weaknesses relate to that the Company does not have in-house accounting personnel with sufficient knowledge of US GAAP and SEC reporting experiences. Management concluded that as of December 31, 2021, our internal control over financial reporting was ineffective.

In order to address and resolve the foregoing material weaknesses, we have implemented measures designed to improve our internal control over financial reporting to remediate the material weaknesses, including hiring consultants who have requisite training and experience in the preparation of financial statements in compliance with applicable SEC requirements. In addition to hiring an outside consultant, we also plan to take remedial measures including (i) hiring more qualified accounting personnel with relevant U.S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting function and to set up a financial and system control framework; (ii) implementing regular and continuous U.S. GAAP accounting and financial reporting training programs for our accounting and financial reporting personnel; (iii) setting up an internal audit function as well as engaging an external consulting firm to assist us with assessment of Sarbanes-Oxley compliance requirements and improvement of overall internal control; and (iv) appointing independent directors, establishing an audit committee, and strengthening corporate governance.

The implementation of these measures may not fully address the material weaknesses in our internal control over financial reporting, and we cannot conclude that they have been fully remedied. Our failure to correct theses material weaknesses or our failure to discover and address any other material weaknesses could result in inaccuracies

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in our financial statements and could also impair our ability to comply with applicable financial reporting requirements and related regulatory filings on a timely basis. As a result, our business, financial condition, results of operations and prospects, as well as the trading price of our Ordinary Shares, may be materially and adversely affected. Moreover, ineffective internal control over financial reporting significantly hinders our ability to prevent fraud. Upon the completion of this offering, we will become a public company in the United States subject to the Sarbanes-Oxley Act of 2002. Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, will require that we include a report from management on our internal control over financial reporting in our annual report on Form 20-F beginning with our annual report for the fiscal year ending December 31, 2021. In addition, once we cease to be an "emerging growth company" as such term is defined in the JOBS Act, our independent registered public accounting firm must attest to and report on the effectiveness of our internal control over financial reporting. Our management may conclude that our internal control over financial reporting is not effective. Moreover, even if our management concludes that our internal control over financial reporting is effective, our independent registered public accounting firm, after conducting its own independent testing, may issue a report that is qualified if it is not satisfied with our internal controls or the level at which our controls are documented, designed, operated or reviewed, or if it interprets the relevant requirements differently from us. In addition, after we become a public company, our reporting obligations may place a significant strain on our management, operational and financial resources and systems for the foreseeable future. We may be unable to timely complete our evaluation testing and any required remediation.

***Nasdaq may apply additional and more stringent criteria for our initial and continued listing because we plan to have a small public offering and insiders will hold a large portion of the company's listed securities. Our offering will not be completed in the absence of Nasdaq listing approval. If Nasdaq denies our application, we could face significant consequences.***

Nasdaq Listing Rule 5101 provides Nasdaq with broad discretionary authority over the initial and continued listing of securities in Nasdaq and Nasdaq may use such discretion to deny initial listing, apply additional or more stringent criteria for the initial or continued listing of particular securities, or suspend or delist particular securities based on any event, condition, or circumstance that exists or occurs that makes initial or continued listing of the securities on Nasdaq inadvisable or unwarranted in the opinion of Nasdaq, even though the securities meet all enumerated criteria for initial or continued listing on Nasdaq. In addition, Nasdaq has used its discretion to deny initial or continued listing or to apply additional and more stringent criteria in the instances, including but not limited to: (i) where the company engaged an auditor that has not been subject to an inspection by the PCAOB, an auditor that PCAOB cannot inspect, or an auditor that has not demonstrated sufficient resources, geographic reach, or experience to adequately perform the company's audit; (ii) where the company planned a small public offering, which would result in insiders holding a large portion of the company's listed securities. Nasdaq was concerned that the offering size was insufficient to establish the company's initial valuation, and there would not be sufficient liquidity to support a public market for the company; and (iii) where the company did not demonstrate sufficient nexus to the U.S. capital market, including having no U.S. shareholders, operations, or members of the Board of Directors or management. Our public offering will be relatively small and the insiders of our Company will hold a large portion of the company's listed securities. Nasdaq might apply the additional and more stringent criteria for our initial and continued listing, which might cause delay or even denial of our listing application. The denial of our application could cause significant consequences including a limited availability for market quotations for our securities, reduced liquidity with respect to our securities, limited amount of news and analyst coverage; and a decreased ability to issue additional securities or obtain additional financing in the future.

We will seek to have our securities approved for listing on the Nasdaq Capital Market upon consummation of this offering. Our offering will not be completed in the absence of Nasdaq listing approval. We cannot assure you that we will be able to meet those initial listing requirements at that time. If the Nasdaq Capital Market does not list our securities, or subsequently delists our securities from trading, we could face significant consequences, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a limited availability for market quotations for our securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reduced liquidity with respect to our securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• limited amount of news and analyst coverage; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a decreased ability to issue additional securities or obtain additional financing in the future.

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#### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements. All statements contained in this prospectus other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the "Risk Factors" section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, 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 we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. The events and circumstances reflected in the forward-looking statements may not be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, we undertake no duty to update any of these forward-looking statements after the date of this prospectus or to conform these statements to actual results or revised expectations.

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#### USE OF PROCEEDS
We estimate that we will receive net proceeds from this offering of approximately [\*] million, after deducting estimated underwriting discounts and commissions and the estimated offering expenses payable by us, and based upon an assumed initial offering price of [\*] per ordinary share, the midpoint of the price range set forth on the cover page of this prospectus. A $1.00 increase (decrease) in the assumed initial public offering price would increase (decrease) the net proceeds to us from this offering by approximately [\*] million, after deducting the estimated underwriting discounts and commissions and estimated aggregate offering expenses payable by us and assuming no change to the number of ordinary share offered by us as set forth on the cover page of this prospectus.

We plan to use the net proceeds from this offering as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately 50% of the net proceeds from this offering for the construction of a 5,000 square meter R&D plant, for which we applied with the government in Xinwu District, and the establishment of a R&D team, the construction of additional facilities, and purchase of equipment for the production of equipment for gas supply system in our Wuxi plant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately 30% of the net proceeds from this offering for the expansion and development of the Company's business located in the PRC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately 15% of the net proceeds from this offering for working capital, team building, operating expenses and other general corporate purposes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approximately 5% of the net proceeds from this offering for paying taxes, provident fund, and social security.

This expected use of the net proceeds from this offering represents our intentions based upon our current plans and overall business conditions, which could change in the future as our plans and prevailing business conditions evolve. As a result, our management will retain broad discretion over the allocation of the net proceeds from this offering.

The net proceeds from this offering must be remitted to China before we will be able to use the funds to grow our business. The procedure to remit funds may take several months after the completion of this offering, and we will be unable to use the offering proceeds in China until the remittance is completed. See "Risk Factors" for further information.

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#### DIVIDEND POLICY
We anticipate that we will retain any earnings to support operations and finance the growth and development of our business after the Company's initial public offering. Therefore, we do not expect to pay cash dividends in the foreseeable future. As of the date of this prospectus, neither HUHUTECH nor any of its subsidiaries have paid dividends or made distributions to their shareholders.

Any future determination relating to our dividend policy will be made at the discretion of our board of directors and will depend on a number of factors, including future earnings, capital requirements, financial conditions and future prospects and other factors the board of directors may deem relevant.

Under Cayman Islands law, a Cayman Islands company may pay a dividend on its shares 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 due in the ordinary course of business.

If we determine to pay dividends on any of our Ordinary Shares in the future, as a holding company, we will be dependent receiving funds from our operating subsidiary. Current PRC regulations permit our WFOE to pay dividends to HUHU HK only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our 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 entity in China is also required to further set aside a portion of its after- tax profits to fund the discretionary common reserve, although the amount to be set aside, if any, is determined at the discretion of its shareholder. Although the statutory reserves can be used, among other ways, 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. Our subsidiaries in China are required to set aside statutory reserves and have done so.

The PRC government also controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures 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.

Cash dividends, if any, on our Ordinary Shares will be paid in U.S. dollars. HUHU HK may be considered a non-resident enterprise for tax purposes, so that any dividends WFOE pays to HUHU HK may be deemed as China-sourced income and as a result may be subject to PRC withholding tax at a rate of up to 10%. See "Taxation — People's Republic of China Enterprise Taxation."

In order for us to pay dividends to our shareholders, we will rely on dividends from our subsidiaries. Dividend payments from HUHU China to our WFOE are subject to PRC taxes, including VAT, urban maintenance and construction tax, educational surcharges. In addition, if our subsidiaries incur debt on their own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

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, or the Double Tax Avoidance Arrangement, 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. However, the 5% withholding tax rate does not automatically apply only when certain requirements are satisfied, including without limitation that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends.

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#### CAPITALIZATION
The following table sets forth our capitalization as of June 30, 2022 on (i) an actual basis, and (ii) a pro forma as adjusted basis giving effect to the sale of — Ordinary Shares in this offering at an assumed initial public offering price of $— per share and to reflect the application of the proceeds after deducting the underwriting discounts and expense allowance and estimated offering expenses payable by us. You should read this table in conjunction with our financial statements and related notes appearing elsewhere in this prospectus and "Use of Proceeds" and "Description of Share Capital."

#### Ordinary Shares

#### U.S. Dollars

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30, 2022** | **As of <br>June 30, 2022** |
|  | **Actual<br>(Unaudited)** | **Pro forma<sup>(1)</sup>** |
|  **Shareholder's Equity:** |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary shares, US$0.00001 par value | $50 |  |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1738179 |  |
| &nbsp;&nbsp;&nbsp; Statutory reserves | 201075 |  |
| &nbsp;&nbsp;&nbsp; Retained earnings | 1848687 |  |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive (loss) | (87005) |  |
|  **Total shareholders' equity** | $**3700986** |  |
|  **Total capitalization** |  |  |

---

____________

(1) On a pro forma basis to give effect to the sale of — Ordinary Shares in this offering at an assumed initial public offering price of $— per share and reflects the application of the net proceeds of after deducting the underwriting discounts, expense allowance and other estimated offering expenses payable by us. We estimate that such net proceeds will be approximately $, assuming no over-allotment option is exercised, and approximately $, assuming the over-allotment option is exercised in full.

Each $1.00 increase (decrease) in the assumed initial public offering price of $[\*] per ordinary share would increase (decrease) the pro forma as adjusted amount of total capitalization by $[\*] million, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts, expense allowance and estimated offering expenses payable by us. An increase (decrease) of one million in the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, would increase (decrease) the pro forma as adjusted amount of total capitalization by $[\*] million, assuming no change in the assumed initial public offering price per ordinary share as set forth on the cover page of this prospectus.

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#### DILUTION
If you invest in the Ordinary Shares, your interest will be diluted to the extent of the difference between the public offering price per ordinary share and our net tangible book value per ordinary share after this offering. Dilution results from the fact that the public offering price per ordinary share is substantially in excess of the book value per ordinary share attributable to the existing shareholders for our presently outstanding Ordinary Shares.

As of June 30, 2022, our net tangible book value was , or per ordinary share. Our net tangible book value per share represents total tangible assets less total liabilities, all divided by the number of Ordinary Shares outstanding on June 30, 2022.

After giving effect to the sale of Ordinary Shares in this offering at the assumed initial public offering price of $[\*] per ordinary share and after deducting the underwriting discounts and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value at June 30, 2022 would have been $[\*], or $[\*] per ordinary share. This represents an immediate increase in pro forma as adjusted net tangible book value to existing investors and immediate dilution of $[\*] per ordinary share to new investors. The following table illustrates this dilution to new investors purchasing ordinary share in this offering:

The following table illustrates the dilution on a per ordinary share basis at the assumed public offering price per ordinary share of US$[\*]:

---

| | |
|:---|:---|
|  | **Offering** |
|  Assumed initial public offering price per ordinary share | $|
|  Net tangible book value per ordinary share as of June 30, 2022 | $|
|  Increase in pro forma as adjusted net tangible book value per ordinary share attributable to new investors purchasing Ordinary Shares in this offering | $|
|  Pro forma as adjusted net tangible book value per ordinary share after this offering | $|
|  Dilution per ordinary share to new investors in this offering | $|

---

Each $1.00 increase (decrease) in the assumed initial public offering price of $5.00 per ordinary share would increase (decrease) our pro forma as adjusted net tangible book value as of June 30, 2022 after this offering by approximately $0.75 per ordinary share, and would increase (decrease) dilution to new investors by $0.77 per ordinary share, assuming that the number of Ordinary Shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting the underwriting discounts and estimated offering expenses payable by us.

The following table summarizes, on a pro forma as adjusted basis as of June 30, 2022, the differences between existing shareholders and the new investors with respect to the number of Ordinary Shares purchased from us, the total consideration paid and the average price per ordinary share before deducting the estimated commissions to the Underwriter and the estimated offering expenses payable by us.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **<br>Ordinary Shares <br>purchased** | **<br>Ordinary Shares <br>purchased** | **Total consideration** | **Average <br>price per <br>Ordinary <br>Share** |
|  | **Number** | **Percent** | **Percent** | **Average <br>price per <br>Ordinary <br>Share** |
|  | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
|  Existing shareholders |  | % | $% | $|
|  New investors |  | % | $% | $|
|  Total |  | 100% | $100% | $|

---

The pro forma as adjusted information as 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 our Ordinary Shares and other terms of this offering determined at the pricing.

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#### ENFORCEABILITY OF CIVIL LIABILITIES
We are incorporated under the laws of the Cayman Islands as an exempted company with limited liability. We are incorporated in the Cayman Islands to take advantage of certain benefits associated with being a Cayman Islands exempted company, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political and economic stability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an effective judicial system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a favorable tax system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the absence of exchange control or currency restrictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the availability of professional and support services.

However, certain disadvantages accompany incorporation in the Cayman Islands. These disadvantages include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Cayman Islands has a less developed body of securities laws as compared to the United States and these securities laws provide significantly less protection to investors as compared to the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cayman Islands companies may not have standing to initiate a shareholder derivative action in the federal courts of the United States.

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

All of our operations are conducted in China, and substantially all of our assets are located in China. A majority of our directors and officers are nationals or residents of jurisdictions other than the United States and most of their assets are located outside the United States. Specifically, a majority of our directors and officers are located in China. As a result, it may be difficult for a shareholder to effect service of process within the United States upon these individuals, or to bring an action against us or these individuals in the United States, or to enforce against us or them judgments obtained in United States courts, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States.

We have appointed Cogency Global Inc., located at 122 E 42<sup>nd</sup> St 18<sup>th</sup> Fl, New York, NY 10168, as our agent upon whom process may be served in any action brought against us under the securities laws of the United States.

, our counsel as to Cayman Islands law, has advised us that there is uncertainty as to whether the courts of the Cayman Islands would (i) recognize or enforce judgments of U.S. courts obtained against us or our directors or officers that are predicated upon the civil liability provisions of the federal securities laws of the United States or the securities laws of any state in the United States, or (ii) entertain original actions brought in the Cayman Islands against us or our directors or officers that are predicated upon the federal securities laws of the United States or the securities laws of any state in the United States.

has informed us that although there is no statutory enforcement in the Cayman Islands of judgments obtained in the federal or state courts of the United States (and the Cayman Islands are not a party to any treaties for the reciprocal enforcement or recognition of such judgments), a judgment obtained in such jurisdiction will be recognized and enforced in the courts of the Cayman Islands at common law, without any re-examination of the merits of the underlying dispute, by an action commenced on the foreign judgment debt in the Grand Court of the Cayman Islands, provided such judgment (a) is given by a foreign court of competent jurisdiction, (b) imposes on the judgment debtor a liability to pay a liquidated sum for which the judgment has been given, (c) is final, (d) is not in respect of taxes, a fine or a penalty, and (e) was not obtained in a manner and is not of a kind the enforcement of which is contrary to natural justice or the public policy of the Cayman Islands. However, the Cayman Islands courts are unlikely to enforce a judgment obtained from the U.S. courts under civil liability provisions of the U.S. federal securities law if such judgment is determined by the courts of the Cayman Islands to give rise to obligations to make payments that are penal or punitive in nature. A Cayman Islands court may stay enforcement proceedings if concurrent proceedings are being brought elsewhere.

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Jiangsu Junjin Law Firm, our counsel as to PRC law, has advised us that there is uncertainty as to whether the courts of China would:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

Jiangsu Junjin Law Firm has further advised us that 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 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 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 us or our directors and officers if it decides 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 in the Cayman Islands. Under the PRC Civil Procedures Law, foreign shareholders may originate actions based on PRC law against a company in China for disputes 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, however, difficult for U.S. shareholders to originate actions against us in the PRC 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 only of holding the Ordinary Shares, to establish a connection to the PRC for a PRC court to have jurisdiction as required under the PRC Civil Procedures Law.

#### Corporate history and structure
HUHUTECH is a holding company with no operations of its own. We conduct our operations in China primarily through our direct PRC subsidiaries. The Ordinary Shares offered in this prospectus are those of HUHUTECH.

The following figure shows our corporate structure as of the date of this prospectus, including our main subsidiaries and consolidated affiliated entities:

![](tflowchart_001.jpg)

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HUHUTECH International Group Inc., a Cayman Islands company limited by shares, was incorporated on July 8, 2021 It is a holding company and is not actively engaged in any business as of the date of this prospectus. Under the amended and restated memorandum of association that we expect to adopt and to become effective immediately prior to the completion of this offering, or the amended and restated memorandum and articles of association, HUHUTECH is authorized to issue 5,000,000,000 Ordinary Shares, par value $0.00001 per ordinary share. There are currently 5,000,000 issued and outstanding Ordinary Shares. HUHUTECH's registered office is at Harneys Fiduciary and its registered office is at 4<sup>th</sup> Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands.

HUHU HK was incorporated on July 28, 2021 under the laws of Hong Kong. HUHU HK is a Hong Kong limited company and a wholly owned subsidiary of HUHUTECH. HUHU HK is a holding company and does not have any operations.

HUHU Japan was incorporated on April 25, 2022 under the laws of Japan. HUHU Japan is a Japanese limited liability company and a wholly owned subsidiary of HUHUTECH. HUHU Japan is a company that will engage in exactly the same business as HUHU China.

Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd. was incorporated on December 10, 2021 under the laws of the People's Republic of China. WFOE is a limited liability company, and a wholly-owned subsidiary of HUHU HK. WFOE is a holding company and does not have any operations.

Jiangsu Huhu Electromechanical Technology Co., Ltd. was incorporated on August 20, 2015 under the laws of the People's Republic of China. HUHU China is a limited liability company.

#### Holding Company Structure
HUHUTECH is a holding company with no material operations of its own. We currently conduct our operations primarily through the HUHU China. Investors will not and may never directly hold equity interests in HUHU China. We control and receive the economic benefits of HUHU China's business operation, if any, through equity ownership.

#### Transfers of cash to and from our subsidiaries
Our management monitors the cash position of each entity within our organization regularly and prepares budgets on a monthly basis to ensure each entity has the necessary funds to fulfill its obligation for the foreseeable future and to provide adequate liquidity. In the event that there is a need for cash or a potential liquidity issue, it will be reported to our Chief Financial Officer and subject to approval by our board of directors, we will enter into an intercompany loan for the applicable subsidiary.

HUHUTECH is permitted under the laws of the Cayman Islands to provide funding to HUHU HK through loans or capital contributions without restrictions on the amount of the funds. HUHU HK is permitted under the respective laws of Hong Kong to provide funding to WFOE through dividend distribution without restrictions on the amount of the funds. There are no restrictions on dividend transfers from Hong Kong to the Cayman Islands.

To transfer cash from HUHU HK to WFOE, HUHU HK can increase its registered capital in WFOE, which requires a report with the local commerce department, the registration with the local administration for market regulation and registration with a local bank authorized by SAFE, or through a shareholder loan, which requires a registration with the State Administration of Foreign Exchange or its local bureau. Aside from the aforesaid declaration to the relevant authorities, there is no restriction or limitations on such cash transfer.

To make loans to HUHU HK, WFOE or HUHU China, according to Matters relating to the Macro-prudential Management of Comprehensive Cross-border Financing, or PBOC Circular 9 promulgated by the People's Bank of China, the total cross-border financing of a company shall be calculated using a risk-weighted approach and shall not exceed an upper limit. The upper limit shall be calculated as capital or assets

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(for enterprises, net assets shall apply) multiplied by a cross-border financing leverage ratio and multiplied by a macro-prudential regulation parameter. The macro-prudential regulation parameter is currently 1, which may be adjusted by the People's Bank of China and the State Administration of Foreign Exchange in the future, and the cross-border financing leverage ratio is 2 for enterprises. Therefore, the upper limit of the loans that a PRC company can borrow from foreign companies shall be calculated at 2 times the borrower's net assets. When WFOE and HUHU China jointly apply for borrowing foreign debt, the upper limit of borrowing shall be 2 times of the net assets in the consolidated financial statement, and HUHU China shall make a commitment to refrain from borrowing foreign debt in their own respective names.

HUHUTECH may rely on dividends paid by its subsidiaries for its working capital and cash needs, including the funds necessary to pay dividends to its shareholders. If HUHUTECH's subsidiaries incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to HUHUTECH.

As a result of PRC laws and regulations (noted below) that require annual appropriations of 10% of after-tax income to be set aside in a general reserve fund prior to payment of dividends, WFOE is restricted in that respect, as well as in other respects noted below, in their ability to transfer a portion of their net assets to HUHU HK as a dividend. We note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. PRC regulations currently permit the payment of dividends only out of accumulated profits, as determined in accordance with accounting standards and PRC regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. WFOE is required to set aside, at a minimum, 10% of their net income after taxes, based on PRC accounting standards, each year as statutory general reserves until the cumulative amount of such reserves reaches 50% of their registered capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Such reserves may not be distributed as cash dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. WFOE may, upon a decision made by the shareholder, draw a discretionary common reserve from the after-tax profits; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The incurrence of debt, specifically the instruments governing such debt, may restrict a subsidiary's ability to pay stockholder dividends or make other cash distributions.

As of the date of this prospectus, HUHUTECH and its subsidiaries do not have any plans to distribute earnings or settle amounts in the foreseeable future. During the six months ended June 30, 2022 and the fiscal years ended December 31, 2021 and 2020, there was no cash transfer between the holding company and its subsidiaries.

See "Corporate History and Structure — Transfers of Cash to and from Our Subsidiaries"

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#### MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND<br>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 related notes that appear in this prospectus. In addition to historical consolidated financial information, the following discussion contains forward*-looking *statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward*-looking *statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this prospectus, particularly in "Risk Factors." All amounts included herein with respect to the six months ended June 30, 2022 and 2021 are derived from our unaudited interim condensed consolidated financial statements included elsewhere in this prospectus. All amounts included herein with respect to the fiscal years ended December 31, 2021 and 2020 are derived from our audited consolidated financial statements included elsewhere in this prospectus. Our financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles, or U.S. GAAP.*

#### Overview
We are a holding company incorporated as an exempted company on July 9, 2021 under the laws of the Cayman Islands. As a holding company with no material operations of our own, we conduct substantially all of our operations through HUHU China. HUHU China is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for the optoelectronic, semiconductor, telecom and logistic industries in the People's Republic of China ("China" or "PRC").

HUHU China currently generates most of its revenues from system integration projects, which represent 97.4% and 97.7% of total revenue for the six months ended June 30, 2022 and 2021, respectively. We also generate revenue from product sales, which represent 2.3% and 0.7% of our revenue for the six months ended June 30, 2022 and 2021, respectively. Engineering consulting services represented 0.3% and 1.6% of total revenue for the six months ended June 30, 2022 and 2021, respectively. For the six months ended June 30, 2022 and 2021, our total revenues were approximately $6.3 million and $4.0 million, respectively.

Revenues from system integration projects represented 98.6% and 78.5% of total revenue in fiscal 2021 and 2020, respectively. HUHU China also generate revenue from product sales, which represent 0.4% and 5.2% of its revenue in fiscal 2021 and 2020, respectively. Engineering consulting services represented 1.0% and 16.3% of total revenue in fiscal 2021 and 2020, respectively. For the years ended December 31, 2021 and 2020, its total revenues were approximately $10.2 million and $4.5 million, respectively.

#### Coronavirus ("COVID-19") updates
The outbreak of COVID-19 has spread throughout the world. On March 11, 2020, the World Health Organization declared the outbreak a global pandemic. Many businesses and social activities in China and other countries and regions have been severely disrupted in the first quarter of 2020, including those of our suppliers, customers and employees. This global outbreak has also caused market panics, which materially and negatively affected the global financial markets, such as the plunge of global stocks on major stock exchanges in March 2020. Such disruption and the potential slowdown of the world's economy in 2020 and beyond could have a material adverse effect on our results of operations and financial condition. Due to the fact that the COVID-19 coronavirus outbreak appears to be gradually contained in China, our production and sales activities have been gradually returning to normal in fiscal 2021 and for the six months ended June 30, 2022. Recently, there has been a surge in COVID cases in China, and we are closely monitoring the situation and are prepared to take measures to adjust to the potential changes in our business operation, such as staff unavailability and supply problems. We and our customers have not experienced significant business disruptions and suspension of operations due to quarantine measures to contain the spread of the pandemic. We have experienced some occasional minor disruptions due to the quarantine measures taken by the local government. For example, in April 2022, we experienced temporary delays in product delivery due to shutdown caused by the pandemic that affected our logistics service providers. We believe delays of such nature have not created significant disruption of our business operations overall. In addition, there is hiking market demand of semiconductors because of the global shortage caused by economic recovery after the pandemic. Instead, the Company's revenues increased approximately 35% as compared to the fiscal 2020. However, there is still significant uncertainty regarding the possibility of a new wave of infections caused by new variant, and the breadth and duration of business disruptions due to the new waves could continue to have a material impact to the Company's operations. We cannot be sure that in the future, the quarantine measures will continue and may cause shortage in the supply of raw materials, reduce our production capacity, increase the likelihood of default from our customers and delay our product delivery.

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Our business operation was also disrupted, and may continue to be disrupted, if any of our employees are suspected of having contracted any contagious disease or condition, since it could require our employees to be quarantined or our offices and production to be closed down and disinfected. Moreover, regional outbreaks of COVID-19 may continue to emerge. All of these may have a material adverse effect on our results of operations and financial condition in the near term. COVID-19 and actions taken to reduce its spread continue to rapidly evolve. In late March and April 2022, certain regions in China were subject to lock-down and other constraints imposed by the local government authorities due to a new wave of COVID-19 outbreak in those regions. Employees who are located in those regions were required to work remotely and/or suspended any business travels. The extent to which COVID-19 may reduce the productivity of our employees, disrupt our service supply chains, reduce our access to capital or limit our business development activities, will depend on future developments, which are highly uncertain and cannot be predicted with confidence, such as the ultimate geographic spread of the disease, the duration of the outbreak, travel restrictions and social distancing in other countries, business closures or business disruptions and the effectiveness of actions taken in the U.S. and other countries to contain and treat the disease. To the extent the COVID-19 pandemic adversely affects our business, financial condition and results of operations, it may also have the effect of heightening many of the other risks described in this "Risk Factors" section. Despite the foregoing, in 2020 and 2021 and the six months ended June 30, 2022, we saw increased revenues and order activity since the COVID-19 pandemic. These results, as well as those of other metrics such as revenues, gross margins and other financial and operating data, may not be indicative of results for future periods. Some of the increased demand is likely due to customers being required or encouraged to stay at home, school closures and employers requiring employees to work remotely. Such increased demand may increase beyond manageable levels, may fluctuate significantly, or may not continue, including the possibility that demand may decrease from historical levels. The duration and severity of the COVID-19 pandemic, the amount of time it will take for normal economic activity to resume, and future government actions that may be taken are all unknown, and accordingly the situation remains dynamic and subject to rapid and possibly material change, including but not limited to changes that may materially affect the operations of our suppliers, logistics providers and customers, which ultimately could result in material adverse effects on our business, financial condition and results of operations.

The extent of the impact on our future financial results will be dependent on future developments such as the length and severity of the crisis, the potential resurgence of the crisis, future government actions in response to the crisis, and the overall impact of the COVID-19 pandemic on the global economy and capital markets, among many other factors, all of which remain highly uncertain and unpredictable. The Company continues taking actions to help mitigate the impact of the COVID-19 pandemic on the health and well-being of our employees, the communities in which we operate and our partners, and our operations and business as a whole.

#### Trends and Key Factors that Affect Operating Results
HUHU China currently derives a majority of its revenues from the system integration projects. 5% of the integration projects are long-term projects, which mainly include gas monitoring system, heat insulation system and facility monitoring and management system, and 95% are short-term contracts that are mainly supplemental contracts of long-term contracts. HUHU China intends to continually enhance the services and cross-sell new services to existing customers and acquire new customers by increasing market penetration with a deeper market coverage and broader geographical reach. HUHU China's construction enterprise qualification is first-class and well recognized by clients. Maintaining and enhancing the recognition, image and acceptance of our brand are important to HUHU China's ability to differentiate our products from and to compete effectively with our peers. Our brand image, however, could be jeopardized if we fail to maintain high product quality, pioneer and keep pace with evolving technology trends, or timely fulfill the orders for our products. If we fail to promote our brand or to maintain or enhance our brand recognition and awareness among our customers, or if we are subject to events or negative allegations affecting our brand image or the publicly perceived position of our brand, our business, results of operations and financial condition could be adversely affected.

HUHU China intends to expand the scope of services to the existing customers and acquire new customers by continually making significant investments in R&D. We plan to use 50% of our proceed from this offering to construct a 5,000 square meter R&D plant in Xinwu District Wuxi City of Jiangsu Province, PRC and purchase of the related equipment for the production of equipment for gas supply systems. For the years ended December 31, 2021 and 2020, we incurred R&D expense of $677,580 and 182,282, respectively. For the six months ended June 30, 2022 and 2021, our R&D expense amounted to $477,642 and $263,945, respectively. We will continue to improve upon and expand our production and products offerings through our research and development and technology innovations in order to deliver innovative products. We expect our research and development spending to stay above the amounts

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from the past years. Our business is closely related to the software and semiconductor industry, which is now experiencing rapid technological changes. Failure to anticipate technology innovations or adapt to such innovations in a timely manner, or at all, may result in our products becoming obsolete at sudden and unpredictable intervals.

We monitor a number of financial and non-financial key business metric to evaluate on a regular basis business and growth trends, establish budgets, measure the effectiveness of our sales and marketing efforts, and assess operational efficiencies. We believe that some of the most important measures include gross margin, operating margin, net income (loss) as well as the non-financial key metrics discussed below which may differ from other similarly titled metrics used by other companies, securities analysts or investors.

*Number of contracts for our system integration projects*

We monitor the number of contracts with customers for our system integration projects. The number of contracts will directly impact our results of operations, including revenues and gross margins for the foreseeable future. For the year ended December 31, 2021, we completed 93 system integration projects, which increased from 70 projects for the year ended December 31, 2020. For the six months ended June 30, 2022, we completed 89 system integration projects, increased from 67 projects for the six months ended June 30, 2021.

*Average contract price for our system integration projects*

We monitor the average contract price for our system integration project, which impacts our future revenue and gross margins. Our average contract price increased from $50,270 in the year ended December 31, 2020 to $107,613 in the year ended December 31, 2021. Our average contract price increased from $57,814 for the six months ended June 30, 2021 to $69,127 for the six months ended June 30, 2022.

*Expansion of our geographic coverage* 

We believe there is a substantial opportunity to further grow our customer base by continuing to make significant investments in sales, marketing and brand awareness. Our ability to attract new customers will depend on a number of factors, including competitive dynamics in our targeted new geographical markets in Japan. We intend to expand our marketing and sale team with a focus on increasing sales in targeted geographies and customer segments.

#### Results of Operations

#### For the six months ended June 30, 2022 and 2021
The following table summarizes the results of our operations for the six months ended June 30, 2022 and 2021, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** | | |
|  | **2022** | **2021** | **Change** | **% Change** |
|  | (Unaudited) | (Unaudited) | | |
|  REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; System integration projects | $6152326 | $3873564 | $2278762 | 58.8% |
| &nbsp;&nbsp;&nbsp; Engineering consulting services | 20187 | 61255 | (41068) | (67.0)% |
| &nbsp;&nbsp;&nbsp; Product sales | 145622 | 29590 | 116032 | 392.1% |
| &nbsp;&nbsp;&nbsp; Total revenues | 6318135 | 3964409 | 2353726 | 59.4% |
|  COST OF REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; System integration projects | 4134339 | 2666553 | 1467786 | 55.0% |
| &nbsp;&nbsp;&nbsp; Engineering consulting services | 9679 | 27153 | (17474) | (64.4)% |
| &nbsp;&nbsp;&nbsp; Product sales | 89383 | 19313 | 70070 | 362.8% |
| &nbsp;&nbsp;&nbsp; Total cost of revenues | 4233401 | 2713019 | 1520382 | 56.0% |
|  GROSS PROFIT | 2084734 | 1251390 | 833344 | 66.6% |
|  OPERATING EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 91382 | 114518 | (23136) | (20.2)% |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 387315 | 315022 | 72293 | 22.9% |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 477642 | 263945 | 213697 | 81.0% |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** | | |
|  | **2022** | **2021** | **Change** | **% Change** |
|  | (Unaudited) | (Unaudited) | | |
| &nbsp;&nbsp;&nbsp; Total operating expenses | 956339 | 693485 | 262854 | 37.9% |
|  **Income from operations** | 1128395 | 557905 | 570490 | 102.3% |
|  OTHER INCOME (EXPENSES): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 3215 | 5122 | (1907) | (37.2)% |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (22411) | (20844) | (1567) | 7.5% |
| &nbsp;&nbsp;&nbsp; Other income, net | 78838 | 109043 | (30205) | (27.7)% |
| &nbsp;&nbsp;&nbsp; Total other income, net | 59642 | 93321 | (33679) | (36.1)% |
|  INCOME BEFORE INCOME TAXES | 1188037 | 651226 | 536811 | 82.4% |
|  Provision for income taxes | 175785 | 88217 | 87568 | 99.3% |
|  NET INCOME | $1012252 | $563009 | $449243 | 79.8% |

---

*Revenues*

We derive revenues from three sources: (1) system integration projects, (2) engineering consulting services, and (3) product sales.

The Company is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for optoelectronic, semiconductor, telecom and logistic industries. For the six months ended June 30, 2022, our total revenue was approximately $6.3 million as compared to $4.0 million for the six months ended June 30, 2021. The Company's total revenue increased by approximately $2.4 million, or 59.4%. The overall increase in total revenue was primarily attributable to a $2.3 million increased in revenue from system integration projects.

*<u>*<u>Revenue from system integration projects</u>*</u>*

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. For the six months ended June 30, 2022, most of our system integration project contracts are short term contracts. These contracts require the Company to perform customized services of project planning, system coding, installation of hardware and equipment, and configuration based on customers' specific needs which requires significant customization. Revenue is recognized over the contract time using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion.

For the six months ended June 30, 2022, revenue from system integration projects was approximately $6.2 million as compared to $3.9 million for the six months ended June 30, 2021, representing an increase of $2.3 million or 58.8%, which was due to more contracts completed during the six months ended June 30, 2022. We successfully obtained new customers such as Anhui Rui Cheng Engineering Technology Co., Ltd. and Suzhou Rui Ze System Project Co., Ltd. The number of contracts we completed were 89 and 67 for the six months ended June 30, 2022 and 2021, respectively. The average contract price increased from $57,814 for the six months ended June 30, 2021 to $69,127 for the six months ended June 30, 2022.

*<u>*<u>Revenue from engineering consulting services</u>*</u>*

Revenues generated from engineering consulting services are recognized upon the delivery of the engineering report as the Company's performance obligations are satisfied.

For the six months ended June 30, 2022, revenues from engineering consulting services were approximately $20,187 as compared to $61,255 for the six months ended June 30, 2021, representing a decrease of $41,068 or 67.0%. The significant decrease in revenue from engineering consulting services was mainly due to a strategic shift by the Company to focus on system integration projects. For the six months ended June 30, 2022, the Company focused on developing system integration business and had less engineering consulting contracts in the first half of fiscal 2022.

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*<u>*<u>Revenue from product sales</u>*</u>*

Revenues from product sales is recognized when delivery has occurred and the customer accepts the equipment and the Company has no performance obligations after the acceptance.

For the six months ended June 30, 2022, our product sales were $145,622 as compared to $29,590 for the six months ended June 30, 2021. The increase in product sales revenue was approximately $0.1 million or 392.1% due to our new export sales during the six months ended June 30, 2022.

*Cost of Revenues*

Our cost of revenues mainly consists of outsourcing costs, material costs and compensation expenses for our professionals.

Our total cost of revenues increased by approximately $1.5 million or 56.0% from approximately $2.7 million for the six months ended June 30, 2021 to approximately $4.2 million for the six months ended June 30, 2022, which was primarily resulted from the increase in cost of system integration projects.

Cost of system integration projects increased by approximately $1.5 million or 55.0% from approximately $2.7 million for the six months ended June 30, 2021 to $4.1 million for the six months ended June 30, 2022, which was in line with the increase in the number of system integration projects and the related revenue growth in the first half of fiscal 2022.

Cost of engineering consulting services decreased by $17,474 from $27,153 for the six months ended June 30, 2021 to $9,679 for the six months ended June 30, 2022, which was in line with the decrease in the related revenue.

Cost of product sales increased $70,070 from $19,313 for the six months ended June 30, 2021 to $89,383 for the six months ended June 30, 2022 due to the increased export product sales.

#### Gross profit

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **GROSS PROFIT** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** | | |
|  **GROSS PROFIT** | **2022** | **2022** | **2021** | **2021** |  |  |
|  **GROSS PROFIT** | **Gross <br>Profit** | **Gross Margin** | **Gross <br>Profit** | **Gross Margin** | **Change** | **% of Change** |
|  | (Unaudited) |  | (Unaudited) |  |  |  |
|  System integration projects | $2017987 | 32.8% | $1207011 | 31.2% | $810976 | 67.2% |
|  Engineering consulting services | 10508 | 52.1% | 34102 | 55.7% | (23594) | (69.2)% |
|  Product sales | 56239 | 38.6% | 10277 | 34.7% | 45962 | 447.2% |
|  Total gross profit | $2084734 | 33.0% | $1251390 | 31.6% | $833344 | 66.6% |

---

Our gross profit increased by approximately $0.8 million or 66.6% from approximately $1.3 million for the six months ended June 30, 2021 to approximately $2.1 million for the six months ended June 30, 2022. The increase of gross profit for the six months ended June 30, 2022 was mainly due to the increase of our revenue from system integration projects. Gross profit margin as a percent of overall revenue for the six months ended June 30, 2022 and 2021 was 33.0% and 31.6%, respectively.

Gross profit for system integration projects increased by approximately $0.8 million from approximately $1.2 million for the six months ended June 30, 2021 to approximately $2.0 million for the six months ended June 30, 2022. Gross profit margin for the six months ended June 30, 2022 and 2021 was 32.8% and 31.2%, respectively. Gross profit margin for system integration projects was steady for the six months ended June 30, 2022 and 2021.

Gross profit for engineering consulting services decreased by $23,594 or 69.2% from $34,102 for the six months ended June 30, 2021 to $10,508 for the six months ended June 30, 2022. Gross profit margin for the six months ended June 30, 2022 and 2021 was 52.1% and 55.7%, respectively. The slight decrease in gross profit margin was due to higher staffing costs for the six months ended June 30, 2022.

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Gross profit for product sales increased by $45,962 or 447.2% from $10,277 for the six months ended June 30, 2021 to $56,239 in for the six months ended June 30, 2022. Gross profit margin for the six months ended June 30, 2022 and 2021 was 38.6% and 34.7%, respectively. The increase in gross profit margin was mainly due to the higher selling price for our export products for the six months ended June 30, 2022.

*Operating Expenses*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** | | |
|  | **2022** | **2021** | **Change** | **% Change** |
|  | (Unaudited) | (Unaudited) | | |
|  OPERATING EXPENSES: |  |  |  |  |
|  Selling expenses | $91382 | $114518 | $(23136) | (20.2)% |
|  General and administrative expenses | 387315 | 315022 | 72293 | 22.9% |
|  Research and development expenses | 477642 | 263945 | 213697 | 81.0% |
|  Total operating expenses | $956339 | $693485 | $262854 | 37.9% |

---

Our operating expenses consist of selling, general and administrative and research and development ("R&D") expenses. Operating expenses increased by approximately $0.3 million, or 37.9%, from approximately $0.7 million for the six months ended June 30, 2021 to approximately $1.0 million the six months ended June 30, 2022. The increase in our operating expenses was primarily due to approximately $0.2 million increase in research and development expenses.

Selling expenses primarily consisted of promotional fees, advertising expenses, travel, salary and compensation expenses relating to our sales personnel and other expenses relating to our sales activities. Selling expenses decreased by $23,136 or 20.2% from $114,518 for the six months ended June 30, 2021 to $91,382 for the six months ended June 30, 2022 mainly due to less marketing and promotion activities for the six months ended June 30, 2022 as compared to for the six months ended June 30, 2021.

General and administrative expenses primarily consisted of salary and compensation expenses relating to our accounting, human resources and executive office personnel, and included rental expenses, depreciation and amortization expenses, office overhead, impairment losses, professional service fees and travel and transportation costs. General and administrative expenses increased by $72,293 or 22.9% from approximately $0.3 million for the six months ended June 30, 2021 to approximately $0.4 million for the six months ended June 30, 2022, due to the salary and social welfare expense increased by $52,109 as a result of increased number of administrative personnel and average salaries. As a percentage of revenues, general and administrative expenses were 6.1% and 7.9% of our total revenue for the six months ended June 30, 2022 and 2021, respectively.

R&D expenses primarily consisted of compensation and benefit expenses relating to our R&D personnel as well as office overhead and other expenses relating to our R&D activities. Our R&D expenses increased from approximately $0.3 million for the six months ended June 30, 2021 to approximately $0.5 million for the six months ended June 30, 2022, representing 7.6% and 6.7% of our total revenues for the six months ended June 30, 2022 and 2021, respectively. We expect to continue to invest in R&D.

*Other Income (Expense)*

Other income (expense) primarily consists of interest income, interest expense and other income. Our net other income amounted to $59,642 for the six months ended June 30, 2022, as compared to a net other income of $93,321 for the six months ended June 30, 2021, mainly due to lower government grant and interest income.

*Income tax provision*

Income tax provision was $175,785 and $88,217 for the six months ended June 30, 2022 and 2021, respectively. 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 a case-by-case basis. According to PRC tax regulations, 200% of current year research & development ("R&D") expense approved by the local tax authority may be deducted from tax income since January 1, 2021. The additional R&D deduction lowered our effective income tax rate to 14.8% and 13.5% for the six months ended June 30, 2022 and 2021, respectively.

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#### Net Income
As a result of reasons and circumstances discussed above, our net income increased by approximately $0.4 million, or 79.8%, from approximately $0.6 million for the six months ended June 30, 2021 to approximately $1.0 million for the six months ended June 30, 2022. The increased net income is mainly attributed to an increase of approximately $0.8 million in gross profit, offset by an increase of approximately $0.3 million in operating expenses.

*Other comprehensive income*

Foreign currency translation adjustments amounted to $(172,123) and $15,178 for the six months ended June 30, 2022 and 2021, respectively. The balance sheet amounts with the exception of equity as of June 30, 2022 were translated at RMB6.6981 to USD1.00 as compared to RMB6.3726 to USD1.00 as of December 31, 2021. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the six months ended June 30, 2022 and 2021 were RMB6.4791 to USD1.00 and RMB6.4702 to USD1.00, respectively. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S, dollar terms without giving effect to any underlying change in our business or results of operation.

#### For the years ended December 31, 2021 and 2020
The following table summarizes the results of our operations for the years ended December 31, 2021 and 2020, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **Change** | **% Change** |
|  | **2021** | **2020** | **Change** | **% Change** |
|  REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; System integration projects | $10007968 | $3518932 | $6489036 | 184.4% |
| &nbsp;&nbsp;&nbsp; Engineering consulting services | 105312 | 733548 | (628236) | (85.6)% |
| &nbsp;&nbsp;&nbsp; Product sales | 43161 | 232504 | (189343) | (81.4)% |
| &nbsp;&nbsp;&nbsp; Total revenues | 10156441 | 4484984 | 5671457 | 126.5% |
|  COST OF REVENUES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; System integration projects | 7027956 | 2257977 | 4769979 | 211.3% |
| &nbsp;&nbsp;&nbsp; Engineering consulting services | 47012 | 4298 | 42714 | 993.8% |
| &nbsp;&nbsp;&nbsp; Product sales | 19454 | 129506 | (110052) | (85.0)% |
| &nbsp;&nbsp;&nbsp; Total cost of revenues | 7094422 | 2391781 | 4702641 | 196.6% |
|  GROSS PROFIT | 3062019 | 2093203 | 968816 | 46.3% |
|  OPERATING EXPENSES: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 271071 | 45962 | 225109 | 489.8% |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 689143 | 469843 | 219300 | 46.7% |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 677580 | 182282 | 495298 | 271.7% |
| &nbsp;&nbsp;&nbsp; Total operating expenses | 1637794 | 698087 | 939707 | 134.6% |
|  **Income from operations** | 1424225 | 1395116 | 29109 | 2.1% |
|  OTHER INCOME (EXPENSES) |  |  |  |  |
|  Interest income | 8071 | 620 | 7451 | 1201.8% |
|  Interest (expense) | (35007) | (15630) | (19377) | 124.0% |
|  Other income, net | 224358 | 603 | 223755 | 37107.0% |
|  Total other income (expense), net | 197422 | (14407) | 211829 | (1470.3)% |
|  INCOME BEFORE INCOME TAXES | 1621647 | 1380709 | 240938 | 17.5% |
|  Provision for income taxes | 252605 | 316239 | (63634) | (20.1)% |
|  NET INCOME | $1369042 | $1064470 | $304572 | 28.6% |

---

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*Revenues*

We derive revenues from three sources: (1) system integration projects, (2) engineering consulting services, and (3) product sales.

The Company is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for optoelectronic, semiconductor, telecom and logistic industries. For the year ended December 31, 2021, our total revenue was approximately $10.2 million as compared to $4.5 million for the year ended December 31, 2020. The Company's total revenue increased by approximately $5.7 million, or 126.5%. The overall increase in total revenue was primarily attributable to a $6.5 million increased in revenue from system integration projects.

*<u>*<u>Revenue from system integration projects</u>*</u>*

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. For the years ended December 31, 2021 and 2020, most of our system integration project contracts are short term contracts. Our system integration project contracts require the Company to perform customized services of project planning, system coding, installation of hardware and equipment, and configuration based on customers' specific needs which requires significant customization. Revenue is recognized over the contract time using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion.

For the year ended December 31, 2021, revenue from system integration projects was approximately $10.0 million as compared to $3.5 million for the year ended December 31, 2020, representing an increase of $6.5 million or 184.4%, which was due to more contracts completed. We successfully obtained new customers such as China Electronic System Engineering Second Construction Co., Ltd. and China Electronic System Engineering Fourth Construction Co., Ltd. The number of contracts we completed were 93 and 70 for the years ended December 31, 2021 and 2020, respectively. The average contract price increased from $50,270 in the year ended December 31, 2020 to $107,613 in the year ended December 31, 2021.

*<u>*<u>Revenue from engineering consulting services</u>*</u>*

Revenues generated from engineering consulting services are recognized upon the delivery of the engineering report as the Company's performance obligations are satisfied.

For the year ended December 31, 2021, revenues from engineering consulting services were approximately $0.1 million as compared to $0.7 million for the year ended December 31, 2020, representing a decrease of $0.6 million or 85.6%. The significant decrease in revenue from engineering consulting services was mainly due to due to a strategic shift by the Company to focus on system integration projects in fiscal year 2021.

*<u>*<u>Revenue from product sales</u>*</u>*

Revenues from product sales is recognized when delivery has occurred and the customer accepts the equipment and the Company has no performance obligations after the acceptance.

For the year ended December 31, 2021, our product sales were $43,161 as compared to $0.2 million for the year ended December 31, 2020. The decrease in product sales revenue was approximately $0.2 million or 81.4% due to a strategic shift by the Company to focus on system integration projects in fiscal year 2021.

*Cost of Revenues*

Our cost of revenues mainly consists of outsourcing costs, material costs and compensation expenses for our professionals.

Our total cost of revenues increased by approximately $4.7 million or 196.6% from approximately $2.4 million in the year ended December 31, 2020 to approximately $7.1 million in the year ended December 31, 2021.

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Cost of system integration projects increased by approximately $4.8 million or 211.3% from approximately $2.3 million in the year ended December 31, 2020 to $7.0 million in the year ended December 31, 2021, which was in line with the revenue increase.

Cost of engineering consulting services increased $42,714 from $4,298 in the year ended December 31, 2020 to $47,012 in the year ended December 31, 2021. The increase of the costs was mainly due to the increased staffing costs used in those engineering consulting services in fiscal 2021. Those consulting services were mainly provided to the stated-owned companies ("SOE") for their large projects, in anticipation of gaining potential cross selling opportunities and expanding the customer base of our system integration service and products offering among customers of SOEs.

Cost of product sales decreased $110,053 from $129,506 in the year ended December 31, 2020 to $19,454 in the year ended December 31, 2021. The decrease was consistent with the decrease of the revenue from product sales.

#### Gross profit

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  **GROSS PROFIT** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **Change** | **% of <br>Change** |
|  **GROSS PROFIT** | **2021** | **2021** | **2020** | **2020** | **Change** | **% of <br>Change** |
|  **GROSS PROFIT** | **Gross <br>Profit** | **Gross <br>Margin** | **Gross <br>Profit** | **Gross <br>Margin** | **Change** | **% of <br>Change** |
|  System integration projects | $2980012 | 29.8% | $1260955 | 35.8% | $1719057 | 136.3% |
|  Engineering consulting services | 58300 | 55.4% | 729250 | 99.4% | (670950) | (92.0)% |
|  Product sales | 23707 | 54.9% | 102998 | 44.3% | (79291) | (77.0)% |
|  Total gross profit | $3062019 | 30.1% | $2093203 | 46.7% | $968816 | 46.3% |

---

Our gross profit increased by approximately $1.0 million or 46.3.% from approximately $2.1 million in fiscal 2020 to approximately $3.1 million in fiscal 2021. The increase of gross profit in fiscal 2021 was mainly due to the increase of our revenue from system integration projects. Gross margin as a percent of overall revenue for fiscal 2021 and 2020 was 30.1% and 46.7%, respectively. The decrease of the gross margin in fiscal 2021 was mainly due to we had more projects from stated-owned companies, which normally has lower profit margin as compared to private companies.

Gross profit for system integration projects increased by approximately $1.7 million from approximately $1.3 million in fiscal 2020 to approximately $3.0 million in fiscal 2021. Gross profit margin for fiscal 2021 and 2020 was 29.8% and 35.8%, respectively. The decrease of the gross margin in fiscal 2021 was mainly due to we had more projects from stated-owned companies, which normally has lower profit margin as compared to private companies.

Gross profit for engineering consulting services decreased by approximately $0.7 million or 92.0% from approximately $0.7 million in fiscal 2020 to $58,300 in fiscal 2021. Gross profit margin for fiscal 2021 and 2020 was 55.4% and 99.4%, respectively. The decrease of the gross margin in fiscal 2021 was mainly due to we had higher staffing costs in fiscal 2021.

Gross profit for product sales decreased by approximately $0.1 million or 77.0% from approximately $0.1 million in 2020 to $23,707 in fiscal 2021. Gross profit margin for fiscal 2021 and 2020 was 54.9% and 44.3%, respectively. The increase in gross profit margin was mainly due to we had higher selling price for our electric cables in fiscal 2021.

*Operating Expenses*

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** | **Change** | **% Change** |
|  | **2021** | **2020** | **Change** | **% Change** |
|  OPERATING EXPENSES: |  |  |  |  |
|  Selling expenses | $271071 | $45962 | $225109 | 489.8% |
|  General and administrative expenses | 689143 | 469843 | 219300 | 46.7% |
|  Research and development expenses | 677580 | 182282 | 495298 | 271.7% |
|  Total operating expenses | $1637794 | $698087 | $939707 | 134.6% |

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Our operating expenses consist of selling, general and administrative and R&D expenses. Operating expenses increased by approximately $0.9 million, or 134.6%, from approximately $0.7 million for the year ended December 31, 2020 to $1.6 million for the year ended December 31, 2021. The increase in our operating expenses was primarily due to approximately $0.2 million increase in selling and marketing expenses, approximately $0.2 million increase in general and administrative expenses, and approximately $0.5 million increase in research and development expenses.

Selling expenses primarily consisted of promotional fees, advertising expenses, travel, salary and compensation expenses relating to our sales personnel and other expenses relating to our sales activities. Selling expenses increased by approximately $0.2 million or 489.8% from $45,962 in fiscal 2020 to approximately $0.3 million in fiscal 2021 mainly due to increased promotional fees and travel expenses in related to our participating in several industrial exhibitions. Salary and compensation expenses also increased in fiscal 2021 as compared to fiscal 2020. These increases were in line with the increased sales.

General and administrative expenses primarily consisted of salary and compensation expenses relating to our accounting, human resources and executive office personnel, and included rental expenses, depreciation and amortization expenses, office overhead, impairment losses, professional service fees and travel and transportation costs. General and administrative expenses increased by approximately $0.2 million or 46.7% from approximately $0.5 million in fiscal 2020 to approximately $0.7 million in fiscal 2021, due to the salary and social welfare expense increased by approximately $0.2 million as a result of increased number of administrative personnel and average salaries for the year. As a percentage of revenues, general and administrative expenses were 6.8% and 10.5% of our total revenue in fiscal 2021 and 2020, respectively.

R&D expenses primarily consisted of compensation and benefit expenses relating to our R&D personnel as well as office overhead and other expenses relating to our R&D activities. Our R&D expenses increased from approximately $0.2 million in fiscal 2020 to $0.7 million in fiscal 2021, representing 6.7% and 4.1% of our total revenues for fiscal 2021 and 2020, respectively. We expect to continue to invest in R&D.

*Other Income (Expense)*

Other income (expense) primarily consists of interest income, interest expense and other income. Our net other income amounted to approximately $0.2 million in fiscal 2021, as compared to a net other expense of $14,407 in fiscal 2020, mainly due to a higher government grant and higher interest income.

*Income tax provision*

Income tax provision was $252,605 and $316,239 in fiscal 2021 and 2020, respectively. 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 a case-by-case basis.

*Net Income*

As a result of reasons and circumstances discussed above, our net income increased by approximately $0.3 million, or 28.6%, from approximately $1.1 million in fiscal 2020 to approximately $1.4 million in fiscal 2021. The increased net income is mainly attributed to an increase of approximately $1.0 million in gross profit, as well as the government grant of approximately $0.2 million, offset by an increase of approximately $0.9 million in operating expenses.

*Other comprehensive income*

Foreign currency translation adjustments amounted to $49,982 and $52,568 for the years ended December 31, 2021 and 2020, respectively. The balance sheet amounts with the exception of equity as of December 31, 2021 were translated at RMB6.3726 to USD1.00 as compared to RMB6.5250 to USD1.00 as of December 31, 2020. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the years ended December 31, 2021 and 2020 were RMB6.4508 to USD1.00 and RMB6.9042 to USD1.00, respectively. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S, dollar terms without giving effect to any underlying change in our business or results of operation.

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#### Liquidity and Capital Resources
Substantially all of our operations are conducted in China and all of 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 June 30, 2022, December 31, 2021 and 2020, the aggregate amount of cash in banks of $1,108,685, $69,267 and $154,644 respectively, was held at major financial institutions in the PRC.

We have historically funded our working capital needs primarily from operations, bank loans, advance payments from customers and capital contributions from shareholders. For the year ended December 31, 2021, we had working capital of approximately $1.5 million and generated a net income of approximately $1.4 million. For fiscal 2021, our cash flow used in operations was $0.4 million. For the six months ended June 30, 2022, we had working capital of approximately $2.5 million and generated a net income of approximately $1.0 million. For the six months ended June 30, 2022, our operating cash flow amounted to $0.2 million. The working capital requirements are affected by the efficiency of operations, the numerical volume and dollar value of revenue contracts, the progress or execution on customer contracts, and the timing of accounts receivable collections.

In assessing our liquidity, we monitor and analyze our cash on hand, the availability of our bank loans and our ability to generate sufficient revenue sources in the future and our operating and capital expenditure commitments. As of June 30, 2022 and December 31, 2021, we had cash of approximately $1.1 million and $0.1 million, respectively. As of June 30, 2022 and December 31, 2021, our short term bank loan balance was approximately $1.6 million and $1.1 million, respectively.

As of June 30, 2022, our short term bank loan balance was approximately $1.6 million, an increase of 56.2% from short term bank loans of $1.1 million as of December 31, 2021. As of June 30, 2022, the terms of our outstanding bank loans were generally within one year with maturity dates varying from March 2023 to June 2023. Subsequent to June 30, 2022, we signed new bank loan agreements with an aggregated short term loan amount of approximately $2.2 million. The term of these new loans are generally within one year with maturity dates varying from July to August 2023. These new loans have fixed annual interest rates ranging from 2.83% to 3.70%.

We also had restricted cash of $285,320 and $536,456 as of June 30, 2022 and December 31, 2021, respectively. Restricted cash consists of cash and cash equivalents which is used as collateral to secure notes payable and used as guarantee deposit to secure the performance guarantee bank acceptance. A note payable is a draft issued by a bank for payments in future, which defers the payment until the due date for redeeming the note. According to the notes payable agreement with the bank, 50%-100% of the amount is required to be deposited at the bank as security for the notes payable. Guarantee deposit is the deposit in bank to secure the performance guarantee bank acceptance issued by the bank. The performance guarantee bank acceptance is required by the Company's customer for certain project as a guarantee to fulfill the contract. The security deposit for notes payable and performance guarantee bank acceptances amounted to $180,634 and $104,686, respectively, as of June 30, 2022. The security deposit for notes payable and performance guarantee bank acceptance amounted to $112,701 and $423,755 as of December 31, 2021. The security deposit for performance guarantee bank acceptance amounted to $482,797 as of December 31, 2020. The Company earns interest at a variable rate per month on this restricted cash balance.

The Cayman holding company is a holding company with no material operations of its own. We conduct our operations primarily through HUHU China. As a result, the Company's ability to pay dividends depends upon dividends paid by our subsidiaries. HUHU China is permitted to pay dividends to us only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC law, our subsidiaries are required to set aside at least 10% of their 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 subsidiaries out of China is subject to examination by the banks designated by SAFE. Our subsidiaries have not paid dividends and will not be able to pay dividends until they generate accumulated profits and meet the requirements for statutory reserve funds. In addition, we would need to accrue and pay withholding taxes if we were to distribute funds from HUHU China to us. We do not intend to repatriate such funds in the foreseeable future, as we plan to use existing cash balance in PRC for general corporate purposes.

The Company believes that its cash on hand and operating cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this report. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and/or

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access to short term bank loans, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company's amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility.

#### For the six months ended June 30, 2022 and 2021
The following summarizes the key components of our cash flows for the six months ended June 30, 2022 and 2021:

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** |
|  | **2022** | **2021** |
|  | (Unaudited) | (Unaudited) |
|  Net cash provided by (used in) operating activities | $191774 | $(30530) |
|  Net cash (used in) investing activities | (10752) | (3535) |
|  Net cash provided by financing activities | 556397 | 409936 |
|  Effect of exchange rate change on cash | 45849 | 7707 |
|  Net increase in cash | $783268 | $383578 |

---

#### Operating Activities
Net cash provided by operating activities was approximately $0.2 million for the six months ended June 30, 2022. Cash provided by operating activities for the six months ended June 30, 2022 mainly consisted of approximately $1.0 million of net income, adjustment of ($36,333) for non-cash items, an increase of accounts payable of approximately $1.1 million, an increase of advance from customers of approximately $0.1 million, offset by an increase in accounts receivable of approximately $0.7 million, an increase of approximately $0.4 million in notes receivable, an increase in inventory of approximately $0.6 million and an increase in advance to vendors of approximately $0.5 million.

Net cash used in operating activities was $30,530 for the six months ended June 30, 2021. Cash used in operating activities for the six months ended June 30, 2021 mainly consisted of approximately $0.6 million of net income, adjustment of $0.1 million for non-cash items, an increase of approximately $1.2 million in accounts payable, an increase in accrued expenses and other liabilities of approximately $0.3 million, offset by an increase of approximately $1.2 million in accounts receivable, an increase of approximately $0.2 million in notes receivable, an increase in inventory of approximately $0.2 million, an increase in prepayments and other assets of approximately $0.1 million and an increase in advance to vendors of approximately $0.6 million.

#### Investing Activities
Net cash used in investing activities was $10,752 and $3,535 for the six months ended June 30, 2022 and 2021, respectively, mainly consisting of purchases of property and equipment.

#### Financing Activities
Net cash provided by financing activities was approximately $0.6 million for the six months ended June 30, 2022, consisted of proceeds from short-term bank loans of approximately $1.7 million, offset by approximately $1.0 million repayment of short-term bank loans, $94,688 repayment to related parties, and $12,588 payment of deferred offering costs.

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Net cash provided by financing activities was approximately $0.4 million for the six months ended June 30, 2021, consisted of proceeds from short-term bank loans of approximately $0.8 million, shareholder's contributions of approximately $0.5 million, offset by approximately $0.5 million repayment of short-term bank loans of and approximately $0.4 million payment of deferred offering costs.

#### For the years ended December 31, 2021 and 2020
The following summarizes the key components of our cash flows for the years ended December 31, 2021 and 2020:

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| | | |
|:---|:---|:---|
|  | **For the Years Ended <br>December 31,** | **For the Years Ended <br>December 31,** |
|  | **2021** | **2020** |
|  Net cash (used in) operating activities | $(448158) | $(122793) |
|  Net cash (used in) investing activities | (283854) | (524994) |
|  Net cash provided by financing activities | 690738 | 1138079 |
|  Effect of exchange rate change on cash | 14752 | 96800 |
|  Net (decrease) increase in cash | $(26522) | $587092 |

---

#### Operating Activities
Net cash used in operating activities was approximately $0.4 million for the year ended December 31, 2021. Cash used by operating activities for the year ended December 31, 2021 mainly consisted of approximately $1.4 million of net income, adjustment of $0.3 million non-cash items, an increase in accounts receivable of approximately $3.6 million, an increase in inventory of approximately $0.2 million, an increase in prepayments and other assets of approximately $0.1 million, an increase in accrued expenses and other liabilities of approximately $0.1 million, an increase of approximately $0.1 million in taxes payable a decrease of advance from customers of approximately $0.3 million, offset by net income of approximately $1.4 million and an increase of accounts payable of approximately $1.7 million.

Net cash used in operating activities was approximately $0.1 million for the year ended December 31, 2020. Cash used in operating activities for the year ended December 31, 2020 mainly consisted of approximately $1.1 million of net income, adjustment of $0.4 million non-cash items, an increase of approximately $0.1 million in note receivable, an increase in inventory of approximately $0.1 million, an increase in prepayments and other assets of approximately $0.1 million, an increase in accrued expenses and other liabilities of approximately $0.1 million, an decrease of approximately $1.7 million in accounts receivable, offset by an decrease of approximately $3.1 million in accounts payable and an decrease of approximately $0.1 million in advance from customers.

#### Investing Activities
Net cash used in investing activities was $0.3 million for fiscal 2021, mainly consisting of $42,024 in purchases of property and equipment, and purchases of intangible assets of approximately 0.2 million.

Cash used in investing activities was $0.5 million for fiscal 2020, mainly consisting of property and equipment purchases.

#### Financing Activities
Net cash provided from financing activities was approximately $0.7 million for fiscal 2021, and consisted of $18,314 repayment from related parties, shareholder's contributions of approximately $0.5 million, proceeds from short-term bank loans of approximately $1.0 million and proceeds from notes payable of approximately $0.1 million, repayment of short-term bank loans of approximately $0.5 million, and payment of deferred offering costs of approximately $0.4 million.

Net cash provided from financing activities was approximately $1.1 million for fiscal 2020, including proceeds from related parties of approximately $0.6 million, shareholder's contributions of approximately $0.1 million and proceeds from short-term bank loans of approximately $0.4 million.

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#### Capital Expenditures
The Company made capital expenditures of $10,752, $283,854 and $524,994 for the six months ended June 30, 2022 and the years ended December 31, 2021 and 2020, respectively. In these periods, our capital expenditures were mainly used for purchases of property, intangible assets and equipment. The Company will continue to make capital expenditures to meet the expected growth of its business.

#### Contractual Obligations
The Company had an outstanding bank loan of approximately $1.6 million and $1.1 million as of June 30, 2022 and December 31, 2021, respectively. The Company has also entered into operating lease agreements for several offices. The leases are expiring through September 30, 2025.

The following table sets forth our contractual obligations and commercial commitments as of June 30, 2022 (unaudited):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **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 Years** | **3 – 5 Years** | **More than <br>5 Years** |
|  Operating lease arrangements | $43524 | $15180 | $28344 | $— | $— |
|  Bank loans | 1642257 | 1642257 |  |  |  |
|  Total | $1685781 | $1657437 | $28344 | $— | $— |

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The following table sets forth our contractual obligations and commercial commitments as of December 31, 2021:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **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 Years** | **3 – 5 Years** | **More than <br>5 Years** |
|  Operating lease arrangements | $54078 | $16661 | $30027 | $7390 | $— |
|  Bank loans | 1051376 | 1051376 |  |  |  |
|  Total | $1105454 | $1068037 | $30027 | $7390 | $— |

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Pursuant to the Company's bank loan agreements, as of June 30, 2022, the Company is required to repay approximately $1.6 million of bank loans in the short term. In addition, the Company is required to pay operating lease commitments and fund our capital expenditure in the normal course of business. The Company's primary sources of liquidity consist of existing cash balances, cash flows from our operating activities and availability under bank loan credit facilities. As of June 30, 2022, the Company had cash of approximately $1.1 million and working capital of approximately $2.5 million. Subsequent to June 30, 2022, the Company obtained new bank loans in the aggregate amount of approximately $2.5 million as the date of this prospectus. The Company plans to utilize the proceeds of this Offering to construct a new 5,000 square meter R&D plant and did not enter into any fixed commitment for this expansion as the date of the Prospectus. The Company budgets the rest of capital spending based on ongoing assessments of needs to maintain adequate cash. In the long run, the Company believes that the anticipated cash raised from financings and anticipated cash flow from operations, together with the net proceeds from this offering, will be sufficient to meet our anticipated cash needs for the next 12 months from the date of this prospectus.

#### Off-Balance Sheet Arrangements
There were no off-balance sheet arrangements for the six months ended June 30, 2022 and for the years ended December 31, 2021 and 2020 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.

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#### Quantitative and Qualitative Disclosure About Market Risk
Interest Rate Risk

Our exposure to interest rate risk primarily relates to the interest income generated by excess cash invested in liquid investments with original maturities of three months or less. We have not used any derivative financial instruments to manage our interest risk exposure. Interest-earning instruments carry a degree of interest rate risk. We have not been exposed, nor do we anticipate being exposed, to material risks due to changes in interest rates. However, our future interest income may be lower than expected due to changes in market interest rates.

#### Foreign Exchange Risk
All of our revenues and most of our expenses are denominated in RMB. Our exposure to foreign exchange risk primarily relates to cash and cash equivalent denominated in U.S. dollars as a result of net proceeds from this offering. We do not believe that we currently have any significant direct foreign exchange risk and have not used any derivative financial instruments to hedge our exposure to such risk. Although, in general, our exposure to foreign exchange risks should be limited, the value of your investment in our ordinary shares will be affected by the exchange rate between U.S. dollar and RMB because the value of our business is effectively denominated in RMB, while our ordinary shares will be traded in U.S. dollars.

The value of the RMB against the U.S. dollar and other currencies is affected by, among other things, changes in the China's political and economic conditions. The RMB does not fluctuate with the U.S. dollar. Although the People's Bank of China regularly intervenes in the foreign exchange market to prevent significant short-term fluctuations in the exchange rate, the RMB may appreciate or depreciate significantly in value against the U.S. dollar in the medium to long term. Moreover, it is possible that in the future, PRC authorities may lift restrictions on fluctuations in the RMB exchange rate and lessen intervention in the foreign exchange market. In addition, the value of RMB could be affected by the proposed tariffs regarding trade with the United States.

To the extent that we need to convert U.S. dollars into RMB for our operations, appreciation of RMB against the U.S. dollar would reduce the RMB amount we receive from the conversion. Conversely, if we decide to convert RMB into U.S. dollars for the purpose of making payments for dividends on our ordinary shares, servicing our outstanding debt, or for other business purposes, appreciation of the U.S. dollar against the RMB would reduce the U.S. dollar amounts available to us.

#### Inflation Risk
Since our inception, inflation in China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, the year-over-year percent changes in the consumer price index for 2019, 2020 and 2021 were increases of 2.9 %, 2.5% and 0.9%, respectively. The year-over-year percent changes in the consumer price index for November 2022 was 1.6%. Although we have not in the past been materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in China.

#### Critical Accounting Policies
We prepare our consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past two years, 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 as a result of changes in our estimates.

Critical accounting estimates reflect significant judgments, estimates and uncertainties, which may result in materially different results under different assumptions and conditions. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. Our critical accounting

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policies and practices include the following: (i) accounts receivable and (ii) revenue recognition. 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 prospectus.

#### Accounts receivable, net
Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for doubtful accounts amounted to $252,303, $419,509 and $411,427 as of June 30, 2022, December 31, 2021 and December 31, 2020, respectively.

#### Revenue recognition
The Company adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606") on January 1, 2019 using the modified retrospective approach. Revenues were presented under ASC 606 and all subsequent ASUs that modified ASC 606 for the six months ended June 30, 2022 and 2021 and the years ended December 31, 2021 and 2020. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps:

Step 1: Identify the contract (s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company derives its revenues primarily from three sources: (1) system integration projects; (2) product sales; (3) engineering consulting services. All of the Company's contracts with customer do not contain cancellable and refund-type provisions.

*Revenue from system integration projects*

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. These contracts require the Company to perform customized services of projecting planning, system coding, installation of hardware and equipment, and significantly customized configuration based on customers' specific needs which requires significant customization. Upon delivery of the services, customer acceptance is generally required. In the same contract, the Company is required to provide a warranty period for a period of one to two years ("warranty period") after the customized project is delivered with a 3% – 10% holdback of the total contract price ("contract holdback") which is to be paid after the end of the warranty period. The Company determined the warranty clause included in the contractual term is directly related to the quality of the Company's integration projects and there are no specific tasks to be performed during the warranty period, and therefore, consider it an assurance-type warranty. The warranty is not considered a separate performance obligation and no revenue is associated with these services under ASC 606. Because of the nature of the projects, and the contract owners perform inspection during the project and prior to acceptance, the Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary.

Revenue is recognized over the contract term using the input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer confirms progress completion to date and compensate the Company for

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services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with the operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

The cost estimation process is based upon the professional knowledge and experience of the Company's engineers, project managers and financial professionals. Management conducts monthly reviews to assess the contract's schedule, performance, technical matters and estimated cost at completion. When changes in estimated contract costs are identified, such revisions may result in current period adjustments to operations applicable to performance in prior periods.

*Revenue from product sales*

The Company generates revenue primarily through the sale and delivery of promised goods to customers and recognizes revenue when control is transferred to customers, which typically occurs upon customer acceptance, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services and is recorded net of value-added tax ("VAT"). The Company's contracts with customer are primarily on a fixed-price basis and generally do not contain cancellable and refund-type provisions.

The Company generally provides a one-year warranty against defects in materials related to the sale of products. The Company considered the warranty as an assurance type warranty since the warranty provides the customer the assurance that the product complies with agreed-upon specifications. Estimated future warranty obligations are included in cost of product sales in the period in which the related revenue is recognized. The determination of the Company's warranty accrual is based on actual historical experience with the product, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

*Revenue from engineering consulting services*

Revenues generated from engineering consulting services are recognized upon the delivery of the engineering report as the Company's performance obligations are satisfied. Expenses related to these types of services are recognized as incurred.

#### Contract balances
Accounts receivable represent amounts invoiced and revenues recognized prior to invoicing when the Company has satisfied the Company's performance obligation and has the unconditional rights to payment. The balances of accounts receivable, net of allowance for doubtful accounts were $5,749,800, $5,177,611 and $1,503,107 as of June 30, 2022, December 31, 2021 and 2020, respectively. Unearned revenues consist of payments received from customers related to unsatisfied performance obligations at the end of the period, and included in advance from customers in the Company's consolidated balance sheets with the balance of $182,416, $61,168 and $409,519 as of June 30, 2022, December 31, 2021 and 2020, respectively. All unsatisfied performance obligations will be performed within the next twelve months and no significant financing component is involved. There is no significant financing component in the Company's revenue arrangement because the Company's expected length of time between the payment and when the Company transfers the promised services is less than 12 months. For the portion of security deposit with more than 12 months is measured at present value at the reporting date by its primary borrowing rate. The impact of discounted interest expenses is not material for the six months ended June 30, 2022 and the years ended December 31, 2021 and 2020.

#### Recently issued accounting pronouncements
A list of recent relevant accounting pronouncements is included in Note 2 "Summary of Principal Accounting Policies" of our Consolidated Financial Statements.

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#### BUSINESS

#### Overview
We are a holding company incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct our operations through our subsidiaries established in the People's Republic of China, or "PRC" or "China". Our PRC subsidiary, HUHU China was incorporated in Wuxi City, Jiangsu Province, PRC on August 20, 2015 under the laws of the PRC.

We, through our subsidiaries, specialize in providing factory facility management and monitoring systems, including high-purity gas, chemicals and liquid system ("HPS") and factory management and control systems ("FMCS") for our industrial clients, who are mainly semi-conductor manufacturers and electronics manufacturers in China. We believe our products and services are widely used by semi-conductor manufacturers, LED and micro-electronics factories, as well as some pharmaceutical, food and beverage manufacturers.

Within the HPS, we provide two types of solutions: (1) High-purity gas conveyor system. The high-purity gas conveyor consists of a specialized gas cabinet, the Valve Manifold Box ("VMB"), the gas monitoring software and gas valve parts. This system is connected to our clients' own factory equipment, which will receive gas through the system we install. The gas conveyor ensures that the high-purity gas will not be contaminated by being exposed to air, liquid or small particles during the delivery. (2) High-purity chemicals conveyor system. The high-purity chemicals conveyor system conveys multiple chemicals used in the cleaning, corrosion and grinding process. This system consolidates multiple sub-systems including high-purity chemical pipes, valve, chemical sensor, and the chemical monitoring software. With the high-purity chemical conveyor system, we deliver chemicals from the storage container to the client's manufacture equipment through the distribution valve. Both high-purity gas conveyor system and high-purity chemicals conveyor system are capable of delivering special high purity gas and chemicals in a highly controlled environment that ensures the gas and chemicals meet the purity requirement of our clients' production process, as well as monitors potential safety issues in the production.

Our FMCS solution provides instant and effective monitoring over our clients' manufacturing process through the control center located in the clients' factory. The FMCS service monitors the facility production atmosphere, and consolidates sub-systems, including gas monitoring system (GMS), chemical monitoring system (CMS), high and low voltage power distribution, air pressure system, air conditioning system, water system, access control system, elevator system, sewage treatment system, waste gas emission system, pure water system and other systems. Our software is capable of consolidating all the sub-systems by creating a facility-wide software monitoring platform, where one can monitor and control every aspect of the factory condition. Additionally, we also develop individual sub-system for our clients, such as gas monitoring system and chemical monitoring system.

We believe that we have grown to be one of the larger companies in the HPS and FMCS industry in China. Some of our clients are seasoned manufacturers in their industries in China. Our clients include Li Yi System Engineering (Shanghai) Limited, Hefei Lanke Investment Co., Ltd., Shiyuan Technology Engineering Co., Ltd., and AUO Corporation.

We are a nationally recognized brand: we have received ISO9001 standard quality management system certification in June 2021, from Beijing Zhong Jian Xie Certification Centre Co., Ltd., and received both ISO14001 Standard Environmental Management System Certification and ISO45001 Occupational Health and Safety Management System Certification in April 2021, both from TQCS International (Group) Pty, Ltd. We have been recognized as a Technology Driven Medium-Small Enterprise by the Science and Technology Bureau in Jiangsu Province in April 2020. We have been rewarded as First-class Qualification for Professional Contracting of Construction Mechanical and Electrical Installation Engineering by Jiangsu Provincial Department of Housing and Construction in September 2021.

We obtain raw materials mainly from suppliers in the Mainland China. Our most common raw materials include programmable logic controllers ("PLC") modules, network switches, power modules, signal lines, control lines, cables, bridges, and heating materials. For the year ended December 31, 2021, no supplier accounted for more than 10% of our total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% of our total purchases. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of our total accounts payable, respectively. For the year ended December 31, 2021, no supplier accounted for more than 10% of total purchases. As of December 31, 2021, two suppliers accounted for approximately 21.2%

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and 21.1% of our total accounts payable, respectively. For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. As of June 30, 2022, four suppliers accounted for approximately 20.6%, 19.5%, 11.2% and 10.9% of total accounts payable, respectively.

#### Corporate History and Structure
HUHUTECH is a holding company with no operations of its own. We conduct our operations in China primarily through our subsidiaries in the PRC. The Ordinary Shares offered in this prospectus are those of HUHUTECH.

The following diagram shows our corporate structure as of the date of this prospectus, including our main subsidiaries and consolidated affiliated entities:

![](tflowchart_001.jpg)

HUHUTECH International Group Inc., a Cayman Islands company limited by shares, was incorporated on July 8, 2021. It is a holding company and is not actively engaged in any business as of the date of this prospectus. Under the post-offering memorandum and articles of association that we expect to adopt and to become effective immediately prior to this offering, or the amended and restated memorandum of association, HUHUTECH is authorized to issue 5,000,000,000 Ordinary Shares, par value $0.00001 per ordinary share. There are currently 5,000,000 issued and outstanding Ordinary Shares of HUHUTECH. HUHUTECH's registered office is at Harneys Fiduciary and its registered office is at 4<sup>th</sup> Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman, KY1-1002, Cayman Islands.

HUHU HK was incorporated on July 28, 2021 under the laws of Hong Kong. HUHU HK is a Hong Kong limited company and a wholly owned subsidiary of HUHUTECH. HUHU HK is a holding company and does not have any operations.

HUHU Japan was incorporated on April 25, 2022 under the laws of Japan as a limited company and a wholly owned subsidiary of HUHUTECH. It will conduct the same type of business in Japan as HUHU China does in China in the near future.

Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd. ("WFOE") was incorporated on December 10, 2021 under the laws of the People's Republic of China. WFOE is a limited liability company, and a wholly-owned subsidiary of HUHU HK. WFOE is a holding company and does not have any operations.

Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") was incorporated on August 20, 2015 under the laws of the People's Republic of China. HUHU China is a limited liability company.

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#### Our Solutions
We, through HUHU China, design and provide customized high-purity gas and chemical production system and equipment. Our products mainly include HPS and FMCS. Our products are customized according to the needs of our clients.

*High-purity Process System*

The high-purity process system revolves around applying effective control of impurities in the production process. It is mainly used in the core processes of integrated circuit manufacturing in the pan-semiconductor industry, including the processes of doping, photolithography, etching and CVD film formation processes. The system consists of high-purity process system equipment, high-purity process system piping, valve boxes, valve components and monitoring systems. We offer the overall solution design, installation and value-added services such as ancillary engineering, testing, plant hosting, calibration and maintenance. The technology used in this industry involves a variety of basic sciences such as physics, semiconductor physics, physical chemistry and electrochemistry and various engineering disciplines such as chemical, mechanical, materials and surface treatment. The new production lines of domestic fabrication plants ("fabs") will bring business opportunities for us for the following reason: our high-purity process system covers 16-65nm equipment, and our high-purity process system possesses the essential technology to support equipment that is used to produce 5nm sized wafers; we believe such capacity gives us a comparative advantage in the industry, due to the technical difficulty in supporting equipment producing wafers of that size; such comparative advantage will help us gain more market shares in the industry, which will bring us business opportunities and potential customers.

We provide high-purity process systems which we design and install for the clients, utilizing the equipment we procure from our suppliers, which is special equipment used in high-purity process systems and transport distribution pipelines. Within high purity process systems, there are two main types: high purity gas delivery systems and high purity chemical delivery systems.

<u><u>High-purity</u> <u>Gas Conveyor System</u></u>

The high purity gas conveyor system consists of components including special gas cabinets, valve manifold box, gas monitoring software systems (safety and security systems), gas pipes and valve fittings etc. The front end of the system is connected to the high-purity gas plant and the rear end of the system is connected to the client's own production equipment. This system currently generates most of the Company's revenue.

<u><u>High-purity</u> <u>Chemical Conveyor System</u></u>

The high- purity chemical delivery system is used during the manufacturing process in the pan-semiconductor industry. It supplies a wide range of chemicals for cleaning, etching, grinding and other industrial processes at production facilities in the pan-semiconductor industry. The chemical conveyor system delivers chemicals from tanks and tankers to the various machine demand points via VMB distribution valves. In addition to the associated piping, equipment and valves, a reliable chemical software monitoring system is also required for the system to work properly.

We also offer our customers value-added services related to the conveyor systems, such as ancillary engineering, testing, plant hosting, calibration and maintenance, if applicable.

*Factory Management and Control System (FMCS)*

Our FMCS provides instant and effective monitoring of our clients' manufacturing process through the control center of the clients' factories. We offer a consolidated factory monitoring system that combines multiple factory monitoring systems on one platform and individual factory monitoring systems that specialize in certain aspects of factory environment, including gas monitoring system and chemical monitoring system. All our systems are equipped with a control room where multiple monitoring screens show live status of the facility condition.

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<u><u>Consolidated FMCS</u></u>

Consolidated FMCS integrates the monitoring information of the various systems of the plant facilities into the central monitoring server, using Ethernet, controllers and communication equipment to form a factory-wide monitoring web, so as to interoperate the information of the whole factory, improve the overall management performance of the factory, simplify the operation and maintenance process, and reduce the management costs. This system integrates the entire factory sub-systems. Through integration, it manages the operational status of each sub-system, serving as the monitoring and management center and coordinating and managing the operation of the entire facility.

We prioritize the software development of the FMCS, among other aspects of the FMCS solution. The system monitors our clients' entire plant, including the plant's gas monitoring, process cooling water monitoring, water supply and drainage monitoring, pure water station monitoring, waste water treatment monitoring, plant environment monitoring, air conditioning monitoring, hot and cold source monitoring, ventilation and exhaust system monitoring, compressed air/vacuum and bulk gas system monitoring, variable power distribution system monitoring, and comprehensive automation monitoring.

<u><u>Gas Monitoring System (GMS)</u></u>

We also design and install individual gas monitoring systems. As hazardous gas is routinely used in the manufacturing process in the semi-conductor facilities, the monitoring system of poisonous gas plays a crucial role in the facility. The design of our gas monitoring system takes into account the types of particular gas and the pipeline used to distribute the particular gas, as well as the arrangement of the processing machines. The monitoring system collects data, transmits signals through the gas monitoring equipment and turns off the gas valve timely when warning signs appear. The GMS system has great stability, and is supported by a network of multiple internet devices that work independently without being interfered by any breakdown that could occur to one of the devices. The system is also equipped with backup monitors in the monitoring room in case any individual monitor stops working. The above designs ensures that our monitoring system provides around-the-clock control of the gas transportation process and sends a signal that can turn off the gas valve timely. The picture below illustrates our GMS design:

![](timage_002.jpg)

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The GMS is connected to the alarm system and is capable of detecting any leakage of hazardous gas and sending timely signals to people in the facilities. The design is fairly flexible and easy to adapt and improve through our software control. It works with any number of equipment without the need of being adapted or rewritten.

<u><u>Chemical Monitoring System (CMS)</u></u>

In the factories in the pan-semiconductor industry, various chemical ingredients are used for cleaning, etching, grinding and other processes, and are distributed through chemical containers and distribution valves. The CMS monitors the safety of the distribution process. The display unit in the control room shows the facility status, including the valve status, pressure number, error signs, electricity input and output, and then sends warnings to the technicians onsite who can timely check the equipment status.

*Production Procedure*

For a typical production project, we obtain clients' needs and formulate an initial proposal of our design, which we will submit for bidding to the client. The client will assess our qualifications before admitting us into the bidding process. If we win the bid, we enter into an agreement with the clients. Our team will then start production. We have adopted an integrated business model to meet our clients' needs in the production stage: our engineering team sets up the schedule and production steps; the quality control team confirms the qualification of equipment, material sample quality and staff qualification. We charge our clients based on the quantity of equipment that is connected to our system. 10% – 20% of payment will be made upon entry of the agreement, with the remainder of the payment made throughout the production stage. Typically, 95% to 97% of the total purchase price will have been paid upon project delivery. The remaining payment will be made one to two years after the delivery, when the customer is satisfied with our production.

The following chart illustrates our production process:

![](tflowchart_002.jpg)

#### Our Industry
High purity process system refers to a series of process equipment and related services, including the process system of high purity gases, chemicals and liquids.

The development of modern manufacturing industries such as pan-semiconductor (integrated circuit, flat panel display, photovoltaic, and LED, for example), optical fiber, biomedicine and food and beverage has added complexities in the integrated circuit design, chip manufacturing, packaging and testing along the industry chain.

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Such development calls for the specialized division of labor. The high-purity process system is one specialized division in the industry.

The industry of high-purity systems is fairly fragmented, especially among the small to medium sized companies, which compete in a low-concentration market. Meanwhile, the top tier market is divided by a few large companies that provide system installation, equipment production and accessory production to their clients. In 2022, the estimated consumption of high-purity systems equipment that is used in semi-conductor field is estimated to be between USD 133.28 billion and 152.32 billion. *Source: page 6, Global and China High Purity System Solution Market Report, Beijing Zhongdao Taihe Information Consulting Company*.

*Expanding Capacity of Semi-conductor Production*

<u><u>Expanding Wafer Production</u></u>

More than 70% of the Company's business focuses on the semiconductor field. For instance, gas supplying method is essential to wafer production in the semiconductor industry, and serves an important role in single crystal wafer manufacturing, photolithography, etching and deposition. In the above manufacturing process, multiple high-purity chemicals are used. In the integrated circuit field, high-purity process systems mainly include high-purity special gas systems, bulk gas systems, high-purity chemical systems, grinding liquid supply and recovery systems, and precursor process media systems. Through the high purity system, supporting equipment connects to the process chamber of oxidation/diffusion, etching, ion implantation, deposition, grinding, cleaning and other processes as a working system.

On a global scale, there had been 19 newly launched wafer production factories by the end of 2021, and an additional 10 wafer production factories in 2022. In the next few years, the equipment-related expenditure for these new wafer production facilities is expected to be over $140 billion. It is estimated that by 2026, more than 200 wafer production factories would operate production lines for 12-inch wafers. *Source: page 9, Global and China High Purity System Solution Market Report, Beijing Zhongdaotaihe*.

The following chart illustrates the past and future of the semiconductor production in China and globally:

![](tbarchart_001.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The pillars show the production volume of semiconductor in China (unit: $0.1 billion); the red dots track the growth rate of the production.<br>*Source: page 9, Global and China High Purity System Solution Market Report, Beijing Zhongdaotaihe.*

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![](tbarchart_002.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The pillars show the production volume of semiconductor in the world (unit: $0.1 billion); the red dots track the growth rate of the production.<br>*Source: page 10, Global and China High Purity System Solution Market Report, Beijing Zhongdaotaihe.*

<u><u>Expanding Photovoltaic Production</u></u>

The global photovoltaic power generation industry increased from 1% of the total power generation from 2013 to 3% in 2019. In China, the photovoltaic power machine installation in 2020 has grown more than 20 times since 2010. The following chart is a prediction of the development of photovoltaic machine installation in the next decade:

![](tbarchart_003.jpg)

The pillars show the projected photovoltaic installed capacity in China (unit GW), and the red dots track the growth rate.<br>*Source: page 19, Global and China High Purity System Solution Market Report, Beijing Zhongdaotaihe.*

#### Our Suppliers
For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. For the year ended December 31, 2021, no supplier accounted for more than 10% of our total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% and of total purchases, respectively. As of June 30, 2022, four suppliers accounted for approximately 20.6%, 19.5%, 11.2% and 10.9% of total accounts payable, respectively. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of total accounts payable, respectively

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#### Our Customers and Sales
We service major players in the pan-semiconductor and pharmaceutical industries by supplying reliable high-purity gas and chemical systems and equipment and FMCS. We are a business partner and supplier of many renowned companies in Asia, including Shiyuan Technology Engineering Co., Ltd., Suzhou Ruize System Engineering Co., Ltd., Hesheng Enterprise Co., Ltd., China Electronic System Engineering Fourth Construction Co., Ltd., Li Yi System Engineering (Shanghai) Co., Ltd.

For the six months ended June 30, 2022, three customers accounted for 30.4%, 13.7% and 12.5% of total revenues, respectively. For the year ended December 31, 2021, three customers accounted for 28.6%, 13.3% and,10.6% of total revenues. For the year ended December 31, 2020, two customers accounted for 34.6% and 30.6% of total revenues. As of June 30, 2022, five customers accounted for 17.6%,17.2%,12.8%, 11.6% and 11.2% of total accounts receivable, respectively. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable. As of December 31, 2020, three customers accounted for 33.1%, 28.1% and 21.1% of total accounts receivable.

#### Our Growth Strategy
Our growth strategies include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Client Development and Management*** — Our team consists of members with years of experience in the industry. We have built an excellent relationship with our suppliers and customers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Research & Development*** — We will keep investing substantially in research and development, including research and development of semiconductor process line cleaning control systems, semiconductor ultrapure water system control software, semiconductor process gas detection systems, semiconductor process pipeline temperature automatic control system, FMCS related technology and new equipment. We will keep improving our existing technology and explore the development of FMCS and related new equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Expand Product and Service Range*** — We aim to expand our product range to areas including water supply systems, electricity supply systems, air conditioning and ventilation systems. In the services section, we plan to offer annual maintenance and servicing program, the software maintenance and valve and PLC module replacement for the FMCS product. We believe such plans will improve our profitability.

#### Competitive Advantages
We are committed to providing our customers with high quality service. We believe we have several competitive advantages that will enable us to maintain and further improve our market position in the industry. Our competitive advantages include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Technological Capacity.*** We own software copyright over various programs in fields including facility gas supply, chemical and water processing. Our products, such as the FMCS software, effectively increase operation efficiency by using standardized module software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ***Experienced and Diverse Management Team.*** Our management team members have more than ten years of experience in their respective fields. Our founder Yujun Xiao is an experienced entrepreneur with extensive experience in business management and operations. Since the founding of the Company, we have established a reliable, professional team with many management and strategy talents. Mr. Xiao and members of this team entered the semiconductor industry relatively early, and have experienced the early development stage of the monitoring service industry for semiconductor businesses in China. He built this team from years of experience as an industry veteran.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***• Software Solution Modularity.*** The PLC module in the system adopts mature algorithm. After the one-time arrangement is completed, the subsequent increase of detector gas cabinet, valve manifold box equipment does not require redownloading of the PLC program. This reduces the errors caused by frequent updates of the program (such as mistakenly shutting down the gas delivery equipment) that could cause customer downtime and lead to significant economic losses. Utilizing software simulation, we test and improve our software without interfering with the operation of the equipment. Our software solution is user-friendly and our clients can add monitoring applications from their end.

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#### Sales and Marketing
We believe that our solutions have a strong competitive edge in China's domestic market. Our CEO and CTO play essential roles in bringing in new clients, due to their multiple years of experience in the industry. Additionally, we have established a good reputation among our clients through our consistent high-quality products, which ensures we have plenty of long-term clients that we maintain carefully on a periodical basis. Our sales and marketing department work diligently in maintaining existing client relationships by visiting clients regularly. Our sales personnel also attend industry events and exhibitions to expand our connections and promote our products. Due to our renowned reputation in China, we also receive consultation requests and offers from prospective clients, who discover our product and service by word of mouth and industry exhibitions such as SEMII CHINA and China (Shanghai) International Semiconductor Exhibition.

#### Research and Development
Our research and development efforts are focused on improving and enhancing our existing products as well as developing new features of such products.

R&D expenses primarily consist of compensation and benefits expenses relating to our R&D personnel as well as office overhead and other expenses relating to our R&D activities. Our R&D expenses increased from approximately $0.3 million for the six months ended June 30, 2021 to approximately $0.5 million for the six months ended June 30, 2022. Our R&D expenses increased from approximately $0.2 million in fiscal 2020 to $0.7 million in fiscal 2021.

#### Seasonality
Historically, our operating results and operating cash flows have not been subject to seasonal variations.

#### Intellectual Property
We rely on trademarks, patent and know-how, as well as contractual restrictions on information disclosure to protect our intellectual property rights. We have signed relevant confidentiality agreements or clauses with our executives, certain customers and suppliers, and rely on such confidentiality agreements or clauses and other protections of our technical knowledge to maintain our technological advantages in products and designs.

Protecting our intellectual property is a strategic focus of our business. We do not rely on intellectual property rights authorized by third parties for our business operation.

As of the date of this prospectus, HUHU China has 6 registered trademarks, 1 registered domain name, 21 effective patents and 23 registered copyrights, all in China.

#### Trademarks
Through HUHU China, we have the following registered trademarks:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***Trademark Number*** | ***File Date*** | ***Trademark Name*** | ***Status*** | ***Expiration Date*** | ***Owner*** |
| 47408547 | 2021/03/07  | ![](thuhugrey_logo.jpg) | Granted  | 2031.03.06<br> China | HUHU China  |
| 47406526 | 2021/05/14  | ![](timage_003.jpg) | Granted | 2031.05.13<br> China | HUHU China  |
| 30600821 | 2019/04/28  | ![](tchine_001.jpg) | Granted | 2029.04.27 <br> China | HUHU China  |
| 30582408 | 2019/04/28  | ![](tchine_002.jpg) | Granted  | 2029.04.27<br> China | HUHU China  |
| 30582406 | 2019/04/28  | ![](tchine_003.jpg) | Granted  | 2029.04.27<br> China | HUHU China  |
| 30542505 | 2019/02/14 | ![](tchine_004.jpg) | Granted | 2029.02.13<br> China | HUHU China |

---

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#### Patents
Through HUHU China, we currently have 21 Chinese patents, as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  **Patent Number** | **File Date** | **Issue Date** | **Expiration Date** | **Title** | **Status** |
|  ZL202020062419.0 | 2020.01.13 | 2020.12.25 | 2030.01.12 | A kind of semiconductor process line cleaning device pipeline structure | Effective |
|  ZL202020063477.5 | 2020.01.13 | 2020.12.25 | 2030.01.12 | A kind of mobile semiconductor process pipeline device with liquid holding structure | Effective |
|  ZL202020063452.5 | 2020.01.13 | 2020.12.25 | 2030.01.12 | A kind of semiconductor process pipeline cleaning device | Effective |
|  ZL201921409472.7 | 2019.08.28 | 2020.07.14 | 2029.08.27 | A kind of support seat for electromechanical equipment installation | Effective |
|  ZL201921409193.0 | 2019.08.28 | 2020.07.14 | 2029.08.27 | A kind of special lifting equipment for electromechanical installation | Effective |
|  ZL201921431038.9 | 2019.08.28 | 2020.07.14 | 2029.08.27 | A new type of positioning clamps for the modular construction of electromechanical installation | Effective |
|  ZL201921409218.7 | 2019.08.28 | 2020.07.14 | 2029.08.27 | Anti-dislodging Zhicheng electromechanical connection device | Effective |
|  ZL201921409423.3 | 2019.08.28 | 2020.07.14 | 2029.08.27 | A kind of tensile installation base for electromechanical equipment | Effective |
|  ZL201921409194.5 | 2019.08.28 | 2020.07.10 | 2029.08.27 | Electrical piping slotting device for building electromechanical installation | Effective |
|  ZL201921409483.5 | 2019.08.28 | 2020.07.10 | 2029.08.27 | A kind of safety protection device for electromechanical installation | Effective |
|  ZL201921409482.0 | 2019.08.28 | 2020.05.19 | 2029.08.27 | A kind of height adjustable electromechanical equipment installation seat | Effective |
|  ZL201921409421.4 | 2019.08.28 | 2020.05.19 | 2029.08.27 | A kind of positioning instrument for electromechanical equipment installation | Effective |
|  ZL201921409427.1 | 2019.08.28 | 2020.05.19 | 2029.08.27 | A kind of tool holder for electromechanical equipment installation | Effective |
|  ZL201921409185.6 | 2019.08.28 | 2020.05.19 | 2029.08.27 | Auxiliary lifting tools for electrical equipment installation | Effective |
|  ZL201921409217.2 | 2019.08.28 | 2020.05.19 | 2029.08.27 | A kind of slide base for electromechanical installation | Effective |
|  ZL202120099080.6 | 2021.01.14 | 2021.09.10 | 2031.01.13 | A kind of automatic control module for pipeline insulation and heating | Effective |
|  ZL202120097501.1 | 2021.01.14 | 2021.09.10 | 2031.01.13 | An automatic control system for pipe insulation | Effective |
|  ZL202120097085.5 | 2021.01.14 | 2021.09.10 | 2031.01.13 | A kind of positioning sensing module for engineering installation | Effective |
|  ZL202120096838.0 | 2021.01.14 | 2021.10.01 | 2031.01.13 | A gas mixing device for semiconductor process | Effective |
|  ZL202120097382.X | 2021.01.14 | 2021.10.22 | 2031.01.13 | An electrochemical sensor for semiconductor gas detection | Effective |
|  ZL202010032952.7 | 2020.01.13 | 2022.2.22 | 2042.02.21 | A control method of cleaning equipment for semiconductor manufacturing piping | Effective |

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#### Copyrights
The following table sets forth a brief description of the Company's software copyrights:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  ***Copyright Number*** | ***Issue Date*** | ***Category*** | ***Copyright Name*** | ***Owner*** |
|  2020SR1142390 | 2020.09.22 | Software | Huhu Storage Control System<br> China | HUHU China |
|  2020SR1137453 | 2020.09.22 | Software | Huhu Storage Management System<br> China | HUHU China |
|  2020SR1138540 | 2020.09.22 | Software | Huhu Semiconductor High-purity Water System Control<br> China | HUHU China |
|  2020SR1133986 | 2020.09.21 | Software | Huhu High-filter System Control<br> China | HUHU China |
|  2020SR1132111 | 2020.09.21 | Software | Huhu Facility Monitoring System<br> China | HUHU China |
|  2020SR1132055 | 2020.09.21 | Software | Huhu Facility Water Process Software<br> China | HUHU China |
|  2020SR1128513 | 2020.09.21 | Software | Huhu Electric System Monitoring Software<br> China | HUHU China |
|  2020SR0192783 | 2020.02.28 | Software | Automatic Pipe Cleaning Equipment Control<br> China | HUHU China |
|  2019SR0983981 | 2019.09.23 | Software | Electrical Equipment Installation Automatic Control and Pipeline Design Management<br> China | HUHU China |
|  2019SR0983207 | 2019.09.23 | Software | Electrical Equipment Engineering Guideline Management System<br> China | HUHU China |
|  2019SR0983975 | 2019.09.23 | Software | Electrical Equipment Installation Engineering Pricing Management System<br> China | HUHU China |
|  2019SR0983888 | 2019.09.23 | Software | Electrical Equipment Engineering Safety Coordination Management System<br> China | HUHU China |
|  2019SR0983202 | 2019.09.23 | Software | Electrical Equipment Installation Engineering Management System<br> China | HUHU China |
|  2018SR049719 | 2018.01.22 | Software | Gas Monitoring Software<br> China | HUHU China |
|  2021SR0146014 | 2021.01.27 | Software | Gas Monitoring System<br> China | HUHU China |
|  2021SR1802422 | 2021.11.19 | Software | Plant Service Gas Detector Data Acquisition System V1.0<br> China | HUHU China |
|  2021SR2002783 | 2021.12.06 | Software | Plant Gas Management System Software V1.0<br> China | HUHU China |
|  2022SR0476107 | 2022.04.15 | Software | Plant UPW system monitoring software V1.0<br> China | HUHU China |
|  2022SR0476108 | 2022.04.15 | Software | Plant VOC system monitoring software V1.0<br> China | HUHU China |
|  2021SR1395107 | 2021.09.17 | Software | Heating system monitoring software V1.0<br> China | HUHU China |
|  2021SR1411095 | 2021.09.22 | Software | Air conditioning room system monitoring software V1.0<br> China | HUHU China |
|  2022SR0999333 | 2022.08.03 | Software | HUHU Intelligent Monitoring System Heating V2.0<br> China | HUHU China |
|  2022SR0999334 | 2022.08.03 | Software | Factory Management Control System V3.0<br> China | HUHU China |

---

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#### Domain

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  ***Number*** | ***Issue Date*** | ***Registration Agency*** | ***Domain Name*** | ***Owner*** | ***Expiration Date*** |
|  1 | 2016/09/06 | HUHU China | HUHUTECH.com.cn | HUHU China | 2026/09/06 |

---

#### Our Properties and Facilities
Our principal executive offices are located in Wuxi City, Jiangsu Province, China. Our property and equipment include our office premises, office equipment, and transportation vehicles. As of June 30, 2022 and December 31, 2021, the total net worth of our equipment and facilities is approximately $0.49 million and $0.55 million, respectively.

Information on our leased properties as of June 30, 2022 is summarized below:

---

| | | |
|:---|:---|:---|
|  **Location** | **Space <br>(in square foot)** | **Owned or <br>Lease <br>Term, as <br>applicable** |
|  A3-1208 Tianan Zhihui City, Xinwu District, Wuxi City, Jiangsu | 634.4 | Owned |
|  No. 13 Jinding Road, Qiaolin Jiedao, Pukou District, Nanjing, Jiangsu | 6000 | 10.01.2021 – 9.30.2025 |
|  Room 307 Building 5, Qiaolin, Pukou District, Nanjing, Jiangsu | 850 | 12.15.2021 – 12.14.2022 |
|  **Total** | 7484.4 |  |

---

#### Our Employees
As of June 30, 2022, December 31, 2021 and 2020, we had a total of 64, 64 and 33 full-time employees in China, respectively. The breakdown of our employees is as the following:

---

| | | | |
|:---|:---|:---|:---|
|  **Department** | **June 30,<br>2022** | **December 31, 2021** | **December 31,<br>2020** |
|  Human Resources & Administration | 9 | 12 | 7 |
|  Finance | 5 | 5 | 2 |
|  Research & Development | 17 | 21 | 13 |
|  Engineering | 29 | 22 | 8 |
|  Sales & Marketing | 1 | 1 | 2 |
|  Product Procurement | 3 | 3 | 1 |
|  Total | 64  | 64 | 33 |

---

Our employees are not represented by a labor organization or covered by a collective bargaining agreement. We have not experienced any work stoppages.

We are required under PRC law to make contributions to employee benefit plans at specified percentages of our after-tax profit. In addition, we are required by PRC law to cover employees in China with various types of social insurance and housing funds. Please refer to the Section entitled "Regulations on Employment and Social Welfare" for more details of the relevant PRC law.

#### Legal Proceedings
From time to time, we are subject to legal proceedings, investigations and claims incidental to the conduct of our business. We record a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of the date of this prospectus, we are not involved in any legal or administrative proceedings that may have a material adverse impact on our business, balance sheets or results of operations and cash flows other than as described herein.

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#### REGULATION
This section sets forth a summary of the most significant rules and regulations that affect our business activities in China.

#### Regulations on Foreign Investment in China
The establishment, operation and management of companies in China are governed by the PRC Company Law, as amended in 2005, 2013 and 2018. However, on December 24, 2021, the Standing Committee of the National People's Congress issued the Company Law of the People's Republic of China (Draft for Comments) (the "Revised Company Law"), which is now open for public comments. The Revised Company Law further stipulates the establishment and withdrawal of the company, the organizational structure and the capital system of the company, and strengthens the responsibilities of shareholders and management personnel and Corporate Social Responsibility. The PRC Company Law applies to both PRC domestic companies and foreign-invested companies. The direct or indirect investment activities of a foreign investor shall be governed by the PRC Foreign Investment Law and its implementation rules. The PRC Foreign Investment Law is promulgated by the National People's Congress on March 15, 2019, and has taken effect since January 1, 2020, which replaced the PRC Sino-Foreign Joint Venture Enterprise Law, the PRC Sino-Foreign Cooperative Enterprise Law and the PRC Wholly Foreign-Owned Enterprise Law. The Foreign Investment Law adopts the administrative system of pre-entry national treatment along with a negative list for foreign investments, establishing the basic framework for the access to, and the promotion, protection and administration of foreign investments in view of investment protection and fair competition.

Pursuant to the Foreign Investment Law, "foreign investments" refers to any direct or indirect investment activities conducted by any foreign individual, enterprise, or organization (collectively referred to as "foreign investors") in the PRC, which includes any of the following circumstances: (i) foreign investors establishing foreign-invested enterprises, or FIEs, in the PRC solely or jointly with other investors; (ii) foreign investors acquiring shares, equity interests, property portions or other similar rights and interests thereof within the PRC; (iii) foreign investors investing in new projects in the PRC solely or jointly with other investors; and (iv) other forms of investments as defined by laws, regulations, or as otherwise stipulated by the State Council. According to the Foreign Investment Law, the State Council shall promulgate or approve a list of special administrative measures for market access of foreign investments, or the Negative List. The Foreign Investment Law grants national treatment to foreign-invested entities, except for those foreign-invested entities that operate in industries deemed to be either "restricted" or "prohibited" in the Negative List. The Foreign Investment Law provides that foreign investors shall not invest in the "prohibited" industries, and shall meet certain requirements as stipulated under the Negative List for investing in "restricted" industries.

In addition, the Foreign Investment Law also provides several protective rules and principles for foreign investors and their investments in the PRC, including, among others, (i) that local governments shall abide by their commitments to the foreign investors; (ii) FIEs are allowed to issue stocks and corporate bonds; except for special circumstances, in which case statutory procedures shall be followed and fair and reasonable compensation shall be made in a timely manner, expropriation or requisition of the investment of foreign investors is prohibited; (iii) mandatory technology transfer by any administrative body is prohibited; and (iv) the capital contributions, profits, capital gains, proceeds out of asset disposal, licensing fees of intellectual property rights, indemnity or compensation legally obtained, or proceeds received upon settlement by foreign investors within the PRC, may be freely remitted inward and outward in RMB or a foreign currency. Also, foreign investors or FIEs shall assume legal liabilities for failing to report investment information in accordance with the requirements. Furthermore, the Foreign Investment Law provides that FIEs established prior to the effectiveness of the Foreign Investment Law may maintain their legal form and structure of corporate governance within five years after January 1, 2020.

On December 26, 2019, the State Council further issued the Implementation Rules of Foreign Investment Law, which came into effect on January 1, 2020, and replaced the Regulations on Implementing the PRC Sino-Foreign Joint Venture Enterprise Law, Provisional Regulations on the Duration of PRC Sino-Foreign Joint Venture Enterprise Law, the Regulations on Implementing the PRC Sino-Foreign Cooperative Enterprise Law, and the Regulations on Implementing the Wholly Foreign-Owned Enterprise Law. The Regulations on Implementing the PRC Foreign Investment Law restates certain principles of the Foreign Investment Law and further provides that, among others, (i) if an FIE established prior to the effective date of the Foreign Investment Law fails to adjust its legal form or governance structure to comply with the provisions of the Companies Law of the PRC or the Partnership Enterprises Law of the PRC, as applicable, and complete amendment registration before January 1,

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2025, the enterprise registration authority will not process other registration matters of the FIE and may public such non-compliance thereafter; and (ii) the provisions regarding equity interest transfer and distribution of profits and remaining assets as stipulated in the contracts among the joint venture parties of an FIE established before the effective date of the Foreign Investment Law may, after adjustment of the legal form and governing structure of such FIE, remain binding upon the parties during the joint venture term of the enterprise.

On June 23, 2020, the National Development and Reform Commission, or the NDRC, and the Ministry of Commerce promulgated the Special Administrative Measures for Access of Foreign Investment (Negative List) (2020 Edition), or the 2020 Negative List, which came into effect on July 23, 2020. In addition, the NDRC and the Ministry of Commerce promulgated the Encouraged Industry Catalogue for Foreign Investment (2020 Edition), or the 2020 Encouraged Industry Catalogue, which was promulgated on December 27, 2020 and came into effect on January 27, 2021. Industries not listed in the 2020 Negative List and 2020 Encouraged Industry Catalogue are generally open for foreign investments unless specifically restricted by other PRC laws. The establishment of wholly foreign-owned enterprises is generally allowed in encouraged and permitted industries. Some restricted industries are limited to equity or contractual joint ventures, while in some cases Chinese partners are required to hold the majority equity interests in such joint ventures. In addition, foreign investment in projects in a restricted category is subject to government approvals. Foreign investors are not allowed to invest in industries in the prohibited category.

On December 27, 2021, the National Development and Reform Commission, or the NDRC, and the Ministry of Commerce promulgated the Special Administrative Measures for Access of Foreign Investment (Negative List) (2021 Edition), or the 2021 Negative List, which came into effect on January 1, 2022. On March 12, 2022, the 2022 Negative List was released and took effect on the same day. Industries not listed in the 2022 Negative List are generally open for foreign investments unless specifically restricted by other PRC laws. The establishment of wholly foreign-owned enterprises is generally allowed in encouraged and permitted industries. Some restricted industries are limited to equity or contractual joint ventures, while in some cases Chinese partners are required to hold the majority equity interests in such joint ventures. In addition, foreign investment in projects in a restricted category is subject to government approvals. Foreign investors are not allowed to invest in industries in the prohibited category. Our PRC Counsel, Jiangsu Junjin Law Firm, has advised us that our business is not in an industry on the 2022 Negative list, and it does not involve or operate in either a prohibited or restricted industry.

As the PRC Foreign Investment Law has taken effect, the Ministry of Commerce and the State Administration for Market Regulation, or the SAMR, jointly approved the Foreign Investment Information Report Measures on December 30, 2019, which has been in effect since January 1, 2020. According to the Foreign Investment Information Report Measures, which repealed the Provisional Administrative Measures on Establishment and Modifications (Filing) for Foreign Invested Enterprises, foreign investors or FIEs shall report their investment-related information to the competent local counterparts of the Ministry of Commerce through Enterprise Registration System and National Enterprise Credit Information Notification System.

Recently, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council jointly issued the Opinions on Severe and Lawful Crackdown on Illegal Securities Activities or the Opinions, which was made available to the public on July 6, 2021. The Opinions emphasized the need to strengthen the administration over illegal securities activities, and the need to strengthen the supervision over overseas listings by Chinese companies. Effective measures, such as promoting the construction of relevant regulatory systems will be taken to deal with the risks and incidents of China-concept overseas listed companies, and cybersecurity and data privacy protection requirements and similar matters. The Opinions and any related implementing rules to be enacted may subject us to compliance requirement in the future.

As of the date of this prospectus, we have not applied for approval from the Ministry of Commerce related to the reorganization that was completed on January 14, 2022. According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC Company Law or foreign investment laws.

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#### Regulations on Intellectual Property Rights

#### Patent Law
Pursuant to the Patent Law of the PRC, or the Patent Law, promulgated by the SCNPC on March 12, 1984, as latest amended on October 17, 2020, and became effective on June 1, 2021 and the Implementation Rules of the Patent Law of the PRC, promulgated by the State Council on June 15, 2001 and latest amended on January 9, 2010 and became effective on February 1, 2010, there are three types of patents in the PRC: invention patent, utility model patent and design patent. The protection period is 20 years for invention patent and 10 years for utility model patent and design patent, commencing from their respective application dates. Any individual or entity that utilizes a patent or conducts any other activity in infringement of a patent without prior authorization of the patentee shall pay compensation to the patentee 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. In the event that a patent is owned by two or more co-owners without an agreement regarding the distribution of revenue generated from the exploitation of any co-owner of the patent, such revenue shall be distributed among all the co-owners.

Existing patents can become narrowed, invalid or unenforceable due to a variety of grounds, including lack of novelty, creativity, and deficiencies in patent application. In China, a patent must have novelty, creativity and practical applicability. Under the Patent Law, novelty means that before a patent application is filed, no identical invention or utility model has been publicly disclosed in any publication in China or overseas or has been publicly used or made known to the public by any other means, whether in or outside of China, nor has any other person filed with the patent authority an application that describes an identical invention or utility model and is recorded in patent application documents or patent documents published after the filing date. Creativity means that, compared with existing technology, an invention has prominent substantial features and represents notable progress, and a utility model has substantial features and represents any progress. Practical applicability means an invention or utility model can be manufactured or used and may produce positive results. Patents in China are filed with the State Intellectual Property Office, or SIPO. Normally, the SIPO publishes an application for an invention patent within 18 months after the filing date, which may be shortened at the request of applicant. The applicant must apply to the SIPO for a substantive examination within 3 years from the date of application.

#### Regulations on Copyright
The *Copyright Law of the PRC*, or the *Copyright Law*, which took effect on June 1, 1991 and was amended in 2001, 2010 and 2020 (the current effective revision became effective on April 1, 2010 while the latest revision has not yet come into effect until June 1, 2021), provides that Chinese citizens, legal persons, or other organizations shall, whether published or not, own copyright in their copyrightable works, which include, among others, works of literature, art, natural science, social science, engineering technology and computer software. Copyright owners enjoy certain legal rights, including right of publication, right of authorship and right of reproduction. The amended Copyright Law extends copyright protection to internet activities, products disseminated over the Internet and software products. In addition, PRC laws and regulations provide for a voluntary registration system administered by the Copyright Protection Center of China, or the CPCC. According to the *Copyright Law*, an infringer of the copyrights shall be subject to various civil liabilities, which include ceasing infringement activities, apologizing to the copyright owners and compensating the loss of copyright owner. Infringers of copyright may also subject to fines and/or administrative or criminal liabilities in severe situations.

The NCA administers software copyright registration and the CPCC, is designated as the software registration authority. The CPCC shall grant registration certificates to the Computer Software Copyrights applicants which meet the requirements of both the *Software Copyright Measures* and the *Computer Software Protection Regulations* (Revised in 2013).

The *Provisions of the Supreme People's Court on Certain Issues Related to the Application of Law in the Trial of Civil Cases Involving Disputes on Infringement of the Information Network Dissemination Rights* specifies that disseminating works, performances or audio-video products by the internet users or the internet service providers via the internet without the permission of the copyright owners shall be deemed to have infringed the right of dissemination of the copyright owner.

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The *Measures for Administrative Protection of Copyright Related to Internet*, which was jointly promulgated by the NCA and the MII on April 29, 2005 and became effective on May 30, 2005, provides that upon receipt of an infringement notice from a legitimate copyright holder, an ICP operator must take remedial actions immediately by removing or disabling access to the infringing content. If an ICP operator knowingly transmits infringing content or fails to take remedial actions after receipt of a notice of infringement that harms public interest, the ICP operator could be subject to administrative penalties, including an order to cease infringing activities, confiscation by the authorities of all income derived from the infringement activities, or payment of fines.

On May 18, 2006, the State Council promulgated the *Regulations on the Protection of the Right to Network Dissemination of Information* (as amended in 2013). Under these regulations, an owner of the network dissemination rights with respect to written works, performance or audio or video recordings who believes that information storage, search or link services provided by an Internet service provider infringe his or her rights may require that the Internet service provider delete, or disconnect the links to, such works or recordings.

#### Trademark Law
Trademarks are protected under the PRC Trademark Law, which was adopted on August 23, 1982 and subsequently amended in 1993, 2001, 2013, and 2019, and the Implementation Regulations of the PRC Trademark Law adopted by the State Council in 2002 and most recently amended in 2014. The Trademark Office under the State Administration for Market Regulation (formally known as the State Administration for Industry and Commerce) handles trademark registrations. The Trademark Office grants a ten-year term to registered trademarks and the term may be renewed for another ten-year period upon request by the trademark owner. A trademark registrant may license its registered trademarks to another party by entering into trademark license agreements, which must be filed with the Trademark Office for the record. As with patents, the Trademark Law has adopted a first-to-file principle with respect to trademark registration. If a trademark applied for is identical or similar to another trademark which has already been registered or subject to a preliminary examination and approval for use on the same or similar kinds of products or services, such a trademark application may be rejected. Any person applying for the registration of a trademark may not injure existing trademark rights first obtained by others, nor may any person register in advance a trademark that has already been used by another party and has already gained a "sufficient degree of reputation" through such other party's use.

#### Regulations on Domain Names
The MIIT promulgated the Measures on Administration of Internet Domain Names on August 24, 2017, which became effective on November 1, 2017 and replaced the Administrative Measures on China Internet Domain Names promulgated by the MIIT on November 5, 2004. Pursuant to these measures, the MIIT oversees the administration of PRC internet domain names. The domain name registration follows a first-to-file principle. Applicants for registration of domain names must provide the true, accurate, and complete information of their identities to domain name registration service institutions. The applicants will become the holder of such domain names upon the completion of the registration procedure.

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, HUHU China has 6 registered trademarks, 1 registered domain name, 21 effective patents and 23 registered copyrights, all in China.

#### Regulations on Foreign Exchange
*General Administration of Foreign Exchange*

According to the Foreign Exchange Control Regulations of the PRC, which were promulgated by the State Council on January 29, 1996, came into effect on April 1, 1996, and were amended on January 14, 1997, and August 1, 2008 (which amendment came into effect on August 5, 2008), payments for transactions that take place within the PRC must be made in Renminbi. PRC companies or individuals may repatriate foreign exchange receipts received overseas or deposit overseas. Renminbi is freely convertible for current account items, including the distribution of dividends, interest payments, trade and service-related foreign exchange transactions, but not for capital account items, such as direct investments, loans, repatriation of investments and investments in securities outside of the PRC, unless prior approval is obtained from SAFE and prior registration with SAFE is made. Foreign exchange proceeds under the current accounts may be either retained or sold to a financial institution engaged in settlement and sale of foreign exchange. For foreign exchange proceeds under the capital accounts, approval from SAFE is generally required for the retention or sale of such proceeds to a financial institution engaged in settlement and sale of foreign exchange.

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*Foreign Investment*

According to Provisions on Foreign Exchange Control on Direct Investments in China by Foreign Investors, which were promulgated on May 10, 2013, by SAFE, upon establishment of a foreign investment enterprise pursuant to the law, registration formalities shall be completed with SAFE. In the event of subsequent changes in the capital of the foreign investment enterprise such as increase in capital, capital reduction, and equity transfer, registration change formalities shall be completed with SAFE.

Pursuant to the Circular of SAFE on Further Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment, or the "SAFE Circular No. 59," promulgated by SAFE on November 19, 2012, and was further amended on May 4, 2015, approval is not required for opening a foreign exchange account and depositing foreign exchange into the account relating to the direct investments. SAFE Circular No. 59 also simplified foreign exchange-related registration required for the foreign investors to acquire the equity interests of Chinese companies and further improve the administration on foreign exchange settlement for foreign investment enterprises.

The Notice of the State Administration of Foreign Exchange on Reforming the Mode of Management of Settlement of Foreign Exchange Capital of Foreign-Funded Enterprises, or the "SAFE Circular No.19," which was promulgated by SAFE on March 30, 2015, and became effective on June 1, 2015, provides that a foreign investment enterprise may, according to its actual business needs, settle with a bank the portion of the foreign exchange capital in its capital account for which the relevant foreign exchange administration has confirmed monetary capital contribution rights and interests (or for which the bank has registered the injection of the monetary capital contribution into the account). Pursuant to the SAFE Circular No.19, for the time being, foreign investment enterprises are allowed to settle 100% of their foreign exchange capitals on a discretionary basis; a foreign-invested enterprise shall truthfully use its capital for its own operational purposes within the scope of business; where an ordinary foreign-invested enterprise makes domestic equity investment with the amount of foreign exchanges settled, the invested enterprise shall first go through domestic re-investment registration and open a corresponding account for foreign exchange settlement pending payment with the foreign exchange administration or the bank at the place where it is registered.

*Overseas Investment and Financing and Round-Trip Investment*

Under SAFE Circular 37 issued by SAFE and effective on July 4, 2014, PRC residents are required to register with the local SAFE branch prior to the establishment or control of an offshore SPV, which is defined as offshore enterprises directly established or indirectly controlled by PRC residents for offshore equity financing of the enterprise assets or interests they hold in the PRC. An amendment to registration or subsequent filing with the local SAFE branch by such PRC resident is also required if there is any change in basic information of the offshore company or any material change with respect to the capital of the offshore company. At the same time, SAFE has issued the Operation Guidance for the Issues Concerning Foreign Exchange Administration over Round-trip Investment regarding the procedures for SAFE registration under SAFE Circular 37, which became effective on July 4, 2014, as an attachment of SAFE Circular 37, and provided operational guidance in detail on how to complete the required registration under SAFE Circular 37. Pursuant to the Circular on Further Simplifying and Improving the Foreign Currency Management Policy on Direct Investment, or the "SAFE Circular No. 13," which was promulgated by SAFE and effective from June 1, 2015, the administrative approvals of foreign exchange registration of direct domestic investment and direct overseas investment are canceled and the procedure of foreign exchange-related registration are simplified. The investors shall register with banks for direct domestic investment and direct overseas investment.

Currently, all of our shareholders have completed Circular 37 Registration and are in compliance. All our significant shareholders, directors and officers have completed Circular 37 Registration. We cannot guarantee that our shareholders will continue to comply with the requirement and timely update their application. However, we do not believe the shareholders' failure to complete registrations will have a substantial impact on our business operations or cross-border investment activities.

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*Dividend Distribution*

Under the Company Law, the Foreign Investment Law, and Implementation Regulations of Foreign Investment Law, wholly foreign-owned enterprises in the PRC may pay dividends only out of their accumulated after-tax profits, if any, determined in accordance with China accounting standards and regulations. According to the Foreign Investment Law and Implementation Regulations of Foreign Investment Law, foreign investors' investment, profits, capital gains, assets disposal income, intellectual property license fees, compensation or indemnification obtained according to law, and income from liquidation, among other things, may be freely remitted in or out of China in RMB or foreign currency. In addition, under the Company Law, wholly foreign-owned enterprises in the PRC are required to allocate at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds until these reserves have reached 50% of the registered capital of the enterprises. These reserves are not distributable as cash dividends. See "Risk Factors — Risks Related to Doing Business in the PRC — Our PRC subsidiary is subject to restrictions on paying dividends or making other payments to us, which may have a material adverse effect on our ability to conduct our business."

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC foreign exchange laws.

#### Offshore Investment
Under the Circular on Relevant Issues Concerning Foreign Exchange Control on Domestic Residents' Offshore Investment and Financing and Roundtrip Investment Through Special Purpose Vehicles, or SAFE Circular 37, effective on July 4, 2014, PRC residents are required to register with the local SAFE branch prior to the establishment or control of an offshore special purpose vehicle, which is defined as an offshore enterprise directly established or indirectly controlled by PRC residents for investment and financing purposes, with the enterprise assets or interests PRC residents hold in China or overseas. The term "control" means to obtain the operation rights, right to proceeds, or decision-making power of a special purpose vehicle through acquisition, trust, holding shares on behalf of others, voting rights, repurchase, convertible bonds, or other means. An amendment to registration or subsequent filing with the local SAFE branch by such PRC residents is also required if there is any change in the basic information of the offshore company or any material change with respect to the capital of the offshore company. At the same time, SAFE has issued the Operation Guidance for the Issues Concerning Foreign Exchange Administration over Round-Trip Investment regarding the procedures for SAFE registration under SAFE Circular 37, which became effective on July 4, 2014, as an attachment of SAFE Circular 37.

Under the relevant rules, failure to comply with the registration procedures set forth in SAFE Circular 37 may result in bans on the foreign exchange activities of the relevant onshore company, including the payment of dividends and other distributions to its offshore parent or affiliates, and may also subject relevant PRC residents to penalties under PRC foreign exchange administration regulations.

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC offshore investment regulations.

#### Regulation Relating to M&A and Overseas Listings
On December 24, 2021, the CSRC issued the Provisions of the State Council on the Administration of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments), or the Draft Overseas Listing Administration Provisions, and the Administrative Measures for the Filing of Overseas Securities Offering and Listing by Domestic Companies (Draft for Comments), or the Draft Overseas Listing Filing Measures, which are open for public comments until January 23, 2022.

On February 17, 2023, with the approval of the State Council, the CSRC released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies, or the Trial Measures, and five supporting guidelines, which will come into effect on March 31, 2023. According to the Trial Measures, (1) domestic

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companies that seek to offer or list securities overseas, both directly and indirectly, should fulfill the filing procedures and report relevant information to the CSRC; (2) 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: (i) 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; (ii) 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 (3) 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 initial public offering and 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 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, among others, clarifies that (1) 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, such as completion of registration in the market of the United States, but have not completed the overseas listing; and (2) 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 on or prior to the effective date of the Trial Measures, may reasonably arrange the timing for submitting their filing applications with the CSRC, and shall complete the filing before the completion of their overseas offering and listing.

#### Regulations on Dividend Distribution
The principal laws and regulations regulating the distribution of dividends by FIEs in China include the PRC Company Law, as amended in 2004, 2005, 2013, and 2018, and the 2019 PRC Foreign Investment Law and its Implementation Rules. Under the current regulatory regime in China, FIEs in China may pay dividends only out of their retained earnings, if any, determined in accordance with PRC accounting standards and regulations. A PRC company is required to set aside as statutory reserve funds at least 10% of its after-tax profit, until the cumulative amount of such reserve funds reaches 50% of its registered capital, unless laws regarding foreign investment provide otherwise. A PRC company cannot distribute any profits until any losses from prior fiscal years have been offset. Profits retained from prior fiscal years may be distributed together with distributable profits from the current fiscal year.

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC regulations on Dividend Distribution.

#### Regulations on Taxation

#### Enterprise Income Tax
On March 16, 2007, the National People's Congress promulgated the PRC Enterprise Income Tax Law, which was amended on February 24, 2017 and December 29, 2018. On December 6, 2007, the State Council enacted the Regulations for the Implementation of the Enterprise Income Tax Law, which became effective on January 1, 2008 and was amended on April 23, 2019. Under the Enterprise Income Tax Law and the relevant implementing regulations, both resident enterprises and non-resident enterprises are subject to tax in China. Resident enterprises are defined as enterprises that are established in China in accordance with PRC laws, or that are established in accordance with the laws of foreign countries but are actually or in effect controlled from within China. Non-resident enterprises are defined as enterprises that are organized under the laws of foreign countries and whose actual management is conducted outside China, but have established institutions or premises in China, or have no such established institutions or premises but have income generated from inside China. Under the Enterprise Income Tax Law and relevant implementing regulations, a uniform corporate income tax rate of 25% is applied.

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However, if non-resident enterprises have not formed permanent establishments or premises in China, or if they have formed permanent establishments or premises in China but there is no actual relationship between the relevant income derived in China and the established institutions or premises set up by them, withholding income tax is set at the rate of 10% with respect to their income sourced from inside the PRC.

#### Value-Added Tax
The PRC Provisional Regulations on Value-Added Tax were promulgated by the State Council on December 13, 1993, became effective on January 1, 1994, and were subsequently amended from time to time. The Detailed Rules for the Implementation of the PRC Provisional Regulations on Value-Added Tax (2011 Revision) were promulgated by the Ministry of Finance on December 25, 1993 and subsequently amended in 2008 and 2011. On November 19, 2017, the State Council promulgated the Decisions on Abolishing the PRC Provisional Regulations on Business Tax and Amending the PRC Provisional Regulations on Value-Added Tax. Pursuant to these regulations, rules and decisions, all enterprises and individuals engaged in sale of goods, provision of processing, repair, and replacement services, sales of services, intangible assets, real property, and the importation of goods within the PRC are value-added tax, or VAT, taxpayers. On March 20, 2019, the Ministry of Finance, the State Administration of Taxation, or SAT, and the General Administration of Customs jointly issued the Announcement on Relevant Policies on Deepening the Reform of Value-Added Tax. Pursuant to this announcement, the generally applicable VAT rates are simplified as 13%, 9%, 6%, and 0%, which became effective on April 1, 2019, and the VAT rate applicable to the small-scale taxpayers is 3%. If a small-scale taxpayer's total monthly sales amount does not exceed RMB100 thousand and its quarterly sales volume does not exceed RMB300 thousand, the VAT will be exempted.

#### Dividend Withholding Tax
The Enterprise Income Tax Law and its implementation rules provide that since January 1, 2008, an income tax rate of 10% will normally apply to dividends declared to non-PRC resident investors that do not have an establishment or place of business in China, or that have such establishment or place of business but the relevant income is not effectively connected with the establishment or place of business, to the extent such dividends are derived from sources within China.

Pursuant to the Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, and other applicable PRC laws, if a Hong Kong resident enterprise is determined by the competent PRC tax authority to have met the relevant conditions and requirements under this arrangement and other applicable laws, the 10% withholding tax on the dividends the Hong Kong resident enterprise receives from a PRC resident enterprise may be reduced to 5%. However, based on the Circular on Certain Issues with Respect to the Enforcement of Dividend Provisions in Tax Treaties issued on February 20, 2009, if the relevant PRC tax authorities determine, in their discretions, that a company benefits from such reduced income tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment. Pursuant to the Circular on Several Questions regarding the "Beneficial Owner" in Tax Treaties, which was issued on February 3, 2018 by SAT and became effective on April 1, 2018, when determining the applicant's status as the "beneficial owner" regarding tax treatment in connection with dividends, interests, or royalties in the tax treaties, several factors, including, without limitation, whether the applicant is obligated to pay more than 50% of his or her income in twelve months to residents in a third country or region, whether the business operated by the applicant constitutes the actual business activities, and whether the counterparty country or region to the tax treaties does not levy any tax or grant any tax exemption on relevant incomes or levy tax at an extremely low rate, will be taken into account, and such factors will be analyzed according to the actual circumstances of the specific cases.

#### Tax on Indirect Transfer
On February 3, 2015, SAT issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7. Pursuant to Bulletin 7, an "indirect transfer" of assets, including equity interests in a PRC resident enterprise, by non-PRC resident enterprises, may be recharacterized

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and treated as a direct transfer of PRC taxable assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax. When determining whether there is a "reasonable commercial purpose" in the transaction arrangement, features to be taken into consideration include, inter alia, whether the main value of the equity interest of the relevant offshore enterprise derives directly or indirectly from PRC taxable assets; whether the assets of the relevant offshore enterprise mainly consists of direct or indirect investment in China or if its income is mainly derived from China; and whether the offshore enterprise and its subsidiaries directly or indirectly holding PRC taxable assets have a real commercial nature which is evidenced by their actual function and risk exposure. Pursuant to Bulletin 7, where the payer fails to withhold any or sufficient tax, the transferor shall declare and pay such tax to the tax authority by itself within the statutory time limit. Late payment of applicable tax will subject the transferor to default interest. Bulletin 7 does not apply to transactions of sale of shares by investors through a public stock exchange where such shares are acquired on a public stock exchange. On October 17, 2017, SAT issued the Announcement of the State Administration of Taxation on Issues Concerning the Withholding of Non- resident Enterprise Income Tax at Source, or Bulletin 37, which was amended by the Announcement of the State Administration of Taxation on Revising Certain Taxation Normative Documents issued on June 15, 2018 by SAT. Bulletin 37 further elaborates the relevant implemental rules regarding the calculation, reporting, and payment obligations of the withholding tax by the non-resident enterprises. Nonetheless, there remain uncertainties as to the interpretation and application of Bulletin 7. Bulletin 7 may be determined by the tax authorities to be applicable to our offshore transactions or sale of our shares or those of our offshore subsidiaries where non-resident enterprises, being the transferors, are involved.

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC Taxation laws.

#### Regulations on Employment

#### Labor Contract Law
The PRC Labor Contract Law, which became effective on January 1, 2008 and amended in 2012, primarily aims at regulating rights and obligations of employment relationships, including the establishment, performance, and termination of labor contracts. Pursuant to the Labor Contract Law, labor contracts must be executed in writing if labor relationships are to be or have been established between employers and employees. Employers are prohibited from forcing employees to work above certain time limits and employers must pay employees for overtime work in accordance with national regulations. In addition, employees' wages must not be lower than local standards on minimum wages and must be paid to employees in a timely manner.

#### Social Insurance
As required under the Regulation of Insurance for Labor Injury implemented on January 1, 2004 and amended in 2010, the Provisional Measures for Maternity Insurance of Employees of Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Old-Aged Pension Insurance of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for Urban Workers of the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22, 1999, and the PRC Social Insurance Law implemented on July 1, 2011 and amended on December 29, 2018, employers are required to provide their employees in China with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, work-related injury insurance, and medical insurance. These payments are made to local administrative authorities. Any employer that fails to make social insurance contributions may be ordered to rectify the non-compliance and pay the required contributions within a prescribed time limit and be subject to a late fee. If the employer still fails to rectify the failure to make the relevant contributions within the prescribed time, it may be subject to a fine ranging from one to three times the amount overdue. On July 20, 2018, the General Office of the State Council issued the Plan for Reforming the State and Local Tax Collection and Administration Systems, which stipulated that SAT will become solely responsible for collecting social insurance premiums.

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#### Housing Fund
In accordance with the Regulations on the Administration of Housing Funds, which was promulgated by the State Council in 1999 and amended in 2002 and 2019, employers must register at the designated administrative centers and open bank accounts for depositing employees' housing funds. Employers and employees are also required to pay and deposit housing funds, with an amount no less than 5% of the monthly average salary of the employee in the preceding year in full and on time.

#### Regulations on Share Incentive Plans
Pursuant to the Notices on Issues Concerning the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Publicly Listed Company, which was issued by SAFE on February 15, 2012, employees, directors, supervisors, and other senior management who participate in any stock incentive plan of a publicly listed overseas company and who are PRC citizens or non-PRC citizens residing in China for a continuous period of no less than one year, subject to a few exceptions, are required to register with SAFE through a qualified domestic agent, which may be a PRC subsidiary of such overseas listed company, and complete certain other procedures.

In addition, SAT has issued certain circulars concerning employee stock options and restricted shares. Under these circulars, employees working in China 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 options 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 be subject to sanctions imposed by the tax authorities or other PRC governmental authorities.

According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC labor laws

#### Regulations in Japan

#### Companies Act
The Formation, organization, operation and management of companies in Japan are governed by the JP Companies Act(Act No.86 of 2005). The JP Companies Act applies to both JP domestic companies and foreign-invested companies. And the registration authority for Japanese companies is the Legal Affairs Bureau. According to the document issued by the Kumamoto District Legal Affairs Bureau, Huhu Japan was established on April 25, 2022, a company which is established under the JP Companies Act.

#### Construction Business Act
In Japan, some industries need to apply for "license" to the government . For example, There are various construction-related laws in Japan, including Construction Business Act (Act No. 100 of 1949), Act on Construction, etc. of Government and Other Public Office Facilities (Act No. 181 of 1951). A company which seeks to operate a construction business, must obtain a license from the Minster of Land, Infrastructure, transport and Tourism when the company establishes business offices (head office, branch offices or an equivalent office specified by Cabinet Order; the same applies hereinafter) in the areas of two or more prefectures, or from the prefectural governor having jurisdiction over the location of the office when the company establishes a business office in the areas of only one prefecture. HUHU Japan's business operation are mainly governed by the Construction Business Act. According to the Notification issued by the Prefecture governor of Kumamoto, HUHU Japan has obtained the "Specific Construction Business License" on September 16, 2022. The validity period of this license is from September 30, 2022 to September 29, 2027.

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#### Labor Laws
There are various labor-related laws in Japan, including the Labor Standards Act (Act No. 49 of April 7, 1947, as amended), the Industrial Safety and Health Act (Act No. 57 of June 8, 1972, as amended), and the Labor Contracts Act (Act No. 128 of December 5, 2007). The Labor Standards Act regulates, among others, minimum standards for working conditions such as working hours, leave period, and leave days. The Industrial Safety and Health Act requires, among others, the implementation of measures to secure employee safety and protect the health of workers in the workplace. The Labor Contracts Act regulates, among others, the change of terms of employment contracts and working rules, and dismissal and disciplinary action. The company has signed labor contracts with employees in accordance with the provisions of the Labor Contract Law and complies with these regulations.

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#### MANAGEMENT
*Executive Officers and Directors*

Set forth below is information concerning our directors, director nominees, executive officers and other key employees.

---

| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position(s)** |
|  Yujun Xiao | 40 | Director, Chief Executive Officer |
|  Yinglai Wang | 39 | Chairperson of the Board |
|  Huiping Zhang | 43 | Chief Financial Officer |
|  Xiaoming Chen | 33 | Chief Technology Officer |
|  Xiaoqiu Zhang | 42 | Independent Director Nominee |
|  Qi Zheng | 42 | Independent Director Nominee |
|  Jin Ma | 44 | Independent Director Nominee |

---

Yujun Xiao, *Chief Executive Officer, Director*

Yujun Xiao has been our Chief Executive officer since July 9, 2021. He founded HUHU China in 2015, prior to which he founded Shanghai Huhu Technology Ltd. in 2010 and served as its CEO from 2010 to 2015. From 2006 to 2010, he was the head of the engineer department of Shentong Computer Ltd. From 2001 to 2006, he served as a senior engineer at South Asia Technology Ltd. Mr. Xiao has extensive experience in corporate management and strategic decision making. He oversees the Company's daily operations at a company-wide level and makes periodic business development plans based on the Company's strategies. Mr. Xiao is also responsible for overseeing the Shenton Company strategy and business plan execution. Mr. Xiao holds a bachelor degree from Yancheng Institute of Technology, specializing in machinery manufacturing and automation. Yujun Xiao is the spouse of Yinglai Wang, Chairperson of the Company.

Huiping Zhang, *Chief Financial Officer*

Huiping Zhang has been our Chief Financial officer since July 9, 2021. She served as the Chief Financial Officer in multiple companies from 2002 to 2020. Her most recent experience prior to joining us was the CFO at Zhongcheng Zhihui Technology Ltd., a position she served from 2017 to 2020. Ms. Zhang has many years of experience in financial work and team management experience. She is familiar with companies related to banking, tax, industry and commerce. She is also familiar with work procedures in obtaining tax benefits at high technology companies. Ms. Zhang has extensive knowledge of financial coordination and due diligence work in the early stage of listing in China, and has great expertise in accounting and financial analysis. Ms. Zhang holds a bachelor degree from Jiangsu Open University in Accounting. She also has an Intermediate Accountant Certificate in China.

Yinglai Wang, *Chairperson of the Board*

Yinglai Wang has served as the Chairperson of the board since July 09, 2021. She co-founded Shanghai Huhu Technology Ltd. in 2010. She was a management consultant at Engineer Machinery Management Consulting from 2006 to 2009. She worked at Kunshan Haohaizi Group in the administrative management department from 2001 to 2005. Ms. Wang has extensive experience in corporate management in the mechanical engineering industry and has a unique and advanced perspective in the strategic development of the Company. She holds a bachelor's degree in Wuxi Taihu College, specializing in business management. Yinglai Wang is the spouse of Yujun Xiao, who is the CEO and a director of the Company.

Xiaoming Chen, *Chief Technology Officer*

Xiaoming Chen has been our Chief Technology officer since July 09, 2021. He has served as the Chief Technology officer in HUHU China since 2015, prior to which he was the head of technology in Hanjin Electrical Automation System (Kunshan) Ltd. since 2011. He has worked as an engineer in multiple companies since 2009. Mr. Chen has abundant expertise in large to medium automation system project planning. Mr. Chen holds a college degree from Xuzhou Industry Career Technique College, specializing in Electric automation.

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Xiaoqiu Zhang, Independent Director Nominee

Xiaoqiu Zhang founded Wuxi Xinzhan Corporate Management Consulting Limited and has served as the general manager since 2016. She oversees corporate management and creating strategic planning. From June 2015 to June 2018, she served as a director at Wuxi Dongling Smart Technology Co., during which she assisted the company in its public listing process in China. Ms. Zhang holds a college degree from Nanjing Political Academy in December 2004, and obtained bachelor degree in business management from Northeastern Finance University in October 2020.

Qi Zheng, Independent Director Nominee

Qi Zheng has served as the managing director of Beijing Weiheng (Wuxi) Law Firm since September 2021, prior to which role, he was the senior partner from March 2020 at Beijing Weiheng (Wuxi) Law Firm, responsible for the firm's daily operation and corporate compliance department and criminal law department. He is also in-house counsel to multiple companies. Prior to joining Beijing Weiheng, he was an attorney at Jiangsu Manxiu Law Firm from April 2017 to March 2020. Mr. Zheng holds a bachelor of law degree in Nanjing Finance University on June 6, 2003, and a master of law degree from Tongji University in March 2015.

Jin Ma, Independent Director Nominee

Mr. Jin Ma has experience in consulting and accounting for over 10 years. He worked for Deloitte Touche Tohmatsu Certified Public Accountants LLP and Motorola Solutions (China) Co., Ltd. He co-founded Brook Partners consultancy in 2008 and has been the managing partner in charge of financial consulting and risk management consulting since then. Mr. Ma covers financial consulting, internal control and risk management for large-size state-owned enterprises and public companies. Mr. Ma graduated from Tianjin Finance University with a bachelor's degree in Auditing in 2002. He was admitted as a member of the Association of Chartered Certified Accountants in UK in 2012 and a chartered professional accountant member of the Chartered Professional Accountant of British Columbia, Canada in 2015.

#### Family Relationships
Our CEO and director, Yujun Xiao is spouse to our Chairperson Yinglai Wang.

#### Board of Directors
Our board of directors will consist of 3 directors upon declaration of effectiveness of the registration statement of which this prospectus forms a part. A director is not required to hold any shares in our company to qualify to serve as a director. Subject to the rules of the relevant stock exchange and disqualification by the chairman of the board of directors, a director may vote with respect to any contract, proposed contract, or arrangement in which he or she is materially interested. A director may exercise all the powers of the Company to borrow money, mortgage its business, property and uncalled capital and issue debentures or other securities whenever money is borrowed or as security for any obligation of the Company or of any third party. There are no directors' service contracts with the Company or its subsidiaries providing for benefits upon termination of employment.

#### Committees of the board of directors
Prior to the declaration of effectiveness of the registration statement of which this prospectus forms a part, we intend to establish an audit committee, a compensation committee and a nominating and corporate governance committee under the board of directors. We intend to adopt a charter for each of the three committees prior to the completion of this offering.

#### Duties of Directors
As a matter of Cayman Islands law, directors of a Cayman Islands company owe fiduciary duties to the company and separately a duty of care, diligence and skill to the company. Under Cayman Islands law, directors and officers owe the following fiduciary duties: (i) a duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; (ii) a duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; (iii) directors should not improperly fetter the exercise of future discretion; (iv) a duty to exercise powers fairly as between different classes of shareholders; (v) a duty

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to exercise independent judgment; and (vi) a duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests. In fulfilling their duty of care to our company, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time. Our company may have the right to seek damages if a duty owed by our directors is breached.

Our board of directors has all the powers necessary for managing, and, for directing and supervising, our business affairs. The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• convening shareholders' annual and extraordinary general meetings and reporting its work to shareholders at such meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declaring dividends and distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing officers and determining the term of office of the officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exercising the borrowing powers of our company and mortgaging the property of our company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the transfer of shares in our company, including the registration of such transfer in our register of members.

#### Terms of Directors and Officers
Our directors may be appointed by an ordinary resolution of our shareholders. Alternatively, our board of directors may, by the majority resolution of the directors appoint any person as a director to fill a casual vacancy on our board or as an addition to the existing board. Our directors are not automatically subject to a term of office and hold office until such time as they are removed from office by an ordinary resolution of our shareholders. In addition, a director will cease to be a director if he (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 three consecutive meetings and our board resolves that his office be vacated; or (v) is removed from office pursuant to any other provision of our articles of association.

Our officers are appointed by and serve at the discretion of the board of directors, and may be removed by our board of directors.

#### Employment Agreements
We have entered into employment agreements with each of our executive officers. Each executive officer has agreed to hold, both during and after the termination or expiry of his or her employment agreement, in strict confidence and not to use, except as required in the performance of his or her duties in connection with the employment or pursuant to applicable law, any of our confidential information or trade secrets, any confidential information or trade secrets of our clients or prospective clients, or the confidential or proprietary information of any third party received by us and for which we have confidential obligations and rights for these inventions, designs and trade secrets.

In addition, each executive officer has agreed to be bound by non-competition and non-solicitation restrictions during the term of his or her employment. Specifically, each executive officer has agreed not to engage in business that is similar or identical to the Company's business, or to provide assistance for any individual or organization who is involved in similar or identical business with the Company.

#### Compensation of Directors and Executive Officers
In fiscal years ended December 31, 2021 and 2020, we paid an aggregate of RMB 1,249,153 (USD196,019) and RMB 685,000 (USD104,981) in cash to our executive officers. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors and executive officers. The PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance and other statutory benefits and a housing provident fund.

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#### RELATED PARTY TRANSACTIONS
The table below sets forth the major related parties and their relationships with the Company as of June 30, 2022 and December 31, 2021:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Related party relationships:**

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  **Mr. Yujun Xiao** | **CEO of the Company** |
|  **Shanghai Tongcheng Enterprise Management Co., Ltd.** | **Mr. Yujun Xiao served as a supervisor and holds 40% of the shares** |
|  **Anhui Zhongke Shenwei Intelligent Data Co., Ltd.,** <br>| **Mr. Yujun Xiao is the legal representative and holds 9.51% of the shares** |
|  **Ms. Yinglai Wang** | **Chairperson of the Company** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Due from related party:**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **<br>As of <br>December 31,** | **<br>As of <br>December 31,** |
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp; Shanghai Tongcheng Enterprise Management Co., Ltd. | $1493 | $1569 | $— |

---

The balance was fully rapid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Due to related party:**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **<br>As of <br>December 31,** | **<br>As of <br>December 31,** |
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp; Mr. Yujun Xiao | $514459 | $637007 | $638702 |

---

Mr. Yujun Xiao, the CEO of the Company, made advances to the Company as working capital to support the Company's operations during the years ended December 31, 2021 and 2020. The balance was unsecured, interest-free and due upon demand. The company repaid Mr. Yujun Xiao $94,688 during the six months ended June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) Purchase from a related party:**

In addition, on March 8, 2022, our affiliated entity Anhui Zhongke and HUHU China entered into a software purchase agreement, whereby Anhui Zhongke sold factory management and monitoring software to HUHU China. The purchase price of the software is 2,305,000RMB (approximately $329,285 USD) and the purchase price was fully settled by June 30, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5) Guaranty from related parties:**

On April 19, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on April 18, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, Chairperson of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On March 22, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 21, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, Chairperson of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On December 10, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $188,306 (RMB 1,200,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, Chairperson of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

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On December 21, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $78,461 (RMB 500,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, Chairperson of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on March 14, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, Chairperson of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 1, 2022.

On April 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $298,593 (RMB 2,000,000) with a maturity date on April 11, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, Chairperson of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 1, 2022.

On April 01, 2022, the Company entered into a loan agreement with the Bank of Ningbo to obtain a loan of $447,888 (RMB 3,000,000) with a maturity date on March 28, 2023 at a fixed annual interest rate of 4.35%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On June 23, 2022, the Company entered into a loan agreement with the Bank of China to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on June 23, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On July 18, 2022, the Company entered into a loan agreement with the Bank of Nanjing to obtain a loan of $463,027 (RMB 3,000,000) for one year with a maturity date on July 17, 2023 at a fixed annual interest rate of 3.70%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On July 19, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $308,685 (RMB 2,000,000) for one year with a maturity date on July 18, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On October 27, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $617,370 (RMB 4,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On November 09, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $771,712 (RMB 5,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, Chairperson of the Company, guaranteed the repayment of the loan.

On November 09, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $154,342 (RMB 1,000,000) with a maturity date on November 14, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, Chairperson of the Company, is a co-borrower of the loan. The loan was fully repaid on November 14, 2022.

On November 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $27,782 (RMB 180,000) with a maturity date on December 15, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, Chairperson of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

On November 17, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $77,171 (RMB 500,000) with a maturity date on December 17, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, Chairperson of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

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On November 24, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $33,955 (RMB 220,000) with a maturity date on December 24, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, Chairperson of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

#### Employment Agreements
See "Management — Employment Agreements."

#### Share Issuance
See "Principal Shareholders."

#### Other Related Party Transactions
On March 8, 2022, Anhui Zhongke and HUHU China entered into a software purchase agreement, where Anhui Zhongke sold a factory management and monitoring software to HUHU China. The purchase price of the software is 2,305,000RMB(approximately 329,285 USD).

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#### 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 share as of the date of this prospectus, and as adjusted to reflect the sale of the ordinary share offered in this offering for

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and executive officers who beneficially owns our ordinary share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known to us to own beneficially more than 5% of our ordinary share.

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. Percentage of beneficial ownership of each listed person prior to this offering is based on (i) 5,000,000 Ordinary Shares issued and outstanding as of the date of this prospectus immediately prior to the effectiveness of the registration statement of which this prospectus is a part and (ii) ordinary share 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. Percentage of beneficial ownership of each listed person after this offering includes (i) ordinary share outstanding immediately after the completion of this offering and (ii) ordinary share 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.

As of the date of the prospectus, we have 5 shareholders of record, none of which is located in the United States. Each shareholder currently has the same voting rights.

---

| | | | |
|:---|:---|:---|:---|
|  **Name of Beneficial Owner** | **Amount of <br>Beneficial <br>Ownership** | **Pre-Offering <br>Percentage <br>Ownership** | **Post-Offering <br>Percentage <br>Ownership** |
|  ***Directors, Director Appointees and Named Executive Officers:*** |  |  |  |
|  Yujun Xiao, Chief Executive Officer and Director<sup>(1)</sup> | 2573000 | 51.46% | % |
|  Yinglai Wang, Chairperson<sup>(2)</sup> | 2062000 | 41.24% | % |
|  Huiping Zhang, Chief Financial Officer | 0 |  |  |
|  Xiaoming Chen, Chief Technology Officer | 0 |  |  |
|  **All directors, director nominees and executive officers as a group (4 persons)** | 4635000 | 92.70% | % |
|  ***5% or Greater Shareholders:*** |  |  |  |

---

____________

(1) Army Xiao Holdings Limited, a company formed under the laws of the British Virgin Islands, of which Yujun Xiao is the sole shareholder and director, holds 2,109,500 Ordinary Shares. In addition, Army Xiao Holdings Limited is the general partner of Increase Willpower Limited, a limited partnership formed under the laws of the British Virgin Islands. Yujun Xiao is deemed the beneficial owner of the 2,109,500 Ordinary Shares held by Army Xiao Holdings Limited and 463,500 Ordinary Shares held by Increase Willpower Limited.

(2) Billion Wang Holdings Limited, a company formed under the laws of the British Virgin Islands, of which Yinglai Wang is the sole shareholder and director, holds 2,062,000 Ordinary Shares.

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#### DESCRIPTION OF SHARE CAPITAL
We were incorporated as an exempted company with limited liability and our affairs are governed by our memorandum and articles of association, as amended and restated from time to time (the "Articles"), and the Companies Act (as amended) of the Cayman Islands, or the "Cayman Islands Companies Act." A Cayman Islands exempted company with limited liability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is a company that conducts its business mainly outside the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 effect 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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to hold an annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to make its register of members open to inspection by shareholders of that company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may obtain an undertaking against the imposition of any future taxation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as a limited duration company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder's shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

#### Our Post-Offering Memorandum and Articles of Association
We have adopted a memorandum and articles of association, which will become effective and replace our current memorandum and articles of association in its entirety immediately prior to the completion of this offering. The following are summaries of material provisions of our memorandum and articles of association and the Companies Act insofar as they relate to the material terms of our Ordinary Shares.

*Ordinary Shares*

All of 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 may freely hold and vote their Ordinary Shares. We may not issue shares or warrants to bearer.

Our authorized share capital is US$50,000 divided into 5,000,000,000 Ordinary Shares, par value US$0.00001 per share. Subject to the provisions of the Cayman Islands Companies Act and our memorandum and articles of association, and directions given by any ordinary resolution and the rights attaching to any class of existing shares, the directors have general and unconditional authority to issue, allot, grant options over or otherwise dispose of shares to such persons, at such times and on such terms as they may determine. Such authority could be exercised by the directors to allot shares which carry rights and privileges that are preferential to the rights attaches to Ordinary Shares. 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.

At the completion of this offering, there will be — Ordinary Shares issued and outstanding. Our authorized share capital of 5,000,000,000 Ordinary Shares comprises solely a single class of shares. Shares sold in this offering will be delivered against payment from the underwriters upon the closing of the offering in New York, New York, on or about , 2023.

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*Dividends*

Subject to the provisions of the Cayman Islands Companies Act and the Articles, the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose.

Under the laws of the Cayman Islands, our 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 our company being unable to pay its debts as they fall due in the ordinary course of business. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

No dividend shall bear interest as against the Company.

*Voting Rights*

Subject to any rights or restrictions as to voting attached to any shares and the Articles, unless any share carries special voting rights, on a show of hands every shareholder who is present in person, by its duly authorized representative or by proxy shall have one vote. On a poll, every shareholder shall have one vote for every share of which he is the holder.

*Variation of Rights of Shares*

If at any time our share capital is divided into different classes of shares, the rights attached to any class (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 two-thirds of the issued shares of that class, or with the sanction of a special 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 otherwise expressly provided by the terms, of issue of any class, the rights conferred on the holders of shares of that class shall not be deemed to be varied by the creation or issue of further shares ranking pari passu with that class.

*Alteration of Share Capital*

Subject to the Cayman Islands Companies Act, our shareholders may, by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase our share capital by such sum, to be divided into shares of such amount, and with such rights, privileges, priorities and restrictions attached to them as prescribed by that ordinary resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to the Cayman Islands Companies Act, sub-divide our shares or any of them into shares of smaller amounts than that fixed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person.

Subject to the Cayman Islands Companies Act and the Articles, we may, by special resolution of our shareholders, reduce the share capital of the Company and any capital redemption reserve in any manner.

*Calls on Shares and Forfeiture*

The directors may, from time to time, make calls on the shareholders in respect of some or all of any monies unpaid on their shares, whether in respect of par value or the premium payable on those shares, and each shareholder shall (subject to receiving at least 14 days' notice specifying the time or times of payment), pay to us at the time or times so specified the amount called on his shares. The directors may revoke or postpone a call at any time. The joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share and the holder or joint holders of a share at the time of a call shall remain liable to pay the call on that share, notwithstanding any subsequent transfer of the share being registered by the Company. If a sum called in respect of a shares is not paid before or on the day appointed for payment of that call, the shareholder from whom it is due and payable shall pay

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interest on the sum at such rate as the directors may determine (being 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 6 percent per annum) from the day appointed for payment of the call to the time of the actual payment. The directors may, at their discretion, waive payment of the interest in full or in part.

We have a first and paramount lien on every share (whether or not it is a fully paid share). The lien is for all monies, whether presently payable or not, called or payable at a fixed time in respect of that share and for all debts, liabilities or other obligations owed, whether presently or not, by the shareholder or by one or more joint shareholders or by any of their estates to the Company.

At any time, the directors may declare any share to be wholly or in part exempt from the lien on shares provisions of the Articles. Our lien, if any, on a share shall extend to all distributions payable on it.

*Unclaimed Dividend*

Any dividend that remains unclaimed after a period of six years from the date of declaration of such dividend shall be forfeited and revert to the Company.

*Forfeiture or Surrender of Shares*

If a shareholder fails to pay any call or instalment of a call in respect of shares on the day appointed for payment, the directors may serve a notice on such shareholder naming a further date not earlier than the expiration of 14 days from the date of service on or before which the payment required by the notice is to be made and containing a statement that in the event of non-payment the shares, or any of them, will be liable to be forfeited.

If the requirements of such notice are not complied with, we may forfeit the shares together with any distributions declared payable in respect of the forfeited shares and not paid at any time before tender of payment.

A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the directors think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the directors think fit. The proceeds of any sale or disposition of the forfeited Share may be received and used by us as the directors determine.

A person whose shares have been forfeited shall cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeit, 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 interest.

*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 Islands Companies Act.

*Redemption and Purchase of Own Shares*

Subject to the Cayman Islands Companies Act and to the rights attaching to any class of shares, we may by our directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue shares on terms that they are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on such terms and in such manner the directors may, before the issue of those shares determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase our own shares (including any redeemable shares) on such terms and in such manner as the directors determine.

When making payments in respect of redemption or purchase of shares, the directors may make such payments in cash or in kind if so authorized by the terms of issue of those shares or with the agreement of the holder of those shares.

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*Transfer of Shares*

The transferor shall be deemed to remain the holder of an ordinary share until the name of the transferee is entered on the register of members of the Company.

Where the shares in question are not listed on or subject to the rules of Nasdaq, shares are transferable, subject to the consent of our board of directors who may, in their absolute discretion, refuse to consent to any transfer and decline to register the transfer without giving any reason.

If our directors refuse to register a transfer of a share, they are required, within two months after the date on which the transfer was lodged, to notify the transferee of the refusal.

*Inspection of Books and Records*

Holders of our Ordinary Shares will have no general right under the Cayman Islands Companies Act to inspect or obtain copies of our register of members or our corporate records. Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of Companies of the Cayman Islands.

*General Meetings*

All general meetings other than annual general meetings shall be called extraordinary general meetings. We may but are not obliged to hold an annual general meeting.

Any director may convene general meetings at such times and in such manner and places within or outside the Cayman Islands as the director considers necessary or desirable. General meetings shall also be convened by any one or more of our directors on the written request of shareholders entitled to exercise 10% or more of the voting rights in respect of the matter for which the meeting is requisitioned. Such written request must state the objects of the meeting and must be signed by the shareholders requisitioning the meeting. The written request must be lodged at our registered office in the Cayman Islands and may be delivered in counterpart. If the directors do not proceed to convene a general meeting within 21 days of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the voting rights of all of them, may convene the general meeting in the same manner as nearly as possible as that in which a general meeting may be convened by a director. Where the requisitionists fail to convene the general meeting within three months of their right to convene the meeting arising, the right to convene the general meeting shall lapse.

The director convening a general meeting shall give not less than seven days' notice (not including the day on which the notice is given (or deemed to be given), but including the day on which the period of time expires) of a general meeting to those shareholders whose names on the date the notice is given appear as members in our register of members and are entitled to vote at the meeting. Such director shall also give such notice to each of the directors.

A general meeting held in contravention of the requirement to give notice is valid if shareholders holding at least 90% of the total voting rights on all the matters to be considered at the meeting have waived notice of the meeting and, for this purpose, the presence of a shareholder at the meeting shall constitute waiver in relation to all the shares which that shareholder holds.

Subject to the Cayman Islands Companies Act and with the consent of the shareholders who, individually or collectively, hold at least ninety percent of the voting rights of all those who have a right to vote at a general meeting, a general meeting may be convened on shorter notice.

A general meeting is duly constituted if, at the commencement of the meeting, there are present in person, through their authorized representative or by proxy one or more shareholders holding in aggregate at least one-third of the paid up voting share capital of the Company entitled to vote on resolutions of shareholders to be considered at the meeting. Where a quorum comprises a single shareholder or proxy, such person may pass a resolution of shareholders and a certificate signed by such person accompanied where such person be a proxy by a copy of the proxy instrument shall constitute a valid resolution of shareholders.

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If, within two hours from the time appointed for the general meeting, a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be dissolved. In any other case it shall stand adjourned to the next business day in the jurisdiction in which the meeting was to have been held at the same time and place or to such other time and place as the directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the shareholders present shall be a quorum.

The chairman may, with the consent of the meeting, adjourn any meeting from time to time, and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

At any general meeting the chairman is responsible for deciding in such manner as considered appropriate whether any resolution proposed has been carried or not and the result of the decision shall be announced to the meeting and recorded in the minutes of the meeting. If the chairman has any doubt as to the outcome of the vote on a proposed resolution, he shall cause a poll to be taken of all votes cast upon such resolution and the result shall be announced to the meeting and recorded in the minutes of the meeting. The minutes of the meeting shall be conclusive evidence of the fact that a resolution was carried or not without proof of the number or proportion of the votes recorded in favour of or against such resolution.

*Preferred Shares*

Pursuant to our memorandum and articles of association, our directors have the authority to issue shares and other securities of the Company with such preferred, deferred or other special rights, restrictions or privileges whether with regard to voting, distributions, a return of capital, or otherwise and in such classes and series, if any, as the directors may determine. We do not currently have plans to issue any preferred shares.

*Directors*

We may by ordinary resolution or by resolution of our directors impose, a maximum or minimum number of directors required to hold office at any time and vary such limits from time to time. Under the Articles, we are required to have a minimum of one director.

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.

The directors shall be entitled to such remuneration as the directors may determine.

We may in general meeting fix a minimum shareholding required to be held by a director, but unless and until so fixed a director is not required to hold shares.

A director may be removed by ordinary resolution or by a resolution of our directors.

Subject to the provisions of the articles, the office of a director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he gives notice in writing to the Company that he resigns the office of director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he absents himself (without being represented by an alternate director appointed by him) from three consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he has by reason of such absence vacated office; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he is found to be or becomes of unsound mind; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all the other directors (being not less than two in number) resolve that he should be removed as a director;

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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 the NASDAQ corporate governance rules. The audit committee shall consist of at least three directors, all of whom shall be independent within the meaning of the NASDAQ corporate governance 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 Islands Companies Act and our memorandum and articles and any directions given by ordinary resolution, our business and affairs shall be managed by, or under the direction or supervision of, the directors. The directors shall have all the powers necessary for managing, and for directing and supervising, our business and affairs of the Company as are not by the Cayman Islands Companies Act, our memorandum and articles or the terms of any special resolution required to be exercised by the shareholders. No alteration of our memorandum and articles or any direction given by ordinary or special resolution shall invalidate any prior act of the directors that was valid at the time undertaken.

The directors may delegate any of their powers to any committee consisting of one or more directors. They may also delegate to any managing director or director holding any other executive office such of their powers as they consider desirable to be exercised by him provided that an alternate director may not act as managing director and the appointment of a managing director shall automatically terminate if he ceases to be a director. Any such delegation may be made subject to any conditions the directors may impose and may be revoked or altered. Subject to any such conditions, the proceedings of a committee of directors shall be governed by the Articles regulating the proceedings of directors, so far as they are capable of applying.

The directors may establish any committees, local boards or agencies or appoint any person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees or local boards. Any such appointment may be made subject to any conditions the directors may impose, and may be revoked or altered. Subject to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating the proceedings of directors, so far as they are capable of applying.

The directors may by power of attorney or otherwise appoint any company, firm, person or body of persons, whether nominated directly or indirectly by the directors, to be the attorney or authorized signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorized signatories as the directors may think fit and may also authorize any such attorney or authorized signatory to delegate all or any of the powers, authorities and discretions vested in him.

The directors may appoint such officers as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the directors may think fit. Unless otherwise specified in the terms of his appointment an officer may be removed by the directors.

The directors may exercise all the powers of the Company to incur indebtedness, liabilities or obligations and to issue debentures, debenture stock, mortgages, bonds and other such securities and to secure indebtedness, liabilities or obligations whether of the Company or of any third party.

No person shall be disqualified from the office of director or alternate director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any other contract or transaction entered into by or on behalf of the Company in which any director or alternate director shall be in anyway interested be or be liable to be avoided, nor shall any director or alternate director so contracting or being so interested be liable to account to the Company for any profit realized by any such contract or transaction by reason of such director holding office or of the fiduciary relation thereby established. A director (or his alternate director in his absence) shall be at liberty to vote in respect of any contract or transaction in which he is interested provided that the nature of the interest of any director or alternate director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon. A general notice that a director or alternate director is a shareholder, director, officer or employee of any specified firm or company and is to be regarded as

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interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

*Capitalization of Profits*

The directors may capitalize any sum standing to the credit of any of the Company's reserve accounts (including share premium account and capital redemption reserve) or to the credit of profit and loss account or otherwise available for distribution and appropriate such sum to shareholders in the proportions in which such sum would have been divisible amongst them had the same been a distribution of profits by way of dividend and apply such sum on their behalf in paying up in full unissued shares for issue, allotment and distribution credited as fully paid-up to and amongst them in the proportions aforesaid. In such event the directors may make such provisions as they think fit in the case of shares becoming distributable in fractions.

*Liquidation Rights*

The shareholders may, subject to the Articles and any other sanction required by the Cayman Islands Companies Act, pass a special resolution allowing the Company to be wound up voluntarily. If the Company shall be wound up, and the assets available for distribution amongst the shareholders shall be insufficient to repay the whole of the share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the shareholders in proportion to the par value of the shares held by them. If in a winding up the assets available for distribution amongst the shareholders shall be more than sufficient to repay the whole of the share capital at the commencement of the winding up, the surplus shall be distributed amongst the shareholders in proportion to the par value of the shares held by them at the commencement of the winding up subject to a deduction from those shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise, without prejudice to the rights of holders of shares issued upon special terms and conditions.

*Register of Members*

Under the Cayman Islands Companies Act, we must keep a register of members and there should be entered therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the names and addresses of our shareholders, together with a statement of the shares held by each shareholder, such statement shall confirm (i) the amount paid or agreed to be considered as paid, on the shares of each shareholder; (ii) the number and category of shares held by each member, and (iii) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which the name of any person was entered on the register as a shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which any person ceased to be a shareholder.

Under the Cayman Islands 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 Islands 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.

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*Differences in Corporate Law*

The Cayman Islands Companies Act is derived, to a large extent, from the older Companies Acts of the United Kingdom but does not follow recent United Kingdom statutory enactments, and accordingly there are significant differences between the Cayman Islands Companies Act and the current Companies Act of the United Kingdom. In addition, the Cayman Islands 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 Islands Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware in the United States.

*Mergers and Similar Arrangements*

The Cayman Islands Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (1) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company and (2) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (1) a special resolution of the shareholders of each constituent company, and (2) such other authorization, if any, as may be specified in such constituent company's articles of association. The written plan of merger or consolidation must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a declaration as to the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Dissenting shareholders have the right to be paid the fair value of their shares (which, if not agreed between the parties, will be determined by the Cayman Islands courts) if they follow the required procedures, subject to certain exceptions. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

In addition, the Cayman Islands Companies Act contains statutory provisions that facilitate the reconstruction of companies by way of schemes of arrangement, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must, in addition, represent three-fourths in value of each such 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 (the "Grand Court"). 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;&nbsp;&nbsp;&nbsp;&nbsp;(a) the statutory provisions as to the required majority vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Islands Companies Act.

The Cayman Islands Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of dissentient minority shareholders upon a tender offer. When a tender offer is made and accepted by holders of 90.0% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, 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, 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.

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If an arrangement and reconstruction is thus approved, or if a takeover offer is made and accepted, a 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.

*Shareholders' Suits and Protection of Minority Shareholders.*

In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company and as a general rule, a derivative action may not be brought by a minority shareholder. However, based on English law authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Grand Court can be expected to follow and apply the common law principles (namely the rule derived from the seminal English case of *Foss v. Harbottle* and the exceptions thereto, which limits the circumstances in which a shareholder may bring a derivative action on behalf of the company or a personal action to claim loss which is reflective of loss suffered by the company) which permit a minority shareholder to commence a class action against, or derivative actions in the name of, a company to challenge the following acts in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a company acts or proposes to act illegally or ultra vires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• those who control the company are perpetrating a "fraud on the minority."

In the case of a company (not being a bank) having its share capital divided into shares, the Grand Court may, on the application of members holding not less than one fifth of the shares of the company in issue, appoint an inspector to examine the affairs of the company and to report thereon in such manner as the Grand Court shall direct.

Any of our shareholders may petition the Grand Court which may make a winding up order if the Grand Court of the Cayman Islands is of the opinion that it is just and equitable that we should be wound up and cease doing business, which may occur on the basis that there has been a loss of substratum and/or misconduct by management. Alternatively, the Grand Court may make an order: (1) regulating the conduct of our affairs; (2) requiring us to refrain from doing or continuing an act complained of by the shareholder petitioner or to do an act which the shareholder petitioner has complained we have omitted to do; (3) authorizing civil proceedings to be brought in our name and on our behalf by the shareholder petitioner on such terms as the Grand Court may direct; or (4) providing for the purchase of the shares of any of our shareholders by other shareholders or us and, in the case of a purchase by us, a reduction of our capital accordingly.

Generally, claims against us must be based on the general laws of contract or tort applicable in the Cayman Islands or individual rights as shareholders as established by our memorandum and articles of association.

*Indemnification of Directors and Executive Officers and Limitation of Liability*

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. Our memorandum and articles of association permit indemnification of officers and directors for liabilities incurred in their capacities as such as a result of any act or failure to act unless such losses or damages arise from their own actual fraud or willful default. This standard of conduct is generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our 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.

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*Directors' Fiduciary Duties*

Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director acts in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, directors of a Cayman Islands company owe fiduciary duties to the company. Under Cayman Islands law, directors and officers owe the following fiduciary duties: (i) a duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; (ii) a duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; (iii) directors should not improperly fetter the exercise of future discretion; (iv) a duty to exercise powers fairly as between different classes of shareholders; (v) a duty to exercise independent judgment; and (vi) a duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests. In fulfilling their duty of care to our company, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time.

A director of a Cayman Islands company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, there are indications that English and Commonwealth courts are moving towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands.

*Shareholder Proposals*

Under the Delaware General Corporation 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 governing documents. The Delaware General Corporation Law does not provide shareholders an express right to put any proposal before the annual meeting of shareholders, but in keeping with common law, Delaware corporations generally afford shareholders an opportunity to make proposals and nominations provided that they comply with the notice provisions in the certificate of incorporation or bylaws. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Cayman Islands Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. Our articles provide that general meetings may also be convened by any one or more of our directors on the written request of shareholders entitled to exercise 10% or more of the voting rights in respect of the matter for which the meeting is requisitioned. Such written request must state the objects of the meeting and must be signed by the shareholders requisitioning the meeting. The written request must be lodged at our registered office in the Cayman Islands and may be delivered in counterpart. If the directors do not proceed to convene a general meeting within 21 days of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the voting rights of all of them, may convene the general meeting in the same manner as nearly as possible as that in which a general meeting may be convened by a director. Where the requisitionists fail to convene the general meeting within three months of their right to convene the meeting arising, the right to convene the general meeting shall lapse. As a Cayman Islands exempted company, we are not obligated by law to call shareholders' annual general meetings.

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*Cumulative Voting*

Under the Delaware General Corporation Law, cumulative voting for election of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. As permitted under the Cayman Islands Companies Act, our articles do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

*Removal of Directors*

Under the Delaware General Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Subject to the provisions of our articles (which include the removal of a director by ordinary resolution), the office of a director may be vacated if: (a) he gives notice in writing to the Company that he resigns the office of director; or (b) he absents himself (without being represented by an alternate director appointed by him) from three consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he has by reason of such absence vacated office; or; (c) dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; (d) he is found to be or becomes of unsound mind; or; (e) the other directors (being not less than two in number) resolve that he should be removed as a director.

*Transactions with Interested Shareholders*

The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation or bylaws that is approved by its shareholders, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting stock or who or which is an affiliate or associate of the corporation and owned 15% or more of the corporation's outstanding voting stock within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

The Cayman Islands Companies Act has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although the Cayman Islands Companies Act does not regulate transactions between a company and its significant shareholders, under Cayman Islands law such transactions must be entered into bona fide in the best interests of the company and for a proper corporate purpose and not with the effect of constituting a fraud on the minority shareholders.

*Dissolution; Winding Up*

Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board of directors.

Under the Cayman Islands Companies Act and our articles, the Company may be wound up by a special resolution of our shareholders, or if the winding up is initiated by our board of directors, by either a special resolution of our members or, if our company is unable to pay its debts as they fall due, by an ordinary resolution of

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our members. In addition, a company may be wound up by an order of the courts of the Cayman Islands. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

*Variation of Rights of Shares*

Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under the Cayman Islands Companies Act and our articles, if our share capital is divided into more than one class 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.

*Amendment of Governing Documents*

Under the Delaware General Corporation Law, a corporation's certificate of incorporation may be amended only if adopted and declared advisable by the board of directors and approved by a majority of the outstanding shares entitled to vote, and the bylaws may be amended with the approval of a majority of the outstanding shares entitled to vote and may, if so provided in the certificate of incorporation, also be amended by the board of directors. Under the Cayman Islands Companies Act, our articles may only be amended by special resolution of our shareholders.

*Anti-money Laundering — Cayman Islands*

In order to comply with legislation or regulations aimed at the prevention of money laundering, we may be required to adopt and maintain anti-money laundering procedures, and may require subscribers to provide evidence to verify their identity. 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 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 (as amended) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (as amended), 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 (as amended of the Cayman Islands) or the Financial Reporting Authority, pursuant to the Terrorism Act (as amended), 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.

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#### SHARES ELIGIBLE FOR FUTURE SALE
As of the date of this prospectus, our authorized share capital is US$50,000 divided into 5,000,000,000 Ordinary Shares, par value US$0.00001 per share, — Ordinary Shares are issued and outstanding. Upon completion of this offering, — Ordinary Shares will be issued and outstanding. Of that amount, — Ordinary Shares will be publicly held by investors participating in this offering, and — Ordinary Shares will be held by our existing shareholders, some of whom may be our "affiliates" as that term is defined in Rule 144 under the Securities Act. As defined in Rule 144, an "affiliate" of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the issuer. Prior to this offering, there has been no public market for our Ordinary Shares. While we intend to list the Ordinary Shares on the [Nasdaq Capital market], we cannot assure you that a regular trading market will develop in our Ordinary Shares.

All of the Ordinary Shares sold in the offering will be freely transferable by persons other than our "affiliates" in the United States without restriction or further registration under the Securities Act. Ordinary shares purchased by one of our "affiliates" may not be resold, except pursuant to an effective registration statement or an exemption from registration, including an exemption under Rule 144 under the Securities Act described below.

The Ordinary Shares held by existing shareholders are, and any Ordinary Shares issuable upon exercise of options outstanding following the completion of this offering will be, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities may be sold in the United States only if they are registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act. These rules are described below.

Sales of substantial amounts of the Ordinary Shares in the public market could adversely affect prevailing market prices of the Ordinary Shares. As described below, only a limited number of our Ordinary Shares currently outstanding will be available for sale immediately after this offering due to contractual and legal restrictions on resale. Nevertheless, after these restrictions lapse, future sales of substantial amounts of our Ordinary Shares, including Ordinary Shares issued upon exercise of outstanding options, in the public market in the United States, or the possibility of such sales, could negatively affect the market price in the United States of our Ordinary Shares and our ability to raise equity capital in the future.

#### Lock-up Agreements
Pursuant to the underwriting agreement in connection with this offering, we, our directors and executive officers and the holders of [\*]% or more of our outstanding Ordinary Shares have agreed, subject to certain exceptions, not to transfer or dispose of, directly or indirectly, any of our Ordinary Shares or any securities convertible into or exchangeable or exercisable for our Ordinary Shares for a period of six months after the closing of this offering. After the expiration of the six-month period, the Ordinary Shares held by our directors, executive officers and such shareholders may be sold subject to the restrictions under Rule 144 under the Securities Act, pursuant to another exemption from registration under the Securities Act, or by means of a registered public offering. See "Underwriting — Lock-up Agreements" for more details.

#### Rule 144
All of our Ordinary Shares outstanding prior to the completion of 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 who is not deemed to have been our affiliate at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for more than six months would be entitled to sell an unlimited number of those shares, subject only to the availability of current public information about us. A non-affiliate who has beneficially owned restricted securities for at least one year from the later of the date these shares were acquired from us or from our affiliate would be entitled to freely sell those shares.

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A person who is deemed to be an affiliate of ours and who has beneficially owned "restricted securities" for at least six months would be entitled to sell, within any three-month period, a number of shares that is not more than the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of Ordinary Shares then outstanding, in the form of Ordinary Shares or otherwise, which will equal approximately shares immediately after this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of the Ordinary Shares on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants or advisors who purchases our Ordinary Shares from us in connection with a compensatory stock or option plan or other written agreement relating to compensation is eligible to resell such Ordinary Shares 90 days after we became a reporting company under the Exchange Act in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144.

#### Regulation S
Regulation S under the Securities Act provides an exemption from registration requirements in the United States for offers and sales of securities that occur outside the United States. Rule 903 of Regulation S provides the conditions to the exemption for a sale by an issuer, a distributor, their respective affiliates or anyone acting on their behalf. Rule 904 of Regulation S provides the conditions to the exemption for a resale by persons other than those covered by Rule 903. In each case, any sale must be completed in an offshore transaction, as that term is defined in Regulation S, and no directed selling efforts, as that term is defined in Regulation S, may be made in the United States.

We are a foreign issuer as defined in Regulation S. As a foreign issuer, securities that we sell outside the United States pursuant to Regulation S are not considered to be restricted securities under the Securities Act, and, subject to the offering restrictions imposed by Rule 903, are freely tradable without registration or restrictions under the Securities Act, unless the securities are held by our affiliates. We are not claiming the potential exemption offered by Regulation S in connection with the offering of newly issued shares outside the United States and will register all of the newly issued shares under the Securities Act.

Subject to certain limitations, holders of our restricted shares who are not our affiliates or who are our affiliates by virtue of their status as our officer or director of may resell their restricted shares in an "offshore transaction" under Regulation S if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• none of the shareholder, its affiliate nor any person acting on their behalf engages in directed selling efforts in the United States, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a sale of our restricted shares by an officer or director who is our affiliate solely by virtue of holding such position, no selling commission, fee or other remuneration is paid in connection with the offer or sale other than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

Additional restrictions are applicable to a holder of our restricted shares who will be our affiliate other than by virtue of his or her status as our officer or director.

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#### TAXATION
*The following summary of the material Cayman Islands, PRC and U.S. federal income tax consequences of an investment in the Ordinary Shares is based upon laws and relevant interpretations thereof in effect as of the date of this registration statement, all of which are subject to change. This summary does not deal with all possible tax consequences relating to an investment in the Ordinary Shares, such as the tax consequences under U.S. state and local tax laws or under the tax laws of jurisdictions other than the Cayman Islands, the People's Republic of China and the United States. To the extent that the discussion relates to matters of Cayman Islands tax law, it represents the opinion of , our Cayman Islands counsel; to the extent it relates to PRC tax law, it is the opinion of Jiangsu Junjin Law Firm, our PRC counsel.*

#### Cayman Islands Taxation
The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. The Cayman Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of our Ordinary Shares and Ordinary 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 our Ordinary Shares, nor will gains derived from the disposal of our Ordinary Shares be subject to Cayman Islands income or corporation tax.

#### People's Republic of China Taxation
Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with a "de facto management body" within the PRC is considered a resident enterprise and will be subject to the enterprise income tax at the rate of 25% on its global income. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control over and overall management of the business, production, personnel, accounts and properties of an enterprise. In April 2009, the State Administration of Taxation issued a circular, known as 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. Although this circular only applies 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 State Administration of Taxation's general position on how the "de facto management body" test should be applied in determining the tax resident status of all offshore enterprises. According to Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions are located or maintained in the PRC; and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC.

We believe that HUHUTECH is not a PRC resident enterprise for PRC tax purposes. HUHUTECH is not controlled by a PRC enterprise or PRC enterprise group and we do not believe that HUHUTECH meets all of the conditions above. HUHUTECH is a company 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. For the same reasons, we believe our other entities outside of 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 uncertainties remain with respect to the interpretation of the term "de facto management body." There can be no assurance that the PRC government will ultimately take a view that is consistent with ours.

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If the PRC tax authorities determine that HUHUTECH is a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises, including the holders of the Ordinary Shares. In addition, non-resident enterprise shareholders (including the ordinary shareholders) may be subject to a 10% PRC tax on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated as sourced from within the PRC. It is unclear whether our non-PRC individual shareholders (including the ordinary shareholders) would be subject to any PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to such dividends or gains, it would generally apply at a rate of 20% (and such PRC tax may be withheld at source in the case of dividends). Any PRC income tax liability may be reduced under applicable tax treaties. However, it is unclear whether non-PRC shareholders of HUHUTECH would in practice be able to obtain the benefits of any tax treaties between their country of tax residence and the PRC in the event that HUHUTECH is treated as a PRC resident enterprise.

Provided that our Cayman Islands holding company, HUHUTECH, is not deemed to be a PRC resident enterprise, holders of the Ordinary Shares and Ordinary Shares who are not PRC residents will not be subject to PRC income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares or Ordinary Shares. However, under Bulletin 7 and Bulletin 37, where a non-resident enterprise conducts an "indirect transfer" by transferring taxable assets, including, in particular, equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, or the transferee, or the PRC entity which directly owns such taxable assets may report to the relevant tax authority such indirect transfer. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. However, sales of shares and Ordinary Shares by investors through a public stock exchange where such shares or Ordinary Shares are acquired on a public stock exchange are currently exempt from these indirect transfer rules under Bulletin 7 and Bulletin 37. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under Bulletin 7 and Bulletin 37, and we may be required to expend valuable resources to comply with Bulletin 7 and Bulletin 37, or to establish that we should not be taxed under these circulars. See "Risk Factors — Risks Related to Doing Business in the PRC — We face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies."

#### United States Federal Income Tax Considerations
The following discussion is a summary of U.S. federal income tax considerations generally applicable to the ownership and disposition of the Ordinary Shares by a U.S. Holder (as defined below) that acquires the Ordinary Shares in this offering and holds the Ordinary Shares as "capital assets" (generally, property held for investment) under the U.S. Internal Revenue Code of 1986, as amended, or the Code. This discussion is based upon existing U.S. federal tax law, which is subject to differing interpretations or change, possibly with retroactive effect. There can be no assurance that the U.S. Internal Revenue Service ("IRS") or a court will not take a contrary position. This discussion, moreover, does not address the U.S. federal estate, gift, Medicare, and alternative minimum tax considerations, or any state, local and non-U.S. tax considerations, relating to the ownership or disposition of the Ordinary Shares. The following summary does not address all aspects of U.S. federal income taxation that may be important to particular investors in light of their individual circumstances or to persons in special tax situations such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pension plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cooperatives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• real estate investment trusts;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• traders that elect to use a mark-to-market method of accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain former U.S. citizens or long-term residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt entities (including private foundations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• holders who acquire their Ordinary Shares pursuant to any employee share option or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors that will hold their Ordinary Shares as part of a straddle, hedge, conversion, constructive sale or other integrated transaction for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors that have a functional currency other than the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding their Ordinary Shares in connection with a trade or business conducted outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that actually or constructively own 10% or more of our stock (by vote or value); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities taxable as partnerships for U.S. federal income tax purposes, or persons holding the Ordinary Shares through such entities, all of whom may be subject to tax rules that differ significantly from those discussed below.

Each U.S. Holder is urged to consult its tax advisor regarding the application of U.S. federal taxation to its particular circumstances, and the state, local, non-U.S. and other tax considerations of the ownership and disposition of the Ordinary Shares.

#### General
For purposes of this discussion, a "U.S. Holder" is a beneficial owner of the ordinary that is, for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created in or organized under the law of the United States or any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a U.S. person under the Code.

If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) is a beneficial owner of the Ordinary Shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. Partnerships holding the Ordinary Shares and their partners are urged to consult their tax advisors regarding an investment in the Ordinary Shares.

For U.S. federal income tax purposes, a U.S. Holder of Ordinary Shares will generally be treated as the beneficial owner of the underlying shares represented by the Ordinary Shares. The remainder of this discussion assumes that a U.S. Holder of the Ordinary Shares will be treated in this manner. Accordingly, deposits or withdrawals of Ordinary Shares for Ordinary Shares will generally not be subject to U.S. federal income tax.

#### Passive Foreign Investment Company Considerations
A non-U.S. corporation, such as our company, will be a PFIC, for U.S. federal income tax purposes for any taxable year, if either (i) 75% or more of its gross income for such year consists of certain types of "passive" income or (ii) 50% or more of the value of its assets (generally determined on the basis of a quarterly average) during such year is attributable to assets that produce or are held for the production of passive income. For this purpose, cash

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and assets readily convertible into cash are generally categorized as a passive asset and the company's goodwill and other unbooked intangibles are taken into account. Passive income generally includes, among other things, dividends, interest, rents, royalties, and gains from the disposition of passive assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly, 25% or more (by value) of the stock.

After the restructure that was completed in March 2022, HUHU China is now an indirect subsidiary of the Company. Based upon our current and projected income and assets, including the expected proceeds from this offering, and projections as to the value of our assets (which are based on the expected market price of the Ordinary Shares immediately following this offering), we do not expect to be a PFIC for the current taxable year or the foreseeable future. However, no assurance can be given in this regard because the determination of whether we are or will become a PFIC is a factual determination made annually that will depend, in part, upon the composition of our income and assets. Fluctuations in the market price of the Ordinary Shares may cause us to be or become a PFIC for the current or future taxable years because the value of our assets for purposes of the asset test, including the value of our goodwill and unbooked intangibles, may be determined by reference to the market price of the Ordinary Shares from time to time (which may be volatile). In estimating the value of our goodwill and other unbooked intangibles, we have taken into account our anticipated market capitalization immediately following the close of this offering. 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 future taxable years. The composition of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk of being or becoming a PFIC may substantially increase. Because there are uncertainties in the application of the relevant rules, and because our PFIC status is an annual factual determination, there can be no assurance that we will not be a PFIC for the current taxable year or any future taxable year.

If we are a PFIC for any year during which a U.S. Holder holds the Ordinary Shares, we generally will continue to be treated as a PFIC for all succeeding years during which such U.S. Holder holds the Ordinary Shares.

The discussion below under "— Dividends" and "— Sale or Other Disposition" is written on the basis that we will not be or become a PFIC for U.S. federal income tax purposes. The U.S. federal income tax rules that apply generally if we are treated as a PFIC are discussed below under "— Passive Foreign Investment Company Rules."

*Dividends*

Any cash distributions paid on the Ordinary Shares (including the amount of any PRC tax withheld) out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles, will generally be includible in the gross income of a U.S. Holder as dividend income on the day actually or constructively received by the U.S. Holder, in the case of Ordinary Shares, in the case of Ordinary Shares. Because we do not intend to determine our earnings and profits on the basis of U.S. federal income tax principles, any distribution we pay will generally be treated as a "dividend" for U.S. federal income tax purposes. Dividends received on the Ordinary Shares will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from U.S. corporations.

Individuals and other non-corporate U.S. Holders will be subject to tax at the lower capital gain tax rate applicable to "qualified dividend income"; provided that certain conditions are satisfied, including that (1) the Ordinary Shares on which the dividends are paid are readily tradable on an established securities market in the United States, or, in the event that we are deemed to be a PRC resident enterprise under the PRC tax law, we are eligible for the benefit of the United States-PRC income tax treaty (the "Treaty"), (2) we are neither a PFIC nor treated as such with respect to a U.S. Holder (as discussed below) for the taxable year in which the dividend is paid and the preceding taxable year, and (3) certain holding period and other requirements are met. We intend to list the Ordinary Shares on the Nasdaq Stock Exchange. Provided that this listing is approved, we believe that the Ordinary Shares will generally be considered to be readily tradable on an established securities market in the United States. There can be no assurance that the Ordinary Shares will continue to be considered readily tradable on an established securities market in later years. Because the Ordinary Shares will not be listed on a U.S. exchange, we do not believe that dividends received with respect to Ordinary Shares that are not represented by Ordinary Shares will be treated as qualified dividends. Non-corporate U.S. Holders are urged to consult their tax advisors regarding the availability of the lower rate for dividends paid with respect to the Ordinary Shares.

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In the event that we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law (see "Taxation — People's Republic of China Taxation"), we may be eligible for the benefits of the Treaty. If we are eligible for such benefits, dividends we pay on our Ordinary Shares, regardless of whether such shares are represented by the Ordinary Shares, and regardless of whether the Ordinary Shares are readily tradable on an established securities market in the United States, would be eligible for the reduced rates of taxation described in the preceding paragraph, provided that certain holding period and other requirements are met and that we are neither a PFIC nor treated as such with respect to a U.S. Holder for the taxable year in which the dividend is paid and the preceding taxable year.

For U.S. foreign tax credit purposes, dividends paid on the Ordinary Shares generally will be treated as income from foreign sources and generally will constitute passive category income. In the event that we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law, a U.S. Holder may be subject to PRC withholding taxes on dividends paid on the Ordinary Shares (see "Taxation — People's Republic of China Taxation"). Depending on the U.S. Holder's particular facts and circumstances and subject to a number of complex conditions and limitations, PRC withholding taxes on dividends that are non-refundable under the Treaty may be treated as foreign taxes eligible for credit against a U.S. Holder's U.S. federal income tax liability. A U.S. Holder who does not elect to claim a foreign tax credit for foreign tax withheld may instead claim a deduction for U.S. federal income tax purposes, in respect of such withholding, but only for a year in which such holder elects to do so for all creditable foreign income taxes. The rules governing the foreign tax credit are complex and U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

#### Sale or Other Disposition
A U.S. Holder will generally recognize gain or loss upon the sale or other disposition of Ordinary Shares in an amount equal to the difference between the amount realized upon the disposition and the holder's adjusted tax basis in such Ordinary Shares. The gain or loss will generally be capital gain or loss. Any capital gain or loss will be long term if the Ordinary Shares have been held for more than one year. The deductibility of a capital loss may be subject to limitations. Any such gain or loss that the U.S. Holder recognizes will generally be treated as U.S. source income or loss for foreign tax credit limitation purposes, which may limit the availability of foreign tax credits. However, in the event we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law and PRC tax were to be imposed on any gain from the disposition of the Ordinary Shares, a U.S. Holder that is eligible for the benefits of the Treaty may elect to treat such gain as PRC source income. If a U.S. Holder is not eligible for the benefits of the Treaty or fails to make the election to treat any gain as foreign source, then such U.S. Holder may not be able to use the foreign tax credit arising from any PRC tax imposed on the disposition of the Ordinary Shares unless such credit can be applied (subject to applicable limitations) against United States federal income tax due on other income derived from foreign sources in the same income category (generally, the passive category). Each U.S. Holder is advised to consult its tax advisor regarding the tax consequences if a foreign tax is imposed on a disposition of the Ordinary Shares, including the availability of the foreign tax credit under its particular circumstances.

#### Passive Foreign Investment Company Rules
If we are a PFIC for any taxable year during which a U.S. Holder holds the Ordinary Shares, and unless the U.S. Holder makes a mark-to-market election (as described below), the U.S. Holder will generally be subject to special tax rules on (i) any excess distribution that we make to the U.S. Holder (which generally means any distribution paid during a taxable year to a U.S. Holder that is greater than 125 percent of the average annual distributions paid in the three preceding taxable years or, if shorter, the U.S. Holder's holding period for the Ordinary Shares), and (ii) any gain realized on the sale or other disposition including, under certain circumstances, a pledge, of Ordinary Shares. Under the PFIC rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the excess distribution or gain will be allocated ratably over the U.S. Holder's holding period for the Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount allocated to the current taxable year and any taxable years in the U.S. Holder's holding period prior to the first taxable year in which we are a PFIC (each, a "pre-PFIC year") will be taxable as ordinary income; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that year, increased by an additional tax equal to the interest on the resulting tax deemed deferred with respect to each such taxable year.

If we are a PFIC for any taxable year during which a U.S. Holder holds the Ordinary Shares, and any of our subsidiaries is also a PFIC (a "lower-tier PFIC"), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application of these rules. U.S. Holders are urged to consult their tax advisors regarding the application of the PFIC rules to any of our subsidiaries.

As an alternative to the foregoing rules, a U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election with respect to such stock. If a U.S. Holder makes this election with respect to the Ordinary Shares, the holder will generally (i) include as ordinary income for each taxable year that we are a PFIC the excess, if any, of the fair market value of Ordinary Shares held at the end of the taxable year over the adjusted tax basis of such Ordinary Shares and (ii) deduct as an ordinary loss the excess, if any, of the adjusted tax basis of the Ordinary Shares over the fair market value of such Ordinary Shares held at the end of the taxable year, but such deduction will only be allowed to the extent of the amount previously included in income as a result of the mark-to-market election. The U.S. Holder's adjusted tax basis in the Ordinary Shares would be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U.S. Holder makes a mark-to-market election in respect of the Ordinary Shares and we cease to be a PFIC, the holder will not be required to take into account the gain or loss described above during any period that we are not a PFIC. If a U.S. Holder makes a mark-to-market election, any gain such U.S. Holder recognizes upon the sale or other disposition of the Ordinary Shares in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as ordinary loss, but such loss will only be treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-market election.

The mark-to-market election is available only for "marketable stock," which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market, as defined in applicable United States Treasury regulations. We anticipate that the Ordinary Shares should qualify as being regularly traded, but no assurances may be given in this regard.

Because a mark-to-market election cannot technically be made for any lower-tier PFICs that we may own, a U.S. Holder may continue to be subject to the PFIC rules with respect to such U.S. Holder's indirect interest in any investments held by us that are treated as an equity interest in a PFIC for U.S. federal income tax purposes.

We do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs described above.

If a U.S. Holder owns the Ordinary Shares during any taxable year that we are a PFIC, the holder must generally file an annual IRS Form 8621. You should consult your tax advisor regarding the U.S. federal income tax consequences of owning and disposing of the Ordinary Shares if we are or become a PFIC.

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#### UNDERWRITING
We will enter into an underwriting agreement with Univest Securities, LLC, or the representative, to act as the representative of the underwriters named below. Subject to the terms and conditions of the underwriting agreement, the underwriters named below have agreed to purchase, and we have agreed to sell to them, the number of our Ordinary Shares at the initial public offering price, less the underwriting discounts, as set forth on the cover page of this prospectus and as indicated below:

---

| | |
|:---|:---|
|  **Name** | **Number of<br>Ordinary<br>Shares** |
|  Univest Securities, LLC |  |
|  **Total** |  |

---

The underwriters are offering the ordinary shares subject to their acceptance of the ordinary shares 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 ordinary shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the ordinary shares offered by this prospectus if any such shares are taken.

The underwriters will offer the ordinary shares to the public at the initial public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of 7% of the offering price per ordinary share. After this offering, the initial public offering price, concession and reallowance to dealers may be reduced by the representative. No such reduction shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

#### Discounts and Expenses
The underwriting discounts are equal to 7% of the initial public offering price.

The following table shows the price per share and total initial public offering price, underwriting discounts, and proceeds before expenses to us.

---

| | |
|:---|:---|
|  | **Per Share** |
|  Initial public offering price | $ |
|  Underwriting discounts to be paid by us | $ |
|  Proceeds to us, before expenses | $ |

---

We will also pay to the representative by deduction from the net proceeds of the offering contemplated herein, a non-accountable expense allowance equal to 1.0% of the gross proceeds received by us from the sale of the shares.

We have agreed to reimburse the representative up to a maximum of $250,000 for out-of-pocket accountable expenses (including the legal fees and other disbursements as disclosed below). We have paid an expense deposit of $50,000 to the underwriter upon the execution of the engagement letter (the Engagement Letter") between us and the underwriter dated February 15, 2022, and an additional $30,000 upon our first confidential filing to the SEC, for the underwriter's anticipated out-of-pocket accountable expenses. Any expenses advancement will be returned to us to the extent the representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).

We estimate that the total expenses of the offering payable by us, excluding the underwriting discounts and non-accountable expense allowance, will be approximately $.

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#### Right of First Refusal
We have also agreed to provide the representative the right of first refusal (the "Right of First Refusal"), exercisable at the sole discretion of the representative, for a period of eighteen months from the closing date of our initial public offering, to provide investment banking service to the Company on an exclusive basis, including acting as leading manager for any underwritten public offering, as exclusive placement agent for any private financing by the Company, and as financial advisor in connection with any merger, business combination, or sale of a majority or controlling portion of the equity or assets of the Company. The Right of First Refusal shall be subject to FINRA Rule 5110(g)(5), including that it may be terminated by the Company for cause, which shall be a breach by the representative of the Engagement Letter or a material failure by the underwriter to provide the services as contemplated by the Engagement Letter.

#### Representative's Warrants
In addition, we have agreed to issue the Underwriter Warrants to the representative, for a nominal consideration of $0.01, to purchase up to an aggregate number of ordinary shares equal to 5% of the total number of ordinary shares sold in this offering. Each such warrant evidencing the right to purchase one share of the ordinary shares being offered in this offering, and has an exercise price equal to 110% of the initial public offering price of the ordinary shares sold in this offering. The Underwriter Warrants shall be exercisable cashless for five years from the effective date of the registration statement of which this prospectus forms a part and will terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a part. The Underwriter Warrants and the underlying shares will be deemed compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule 5110(e)(1), and except as otherwise permitted by FINRA rules, neither the Underwriter Warrants nor any of our ordinary shares issued upon exercise of the Underwriter Warrants may 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 such securities by any person, for a period of 180 days beginning on the date of commencement of sales of the offering. The Underwriter Warrants and the underlying ordinary shares will be registered in the registration statement of which this prospectus forms a part. We agreed to maintain an effective registration statement on Form F-1 (or Form F-3, if we are eligible to use such form) until such date that is the earlier of the date when all of the ordinary shares underlying the representative's warrants have been publicly sold by holder of such warrants or such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such ordinary shares underlying the representative's warrants without registration.

We will bear all fees and expenses attendant to registering the ordinary shares underlying the Underwriter Warrants, other than any underwriting commissions incurred and payable by the warrant holders. The exercise price and number of ordinary shares issuable upon exercise of the Underwriter Warrants may be adjusted in certain circumstances, including in the event of a share dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The warrant exercise price and/or underlying shares may also be adjusted for issuances of ordinary shares at a price below the warrant exercise price.

#### Indemnification
We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments that the underwriters may be required to make in respect of those liabilities.

#### Observer's right
For the period of one year from the effective of the registration statement of which this prospectus forms a part, upon notice from the representative to the Company, the representative shall have the right to send a representative (who need not be the same individual from meeting to meeting) to observe each meeting of the board of directors of the Company; provided that such representative shall sign a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the representative and its counsel in connection with such representative's attendance at meetings of the board of directors of the Company; and provided further that upon written notice to the representative, the Company may exclude the representative from meetings where, in the written opinion of counsel for the Company, the representative's presence would destroy the attorney-client privilege. The Company agrees to give the representative written notice of each such meeting and to provide the

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representative with an agenda and minutes of the meeting no later than it gives such notice and provides such items to the other directors, and reimburse the representative for his or her reasonable out-of-pocket expenses incurred in connection with its attendance at the meeting, including but not limited to, food, lodging and transportation, as well fees or compensation not in excess of those received by other non-employee members of the board of directors of the Company.

#### Lock-Up Agreements
We have agreed, for a period of [\*] months from the date of this prospectus, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of, except in this offering, any of our Ordinary Shares or securities that are substantially similar to our Ordinary Shares, including but not limited to any options or warrants to purchase our Ordinary Shares, or any securities that are convertible into or exchangeable for, or that represent the right to receive, our Ordinary Shares or any such substantially similar securities (other than pursuant to employee stock 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 representative.

Our officers, directors and shareholders have agreed, subject to certain exceptions, to a [\*] lock-up period from the date of this prospectus, with respect to the Ordinary Shares that they beneficially own, including the issuance of shares upon the exercise of convertible securities and options that may be currently outstanding or which may be issued. This means that, for a period of twelve months following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these securities without the prior written consent of the representative or as otherwise agreed.

The representative has no present intention to waive or shorten the lock-up period; however, the terms of the lock-up agreements may be waived at its discretion. In determining whether to waive the terms of the lock-up agreements, the representative may base its decision on its assessment of the relative strengths of the securities markets and companies similar to ours in general, and the trading pattern of, and demand for, our securities in general.

#### Listing
We intend to apply to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "[\*]". We make no representation that such application will be approved or that our Ordinary Shares will trade on such market either now or at any time in the future. However, we will not complete this offering unless we are so listed.

#### Electronic Offer, Sale and Distribution
A prospectus in electronic format may be made available on websites or through other online services maintained by the underwriters or selling group members, if any, or by their affiliates, and the underwriters may distribute prospectus electronically. The underwriters may agree to allocate a number of Ordinary Shares to selling group members for sale to their online brokerage account holders. The Ordinary Shares to be sold pursuant to internet distributions will be allocated on the same basis as other allocations. Other than the prospectus in electronic format, the information on, or that can be accessed through, these websites and any information contained in any other website maintained by these entities is not part of, and is not incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters, and should not be relied upon by investors.

In connection with this offering, certain of the underwriters or securities dealers may distribute prospectuses by electronic means, such as e-mail.

#### Passive Market Making
Any underwriter who is a qualified market maker on Nasdaq may engage in passive market making transactions on Nasdaq, in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. Passive market makers must comply with applicable volume and price limitations and must be identified as a

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passive market maker. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security. If all independent bids are lowered below the passive market maker's bid, however, the passive market maker's bid must then be lowered when certain purchase limits are exceeded.

#### Pricing of this Offering
Prior to this offering, there has been no public market for our Ordinary Shares. The initial public offering price for our Ordinary Shares will be determined through negotiations between us and the representative. Among 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 our Ordinary Shares in this offering does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of our company.

#### Potential Conflicts of Interest
The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their 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 their own accounts and for the accounts of their customers and such investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their 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.

#### No Sales of Similar Securities
We have agreed not to offer, pledge, announce the intention to sell, 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 or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares or enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of our Ordinary Shares, whether any such transaction is to be settled by delivery of Ordinary Shares or such other securities, in cash or otherwise, without the prior written consent of the representative, for a period of [\*] days from the date of this prospectus.

#### Selling Restrictions
Other than in the United States, no action may be taken, and no action has been taken, by us or the underwriters that would permit a public offering of the Ordinary Shares offered by, or the possession, circulation or distribution of, this prospectus in any jurisdiction where action for that purpose is required. The Ordinary Shares 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 shares 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 Ordinary Shares offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

In addition to the offering of the Ordinary Shares in the United States, the underwriters may, subject to applicable foreign laws, also offer the Ordinary Shares in certain countries.

#### Stamp Taxes
If you purchase Ordinary Shares offered by this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the initial public offering price listed on the cover page of this prospectus.

[**Table of Contents**](#TOC001)

#### Price Stabilization, Short Positions and Penalty Bids
Until the distribution of the Ordinary Shares offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase our Ordinary Shares. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act that are intended to stabilize, maintain or otherwise affect the price of our Ordinary Shares. The underwriters may engage in over-allotment sales, if applicable, syndicate covering transactions, stabilizing transactions and penalty bids in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions consist of bids or purchases made by the managing underwriter for the purpose of preventing or slowing a decline in the market price of our securities while this offering is in progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Short sales and over-allotments occur when the managing underwriter, on behalf of the underwriting syndicate, sells more of our shares than they purchase from us in this offering. In order to cover the resulting short position, the managing underwriter may exercise the over-allotment option described above and/or may engage in syndicate covering transactions. There is no contractual limit on the size of any syndicate covering transaction. The underwriters will deliver a prospectus in connection with any such short sales. Purchasers of shares sold short by the underwriters are entitled to the same remedies under the federal securities laws as any other purchaser of units covered by the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions are bids for or purchases of our securities on the open market by the managing underwriter on behalf of the underwriters in order to reduce a short position incurred by the managing underwriter on behalf of the underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A penalty bid is an arrangement permitting the managing underwriter to reclaim the selling concession that would otherwise accrue to an underwriter if the Ordinary Shares originally sold by the underwriter were later repurchased by the managing underwriter and therefore were not effectively sold to the public by such underwriter.

Stabilization, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Ordinary Shares or preventing or delaying a decline in the market price of our Ordinary Shares. As a result, the price of our Ordinary Shares may be higher than the price that might otherwise exist in the open market.

Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the prices of our Ordinary Shares. These transactions may occur on Nasdaq or on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.

#### Notice to Prospective Investors in Hong Kong
The contents of this prospectus have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice. Please note that (i) our shares may not be offered or sold in Hong Kong, by means of this prospectus or any document other than to "professional investors" within the meaning of Part I of Schedule 1 of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) (SFO) and any rules made thereunder, or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32, Laws of Hong Kong) (CO) or which do not constitute an offer or invitation to the public for the purpose of the CO or the SFO, and (ii) no advertisement, invitation or document relating to our shares 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 securities laws of Hong Kong) other than with respect to the shares 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 SFO and any rules made thereunder.

[**Table of Contents**](#TOC001)

#### Notice to Prospective Investors in the People's Republic of China
This prospectus may not be circulated or distributed in the PRC and the shares may not be offered or sold, and will not offer or sell to any person for re-offering or resale directly or indirectly to any resident of the PRC except pursuant to applicable laws, rules and regulations of the PRC. For the purpose of this paragraph only, the PRC does not include Taiwan and the special administrative regions of Hong Kong and Macau.

#### Notice to Prospective Investors in Taiwan, the Republic of China
The Ordinary Shares have not been and will not be registered with the Financial Supervisory Commission of Taiwan, the Republic of China, pursuant to relevant securities laws and regulations and may not be offered or sold in Taiwan through a public offering or in any manner which would constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or would otherwise require registration with or the approval of the Financial Supervisory Commission of Taiwan.

#### Notice to Prospective Investors in the Cayman Islands
This prospectus does not constitute an invitation or offer to the public in the Cayman Islands of the Ordinary Shares, whether by way of sale or subscription. The underwriters have not offered or sold, and will not offer or sell, directly or indirectly, any Ordinary Shares in the Cayman Islands.

[**Table of Contents**](#TOC001)

#### EXPENSES RELATED TO THIS OFFERING
Set forth below is an itemization of the total expenses, excluding underwriting discount, accountable expenses and non-accountable expenses, that we expect to incur in connection with this offering. With the exception of the SEC registration fee, the Financial Industry Regulatory Authority, or FINRA, filing fee, and the stock exchange market entry and listing fee, all amounts are estimates.

---

| | |
|:---|:---|
|  SEC Registration Fee | $|
|  FINRA Fee |  |
|  Stock Exchange Market Entry and Listing Fee |  |
|  Printing and Engraving Expenses |  |
|  Legal Fees and Expenses |  |
|  Accounting Fees and Expenses |  |
|  **Total** | $|

---

[**Table of Contents**](#TOC001)

#### LEGAL MATTERS
We are being represented by Ortoli Rosenstadt LLP with respect to certain legal matters of U.S. federal securities and New York state law. The validity of the Ordinary Shares offered in this offering and other certain legal matters as to Cayman Islands law will be passed upon for us by . Legal matters as to PRC law will be passed upon for us by Jiangsu Junjin law Firm and for the underwriters by King & Wood Mallesons, Chengdu Office. Ortoli Rosenstadt LLP may rely upon with respect to matters governed by Cayman Islands law and Jiangsu Junjin Law Firm with respect to matters governed by PRC law. Our Underwriter, Univest Securities LLC is represented by King & Wood Mallesons LLP with respect to certain legal matters of U.S. federal securities and New York state law.

#### EXPERTS
The consolidated financial statements for the years ended December 31, 2021 and 2020, included in this Registration Statement have been so included in reliance on the report of Wei, Wei & Co., LLP, an independent registered public accounting firm, given on the authority of said firm in auditing and accounting. The office of Wei, Wei & Co., LLP is located at 13310 39<sup>th</sup> Avenue, Flushing, New York, 11354.

#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed a registration statement, including relevant exhibits, with the SEC on Form F-1 under the Securities Act with respect to the underlying Ordinary Shares represented by the Ordinary Shares to be sold in this offering. This prospectus, which constitutes a part of the registration statement on Form F-1, does not contain all of the information contained in the registration statement. You should read our registration statements and their exhibits and schedules for further information with respect to us and the Ordinary Shares.

Immediately upon the effectiveness of the registration statement on Form F-1 of which this prospectus forms a part, we will become 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* or inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

---

| | |
|:---|:---|
|  | **Page** |
|  **Consolidated Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm (PCAOB ID: 2388)](#T100) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2021 and 2020](#T101) | F-3 |
|  [Consolidated Statements of Income and Comprehensive Income for the Years Ended December 31, 2021 and 2020](#T102) | F-4 |
|  [Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2021 and 2020](#T103) | F-5 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020](#T104) | F-6 |
|  [Notes to Consolidated Financial Statements](#T105) | F-7 – F-27 |
|  [Condensed Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021](#T1106) | F-28 |
|  [Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income for the Six Months Ended June 30, 2022 and 2021](#T1107) | F-29 |
|  [Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2022 and 2021](#T1108) | F-30 |
|  [Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021](#T1109) | F-31 |
|  [Notes to Unaudited Interim Condensed Consolidated Financial Statements](#T1110) | F-32 – F-51 |

---

[**Table of Contents**](#TOC001)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br> To the Board of Directors and Shareholders of <br>HUHUTECH International Group Inc. <br> **Opinion on the Financial Statements** <br> We have audited the accompanying consolidated balance sheets of HUHUTECH International Group Inc. and Subsidiaries (the "Company") as of December 31, 2021 and 2020, and the related consolidated statements of income and comprehensive income, changes in shareholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2021, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. <br> **Basis for Opinion** <br> These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated 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. <br> We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated 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. <br> Our audits included performing procedures to assess the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. <br> */s/ Wei, Wei & Co., LLP* <br> We have served as the Company's auditor since 2022. <br> Flushing, New York <br>October 21, 2022<br>

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
|  **ASSETS** |  |  |
|  **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $75059 | $155240 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 536456 | 482797 |
| &nbsp;&nbsp;&nbsp; Notes receivable |  | 147966 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 5177611 | 1503107 |
| &nbsp;&nbsp;&nbsp; Inventories | 540652 | 355007 |
| &nbsp;&nbsp;&nbsp; Advance to vendors, net | 95778 | 60562 |
| &nbsp;&nbsp;&nbsp; Prepayments and other assets, net | 59531 | 24827 |
| &nbsp;&nbsp;&nbsp; Due from related party | 1569 |  |
|  **TOTAL CURRENT ASSETS** | 6486656 | 2729506 |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 552299 | 583798 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 229294 | 27 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets | 111952 | 302388 |
| &nbsp;&nbsp;&nbsp; Deferred offering costs | 448560 |  |
| &nbsp;&nbsp;&nbsp; Right-of-use assets | 53820 | 4082 |
|  **TOTAL ASSETS** | $**7882581** | $**3619801** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
|  **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Short term bank loan | $1051376 | $459770 |
| &nbsp;&nbsp;&nbsp; Notes payable | 114937 |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | 2582848 | 798022 |
| &nbsp;&nbsp;&nbsp; Due to related party | 637007 | 638702 |
| &nbsp;&nbsp;&nbsp; Advance from customers | 61168 | 409519 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities  | 435476 | 327841 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 88944 | 1227 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – current | 14685 | 1697 |
|  **TOTAL CURRENT LIABILITIES** | 4986441 | 2636778 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – non-current | 35283 | 2231 |
|  **TOTAL LIABILITIES** | 5021724 | 2639009 |
|  **COMMITMENTS AND CONTINGENCIES** |  |  |
|  **SHAREHOLDERS' EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary shares, $0.00001 par value, 5,000,000,000 shares authorized, 5,000,000 shares issued and outstanding as of December 31, 2021 and 2020\* | 50 | 50 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1738179 | 1277138 |
| &nbsp;&nbsp;&nbsp; Statutory reserves  | 99850 |  |
| &nbsp;&nbsp;&nbsp; Retained earnings (deficit)  | 937660 | (331532) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 85118 | 35136 |
|  **TOTAL SHAREHOLDERS' EQUITY** | **2860857** | **980792** |
|  **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**7882581** | $**3619801** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2021** | **2020** |
|  **Revenues** | $10156441 | $4484984 |
|  **Cost of revenues** | 7094422 | 2391781 |
|  **Gross profit** | **3062019** | **2093203** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 271071 | 45962 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 689143 | 469843 |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 677580 | 182282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 1637794 | 698087 |
|  **Income from operations** | **1424225** | **1395116** |
|  **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 8071 | 620 |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (35007) | (15630) |
| &nbsp;&nbsp;&nbsp; Other income, net | 224358 | 603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 197422 | (14407) |
|  **Income before income taxes** | **1621647** | **1380709** |
|  Provision for income taxes | 252605 | 316239 |
|  **Net income** | **1369042** | **1064470** |
|  **Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 49982 | 52568 |
|  **Comprehensive income** | $**1419024** | $**1117038** |
|  **Earnings per share\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | $0.27 | $0.21 |
|  **Weighted average number of shares outstanding\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | 5000000 | 5000000 |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **<br>Ordinary shares** | **<br>Ordinary shares** | **Additional<br>paid-in<br> capital** | **Statutory<br>reserves** | **Retained<br>earnings<br>(deficit)** | **Accumulated other<br>comprehensive<br>income (loss)** | **Total<br>shareholders'<br>equity (deficit)** |
|  | **Shares\*** | **Amount** | **Additional<br>paid-in<br> capital** | **Statutory<br>reserves** | **Retained<br>earnings<br>(deficit)** | **Accumulated other<br>comprehensive<br>income (loss)** | **Total<br>shareholders'<br>equity (deficit)** |
|  **Balance at December 31, 2019** | **5000000** | $**50** | $**1163502** | $**—** | $**(1396002)** | $**(17432)** | $**(249882)** |
| &nbsp;&nbsp;&nbsp; Capital contribution |  |  | 113636 |  |  |  | 113636 |
| &nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 1064470 |  | 1064470 |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  |  |  |  |  | 52568 | 52568 |
|  **Balance at December 31, 2020** | **5000000** | **50** | **1277138** | **—** | **(331532)** | **35136** | **980792** |
| &nbsp;&nbsp;&nbsp; Capital contribution |  |  | 461041 |  |  |  | 461041 |
| &nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 1369042 |  | 1369042 |
| &nbsp;&nbsp;&nbsp; Statutory reserves appropriation |  |  |  | 99850 | (99850) |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  |  |  |  |  | 49982 | 49982 |
|  **Balance at December 31, 2021** | **5000000** | $**50** | $**1738179** | $**99850** | $**937660** | $**85118** | $**2860857** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2021** | **2020** |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $1369042 | $1064470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 102277 | 32072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in provision for doubtful accounts |  | 82838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery of provision for doubtful accounts | (1319) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | 195272 | 312104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of operating lease right-of-use assets | 4813 | 9166 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (3592713) | 1697049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes receivable | 149668 | (139839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (175007) | (138343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other assets | (34113) | 28050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance to vendors | (33358) | 16802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1744336 | (3130405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 98585 | 136495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance from customers | (353803) | (82496) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes payable | 86625 | (1445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases liabilities | (8463) | (9311) |
|  **Net cash (used in) operating activities** | **(448158)** | **(122793)** |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Additions to property, plant, and equipment | (42024) | (524994) |
| &nbsp;&nbsp;&nbsp; Acquisition of intangible asset | (241830) |  |
|  **Net cash (used in) investing activities** | **(283854)** | **(524994)** |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Loans from related parties |  | 589138 |
| &nbsp;&nbsp;&nbsp; Payments to related parties | (18314) |  |
| &nbsp;&nbsp;&nbsp; Capital contributions | 465059 | 114423 |
| &nbsp;&nbsp;&nbsp; Proceeds from bank acceptance notes payable, net of repayments | 113543 |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short-term bank loans | 1038631 | 434518 |
| &nbsp;&nbsp;&nbsp; Repayment of short-term bank loans | (465059) |  |
| &nbsp;&nbsp;&nbsp; Payment of offering costs | (443122) |  |
|  **Net cash provided by financing activities** | **690738** | **1138079** |
|  **Effect of exchange rate changes on cash and restricted cash** | **14752** | **96800** |
|  **Net (decrease) increase in cash and restricted cash** | **(26522)** | **587092** |
|  **Cash, cash equivalents and restricted cash at the beginning of year** | **638037** | **50945** |
|  **Cash, cash equivalents and restricted cash at the end of year** | $**611515** | $**638037** |
|  **Reconciliation of cash, cash equivalents and restricted cash, end of year** |  |  |
|  **Cash and cash equivalents** | $75059 | $155240 |
|  **Restricted cash** | 536456 | 482797 |
|  **Cash, cash equivalents and restricted cash at the end of year** | $**611515** | $**638037** |
|  **Supplemental cash flow disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for income tax | $34163 | $24336 |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $30308 | $18576 |
|  **Non-cash investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Right-of-assets obtained in exchange for operating lease obligations | $53852 | $4888 |

---

The accompanying notes are an integral part of these consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION
HUHUTECH International Group Inc. ("HUHUTECH" or the "Company") is a holding company incorporated under the laws of the Cayman Islands on July 8, 2021. HUHUTECH, through its wholly-owned subsidiaries is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for the optoelectronic, semiconductor, telecom and logistic industries in the People's Republic of China ("China" or "PRC").

#### Reorganization
A Reorganization of the legal structure was completed on January 14, 2022. The Reorganization involved the incorporations of HUHUTECH International Group Inc., a Cayman Islands holding company; HUHUTECH (HK) Limited ("HUHU HK"), a holding company established in Hong Kong, PRC; Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE"), a company established in the PRC; and the transfer of Jiangsu Huhu Electromechanical Technology Co., Ltd ("HUHU China"), a company established in the PRC, to WFOE.

Before and after the Reorganization, the Company, together with its subsidiaries, are effectively controlled by the same shareholder, who is the Chief Executive Officer ("CEO") and the Chairman of the Board of Directors of the Company, 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.

Upon the reorganization, the Company has subsidiaries in countries and jurisdictions in Hong Kong, China and the PRC. Details of the subsidiaries of the Company as of December 31, 2021 were set out below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Entity** | **Date of <br>Incorporation** | **Jurisdiction of <br>Formation** | **Percentage of <br>Ownership** | **Principal Activities** |
|  HUHUTECH (HK) Limited ("HUHU HK") | July 28, 2021 | Hong Kong, PRC | 100% by HUHU | Investment holding |
|  Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE") | December 10, 2021 | PRC | 100% by HUHU HK | System integration and engineering services |
|  Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") | August 20, 2015 | PRC | 100% by WFOE | System integration and engineering services |

---

#### 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") pursuant to the rules and regulations of the Securities Exchange Commission ("SEC").

#### Principles of consolidation
The accompanying consolidated financial statements include the financial statements of HUHUTECH International Group Inc. and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Uses of estimates
In preparing the consolidated financial statements in conformity with U.S. 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 consolidated 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 and are adjusted to reflect actual experience when necessary. Significant estimates required to be made by management include, but are not limited to allowance for doubtful accounts, allowance for inventories obsolescence, the useful lives of property and equipment, revenue recognition and the realization of deferred tax assets. Actual results could differ from those estimates.

#### Cash
Cash comprises cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by FSD were $Nil and $55,331 as of December 31, 2021 and 2020, respectively.

#### Restricted cash
Restricted cash consists of cash and cash equivalents which used as collateral to secure note payable and used as guarantee deposit to secure the performance guarantee bank acceptance. A note payable is a draft issued by a bank for payments in future, which defers the payment until the due date for redeeming the note. According to the notes payable agreement with the bank, 50% to 100% of the amount is required to be deposited at the bank as security for the notes payable. Guarantee deposit is the deposit in bank to secure the performance guarantee bank acceptance issued by the bank. The performance guarantee bank acceptance is required by the Company's customer for certain project as a guarantee to fulfill the contract. The security deposit for notes payable and performance guarantee bank acceptance amounted to $112,701 and $423,755, respectively, as of December 31, 2021. The security deposit for performance guarantee bank acceptance amounted to $482,797 as of December 31, 2020. The Company earns interest at a variable rate per month on this restricted cash balance.

#### Notes receivable
Notes receivable consisted of bank acceptance notes of $nil and $147,966 provided by the Company's customers as of December 31, 2021 and 2020, respectively. These non-interest-bearing notes with no more than 6 months maturity dates were issued or endorsed by the Company's customers to repay their payable balance due to the Company and these notes were guaranteed by the customers' banks.

#### Accounts receivable, net
Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for doubtful accounts amounted to $419,509 and $411,427 as of December 31, 2021 and 2020, respectively.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Inventories
Inventories are stated at the lower of cost or net realizable value. Costs include purchase price and related shipping costs. 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 an inventory valuation allowance. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products.

#### Advances to vendors
Advance to vendors consists of balances paid to suppliers for services and materials that have not been provided or received. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. In addition, at each reporting date, the Company determines the adequacy of the allowance by evaluating all available information, and then records specific allowances for those advances based on the available facts and circumstances. As of December 31, 2021 and 2020, the allowance for uncollectible advances to vendors was nil.

#### Prepayments and other assets, net
Prepayments and other assets primarily consist of prepaid rents and advances to employees, which are presented net of allowance for doubtful accounts. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company 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. Prepayment and other assets are written off against the allowances only after exhaustive collection efforts. Allowance for uncollectible balances amounted to $28,299 and $27,226 as of December 31, 2021 and 2020, respectively.

#### Property and equipment, net
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight-line method, as follows:

---

| | |
|:---|:---|
|  | **Useful life** |
|  Office equipment | 3 – 5 years |
|  Transportation equipment | 4 years |
|  Building | 20 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 other comprehensive income in other income or expenses.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Intangible assets
Intangible assets consist primarily of the Type Class A license in construction and computer software. Type Class A license in construction is valid for five years and subject to renewal. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method.

<u> License </u>   <u> 5 years </u> <br> <u> Computer software </u>   <u> 3 years </u>

#### Impairment of long-lived assets
Long-lived assets, including property and equipment and intangible assets with finite lives, are evaluated 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 may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2021 and 2020, respectively.

#### Deferred offering costs
Deferred offering costs were expenses directly related to the Company's planned initial public offering ("IPO"). These costs consisted of legal, accounting, printing, and filing fees that the Company capitalized, including fees incurred by the independent registered public accounting firm directly related to the offering. The deferred offering costs will offset against the IPO proceeds and will be reclassified to additional paid-in capital upon completion of the IPO.

#### Notes payable
Notes payable are bank acceptance notes issued by financial institutions on the Company's behalf to vendors with a specific due date usually for a period of within 6 months. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before maturity date.

As collateral security for financial institutions' undertakings, the Company 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. As of December 31, 2021, the Company deposited total $112,701 (RMB 718,200) as collateral to secure and issue eight bank acceptance notes of $114,937 (RMB 732,445) to its vendors with maturity period of six months. As of May 31, 2022 the notes were fully paid upon maturity and the restricted deposit was also released upon the payment. The Company did not have notes payable as of December 31, 2020.

#### Fair value of financial instruments
U.S. GAAP 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company's financial instruments, including cash, accounts receivable, notes receivable, advances to vendors, prepayments and other assets, accounts payable, accrued expenses and other liabilities, advances from customers, notes payable, due to related parties and bank loans, approximates their recorded values due to their short-term maturities. The Company determined that the carrying value of the Short-term bank loans approximated their fair value by comparing the stated loan interest rate to the rate charged by similar financial institutions.

#### Revenue recognition
The Company adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606") on January 1, 2019 using the modified retrospective approach. Revenues were presented under ASC 606 and all subsequent ASUs that modified ASC 606 for the years ended December 31, 2021 and 2020. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps:

Step 1: Identify the contract (s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company derives its revenues primarily from three sources: (1) system integration projects; (2) product sales; (3) engineering consulting services. All of the Company's contracts with customers do not contain cancellable and refund-type provisions.

Revenue from system integration projects

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. These contracts require the Company to perform customized services of project planning, system coding, installation of hardware and equipment, and configuration based on the customers' specific needs which requires significant customization. Upon delivery of the services and equipment, customer acceptance is generally required. In the same contract, the Company is required to provide a warranty period for one to two years ("warranty period") after the customized project is delivered with a 3% – 10% holdback of the total contract price ("contract holdback") which is to be paid after the end of warranty period. The Company determined the warranty clause included in the contractual term is directly related to the quality of the Company's integration projects and there are no specific tasks to be performed during the warranty period, and therefore, consider it an assurance-type warranty. The warranty is not considered a separate performance obligation and no revenue is associated with these services under ASC 606. Because of the nature of the projects, and the contract owners perform inspection during the project and prior to acceptance, the Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Revenue is recognized over the contract term using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

The cost estimation process is based upon the professional knowledge and experience of the Company's engineers, project managers and financial professionals. Management conducts monthly reviews to assess the contract's schedule, performance, technical matters and estimated cost at completion. When changes in estimated contract costs are identified, such revisions may result in current period adjustments to operations applicable to performance in prior periods.

Revenue from product sales

The Company generates revenue primarily through the sale and delivery of promised goods to customers and recognizes revenue when control is transferred to customers, which typically occurs upon customer acceptance, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services and is recorded net of value-added tax ("VAT"). The Company's contracts with customers are primarily on a fixed-price basis and do not contain cancellable and refund-type provisions.

The Company generally provides a one-year warranty against defects in materials related to the sale of products. The Company considerers the warranty as an assurance type warranty since the warranty provides the customer the assurance that the product complies with agreed-upon specifications. Estimated future warranty obligations are included in cost of product sales in the period in which the related revenue is recognized. The determination of the Company's warranty accrual is based on actual historical experience with the product, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

Revenue from engineering consulting services

Revenues generated from engineering consulting services are recognized upon the delivery of the engineering report as the Company's performance obligations are satisfied. Expenses related to these types of services are recognized as incurred.

#### Contract balances
Accounts receivable represent amounts invoiced and revenues recognized prior to invoicing when the Company has satisfied the Company's performance obligation and has the unconditional rights to payment. The balances of accounts receivable, net of allowance for doubtful accounts were $5,177,611 and $1,503,107 as of December 31, 2021 and 2020, respectively. Unearned revenues consist of payments received from customers related to unsatisfied performance obligations at the end of the period, and included in advance from customers in the Company's consolidated balance sheets with the balance of $61,168 and $409,519 as of December 31, 2021 and 2020, respectively. All unsatisfied performance obligation will be performed within the next twelve months and no significant financing component is involved. There is no significant financing component in the Company's revenue arrangement because the Company's expected length of time between the payment and when the Company transfers the promised services is less than 12 months. For the portion of security deposit with more than 12 months is measured at present value at the reporting date by its primary borrowing rate. The impact of discounted interest expenses is not material for the years ended December 31, 2021 and 2020.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Disaggregation of revenues
For the years ended December 31, 2021 and 2020, the disaggregation of revenues by major revenue stream is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended<br> December 31,** | **For the years ended<br> December 31,** |
|  | **2021** | **2020** |
|  System integration projects | $10007968 | $3518932 |
|  Product sales | 43161 | 232504 |
|  Engineering consulting services | 105312 | 733548 |
|  Total | $10156441 | $4484984 |

---

#### Research and development costs
Research and development activities are directed toward the development of cleaning control system, ultrapure water control system, gas detection system, and temperature automatic control system used in the semiconductor manufacturing process. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred.

#### Operating leases
A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases.

#### Value added tax ("VAT")
Revenue represents the invoiced value of goods and services, net of VAT. The VAT is based on gross sales price and VAT rates range from 6% to 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company's subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Government grants
Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of income and comprehensive income upon receipt and all conditions attached to the grants are fulfilled. For the years ended December 31, 2021 and 2020, the Company received $248,301 and $2,412 of government grants for various research programs. The benefit of these government grants on net income per share (basic and diluted) was $nil, $0.05 and $0.00 for the years ended December 31, 2021 and 2020, respectively.

#### Income taxes
The Company accounts for 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.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
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 for the years ended December 31, 2021 and 2020. All of the tax returns of the Company's subsidiaries in the PRC 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 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the 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, 2021 and 2020, there were no dilutive shares. For the years ended December 31, 2021 and 2020, earnings per share amounted to $0.27 and $0.21, respectively.

#### Foreign currency translation
The functional currencies of the Company are the local currency of the county in which the subsidiaries operate. The Company's consolidated financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect on that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component in accumulated other comprehensive income included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.

Since the Company operates primarily in the PRC, the Company's functional currency is the Chinese Yuan ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency of U.S. Dollars ("US$"). The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in the translation.

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

---

| | | |
|:---|:---|:---|
|  | **For the Year<br>Ended<br>December 31,<br>2021** | **For the Year<br>Ended<br>December 31,<br>2020** |
|  **Period Ended RMB: USD exchange rate** | 6.3726 | 6.5250 |
|  **Period Average RMB: USD exchange rate** | 6.4508 | 6.9042 |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Comprehensive income (loss)
Comprehensive income (loss) consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustments resulting from the Company not using US$ as its functional currency.

#### Risks and uncertainties
Beginning in late 2019, an outbreak of a novel strain of coronavirus (COVID-19) first emerged in China and has spread globally. In March 2020, the World Health Organization ("WHO") declared the COVID-19 as a pandemic. Governments in affected countries are imposing travel bans, quarantines and other emergency public health measures, which have caused material disruption to businesses globally resulting in an economic slowdown. Due to the fact that the COVID-19 coronavirus outbreak appears to be gradually contained in China, the Company's production and sales activities have been gradually returning to normal in fiscal 2021 and 2022. In addition, there is hiking market demand of semiconductor because of the global shortage caused by economic recovery after the pandemic. As the result, the Company revenues increased approximately 35% as compared to the fiscal 2020. However, there is still significant uncertainty regarding the possibility of new wave of infections caused by new variant, the breadth and duration of business disruptions due to the new waves could continue to have material impact to the Company's operations.

#### Segment reporting
In accordance with ASC Topic 280, Segment Reporting, the Company's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer. The Company's CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business in PRC China as a single segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented.

#### Concentrations of risks
(a) Concentration of credit risk

Assets that potentially subject the Company 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 as at the balance sheet dates. As of December 31, 2021 and 2020, the aggregate amount of cash of $69,267 and $154,644 respectively, was held at major financial institutions in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts that was not covered by FSD were $Nil and $55,331 as of December 31, 2022 and 2021, respectively. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. 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.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(b) Significant customers

For the year ended December 31, 2021, three customers accounted for 28.6%,13.3% and 10.6% of total revenues. For the year ended December 31, 2020, two customers accounted for 34.6% and 30.6% of total revenues. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable. As of December 31, 2020, three customers accounted for 33.1%, 28.1% and 21.1% of total accounts receivable.

(c) Significant suppliers

For the year ended December 31, 2021, no supplier accounted for more than 10% of total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% of total purchases. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of total accounts payable, respectively.

(d) Foreign currency risk

A majority of the Company's transactions are denominated in RMB and a significant portion of the Company and its subsidiaries' 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 the Company 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.

The Company's functional currency is the RMB, and the Company's financial statements are presented in U.S. dollars. 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. dollars 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. dollars for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollars against RMB would have a negative effect on the U.S. dollar amount available to the Company.

#### Recent accounting pronouncements
The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases, including operating leases, with a term in excess of 12 months. The guidance also expands the quantitative and qualitative disclosure requirements. In July 2018, the FASB issued updates to the lease standard making transition requirements less burdensome. The update provides an option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the company's financial statements. The new guidance requires the lessee to record operating leases on the balance sheet with a right-of-use asset and corresponding liability for future

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
payment obligations. FASB further issued ASU 2018-11 "Target Improvement" and ASU 2018-20 "Narrow-scope Improvements for Lessors." In June 2020, the FASB issued ASU No. 2020-05, "Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities" ("ASU 2020-05") in response to the ongoing impacts to businesses in response to the coronavirus (COVID-19) pandemic. ASU 2020-05 provides a limited deferral of the effective dates for implementing previously issued ASU 842 to give some relief to businesses and the difficulties they are facing during the pandemic. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 3 — ACCOUNTS RECEIVABLE, NET

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Accounts receivable from third-party customers | $5597120 | $1914534 |
|  Less: allowance for doubtful accounts | (419509) | (411427) |
|  Account receivable, net | $5177611 | $1503107 |

---

Allowance for doubtful accounts movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Beginning balance | $411427 | $303602 |
|  Provision |  | 82695 |
|  Reduction | (1737) |  |
|  Foreign currency translation adjustments | 9819 | 25130 |
|  Ending balance | $419509 | $411427 |

---

Approximately $4.3 million or 76.2% of the account receivable balance as of December 31, 2021 has been collected as of August 31, 2022.

#### NOTE 4 — INVENTORIES
Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Materials | $540652 | $355007 |

---

The Company records the value of its inventory using the lower of cost or net realizable value, cost is calculated on the weighted average method. No inventory reserve was recorded as of December 31, 2021 and 2020.

#### NOTE 5 — ADVANCE TO VENDORS
Advance to vendors consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Prepayments for technical service and materials | $95778 | $60562 |

---

#### NOTE 6 — PREPAYMENTS AND OTHER ASSETS , NET
Prepayments and other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Prepaid rents | $28111 | $6146 |
|  Prepaid expense | 59719 | 45907 |
|  Less: allowance for uncollectible balances | (28299) | (27226) |
|  Prepayments and other current assets; net | $59531 | $24827 |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 7 — PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Building | $366034 | $357484 |
|  Office equipment | 69933 | 56636 |
|  Transportation equipment | 286208 | 249641 |
|  Subtotal | 722175 | 663761 |
|  Less: accumulated depreciation | (169876) | (79963) |
|  Property and equipment, net | $552299 | $583798 |

---

Depreciation expense for the years ended December 31, 2021 and 2020 amounted to $86,934 and $31,719, respectively.

#### NOTE 8 — INTANGIBLE ASSETS, NET
The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $15,343 and $353 for the years ended December 31, 2021 and 2020, respectively.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  License | $244798 | $— |
|  Computer software | 805 | 786 |
|  Less: accumulated amortization | (16309) | (759) |
|  Intangible assets, net | $229294 | $27 |

---

The estimated future amortization expenses are as follows:

---

| | |
|:---|:---|
|  **Years ending December 31,** | **Estimated Amortization Expense** |
| 2022 | $48366 |
| 2023 | 48366 |
| 2024 | 48366 |
| 2025 | 48366 |
| 2026 | 35830 |
|  Total | $229294 |

---

#### NOTE 9 — LEASES
The Company has several operating leases for manufacturing facilities and offices. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2020, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated retained earnings as of December 31, 2020. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 9 — LEASES (cont.)
On January 1, 2020, the ROU assets and related lease liabilities recognized were $8,069 and $8,069, respectively. Total lease expense amounted to $9,378 for the year ended December 31, 2020, which included $212 interest and $9,166 amortization expenses of ROU assets. Total lease expense amounted to $5,510 for the year ended December 31, 2021, which included $697 interest and $4,813 amortization expenses of ROU assets. Total cash paid for operating leases amounted to $9,523 and $9,160 for the years ended December 31, 2021 and 2020.

Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Right-of-use assets, net | $53820 | $4082 |
|  Operating lease liabilities – current | $14685 | $1697 |
|  Operating lease liabilities – non-current | 35283 | 2231 |
|  Total operating lease liabilities | $49968 | $3928 |

---

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021:

---

| | |
|:---|:---|
|  Remaining lease term and discount rate: |  |
|  Weighted average remaining lease term (years) | 4 |
|  Weighted average discount rate | 4.50% |

---

The following is a schedule of maturities of lease liabilities as of December 31, 2021:

---

| | |
|:---|:---|
|  **Years ending December 31,** | |
| 2022 | $16661 |
| 2023 | 15249 |
| 2024 | 14778 |
| 2025 | 7390 |
|  Total future minimum lease payments | 54078 |
|  Less: imputed interest | 4110 |
|  Total | $49968 |

---

#### NOTE 10 — ACCRUED EXPENSE AND OTHER LIABILITIES

#### Accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Payroll payable | $272018  | $43374  |
|  Rent payable | 61141 | 163576 |
|  Equipment payable | 90221 | 116015 |
|  Other payables | 12096 | 4876 |
|  Total | $435476  | $327841  |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 11 — SHORT TERM LOANS
Short-term borrowings consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  **Bank of Jiangsu** |  |  |
|  Interest rate of 4.5%, from March 19, 2020 to March 18, 2021 | $— | $459770 |
|  Interest rate of 4.4%, from April 19, 2021 to April 18, 2022 | 313844 |  |
|  Interest rate of 4.4%, from March 22, 2021 to March 21, 2022 | 470765 |  |
|  **China Construction Bank** |  |  |
|  Interest rate of 4.05%, from December 10, 2021 to November 3, 2022 | 188306 |  |
|  Interest rate of 4.05%, from December 21, 2021 to November 3, 2022 | 78461 |  |
|  **Total** | $1051376 | $459770 |

---

On March 19, 2020, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $459,770 (RMB 3,000,000) for one year with a maturity date on March 18, 2021 at a fixed annual interest rate of 4.5%. The Company pledged one patent valued at RMB 5.0 million (approximately $0.8 million) for guarantee of loan repayment. The loan was fully repaid upon maturity.

On April 19, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on April 18, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On March 22, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 21, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On December 10, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $188,306 (RMB 1,200,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan.

On December 21, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $78,461 (RMB 500,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan.

For the years ended December 31, 2021 and 2020, the Company recorded bank loan interest expenses of $35,007 and $15,630, respectively.

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS
Related party balances as of December 31, 2021 and 2020 and transactions for the years ended December 31, 2021 and 2020 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Related party relationships:**

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  Mr. Yujun Xiao | CEO of the Company |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | Mr. Yujun Xiao served as a supervisor and holds 40% of the shares |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Due from related party:**

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31,** | **As of <br>December 31,** |
|  | **2021** | **2020** |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | $1569 | $— |

---

The balance was fully repaid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Due to related party:**

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31,** | **As of <br>December 31,** |
|  | **2021** | **2020** |
|  Mr. Yujun Xiao | $637007 | $638702 |

---

Mr. Yujun Xiao made advances to the Company as working capital to support the Company's operations during the year ended December 31, 2021 and 2020. The balance was unsecured, interest-free and due upon demand.

#### NOTE 13 — TAXES

#### Corporate Income Taxes ("CIT")
<u><u>Cayman Islands</u></u>

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of the Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

<u><u>Hong Kong</u></u>

Under Hong Kong tax laws, HUHU HK is subject to a statutory income tax rate at 16.5% if revenue is generated in Hong Kong and they are exempted from income tax on their foreign-derived income. There are no withholding taxes in Hong Kong on remittance of dividends.

<u><u>PRC</u></u>

The Company derives all its income in PRC. 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.

#### The components of the income tax provision are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2021** | **For the <br>year ended <br>December 31, <br>2020** |
|  Current income tax expense | $57333 | $336949 |
|  Deferred income tax expense (benefit) | 195272 | (20710) |
|  Total provision for income taxes | $252605 | $316239 |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 13 — TAXES (cont.)

#### The following table reconciles the PRC statutory rate to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31,<br>2021** | **For the <br>year ended <br>December 31,<br>2020** |
|  PRC statutory tax rate | 25.0% | 25.0% |
|  Research and development ("R&D") tax credit | (6.3)% | (1.5)% |
|  Non-deductible items\* | (3.2)% | (0.6)% |
|  Effective tax rate | 15.5% | 22.9% |

---

____________

\* Non-deductible items represent excess expenses and losses not deductible for PRC tax purpose.

#### The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Deferred tax assets: |  |  |
|  Allowance for doubtful accounts | $111952 | $105054 |
|  Net operating losses |  | 197334 |
|  Total deferred tax assets | $111952 | $302388 |

---

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets as at December 31, 2021 and 2020.

During the year ended December 31, 2021, a net operating loss carry forward of $789,336 was utilized to offset the Company's taxable income. All net operating loss carry forwards were utilized as of December 31, 2021.

#### Taxes payable
Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Income tax payable | $36790 | $— |
|  Value-added tax payable | 39357 | 1168 |
|  Other taxes payable | 12797 | 59 |
|  Total taxes payable | $88944 | $1227 |

---

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, 2021 and 2020.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 14 — SHAREHOLDERS' EQUITY

#### Ordinary shares
The Company was established by the founding shareholders under the laws of the Cayman Islands on July 8, 2021. The Company is authorized to issue 5,000,000,000 Ordinary Shares with a par value of $0.00001 each. As of December 31, 2020, 5,000,000 Ordinary Shares are issued and outstanding.

#### Capital contributions
HUHU China was incorporated under the laws of the People's Republic of China with a total registered capital of approximately $3.27 million (RMB 21,575,000). As of December 31, 2019, the Company received total capital contributions of approximately $1.16 million (RMB 8,000,000). During the years ended December 31, 2020 and 2021, the Company received capital contributions of $113,636 (RMB 790,000) and $461,041 (RMB 3,000,000), respectively. As of the date of this report, pursuant to the articles of incorporation of HUHU China, the remaining capital investment of approximately $1.54 million (RMB 9,785,000) shall be contributed in full before December 31, 2049.

#### Statutory reserve and restricted net assets
As stipulated by relevant PRC laws and regulations, the Company's subsidiaries and affiliated entities in the PRC must take appropriations from after-tax profits to non-distributive funds. These reserves include the general reserve and the development reserve.

The general reserve requires an annual appropriation of 10% of after-tax profits each year-end until the balance reaches 50% of a PRC company's registered capital. The development reserve is set aside at the Company's discretion. These reserves can only be used for general enterprise expansion and are not distributable as cash dividends. The general reserve amounted to $99,850 and $Nil as of December 31, 2021 and 2020, respectively.

Because the Company's operating subsidiaries in the PRC can only pay distributions out of distributable profits reported in accordance with PRC accounting standards, the Company's operating subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Company's entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Company's operating subsidiaries in the PRC not available for distribution, was $1,838,029 and $1,277,138 as of December 31, 2021 and 2020, respectively.

#### NOTE 15 — COMMITMENTS AND CONTINGENCIES
<u>**<u>Contingencies</u>**</u>

From time to time, the Company is subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of December 31, 2021, the Company has no outstanding litigation.

#### NOTE 16 — SUBSEQUENT EVENTS
The Company has evaluated subsequent events through October 21, 2022, the date these consolidated financial statements were available for issuance. The Company evaluated subsequent events through the date these consolidated financial statements were issued, and concluded that there are no additional reportable subsequent events except as disclosed below.

#### New subsidiary
On April 25, 2022, the Company incorporated a wholly owned subsidiary HUHU Technology Co., Ltd ("HUHU Japan") in Japan. HUHU Japan engages in providing professional system integration for optoelectronic, semiconductor, telecom and logistic industries in Japan.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)

#### Bank loans
On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 14, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) with a maturity date on April 11, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $86,307 (RMB 550,000) with a maturity date on April 16, 2023 at a fixed annual interest rate of 5.4375%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 22, 2022.

On April 01, 2022, the Company entered into a loan agreement with the Bank of Ningbo to obtain a loan of $470,765 (RMB 3,000,000) with a maturity date on March 28, 2023 at a fixed annual interest rate of 4.35%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On July 18, 2022, the Company entered into a loan agreement with the Bank of Nanjing to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on July 17, 2023 at a fixed annual interest rate of 3.70%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On January 18, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $63,769 (RMB 400,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 15, 2022.

On March 14, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $25,107 (RMB 160,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 15, 2022.

On March 14, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $400,151 (RMB 2,550,000) for one year with a maturity date on March 13, 2023 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 16, 2022.

On March 18, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $70,615 (RMB 450,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 22, 2022.

On March 23, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $31,384 (RMB 200,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 25, 2022.

On March 24, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $7,846 (RMB 50,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co- borrower of the loan. The loan was fully repaid March 25, 2022.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)
On June 23, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $101,999 (RMB 650,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co- borrower of the loan.

On June 23, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on June 23, 2023 at a fixed monthly interest rate of 3.08333%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On July 19, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on July 18, 2023 at a fixed monthly interest rate of 3.08333%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

As of the date of this report, the Company obtained total bank loans of approximately $3.3 million (RMB 21,010,000), and repaid total bank loans of approximately $2.6 million (RMB 16,710,000) subsequent to the year ended December 31, 2021.

#### NOTE 17 — 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 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 Company's operations and revenues are conducted and generated in the PRC, all of the Company'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 Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company'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.

The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, the Group records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments — Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as ''Investments in subsidiaries'' and the subsidiaries' gain as ''Equity in gain of subsidiaries'' on the Condensed Statements of Comprehensive Income.

For the period from July 8, 2021 (the date of incorporation of the parent company) to December 31, 2021 there were no material contingencies, significant provisions of long-term obligations, guarantees of the parent company.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 17 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (cont.)

#### PARENT COMPANY BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2021** | **December 31,<br>2020** |
|  **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp; Investment in subsidiaries, net | $727181 | $— |
|  **TOTAL ASSETS** | $**727181** | $**—** |
|  **EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Share capital | 50 |  |
| &nbsp;&nbsp;&nbsp; Additional paid in capital | (50) |  |
| &nbsp;&nbsp;&nbsp; Statutory reserves |  |  |
| &nbsp;&nbsp;&nbsp; Retained Earnings | 692615 |  |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 34566 |  |
| &nbsp;&nbsp;&nbsp; **TOTAL SHAREHOLDERS' EQUITY** | 727181 |  |
|  **TOTAL LIABILITIES AND EQUITY** | $**727181** | $**—** |

---

____________

\* Shares and per share data are presented on a retroactive basis to reflect the recapitalization.

#### PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | |
|:---|:---|
|  | **For the <br>period from <br>July 8, 2021 <br>(Inception) to <br>December 31, <br>2021** |
|  Equity in earnings of subsidiaries | 692615 |
|  **NET INCOME** | **692615** |
|  **OTHER COMPREHENSIVE INCOME** |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 34566 |
|  **COMPREHENSIVE INCOME** | $**727181** |

---

#### PARENT COMPANY STATEMENTS OF CASH FLOWS

---

| | |
|:---|:---|
|  | **For the <br>period from <br>July 8, 2021 <br>(Inception) to <br>December 31, <br>2021** |
|  **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |
|  Net income | $692615 |
|  Adjustments to reconcile net income to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp; Equity in earnings of subsidiaries | (692615) |
|  **NET CASH USED IN OPERATING ACTIVITIES** | **—** |
|  **CHANGES IN CASH** | **—** |
|  **CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR** | **—** |
|  **CASH AND CASH EQUIVALENTS AT THE END OF YEAR** | $**—** |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONDENSED CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30,<br>2022** | **As of <br>December 31,<br>2021** |
|  | (Unaudited) | |
|  **ASSETS** |  |  |
|  **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $1109463 | $75059 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 285320 | 536456 |
| &nbsp;&nbsp;&nbsp; Notes receivable | 388170 |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 5749800 | 5177611 |
| &nbsp;&nbsp;&nbsp; Inventories | 1085587 | 540652 |
| &nbsp;&nbsp;&nbsp; Advances to vendors, net | 545593 | 95778 |
| &nbsp;&nbsp;&nbsp; Prepayments and other assets, net | 75741 | 59531 |
| &nbsp;&nbsp;&nbsp; Due from related party | 1493 | 1569 |
|  **TOTAL CURRENT ASSETS** | 9241167 | 6486656 |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 491088 | 552299 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 194861 | 229294 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets | 69807 | 111952 |
| &nbsp;&nbsp;&nbsp; Deferred offering costs | 438937 | 448560 |
| &nbsp;&nbsp;&nbsp; Right-of-use assets | 44297 | 53820 |
|  **TOTAL ASSETS** | $**10480157** | $**7882581** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
|  **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Short term bank loan | $1642257 | $1051376 |
| &nbsp;&nbsp;&nbsp; Notes payable | 208879 | 114937 |
| &nbsp;&nbsp;&nbsp; Accounts payable | 3551713 | 2582848 |
| &nbsp;&nbsp;&nbsp; Due to related party | 514459 | 637007 |
| &nbsp;&nbsp;&nbsp; Advances from customers | 182416 | 61168 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 491688 | 435476 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 146977 | 88944 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – current | 13989 | 14685 |
|  **TOTAL CURRENT LIABILITIES** | 6752378 | 4986441 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – non-current | 26793 | 35283 |
|  **TOTAL LIABILITIES** | 6779171 | 5021724 |
|  **COMMITMENTS AND CONTINGENCIES** |  |  |
|  **SHAREHOLDERS' EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary shares, $0.00001 par value, 5,000,000,000 shares authorized, 5,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021\* | 50 | 50 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1738179 | 1738179 |
| &nbsp;&nbsp;&nbsp; Statutory reserves | 201075 | 99850 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 1848687 | 937660 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive (loss) income | (87005) | 85118 |
|  **TOTAL SHAREHOLDERS' EQUITY** | **3700986** | **2860857** |
|  **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**10480157** | $**7882581** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** |
|  | **2022** | **2021** |
|  | (Unaudited) | (Unaudited) |
|  **Revenues** | $6318135 | $3964409 |
|  **Cost of revenues** | 4233401 | 2713019 |
|  **Gross profit** | **2084734** | **1251390** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 91382 | 114518 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 387315 | 315022 |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 477642 | 263945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 956339 | 693485 |
|  **Income from operations** | **1128395** | **557905** |
|  **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 3215 | 5122 |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (22411) | (20844) |
| &nbsp;&nbsp;&nbsp; Other income, net | 78838 | 109043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income, net | 59642 | 93321 |
|  **Income before income taxes** | **1188037** | **651226** |
|  Provision for income taxes | 175785 | 88217 |
|  **Net income** | **1012252** | **563009** |
|  **Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (172123) | 15178 |
|  **Comprehensive income** | $**840129** | $**578187** |
|  **Earnings per share\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | $0.20 | $0.11 |
|  **Weighted average number of shares outstanding\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | 5000000 | 5000000 |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **<br>Ordinary shares** | **<br>Ordinary shares** | **Additional <br>paid-in <br>capital** | **Statutory <br>reserves** | **Retained <br>earnings** | **Accumulated <br>other <br>comprehensive <br>income (loss)** | **Total <br>shareholders' <br>equity** |
|  | **Shares\*** | **Amount** | **Additional <br>paid-in <br>capital** | **Statutory <br>reserves** | **Retained <br>earnings** | **Accumulated <br>other <br>comprehensive <br>income (loss)** | **Total <br>shareholders' <br>equity** |
|  **Balance at December 31, 2020** | **5000000** | $**50** | $**1277138** | $**—** | $**(331532**) | $**35136** | $**980792** |
|  Capital contribution |  |  | 461041 |  |  |  | 461041 |
|  Net income |  |  |  |  | 563009 |  | 563009 |
|  Statutory reserve appropriation |  |  |  | 56301 | (56301) |  |  |
|  Foreign currency translation adjustments |  |  |  |  |  |  | 15178 |
|  **Balance at June 30, 2021 (Unaudited)** | **5000000** | $**50** | $**1738179** | $**56301** | $**175176** | $**50314** | $**2020020** |
|  **Balance at December 31, 2021** | **5000000** | $**50** | $**1738179** | $**99850** | $**937660** | $**85118** | $**2860857** |
|  Net income |  |  |  |  | 1012252 |  | 1012252 |
|  Statutory reserve appropriation |  |  |  | 101225 | (101225) |  |  |
|  Foreign currency translation adjustments |  |  |  |  |  | (172123) | (172123) |
|  **Balance at June 30, 2022 (Unaudited)** | **5000000** | $**50** | $**1738179** | $**201075** | $**1848687** | $**(87005**) | $**3700986** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** |
|  | **2022** | **2021** |
|  | (Unaudited) | (Unaudited) |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $1012252 | $563009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 70362 | 42707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in provision for doubtful accounts | (151782) | 23417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | 37946 | 69691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of operating lease right-of-use assets | 7141 | 846 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (699863) | (1197002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes receivable | (401290) | (154945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (590517) | (166898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other assets | (19748) | (132333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance to vendors | (469830) | (623017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1131372 | 1210065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 79990 | 283896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance from customers | 128419 | 51535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes payable | 64463 | (655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases liabilities | (7141) | (846) |
|  **Net cash provided by (used in) operating activities** | **191774** | **(30530**) |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Additions to property, plant, and equipment | (10752) | (3535) |
|  **Net cash (used in) investing activities** | **(10752**) | **(3535**) |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Loans from related parties |  | 1678 |
| &nbsp;&nbsp;&nbsp; Payments to related parties | (94688) |  |
| &nbsp;&nbsp;&nbsp; Capital contributions |  | 463664 |
| &nbsp;&nbsp;&nbsp; Proceeds from short-term bank loans | 1697767 | 772774 |
| &nbsp;&nbsp;&nbsp; Repayment of short-term bank loans | (1034094) | (463664) |
| &nbsp;&nbsp;&nbsp; Payment of offering costs | (12588) | (364516) |
|  **Net cash provided by financing activities** | **556397** | **409936** |
|  **Effect of exchange rate changes on cash and restricted cash** | **45849** | **7707** |
|  **Net increase in cash and restricted cash** | **783268** | **383578** |
|  **Cash and restricted cash at the beginning of period** | **611515** | **638037** |
|  **Cash and restricted cash at the end of period** | $**1394783** | $**1021615** |
|  **Reconciliation of cash and restricted cash, end of period** |  |  |
|  Cash | $1109463 | $1021615 |
|  Restricted cash | 285320 |  |
|  **Cash and restricted cash at the end of period** | $**1394783** | $**1021615** |
|  **Supplemental cash flow disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for income tax | $14061 | $27315 |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $22411 | $12577 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

[**Table of Contents**](#TOC001)

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION
HUHUTECH International Group Inc. ("HUHUTECH" or the "Company") is a holding company incorporated under the laws of the Cayman Islands on July 8, 2021. HUHUTECH, through its wholly-owned subsidiaries is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for the optoelectronic, semiconductor, telecom and logistic industries in the People's Republic of China ("China" or "PRC").

#### Reorganization
A Reorganization of the legal structure was completed on January 14, 2022. The Reorganization involved the incorporations of HUHUTECH International Group Inc., a Cayman Islands holding company; HUHUTECH (HK) Limited ("HUHU HK"), a holding company established in Hong Kong, PRC; Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE"), a company established in the PRC; and the transfer of Jiangsu Huhu Electromechanical Technology Co., Ltd ("HUHU China"), a company established in the PRC, to WFOE.

Before and after the Reorganization, the Company, together with its subsidiaries, are effectively controlled by the same shareholder, who is the Chief Executive Officer ("CEO") and the Chairman of the Board of Directors of the Company, 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.

Upon the reorganization, the Company has subsidiaries in countries and jurisdictions in Hong Kong, China and the PRC. Details of the subsidiaries of the Company as of June 30, 2022 were set out below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Entity** | **Date of <br>Incorporation** | **Jurisdiction of <br>Formation** | **Percentage of <br>Ownership** | **Principal <br>Activities** |
|  HUHUTECH (HK) Limited ("HUHU HK") | July 28, 2021 | Hong Kong, PRC | 100% by HUHU | Investment holding |
|  Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE") | December 10, 2021 | PRC | 100% by HUHU HK | System integration and engineering services |
|  Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") | August 20, 2015 | PRC | 100% by WFOE | System integration and engineering services |

---

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The interim results of operations are not necessarily indicative of results to be expected for any other interim period or for a full year. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of its financial position and operating results have been included. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and the related notes thereto for the fiscal years ended December 31, 2021 and 2020.

[**Table of Contents**](#TOC001)

**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Principles of consolidation
The accompanying unaudited condensed consolidated financial statements include the unaudited condensed financial statements of HUHUTECH International Group Inc. and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

#### Use of estimates
In preparing the unaudited condensed consolidated financial statements in conformity with U.S. 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 consolidated 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 and are adjusted to reflect actual experience when necessary. Significant estimates required to be made by management include, but are not limited to allowance for doubtful accounts, allowance for inventories obsolescence, the useful lives of property and equipment, revenue recognition and the realization of deferred tax assets. Actual results could differ from those estimates.

#### Cash
Cash comprises cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 (approximately $75,000) deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by FSD were approximately $861,000 and $Nil as of June 30, 2022 and December 31, 2021, respectively.

#### Restricted cash
Restricted cash consists of cash and cash equivalents which is used as collateral to secure notes payable and used as guarantee deposit to secure the performance guarantee bank acceptance. A note payable is a draft issued by a bank for payments in future, which defers the payment until the due date for redeeming the note. According to the notes payable agreement with the bank, 50% to 100% of the amount is required to be deposited at the bank as security for the notes payable. Guarantee deposit is the deposit in bank to secure the performance guarantee bank acceptance issued by the bank. The performance guarantee bank acceptance is required by the Company's customer for certain project as a guarantee to fulfill the contract. The security deposit for notes payable and performance guarantee bank acceptances amounted to $180,634 and $104,686, respectively, as of June 30, 2022. The security deposit for notes payable and performance guarantee bank acceptances amounted to $112,701 and $423,755, respectively, as of December 31, 2021. The Company earns interest at a variable rate per month on this restricted cash balance.

#### Notes receivable
Notes receivable consisted of bank acceptance notes of $388,170 and $Nil provided by the Company's customers as of June 30, 2022 and December 31 2021, respectively. These non-interest-bearing notes with no more than 6 months maturity dates were issued or endorsed by the Company's customers to repay their balance due to the Company and these notes were guaranteed by the customers' banks.

#### Accounts receivable, net
Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for doubtful accounts amounted to $252,303 and $419,509 as of June 30, 2022 and December 31 2021, respectively.

#### Inventories
Inventories are stated at the lower of cost or net realizable value. Costs include purchase price and related shipping costs. 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 an inventory valuation allowance. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products.

#### Advances to vendors
Advances to vendors consists of balances paid to suppliers for services and materials that have not been provided or received. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. In addition, at each reporting date, the Company determines the adequacy of the allowance by evaluating all available information, and then records specific allowances for those advances based on the available facts and circumstances. As of June 30, 2022 and December 31 2021, the allowance for uncollectible advances to vendors was nil.

#### Prepayments and other assets, net
Prepayments and other assets primarily consist of prepaid rents and advances to employees, which are presented net of allowance for doubtful accounts. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company 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. Prepayment and other assets are written off against the allowances only after exhaustive collection efforts. Allowance for uncollectible balances amounted to $26,924 and $28,299 as of June 30, 2022 and December 31, 2021, respectively.

#### Property and equipment, net
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight-line method, as follows:

---

| | |
|:---|:---|
|  | **Useful life** |
|  Office equipment | 3 – 5 years |
|  Transportation equipment | 4 years |
|  Building | 20 years |

---

[**Table of Contents**](#TOC001)

**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
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 other comprehensive income in other income or expenses.

#### Intangible assets
Intangible assets consist primarily of the Type Class A license in construction and computer software. Type Class A license in construction is valid for five years and subject to renewal. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method.

<u> License </u>   <u> 5 years </u> <br> <u> Computer software </u>   <u> 3 years </u>

#### Impairment of long-lived assets
Long-lived assets, including property and equipment and intangible assets with finite lives, are evaluated 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 may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the six months June 30, 2022 and 2021, respectively.

#### Deferred offering costs
Deferred offering costs are expenses directly related to the Company's planned initial public offering ("IPO"). These costs consist of legal, accounting, printing, and filing fees that the Company capitalized, including fees incurred by the independent registered public accounting firm directly related to the registration statement. The deferred offering costs will offset against the IPO proceeds and will be reclassified to additional paid-in capital upon completion of the IPO.

#### Notes payable
Notes payable are bank acceptance notes issued by financial institutions on the Company's behalf to vendors with a specific due date usually for a period of within 6 months. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before maturity date.

As collateral security for financial institutions' undertakings, the Company 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. As of June 30, 2022, the Company deposited total $180,634 (RMB1,209,900) as collateral to secure and issue ten bank acceptance notes of $208,879 (RMB1,399,094) to its vendors with maturity period of six months. As of November 30, 2022, $161,105 (RMB1,079,094) of the notes has been paid and the related restricted deposit was released upon payment. As of December 31, 2021, the Company deposited total $112,701 (RMB 718,200) as collateral to secure and issue eight bank acceptance notes of $114,937 (RMB 732,445) to its vendors with maturity period of six months. As of May 31, 2022 the notes were fully paid upon maturity and the restricted deposit was also released upon the payment.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Fair value of financial instruments
U.S. GAAP 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company's financial instruments, including cash, accounts receivable, notes receivable, advances to vendors, prepayments and other assets, accounts payable, accrued expenses and other liabilities, advances from customers, notes payable, due to related parties and bank loans, approximates their recorded values due to their short-term maturities. The Company determined that the carrying value of the short-term bank loans approximated their fair value by comparing the stated loan interest rate to the rate charged by similar financial institutions.

#### Revenue recognition
The Company adopted ASC Topic 606 Revenue from Contracts with Customers ("ASC 606") on January 1, 2019 using the modified retrospective approach. Revenues were presented under ASC 606 and all subsequent ASUs that modified ASC 606 for the six months ended June 30, 2022 and 2021. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, the Company applies the following steps:

Step 1: Identify the contract (s) with a customer

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

The Company derives its revenues primarily from three sources: (1) system integration projects; (2) product sales; (3) engineering consulting services. All of the Company's contracts with customers do not contain cancellable and refund-type provisions.

Revenue from system integration projects

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. These contracts require the Company to perform customized services of project planning, system coding, installation of hardware and equipment, and configuration based on the customers' specific needs which requires significant customization. Upon delivery of the services and equipment, customer acceptance is generally required. In the same contract, the Company is required to provide a warranty period for one

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#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
to two years ("warranty period") after the customized project is delivered with a 3% – 10% holdback of the total contract price ("contract holdback") which is to be paid after the end of warranty period. The Company determined the warranty clause included in the contractual term is directly related to the quality of the Company's integration projects and there are no specific tasks to be performed during the warranty period, and therefore, consider it an assurance-type warranty. The warranty is not considered a separate performance obligation and no revenue is associated with these services under ASC 606. Because of the nature of the projects, and the contract owners perform inspection during the project and prior to acceptance, the Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary.

Revenue is recognized over the contract term using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

The cost estimation process is based upon the professional knowledge and experience of the Company's engineers, project managers and financial professionals. Management conducts monthly reviews to assess the contract's schedule, performance, technical matters and estimated cost at completion. When changes in estimated contract costs are identified, such revisions may result in current period adjustments to operations applicable to performance in prior periods.

Revenue from product sales

The Company generates revenue primarily through the sale and delivery of promised goods to customers and recognizes revenue when control is transferred to customers, which typically occurs upon customer acceptance, in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services and is recorded net of value-added tax ("VAT"). The Company's contracts with customers are primarily on a fixed-price basis and do not contain cancellable and refund-type provisions.

The Company generally provides a one-year warranty against defects in materials related to the sale of products. The Company considerers the warranty as an assurance type warranty since the warranty provides the customer the assurance that the product complies with agreed-upon specifications. Estimated future warranty obligations are included in cost of product sales in the period in which the related revenue is recognized. The determination of the Company's warranty accrual is based on actual historical experience with the product, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

Revenue from engineering consulting services

Revenues generated from engineering consulting services are recognized upon the delivery of the engineering report as the Company's performance obligations are satisfied. Expenses related to these types of services are recognized as incurred.

#### Contract balances
Accounts receivable represent amounts invoiced and revenues recognized prior to invoicing when the Company has satisfied the Company's performance obligation and has the unconditional rights to payment. Unearned revenues consist of payments received from customers related to unsatisfied performance obligations at the end of the period, and included in advance from customers in the Company's consolidated balance sheets with the balance of $182,416 and $61,168 as of June 30, 2022 and December 31, 2021, respectively. All unsatisfied

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
performance obligation will be performed within the next twelve months and no significant financing component is involved. There is no significant financing component in the Company's revenue arrangement because the Company's expected length of time between the payment and when the Company transfers the promised services is less than 12 months. For the portion of security deposit with more than 12 months is measured at present value at the reporting date by its primary borrowing rate. The impact of discounted interest expenses is not material for the June 30, 2022 and December 31, 2021.

#### Disaggregation of revenues
For the six months June 30, 2022 and 2021, the disaggregation of revenues by major revenue stream is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months <br>June 30,** | **For the six months <br>June 30,** |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
|  System integration projects | $6152326 | $3873564 |
|  Product sales | 145622 | 29590 |
|  Engineering consulting services | 20187 | 61255 |
|  Total | $6318135 | $3964409 |

---

#### Research and development costs
Research and development activities are directed toward the development of cleaning control system, ultrapure water control system, gas detection system, and temperature automatic control system used in the semiconductor manufacturing process. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred.

#### Operating leases
A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases.

#### Value added tax ("VAT")
Revenue represents the invoiced value of goods and services, net of VAT. The VAT is based on gross sales price and VAT rates range from 6% to 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company's subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Government grants
Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of income and comprehensive income upon receipt and all conditions attached to the grants are fulfilled. For the six months ended June 30, 2022 and 2021, the Company received $73,890 and $104,539 of government grants for various research programs. The benefit of these government grants on net income per share (basic and diluted) was $0.01 and $0.02 for the six months ended June 30, 2022 and 2021, respectively.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Income taxes
The Company accounts for 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 for the six months ended June 30, 2022 and 2021. All of the tax returns of the Company's subsidiaries in the PRC 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 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the 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 six months ended June 30, 2022 and 2021, there were no dilutive shares. For the six months ended June 30, 2022 and 2021, earnings per share amounted to $0.20 and $0.11, respectively.

#### Foreign currency translation
The functional currencies of the Company are the local currency of the country in which the subsidiaries operate. The Company's consolidated financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect on that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component in accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.

Since the Company operates primarily in the PRC, the Company's functional currency is the Chinese Yuan ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency of U.S. Dollars ("US$"). The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in the translation.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** | **June 30, <br>2021** |
|  Balance sheet items, except for equity accounts | US$1=RMB 6.6981 | US$1=RMB 6.3726 | US$1=RMB 6.4566 |
|  Items in the statements of income and <br>cash flows | US$1=RMB 6.4791 | US$1=RMB 6.4508 | US$1=RMB 6.4702 |

---

#### Comprehensive income (loss)
Comprehensive income (loss) consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustments resulting from the Company not using US$ as its functional currency.

#### Risks and uncertainties
Beginning in late 2019, an outbreak of a novel strain of coronavirus (COVID-19) first emerged in China and has spread globally. In March 2020, the World Health Organization ("WHO") declared the COVID-19 as a pandemic. Governments in affected countries are imposing travel bans, quarantines and other emergency public health measures, which have caused material disruption to businesses globally resulting in an economic slowdown. For the six months ended June 30, 2022 and 2021, the pandemic did not have significant impact on the Company's operation. The Company's revenues increased approximately 59% from approximately $4.0 million for the six months ended June 30, 2021 to approximately $6.3 million for the six months ended June 30, 2022. However, there is still significant uncertainty regarding the possibility of a new wave of infections caused by a new variant, the breadth and duration of business disruptions due to the new waves could continue to have material impact to the Company's operations.

#### Segment reporting
In accordance with ASC Topic 280, Segment Reporting, the Company's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer. The Company's CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business in PRC China as a single segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented.

#### Concentrations of risks
(a) Concentration of credit risk

Assets that potentially subject the Company 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 as at the balance sheet dates. As of June 30, 2022 and December 31, 2021, the aggregate amount of cash of $1,108,685 and $69,267 respectively, was held at major financial institutions in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 (approximately $75,000) deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts that was not covered by FSD were approximately $861,000 and $Nil as of June 30, 2022 and December 31, 2021, respectively. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. The Company conducts credit

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
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.

(b) Significant customers

For the six months ended June 30, 2022, three customers accounted for 30.4%, 13.7% and 12.5% of total revenues, respectively. For the six months ended June 30, 2021, three customers accounted for 36.0%, 20.5% and 15.7% of total revenues, respectively. As of June 30, 2022, five customers accounted for 17.6%, 17.2%, 12.8%, 11.6% and 11.2% of total accounts receivable, respectively. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable, respectively.

(c) Significant suppliers

For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. For the six months ended June 30, 2021, two suppliers accounted for approximately 12.9% and 10.6% of total purchases, respectively. As of June 30, 2022, four suppliers accounted for approximately 20.6%, 19.5%, 11.2% and 10.9% of total accounts payable, respectively. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively.

(d) Foreign currency risk

A majority of the Company's transactions are denominated in RMB and a significant portion of the Company and its subsidiaries' 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 the Company 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.

The Company's functional currency is the RMB, and the Company's financial statements are presented in U.S. dollars. 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. dollars 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. dollars for the purpose of making payments for dividends, strategic acquisition or investments or other business purposes, appreciation of U.S. dollars against RMB would have a negative effect on the U.S. dollar amount available to the Company.

#### Recent accounting pronouncements
The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

#### NOTE 3 — ACCOUNTS RECEIVABLE, NET

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** |
|  | (Unaudited) | |
|  Accounts receivable from third-party customers | $6002103 | $5597120 |
|  Less: allowance for doubtful accounts | (252303) | (419509) |
|  Account receivable, net | $5749800 | $5177611 |

---

Allowance for doubtful accounts movement is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** | **December 31, 2021** |
|  | (Unaudited) | | |
|  Beginning balance | $419509 | $411427 |  |
|  Reduction | (151782) | (1737 |)) |
|  Foreign currency translation adjustments | (15424) | 9819 |  |
|  Ending balance | $252303 | $419509 |  |

---

Approximately $4.0 million or 67% of the account receivable balance as of June 30, 2022 has been collected as of November 30, 2022.

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#### NOTE 4 — INVENTORIES
Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Materials | $1085587 | $540652 |

---

The Company records the value of its inventory using the lower of cost or net realizable value, cost is calculated on the weighted average method. No inventory reserve was recorded as of June 30, 2022 and December 31, 2021.

#### NOTE 5 — ADVANCE TO VENDORS
Advance to vendors consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Prepayments for technical service and materials | $545593 | $95778 |

---

#### NOTE 6 — PREPAYMENTS AND OTHER ASSETS, NET
Prepayments and other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Prepaid rents | $26544 | $28111 |
|  Prepaid expense | 54538 | 59719 |
|  Prepaid tax | 21573 |  |
|  Less: allowance for uncollectible balances | (26924) | (28299) |
|  Prepayments and other current assets; net | $75741 | $59531 |

---

#### NOTE 7 — PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Building | $348246 | $366034 |
|  Office equipment | 76934 | 69933 |
|  Transportation equipment | 272300 | 286208 |
|  Subtotal | 697480 | 722175 |
|  Less: accumulated depreciation | (206392) | (169876) |
|  Property and equipment, net | $491088 | $552299 |

---

Depreciation expense for the six months ended June 30, 2022 and 2021 amounted to $46,285 and $42,680, respectively.

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#### NOTE 8 — INTANGIBLE ASSETS, NET
The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $24,077 and $27 for the six months ended June 30, 2022 and 2021, respectively.

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  License | $232901 | $244798 |
|  Computer software | 766 | 805 |
|  Less: accumulated amortization | (38806) | (16309) |
|  Intangible assets, net | $194861 | $229294 |

---

The estimated future amortization expenses are as follows:

---

| | |
|:---|:---|
|  **Twelve month periods ending June 30,** | **Estimated <br>Amortization <br>Expense** |
|  | (Unaudited) |
| 2023 | $48155 |
| 2024 | 48155 |
| 2025 | 48155 |
| 2026 | 50396 |
|  Total | $194861 |

---

#### NOTE 9 — LEASES
The Company has several operating leases for manufacturing facilities and offices. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2020, the Company adopted the new lease accounting standard, FASB ASC 842, Leases, using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated retained earnings. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

Total lease expense amounted to $8,194 for the six months June 30, 2022, which included $1,053 interest and $7,141 amortization expenses of ROU assets. Total lease expense amounted to $927 for the six months June 30, 2021, which included $81 interest and $846 amortization expenses of ROU assets. Total cash paid for operating leases amounted to $8,194 and $927 for the six months June 30, 2022 and 2021.

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#### NOTE 9 — LEASES (cont.)
Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Right-of-use assets, net | $44297 | $53820 |
|  Operating lease liabilities – current | $13839 | $14685 |
|  Operating lease liabilities – non-current | 26793 | 35283 |
|  Total operating lease liabilities | $40632 | $49968 |

---

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2022:

---

| | |
|:---|:---|
|  Remaining lease term and discount rate: |  |
|  Weighted average remaining lease term (years) | 3.5 |
|  Weighted average discount rate | 4.50% |

---

The following is a schedule of maturities of lease liabilities as of June 30, 2022

---

| | |
|:---|:---|
|  Twelve months ending June 30, |  |
| 2023 | $15180 |
| 2024 | 14284 |
| 2025 | 14060 |
|  Total future minimum lease payments | 43524 |
|  Less: imputed interest | 2892 |
|  Total | $40632 |

---

#### NOTE 10 — ACCRUED EXPENSE AND OTHER LIABILITIES
Accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Payroll payable | $365653 | $272018 |
|  Rent payable | 11346 | 61141 |
|  Equipment payable | 72236 | 90221 |
|  Other payables | 42443 | 12096 |
|  Total | $491688 | $435476 |

---

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 11 — SHORT TERM LOANS
Short-term borrowings consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  **Bank of Jiangsu** |  |  |
|  Interest rate of 4.4%, from April 19, 2021 to April 18, 2022 | $— | $313844 |
|  Interest rate of 4.4%, from March 22, 2021 to March 21, 2022 |  | 470765 |
|  Interest rate of 4.4%, from March 15, 2022 to March 14, 2023 | 447888 |  |
|  Interest rate of 4.4%, from April 15, 2022 to April 11, 2023 | 298593 |  |
|  **Bank of Ningbo** |  |  |
|  Interest rate of 4.35%, from April 01, 2022 to March 28, 2023 | 447888 |  |
|  **Bank of China** |  |  |
|  Interest rate of 3.08333%, from June 23, 2022 to June 23, 2023 | 447888 |  |
|  **China Construction Bank** |  |  |
|  Interest rate of 4.05%, from December 10, 2021 to November 3, 2022 |  | 188306 |
|  Interest rate of 4.05%, from December 21, 2021 to November 3, 2022 |  | 78461 |
|  **Total** | $1642257 | $1051376 |

---

On April 19, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on April 18, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On March 22, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 21, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On December 10, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $188,306 (RMB 1,200,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

On December 21, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $78,461 (RMB 500,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on March 14, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $298,593 (RMB 2,000,000) with a maturity date on April 11, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 01, 2022, the Company entered into a loan agreement with the Bank of Ningbo to obtain a loan of $447,888 (RMB 3,000,000) with a maturity date on March 28, 2023 at a fixed annual interest rate of 4.35%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 11 — SHORT TERM LOANS (cont.)
On June 23, 2022, the Company entered into a loan agreement with the Bank of China to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on June 23, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

For the six months ended June 30, 2022 and 2021, the Company recorded bank loan interest expenses of $22,411 and $20,844, respectively.

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS
Related party balances as of June 30, 2022 and December 31, 2021 and transactions for the six months ended June 30, 2022 and 2021 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Related party relationships:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  Mr. Yujun Xiao | CEO of the Company |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | Mr. Yujun Xiao served as a supervisor and holds 40% of the shares |
|  Anhui Zhongke Shengwei Intelligent Data Co., Ltd | Mr. Yujun Xiao is the legal representative and holds 9.51% of the shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Due from related party:

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30<br>2022** | **As of December 31,<br>2021** |
|  | **As of <br>June 30<br>2022** | **As of December 31,<br>2021** |
|  | (Unaudited) | |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | $1493 | $1569 |

---

The balance was fully repaid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Due to related party:

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30, <br>2022** | **As of <br>December 31, <br>2021** |
|  | (Unaudited) | |
|  Mr. Yujun Xiao | $514459 | $637007 |

---

Mr. Yujun Xiao made advances to the Company as working capital to support the Company's operations during the year ended December 31, 2021. The Company repaid Mr. Yujun Xiao $94,688 during the six months ended June 30, 2022. The balance is unsecured, interest-free and due upon demand.

In addition, On March 8, 2022, our affiliated entity Anhui Zhongke and HUHU China entered into a software purchase agreement, where Anhui Zhongke sold factory management and monitoring software to HUHU China. The purchase price of the software is 2,305,000RMB (approximately $329,285 USD) and the purchase price was fully settled by June 30, 2022.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 13 — TAXES

#### Corporate Income Taxes ("CIT")
<u><u>Cayman Islands</u></u>

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of the Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

<u><u>Hong Kong</u></u>

Under Hong Kong tax laws, HUHU HK is subject to a statutory income tax rate at 16.5% if revenue is generated in Hong Kong and they are exempted from income tax on their foreign-derived income. There are no withholding taxes in Hong Kong on remittance of dividends.

<u><u>PRC</u></u>

The Company derives all its income in PRC. 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.

The components of the income tax provision are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the <br>six months <br>June 30, <br>2022** | **For the <br>six months <br>June 30, <br>2021** |
|  | (Unaudited) | (Unaudited) |
|  Current income tax expense | $137839 | $18526 |
|  Deferred income tax expense | 37946 | 69691 |
|  Total provision for income taxes | $175785 | $88217 |

---

The following table reconciles the PRC statutory rate to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the <br>six months <br>June 30, <br>2022** | **For the <br>six months <br>June 30, <br>2021** |
|  | (Unaudited) | (Unaudited) |
|  PRC statutory tax rate | 25.0% | 25.0% |
|  Research and development ("R&D") tax credit | (10.1)% | (10.1)% |
|  Permanent differences | (0.1)% | (1.4)% |
|  Effective tax rate | 14.8% | 13.5% |

---

The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** |
|  | (Unaudited) | |
|  **Deferred tax assets:** |  |  |
|  Allowance for doubtful accounts | $69807 | $111952 |
|  Total deferred tax assets | $69807 | $111952 |

---

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 13 — TAXES (cont.)
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets as at June 30, 2022 and December 31, 2021.

#### Taxes payable
Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Income tax payable | $141388 | $36790 |
|  Value-added tax payable |  | 39357 |
|  Other taxes payable | 5589 | 12797 |
|  Total taxes payable | $146977 | $88944 |

---

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 six months June 30, 2022 and 2021.

#### NOTE 14 — SHAREHOLDERS' EQUITY

#### Ordinary shares
The Company was established by the founding shareholders under the laws of the Cayman Islands on July 8, 2021. The Company is authorized to issue 5,000,000,000 Ordinary Shares with a par value of $0.00001 each. As of June 30, 2022, 5,000,000 Ordinary Shares are issued and outstanding.

#### Capital contributions
HUHU China was incorporated under the laws of the People's Republic of China with a total registered capital of approximately $3.27 million (RMB 21,575,000). As of December 31, 2019, the Company received total capital contributions of approximately $1.16 million (RMB 8,000,000). During the years ended December 31, 2020 and 2021, the Company received capital contributions of $113,636 (RMB 790,000) and $461,041 (RMB 3,000,000), respectively. As of the date of this report, pursuant to the articles of incorporation of HUHU China, the remaining capital investment of approximately $1.54 million (RMB 9,785,000) shall be contributed in full before December 31, 2049.

#### Statutory reserve and restricted net assets
As stipulated by relevant PRC laws and regulations, the Company's subsidiaries and affiliated entities in the PRC must take appropriations from after-tax profits to non-distributive funds. These reserves include the general reserve and the development reserve.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 14 — SHAREHOLDERS' EQUITY (cont.)
The general reserve requires an annual appropriation of 10% of after-tax profits each year-end until the balance reaches 50% of a PRC company's registered capital. The development reserve is set aside at the Company's discretion. These reserves can only be used for general enterprise expansion and are not distributable as cash dividends. The general reserve amounted to $201,075 and $99,850 as of June 30, 2022 and December 31, 2021, respectively.

Because the Company's operating subsidiaries in the PRC can only pay distributions out of distributable profits reported in accordance with PRC accounting standards, the Company's operating subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Company's entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Company's operating subsidiaries in the PRC not available for distribution, was $1,939,254 and $1,838,029 as of June 30, 2022 and December 31, 2021.

#### NOTE 15 — COMMITMENTS AND CONTINGENCIES
<u>**<u>Contingencies</u>**</u>

From time to time, the Company is subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of June 30, 2022, the Company has no outstanding litigation.

#### NOTE 16 — SUBSEQUENT EVENTS
The Company has evaluated subsequent events through January 6, 2023, the date these consolidated financial statements were available for issuance. The Company evaluated subsequent events through the date these consolidated financial statements were issued, and concluded that there are no additional reportable subsequent events except as disclosed below.

#### Bank loans
On July 18, 2022, the Company entered into a loan agreement with the Bank of Nanjing to obtain a loan of $463,027 (RMB 3,000,000) for one year with a maturity date on July 17, 2023 at a fixed annual interest rate of 3.70%. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On July 19, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $308,685 (RMB 2,000,000) for one year with a maturity date on July 18, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On October 27, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $617,370 (RMB 4,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On November 09, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $771,712 (RMB 5,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)
On November 09, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $154,342 (RMB 1,000,000) with a maturity date on November 14, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 14, 2022.

On November 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $27,782 (RMB 180,000) with a maturity date on December 15, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

On November 17, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $77,171 (RMB 500,000) with a maturity date on December 17, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

On November 24, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $33,955 (RMB 220,000) with a maturity date on December 24, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

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#### — Ordinary Shares

#### HUHUTECH International Group Inc.

#### PROSPECTUS

#### , 2023
**Until and including , 2023 (the 25**<sup>th</sup>**day after the date of this prospectus), all dealers that buy, sell or trade our Ordinary Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

------

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#### PART II<br>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 memorandum and 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. Our amended memorandum and articles of association provides that every director, alternate director or officer shall be indemnified out of the assets of the Company against any liability incurred by him as a result of any act or failure to act in carrying out his functions other than such liability (if any) that he may incur by his own actual fraud or willful default.

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 secretary or any of our officers in respect of any matter identified in above on condition that the secretary or officer must repay the amount paid by us to the extent that it is ultimately found not liable to indemnify the secretary or that officer for those legal costs.

The Underwriting Agreement, the form of which has been 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 of 1933, as amended may be permitted to directors, officers or persons controlling us pursuant to 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 Rule 901 of Regulation S under the Securities Act regarding sales by an issuer in offshore transactions, or Section 4(a)(2) under the Securities Act regarding transactions not involving a public offering. No underwriters were involved in these issuances of securities.

On July 8, 2021, we issued 5,000,000 Ordinary Shares in connection with the incorporation of the Company pursuant to the exemptions from registration under Rule 901 of Regulation S and Section 4(a)(2) under the Securities Act.

The details of the above-mentioned issuance are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  **Shareholders** | **Date of Issuance** | **Number of <br>Securities** | **Consideration** |
|  Harneys Fiduciary (Cayman) Limited\* | July 8, 2021 | 1 | US$0.00001 |
|  Billion Wang Holdings Limited | July 8, 2021 | 2061999 | US$20.6 |
|  Army Xiao Holdings Limited | July 8, 2021 | 2109500 | US$21.1 |
|  Fountain Qian Holdings Limited | July 8, 2021 | 210000 | US$2.1 |
|  Lucky Wei Holdings Limited | July 8, 2021 | 155000 | US$1.6 |
|  Increase Willpower Limited Partnership | July 8, 2021 | 463500 | US$4.6 |

---

____________

\* On July 8, 2021, Harneys Fiduciary transferred 1 share to Billion Wang Holdings Limited. pursuant to Section 4(a)(1) of the Securities Act, for transactions by persons other than an issuer, underwriter, or dealer.

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#### ITEM 8. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Exhibits**

See Exhibit Index beginning on page II-4 of this registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(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 Underwriter at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the Underwriter 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 Securities and Exchange Commission (the "Commission") pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

provided, however, that: Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) That 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. 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 first use, 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 date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That 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;&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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

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#### HUHUTECH International Group Inc.

#### Exhibit Index

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  1.1\*\* | Form of Underwriting Agreement |
|  3.1\* | [Memorandum and Articles of Association](ff12023ex3-1_huhutech.htm) |
|  4.1\*\* | Specimen Certificate for ordinary share |
|  4.2\*\* | Form of Underwriter's Warrant |
|  5.1\*\* | Opinion of regarding the validity of the Ordinary Shares being registered |
|  5.2\*\* | Opinion of Ortoli Rosenstadt LLP, U.S. counsel to HUHUTECH International Group Inc., as to the enforceability of the Underwriters Warrants |
|  8.1\*\* | Opinion of Jiangsu Junjin Law Firm regarding certain PRC tax matters (included in Exhibit 99.1) |
|  10.1\* | [Form of Employment Agreement by and between Executive Officers and the Company](ff12023ex10-1_huhutech.htm) |
|  10.2\*\* | Form of Lock-Up Agreement |
|  10.3\* | [Lease Agreement between the Company and Yue Li Leasing Service (Nanjing) Co., Ltd.](ff12023ex10-3_huhutech.htm) |
|  10.4\* | [English Translation of Lease Agreement between the Company and Chongda He.](ff12023ex10-4_huhutech.htm) |
|  10.5\* | [English Translation of Property Certificate of Tianan Zhihui City property owned by the Company](ff12023ex10-5_huhutech.htm) |
|  10.6\* | [English Translation of Property Purchase Contract between the Company and regarding the purchase of Tiananzhihui City Property](ff12023ex10-6_huhutech.htm) |
|  10.7\* | [English Translation of Flexible Term Working Capital Loan Agreement between the Company and Bank of China dated June 22, 2022](ff12023ex10-7_huhutech.htm) |
|  10.8\* | [English Translation of Working Capital Loan Agreement between the Company and Bank of Nanjiing (Wuxi branch) dated July 18, 2022](ff12023ex10-8_huhutech.htm) |
|  10.9\* | [English Translation of Working Capital Loan Agreement between the Company and Bank of Ningbo dated March 28, 2022](ff12023ex10-9_huhutech.htm) |
|  10.10\* | [English Translation of Flexible Term Work Capital Loan Agreement between the Company and Bank of China dated July 19, 2022](ff12023ex10-10_huhutech.htm) |
|  10.11\* | [English Translation of Working Capital Loan Contract between the Company and Bank of Jiangsu dated March 19, 2020.](ff12023ex10-11_huhutech.htm) |
|  10.12\* | [English Translation of Working Capital Loan Contract between the Company and Bank of Jiangsu dated March 22, 2021.](ff12023ex10-12_huhutech.htm) |
|  10.13\* | [English Translation of Working Capital Loan Contract between the Company and Bank of Jiangsu dated April 19, 2021.](ff12023ex10-13_huhutech.htm) |
|  10.14\* | [English Translation of Working Capital Loan Contract between the Company and Bank of Jiangsu dated March 15, 2022.](ff12023ex10-14_huhutech.htm) |
|  10.15\* | [English Translation of Loan Contract between the Company and China Construction Bank dated November 3, 2021.](ff12023ex10-15_huhutech.htm) |
|  10.16\* | [<u>English Translation of Agreement between Li Yi System Engineering (Shanghai) Limited and the Company dated Sept</u><u>ember 1</u><u>5, 2020</u>](ff12023ex10-16_huhutech.htm) |
|  10.17\* | [<u>English Translation of Sales Agreement between AUO and the Company dated December 8, 2020.</u>](ff12023ex10-17_huhutech.htm) |
|  10.18\* | [English Translation of Installation Agreement between Hefei Lanke and the Company dated April 1, 2021.](ff12023ex10-18_huhutech.htm) |
|  10.19\* | [English Translation of Sales Agreement between Shiyuan and the Company dated July 9, 2021.](ff12023ex10-19_huhutech.htm) |
|  10.20\* | [English Translation of Project Contract between China Electronics and the Company dated June 8, 2021.](ff12023ex10-20_huhutech.htm) |
|  10.21\* | [English Translation of Employment Agreement between the Chief Executive Officer, Yujun Xiao, and the Company](ff12023ex10-21_huhutech.htm) |
|  10.22\* | [English Translation of Employment Agreement between the Chief Financial Officer, Huiping Zhang, and the Company](ff12023ex10-22_huhutech.htm) |
|  10.23\* | [English Translation of Employment Agreement between the Chief Technology Officer, Xiaoming Chen, and the Company](ff12023ex10-23_huhutech.htm) |
|  10.24\* | [English Translation of Software Purchase Agreement between the Company and Anhui Zhongke dated March 8, 2022](ff12023ex10-24_huhutech.htm) |
|  10.25\* | [The Company's Affidavit regarding the Loan Agreement with China Construction Bank](ff12023ex10-25_huhutech.htm) |

---

[**Table of Contents**](#TOC001)

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  10.26\* | [The Company's Affidavit regarding the Loan Agreement with Bank of Ningbo](ff12023ex10-26_huhutech.htm) |
|  14.1\* | [Code of Business Conduct and Ethics of the Registrant](ff12023ex14-1_huhutech.htm) |
|  21.1\* | [List of Subsidiaries](ff12023ex21-1_huhutech.htm) |
|  23.1\* | [Consent of Wei, Wei & Co., LLP](ff12023ex23-1_huhutech.htm) |
|  23.2\*\* | Consent of (included in Exhibit 5.1) |
|  23.3\*\* | Consent of Jiangsu Junjin Law Firm (included in Exhibits 8.1 and 99.1) |
|  99.1\*\* | Opinion of Jiangsu Junjin Law Firm, People's Republic of China counsel to the Registrant, regarding certain PRC law matters |
|  99.2\* | [Audit Committee Charter](ff12023ex99-2_huhutech.htm) |
|  99.3\* | [Compensation Committee Charter](ff12023ex99-3_huhutech.htm) |
|  99.4\* | [Nomination Committee Charter](ff12023ex99-4_huhutech.htm) |
|  99.6\* | [<u>Request for Waiver and Representation under Item 8.A.4 of Form 20-F.</u>](ff12023ex99-6_huhutech.htm) |
|  107\* | [Filing Fee Table](ff12023ex-fee_huhutech.htm) |

---

____________

\* Filed herewith.

\*\* To be filed by amendments

\*\*\* Previously filed

[**Table of Contents**](#TOC001)

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, 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 Jiangsu, China, on March 29, 2023.

---

| | | |
|:---|:---|:---|
|  **HUHUTECH International Group Inc.** | **HUHUTECH International Group Inc.** | **HUHUTECH International Group Inc.** |
|  By: | */s/ Yujun Xiao* | */s/ Yujun Xiao* |
|  | Name: | Yujun Xiao |
|  | Title: | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities and on February 10, 2023.

---

| | |
|:---|:---|
|  **Signature** | **Title** |
|  */s/ Yujun Xiao* | Chief Executive Officer and Director |
|  Name: Yujun Xiao | (Principal Executive Officer) |
|  */s/ Huiping Zhang* | Chief Financial Officer |
|  Name: Huiping Zhang | (Principal Executive Officer) |

---

[**Table of Contents**](#TOC001)

#### SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of HUHUTECH International Group Inc., has signed this registration statement or amendment thereto in New York on March 29, 2023.

---

| | | |
|:---|:---|:---|
|  **Authorized U.S. Representative** | **Authorized U.S. Representative** | **Authorized U.S. Representative** |
|  Cogency Global Inc. | Cogency Global Inc. | Cogency Global Inc. |
|  By: | */s/ Colleen A. De Vries* | */s/ Colleen A. De Vries* |
|  | Name: | Colleen A. De Vries |
|  | Title: | Senior Vice President |

---

## Exhibit 3.1

**Exhibit 3.1**

![](ex3-1_001.jpg)

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**HUHUTECH INTERNATIONAL GROUP INC.**

 

An Exempted Company Limited By Shares

**MEMORANDUM AND ARTICLES OF ASSOCIATION**

![](ex3-1_002.jpg)

*Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**MEMORANDUM OF ASSOCIATION**

**OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

An Exempted Company Limited By Shares

---

| | |
|:---|:---|
| 1 | NAME |

---

The name of the Company is HUHUTECH International Group Inc.

---

| | |
|:---|:---|
| 2 | STATUS |

---

The Company is a company limited by shares.

3 REGISTERED OFFICE

The registered office of the Company is at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands or at such other place as the Directors may from time to time decide.

4 OBJECTS AND CAPACITY

Subject to paragraph 9 of this Memorandum, the objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the Companies Act or any other law of the Cayman Islands. The Company is a body corporate capable of exercising all the functions of a natural person of full capacity, irrespective of any question of corporate benefit.

5 SHARE CAPITAL

The share capital of the Company is USD 50,000.00 divided into 5,000,000,000 Ordinary shares of par value USD 0.00001 each.

6 LIABILITY OF MEMBERS

The liability of each Member is limited to the amount from time to time unpaid on such Member's Shares.

1 *Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

7 CONTINUATION

The Company may exercise the powers contained in the Companies Act to transfer and be registered by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be de-registered in the Cayman Islands.

8 DEFINITIONS

Capitalised terms used and not defined in this Memorandum of Association shall bear the same meaning as those given in the Articles of Association of the Company.

9 EXEMPTED COMPANY

The Company will not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the Company carried on outside the Cayman Islands; provided that nothing in this section shall be construed as to prevent the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands.

10 FINANCIAL YEAR

The financial year end of the Company is 31 December or such other date as the Directors may from time to time decide and annex to this Memorandum.

2 *Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

The undersigned subscribes its name to this Memorandum of Association to form an incorporated company with limited liability to carry out the lawful purposes set out in this Memorandum of Association and agrees to take the number of Shares set out below.

Dated: 8 July 2021

---

| | |
|:---|:---|
| **SUBSCRIBER** | **NUMBER OF SHARES TAKEN** |
| Harneys Fiduciary (Cayman) Limited<br> P.O. Box 10240<br> Grand Cayman KY1-1002<br> Cayman Islands | 1 Share |

---

---

| |
|:---|
| /s/ Bonnie Sin |
| Bonnie Sin |
| Acting as duly authorised signatory For and on behalf of |
| Harneys Fiduciary (Cayman) Limited |

---

---

| |
|:---|
| /s/ Katy Chow |
| Katy Chow |
| Witness to the above signature |

---

3 *Auth Code: C66733704172 www.verify.gov.ky*

---

| | |
|:---|:---|
| ![](ex3-1_005.jpg) | ![](ex3-1_001.jpg) |

---

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**ARTICLES OF ASSOCIATION**

**OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

An Exempted Company Limited By Shares

1 DEFINITIONS AND INTERPRETATION

1.1 The Regulations contained in Table A in the First Schedule to
the Companies Act do not apply to the Company. In these Articles of Association, if not inconsistent with the context, the following
words and expressions shall have the following meanings:

***Articles*** means these Articles of Association;

***Companies Act*** means the Companies Act (Revised), as amended or re-enacted from time to time;

***Company*** means the above named company;

***Director*** means a director of the Company appointed in accordance with these Articles;

***Distribution*** means a distribution, dividend (including an interim dividend) or other payment or transfer of property of the Company on or in respect of a Share (save in respect of its redemption or repurchase);

***Electronic Transactions Act*** means the Electronic Transactions Act of the Cayman Islands;

***Member*** has the same meaning as in the Companies Act;

***Memorandum*** means the Memorandum of Association of the Company;

***Officer*** means any person appointed by the Directors to hold an office in the Company;

***Ordinary Resolution*** means a resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) passed by a majority of such Members as, being entitled to do
so, vote in person or by proxy at a general meeting of the Company; or

4 *Auth Code: H62639701064<br> www.verify.gov.ky*

 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) approved in writing by all of the Members entitled to vote at a general meeting of the Company in one
or more instruments each signed by one or more of the Members.

***Register of Directors and Officers*** means the register of Directors and Officers maintained by the Company in accordance with these Articles;

***Register of Members*** means the register of Members referred to in these Articles;

***Registrar*** means the Registrar of Companies and includes the Deputy Registrar of Companies;

***Registered Office*** means the registered office for the time being of the Company;

***Seal*** means any seal which has been duly adopted as the common seal of the Company and includes every duplicate seal;

***Secretary*** means the person appointed to perform any or all of the duties of secretary of the Company, including any assistant secretary;

***Share*** means a share in the capital of the Company, including a fraction of a share issued or authorised to be issued by the Company;

***Special Resolution*** means a special resolution passed in accordance with Section 60 of the Companies Act, being a resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) passed by a majority of not less than two-thirds of such Members
as, being entitled to do so, vote in person or by proxy at a general meeting of the Company of which notice specifying the intention
to propose the resolution as a Special Resolution has been duly given; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) approved in writing by all of the Members entitled to vote at a general meeting of the Company in one
or more instruments each signed by one or more of the Members;

***Subscriber*** means the subscriber to the Memorandum;

***Treasury Share*** means a Share that has been repurchased, redeemed, surrendered to or otherwise acquired by the Company and not cancelled; and

***Written*** includes information generated, sent, received or stored by electronic, electrical, digital, magnetic, optical, electromagnetic, biometric or photonic means, including electronic data interchange and electronic mail in accordance with the Electronic Transactions Act and in writing shall be construed accordingly.

5 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

1.2 In the Memorandum and these Articles, unless the context otherwise
requires a reference to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Cayman Islands law or regulation, is a reference to such law or regulation as amended or re-enacted
from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the singular includes the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a person includes all legal persons and natural persons; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) legal persons include all forms of corporate entity and any other person having capacity to act in its

1.3 Headings are for ease of reference only and shall be disregarded
in interpreting the Memorandum and the Articles.

2 COMMENCEMENT OF BUSINESS

2.1 **Commencement**. The business of the Company may be commenced at such time as determined by the Directors.

2.2 **Commencement Costs and Expenses**. The Directors may pay, out of capital or other money of the Company, all costs and expenses
incurred in the establishment and registration of the Company.

3 REGISTERED SHARES

3.1 **Registered Shares**. The Company shall issue registered Shares only.

3.2 **No Bearer Shares**. The Company is not authorised to issue bearer Shares, convert registered Shares to bearer Shares or exchange
registered Shares for bearer Shares.

4 SHARE CERTIFICATES

4.1 **Share Certificates**. Unless and until the Directors resolve to issue share certificates, no share
certificate shall be issued, and the records of the shareholdings of each Member shall be in uncertified book entry form. If the Directors
do resolve to issue share certificates in respect of any one or more classes of Shares, then every Member holding such Shares shall be
entitled, upon written request only, to a certificate signed by a Director or Secretary, or any other person authorised by a resolution
of the Directors, or under the Seal specifying the number of Shares held by him and the signature of the Director, Secretary or authorised
person and the Seal may be facsimiles or affixed by electronic means pursuant to the Electronic Transactions Act.

6 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

4.2 **Indemnity and Replacement**. Any Member receiving a certificate shall indemnify and hold the Company and its Directors and Officers
harmless from any loss or liability which it or they may incur by reason of any wrongful or
fraudulent use or representation made by any person by virtue of the possession thereof. If a certificate for Shares is worn out or lost
it may be renewed or, in connection with any proposed share transfer, a new certificate may be issued, on production of the worn out certificate
or on satisfactory proof of its loss together with such indemnity as may be required by the Directors.

4.3 **Joint Holders**. If several Members are registered as joint holders of any Shares, any one of such
Members may give an effectual receipt for any share certificate.

5 ISSUE OF SHARES

5.1 **Issue**. Subject to the provisions, if any, of the Memorandum
and directions given by any Ordinary Resolution and the rights attaching to any class of existing Shares, the Directors may issue, allot,
grant options over or otherwise dispose of Shares (including any fractions of Shares) and other securities of the Company at such times,
to such persons, for such consideration and on such terms as the Directors may determine.

5.2 **Subscriber Share**. Notwithstanding the preceding Article,
the Subscriber shall have the power to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue one Share to itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfer that Share by an instrument of transfer to any person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** update the Register of Members in respect of the issue and transfer of that Share **.** 

5.3 **Preferred Shares**. Shares and other securities of the Company may be issued by the Directors with
such preferred, deferred or other special rights, restrictions or privileges whether in regard to voting, Distributions, a return of capital,
or otherwise and in such classes and series, if any, as the Directors may determine.

5.4 **Ordinary Shares**. Where the Directors issue a Share having no preferred, deferred, redemption or
other special rights, it shall be issued as an ordinary Share and entitle the holder, subject to any other Share having any preferred,
deferred, redemption or other special rights, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) receive notice of, attend and vote at any general meeting of the Company and on any Ordinary Resolution or Special Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an equal share in any dividend or other Distribution paid by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an equal share in the distribution of the surplus assets of the Company.

7 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

5.5 **Consideration for Share Issue**. A Share may be issued for consideration in any form, including money,
a promissory note or other written obligation to contribute money or property, real property, personal property (including goodwill and know-how),
services rendered or a contract for future services.

 

5.6 **Register of Members**. The Register of Members kept by the Company shall contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the names and addresses of each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a statement of the Shares held by each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the distinguishing numbers of the Shares of each Member (if any);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the amount paid, or agreed to be considered as paid, on the Shares of each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the date on which the name of each person was entered on the register as a Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the date on which any person ceased to be a Member.

5.7 **Commission**. The Company is authorised to pay a commission to any person in consideration of his
subscribing or agreeing to subscribe (whether absolutely or conditionally) for any Shares or procuring or agreeing to procure subscriptions
(whether absolute or conditional) for any Shares.

6 VARIATION OF RIGHTS

6.1 **Class Variation**. If, at any time, the share capital of the Company is divided into different classes
of Shares, the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may be varied
with the consent in writing of the holders of two-thirds of the issued Shares of that class or with the sanction of a Special Resolution
passed at a separate general meeting of the holders of the Shares of the class. To every such separate general meeting the provisions
of these Articles relating to general meetings shall, mutatis mutandis, apply, but so that the necessary quorum shall be one or more persons
holding or representing by proxy one-third of the issued Shares of the class and that any holder of Shares of the class present in person
or by proxy may demand a poll.

6.2 **No Variation on Further Issue**. The rights conferred upon the holders of the Shares of any class
shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation
or issue of further Shares ranking *pari passu* therewith.

8 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

7 REDEMPTION, PURCHASE AND SURRENDER OF SHARES AND TREASURY SHARES

7.1 **Redemption, Purchase and Surrender**. Subject to the provisions of the Companies Act and to the rights
attaching to any class of Share, the Company may:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares on terms that they are to be redeemed or are liable to be redeemed at the option of the Company
or the Member on such terms and in such manner as the Directors may, before the issue of such Shares, determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase its own Shares (including any redeemable Shares) on such terms and in such manner as the Directors
determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make a payment in respect of the redemption or purchase of its own Shares in any manner permitted by the
Companies Act including out of capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) permit the surrender of fully paid Shares for no consideration.

7.2 **Effect of Redemption, Purchase and Surrender**. Shares that the Company redeems, purchases, accepts
by way of surrender or otherwise acquires pursuant to Article 7.1 may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be cancelled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be held as Treasury Shares on such terms and in such manner as the Directors determine prior to such acquisition.

7.3 **Treasury Shares**. All rights and obligations attaching to a Treasury Share are suspended and shall
not be exercised by the Company while it holds the Share as a Treasury Share, other than as set out in this Article. The Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cancel the Treasury Shares on such terms and in such a manner as the Directors may determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfer the Treasury Shares in accordance with Article 12.

7.4 **No Participation**. Any Share in respect of which notice of redemption has been given shall not be
entitled to participate in the profits of the Company in respect of the period after the date specified as the date of redemption in the
notice of redemption.

7.5 **No other Redemption**. The redemption, purchase or surrender of any Share shall not be deemed to
give rise to the redemption, purchase or surrender of any other Share.

7.6 **Redemption in Kind**. The Directors may, when making payments in respect of redemption or purchase
of Shares, if authorised by the terms of issue of the Shares being redeemed or purchased or with the agreement of the holder of such Shares,
make such payments either in cash or in kind.

9 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

---

| | |
|:---|:---|
| 8 | LIEN |

---

8.1 **All Monies Payable**. The Company shall have a first and paramount lien on every Share, whether or
not it is a fully paid Share, for all moneys, whether presently payable or not, called or payable at a fixed time in respect of that
Share and for all debts, liabilities or other obligations owed, whether presently or not, by the Member or by one or more joint Members
or by any of their estates to the Company (together, the Lien Amounts) but the Directors may, at any time, declare any Share to be wholly
or in part exempt from this Article. The Company's lien, if any, on a Share shall extend to all Distributions payable thereon. Any
registration of the transfer of a Share shall operate to extinguish the Company's lien on that Share.

8.2 **Sale**. The Company may sell, in such manner as the Directors think fit, any Shares in which the
Company has a lien, but no sale shall be made unless some amount in respect of which the lien exists is presently payable and the period
of fourteen days has elapsed after the Company has given a notice in writing, stating and demanding payment of such part of the presently
payable amount, to the relevant Member.

8.3 **Registration of Purchase**. The Directors may authorise any person to transfer the Shares sold in
accordance with this Article to the purchaser of such Shares. The purchaser shall be registered as the holder of the Shares so transferred
and he shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity
or invalidity in the sale of the Shares in accordance with this Article.

8.4 **Application of Proceeds**. The proceeds of the sale, net of any costs incurred by the Company in
relation to the sale, shall be applied by the Company in payment of such part of the amount in respect of which the lien exists as is
presently payable. The Company shall retain and have a lien over such part of the remainder of the proceeds as is equal to the Lien Amounts
which exist but are not presently payable by the Member and may apply such proceeds against the Lien Amounts as and when they become payable
and the residue shall be paid to the person entitled to the Shares at the date of the sale.

9 CALLS ON SHARES

9.1 **Calls**. The Directors may, from time to time, make calls upon the Members in respect of some or
all of any moneys unpaid on their Shares, whether in respect of their par value or the premium payable on those Shares; each Member shall
(subject to receiving at least 14 days' notice specifying the time or times of payment) pay to the Company at the time or times
so specified the amount called on his Shares. A call may be required to be paid in instalments. The Directors may revoke or postpone a
call at any time.

9.2 **Joint Holders**. The joint holders of a Share shall be jointly and severally liable to pay calls
in respect thereof and the holder or joint holders of a Share at the time of a call shall remain liable to pay the call on that Share,
notwithstanding any subsequent transfer of the Share being registered by the Company.

9.3 **Interest on Calls**. If a sum called in respect of a Share is not paid before or on the day appointed
for payment of that call, the Member from whom such amount is due shall pay interest upon the sum at such rate as the Directors
may determine from the day appointed for payment of the call to the time of the actual payment. The Directors shall have the discretion
to waive payment of any such interest in full or in part.

10 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

9.4 **Fixed Payment Dates**. The provisions contained in these Articles in respect of calls shall apply
to payments, whether on account of the amount of the Share, or by way of premium, to be made on the allotment of a Share or any date fixed
on the issue of the Share as if the same had become payable by virtue of a call duly made and notified.

10 FORFEITURE

10.1 **Failure to pay Call**. If a Member fails to pay any call or instalment of a call in respect of Shares
on the day appointed for payment, the Directors may serve a notice on such Member naming a further date not earlier than the expiration
of 14 days from the date of service on or before which the payment required by the notice is to be made and containing a statement that
in the event of non-payment the Shares, or any of them, will be liable to be forfeited.

10.2 **Forfeiture**. If the requirements of the notice referenced in this Article are not complied with
the Company may forfeit the Shares together with any Distributions declared payable in respect of the forfeited Shares and not paid at
any time before tender of payment.

10.3 **No Refund**. The Company is under no obligation to refund any moneys to the Member whose Shares have
been forfeited.

10.4 **Sale of Forfeited Share**. A forfeited Share may be sold or otherwise disposed of on such terms and
in such manner as the Directors think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms
as the Directors think fit. The proceeds of any sale or disposition of the forfeited Share may be received and used by the Company as
the Directors determine.

10.5 **Outstanding Liability**. A person whose Shares have been forfeited shall cease to be a Member in
respect of the forfeited Shares, but shall, notwithstanding, remain liable to pay to the Company all moneys which at the date of forfeiture
were payable by him to the Company in respect of the Shares together with interest.

10.6 **Certificate of Forfeiture**. A certificate in writing under the hand of a Director or Officer stating
that a Share has been duly forfeited on the date stated in the certificate shall be conclusive evidence of the facts stated in the certificate
as against all persons claiming to be entitled to the Share. The Directors may authorize any person to transfer the Shares sold in accordance
with this Article to the purchaser of such Shares. The purchaser shall be registered as the holder of the Shares so transferred and he
shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity
or invalidity in the sale of the Shares in accordance with this Article.

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10.7 **Fixed Payment Dates**. The provisions of this Article applying to forfeiture for failure to pay any
call or instalment of a call shall apply to the failure to make payments, whether on account of the amount of the Share, or by way of
premium, to be made on the allotment of a Share or any date fixed on the issue of the Share as if the same had become payable by virtue
of a call duly made and notified.

11 TRANSMISSION OF SHARES

11.1 **Legal Personal Representative**. The legal personal representative of a deceased sole holder of a
Share shall be the only person recognised by the Company as having any title to the Share. In the case of a Share registered in the names
of two or more holders, the survivors, survivor or the legal personal representatives of the deceased survivor, shall be the only person(s)
recognised by the Company as having any title to the Share.

11.2 **Transmission**. Any person becoming entitled to a Share in consequence of the death or bankruptcy
of or any analogous event affecting a Member (each such event a Transmission Event and each such person a Representative) shall, upon
such evidence being produced as may from time to time be required by the Directors, have the right either to be registered as a Member
in respect of the Share or, instead of being registered himself, to make such transfer of the Share as the Member could have made; but
the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer
of the Share by such Member before the occurrence of a Transmission Event.

11.3 **Pre-Registration Status**. Representatives shall be entitled to the same notices, dividends and other
advantages to which he would be entitled if he were the registered holder of the Share, except that he shall not, before being registered
as a Member in respect of the Share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings
of the Company.

11.4 **Requirement for Registration**. The Directors may at any time give notice requiring a Representative
to elect either to be registered himself or to have some person nominated by him become the holder of the Share (but the Directors shall,
in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by
the relevant Member before the Transmission Event). If the notice is not complied with within ninety days the Directors may thereafter
withhold payment of all Dividends, bonuses or other monies payable in respect of the Share until the requirements of the notice have been
complied with.

12 TRANSFER OF SHARES

12.1 **Directors' Consent**. Shares and Treasury Shares are transferable, subject to the consent of
the Directors who may, in their absolute discretion, refuse to consent to any transfer and decline to register the transfer without giving
any reason.

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12.2 **Instrument of Transfer**. The instrument of transfer shall be in writing in such form as may be acceptable
to the Directors and shall be executed by or on behalf of the transferor and, if required by the Directors, signed by the transferee.

12.3 **Certificates**. Subject to Article 4.2, where the Company has issued a certificate in respect of
a Share proposed to be transferred, the transferor shall lodge, with the instrument of transfer, the original certificate relating to
the Share being transferred.

12.4 **Effective Date**. The transfer of a Share is effective when the name of the transferee is entered
on the Register of Members. Until such time, the transferor shall be deemed to remain a Member.

12.5 **Lost Certificate**. If the Directors are satisfied that an instrument of transfer relating to Shares
has been signed but that the instrument has been lost or destroyed, they may, on receipt of such indemnities as they may require:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept such evidence of the transfer of Shares as they consider
appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) proceed to register the transferee's name in the Register
of Members.

12.6 **Notification of Refusal**. Where the Directors refuse to register a transfer of a Share, they shall,
within two months after the date on which the transfer was lodged with the Company, notify the transferee of the refusal.

12.7 **Transfer of Treasury Shares**. The transfer of Treasury Shares may be for valuable consideration
or otherwise, and at a discount to the par value of the Shares.

13 REGISTERED HOLDER DEEMED ABSOLUTE OWNER

13.1 The registered holder of a Share shall be treated as the absolute owner of such Share. No person shall
be recognised by the Company as holding any Share upon trust and the Company shall not register nor be bound by or required to recognise
any equitable or other interest of whatever nature in a Share other than an absolute right to the Share, irrespective of whether the Company
has notice of such interest.

14 ALTERATION OF SHARE CAPITAL

14.1 **Increase or Amendment**. The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase the share capital by such sum, to be divided into Shares
of such amount, and with such rights, privileges, priorities and restrictions attached to them as the resolution shall prescribe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing
Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to section 13 of the Companies Act, sub-divide its existing Shares, or any of them, into Shares of smaller amounts than is
fixed by the Memorandum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any Shares which, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person.

14.2 **Reduction**. Subject to the provisions of the Companies Act and these Articles, the Company may,
by Special Resolution, reduce its share capital and any capital redemption reserve in any manner.

15 MEETINGS AND CONSENTS OF MEMBERS

15.1 **Meetings**. All meetings of Members shall be referred to as extraordinary general meetings unless
the general meeting is an annual general meeting. The Company may but shall not be obliged to hold an annual general meeting.

15.2 **Directors Convene**. Any Director may convene meetings of the Members at such times and in such manner
and places within or outside the Cayman Islands as the Director considers necessary or desirable.

15.3 **Members Convene**. Upon the written request of Members entitled to exercise 10% or more of the voting
rights in respect of the matter for which the meeting is requisitioned, any one or more of the Directors shall forthwith proceed to convene
a meeting of Members. The written request of Members to requisition a meeting must state the objects of the meeting and must be signed
by the Members requisitioning the meeting. The written request must be lodged at the Registered Office and may be delivered in counterpart.

15.4 **Failure to Convene**. If the Directors do not proceed to convene a meeting of Members within 21 days
of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the
voting rights of all of them, may convene the meeting of Members in the same manner as nearly as possible as that in which a meeting of
Members may be convened by a Director. Where the requisitionists fail to convene the meeting of Members within three months of their right
to convene the meeting arising, the right to convene the meeting of Members shall lapse.

15.5 **Notice of Meeting**. The Director convening a meeting shall give not less than seven days'
notice of a meeting of Members to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Members whose names on the date the notice is given appear as Members in the Register of Members and are entitled to vote at
the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each of the Directors.

15.6 **Failure to Give General Notice**. A meeting of Members held in contravention of the requirement to
give notice is valid if Members holding at least 90% of the total voting rights on all the matters to be considered at the meeting have waived notice
of the meeting and, for this purpose, the presence of a Member at the meeting shall constitute waiver in relation to all the Shares which
that Member holds.

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15.7 **Failure to give Individual Notice**. The inadvertent failure of a Director who convenes a meeting
to give notice of a meeting to a Member or another Director, or the fact that a Member or another Director has not received notice, does
not invalidate the meeting.

15.8 **Voting**. No person shall be entitled to vote at any meeting of Members unless he is registered as
a Member on the record date for such meeting and all calls or other moneys payable by him in respect of Shares have been paid at or before
the record date. Subject to the rights and restrictions attached to any Shares and the provisions of this Article, each Member who is
present in person, by its duly authorised representative or by proxy, shall have one vote and on a poll each Member shall have one vote
for every Share of which he is the holder.

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| 16 | PROXIES |

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16.1 **Proxies**. A Member may be represented at a meeting of Members by a proxy who may speak and vote
on behalf of the Member.

16.2 **Production of Proxies**. The instrument appointing a proxy shall be produced at the place designated
for the meeting before the time for holding the meeting at which the person named in such instrument proposes to vote. The notice of the
meeting may specify an alternative or additional place or time at which the proxy shall be presented.

16.3 **Form of Proxy**. An instrument appointing a proxy may be in any usual or common form (or such other
form as the Directors may approve) and may be expressed to be for a particular meeting or any adjournment thereof or may appoint a standing
proxy until notice of revocation is received at the Registered Office or at such place or places as the Directors may otherwise specify
for the purpose.

16.4 **Joint Ownership and Proxies**. Where Shares are jointly owned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if two or more persons hold Shares jointly, each of them may
be present in person or by proxy at a meeting of Members and may speak as a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if only one of the joint owners is present in person or by proxy he may vote on behalf of all joint owners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if two or more of the joint owners are present in person or by proxy they must vote as one.

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17 PROCEEDINGS OF SHAREHOLDER MEETINGS

17.1 **Chairman of Member Meeting**. At every meeting of Members, the chairman of the board of Directors
shall preside as chairman of the meeting. If there is no chairman of the board of Directors or if he is not present at the meeting within
fifteen minutes of the time appointed after the meeting or if he is unwilling to act the Directors present shall elect the chairman of
the meeting.

17.2 **Adjournment**. The chairman may, with the consent of the meeting, adjourn any meeting from time to
time, and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at
the meeting from which the adjournment took place.

17.3 **Conference Call**. A Member, or his duly authorised representative or proxy, shall be deemed to be
present at a meeting of Members if he participates by telephone or other electronic means by means of which all the persons participating
in the meeting are able to hear each other.

17.4 **Objections**. No objection shall be raised to the qualification of any voter except at the meeting
of members or adjourned meeting of Members at which the vote objected to is given or tendered and every vote not disallowed at the meeting
shall be valid. Any objection made in due time shall be referred to the chairman whose decision shall be final and binding on all parties.

17.5 **Casting of Votes**. A Member holding more than one Share need not cast the votes in respect of the
Shares held by him in the same way on any resolution for which a poll is taken. A person appointed as the authorised representative or
proxy of a Member may cast the votes in respect of the Shares for which he is appointed in a like manner.

17.6 **Quorum**. A meeting of Members is duly constituted if, at the commencement of the meeting, there
are present in person, through their authorised representative or by proxy two or more Members entitled to vote on resolutions of Members
to be considered at the meeting except where there is only one Member entitled to vote on resolutions of Members to be considered at the
meeting in which case the quorum shall be one Member. Where a quorum comprises a single Member or proxy, such person may pass a resolution
of Members and a certificate signed by such person accompanied where such person be a proxy by a copy of the proxy instrument shall constitute
a valid resolution of Members.

17.7 **No Quorum**. If within two hours from the time appointed for the meeting a quorum is not present,
the meeting, if convened upon the requisition of Members, shall be dissolved; in any other case it shall stand adjourned to the next business
day in the jurisdiction in which the meeting was to have been held at the same time and place or to such other time and place as the Directors
may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the
Members present shall be a quorum.

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17.8 **Polls**. At any meeting of the Members the chairman is responsible for deciding in such manner as
he considers appropriate whether any resolution proposed has been carried or not and the result of his decision shall be announced to
the meeting and recorded in the minutes of the meeting. If the chairman has any doubt as to the outcome of the vote on a proposed resolution,
he shall cause a poll to be taken of all votes cast upon such resolution. If the chairman fails to take a poll then any Member present
in person or by proxy who disputes the announcement by the chairman of the result of any vote may immediately following such announcement
demand that a poll be taken and the chairman shall cause a poll to be taken. If a poll is taken at any meeting, the result shall be announced
to the meeting and recorded in the minutes of the meeting. The minutes of the meeting shall be conclusive evidence of the fact that a
resolution was carried or not without proof of the number or proportion of the votes recorded in favour of or against such resolution.

17.9 **Director Participation**. Directors may attend and speak at any meeting of Members and at any separate
meeting of the holders of any class or series of Shares.

17.10 **Unanimous Written Resolutions**. Any Ordinary or Special Resolution of Members and any other action
that may be taken by the Members at a meeting may also be taken by a resolution consented to in writing, without the need for any notice,
by all Members who would have been entitled to attend and vote at a meeting called for the purpose of passing such a resolution or taking
any other action. The consent may be in the form of counterparts, each counterpart being signed by one or more Members. If the consent
is in one or more counterparts, and the counterparts bear different dates, then the resolution shall take effect on the latest date borne
by the counterparts.

18 APPOINTMENT AND REMOVAL OF DIRECTORS

18.1 **Number of Directors**. The Company shall have a board of Directors consisting of not less than one
Director. The Company may by Ordinary Resolution impose a maximum or minimum number of Directors required to hold office at any time and
vary such limits from time to time.

18.2 **Appointment of Directors**. The first Directors shall be appointed by the subscribers to the Memorandum
by a written instrument signed by all the subscribers or by an Ordinary Resolution passed by the subscribers. Thereafter, subject to the
limits set out in the preceding Article, Directors shall be appointed by Ordinary Resolution or by a resolution of the Directors and may
be removed by Ordinary Resolution.

18.3 **Term**. Each Director holds office for the term, if any, fixed by the terms of his appointment or
until his earlier death, bankruptcy, insanity, resignation or removal. If no term is fixed on the appointment of a Director, the Director
serves indefinitely until his earlier death, bankruptcy, insanity, resignation or removal.

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18.4 **Vacation**. The office of a Director shall be vacated if:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he gives notice in writing to the Company that he resigns the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he absents himself (without being represented by an alternate Director appointed by him) from three consecutive
meetings of the board of Directors without special leave of absence from the Directors, and they pass a resolution that he has by reason
of such absence vacated office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he is found to be or becomes of unsound mind; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all the other Directors (being not less than two in number) resolve that he should be removed as a Director.

19 REGISTER OF DIRECTORS AND OFFICERS

19.1 **Details**. The Register of Directors and Officers shall contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the names and addresses of the persons who are Directors and
Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date on which each person whose name is entered in the register was appointed as a Director or Officer;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the date on which each person named as a Director or Officer ceased to be a Director or Officer.

20 POWERS OF DIRECTORS

20.1 **Management by Directors**. Subject to the provisions of the Companies Act, the Memorandum, these
Articles and any directions given by Ordinary Resolution, the business and affairs of the Company shall be managed by, or under the direction
or supervision of, the Directors. The Directors shall have all the powers necessary for managing, and for directing and supervising, the
business and affairs of the Company as are not by the Companies Act, the Memorandum, these Articles or the terms of any Special Resolution
required to be exercised by the Members. No alteration of the Memorandum or these Articles or any direction given by Ordinary or Special
Resolution shall invalidate any prior act of the Directors that was valid at the time undertaken. A duly convened meeting of Directors
at which a quorum is present may exercise all powers exercisable by the Directors.

20.2 **Good Faith**. Each Director shall exercise his powers for a proper purpose. Each Director, in exercising
his powers or performing his duties, shall act honestly and in good faith in what the Director believes to be the best interests of the
Company.

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20.3 **Acting in Vacancy**. The continuing Directors may act notwithstanding any vacancy in their body,
but if and for so long as their number is below any minimum number of Directors fixed by or pursuant to these Articles, the continuing
Directors may act for the purpose of passing a resolution to appoint further Directors to the board of Directors and of convening a meeting
of Members to appoint further Directors but for no other purpose.

20.4 **Indebtedness and Security**. The Directors may exercise all the powers of the Company to incur indebtedness,
liabilities or obligations and to issue debentures, debenture stock, mortgages, bonds and other such securities and to secure indebtedness,
liabilities or obligations whether of the Company or of any third party.

21 PROCEEDINGS OF DIRECTORS

21.1 **Quorum**. The quorum for the transaction of the business of the Directors may be fixed by the Directors,
and unless so fixed shall be two if there are two or more Directors, and shall be one if there is only one Director. A person who holds
office as an alternate Director shall be counted in the quorum. A Director who also acts as an alternate Director shall count twice towards
the quorum.

21.2 **Voting**. Subject to the provisions of these Articles, the Directors may regulate their proceedings
as they think fit. Questions arising at any meeting shall be decided by a majority of votes. In the case of an equality of votes, the
chairman shall not have a second or casting vote. A Director who is also an alternate Director shall be entitled to a separate vote on
behalf of his appointor in addition to his own vote.

21.3 **Conference Call**. A person may participate and vote in a meeting of the Directors or committee of
Directors by telephone or other electronic means by means of which all the persons participating in the meeting are able to hear each
other. Unless otherwise determined by the Directors the meeting shall be deemed to be held at the place where the chairman is at the start
of the meeting.

21.4 **Unanimous Written Resolution**. A resolution in writing (in one or more counterparts) signed by all
the Directors or all the members of a committee of Directors (an alternate Director being entitled to sign any such resolution on behalf
of his appointor) shall be as valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as
the case may be, duly convened and held.

21.5 **Notice of Meetings**. A Director may, or other Officer on the requisition of a Director shall, call
a meeting of the Directors by at least two days' notice in writing to every Director which notice shall set forth the general nature of
the business to be considered unless notice is waived by all the Directors either at, before or after the meeting is held.

21.6 **Chairman of the Board**. The Directors may elect a chairman of their board and determine the period
for which he is to hold office; but if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time
appointed for holding the same, the Directors present may choose one of their number to be chairman of the meeting.

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21.7 **Defects**. Absent fraud, all acts done by any meeting of the Directors or a committee of Directors
shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any Director or alternate Director,
or that they or any of them were disqualified, be as valid as if every such person had been duly appointed and qualified to be a Director
or alternate Director as the case may be.

22 PRESUMPTION OF ASSENT

22.1 A Director who is present at a meeting of the board of Directors at which action on any Company matter
is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless
he shall file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment
thereof. Such right to dissent shall not apply to a Director who voted in favour of such action.

23 DIRECTORS' INTERESTS

23.1 **Other Office**. A Director may hold any other office or place of profit under the Company (other
than the office of auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise
as the Directors may determine. A Director may act by himself or his firm in a professional capacity for the Company and he or his firm
shall be entitled to remuneration for professional services as if he were not a Director or alternate Director.

23.2 **No Exclusivity**. A Director or alternate Director may be or become a director or other officer of
or otherwise interested in any company promoted by the Company or in which the Company may be interested as shareholder or otherwise,
and no such Director or alternate Director shall be accountable to the Company for any remuneration or other benefits received by him
as a director or officer of, or from his interest in, such other company.

23.3 **Disclosure of Interests**. No person shall be disqualified from the office of Director or alternate
Director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract
or any other contract or transaction entered into by or on behalf of the Company in which any Director or alternate Director shall be
in any way interested be or be liable to be avoided, nor shall any Director or alternate Director so contracting or being so interested
be liable to account to the Company for any profit realised by any such contract or transaction by reason of such Director holding office
or of the fiduciary relation thereby established. A Director (or his alternate Director in his absence) shall be at liberty to vote in
respect of any contract or transaction in which he is interested provided that the nature of the interest of any Director or alternate
Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

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23.4 **General Notice of Interests**. A general notice that a Director or alternate Director is a shareholder,
director, officer or employee of any specified firm or company and is to be regarded as interested in any transaction with such firm or
company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he
has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

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| 24 | MINUTES |

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24.1 The Directors shall cause minutes to be made in books kept for the purpose of all appointments of officers
made by the Directors, all proceedings at meetings of the Company or the holders of any class of Shares and of the Directors, and of committees
of Directors including the names of the Directors or alternate Directors present at each meeting.

25 DELEGATION OF DIRECTORS' POWERS

25.1 **Delegation**. The Directors may delegate any of their powers to any committee consisting of one or
more Directors. They may also delegate to any managing director or any Director holding any other executive office such of their powers
as they consider desirable to be exercised by him provided that an alternate Director may not act as managing director and the appointment
of a managing director shall automatically terminate if he ceases to be a Director. Any such delegation may be made subject to any conditions
the Directors may impose and may be revoked or altered. Subject to any such conditions, the proceedings of a committee of Directors shall
be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying.

25.2 **Committees**. The Directors may establish any committees, local boards or agencies or appoint any
person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees or
local boards. Any such appointment may be made subject to any conditions the Directors may impose, and may be revoked or altered. Subject
to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating the
proceedings of Directors, so far as they are capable of applying.

25.3 **Third Party Delegation**. The Directors may by power of attorney or otherwise appoint any company,
firm, person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory
of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the
Directors under these Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney
or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorised
signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of
the powers, authorities and discretions vested in him.

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25.4 **Officers**. The Directors may appoint such Officers as they consider necessary on such terms, at
such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think
fit. Unless otherwise specified in the terms of his appointment an officer may be removed by the Directors.

26 ALTERNATE DIRECTORS

26.1 **Alternate Appointment**. Any Director (other than an alternate Director) may by writing in notice
to the Company appoint any other Director, or any other person willing to act, to be an alternate Director.

26.2 **Conduct of Alternates**. An alternate Director shall be entitled to receive notice of all meetings
of Directors and of all meetings of committees of Directors of which his appointor is a member, to attend and vote at every such meeting
at which the Director appointing him is not personally present, and, save as expressly provided herein, to perform all the functions and
exercise all of the powers of his appointor as a Director in his absence.

26.3 **Automatic termination**. An alternate Director shall cease to be an alternate Director if his appointor
ceases to be a Director.

26.4 **No Agency**. An alternate Director shall be deemed for all purposes to be a Director and shall alone
be responsible for his own acts and defaults and shall not be deemed to be the agent of the Director appointing him.

27 NO MINIMUM SHAREHOLDING

27.1 The Company in general meeting may fix a minimum shareholding required to be held by a Director, but unless
and until such a shareholding qualification is fixed a Director is not required to hold Shares.

28 REMUNERATION OF DIRECTORS

28.1 **Office Remuneration**. The remuneration to be paid to the Directors, if any, shall be such remuneration
as the Directors shall determine. The Directors shall also be entitled to be paid all travelling, hotel and other expenses properly incurred
by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the Company, or
separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of
the Company, or to receive a fixed allowance in respect thereof as may be determined by the Directors, or a combination of such methods.

28.2 **Additional Remuneration**. The Directors may by resolution approve additional remuneration to any
Director for any services other than his ordinary routine work as a Director. Any fees paid to a Director who is also counsel or solicitor to the Company,
or otherwise serves it in a professional capacity shall be in addition to his remuneration as a Director.

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![](ex3-1_001.jpg)

28.3 **Pensions**. The Directors, on behalf of the Company, may pay a gratuity or pension or allowance on
retirement to any Director who has held any other salaried office or place of profit with the Company or to his widow or dependants and
may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

29 INDEMNIFICATION

29.1 **Indemnity and Exclusion of Liability**. Every Director, alternate Director or Officer shall be indemnified
out of the assets of the Company against any liability incurred by him as a result of any act or failure to act in carrying out his functions
other than such liability (if any) that he may incur by his own actual fraud or wilful default. No such Director, alternate Director or
Officer shall be liable to the Company for any loss or damage in carrying out his functions unless that liability arises through the actual
fraud or wilful default of such Director or officer. References in this Article to actual fraud or wilful default mean a finding to such
effect by a competent court in relation to the conduct of the relevant party.

29.2 **Advancement of Expenses**. Expenses, including legal fees, incurred by a Director, alternate Director
or Officer, or former Director, alternate Director or Officer in defending any legal, administrative or investigative proceedings may
be paid by the Company in advance of the final disposition of such proceedings upon receipt of an undertaking by such party to repay the
amount if it shall ultimately be determined that such Director, alternate Director or Officer is not entitled to be indemnified by the
Company and upon such terms and conditions, if any, as the Company deems appropriate.

29.3 **Insurance**. The Company may purchase and maintain insurance in relation to any person who is or
was a Director, alternate Director, Officer or liquidator of the Company, or who at the request of the Company is or was serving as a
Director, alternate director, Officer or liquidator of, or in any other capacity is or was acting for, another body corporate or a partnership,
joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in that capacity.

---

| | |
|:---|:---|
| 30 | RECORDS |

---

30.1 **Registered Office Records**. The Company shall keep the following documents at the Registered Office:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Certificate of Incorporation and any Certificate on Change
of Name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a copy of the Memorandum and Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Register of Directors and Officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent the Company has created a security interest over any of its assets the Register of Mortgages
and Charges required to be maintained by the Company under Section 54 of the Companies Act.

23 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

30.2 **Other Corporate Records**. The Company shall keep the following records at the Registered Office
or at such other place or places, within or outside the Cayman Islands, as the Directors may determine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) minutes of meetings, Ordinary Resolutions and Special Resolutions of Members and classes of Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Register of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) minutes of meetings and Resolutions of Directors and committees of Directors.

30.3 **Electronic Form**. All of the registers and records kept by the Company under these Articles shall
be in written form or either wholly or partly as electronic records complying with the requirements of the Electronic Transactions Act.

---

| | |
|:---|:---|
| 31 | SEAL |

---

31.1 **Use of Seal**. The Company may, if the Directors so determine, have a Seal. The Seal shall only be
used by the authority of the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal
has been affixed shall be signed by at least one person who shall be either a Director or an Officer or other person appointed by the
Directors for the purpose.

31.2 **Duplicate Seal**. The Company may have for use in any place or places outside the Cayman Islands
a duplicate Seal or Seals each of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with
the addition on its face of the name of every place where it is to be used.

31.3 **Authentication and Filing**. A Director or Officer, representative or attorney of the Company may
without further authority of the Directors affix the Seal over his signature alone to any document required to be authenticated by him
under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

32 DISTRIBUTIONS

32.1 **Payment of Distributions**. Subject to the Companies Act and this Article, the Directors may declare
and pay out of the funds of the Company lawfully available for such purpose a Distribution at a time and of an amount they think fit.
No Distribution shall be paid except out of the realised and unrealised profits of the Company, and/or out of the share premium account
and/ or as otherwise permitted by the Companies Act.

24 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

 

32.2 **Ranking**. Except as otherwise provided by the rights attached to Shares, all Distributions shall
be declared and paid according to the par value of the Shares that a Member holds. The Company may pay Distributions in proportion to
the amount paid upon each Share where a larger amount is paid up on some Shares than on others. If any Share is issued on terms providing
that it shall rank for Distributions as from a particular date, that Share shall rank for Distributions accordingly.

32.3 **Deductions**. The Directors may deduct from any Distribution payable to any Member all sums of money,
if any, then payable by him to the Company on account of calls or otherwise.

32.4 **Distribution in Kind**. The Directors may declare that any Distribution be paid wholly or partly
by the distribution of specific assets and in particular of shares, debentures, or securities of any other company or in any one or more
of such ways and the Directors may settle the same as they think expedient and in particular may issue fractional Shares and fix the value
for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any Members upon the
basis of the value so fixed in order to adjust the rights of all Members and may vest any such specific assets in trustees as may seem
expedient to the Directors.

32.5 **Payment**. Any Distribution payable in cash in respect of Shares may be paid by electronic funds
transfer to the holder or by cheque or warrant sent through the post directed to the registered address of the holder or, in the case
of joint holders, to the registered address of the holder who is first named on the Register of Members or to such person and to such
address as such holder or joint holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the
person to whom it is sent. Any one of two or more joint holders may give effectual receipts for any Distributions payable in respect of
the Shares held by them as joint holders.

32.6 **No Interest**. No Distribution shall bear interest as against the Company and no distribution shall
be paid on Treasury Shares.

32.7 **Unclaimed Payments**. Any Distribution which cannot be paid to a Member and/or which remains unclaimed
after six months from the date of declaration of such Distribution may, in the discretion of the Directors, be paid into a separate account
in the Company's name, provided that the Company shall not be constituted as a trustee in respect of that account and the Distribution
shall remain as a debt due to the Member. Any Distribution which remains unclaimed after a period of six years from the date of declaration
of such Distribution shall be forfeited and shall revert to the Company.

33 CAPITALISATIONS

33.1 **Capitalisations**. The Directors may capitalise any sum standing to the credit of any of the Company's
reserve accounts (including share premium account and capital redemption reserve) or to the credit of profit and loss account or otherwise
available for distribution and appropriate such sum to Members in the proportions in which such sum would have been divisible amongst
them had the same been a Distribution of profits by way of dividend and apply such sum on their behalf in paying up in full unissued
Shares for issue, allotment and distribution credited as fully paid-up to and amongst them in the proportions aforesaid. In such event
the Directors may make such provisions as they think fit in the case of Shares becoming distributable in fractions.

25 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

34 RECORD DATE

34.1 **Record Date Determination**. For the purpose of determining Members entitled to attend meetings,
receive payment of any Distribution or capitalisation or for any other purpose, the Directors may provide that the Register of Members
shall be closed for transfers for a stated period which shall not in any case exceed forty days. In lieu of, or apart from, closing the
Register of Members, the Directors may fix in advance or arrears a date as the record date for any such determination of Members provided
that the record date for a meeting may not be earlier than the date of notice of such meeting.

34.2 **No Record Date Chosen**. If the Register of Members is not so closed and no record date is fixed
for the determination of Members entitled to attend meetings, receive payment of a Distribution or capitalisation, the date on which the
notice of the meeting is given or resolution of the Directors declaring such Distribution or capitalisation is adopted, as the case may
be, shall be the record date for such determination of Members.

35 REPRESENTATION

35.1 **Representation of Legal Persons**. The right of any individual to speak for or represent a Member
or a Director being a legal person shall be determined by the law of the jurisdiction where, and by the documents by which, such legal
person is constituted or derives its existence but save where an objection has been raised by a Member or a Director, the Directors shall
not be obliged to verify the rights of individuals purporting to speak for or represent legal persons. In case of doubt, the Directors
may in good faith seek legal advice from any qualified person and unless and until a court of competent jurisdiction shall otherwise rule,
the Directors may rely and act upon such advice without incurring any liability to any Member or the Company.

36 ACCOUNTS

36.1 **Accounts**. The Company shall keep proper books of account with respect to (a) all sums of money
received and expended by the Company and the matters in respect of which the receipt and expenditure takes place; (b) all sales and purchases
of goods by the Company; and (c) the assets and liabilities of the Company, that in each case, are sufficient to give a true and fair
view of the Company's affairs and to explain its transactions.

36.2 **Inspection**. The Directors shall from time to time determine whether and to what extent and at
 what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to
 the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or
 book or document of the Company except as conferred by the Companies Act
or authorised by the Directors or by the Company in general meeting.

26 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

36.3 **Financial Information**. The Directors may from time to time cause to be prepared and to be laid
before the Company in general meeting profit and loss accounts, balance sheets, group accounts (if any) and such other reports and accounts
as may be required by law.

---

| | |
|:---|:---|
| 37 | AUDIT |

---

37.1 **Auditor**. The Directors may appoint an auditor of the Company who shall hold office until removed
from office by resolution of the Directors, and may fix his or their remuneration.

37.2 **Access Right**. Every auditor of the Company shall have a right of access at all times to the books
and accounts and vouchers of the Company and shall be entitled to require from the Directors and Officers such information and explanation
as may be necessary for any audit.

37.3 **Auditor Reports**. Auditors shall, if so required by the Directors, make a report on the accounts
of the Company during their tenure of office at such times as shall be required by the Directors or any meeting of the Members.

---

| | |
|:---|:---|
| 38 | NOTICES |

---

38.1 **Calculation of Elapsed Time**. Subject to the laws of the Cayman Islands, where any period of time
is expressed as required for the giving of any notice or in any other case where some other action is required to be undertaken within
or omitted from being taken during a specified period of time, the calculation of the requisite period of time will not include the day
on which the notice is given (or deemed to be given) or the day on which the event giving rise to the need to take or omit action occurred,
but shall include the day on which the period of time expires.

38.2 **Delivery of Notices**. Notices shall be in writing and may be given by the Company to any Member
either personally or by sending it by courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of
Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Any notice, if posted from
one country to another, is to be sent airmail. E-mail notices may be sent by e-mail text and/or by way of a document attached to an email
in portable document format (PDF) or in Microsoft Word format and/or by any other method separately agreed between the Company and its
Members.

38.3 **Deemed Receipt**. Where a notice is sent by courier, service of the notice shall be deemed to be
effected by delivery of the notice to a courier company, and shall be deemed to have been received on the third day (not including Saturdays
or Sundays or public holidays) following the day on which the notice was delivered to the courier. Where a notice is sent by post, service
of the notice shall be deemed to be effected by properly addressing, pre-paying and posting a letter containing a notice, and shall be
deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays) following the day on which the notice
was posted. Where a notice is sent by cable, telex or
fax, service of the notice shall be deemed to have been received on the same day that it was transmitted. Where a notice is given by e-mail
service it shall be deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall
be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged
by the recipient.

27 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

38.4 **Notices of General Meeting**. Notice of every general meeting shall be given in any manner hereinbefore
authorized to every person shown as a Member in the Register of Members on the record date for such meeting except that in the case of
joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members.

39 VOLUNTARY LIQUIDATION

39.1 Subject to the Companies Act, the Company may by Special Resolution be wound up voluntarily.

40 WINDING UP

40.1 **Distribution of Assets**. If the Company shall be wound up, and the assets available for distribution
amongst the Members shall be insufficient to repay the whole of the share capital, such assets shall be distributed so that, as nearly
as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them. If in a winding up the
assets available for distribution amongst the Members shall be more than sufficient to repay the whole of the share capital at the commencement
of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the
commencement of the winding up subject to a deduction from those Shares in respect of which there are monies due, of all monies payable
to the Company for unpaid calls or otherwise. This Article is without prejudice to the rights of the holders of Shares issued upon special
terms and conditions.

40.2 **Valuation of Assets**. If the Company shall be wound up the liquidator may, with the sanction of
a Special Resolution and any other sanction required by the Companies Act, divide amongst the Members in kind the whole or any part of
the assets of the Company (whether they shall consist of property of the same kind or not) and may for that purpose value any assets and
determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like
sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Members as the liquidator, with
the like sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.

41 CONTINUATION

41.1 The Company may, subject to the provisions of the Companies Act and with the approval of a Special Resolution,
transfer and be registered by way of continuation as a body corporate limited by shares under
the laws of any jurisdiction outside the Cayman Islands and be de-registered in the Cayman Islands.

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![](ex3-1_001.jpg)

42 AMENDMENT OF THE MEMORANDUM AND ARTICLES

42.1 Subject to the Companies Act and the rights attaching to any class or series of Shares, the Company may
by Special Resolution change its name or alter or amend these Articles and/ or the Memorandum in whole or in part.

Dated: 8 July 2021

---

| | |
|:---|:---|
| **SUBSCRIBER** | **NUMBER OF SHARES TAKEN** |
| **Harneys Fiduciary (Cayman) Limited** | **1 Share** |
| **P.O. Box 10240** |  |
| **Grand Cayman KY1-1002** |  |
| **Cayman Islands** |  |

---

---

| |
|:---|
| /s/ Bonnie Sin |
| Bonnie Sin |
| Acting as duly authorised signatory <br> For and on behalf of |
| Harneys Fiduciary (Cayman) Limited |

---

---

| |
|:---|
| /s/ Katy Chow |
| Katy Chow |
| Witness to the above signature |

---

29 *Auth Code: H62639701064<br> www.verify.gov.ky*

## Exhibit 10.1

**Exhibit 10.1**

**CONTRACT OF LABOUR**

<u>Employer (hereinafter referred to as Party A): Jiangsu HUHU Electromechanical Technology Co., LTD</u> 

legal representative: _______________

telephone: ______________

Address: _________________________________

Worker (hereinafter referred to as Party B):<u> </u>____________

sex: ___________

date of birth: _____________

<u> </u>

postal address: ___________

Citizen ID Card No.:<u> </u>______________

contact number: ________________

To establish the labor relations of the two parties,clarify the rights and obligations of both parties, according to the labor law of the People's Republic of China, the labor contract law of the People's Republic of China and other laws and regulations, in the principal of legal, fair, equal, voluntary, consensus, honesty, parties agreed to sign this labor contract, and conclude the following terms:

**1. Term of the labor contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Upon the request of Party B and both parties agree through negotiation, the term of the labor contract shall be as follows

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Fixed term: since____ year____ moon ____ From the day to____ year____ moon____ Date ended, including the probation period ____ A month. Probation period from year moon From the day to year moon Day stop. day to<u> </u>year moon Day stop.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. No fixed period: since year moon From the day to the legal conditions for termination of the labor contract appear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Upon expiration of the labor contract, if both parties fail to terminate the contract or renew the labor contract, Party B shall work in Party A for more than one month

The term of the original labor contract is deemed to be automatically extended for one year, and can be automatically extended for many times. If Party B meets the Labor Contract Law of the People's Republic of China and relevant laws and regulations and stipulates the conditions for signing non-ended labor contract, the labor contract between both parties shall be extended to non-ended labor contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the term of the labor contract, if Party B reaches the legal retirement age or begins to enjoy the basic endowment insurance benefits according to law, the labor contract shall terminate from the date of reaching the above circumstances. If Party B continues to work in Party A, both parties shall establish a labor relationship.

2. Working place

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B's working place is____ , A Wuxi B According to Party A's work needs, Party B agrees to the work place arranged by Party A <u>According to the actual project operation needs</u> Party B shall perform its labor obligations in the actual project operation place, and Party B's failure to perform the actual project operation obligations shall be regarded as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party A has informed Party B that Party B is clearly aware of party A's actual business place adjustment within the contract term, and Party B is still willing to sign this Contract after consideration, and is willing to abide by Article 4.

**3. job content**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall obey Party A's work arrangement and engage in it Job position; for specific tasks, responsibilities and job standards, see the job position / job description, operation specifications, work guidance documents and other relevant documents provided by Party A, as well as the arrangement and requirements of Party A's management personnel. Party B determines that the working environment of this position is: □ non-high temperature environment, □ high temperature environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Under any of the following circumstances, Party B shall voluntarily obey other positions arranged by Party A, and party B's will be determined according to the new position after the adjustment.

1) Both parties agree to change the work position (type of work)

2) Party B fails to complete the monthly task and performance indicators for two consecutive months;

3) Party A fails to arrange the original position due to changes in project cancellation or completion, organization adjustment, department cancellation, post merger and equipment update;

4) If Party B fails to work for one consecutive month or more than one month, Party A has arranged other employees to replace Party B

Party B returns to the post again;

5) Party B's parents, spouse, children, brothers and sisters work in Party A, and Party A thinks it is not conducive to the work and needs post transfer;

6) The laws, administrative regulations and administrative rules based on which the labor contract is concluded have changed, resulting in the post must be adjusted;

7) Party B needs to be transferred according to Party B's work performance, physical condition and Party A's production and operation needs;

8) Improper performance appraisal or incompetent work in the performance appraisal;

9) The position should be adjusted as stipulated in Party A's rules and regulations.

**Four, working hours, rest and vacation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party A shall arrange Party B to implement the standard working hour system and implement the rest and vacation measures stipulated by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If Party A needs Party B to work overtime due to work, Party B shall go through the overtime application procedures according to relevant regulations, and Party A shall pay overtime according to law salary. Party A does not agree with Party B to work overtime voluntarily. If only the time card record or other evidence proves that Party B extends the attendance time, it shall not be recorded as "overtime". If Party B voluntarily works overtime or voluntarily or otherwise cannot be recorded as overtime, it shall not enjoy the overtime treatment stipulated by law and agreed herein.

**5. remuneration of labor**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B's salary shall be subject to the salary description signed by the company. Party A may pay Party B the rewards other than those agreed upon herein regularly or irregularly according to the business conditions, but Party A has no obligation to pay them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Party B seriously violates the company rules and regulations and does not enjoy all the current (annual, quarterly and monthly) bonuses, allowances and subsidies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If Party B completes the prescribed work tasks and meets the prescribed quality standards, Party A (or the unit designated by Party A) is assigned to 30 percent per month Party B shall be paid the last month's salary in full by transfer in legal currency or in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. When Party B rescinds (terminates) the labor contract, Party A shall pay the unpaid wages, and the wages settlement shall not be completed until after Party B completes the work handover. During the wage settlement, Party A shall pay the wages in the form of cash or bank transfer. If Party B fails to complete the work handover in Party A, resulting in the late wage payment, it shall not constitute arrears or deduction of wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Due to wage calculation standard is not clear or improper calculation method cause party a pay party b wages less, or party b refused to receive, does not belong to the arrears or deduct wages, party b shall find party a to verify, verify party a pay is error, party a shall timely take measures, reissue party b corresponding wage remuneration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Each time Party B receives wages, remuneration and other income (including bonuses, allowances, subsidies and various deductions), All expenses shall be carefully calculated; if there is any objection to the salary, remuneration and other income (including bonuses, allowances, subsidies and various deductions) calculated and paid by Party A, From the date of receipt of wages, remuneration and other income (including bonuses, allowances, subsidies and various deductions), Submit a written objection to Party A within three days, Party A will not accept Party B's objection application for later days, Party B shall be deemed to have made no objection or waived its rights; If party B raises an overdue objection, Even if there is party A's accounting error, Party A will no longer pay the difference of salary, remuneration and other income (including bonuses, allowances, subsidies, and various deductions).

**Labor protection, protection of working conditions and occupational hazards**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Party A and Party B shall implement national labor protection, safety and health laws, regulations, regulations and standards. Party A shall provide labor security to Party B Student education, to prevent accidents, to reduce occupational hazards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Party A shall provide Party B with the national labor safety and health conditions and necessary labor safety protection equipment, and strive to improve the working conditions.

**7. Social Insurance and Welfare**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Party A and Party B shall participate in social insurance according to national and provincial regulations. The social insurance premium that shall be paid by Party B shall be withheld and paid by Party B from Party B's monthly salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Party A shall be responsible for handling relevant social security procedures with the social insurance management department, and Party B shall ensure that it meets the conditions for handling social insurance and provides the authenticity of the social insurance materials provided to Party A. If Party B fails to ensure that it meets the conditions for social insurance handling and the information provided for handling social insurance is false, and if Party A fails to handle or fails to handle the relevant procedures of social insurance for Party B in time, party B shall bear the relevant responsibilities.

**VIII. Modification, rescission and termination of the labor contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Party B has the right to choose a job freely, and Party A shall not restrict Party B's departure by signing the labor contract. Party B proposes to terminate the labor contract with Party A. If Party B handles the work handover as agreed by both parties, Party A shall settle the wages in full to Party B in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. If Party B applies to obtain the termination of the labor partnership in advance for some reason, it must be informed in writing 30 days in advance (3 days in advance) Party A's written notice shall be subject to the delivery to the personnel department of Party A, and shall not leave the post in advance, so that Party A has time to re- recruit and continue the work with Party B. Party A and Party B may negotiate and agree on the time for handling relevant procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. If Party B terminate this Contract or leaves without written notice 30 days in advance (3 days in advance during the probation period), it shall leave unauthorized; if Party B leaves, Party B voluntarily waives the right to receive all wages, remuneration, income, benefits and so on. At the same time, Party A may still require Party B to bear the losses caused by leaving Party A without authorization. If it is difficult to calculate the economic losses, Party B shall compensate Party A for one month's salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Party B shall be investigated for criminal responsibility according to law, and the labor contract shall be naturally terminated starting from the effective date of the judgment. The employing unit does not need to perform the obligation of terminating the labor contract service again. If Party B does not come to perform the labor obligations of the company without restricted personal freedom for any reason, the performance of the work within 3 days shall be suspended. Party A shall not undertake the relevant obligations during the suspension period. If it is more than 3 days, Party A may terminate the labor contract of Party B without any economic compensation.

**Ix. Other contents agreed upon by both parties through negotiation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. If Party B is informed and is aware that Party A's production site and office space are equipped with monitoring devices, Party B is aware of this situation and accepts it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Party A orally informs Party B of the working contents, working conditions, working place, occupational hazards, production safety conditions, labor remuneration and other information required by Party B. Party B's signature or good seal on this Contract shall be deemed to have accepted the above information informed by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Party B confirms that neither Party B has any labor relationship with any unit at the time of signing this Contract; during the duration of the labor relationship between Party B and Party A, without the written permission of Party A, Party B shall not establish any labor relationship, labor relationship or employment relationship with any unit (individual) except Party A

Party B shall not have any part-time labor relationship or partnership relationship, and shall not have any part-time activities (including e-commerce, wechat business, direct selling, other part-time activities, etc.).

If Party B violates this treaty, Party A may immediately terminate Party B's labor contract without paying any economic compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Party B confirms that if Party B conceals the non-competition with the original unit, it shall constitute fraud, and Party A may determine that the labor contract is invalid. If Party A assumes joint and several liability due to Party B, Party A shall recover from Party B after making compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Party B confirms that in order to ensure that Party B can receive timely treatment to hospitals with good medical conditions and the reimbursement rules of industrial injury insurance, Party B shall go to the hospital at the level designated by Party A. Party A shall that the diagnosis certificate and appraisal conclusion of non-designated hospitals shall not be recognized; and Party B cannot reimburindustrial injury insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Party b sick or work-related injury, need to leave treatment, must go to the hospital for confirmed, issued by the hospital recommended leave certificate, diagnosis, medical records and medical bills, to the original level of hospital for diagnosis or leave procedures are incomplete (recommended leave certificate, diagnosis certificate, medical records, original invoice, medical expenses original invoice can not have at the same time, as procedures are not complete) to son not approved sick leave. If the sick leave is not approved, Party B fails to leave the post without authorization and shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. If Party A has any questions about the medical diagnosis letter provided by Party B, it may require Party B to review at the designated hospital, and the review fee shall be paid by Party A in advance. If the review result is consistent with the condition specified in Party B's leave procedure, Party A shall bear the review fee; if the review result is inconsistent with the condition specified in Party B, the review fee shall be borne by Party B. If Party B refuses to review it and fails to leave the post, it shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. If this Contract is terminated or terminated for any reason or whatever party B leaves the company, Party B shall handle the handover procedures according to the relevant management regulations of Party A and the agreement of both parties. Party A shall settle the wages, remuneration and other income after confirming the handover.

Transfer procedures shall include but are not limited to: handover to the personnel designated by Party A (subject to the signature of the work receiver); complete return of office supplies, documents, equipment and other tangible or intangible assets; complete handover of any carrier containing important information to Party A; assist Party A to clear the claims and debts between both parties, complete the separation transfer procedures stipulated by Party A, and handle other outstanding affairs. If Party B fails to perform the above obligations (the obligations shall be signed by all the project leaders on the Employee Separation Transfer List), and if Party A is unable to handle the procedures related to the resignation, Party B shall bear its own responsibilities.

If Party B leaves Party A by itself and fails to go through the relevant work handover procedures beyond the prescribed time limit, it means that Party B voluntarily waives all the remaining wages, remuneration, funds, wages, materials, welfare and other relevant rights remaining in Party A, and Party A may freely dispose of them. If Party B has any debts to Party A due to borrowing or other reasons, the above disposal shall not offset Party B's debts. If Party B leaves Party A by itself and causes economic losses to Party A, Party A shall have the right to claim compensation to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. If Party B intentionally or materially causes losses to Party A, it shall be liable for compensation. Party b owe any money to party a, shall bear the economic loss compensation, or party b in violation of the contract conditions to terminate the labor contract, cause any economic losses to party a, in accordance with the laws and regulations, the contract shall compensation liability, party a has the right to from party b's wages, bonuses and allowances, such as subsidies and other income (including not limited to this) in the corresponding deduction, insufficient deduction, party a shall still have the right to recover from party b for the rest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. Party A requires that, under any circumstances, Party B must abide by traffic safety laws and regulations and shall not commit any illegal acts, Party B shall be held liable for all activities (including but not limited to fines, deduction, seizure of driving license, etc.) for its violation of traffic safety laws and regulations. If Party B suffers losses due to its violation of traffic safety laws and regulations, Party A may claim compensation to Party B. The compensation shall be deducted from Party B's salary, remuneration, bonus and other income. If not deducted enough, it can still be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. Party B shall determine the mailing address and contact telephone number filled in in this Contract to be the only fixed mailing address and valid contact telephone number for Party A to contact and serve the legal documents. Party A shall serve the legal documents to Party B at an unknown address, incorrect address, and no such person

In party B's address, signature refusal, other collection and other inaccessible circumstances, the legal documents shall be deemed to have been delivered to Party B from the date of mailing.

**X. Declaration and confirmation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. Work achievements generated by Party B during the work period (including but not limited to technical materials, development and summary concepts, ideas and documents

And the published books, work logs, training materials, operation manuals, audio and video materials, etc.), no matter what the form (text, pictures, audio and video, etc.), all the intellectual property rights shall belong to Party A.

36, Party b confirmed that party a has truthfully informed party b work content, working conditions, requirements of choose and employ persons, location, occupational hazards, production safety conditions, labor remuneration, social insurance, and so forth, and may work in the process of occupational disease hazards and its consequences, occupational disease prevention measures and treatment and other requirements to inform party b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. Party B confirms that the information on the entry registration form and resume provided or filled in to Party A is completely true and valid. Party B has no labor relationship with other employers, and shall not be subject to non-competition obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. Party B confirms that it has carefully read and understood the rules and regulations formulated by Party A and agrees to abide by them. The rules and regulations here include the employee handbook and other long-term comprehensive system, including party a in accordance with legal procedures and written or internal electronic network to party b public notice, instructions, methods and detailed rules of individual rules and regulations, including but not limited to the employee handbook, job description, safety guidelines, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. Other agreements: _______________________________________________

**X. Supplementary Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Party B shall revise this Contract and both parties agree. Both parties confirm the terms of this Contract without any objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. This labor contract is made in duplicate. Party A holds one copy and Party B holds one copy, which shall have the same legal effect.

---

| | |
|:---|:---|
| Party A (seal): | Party B (signature and handprint): |
| Legal representative or entrusted agent (signature): |  |
| YTD | YTD |

---

## Exhibit 10.3

**Exhibit 10.3**

**PREMISES LEASE CONTRACT**

Lessor: Yue Yi Leasing Service (Nanjing) Co., LTD. (hereinafter referred to as Party A)

Lessee:Jiangsu HUHU Electromenchanical Technology Co.,Ltd. (hereinafter referred to as Party B)

Having reached unanimity through friendly consultation and negotiation, Party A and Party B have reached an agreement in principle on the leasing of Party A's plant and affiliated premises to Party B.A lease contract is hereby entered into.

**I. Rental houses**

Party A will be located at No. 13, Jinding Road, Qiaolin Street, Pukou District, Nanjing, with a floor area of 600 square meters (planning license No. 117, Pugui Building [2007] ; No. 143, Pugui Building [2007]) is leased to Party B for use (hereinafter referred to as "the Premises"). The existing decoration and other necessary facilities (inside and outside) related to production equipment, production conditions, office space and living space of the premises shall be subject to the actual conditions of the parties at the time of handover.Party A agrees that Party B shall decorate and change the content standard of the original facilities and equipment by itself.

**II. Lease purposes**

Party B leases the Premises as a warehouse. During the lease term, Party B shall not change the use of the Premises without prior written consent of Party A.

**III. Lease Term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The lease term is four years from <u>October 1, 2021</u> to <u>September 30, 2025</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the lease term, Party A has no right to adjust the rent at will. The annual rent is as follows:

The first year: from <u>October 1, 2021</u> to <u>September 30, 2022,</u> the house rent excluding tax is 12,000 Yuan, the tax rate is 9%, the tax is 1,080 yuan, a total of 13,080 yuan;The rent excluding tax is 74,400 yuan, the tax rate is 9%, and the tax is 6,696 yuan, 81,096 yuan in total;A total of 94,176 yuan (RMB Ninety-four thousand One hundred and seventy-six yuan only)

Year 2: From <u>October 1, 2022</u> to <u>September 30, 2023</u>, the house rent excluding tax is 12,360 Yuan, the tax rate is 9%, the tax is 1112.40 yuan, a total of 13,472.40 yuan;The rent excluding tax is 76,632 yuan, the tax rate is 9%, the tax is 6896.88 yuan, a total of 83,528.88 yuan;A total of 97,001.28 yuan (RMB Ninety-seven thousand, and one point two eight)

Year 3: From <u>October 1, 2023</u> to <u>September 30, 2024,</u> the house rent excluding tax is 12,730.80 yuan, the tax rate is 9%, the tax is 1,145.77 yuan, a total of 13,876.57 yuan;The rent excluding tax is 78,930.96 yuan, the tax rate is 9%, and the tax is 7103.79 yuan, totaling 86,034.75 yuan;A total of 99,911.32 yuan (RMB Ninety-nine thousand, nine hundred and eleven point three two)

Year 4: From <u>October 1, 2024</u> to <u>September 30, 2025,</u> the house rent excluding tax is 13112.72 yuan, the tax rate is 9%, the tax is 1180.15 yuan, a total of 14292.87 yuan;The rent excluding tax is 81298.89 yuan, the tax rate is 9%, and the tax is 7316.90 yuan, totaling 88615.79 yuan;A total of 102908.66 yuan (RMB One hundred and twenty-two thousand nine hundred and eighty six cents)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the lease, Party B shall pay attention to the maintenance and repair of the equipment, power, lighting fixtures and surrounding environment. Except for natural losses, Party B shall be able to operate normally when the lease expires.

**IV. Rent payment method**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party B shall, in accordance with the principle of pay before use, pay the rent to Party A on time every six months. Party A shall issue an invoice to Party B after receiving the payment.Payment for the lease is by bank transfer.

Party A's account Information:

Account name: Yue Yi Leasing Service (Nanjing) Co., LTD

Bank: Bank of Nanjing, Nanjing Qiaolin Sub-branch

Account number: 2061290000000542

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If Party A changes the account, it shall notify Party B in writing.If Party B makes the payment to the original account before receiving the written notice, Party B shall not be responsible for Party A's loss.

**V.Responsibilities of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A shall guarantee the compliance of building structure and fire protection of building structure (record No.:320000WYS110002441).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party A shall regularly inspect and timely repair the leased premises to ensure that there is no leakage, no flooding, good three-way (indoor water supply, drainage, lighting) and good doors and Windows, so as to ensure the safe and normal use of Party B.Party B shall promptly notify Party A to repair the wear and tear of the premises and its ancillary articles, equipment and facilities caused by natural properties or reasonable use.Party A shall carry out maintenance within 7 days upon receipt of Party B's notice.In case of failure to repair within the time limit, Party B may repair on behalf of Party A at Party A's expense.If the maintenance of the premises affects Party B's use, the rent shall be reduced or the lease term shall be extended accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The parties shall not be liable for breach of contract if the house is lawfully included in the scope of housing expropriation and requisition due to urban construction needs. However, the expropriation and requisition compensation is the compensation for business loss and decoration (only for the decoration part of Party B) and belongs to Party B.Party A shall make the payment to Party B within 7 days upon receipt of such payment.If Party A delays the payment, Party A shall pay Party B a daily payment for the delay of performance at the rate of 3‰ of the compensation payable to Party B.Party B shall cooperate with Party A to handle relevant procedures for moving out after receiving the compensation payment payable by Party A according to the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party A shall connect the power line to the plant and the distribution box, and install the lighting and water in place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If Party A transfers the property ownership to a third party according to legal procedures, Party A shall guarantee that this Contract shall remain valid for the new property owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party A shall ensure that there are no other rights defects in renting the Premises, including but not limited to mortgage, guarantee, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. During the lease term, Party A shall not unilaterally terminate the Contract.In case of early termination of the Contract due to Party A, Party A shall provide economic compensation to Party B for the decoration, decoration and appendage attached to the premises according to the residual value of the decoration, which shall be paid off within 7 days after the termination of the Contract. In such case, Party A shall refund the rent paid and not consumed by Party B and pay three months 'rent to Party B as penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party A shall deliver the premises to Party A on time as stipulated in the Contract. If Party A fails to deliver the leased property within the time limit, the lease date shall be postponed accordingly.For each overdue day, Party B shall have the right to charge Party A a penalty of 3‰ of the rent on the annual rent. If the delay exceeds 30 days, Party B shall have the right to terminate the contract and require Party A to refund all the rent collected.

**VI. Responsibilities of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In the process of operation, Party B shall carry out production in accordance with relevant national laws and regulations, comply with local regulations, complete various procedures, pay all production and operation expenses of the company, strengthen comprehensive management and production safety management, and shall not engage in illegal business activities. In case of any violation of laws and regulations, Party B shall bear all responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the lease term, Party B shall not use Party A's land and premises as collateral to banks or creditors in production and operation, or sublease to others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party B shall not destroy or change the house structure by itself in the process of production and operation, and may decorate the house by itself on the basis of the foregoing.Party B shall repair the house and road damage caused by Party B and bear the cost, or Party A shall repair and bear the cost of Party B after negotiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. During the lease, Party B shall pay attention to the maintenance and repair of the equipment, power, lighting fixtures and surrounding environment. Except for natural losses, Party B shall be able to operate normally when the lease expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. During the lease term, Party B shall do its own security work. In case of accidents and property losses, Party B shall be solely responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If Party B terminates the Contract in advance due to market reasons or other reasons, it shall notify Party A in writing two months in advance and compensate Party A for three months 'rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Party B shall pay the rent to Party A on schedule before the lease is used; otherwise, Party B shall not use the leased premises and bear corresponding responsibilities.Party A shall notify Party B to pay the rent one week in advance before it is due.If Party B fails to pay the rent upon receipt of the notice, he/she shall be charged a late fee of 3‰ per day for the unpaid rent starting from the next day after the lease term expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The public road in the factory shall be kept unblocked and no debris shall be piled up.

**VII. After the Agreement comes into force, both parties shall abide by this Agreement and shall not breach it without authorization.Otherwise, the breaching party shall bear all economic losses and legal liabilities caused by the breach in accordance with the provisions of the contract.The scope of compensation for breach of contract shall include but not be limited to: actual economic losses, investigation expenses, litigation costs, arbitration costs, expenses of hiring litigation and arbitration agents and other necessary expenses incurred as a result of breach of contract.**

**VIII. Settlement of contract disputes**

If both parties have any dispute during the contract period, they shall negotiate first. If no agreement can be reached through negotiation, either party may apply to the people's court of the place where the house is located for litigation.

**IX.Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract is made in duplicate, with each party holding one copy. This contract shall come into force after being signed and sealed by authorized representatives of both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For other matters not covered herein, both parties may sign a supplementary contract upon mutual agreement. The supplementary contract shall have the same legal effect as this Contract.

(The following text is left blank)

---

| | |
|:---|:---|
| **Party A (Seal) :** | **Party B (Seal) :** |
| **Authorized Representative :** | **Authorized Representative :** |
| **(signature)** | **(signature)** |
| **On September 27th, 2021** | **On September 26th, 2021** |

---

## Exhibit 10.4

**Exhibit 10.4**

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

House Lease Contract contract no N0: 0002542

Lessor: <u>Chongda He</u> ID No.: <u>320724198407135717</u> (hereinafter referred to as Party A)

Representative/Agent: ____________________ ID No.: ____________________

Lessor's current address: _________________________________________

Lessee: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u> ID No. : <u>91320214346537120H</u>(hereinafter referred to as Party B) Representative/agent: <u>_Fulai Wei_</u> ID No. : <u>320922198908075720</u>

Current address of the lessee: ________________

Intermediary: Nanjing Tingju Real Estate Brokerage Co., LTD. Business license

Registration number: 320111000201903120143

Address: No. 3, Yanling Road, Shiqi Community, Qiaolin Street, Pukou District, Nanjing

In accordance with the provisions of national laws and regulations, to clarify the rights and obligations of Party A and Party B, both parties enter into this contract upon consensus through negotiation.

**Article 1: Property address**

Party A owns the room which locates in <u>Room 307, Building 5, Qialinshan Yayuan, Pukou District, Nanjing</u>, with a construction area of <u>85</u> square meters. The house type is: <u>residential building .</u> Party A leases it to Party B for <u>residential use.</u>

**Article 2: Lease term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The lease period is for <u>one</u> year, from <u>December 14, 2021</u> to <u>December 15, 2021</u>. Party A will deliver the leased premises to Party B for use on <u>December 15, 2021</u>.

**Article 3: Payment method**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A and Party B agree that the monthly rent is RMB <u>one thousand and eight hundreds yuan(￥1,800.00</u>) ,which shall be paid by Party B to Party A or to the bank account designated by Party A on the <u>day</u> of each month, paid in advance and used later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Upon signing the Contract, Party B shall pay Party A the deposit for the lease of the house in RMB <u>one thousand and eight hundreds yuan</u>(<u>￥1,800.00)</u> .. The deposit shall be returned to Party B in full without interest by Party A on the day of termination of the contract after Party B has paid the relevant lease fee. The receipt issued by Party A shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Based on the services provided by the Intermediary, Party A shall pay the intermediary RMB <u>nine hundreds Yuan</u> (<u>￥900.00)</u> as service commission on the date of signing this Contract; Party B shall pay the intermediary RMB <u>nine hundreds Yuan</u> (<u>￥900.00</u>) as service commission.

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

**Article 4: Breach and liability**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A may terminate the contract, take back the premises and hold Party B liable under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To sublet, sublet, transfer, lend or exchange the premises with others without prior written consent of Party A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Using the leased premises to carry out illegal activities, damaging the public interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Default the rent for months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. If Party A continues to lease the house after the expiration of this contract, Party B shall have the priority to lease the house under the same conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Party A shall compensate Party B in RMB <u>one thousand and eight hundreds yuan(￥1,800.00</u>) for early termination of the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. If Party B terminates the contract in advance, Party A shall confiscate the rental deposit paid by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. If Party B fails to pay the rent, in addition to the overdue rent, Party B shall pay <u>20%</u> of the rent to Party A on a daily basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. Party A shall pay the expenses incurred before the signing of the lease contract, and Party B shall pay the expenses incurred after the delivery of the premises to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Party A guarantees that there is no property rights dispute;If Party B requires Party A to provide the property title certificate or other relevant certification materials due to business needs, Party A shall provide assistance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. Party B shall be responsible for personal and property safety during the lease period, and Party A shall not be responsible for it.

**Article 5: Methods of dispute resolution**

Any dispute arising during the performance of this Contract shall be settled by both parties through negotiation.If no agreement can be reached through consultation, it may apply for arbitration to the Economic Contract Arbitration Commission of the Municipal Administration for Industry and Commerce, or bring a suit in the people's court.

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

**Article 6: Methods of dispute resolution**

For matters not covered in this contract, both parties may negotiate and sign a supplementary agreement, which shall have the same effect as this Contract. This contract is made in triplicate, with each party holding a copy and the intermediary party reserving one copy of the stub. It shall come into force after being signed and confirmed by the three parties.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| item name | quantity | brand | model | remarks | item name | quantity |
| goggle-box |  |  |  |  | sofa |  |
| Set-Top Box |  |  |  |  | tea table |  |
| washing machine | 1 |  |  |  | TV bench |  |
| refrigerator | 1 |  |  |  | bookcase | 2 |
| air conditioner | 2 |  |  |  | wardrobe | 2 |
| water heater | 1 |  |  |  | bed | 3 |
| cooker hood | 1 |  |  |  | Dining tables and chairs | 1table and 4 chairs |
| gas-oven |  |  |  |  | shoe cabinet |  |
| microwave |  |  |  |  | storeroom |  |
| Water card |  |  |  |  | Water meter reading |  |
| Electric card |  |  |  |  | Meter reading |  |

---

Comments on a form: <u>i clean the house and pay off the water and electricity charges；If the lease term is not full, the rent and deposit will be not refunded; If the goods in the room are deemed to be damaged, Party B shall compensate, and the rest shall be repaired by Party A. ii. The payment method is one month's rent as a deposit and three months' rent at a time, and pay the next quarter rent half a month in advance.</u>

Lessor : ___________ (Seal)Agent: ___________ (Seal) Lessee: ___________ (Seal)

DATE: DATE: DATE:

## Exhibit 10.5

**Exhibit 10.5**

![](ex10-5_001.jpg)

![](ex10-5_002.jpg)

**<u>Su (2022) Wuxi Real Estate Right No. 0188766</u>**

---

| | |
|:---|:---|
| Right holder | **Jiangsu Huhu Electromechanical Technology Co., LTD** |
| Common ownership | **Individually owned** |
| Sit down | 3-1208 Tiananzhihui Compound |
| Real Estate Unit No. | 320214004102GB00008F00520090 |
| Types of rights | Right to use state-owned construction land/ownership of houses (structures) |
| Nature of Rights | Sell/other |
| use | Industrial land/education, medicine, health, scientific research |
| Surface area | -/ Floor area of house: 356.12m ' |
| Life of use | The right to use the state-owned construction land shall expire on April 29, 2060 |
| Other status of Rights | Exclusive building area: 285.17m²<br> Shared floor area: 70.95m<br> Area of apportioned land use right: 28.4m '<br> House structure: reinforced concrete structure<br> Total number of floors: 13<br> Floor: 12 |

---

**Sidebar**

**Type of registration: Other transfer registration (including transfers, transfers, etc.)**

**Business subcategory: other transfer registration**

**Registration date: 2022-11-10**

This land user legally has the right to use the common land owned by all owners within this building district

---

| | |
|:---|:---|
| ![](ex10-5_003.jpg) | ![](ex10-5_004.jpg) |

---

## Exhibit 10.6

**Exhibit 10.6**

**Agreement on transfer of property and property**

Contract No.: 2R2020003

**The Parties to the Contract:**

Party A (Transferor): Wuxi Tian 'an Smart City Real Estate Co., LTD

Registered address: <u>1-1105 Tian 'an Smart City, No. 228 Linghu Avenue, Xinwu District, Wuxi</u>

Unified Social Credit Code: 91320214697921482Q

Legal representative: <u>Zheng Hongquan</u> <br> Tel: <u>0510-81170000</u>

Address: 1-1105, Tian 'an Wisdom City, No. 228, Linghu Avenue, New District, Wuxi City Post Code: 214135

Entrusted agent of Party A: Contact number: 0510-82708150

Address: 1-1105 Tian 'an Wisdom City, No. 228 Linghu Avenue, New District, Wuxi City Post Code: <u>214135</u>

Entrusted Agency of Party A:

Registered Address: <br> Business License Registration Number:

Legal Representative: Tel:

Address: Postal Code:

Party B (Assignee) :<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>

(The assignee is a natural person)

Nationality: Contact Number:

Document Name: Document Number:

Address: Postal Code:

(The following is for the assignee is a legal person to fill in)

Registered address: Unified Social Credit Code:

Legal Representative: <u>Wang Ying Lai</u> Tel:<u>18112388986</u>

Address: <u>10-1314 Shenzhen-Hong Kong Metropolitan Plaza, Xinwu District, Wuxi City</u> Postal code: <u>214135</u>

(Complete below for transferee)

Entrusted agent of Party B: Contact Number:Address: Postal Code:

Party B's entrusted agency:

Registered Address: Business License Registration No. :

Legal Representative: Tel:

Address: Postal Code:

In accordance with the Contract Law of the People's Republic of China and other relevant laws and regulations, Party A and Party B, on the basis of equality, voluntariousness and consensus, enter into the following agreement concerning the transfer of real estate:

**Article 1 Basis of Project construction**

Party A signed No. 3202032010CR0023 Contract for the Assignment of the Use Right of State-owned Construction Land with the Bureau of Land and Resources of Wuxi City, Jiangsu Province of the People's Republic of China. To acquire the land use right of lot No. <u>6-012-001-015</u> in <u>Wuxi (Taihu) International Science and Technology Park TKY-GY-B-03(</u>south of Gaolang Road and north of Guanshan Road) by means of transfer. The number of the Certificate of the Use of State-owned Land of the People's Republic of China is Xixin State Use <u>(2010) No. 1198.</u>

<u> </u>

The land area of the land parcel is <u>106,960.5</u> square meters, and the land use is industrial land for research and development. The land use period is from <u>February 12, 2010 to April 29, 2060.</u>

<u> </u>

Party A has been approved to build industrial buildings for research and development on the above land parcel, named as <u>Tian 'an Smart City</u>. The number of Construction Land Planning License is Jian Character <u>No. 3202012010X0068</u>, and the number of Construction Engineering Planning License is Jian Character <u>No. 3202012010X0329.</u> The number of Construction Project Planning Permit is <u>3202992011041900001A.</u>

<u> </u>

Page 1 of 8 pages

**Article 2 Conditions of house transfer**

Party B confirms that the facts and relevant documents mentioned above are correct, has fully understood the <u>Tian 'an Smart City</u> Project, and has fully understood the specific conditions of the premises to be transferred by Party A (including location, orientation, building distance, structure, storey height, land use, etc.), and voluntarily buys and accepts the premises.

**Article 3 Basic information of the premises transferred by Party B**

Party A shall transfer the following premises (hereinafter referred to as "the premises", whose floor plan is shown in Appendix I to this Contract) to Party B for the association In the items specified in Article 1:

3 Building no. <u>12</u> layer <u>1208</u> Room, the use of the house for the section grind do state-owned , The building where the house is located is framed The frame Structure, a layer of high for <u>6</u> Rice, standard layer layer is <u>3.8</u> Rice, the building floors are on the ground <u>1 2</u> Layer, underground1 layer. The house has a floor area of. <u>356.12</u> square meter.

**Article 4 Valuation method and price**

Party A and Party B agree that the price of the premises shall be calculated as follows:

Party A and Party B agree through negotiation to calculate the transfer price according to the floor area of the house, and the transfer unit price of the house is RMB per square meter of floor area <u>6550</u> Yuan, the agreed floor area of the house is. <u>356.12</u> Square meters, the total transfer price of the house is RMB<u>2332586.</u>

**Article 5 Confirmation of area and settlement of area difference**

According to the valuation method of the premises, this Article provides that the area confirmation and area difference treatment shall be based on the building area (referred to as the area in this article).

If there is any difference between the building area of the building as stipulated in Article 3 of this Agreement and the measured result of the surveying and mapping institution designated by the government department (i.e. the final registered area of property rights), the measured result of the government department shall prevail.

After the delivery of the premises, if there is any difference between the measured area and the area agreed herein, both parties agree to settle the housing price according to the corresponding unit price in Article 4 hereof, with more refund and less compensation (If the measured area is less than the area agreed herein, Party A shall timely return the excess housing price to Party B; if the measured area is greater than the area agreed herein, Party B shall timely make up the insufficient housing price to Party A. Without any interest). If Party B has not paid off the house payment when the measured result of the floor area of the house used for title registration is produced, both parties shall settle the settlement when Party B pays the last installment of house payment.

**Article 6. Terms of payment and the term of payment**

Party A and Party B agree that Party B shall pay for the house payment according to the following schedule. Party B's payment method shall be check, draft or cash, including check and remittance

The payment date of the ticket to Party B is the actual payment date of Party A, and the payment period is as follows:

Party B shall, in 2020 year <u>5</u> mon <u>1</u> A few days ago, pay the first phase of the house money <u>933038</u> Yuan (in words: RMB nine <u>ten three ten thousand three thousand zero three ten eight first whole</u>);

Party B shall <u>2020</u> year <u>11</u> mon <u>1</u> A few days ago, pay the second phase of the house money <u>349887</u> Yuan (in words; RMB 3 <u>ten four ten thousand nine thousand eight hundred eight ten seven first whole</u>);

Party B shall, <u>2021</u> year <u>5</u> mon <u>1</u> A few days ago, pay the third phase of the house money <u>349887</u> Yuan (in words: RMB thirty yuan <u>four ten thousand nine thousand eight hundred eight ten seven first whole</u>);

Party B shall <u>2021</u> year <u>11</u> mon A few days ago, pay the fourth phase of the house money <u>349887</u> Yuan (in words: RMB <u>thirty four ten thousand nine thousand eight hundred eight ten seven first whole</u>);

Party B shall respond in 2022 year <u>5 mon 1</u> A few days ago, pay the fifth house money <u>349887</u> Yuan (in words; RMB <u>three ten four ten thousand nine thousand eight hundred eight ten seven first whole</u>);

Each time Party A receives the house payment paid to Party B, it shall issue a receipt of the corresponding amount to Party B. Party B shall complete all the payments stipulated in this article

Page 2 of 8 pages

After the payment, Party B shall return all the receipts issued by Party A to Party A and exchange the transfer invoice of the house, otherwise the premises issued by the relevant departments

The transfer invoice shall be temporarily kept by Party A.

**Article 7 Party B's liability for breach of contract for overdue payment**

If Party B fails to make payment within the time specified in this Agreement, it shall be dealt with separately according to the overdue time (without adding up) :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Within <u>90</u> days (including 90 days), from the first day of the due date set forth in this Agreement to the date on which the due date is actually paid in full, Party B shall pay Party A the corresponding interest within the overdue period calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of payment) as liquidated damages, and the Agreement shall continue to be performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the delay exceeds <u>90 d</u>ays, Party A shall have the right to terminate the Agreement and refund the amount already paid by Party B within 60 days after the termination of the Agreement, provided that Party A shall have the right to deduct 10% of the total transfer price of the House as Party B's liquidated damages. If the amount already paid by Party B is less than 10%, Party B shall make up for it. If Party B is willing to continue to perform this Agreement and Party A agrees, the Agreement may continue to perform this Agreement from the first day of the due date set forth in this Agreement to the date when the due date is actually paid in full. Party B shall pay Party A the corresponding interest within the overdue period calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of payment) as a penalty, which shall be limited to <u>10%</u> of the total transfer price of the premises.

In this article, the overdue amount refers to the difference between the payment due in installments according to Article 6 of this Agreement and the actual payment made in that period.

If the premises have been delivered to Party B when Party A rescinds this Agreement, Party B shall return the premises to Party A in its original condition within 30 years, and Party A shall demolish the premises without compensation. Party B shall pay Party A the occupancy fee during the actual period of use according to the market rent, and Party A shall have the right to directly deduct the occupancy fee from the payment already made by Party B.

**Article 8 Term of Delivery**

Under the condition that Party B has paid off the amount payable on time, Party A agrees to pay in May 1, 2020. In accordance with the relevant provisions of the state and local people's governments, they will have it warp component designated time examine put away close rattle The premises shall be delivered to Party B for use. Party B shall receive from Party A

After the notice, it shall go through the house handover procedures with Party A in accordance with the relevant provisions of Article 11 hereof.

**Article 9 Party A's liability for breach of contract if the delivery is delayed**

If Party A fails to deliver the premises to Party B within the time limit stipulated in this Agreement, Party A shall deal with Party B separately according to the overdue time (without adding up) :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Within <u>90</u> days (including 90 days), from the first day of the deadline set forth in Article 8 of this Agreement to the actual date of delivery, Party A shall pay Party B the corresponding interest calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of the final delivery) as liquidated damages. The Agreement shall continue to be performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B shall have the right to rescind this Agreement after the delay exceeds 90 days.If Party B rescinds this Agreement, Party A shall refund all the money paid and pay 10% of the total transfer price to Party B as liquidated damages within <u>15 days</u> after Party B's notice of rescission arrives.If Party B is willing to continue to perform the Agreement and the Agreement continues to perform, Party A shall, from the first day of the deadline set forth in Article 8 of this Agreement to the actual date of delivery, pay Party B the corresponding interest within the overdue period calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of the final delivery) as the penalty. The interest penalty shall be limited to <u>10%</u> of the total transfer price of the premises.

Page 3 of 8 pages

**Article 10 Agreement on alteration of planning and design**

If the planning changes approved by the planning department and the design changes approved by the design unit result in the following affecting the quality or use function of the premises transferred to Party B, Party A shall notify Party B in writing within 15 days after the approval of the relevant departments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The structural form of the premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The housing type, space dimension and orientation of the house.

Party B has the right to give a written reply on whether to check out or not within 15 days after the arrival of the notice. If Party B fails to give a written reply within 15 days after the arrival of the notice, it shall be deemed to have accepted the change. If Party A fails to notify Party B within the prescribed time limit, Party B has the right to check out.

If Party B checks out, Party A shall refund all the payment made within 15 days after Party B requests to check out, and pay the interest at the one-year loan benchmark rate published by the People's Bank of China on the date when Party B requests to check out.If Party B does not check out, it shall enter into a supplementary agreement with Party A.

**Article 11 House Handover**

When the premises meet the delivery conditions, Party A shall notify Party B in writing to settle in. Party B shall go to the place designated by Party A to complete the handover procedures within the period of the notice, and Party B can start the interior decoration.

If Party B fails to complete the handover procedures within the time limit notified by Party A, the premises shall be deemed to have been delivered to Party B on the expiration of the notice period, and Party B shall bear any expenses and losses caused by the delay in the handover.

Party B shall be responsible for the risks of the Premises from the date of delivery (including deemed delivery) of the Premises.

**Article 12 Party A guarantees that the premises transferred will be free from disputes over property rights, claims and debts**

If Party A fails to register the property right transfer or disputes over creditor's rights and debts occur due to Party A's reasons, Party A shall bear all the responsibilities and shall handle the case in accordance with relevant provisions of Article 14 of this Agreement.Party A shall not be liable for any failure to register the property right of the premises or for any dispute over claims or debts arising out of force majeure or changes in government policies and other third party reasons.

**Article 13 Party A undertakes to ensure the normal operation of infrastructure and public supporting buildings**

Party A undertakes that the following infrastructure and public supporting buildings directly related to the normal use of the premises shall meet the conditions for use according to the following dates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Roads, water supply, power supply, drainage and sewage discharge in the Park shall be put into use upon
delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Property management shall be in place upon delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Intelligent and telecommunication communication in the park will be put into use upon delivery.

Unless otherwise agreed by both parties or otherwise stipulated by mandatory laws and regulations, Party A shall own the building in which the premises is located and the supporting buildings and buildings within the whole project.

The underground garage of the project belongs to Party A. If Party B needs to use it, it shall go through the procedures in accordance with the property management regulations.

Page 4 of 8 pages

**Article 14 Agreement on the transfer of property rights**

After Party B has paid all the house price (in case of overdue payment, Party A shall also pay liquidated damages), Party A shall send a notice to Party B to transfer ownership of the property certificate. Upon receipt of the notice to Party A to transfer ownership of the property certificate (subject to the registered letter sent by Party A to apply for the property certificate), Party B shall timely prepare and submit all relevant materials required for the transfer of property certificate within 15 days.Party A shall complete the transfer procedures of the property right of the house within 6 months after Party B submits all relevant materials required for the transfer of the property certificate, and the relevant fees and taxes shall be paid by both parties in accordance with relevant provisions.If Party A fails to complete the transfer procedures due to Party A's reasons, it shall be handled separately according to the overdue time (without adding up) :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Within <u>90</u> days (including 90 days), from the first day of the deadline set forth in this Article to the date on which the transfer procedures are actually completed, Party A shall pay Party B the overdue interest calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of the last transfer period) of the price already paid by Party B as liquidated damages, and the Agreement shall continue to perform.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B shall have the right to rescind the Agreement after the overdue period exceeds <u>90</u> days.If Party B rescinds this Agreement, Party A shall refund all the money paid and pay 10% of the total transfer price to Party B as liquidated damages within <u>15 days</u> after Party B's notice of rescission arrives.If Party B is willing to continue to perform this Agreement, Party A shall, from the first day of the deadline set forth in this Article to the date on which the transfer procedures are actually completed, pay Party B the corresponding interest of the house price paid by Party B within the overdue period calculated at the one-year loan interest rate (subject to the one-year loan benchmark interest rate published by the People's Bank of China on the date of the final transfer) as the liquidated damages. The interest penalty shall be limited to <u>10%</u> of the total transfer price of the house.

The above date of completing the transfer procedure of the property right of the house shall be the date on which the Wuxi New District Property Right Supervision Office accepts the application for the transfer of the property right, except that the property right supervision office decides not to transfer the property right according to law.

Party B undertakes that it shall actively assist Party A or others entrusted by Party A in handling the transfer of the property according to the notice of Party A or its client.Party A shall not bear any responsibility for failure to complete the transfer procedures in time due to Party B's deliberate delay or failure to provide relevant materials in time.

If Party B rescinds this Agreement, it shall return the premises to Party A in its original condition within 30 days. Party B shall demolish the premises by itself without compensation from Party A. Party B shall pay Party A the occupancy fee during the actual period of use according to the market rent, and Party A shall have the right to directly deduct the occupancy fee from the payment already made by Party B.

**Article 15 Warranty Liability**

The scope and period of warranty of the building construction project are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Foundation and main structure works, for the reasonable service life of the building stipulated in the design document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Roof waterproof engineering, waterproof requirements of the toilet, room and external wall leakage prevention, for 5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Electrical system, water supply and drainage system, equipment installation for 2 years.

Party A may provide Party B with completion acceptance report related to the building.

The above years shall be calculated from the date on which the premises are delivered (including deemed delivered) to Party B for use. If there is any quality problem of the premises within the above warranty scope and period, Party A shall be responsible for the warranty and the expenses shall be borne by Party A. Party B shall be liable for any changes or quality problems arising out of Party B's responsibility, improper use, past modifications, etc. Party A may arrange repair for Party B after Party B is willing to bear the repair cost, and Party A shall not be liable for any loss or repair cost caused by Party B's liability.

Page 5 of 8 pages

**Article 16 Party B undertakes to**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The premises transferred by Party A are used for <u>scientific research only.</u> Party B shall not change the building structure, load-bearing structure, facade and purpose of the premises without authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B agrees to bring the premises into the unified management of the property management agency entrusted by Party A from the date of delivery (or deemed to be delivery), and comply with the property management regulations, property management service contract and other property management regulations (which have been known to Party B). Party B shall also bear the property management fee, public energy consumption, elevator usage fee, water, electricity, communication and other expenses of the premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party B shall not change the internal structure of the house without authorization, and shall not violate the requirements of fire safety during use. Party B's decoration plan shall be reviewed by the property management company and approved by the relevant functional departments of the government before implementation.

4. Unless otherwise provided in this Agreement and its attachments, Party B shall have the right to share with other rights holders the public parts and facilities associated with the premises during the term of use, and shall undertake the obligations according to the land area and the area shared between the public parts and the public premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party B shall not change the nature of the use of the public parts and facilities associated with the premises without authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If Party B violates the above provisions of this Article, it shall pay 10% of the total house price to Party A as liquidated damages. If Party A's actual loss exceeds the liquidated damages paid by Party B, Party B shall make up the difference between the actual loss and the liquidated damages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. If Party B uses the transferred premises for business operation (including its own operation or transfer to a third party), it shall first obtain a business license and operate the premises legally according to its regulations. If Party B violates the agreement, Party B will voluntarily accept the punishment of water and power failure imposed by the property management company on its premises until the rectification is completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party B agrees to pay the maintenance fund of the premises in due time as required by Party A, and the standard of the initial maintenance fund shall be determined by referring to the premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Party A owns the naming right of the building in which the House is located and the whole project.

**Article 17** In case of breach due to force majeure and other factors beyond the control of both parties, and the party in breach notifies the other party within 15 days after the occurrence of such factors and provides relevant legal certificates issued by the local notarial department, the party in breach is not liable for breach, and both parties may negotiate to extend, modify or terminate this Agreement according to the facts.

**Article 18** After this Agreement takes effect, both parties shall pay the duties and fees required for the transfer and use of the premises as stipulated by the state, Jiangsu Province and Wuxi City, and both parties shall pay the duties and fees respectively in time. Otherwise, disputes and losses arising therefrom shall be borne by the party who fails to pay.

**Article 19** Any dispute arising from the performance of this Agreement shall be settled by both parties through negotiation. If no agreement can be reached through negotiation, either party may file a lawsuit with the People's Court of Wuxi New District.

**Article 20** Any written notice provided herein shall be sent by registered mail to the contact address provided by the other party herein. If either party changes its contact address, it shall notify the other party in writing within 7 days after the change; otherwise, if the notice is delivered to the original contact address, it shall be deemed to have been delivered. All dates of service shall be postmarked on the registered mail sent.

**Article 21** For matters not covered in this agreement, both parties may enter into a supplementary agreement (see Appendix IV of this Contract for details).

**Article 22** This Agreement and the appendixes hereto are integral parts of this Agreement and have the same legal effect. The contents of this Agreement and its annexes shall have the same legal effect as the printed text in the blank space.

**Article 23** This Agreement together with the attachments is made up of <u>9</u> pages in quadruplicate with equal legal effect, with Party A holding three copies and Party B holding one copy.

Page 6 of 8 pages

**Article 24** This Agreement shall come into force upon it being signed and sealed by both parties.

(No contract text is available below)

---

| |
|:---|
| Party A: (seal) |
| Wuxi Tianan Wisdom City Real Estate Co., LTD |
| Legal representative or agent: |
| (signature) |
| date of signing:2020/4/21 |
| ![](ex10-6_001.jpg) |

---

---

| |
|:---|
| Party B: (seal) |
| Jiangsu Huhu Electromechanical Technology Co., LTD |
| Legal representative or agent: |
| (signature) |
| date of signing: |
| 2020/4/21 |
| ![](ex10-6_002.jpg) |

---

Page 7 of 8 pages

**Annex I: Floor plan of the premises**

![](ex10-6_003.jpg)

**Annex 2: Standard of decoration and equipment of the House**

1. Public stairs: floor tiles on the first and twelfth floors, floor paint on the second and eleventh floors;Stainless steel stair railing;

Ø cement mortar floor

Ø Solid wood stair banisters

øChrome plated steel pipe railing

2, indoor: rough floor, wall cement mortar painting, not batch putty,

Ø fine stone concrete on the floor

øInner wall putty batch white

3. Exterior wall doors and Windows: high-grade aluminum alloy doors and Windows (hollow double tempered glass)

4, exterior wall: part of the stone curtain wall and high-grade exterior wall paint

Page 8 of 8 pages

## Exhibit 10.7

**Exhibit 10.7**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Working capital loan contract**

**(Applicable to newly-signed domestic RMB interest rate, non-US dollar/pound/euro/yen/Swiss franc foreign currency interest rate, US dollar/pound/euro/yen/Swiss franc new benchmark interest rate)**

No：736375593D22061501

**Borrower: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

**Unified social credit code：<u>91320214346537120H</u>**

**Legal Representative/Person in charge: <u>Yinglai Wang</u>**

**Address: <u>3-1208, No.228 Linghu Avenue, Xinwu District, Wuxi City</u> ZIP Code： <u>/</u>**

**Opening financial Institution and Account Number:<u>Bank of China Limited,Wuxi Branch 483277737262</u>**

**Telephone: <u>/</u> Fax: <u>/</u>**

**Lender: <u>Bank of China Limited,Wuxi Branch</u>**

**Legal Representative/Person in charge:<u>Xinhong Chen</u>**

**Address: Zip Code:<u>258 Zhongshan Road, Wuxi</u> ZIP Code：**<u> </u>

**Telephone: *<u> </u>* Fax:** <u> </u>

The Borrower and Lender, through equal consultation, have reached an agreement on the issue of working capital loan by the Lender to the Borrower and hereby enter into this contract.

☐ This contract is a single agreement under the signed,Belong to <u>Jiangsu Huhu Electromechanical Technology Co., LTD.</u>with <u>Bank of China Limited,Wuxi Branch</u>.Number of <u>736375593E22061501</u>☐ Line of Credit Agreement /☐ General Agreement for Credit.(Note: This is optional. If not applicable, delete it.)

**Article 1 Loan Amount**

Currency of loan:<u>RMB</u>.

Amount borrowed: (in words)：<u>three million yuan</u>

(in Figures)：<u>￥3,000,000.00</u>

☐ At the time of the Borrower's actual withdrawal, if the Borrower's existing credit balance under the aforesaid Line of Credit Agreement is converted into according to the exchange rate __<u>/</u> (currency)on the actual withdrawal date due to exchange rate fluctuations, the lender has the right to terminate this contract or reject the Borrower's withdrawal application if it exceeds the line of credit agreed in the Line of Credit Agreement：If the available line of credit is less than the amount borrowed by the borrower under this contract, the lender shall have the right to reduce the amount borrowed under this contract and determine the amount borrowed under this contract according to the available line of credit.(Note: This clause is optional and applicable according to the management regulations of each line of credit limit. If it is not applicable, it should be deleted)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 2 Term of Loan**

Term of Loan: <u>12</u> month/ <u>/</u> day, starting from the actual withdrawal date;In the case of instalment withdrawal, the first actual withdrawal date.

The Borrower shall make the withdrawal in strict accordance with the agreed time. If the actual withdrawal date is later than the agreed time, the Borrower shall make the repayment in accordance with the repayment time agreed herein.

**Article 3 Purposes of loan**

Purpose of loan: <u>Buy heating belt, connecting sheet, etc</u>

Without the written consent of the lender, the borrower shall not change the purpose of the loan, including but not limited to, the borrower shall not use the loan for fixed assets, equity and other investment, for any fields or purposes that are prohibited by laws, regulations, regulations, or the state to produce or operate, for lending, or for the purchase of other financial products for arbitrage, or for the illegal creation of new hidden debts of the local government. And other uses for which bank loans are prohibited.

**Article 4 Loan Interest Rate and accrued interest** (Remarks: Fill in according to the facts, and exception to application must be deleted)

**The lender expresses to the borrower the annualized interest rate of the loan hereunder through the notification letter of the annualized interest rate of the loan attached hereto. If the annualized interest rate of the loan hereunder is only calculated according to the interest rate of the loan expressed in paragraph 1 of this article, the notification letter of the annualized interest rate of the loan shall not apply.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Borrowing interest rate**

The borrowing rate (annualized, simple interest rate for RMB borrowing and simple/compound interest rate for foreign currency borrowing (choose one))

The manner is <u>(2)</u> listed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Fixed interest rate, annual interest rate <u>/</u> %.**The contract interest rate remains unchanged during the term of the loan.

**☐ The source of fixed interest rate of RMB loan is:** the quoted interest rate of loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the National Inter-bank Lending Center as of one working day before the effective date of this contract ☐ plus/☐minus (optional) <u>/</u> basis points;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Sources of fixed interest rates for foreign currency borrowings:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Base rate plus <u>/</u> basis points applicable on the effective date of this Contract (T day).The benchmark interest rate is the value of <u>/</u> T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR corresponding to the currency of the loan agreed under this contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Base rate plus<u> </u> basis points applicable on the effective date of this Contract (T days, if the effective date is not a business day, the most recent business day before is T days).The benchmark interest rate is the interest rate of ☐ US dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ <u>/</u> T-5 business days as shown on the Bloomberg Financial Telecommunications terminal page. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.**(Note: This section applies to overnight interest rates)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The latest one obtained from Reuters Information system before 9:00 (Beijing time) one working day prior to the effective date of this Contract <u>/</u> Monthly <u>/ (</u>foreign currency benchmark rate) plus <u>/</u> basis points.**If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **The floating interest rate,** starting from the actual withdrawal date (in the case of fractional withdrawal, the first actual withdrawal date), ☐ daily /🗹 12 month /☐ <u>/</u> year (choose one) as a floating period, will be repriced once. The repricing date is the first day of the next floating period, that is, the starting date is the corresponding day of the repricing month. If there is no corresponding day in the current month, it is the last day of the current month. If the floating period is daily, the repricing date is the day of the next floating period.

**For each withdrawal:**

🗹 **Floating interest rate of RMB loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) is one working day prior to the date of actual withdrawal. The market quoted interest rate for loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) as recently published by the national interbank offered center 🗹 plus/minus (optional) <u>0</u> basis points;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. On the repricing date, together with other tranches of withdrawals, the market quoted rate ☐ plus/minus (optional) basis points of loans with maturity of 🗹 1 year /☐ 5 years or more (optional)🗹 plus/minus (optional) <u>0</u> basis points to reprice, as the applicable interest rate for the floating period.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Floating interest rate on foreign currency borrowings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **If applicable term interest rate,**(the following rules will determine the interest rate:The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be determined by the spread of the base rate applicable on the date of actual withdrawal (T day) plus basis points. The benchmark interest rate is the value of<u> </u>T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR ☐ corresponding to the currency of the loan agreed under this Contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System**.**On the repricing date (T day),<u> </u> (term) ☐ Yen TIBOR ☐ Euro EURIBOR ☐<u> </u>T-3 business days for the currency of the loan agreed under this Contract as displayed on the bloomberg financial telecommunications terminal page or obtained from the Reuters Information System plus other tranche withdrawals The spread of the basis points determines the applicable interest rate for that floating cycle.The spread remains unchanged over the life of the contract.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **If the overnight rate is applicable,** the following rules will determine the interest rate: The base rate plus<u> </u>☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ shall apply on each interest date(i.e., each natural day of the borrowing period, the same below) in the currency of the borrowing under this contract <u>/ b</u>ase point spreads are determined.The subsequent lender shall determine the interest rate of each accruing date based on the benchmark interest rate applicable on each accruing date and the aforementioned spread.Interest date the daily pricing base rate shall be determined as follows: The first rate fixing date shall be the actual withdrawal date, and the subsequent rate fixing date shall be each interest date after the first rate fixing date.Interest rate fixing date (T day, if the interest rate fixing date is not a business day, The most recent business day before shall be T day) The base rate applicable is the currency of the loan agreed under this Contract as shown on the Bloomberg Financial Telecommunications Terminal page ☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>T-5 working days of the interest rate value.The spread remains unchanged over the life of the contract.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be the latest (foreign currency benchmark rate) plus basis point of the month obtained from Reuters Information System before 9:00 (Beijing time) one business day prior to the date of actual withdrawal.On the repricing date, together with other tranche withdrawals, the latest (foreign currency benchmark rate) for the same floating period obtained from Reuters Information System before 9:00 AM (Beijing time) on the business day prior to the repricing date will be repriced as the applicable interest rate for the floating period.**If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Interest calculation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) For the fixed interest rate of Item 1 (1), floating interest rate of RMB loan in Item 1 (2) and floating interest rate of foreign currency loan in Item A and C of this Article:**

The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.

Interest calculation formula: interest = principal**×**actual days**×**daily interest rate.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) For item B of Floating interest rate for foreign currency borrowings in Paragraph 1 (2) of this Article:**

**The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.**

**Simple interest:** The part calculated on the basis of the pricing base and the part calculated on the basis of the spread is calculated on the basis of simple interest.

**Single compound interest combined interest bearing:** For the part calculated according to the pricing base, the interest of the part per business day = (the loan principal + the total amount of interest owed by the previous day) **×** the base day interest rate applicable on that day**;**Non-working days are still accruing simple interest.The portion calculated on the basis of the spread is calculated as simple interest.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

The above mentioned working days refer to the local working days of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. the way of interest**

The borrower shall pay interest in the first of the following ways: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest accrues quarterly, the 20th day of the last month of each quarter is the coupon Day, and the 21st Day is the coupon payment Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest accrues monthly, the 20th day of each month is the coupon Day, and the 21st Day is the Coupon Payment Day.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

If the Last Payment date of the principal of the Loan is not the Interest Payment Date, the last payment date of the Principal of the Loan is the Interest Payment Date and the Borrower shall pay all the interest payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Penalty interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the loan is overdue or not used for the purpose agreed in the contract, penalty interest shall be levied on the overdue or misappropriated part from the date of the overdue or misappropriated part until the principal and interest are repaid.

For overdue and misappropriated loans, penalty interest shall be calculated at the higher penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the interest and penalty interest that the Borrower fails to pay on time, compound interest shall be calculated **according to the penalty interest rate agreed** in this paragraph in the manner of settlement agreed in Paragraph 3 of this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Penalty interest rate (Remarks: Fill in according to the currency of the loan and the way of determining the interest rate)

**RMB loan penalty interest rate, ☐ Penalty interest rate on fixed-rate loans**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Floating interest rate, the floating period is<u> </u> month /<u> </u>year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period).Reprice once per floating period from the date of overdue or misappropriation.The repricing date shall be the overdue or misappropriated date. If there is no such date in the current month, the last day of the current month shall be the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be charged <u>%</u> at the base rate of penalty interest determined in subparagraph C, and the penalty interest rate for misappropriated loans shall be charged at the base rate of such penalty interest rate<u> </u>%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In the first floating period, the base rate of penalty interest is the borrowing rate agreed in paragraph 1 of this article.After the completion of each floating period, the penalty rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) <u>t</u>he base point is determined.

**☐ Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article.The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>40</u> %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>70 %</u>

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing date in accordance with the manner stipulated in paragraph 1 of this Article.

**Foreign currency borrowing penalty interest rate, ☐ Penalty interest rate on fixed-rate loans**

The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article<u> </u>basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article<u> </u>basis points

**☐ Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Paragraph 1 (2) of this article on the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u>the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u> the basis point.

**Floating rate Penalty interest rate for borrowing(Note: This section applies to loans with single compound interest and can not be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u>the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u> the basis point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The "loan interest rate" and "penalty interest rate" under this Contract are tax inclusive interest rates, that is, the interest charged by the Lender to the Borrower has included VAT payable in accordance with national laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of any material change in the pricing basis of the floating interest rate hereunder, the market rules in force at that time shall apply.If the Lender then requires the Borrower to sign a supplementary contract on relevant matters, the Borrower shall cooperate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term "pricing base" in this Article has the same meaning as the term "base rate".

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Under this Contract, "TIBOR" means TIBOR announced and managed by the Japan Bankers Association (or the successor administrator), and "EURIBOR" means EURIBOR announced and managed by the European Money Market Institute (or the successor administrator) as the administrator. "Overnight SOFR" means an overnight SOFR published and administered by the Federal Reserve Bank of New York (or a successor governor) as administrator, "Overnight SONIA" means an overnight SONIA published and administered by the Bank of England (or a successor governor) as administrator, "Overnight TONA" means the overnight TONA published and managed by the Bank of Japan (or successor) as administrator, "Overnight ESTR" means the overnight ESTR published and managed by the European Central Bank (or successor) as administrator, "Overnight SARON" means the overnight SARON published and administered by the Swiss Stock Exchange (or a successor administrator) as the administrator.

**Article 5 Withdrawal conditions**

The borrower shall meet the following conditions for withdrawal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract and its attachments have come into force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has provided the guarantee as required by the lender, and the guarantee contract has taken effect and completed the legal approval, registration or filing procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower has reserved for the Lender the Borrower's documents, receipts, seals, names of persons and signature samples related to the conclusion and performance of this Contract, and has filled in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower has opened an account necessary for the performance of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Submit the written withdrawal application and relevant documents proving the purpose of the loan to the lender and handle the relevant withdrawal procedures on the bank <u>2</u> working days before the withdrawal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. 🗹 The Borrower has submitted to the Lender the resolution and letter of authorization for the Board of Directors or other competent departments to sign and perform this contract;(Note: This clause is optional. Please check whether the borrower has obtained relevant approval and authorization before signing the contract.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other withdrawal conditions stipulated by law and agreed by both parties

<u> </u>

If the above conditions are not met, the Lender shall have the right to reject the Borrower's withdrawal application, except where the Lender agrees to make the loan.

**Article 6 Time and method of withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall withdraw the money in the following <u>(2)</u> time and method:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)<u> </u> Year<u> </u> month<u> </u>day One time extraction on the day of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the loan shall be cleared <u>On June 22, 2022</u> Within a month

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Withdrawal in installments according to the following time:

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| | |
|:---|:---|
| Time of withdrawal | Amount of withdrawal |
| &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;/ |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall have the right to reject the Borrower's withdrawal application for the part not used within the aforesaid time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Commitment Fee (If the borrower is a small and micro enterprise, this clause shall be deleted;If the borrower is not a small or micro enterprise, one of the three options should be reserved according to the actual situation, and the other options should be deleted)**

**The Lender provides the promised service for the loan that the Borrower may and does not draw during the promised Service period (from the effective date of this Loan Contract to the drawdown date agreed herein) (hereinafter referred to as the "Undrawn Loan").Upon mutual agreement between the Borrower and the lender, the commitment fee is as follows:**

**☐ The Borrower shall pay a commitment fee for the aforesaid promised services.Specific according to the undrawn loan amount, undrawn days and annual rate<u> </u>% calculated.The specific fee date and calculated actual fee amount shall be separately signed in the Promised Service Agreement during the promised service period.**

**☐ The Borrower shall pay a commitment fee for the aforesaid promised services.It is agreed that the commitment fee is RMB<u> </u>Yuan, and the date of collection is<u> </u> (Note: it can be agreed to be collected in one time or in installments. For those charged in installments, please fill in the date and amount of the fee in this column).**

**☐ The Lender shall, in accordance with the principle of "fee reduction and interest concession", waive the commitment fee for the aforesaid aforesaid service and assess the amount to be RMB<u> </u> Yuan.**

**Article 7 Payment of loan funds**

1. Loan issuing account

The Borrower shall open the following account with the Lender as the loan issuance account, and the loan issuance and payment shall be handled through this account.**☐** This account is a special account and can only be used for the issuance and payment of borrowed funds, not for the receipt and payment of other funds.(Note: This sentence is optional and should be deleted if not applicable)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment method of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment method of the borrowed funds shall be implemented in accordance with laws and regulations, regulatory provisions and provisions of this Contract. The payment method of the borrowed funds for a single withdrawal shall be confirmed in the withdrawal application. If the lender considers that the payment method of the borrowed funds selected in the withdrawal application does not meet the requirements, it has the right to change the payment method or stop the release and payment of the borrowed funds.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Entrusted payment by the Lender means that the Lender pays the borrowed funds to the Borrower's counterparty conforming to the purpose agreed herein according to the Borrower's withdrawal application and payment authorization.According to the relevant regulations of the CBRC and the internal management regulations of the lender, payment of loan funds meeting one of the following conditions shall be made by the lender as entrusted payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The lender and the borrower establish a new credit business relationship, and the borrower's credit rating does not meet the lender's internal requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. When the withdrawal application is made, the payment object is clear (with a clear account and account name) and the amount of a single payment exceeds <u>0</u> RMB (excluding, the foreign currency is converted at the actual withdrawal day exchange rate)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Other circumstances specified by the Lender or agreed with the Borrower:

<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Independent payment by the Borrower, that is, after the Lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower pays the loan funds independently to the borrower's counterparty meeting the purpose agreed in the contract.Except for the circumstances stipulated in the preceding paragraph, where the lender is to be entrusted with the payment method, other payment methods of the borrowed funds shall be paid by the borrower independently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Change of payment method.After the submission of the withdrawal application, if the borrower's external payment, credit rating and other conditions change, the borrower shall change the payment method of the borrowed funds if the self-paid borrowed funds meet the conditions agreed in item (2) of Paragraph 2 of this Article.If the payment method is changed or the entrusted payment method changes the amount of external payment, the payment object and the purpose of the loan, etc., the borrower shall provide the lender with a written explanation of the application for the change, and resubmit the application for withdrawal and relevant transaction materials proving the purpose of the funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Specific requirements for entrusted payment of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment entrustment.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall have a clear payment authorization in the withdrawal application, that is, authorizes and entrusts the lender to directly pay the borrowed funds to the Borrower's designated counterparty account conforming to the purposes agreed herein after transferring the borrowed funds into the borrower's designated account. And shall provide the name of the counterparty receiving the payment, counterparty account, payment amount and other necessary payment information.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision of trading information.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall provide the Lender with the information of its lending account and the account of the counterparty and the certification materials proving that the withdrawal conforms to the purposes agreed in the loan contract at each time of withdrawal.The Borrower shall warrant that all information provided to the Lender is true, complete and valid.If the Lender's entrusted payment obligation fails to be completed in time due to inaccurate, inaccurate or incomplete transaction information provided by the Borrower, the Lender shall not assume any responsibility, and the repayment obligation of the Borrower already incurred under this Contract shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The lender's fulfillment of the entrusted payment obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In case of entrusted payment by the Lender, after the borrower submits the payment authorization and relevant transaction materials, the lender shall pay the borrowed funds to the borrower's counterparty through the borrower's account after examination and approval.

B.If the Lender finds through examination that the relevant transaction materials such as the proof of use provided by the Borrower do not conform to provisions hereof or have other defects, it shall have the right to require the Borrower to supplement, replace, explain or resubmit the relevant materials. Before the Borrower submits the relevant transaction materials deemed qualified by the Lender, the Lender shall have the right to refuse the release and payment of the relevant funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Lender is unable to timely pay the borrowed funds to its counterparty in accordance with the payment authorization of the Borrower due to the refund of the bank that opened the counterparty's account, the Lender shall not assume any liability and the repayment obligations of the Borrower already incurred under this Contract shall not be affected.The Borrower hereby authorizes the Lender to freeze the amount returned by the opening bank of the counterparty's account.Under such circumstances, the borrower shall resubmit the payment entrustment, proof of use and other relevant transaction materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower shall not evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Upon the release of the borrowed funds, the Borrower shall, as required by the Lender, promptly provide the records and materials for the use of the borrowed funds, including but not limited to the aforementioned materials <u>copy of payment voucher</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Under any of the following circumstances, the Lender has the right to re-determine the terms of loan issuance and payment or to stop the issuance and payment of loan funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower violates this Contract and evades the entrusted payment by the lender by breaking the whole into pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The credit status of the borrower declines or the profitability of the main business is not strong;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Abnormal use of borrowed funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower fails to provide the use records and materials of the loan funds in time as required by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower pays the borrowed funds in violation of the provisions of this Article.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 8 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower designates the following account as the fund withdrawal account, and the borrower's fund withdrawal shall be entered into this account.The borrower shall provide the information of the funds in and out of the account in time.The lender shall have the right to require the borrower to explain the inflow and outflow of large and abnormal funds in the capital return account and to supervise the account.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract according to the following repayment plan: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All loans under this contract shall be repaid on the expiration date of the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the loan under this Contract according to the following repayment plan:

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| | |
|:---|:---|
| Time of repayment | Amount of repayment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023.06.21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;￥3,000,000.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other repayment plans:<u> </u>

If the borrower wants to change the above repayment plan, it shall submit a written application to the Lender before <u>5</u> banking day, and the change of the repayment plan shall be confirmed by both parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Unless otherwise agreed by the parties, if the Borrower defaults on the principal and interest of the loan and the expense of realizing the claim, the Lender shall have the right to determine the sequence of repayment of the principal or interest and the expense of realizing the claim;In the case of installment repayment, if there are multiple loans due or overdue under this contract, the Lender has the right to determine the order of repayment of a certain repayment by the Borrower;Where there are multiple expired loan contracts between the borrower and the lender, the lender has the right to determine the order of contract performance by the borrower for each repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Unless otherwise agreed by both parties, the borrower may repay the loan in advance, but shall notify the lender in writing <u>30</u> banking day in advance.he amount of the prepayment is used first to repay the last loan due, in reverse order.**

**For borrowings with single compound interest, such as pre-repayment or partial pre-repayment, the interest corresponding to the pre-repayment principal should be settled in one lump sum.**

**☐ The Lender shall have the right to charge liquidated damages for early repayment according to the<u> </u>standard of the early repayment portion (Note: This clause is optional. If it is not applicable or the borrower is a small and micro enterprise, it shall be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower shall repay In the <u>first</u> way below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower shall deposit the full amount of funds in the following repayment account for repayment not later than <u>5</u> banking working day prior to the maturity of each principal and interest, and the Lender shall have the right to deduct the collection from the account voluntarily on the due date of each principal and interest.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other repayment methods agreed by both parties:

**Article 9 Guarantee** (Note: Fill in optionally according to the actual conditions, and delete the inapplicable clauses)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The debt hereunder shall be guaranteed in the following ways:<u> </u>

**☐** No guarantee.

☐ This contract belongs to the guarantor <u>Yinglai Wang,Yujun Xiao</u> is the main contract under the No.<u>Z66X2022034</u> ☐ Maximum Amount Guarantee Contract /☐ Maximum Amount Mortgage Contract /☐ Maximum Amount Pledge Contract signed between the Guarantor and the Lender, and the guarantor shall provide the maximum amount guarantee.

**☐ (Other forms of guarantee)<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event that the Borrower or the Guarantor may affect its ability to perform the Agreement, or that the Guarantee contract becomes invalid, cancelled or rescinded, or that the Borrower or the Guarantor's financial situation deteriorates or becomes involved in major litigation or arbitration cases, or that the Borrower or the Guarantor's accounts are closed or for other reasons may affect its ability to perform the Agreement, If the guarantor breaches the guarantee contract or any other contract between the guarantor and the Lender, or the guarantee is devalued, damaged, lost or sealed, resulting in the weakening or loss of the value of the guarantee, the Lender shall have the right to require and the Borrower shall have the obligation to provide a new guarantee or replace the guarantor to guarantee the obligations hereunder.

**Article 10 Invoicing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may apply to the Lender for issuing a VAT invoice (☐ special VAT invoice /☐ general VAT invoice) after the Lender has confirmed receipt of the payment, and the Lender shall issue a VAT invoice to the Borrower after receiving the Borrower's application for issuing a VAT invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower may apply for the issuance of VAT invoice to the corresponding business handling agency or other agencies designated by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower shall confirm that the payer, the contract signer and the buyer listed in the VAT invoice are the same tax payer.In case of any inconsistency, the Borrower cannot enter the account or deduct the input tax according to law, the relevant loss shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the borrower loses the invoice after obtaining it, the Lender need not issue the VAT invoice to the borrower again.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the lender provides discount to the borrower through negotiation, the VAT invoice amount shall be subject to the discounted price.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender will not provide a VAT invoice if the Lender provides services to the Borrower free of charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. When the Lender issues a VAT invoice to the Borrower, the Borrower shall check the invoice information in time.If the invoice information is wrong, the borrower shall promptly apply to the lender for a new VAT invoice.

**Article 11 Declarations and undertakings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. The Borrower declares as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower is legally registered and exists, and has the full capacity for civil rights and conduct necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The signing and performance of this Contract is based on the true intention of the Borrower, which has been legally and effectively authorized in accordance with its articles of association or other internal management documents, and will not violate any agreement, contract or other legal documents binding on the Borrower;The Borrower has or will obtain all relevant approvals, permits, filings or registrations necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) All documents, financial statements, vouchers and other materials provided by the Borrower to the Lender under this Contract are true, complete, accurate and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The transaction background of the borrower's application for subordination business with the lender is true and legal, does not involve money laundering, terrorist financing, WMD proliferation financing, tax evasion, fraud and other illegal purposes, and does not violate the provisions of the United Nations, China and other applicable sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower does not conceal from the Lender events that may affect its and the guarantor's financial position and ability to perform the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower and the loan project meet the national environmental protection standards, and the enterprises and projects with serious energy consumption and pollution problems and ineffective rectification are not subject to the risk of energy consumption and pollution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The purpose of borrowing and the source of repayment are genuine and legal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Other matters declared by the Borrower:<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The Borrower undertakes as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Submit its financial statements (including but not limited to annual reports, quarterly reports and monthly reports) and other relevant materials to the Lender on a regular or timely basis as required by the Lender;(a) The Borrower ensures that it continues to meet the following financial criteria:<u>Keep profitable</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower has entered into or will enter into a counter-security agreement or similar agreement with the guarantor of this Contract in respect of its security obligations, such agreement will not prejudice any of the Lender's rights under this Contract;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accept the lender's credit inspection and supervision, and give sufficient assistance and cooperation;Where the borrower makes the payment independently, it shall, as required by the lender, regularly summarize and report the payment and use of the loan funds. The specific time for the report is: <u>On the 15th of each month</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In the event of merger, division, capital reduction, equity transfer, foreign investment, substantial increase in debt financing, transfer of material assets and creditor's rights and other matters that may adversely affect the borrower's ability to repay the debt, the borrower shall obtain the written consent of the Lender in advance;

The Borrower shall promptly notify the Lender of any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Change
 of articles of association, business scope, registered capital and legal representative of
 the borrower or guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Change
 the mode of operation in any form such as joint venture, joint venture, cooperation, contract
 operation, reorganization, restructuring and planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Is
 involved in major litigation or arbitration cases, or property or security is sealed, seized
 or placed in custody, or new security is placed on the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Being
 closed down, dissolved, liquidated, suspended for rectification, being revoked, having its
 business license revoked, or (being) applying for bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Shareholders,
 directors and current senior managers are involved in major cases or economic disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The
 borrower defaults under any other contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Operating
 difficulties or deterioration of its financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The order of repayment of the borrower's debts to the lender is higher than that of the borrower's shareholders, and no less than that of other creditors;

☐ Moreover, the Borrower shall not repay the loan from the shareholder of the Borrower before the effective date of this Contract and the completion of the repayment of the principal, interest and related expenses of the loan hereunder;(Note: This sentence is optional and should be deleted if not applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) ☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of the previous fiscal year, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower does not distribute dividends and bonuses to the shareholders in any form;

☐ The Borrower shall not distribute dividends and bonuses to the shareholders in any form from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ The dividend and bonus distributed by the Borrower to the shareholders shall not exceed % of the Borrower's after-tax profit from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of previous fiscal years, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower shall not distribute dividends and bonuses to the shareholders in any form.Where dividends and bonuses can be distributed to shareholders in accordance with the provisions of this paragraph, the dividend and bonus distributed to shareholders by the Borrower shall not exceed % of the Borrower's after-tax profit;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower does not dispose of its own assets in a manner that reduces its solvency.It undertakes that the total amount of its foreign guarantee shall not be more than <u>2</u> times of its own net assets, and the total amount of its foreign guarantee and the amount of its single guarantee shall not exceed the limit prescribed by its articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Except for the purposes agreed herein or with the consent of the Lender, the Borrower shall not transfer the loan funds hereunder to the account of the same name or the account of the affiliated party.

For the transfer of the account of the borrower with the same name or the account of a related party, the Borrower shall provide the corresponding supporting materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) ☐ With respect to the loan hereunder, the guarantee conditions, the pricing of the loan interest rate, the order of repayment and other loan conditions provided by the Borrower to the Lender shall not be lower than those now or in the future provided to any other financial institution;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) ☐ Go through the foreign exchange loan registration, principal and interest repayment approval and other procedures at the SAFE in time;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The lender shall have the right to collect the loan in advance according to the borrower's capital collection situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) ☐ The Borrower shall submit its environmental and social risk report to the Lender.The Borrower represents and warrants to strengthen environmental and social risk management and undertakes to accept supervision by the lender.Any breach of the foregoing by the Borrower shall constitute or be deemed to be a breach under this Agreement, and the Lender may take remedies for breach in accordance with this Agreement;(Note: This clause is optional. According to the CBRC Green Credit Guidelines, if the borrower is a customer with major environmental and social risks, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Cooperate with the lender to conduct due diligence, provide and update information about the Institution and its beneficial owners, and provide background information about the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other commitments of the Borrower:

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 12 Disclosure of related transactions within the Group of the borrower**

The parties agree that <u>1</u> the following clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not one of the group customers identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Commercial Banks Group Customers (the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Group Customers of Commercial Banks (hereinafter referred to as the "Guidelines").The Borrower shall timely report to the Lender the related transactions of more than 10% of its net assets, including the related relationships of the parties to the transaction, the items and nature of the transaction, the amount or corresponding proportion of the transaction, and pricing policies (including transactions with no amount or only a nominal amount).

If the borrower is under any of the following circumstances, the lender has the right to unilaterally decide to stop paying the loan that the borrower has not yet used and to recover part or all of the principal and interest of the loan in advance: using a false contract with a related party to discount or pledge the creditor's rights such as notes receivable and accounts receivable with no actual trade background to the bank to extract bank funds or grant credit;Major merger, acquisition and reorganization, which the lender considers may affect the security of the loan;Intentionally evading and abolishing bank creditor's rights through affiliated transactions;Other circumstances as stipulated in Article 18 of the Guidelines.

**Article 13 Event of breach and treatment**

**Any of the following shall constitute or be deemed to be an event of default by the Borrower under this Contract:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower fails to perform its obligations of payment and repayment to the Lender as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to use the loan funds in the way agreed herein or fails to use the obtained funds for the purposes agreed herein;Or the borrower uses the loan funds to transfer loans or purchase other financial products for arbitrage;Or the borrower unlawfully added the hidden debt of local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower's statements in this Contract are untrue or violate its commitments in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower fails to provide a new guarantee or replace the guarantor in accordance with the provisions of this Contract if the Lender considers that the occurrence of any situation as stipulated in Article 11 (2) (4) may affect the financial condition and performance ability of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower's credit status declines, or the borrower's profitability, solvency, operating capacity, cash flow and other financial indicators deteriorate, breaking the index constraints agreed herein or other financial agreements;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ☐ The Borrower defaults under other contracts with the Lender or other institutions of Bank of China Limited;

☐ The Borrower defaults under other contracts with the lender or other institutions of Bank of China Limited;Event of default under the credit granting contract between the borrower and other financial institutions;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The guarantor breaches the terms of the guarantee contract, or breaches any other contract between the guarantor and the lender or other institutions of Bank of China Limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower terminates its business or is dissolved, revoked or bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower is involved or may be involved in major economic disputes, lawsuits or arbitration, or its assets are sealed up, seized or enforced, or its assets are investigated or punished by judicial authorities, tax authorities, industry and commerce authorities or other administrative authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower's major investors and key management personnel have abnormal changes, disappeared or been investigated or restricted by judicial authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. When the Lender reviews the financial position and performance ability of the Borrower annually (i.e., every year after the effective date of this Contract), it finds that there are circumstances that may affect the financial position and performance ability of the Borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The designated fund return account has large amount and abnormal capital inflow and outflow, and the borrower cannot provide explanatory materials approved by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ☐The construction of energy-saving projects is seriously delayed, energy-saving technology and equipment have serious defects, the main facilities or equipment stop and reduce production, resulting in a substantial decline in energy consumption load, the actual energy saving is significantly lower than the predicted amount, the energy saving income cannot be timely returned to the designated account, the borrower participates in private high-interest lending, without the consent of the lender to guarantee or borrow new debt, and the main financial indicators seriously deteriorate;(Note: This clause is optional. When conducting energy efficiency credit business in accordance with the Energy Efficiency Credit Guidelines, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Borrower refuses to cooperate with the Lender in carrying out due diligence, the Borrower or its transaction/counterparty is suspected of money laundering, terrorist financing, nuclear weapons proliferation, violation of applicable sanctions or other violations, or the Borrower or the guarantor is included in the United Nations, China and other applicable sanctions list or scope of sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Borrower breaches other provisions of this Contract concerning the rights and obligations of the parties.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**In case of the occurrence of the event of default specified in the preceding paragraph, the Lender shall have the right to take the following measures separately or simultaneously depending on the specific circumstances:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the borrower and guarantor to correct the breach within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reduce, suspend, cancel or terminate the credit line to the Borrower in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Suspend or terminate, in whole or in part, the acceptance of the Borrower's withdrawal and other business applications under this Contract and other contracts between the Borrower and the Lender;To suspend, cancel, or terminate the issuance, payment and handling of loans and trade financing that have not yet been issued in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Declare that all or part of the outstanding loan/trade finance principal and interest and other amounts payable under this Contract and other contracts between the Borrower and the Lender are immediately due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Terminate or rescind this Contract and terminate or rescind in whole or in part other contracts between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Require the Borrower to compensate the losses caused to the Lender by its breach of contract, including but not limited to the loss of legal costs, attorney's fees, notary fees, enforcement fees and other related expenses caused by the realization of the creditor's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The amount of the Borrower in the accounts opened by the Lender and other institutions of Bank of China Limited shall be deducted to pay off all or part of the Borrower's debts to the Lender under this Contract.The amount not due in the account is deemed to be due early.If the currency of the account is different from the Lender's valuation currency, it shall be converted at the Lender's applicable foreign exchange rate at the time of collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Exercise of guarantee real right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Require the guarantor to undertake the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Such other measures as the Lender deems necessary and possible.

**Article 14 Reservation of Rights**

If either party fails to exercise any or all of its rights under this Contract or requires the other party to perform or assume any or all of its obligations and responsibilities, it shall not constitute a waiver of such rights or an exemption from such obligations and responsibilities.

Any tolerance, extension or postponement by either party to the other party of its rights hereunder shall not affect any of its rights under this Contract, laws and regulations, nor shall it be deemed as a waiver of such rights.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 15 Alteration, modification and termination**

This Contract may be modified or modified in writing upon mutual agreement of both parties. Any modification or modification shall form an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated until all rights and obligations hereunder have been fulfilled.

Unless otherwise provided by laws or regulations or agreed by the parties, the invalidity of any provision of this Contract shall not affect the legal effect of the other provisions.

**Article 16 Application of law and dispute settlement**

This contract shall be governed by the laws of the People's Republic of China.

After the Contract comes into force, all disputes arising out of or in connection with the execution or performance of this Contract shall be settled by the parties through negotiation.**If no agreement can be reached through negotiation, either party may adopt the <u>two</u> of the following methods:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Arbitration.submit

☐ China International Economic and Trade Arbitration Commission

☐ Beijing Arbitration Commission (Beijing International Arbitration Center)

☐<u> </u>Arbitration Commission

 <u>/</u> (place of arbitration) In accordance with the Commission's arbitration rules in effect at the time of submission of the application for arbitration.The arbitral award shall be final and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Lawsuits.The parties may choose the Chinese court through consultation to settle the matter through litigation.

☐ Bring a suit in accordance with law to the people's court of the place where the lender or any other Bank of China Limited institution exercising its rights and obligations in accordance with this Contract or Individual Agreement has its domicile.

☐ Bring legal proceedings to the International Commercial Tribunal of the Supreme People's Court (international commercial disputes with a subject matter of more than 300 million yuan).

☐ Bring a suit to the people's court having jurisdiction in accordance with the law.

During the dispute settlement period, if the dispute does not affect the performance of the other terms of this Contract, the other terms shall continue to be performed.

**Article 17 Appendix**

The following attachments and other attachments confirmed by both parties shall form an integral part of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Withdrawal application form (format);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notification Letter of Annualized Loan Interest Rate (format);

3.....

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 18 Other Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not assign any rights and obligations hereunder to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the Lender is required to entrust other institutions of Bank of China Limited to perform the rights and obligations hereunder due to business needs, or assign the loan business hereunder to other institutions of Bank of China Limited to undertake and manage, the Borrower agrees.Any other institution of Bank of China Limited authorized by the Lender or any other institution of Bank of China Limited undertaking the loan business hereunder shall have the right to exercise all rights hereunder, and shall have the right to file a lawsuit in the court in the name of such institution, submit the dispute to an arbitration institution or apply for enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without affecting other provisions hereof, this Contract shall be legally binding on both parties and their successors and assigns in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unless otherwise agreed, both parties shall designate the domicile set forth in this Contract as the correspondence and contact address and the delivery address confirmed by both parties to be valid.The applicable scope of service address includes the delivery of various notices, contracts and other documents during the performance of the contract between the parties, as well as relevant documents and legal documents in the event of disputes arising from this contract, and the first instance, second instance, retrial and execution procedures after the disputes enter into arbitration and civil proceedings.

In case of any change of the above address, the changing party shall inform the other party of the changed address in writing <u>two</u> working day in advance.In arbitration and civil proceedings, either party shall perform the obligation of serving notice of the change of address to the arbitration institution or the court when the address is changed.If either party fails to perform the notification obligation in the foregoing manner, the address for service confirmed herein shall still be deemed to be the valid address for service.

If the legal document is not actually received by one party due to inaccurate address provided or confirmed by one party, failure to notify the other party and the court in time after the change of the address of service, or the designated receiver's refusal to sign for it, the date of delivery of the legal document shall be deemed as the date of service.In the case of direct service, the date on which the Courier records the information on the acknowledgement of service on the spot shall be deemed as the date of service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Transactions hereunder shall be conducted on the basis of their respective independent interests.If other parties to the transaction constitute affiliates or associates of the Lender in accordance with relevant laws, regulations and regulatory requirements, none of them will seek to use such affiliates to affect the fairness of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The titles and business names in this Contract are for convenience only and shall not be used to interpret the contents of the terms and the rights and obligations of the parties.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. The Lender shall have the right to provide the information related to this Contract and other relevant information of the Borrower to the Financial Credit Information Basic Database and other credit information databases established according to law in accordance with relevant laws, regulations and regulatory provisions for the inquiry and use by properly qualified institutions or individuals according to law.The Lender also has the right, for the purpose of the conclusion and performance of this Contract, to inquire the relevant information of the Borrower through the Basic financial credit Information database and other legally established credit information database.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. In case of legal holidays, the withdrawal date and repayment date shall be postponed to the first working day after the holidays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If the Lender fails to perform this Agreement or fails to perform as agreed herein due to changes in laws, regulations, regulatory provisions or requirements of regulatory authorities, the Lender shall have the right to terminate or alter the performance of this Agreement and the individual Agreements hereunder in accordance with changes in laws, regulations, regulatory provisions or requirements of regulatory authorities.If the Lender is unable to perform or perform as agreed herein due to termination or alteration of this Agreement for such reasons, the Lender shall be exempted from liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. The Borrower may consult and complain about the Contract and the business and charges hereunder through the contact number of the lender listed herein.**

**☐ 11. The Borrower and the lender agree to perform compulsory notarization through consultation. Within <u>/</u> working days after the signing of this Contract, the Borrower and the lender shall go to the notary office to perform compulsory notarization.The compulsory notary fee shall be borne by the borrower <u>/</u> and the lender <u>/</u> . If the borrower is a small and micro enterprise, the compulsory notary fee shall be borne by the lender.**

**If the borrower fails to perform or improperly perform the repayment obligations stipulated in this Contract after performing the compulsory notarization in accordance with this Contract, the lender may apply to the notary office for a certificate of execution and apply to the people's court with jurisdiction for compulsory execution, and the borrower is willing to accept compulsory execution.**

(Note: This clause is optional, if not applicable, it needs to be deleted)

**Article 19 Effectiveness of a Contract**

This contract shall come into force upon being signed and sealed by the legal representatives (responsible persons) or authorized signatories of both parties.

This contract is made in duplicate with each party holding the same legal effect.

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| | |
|:---|:---|
| **Borrower:<u> </u>** | **Lender: <u>Bank of China Limited,Wuxi Branch</u>** |
| **Authorized Signatory:**<u> </u> | **Authorized signatory:<u> </u>** |
| **Date of signing:<u>On June 22, 2022</u>** | **Date of signing: <u>On June 22, 2022</u>** |

---

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Attached is the notification letter of the annualized interest rate of the loan**

No :

To: __________/_________ (Borrower)

1. Our bank and your company have signed the Working Capital Loan Contract numbered ______/____.Under the aforementioned contract, our bank, as the lender, provides the loan to your company at an annualized interest rate of ___/___.The annualized rate of interest (☐ simple /☐ compound (optional)) consists of:

(1) The loan interest calculated according to the loan interest rate stipulated in Paragraph 1 of Article 4 of the aforesaid Contract;

(2) All expenses directly related to the loan as stipulated in Article ______/__ of the aforesaid Contract;(Delete if not applicable)

(3) All kinds of charges directly related to the loan agreed in the _______/__ (number: __/___) separately signed by your company and our bank.(Delete if not applicable)

2. This notification letter, as an attachment to the aforementioned contract, constitutes an integral part and has the same legal effect as the aforementioned contract. The provisions of the aforementioned contract shall apply to the matters not agreed herein.

Lender: _______________/_____________________

Authorized signatory: _______________/_____________________

Date of signing: _______________/_____________________

## Exhibit 10.8

**Exhibit 10.8**

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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**Important Tips**

According to the relevant regulations of the China Banking and Insurance Regulatory Commission and the Bank, the following behaviors are strictly prohibited by the Bank's employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Borrow from customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Provide guarantee, verification or matchmaking for private lending;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Part-time job in an enterprise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrowing transitional funds from clients' accounts, or using my own account as transitional funds for clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Keep cards, passbook, passwords and important vouchers on behalf of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Illegal collection from customers, forced binding or improper tie-in;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Accept or ask for improper benefits.

To protect the rights and interests of our customers, the Bank solemnly reminds us as follows:

**All the above items are prohibited by the Bank. Any person engaged in the above activities for whatever reason is his personal behavior and does not represent the will of the Bank. Please be careful.**

At the same time, Bank of Nanjing urges customers to supervise our staff. If any of the above situations are found, please report them to the Bank via email cxjb@njcb.com.cn or call 025-86775624. The Bank will maintain strict confidentiality.

 **Ba1 RMB working capital loan contract**

**(Applicable to RMB working capital loans of legal and unincorporated organizations)**

**Number: <u>Ba154202207060015</u>**

**Lender (Party A) : Bank of Nanjing Co., LTD., <u>Wuxi Branch</u>**

**Borrower (Party B) : <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>**

Party B applies for RMB working capital loan to Party A, and Party A agrees to grant the loan.In order to clarify the rights and obligations of both parties and safeguard the legitimate rights and interests of both parties, Party A and Party B hereby enter into this contract through consultation in accordance with relevant laws, regulations and rules for the purpose of compliance and execution.

**Article 1 Representations and warranties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Representations and warranties of Party A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A is a banking institution legally established and qualified to operate the business hereunder.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) The signing and performance of this Contract by Party A has been approved by the competent decision maker or superior department as stipulated by law or its articles of association, and has obtained necessary, sufficient and legal authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party A's signing of this Contract is an expression of its true intention, and this Contract is legally binding on Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Representations and warranties of Party B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B undertakes that it is a legally established and validly existing legal person or unincorporated organization, and that the signing of this Contract is the expression of its true intention and is fully and fully binding on it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Party B has obtained the approval or authorization required by its articles of association or other organizational documents for signing and performing this Contract. Party B's signing and performing this Contract does not violate applicable laws and regulations or any agreements, contracts or other legal documents binding on Party B. In addition, Party B has obtained all relevant approvals, permits, records or registrations necessary to sign and perform this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party B's application to Party A to handle the business hereunder is true, legal and valid, and does not involve money laundering, terrorism or any other illegal purpose, nor does it violate any applicable laws, regulations and international treaties concerning economic sanctions, trade embargoes and trade controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) Party B undertakes that its production and operation are legal and compliant, that it has sustainable operation capacity, that it has legal sources of repayment, that it has good credit standing and that it has no bad credit record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) Party B undertakes to abide by the principle of good faith, and all materials provided to Party A are true, legal, complete and valid, without any errors, omissions, concealment or misleading statements inconsistent with the facts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) Party B undertakes to timely notify Party A in writing of any adverse event affecting its solvency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Party B has read all contents of "Important Tips" on the first page of this Contract, understands and accepts the risks prompted by Party A, and is willing to actively assist Party A in supervising the behaviors of Party A's employees.Party B undertakes not to have any improper interest relationship with any individual employee of Party A, such as fund exchange or account borrowing, and voluntarily accept the supervision of Party A.If Party B violates the above commitments, Party A shall have the right to hold Party B liable.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VIII) Party B undertakes that during the term of the loan hereunder until the principal and interest of the loan are repaid in full, Party B shall fully meet and strictly abide by the following financial targets:

1, <u>/</u> ; 2. <u>/</u> ;

3, <u>/</u> ; 4. <u>/</u> ;

5, <u>/</u> ; 6. <u>/</u> ;

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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**Article 2 Nature of Loan**

The loan under this contract is made in the <u>third</u> of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Borrowings within the non-credit limit and the maximum credit limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) For loans within the credit line, the Credit Contract number is <u>/</u> .This contract is the specific business contract under the Credit Extension Contract, and is an effective part of the Credit Extension Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) For loans within the maximum amount of claims, the number of the Contract for the Maximum Amount of Claims/Contract for the Maximum Amount of Claims is <u>A0454202206140002</u>.This contract is a specific business contract under the above Contract of Maximum Amount of Creditor's Rights/Contract of Maximum Amount of Creditor's Rights, and an effective part of the above Contract of Maximum Amount of Creditor's Rights/Contract of Maximum Amount of Creditor's Rights.

**Article 3 Loan amount**

**The loan amount under this contract is(in words) <u>three million yuan only</u> (lower case)<u>￥3,000,000.00</u>.**

**Article 4 Purposes of Loan**

**The loan purpose under this contract is the <u>first</u> of the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Working capital loan, to meet the working capital needs of Party B in production and operation, specifically to <u>pay the installation fee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) To repay old and new loans for the purpose of returning loans under <u>/</u> numbered <u>/</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) <u>/</u> .

Party B undertakes to use the loan hereunder in strict accordance with the purposes agreed herein and shall not use the loan hereunder in any form for equity investment, stock, futures and other speculative business activities or business projects explicitly prohibited by laws and regulations of other countries or other purposes that do not conform to laws and regulations, relevant national policies and Party A's regulations and requirements.

**Article 5 Term of Loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. The loan period hereunder shall be from <u>July 6, 2022</u> to <u>July 5, 2023</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. In case of any discrepancy between the start date of the loan period stipulated in the preceding paragraph and the IOU, the actual date of the loan set forth in the IOU shall prevail, and the maturity date stipulated in paragraph 1 of this Article shall be adjusted accordingly;If the loan is made in installments, the starting date of the loan period shall be the actual loan date listed in the IOU at the time of each loan, and the maturity date shall be no later than the maturity date determined at the time of the first loan and the IOU shall be the record.

The IOU is an integral part of this Contract and has the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. If Party B needs to extend the loan term, it shall submit a written application to Party A 10 days before the loan is due, and Party A shall review and decide whether to extend the loan term.If Party A approves the extension after examination, it shall sign the corresponding extension repayment agreement.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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**Article 6 Interest rate on loan, penalty interest rate, calculation and settlement of interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Interest rate of loan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) The loan interest rate hereunder shall be the annual interest rate, which shall be calculated by simple interest method. The interest rate shall be calculated by adding/subtraction of floating points on the basis of the quoted interest rate of <u>1-year</u> (1-year / 5-year or more) loan market issued by the National Inter bank Lending Center authorized by the People's Bank of China (hereinafter referred to as "LPR"), which shall be the first of the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Fixed interest rate, that is, the interest rate is <u>3.70000</u> %, the fixed interest rate is determined on the basis of <u>plus</u> (plus/minus) 0% (i.e., floating point) of the LPR <u>3.7</u> % published on <u>June 20, 2022.</u>The interest rate remains unchanged for the duration of the loan;If the loan is issued in installments, the interest rate of each loan issued shall apply to that interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Floating interest rate: the loan interest rate shall be determined by LPR <u>/</u> (plus/minus) <u>/</u> % (i.e., floating point) on the day before the loan issuance date (the calculation formula is R1=R0±n%, where R1 is the loan interest rate, R0 is LPR, and n% is the floating point, i.e., the increase or decrease of percentage points);If the loan is issued in batches, the interest rate shall be determined at the LPR level one day before the date of each loan issuance in accordance with the aforesaid floating rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Where the interest rate of the loan stipulated in the preceding paragraph is a floating interest rate, during the term of the loan (including after the loan is overdue), in case of any adjustment of LPR, the interest rate of the loan shall be adjusted in the <u>/</u> one of the following ways, provided that the People's Bank of China provides otherwise:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Immediate adjustment, that is, the loan interest rate shall be adjusted according to the newly published LPR and the floating rules stipulated in the preceding paragraph the next day after the LPR adjustment occurs after the loan is issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Fixed day adjustment, that is, the loan rate shall be adjusted on the first day of each <u>/</u> (year/quarter/month) after the loan is issued, and the loan rate shall be adjusted according to the LPR of the day before the loan rate adjustment and the floating rules stipulated in the preceding paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Adjustment of the corresponding date, that is, adjustment on the corresponding date of the loan issuance date of each year (if there is no corresponding date in the current year, it is the end of the corresponding month of the current year), and the loan interest rate shall be adjusted according to the LPR of the day before the loan interest rate adjustment and the floating rules agreed in the preceding paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The "Loan release date" herein refers to the date on which Party A actually releases the loan to the special loan release account designated by Party B under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The "Loan interest Adjustment Day" mentioned in this Contract means the date on which the loan interest rate is adjusted in the manner agreed above in case of LPR adjustment during the term of the loan (including the overdue loan).

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Penalty interest rate**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) If Party B fails to use the loan for the purpose agreed herein, the penalty interest rate shall be 100% above the loan interest rate agreed herein.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) The penalty interest rate for overdue loan under this contract shall be 50% more than the loan interest rate agreed in this contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) For the loan overdue or not used for the purpose specified in this Contract, the interest shall be charged at the penalty interest rate from the date when the loan is overdue or not used for the purpose specified in this Contract until the principal and interest are repaid.Interest and penalty interest that cannot be paid on time shall be compounded at the penalty interest rate.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Interest accrual

The interest on the loan shall be calculated from the date of issuance of the loan.The loan under this contract is subject to daily interest rate, daily interest rate = monthly interest rate /30, monthly interest rate = annual interest rate /12.If Party B fails to pay the interest on schedule, the interest will be compounded from the next day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Interest settlement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) For loans with a fixed interest rate, the interest shall be calculated at the agreed rate of interest at the time of settlement.For loans subject to floating interest rates, the interest shall be calculated at the interest rate determined in the current period of each floating period;If there are multiple interest rate fluctuations in a single interest period, the interest of each floating period shall be calculated first, and the interest of each floating period shall be calculated by adding up the interest of each floating period on the settlement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) The loan under this contract shall be settled <u>monthly</u> (monthly/quarterly),the interest settlement date is fixed as the 20th day of each <u>month</u> (month/quarter).

**Article 7 Loan Guarantee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For the debts hereunder, including but not limited to the loan principal, interest (including compound interest and penalty interest, the same below), liquidated damages, damages, expenses incurred by Party A to realize the debt and other amounts payable by Party B as agreed herein, the following guarantors shall provide Party A with one or more of the following guarantees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) <u>Yujun Xiao and Yinglai Wang</u> shall, as the guarantor, provide the joint and several liability guarantee and sign the corresponding guarantee contract with Party A or the guarantor shall issue the relevant guarantee certificate and letter of commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) As the mortgagor, <u>/</u> shall provide mortgage guarantee with the property owned or legally entitled to dispose of the mortgagor, and sign the corresponding mortgage contract with Party A or issue the relevant guarantee letter by the mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) As the pledgor, *<u>/</u>* shall provide the pledge guarantee with the movable property or rights or other legal property owned or legally entitled to dispose of by the pledgor, and sign the corresponding pledge contract with Party A or issue the relevant guarantee letter by the pledgor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the guarantor signs a guarantee contract with Party A or provides a unilateral guarantee promise to guarantee Party B's debts hereunder although it is not listed herein, it shall constitute the guarantor's effective guarantee for the debts hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If there is any change in the guarantee hereunder that is not conducive to the realization of the guarantee of Party A's claims, Party B shall provide other guarantees recognized by Party A as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. "Expenses incurred by Party A to realize the creditor's rights" in this Contract shall include but not limited to attorney's fee, litigation fee, arbitration fee, appraisal fee, property preservation fee, execution fee, notary fee, evaluation fee, auction fee, notice fee, delivery fee, travel expense, insurance premium, storage fee, inquiry fee, deposit fee, transfer fee and tax fee, remittance fee, storage guarantee property and realization The expense of security interest, etc.**

**Article 8 Loan issuance and payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Preconditions for loan issuance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A may issue the loan if the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract has come into force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B has completed the approval, registration, delivery and other procedures related to the loan hereunder in accordance with relevant laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If there is a guarantee in this Contract, the guarantee contract meeting Party A's requirements has come into force and the guarantee right has been legally established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B shall submit to Party A a withdrawal application in written form or by digital message in accordance with Party A's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The purpose for which Party B applies for the withdrawal shall comply with provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall submit the following documents to Party A if the withdrawal applied for by Party B shall be paid by the trustee according to the Contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Authentic, complete and valid payment application and payment authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Original documents or copies stamped with Party B's official seal for the purpose of the withdrawal, including but not limited to the transaction contract, goods documents, joint visa, payment documents, certificates of the replaced financing, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other materials required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. If the withdrawal applied by Party B is made by independent payment as agreed herein, Party B shall submit the materials required by Party A to Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The covenants, warranties and representations made by Party B herein are continuously, truthfully and effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Party B does not have any breach that has occurred and continues to occur, and the loan to be drawn will not cause any breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B does not have any events or circumstances that have a material adverse impact on Party A's claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Other preconditions agreed by the parties: <u>/</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Party B acknowledges and accepts that Party A has the right to adjust, modify and supplement the preconditions of loan issuance hereunder in accordance with laws, regulations and rules in light of changes in Party B's credit, changes in the guarantee conditions hereunder and changes in relevant laws, regulations and market.**

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Withdrawal application

Party B shall submit a written withdrawal application as required by Party A to Party A at least five banking days in advance (see the appendix hereto for the style).The withdrawal application shall state the withdrawal date and amount, and the withdrawal date shall be Party A's working day. The sum of the withdrawal amount and the loan amount issued shall not exceed the loan amount in this contract; otherwise, Party A has the right to refuse to issue the loan.

The written withdrawal application signed and submitted by Party B is irrevocable, provided that if Party B submits a new withdrawal application to Party A before Party A actually makes the payment, the earlier withdrawal application shall become invalid and the later withdrawal application shall prevail, which shall still meet the requirements of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Special account for loan issuance

Party B irrevocably authorizes Party A to transfer the loan hereunder to the following special loan issuance account, which means that Party A has fulfilled its obligation to issue the loan to Party B in accordance with the agreement.

Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

Party A has the right to monitor the above accounts, and Party B has the obligation to accept and cooperate with Party A to monitor the above accounts.

If Party A requires Party A to issue an IOU for the loan under this Contract, Party B shall issue the IOU on time as required by Party A, which is an integral part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Loan payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B shall pay the loan under this contract in the <u>first</u> way of the following :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment by trustee shall be adopted in all cases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All payments shall be made independently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Entrusted payment shall be adopted for a single amount of funds exceeding <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>/</u> .

"Entrusted payment" in this contract means that Party A, based on Party B's withdrawal application and payment authorization, pays the loan to Party B's transaction object conforming to the purpose agreed in this Contract through a special account issued by the loan.Independent payment means that Party A shall, according to Party B's withdrawal application, release the borrowed funds to the above-mentioned special account for the issuance of the borrowed funds, and Party B shall independently pay the borrowed funds to Party B's transaction objects conforming to the purposes agreed herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) In case of entrusted payment, Party B shall submit to Party A a true, complete and valid application for payment and a business contract corresponding to the purpose of the loan hereunder and other supporting materials. After Party A's examination and approval, the borrowed funds shall be paid to Party B's transaction partner through the special account for the loan issued above.If Party B fails to submit the above documents as required or the payment application is not in line with the loan purpose agreed in the contract, Party A shall have the right to refuse Party B's fund payment.

In the case of independent payment, Party B shall regularly summarize and report to Party A the payment and use of the borrowed funds, and Party A shall have the right to check whether the loan payment conforms to the purposes agreed herein by means of account analysis, voucher inspection or on-site investigation.

**Article 9 Supervision of fund return accounts**

Party B shall open or designate the following special fund withdrawal account with Party A and provide Party A with the information of the funds in and out of the account in a timely manner.Party A shall have the right to supervise the account, and Party B shall actively cooperate with Party A to check the flow of funds in and out of the account and provide relevant information as required by Party A.

Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name:<u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

Party B undertakes and irrevocably authorizes Party A to withdraw the loan under this contract in advance according to Party B's fund collection situation.

**Article 10 Repayment of the loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B shall pay the interest due to Party A on the settlement date.The first Coupon Payment date is the first interest settlement day after the loan issuance.Interest follows capital at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B shall repay the loan principal in accordance with the <u>first</u> term of the following :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The principal shall be repaid once due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the principal in installments. The principal repayment plan is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>/</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall, prior to the repayment date agreed herein, prepare sufficient amount due for the current period in the following repayment account opened by Party A and irrevocably authorize Party A to deduct the corresponding amount from the repayment account to pay off the principal and interest of the loan hereunder.**If the loan is due on a non-banking working day, it will be postponed to the next banking working day.**

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iv. If Party B fails to perform its obligations as stipulated in the preceding paragraph, Party A shall have the right to withhold funds from any account opened by Party B in Bank of Nanjing Co., LTD. (including any branch offices) (including but not limited to current deposit account, time deposit account, national debt account, etc.) for the repayment right, and Party B shall bear the losses of interest, service charges, exchange and other losses arising from the withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. If the payment made by Party B is insufficient to pay off all debts hereunder, the payment shall be made in the following order: (I) Expenses incurred by Party A to realize the claims;(II) The loan interest (including penalty interest and compound interest) and other payments due (including but not limited to liquidated damages, damages, etc.) shall be repaid in the order of maturity;(III) Principal of loan.However, Party A has the right to unilaterally decide to change the foregoing payment order.**

**Article 11 Repay the principal in advance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. If Party B returns the principal in advance, it shall submit a written application to Party A 5 working days in advance, and may repay part or all of the principal in advance with Party A's approval.The interest of Party B's early repayment shall be calculated according to the amount of the repayment, the actual days of the payment and the loan interest rate agreed herein, and the corresponding interest shall be settled at the same time.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. After Party B repays the principal in advance, the loan that has not been repaid shall still be paid at the loan interest rate agreed herein.

**Article 12 Credit inquiry**

Party B irrevocably authorizes Party A to: When Party B applies for the loan under this Contract and during the term of the loan business, Party A shall have the right to inquire, print, save and use Party B's credit report and detailed information in the Financial Credit Information Basic Database of the People's Bank of China and/or the Enterprise Comprehensive Information Management System of Jiangsu Province (hereinafter referred to as the "Credit Information Management Agency"). At the same time, Party B irrevocably authorizes Party A to submit Party B's basic information, credit information, guarantee information and other credit information, including but not limited to Party B's basic information, credit information, guarantee information and other credit information (including the information caused by the failure to timely perform the contract obligations and other breaches that may cause negative impact) to the credit investigation management authority.Party B agrees that if the record is overdue for more than one year, the information will be submitted to the enterprise Credit Information Basic Database of Jiangsu Province through the Comprehensive Information Management System of Jiangsu Province.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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**Party A shall have the right to make an independent judgment on the credit investigation status of Party B. If Party A believes that the credit investigation status of Party B is poor or declining, Party A shall have the right to stop issuing financing to the debtor, withdraw the already issued financing in advance, require Party B to provide other guarantees recognized by Party A or take other measures as agreed in this Contract.**

**Article 13 Anti-money laundering clause**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B undertakes that Party B and its business entities shall not participate in money laundering, terrorist financing, tax evasion, fraud and other illegal and criminal activities, and shall cooperate with Party A to carry out investigation and provide relevant information in a timely manner when anti-money laundering laws and regulations/regulatory inspection and cooperation are required or when Party A finds that Party B's behavior or transaction is abnormal or suspected of violating applicable international sanctions. Ensure the accuracy, authenticity and completeness of relevant information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B undertakes that the down payment, first installment, repayment funds (including but not limited to monthly payment, scheduled repayment, overdue repayment, etc.), all kinds of deposits (including but not limited to deposits provided by Party B/guarantors or any third party), sources of funds such as fees, sources of credits/pledges provided and purposes of the loan involved in the process of borrowing or repayment from Party A are legal and compliant There is no suspicion of money laundering, terrorist financing, tax evasion, fraud and other illegal activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. If Party B violates any of the above terms, Party A shall immediately stop providing services to Party B without notice and shall be deemed as Party B in breach of the contract, and Party A shall have the right to take such measures as agreed herein, including declaring the loan to expire in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. If Party A finds or has reasonable grounds to suspect Party B of money laundering, terrorist financing, tax evasion and other illegal activities, Party A may take necessary money laundering risk control measures, including but not limited to shutting down the function, suspending the quota, declaring the loan due early and so on. Party B shall be fully liable for the costs incurred by Party A due to the risk control measures taken by Party A or the losses caused to Party A by Party B's failure to perform the anti-money laundering obligations or improper behaviors.

**Article 14 Rights and Obligations of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B shall have the right to ask Party A to issue the loan in accordance with this Contract if it meets the withdrawal conditions agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party A requires Party B to issue a Promissory Note, Party B shall promptly issue it as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall use the loan according to the purpose of the loan agreed herein, shall not misappropriate the loan, shall not use the loan in any form for equity investment, stock, futures and other speculative business activities or business projects explicitly prohibited by laws and regulations of other countries or other purposes that do not conform to laws and regulations, relevant national policies and Party A's regulations and requirements. The principal and interest of the loan and other expenses agreed herein shall be repaid in full and on schedule as agreed herein.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party B undertakes to use the loan in strict accordance with the payment terms agreed herein, actively cooperate with and consciously accept Party A's inspection, supervision and management of the loan payment hereunder, and timely and completely provide the records and materials of the use of the loan funds as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Party B shall strictly abide by the financial indicators promised by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Without Party A's consent, Party B shall not repay the loan in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. Party B shall obtain the consent of Party A before implementing such matters as division, transformation, merger, termination, joint venture, equity transfer, foreign investment and substantial increase of debt financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viii. Party B shall actively cooperate with and consciously accept Party A's inspection and supervision of its production and operation, finance and use of loans hereunder, and shall provide relevant financial and accounting information and production and operation information as required by Party A, including but not limited to: If Party B is a listed company or an unlisted public company, it shall provide Party A with the balance sheet, profit and loss statement, cash flow statement and other financial information within 10 working days from the date of information disclosure as required by relevant regulatory regulations;If Party B is any entity other than the foregoing, it shall, within the first 10 working days of the first month of each quarter, provide Party A with the balance sheet at the end of the previous quarter, the income statement (the income and expenditure statement for the public institution) and the cash flow statement at the end of each year.Meanwhile, Party B shall timely provide the financial statements audited by the audit institution approved by Party A every year and shall be responsible for the authenticity, legality, integrity and validity of the materials provided by Party A.

Party B undertakes that all financial and accounting materials provided by it conform to Chinese laws and regulations and truthfully, completely and fairly reflect its financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. Party B shall perform the following notification obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B shall notify Party A in writing within 3 days after the occurrence or potential occurrence of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Deterioration of the operating financial condition of Party B or any guarantor, which affects or may affect its debt repayment ability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B or any guarantor is involved or may be involved in litigation or arbitration proceedings or other legal disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party B's name, legal representative (responsible person), domicile and contact telephone number are changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Directors, senior managers and actual controllers of Party B or any guarantor are involved in major cases or economic disputes or cannot be contacted or interviewed;

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Other matters affecting or likely to affect Party B's solvency occur to Party B or any guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Party B shall notify Party A in writing 30 days prior to the occurrence or potential occurrence of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Division, transformation, merger, termination, joint venture, equity transfer, foreign investment, substantial increase of debt financing, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Change of business scope and registered capital of Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The top five shareholders and actual controllers of Party B's capital contribution or share holding have changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B changes the debt terms with other financial institutions or other interest-bearing financing, pays off long-term debts in advance, and pays back large amounts owed to shareholders or investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party B is unable to pay the debts due, carry out debt restructuring, enter or will enter into closure, rectify, liquidation, bankruptcy, dissolution or similar legal procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) In case of the above events, Party B shall properly carry out the debt repayment hereunder and shall be obliged to provide other guarantees approved by Party A as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. Party B knows and agrees that if Party B uses Party A's online banking, mobile banking and other electronic channels to conduct business, it shall be deemed to have accepted the relevant business rules of Party A's electronic channels and shall undertake to comply with the relevant business rules of Party A.otherwise, Party B shall be deemed to have breached the contract and Party A shall have the right to take relevant measures as agreed herein.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xi. Party B knows and agrees to strengthen the management of environmental and social risks. Party A has the right to supervise the management of Party B's environmental and social risks and serve as an important basis for the allocation of financing funds. If required by Party A, Party B shall submit an environmental and social risk management report, otherwise Party B will be deemed to have breached the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xii. Party B shall not refuse to perform its obligations hereunder on the grounds of disputes with any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xiii. Other rights and obligations enjoyed and undertaken in accordance with laws, regulations, rules and other provisions and provisions of this Contract.

**Article 15 Rights and Obligations of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Subject to the conditions set forth herein, Party A shall issue the loan to Party B in accordance with the provisions hereof, except for the delay not caused by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party A has the right to withdraw all or part of the principal and interest of the loan in accordance with this Contract or in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party A shall have the right to inspect and supervise Party B's production, operation and financial conditions, and to obtain Party B's plan statistics, financial and accounting statements and other relevant materials. Party A's inspection and supervision may be conducted in a combination of regular and irregular, on-site and off-site manner.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party A shall have the right to participate in Party B's financing, asset sale, merger, division, joint-stock transformation, bankruptcy liquidation and other activities, and Party B shall actively cooperate and consciously assist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. If Party B owes Party A several debts (including but not limited to the debts hereunder), and Party B's payment is insufficient to pay off all the debts, Party A shall decide the debts to be paid by Party B, and Party B is aware of and agrees with this.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Other rights and obligations to be enjoyed and undertaken in accordance with laws, regulations, rules and other provisions and provisions of this Contract.

**★★Article 16 Handling of breach of contract and events affecting the security of Party A's creditor's rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Any of the following circumstances shall constitute Party B's breach under this Contract or affect the security of Party A's creditor's rights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) If Party B fails to use the loan according to the purpose agreed herein, it misappropriates the funds or uses the funds to engage in illegal or illegal transactions;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Party B fails to pay the loan funds in the manner agreed herein or avoids the entrusted payment in any form;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) Party B fails to pay off any financing principal, interest (including penalty interest and compound interest), expenses or other funds as agreed herein;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IV) If Party B breaches the financial targets (if any) agreed herein, Party A believes that the security of its creditor's rights will be affected;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) Party B refuses to accept or cooperate with Party A's supervision and inspection of the use of the borrowed funds and relevant business financial activities;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VI) Party B fails to obtain the consent of Party A before implementing such matters as division, transformation, merger, termination, joint venture, equity transfer, foreign investment and substantial increase of debt financing;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Party B breaches any representations, warranties and commitments hereunder, or breaches other obligations hereunder;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VIII) Party B provides false materials with no real trade or transaction background or conceals business financial facts;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IX) Party B or the guarantor evades debts through affiliated transactions or other means, or has any bad credit record;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x) Party B uses any false contract or arrangement with any third party to extract funds or credit from Party A or other banks, including but not limited to bank discount or pledge of bills receivable and accounts receivable with no real trade background;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XI) Failure of Party B, the guarantor or its affiliates to perform debts with Party A or institutions at all levels of Bank of Nanjing Co., LTD., or any other third party;**

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XII) If the guarantor under this Contract violates laws, regulations, rules and other provisions or the agreement of the guarantee contract, or the guarantee is not effective, invalid, revoked or terminated, or the guarantor or the pledge is not in favor of the creditor's rights of Party A (including but not limited to significantly reduced value, loss, ownership dispute, transfer, sealing, seizure, freezing or disposal), Or the guarantor refuses to perform its security obligations;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIII) The transfer of assets by Party B, the guarantor or its affiliates or its legal representative, management or actual controller, which Party A deems to affect the security of its creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIV) Party B, the guarantor or its affiliates or its legal representatives, management and actual controllers have or may be involved in litigation or arbitration cases, or have been or may be subject to any form of punishment or compulsory measures by administrative, law enforcement or judicial authorities;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XV) Party B or any guarantor shall stop paying the debts due or admit the inability to pay the debts due, or carry out restructuring negotiations on the debts owed by Party B;Party B or the Guarantor is closed for rectification, dissolution, bankruptcy or other events or negative information to the detriment of Party B or the Guarantor;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVI) Party B or the legal representative or actual controller of the guarantor cannot contact or make an appointment;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVII) If the next notice under this contract actually occurs, Party A believes that it will affect the security of its creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVIII) The security of Party A's creditor's rights may be affected if Party B fails to take effective countermeasures due to changes in national credit policies and market environment that are unfavorable to Party A's creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIX) Other matters in violation of laws, regulations, rules and other provisions or provisions of this Contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. If Party B has any of the above breach events or any of the events affecting the security of Party A's debt, Party A shall have the right to exercise one or more of the following rights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) Require Party B or the guarantor to correct the breach within a time limit;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Require Party B to immediately make up 100% of the financing amount issued hereunder/pay the security deposit;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) Party B shall be required to provide other guarantees recognized by Party A;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IV) Change the loan payment method or stop the loan fund payment approved by Party B;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) Declare the creditor's rights under this contract to be due in advance, and require the guarantor to perform the guarantee responsibility or exercise the right of mortgage or pledge or direct deposit to pay off debts or exercise other guarantee rights;**

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VI) The funds of Party B in the accounts opened by Party A or the Bank of Nanjing Co., Ltd. at all levels (including but not limited to margin account, current account, time account, national debt account, etc.) are withheld for the right of debt repayment. Party B shall bear the losses of interest, service charges, exchange and other losses arising from the withholding and the collection items are foreign currencies. The repayment amount shall be converted into RMB according to Party A's system listed exchange rate on the collection date;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Require Party B to assume the liability for breach of contract and compensate Party A for any losses and expenses incurred thereby and expenses incurred by Party A to realize the creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VIII) to adopt measures for preservation;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIV) Exercising other rights that can be exercised by laws, regulations, rules and provisions of this Contract.**

**Article 17 Application of laws and dispute settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. This Contract is concluded in accordance with the laws of the People's Republic of China and shall be governed by the laws of the People's Republic of China.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. Any dispute arising out of or in connection with this Contract may be settled through negotiation.If no agreement can be reached through negotiation, it shall be settled in the <u>first</u> way of the following :**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) File a lawsuit with the people's court having jurisdiction in the place where Party A is domicile.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) shall be submitted to <u>/</u> Arbitration Commission (place of arbitration: <u>/</u>) for arbitration in accordance with the Commission's arbitration rules in effect at the time of applying for arbitration.The arbitration shall be final and binding upon both parties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. If the parties have agreed otherwise on the litigation jurisdiction, it shall be separately agreed in "Other Agreed Matters" hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. During the litigation or arbitration period, the provisions of this Contract that do not involve disputes shall still be performed.

**Article 18 Effectiveness, alteration and termination of the Contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Both parties agree that Party A shall sign this Contract in the form of electronic signature or physical seal, and Party B shall sign this Contract in the form of physical seal.Party A's electronic signature and physical seal shall have the same legal effect. **Party B recognizes the validity and evidential effect of the relevant data messages (including but not limited to the electronic contracts generated and recorded by Party A's system) generated by Party A's electronic signature and signed by Party A in this Contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party A signs this Contract by electronic signature, this Contract shall come into force on the date when Party A's electronic signature is printed on this Contract and Party B's legal representative (responsible person) or authorized agent signs or affixes the name seal and affixes the official seal or special contract seal of Party B. **Party B may log in to Party A's official website (www.njcb.com.cn) and other channels confirmed and published by Party A to verify the relevant information of this Contract.If Party B has any questions, it may consult Party A's business outlets or call Party A's customer service hotline: 95302;**If Party A signs this Contract with a physical seal, this Contract shall come into force on the date when Party A's legal representative (responsible person) or authorized agent signs or seals and affixing Party A's official seal or special contract seal, and Party B's legal representative (responsible person) or authorized agent signs or affixing its official seal and affixing Party B's official seal or special contract seal.

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. After this Contract comes into force, neither party shall modify or terminate this Contract unless otherwise agreed herein. If such modification or termination is necessary, both parties shall reach a written agreement through consultation.The terms of this contract shall remain valid until a written agreement is reached.

**Article 19 Notice and Service**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. The address, email address, telephone number, legal representative (responsible person) or authorized agent specified by Party B on the signature page shall serve Party B's documents:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. Party B agrees that all notices, correspondence, agreements, materials and other documents sent by Party A to Party B hereunder shall be deemed to have been delivered by personal delivery, post, express delivery, fax, telephone, SMS or email in accordance with the service information mentioned in the preceding paragraph.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iii. After disputes arising from Party B's business go through the procedures of third-party mediation, arbitration or court, the relevant legal documents sent by the third-party mediation agency or court or arbitration agency shall be deemed to have been served by personal delivery, post or express delivery in accordance with the aforementioned service information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iv. Party B shall, within three days, notify Party A, the People's Court or arbitration institution or a third party mediation institution in writing of any change in the information delivered by any of the documents.Until Party A, the people's court or the arbitration institution or the third party mediation institution receives the written notice of change, the documents served in accordance with the information mentioned in Paragraph 1 of this Article shall be deemed to have been effectively served.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. In case of any discrepancy between the service information provided herein and the separately signed "Confirmation of Service Address", the separately signed "Confirmation of Service Address" shall prevail.

**Article 20 Other agreed matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. All annexes and legal documents related to the performance of this Contract are integral parts of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party B voluntarily accepts and agrees that the loan hereunder is issued by Party A or any institution of Bank of Nanjing Co., LTD., Party A shall be deemed to have performed the loan issuance obligation hereunder and Party B shall have no objection to this.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party A's rights under this Contract shall not exclude or limit Party A's other rights under laws or other contracts.No non-exercise, partial exercise or delay in the exercise of any right by Party A shall constitute a waiver or partial waiver of such right, unless stated in writing by Party A.

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4. Iv. <u>/</u> 

**Article 21 Supplementary Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. This Contract is made in duplicate, with one held by Party A and one held by Party B. If this contract is guaranteed, the registration and recording department shall hold <u>/</u> copy and each copy shall have the same legal effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Matters not covered herein shall be handled in accordance with relevant national laws, regulations and rules.

(The following text is left blank)

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**(There is no text in this page, which is the signing page of the Renminbi Working Capital Loan Contract numbered :<u>Ba154202207060015</u>)**

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| &nbsp;&nbsp;**Party A** | &nbsp;&nbsp;**Party A** |
| &nbsp;&nbsp; Party A: **Bank of Nanjing Co., LTD., <u>Wuxi Branch</u>**<br> (Seal)<br>Date of signing: July 6，2022 | &nbsp;&nbsp; Legal Representative (responsible person) (signature and seal) :<br> (or authorized agent) :<br>Address:<br> Postal Code:<br> Contact Number: |
| &nbsp;&nbsp;**Party B is a legal or unlegal organization** | &nbsp;&nbsp;**Party B is a legal or unlegal organization** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Party B has read all the terms of this Contract, especially the contents in bold, underlined and marked with special symbols.At the request of Party B, Party A has made corresponding clauses in this Contract.Party B has fully known, fully understood and voluntarily accepted the meaning of this contract and the corresponding legal consequences.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Party B has read all the terms of this Contract, especially the contents in bold, underlined and marked with special symbols.At the request of Party B, Party A has made corresponding clauses in this Contract.Party B has fully known, fully understood and voluntarily accepted the meaning of this contract and the corresponding legal consequences.** |
| &nbsp;&nbsp; Party B's name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u><br> (Seal)<br>Date of signing: July 18, 2022 | &nbsp;&nbsp; Legal Representative (responsible person) (signature and seal) :<br> (or authorized agent) :<br>Address of delivery:A3-1208,Tian An Intelligent Park, 228 Linghu Ave,Xinwu<br> District , Wuxi City , China<br> Zip code: 214000<br> Contact number: 18306180110<br> Email Address: |

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| ![](ex10-8_001.jpg) | Contract No.： Ba154202207060015 |

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**Attachment:**

**Application for withdrawal**

Bank of Nanjing Co., LTD. <u>Wuxi Branch:</u>

According to the RMB Working Capital Loan Contract (hereinafter referred to as the "Loan Contract") signed by our company and your bank numbered <u>Ba154202207060015</u>, we hereby submit an irrevocable withdrawal application to your bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The amount of withdrawal applied for this time is <u>three million yuan only</u> (in words), and the date of application for withdrawal is <u>July 18, 2022</u>.If the withdrawal is the first withdrawal under the loan contract, the start date of the loan period stipulated in the loan contract is inconsistent with the loan promissory note, the actual loan date in the loan promissory note at the time of the first loan shall prevail, and the loan maturity date stipulated in the loan contract shall be adjusted accordingly.If the draw-down is the second or subsequent draw-down under the Loan contract, the starting date of the loan period shall be the actual draw-down date set forth in the Loan IOU at the time of the loan, and the maturity date shall be no later than the maturity date determined at the time of the first loan and the loan IOU shall be the record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Our company understands and recognizes that your bank has the right to approve the application of our company, and your bank's payment of funds to the special account for loan issuance as agreed in the contract shall be the performance of the loan contract and this application for withdrawal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Our company confirms that all loan funds will be used for the purposes mentioned in the loan contract, and promises to perform all obligations in accordance with the loan contract, and ensure that the principal and interest will be paid in full on time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Our unit confirms that the promises and statements in the loan contract are still true and effective on the date of this application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Our company confirms that there is no event of default on the date of submission of this application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The terms and conditions of the loan contract shall be included in and form an integral part of this withdrawal application.

Hereby request.

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| |
|:---|
| Borrower (Seal) : Jiangsu HUHU Electromenchanical Technology Co.,Ltd. |
| Legal representative or authorized agent (signature) : |
| <u>July 18, 2022</u> |

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## Exhibit 10.9

**Exhibit 10.9**

**Online Working Capital Loan Master Agreement**

Standard clause

(Version 2021011 / e-Channel Version)

Code Number: <u>07800LK22BHA16M</u>

Please refer to the subsidiary terms for the name of lender and borrower

In accordance with the relevant laws, regulations and rules of the state, the borrower and the lender hereby enter into this agreement through consultation and abide by it.The online mobile loan referred to as "online upstream loan" in this Agreement refers to the business whereby the lender and the borrower sign a general loan agreement, and within the effective use stipulated in the agreement, the borrower can apply for loan through the lender's online banking and other electronic channels in a self-service way.

Article 1 Credit Matters

1.1 The borrower initiates the loan application through the lender's online banking and other electronic channels, and the lender agrees to grant the loan to the borrower based on the borrower's application after examination.

1.2 The amount,purpose,starting date,maturity date,interest rate,adjustment method of interest rate and repayment method of the liquidity loans under this Agreement shall be subject to the records in the IOU issued by the loan borrower through online banking and other electronic channels,and the borrower has no objection to this.The IOU is an integral part of this agreement.

1.3The loan provided under this Agreement working capital loan.Without the written consent of the lender,the borrower shall not change the purpose of the loan defined in the IOU.

1.4 The starting date of interest for each working capital loan here under shall be within the validity period of this agreement.

1.5 During the performance of the agreement,if a certain interest date or maturity date is a non-banking working day,it shall be transferred to the next banking working day.

1.6 Interest rate and adjustment method

1.6.1 The interest rate of RMB loan shall be based on the quoted loan market interest rate (LPR), and the annual interest rate shall be determined according to the following formula: daily interest rate = annual interest rate /360.The specific loan interest rate is subject to the loan record at the time of issuance of each loan.The interest rate and interest-bearing rules for foreign currency loans are subject to the loan records and the relevant supplementary agreements (if any) at the time of the issuance of each loan.

1.6.2 Loan interest is calculated on the actual days of the loan from the date the loan is transferred into the account designated by the borrower.

1.6.3 If the market quoted Loan interest rate (LPR) is adjusted and applied to the loan hereunder prior to the issuance of the Loan, the new market quoted Loan Interest rate (LPR) shall be applied and the new loan interest rate shall be redetermined and executed according to the basis points plus or minus as stipulated in Article 1,6.1 of this Agreement.

1.6.4 After the loan is issued, if the market quoted loan interest rate (LPR) is adjusted and applied to the loan hereunder, the loan interest rate shall be adjusted according to the corresponding IOU.The specific sample is as follows:

(1) Adjustment on January 1 next year: As of January 1 of the following year on the date of each adjustment of the market quoted rate (LPR), according to the adjusted market quoted rate (LPR)(if the LPR has been adjusted twice or more times in a calendar year), Determine and implement the new loan interest rate based on the last loan market quoted interest rate (LPR) adjusted within the calendar year) and the corresponding plus or minus basis points；

(2) Adjusted by month, quarter, half year, year: Adjust by month/quarter/half year/year, namely the corresponding day of each month/quarter/half year/year (if there is no corresponding day, it is the last day of the month/quarter/half year/year), and according to the loan market quoted interest rate (LPR) at the time of such adjustment (if the loan market quoted interest rate (LPR) has been adjusted twice or more within the period agreed in this paragraph, To determine and implement the new loan interest rate based on the last adjusted loan market quoted rate (LPR) during the period and the corresponding plus or minus basis points；(" Month, quarter, half year, year "in this paragraph is collectively referred to as "Period")

(3) Fixed interest rate；Continue to carry out the original interest rate recorded in the corresponding borrowing record, and do not calculate the interest in sections；

(4) Immediate adjustment: starting from the day of the adjustment of the Market quoted Rate of Loan (LPR), the new loan interest rate shall be determined according to the adjusted market quoted rate of Loan (LPR) and the corresponding number of points of addition or subtraction, and the new loan interest rate shall be implemented on the same day.

1.6.5 The lender may adjust the loan interest rate at its own time according to changes in external market interest rates and actual business needs.

1.7 Repayment method.The principal and interest repayment method adopted in this contract shall be subject to the corresponding IOU, and the details are as follows:

(1) Repayment with the same amount of principal and interest as scheduled

① If the repayment date of each installment is the corresponding date of the entire period from the date of loan issuance (if there is no corresponding date, the repayment date shall be the last day of the month).From the month when the loan is issued, the principal and interest of the loan shall be repaid with the same amount for each term. The calculation formula is:

the amount of the same amount for each term=the loan principal balance × the term interest rate ×(1+ the loan period interest rate) <sup>the number of repayment periods</sup> ÷[(1+ the loan period interest rate) <sup>the number of repayment periods</sup> -1]

② If the repayment date of each period is not the corresponding date of the whole period starting from the loan issuance date, the calculation formula of the principal and interest amount of the other periods except the first and last is the same as above. The calculation formula of the principal and interest amount of the first and last periods is as follows:

First repayment principal =the loan principal balance × the term interest rate ×(1+ the loan period interest rate) the number of repayment periods ÷[(1+ the loan period interest rate) the number of repayment periods -1]- loan principal balance × term interest rate

First payment interest= loan principal balance x actual days of the first payment x daily interest rate

First payment principal and interest = first payment principal + first payment interest

Final payment principal= the principal balance of the loan

Final loan repayment interest = principal balance of the loan x actual days of the final term x daily interest rate

Final loan repayment principal and interest = final loan repayment principal + final loan repayment interest

(2) Use the same amount of principal repayment

① If the repayment date of each period is the corresponding purpose of the whole period from the loan issuance date (if there is no corresponding date, the repayment date is the last day of the final month).Starting from the month when the loan is issued, the loan principal shall be repaid in equal amount each period, and the loan interest shall be reversed with the principal period by period.The calculation formula is:

First payment principal = loan principal/total loan repayment maturity

Principal repayments per installment = principal of loan/total repayments

Interest on each loan repayment = (loan principal - accumulated principal repaid) \* daily interest rate

Principal and interest amount per loan repayment = principal per loan repayment + interest per loan repayment

② If the repayment date of each period is not the corresponding date of the whole period starting from the loan issuance date, the calculation formula of the principal and interest amount of the remaining periods except the first and last two periods is the same as above. The principal and interest amount of the first and final loan repayment is calculated as follows:

First payment principal = loan principal/total loan repayment maturity

First payment interest = loan principal balance X actual days of the first payment \*daily interest rate

Principal and interest amount of first loan repayment = principal of first loan repayment + interest of first loan repayment

Final repayment principal = loan principal balance

The repayment interest of the end =Loan principal balance \* actual days at the end \* interest rate

Final loan repayment principal and interest = final loan repayment principal + final loan repayment interest

(3) If the loan principal is repaid by installments on a monthly, quarterly, half-year, annual basis, expiry date for interest is the 20th day of the end of each month, the end of the quarter, the end of the half-year, the end of the month, the Coupon Payment is the calendar day next to the interest date, and the loan principal is repaid by installments. The number of repayment periods of the loan principal, the amount of each repayment and the date of repayment are subject to the attachment to the IOU；

(4) If the interest is settled by month, quarter, half year, and the principal and interest are repaid at maturity, the interest date is the 20th day of each month, the end of the quarter, the end of the half year, the end of the year, the payment date is the calendar day next to the interest date, and the principal and interest are repaid at the maturity of the loan；

(5) When the loan is due, the principal and interest will be repaid in one lump sum, and the interest will be cleared with the principal.

1.8 Withdrawal conditions

Unless waived in whole or in part by the Lender, the Borrower shall meet the following conditions before each withdrawal, otherwise the Lender has the right to reject the Borrower's withdrawal application:

1.8.1 The Borrower principal shall continue to be legal and valid and shall continue to comply with its commitments hereunder；

1.8.2 This Agreement has come into force and the Security Agreement hereunder is legally established and effective；

1.8.3 Has fully performed its obligations hereunder without any breach of contract as agreed herein；

1.8.4 Other relevant materials for loan application have been provided as required by the lender.

1.9 Loan fund payment

1.9.1 The payment method of the loan funds hereunder includes the following two payment methods；

(1) Entrusted payment by the Lender, that is, the lender pays the loan through the borrower's account to the borrower's transaction object conforming to the agreed purposes according to the borrower's withdrawal application and payment authorization:

(2) Independent payment by the Borrower, that is, after the lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower makes independent payment to the Borrower's transaction object conforming to the purpose agreed herein； The Lender may independently determine the payment method of the Loan hereunder based on the relevant information provided by the Borrower and relevant laws and regulations as well as the Lender's policies.

1.9.2 The Borrower agrees that in the case of entrusted payment, the Lender shall first transfer the loan into the Borrower's account, and then directly transfer the loan from the Borrower's account into the Borrower's transaction object's account.

During the stay of the loan funds in the Borrower's account, the borrower shall not withdraw the loan funds, and during this period, if the funds are taken strong measures including but not limited to freezing, deduction, etc., the Borrower shall bear the responsibility for repayment, which has nothing to do with the lender.

1.9.3 Regardless of the entrusted payment by the Lender or the independent payment by the Borrower, once the loan funds are transferred into the Borrower's account according to the application or authorization of the Borrower, the Borrower shall be deemed to have successfully drawn the loan under this Agreement, the Lender has fulfilled its lending obligations, and the Borrower shall repay the loan according to the loan Agreement.

1.9.4 In the case of entrusted payment by the lender, the borrower shall, as required by the lender, provide relevant business agreements and other supporting materials related to the purpose of the loan, the letter of authorization for payment and other materials, and the lender shall perform the loan obligation after superficial examination and approval； otherwise, the Lender shall have the right to refuse the loan.

Where the borrower makes the payment independently, the borrower shall report the payment of the loan funds as required by the lender every three months after the loan is made, provide the records and materials of the use of the loan funds that meet the requirements of the lender, and provide the lender with relevant account information, payment vouchers and other materials for the lender's inspection.Otherwise, the Lender is entitled to exercise any one or more of the Lender's rights set forth in Article 2.3 of this Agreement.

1.9.5 In the case of autonomous payment, the Lender agrees that the Borrower may, at its own option, withdraw the loan at the Lender's counter, use online banking (if applicable) or in any other manner agreed by the Lender.The Borrower agrees to draw the loan in accordance with the relevant provisions of the Lender and to confirm the loan handled over the counter, online or in any other manner agreed by the Lender.

1.10 Fund Collection account: The Borrower shall open a special account for fund collection at the lender or a branch of Bank of Ningbo, and timely provide the lender with the information of the flow of funds in and out of the account. The specific fund collection account is the same as the repayment account.The lender has the right to recover the loan in advance according to the borrower's capital recovery situation.

1.11 Repayment Account: The Borrower shall open a repayment account with the Lender or any branch of Bank of Ningbo, deposit in full the amount of the repayment of the principal and interest into the repayment account before the date of each repayment of the principal and interest, and authorize the Lender to deduct the amount from the repayment account. The specific repayment account shall be the repayment account listed in the loan memorandum.If the borrower has outstanding principal and interest or other expenses of the loan, it shall promptly deposit them into the repayment account and authorize the lender to deduct them at any time.If the quoted interest rate of the loan market (LPR) changes, the borrower shall timely and fully deposit the principal and interest payment, otherwise all consequences caused by this, including but not limited to additional penalty interest and adverse impact on the Borrower's credit record, shall be borne by the Borrower and have nothing to do with the lender.If the repayment account is reported as loss, frozen, stopped payment or settled, or the borrower needs to change the repayment account, the borrower shall go through the procedures of changing the repayment account at the lender.Before the change procedures take effect, If the borrower fails to handle the change procedures of the repayment account in time or fails to handle the repayment at the counter in time and fails to pay off the principal and interest of the due loan and other expenses in time, the borrower shall bear the liability for breach of contract.

1.12 For purposes of this Agreement, "Period" means month or an integral multiple of month, and the corresponding "Period rate" shall be an integral multiple of annual interest rate /12× month.The "end month" is March, June, September or December；"Half-year end month" means June or December；"Year end month" means December.

1.13 After the signing of this Agreement between the Lender and the Borrower, there is no need to sign the working capital loan agreement in each case when handling the online floating loan business.

Article 2 Rights and Obligations of the lender

2.1 The Lender has the right to recover or withdraw in advance the loan principal, interest, compound interest, penalty interest and other claims in accordance with this Agreement and the relevant loan ownership agreement.

2.2 The Lender shall have the right to know the borrower's production and operation, financial activities, material inventory and loan use, check the use and management of collateral at any time, require the borrower to provide true and complete financial statements and other documents, materials and information on a monthly basis, and shall have the right to use the Bank's credit investigation system or other institutions and systems in accordance with relevant regulations. Query, print, save, and use the borrower's basic information and credit report.

2.3 During the term of this Agreement, if any of the following occurs to the Borrower or its affiliates or actual controller, the Lender shall have the right to hold that all the credit granted by the Borrower to the Lender, including but not limited to loan, discount, acceptance of bank acceptance, international trade financing, bank guarantee, etc., are due in advance. And has the right to

(1) terminate the relevant agreements and agreements signed with the Borrower in advance, including but not limited to this Agreement；

(2) stop the issuance of new loans, declare the loans under this Agreement to expire in advance, and recover all loan principal, interest and fees in advance；

(3) Directly deduct the corresponding amount from any account of the Borrower to repay the principal, interest and fees of the loan and notify the borrower；

(4) Other security measures that require additional approval by the lender；

(5) bring a suit to the people's court, and take such measures as sealing up, freezing and withholding of assets；

(6) Other asset preservation measures.At the same time, all branches of Bank of Ningbo also enjoy the above rights to the borrower.

(1) The borrower has ceased production, closed down its business, been dissolved, been taken over, cancelled its registration, may be sued for bankruptcy, has been shut down for whole collection, has had its business license revoked or has been revoked；

(2) The Borrower conceals material facts related to the conclusion of this Agreement or provides false information, circumstances, statements or information containing false information: or provides false statements, vouchers, documents and other materials to the Lender during the term of this Agreement；

(3) The borrower fails to repay the principal and interest of the loan in accordance with this Agreement and the corresponding promissory note (including the situation where the loan is due early or has been repaid after the loan is overdue；

(4) The borrower fails to use the loan in accordance with the purposes agreed in this Agreement and the corresponding loan promissory notes；

(5) The Borrower fails to perform the obligations agreed with the lender or a third party or the obligations prescribed by laws and regulations；

(6) Disposal (including but not limited to gift, transfer, assignment or sale at a low price) of any asset by the Borrower prior to the repayment of the Lender's debt which may or has affected its ability to repay the Lender；

(7) The Borrower's credit status declines, its business activities become difficult, its financial status deteriorates, or it breaks the constraints of the financial indicators set by the Lender or agreed by the parties；

(8) The borrower fails to pay the loan funds in the agreed manner；

(9) The borrower is involved in economic disputes or lawsuits, or any of its assets are sealed up, frozen or deducted by other preservation measures；

(10) The borrower is prosecuted, fined or fined for suspected illegal crimes, or the legal representative or main responsible person of the borrower is detained, arrested, taken coercive measures, prosecuted, sentenced or fined or fined for suspected crimes；

(11) The Borrower fails to perform any of its obligations under this Agreement and the corresponding loan note or breaches any terms and commitments under this Agreement and the corresponding loan note；

(12) The security agreement under this Agreement is invalid, the guarantor's guarantee ability is reduced, the value of the secured property is decreased, and the secured property is sealed, frozen or deducted by security measures which affect the security of the creditor's rights under this Agreement；

(13) The guarantor violates the guarantee agreement；

(14) Events listed in Item (1), (5), (7), (9) and (10) of this paragraph occur to the related party or the actual controller of the Borrower or other changes that are not conducive to the realization of the creditor's right of the Lender, and the Borrower fails to provide another guarantee approved by the lender as required by the Lender, (For the definition of related party, see Accounting Standard for Business Enterprises No. 36 -- Related Party Disclosure and its revised version.) For the definition of actual controller, see Company Law of the People's Republic of China and its revised version.

(15) Other than the above events, any other events which, in the judgment of the Lender, adversely affect the Borrower's performance of the repayment obligations hereunder.The Lender has complete and independent discretion as to whether such circumstances occur.

2.4 In the process of loan payment, if the Lender, in its independent judgment, considers that the Borrower has one or more of the following circumstances, the Lender has the right to (1) change the loan payment method from autonomous payment to entrusted payment (including partial entrusted payment)；(2) to stop the issuance and payment of loan funds；(3) Negotiate with the borrower the terms of issuance and payment of supplementary loans.

(1) Declining credit status of the borrower；

(2) The borrower's main business profitability is not strong；

(3) Abnormal use of loan funds by the borrower；

2.5 Where the Borrower fails to repay the loan principal, interest, compound interest, penalty interest and other debts due (including those due in advance) as agreed, the Lender shall have the right to deduct the corresponding amount from all the accounts opened by the Borrower in Bank of Ningbo Co., Ltd. and any of its branches for cancellation and notify the Borrower.If the lender withdraws all the time deposits due at the end of the term of the borrower in advance, the interest shall be calculated according to the interest rate of the live deposit announced on the date of withdrawal. If the part of the time deposit needs to be withdrawn in advance, the interest shall be calculated according to the interest rate of the current deposit announced on the date of withdrawal, and the interest shall be calculated according to the interest rate of the time deposit on the date of opening of the account when the remaining part matures.The borrower shall bear the interest loss arising from the deduction.The Borrower hereby authorizes the Lender not to expunge such amount at any time.

2.6 Where the Borrower defaults under this agreement, or evades the supervision of the Lender, or conceals important facts related to this Agreement or provides false materials and information or other illegal acts, the Lender shall have the right to provide relevant information to the collection agency for collection purposes or to notify the relevant departments or units.The Borrower shall not excitably authorize the lender to provide the borrower's name, contact information and other relevant information to the collection agency for the purpose of collection. The collection agency shall have the obligation to keep the borrower's information confidential and shall not use the Borrower's information beyond the purpose of collection.Meanwhile, the Lender has the right to hold the Borrower liable for breach of contract in accordance with laws, regulations and provisions of this Agreement.

2.7 The Lender has the right to participate in the borrower's large amount financing, asset sale, merger, division, joint-stock reform, bankruptcy liquidation and other activities.

2.8 The borrower and the mortgagor shall, according to the requirements of the lender, complete the registration of the mortgagor and property insurance and other legal procedures in accordance with the law, and the guarantee and insurance shall remain valid. The Lender shall have the right to be the first in line to claim the insurance benefits and obtain copies of the relevant insurance agreements or insurance documents.Otherwise, the Lender has the right to refuse to provide the loan hereunder.

2.9 The Lender shall have the right to require the Borrower to conduct timely loan reconciliation.

2.10 Subject to the performance by the Borrower and the guarantor of their obligations under this Agreement and the Security Agreement, the Lender shall grant the loan to the Borrower in accordance with this Agreement and the corresponding ious.The Lender has the right to entrust the Head Office of Bank of Ningbo and its other branches, any paying bank or agent Bank of Bank of Ningbo to extend the loan to the Borrower in accordance with the provisions of this Agreement, and the Borrower has no objection to this and warrants that the performance of this Agreement by the Head Office of Bank of Ningbo and its other branches, paying bank or agent Bank shall be deemed to be the performance of the Lender. All payment obligations under this Agreement shall be performed by the Borrower to the Lender and all rights shall be vested in the Lender.If the borrower defaults, the lender shall have the right to claim the creditor's rights directly against the borrower.

2.11 The guarantor of the Loan hereunder shall have any event that threatens its normal operations or materially adversely affects its ability to secure the corresponding debt hereunder, Including but not limited to suspension of production, closure of business, cancellation of registration, revocation of business license, bankruptcy, difficulties in business activities, deterioration of financial condition, suspected illegal activities of legal representative or main person in charge, litigation activities or major economic disputes, assets being sealed up, frozen or deducted and other asset preservation measures, etc. Or if the value of the collateral, pledge or pledge right used as the loan guarantee hereunder is reduced or the asset preservation measures such as sealing, freezing or deduction are taken, and the Borrower fails to provide additional security as required by the Lender, the Lender shall also have the right to take all the measures set forth in Article 2.3 hereof.

Article 3 Commitment and Authorization of the Borrower

3.1 Provide the lender with true, complete and effective materials；

3.2 Cooperate with the lender in loan payment management, post-loan management and relevant inspection；

3.3 Not to use the loan funds for fixed assets, equity and other investments, and not to use the loan funds for fields and purposes prohibited by the state to produce and operate；Not to evade the lender's entrusted payment by breaking up the whole into pieces；

3.4 The Borrower undertakes to fully perform all its obligations under this Agreement.

3.5 The Borrower agrees and authorize（irrevocable） the Lender (including any branch of the Lender) to use the financial credit information basic database, credit information service platform of inclusive finance and other credit information service platforms established by national or local governments in accordance with the law when reviewing the Borrower's application for credit granting and post-delivery risk management of the credit granting business. Or inquire, print, use and save the basic financial information and credit information of the unit through various risk information sharing systems, various risk early warning systems, water and electricity use information base and other legally established credit information databases or credit investigation agencies: Meanwhile, the Borrower agrees and irrevocably authorizes the Lender to provide the Borrower's basic financial information and credit information to the aforementioned platform, system, information database or institution in accordance with the law for the purpose of meeting regulatory submission requirements.Regardless of whether the business under this Agreement is approved or not, the Borrower agrees that the Lender shall retain the Borrower's credit report and other materials, and the Lender shall ensure that the aforementioned query information is used to the extent authorized.

Article 4 Rights and Obligations of the borrower

4.1 The right to obtain and use the loan in accordance with this Agreement and the corresponding IOU.

4.2 Repay the loan principal, interest, compound interest, penalty interest, legal costs, preservation costs, enforcement costs, attorney's fees, travel expenses and other reasonable expenses in accordance with this Agreement and the corresponding ious, and the authorized Lender is irrevocably entitled to deduct such expenses in accordance with Article 2.5 hereof.

4.3 The loan shall be used in accordance with the purpose specified in this Agreement without usurping or misappropriating the loan.

4.4 Provide the Lender with true and complete financial statements or other relevant materials and information on a monthly basis, and actively cooperate with the Lender in the inspection of its production and operation, financial status, material inventory and the use of the loan hereunder.

4.5 Before the debt repayment under this Agreement is complete, the Borrower shall take such measures as contracting, leasing, joint-stock transformation, association, merger, merger, division, joint venture, capital reduction, asset transfer, foreign investment, substantial increase in debt financing, application for suspension of business for rectification, application for dissolution, application for bankruptcy or other changes in the creditor's debt relationship that may cause this Agreement or affect the realization of the Lender's loan claims Shall notify the lender in writing 30 days prior to the implementation of the above actions, and at the same time fulfill the obligation to pay off the debts or pay off the debts in advance, and obtain the written consent of the lender； otherwise, the above actions shall not be taken.

4.6 The Borrower shall notify the Lender in writing within 3 days after the occurrence of any other event other than the above which threatens its normal operations or has a material adverse impact on the performance of the repayment obligations hereunder, including but not limited to any of the circumstances set forth in Article 2.3 hereof, and implement the repayment measures.

4.7 If the Borrower provides a guarantee for the debts of others or sets a mortgage or pledge guarantee with its main property to a third party before the completion of the debts under this Agreement, which may affect its ability to repay the debts under this Agreement, it shall notify the Lender in writing in advance and obtain the written consent of the Lender.

4.8 The Borrower shall not withdraw or transfer funds, dispose at a low price, gift assets or transfer shares without authorization in order to evade debts to the lender or weaken its own solvency.

4.9 Where the Borrower changes its name, legal representative, legal address, business scope, correspondence address, contact telephone number, etc., it shall, within 5 days after the change, deliver a written notice and relevant documents of change issued by the competent authorities of industry and commerce to the Lender.Otherwise, all liabilities and consequences arising therefrom shall be borne by the Borrower.

4.10 If the guarantor of the loan hereunder stops production, goes out of business, has its registration cancelled, has its business license revoked, is bankrupt and suffers from operating loss, partially or completely loses its guarantee ability corresponding to the debt hereunder, or if the value of the collateral, pledge or pledge right used as the loan guarantee hereunder decreases or there is a dispute over ownership, The Borrower shall provide other security measures approved by the Lender within 10 days after the occurrence of the above circumstances.

4.11 The Borrower shall be obliged to cooperate with the lender in loan reconciliation.

4.12 The Borrower shall, in accordance with the requirements of laws and regulations, bear the expenses of lawyer services, insurance, transportation, registration, storage, appraisal, notarization, depository and guarantee in connection with this Agreement and the guarantee hereunder.

4.13 The Borrower shall immediately sign and deliver the return receipt to the Lender or send the return receipt to the Lender within 3 days after signing for the receipt of the collection letter or collection document delivered to it by the Lender directly or by post.

4.14 The borrower shall strengthen environmental and social risk management. If the borrower is involved in major environmental and social risks, it shall submit environmental and social risk report；The Borrower represents and warrants that the internal management documents relating to environmental and social risks are in accordance with the requirements of laws and regulations and are effectively implemented,There are no major litigation cases involving environmental and social risks；The borrower undertakes to accept the lender's supervision；If the borrower's statements, warranties or commitments relating to environmental and social risk management have not been seriously fulfilled, or if the Borrower has been penalized by the relevant government authorities or strongly questioned by the public and/or the media for poor environmental and social risk management, The Lender shall have the right to cancel the credit granting commitment already made, suspend the disbursement of the loan until the borrower has taken remedial measures approved by the Lender, withdraw the loan already issued in advance, and exercise the relevant right of pledge in case the loan cannot be repaid；

Article 5 Liability for Breach of Contract

5.1 After the Agreement comes into force, both parties shall perform the obligations and commitments set forth herein, if either party fails to perform or fails to fully perform the obligations or commitments set forth herein.It shall bear the corresponding liability for breach of contract and compensate the other party for the losses caused thereby.

5.2 The Lender shall indemnify the Borrower for any losses caused by the Lender's breach of contract.The scope of compensation is limited to the direct losses of the borrower, excluding indirect losses and expected losses.

5.3 If the borrower fails to repay the loan principal as agreed upon upon the maturity of the loan (including being declared to be due early), the lender will charge a certain percentage of overdue penalty interest on the overdue loan according to the loan interest rate agreed herein for the actual overdue days from the overdue date. For the specific percentage of overdue penalty interest, please refer to the Annex.

5.4 If the Borrower fails to use the loan for the agreed purpose, the Lender shall have the right to charge a certain percentage of penalty interest for misappropriation of the loan amount used by the Borrower according to the actual default days at the loan interest level agreed herein from the date of the Borrower's default. For the specific percentage of penalty interest for misappropriation, please refer to the Annex.

5.5 The Lender shall have the right to compound interest on the outstanding interest payable by the Borrower.The outstanding interest payable by the Borrower during the loan term shall be compounded at the interest rate and settlement method agreed herein；If the Borrower fails to use the loan in due time or fails to use the loan for the purpose agreed herein, the unpaid interest payable shall be compounded by the total interest rate and the settlement rate of the loan interest rate and the penalty interest rate agreed herein.

5.6 When the loan interest rate under this Agreement is adjusted, the penalty interest rate will be automatically adjusted based on the adjusted loan interest rate in accordance with the proportion agreed in Articles 5.3 and 5.4 of this Agreement. The penalty interest rate will apply at the same time as the loan interest rate and will be calculated in sections.

5.7 If the Lender intentionally conceals material facts related to the conclusion of this Agreement or provides false information or circumstances to the Borrower, the Lender shall have the right to charge the Borrower liquidated damages equal to 10% of the loan balance issued hereunder.

5.8 The Borrower shall bear the expenses paid by the Lender during the realization of the creditor's rights, including but not limited to legal costs, arbitration fees, preservation fees, enforcement fees, attorney fees, travel expenses and other expenses for the realization of the creditor's rights.

5.9 If the Borrower breaches its obligations under this Agreement or the guarantor of the loan hereunder breaches its obligations under the guarantee Agreement, the Borrower shall be liable for breach of contract as mentioned above, and the Lender shall have the right to identify all the credit extended by the Borrower to the Lender, including but not limited to loan, discount, banker's acceptance, international trade financing, bank's guarantee, etc. Are due earlier and are entitled to take all actions set forth in Section 2.3 of this Agreement.

5. 10 If the creditor's rights under this Agreement are secured by mortgage, If the relevant mortgage certificate expires, the relevant authority certificate and mortgage registration procedures cannot be completed again according to the requirements of the lender，the Lender shall have the right to declare that all the credit extension of the Borrower are due in advance and require the Borrower to pay the full margin in advance, add additional security and other remedial measures if the relevant mortgage certificate fails to complete the relevant warrant and mortgage registration formalities as required by the Lender before the expiration.

Article 6 Effectiveness, alteration, assignment, rescission and termination of the Agreement

6.1 This Agreement shall be established by the Borrower through the electronic channels of Bank of Ningbo Co., LTD. (including but not limited to the online banking, Bank of Ningbo APP, financial system, etc.) by clicking and submitting online, and shall come into force upon the approval of the Lender. If the borrower submits the application for signing the Agreement through the lender's electronic channel, it shall have the same legal effect as the handwritten signature or seal on the paper application.All transactions completed through the electronic channels of Bank of Ningbo Co., LTD through the borrower's identity authentication elements (including but not limited to account number, login name, password, digital certificate, USBKey, etc.) or other transaction security measures shall be deemed to be done by the Borrower, and the business instructions generated by the above operations shall be legal and valid certificates for the lender to handle the business. The borrower shall be responsible for the consequences arising therefrom.In the event of loss, theft or damage to such elements as identity authentication, the Borrower shall bear all consequences unless the Borrower has expressly notified the Lender.If the Lender's electronic channel cannot be used normally due to terminal failure, system failure and other reasons, the Borrower shall immediately notify the Lender or go to the Lender's business outlets for handling.The borrower shall properly keep the account number, password and other information, and shall not lend or sublease the account to others.The Borrower shall bear all the risks and losses arising from the loan of the Borrower's account, the sublease of other people's use or the disclosure of the information.

The Borrower has read the above in detail and understands that an electronic signature is the data contained in electronic form in a message attached to identify the signer and show that the signer approves of its contents.Therefore, in addition to all the risks associated with signing a contract in writing, the application for drawing an electronic banker's acceptance bill by means of electronic signature is fully understood and recognized as having the following risks:

(1) The account password of the borrower's online banking and other electronic channels is leaked or its identity may be counterfeited；

(2) Due to the possibility of malicious attacks by hackers on the Internet, the Internet server may break down and other unpredictable factors；

(3) the Borrower's Internet access equipment and software system do not match the online trading system provided；

(4) If the borrower's handling personnel do not have certain experience in online transaction, they may be unable to initiate the transaction due to improper operation；

(5) The borrower's computer system is infected with computer viruses or illegally invaded.

The foregoing risks may result in the loss of the Borrower, and the Borrower is fully aware of and voluntarily assumes such risks.

This Agreement shall be valid for one year from the effective date. If no written objection is raised by both parties ，It will be postponed automatically for one year.and so on.If there are still outstanding working capital loans under the original Agreement, the original Agreement shall remain binding on the parties until the completion of all the businesses under the original Agreement.All business after the effective date of this Agreement shall be handled in accordance with the provisions of this Agreement.In the absence of any outstanding business, either Party shall have the right to terminate this Agreement by giving a written notice to the other party five working days in advance. This Agreement shall be terminated as of the date set forth in the written notice. If the date set forth in the written notice is earlier than the date on which the notice reaches the other party, the date on which the notice reaches the other party shall prevail.

6.2 With the consent of the Lender, the Borrower may apply for repayment in advance, and the Lender has the right to charge liquidated damages according to a certain percentage of the amount repaid in advance. Please refer to the subsidiary articles for the liquidated damages.

6.3 If the borrower requires the extension of the loan, it shall submit a written application for extension to the lender and the guarantor's written opinion agreeing to continue the guarantee 7 days before the expiration of the loan term. Upon the Lender's approval and signing of the extension agreement, the loan hereunder shall be extended only after the extension agreement becomes effective.

6.4 After this Agreement comes into force, neither party shall arbitrarily alter or terminate this Agreement except as agreed herein or as provided by laws and regulations.If this Agreement needs to be changed or terminated, both parties shall reach a written agreement through consultation.The terms of this Agreement shall remain valid until the written agreement is reached.If the agreement is changed, the client's consent shall be sought through phone calls, SMS messages and other means, and the announcement shall be made through the public account or official website of our bank.

6.5 The Lender may assign its rights under this Agreement to a third party without the consent of the Borrower.The notice of the assignment of rights by the Lender may be given by written notice or by announcement on the Lender's official website (http://www.nbcb.com,cn), public media and other forms approved by the regulatory authority.The Borrower hereby authorizes the Lender, as its agent, to enter into all necessary agreements and documents with such third parties to complete the transfer.The Borrower hereby acknowledges that the agreement and documents signed by the Lender and the said third party constitute valid legal documents between the Borrower and the third party, confirm the creditor's and debtor's relationship between the Borrower and the third party, and are legally binding on both the Borrower and the third party.If the Lender transfers the loan claims under this Agreement to a third party, the Borrower shall, within five working days from the date of the announcement, raise the claim of defense or set-off against the Lender. Failure to object is considered as an endorsement of the assignment of debt.

6.6 The Borrower shall not assign any of its obligations under this Agreement to a third party without the written consent of the Lender.

Article 7 Application of law and dispute settlement

7. 1 The conclusion, validity, interpretation, performance and dispute resolution of this Agreement shall be governed by the laws of the People's Republic of China (excluding the laws of Hong Kong, Macao and Taiwan for the purpose of this Agreement).

7.2 Any dispute arising from the performance of this Agreement shall be settled by the parties through negotiation.If no agreement can be reached through negotiation, please refer to the subsidiary terms for the specific dispute settlement method.

7.3 During the period of negotiation, submission of litigation or arbitration, the Agreement does not involve the provisions of the disputed part and the parties shall still perform it. Neither party shall refuse to perform any of its obligations under this Agreement on the grounds that the dispute settlement procedure is in progress.

Article 8 Other Matters

8.1 The invalidity or cancellation of some provisions of this Agreement shall not affect the validity of other provisions, which shall remain valid.

8.2 Service

(1) The Borrower acknowledges that the following address shall be the address and contact information for the notice sent by the Lender and the debt collection, litigation (arbitration) legal documents involved, and the address and contact information shall be applicable to all stages of litigation and execution.

(2) The lender, the Trial court and arbitration agency shall send the notice and legal documents at the following address and contact information. If no one signs for or refuses to receive the mail, the date of return of the notice and legal documents shall be deemed as the date of service. If the mail is rejected at the time of direct service, the deliverer may take photos or video to record the service process, and leave the notice and legal documents in lien, which shall be deemed as service.

(3) The borrower acknowledges that the lender, the hearing court and the arbitration institution may serve the instrument by mobile phone SMS , fax or email or other modern means of communication through the mobile phone number, fax number or email address specified below. The lender, the hearing court and the arbitration institution shall be deemed to have served the instrument as long as they confirm that they have sent the relevant legal instrument at the number and address specified below.The relevant legal documents sent by the lender, the hearing court or the arbitration institution at the following postal address shall be deemed to have been delivered 3 days after the delivery of the mail.

(4) If the borrower provides the wrong contact information or fails to timely inform the changed contact information, resulting in the failure to serve or return the notice or legal document, the date of return of the notice or legal document shall be deemed as the date of service.

(5) The delivery address and contact information of the Borrower are set forth in the subsidiary terms.

8.3 Both parties hereby agree to confirm the legal validity of the telephone recording and faxed copy, and promise that they can be submitted as evidence to the court, the Arbitration Commission and other dispute settlement institutions.A faxed copy shall have the same validity as the original while the original is in transit.The fax number specified by the Borrower in this Agreement shall not be changed at will, and the Borrower shall issue a written explanation of the change to the Lender when the fax number is changed, failing which, the Borrower shall assume all liabilities arising therefrom.The Borrower shall ensure that the fax sent by the Borrower is consistent with the original； otherwise, the Borrower shall bear the corresponding responsibility.

8.4 The headings of the terms of this Agreement are for the convenience of reference only, and no terms of this Agreement shall be construed or understood solely on the basis of the headings.

8.5 Except as agreed herein or as provided by relevant laws and regulations, unless the non-breaching party expressly states in writing, the breaching Party shall violate or fail to perform any agreement or obligation contained herein at any time. No act, omission, delay in taking action or any other measure by the non-breaching Party shall be deemed to be a waiver of any of its rights under this Agreement.

8.6 If any party to this Agreement requests notarization of the agreement, the parties shall jointly apply for notarization to the notary office, and clearly give the agreement the effect of enforcement.The notarization fee shall be borne by the borrower.At the same time, the Borrower agrees that this Agreement shall be enforceable upon notarization. If the Borrower fails to perform its obligations hereunder, the Lender may apply to the people's court with jurisdiction for enforcement according to law.

8.7 If this Agreement cannot be fully performed due to changes in regulations, rules, policies or emergency measures, the Lender shall not bear any responsibility.

8.8 Matters not covered herein shall be handled in accordance with relevant laws and regulations, the People's Bank of China, the CBRC and the lender.

Article 9 The standard terms, ancillary terms, supplementary agreements, ious, Borrower's undertakings, testimonies and power of Payment, etc. constitute the entire Agreement, and the components of such Agreement may be executed in paper, electronic or other means approved by the Lender.

<u>Article 10 Tips and Declarations</u>

1. The Borrower agrees that the Lender shall entrust a third party to keep the written documents or electronic information related to this Agreement: The Parties hereto agree and confirm that the written documents or electronic information related to this Agreement provided by the third party entrusted by the Lender shall be the final proof of the matters related to this Agreement.

<u>2. The Lender has drawn the Borrower's attention to a full and accurate understanding of the terms of this Agreement.The meaning of the terms of this Agreement and the corresponding legal consequences are fully known and understood by the contracting parties.</u>

<u>At the same time, the Borrower specifically declares that it has paid special attention to and accepts the terms, especially the bold terms, relating to its obligations and adverse to it.</u>

<u>The borrower already knows that choosing a floating rate increases interest payments if interest rates rise between the start date and the maturity date, and choosing a fixed rate increases interest payments if interest rates fall between the start date and the maturity date.</u>

(The above is the standard terms of this Agreement, and the following is connected to the subordinate terms of this Agreement)

Subsidiary Terms of Online Working Capital Loan General Agreement

No. : <u>07800LK22BHA16M</u>

Lender: Bank of Ningbo Co., LTD. <u>Wuxi Branch</u>

Borrower: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd</u>

Article 1

If the borrower fails to repay the principal of the loan as agreed, the lender shall charge an additional penalty interest of <u>50%</u> for overdue payment；

If the borrower fails to use the loan for the agreed purpose, the lender shall charge an additional penalty interest of <u>80 percent</u> for misappropriation.

Article 2

With the consent of the Lender, the Borrower may apply for repayment in advance, and the Lender has the right to charge<u>/</u> penalty against the amount repaid in advance.

Article 3

Any dispute arising out of the performance of this Agreement can be settled by the following means

It shall be under the jurisdiction of the People's Court <u>No. 666 Zhongshan Road, Wuxi</u>, where the agreement is signed

Article 4

Delivery address and contact information of the Borrower:

Delivery address: <u>A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City</u>

Addressee (or consignee) : <u>Ying Lai Wang</u> post：<u>legal representative</u>；<u>The ID card number is 320922198302165723</u>

Contact number: <u>18112388986</u>

Fax receiving number: <u>/</u>

SMS receiving number: <u>18112588986</u>

Email: <u>/</u>

The standard terms and ancillary terms of this Agreement constitute the entire Agreement.

Signing date: March 28, 2022

## Exhibit 10.10

**Exhibit 10.10** 

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Working capital loan contract**

**(Applicable to newly-signed domestic RMB interest rate, non-US**

**dollar/pound/euro/yen/Swiss franc foreign currency interest rate, US dollar/pound/euro/yen/Swiss franc new benchmark interest rate)**

No：736375593D22071101

**Borrower: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

**Unified social credit code：<u>91320214346537120H</u>**

**Legal Representative/Person in charge: <u>Yinglai Wang</u>**

**Address: <u>3-1208, No.228 Linghu Avenue, Xinwu District, Wuxi City</u> ZIP Code：<u> </u>/<u> </u>**

**Opening financial Institution and Account Number:<u>Bank of China Limited,Wuxi Branch 483277737262</u>**

**Telephone:<u> </u>/<u> </u> Fax:<u> </u>/<u> </u>**

**Lender: <u>Bank of China Limited,Wuxi Branch</u>**

**Legal Representative/Person in charge:<u>Xinhong Chen</u>**

**Address: Zip Code:<u>258 Zhongshan Road, Wuxi</u> ZIP Code：**

**Telephone: <u>/</u> Fax: <u>/</u>**

The Borrower and Lender, through equal consultation, have reached an agreement on the issue of working capital loan by the Lender to the Borrower and hereby enter into this contract.

☐ This contract is a single agreement under the signed,Belong to <u>Jiangsu Huhu Electromechanical Technology Co., LTD.</u>with <u>Bank of China Limited, Wuxi Branch</u>. Number of <u>736375593E22061501</u> ☐ Line of Credit Agreement /☐ General Agreement for Credit.(Note: This is optional. If not applicable, delete it.)

**Article 1 Loan Amount**

Currency of loan:<u>RMB</u>.

Amount borrowed: (in words)：<u>two million yuan</u>

(in Figures)：<u>￥2,000,000.00</u>

☐ At the time of the Borrower's actual withdrawal, if the Borrower's existing credit balance under the aforesaid Line of Credit Agreement is converted into according to the exchange rate<u> </u> <u>/</u> (currency) on the actual withdrawal date due to exchange rate fluctuations, the lender has the right to terminate this contract or reject the Borrower's withdrawal application if it exceeds the line of credit agreed in the Line of Credit Agreement：If the available line of credit is less than the amount borrowed by the borrower under this contract, the lender shall have the right to reduce the amount borrowed under this contract and determine the amount borrowed under this contract according to the available line of credit.(Note: This clause is optional and applicable according to the management regulations of each line of credit limit. If it is not applicable, it should be deleted)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 2 Term of Loan**

Term of Loan: <u>12</u> month/<u> </u>/<u> </u>day, starting from the actual withdrawal date;In the case of instalment withdrawal, the first actual withdrawal date.

The Borrower shall make the withdrawal in strict accordance with the agreed time. If the actual withdrawal date is later than the agreed time, the Borrower shall make the repayment in accordance with the repayment time agreed herein.

**Article 3 Purposes of loan**

Purpose of loan: <u>Purchase Cable</u>

Without the written consent of the lender, the borrower shall not change the purpose of the loan, including but not limited to, the borrower shall not use the loan for fixed assets, equity and other investment, for any fields or purposes that are prohibited by laws, regulations, regulations, or the state to produce or operate, for lending, or for the purchase of other financial products for arbitrage, or for the illegal creation of new hidden debts of the local government. And other uses for which bank loans are prohibited.

**Article 4 Loan Interest Rate and accrued interest** (Remarks: Fill in according to the facts, and exception to application must be deleted)

**The lender expresses to the borrower the annualized interest rate of the loan hereunder through the notification letter of the annualized interest rate of the loan attached hereto. If the annualized interest rate of the loan hereunder is only calculated according to the interest rate of the loan expressed in paragraph 1 of this article, the notification letter of the annualized interest rate of the loan shall not apply.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Borrowing interest rate**

The borrowing rate (annualized, simple interest rate for RMB borrowing and simple/compound interest rate for foreign currency borrowing (choose one))

The manner is <u>(2)</u> listed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Fixed interest rate, annual interest rate<u> </u>/<u> </u>%.**The contract interest rate remains unchanged during the term of the loan.

☐ **The source of fixed interest rate of RMB loan is:** the quoted interest rate of loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the National Inter-bank Lending Center as of one working day before the effective date of this contract ☐ plus/☐minus (optional) <u>/</u> basis points;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Sources of fixed interest rates for foreign currency borrowings:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Base rate plus<u> </u>/<u> </u> basis points applicable on the effective date of this Contract (T day). The benchmark interest rate is the value of<u> </u>/<u> </u>T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR corresponding to the currency of the loan agreed under this contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Base rate plus basis points applicable on the effective date of this Contract (T days, if the effective date is not a business day, the most recent business day before is T days). The benchmark interest rate is the interest rate of ☐ US dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>/<u> </u>T-5 business days as shown on the Bloomberg Financial Telecommunications terminal page. **If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.**(Note: This section applies to overnight interest rates)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The latest one obtained from Reuters Information system before 9:00 (Beijing time) one working day prior to the effective date of this Contract<u> </u>/<u> </u> Monthly<u> </u>/<u> </u> (foreign currency benchmark rate) plus<u> </u>/<u> </u> basis points. **If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **The floating interest rate,** starting from the actual withdrawal date (in the case of fractional withdrawal, the first actual withdrawal date), ☐ daily /🗹 <u>12</u> month /☐<u> </u>/<u> </u> year (choose one) as a floating period, will be repriced once. The repricing date is the first day of the next floating period, that is, the starting date is the corresponding day of the repricing month. If there is no corresponding day in the current month, it is the last day of the current month. If the floating period is daily, the repricing date is the day of the next floating period.

**For each withdrawal:**

☑ **Floating interest rate of RMB loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) is one working day prior to the date of actual withdrawal. The market quoted interest rate for loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) as recently published by the national interbank offered center þ plus/minus (optional) <u>0</u> basis points;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. On the repricing date, together with other tranches of withdrawals, the market quoted rate ☐ plus/minus (optional) basis points of loans with maturity of þ 1 year /☐ 5 years or more (optional) 🗹 plus/minus (optional) <u>0</u> basis points to reprice, as the applicable interest rate for the floating period.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Floating interest rate on foreign currency borrowings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **If applicable term interest rate,**(the following rules will determine the interest rate:The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be determined by the spread of the base rate applicable on the date of actual withdrawal (T day) plus basis points. The benchmark interest rate is the value of T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR ☐ corresponding to the currency of the loan agreed under this Contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System**.** On the repricing date (T day), (term) ☐ Yen TIBOR ☐ Euro EURIBOR ☐ T-3 business days for the currency of the loan agreed under this Contract as displayed on the bloomberg financial telecommunications terminal page or obtained from the Reuters Information System plus other tranche withdrawals The spread of the basis points determines the applicable interest rate for that floating cycle. The spread remains unchanged over the life of the contract. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **If the overnight rate is applicable,** the following rules will determine the interest rate: The base rate plus<u> </u> ☐US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ shall apply on each interest date(i.e., each natural day of the borrowing period, the same below) in the currency of the borrowing under this contract<u> </u>/<u> </u>base point spreads are determined. The subsequent lender shall determine the interest rate of each accruing date based on the benchmark interest rate applicable on each accruing date and the aforementioned spread. Interest date the daily pricing base rate shall be determined as follows: The first rate fixing date shall be the actual withdrawal date, and the subsequent rate fixing date shall be each interest date after the first rate fixing date. Interest rate fixing date (T day, if the interest rate fixing date is not a business day, The most recent business day before shall be T day) The base rate applicable is the currency of the loan agreed under this Contract as shown on the Bloomberg Financial Telecommunications Terminal page ☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>T-5 working days of the interest rate value. The spread remains unchanged over the life of the contract. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be the latest (foreign currency benchmark rate) plus basis point of the month obtained from Reuters Information System before 9:00 (Beijing time) one business day prior to the date of actual withdrawal. On the repricing date, together with other tranche withdrawals, the latest (foreign currency benchmark rate) for the same floating period obtained from Reuters Information System before 9:00 AM (Beijing time) on the business day prior to the repricing date will be repriced as the applicable interest rate for the floating period. **If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Interest calculation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) For the fixed interest rate of Item 1 (1), floating interest rate of RMB loan in Item 1 (2) and floating interest rate of foreign currency loan in Item A and C of this Article:**

The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.

Interest calculation formula: interest = principal**×**actual days**×**daily interest rate.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) For item B of Floating interest rate for foreign currency borrowings in Paragraph 1 (2) of this Article:**

**The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.**

**Simple interest:** The part calculated on the basis of the pricing base and the part calculated on the basis of the spread is calculated on the basis of simple interest.

**Single compound interest combined interest bearing:** For the part calculated according to the pricing base, the interest of the part per business day = (the loan principal + the total amount of interest owed by the previous day) **×** the base day interest rate applicable on that day**;**Non-working days are still accruing simple interest. The portion calculated on the basis of the spread is calculated as simple interest.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

The above mentioned working days refer to the local working days of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. the way of interest**

The borrower shall pay interest in the first of the following ways: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest accrues quarterly, the 20th day of the last month of each quarter is the coupon Day, and the 21st Day is the coupon payment Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest accrues monthly, the 20th day of each month is the coupon Day, and the 21st Day is the Coupon Payment Day.

If the Last Payment date of the principal of the Loan is not the Interest Payment Date, the last payment date of the Principal of the Loan is the Interest Payment Date and the Borrower shall pay all the interest payable.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Penalty interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the loan is overdue or not used for the purpose agreed in the contract, penalty interest shall be levied on the overdue or misappropriated part from the date of the overdue or misappropriated part until the principal and interest are repaid.

For overdue and misappropriated loans, penalty interest shall be calculated at the higher penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the interest and penalty interest that the Borrower fails to pay on time, compound interest shall be calculated **according to the penalty interest rate agreed** in this paragraph in the manner of settlement agreed in Paragraph 3 of this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Penalty interest rate (Remarks: Fill in according to the currency of the loan and the way of determining the interest rate)

**RMB loan penalty interest rate,**

☐ **Penalty interest rate on fixed-rate loans**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Floating interest rate, the floating period is month/ year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period). Reprice once per floating period from the date of overdue or misappropriation. The repricing date shall be the overdue or misappropriated date. If there is no such date in the current month, the last day of the current month shall be the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be charged <u>%</u> at the base rate of penalty interest determined in subparagraph C, and the penalty interest rate for misappropriated loans shall be charged at the base rate of such penalty interest rate %

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In the first floating period, the base rate of penalty interest is the borrowing rate agreed in paragraph 1 of this article.After the completion of each floating period, the penalty rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) <u>t</u>he base point is determined.

☐ **Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article. The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>40</u> %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>70 %</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing date in accordance with the manner stipulated in paragraph 1 of this Article.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Foreign currency borrowing penalty interest rate, □ Penalty interest rate on fixed-rate loans**

The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points

☐ **Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Paragraph 1 (2) of this article on the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

**Floating rate Penalty interest rate for borrowing(Note: This section applies to loans with single compound interest and can not be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The "loan interest rate" and "penalty interest rate" under this Contract are tax inclusive interest rates, that is, the interest charged by the Lender to the Borrower has included VAT payable in accordance with national laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of any material change in the pricing basis of the floating interest rate hereunder, the market rules in force at that time shall apply.If the Lender then requires the Borrower to sign a supplementary contract on relevant matters, the Borrower shall cooperate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term "pricing base" in this Article has the same meaning as the term "base rate".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Under this Contract, "TIBOR" means TIBOR announced and managed by the Japan Bankers Association (or the successor administrator), and "EURIBOR" means EURIBOR announced and managed by the European Money Market Institute (or the successor administrator) as the administrator. "Overnight SOFR" means an overnight SOFR published and administered by the Federal Reserve Bank of New York (or a successor governor) as administrator, "Overnight SONIA" means an overnight SONIA published and administered by the Bank of England (or a successor governor) as administrator, "Overnight TONA" means the overnight TONA published and managed by the Bank of Japan (or successor) as administrator, "Overnight ESTR" means the overnight ESTR published and managed by the European Central Bank (or successor) as administrator, "Overnight SARON" means the overnight SARON published and administered by the Swiss Stock Exchange (or a successor administrator) as the administrator.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 5 Withdrawal conditions**

The borrower shall meet the following conditions for withdrawal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract and its attachments have come into force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has provided the guarantee as required by the lender, and the guarantee contract has taken effect and completed the legal approval, registration or filing procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower has reserved for the Lender the Borrower's documents, receipts, seals, names of persons and signature samples related to the conclusion and performance of this Contract, and has filled in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower has opened an account necessary for the performance of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Submit the written withdrawal application and relevant documents proving the purpose of the loan to the lender and handle the relevant withdrawal procedures on the bank <u>2</u> working days before the withdrawal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. 🗹 The Borrower has submitted to the Lender the resolution and letter of authorization for the Board of Directors or other competent departments to sign and perform this contract;(Note: This clause is optional. Please check whether the borrower has obtained relevant approval and authorization before signing the contract.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other withdrawal conditions stipulated by law and agreed by both parties

If the above conditions are not met, the Lender shall have the right to reject the Borrower's withdrawal application, except where the Lender agrees to make the loan.

**Article 6 Time and method of withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall withdraw the money in the following <u>(2)</u> time and method:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)<u> </u>Year<u> </u>month<u> </u>day One time extraction on the day of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the loan shall be cleared <u>On July 19, 2022</u> Within a month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Withdrawal in installments according to the following time:

---

| | |
|:---|:---|
| Time of withdrawal | Amount of withdrawal |
| &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;/ |

---

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall have the right to reject the Borrower's withdrawal application for the part not used within the aforesaid time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Commitment Fee (If the borrower is a small and micro enterprise, this clause shall be deleted;If the borrower is not a small or micro enterprise, one of the three options should be reserved according to the actual situation, and the other options should be deleted)**

**The Lender provides the promised service for the loan that the Borrower may and does not draw during the promised Service period (from the effective date of this Loan Contract to the drawdown date agreed herein) (hereinafter referred to as the "Undrawn Loan").Upon mutual agreement between the Borrower and the lender, the commitment fee is as follows:**

☐ **The Borrower shall pay a commitment fee for the aforesaid promised services. Specific according to the undrawn loan amount, undrawn days and annual rate % calculated. The specific fee date and calculated actual fee amount shall be separately signed in the Promised Service Agreement during the promised service period.**

☐ **The Borrower shall pay a commitment fee for the aforesaid promised services. It is agreed that the commitment fee is RMB Yuan, and the date of collection is (Note: it can be agreed to be collected in one time or in installments. For those charged in installments, please fill in the date and amount of the fee in this column).**

☐ **The Lender shall, in accordance with the principle of "fee reduction and interest concession", waive the commitment fee for the aforesaid aforesaid service and assess the amount to be RMB Yuan.**

**Article 7 Payment of loan funds**

1. Loan issuing account

The Borrower shall open the following account with the Lender as the loan issuance account, and the loan issuance and payment shall be handled through this account. ☐ This account is a special account and can only be used for the issuance and payment of borrowed funds, not for the receipt and payment of other funds.(Note: This sentence is optional and should be deleted if not applicable)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment method of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment method of the borrowed funds shall be implemented in accordance with laws and regulations, regulatory provisions and provisions of this Contract. The payment method of the borrowed funds for a single withdrawal shall be confirmed in the withdrawal application. If the lender considers that the payment method of the borrowed funds selected in the withdrawal application does not meet the requirements, it has the right to change the payment method or stop the release and payment of the borrowed funds.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Entrusted payment by the Lender means that the Lender pays the borrowed funds to the Borrower's counterparty conforming to the purpose agreed herein according to the Borrower's withdrawal application and payment authorization. According to the relevant regulations of the CBRC and the internal management regulations of the lender, payment of loan funds meeting one of the following conditions shall be made by the lender as entrusted payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The lender and the borrower establish a new credit business relationship, and the borrower's credit rating does not meet the lender's internal requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. When the withdrawal application is made, the payment object is clear (with a clear account and account name) and the amount of a single payment exceeds <u>0</u> RMB (excluding, the foreign currency is converted at the actual withdrawal day exchange rate<u> </u>)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Other circumstances specified by the Lender or agreed with the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Independent payment by the Borrower, that is, after the Lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower pays the loan funds independently to the borrower's counterparty meeting the purpose agreed in the contract. Except for the circumstances stipulated in the preceding paragraph, where the lender is to be entrusted with the payment method, other payment methods of the borrowed funds shall be paid by the borrower independently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Change of payment method. After the submission of the withdrawal application, if the borrower's external payment, credit rating and other conditions change, the borrower shall change the payment method of the borrowed funds if the self-paid borrowed funds meet the conditions agreed in item (2) of Paragraph 2 of this Article. If the payment method is changed or the entrusted payment method changes the amount of external payment, the payment object and the purpose of the loan, etc., the borrower shall provide the lender with a written explanation of the application for the change, and resubmit the application for withdrawal and relevant transaction materials proving the purpose of the funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Specific requirements for entrusted payment of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment entrustment. If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall have a clear payment authorization in the withdrawal application, that is, authorizes and entrusts the lender to directly pay the borrowed funds to the Borrower's designated counterparty account conforming to the purposes agreed herein after transferring the borrowed funds into the borrower's designated account. And shall provide the name of the counterparty receiving the payment, counterparty account, payment amount and other necessary payment information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision of trading information.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall provide the Lender with the information of its lending account and the account of the counterparty and the certification materials proving that the withdrawal conforms to the purposes agreed in the loan contract at each time of withdrawal. The Borrower shall warrant that all information provided to the Lender is true, complete and valid. If the Lender's entrusted payment obligation fails to be completed in time due to inaccurate, inaccurate or incomplete transaction information provided by the Borrower, the Lender shall not assume any responsibility, and the repayment obligation of the Borrower already incurred under this Contract shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The lender's fulfillment of the entrusted payment obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In case of entrusted payment by the Lender, after the borrower submits the payment authorization and relevant transaction materials, the lender shall pay the borrowed funds to the borrower's counterparty through the borrower's account after examination and approval.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If the Lender finds through examination that the relevant transaction materials such as the proof of use provided by the Borrower do not conform to provisions hereof or have other defects, it shall have the right to require the Borrower to supplement, replace, explain or resubmit the relevant materials. Before the Borrower submits the relevant transaction materials deemed qualified by the Lender, the Lender shall have the right to refuse the release and payment of the relevant funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Lender is unable to timely pay the borrowed funds to its counterparty in accordance with the payment authorization of the Borrower due to the refund of the bank that opened the counterparty's account, the Lender shall not assume any liability and the repayment obligations of the Borrower already incurred under this Contract shall not be affected. The Borrower hereby authorizes the Lender to freeze the amount returned by the opening bank of the counterparty's account. Under such circumstances, the borrower shall resubmit the payment entrustment, proof of use and other relevant transaction materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower shall not evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Upon the release of the borrowed funds, the Borrower shall, as required by the Lender, promptly provide the records and materials for the use of the borrowed funds, including but not limited to the aforementioned materials <u>copy of payment voucher</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Under any of the following circumstances, the Lender has the right to re-determine the terms of loan issuance and payment or to stop the issuance and payment of loan funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower violates this Contract and evades the entrusted payment by the lender by breaking the whole into pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The credit status of the borrower declines or the profitability of the main business is not strong;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Abnormal use of borrowed funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower fails to provide the use records and materials of the loan funds in time as required by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower pays the borrowed funds in violation of the provisions of this Article.

**Article 8 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower designates the following account as the fund withdrawal account, and the borrower's fund withdrawal shall be entered into this account. The borrower shall provide the information of the funds in and out of the account in time. The lender shall have the right to require the borrower to explain the inflow and outflow of large and abnormal funds in the capital return account and to supervise the account.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract according to the following repayment plan: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All loans under this contract shall be repaid on the expiration date of the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the loan under this Contract according to the following repayment plan:

---

| | |
|:---|:---|
| Time of repayment | Amount of repayment |
| 2023.07.18 | ￥2,000,000.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other repayment plans:<u> </u>

If the borrower wants to change the above repayment plan, it shall submit a written application to the Lender before <u>5</u> banking day, and the change of the repayment plan shall be confirmed by both parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Unless otherwise agreed by the parties, if the Borrower defaults on the principal and interest of the loan and the expense of realizing the claim, the Lender shall have the right to determine the sequence of repayment of the principal or interest and the expense of realizing the claim;In the case of installment repayment, if there are multiple loans due or overdue under this contract, the Lender has the right to determine the order of repayment of a certain repayment by the Borrower;Where there are multiple expired loan contracts between the borrower and the lender, the lender has the right to determine the order of contract performance by the borrower for each repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Unless otherwise agreed by both parties, the borrower may repay the loan in advance, but shall notify the lender in writing <u>30</u> banking day in advance.he amount of the prepayment is used first to repay the last loan due, in reverse order.**

**For borrowings with single compound interest, such as pre-repayment or partial pre-repayment, the interest corresponding to the pre-repayment principal should be settled in one lump sum.**

☐ **The Lender shall have the right to charge liquidated damages for early repayment according to the standard of the early repayment portion(Note: This clause is optional. If it is not applicable or the borrower is a small and micro enterprise, it shall be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower shall repay In the <u>first</u> way below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower shall deposit the full amount of funds in the following repayment account for repayment not later than <u>5</u> banking working day prior to the maturity of each principal and interest, and the Lender shall have the right to deduct the collection from the account voluntarily on the due date of each principal and interest.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other repayment methods agreed by both parties:<u> </u>

**Article 9 Guarantee** (Note: Fill in optionally according to the actual conditions, and delete the inapplicable clauses)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The debt hereunder shall be guaranteed in the following ways:

☐ No guarantee.

☐ This contract belongs to the guarantor <u>Yinglai Wang,Yujun Xiao</u> is the main contract under the No.<u>Z66X2022034</u> ☐ Maximum Amount Guarantee Contract /☐ Maximum Amount Mortgage Contract /☐ Maximum Amount Pledge Contract signed between the Guarantor and the Lender, and the guarantor shall provide the maximum amount guarantee.

☐ **(Other forms of guarantee)<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event that the Borrower or the Guarantor may affect its ability to perform the Agreement, or that the Guarantee contract becomes invalid, cancelled or rescinded, or that the Borrower or the Guarantor's financial situation deteriorates or becomes involved in major litigation or arbitration cases, or that the Borrower or the Guarantor's accounts are closed or for other reasons may affect its ability to perform the Agreement, If the guarantor breaches the guarantee contract or any other contract between the guarantor and the Lender, or the guarantee is devalued, damaged, lost or sealed, resulting in the weakening or loss of the value of the guarantee, the Lender shall have the right to require and the Borrower shall have the obligation to provide a new guarantee or replace the guarantor to guarantee the obligations hereunder.

**Article 10 Invoicing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may apply to the Lender for issuing a VAT invoice (☐ special VAT invoice /☐ general VAT invoice) after the Lender has confirmed receipt of the payment, and the Lender shall issue a VAT invoice to the Borrower after receiving the Borrower's application for issuing a VAT invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower may apply for the issuance of VAT invoice to the corresponding business handling agency or other agencies designated by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower shall confirm that the payer, the contract signer and the buyer listed in the VAT invoice are the same tax payer.In case of any inconsistency, the Borrower cannot enter the account or deduct the input tax according to law, the relevant loss shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the borrower loses the invoice after obtaining it, the Lender need not issue the VAT invoice to the borrower again.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the lender provides discount to the borrower through negotiation, the VAT invoice amount shall be subject to the discounted price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender will not provide a VAT invoice if the Lender provides services to the Borrower free of charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. When the Lender issues a VAT invoice to the Borrower, the Borrower shall check the invoice information in time.If the invoice information is wrong, the borrower shall promptly apply to the lender for a new VAT invoice.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 11 Declarations and undertakings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. The Borrower declares as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower is legally registered and exists, and has the full capacity for civil rights and conduct necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The signing and performance of this Contract is based on the true intention of the Borrower, which has been legally and effectively authorized in accordance with its articles of association or other internal management documents, and will not violate any agreement, contract or other legal documents binding on the Borrower;The Borrower has or will obtain all relevant approvals, permits, filings or registrations necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) All documents, financial statements, vouchers and other materials provided by the Borrower to the Lender under this Contract are true, complete, accurate and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The transaction background of the borrower's application for subordination business with the lender is true and legal, does not involve money laundering, terrorist financing, WMD proliferation financing, tax evasion, fraud and other illegal purposes, and does not violate the provisions of the United Nations, China and other applicable sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower does not conceal from the Lender events that may affect its and the guarantor's financial position and ability to perform the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower and the loan project meet the national environmental protection standards, and the enterprises and projects with serious energy consumption and pollution problems and ineffective rectification are not subject to the risk of energy consumption and pollution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The purpose of borrowing and the source of repayment are genuine and legal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Other matters declared by the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The Borrower undertakes as follows:<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Submit its financial statements (including but not limited to annual reports, quarterly reports and monthly reports) and other relevant materials to the Lender on a regular or timely basis as required by the Lender;(a) The Borrower ensures that it continues to meet the following financial criteria:<u>Keep profitable</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower has entered into or will enter into a counter-security agreement or similar agreement with the guarantor of this Contract in respect of its security obligations, such agreement will not prejudice any of the Lender's rights under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accept the lender's credit inspection and supervision, and give sufficient assistance and cooperation;Where the borrower makes the payment independently, it shall, as required by the lender, regularly summarize and report the payment and use of the loan funds. The specific time for the report is: <u>On the 15th of each month</u>

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In the event of merger, division, capital reduction, equity transfer, foreign investment, substantial increase in debt financing, transfer of material assets and creditor's rights and other matters that may adversely affect the borrower's ability to repay the debt, the borrower shall obtain the written consent of the Lender in advance;

The Borrower shall promptly notify the Lender of any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Change of articles of association, business scope, registered capital and legal representative of the borrower
or guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Change the mode of operation in any form such as joint venture, joint venture, cooperation, contract operation,
reorganization, restructuring and planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Is involved in major litigation or arbitration cases, or property or security is sealed, seized or placed
in custody, or new security is placed on the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Being closed down, dissolved, liquidated, suspended for rectification, being revoked, having its business
license revoked, or (being) applying for bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Shareholders, directors and current senior managers are involved in major cases or economic disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The borrower defaults under any other contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Operating difficulties or deterioration of its financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The order of repayment of the borrower's debts to the lender is higher than that of the borrower's shareholders, and no less than that of other creditors;

☐ Moreover, the Borrower shall not repay the loan from the shareholder of the Borrower before the effective date of this Contract and the completion of the repayment of the principal, interest and related expenses of the loan hereunder;(Note: This sentence is optional and should be deleted if not applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) ☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of the previous fiscal year, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower does not distribute dividends and bonuses to the shareholders in any form;

☐ The Borrower shall not distribute dividends and bonuses to the shareholders in any form from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ The dividend and bonus distributed by the Borrower to the shareholders shall not exceed % of the Borrower's after-tax profit from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of previous fiscal years, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower shall not distribute dividends and bonuses to the shareholders in any form. Where dividends and bonuses can be distributed to shareholders in accordance with the provisions of this paragraph, the dividend and bonus distributed to shareholders by the Borrower shall not exceed % of the Borrower's after-tax profit;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower does not dispose of its own assets in a manner that reduces its solvency. It undertakes that the total amount of its foreign guarantee shall not be more than <u>2</u> times of its own net assets, and the total amount of its foreign guarantee and the amount of its single guarantee shall not exceed the limit prescribed by its articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Except for the purposes agreed herein or with the consent of the Lender, the Borrower shall not transfer the loan funds hereunder to the account of the same name or the account of the affiliated party.

For the transfer of the account of the borrower with the same name or the account of a related party, the Borrower shall provide the corresponding supporting materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) ☐ With respect to the loan hereunder, the guarantee conditions, the pricing of the loan interest rate, the order of repayment and other loan conditions provided by the Borrower to the Lender shall not be lower than those now or in the future provided to any other financial institution;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) ☐ Go through the foreign exchange loan registration, principal and interest repayment approval and other procedures at the SAFE in time;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The lender shall have the right to collect the loan in advance according to the borrower's capital collection situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) ☐ The Borrower shall submit its environmental and social risk report to the Lender. The Borrower represents and warrants to strengthen environmental and social risk management and undertakes to accept supervision by the lender. Any breach of the foregoing by the Borrower shall constitute or be deemed to be a breach under this Agreement, and the Lender may take remedies for breach in accordance with this Agreement;(Note: This clause is optional. According to the CBRC Green Credit Guidelines, if the borrower is a customer with major environmental and social risks, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Cooperate with the lender to conduct due diligence, provide and update information about the Institution and its beneficial owners, and provide background information about the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other commitments of the Borrower:

**Article 12 Disclosure of related transactions within the Group of the borrower**

The parties agree that <u>1</u> the following clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not one of the group customers identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Commercial Banks Group Customers (the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Group Customers of Commercial Banks (hereinafter referred to as the "Guidelines").The Borrower shall timely report to the Lender the related transactions of more than 10% of its net assets, including the related relationships of the parties to the transaction, the items and nature of the transaction, the amount or corresponding proportion of the transaction, and pricing policies (including transactions with no amount or only a nominal amount).

If the borrower is under any of the following circumstances, the lender has the right to unilaterally decide to stop paying the loan that the borrower has not yet used and to recover part or all of the principal and interest of the loan in advance: using a false contract with a related party to discount or pledge the creditor's rights such as notes receivable and accounts receivable with no actual trade background to the bank to extract bank funds or grant credit;Major merger, acquisition and reorganization, which the lender considers may affect the security of the loan;Intentionally evading and abolishing bank creditor's rights through affiliated transactions;Other circumstances as stipulated in Article 18 of the Guidelines.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 13 Event of breach and treatment**

**Any of the following shall constitute or be deemed to be an event of default by the Borrower under this Contract:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower fails to perform its obligations of payment and repayment to the Lender as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to use the loan funds in the way agreed herein or fails to use the obtained funds for the purposes agreed herein;Or the borrower uses the loan funds to transfer loans or purchase other financial products for arbitrage;Or the borrower unlawfully added the hidden debt of local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower's statements in this Contract are untrue or violate its commitments in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower fails to provide a new guarantee or replace the guarantor in accordance with the provisions of this Contract if the Lender considers that the occurrence of any situation as stipulated in Article 11 (2) (4) may affect the financial condition and performance ability of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower's credit status declines, or the borrower's profitability, solvency, operating capacity, cash flow and other financial indicators deteriorate, breaking the index constraints agreed herein or other financial agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ☐ The Borrower defaults under other contracts with the Lender or other institutions of Bank of China Limited;

☐ The Borrower defaults under other contracts with the lender or other institutions of Bank of China Limited;Event of default under the credit granting contract between the borrower and other financial institutions;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The guarantor breaches the terms of the guarantee contract, or breaches any other contract between the guarantor and the lender or other institutions of Bank of China Limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower terminates its business or is dissolved, revoked or bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower is involved or may be involved in major economic disputes, lawsuits or arbitration, or its assets are sealed up, seized or enforced, or its assets are investigated or punished by judicial authorities, tax authorities, industry and commerce authorities or other administrative authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower's major investors and key management personnel have abnormal changes, disappeared or been investigated or restricted by judicial authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. When the Lender reviews the financial position and performance ability of the Borrower annually (i.e., every year after the effective date of this Contract), it finds that there are circumstances that may affect the financial position and performance ability of the Borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The designated fund return account has large amount and abnormal capital inflow and outflow, and the borrower cannot provide explanatory materials approved by the lender;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

13.☐ The construction of energy-saving projects is seriously delayed, energy-saving technology and equipment have serious defects, the main facilities or equipment stop and reduce production, resulting in a substantial decline in energy consumption load, the actual energy saving is significantly lower than the predicted amount, the energy saving income cannot be timely returned to the designated account, the borrower participates in private high-interest lending, without the consent of the lender to guarantee or borrow new debt, and the main financial indicators seriously deteriorate;(Note: This clause is optional. When conducting energy efficiency credit business in accordance with the Energy Efficiency Credit Guidelines, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Borrower refuses to cooperate with the Lender in carrying out due diligence, the Borrower or its transaction/counterparty is suspected of money laundering, terrorist financing, nuclear weapons proliferation, violation of applicable sanctions or other violations, or the Borrower or the guarantor is included in the United Nations, China and other applicable sanctions list or scope of sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Borrower breaches other provisions of this Contract concerning the rights and obligations of the parties.

**In case of the occurrence of the event of default specified in the preceding paragraph, the Lender shall have the right to take the following measures separately or simultaneously depending on the specific circumstances:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the borrower and guarantor to correct the breach within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reduce, suspend, cancel or terminate the credit line to the Borrower in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Suspend or terminate, in whole or in part, the acceptance of the Borrower's withdrawal and other business applications under this Contract and other contracts between the Borrower and the Lender;To suspend, cancel, or terminate the issuance, payment and handling of loans and trade financing that have not yet been issued in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Declare that all or part of the outstanding loan/trade finance principal and interest and other amounts payable under this Contract and other contracts between the Borrower and the Lender are immediately due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Terminate or rescind this Contract and terminate or rescind in whole or in part other contracts between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Require the Borrower to compensate the losses caused to the Lender by its breach of contract, including but not limited to the loss of legal costs, attorney's fees, notary fees, enforcement fees and other related expenses caused by the realization of the creditor's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The amount of the Borrower in the accounts opened by the Lender and other institutions of Bank of China Limited shall be deducted to pay off all or part of the Borrower's debts to the Lender under this Contract. The amount not due in the account is deemed to be due early.If the currency of the account is different from the Lender's valuation currency, it shall be converted at the Lender's applicable foreign exchange rate at the time of collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Exercise of guarantee real right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Require the guarantor to undertake the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Such other measures as the Lender deems necessary and possible.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 14 Reservation of Rights**

If either party fails to exercise any or all of its rights under this Contract or requires the other party to perform or assume any or all of its obligations and responsibilities, it shall not constitute a waiver of such rights or an exemption from such obligations and responsibilities.

Any tolerance, extension or postponement by either party to the other party of its rights hereunder shall not affect any of its rights under this Contract, laws and regulations, nor shall it be deemed as a waiver of such rights.

**Article 15 Alteration, modification and termination**

This Contract may be modified or modified in writing upon mutual agreement of both parties. Any modification or modification shall form an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated until all rights and obligations hereunder have been fulfilled.

Unless otherwise provided by laws or regulations or agreed by the parties, the invalidity of any provision of this Contract shall not affect the legal effect of the other provisions.

**Article 16 Application of law and dispute settlement**

This contract shall be governed by the laws of the People's Republic of China.

After the Contract comes into force, all disputes arising out of or in connection with the execution or performance of this Contract shall be settled by the parties through negotiation. **If no agreement can be reached through negotiation, either party may adopt the <u>two</u> of the following methods:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Arbitration. submit

☐ China International Economic and Trade Arbitration Commission

☐ Beijing Arbitration Commission (Beijing International Arbitration Center)

☐ Arbitration Commission <u>/</u> (place of arbitration) In accordance with the Commission's arbitration rules in effect at the time of submission of the application for arbitration. The arbitral award shall be final and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Lawsuits. The parties may choose the Chinese court through consultation to settle the matter through litigation.

☐ Bring a suit in accordance with law to the people's court of the place where the lender or any other Bank of China Limited institution exercising its rights and obligations in accordance with this Contract or Individual Agreement has its domicile.

☐ Bring legal proceedings to the International Commercial Tribunal of the Supreme People's Court (international commercial disputes with a subject matter of more than 300 million yuan).

☐ Bring a suit to the people's court having jurisdiction in accordance with the law.

During the dispute settlement period, if the dispute does not affect the performance of the other terms of this Contract, the other terms shall continue to be performed.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 17 Appendix**

The following attachments and other attachments confirmed by both parties shall form an integral part of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Withdrawal application form (format);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notification Letter of Annualized Loan Interest Rate (format);

3.....

**Article 18 Other Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not assign any rights and obligations hereunder to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the Lender is required to entrust other institutions of Bank of China Limited to perform the rights and obligations hereunder due to business needs, or assign the loan business hereunder to other institutions of Bank of China Limited to undertake and manage, the Borrower agrees.Any other institution of Bank of China Limited authorized by the Lender or any other institution of Bank of China Limited undertaking the loan business hereunder shall have the right to exercise all rights hereunder, and shall have the right to file a lawsuit in the court in the name of such institution, submit the dispute to an arbitration institution or apply for enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without affecting other provisions hereof, this Contract shall be legally binding on both parties and their successors and assigns in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unless otherwise agreed, both parties shall designate the domicile set forth in this Contract as the correspondence and contact address and the delivery address confirmed by both parties to be valid. The applicable scope of service address includes the delivery of various notices, contracts and other documents during the performance of the contract between the parties, as well as relevant documents and legal documents in the event of disputes arising from this contract, and the first instance, second instance, retrial and execution procedures after the disputes enter into arbitration and civil proceedings.

In case of any change of the above address, the changing party shall inform the other party of the changed address in writing <u>two</u> working day in advance. In arbitration and civil proceedings, either party shall perform the obligation of serving notice of the change of address to the arbitration institution or the court when the address is changed. If either party fails to perform the notification obligation in the foregoing manner, the address for service confirmed herein shall still be deemed to be the valid address for service.

If the legal document is not actually received by one party due to inaccurate address provided or confirmed by one party, failure to notify the other party and the court in time after the change of the address of service, or the designated receiver's refusal to sign for it, the date of delivery of the legal document shall be deemed as the date of service. In the case of direct service, the date on which the Courier records the information on the acknowledgement of service on the spot shall be deemed as the date of service.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Transactions hereunder shall be conducted on the basis of their respective independent interests. If other parties to the transaction constitute affiliates or associates of the Lender in accordance with relevant laws, regulations and regulatory requirements, none of them will seek to use such affiliates to affect the fairness of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The titles and business names in this Contract are for convenience only and shall not be used to interpret the contents of the terms and the rights and obligations of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. The Lender shall have the right to provide the information related to this Contract and other relevant information of the Borrower to the Financial Credit Information Basic Database and other credit information databases established according to law in accordance with relevant laws, regulations and regulatory provisions for the inquiry and use by properly qualified institutions or individuals according to law. The Lender also has the right, for the purpose of the conclusion and performance of this Contract, to inquire the relevant information of the Borrower through the Basic financial credit Information database and other legally established credit information database.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. In case of legal holidays, the withdrawal date and repayment date shall be postponed to the first working day after the holidays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If the Lender fails to perform this Agreement or fails to perform as agreed herein due to changes in laws, regulations, regulatory provisions or requirements of regulatory authorities, the Lender shall have the right to terminate or alter the performance of this Agreement and the individual Agreements hereunder in accordance with changes in laws, regulations, regulatory provisions or requirements of regulatory authorities. If the Lender is unable to perform or perform as agreed herein due to termination or alteration of this Agreement for such reasons, the Lender shall be exempted from liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. The Borrower may consult and complain about the Contract and the business and charges hereunder through the contact number of the lender listed herein.**

☐ **11. The Borrower and the lender agree to perform compulsory notarization through consultation. Within <u>/</u> working days after the signing of this Contract, the Borrower and the lender shall go to the notary office to perform compulsory notarization. The compulsory notary fee shall be borne by the borrower <u>/</u> and the lender <u>/</u> .If the borrower is a small and micro enterprise, the compulsory notary fee shall be borne by the lender.**

**If the borrower fails to perform or improperly perform the repayment obligations stipulated in this Contract after performing the compulsory notarization in accordance with this Contract, the lender may apply to the notary office for a certificate of execution and apply to the people's court with jurisdiction for compulsory execution, and the borrower is willing to accept compulsory execution.**

(Note: This clause is optional, if not applicable, it needs to be deleted)

**Article 19 Effectiveness of a Contract**

This contract shall come into force upon being signed and sealed by the legal representatives (responsible persons) or authorized signatories of both parties.

This contract is made in duplicate with each party holding the same legal effect.

---

| | | | |
|:---|:---|:---|:---|
| **Borrower:** | | **Lender:** | **Bank of China Limited,Wuxi Branch** |
| **Authorized Signatory:** | | **Authorized signatory:** | |
| **Date of signing:** | **On July 19, 2022** | **Date of signing:** | **On July 19, 2022** |

---

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Attached is the notification letter of the annualized interest rate of the loan**

No :

To: __________/_________ (Borrower)

1. Our bank and your company have signed the Working Capital Loan Contract numbered ______/____.Under the aforementioned contract, our bank, as the lender, provides the loan to your company at an annualized interest rate of ___/___.The annualized rate of interest (☐ simple /☐ compound (optional)) consists of:

(1) The loan interest calculated according to the loan interest rate stipulated in Paragraph 1 of Article 4 of the aforesaid Contract;

(2) All expenses directly related to the loan as stipulated in Article ______/__ of the aforesaid Contract;(Delete if not applicable)

(3) All kinds of charges directly related to the loan agreed in the _______/__ (number: __/___) separately signed by your company and our bank.(Delete if not applicable)

2. This notification letter, as an attachment to the aforementioned contract, constitutes an integral part and has the same legal effect as the aforementioned contract. The provisions of the aforementioned contract shall apply to the matters not agreed herein.

Lender: <u>/</u> 

Authorized signatory: <u>/</u> 

Date of signing: <u>/</u>

## Exhibit 10.11

**Exhibit 10.11**

201911 edition

**Working capital loan contract**

**Bank of Jiangsu Co. LTD**

![](ex10-11_001.jpg)

**Working capital loan Contract**

Contract No. : IJK022220000438

Borrower:Wuxi Huhu Electromechanical Technology Co., LTD

Address: 10-1314 Shenzhen-Hong Kong Metropolitan Plaza, Xinwu District, Wuxi City

**<u>(The Borrower confirms that the above address is the valid address for service of the Lender's notice and legal documents)</u>**

Lender: Bank of Jiangsu Co., LTD. Wuxi New District Branch

Address: 8 Changjiang North Road, Wuxi City, Jiangsu Province

In accordance with relevant national laws and regulations, both parties have reached a consensus to enter into this contract and are willing to comply with it.Abide by all the terms and conditions of this contract.

**Article 1 Terms of Loan**

1. Amount of the loan: (currency) People's currency (in words) three million yuan only.

Ii. Term of Loan: from March 19, 2020 to March 18, 2021 Date.

3. Interest rate on borrowing

1. The interest rate of RMB loan is type A as follows (√):

A. The loan under this contract is at a fixed interest rate, with an annual interest rate of 4.5% (i.e., the last quoted market interest rate (LPR)4.05% for loans over five years in one year/area published one day prior to the signing of this Contract) plus (plus/minus)c45 BP(1).Each BP is equal to 0.01 percentage points) execution), the interest rate remains unchanged during the term of the Contract;

![](ex10-11_001.jpg)

B. The loan under this contract adopts fixed interest rate, and the annual interest rate shall be one day before the date of issuance of the loan.

The last published market quoted interest rate (LPR) for loans with a maturity of over one year/five years (plus/minus)/ BP(1 BP equals 0.01 percentage points), contract.The interest rate remains the same during the effective period.

C. The loan under this Contract adopts the floating interest rate. The interest rate is the last published market quoted interest rate (LPR)/for loans with indefinite one-year/indefinite five-year terms on the day prior to the issuance of the loan (plus/minus)/BP(1 BP is equal to 0.01 percentage points). The contract interest rate shall be adjusted with the latest published LPR for the same period on the day before the adjustment according to the above floating rules. The adjustment period shall be adjusted according to/(month/quarter/half year/year).The whole day is. /

1. One year after the execution of the loan interest rate agreed herein, the Borrower and the Lender may renegotiate the loan interest rate to determine the new execution interest rate, and the parties shall enter into the relevant supplementary agreement after reaching an agreement and obtaining the consent of the guarantor. Until the execution of the supplementary agreement, the parties shall remain at the interest rate agreed herein

And the relevant floating rules shall be executed.

2. Foreign exchange borrowing rates are the first of the following:

A. The loan under this contract shall be at a fixed interest rate of (in words) months / At (LIBOR/HIBOR/SIBOR)+ %, subject to annual rate / %, both valid

The contract interest rate remains unchanged during the term;

B. The loan under this Contract is subject to a floating interest rate of/(in words) months / (LIBOR/HIBOR/SIBOR)+ / %, with an annual interest rate of. / % executed in conjunction with the interest rate.Press/to adjust the day to /.

![](ex10-11_001.jpg)

3 Interest is calculated

Interest is calculated from the date on which the borrower actually draws the money, based on the amount actually withdrawn and the number of days the money is used.

The formula for calculating interest is interest = principal x actual days x daily interest rate.

The daily interest rate is calculated on the basis of 360 days in a year. The conversion formula is: daily interest rate = annual interest rate /360.

4. The purpose of the loan is to purchase cables, etc.

5. Loan notes

The IOU is the loan voucher of the Borrower under this Contract, which is an integral part of this Contract and has the same legal effect as this Contract.Where the Borrower's loan amount, issue date, maturity date, interest rate and other loan contents under this Contract are inconsistent with those recorded in the loan record, the borrower shall borrow the loan

The record of loan record shall prevail.

**Article 2 Interest on loan**

1. Interest shall be calculated from the actual date of issuance of the loan according to the actual amount of the loan and the actual term of the loan.The interest is payable monthly (month/quarter), and the date of settlement is the twentieth of each month (month/quarter end) Day.

If the last repayment date of the borrowed principal is not on the settlement date, the unpaid interest accrues with the original clear.

2. The Borrower shall pay the interest on each settlement date and the Lender may deduct the interest directly from the Borrower's account at the Bank of Jiangsu.In the event that the Borrower fails to pay the interest on time, the Lender may.

![](ex10-11_001.jpg)

5. The Lender has the right to compound interest on unpaid interest.

**Article 3 Penalty interest and compound interest**

If the loan under this contract is overdue or not used according to the purpose agreed herein, the penalty interest shall be adopted

Interest and compound interest shall be calculated in the following methods:

A. If the borrower fails to repay the loan on time when the loan with fixed interest rate is due (including early maturity), the lender has the right to charge a penalty interest of 50% according to the loan interest under this contract from the overdue date;If the borrower fails to use the loan according to the purpose agreed in the contract, the Lender has the right to embezzle the loan from itself

The penalty interest shall be calculated on the basis of the loan interest rate in this contract plus 100 %.

The overdue interest (including the penalty interest) paid by the Borrower shall be compounded at the interest rate of this contract

If the payment is overdue, compound interest will be charged at the penalty interest rate.

B. If the borrower fails to repay the loan on time when the loan with floating interest rate is due (including early maturity), the lender has the right to collect the penalty interest at the current floating interest rate from the overdue date.Where the borrower fails to use the loan according to the purposes agreed in the contract, the lender shall have the right to embezzle the loan from itself

The penalty interest shall be calculated and charged on the basis of the floating interest rate plus / % for the current period.

Interest (including penalty interest) paid late by the Borrower is compounded at the rate of this Contract,

If the loan is overdue, the penalty interest rate will be calculated and compounded.

**Article 4 Conditions for withdrawal**

1. The borrower may withdraw the money only after this Contract becomes effective and the following conditions are met (the Lender agrees Except those exempted):

(1) The Borrower has opened the relevant Renminbi and/or foreign exchange with the Lender or any of its branches An account;

(2) The Borrower has provided the Lender with legal documents proving the legality of the Borrower, including but not limited to the latest annual inspection of the business license, approval certificate, joint venture or cooperation contract, articles of association Etc.;

(3) The Borrower has submitted the Application for Withdrawal and the Letter of Authorization for Payment to the Lender;

(4) The guarantee contract related to the loan has become effective, and/or the mortgage contract and pledge;

The contract has come into force and the mortgage/pledge has been established;

(5) Related to this Contract and required by the Lender, including but not limited to approval, registration and preparation

The documents, insurance, notarization, witness and other procedures have been completed by the finance Department;

(6) The borrower has provided proof to the lender that the borrower's registered capital has been paid in accordance with the law Capital verification report;

(7) According to the provisions of the Borrower's internal authorization system, the Borrower has provided the Lender with the approval of the Borrower's board of directors and/or the shareholders' meeting (general meeting of shareholders) and other competent departments Resolutions and letters of authorization;

(8) The Borrower has provided the Lender with evidence of the purpose of the loan under this Contract Materials;

(9) The Borrower has provided the Lender with a letter of ious bearing the valid seal of the Borrower;

(10) If the Lender deems it necessary, the Borrower shall provide a loan contract, guaranty contract or payment (pledge) the contract shall be notarized with the effect of enforcement;

(11) The Borrower and/or Guarantor have paid all fees payable under this Contract use;

(12) Other withdrawal conditions agreed by the parties: This column is blank

**Article 5 Withdrawal Plan**

1. After meeting all the prerequisites for withdrawal, the borrower may make one (one/split) withdrawal.

For withdrawals, the withdrawal plan is as follows:

Unit (ten thousand yuan, ten thousand dollars, or other): Ten thousand Yuan

---

| | | |
|:---|:---|:---|
| Withdrawal | Withdrawal | Withdrawal |
| Number of periods | Time of withdrawal | Amount of withdrawal |
| First instalment | 2020-03-19 | 300 |
| Issue 2 |  |  |
| Issue 3 |  |  |

---

(The attached table, which is not enough to fill in, shall form an integral part of this Contract)

![](ex10-11_001.jpg)

2. The loan shall be made for the part that has not been used within the aforesaid time and the part that has not been used within the aforesaid time

Party B shall have the right to reject the Borrower's application for withdrawal.

**Article 6 Method of Payment**

1. The loan hereunder shall be paid in the following ways:

1. Method of entrusted payment.The Lender shall, based on the Borrower's withdrawal application and payment authorization, pay the loan funds through the Borrower's account to the Borrower transaction conforming to the purpose agreed herein Object.

2. Autonomous payment method.After the Lender releases the loan funds to the Borrower's account in accordance with the Borrower's withdrawal application, the Borrower shall pay the conforming Contract autonomously according to the plan determined at the time of application

The Borrower's counterparty for the same agreed purpose.3. The borrower undertakes to lend at least as required by the lender. Submit the trade contract, invoice and transfer documents to the Lender within 30 days after the payment is releasedCertificates and other documents.

3. Some entrusted payment methods.If the amount of a single loan exceeds RMB c million (the amount is less than or equal to RMB 10 million, the foreign exchange loan shall be converted into the foreign exchange purchase price published by the borrower on the date of the entrusted payment), the entrusted payment method shall be adopted. The rest can be adopted independently

Method of payment.

![](ex10-11_001.jpg)

2. If the borrower falls under any of the following circumstances, the lender has the right to negotiate with the borrower to supplement the loan payment terms;If consultation fails, the Lender has the right to stop payment of the loan funds or request the loan Early repayment of the loan granted:

1. Declining credit standing;

2. The profitability of main business is not strong, breaking the agreed financial indicators;

3. Failure to pay the loan funds as agreed in the contract;

4. breach the contract and evade the entrusted payment by the lender by breaking the whole into pieces.

5. Failing to comply with the commitments;

6. Other circumstances in violation of the contract.

**Article 7 Repayment**

1. The Borrower shall make repayment from sources including but not limited to revenue.

Ii. Unless otherwise agreed by both parties, the Borrower shall repay this Contract in accordance with the following repayment plan

The following loan:

Unit (ten thousand yuan, ten thousand US dollars or other): Ten thousand Yuan

---

| | | |
|:---|:---|:---|
| Repayment | Repayment | Repayment |
| Number of periods | Repayment time | Amount of repayment |
| First installment | 2021-03-18 | 300 |
| Issue 2 |  |  |
| Issue 3 |  |  |

---

(The attached table is an integral part of this Contract due to insufficient fields in the form)

3. If the above payment date falls on a non-bank business day, it shall be deferred to the next business day.If the borrower needs to extend the maturity of the loan, he shall submit a written application to the lender one month before the maturity of the loan The extension of the term shall be handled after the lender agrees.

4. If the Borrower makes repayment in advance, it shall obtain the consent of the lender, and the original time limit shall be determined And pay the amount/fee for the early repayment.

5. The Borrower irrevocably authorizes the Lender to deduct from the Borrower's account in the Banking System of Jiangsu all the principal and interest of the loan due or due in advance.The amount deducted shall be foreign exchange

The amount shall be converted at the purchase price of foreign exchange published by the lender on the date of deduction.

6. The Borrower shall repay the loan in the second of the following ways:

1. The Borrower shall open with the Lender a special repayment reserve account for the loans under this Contract.During the term of existence of the Loan, the Borrower shall collect the funds collected from the loan in this account and ensure that the balance of the funds in this account shall not be less than (currency). / (in words)/at any time.This account is under the supervision of the lender and cannot be used for settlement. The Lender has the right to directly deduct and repay the principal and interest of the loan in this account. If the amount in the Borrower's account is insufficient, the Lender has the right to directly deduct from the Borrower's account opened in the Banking system of Jiangsu or to the Borrower and the guarantor Recourse.

2. The Borrower shall establish a unit settlement account with the Lender and shall include the cash flow of daily income into the account in proportion to the total amount of credit extended by the Borrower with the Lender to the total amount of credit extended by the Borrower with financial institutions, and the fund balance of the account shall not be less than (currency)/(in words) at any time. /.The borrower shall repay the principal and interest of the current loan in full in the account before each repayment date Funds and authorizes the Lender to directly deduct and repay the principal and interest of the loan in the account.

**Article 8 Representations and Warranties of the Borrower**

1. The principal qualification of the Borrower shall meet the requirements of relevant laws, administrative regulations and normative documents;

2. The Borrower has been fully authorized to sign this Contract and other relevant documents and has the ability Capable of executing and performing its responsibilities;

3. The Borrower's execution of this Contract and other relevant documents and performance of its responsibilities herein will not violate or violate any laws, regulations and normative documents, and shall not constitute a violation under this Contract Covenantal act;

4. The Borrower does not currently have any outstanding litigation, arbitration or administrative penalties, or according to the Borrower is aware of any lawsuit, arbitration or administrative penalty that may be filed against its assets or earnings;

![](ex10-11_001.jpg)

5. The Borrower shall cooperate with the Lender in loan payment management, post-loan management and relevant inspections;

6. The financial statements provided by the Borrower truthfully reflect the borrower's financial situation;

7. The Borrower warrants that all application materials provided by it to the Lender are true, legal and available Valid and free from material omissions and misdirection;

8. The information of the borrower, surety, mortgagor, pledgor, pledge and project in this Contract and guarantee Contract is true, complete and accurate, and no omissions have been made Any material facts;

9. The Borrower irrevocably authorizes Bank of Jiangsu Co., Ltd. to inquire all kinds of information related to the Borrower through, including but not limited to, state administrative organs, government departments, business management agencies, third-party data platforms and network media from the date of execution hereof to the date of termination of the business hereunder.The Borrower understands that it shall provide such non-public information

(b) the possible legal consequences of the information;

10. The Borrower has been fully aware of the Lender's business scope and authorized authority;The Borrower has read all the terms and conditions of this Contract and, at the request of the Borrower, the Lender has made the corresponding terms and conditions of this Contract;The meaning and legal consequences of the terms and conditions of this Contract by the Borrower

The Borrower has fully known and understood that signing this Contract is its true intention.

![](ex10-11_001.jpg)

**Article 9 Rights and Obligations of the Borrower**

1. Rights of the Borrower

1. The Borrower has the right to withdraw and use the loan as agreed herein;

2. With the written consent of the Lender, it has the right to transfer the debts hereunder to a third party Affairs.

Ii. Obligations of the Borrower

1. Documents and materials required by the lender shall be truthfully provided (including account numbers of all opening banks, balance of deposits and loans, utilization of relevant loans, assets, production and business activities,

Internal management and other true information);

2. The financial statements of the previous month shall be provided to the Lender before the 20th day of each month, and the audited financial statements shall be provided to the Lender within 120 days after the end of each fiscal year, in a timely manner Provide its own changes and changes;

3. It shall accept and cooperate with the lender in its use of credit funds and related production procedures Investigation, supervision and inspection of operations and financial activities;

4. Open relevant settlement accounts in Wuxi Xinzhi (Branch) Bank of Jiangsu Co., LTD., and handle domestic and foreign exchange settlement, settlement and sale at the Lender or its branches at least in accordance with the proportion of the total balance of borrowings under this contract and borrowings of the Borrower from other financial institutions Other intermediary business;

5. The loan shall be used in accordance with the purpose and manner agreed in this contract;

![](ex10-11_001.jpg)

6. The principal and interest of the loan shall be repaid in full and on time as agreed in this Contract;

7. Prior to foreign investment, substantial increase in debt financing, merger, division, equity transfer, asset transfer and other major matters, it shall notify the lender in writing in advance and obtain the written consent of the lender, and fulfill the principal and interest of the loan under this Contract as required by the lender Safeguard measures for the repayment of other related expenses;

8. A material adverse event occurs to the Borrower or guarantor affecting his solvency/guarantee ability The Lender shall be promptly notified of such event;

9. The total amount of security for the liabilities of a third party shall not exceed the net assets of the borrower Times;

10. If the Borrower is a Group customer, it shall, within 10 days from the date of the occurrence of the affiliated transaction whose amount is more than 10% of the Borrower's net assets, submit a written report to the Lender, including but not limited to the relevant relationship of the parties to the transaction, the items and nature of the transaction, the transaction amount or corresponding Proportion and pricing basis (including transactions with no amount or only a nominal amount);

11. Insure its property in relation to the loan as required by the lender,

And identify the lender as the beneficiary of the insurance interest;

12. If this contract has been notarized by a notary office and is enforceable, the Borrower agrees to be executed The people's court shall enforce the contract and waive the right of defense.

**Article 10 Rights and obligations of the lender**

1. Rights of the Lender

1. The right to request the Borrower to provide information in relation to the loan hereunder;

![](ex10-11_001.jpg)

2. The right to require the Borrower to repay the principal and interest of the loan on schedule or in advance;

3. Have the right to know the borrower's production and operation, financial activities, business activities and repayment schedule Draw and have the right to extract or copy from accounting books, business records and other relevant materials;

4. Have the right to supervise the Borrower's use of the loan in accordance with the purpose and manner agreed herein;

5. Have the right to deduct directly from the Borrower's account the principal and interest of the loan when it is received or matured in advance Interest and other related charges;

6. If the Borrower fails to perform or violates its obligations under this Contract, the Lender shall have the right to change the payment method of the loan and stop issuing the loan that has not been drawn by the Borrower in accordance with this Contract And/or require the Borrower to repay the loan in advance or declare the entire loan to be due in advance;

7. The Lender shall have the right to withdraw the loan in advance according to the borrower's withdrawal of funds;

8. The Lender shall have the right to require the Borrower to pay off the loan under this Contract in advance in the event that the Borrower has major events such as property right transfer, system change, reduction of registered capital or assignment of creditor's rights and debts The Lender shall pay the principal and interest and all other relevant expenses, or require the Borrower to pay off all debts hereunder

![](ex10-11_001.jpg)

The business is placed in the name of the assignee that the Lender agrees to accept, or the Borrower is required to provide the lender with a connection

Other security measures accepted.

2. Obligations of the Lender

1. The Lender shall grant the loan to the Borrower on the terms and conditions set forth herein;

2. The Lender shall keep confidential the financial condition and production and operation of the Borrower, provided that Except as otherwise provided by laws, administrative regulations and normative documents.

**Article 11 Event of Breach**

1. During the term of this Contract, any of the following circumstances shall constitute an event of breach hereunder:

1. The Borrower fails to perform the representations, warranties and obligations set forth in Article 8 and Article 9 hereof, including failing to pay the principal and interest of the loan and other obligations due under the Loan Contract on the due date Payment;

2. The Borrower fails to fully and on time perform any of its obligations under this Contract and other relevant documents.If such acts of the Borrower can be corrected, the Borrower fails to correct such acts and make the loan available within 20 days from the date of the written notice of correction issued by the Lender the extent to which the Lender is satisfied;

3. The borrower voluntarily or involuntarily ceases business, liquidates, reorganizes, dissolves or goes bankrupt;

4. The Borrower provides false materials or conceals important operating financial facts;

![](ex10-11_001.jpg)

5. The Borrower exceeds the financial targets set forth in Article 18 hereof;

6. Any financial loss or deterioration of the Borrower's financial condition may affect the security of the loan or loan

The borrower intends to evade and cancel the bank's creditor's rights;

7. The borrower's loan project plan is cancelled or cannot be implemented;

8. The borrower takes advantage of the false contract between the borrower and the related party to extract the lender or other banks .Bank funds or credit;

9. The borrower has committed or is suspected of operating in violation of laws and regulations;

10. The Borrower is divided, merged, major merger, acquisition, reorganization, reorganization, etc.;

11. The Borrower breaches any other contract entered into with the Lender or any other third party, or Any dispute arising out of such contract resulting or likely to result in litigation or arbitration;

12. The controlling shareholder of the Borrower transfers its shares of the Borrower, or major events occur to the controlling shareholder, actual controller, legal representative or senior management of the Borrower, including but not limited to the occurrence or suspected violation of laws and regulations, litigation, arbitration or administrative punishment

Serious deterioration of circumstances, financial condition, declaration of bankruptcy or dissolution of the Borrower;

13. Default of the guarantor, Including, but not limited to, false information provided by the guarantor, breach of other contracts signed by the Guarantor with the Lender or other third parties, or litigation or arbitration arising out of disputes arising out of such contracts, forced or voluntary suspension of business, major business failure, occurrence of or suspected violation of laws and regulations, evasion of bank claims, merger and/or acquisition and reorganization, Any other circumstances which may impair its ability to guarantee;

![](ex10-11_001.jpg)

14. Other loan contracts or security contracts entered into between the Borrower and the Lender Event of default;

15. Other circumstances that endanger or are likely to endanger the security of the Lender's loans.

2. In the event of default, the Lender will, depending on the nature and extent of the default, take one of the following actions or A number of disposal methods:

1. Require the borrower to correct the event of default within a time limit and take remedial measures;

2. Change the payment method of the loans not mentioned herein;

3. Stop the borrower from continuing to draw, cancel the undrawn loan line and declare the loan under this contract If the principal and interest of the loan are due in advance, the loan shall be withdrawn immediately;

4. Declare that all the principal and interest under other loan contracts signed between the borrower and the lender are advanced When the loan is due, the whole loan shall be withdrawn immediately;

5. freeze part or all of the deposit of the borrower, and have the right to deduct money from the deposit account of the Borrower to repay the principal and interest of the loan under this Contract and pay relevant fees. The Borrower agrees and authorizes the loan The borrower purchases foreign exchange to repay the principal and interest of the foreign exchange loan;

6. Claim guaranty liability or dispose of collateral from the surety;

7. File a lawsuit in court to recover the loan from the borrower and the guarantor through judicial procedures Interest, expenses and other losses;

![](ex10-11_001.jpg)

8. If this contract has been notarized by a notary office and is enforceable, it may be applied to the people's court Please enforce the contract.

**Article 12 Fees**

1. Expenses related to this Contract include but not limited to hand credit investigation, notarization, witness, registration, etc .The expenses incurred shall be borne by each party according to the law;

2. All expenses incurred by the Lender to collect the principal and interest of the loan due to the Borrower's failure to repay the principal and interest of the loan on time, including but not limited to notice fee, delivery fee, appraisal fee, attorney's fee, legal cost, travel fee, appraisal fee, auction fee, property preservation fee and enforcement fee, shall be borne by the Borrower bear.

**Article 13 Assignment of Debts**

1. Without the written consent of the Lender, the Borrower shall not transfer any of its rights hereunder, The Borrower shall not assign any of its obligations hereunder to any third party without the Lender's written consent.

2. With the written consent of the Lender, the Borrower assigns its rights and obligations hereunder To a third party, which shall unconditionally comply with all the terms and conditions of this Contract.

**Article 14 Amendment, termination and exercise of Rights under this Contract**

1. This Contract shall be modified or terminated in writing upon mutual agreement of both parties;

2. During the term hereof, the Lender's indulgence, indulgence or delay in exercising the Lender's rights under this Contract for any breach or delay of the Borrower shall not prejudice, affect or limit all the Lender's rights as a creditor under this Contract and relevant laws, administrative regulations and normative documents. Nor shall it be deemed as the Lender's permission or approval of any breach of this Agreement, nor shall it be deemed as a waiver by the Lender of any existing or future breach the right to take action;

3. If any provision of this Contract becomes invalid or partially invalid for any reason, the Borrower shall still perform all repayment obligations.In the event of such occurrence, the Lender shall have the right to terminate this Contract and may terminate it. That is, to claim from the Borrower the principal and interest of the loan and other relevant amounts under this Contract;

4. In case of any change in the Borrower's domicile, correspondence address, contact telephone number, business scope, legal representative and other matters, the Borrower shall guarantee to give a written notice within 10 days after the change of relevant matters the Lender;

5. Any notices, documents, etc. between the parties hereto in connection with this Contract shall be in writing Send;

6. If the Borrower hereby irrevocably undertakes that it has breached its obligations under this Contract, the Lender may submit the information of the debtor's breach of trust to the credit investigation institution and banking association, and authorize the relevant banking association to provide the information of the borrower's breach of trust to the banking industry in an appropriate manner

Share the information among institutions and even publicize it to the society.

The borrower voluntarily accepts the joint loss of the lender and other banking financial institutions, such as the adjustment or suspension of credit granting, the suspension of opening new settlement accounts, and the suspension of the issuance of new credit cards by its legal representative

Letter, punishment and rights protection measures.

**Article 15 The Borrower agrees that the creditor's right under this contract shall be granted compulsory enforcement effect after it has been notarized by the contract. If the Borrower fails to perform or fails to fully perform its obligations under the contract, the Lender shall**

It may apply to the people's court having jurisdiction for compulsory execution.

![](ex10-11_001.jpg)

**Article 16 Notice and service**

The Borrower hereby irrevocably undertakes as follows:

1. The address at the beginning of this Contract is the Lender's notice and court action under this Contract.The valid address for service of the instrument.

2. The Borrower designates the following persons as the agent to sign the Lender's notice and court action documents (i.e., the designated receiver), including;The company, the shareholders of the company, the staff of the company, the property management personnel of the community and the office building where the above address of delivery is located, the doorman and the security guard shall apply to the Borrower .When the service is delivered by the unit.

3. The above address and the scope of application of the designated recipient;And shall apply to the service of the general knowledge and notice prescribed by law under this Contract and to the civil proceedings after the Lender has sued the Borrower. Service of litigation documents in the first instance procedure, the second instance procedure, the execution procedure and the special procedure.

4. In the event of a change of address to be served or to the nominated recipient, the Borrower will notify the Lender and the Court in writing within 10 business days prior to the change and after the written notice reaches the Lender and the Court Effective.

5. If the address for service provided or confirmed by the Borrower is incorrect or the address for service is changed and the Borrower fails to promptly inform the Lender and the court, the Borrower or the designated receiver of any of the reasons mentioned in the refusal to sign for receipt, the notice or litigation document cannot actually be received by the Borrower, the date of return of the notice or litigation document shall be deemed as the date of service;If the notice is served directly, the date on which the notice is served by the Lender and the information is noted on the notice by the staff of the Lender shall be deemed as the date of service or the litigation document

The date on which the circumstances are clearly marked on the return certificate of service by the court on the spot shall be deemed as the date of service.

6. If arbitration is applicable as stipulated in this Contract, this clause shall also apply to the delivery of arbitration documents

**Article 17 Application of law and dispute settlement**

The conclusion, validity, interpretation, performance and dispute settlement of this Contract shall be governed by the laws of the People's Republic of China.In case of any dispute arising from the performance of this Contract, both parties may negotiate or mediate.negotiation or if mediation fails, press down. Resolve the dispute in the manner specified in Item A:

A. File an action in the people's court of the place where the Lender is located;

B. Apply to the/arbitration Commission for arbitration.

C. File a lawsuit with the people's court in the place where the contract is signed.

**Article 18 Other matters agreed upon by both parties:**

1. The loan under this contract is granted under the Comprehensive Credit Contract for Maximum Amount No. / This contract is the valid annex for the specific credit granted under the credit limit.

2. Interest and fees other than the principal hereunder shall be tax inclusive.

**3. If the Lender is required to entrust other institutions of the Bank of Jiangsu to perform its rights and obligations hereunder due to business needs, the Borrower agrees.Other Bank of Jiangsu institutions authorized by the Lender shall have the right to exercise all rights under this Contract and shall have the right to bring disputes under this Contract to court Bring a lawsuit or submit it to an arbitration institution for adjudication.**

4. Agreement on the borrower's financial indicators: this column is blank

5.5. 1 Below the blank white

Matters not covered herein shall be governed by relevant laws, administrative regulations, normative documents and Jiangsu

Interpret or handle relevant regulations of the bank.

**Article 19 Validity and invalidity of a contract**

1. This Contract shall be signed (signed or sealed) by the legal or authorized representatives of both parties and added

This Contract shall come into force after it is sealed with the official seal.

2. This Contract shall be lost after the Borrower has repaid all the principal and interest of the loan and all other expenses

Effect.

**Article 20 This Contract is made in duplicate, with one held by the lender, the Borrower and/or each**

Each copy shall have the same legal effect.

![](ex10-11_002.jpg)

201409 Edition

**Letter to the Guest**

Dear Customers,

According to relevant regulations of China Banking Regulatory Commission and Bank of Jiangsu Co., LTD., Bank of Jiangsu Co., Ltd. prohibits its employees from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Borrow money from customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Provide guarantee, verification or matchmaking for private loans;

Take part-time jobs in enterprises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrowing transitional funds from customers' accounts, or using my own account for clients' transitional funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Keep cards, coupons and passwords on behalf of customers;

6, accept or ask for improper benefits.

To protect your rights and interests, Bank of Jiangsu Co., Ltd. solemnly reminds you as follows:

**All the above matters are prohibited by the decree of Bank of Jiangsu Co., LTD. Any employee of Bank of Jiangsu Co., Ltd. to engage in the above actions for whatever reason is his personal behavior and does not represent the will of Bank of Jiangsu Co., LTD. Please be cautious.**

At the same time, the governor of Bank of Jiangsu Co., Ltd. requests the Borrower to supervise the employees of Bank of Jiangsu Co., LTD. If any of the above is found to be an employee of Bank of Jiangsu Co., LTD., the Borrower is requested to contact Bank of Jiangsu Co., LTD. 's special email address jsyhjcs@126.com or call the Supervision Office of Bank of Jiangsu Co., LTD. (Tel: 025-58587112) and Bank of Jiangsu Co., Ltd. will keep such reports strictly confidential.

In addition, any nominal fee or any form of deposit charged by any other institution to the Borrower shall have nothing to do with Bank of Jiangsu Co., LTD., and all legal consequences and liabilities arising therefrom shall have nothing to do with Bank of Jiangsu Co., LTD.

![](ex10-11_003.jpg)

Bank of Jiangsu Co., LTD

I (our company) confirm that I am aware of and have carefully read all the contents of this Letter to Customers, understand and accept the risks presented by your bank, and actively assist your bank in supervising the behavior of your employees.

![](ex10-11_004.jpg)

Customer's Signature:

![](ex10-11_001.jpg)

## Exhibit 10.12

**Exhibit 10.12**

201911 edition

**Working capital loan contract**

**Bank of Jiangsu Co. LTD**

![](ex10-12_001.jpg)

**Working capital loan Contract**

Contract No. : JK022221000619

Borrower:WuxiHuhu Electromechanical Technology Co., LTD

Address: 10-1314 Shenzhen-Hong Kong Metropolitan Plaza, Xinwu District, Wuxi City

**<u>(The Borrower confirms that the above address is the valid address for service of the Lender's notice and legal documents)</u>**

Lender: Bank of Jiangsu Co., LTD. Wuxi New District Branch

Address: 8 Changjiang North Road, Wuxi City, Jiangsu Province

In accordance with relevant national laws and regulations, both parties have reached a consensus to enter into this contract and are willing to comply with it.Abide by all the terms and conditions of this contract.

**Article 1 Terms of Loan**

1. Amount of the loan: (currency) People's currency (in words) three million yuan only.

2. Term of loan: from March 22, 2021 to March 15, 2022

3. Interest rate on borrowing

1. The interest rate of RMB loan is type A as follows (√):

A. The loan under this contract is at a fixed interest rate, with an annual interest rate of 4.5% (i.e., the last quoted market interest rate (LPR)3.85% for loans over five years in one year/area published one day prior to the signing of this Contract) plus (plus/minus)55 BP(1).Each BP is equal to 0.01 percentage points) execution), the interest rate remains unchanged during the term of the Contract;

![](ex10-12_001.jpg)

B. The loan under this contract adopts fixed interest rate, and the annual interest rate shall be one day before the date of issuance of the loan.

The last published market quoted interest rate (LPR) for loans with a maturity of over one year/five years (plus/minus)/ BP(1 BP equals 0.01 percentage points), contract.The interest rate remains the same during the effective period.

C. The loan under this Contract adopts the floating interest rate. The interest rate is the last published market quoted interest rate (LPR)/for loans with indefinite one-year/indefinite five-year terms on the day prior to the issuance of the loan (plus/minus)/BP(1 BP is equal to 0.01 percentage points). The contract interest rate shall be adjusted with the latest published LPR for the same period on the day before the adjustment according to the above floating rules. The adjustment period shall be adjusted according to/(month/quarter/half year/year).The whole day is. /

1. One year after the execution of the loan interest rate agreed herein, the Borrower and the Lender may renegotiate the loan interest rate to determine the new execution interest rate, and the parties shall enter into the relevant supplementary agreement after reaching an agreement and obtaining the consent of the guarantor. Until the execution of the supplementary agreement, the parties shall remain at the interest rate agreed herein

And the relevant floating rules shall be executed.

2. Foreign exchange borrowing rates are the first of the following:

A. The loan under this contract shall be at a fixed interest rate of (in words) months / At (LIBOR/HIBOR/SIBOR)+ %, subject to annual rate / %, both valid

The contract interest rate remains unchanged during the term;

B. The loan under this Contract is subject to a floating interest rate of/(in words) months / (LIBOR/HIBOR/SIBOR)+ / %, with an annual interest rate of. / % executed in conjunction with the interest rate.Press/to adjust the day to /.

3 Interest is calculated

Interest is calculated from the date on which the borrower actually draws the money, based on the amount actually withdrawn and the number of days the money is used.

The formula for calculating interest is interest = principal x actual days x daily interest rate.

The daily interest rate is calculated on the basis of 360 days in a year. The conversion formula is: daily interest rate = annual interest rate /360.

4. The purpose of borrowing money is to buy trough bridge, etc.

![](ex10-12_001.jpg)

5. Loan notes：

The IOU is the loan voucher of the Borrower under this Contract, which is an integral part of this Contract and has the same legal effect as this Contract.Where the Borrower's loan amount, issue date, maturity date, interest rate and other loan contents under this Contract are inconsistent with those recorded in the loan record, the borrower shall borrow the loan

The record of loan record shall prevail.

**Article 2 Interest on loan**

1. Interest shall be calculated from the actual date of issuance of the loan according to the actual amount of the loan and the actual term of the loan.The interest is payable monthly (month/quarter), and the date of settlement is the twentieth of each month (month/quarter end) Day.

If the last repayment date of the borrowed principal is not on the settlement date, the unpaid interest accrues with the original clear.

2. The Borrower shall pay the interest on each settlement date and the Lender may deduct the interest directly from the Borrower's account at the Bank of Jiangsu.In the event that the Borrower fails to pay the interest on time, the Lender may.

5. The Lender has the right to compound interest on unpaid interest.

**Article 3 Penalty interest and compound interest**

If the loan under this contract is overdue or not used according to the purpose agreed herein, the penalty interest shall be adopted

Interest and compound interest shall be calculated in the following methods:

A. If the borrower fails to repay the loan on time when the loan with fixed interest rate is due (including early maturity), the lender has the right to charge a penalty interest of 50% according to the loan interest under this contract from the overdue date;If the borrower fails to use the loan according to the purpose agreed in the contract, the Lender has the right to embezzle the loan from itself

The penalty interest shall be calculated on the basis of the loan interest rate in this contract plus 100 %.

The overdue interest (including the penalty interest) paid by the Borrower shall be compounded at the interest rate of this contract

If the payment is overdue, compound interest will be charged at the penalty interest rate.

B. If the borrower fails to repay the loan on time when the loan with floating interest rate is due (including early maturity), the lender has the right to collect the penalty interest at the current floating interest rate from the overdue date.Where the borrower fails to use the loan according to the purposes agreed in the contract, the lender shall have the right to embezzle the loan from itself

The penalty interest shall be calculated and charged on the basis of the floating interest rate plus / % for the current period.

Interest (including penalty interest) paid late by the Borrower is compounded at the rate of this Contract,

If the loan is overdue, the penalty interest rate will be calculated and compounded.

**Article 4 Conditions for withdrawal**

1. The borrower may withdraw the money only after this Contract becomes effective and the following conditions are met (the Lender agrees

Except those exempted):

(1) The Borrower has opened the relevant Renminbi and/or foreign exchange with the Lender or any of its branches An account;

(2) The Borrower has provided the Lender with legal documents proving the legality of the Borrower, including but not limited to the latest annual inspection of the business license, approval certificate, joint venture or cooperation contract, articles of association Etc.;

(3) The Borrower has submitted the Application for Withdrawal and the Letter of Authorization for Payment to the Lender;

(4) The guarantee contract related to the loan has become effective, and/or the mortgage contract and pledge;

The contract has come into force and the mortgage/pledge has been established;

(5) Related to this Contract and required by the Lender, including but not limited to approval, registration and preparation

The documents, insurance, notarization, witness and other procedures have been completed by the finance Department;

(6) The borrower has provided proof to the lender that the borrower's registered capital has been paid in accordance with the law Capital verification report;

(7) According to the provisions of the Borrower's internal authorization system, the Borrower has provided the Lender with the approval of the Borrower's board of directors and/or the shareholders' meeting (general meeting of shareholders) and other competent departments Resolutions and letters of authorization;

(8) The Borrower has provided the Lender with evidence of the purpose of the loan under this Contract Materials;

(9) The Borrower has provided the Lender with a letter of ious bearing the valid seal of the Borrower;

(10) If the Lender deems it necessary, the Borrower shall provide a loan contract, guaranty contract or payment (pledge) the contract shall be notarized with the effect of enforcement;

(11) The Borrower and/or Guarantor have paid all fees payable under this Contract use;

(12) Other withdrawal conditions agreed by the parties: This column is blank

**Article 5 Withdrawal Plan**

1. After meeting all the prerequisites for withdrawal, the borrower may make one (one/split) withdrawal.

For withdrawals, the withdrawal plan is as follows:

Unit (ten thousand yuan, ten thousand dollars, or other): Ten thousand Yuan

---

| | | |
|:---|:---|:---|
| | Withdrawal | |
| Number of <br> periods | Time of <br> withdrawal | Amount of <br> withdrawal |
| First instalment | 2021-03-22 | 300 |
| Issue 2 |  |  |
| Issue 3 |  |  |

---

(The attached table, which is not enough to fill in, shall form an integral part of this Contract)

2. The loan shall be made for the part that has not been used within the aforesaid time and the part that has not been used within the aforesaid time

Party B shall have the right to reject the Borrower's application for withdrawal.

**Article 6 Method of Payment**

1. The loan hereunder shall be paid in the following ways:

1. Method of entrusted payment.The Lender shall, based on the Borrower's withdrawal application and payment authorization, pay the loan funds through the Borrower's account to the Borrower transaction conforming to the purpose agreed herein Object.

2. Autonomous payment method.After the Lender releases the loan funds to the Borrower's account in accordance with the Borrower's withdrawal application, the Borrower shall pay the conforming Contract autonomously according to the plan determined at the time of application

The Borrower's counterparty for the same agreed purpose.3. The borrower undertakes to lend at least as required by the lender. Submit the trade contract, invoice and transfer documents to the Lender within 30 days after the payment is releasedCertificates and other documents.

3. Some entrusted payment methods.If the amount of a single loan exceeds RMB c million (the amount is less than or equal to RMB 10 million, the foreign exchange loan shall be converted into the foreign exchange purchase price published by the borrower on the date of the entrusted payment), the entrusted payment method shall be adopted. The rest can be adopted independently

Method of payment.

![](ex10-12_001.jpg)

2. If the borrower falls under any of the following circumstances, the lender has the right to negotiate with the borrower to supplement the loan payment terms;If consultation fails, the Lender has the right to stop payment of the loan funds or request the loan

Early repayment of the loan granted:

1. Declining credit standing;

2. The profitability of main business is not strong, breaking the agreed financial indicators;

3. Failure to pay the loan funds as agreed in the contract;

4. breach the contract and evade the entrusted payment by the lender by breaking the whole into pieces.

5. Failing to comply with the commitments;

6. Other circumstances in violation of the contract.

**Article 7 Repayment**

1. The Borrower shall make repayment from sources including but not limited to revenue.

Ii. Unless otherwise agreed by both parties, the Borrower shall repay this Contract in accordance with the following repayment plan

The following loan:

Unit (ten thousand yuan, ten thousand US dollars or other): Ten thousand Yuan

---

| | | |
|:---|:---|:---|
| | Repayment | |
| Number of <br> periods | Repayment time | Amount of<br> repayment |
| First installment | 2022-03-15 | 300 |
| Issue 2 |  |  |
| Issue 3 |  |  |

---

(The attached table is an integral part of this Contract due to insufficient fields in the form)

3. If the above payment date falls on a non-bank business day, it shall be deferred to the next business day.If the borrower needs to extend the maturity of the loan, he shall submit a written application to the lender one month before the maturity of the loan The extension of the term shall be handled after the lender agrees.

4. If the Borrower makes repayment in advance, it shall obtain the consent of the lender, and the original time limit shall be determined And pay the amount/fee for the early repayment.

5. The Borrower irrevocably authorizes the Lender to deduct from the Borrower's account in the Banking System of Jiangsu all the principal and interest of the loan due or due in advance.The amount deducted shall be foreign exchange

The amount shall be converted at the purchase price of foreign exchange published by the lender on the date of deduction.

6. The Borrower shall repay the loan in the second of the following ways:

1. The Borrower shall open with the Lender a special repayment reserve account for the loans under this Contract.During the term of existence of the Loan, the Borrower shall collect the funds collected from the loan in this account and ensure that the balance of the funds in this account shall not be less than (currency). / (in words)/at any time.This account is under the supervision of the lender and cannot be used for settlement. The Lender has the right to directly deduct and repay the principal and interest of the loan in this account. If the amount in the Borrower's account is insufficient, the Lender has the right to directly deduct from the Borrower's account opened in the Banking system of Jiangsu or to the Borrower and the guarantor Recourse.

2. The Borrower shall establish a unit settlement account with the Lender and shall include the cash flow of daily income into the account in proportion to the total amount of credit extended by the Borrower with the Lender to the total amount of credit extended by the Borrower with financial institutions, and the fund balance of the account shall not be less than (currency)/(in words) at any time. /.The borrower shall repay the principal and interest of the current loan in full in the account before each repayment date Funds and authorizes the Lender to directly deduct and repay the principal and interest of the loan in the account.

**Article 8 Representations and Warranties of the Borrower**

1. The principal qualification of the Borrower shall meet the requirements of relevant laws, administrative regulations and normative documents;

2. The Borrower has been fully authorized to sign this Contract and other relevant documents and has the ability Capable of executing and performing its responsibilities;

3. The Borrower's execution of this Contract and other relevant documents and performance of its responsibilities herein will not violate or violate any laws, regulations and normative documents, and shall not constitute a violation under this Contract Covenantal act;

4. The Borrower does not currently have any outstanding litigation, arbitration or administrative penalties, or according to the Borrower is aware of any lawsuit, arbitration or administrative penalty that may be filed against its assets or earnings;

![](ex10-12_001.jpg)

5. The Borrower shall cooperate with the Lender in loan payment management, post-loan management and relevant inspections;

6. The financial statements provided by the Borrower truthfully reflect the borrower's financial situation;

7. The Borrower warrants that all application materials provided by it to the Lender are true, legal and available Valid and free from material omissions and misdirection;

8. The information of the borrower, surety, mortgagor, pledgor, pledge and project in this Contract and guarantee Contract is true, complete and accurate, and no omissions have been made Any material facts;

9. The Borrower irrevocably authorizes Bank of Jiangsu Co., Ltd. to inquire all kinds of information related to the Borrower through, including but not limited to, state administrative organs, government departments, business management agencies, third-party data platforms and network media from the date of execution hereof to the date of termination of the business hereunder.The Borrower understands that it shall provide such non-public information

(b) the possible legal consequences of the information;

10. The Borrower has been fully aware of the Lender's business scope and authorized authority;The Borrower has read all the terms and conditions of this Contract and, at the request of the Borrower, the Lender has made the corresponding terms and conditions of this Contract;The meaning and legal consequences of the terms and conditions of this Contract by the Borrower

The Borrower has fully known and understood that signing this Contract is its true intention.

![](ex10-12_001.jpg)

**Article 9 Rights and Obligations of the Borrower**

1. Rights of the Borrower

1. The Borrower has the right to withdraw and use the loan as agreed herein;

2. With the written consent of the Lender, it has the right to transfer the debts hereunder to a third party Affairs.

Ii. Obligations of the Borrower

1. Documents and materials required by the lender shall be truthfully provided (including account numbers of all opening banks, balance of deposits and loans, utilization of relevant loans, assets, production and business activities,

Internal management and other true information);

2. The financial statements of the previous month shall be provided to the Lender before the 20th day of each month, and the audited financial statements shall be provided to the Lender within 120 days after the end of each fiscal year, in a timely manner Provide its own changes and changes;

3. It shall accept and cooperate with the lender in its use of credit funds and related production procedures Investigation, supervision and inspection of operations and financial activities;

4. Open relevant settlement accounts in Wuxi Xinzhi (Branch) Bank of Jiangsu Co., LTD., and handle domestic and foreign exchange settlement, settlement and sale at the Lender or its branches at least in accordance with the proportion of the total balance of borrowings under this contract and borrowings of the Borrower from other financial institutions Other intermediary business;

5. The loan shall be used in accordance with the purpose and manner agreed in this contract;

6. The principal and interest of the loan shall be repaid in full and on time as agreed in this Contract;

7. Prior to foreign investment, substantial increase in debt financing, merger, division, equity transfer, asset transfer and other major matters, it shall notify the lender in writing in advance and obtain the written consent of the lender, and fulfill the principal and interest of the loan under this Contract as required by the lender Safeguard measures for the repayment of other related expenses;

8. A material adverse event occurs to the Borrower or guarantor affecting his solvency/guarantee ability The Lender shall be promptly notified of such event;

9. The total amount of security for the liabilities of a third party shall not exceed the net assets of the borrower Times;

10. If the Borrower is a Group customer, it shall, within 10 days from the date of the occurrence of the affiliated transaction whose amount is more than 10% of the Borrower's net assets, submit a written report to the Lender, including but not limited to the relevant relationship of the parties to the transaction, the items and nature of the transaction, the transaction amount or corresponding Proportion and pricing basis (including transactions with no amount or only a nominal amount);

11. Insure its property in relation to the loan as required by the lender,

And identify the lender as the beneficiary of the insurance interest;

12. If this contract has been notarized by a notary office and is enforceable, the Borrower agrees to be executed The people's court shall enforce the contract and waive the right of defense.

![](ex10-12_001.jpg)

**Article 10 Rights and obligations of the lender**

1. Rights of the Lender

1. The right to request the Borrower to provide information in relation to the loan hereunder;

2. The right to require the Borrower to repay the principal and interest of the loan on schedule or in advance;

3. Have the right to know the borrower's production and operation, financial activities, business activities and repayment schedule Draw and have the right to extract or copy from accounting books, business records and other relevant materials;

4. Have the right to supervise the Borrower's use of the loan in accordance with the purpose and manner agreed herein;

5. Have the right to deduct directly from the Borrower's account the principal and interest of the loan when it is received or matured in advance Interest and other related charges;

6. If the Borrower fails to perform or violates its obligations under this Contract, the Lender shall have the right to change the payment method of the loan and stop issuing the loan that has not been drawn by the Borrower in accordance with this Contract And/or require the Borrower to repay the loan in advance or declare the entire loan to be due in advance;

7. The Lender shall have the right to withdraw the loan in advance according to the borrower's withdrawal of funds;

8. The Lender shall have the right to require the Borrower to pay off the loan under this Contract in advance in the event that the Borrower has major events such as property right transfer, system change, reduction of registered capital or assignment of creditor's rights and debts The Lender shall pay the principal and interest and all other relevant expenses, or require the Borrower to pay off all debts hereunder

![](ex10-12_001.jpg)

The business is placed in the name of the assignee that the Lender agrees to accept, or the Borrower is required to provide the lender with a connection

Other security measures accepted.

2. Obligations of the Lender

1. The Lender shall grant the loan to the Borrower on the terms and conditions set forth herein;

2. The Lender shall keep confidential the financial condition and production and operation of the Borrower, provided that Except as otherwise provided by laws, administrative regulations and normative documents.

**Article 11 Event of Breach**

1. During the term of this Contract, any of the following circumstances shall constitute an event of breach hereunder:

1. The Borrower fails to perform the representations, warranties and obligations set forth in Article 8 and Article 9 hereof, including failing to pay the principal and interest of the loan and other obligations due under the Loan Contract on the due date Payment;

2. The Borrower fails to fully and on time perform any of its obligations under this Contract and other relevant documents.If such acts of the Borrower can be corrected, the Borrower fails to correct such acts and make the loan available within 20 days from the date of the written notice of correction issued by the Lender the extent to which the Lender is satisfied;

3. The borrower voluntarily or involuntarily ceases business, liquidates, reorganizes, dissolves or goes bankrupt;

4. The Borrower provides false materials or conceals important operating financial facts;

5. The Borrower exceeds the financial targets set forth in Article 18 hereof;

6. Any financial loss or deterioration of the Borrower's financial condition may affect the security of the loan or loan

The borrower intends to evade and cancel the bank's creditor's rights;

7. The borrower's loan project plan is cancelled or cannot be implemented;

8. The borrower takes advantage of the false contract between the borrower and the related party to extract the lender or other banks .Bank funds or credit;

9. The borrower has committed or is suspected of operating in violation of laws and regulations;

10. The Borrower is divided, merged, major merger, acquisition, reorganization, reorganization, etc.;

11. The Borrower breaches any other contract entered into with the Lender or any other third party, or Any dispute arising out of such contract resulting or likely to result in litigation or arbitration;

12. The controlling shareholder of the Borrower transfers its shares of the Borrower, or major events occur to the controlling shareholder, actual controller, legal representative or senior management of the Borrower, including but not limited to the occurrence or suspected violation of laws and regulations, litigation, arbitration or administrative punishment

Serious deterioration of circumstances, financial condition, declaration of bankruptcy or dissolution of the Borrower;

![](ex10-12_001.jpg)

13. Default of the guarantor, Including, but not limited to, false information provided by the guarantor, breach of other contracts signed by the Guarantor with the Lender or other third parties, or litigation or arbitration arising out of disputes arising out of such contracts, forced or voluntary suspension of business, major business failure, occurrence of or suspected violation of laws and regulations, evasion of bank claims, merger and/or acquisition and reorganization, Any other circumstances which may impair its ability to guarantee;

14. Other loan contracts or security contracts entered into between the Borrower and the Lender Event of default;

15. Other circumstances that endanger or are likely to endanger the security of the Lender's loans.

2. In the event of default, the Lender will, depending on the nature and extent of the default, take one of the following actions or A number of disposal methods:

1. Require the borrower to correct the event of default within a time limit and take remedial measures;

2. Change the payment method of the loans not mentioned herein;

3. Stop the borrower from continuing to draw, cancel the undrawn loan line and declare the loan under this contract If the principal and interest of the loan are due in advance, the loan shall be withdrawn immediately;

4. Declare that all the principal and interest under other loan contracts signed between the borrower and the lender are advanced When the loan is due, the whole loan shall be withdrawn immediately;

5. freeze part or all of the deposit of the borrower, and have the right to deduct money from the deposit account of the Borrower to repay the principal and interest of the loan under this Contract and pay relevant fees. The Borrower agrees and authorizes the loan The borrower purchases foreign exchange to repay the principal and interest of the foreign exchange loan;

6. Claim guaranty liability or dispose of collateral from the surety;

7. File a lawsuit in court to recover the loan from the borrower and the guarantor through judicial procedures Interest, expenses and other losses;

8. If this contract has been notarized by a notary office and is enforceable, it may be applied to the people's court Please enforce the contract.

![](ex10-12_001.jpg)

**Article 12 Fees**

1. Expenses related to this Contract include but not limited to hand credit investigation, notarization, witness, registration, etc. The expenses incurred shall be borne by each party according to the law;

2. All expenses incurred by the Lender to collect the principal and interest of the loan due to the Borrower's failure to repay the principal and interest of the loan on time, including but not limited to notice fee, delivery fee, appraisal fee, attorney's fee, legal cost, travel fee, appraisal fee, auction fee, property preservation fee and enforcement fee, shall be borne by the Borrower bear.

**Article 13 Assignment of Debts**

1. Without the written consent of the Lender, the Borrower shall not transfer any of its rights hereunder, The Borrower shall not assign any of its obligations hereunder to any third party without the Lender's written consent.

2. With the written consent of the Lender, the Borrower assigns its rights and obligations hereunder To a third party, which shall unconditionally comply with all the terms and conditions of this Contract.

**Article 14 Amendment, termination and exercise of Rights under this Contract**

1. This Contract shall be modified or terminated in writing upon mutual agreement of both parties;

2. During the term hereof, the Lender's indulgence, indulgence or delay in exercising the Lender's rights under this Contract for any breach or delay of the Borrower shall not prejudice, affect or limit all the Lender's rights as a creditor under this Contract and relevant laws, administrative regulations and normative documents. Nor shall it be deemed as the Lender's permission or approval of any breach of this Agreement, nor shall it be deemed as a waiver by the Lender of any existing or future breach the right to take action;

3. If any provision of this Contract becomes invalid or partially invalid for any reason, the Borrower shall still perform all repayment obligations.In the event of such occurrence, the Lender shall have the right to terminate this Contract and may terminate it. That is, to claim from the Borrower the principal and interest of the loan and other relevant amounts under this Contract;

4. In case of any change in the Borrower's domicile, correspondence address, contact telephone number, business scope, legal representative and other matters, the Borrower shall guarantee to give a written notice within 10 days after the change of relevant matters the Lender;

5. Any notices, documents, etc. between the parties hereto in connection with this Contract shall be in writing Send;

6. If the Borrower hereby irrevocably undertakes that it has breached its obligations under this Contract, the Lender may submit the information of the debtor's breach of trust to the credit investigation institution and banking association, and authorize the relevant banking association to provide the information of the borrower's breach of trust to the banking industry in an appropriate manner

Share the information among institutions and even publicize it to the society.

The borrower voluntarily accepts the joint loss of the lender and other banking financial institutions, such as the adjustment or suspension of credit granting, the suspension of opening new settlement accounts, and the suspension of the issuance of new credit cards by its legal representative

Letter, punishment and rights protection measures.

**Article 15 The Borrower agrees that the creditor's right under this contract shall be granted compulsory enforcement effect after it has been notarized by the contract. If the Borrower fails to perform or fails to fully perform its obligations under the contract, the Lender shall**

It may apply to the people's court having jurisdiction for compulsory execution.

**Article 16 Notice and service**

The Borrower hereby irrevocably undertakes as follows:

1. The address at the beginning of this Contract is the Lender's notice and court action under this Contract.The valid address for service of the instrument.

2. The Borrower designates the following persons as the agent to sign the Lender's notice and court action documents (i.e., the designated receiver), including;The company, the shareholders of the company, the staff of the company, the property management personnel of the community and the office building where the above address of delivery is located, the doorman and the security guard shall apply to the Borrower .When the service is delivered by the unit.

3. The above address and the scope of application of the designated recipient;And shall apply to the service of the general knowledge and notice prescribed by law under this Contract and to the civil proceedings after the Lender has sued the Borrower. Service of litigation documents in the first instance procedure, the second instance procedure, the execution procedure and the special procedure.

4. In the event of a change of address to be served or to the nominated recipient, the Borrower will notify the Lender and the Court in writing within 10 business days prior to the change and after the written notice reaches the Lender and the Court Effective.

5. If the address for service provided or confirmed by the Borrower is incorrect or the address for service is changed and the Borrower fails to promptly inform the Lender and the court, the Borrower or the designated receiver of any of the reasons mentioned in the refusal to sign for receipt, the notice or litigation document cannot actually be received by the Borrower, the date of return of the notice or litigation document shall be deemed as the date of service;If the notice is served directly, the date on which the notice is served by the Lender and the information is noted on the notice by the staff of the Lender shall be deemed as the date of service or the litigation document

The date on which the circumstances are clearly marked on the return certificate of service by the court on the spot shall be deemed as the date of service.

6. If arbitration is applicable as stipulated in this Contract, this clause shall also apply to the delivery of arbitration documents

**Article 17 Application of law and dispute settlement**

The conclusion, validity, interpretation, performance and dispute settlement of this Contract shall be governed by the laws of the People's Republic of China.In case of any dispute arising from the performance of this Contract, both parties may negotiate or mediate.negotiation or if mediation fails, press down. Resolve the dispute in the manner specified in Item A:

A. File an action in the people's court of the place where the Lender is located;

B. Apply to the/arbitration Commission for arbitration.

C. File a lawsuit with the people's court in the place where the contract is signed.

**Article 18 Other matters agreed upon by both parties:**

1. The loan under this contract is granted under the Comprehensive Credit Contract for Maximum Amount No. / This contract is the valid annex for the specific credit granted under the credit limit.

2. Interest and fees other than the principal hereunder shall be tax inclusive.

**3. If the Lender is required to entrust other institutions of the Bank of Jiangsu to perform its rights and obligations hereunder due to business needs, the Borrower agrees.Other Bank of Jiangsu institutions authorized by the Lender shall have the right to exercise all rights under this Contract and shall have the right to bring disputes under this Contract to court Bring a lawsuit or submit it to an arbitration institution for adjudication.**

4. Agreement on the borrower's financial indicators: this column is blank

5.5. 1 Below the blank white

Matters not covered herein shall be governed by relevant laws, administrative regulations, normative documents and Jiangsu Interpret or handle relevant regulations of the bank.

**Article 19 Validity and invalidity of a contract**

1. This Contract shall be signed (signed or sealed) by the legal or authorized representatives of both parties and added

This Contract shall come into force after it is sealed with the official seal.

2. This Contract shall be lost after the Borrower has repaid all the principal and interest of the loan and all other expenses

Effect.

**Article 20 This Contract is made in duplicate, with one held by the lender, the Borrower and/or each**

Each copy shall have the same legal effect.

---

| | |
|:---|:---|
| Borrower (official seal) : | Lender (official seal) : |
| ![](ex10-12_002.jpg) | ![](ex10-12_003.jpg) |

---

---

| | |
|:---|:---|
| **(Signature section below, no text)** | Legal representative or authorized <br> representative (signature and seal): |
| ![](ex10-12_004.jpg) | ![](ex10-12_005.jpg) |

---

Date of signing the contract:)31) March 22, 2021 <br> Place of execution of the Contract: wuxi <u>Xinwu District, City</u>

202001 Edition

**Letter to the Guest**

Dear Customers,

According to relevant regulations of China Banking Regulatory Commission and Bank of Jiangsu Co., LTD., Bank of Jiangsu Co., Ltd. prohibits its employees from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Borrow money from customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Provide guarantee, verification or matchmaking for private loans;

Take part-time jobs in enterprises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrowing transitional funds from customers' accounts, or using my own account for clients' transitional funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Keep cards, coupons and passwords on behalf of customers;

6, accept or ask for improper benefits.

To protect your rights and interests, Bank of Jiangsu Co., Ltd. solemnly reminds you as follows:

**All the above matters are prohibited by the decree of Bank of Jiangsu Co., LTD. Any employee of Bank of Jiangsu Co., Ltd. to engage in the above actions for whatever reason is his personal behavior and does not represent the will of Bank of Jiangsu Co., LTD. Please be cautious.**

At the same time, the governor of Bank of Jiangsu Co., Ltd. requests the Borrower to supervise the employees of Bank of Jiangsu Co., LTD. If any of the above is found to be an employee of Bank of Jiangsu Co., LTD., the Borrower is requested to contact Bank of Jiangsu Co., LTD. 's special email address jsyhjcs@126.com or call the Supervision Office of Bank of Jiangsu Co., LTD. (Tel: 025-58587112) and Bank of Jiangsu Co., Ltd. will keep such reports strictly confidential.

In addition, any nominal fee or any form of deposit charged by any other institution to the Borrower shall have nothing to do with Bank of Jiangsu Co., LTD., and all legal consequences and liabilities arising therefrom shall have nothing to do with Bank of Jiangsu Co., LTD.

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| |
|:---|
| Bank of Jiangsu Co., LTD |
| ![](ex10-12_003.jpg) |

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I (our company) confirm that I am aware of and have carefully read all the contents of this Letter to Customers, understand and accept the risks presented by your bank, and actively assist your bank in supervising the behavior of your employees.

---

| |
|:---|
| Customer's Signature: |
| ![](ex10-12_002.jpg) |

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![](ex10-12_001.jpg)

## Exhibit 10.13

**Exhibit 10.13**

201911 edition

**Working capital loan contract**

**Bank of Jiangsu Co. LTD**

**Working capital loan Contract**

Contract No. : JK022221000815

Borrower:wuxi Huhu Electromechanical Technology Co., LTD

Address: 3-1208 Tian 'an Wisdom City, 228 Linghu Avenue, Xinwu District, Wuxi City

**<u>(The Borrower confirms that the above address is the valid address for service of the Lender's notice and legal documents)</u>**

Lender: Bank of Jiangsu Co., LTD. Wuxi New District Branch

Address: 8 Changjiang North Road, Wuxi City, Jiangsu Province

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In accordance with relevant national laws and regulations, both parties have reached a consensus to enter into this contract and are willing to comply with it

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Abide by all the terms and conditions of this contract.

**Article 1 Terms of the loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Amount of the loan: (currency) People's currency (in words) two million yuan only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Term of Loan: from April 19, 2021 to April 18, 2022

<u>Date.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Interest rate on borrowing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The interest rate of RMB loan is type A as follows (√):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The interest rate of the loan under this contract is fixed, with an annual interest rate of 4.4% (i.e

**The last published loan market with a five-year maturity and above one year/district on the day prior to the signing of this Contract**

Quoted interest rate (LPR) 3.8 5% plus (plus/minus) s55 BP(1

Each BP is equal to 0.01 percentage points) execution), the interest rate remains unchanged during the term of the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The loan under this contract adopts fixed interest rate, and the annual interest rate shall be one day before the date of issuance of the loan

The last published market quoted interest rate (LPR) for loans with a maturity of over one year/five years

<u>/ (plus/minus)/BP(1 BP equals 0.01 percentage points), contract</u>

The interest rate remains the same during the effective period.

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| | |
|:---|:---|
| 2 | ![](ex10-13_003.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The loan under this Contract adopts the floating interest rate, which is the last published interest rate (LPR)/for loans with a maturity of more than five years on the day prior to the issuance of the loan (plus/minus)/BP(1 BP is equal to 0.01 percentage points), the contract interest rate with the latest published loan market quoted interest rate (LPR) the day before the adjustment in accordance with the above floating rules, the adjustment period is. / (month/quarter/half year/year) adjustment, adjustment

The whole day is /.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. One year after the execution of the loan interest rate agreed herein, the Borrower and the Lender may renegotiate the loan interest rate to determine the new execution interest rate, and the parties shall enter into the relevant supplementary agreement after reaching an agreement and obtaining the consent of the guarantor. Before the execution of the supplementary agreement, the parties shall remain at the interest rate agreed herein

And the relevant floating rules shall be executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The interest rate on foreign exchange borrowings is listed below. Kinds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The loan under this contract is at A fixed interest rate of (large) months L

(LIBOR/HIBOR/SIBOR)+ %, holding annual interest rate / %, both valid

The contract interest rate remains unchanged during the term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The loan under this contract is subject to a floating interest rate of/(write) months

(LIBOR/HIBOR/SIBOR)+ / %, with an annual interest rate of./ % executed in conjunction with the interest rate

Press, / and adjust the day to /.

3 Interest is calculated

Interest is calculated from the date on which the borrower actually draws the money, based on the amount actually withdrawn and the number of days the money is used.

The formula for calculating interest is interest = principal x actual days x daily interest rate.

The daily interest rate is calculated on the basis of 360 days in a year. The conversion formula is: daily interest rate = annual interest rate /360

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The purpose of the loan is. Buy aluminum alloy trough frame, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Loan Notes

The IOU is the loan voucher of the Borrower under this Contract, which is an integral part of this Contract and has the same legal effect as this Contract.Where the Borrower's loan amount, issue date, maturity date, interest rate and other loan contents under this Contract are inconsistent with those recorded in the loan record, the borrower shall borrow the loan

The record of loan record shall prevail.

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| | |
|:---|:---|
| 3 | ![](ex10-13_003.jpg) |

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**Article 2 Interest on loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The interest shall be calculated from the actual date of issuance of the loan according to the actual amount of the loan and the actual term of the loan.The interest is payable monthly (month/quarter), and the date of settlement is the twentieth of each month (month/quarter end)

Day.

If the last repayment date of the borrowed principal is not on the settlement date, the unpaid interest accrues with the original

Clear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower shall pay the interest on each settlement date and the Lender may deduct the interest directly from the Borrower's account at the Bank of Jiangsu.In the event that the Borrower fails to pay the interest on time, the Lender may

5. The Lender has the right to compound interest on unpaid interest.

**Article 3 Penalty interest and compound interest**

If the loan under this contract is overdue or not used according to the purpose agreed herein, the penalty interest shall be adopted

Interest and compound interest shall be calculated in Method A as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. If the borrower fails to repay the loan on time when the loan with fixed interest rate is due (including early maturity), the lender has the right to collect penalty interest by adding 50% to the loan interest rate hereunder from the overdue date;If the borrower fails to use the loan according to the purpose agreed in the contract, the Lender has the right to embezzle the loan from itself

The penalty interest of 100 % shall be charged on the basis of the loan interest rate hereof from the date of this contract.

The overdue interest (including the penalty interest) paid by the Borrower shall be compounded at the rate of this contract If the payment is overdue, compound interest will be charged at the penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If the borrower fails to repay the loan on time when the loan with floating interest rate is due (including early maturity), the lender has the right to collect the penalty interest at the current floating interest rate from the overdue date.Where the borrower fails to use the loan according to the purposes agreed in the contract, the lender shall have the right to embezzle the loan from itself

The penalty interest shall be calculated and charged at the floating interest rate of the current period. / %.

Interest (including penalty interest) paid late by the Borrower is compounded at the rate of this Contract, If the loan is overdue, the penalty interest rate will be calculated and compounded.

**Article 4 Conditions for withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may withdraw the money when this Contract becomes effective and the following conditions are met (the Lender agrees Except for those exempted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower has opened the relevant Renminbi and/or foreign exchange with the Lender or any of its branches

An account;

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| | |
|:---|:---|
| 4 | ![](ex10-13_003.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Borrower has provided the Lender with legal documents proving the legality of the Borrower, including but not limited to the latest annual inspection of the business license, approval certificate, joint venture or cooperation contract, articles of association

Etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Borrower has submitted the Application for Withdrawal and the Letter of Authorization for Payment to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the guarantee contract related to the loan has become effective, and/or the mortgage contract and pledge

The contract has come into force and the mortgage/pledge has been established;;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Related to this Contract and required by the Lender, including but not limited to approval, registration and preparation

Documents, insurance, notarization, witness and other procedures have all been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower has provided proof to the lender that the borrower's registered capital has been paid in accordance with the law

Capital verification report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) According to the provisions of the Borrower's internal authorization system, the Borrower has provided the Lender with the approval of the Borrower's board of directors and/or the shareholders' meeting (general meeting of shareholders) and other competent departments Resolutions and letters of authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Borrower has provided the Lender with evidence of the purpose of the loan under this Contract

Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) the Borrower has provided the Lender with a letter of ious bearing the valid seal of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) if the Lender deems it necessary, the Borrower shall provide a loan contract, guaranty contract or payment

(pledge) the contract shall be notarized with the effect of enforcement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The Borrower and/or Guarantor have paid all fees payable under this Contract

Use;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) Other withdrawal conditions agreed by the parties: This column is blank

**Article 5 Withdrawal Plan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. After meeting all the prerequisites for withdrawal, the borrower may make one (one/split) withdrawal.

For withdrawals, the withdrawal plan is as follows:

Units (ten thousand, ten thousand dollars, or other); Ten thousand yuan

---

| | | | |
|:---|:---|:---|:---|
| withdrawal | withdrawal | withdrawal | withdrawal |
| Number of<br> periods | Time of<br> withdrawal | Amount of<br> withdrawal | Amount of<br> withdrawal |
| First instalment | 2021-04-19 |  | 200 |
| Issue 2 |  |  |  |
| Issue 3 |  |  |  |

---

(The attached table, which is not enough to fill in, shall form an integral part of this Contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The loan shall be made for the part that has not been used within the aforesaid time and the part that has not been used within the aforesaid time

Party B shall have the right to reject the Borrower's application for withdrawal.

**Article 6 Method of Payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The loan hereunder shall be paid in the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Method of entrusted payment.The Lender shall, based on the Borrower's withdrawal application and payment authorization, pay the loan funds through the Borrower's account to the Borrower transaction conforming to the purpose agreed herein

Object.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Autonomous payment method.After the Lender releases the loan funds to the Borrower's account in accordance with the Borrower's withdrawal application, the Borrower shall pay the conforming Contract autonomously according to the plan determined at the time of application

The Borrower's counterparty for the same agreed purpose.3. The borrower undertakes to lend at least as required by the lender

Submit the trade contract, invoice and transfer documents to the Lender within 30 days after the payment is released

Certificates and other documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Some entrusted payment methods.Where a single amount exceeds RMB 10,000 yuan (the amount is less than or equal to RMB 10 million yuan, the foreign exchange loan shall be converted into the foreign exchange purchase price published by the borrower on the date of the entrusted payment), the entrusted payment method shall be adopted. The rest may be adopted independently

Method of payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the borrower falls under any of the following circumstances, the lender has the right to negotiate with the borrower to supplement the loan payment terms;If consultation fails, the Lender has the right to stop payment of the loan funds or request the loan

Early repayment of the loan granted:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Declining credit standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The profitability of main business is not strong, breaking the agreed financial indicators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Failure to pay the loan funds as agreed in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. breach the contract and evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Failing to comply with the commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Other circumstances in violation of the contract.

**Article 7 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall make repayment from sources including but not limited to revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Unless otherwise agreed by both parties, the Borrower shall repay this

Contract in accordance with the following repayment plan

The following loan:

Unit (ten thousand yuan, ten thousand US dollars or other): Ten thousand Yuan

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| | | | |
|:---|:---|:---|:---|
| Repayment | Repayment | Repayment | Repayment |
| Number of periods | Repayment time | Amount of repayment | Amount of repayment |
| First installment | 2022-04-18 |  | 200 |
| Issue 2 |  |  |  |
| Issue 3 |  |  |  |

---

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| | |
|:---|:---|
| 6 | ![](ex10-13_003.jpg) |

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If the above payment date falls on a non-bank business day, it shall be deferred to the next business day.If the borrower needs to extend the maturity of the loan, he shall submit a written application to the lender one month before the maturity of the loan

The extension of the term shall be handled after the lender agrees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the Borrower makes repayment in advance, it shall obtain the consent of the lender, and the original time limit shall be determined

And pay the amount/fee for the early repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower irrevocably authorizes the Lender to deduct from the Borrower's account in the Banking System of Jiangsu all the principal and interest of the loan due or due in advance.The amount deducted shall be foreign exchange

The amount shall be converted at the purchase price of foreign exchange published by the lender on the date of deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Borrower shall repay the loan in the second of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall open with the Lender a special repayment reserve account for the loans under this Contract

Account.During the term of existence of the loan, the Borrower shall collect the funds collected from the loan in this account and ensure that the balance of the funds in this account shall not be less than (currency)/(large writing)/at any time. This account is under the supervision of the lender and cannot be used for settlement. The lender has the right to directly deduct and return the principal and interest of the loan in this account. If the amount in the account of the borrower is insufficient, the lender has the right

Direct debit from the Borrower's account in the Banking system of Jiangsu or to the Borrower and the guarantor

Recourse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower shall establish a unit settlement account with the Lender and shall include the cash flow of daily income into the account according to the proportion of the total amount of credit extended by the Borrower to the total amount of credit extended by the Borrower to the financial institution, and the balance of funds in the account shall not be less than (currency)/(written in bulk) at any time. <u>/.</u>The borrower shall repay the principal and interest of the current loan in full in the account before each repayment date

Funds and authorizes the Lender to directly deduct and repay the principal and interest of the loan in the account.

**Article 8 Representations and Warranties of the Borrower**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The principal qualification of the Borrower shall meet the requirements of relevant laws, administrative regulations and normative documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has been fully authorized to sign this Contract and other relevant documents and has the ability

Capable of executing and performing its responsibilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower's execution of this Contract and other relevant documents and performance of its responsibilities herein will not violate or violate any laws, regulations and normative documents, and shall not constitute a violation under this

Contract

Covenantal act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower does not currently have any outstanding litigation, arbitration or administrative penalties, or according to the Borrower

Is aware of any lawsuit, arbitration or administrative penalty that may be filed against its assets or earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower shall cooperate with the Lender in loan payment management, post-loan management and relevant inspections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The financial statements provided by the Borrower truthfully reflect the borrower's financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Borrower warrants that all application materials provided by it to the Lender are true, legal and available

Valid and free from material omissions and misdirection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The information of the borrower, surety, mortgagor, pledgor, pledge and project in this Contract and guarantee Contract is true, complete and accurate, and no omissions have been made

Any material facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower irrevocably authorizes Bank of Jiangsu Co., Ltd. to inquire all kinds of information related to the Borrower through, including but not limited to, state administrative organs, government departments, business management agencies, third-party data platforms and network media from the date of execution hereof to the date of termination of the business hereunder.The Borrower understands that it shall provide such non-public information

(b) the possible legal consequences of the information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. The Borrower has been fully aware of the Lender's business scope and authorized authority;The Borrower has read all the terms and conditions of this Contract and, at the request of the Borrower, the Lender has made the corresponding terms and conditions of this Contract;The meaning and legal consequences of the terms and conditions of this Contract by the Borrower The Borrower has fully known and understood that signing this Contract is its true intention.**

**Article 9 Rights and Obligations of the Borrower**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Rights of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower has the right to withdraw and use the loan as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. With the written consent of the Lender, it has the right to transfer the debts hereunder to a third party

Affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Obligations of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Documents and materials required by the lender shall be truthfully provided (including account numbers of all opening banks, balance of deposits and loans, utilization of relevant loans, assets, production and business activities,

Internal management and other true information);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The financial statements of the previous month shall be provided to the Lender before the 20th day of each month, and the audited financial statements shall be provided to the Lender within 120 days after the end of each fiscal year, in a timely manner

Provide its own changes and changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. It shall accept and cooperate with the lender in its use of credit funds and related production procedures

Investigation, supervision and inspection of operations and financial activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. At the Bank of Jiangsu. The New Division (Branch) Bank of Wuxi Co., LTD shall open relevant settlement accounts and handle domestic and foreign exchange settlement, settlement and sale with the Lender or its branches at least in accordance with the proportion of the total balance of borrowings under this Contract and borrowings of the Borrower from other financial institutions Other intermediary business;

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| | |
|:---|:---|
| 8 | ![](ex10-13_003.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The loan shall be used in accordance with the purpose and manner agreed in this contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The principal and interest of the loan shall be repaid in full and on time as agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Prior to foreign investment, substantial increase in debt financing, merger, division, equity transfer, asset transfer and other major matters, it shall notify the lender in writing in advance and obtain the written consent of the lender, and fulfill the principal and interest of the loan under this Contract as required by the lender

Safeguard measures for the repayment of other related expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. A material adverse event occurs to the Borrower or guarantor affecting his solvency/guarantee ability

The Lender shall be promptly notified of such event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Where the total amount of guaranty for the liabilities of a third party shall not exceed the net assets of the borrower, <u>5</u> Times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. If the Borrower is a Group customer, it shall, within 10 days from the date of the occurrence of the affiliated transaction whose amount is more than 10% of the Borrower's net assets, submit a written report to the Lender, including but not limited to the relevant relationship of the parties to the transaction, the items and nature of the transaction, the transaction amount or corresponding

Proportion and pricing basis (including transactions with no amount or only a nominal amount);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Insure its property in relation to the loan as required by the lender, And identify the lender as the beneficiary of the insurance interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If this contract has been notarized by a notary office and is enforceable, the Borrower agrees to be executed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The people's court shall enforce the contract and waive the right of defense.

**Article 10 Rights and obligations of the lender**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Rights of the Lender

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The right to request the Borrower to provide information in relation to the loan hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The right to require the Borrower to repay the principal and interest of the loan on schedule or in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Have the right to know the borrower's production and operation, financial activities, business activities and repayment schedule

Draw and have the right to extract or copy from accounting books, business records and other relevant materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Have the right to supervise the Borrower's use of the loan in accordance with the purpose and manner agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Have the right to deduct directly from the Borrower's account the principal and interest of the loan when it is received or matured in advance

Interest and other related charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If the Borrower fails to perform or violates its obligations under this Contract, the Lender shall have the right to change the payment method of the loan and stop issuing the loan that has not been drawn by the Borrower in accordance with this Contract

And/or require the Borrower to repay the loan in advance or declare the entire loan to be due in advance;

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| | |
|:---|:---|
| 9 | ![](ex10-13_003.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The Lender shall have the right to withdraw the loan in advance according to the borrower's withdrawal of funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Lender shall have the right to require the Borrower to pay off the loan under this Contract in advance in the event that the Borrower has major events such as property right transfer, system change, reduction of registered capital or assignment of creditor's rights and debts

The Lender shall pay the principal and interest and all other relevant expenses, or require the Borrower to pay off all debts hereunder

The business is placed in the name of the assignee that the Lender agrees to accept, or the Borrower is required to provide the lender with a connection

Other security measures accepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Obligations of the Lender

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Lender shall grant the loan to the Borrower on the terms and conditions set forth herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall keep confidential the financial condition and production and operation of the Borrower, provided that

Except as otherwise provided by laws, administrative regulations and normative documents.

**Article 11 Event of Breach**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. During the term of this Contract, any of the following circumstances shall constitute an event of breach hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower fails to perform the representations, warranties and obligations set forth in Article 8 and Article 9 hereof, including failing to pay the principal and interest of the loan and other obligations due under the Loan Contract on the due date

Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to fully and on time perform any of its obligations under this Contract and other relevant documents.If such acts of the Borrower can be corrected, the Borrower fails to correct such acts and make the loan available within 20 days from the date of the written notice of correction issued by the Lender

The extent to which the Lender is satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. the borrower voluntarily or involuntarily ceases business, liquidates, reorganizes, dissolves or goes bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower provides false materials or conceals important operating financial facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower exceeds the financial targets set forth in Article 18 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Any financial loss or deterioration of the Borrower's financial condition may affect the security of the loan or loan

The borrower intends to evade and cancel the bank's creditor's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The borrower's loan project plan is cancelled or cannot be implemented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The borrower takes advantage of the false contract between the borrower and the related party to extract the lender or other banks

Bank funds or credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The borrower has committed or is suspected of operating in violation of laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower is divided, merged, major merger, acquisition, reorganization, reorganization, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The Borrower breaches any other contract entered into with the Lender or any other third party, or

Any dispute arising out of such contract resulting or likely to result in litigation or arbitration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The controlling shareholder of the Borrower transfers its shares of the Borrower, or major events occur to the controlling shareholder, actual controller, legal representative or senior management of the Borrower, including but not limited to the occurrence or suspected violation of laws and regulations, litigation, arbitration or administrative punishment

Serious deterioration of circumstances, financial condition, declaration of bankruptcy or dissolution of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Default of the guarantor, Including, but not limited to, false information provided by the guarantor, breach of other contracts signed by the Guarantor with the Lender or other third parties, or litigation or arbitration arising out of disputes arising out of such contracts, forced or voluntary suspension of business, major business failure, occurrence of or suspected violation of laws and regulations, evasion of bank claims, merger and/or acquisition and reorganization,

Any other circumstances which may impair its ability to guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Other loan contracts or security contracts entered into between the Borrower and the Lender

Event of default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Other circumstances that endanger or are likely to endanger the security of the Lender's loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event of default, the Lender will, depending on the nature and extent of the default, take one of the following actions or

A number of disposal methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the borrower to correct the event of default within a time limit and take remedial measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Change the payment method of the loans not mentioned herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Stop the borrower from continuing to draw, cancel the undrawn loan line and declare the loan under this contract

If the principal and interest of the loan are due in advance, the loan shall be withdrawn immediately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Declare that all the principal and interest under other loan contracts signed between the borrower and the lender are advanced

When the loan is due, the whole loan shall be withdrawn immediately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. freeze part or all of the deposit of the borrower, and have the right to deduct money from the deposit account of the Borrower to repay the principal and interest of the loan under this Contract and pay relevant fees. The Borrower agrees and authorizes the loan

The borrower purchases foreign exchange to repay the principal and interest of the foreign exchange loan;

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| | |
|:---|:---|
| 11 | ![](ex10-13_003.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Claim guaranty liability or dispose of collateral from the surety;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. File a lawsuit in court to recover the loan from the borrower and the guarantor through judicial procedures

Interest, expenses and other losses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If this contract has been notarized by a notary office and is enforceable, it may be applied to the people's court

Please enforce the contract.

**Article 12 Fees**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Expenses related to this Contract include but are not limited to credit investigation, notarization, witness, registration, etc

The expenses incurred shall be borne by each party in accordance with the law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All expenses incurred by the Lender to collect the principal and interest of the loan due to the Borrower's failure to repay the principal and interest of the loan on time, including but not limited to notice fee, delivery fee, appraisal fee, attorney's fee, legal cost, travel fee, appraisal fee, auction fee, property preservation fee and enforcement fee, shall be borne by the Borrower

Bear.

**Article 13 Assignment of Debts**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not transfer any of its rights hereunder,

The Borrower shall not assign any of its obligations hereunder to any third party without the Lender's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. With the written consent of the Lender, the Borrower assigns its rights and obligations hereunder

To a third party, which shall unconditionally comply with all the terms and conditions of this Contract.

**Article 14 Amendment, termination and exercise of Rights under this Contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract shall be modified or terminated in writing upon mutual agreement of both parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the term hereof, the Lender's indulgence, indulgence or delay in exercising the Lender's rights under this Contract for any breach or delay of the Borrower shall not prejudice, affect or limit all the Lender's rights as a creditor under this Contract and relevant laws, administrative regulations and normative documents. Nor shall it be deemed as the Lender's permission or approval of any breach of this Agreement, nor shall it be deemed as a waiver by the Lender of any existing or future breach

The right to take action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If any provision of this Contract becomes invalid or partially invalid for any reason, the Borrower shall still perform all repayment obligations.In the event of such occurrence, the Lender shall have the right to terminate this Contract and may terminate it

That is, to claim from the Borrower the principal and interest of the loan and other relevant amounts under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In case of any change in the Borrower's domicile, correspondence address, contact telephone number, business scope, legal representative and other matters, the Borrower shall guarantee to give a written notice within 10 days after the change of relevant matters

The Lender;

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| | |
|:---|:---|
| 12 | ![](ex10-13_003.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Any notices, documents, etc. between the parties hereto in connection with this Contract shall be in writing

Send;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If the Borrower hereby irrevocably undertakes that it has breached its obligations under this Contract, the Lender may submit the information of the debtor's breach of trust to the credit investigation institution and banking association, and authorize the relevant banking association to provide the information of the borrower's breach of trust to the banking industry in an appropriate manner

Share the information among institutions and even publicize it to the society.

The borrower voluntarily accepts the joint loss of the lender and other banking financial institutions, such as the adjustment or suspension of credit granting, the suspension of opening new settlement accounts, and the suspension of the issuance of new credit cards by its legal representative

Letter, punishment and rights protection measures.

**Article 15 The Borrower agrees that the creditor's right under this contract shall be granted compulsory enforcement effect after it has been notarized by the contract. If the Borrower fails to perform or fails to fully perform its obligations under the contract, the Lender shall**

It may apply to the people's court having jurisdiction for compulsory execution.

**Article 16 Notice and service**

The Borrower hereby irrevocably undertakes as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The address at the beginning of this Contract is the Lender's notice and court action under this Contract

The valid address for service of the instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower designates the following persons as the agent to sign the Lender's notice and court action documents (i.e., the designated receiver), including: the unit, the shareholders of the unit, the staff of the unit, the property management personnel of the community and office building where the above address is delivered, the doorman, the security guard, applicable to the

When the addressee is a unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above address and the scope of application of the designated recipient;And shall apply to the service of the general knowledge and notice prescribed by law under this Contract and to the civil proceedings after the Lender has sued the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Service of litigation documents in the first instance procedure, the second instance procedure, the execution procedure and the special procedure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In the event of a change of address to be served or to the nominated recipient, the Borrower will notify the Lender and the Court in writing within 10 business days prior to the change and after the written notice reaches the Lender and the Court

Effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the address for service provided or confirmed by the Borrower is incorrect or the address for service is changed and the Borrower fails to promptly inform the Lender and the court, the Borrower or the designated receiver of any of the reasons mentioned in the refusal to sign for receipt, the notice or litigation document cannot actually be received by the Borrower, the date of return of the notice or litigation document shall be deemed as the date of service;If the notice is served directly, the date on which the notice is served by the Lender and the information is noted on the notice by the staff of the Lender shall be deemed as the date of service or the litigation document

The date on which the circumstances are clearly marked on the return certificate of service by the court on the spot shall be deemed as the date of service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If arbitration is applicable as stipulated in this Contract, this clause shall also apply to the delivery of arbitration documents A.

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|:---|:---|
| 13 | ![](ex10-13_003.jpg) |

---

**Article 17 Application of law and dispute settlement**

The conclusion, validity, interpretation, performance and dispute settlement of this Contract shall be governed by the laws of the People's Republic of China.In case of any dispute arising from the performance of this Contract, both parties may negotiate or mediate.negotiation

If mediation fails, the dispute shall be settled in the manner set out in Item A below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. File a lawsuit in the people's court of the place where the lender is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Apply to the/arbitration Commission for arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. File a lawsuit with the people's court in the place where the contract is signed.

**Article 18 Other matters agreed upon by both parties:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The loan under this contract is granted under the Comprehensive Credit Contract for Maximum Amount No. /

This contract is the valid annex for the specific credit granted under the credit limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Interest and fees other than the principal hereunder shall be tax inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. If the Lender is required to entrust other institutions of the Bank of Jiangsu to perform its rights and obligations hereunder due to business needs, the Borrower agrees. Other Bank of Jiangsu institutions authorized by the Lender shall have the right to exercise all rights under this Contract and shall have the right to bring disputes under this Contract to court**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Bring a lawsuit or submit it to an arbitration institution for adjudication.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrower's financial indicators Agreement: This column is blank

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Below the blank white

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Matters not covered herein shall be governed by relevant laws, administrative regulations, normative documents and Jiangsu

Interpret or handle relevant regulations of the bank.

**Article 19 Validity and invalidity of a contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract shall be signed (signed or sealed) by the legal representatives or authorized representatives of both parties and added

This Contract shall come into force after it is sealed with the official seal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Contract shall be lost after the Borrower has repaid all the principal and interest of the loan and all other expenses

Effect.

**Article 20 This Contract is made in two counterparts, with one held by each lender, Borrower and/or**

Each copy shall have the same legal effect.

---

| |
|:---|
| **(Signature Office below, no text)** |
| ![](ex10-13_001.jpg) |

---

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| | |
|:---|:---|
| Borrower (official seal): Lender (official seal): | ![](ex10-13_001.jpg) |

---

---

| | |
|:---|:---|
| ![](ex10-13_004.jpg) | ![](ex10-13_002.jpg) |
| Legal representative or authorized representative (seal): Legal representative or authorized representative (seal): | Legal representative or authorized representative (seal): Legal representative or authorized representative (seal): |

---

---

| | |
|:---|:---|
| ![](ex10-13_002.jpg) |  |
|  | Date of signing the Contract: April 19, 2021 |
|  | Place of signing the Contract: <u>Xinwu District, City</u> |

---

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| | |
|:---|:---|
| 15 | ![](ex10-13_003.jpg) |

---

202001 Edition

**Letter of Complaint to Client**

Dear Customer,

According to relevant regulations of China Banking and Insurance Regulatory Commission and Bank of Jiangsu Co., LTD., the following behaviors are strictly prohibited by Bank of Jiangsu Co., LTD. :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Organizing and participating in illegal fund-raising activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Introduce institutions and individuals to participate in usury or issue usury to institutions and individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Borrow money from customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Directly or disguised participation in private lending, providing to others is inconsistent with their own economic strength

Personal guarantee, or provide guarantee for private lending funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Take part-time jobs or receive remuneration in enterprises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Borrowing transitional funds from customers' accounts, or using my own account as transitional funds for customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Selling products of third-party institutions without authorization of the Bank or a consignment agreement signed by the Bank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Illegally handling business on behalf of customers, illegally keeping and transferring important articles on behalf of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Accept or ask for improper benefits, or illegally deliver benefits.

In order to protect your rights and interests, Bank of Jiangsu Co., Ltd. solemnly reminds you of the following:

**The above matters are expressly prohibited by the Bank of Jiangsu Co., LTD., any employee of the Bank of Jiangsu Co., LTD., no matter for what reason, the above actions are his personal actions, and do not represent the will of the Bank of Jiangsu Co., LTD., please be careful.**

At the same time, the governor of the Bank of Jiangsu Co., Ltd. requests the Borrower to supervise the employees of the Bank of Jiangsu Co., LTD. If any of the employees of the Bank of Jiangsu Co., Ltd. are found to be in any of the above circumstances, The Borrower is requested to report to Bank of Jiangsu Co., Ltd. via its special email address jsyhdflz@jsbchina.cn or by calling the Party Conduct and Integrity Building Office of Bank of Jiangsu Co., LTD. (Tel: 025-51811967). Bank of Jiangsu Co., Ltd. will maintain strict confidentiality.

---

| | |
|:---|:---|
| 16 | ![](ex10-13_003.jpg) |

---

In addition, any nominal fee or any form of security deposit charged by any other institution to the Borrower shall have nothing to do with Bank of Jiangsu Co., LTD., and all legal consequences and liabilities arising therefrom shall have nothing to do with Bank of Jiangsu Co., LTD

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| | |
|:---|:---|
| ![](ex10-13_001.jpg) | <br>![](ex10-13_005.jpg)  |
|  | Bank of Jiangsu Co., LTD |

---

I (our company) confirm that I am aware of and have carefully read all the contents of this Letter to Customers, understand and accept the risks presented by your bank, and actively assist your bank in supervising the behavior of your employees.

---

| |
|:---|
| ![](ex10-13_001.jpg) |
| Customer's Signature: |

---

## Exhibit 10.14

**Exhibit 10.14**

Edition 202104

**Working capital Loan Contract**

**Bank of Jiangsu Co. LTD**

**Working capital loan Contract**

Together with serial number: <u>JK022222000665</u>

Borrower: Jiangsu Huhu Electromechanical Technology Co., LTD

Legal representative/person in charge: Wang Ushered

Mailing address: 3-1208 Tian 'an Wisdom City, No. 228 Linghu Avenue, Xinwu District, Wuxi City

Tel: 18112388986

Fax: /

Email: /

Lender: Bank of Jiangsu Co., LTD. Wuxi New District Branch

Legal Representative/person in charge: Liu Qi

Mailing address: No.8 Changjiang North Road, Wuxi City, Jiangsu Province

In accordance with relevant national laws and regulations, both parties have reached a consensus to enter into this contract and are willing to comply with it.

Abide by all the terms and conditions of this contract.

**Article 1 Terms of the Loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Amount of the loan: (currency) People's currency (written in large letters) <u>three million yuan only</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Term of Loan: from March 15, 2022 to March, 14，2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Borrowing interest rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The interest rate of RMB loan is type <u>A</u> of the following "(√)" shall prevail.

A The interest rate of the loan under this contract is fixed, with an annual interest rate of <u>4.4%</u>

**（ The loan shall be made at the one-year term/five-year term of the latest public cloth one day prior to the signing of this Contract**

Market quoted rate (LPR) of <u>3.7%</u> plus (plus/minus) <u>70</u> Per BP(1 BP is equal to 0.01 percentage points) executed), the interest rate during the term of the contract Unchanged）

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The loan under this Contract is at a fixed interest rate, and the executive annual interest rate is the market quoted interest rate (L PR)/(plus/minus)/BP(1 BP equals 0. 01 percent) which was recently published on the day before the loan is issued Point), the interest rate remains unchanged during the term of the Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The loan hereunder is subject to a floating interest rate which is the most recent one day before the date of issuance of the loan

A published market quoted rate (LPR) for loans with a maturity of more than five years.

<u>/ (plus/minus)/BP(1 BP is 0.01 percentage points), together with the interest rate of the last published LPR for the same period on the day before the adjustment according to the above fluctuation rules, the adjustment period is adjusted by. / (month/quarter/half year/year)</u>

<u> </u>

On, the day of the adjustment is.

Special tips: If you choose B or C above, The interest rate (LPR)/(plus/minus)./ BP(1 BP equals 0.01 percentage points) is estimated at the execution annual interest rate based on the market quotation rate (LPR)/(plus/minus) The interest rate is for the borrower's reference only The actual executed annual interest rate at the time of granting the loan is subject to the loan record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The interest rate for foreign exchange loan is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The loan under this contract is at a fixed interest rate of/(in words) months

<u>/ (LIB /H /SI)+./ %, with an annual interest rate of./ % executed,</u>

The contract interest rate remains unchanged during the term of the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The loan under this Contract shall be at a floating rate of interest of/(in words) months

<u>/ (LIBOR/HIBOR/SIBOR)+. Exercise annual interest rate / %,</u>

The contract interest rate shall be adjusted to the actual execution at the time the loan is granted

The annual interest rate is subject to the loan record

3 Interest calculation

The interest on the loan hereunder shall be calculated on the basis of the actual amount of the loan and the actual number of days of the loan from the date of issuance of the loan. Except for the overdue compound interest, it shall be calculated by simple interest and calculated on a daily basis Interest rate = annual interest rate /360.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The purpose of the loan is to buy constant temperature heating belt, etc.

**The Borrower shall use the loan strictly in accordance with the purpose agreed herein without the consent of the Lender**

**It shall not change the purpose of the loan or misappropriate the loan.**

**The borrower undertakes that the borrowed funds shall not be used in any form for fixed assets, investment in equity or in areas or purposes that violate the credit policies of the State, and shall not be used for stocks, bonds, Investment in futures, financial derivatives and asset management products shall not be engaged in illegal activities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Ious for Loans

The Loan note is the loan voucher of the Borrower under this contract. It is an integral part of this Contract and has the same legal effect as this Contract.Where the Borrower's loan amount, issue date, maturity date, interest rate and other loan contents under this Contract are inconsistent with those recorded in the loan record, the borrower shall borrow the loan

The record of loan record shall prevail.

**Article 2 Interest on loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The interest of the loan hereunder shall be settled on a monthly (monthly/quarterly) basis, with the date of settlement being every month The 20th day of (month/quarter end).If the date of the last payment of the principal is not settled Date, then the outstanding interest accrues with the capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower shall pay interest on each settlement date and the Lender may do so from the Borrower in Jiangsu

It is deducted directly from the account opened by the bank.

**Article 3 Penalty interest and compound interest**

If the loan under this contract is overdue or not used according to the purpose agreed herein, the penalty interest shall be adopted

Interest and compound interest shall be calculated in Method A as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. When the fixed interest rate loan is due (including early maturity), the borrower fails to pay the full amount on time

In case of repayment of the loan, the Lender shall have the right to charge an additional 50 per cent of the loan interest rate under this Contract from the overdue date % penalty interest;If the borrower fails to use the loan for the purposes agreed in the contract, the lender shall have the right to self-impose

From the date of misappropriation, the penalty interest shall be calculated and levied at an additional rate of 100 percent according to the interest rate of loan under this contract.

The overdue interest (including the penalty interest) paid by the borrower shall be calculated and compounded at the interest rate of this contract

If the payment is overdue, compound interest will be charged at the penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If the borrower fails to repay the loan in full and on time when the loan with the floating interest rate is due (including early maturity), the lender shall have the right to apply the floating interest rate plus fee for the current period from the overdue date % shall be calculated and charged as penalty interest;If the borrower fails to use the loan for the purposes agreed in the contract, the lender shall have the right to self-impose

The penalty interest shall be calculated and charged at the current floating interest rate plus % from the date of misappropriation.

The overdue interest (including the penalty interest) paid by the borrower shall be compounded at the rate of this contract.

If the loan is overdue, the penalty interest rate will be calculated and compounded.

**Article 4 Conditions for withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may withdraw the money when this Contract becomes effective and the following conditions are met (the Lender agrees

Except for those exempted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower has opened the relevant Renminbi and/or foreign exchange with the Lender or any of its branches

An account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Borrower has provided the Lender with legal documents proving the legality of the Borrower, including but not limited to the latest and valid business license, approval certificate, joint venture or cooperation contract,

Articles of association etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The Borrower has submitted the Application for Withdrawal and the Letter of Authorization for Payment to the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The guarantee contract related to the loan has come into force and the legal and valid guarantee has been completed

Formalities, and during the term of this Contract, no breach of contract has occurred to the guarantor under the guarantee contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Related to this Contract and required by the Lender, including but not limited to approval, registration and preparation

Documents, insurance, notarization, witness and other procedures have all been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower has provided proof to the lender that the registered

capital of the Borrower has been invested Capital verification report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) According to the provisions of the borrower's internal authorization system, the borrower has provided the loan to the lender

The resolution of the Board of Directors and/or the Board of Shareholders (general) to approve the loan under this Contract And a letter of authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) The Borrower has provided the Lender with evidence of the purpose of the loan under this Contract

Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) the Borrower has provided the Lender with a letter of ious bearing the valid seal of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) The Borrower shall secure the loan contract and security contract when the Lender deems it necessary

Notarization of certificate contracts, collateral contracts, etc., which have the effect of compulsory execution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The Borrower and/or the guarantor have paid all fees payable under this Contract

With (if any);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) The Borrower has not occurred under this Contract as well as with the Lender, Bank of Jiangsu Co., LTD

Any breach under any other contract entered into by any other branch of the Company or any third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Other withdrawal conditions agreed upon by both parties: this column is blank.

**Article 5 Withdrawal Plan**

After meeting all the prerequisites for withdrawal, the Borrower may apply to the Lender for withdrawal once or in installments, and with the consent of the lender, the specific amount, term and interest rate of withdrawal shall be used as a debit note

The record shall prevail.

**Article 6 Terms of Payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The loan under this Contract shall be paid in the first method below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Method of entrusted payment. The Lender shall, based on the Borrower's withdrawal application and payment authorization, pay the loan funds through the Borrower's account to the Borrower transaction conforming to the purpose agreed herein

Object.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Autonomous payment method. After the Lender releases the loan funds to the Borrower's account in accordance with the Borrower's withdrawal application, the Borrower shall, in accordance with the plan determined at the time of application, pay the Borrower's counterparty conforming to the agreed purposes of this Agreement at its own discretion. The Borrower undertakes to submit to the Lender, as required by the Lender, at least within 30 days after the disbursement of the loan funds, trade contracts, invoices and transfer documents corresponding to the payment

Certificates and other documents.

3 Partial fiduciary payment methods.Any single amount exceeding RMB/RMB (the foreign exchange loan shall be converted at the foreign exchange purchase price published by the lender on the date of the entrusted payment)

Payment shall be made by the entrusted payment method, and the rest may be made by the independent payment method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. If the borrower falls under any of the following circumstances, the lender has the right to negotiate with the borrower to supplement the loan payment terms;If consultation fails, the Lender has the right to stop payment of the loan funds or request the loan**

**Early repayment of the loan granted:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Declining credit standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The profitability of main business is not strong, breaking the agreed financial indicators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Failure to pay the loan funds as agreed in the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. breach the contract and evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Failing to comply with the commitments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Other circumstances in violation of the contract.

**Article 7 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The sources of repayment by the Borrower shall include but not limited to revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. The Borrower shall make repayment in the first method below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Pay interest on a monthly or quarterly basis, and repay the loan principal in a lump sum at maturity in accordance with this Contract

The interest settlement rules stipulated in Article 2 shall be executed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Monthly repayment of the same amount of principal and interest, that is, except for the first and last two months, the principal and interest of the loan shall be repaid with a fixed amount every month, and the remaining principal and interest of the loan shall be repaid on the maturity date.The formula for calculating the monthly repayment amount is as follows

The following:

Monthly repayment amount (except the first/last two months)= loan principal × monthly interest rate ×(1+ monthly interest rate)n ÷[(1+ monthly interest rate) n-1], where n is the number of months borrowed, monthly interest rate = year

Interest rate /12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Make monthly equal principal repayment, that is, repay the principal of the loan at a fixed amount each month except for the first and last two months, and repay the interest actually incurred in that month, and repay the remaining loan principal on the due date of the loan Interest.The monthly payment amount is calculated using the following formula:Monthly repayment amount (except first/last two months)= principal borrowed ÷ number of months borrowed +(borrowed

Principal - cumulative amount of principal repaid) x monthly interest rate, where monthly interest rate = annual interest rate /12.

If the repayment method is equal to the principal and interest per month or the principal per month, the borrower may pay the actual amount of the principal and interest per month through the business branches of Bank of Jiangsu or through electronic channels

(including but not limited to mobile banking and online banking) for inquiry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Small and micro "easy return" way:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The interest is paid monthly, and the principal is repaid monthly/quarterly/semi-annually

In yuan (large writing: /), the remaining principal and interest are payable in one instalment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Apportioned repayment on an annual basis.According to the___The amount of monthly repayment is calculated by the annual equivalent principal and interest, and the remaining principal and interest are due for one-time repayment.For example, if the loan of 3 years is paid in 5 years' apportionment, that is, the loan principal is calculated in 5 years' "monthly repayment of the same amount of principal and interest" for every 1 to 35 months Monthly payment, the remaining principal and interest in the 36th month in a single repayment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Other repayment methods:.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Payment date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Where the repayment method (1) of the preceding paragraph is adopted, the due date of the loan shall be the date of the last repayment.

The interest shall be clear with the principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the repayment methods in item 2, 3 and 4 of the preceding paragraph are adopted, the first payment date shall be the first interest payment date/district /, and the date of payment shall be the corresponding day of every month/at the end of every quarter/at the end of every half year of every month thereafter;If there is no corresponding date, the repayment date shall be the last day of the month. Last installment of repayment

Date is the due date of the loan.

If the above repayment date falls on a non-bank business day, it will be deferred to the next business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the borrower needs to extend the loan term, it shall apply to the lender 30 working days before the maturity date of the loan

The borrower shall submit a written application and handle the extension after obtaining the consent of the lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. The Borrower irrevocably authorizes the Lender to deduct from any account opened by the Borrower at any branch of the Bank of Jiangsu Co., Ltd. in full or before maturity If the amount deducted is foreign exchange, the lender shall announce it on the date of the deduction**

**Is converted to the spot buying price.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Borrower shall repay the debt in the second of the following methods:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall open with the Lender a special repayment reserve account for the loans under this Contract. During the term of existence of the Loan, the Borrower shall collect the funds collected from the loan in this account and ensure that the balance of the funds in this account shall not be less than (currency)/(large) L at any time .The account is subject to the supervision of the lender and cannot be used for settlement, and the lender has rights in the account Direct debit and return the principal and interest of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower shall establish a unit settlement account with the Lender and shall include the cash flow from its daily income into this account according to the proportion of the total amount of the credit extended by the Borrower to the total amount of the credit extended by the Borrower to the financial institution, and the balance of the fund in this account shall not be less than (currency)/(written in large)/at any time. The Borrower shall repay the current borrowings in full in the account before each repayment date And authorizes the Lender to directly deduct and repay the principal and interest of the loan from the account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. The Borrower shall obtain the consent of the Lender to repay part or all of the loan in advance, and the interest on the part repaid in advance shall be calculated and charged according to the principal amount repaid in advance, the number of days actually used and the execution interest rate agreed in this Contract. Where the borrower makes the repayment in advance, the accrued interest shall not be adjusted;After repayment in advance, Interest will still be charged at the agreed execution rate for loans that have not yet been repaid.

Where the borrower repays in advance, the lender has the right to demand that the borrower pay the amount in advance

<u>/ Pay liquidated damages to the Lender.</u>

**Article 8 Representations and warranties of the Borrower**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The principal qualification of the Borrower shall meet the requirements of relevant laws, regulations and normative documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has been fully authorized to sign this Contract and other relevant documents and has the ability

It is capable of fulfilling its obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The execution and performance of this Contract and other relevant documents by the Borrower is or will not violate any laws, regulations and normative documents, nor any other contracts and agreements entered into by the Borrower

Or any obligations undertaken by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower is not currently subject to any outstanding litigation, arbitration or administrative penalties, or against the Borrower Knows that any action, arbitration or administrative penalties may be brought against its assets or earnings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower shall cooperate with the Lender in loan payment management, post-loan management and relevant inspections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The financial statements provided by the Borrower truthfully reflect the borrower's financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The application materials in this Contract and Guarantee Contract and the relevant information of the Borrower, guarantor,

The statements and warranties of the mortgagor, the pledgor, the mortgagor, the collateral (pledge) and the project are true, complete, legal, valid and accurate, without any false, concealment, misleading statements or material material

Omissions.

**Article 9 Rights and Obligations of the Borrower**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Rights of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower has the right to withdraw and use the loan as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. With the written consent of the Lender, it has the right to transfer the debts hereunder to a third party

Affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Obligations of the Borrower

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Documents and materials required by the lender shall be truthfully provided (including account numbers of all opening banks, balance of deposits and loans, utilization of relevant loans, assets, production and business activities,

Internal management and other true information);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The financial statements of the previous month shall be provided to the Lender by the 20th day of each month, and the financial statements (or audited financial statements) shall be provided to the Lender within 120 days of the end of each fiscal year

Shall promptly provide the Lender with its own changes and changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. It shall accept and cooperate with the lender in its use of credit funds and related production procedures

Investigation, supervision and inspection of operations and financial activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Opened at the Bank of Jiangsu, Wuxi New Branch (Branch) Co., LTD

Close settlement account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Conduct settlement at home and abroad, settlement and sale of foreign exchange and other intermediary activities at the Lender or its branches in accordance with the proportion not less than the total balance of borrowings hereunder and borrowings of the Borrower from other financial institutions

Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The loan shall be used in accordance with the purpose and manner agreed in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The principal, interest and other payable payments of the loan shall be repaid in full and on time as agreed herein

Item;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The borrower's name, legal representative/responsible person, domicile, registered capital and other basic letters

In case of any change in interest, the Borrower shall notify the lender in writing within 5 working days after the change of relevant matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower or the guarantor has occurred or may occur which may affect its solvency/guarantee ability

The Lender shall be notified in writing immediately of any material adverse event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. In the event of major events such as contracting, leasing, change of property rights, transfer of assets, foreign investment, substantial increase in debt financing, merger, division, transfer of equity, application for suspension of business, application for dissolution or bankruptcy, reduction of registered capital or assignment of creditor's rights and liabilities, the Borrower shall immediately inform the lender in writing and obtain written consent of the lender. The Borrower shall implement this Agreement in accordance with the Lender's requirements

Guarantee measures for repayment of the principal, interest and other relevant expenses of the loan under the same item;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. The total amount of security for the liabilities of a third party shall not exceed the net assets of the borrower Times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If the Borrower is a Group customer, it shall submit a written report to the Lender within 10 days from the date of the occurrence of an affiliated transaction whose amount is more than 10% of the Borrower's net assets, including but not limited to the relevant relationship of the parties to the transaction, the items and nature of the transaction, the amount of the transaction or corresponding thereto

Proportion and pricing basis (including transactions with no amount or only a nominal amount);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Insure the lender's property in relation to the loan, as required by the lender, and

Carry out the relevant matters as required by the Lender at the time of the insurance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Borrower agrees to be executed if this Contract is notarized by a notary office and given the force of enforcement

The people's court shall enforce the contract and waive the right of defense.

**Article 10 Rights and obligations of the lender**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Rights of the Lender

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Lender has the right to request the Borrower to provide information and documentation related to the loan hereunder

Materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The right to ask the borrower to repay the principal and interest of the loan on schedule or in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Have the right to know the borrower's basic situation, production and operation situation, financial situation, repayment plan, guarantor and collateral situation, and have the right to obtain relevant information from accounting books and operation records

Make excerpts or copies from

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Have the right to supervise the Borrower's use of the loan in accordance with the purpose and manner agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the Borrower fails to perform the obligations set forth herein, the Lender shall have the right to change the method of payment of the loan and stop issuing the loan that has not been drawn by the Borrower and/or in accordance with the provisions hereof

Require the Borrower to repay the loan in advance or declare all the loan to be due in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The lender has the right to withdraw the loan in advance according to the borrower's withdrawal of funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. In the event of contracting, leasing, property right alteration, asset transfer, foreign investment, substantial increase in debt financing, merger, division, equity transfer, business suspension, application for dissolution or dissolution of property, reduction of registered capital, transfer of creditor's rights and debts, merger, acquisition and reorganization, or weakening of repayment ability of the borrower In the event of any major event such as the deterioration of the guarantee ability of the guarantor or any major event that threatens the security of the creditor's rights of the Lender, the Lender shall have the right to require the Borrower to repay in advance the principal and interest of the loan hereunder and pay all other relevant expenses, or to require the Borrower to transfer all debts hereunder to the assignee whom the Lender agrees to accept. Or require the Borrower to provide other matters acceptable to the Lender

Security measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Unless otherwise agreed by the parties, the Lender shall have the right to determine the order of repayment of the principal or interest or expense in the event that the borrower defaults on the principal, interest and expense of the loan at the same time; In the case of installment repayment, if there are more than one loan due or overdue under this Contract, the Lender has the right to determine the order of repayment of one loan by the Borrower;Where there are multiple loan contracts between the borrower and the lender, the Lender has the right to determine the performance of each repayment by the borrower

The order of contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Exercise other rights stipulated by laws, regulations, normative documents and agreed herein. Ii. Obligations of the Lender

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Lender shall grant the loan to the Borrower on the terms and conditions agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall keep confidential the financial condition and production and operation of the Borrower, provided that by law

Except as otherwise agreed in regulations and normative documents.

**Article 11 Events of breach and treatment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. During the term of this Contract, any of the following circumstances shall constitute an event of breach hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower breaches any of the next representations and warranties hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to fully perform any of its obligations under this Contract and other relevant documents, including but not limited to its failure to pay the principal, interest and other obligations of the loan hereunder in full and on time

Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower fails to change the purpose or misappropriation of the loan as agreed herein or without the consent of the Lender

The borrower borrows money or uses the loan to engage in money laundering, terrorist financing or any other illegal or irregular transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The borrower voluntarily or forcibly ceases business, liquidates, cancels, reorganizes, disbands or becomes bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Borrower provides false materials or conceals material facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Borrower breaches the financial indicators agreed herein;

The deterioration of the borrower's financial condition may affect the security of the loan or the borrower intends to evade and cancel the bank's claims;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The borrower's loan project plan is cancelled or cannot be implemented;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower takes advantage of the false contract between it and a third party to extract the lender or other banks

Bank funds or credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower has committed or is suspected of engaging in illegal or irregular acts involving or likely to involve litigation,

Arbitration cases and other legal disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Violation by the Borrower of any other contract entered into with the Lender or other institution of Bank of Jiangsu Co., Ltd. or any third party, or any dispute arising out of such contract

Litigation or arbitration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The controlling shareholder of the Borrower transfers its shares of the Borrower, or major events occur to the controlling shareholder, actual controller, legal representative or senior management personnel of the Borrower, including but not limited to the occurrence or suspected violation of laws and regulations, involving litigation, arbitration or administrative punishment,

Serious deterioration of its financial condition, declaration of bankruptcy or dissolution, inability to perform its duties, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. Default of guarantor, Including, but not limited to, false information provided by the Guarantor, breach of other contracts entered into by the Guarantor with the Lender or other institutions of Bank of Jiangsu Co., Ltd. or a third party, litigation or arbitration arising from disputes arising out of such contracts, forced or voluntary suspension of business, material difficulties in production and operation or material adverse changes in financial condition, or occurrence Or suspected violations of laws and regulations, evasion of bank claims, merger and/or acquisition and reorganization, etc

Circumstances in which he may weaken his ability to guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Other circumstances that endanger or are likely to endanger the security of the creditor's claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. In case of default, the Lender shall have the right to take one of the following actions according to the nature and extent of the default**

**Or any of the following disposal methods:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the Borrower to correct the default within a time limit and take remedial measures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Change the payment method of the loans not mentioned herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Require the Borrower to provide additional security approved by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Stop the Borrower from continuing to draw, cancel the undrawn loan limit and declare the loan under this contract

If the principal and interest of the loan are due in advance, the loan shall be withdrawn immediately;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Require the guarantor to perform the guarantee responsibility or dispose of the collateral (pledge);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Declare that all principal and interest under other loan contracts signed between the borrower and the lender and with other branches of Bank of Jiangsu Co., Ltd. are due in advance, and immediately withdraw all loans

Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Freeze part or all of the Borrower's deposits and have the right to deduct money from any account opened by the Borrower with branches of Bank of Jiangsu Co., Ltd. at various levels to repay debts and deduct money

In the case of foreign exchange, it shall be converted at the spot buying price published by the lender on the date of deduction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If this contract has been notarized by a notary office and given the effect of compulsory execution, it may be applied to the people's court

Please enforce the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Perform other provisions of laws, regulations, normative documents and this contract

Rights.

**Article 12 Fees**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Anything related to this Contract shall include but not limited to credit investigation, notarization, witness, registration, etc

The expenses incurred shall be borne separately according to laws, regulations and normative documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All expenses incurred by the Lender to collect the principal and interest of the loan due to the Borrower's failure to repay the principal and interest of the loan on time, including but not limited to notice fee, delivery fee, appraisal fee, attorney's fee, legal cost, travel fee, evaluation fee, auction fee, property preservation fee and enforcement fee, shall be borne by the Borrower

Bear.

**Article 13 Assignment of Debts**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not transfer any of its rights hereunder,

The Borrower shall not assign any of its obligations hereunder to any third party without the Lender's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. With the written consent of the Lender, the Borrower assigns its rights and obligations hereunder

To a third party, which shall unconditionally comply with all the terms and conditions of this Contract.

**Article 14 Amendment, termination and exercise of Rights under this Contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Unless otherwise agreed herein, such modification shall be made in writing upon mutual agreement of both parties

Or terminate this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the term hereof, the Lender's tolerance, extension or delay of any breach or delay of the Borrower's rights hereunder shall not prejudice, affect or limit all the rights to which the Lender is entitled as the Lender under this Contract and the relevant laws, regulations and normative documents. Nor shall it be deemed as the Lender's permission or approval of any breach of this Contract or as a waiver of any action taken by the Lender in respect of any existing or future breach 's rights.

**Article 15. The Borrower agrees that the creditor's right under this contract shall be given the effect of enforcement after it has been notarized by the contract. If the Borrower fails to perform or fails to fully perform its obligations under the contract, the Lender shall**

It may apply to the people's court having jurisdiction for compulsory execution.

**Article 16 Anti-money laundering provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower undertakes that its application to the Lender for the business under this Contract is true and legal , does not involve money laundering, terrorism or other illegal purposes, and does not violate any applicable provisions regarding

Economic sanctions, trade embargoes, trade controls and other laws and regulations and international treaties, and voluntarily submit to anti-money laundering investigation, timely provide relevant information to ensure the accuracy, authenticity,

And ensure the accuracy, authenticity and completeness of relevant information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower undertakes that the sources of funds involved in borrowing and repayment from the lender are legal and compliant,

It does not exist or be suspected of money laundering, terrorist financing, tax evasion, fraud and other illegal activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. If the Lender finds or has reasonable grounds to suspect that the Borrower exists or is suspected of any illegal activities such as money laundering, terrorist financing or tax evasion, the Lender may take necessary money laundering risk control measures, including but not limited to suspending the utilization of the loan hereunder, declaring early maturity of the loan and so on. If the Lender has taken risk control measures and the Borrower has violated the anti-money laundering obligations stipulated in this Article, the Lender may give the loan The**

**borrower shall be liable for the losses caused by the lender.**

**Article 17 Information inquiry and use**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower irrevocably authorizes Bank of Jiangsu Co., Ltd. to inquire and use all kinds of information related to the Borrower through, including but not limited to, state administrative organs, government departments, business management agencies, third-party data platforms and network media from the date of signing this Contract to the date of termination of the business hereunder.The Borrower understands that it is obliged to provide such non-open letters

The possible legal consequences arising from the interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Where the Borrower hereby irrevocably undertakes that it has breached its obligations under this Contract, the Lender may submit the information of the debtor's breach of trust to the credit investigation institution and banking association, and authorize the relevant banking association to submit the information of the borrower's breach of trust to the banking financial institution in an appropriate manner

To share and even publicize the information to the society.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Where the Borrower fails to fulfill repayment obligations in time and in full as agreed herein, the Lender has the right to entrust cooperative agencies, law firms and other legal and compliant third parties to collect on behalf of the Borrower, and the Borrower authorizes and agrees with the Lender to collect, process, use and transfer the Borrower's data and information within the scope of this Contract for the purpose of debt collection and recovery. And share necessary information of the Borrower (such as identity information, contact information, performance information and performance ability judgment information, etc.) with the aforesaid institutions

Share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. The Borrower voluntarily accepts the joint action taken by the banking financial institution such as the lender to reduce or suspend credit granting, to stop opening new settlement accounts, to stop issuing new credit cards of its legal representative, etc.

Disciplinary and rights protection measures.

**Article 18 Notice and service**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. The Borrower acknowledges the mailing address, telephone number, fax number and electronic address listed at the beginning of this Contract**

**The E-mail address shall be the valid address of service to the Borrower.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. A notice given to the Borrower shall be deemed to have been served if:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Electronic service (including SMS, E-mail, fax, etc.) provided by the sender**

**If it shows that the delivery is successful, it shall be deemed to have been delivered;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the service is delivered by person, the sender shall record the information on the written document or the acknowledgement of service on the spot

The date shall be deemed to be the effective date of service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) by post (including speedpost, regular mail, registered mail, etc.), the fifth calendar day after the date on which the notice was delivered by the sending party or the notice was actually delivered to the relevant address or notice

The date of return (whichever is the later) shall be deemed to have been served;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) If the above methods are adopted at the same time, the one that reaches the other party first shall prevail.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. The following persons shall be the signers of the Lender's notice, including;Oneself, relatives, property management personnel, doormen and security guards of the community and office building where the above address of delivery is located, applicable to the situation where the borrower is a natural person;The unit, the unit shareholders, the unit staff, the above address to the community, the office building property management personnel, guards, security, applicable to the loan**

**The case of a person as a legal person or an unlegal person organization.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. The above address, method of service and scope of application of the signatory: Including the delivery of all kinds of information, correspondence, attachments, agreements and other documents during the performance of this Contract by the Borrower as well as relevant documents and legal documents in case of disputes arising from this Contract, from the date when the Contract is formed to the date when the debt is completed. Including the first instance, second instance, retrial and execution procedure (including disposal of mortgage, etc.), special procedure and other stages after the dispute enters notarization, arbitration and civil procedure

Service of relevant documents and legal documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. The Borrower shall notify the lender, the people's court, the arbitration organ or the notary organ in writing within 3 working days from the date of the change of the address for service. Before receiving the written notice of change, the Lender, the people's court, the arbitration organ or the notary organ shall send the address in accordance with the above**

**A notice or document delivered at the address shall be deemed to have been effectively served.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If the notice or document is not actually received by the Borrower due to the incorrect address provided or confirmed by the Borrower, the failure to timely notify after the change of the address of service, or the refusal of the party served or the signer to sign for receipt, the notice or document served in accordance with the above agreed manner shall also be deemed

For the purpose of effective service, the Borrower shall bear the risks arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. If a dispute or dispute arising out of this Contract enters into arbitration/civil proceedings, the Borrower responds to the suit and directly submits to the arbitration institution/court the confirmation of the address for service, and the confirmation of the address for service is inconsistent with the address confirmed in this Contract, The confirmed delivery address submitted to the arbitration institution or the court shall prevail (after the delivery address is governed by the mode of service agreed herein and the laws governing service)

If).

**Article 19 Application of Law and dispute settlement**

The conclusion, validity, interpretation, performance and dispute resolution of this Contract shall be governed by the laws of the People's Republic of China (for the purpose of this Contract only, excluding the laws of Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region of the People's Republic of China). **In case of any dispute arising from the performance of this Contract, both parties may negotiate or mediate.If negotiation or mediation fails, it shall be stipulated in Item A below**

**To settle the dispute:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. file A lawsuit in the people's court of the place where the lender is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Apply to the/arbitration Commission for arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. File a lawsuit with the people's court in the place where the contract is signed.

**Article 20 Other matters agreed upon by the parties:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The loan under this contract is No. 1 Factory.<u>Line of credit for Factory 1</u>

This contract is a valid attachment to the specific credit facility under this item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Interest and fees other than the principal hereunder shall be tax inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. If the Lender is required to entrust any other institution of Bank of Jiangsu to perform its rights and obligations hereunder due to business needs, the Borrower agrees.Other Bank of Jiangsu institutions authorized by the Lender shall have the right to exercise all rights under this Contract and shall have the right to bring disputes under this Contract to court**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Bring a lawsuit or submit it to an arbitration institution for adjudication.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrower's financial Metrics Agreement: This column is blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. 5. This field is blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Matters not covered in this contract shall be subject to laws and regulations, normative documents and state authorities

Interpretation or handling of relevant provisions.

**Article 21 Entry into force and termination of the Contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract is signed (signed or sealed) by the legal representatives/responsible persons or authorized representatives of both parties

The Contract shall come into force after it is affixed with the official seal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. This Contract shall terminate on the date of full repayment of all principal, interest and related expenses.

**Article 22 This Contract is made in two counterparts. The Lender, the Borrower and /**

_____Each party shall hold one copy and each copy shall be equally authentic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. The Borrower acknowledges that it has read all the terms of this Contract, especially those relating to its rights, obligations and liabilities which have a material interest to the Borrower.The Lender has fully explained and explained the relevant clauses as required by the Borrower, the Borrower has fully known and understood the meaning of the terms hereof and the corresponding legal consequences, fully accepts and signs all the terms hereof**

**This contract indicates that the Lender is willing to be bound by this contract and to assume the corresponding responsibilities.**

(The following is the signature office, without text)

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|:---|:---|
| (This page, left blank, is Working Capital Loans No. : JK022222000665 | (This page, left blank, is Working Capital Loans No. : JK022222000665 |
| Signing page of the Contract) | Signing page of the Contract) |
| Borrower (official seal): | Borrower (official seal): |
| Legal representative/person in charge | Legal representative/person in charge |
| ![](ex10-14_002.jpg)  | <br>![](ex10-14_006.jpg) |
| Or authorized representative (signature and seal): | Or authorized representative (signature and seal): |

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![](ex10-14_003.jpg)

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| | |
|:---|:---|
| Lender (official seal): | Lender (official seal): |
| Legal representative/responsible person | Legal representative/responsible person |
| ![](ex10-14_004.jpg) | <br>![](ex10-14_005.jpg)  |
| Or authorized representative (signature and seal): | Or authorized representative (signature and seal): |
| Date of signature: <br> March 15, 2022 | Date of signature: <br> March 15, 2022 |

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This contract is signed by the above parties at the place where this contract is signed: Xinwu District, Wuxi City.

Edition 202107

**Letter to the Guest**

Dear Customers,

In accordance with relevant regulations of the China Banking and Insurance Regulatory Commission and Bank of Jiangsu Co., LTD. (hereinafter referred to as the "Bank"), the following behaviors are strictly prohibited by our employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Organizing and participating in illegal fund-raising activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Introducing institutions and individuals to participate in loan sharking or issuing loan sharking to institutions and individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Borrow money from clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Directly or disguised participation in private lending, providing credit for the private lending of clients or their related parties

Guarantee or matchmaking;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Charge other fees in addition to the normal financing cost in the process of business handling;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Borrowing transitional funds from customers' accounts, or using their own, relatives' and other related accounts for customers' transitional funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Taking part-time jobs or receiving remuneration for clients or their related parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Selling products of third party organizations without authorization of the Bank or signing commission sales agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Illegally handling business on behalf of customers, illegally keeping and delivering important articles on behalf of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Accepting or demanding improper benefits, or illegally delivering benefits.

To protect your rights and interests, the Bank solemnly reminds you of the following:

**The above matters are prohibited by the Bank's regulations. Any of the above actions of any of the Bank's employees, no matter for what reason, are their personal actions and do not represent the will of the Bank. Please be careful.**

**Any nominal fees and any form of deposit charged to you by any other institution or individual have nothing to do with Bank of Jiangsu Co., LTD. Bank of Jiangsu Co., Ltd. shall not assume all legal liabilities arising therefrom.**

You are requested to supervise the staff of the Bank. If you find any of the above, please send a report to the Bank via our special email, jsyhdflz@jsbchina.cn, or call the Party Conduct and Integrity Building Office of the Bank (Tel: 025-51811967). The Bank will maintain strict confidentiality.

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| |
|:---|
| ![](ex10-14_007.jpg) |
| Bank of Jiangsu Co., LTD |

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I (our company) confirm that I am aware of and have carefully read all the contents of this Letter to Customers, understand and accept the risks presented by your bank, and actively assist your bank in supervising the behavior of your employees.

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| |
|:---|
| ![](ex10-14_009.jpg) |
| Customer's Signature: |
| Date of signing: March 15, 2022 |

---

Edition 202105

**Letter of Undertaking for Use of Credit Funds**

Bank of Jiangsu Co., LTD:

I/we hereby undertake to extend credit with your bank as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The credit funds shall only be used for my/our business turnover, and shall not be used in any form for the purchase of real estate, equity investment, or the fields and uses that violate the national credit policies, and shall not be used for investment in stocks, bonds, futures, financial derivatives and asset management products Illegal activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Your bank reserves the right to request me/us to provide proof of the use of the credit. If I/we are aware of the risks of using the credit fund in violation of the purpose agreement, if I/we change the purpose of the credit fund without your consent or misappropriate the credit fund to the real estate and other prohibited areas mentioned in Article 1 of this commitment letter, you have the right to terminate the contract in advance and immediately withdraw the loan or take out the loan

Take measures such as lowering the line of credit and investigating the corresponding legal liability.

![](ex10-14_010.jpg)

Types of documents \*; Document number \*;

(the official seal shall be affixed when the promisor is a unit, and the information marked "\*" shall not be filled in)

![](ex10-14_011.jpg)

![](ex10-14_008.jpg)

## Exhibit 10.15

**Exhibit 10.15**

**The fast loan contract of small and micro-enterprises**

Contract No. :320009115637385676

Borrower (Party A)

Name of borrower: Jiangsu Huhu Electromechanical Technology Co., LTD

Address: 3-1208 Tian 'an Wisdom City, 228 Linghu Avenue, Xinwu

District, Wuxi City, Jiangsu Province

Postal Code: 214028

Legal representative (responsible person) : Yinglai Wang

Fax: Tel: 13585087427

Joint Borrower Name: Yinglai Wang

Address: A3-1208, Tian 'an Smart City, Wuxi

Postal Code: 214028

Certificate Name: Resident ID Card

Certificate No. : 320922198302165723

Tel: 18112388986

Lender (Party B) : China Construction Bank Co., LTD. Wuxi Branch

Address: 88 Wuai Road

Postal code: 214001

Person in charge: Han Yong

Fax: 86-0510-82812989 Tel:

In accordance with relevant laws, regulations and rules, Party A and Party B have reached an agreement through consultation to enter into this agreement. This Contract is for mutual observance.

**Article 1 Loan Amount**

The loan amount provided by Party B to Party A shall be RMB three million Yuan (in words) only.

The loan amount mentioned herein refers to the principal balance limit of the working capital loan provided by Party B to Party A during the validity period of the loan amount agreed herein.Party A may recycle the loan amount during the effective period of the loan amount.As long as the outstanding loan principal balance of Party A under this Contract does not exceed the loan amount, Party A may apply for loans continuously, regardless of the number of loans and the amount of each loan, provided that the sum of the loan amount applied by Party A and the outstanding loan principal balance of Party A under this Contract shall not exceed the loan amount.

**Article 2 Purpose of the Loan and source of repayment**

Party A shall use the loan for daily production and operation turnover.

The repayment source of the loan hereunder shall be the funds collected from production and operation.

**Article 3 Term of validity of the loan amount**

The effective period of loan limit is from <u>November 03, 2021</u> to <u>November 03, 2022</u>. Upon termination of the term of the facility, the unspent loan limit will automatically lapse.

**Article 4 Use of the loan limit**

During the term of validity of the loan limit and within the loan limit, Party A may apply for the loan as required, and Party B shall, according to Party A's application and the provisions of this Contract, issue the loan funds to the agreed loan issuing account.

The starting date of a single loan term shall be the date on which the loan funds are released to the loan issuing account.

The maturity date of a single loan within the loan limit is the maturity date of the loan limit.

**Article 5 Loan interest rate, penalty interest rate, interest calculation and settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Loan interest rate

The Loan interest rate under this Contract shall be executed at <u>4.0525%</u>, i.e. LPR interest rate <u>plus</u> (fill in "plus" or "minus") <u>20.25</u> basis points (1 basis point =0.01%, precise to 0.01 basis point), which shall remain unchanged during the term of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Penalty interest rate

If Party A fails to use the loan according to the contract purpose, the penalty interest rate shall be <u>100%</u> above the loan interest rate. If the loan is overdue, the penalty interest rate shall be <u>50%</u> higher than the loan interest rate. For loans that are overdue and misappropriated at the same time, the penalty interest and compound interest shall be charged at a higher interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The starting interest date mentioned in this Article refers to the date on which a single loan is transferred to the loan issuing account (hereinafter referred to as the Loan Issuing Account) stipulated in Article 7 of this Contract.The LPR interest rate hereunder refers to the one-year loan market quoted interest rate (LPR) of the national Inter-bank Lending Center one business day prior to the effective date of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Loan interest shall be calculated from the date the loan is transferred to the loan issuing account.The loan is charged with interest on a daily basis. The daily interest rate is equal to the annual interest rate /360.If Party A fails to pay the interest on the interest settlement date agreed herein, the interest will be compounded from the next day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Interest settlement

The loan hereunder shall be paid with interest on a monthly basis, and the date of payment shall be fixed on the 20th day of each month.

**Article 6 Issuance and payment of the Loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Preconditions for granting loans

Unless waived in whole or in part by Party B, Party B shall be obliged to extend the Loan only if all of the following conditions continue to be met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A has completed the approval, registration, delivery Insurance and other legal formalities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. If there is any guarantee in this Contract, the guarantee meeting Party B's requirements has taken effect and continues to exist Effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Party A has opened an account for withdrawal and repayment as required by Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. Party B has received and approved Party A's application for loan and expenditure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Party A has not committed any breach as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. None of the circumstances that may endanger the creditor's rights of Party B agreed herein has occurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Party B's issuance of this Contract is not prohibited or restricted by laws, regulations or competent authorities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. The loan under the same item;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IX. Party A's financial indicators continue to meet the relevant requirements of Party B for granting loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Party A has submitted relevant materials before the loan issuance in accordance with provisions hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XI. The materials provided by Party A to Party B are legal, true, complete, accurate and valid, and meet other requirements of Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;XII. Other preconditions: None.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Loan payment

The loan payment under this Contract shall be made in the following method **[1]** :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A shall pay the loan independently.

After Party B releases the loan funds to the loan issuing account according to the withdrawal application of Party A, Party A shall independently pay the funds to its transaction partner. Party A shall ensure that its transaction object is in accordance with the specific purpose and transaction information of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B is entrusted to make the payment.

Party A irrevocably entrusts Party B to pay the loan funds to Party A's transaction object. Party B shall transfer the loan funds to the loan issuing account and then pay the loan funds directly from the loan issuing account to the account of Party A's transaction object.Party A shall not dispose of the loan funds in any form (including but not limited to transfer and withdrawal).Party A shall bear the risks, liabilities and losses caused by failure, error and delay in payment of the loan fund due to incomplete, untrue, inaccurate, inconsistent with the specific purpose of the loan, conflict of information and other reasons not attributable to Party B. Party B shall not bear any responsibilities. Party A shall indemnify Party B for all losses incurred thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall be deemed to have fulfilled the loan obligation as soon as the loan funds are entered into the loan issuing account, no matter Party B is entrusted to pay the loan or Party A pays the loan independently.Party A shall ensure that the loan issuing account is in normal condition (including but not limited to not being frozen by the authority). Party A shall bear all risks, responsibilities and losses arising from the freezing and deduction of the loan funds by the authorized authority after the loan funds enter the loan issuing account.Party A shall compensate Party B for all losses incurred thereby.

**Article 7 Account Use and Supervision**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Loan issuing account

The loan issuing account hereunder is the account opened by Party A in Party B (account number: <u>32001615036052517356</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Fund Withdrawal Account

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A shall use the existing account (account:) opened in Party B as the fund withdrawal account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B shall have the right to manage the inflow and outflow of funds from the account.Specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The arrival time of the returned funds: <u>the returned funds shall arrive before the maturity date of the loan .</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other requirements put forward by Party B.

**Article 8 Repayment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Repayment Principle

Party A's repayment hereunder shall be made in accordance with the following principles:

Party B shall have the right to use the repayment made by Party A first to repay the expenses which should be borne by Party A and paid by Party B in advance as well as the expenses incurred by Party B to realize the creditor's rights as agreed herein. The remaining amount shall be repaid in accordance with the principle of paying back the interest first and then the principal and interest with the principal.However, for the loans whose principal is overdue for more than 90 days or whose interest is overdue for more than 90 days, or for the loans whose interest is overdue for more than 90 days or for the loans otherwise provided for by laws, regulations or rules, Party A shall repay the aforesaid fees in accordance with the principle of first paying back the principal and then paying back the interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment of interest

Party A shall pay the interest due to Party B on the settlement date.The first interest Payment date is the first interest payment date after the loan is released.When the last payment is made, the interest is cleared with the principal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Method of repayment

Party A shall, before the repayment date agreed herein, make sufficient funds payable for the current period in the fund collection account or other accounts opened by Party B and the personal account of the joint borrower and transfer the funds to repay the loan (Party B also has the right to transfer the funds from such account to repay the loan), or transfer the funds to repay the loan from other accounts on the repayment date agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Repayment ahead of schedule

Party A's interest on repayment in advance shall be calculated according to the actual days of payment and the loan interest rate specified in Article 5 hereof.

After the repayment in advance, the unrepaid loan shall still be subject to the loan interest rate agreed in this Contract.

**Article 9 Rights and Obligations of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Rights of Party A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A shall have the right to apply to Party B for the use of the loan as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) The right to use the loan for the purposes agreed herein;(III) Party B shall have the right to require Party B to keep confidential the relevant financial information provided by Party A and the trade secrets related to production and business operation, unless otherwise stipulated by laws, regulations and rules, required by competent authorities or agreed by both parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) The right to refuse Party B and its staff to ask for bribes, and the right to report to the relevant authorities for the above-mentioned acts or Party B's violations of national laws and regulations concerning credit interest rates and service charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Obligations of Party A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Withdraw funds in accordance with the provisions hereof, repay the principal and interest of the loan in full, and bear all expenses agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Provide relevant financial and accounting data, production and operation status data and other materials as required by Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party A shall notify Party B in writing within 3 working days after the occurrence of material adverse events affecting its solvency or other situations threatening Party B's creditor's rights, or changes in its name, legal representative (person in charge), domicile, business scope, registered capital or articles of association of the company (enterprise) and other industrial and commercial registration items, together with relevant materials after the changes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) Party A shall use the loan according to the purpose agreed herein, and shall not usurp, divert or use bank loan to engage in illegal or illegal transactions. Party A shall not use the loan to invest in fixed assets, equity or other investments, or use the loan to invest in stocks or other securities or equity investment;Party A shall not use the loan for futures trading;It shall not be used for fields and purposes prohibited by the state to produce and operate, and shall not be used to replace liabilities arising from Party A's fixed assets, equity and other investments; Shall cooperate with and accept Party B's inspection and supervision of its production, operation and financial activities, use and payment of loans under the same terms, and shall cooperate with and accept Party B's requirements for post-loan management;Shall not withdraw funds, transfer assets or use related party transactions;To avoid debts to Party B;Shall not take advantage of the false contract with the related parties to discount or pledge the creditor's rights such as notes receivable and accounts receivable without actual trade background to the bank to extract bank funds or grant credit;Party A shall pay the loan fund in accordance with this contract, and shall not evade Party B's entrusted payment by means of breaking the whole into pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) If Party A uses the loan hereunder for manufacturing, it shall comply with relevant national regulations on environmental protection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) Before paying off the principal and interest of the loan to Party B, Party A shall not use the assets formed by the loan under this contract to provide guarantee to any third party without Party B's consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VII) If Party A is a group customer, it shall timely report to Party B the related transactions of more than 10% of Party A's net assets, including: (1) the related relationship between the parties to the transaction; (2) Transaction items and nature of transactions; (3) the amount or corresponding proportion of the transaction; (4) pricing policies (including transactions with no amount or only a nominal amount);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VIII) Written consent of Party B shall be obtained before Party A conducts merger, division, equity transfer, foreign investment, substantial increase in debt financing and other major matters.However, Party B's written consent shall not affect Party B's right to take the relief measures agreed herein in the future if Party B considers that the above actions may endanger the security of Party B's debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IX) Party A shall regularly report to Party B on the use and payment of the loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The co-borrower and the borrowing enterprise shall have the same borrowing responsibility. Once Party B has issued the loan as agreed herein, Party B may claim all the creditor's rights from either the borrowing enterprise or the co-borrower.Neither the borrowing enterprise nor the joint borrower shall refuse to repay Party B due to any agreement within the borrower or any other objection.The borrowing enterprise shall not refuse to perform the repayment obligation on the grounds that the loan has been used or misappropriated by the co-borrower, nor shall the co-borrower refuse to perform the repayment obligation on the grounds that the loan has been used or misappropriated by the borrowing enterprise.

**Article 10 Rights and obligations of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B shall have the right to require Party A to repay the principal, interest and fees of the loan on schedule, to manage and control the payment of the loan funds, to dynamically monitor Party A's overall cash flow, to collect the loan in advance according to the withdrawal of Party A's funds, and to exercise other rights agreed herein. And require Party A to perform its other obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Grant the loan in accordance with provisions hereof, except for delay or failure caused by Party A or other reasons not attributable to Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall keep confidential the relevant financial information provided by Party A and the business secrets related to production and operation, except as otherwise stipulated by laws, regulations and rules, or required by the competent authorities or agreed by both parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party A and its staff shall not be offered or asked for or accepted bribes from them Bribe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Do not act in bad faith or harm Party A's legitimate interests. **Article 11 Liability for breach of contract and remedies for situations that endanger Party B's creditor's rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Circumstances and liabilities for breach of contract of Party B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) If Party B fails to issue the loan in accordance with this Contract without justifiable reasons, Party A may require Party B to continue to issue the loan in accordance with this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) If Party B has charged unchargeable interest or fees to Party A in violation of prohibitive provisions of national laws and regulations, Party A has the right to ask Party B to refund them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Breach of Contract by Party A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A breaches any provision hereof or breaches any legal obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Party A expressly or by its conduct indicates that it will not perform any of its obligations under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Circumstances that may endanger the claims of Party B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Any of the following circumstances which Party B considers may endanger the security of the debt rights hereunder: Contracting, custody (takeover), leasing, joint-stock reform, reduction of registered capital, investment, joint venture, merger, merger, acquisition and reorganization, division, joint venture, equity transfer, substantial increase of debt financing, (being) applied for business suspension and rectification, applied for dissolution, revoked, (being) applied for bankruptcy, and change of controlling shareholder/actual controller Or the transfer of major assets, production suspension, business closure, by the authority to impose a large fine, be registered, revoked business license, involved in major legal disputes, production and operation of serious difficulties or deterioration of financial conditions, credit status decline, the legal representative or the main responsible person can not normally perform their duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Under any of the following circumstances, which Party B considers may endanger the security of creditor's rights hereunder: Party A fails to perform other debts due (including debts due to institutions at all levels of China Construction Bank or other third parties), transfers property at low price or free of charge, relives debts of third parties, fails to exercise creditor's rights or other rights, or provides guarantee for third parties; Party A's financial indicators fail to consistently meet Party B's relevant requirements;Abnormal capital fluctuations occur in any of Party A's accounts (including but not limited to the fund withdrawal account and other accounts monitored by Party B); Party A has a material cross default event;Party A's main business profitability is not strong;Abnormal use of loan funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party A's shareholder abuses the independent status of the company legal person or the limited liability of the shareholder to evade debts, which Party B considers may endanger the security of the creditor's rights hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) Any of the preconditions for granting the loan agreed herein are not continuously met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) One of the following circumstances occurs to the co-borrower or guarantor, which Party B considers may endanger the security of the creditor's rights under this Contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Any breach of any provision or representation or warranty of this Contract or guaranty Contract In any falsity, error, omission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Contract, custody (takeover), lease, joint-stock reform, reduction of registered capital, investment, joint venture, merger, merger, acquisition and reorganization, division, joint venture, transfer of share rights, substantial increase in debt financing, (being) applied for suspension of business for rectification, applied for dissolution, revoked, (being) applied for bankruptcy, change of controlling shareholder/actual controller or material assets Transfer, transfer of property at a low price or free of charge, waiver of third-party debts, lazy in exercising creditor's rights or other rights, production suspension, business closure, by the authority to impose a high fine, be cancelled registration, revoked business license, involved in major legal disputes, serious difficulties in production and operation or deterioration of financial conditions, credit status decline, or no legal representative or main person in charge The normal performance of functions and duties under the law may affect the ability of the co-borrower or guarantor to undertake repayment or guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Other circumstances that may impair or threaten to impair the ability to repay or guarantee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) Under any of the following circumstances in the mortgage or pledge, which Party B considers may endanger the security of the creditor's rights hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Damage, loss or decrease in value of the mortgaged property or the pledged property due to acts of a third party, state expropriation, confiscation, requisition, free recovery, demolition and relocation, changes in market conditions or any other reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The mortgaged property or the pledged property is sealed up, seized, frozen, deducted, retained, auctioned, supervised by the administrative organ, or the ownership dispute occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The mortgagor or pledgor violates any agreement or statement and guarantee of the mortgage contract or the pledge contract, and there is any falsehood, error or omission;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Other circumstances that may jeopardize the realization of Party B's mortgage or pledge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VII) The guarantee is not established, not effective, invalid, revoked or discharged, and the surety breaches the contract or explicitly expresses or indicates by its conduct that it will not perform its surety obligations, or undertake Loss of the Insurer's ability to guarantee in part or in whole, reduction of the value of the collateral and other circumstances which, in Party B's opinion, may endanger the security of the claims under this Contract;Or other circumstances which Party B considers may endanger the security of the claims under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party B's remedies

In case of any of the circumstances set forth in Paragraph 2 or Paragraph 3 of this Article, Party B shall have the right to exercise one or more of the following rights without prior notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) to stop issuing the loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) to supplement the conditions for the granting and payment of loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Change the loan payment method in accordance with the provisions of this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) Declare the loan to be due immediately and require Party A to immediately repay the principal, interest and charges of all debts due and not due hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) Adjust, cancel or terminate the loan amount or adjust the term of validity of the loan amount accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) If Party A fails to use the loan for the agreed purpose, the interest and compound interest of the portion misappropriated by Party A shall be calculated and charged at the penalty interest rate and the settlement method agreed herein from the date of the loan being used for the agreed purpose to the date of full repayment of the principal and interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VII) If the loan is overdue, for the loan principal and interest which Party A fails to repay on time (including the loan principal and interest which Party B declares to be due in whole or in part ahead of schedule), the interest and compound interest shall be calculated and charged according to the penalty interest rate and the settlement method agreed herein from the overdue date to the date of full repayment of the principal and interest.Overdue loan means that Party A fails to pay off the loan on time or repay the loan in installments beyond the agreed time limit of the plan.

Before the maturity of the loan, the interest that Party A fails to repay on time shall be compounded according to the loan interest rate and settlement method agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VIII) Other relief measures, including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Transfer and receive corresponding amounts in RMB or other currencies from the account opened by Party A in the China Construction Bank System without prior notice to Party A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Exercising security rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Require Party A to provide new guarantees for all debts hereunder that meet Party B's requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Refuse Party A to dispose of the corresponding amount of deposits in the accounts opened by Party A in the China Construction Bank System (including but not limited to the fund withdrawal account);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Terminate this Contract.

**Article 12 Other Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Responsibility of expenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. All expenses (including but not limited to legal costs, arbitration fees, property preservation fees, travel expenses, execution fees, evaluation fees, auction fees, delivery fees, notice fees, attorney fees, etc.) incurred by Party A due to Party A's breach of any provision hereof or Party B's realization of the creditor's rights shall be borne by Party A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For other expenses, Party A and Party B agree as follows: <u>Unless otherwise agreed herein, Party A shall bear the expenses of storage, appraisal, lawyer services, insurance and other expenses (if any) in connection with the financing hereunder as well as the expenses that can be borne by the financing Party in accordance with laws, regulations and rules; Party B shall bear the expenses incurred by Party B in conducting due diligence on the financing hereunder.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Use of Party A's Information

Party A agrees that Party B shall inquire Party A's credit standing with the Financial Credit Information Basic Database and other legally established credit investigation institutions, and agrees that Party B shall provide Party A's information to the financial credit Information Basic Database.Party A also agrees that Party B may reasonably use and disclose Party A's information for business purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Notice collection

In case of Party A's default on the principal and interest of the loan or any other breach of contract, Party B shall have the right to notify the relevant departments or units, and shall have the right to announce the collection through the news media.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Evidence validity of Party B's records

Unless there is reliable and determined evidence to the contrary, Party B's internal accounting records relating to principal, interest, expense and repayment records, documents and vouchers made or kept by Party B in the process of Party A's handling of withdrawal, repayment and interest payments, and records and vouchers of Party B's collection of loans shall constitute valid evidence that the creditor relationship between Party A and Party B is confirmed.Party A shall not raise any objection merely because the aforesaid records, records, documents and vouchers are made or kept by Party B alone.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Rights reserved

Party B's rights under this Contract shall not affect or exclude any of its rights under laws, regulations and other contracts.Any indulgence, indulgence, preference or postponement of any breach or delay of any right hereunder shall not be deemed to be a waiver of any right or interest hereunder or an authorization or approval of any breach hereof, nor shall it limit, prevent or impede the continued exercise of such right or any other right thereof. Nor shall it cause Party B to assume any obligation or liability to Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. If Party A owes Party B other debts due in addition to the debts hereunder, Party B shall have the right to transfer the amount of RMB or other currencies in the account opened by Party A in China Construction Bank System to pay off any debts due first, and Party A agrees not to raise any objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. Transfer and collection of payables

For all amounts payable by Party A under this Contract, Party B shall have the right to transfer and receive the corresponding amount in RMB or other currencies from the account opened by Party A in China Construction Bank System Payment without prior notice to Party A.If it is necessary to go through the procedures of foreign exchange settlement and sale or foreign exchange trading, Party A is obliged to assist Party B to go through the procedures, and the exchange rate risk shall be borne by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viii. Dispute Resolution

Any dispute arising from the performance of this Contract may be settled through negotiation. If negotiation fails, it shall be settled in the <u>first</u> way of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party B shall bring a lawsuit to the people's court of the place where Party B is domiciled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Submit to the Arbitration Commission of ______ (the place of arbitration is______) for arbitration according to the application. The arbitration shall be conducted in accordance with the arbitration rules in force at the time of arbitration. The arbitration award is final. Both parties are binding.

During the litigation or arbitration, the provisions of this Contract which do not involve the disputed part shall remain to be performed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. Compulsory notarization

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Both Party A and Party B agree to apply to <u>Beijing Citic Notary Office</u> for notarization of creditor's rights documents with compulsory execution effect in connection with this Contract, and both parties are fully aware of the meaning, content, procedure and validity of the notarization of creditor's rights documents with compulsory execution effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) If Party A (i.e. If the borrower and the co-borrower are in breach of contract or may endanger the creditor's rights of Party B as set forth in Article 11, Party B shall have the right to apply to a notary agency or entrust a third party to issue the Certificate of Execution and apply to the people's court with jurisdiction for compulsory execution by virtue of the Notarial Certificate and the Certificate of Execution hereof without going through litigation procedures.Party A undertakes to voluntarily give up the right of defense and voluntarily accept the court with jurisdiction for compulsory execution according to law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Procedures for verifying the performance of the Agreement and the fact of breach of contract

First of all, Party B shall provide the notarial agency with the evidence that it has issued the loan to Party A in accordance with the provisions of this Contract and the application for enforcement.

Secondly, the parties hereto agree that the notarial agency shall adopt any of the following verification methods verify whether Party A is in breach of the contract stipulated in Article 11 or may endanger Party B's debt rights. The verification method shall be based on the name, telephone number, address and email of the contact person reserved by Party A in this contract or notarization application form.Party A promises that it will notify the notary agency in writing of any change in the verification method; otherwise, the name, telephone number, address and E-mail of the contact person reserved by Party A in this Contract or notarization application form shall prevail.The contact person reserved by Party A: [Yinglai Wang] Address: [10-1314 Shen Gang Metropolitan Square, Xinwu District, Wuxi City] Contact number: [18112388986] Email address: [ylwang@huhutech.com.cn].Party A agrees that the notarial agency may issue the Execution Certificate according to the certifying materials provided by Party B under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The notarial agency notifies Party A to reserve contact persons according to any of the above two ways of contact, but still cannot get in touch with them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party A has objections to the certification materials provided by Party B, but fails to provide contrary evidence or the contrary evidence is insufficient within three working days after receiving the notice from the notary public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party A has no objection to the certification materials provided by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) This clause shall prevail over the clause of "VIII. Dispute Settlement Method" in this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. Conditions for the validity of the Contract

This Contract shall come into force after the borrower authorizes the principal to represent the borrower and click "Confirm" as the co-borrower himself and completes the electronic channel secret inspection operation.

If the contract is signed offline, the contract shall come into force after it is signed by the Borrower's legal representative (responsible person) or authorized agent and affixed with the official seal, signed by the joint Borrower or authorized agent and signed by the person in charge or authorized agent of Party B and affixed with the official seal.

In the process of handling the business hereunder, the Lender shall conduct online banking and hand banking in China Construction Bank Tips, announcements, general knowledge and other information materials expressed to the Borrower by the Bank and other channels in connection with the business shall be an integral part of this Contract.

Ⅺ. Other agreed matters

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The parties hereto acknowledge and agree that: This Contract shall be signed by means of data messages approved by the parties;The electronic signature used by the Borrower in the Lender's electronic system shall be the reliable electronic signature agreed by the parties;The Borrower logs in to the Lender's electronic system in the mode of identity authentication recognized by both parties. Any operation after passing such mode shall be deemed to be done by the Borrower (or its authorized agent) and the Borrower undertakes to be liable for the legal consequences arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. When the Borrower transacts the loan through the Lender's e-banking channel, it shall abide by the e-banking service Agreement and the relevant business rules published by the Lender through its network, website or e-banking channels from time to time. The foregoing agreement and business rules shall be supplemented by the rights and obligations between the Parties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Agree on the delivery clause

Party A and Party B agree as follows on the place of service and legal consequences of various notices, agreements and documents related to this Contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Address for service

1) Party A confirms that its effective delivery address is:

Borrower: 3-1208 Tian 'an Wisdom City, 228 Linghu Avenue, Xinwu District, Wuxi City, Jiangsu Province

Co-borrower: A3-1208, Tian 'an Smart City, Wuxi

2) Party B confirms that its valid delivery address is 88 Wuai Road

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The applicable scope of the delivery address

The above address shall apply to the service of all kinds of notices, agreements and documents related to this Contract, including but not limited to the service of all kinds of notices, agreements and other documents during the performance of this Contract, as well as the service of relevant documents and legal documents in case of disputes arising from this Contract. It also includes the service of relevant documents in the first instance, second instance, retrial and execution procedures after the disputes enter into arbitration, civil proceedings and other procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Change of service address

1) If Party A needs to change the service address, it shall notify Party B in writing five (5) working days in advance and the written notice shall be delivered to Party B's service address;

2) If Party B needs to change the delivery address, it shall notify Party A by any means other than writing, mail, short message or announcement.

3) If either party changes its address in arbitration or civil action, it shall also perform the obligation to notify the arbitration institution or the court in writing.

4) After a party performs the obligation of notification of change as agreed above, its changed delivery address shall be the effective delivery address; otherwise, the previously confirmed delivery address shall remain the effective delivery address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Legal consequences

1) If the notice, agreement, legal documents and other documents fail to be actually received by the Party due to inaccurate address provided or confirmed by either party, failure to perform notification obligations in the aforementioned manner after the address is changed, or refusal by such party or its designated receiver to sign for receipt, the date of delivery of the documents shall be deemed as the date of delivery;In the case of direct service, the date of service shall be the date on which the person on the spot records the information on the return certificate of service.

2) For the above address, the arbitration institution or the court may serve the service by direct mail. Even if the parties fail to receive the documents served by mail by the arbitral organ or court, they shall be deemed to have been served because of the above agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The price and additional charges under this contract are tax inclusive of VAT. Unless otherwise agreed by the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Invoice

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Party B shall issue the invoice in accordance with Item (A) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If Party A requests for invoicing, Party B shall issue a VAT invoice for the amount payable in accordance with the law upon receipt of the payment made by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other Provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Billing information provided by Party A

Company name (full name) :

Taxpayer identification Number:

Bank account:

Bank of deposit:

Address:

Tel: 18112388986

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 If it is necessary to cancel the invoice or issue the invoice with red letters, Party A shall provide timely assistance as required by Party B.If Party A fails to void an invoice or issue a red-letter invoice due to reasons attributable to Party A, Party A shall compensate Party B for all losses, including but not limited to taxes, additional taxes, fines and late fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If Party A is an overseas institution of the People's Republic of China, and the price and other fees hereunder are subject to tax incentives in accordance with laws, regulations, rules or relevant provisions of the relevant authorities and need to be recorded for tax purposes, Party A shall, as required by Party B, timely provide Party B with sufficient and accurate VAT tax incentives recorded for tax purposes to assist Party B in completing tax collection filing, etc.

**Article 13 Declaration Clause**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A is well aware of Party B's business scope and authorized authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party A has read all terms and conditions of this Contract.At the request of Party A, Party B has made the corresponding terms and conditions of this Contract.Party A has fully known and understood the meaning of the terms of this Contract and the corresponding legal consequences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party A's execution and performance of obligations hereunder are in accordance with laws, administrative regulations, rules and provisions of Party A's articles of association or internal organization documents, and have been approved by the company's internal and/or national authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party A's production and operation are legal and compliant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Party A has sustainable operation capability and legal repayment sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Party A undertakes that all the loans hereunder shall be based on the real needs of the specific purposes of the loans and shall not exceed its actual needs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. Party A and its controlling shareholders have good credit standing and no significant bad record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viii. Party B shall have the right to entrust other branches of China Construction Bank to issue the loan hereunder and exercise and perform Party B's rights and obligations hereunder. Party A has no objection to this.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. Party A declares that it and its important affiliates do not have any behavior or situation in violation of environmental and social risk management laws, regulations and rules when entering into this Contract, and undertakes to strengthen its and its important affiliates' environmental and social risk management and strictly abide by laws, regulations and rules related to environmental and social risk management after entering into this Contract. To prevent environmental and social hazards and related risks (including but not limited to environmental and social problems related to energy consumption, pollution, land, health, safety, resettlement, ecological protection, energy conservation and emission reduction, climate change, etc.) caused by construction, production and business activities. Party B acknowledges that Party B shall have the right to supervise Party A's environmental and social risk management and shall have the right to require Party A to submit environmental and social risk reports.If the above statement of Party A is false or the above commitment is not performed, or Party A may cause environmental and social risks, Party B has the right to stop granting credit to Party A (including but not limited to refusing to issue loans, provide financing, issue letters of guarantee or letters of credit or banker's acceptance, etc.). Or declare the principal and interest of creditor's rights (including but not limited to loans, financing, advances made or may occur, etc.) to expire in advance, or take other relief measures agreed herein or permitted by law.

Party A (Borrower)

Borrower: JParty A (Borrower)

Borrower: Jiangsu Huhu Electromechanical Technology Co., LTD

Legal representative or authorized client:

Co-borrower:

Party B (Lender): China Construction Bank Corporation Wuxi Branch

Signed on: November 3, 2021

(The following signature seal office only applies to the offline contract signing mode)

Party A (official seal) :

Legal representative (responsible person) or authorized agent (signature) :

Co-borrower (signature) :

Date:

Party B (official seal) :

Person in charge or authorized agent (Signature) :

Date:

## Exhibit 10.16

**Exhibit 10.16**

![](ex10-9_001.jpg)

![](ex10-9_002.jpg)

![](ex10-9_003.jpg)

![](ex10-9_004.jpg)

## Exhibit 10.17

**Exhibit 10.17**

Page:1/5

![](ex10-10_001.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Vendor Code | 49015-560633 | PO NO | L6K-200054018437-AUKS | REV 0 |
| Vendor | Wuxi Huhu Electromechanical Technology Co., LTD | Agent |  |  |
| Contact | \*\*\*\*\*\* | Contact |  |  |
| Address | A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City | Address |  |  |
| Tel | \*\*\*\*\*\* | Tel |  |  |
| Fax |  | Fax |  |  |

---

Tax Registration Number: 91320214346537120H

---

| | | | |
|:---|:---|:---|:---|
| Payment | O/A 120 Days on 15<sup>th</sup> | Ship to | AU Optronics (Kunshan) Co., Ltd |
| Currency | CNY |  | No.6, Longteng Road, Economic and |
| Trade Term | DDP |  | Technological Development Zone, Kunshan<br> City, Jiangsu Province |
| Ship Way | BY TRUCK |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |
| Po prt date | 2020/12/8 0:00:00 | Bill to | AU Optronics (Kunshan) Co., Ltd |
| Tax | 9 |  | No.6, Longteng Road, Economic and |
| Buyer | Hu Tao |  | Technological Development Zone, Kunshan |
| Forwarder | Forwarder instruction & Payment Info: http://srm.auo.com/srm/srm.asp |  | City, Jiangsu Province <br> taxpayer's registration number: 91320583692597767W |
|  |  |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Line <br>Item No | Item Description<br> Maker Code<br> Supplier Item No | Qty<br> Deliver Date<br> Budget No | Unit Set | Unit Price<br> PR NO<br> Asset No | Amount Subinventory |
| 1 Y.NORMAL.EXP | L 6 KB mold thinning Local Scrubber new HF chloride ashamed value tester project in the room | 1.0000 | 8 | 63000.000000 | 63000.000000 |
|  |  | 2020/12/25 0:00:00 |  | 202000540983 |  |

---

---

| | | |
|:---|:---|:---|
| Amount |  | 63000.00 |
| 9 |  | 5670.00 |
| Total Amount | CNY | 68670.00 |

---

---

| | | |
|:---|:---|:---|
| ![](ex10-10_002.jpg) | ![](ex10-10_003.jpg) | ![](ex10-10_004.jpg) |
| 2020.12.08 | 2020.12.08 | 2020.12.08 |
| Buyer | Section Head/<br> assistant manager | Department head/<br> manager |

---

  <br> Vendor Signature

Page:2/5

![](ex10-10_001.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Vendor Code | 49015-560633 | PO NO | L6K-200054018437-AUKS | REV 0 |
| Vendor | Wuxi Huhu Electromechanical Technology Co., LTD | Agent |  |  |
| Contact | \*\*\*\*\*\* | Contact |  |  |
| Address | A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City | Address |  |  |
| Tel | \*\*\*\*\*\* | Tel |  |  |
| Fax |  | Fax |  |  |

---

Tax Registration Number: 91320214346537120H

---

| | | | |
|:---|:---|:---|:---|
| Payment | O/A 120 Days on 15<sup>th</sup> | Ship to | AU Optronics (Kunshan) Co., Ltd |
| Currency | CNY |  | No.6, Longteng Road, Economic and |
| Trade Term | DDP |  | Technological Development Zone, Kunshan |
| Ship Way | BY TRUCK |  | City, Jiangsu Province<br> Tel:+86-0512-50358800 Fax:+86-0512-50358512 |
| Port date | 2020/12/8 0:00:00 | Bill to | AU Optronics (Kunshan) Co., Ltd |
| Tax | 9 |  | No.6, Longteng Road, Economic and |
| Buyer | ![](ex10-10_005.jpg) |  | Technological Development Zone, Kunshan |
| Forwarder | Forwarder instruction & Payment Info: http://srm.auo.com/srm/srm.asp |  | City, Jiangsu Province <br> taxpayer's registration number: 91320583692597767W |
|  |  |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Line <br>Item No | Item Description<br> Maker Code<br> Supplier Item No | Qty<br> Deliver Date<br> Budget No | Unit Set | Unit Price<br> PR NO<br> Asset No | Amount Subinventory |

---

---

| | | |
|:---|:---|:---|
| To Supplier: | Please refer to the following precautions before shipment: | Please refer to the following precautions before shipment: |
|  | 1. | Use unit: repair and storage ext: 1071.; Mail:SiuCheng.Liu@auo.com |
|  | 2. | Purchasing personnel of this case: Hu Tao ext:1821. |
|  | 3. | Quotation number 1 Date :HHJDBJ20201027-1. |
|  | 4. | Delivery date: as required by AUKSuser. |
|  | 5. | Guarantee: None. |
|  | 6. | Payment terms :o1A120Dayson15th. |
|  | 7. | Upon receipt of the order, please contact the user immediately to confirm the detailed delivery date, sign and return to the Mail:Matt.Hu@auo.com |
|  | 8. | Please send the invoice and delivery note with the goods to the warehouse for acceptance, and label the order number, product name and delivery quantity on the invoice. After investigation, if not in accordance with this regulation, will be returned to the processing. |
|  | 9. | The actual delivery time shall be notified by the user. |
|  | 10. | Matters not mentioned herein shall be notified separately by referring to the laws and regulations of each receiving country and AU. |

---

\* AU Optronics The right to cancel or modify this order shall be notified in writing within 0 days after the date of the confirmation. The Supplier is aware of or holds any secrets of AU as a result of this order, Supplier agrees to maintain the confidentiality of any confidential information that is known to or held by you as a result of this mask and not disclose it to any third party.

\* When delivering the goods, please mark line and item.

\* The name of the product on the ticket must be the same as description the mask.

\* The amount of cover on the ticket should not be greater than the amount of cover and cover on the mask.

\* Supplier Consent - We agree that we will not receive any request or request from any third party on the basis of business, work, business, trial or other wisdom (whether registered or not) because the goods or clothing supplied by the supplier is removed, whether it is a finished or semi-finished product or a vaporware. The Supplier agrees to pay all costs, losses, expenses and damages arising therefrom (including but not limited to legal fees). Dong would like you to inform the skeleton such as master eggs or eyes for handsome, out of the pasta responsible tiger reason including reconciliation, Jin tune - cut phase mouse matters.

---

| | | |
|:---|:---|:---|
| ![](ex10-10_002.jpg) | ![](ex10-10_003.jpg) | ![](ex10-10_004.jpg) |
| 2020.12.08 | 2020.12.08 | 2020.12.08 |
| Buyer | Section Head/<br> assistant manager | Department head/<br> manager |

---

  <br> Vendor Signature

Page:3/5

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**··· Basic contract of AUO order ···**

\* On-time delivery is an important factor in the performance of this order. Au Optronics Limited (AUo) may cancel part or all of the order in the event of any delay due to reasons attributable to the supplier.

\* Supplier Guarantee: All goods or services supplied ("Goods") are new and unused. The Supplier is the sole owner of the goods supplied and has been authorized to sell the goods. The Supplier guarantees that the goods supplied are not available Subject to any legal disputes (including but not limited to: infringement of intellectual property rights litigation, validity of rights litigation), and at least 18 months from the date of final acceptance of the goods by AUo (if the final bargaining record or other written agreement is different from this period, the longest warranty period shall prevail), and guarantee that there is no weakness in design, materials and construction.

\* Supplier further agrees to guarantee, protect and indemnify AUo, its employees, its customers and consumers so that AUo will not receive any goods, whether finished or semi-finished or parts, from the Supplier Any claim or claim by any third party based on any right and intellectual property rights (including, without limitation, patent rights, Copyrights, trademarks, trade secrets or other intellectual property rights (whether registered or not). In addition, if Supplier breaches any term of this Order,AUo shall have the right to cancel the order, terminate the Contract and further cooperation. If any damage is caused to AUo,AUo shall be held responsible, Auo shall be directly offset and deducted from the purchase price and shall be legally claimed, and Supplier agrees to pay all costs, losses, expenses and damages arising therefrom (including but not limited to attorney's fees). And shall, upon notification of such claim or request by AUo, be responsible for handling all relevant matters including reconciliation and coordination.

\* If the products/processes/services to be purchased are used as vehicle types, the products to be purchased must comply with the laws and regulations of the following countries: country of receipt, country of shipment, country of destination identified by the customer.

\* Supplier further agrees to abide by the terms and conditions of the Sale and Purchase Agreement entered into with AUo.

\* Supplier agrees to maintain the confidentiality of any AUo confidential information known or held by Supplier in connection with this Order and not disclose it to any third party.

\* Supplier shall confirm acceptance of order by fax or other written confirmation within 7 days after receipt of order.

\* AUo may unilaterally notify Supplier in writing (by fax, E-mail or post) to "cancel" or "modify" this Order line by line prior to Supplier's return of this Order. Or AUo may "cancel" or "modify" this Order in writing to Supplier until Supplier has confirmed this Order and has not fulfilled it in full.

\* The invoice shall indicate the order number and material number, which will be collected at the receiving area of AUo when the goods are delivered. Suppliers who deliver the goods between the 25th and the end of the current month shall issue the invoice of the next month (next month) to AUo for payment.

  <br> Vendor Signature

Page:4/5

![](ex10-10_001.jpg)

\* The package shall be indicated: a. product name b. quantity c. AUo material No. d. supplier and compact name e. compact, valid date and batch No. f. Order No. g. Patent number (as necessary if available).

\* Initial shipment and supply suppliers shall provide 6 specification confirmation documents for AUo confirmation.

\* Except for consumables and spare parts. The shipment inspection report shall be placed in the top box with the words "The shipment inspection report is in this box".

\* Supplier shall not deliver in advance except by written notice from AUo.

\* VManufacturer network query payment website : http://srm.auo.com/srm/srm.asp

Delivery requirement

\* Supplier shall indicate this Purchase Order Number, Supplier Number and AUo Material Number on all delivery documents (including but not limited to: letters, uniform invoices, import and export documents, packing lists, delivery lists, bills of Lading), and AUo delivery lists shall be applied when delivering goods.

\* Delivery shall be in accordance with the delivery date and quantity specified in the purchase order (subject to quality requirements).

\* Unless otherwise agreed by both parties, a penalty of three thousandths (0.3%) of the total amount of the goods delivered late for each day of delay shall be imposed, and AUo shall have the right to cancel the order and directly offset the penalty with other payments.

\* The supplier shall take care to avoid bumping and falling during delivery and bear the risk of transporting the goods in transit.

\* The contents of invoices, bills of lading and documents related to customs clearance provided at the time of delivery shall be consistent with AUo's order. AUo shall be entitled to claim against the supplier for any loss caused by omissions.

\* The goods listed in this order are subject to inspection by AUo in accordance with the specifications and quality requirements of the order. When AUo has accepted the goods in writing or in other forms, the Supplier shall complete the delivery obligation. After the completion of the delivery obligation, the Supplier shall still be responsible for the product warranty.

Quality requirement

\* Goods contracted by the Supplier shall be contracted in accordance with the requirements set out in the latest specifications, blueprints and acknowledgement issued by AUo.

\* The Supplier shall respond within 24 hours after AUo notifies the Supplier of defective products, and repair or replace the defective products within 7 days, otherwise AUo may appoint a third party to repair the defective products at the Supplier's expense.

\* Incoming quality inspection shall be conducted according to the AQL level set by AUo and supplier.

\* The outer packing must be firm, moisture-proof and shock-proof.

\* Defective products shall be returned for repair in full compliance with the original AUo specifications.

\* The verification of external inspection materials, supplier handling and storage methods are based on AUo Quality Control specifications.

\* Supplier will notify AUo by VECA(Supplier Engineering Change Application) prior to any changes in materials, contracts, material suppliers and production locations in accordance with AUo's Change Management regulations.

\* Supplier shall comply with AUo product quality specifications (e.g. medical, automotive, aerospace...) .

  <br> Vendor Signature

Page:5/5

![](ex10-10_001.jpg)

Work safety requirement

\* The Supplier will perform the employer's duties in accordance with the law by conducting personnel health examinations, education and training, and taking out labor and accident insurance.

\* The supplier shall provide safety tools and equipment that meet the requirements of laws and regulations for the operators to use.

\* Supplier shall provide personal protective equipment that complies with regulatory requirements and CNS requirements.

\* The supplier shall have a good safety work plan and take good accident prevention measures.

\* Supplier shall be responsible for on-site safety supervision.

\* Supplier shall follow AUo personnel instructions.

Socially sound environmental responsibility (SER) requirements

\* supplier should understand, plan, and follow the electronic industry code of conduct (EICC, http://www.eicc.info/code.htmI).

\* Supplier shall cooperate with AUo's labor, environmental, safety, health and ethics audits.

\* Tier 1 suppliers and outsourcers should obtain ISo14001 certification, and non-qualified suppliers or new manufacturers should also obtain ISO 14001 certification within the year of becoming an AUo qualified manufacturer.

\* Supplier should be aware that any violation of EICC or relevant local laws and regulations will affect the Supplier's business cooperation with AUo and may result in AUo's direct termination of the business cooperation with Supplier. Green product requirements

\* Supplier agrees to supply AUo with products (including those from secondary suppliers) that do not use gold (Au), tin (Sn), key (W) and other minerals from illegal mining in the Congo and the adjacent Tiaotu region.

In the event of any breach of the above, Supplier shall immediately notify AUo in writing of its use of the minerals and shall dispose of the minerals in accordance with SEC regulations prior to shipment.

For the protection of personal information, unless it is necessary for performing the required job duties, it is strictly prohibited to process or use any personal information in the system. Please be reminded that any personal information may only be processed or used reasonably and adequately in strict compliance of Company's policy and within the scope of Company's authorization. Any wrongful use will be subject to both civil and criminal prosecution.

  <br> Vendor Signature

## Exhibit 10.18

**Exhibit 10.18**

Project contract of Hesheng Enterprises Limited

**Hefei Lanke Investment Co., LTD. Jinghe No.2 factory affairs and supporting projects**

GMS gas monitoring system materials and installation purchase and sale contract

Place of signing: Hefei City, Anhui Province Date of signing: April 1st, 2021

Contract Number: AY-LS-202104010800-01

Buyer: Hesheng Enterprises Co., LTD. (hereinafter referred to as Party A)

Address: 90 Mingguang Street, Renwu District, Kaohsiung City

Tel: +886 73747355,

Company Editorial: 28295912

Bank: Guotai Sehwa Bank

Account number: 059087087365

Contact: Lin Zhihong Tel: 1521 415487

Seller: Jiangsu Huhu Electromenchanical Technology Co.,Ltd. (hereinafter referred to as Party B)

Address: 3-1208 Tiananzhihui Compound, 228 Linghu Road,Xinwu District, Wuxi City, Jiangsu Province

Tel: 0510-88681689 Bank of deposit: North Wuxi Branch of China Construction Bank

Bank account number: 32001615036052517356

Company tax number: 91320214346537120H

Contact: Chen Xiaoming

Contact number: 17715531723

Contract mailing address: Room 339, Zone a, Building 21, Huaxiang Meidi, No. 1999, Xinbengbu Road, Xinzhan District, Hefei City

In accordance with the Contract Law of the People's Republic of China and other relevant laws and regulations, based on equality, mutual benefit, voluntary good faith

Upon full negotiation, Party A agrees to purchase and Party B agrees to sell the goods stipulated in Article 1.1 hereof

And agree as follows:

Scope of Supply and Contract Price:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Name, brand, specifications, origin, quantity, unit price, co-price, total price and VAT of the goods are listed in details

Attachment l.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 This contract is a fixed price contract, and the total contract price is 8,715,596 Yuan (not taxed). The contract price includes the subject matter, transportation fee, customs declaration fee, transportation insurance fee, packaging fee, factory acceptance test fee, after-sales service fee, proforma invoice and other related fees. The total contract price shall not be changed for reasons other than Party A's.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Changes to the Contract. In case of any changes during the execution of the Contract, Party A's notice shall prevail. Both parties shall make formal written documents as supplementary documents to the contract, which shall have the same legal effect as the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Technical Terms: See Appendix 1 of the contract for details;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment Terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Advance payment: Party A shall pay Party B 30% of the contract amount within 10 working days after the contract is signed

Payment (this payment shall be made within 5 working days upon receipt of the prepayment of the package);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Payment for goods: the goods shall be delivered in batches and paid in batches. After the goods arrive at the site, Party A, the owner and the supervisor shall conduct acceptance inspection together.

Accepted and signed complete delivery note;The proof of the signed receipt shall be the proof of the payment.Party a

Party B shall be paid 50% of the contract value of the goods within 30 days after the signing of the delivery note and receipt of the invoice

(The payment shall be made within 15 days after receiving the payment for the above package according to the contract payment of the above package);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Payment for commissioning test: After the acceptance test is confirmed by Party A, the owner, the supervisor and the management company, the contract shall be involved

15% of the total Contract price shall be paid to Party B after the completion and acceptance of the subject matter works by the owner.

The contract payment of the above package shall be paid within 15 days after receiving the acceptance settlement payment of the above package)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Quality guarantee: Quality guarantee: 5% of the final contract settlement amount shall be used as the quality guarantee after the project is accepted

Two years of interest-free payment;(The second payment shall be received according to the contract payment of the previous package

To be paid within 15 days after settlement)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 When Party B shall pay liquidated damages or compensation hereunder to Party A, Party A shall have the right to pay any of the above-mentioned sums

Direct deduction from payables.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Invoice Requirements: Before Party A makes the payment, Party B shall issue an invoice for the full amount of the contract, otherwise Party A has the right to refuse to make the payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Factory Inspection Requirements: Party A may go to the factory for acceptance and test at any time before delivery. If the goods are found not in conformity with the contract requirements,

Party A may suspend payment until the goods meet the contract requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 Mailing address: 338, Building 21, Yuzhou Central City, Xinbengbu Road, Xinzhan District, Hefei City, Anhui Province

Shangbing Ice Collection, 230012 Tel 19937099265

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 Invoice mailing address: No. 338, Building 21, Yuzhou Central City, Xinbengbu Road, Xinzhan District, Hefei City, Anhui Province, Shangbing Bing Collection, mail

Edit 230012 Tel :19937099265.

3 Delivery Terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Delivery time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1.1 Partial delivery: After the contract order is signed, Party B shall ensure the delivery to the place agreed in the contract on April 10, 2021

Party B must notify Party A one day in advance of the delivery truck information and the load of the truck.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Delivery method: Delivery of the vehicles designated by Party A at Hefei Jinghe Site;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Place of delivery: No. 88 Dayu Road, Yaohai District, Hefei City, Anhui Province (within the Comprehensive Bonded Zone);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Delivery contact person: Xie Wenyue, Tel: 15155112820;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Packing: Party B shall ensure that the packing of the goods is suitable for long-distance transportation (including sea transportation, road transportation and air transportation) and multiple times

Requirements for handling;Necessary measures shall be taken to prevent the goods from being damp, rusted, shaken and deformed during transportation.

Extrusion damage, contamination, loss, etc.;Ensure that goods are fully filled upon safe arrival at the delivery point

Meet the appearance and internal quality requirements specified in the contract and technical annex.If due to improper packaging or in the process of transportation

Party A is unable to receive the goods due to damage or loss of the goods caused by insufficient protective measures, all

Party B shall bear all the responsibilities, and Party B shall immediately take effective measures such as re-production, repair and replenishment

Goods that Party A can receive within a short period of time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 Delivery documents and documents: Party B shall provide with the goods the packing list and the original factory warranty of the goods, which are valid

3 copies of agency certificate, copy of Party B's business license and other complete sets of materials, with red official seal affixed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 Packaging recycling: Party B's packaging shall not be recycled and shall be disposed of by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 Special requirements: Engineers must be required to provide packaging, transportation and other requirements for special materials and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 The ownership and risks of the goods agreed herein shall be transferred from Party B to Party A upon completion of the payment, and the goods shall be delivered to Party A

All risks including transportation shall be borne by Party B.

4 Inspection and acceptance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Within five days after the delivery of the goods to the construction site, Party A and representatives of the supervision parties shall jointly check and accept the quantity, specifications, models, appearance and performance of the goods. If all or part of the goods provided by Party B are found to be inconsistent with the requirements of the Contract (technical requirements, quality, packaging, transportation protection, relevant documents attached with the goods, etc.), Party A shall have the right to refuse to accept the goods. If the goods meet the requirements stipulated in Party A's contract, Party A and Party B will jointly sign the delivery note.However, Party A's signing of the delivery note shall not exempt Party B from any responsibility for the quality of the goods.If the goods information provided by Party B is not complete, Party A has the right to refuse to sign the delivery note until the information is complete.

5 Debugging requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Party B must meet the personnel, equipment, time and schedule requirements required by Party A for commissioning. If Party B fails to meet the on-site commissioning schedule and quality requirements for reasons attributable to Party B, Party A shall have the right to take punitive measures and all expenses incurred thereby shall be borne by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Party A shall, five (5) working days prior to the commissioning conditions, notify Party B in writing of the personnel, equipment, time and schedule required for the commissioning, and Party B shall strictly comply with Party A's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 At the time of unpacking and acceptance, Party A and Party B shall be present and sign for confirmation;If Party B's personnel cannot be present, it shall be deemed to agree with the unpacking acceptance results issued by Party A.Fill in the proof of damage, instruct the transport unit or notify the seller by email, fax, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Signing of Delivery note: After Party B's goods are accepted and qualified, the delivery note shall be signed by the contact person or the designated warehouse keeper of the project as stipulated in the contract. The signed delivery note shall serve as the basis for final settlement. When Party B applies for progress payment, it shall be faxed or expressed to the commercial personnel of Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 As required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Party B's personnel shall prepare a debugging document signed and confirmed by Party A's on-site engineer after the commissioning. Otherwise, the debugging shall be deemed as unqualified or no debugging, and the document shall be used as the basis for the debugging payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 If commissioning is required in different working conditions in different seasons, the supplier must ensure the commissioning personnel for each working condition and the commissioning time agreed by Party A.The qualified debugging of the first working condition shall not exempt the responsibility for the debugging of the remaining working conditions. The product shall be deemed qualified only if the supplier passes the debugging of all working conditions.

6 Technical standards and quality assurance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Implementation standards of goods: On the premise of conforming to the current national standards, meet the requirements of the technical terms proposed by Party A (see Appendix 1 of the Contract for details);Party B warrants that the goods delivered are brand new, unused and in full compliance with the quality, specifications, performance parameters, brand, origin and other requirements set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Quality guarantee: The quality guarantee period of the goods shall be 24 months, which shall be calculated from the beginning of the normal operation of boot debugging.In case of quality problems occurring during the quality guarantee period, Party A shall have the right to deduct all the quality deposit. Meanwhile, Party B's personnel shall arrive at the site within 12 hours upon receipt of Party A's written or email notification, complete the replacement or maintenance work, and bear all relevant expenses incurred therefrom. Moreover, Party A shall have the right to hold Party B liable for breach of contract and compensation. The warranty period of the replaced goods or key parts shall be calculated according to the warranty of the original equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Process control: Party B shall report the production progress in writing to Party A's commercial personnel every Friday during the production process, and the report shall be the basis of payment.Party B must accept that Party A may come to the factory to supervise the production of the goods at any time during the production process.

Force Majeure: If either party is unable or temporarily unable to perform all or part of its obligations hereunder due to force majeure, it shall notify the other party of the occurrence as soon as possible and send the certificate of force Majeure issued by the authority to the other party within 15 days after the occurrence of the event.In such cases, the affected party remains responsible for taking all necessary measures to fulfill its contractual obligations.

Liability for breach of contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Party B's Responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.1 If Party B fails to deliver the goods on time, it shall pay a penalty of three thousandths of the value of the delayed delivery for each day delayed, with the maximum penalty of 10% of the contract value<sub>0</sub>In addition, if Party B's delayed delivery causes actual losses to Party A or Party A's owner exceeding the aforementioned amount of liquidated damages, the compensation shall be based on the actual losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2 If any of the following circumstances occur due to Party B, Party A shall have the right to unilaterally terminate the Contract and ask Party B to refund the payment for goods already paid by Party A. Meanwhile, Party A shall have the right to ask Party B to compensate Party A for all losses suffered thereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2.1 Delayed delivery (including partial delay) for more than 7 days due to reasons attributable to Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2.2 Upon delivery of the goods by Party B, if Party A finds that the goods delivered by Party B do not conform to the contract (technical requirements, quality, packaging, relevant documents accompanying the goods, etc.), Party A shall have the right to return the goods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.2.3 If Party B provides Party A with false or invalid certification documents, which makes the project unable to be completed and accepted or the owner claims for compensation, Party A shall have the right to claim against Party B in accordance with Article 9.3 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.3 Party B warrants that the commodities supplied meet the agreed quality and standards, and that the commodities are free from design or manufacturing defects and do not infringe any patents, trademarks or Copyrights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.4 If Party B's personnel need to go to the project site, they must comply with the construction site safety management system, and Party B is responsible for all the safety responsibilities of its personnel on site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1.5 If Party B breaches any circumstance during the performance of this Contract, Party B shall be liable to Party A for breach of contract by 10% of the contract amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Responsibilities of Party A:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.1 If Party A fails to make the payment on schedule, it shall pay a penalty of 3 ‰ of the amount of the late payment for each day of delay, which is not more than 10% of the contract amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2.2 If the shipment is delayed due to Party A, Party A shall notify Party B five (5) days in advance of the shipment date agreed herein.

7 Claim and Dispute handling:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 If the quality, brand, model and specifications of the goods provided by Party B are not in conformity with those agreed herein, including inherent defects or improper selection of materials, Party A shall have the right to claim against Party B. If Party B fails to reply within 10 calendar days after the claim is made by Party A, Party B shall be deemed to have agreed to make compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Party B shall ensure that the products provided by Party B are those produced by the manufacturer specified in the contract. If Party B sells fake and shoddy products to Party A, Party B shall bear all the losses caused to Party A, and Party A shall impose a fine of more than three times of the contract amount, Party B shall not refuse for any reason, and Party A shall have the right to directly deduct the fine from the payment for goods and claim for the lack of such fine from Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 If a third party claims against Party A due to the quality problems of the products provided by Party B, Party A shall have the right to recover from Party B in full for its losses, including but not limited to the liquidated damages paid by Party A to the third party, actual losses and other actual losses of Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Party B shall ensure that the invoices provided are authentic and formal invoices. If Party A or the tax authorities find out that there are illegal acts of tax evasion or tax evasion, such as overwriting, wrappers, fake tickets, etc., Party A shall impose a fine of 50% of the invoice value in question, Party B shall not refuse for any reason, and Party B shall bear the relevant legal liabilities arising therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 All disputes arising from the performance of this Contract shall be settled by both parties through friendly negotiation.If no settlement can be reached through negotiation, it shall be submitted to the court where the contract is signed for litigation settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Subject to the scope of responsibility expressly assumed by the original manufacturer of the Contract Equipment hereunder for the Contract Equipment, both parties agree that: In no case, to the extent permitted by Chinese law, shall Party B's liability to Party A and/or its indirect customers exceed the contract price paid for the particular product or service causing the claim or action, regardless of the form of claim or the cause of action (whether based on contract, tort, negligence, liability for consequences, other infringement, etc.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Any dispute or claim arising from product quality problems between the Buyer and the seller shall be based on the quality defect identification report presented by the third-party testing department recognized by the legal authority provided by the Buyer, and the testing expenses shall be borne by the responsible party.

10 Notice

The delivery address of Party A and Party B shall be subject to the provisions in the first text of the Contract.The service address of both parties shall be applicable to the service of various notices, letters, agreements and other documents in the non-litigation period of both parties, as well as the first instance, second instance, retrial and execution procedures after the contract disputes enter into arbitration or civil proceedings.If the address for service needs to be changed, either party shall perform the obligation of giving written notice; otherwise, the address for service confirmed by both parties shall still be deemed as the effective address for service. If the relevant documents are rejected, the date of return of the documents shall be deemed as the date of service.

11 Effective of Contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 This Contract shall come into force upon being sealed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 This contract is made in duplicate, with each party holding one copy.

12 Other Terms: The modification of this Contract shall be subject to the written documents signed by both parties. The annex to this contract shall be an integral part of this Contract and shall have the same legal effect.The rights and obligations hereunder shall not be transferred without the written consent of Party A (the written documents approved by Party A shall be stamped with the official seal of Party A, otherwise they shall be invalid).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. In case of any conflict between the annexes to the contract, the strictest requirements shall prevail:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 Appendix 1: Contract Goods List and Price list (each page shall be stamped with contract seal);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 Annex 2: Customs Declaration Process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 Appendix 3: Party B's business license, identity certificate of its legal representative, copy of ID card of its legal representative (each page shall be stamped with the company's official seal) and power of attorney.

![](ex10-19_001.jpg)

**Letter of Intent for project construction**

Party A: Hesheng Enterprise Co., LTD. (Anhui Xiancheng Trading Co., LTD.)

Party B: Jiangsu Huhu Electromechanical Technology Co., LTD

Based on the principle of equality and mutual benefit, Party A and Party B shall undertake the EPC project of Pinhe No.2 Factory and supporting projects won by Party A

The Gas Information Management System Project of Project 1 Gas Supply System Project has agreed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Scope of Contract: Construction of all main and auxiliary materials in the engineering standard list of the gas shelter information management system (gas detector and its collocation)

Provided by such pieces as a).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Contracting method: The project shall contract the construction of labor and materials and sign the Contracting Contract.

Construction period: execute the corresponding terms of the construction contract signed with the construction unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Quality: Execute the corresponding terms of the construction contract signed with the construction unit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Safe and civilized construction: Ensure safe and civilized site construction requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Settlement and Project Payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Payment of project money: 30% in advance. Cash on delivery. Progress payments back to back.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. Party B shall take care of all materials, machinery and tools.

The total contract price of the eighth contract is RMB 9499999.49(including 9% tax), please see the attached list for details.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. Other Agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A shall immediately sign the Contract with Party B upon receipt of the Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. After this agreement is signed.Party B shall first cooperate with Party A to place an order for construction materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If Party A fails to sign the Contract Room with Party B for other reasons, Party B has purchased the contract Room for the project. All the materials will be sold to Party A, and Party B will be compensated for the expenses incurred in cooperating with the project.

Party A (Signature

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| ![](ex10-19_002.jpg) | ![](ex10-19_003.jpg) |

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## Exhibit 10.19

**Exhibit 10.19**

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| National Memory Base Project (Phase I) Phase II project |  |
| **Project Number: SY-190009-GS** | Domestic equipment and material supply contract in bid Section D of gas detection and monitoring system |

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![](ex10-20_001.jpg)

**Changjiang Storage Technology Co., LTD**

**National Memory Base Project (Phase I) Phase II project**

Gas detection and monitoring system, bid section

Domestic equipment and materials supply contract Volume One

Project name: National Memory Base Project (Phase I) Phase II project project

Project location: In Wuhan Optical Valley Future Science and Technology City

Contract No: YMTC-SYC-04-TGM-013-D-S

Employer: Shiyuan Technology Engineering Co., LTD

Contractor: Jiangsu Huhu Electromenchanical Technology Co.,Ltd.

Date: July 09, 2021

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| National Memory Base Project (Phase I) Phase II project |  |
| **Project Number: SY-190009-GS** | Domestic equipment and material supply contract in bid Section D of gas detection and monitoring system |

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Catalogue of the first volume

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| | | | |
|:---|:---|:---|:---|
| Part I Equipment and materials order contract | Part I Equipment and materials order contract | Part I Equipment and materials order contract | **1** |
|  | **1.** | Buyer (purchaser) information | **1** |
|  | **2.** | The Seller (the Supplier) information | **1** |
|  | **3.** | scope of supply | **1** |
|  | **4.** | Equipment place of origin and manufacturer | **2** |
|  | **5.** | packaging standard | **2** |
|  | **6.** | Transportation and delivery of the goods | **2** |
|  | **7.** | delivery term | **3** |
|  | **8.** | insurance | **3** |
|  | **9.** | payment terms | **3** |
|  | **10.** | Supervision and acceptance | **4** |
|  | **11.** | advice of shipment | **4** |
|  | **12.** | quality assurance | **5** |
|  | **13.** | Seller's liability for breach of contract | **5** |
|  | **14.** | Buyer's liability for breach of contract | **5** |
|  | **15.** | Installation, commissioning and technical services | **5** |
|  | **16.** | Late delivery and liquidated damages | **6** |
|  | **17.** | Reverse payment | **6** |
|  | **18.** | vis major | **7** |
|  | **19.** | rescission of contract | **7** |
|  | **20.** | Dispute resolution | **7** |
|  | **21.** | notice | **8** |
|  | **22.** | Contract composition | **8** |
|  | **23.** | tack | **8** |
|  | **24.** | other | **8** |
| Part II: An annex to the contract | Part II: An annex to the contract | Part II: An annex to the contract | **11** |
|  | Annex I: Notice of winning the bid | Annex I: Notice of winning the bid | **11** |
|  | Annex II: Documents confirmed by both parties (q & A, addendum, clarification, etc.) | Annex II: Documents confirmed by both parties (q & A, addendum, clarification, etc.) | **15** |
|  | Annex III: Contract technical documents | Annex III: Contract technical documents | **22** |
|  | Appendix 4 List of recommended brands of equipment and materials | Appendix 4 List of recommended brands of equipment and materials | **24** |
|  | Annex V: Price items and configuration list | Annex V: Price items and configuration list | **25** |
|  | Annex VI: General purchase regulations | Annex VI: General purchase regulations | **28** |
|  | Annex 7: Packaging, g transportation and invoice instructions | Annex 7: Packaging, g transportation and invoice instructions | **35** |
|  | Annex 8: confidential lying-down | Annex 8: confidential lying-down | **38** |
|  | Annex IX: Integrity Agreement | Annex IX: Integrity Agreement | **41** |
|  | Annex X: Description of the beneficiary of the guarantee and the format of the performance Guarantee | Annex X: Description of the beneficiary of the guarantee and the format of the performance Guarantee | **43** |

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| National Memory Base Project (Phase I) Phase II project |  |
| **Project Number: SY-190009-GS** | Domestic equipment and material supply contract in bid Section D of gas detection and monitoring system |

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**Part I Equipment and materials order contract**

**Contract overview**

contract NO; <u>____________________</u>

<u>Contract content: Domestic equipment and material supply in bid section D of gas detection and monitoring system</u>

<u>Signed on: July 09, 2021</u>

Signed in: Beijing

&nbsp;&nbsp;&nbsp;&nbsp;**1.** Buyer
(purchaser) information

<u>Buyer: Shiyuan Technology & Engineering Co., LTD</u>

<u>Address: 6th Floor, Block C, Linglong Tiandi, No.160 West Fourth Ring North Road, Haidian District, Beijing</u> 

<u>Tel: 010-8819 3388</u> 

<u>Fax: 010-8819 3388-9989</u> 

<u>Contact person: Yang Zhihao</u>

<u>Email address: yangzhihao @ sdic.com, cn；</u>

&nbsp;&nbsp;&nbsp;&nbsp;**2.** The
Seller (the Supplier) information

<u>Seller: Jiangsu Huhu Electromenchanical Technology Co.,Ltd.</u>

<u>Address: 3-1208 Tiananzhihui Compound, 228 Linghu Road, Xinwu District, Wuxi City, Jiangsu Province</u>

<u>Tel: 0510-88681689</u> 

<u>Fax: 0510-88681689</u>

Contact person: Jia Yunyi

<u>Email address: yy.jia^huhutech.com, cn</u>

&nbsp;&nbsp;&nbsp;&nbsp;**3.** scope
of supply

Total untaxed contract price: RMB 2,173,551.00 (in words: Two hundred and one hundred chestnut ten thousand Jian thousand five hundred and fifty one yuan only);

Contract tax: RMB 282,561.63 (in words: two hundred and eighty-two thousand five hundred and sixty-one yuan);

Total contract price including tax: RMB 2,456,112.63 (in words: Two hundred and four hundred and fifty-six thousand one hundred and twelve and six points);

The pricing method used in this contract is: G / C auxiliary parts of the main system: fixed total price; HOOKUP auxiliary parts: fixed total price.contract value:

**1.** G / C main system accessories: RMB 875,368.06 (in words: eight thousand yuan)

**2.** <u>HOOKUP Part auxiliary material: selections 1,580744.57 (in words: one hundred four yuan) note: 1. The total price includes: equipment cost, materials, packaging, transportation, insurance, installation, commissioning, inspection, training, random attachment, VAT, all costs, and the contract without tax total price not due to policy, material, rate changes and other factors.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>2.</u>** <u>See the price list of Part II of the Contract.</u> 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>3.</u>** <u>For the specific technical parameters, see Annex IV of Part II of this contract: Equipment Price List.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**<u>4.</u>** <u>In case of change of national tax policy, the total contract price shall remain unchanged and the tax rate shall be implemented in accordance with the national tax regulations.</u> 

The Seller and the Seller agree to enter into this Contract according to the following terms:

Changes in goods (handled according to the following principles)

The Seller must unconditionally accept the change of the goods involved in the construction change instruction signed by the Buyer's representative.

Only the goods change involved in the design change and construction change instructions signed by the buyer's representative can be used as the basis for the increase or decrease of the total contract amount.

All change costs shall be subject to the fees audited by the owner and the employer, and the equipment change shall be included in the equipment progress payment. Note: Before implementing any instructions, the Contractor shall send the employer to confirm according to the requirements of the project process. If the contractor violates the procedures required by the employer to implement the instructions, the Contractor shall bear all the adverse consequences arising therefrom and bear the expenses arising therefrom, and the construction period shall not be postponed.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** Equipment
place of origin and manufacturer

<u>See the appendix of this contract: price item and configuration list</u>

&nbsp;&nbsp;&nbsp;&nbsp;**5.** packaging
standard

The product packaging standards shall comply with the provisions of the national or industrial technical standards, in addition to meeting the requirements of packaging, Marking, transportation and invoice instructions.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** Transportation
and delivery of the goods

The parties agree that the transportation and delivery of all goods hereunder shall be performed in the following way (1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>The Seller shall deliver the goods to the designated place of the Buyer's construction site and be responsible for unloading, and the Seller shall bear all the transportation and insurance costs. The construction site is located in Wuhan Optical Valley Future Science and Technology City, Wuhan City, Hubei Province. In the north is Sanhu Street, Keji Fifth Road in the south, Future Second Road in the west, and Future Three Road in the east. National Memory Base Project (Phase I) Phase II project project site delivery.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 seller shall deliver the goods to the destination port by consignment, and the buyer shall
 carry the goods by himself. The consignment fee shall be borne by the seller.

The target port is- -;

The consignment method is- - - -.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 buyer shall carry and transport the goods by itself.

The delivery place is- -0. The seller is responsible for the loading, and shall bear the loading cost.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** delivery term

7.1, date of delivery

The delivery period for all the goods under this contract is completed on June, 2022.

The buyer shall notify the Seller in writing of the specific delivery date.

The seller shall not deliver the goods in advance earlier than the day before the zero period stipulated in this article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** insurance

The seller shall insure the goods transportation safety insurance at 110% of the reset amount of all the goods. The Seller shall be responsible for full insurance and bear the premium for any loss or damage that may be caused in the manufacturing, purchase, transportation and delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** payment terms

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Within
 65 days after the contract becomes effective, the buyer shall pay 2Q% of the total contract
 price to the Seller as the advance payment, but the following conditions must be met:

<u>Both parties have completed the confirmation of the equipment basic drawing and other relevant technical conditions. The performance guarantee and irreversible amount issued by the seller is 20% of the total price of the equipment for 8 months. The form of the guarantee shall be confirmed by the employer and the owner before the issuance. The performance guarantee is issued directly to the owner.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Buyer shall pay 60% of the value of the contract goods delivered to the site of the previous
 month and accepted by the Buyer monthly, but the following conditions must be met:

<u>This batch of goods have arrived and opened the box, and delivered the specified equipment data (including delivery, factory inspection report, product certificate, installation manual, operation and maintenance manual, appearance drawings, basic drawings, drawings, certificate of lading, materials) for imported goods; received the special VAT invoice of the seller and the special VAT invoice of the corresponding amount (tax rate is 13%).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Within
 65 days after passing the handover and acceptance, the buyer shall pay 10% of the total contract
 price to the Seller after all the contract goods pass the commissioning test, but the following
 conditions must be met:

<u>The supplied equipment has passed the acceptance inspection after 72 hours of operation (if the commissioning time of this paragraph is inconsistent with the requirements of the corresponding bidding documents, the long operation time and strict requirements shall prevail.), Get the acceptance application report signed by the buyer and the relevant parties, complete the training of the buyer's technical personnel and obtain the written approval of the buyer's personnel, receive the seller's corresponding amount invoice (tax rate is 13%), and receive the seller's warranty and after-sales service commitment letter.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>(4)</u> <u>Within 65 days after the completion of the project settlement and the receipt of the full VAT special invoice provided by the seller (the tax rate is 13%).</u> The buyer pays 95% to 95% of the settlement amount.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the project quality guarantee gold for 5% of the contract settlement price, within 65 days after the expiration of the quality
guarantee period, and the seller has done the warranty obligations, by the employer deduct the warranty period should be borne by the
contractor quality related fines and other fees should be deducted, and signed the closing agreement with the contractor within 65 days,
return the contractor quality deposit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The
defect liability period stipulated in the contract is 24 months, starting from the completion and acceptance of the whole project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) All
the above amount shall be paid to the Contractor by the Employer in the proportion of the Contract. If the Employer fails to pay the
corresponding amount to the Employer, the Employer shall not be restricted by the aforementioned "65 days" payment period and
shall not bear any economic and legal liability for the delay of payment.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** Supervision
and acceptance

The Seller undertakes to supervise and inspect the processing, inspection and storage of the Contract Goods at any time and place as the Buyer considers necessary, and the Seller shall provide necessary and active assistance for such inspection.

Any inspection of the buyer on the quantity and quality of the goods delivered by the Seller shall be conducted on the basis of the seller's self-inspection, and the Seller shall deliver the proof of such inspection results at the same time as delivering the goods. The inspection certificate is made in duplicate. Without the inspection certificate, the buyer may refuse to accept it.

When the buyer shall notify the Seller's representative to attend the inspection of the goods; the time limit for the quantity and appearance of the goods shall be within 7 days after the opening.

The final acceptance of the equipment delivered by the Seller shall meet the continuous load operation of the equipment without any fault and meet other requirements specified in the technical annex of the contract. The trial operation time of this paragraph is general, and if the time is inconsistent with the requirements of the corresponding bidding documents, the long operation time and strict requirements shall prevail.

Any of the above inspection and acceptance by the Buyer shall not relieve the Seller from any quality liability for the Contract Goods.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** advice
of shipment

The parties agree that the Seller shall deliver the contract goods as specified in Article (1) below:

1) When shipped and delivered to the Buyer on the construction site according to the notice of the Buyer, the Buyer shall notify the Seller of the specific delivery date in writing 10 days in advance.

2) The goods shall be delivered according to the time limit agreed in the contract, but the Buyer shall be notified of the contract number, product name, quantity, total shipped, invoice amount, gross weight, ship name / vehicle / machine number and departure date, etc. not less than 72 hours before the arrival of the goods.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** quality assurance

The quality specifications of the goods delivered by the Seller shall comply with the provisions of the Contract, the appendix, national standards and the quality guarantee period shall be _ months after the contract goods pass the test acceptance and the overall acceptance of the project. During the term of the Contract, the Seller shall be liable for all the losses caused by the design or manufacturing defects of the Seller (or the manufacturer).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** Seller's liability for breach of contract

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|:---|:---|
| 13.1, | If the seller fails to deliver the goods, it shall, in addition to returning all the deposit, pay the Buyer a penalty of not less than% of the contract amount. |

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|:---|:---|
| 13.2, | If the variety, model, specification, quality and appearance of the goods delivered by the Seller do not conform to the contract, if the Buyer agrees to use the goods, the compensation method shall be agreed upon; if the buyer cannot use them, the Seller shall be responsible for the replacement and bear the expenses incurred by the replacement or return. If the seller cannot replace it (or cannot complete the replacement or refuse to replace it within the required time limit), it shall be treated as no delivery. |

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&nbsp;&nbsp;&nbsp;&nbsp;13.3. If
 the product packaging does not comply with the provisions of the Contract, the Seller shall
 be responsible for repairing or repackaging and bear the expenses incurred; If the goods
 are damaged or lost, the Buyer has the right to reject the goods and require the Seller to
 perform the obligations under the Contract on time. If the delivery is delayed due to the
 unqualified packaging, the seller shall pay liquidated damages to the buyer according to
 Article 16.

&nbsp;&nbsp;&nbsp;&nbsp;13.4. If
 the Seller delays in delivering the goods, it shall pay the Buyer liquidated damages according
 to Article 16 and bear all the losses incurred by the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** Buyer's liability for breach of contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. The Buyer returns the goods during the middle period under article 1.5 of the general purchase provisions of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. If the Buyer fails to provide the technical requirements and technical data according to the time and requirements specified in the Contract, the Seller's delivery date may be postponed accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.** Installation, commissioning and technical services

The Seller shall assign experienced technicians to perform the installation and commissioning of the equipment under the Contract. After the commissioning is qualified, both parties shall sign the test run qualification certificate.

The Seller shall be responsible for completing the training of the Buyer's equipment operation / maintenance personnel.

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During the equipment installation and commissioning and quality warranty period:

<u>Contact person: Jia Yunyi Tel.: 15961809165 Email: wjia @ huhutech.com.cn</u>

Contact person and contact number of Buyer during installation and commissioning of equipment at construction site:

<u>Contact person: Wang Jin Tel: 18722452292 Email: wangiin @ ceedi.cn</u>

&nbsp;&nbsp;&nbsp;&nbsp;**16.** Late
delivery and liquidated damages

Except for the reasons of force majeure, if the Seller fails to deliver the goods to the contract according to the time specified in the contract, the buyer agrees to postpone the delivery on the condition that the seller shall pay liquidated damages. The liquidated damages may be deducted upon the payment of the goods. The penalty rate shall be 0.5% for each 1 day delayed in delivery. However, the total amount of such liquidated damages shall not exceed 20% of the total contract price<sub>o</sub>If the Seller delays the delivery beyond 15 days stipulated in the contract, the seller shall be deemed to fail the delivery and the buyer has the right to terminate the contract. At this time, the Seller shall, within 3 days after receiving the written notice from the Buyer to terminate the contract, return the deposit and pay the Buyer liquidated damages according to the provisions of Article 14 above.

The Seller shall bear all the losses suffered by the Buyer due to the delay in delivery.

If the delivered equipment (or system) fails to complete the commissioning of the single machine (or system) within two days of the Seller due to design defects, quality problems, poor service and other reasons after the commissioning conditions are met, the Buyer shall have the right to request the Seller to pay liquidated damages. The liquidated damages may be deducted upon payment of the contract amount. The liquidated damages rate shall be calculated at L% of the total contract price for each delayed delivery day and on insufficient days. However, the total amount of such liquidated damages shall not exceed 10% of the total contract amount, and the Seller shall compensate the buyer for all losses incurred thereby.

Special agreement on single commissioning: if the performance assessment fails to meet the acceptance standard, the Seller shall pay the Buyer 5% of the contract price and continue to take remedial measures according to the requirements of the buyer. The Seller shall bear all the costs and (or) the delay, and compensate all the losses suffered by the Buyer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.** Reverse payment

&nbsp;&nbsp;&nbsp;&nbsp;17.1. Reverse
payment means the related expenses incurred by the completion of the Company of the Buyer within the scope of the Seller's contract.
This fee shall be paid by the Seller to the Buyer for the following but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) At
the request of the Seller, the Buyer or the company selected by the Buyer shall complete the work within the scope of the Seller's contract,
and the Buyer shall file the reverse payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Because
the seller did not finish the work in the terms of the contract and serious overdue, or the seller has completed work, meet the quality
requirements and repeated rework still did not improve or refused to rework, or the seller negligence or omission work, the buyer has
the right to notify the seller to this part of the work content, and completed by the buyer or the buyer selected company.own

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The costs incurred (including the removal of unqualified products) shall be borne by the Seller and the Buyer shall make reverse payment.

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|:---|:---|
| 17.2, | Within 24 hours of receipt of the reverse payment letter, the Seller shall fax the Buyer a signed reverse payment reply to accept or agree to complete the work covered by the reverse payment within the required planning period. Because the work involves manpower, materials, and the use of equipment. |

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&nbsp;&nbsp;&nbsp;&nbsp;17.3. Before
the Buyer starts the work covered by the reverse payment, the Seller. If the Seller refuses to sign the letter, the Buyer may choose
to continue the work covered by the reverse payment and deduct the cost of the reverse payment from the total contract amount given to
the Seller. Within 30 calendar days after the commencement of the reverse payment work or upon the completion of the work, subject to
the earliest arrival date of the two, the buyer shall invoice the reverse payment fee to the Seller, who shall pay the invoice in full
within 15 calendar days upon receipt of the invoice.

&nbsp;&nbsp;&nbsp;&nbsp;**18.** vis
major

The Seller shall not be liable for any failure or delaying of delivery due to force majeure during manufacturing or shipment. In the event of the above circumstances, the Seller shall immediately notify the Buyer and, within two days, send to the Buyer a certificate of event issued by the local private Chamber of Commerce. In this case, the seller is still responsible to take all necessary measures to speed up the delivery. If the accident continues above the working day, the buyer has the right to cancel the contract.

&nbsp;&nbsp;&nbsp;&nbsp;**19.** rescission
of contract

Unless otherwise agreed in the Contract, if the Seller has any of the following circumstances, the Buyer may terminate a written notice in whole or part of the Contract when the notice reaches the Seller:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Seller waives the performance of the Contract or is unable to continue to perform the Contract or expressly indicates that it fails to perform or has substantially stopped the performance or expressly expresses its intention to continue to perform its obligations in accordance with the Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The seller is in bankruptcy, liquidation, insolvency, becoming a person subject to enforcement for trust-breaking and may lose the ability to perform the contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) In the course of performing the Contract, the Seller violates the principle of good faith, conducts fraud, or conducts other acts that conflict with its obligations under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The Seller shall suspend the contract work without any reasonable explanation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The contract expressly stipulates the circumstances under which the buyer has the right to terminate the contract.

In any of the above events or circumstances, the Buyer may terminate the Contract with fourteen (14) prior notice to the Seller. The buyer's choice to terminate the contract shall not prejudice its other rights under the contract or other provisions.

&nbsp;&nbsp;&nbsp;&nbsp;20. Dispute
resolution

Any dispute arising out of, or in connection with, this Contract shall be settled through negotiation. If no agreement can be reached through negotiation, either party may submit it to the Beijing Arbitration Commission for an award in Beijing in accordance with the arbitration rules of the Arbitration Commission, and the award shall be final and binding on both parties.

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&nbsp;&nbsp;&nbsp;&nbsp;21. notice

All notices are written in Chinese and delivered to the parties by fax or email / express mail at the address specified in clauses 2 and 3 of this part. In case of a change in address, one party shall notify the other party in writing within 3 working days after the change.

<u>Buyer's address: 6th floor, Block C, Linglong Tiandi, No.160, West Fourth Ring North Road, Haidian District, Beijing</u>

**<u>Fax: 010-88193388-9989 Tel.: 010-88193388</u>**

Email address (E-mail): <u>____</u> /

<u>Seller's address: A3-1208, No.228, Linghu Avenue, Xinwu District, Wuxi City</u>

<u>Fax: 0510-88681689 Tel.: 0510-88681689</u>

Email address (E-mail): <u>____</u> /

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.** Contract composition

The following documents shall be deemed to constitute and shall be an integral part of the reading and understanding of the Contract. The contract documents that constitute the Contract shall state and complement each other. Unless otherwise agreed in the body of the contract or listed in the attachment, if the ambiguity or contradiction between the contract documents, or obvious errors in the contract documents, according to the following order to explain (small serial number file priority, for technical requirements, such as contradiction and inconsistent, suggested in accordance with the higher standards or strict requirements shall prevail):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Part
I Equipment and materials order contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Part
II Annex I: Notice of winning the bid

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Part
3 Answer questions, addendum documents and clarification documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Part
II Appendix III: Contract technical documents (package definition documents, technical specifications and drawings)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Part
II Annex V: General purchase regulations

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Part
II Attachment VI: Instructions for packaging, marking, transportation and invoice

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Part
II Annex VII: Confidentiality Commitment letter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Part
II Annex VIII: Agreement on Integrity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) section
two Annex 9: Format of the letter of guarantee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) section
two Annex IV: Price breakdown list

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) part
three bidding documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) part
three bidding documents

All the contents in [annex] are an integral part of this Contract and have the same legal effect as the text of the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.** tack

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.1 Obligations of the Seller to cooperate with the audit:

The Seller shall, at the request of the Buyer, unconditionally accept and cooperate with the audit conducted by the Buyer or the accounting firm entrusted by the Buyer or the relevant government department related to the Contract, including the audit related to the subcontract conducted by the Buyer or the accounting firm or the relevant government department. In the subcontract, the Seller shall require the subcontractor to accept the same audit requirements as this Contract, including the subcontractor shall unconditionally accept and cooperate with the buyer or the audit related to the subcontractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.** other

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.1. This contract is written in the Chinese language. This contract has two (2) originals, with each party holding one (1) originals, four (4) copies, buyer flea (3) copies and seller one (1) copies. It shall take effect from the date when the authorized representatives of both parties sign and affix the official seal or special seal for the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.2. The production and binding costs of this contract text shall be borne by the Seller.

8#/9

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|:---|:---|
| National Memory Base Project (Phase I) Phase II project |  |
| **Project Number: SY-190009-GS** | Domestic equipment and material supply contract in bid Section D of gas detection and monitoring system |

---

![](ex10-20_002.jpg)

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| | | | |
|:---|:---|:---|:---|
| Through letter the earth location: | North West Fourth Ring Road, Haidian District, Beijing No.160, Linglong Heaven and Earth, Block C | &nbsp;&nbsp;Through letter the earth location | A3-1208, No.228, Linghu Avenue, Xinwu District, Wuxi City |
| legal representative: | Wen-sheng huang | &nbsp;&nbsp;legal representative | Wang ushered in |
| entrusted agent: |  | &nbsp;&nbsp;entrusted agent |  |
| unite tie electricity word: | 010-8819 3388 | &nbsp;&nbsp;unite tie electricity word | 0510-88681689 |
| pass true: | 010-8819 3388-9989 | &nbsp;&nbsp;pass true | 0510-88681689 |
| open one-panelled door silver Line: | ICBC Beijing Gongzhufen Sub-branch | &nbsp;&nbsp;open one-panelled door silver Line | Bank of Jiangsu, Wuxi New District Sub-branch |
| account No.: | 0200004609200060653 | &nbsp;&nbsp;account Number | 20710188000336308 |
| identification number of the taxpayer: | 91110000710931686J | &nbsp;&nbsp;identification number of the taxpayer | 9132 0214 3465 37120H |

---

---

| | | | |
|:---|:---|:---|:---|
| contacts: | Yang Zhihao | &nbsp;&nbsp;Business contacts: | Jia Yunyi |
| Contact number: | 010-88193388 | &nbsp;&nbsp;Contact number: | 0510-88681689-815 |
| mail box: | yangzhihao@ceedi.cn | &nbsp;&nbsp;mail box: | yyj ia@huhutech.com.cn |
| zip code: | 100142 | &nbsp;&nbsp;zip code: | 214142 |

---

9#/9

## Exhibit 10.20

**Exhibit 10.20**

**CEFOC China Power Fourth Company**

Integrated Circuit Demonstration Line Project (Phase I) Project Secondary installation project

**Process heating belt/jacket package**

Project code: 21091

Contract number: CEFOC-HBZB-BJJDECP-21091-B-009

Company name: China Electronic System Engineering No.4 Construction Co., LTD

Subcontractor: Jiangsu Huhu Electromechanical Technology Co., Ltd.

Place of signing: Shijiazhuang, Hebei Province

Date of signing: June 8, 2021

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| ![](ex10-21_001.jpg) | 专 业 分 包 合 同 |

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**Catalogue**

1. Text of the Contract

2. Annex I Description of the Scope of the Project

3. Annex II Bill of Quantities valuation table

4. Annex III Brand Table of Equipment and Materials

5. Annex IV Construction Specifications and Technical Requirements

6. Related drawings in Annex V

7. Schedule and time nodes of Project in Annex VI

8. Annex VII Project Organization Structure and Resumes of important
members

9. Annex VIII Investment Plan of Construction Machinery and Tools

10. Appendix IX Power of Attorney

11. Annex
11 Principles of Application for Approval and replacement of materials and equipment

12. Annex
X dimethyl shall provide provisions on the management and use of materials

13. Annex
XIII Provisions on the Management of Supplies

14. Annex
14 Agreement on Safe Construction

15. Annex
15 Quality Agreement

16. Annex
16 Confirmation of Wage Payment for Migrant Workers (Form)

17. Annex
17 Subcontractor Integrity Undertaking

18. Annex
18 Anti-Commercial Bribery Agreement

19. Annex
19 Confidentiality Agreement

20. Annex
20 Project Warranty Agreement

21. Annex
21 Description of the models of lump-sum Contract and Fixed Unit Price Contract

22. Annex
22 Clarifying Document

23. Annex
23 Agreement on the Management of the Real-Name System for Construction Workers

24. Confirmation
of attachment

25. Letter
of undertaking for Guarantee

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| ![](ex10-21_002.jpg) **中电四公司** | 专 业 分 包 合 同 |

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**In full text**

**Contractor (Party A): China Electronic System Engineering No. 4 Construction Co., LTD**

---

| |
|:---|
| Address: 16th Floor, Zhongdian Information Building, <br> 356 Zhongshan West Road, <br> Shijiazhuang City, Hebei Province |
| Tel: 0311-66033506<br> Fax: 0311-66033582 |
| Bank of deposit: China Construction Bank Co., LTD. <br> Shijiazhuang Xinhua Branch |
| Bank account number: 13001615108050003238 |
| Social Uniform Credit Code: 911300001043234377 |
| Contact person: Sun Zhaowei<br> Tel. : 15962128478<br> Zip code: 050051 |

---

**Project subcontractor (Party B):** 

Jiangsu Huhu Electromechanical Technology Co., Ltd.

Address: 3-1208 Tiananzhihui Compound, 228 Linghu

Road,Xinwu District, Wuxi City, Jiangsu Province

Zip Code: 214028

Tel: 0510-88681689

Fax:

Bank of deposit：China Construction Bank Co., LTD. Wuxi North Branch

Bank account number: 32001615036052517356

Social Unity Credit Code: 91320214346537120H

Contact person: Wang yinglai

Contact number: 18112388986

In accordance with the Contract Law of the People's Republic of China, the Construction Law of the People's Republic of China and other relevant laws and administrative regulations, abide by the principles of equality, voluntariness, fairness and good faith, whereas. <u>Beijing Jidian Holding Co., LTD.</u> (hereinafter referred to as the Employer) and the contractor have entered into the general construction Contract (hereinafter referred to as the "General Contract"), and Party A and Party B have reached agreement on the following project contracting matters through negotiation It is agreed that this Contract is concluded:

**1. Process name:** <u>integrated circuit norm line item (Phase I) item second assembly machine process</u>

**2. Project location:** <u>B10M1, East Road, Beijing Economic and Technological Development Zone, Daxing District, Beijing, China</u>

**3. Scope of project:** <u>process drawing design and material collection of Heating jacket system construction and other work content proposed by the owner</u>

<u>Purchase, installation, commissioning, completion quality inspection, fluid supply cooperation, as-built drawings drawing, training, after-sales service, quality assurance period</u>

<u>Maintenance, etc., or related construction management operations, as described in "Appendix I Description of Scope of Work" of this Contract.</u>

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| ![](ex10-21_002.jpg) **中电四公司** | 专 业 分 包 合 同 |

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**4. Provisions on Project Price and Payment:**

**4.1. Contract Price: The contract price shall be paid in the following**<u>(2)</u> **ways:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Fixed total Price: The fixed total price including tax hereof shall be <u>（/）</u>RMB（Yuan only in words： <u>/);</u>The fixed total price shall be based on the bidding documents, technical requirements, drawings, project scope and brand provisions of this Contract, and shall not depend on actual workload or materials

The quantity is subject to variation in the difference between the bid budget and the market price, unless the change is requested and approved by Party A in writing (see this Contract)

Article 13 "Variations and Claims").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Fixed unit price, settlement based on actual conditions: The provisional total price of the contract including tax is RMB <u>7,553,017.27</u> Yuan only (RMB in words: <u>seven million five hundred and fifty-three thousand and seventeen point two seven</u>);The fixed unit price herein shall be the delivery price of finished products (after completion), including all labor costs, materials costs, machinery and tools, freight costs, protective equipment costs, finished product protection costs, taxes and other expenses related to the production or construction work required by Party B to provide the finished products or successfully complete the work (as noted in this Contract)

Except for the contents explicitly provided by Party A, site changes and temporary on-site cooperation are not included in the unit price hereof).

4.1.1. The price list and brand list of key equipment and materials
are set forth in "**Appendix II Bill of Quantities Valuation Table**" and "**Appendix III" of this Contract materials brand list** ".

**4.1.2** If Party B optimizes the project covered by this Contract, it shall not carry out the project until it
 is approved by Party A, the Employer and the Designer. In addition, Party B shall share with Party A the cost saved after
 optimization, and Party A shall share no less than 50% of the cost. During the contract period, if the amount of work increases or
 decreases, the total amount of the contract shall be adjusted according to the unit price table agreed by both parties during the
 tender offer, and based on the actual amount of work finally completed In case of any unit price not listed in the contract list,
 Party A and Party B shall confirm the unit price list again as the basis for final settlement.

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**4.1.3.** Party A shall promptly notify Party B in writing of the addition
of project or the change of project scope. Any change to this Contract (including the adjustment of price or contract content) shall
be executed by Party A in a modified (additional) contract or supplementary agreement, and all modification contracts or supplementary
agreements shall include the final settlement statement of the Contract. Shall be affixed with the official seal or special contract
seal of both parties consistent with this Contract.

The seal of the project department is invalid.

**4.1.4** The final settlement hereof shall be audited by Party A's
audit department, and the final settlement price hereof shall be the price set forth in the official settlement letter signed by both
parties Shall prevail.

**4.1.5** Party B shall complete the settlement and submit it to Party
A within 20 days upon receipt of the Completion settlement Notice issued by Party A. If Party A has any objection to the Completion settlement
application form submitted by Party B, Party A shall have the right to request Party B to make amendments and submit supplementary materials,
and Party B shall submit the revised Completion Settlement application form.If Party B fails to complete the completion settlement report
within 20 days upon receipt of the Completion Settlement Notice issued by Party A Party B shall be deemed to have accepted the completion
settlement report unilaterally issued by Party A, and Party B shall not claim any rights against Party A accordingly.

**4.2.** **Terms of Payment:** The following payment shall be subject
to Party A receiving the corresponding payment from the Employer.

**4.2.1.** **Payment schedule and proportion:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Advance payment:** After the contract is signed, Party B shall enter the site with machinery, tools, materials and construction manpower, and Party A shall confirm that it has the start clause After signing the contract, Party B shall pay <u>15%</u> of the total contract price as advance payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Progress payment:** The progress payment of the Contract shall be made in accordance with method <u>1</u> below:

1) Monthly payment:

Party B shall submit the written application for the progress payment (including the list of completed works) on the 25th day of each month, and Party A shall receive the written application from Party B Within 10 working days after the application, Party B shall complete the audit of the project quantity, completion status and cost, and the amount of approval shall be the completion of the current month <u>80%</u> of the works shall be paid from 15th to 30th of the next month.

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2) Payment by project node:

<u>Not applicable</u>

After the completion of the above nodes, Party A shall pay the node payment between 15th and 30th of the next month after its review and confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Completion payment:** <u>80%</u> of the actual accumulated work completed or the contract price shall be paid after the subcontracted construction is completed and verified by Party A; If the actual accumulated workload is greater than or equal to the contract price, the payment for completion shall be calculated on the basis of the contract price;

If the actual accumulated workload is less than the contract price, the calculation of the completed payment shall be based on the actual accumulated workload.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) Settlement payment:** the settlement shall be handled by both parties upon completion and acceptance of the subcontracted project, and shall be paid within 30 days after completion of settlement

To <u>97%</u> of the total settlement price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5) quality guarantee:** <u>3%</u> of the total settlement price shall be the quality deposit, which shall be paid in one lump sum upon expiration of defect liability and completion of all defect repair responsibilities by Party B and confirmation by Party A. The quality guarantee deposit shall be free of interest. The defect liability period of the Contract Project is <u>24</u> months. The defect liability period refers to the period when Party B undertakes the defect repair obligation as agreed in the contract and Party A reserves the quality guarantee fund, which shall be calculated from the date of completion and acceptance of the project. After the expiration of the defect liability, Party B shall continue to undertake the quality warranty in accordance with the warranty period agreed herein

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Obligations.

**4.2.2** Party B shall not delay the wages of workers or the service
fees of relevant personnel.If Party B is in arrears with the wages of service workers or the service fees of relevant personnel, Party
A has the right to suspend the payment of the service contract and directly pay the wages of workers on behalf of Party B. Within 2 days
after Party A pays the wages of its personnel or the labor time related to the personnel in advance on its behalf, Party B shall unconditionally
return the total amount paid to Party A. At the same time, the interest rate is calculated at 24%
per year.

**4.2.3** Party B shall submit special invoice together with each payment
request, otherwise the Contractor shall have the right to refuse to pay the payment and the contractor shall not assume any liability
for breach of contract or compensation. However, the invoice amount is different from the settlement amount, and the settlement shall
be made by both parties according to the specific project The settlement documents shall be handled according to the facts.

**4.2.4.** **Invoice requirements;** Before Party A pays each amount
to Party B, Party B shall provide the corresponding amount as required by Party A. <u>Tax rate of special invoice for value-added</u> tax: <u>9.00%</u>; The invoice issued by Party B must be a genuine and valid invoice corresponding to this Contract. If an invalid or
illegal invoice is issued, Party B shall bear a penalty fee of 50% of the face value of the invoice, no less than RMB 50,000 Yuan, and
bear all liabilities arising therefrom. Invalid invoices include but are not limited to the following situations: issuing false or invalid
invoices or issuing or providing invoices in violation of national laws and regulations; Wrong type of invoice issued; The invoice tax
rate is inconsistent with the contract; Wrong information on the invoice; Failure of invoice authentication due to Party B's delay in
delivery, issuing errors and other reasons. If Party B fails to issue a special VAT invoice to Party A in accordance with provisions
of the contract and laws, it shall bear losses caused to Party A, including VAT input tax, urban construction and maintenance tax, education
tax surcharge, local education tax surcharge and enterprise income tax <br>
And other actual losses. Party B agrees that Party A shall
pay the project fee to Party B after deducting the tax losses listed in this Article.

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Party A shall have the right to recover the full part from Party B.

**4.2.5** Without written consent of Party A, Party B shall not transfer
any project money to a third party or entrust a third party to collect it.

**5.** **Duration and progress of the Project:** 

**5.1.** Commencement and completion date: Commencement date: <u>May 25, 2021</u>; completion date: <u>May 25, 2022</u>; Party B exceeds

If Party B fails to start work within the specified period, Party A shall have the right to terminate the contract and hold Party B liable for breach of contract. The term of the contract works is not agreed or approved by Party A in writing If Party B fails to complete the project within the time limit, Party A shall hold Party B liable for breach of contract.

**5.2** **Project progress Time Node:** Please refer to "**Project Progress Time Node" in Appendix VI of this Contract.** 

**5.3.** Party B shall submit the construction plan, and Party A shall
implement the plan after its review and confirmation; Party B shall proceed with the project as determined or agreed by Party A

Party B shall organize the construction according to the plan. If the actual project progress does not conform to the confirmed project progress plan, Party B shall propose modification as required by Party A The measures shall be implemented after Party A's confirmation.

**5.4.** Without written consent or approval of Party A, Party B shall
not suspend the construction. In case of temporary suspension for special reasons, Party B shall properly guarantee such suspension

Party B shall take charge of the project, notify Party A immediately, and deal with the project according to the opinions agreed by both parties.

**5.5.** If the project needs to be rushed, Party B shall not refuse
after Party A gives a written notice, and shall immediately organize the implementation and give detailed instructions

The implementation plan shall be submitted to Party A for approval.

**5.6** Party B shall unconditionally cooperate with Party A in completing the completion of the whole project
 to the Employer and shall be responsible for the completion of the project within its scope Party A shall provide relevant support and cooperation
for all relevant work.

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**5.7** Party
B shall not delay the construction period for any reason (except for reasons caused by Party A and force majeure), if Party B fails to
comply with the Contract owner and Party A Party A shall have the right to arrange other personnel to complete the work on behalf of
Party B, or directly purchase materials and equipment, and deduct the actual expenses from the contract amount of Party B. If the actual
expenses exceed the original contract price, Party B shall separately pay the insufficient part. In case of significant impact on the
construction period caused by this, Party B is unable to take action In case of effective remedies, Party A shall have the right to terminate
the contract and replace the subcontractor. All losses caused thereby shall be borne by Party B.

**5.8** When the construction period is adjusted, Party B shall actively
cooperate with Party A to adjust the construction period accordingly and shall not ask for any delay fee.

**6.** **Responsibilities of Both Parties:** 

**6.1.** **Responsibilities of Party A:** 

**6.1.1.** Party A shall monitor and manage the whole construction process
of Party B, and coordinate the employer, supervision company, project management and construction

Consider the relationship between the company and other construction units. To participate in all coordination meetings for the contract works organized by the Employer.

**6.1.2** Party A shall provide construction management, liaison and
support to ensure the smooth completion of the project.

**6.1.3** Party A shall designate appropriate technical, quality and
safety personnel to conduct all-round inspection, supervision, control and guarantee of Party B's work.

To ensure the smooth progress of the entire construction work.

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**6.1.4.** Party A shall have the right to request the replacement of Party B's on-site management personnel
 who are not competent for the position. After Party A makes such request in writing, Party B must reply within 24 hours, send the resume of
the replacement personnel to Party A for review, and arrive at the site within 48 hours after agreeing.

**6.1.5.** Party A shall have the right to remove construction personnel from Party B's team who cannot
 adapt to site requirements or do not comply with site management of Party A upon negotiation by both parties After the agreement is reached, Party B shall execute it
unconditionally.

**6.1.6** During the execution of this Contract, if Party B fails to
perform the work within the scope of this Contract for any excuse or reason, Party A shall have the right to entrust such work to Party
B

All expenses incurred by a third party in carrying out the construction shall be deducted from Party B's contract and Party B shall bear all losses arising therefrom.

**6.1.7.** Party B shall assist Party B in checking the size and shape
of relevant reserved holes and other possible management, coordination and cooperation.

**6.2** **Responsibilities of Party B:** 

**6.2.1.** Party B designates special management personnel and organizations
to be responsible for the management and coordination of the whole project. The personnel present must be approved by Party A and shall
not be replaced arbitrarily during the construction. The signer of the contract must guarantee to be on site for more than 5 days per
week, and any other management personnel and workers on site must be approved by Party A for leaving the site. Party B shall provide
a list of the main management personnel of the project. Party B shall not change or withdraw the personnel in the list, including the
on-site personnel, without authorization during the project implementation

Responsible personnel, construction team leader, technicians, safety personnel, quality personnel, etc., otherwise Party B will pay Party A a fine of RMB 20,000 per person.

**6.2.2** Party B shall allocate labor force and equipment according to **"Appendix VIII Construction Equipment Input Plan"** hereof to ensure that the schedule requirements are met. Otherwise,
Party A shall have the right to take necessary measures (excluding the introduction of new teams) and bear the relevant expenses arising
therefrom.

And Party B shall bear the relevant responsibilities arising therefrom.

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**6.2.3** Party B shall, as required by Party A, provide all Party B personnel
working on the construction site with uniform labor protection supplies (work clothes and horses) Clips, protective gloves, working shoes,
etc.).

**6.2.4** Party B shall carry out construction in accordance with and
abide by the relevant national safety operation regulations to ensure safety without accidents and strive for a civilized construction
site, if any Party B shall be solely responsible for any accident.

**6.2.5** Party B's informal workers (family members, children, etc.)
shall not enter the construction area; otherwise, in case of any accident, Party B shall bear the responsibility and all expenses and
compensate Party A for the losses caused thereby, and Party A shall have the right to directly pay all expenses from Party B's project

The expenses shall be deducted from the project.

**6.2.6.** Before construction, carefully consult the construction technical
specifications and relevant requirements, accept the guidance of Party A's personnel, be familiar with the installation procedures of
the project, and carry out construction in strict accordance with the designer's construction requirements and construction drawings;
In the process of construction, Party A shall strictly follow the technical instructions of Party A's technicians

The technical guidance and supervision company shall supervise and manage on site. In case of any breach, Party B shall be responsible for any loss caused.

**6.2.7** During the whole construction process, Party B shall comply
with the rules and regulations of the main contractor, the employer, the supervision company and Party A. Party B must fully obey the
unified management of Party A's site management personnel (including safety, quality, schedule, cost, logistics, regular meeting and
other systems). In case of disobedience to management, poor construction quality, serious waste, poor quality of construction personnel,
failure to complete the construction period, slack work or neglect

In case of damaging the company image, Party A shall have the right to impose economic penalties or even terminate the contract.

**6.2.8** Party A shall ensure that the personnel used shall comply with
the requirements of relevant national laws and regulations and Party A's relevant regulations, and shall prohibit the use of child labor.

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For details, **see Appendix 7: Project Organization Structure and Resume of Key Members.**

**6.2.9.** Assign special personnel to remove construction wastes at any
time during the construction process to keep the site clean;At the same time, ensure that the site is clean after the completion of construction.

**6.2.10.** Party B shall abide by national laws and relevant regulations,
do business in good faith, and is strictly prohibited from offering bribes to Party A's relevant personnel. Once found or verified, Party
B shall strictly comply with **"Party B's Letter of Sincerity Commitment in Appendix 17" and "Anti-Commercial Bribery Agreement in Appendix 18" hereof.** 

The relevant provisions of this Contract shall be implemented.

**6.2.11.** Without Party A's written consent, Party B shall not assign
any rights and obligations hereunder.If Party B does not have Party A's written consent

If Party B agrees to transfer the rights and obligations hereunder without authorization, Party B shall pay a penalty equal to 10% of the total price hereof.

**7.** **Safety Provisions:** 

Party B must strictly abide by Party A, the employer and all other applicable safety regulations to ensure the safety of construction. In the course of construction, if any work-related accident occurs to Party B or any loss to a third party is caused by Party B, Party B shall bear all responsibilities and expenses

Party B shall guarantee that Party A shall not suffer any loss as a result of such accident. P**lease refer to Appendix XIV Safe Construction Agreement for the relevant provisions.**

**8.** **Quality Assurance:** 

**8.1.** The warranty period of this contract is subject to the "Project Warranty Agreement"
 attached to the contract. Party B shall solve any problems arising from Party B's original causes during the warranty period
 within the time required by the Employer/Party A;If Party B fails to reply within 6 hours after receiving the notice from the
 employer/Party A or fails to arrive at the site within 48 hours after receiving the notice from the employer/Party A, Party A shall
 have the right to arrange other personnel to solve the problem and deduct 2.5 times of the actual cost from Party B's
 guarantee deposit. If Party B's guarantee deposit is not enough to cover such cost, Party B will

Party B will compensate otherwise.

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**8.2** Party B shall guarantee that all materials, equipment, accessories and spare parts provided by Party B
 in the Contract Project are qualified products and conform to Chinese standards and specifications, technical standards and brand
 requirements of the employer and Party A. Party B shall purchase the main materials before entering the project

It shall be submitted for approval and approval, and acceptance shall be carried out after entering the site, including material, specification, brand, quantity, etc.

**8.3** **Party B shall provide Party A and the Employer with relevant valid certificates of the type and quality of all materials, equipment, accessories and spare parts used.** If the materials and equipment provided by Party B do not
 meet the requirements of the brand, are shoddy, fake, have quality defects, do not meet the requirements of the standard or do not
 meet the requirements of this contract, Party A shall impose a fine of 10% of the amount of the subcontract on Party B and ask for
 it within a specified time limit

Party B shall be requested to make rectification.

**8.4.** **Party B must carry out construction in accordance with relevant current national construction codes and comply with relevant special regulations of the employer, Party A and the supervisor.** Party
B shall make rectification within the time required by the supervisor, the employer and the supervision department of the company for
any behavior that is not in conformity with the relevant regulations and provisions of the employer;If Party B fails to make rectification
on time or cannot make rectification, Party A shall have the right to impose 2-5 percent of the output value of such defect on Party
B 5 times the fine (including the value of equipment and
materials).

**8.5** **Party B shall guarantee that the equipment and devices manufactured by Party B in the course of construction are in full compliance with the quality requirements of the Contract and the attachments hereto** 

Quantity, performance and specification requirements. During the warranty period, Party B shall manufacture the equipment based on the processing technology, materials, installation and debugging

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Party B shall be responsible for any problems and failures arising from the defective defects. In case of such occurrence, Party A and the Employer shall immediately notify Party B,

Party B shall correct or replace the defective parts free of charge without affecting the construction progress and production.

**8.6.** **Before the project is accepted and delivered to the Employer, Party B shall be responsible for taking care of the project within the scope of the Contract, and any fault may be caused during this period** 

Party B shall be responsible for solving any problems or failures.

**8.7** **The quality of materials, equipment and engineering provided by Party B shall comply with the requirements set forth in this Article and the Contract in "Original Rules for Approval, Examination and Replacement of Materials and Equipment in Annex 11", "Provisions on the Management of Materials supplied by Party B in Annex 13" and "Quality Agreement in Annex 15", as well as the Employer and Party A** 

Party A's on-site reward and punishment regulations. In case of any conflict between these requirements and regulations, the stricter requirements or regulations shall prevail.

**8.8.** **If Party B fails to meet the quality requirements during construction, Party A shall have the right to stop Party B's work and require Party B to make rectification.** 

Party B shall be responsible for all the losses caused thereby, and the construction period shall not be postponed. If Party B fails to complete the work in accordance with the requirements of the employer and Party A, Party A shall have the right to arrange other personnel to complete the work on behalf of Party B and deduct the actual cost from Party B's contract amount. If the cost exceeds the original contract price, Party B shall pay for it separately. If Party B fails to take effective measures to remedy the problem due to its inability to meet its substantive capabilities and the addition of other personnel, Party A shall have the right to terminate the Contract, and further

Party B shall change subcontractors and bear all the losses caused thereby.

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**8.9** **If the final acceptance of the project is affected by the quality problems of Party B's construction, or any losses are caused to Party A, Party B shall be fully liable** 

And expenses.

**9.** **Engineering Maintenance:** 

Prior to the formal acceptance of the Project, except as stipulated in the preceding article, all completed or uncompleted projects or materials, machines and tools provided by Party A or on the site of Party B shall be kept by Party B;In case of any damage or loss, Party B shall be responsible for repairing or making up the works and shall not accept them

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Claim any storage charges.

**10.** **Engineering Insurance:** 

Party B shall be responsible for insuring labor insurance, accident insurance and other insurance for all Party B's staff in the Project, and for insuring its own personnel and construction machinery and equipment in the construction site and paying insurance fees, so as to protect the rights and interests of the staff. In the event of any disaster, Party B shall bear all the responsibilities and losses, and bear the penalties and consequences of the disputes caused by the incompletion of the work or the relevant local administrative departments. In the event of an insured event, Party B shall have the responsibility to take necessary measures to prevent or reduce losses. If Party B fails to purchase insurance as agreed herein and causes personal and property losses, all liabilities and expenses shall be borne by Party B.If Party A pays the corresponding expenses on behalf of Party B or causes losses to Party A as a result, Party A has the right to directly deduct the project expenses from Party B

All payments.

**11.** **Subcontracting and subcontracting:** 

Unless approved by Party A in writing, Party B shall not subcontract or subcontract the Contract Works in whole or in part. Otherwise, Party A shall have the right to terminate the contract Party B shall also file a claim for compensation, and all losses arising therefrom shall be borne by Party B.

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**12.** **Project commissioning and acceptance:** 

**12.1.** **For all the work within the scope of this Contract, Party B shall, according to the requirements of Party A, complete the relevant self-inspection, special inspection and debugging within the specified time, and submit a written acceptance application. After Party A submits the acceptance to the Employer, the supervisor and the designer, The work shall be deemed to have passed the acceptance inspection and can be transferred or transferred to the work of the next process.** The final
 acceptance of the project shall also be accepted by Party A, the supervisor and the designer, and then finally accepted and signed
 by the employer and relevant government departments

The work certificate shall be regarded as the final acceptance.

**12.2.** **Party B shall provide all the manpower, machinery and other necessary instruments required for acceptance free of charge;** After the completion of the project, Party B shall participate in the
overall project

Commissioning, and running test.

**12.3.** **Party A and the Employer shall organize the acceptance inspection, which shall be delivered to the Employer for use after being accepted and signed by the supervision unit and relevant experts** 

The final acceptance certificate shall be issued to Party B, and the project shall enter the warranty period.

**12.4.** **If Party B fails to pass the acceptance inspection on time due to Party B's reasons, Party A reserves the right to claim compensation, meanwhile, the warranty period shall be extended accordingly.** After the acceptance of
 the work process, Party B shall immediately carry out the quality guarantee period if there are quality problems within the
 construction scope of Party B that affect the operation

Make corrections; otherwise, Party A and the employer may make corrections on behalf of Party B, and the expenses incurred shall be deducted from Party B's quality guarantee fund.

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**12.5.** **The standard of acceptance shall be based on the drawings and requirements of construction technical specifications and standards in the attachments to the Contract.** 

**13.** **Changes and claims:** 

**13.1.** **Before the final acceptance and handover of the whole project, Party A has the right to instruct Party B to make any changes to the project in the form of a notice.** Upon receipt of the change notice, if Party B considers that
 the change will cause an increase or decrease in the total contract price, it shall immediately notify Party A so that both parties
 can follow the instructions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. 1 of this Contract as agreed.

**13.2.** **Unless Party A has issued a written change order prior to the execution of the Works, any claim for the above changes or additional works shall be made** 

The claim will not be accepted.

**13.3.** **Only changes approved by Party A in writing may cause changes and adjustments in the contract price.** All changes to the Contract must be made by Party A

A written approval by Party A and a formal amendment contract or supplementary agreement as stipulated in Article 4.1 shall be effective.

**14.** **Suspension and termination of the Contract:** 

If the general contract between Party A and the employer is suspended or terminated, this Contract shall be automatically suspended or terminated. The relevant settlement matters shall be settled by both parties through negotiation. The settlement shall be based on the amount of works actually completed on site. In such case, Party B shall comply with the Employer's arrangement and shall have no right to do so

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Claim compensation from either party to the contract.

**15.** **Provisions on compensation for delay in construction:** 

If Party B fails to complete the work required by this Contract within the completion date and milestone time set forth herein due to Party B's reasons, it shall pay for each delay

For each late day, Party B shall pay or deduct 1.0% of the total contract price, and Party A reserves the right to make further claims.

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**16.** **Force Majeure:** 

Force majeure refers to any event that cannot be reasonably foreseen, controlled or avoided, including but not limited to: war, laws, regulations, government policies or natural disasters such as earthquakes or floods. In the event of force majeure, Party A and Party B shall be responsible for minimizing all losses

Minimize. Party B shall actively cooperate with Party A and negotiate to handle relevant matters according to the employer's disposition of the project

**17.** **Methods of dispute Settlement:** 

All disputes arising out of or in connection with this Contract shall be settled by both parties through friendly negotiation

If so, the case shall be submitted to Shijiazhuang Arbitration Commission for arbitration.

**18.** **Patent Rights and technical confidentiality:** 

Party B shall guarantee the confidentiality of the technologies exclusive to Party A or relevant parties that it uses or has access to in the project, and shall not use such technologies to serve other parties without the permission of Party A or relevant parties. Otherwise, Party B shall be deemed to have violated the rights of Party A or the rights of relevant parties, Party A and relevant parties

Party A shall have the right to claim compensation. For details, see Appendix 19 Confidentiality Agreement.

**19.** **Composition and priority of interpretation of Contract Documents:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) This Contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Annexes to this Contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Bidding documents for the Project

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Contract documents signed between the Employer and Party A
except for the project price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Relevant technical specifications and mandatory provisions
of the country

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**20.** **General knowledge** 

The delivery addresses of Party A and Party B shall be subject to the provisions in the first text of the Contract. The service address of both parties shall be applicable to the service of all kinds of notices, letters, agreements and other documents in the absence of litigation by both parties, as well as the first instance, second instance, retrial and execution procedures after the contract disputes enter into arbitration or civil proceedings. If either party needs to change the address for service, it shall perform the obligation of giving written notice, failing which, both parties shall confirm

If the relevant documents are rejected, the date on which the documents are returned shall be deemed as the date of service.

**21.** **Commencement of the Contract and other:** 

**21.1.** **This Contract shall come into force upon being sealed by both parties;** 

**21.2** **The contract is made in Chinese and is made in quadruplicate, with each party holding two copies and each copy having the same legal effect.** 

**21.3.** **If this Contract needs to be modified or supplemented, both parties shall sign a written supplementary agreement which shall have the same legal effect as this Contract** 

Force.

**21.4** **All fines imposed by Party A on Party B shall be directly deducted from the progress payment of the current month (small amount of fines shall be paid by individuals in advance), and** 

The notice of deduction shall be issued.

**21.5** **Party A shall have the right to deduct the expenses caused by Party B's mistakes (including the employer, other contractors and any third party as well as Party A to Party B)** 

Party B's penalty fees) shall be directly deducted from the project fees.

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**21.6** **Party B shall not delay payment of wages to its workers, otherwise Party A has the right to stop any payment to Party B until the dispute over the arrears is settled** 

End. If the normal construction or business of Party A (or the Employer or any third party) is artificially interfered with due to Party B's delay in payment of workers' wages, Party A shall have the right to deduct the corresponding amount from any payment payable to Party B and directly pay to the corresponding creditor so as to quell the interference to the normal construction or business of Party A (or the Employer or any third party). Whenever Party A pays workers' wages or other personnel service expenses in advance to Party B, Party B shall unconditionally refund the total amount within 2 days after such advance payment

The advance payment shall be refunded at an interest rate of 24% per year. Party B agrees to this article.

**21.7** **Party B's unit and its authorized representative (project manager) shall be fully responsible for any wage dispute or industrial injury dispute involving migrant workers.** In the event of such disputes, Party A

Party B's unit and its authorized representative (project Manager) shall pay Party A twice the amount paid in advance, and

The authorized representative (project manager) shall be jointly and severally liable for compensation;If other losses are caused to Party A, the authorized representative shall be investigated

(Project manager) personal liability for compensation;The authorized representative himself has no objection to this article.

21.8 Matters not covered herein shall be settled by the parties
through negotiation.

The following text is omitted.

Representative (signature):

**Party A: China Electronic System Engineering No. 4 Construction Co., LTD**

**(Seal)**

Representative (signature):

Dated: June 8, 2021

Party B: Jiangsu Huhu Electromechanical Technology Co., LTD

![](ex10-21_004.jpg)

(Seal)

Representative (signature)

Dated: June 8, 2021

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | Professional sub-package together |

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**Annex I Project Scope description**

**1. Description of Heating Jaket&tape professional engineering scope**

1. Summary:

&nbsp;&nbsp;&nbsp;&nbsp;1.1 This project is a new process machine installed at FullScale
(including process machine, measuring machine, testing machine and laboratory)

Machines, etc.) or other derivative plant related facilities secondary distribution metering engineering project safety, quality, schedule and documentation management

Management.

hookup project and management include the process drawing design, material purchase, installation, commissioning, completion quality inspection, fluid supply cooperation, as-built drawing, training, after-sales service, maintenance during the quality guarantee period or related construction management of the construction of various professional systems and other work content proposed by the owner;For details, please refer to the bidding documents and engineering quantity clearance

Single and other contents.

&nbsp;&nbsp;&nbsp;&nbsp;1.3 Disclosure of construction safety and construction technology
made by project Department engineers shall be annexed to this Contract and have the same legal effect as this Contract. If there is any
objection to the description of the scope and content of construction, the latest version of the owner's construction shall be used

The description of scope and content shall prevail.

2. Heating Jaket&tape professional construction contents are as follows:

The work scope of the secondary piping project is:

Jacket construction scope: The Heating Jaket&tape pipe heated by HDC and the work book needs to be covered by jacket.

Construction scope of tape: HDC and the special gas pipeline with heat required by the work book shall be taped.

The detailed contents and specifications are subject to the bill of Quantities and manufacturer's manual.

**2.** **Relevant requirements and instructions of the construction scope** 

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Site construction requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Site secondary piping involves opening and plugging of ceiling and storage board, which shall be included in the construction scope of Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 All auxiliary materials used in the construction of this project include but are not limited to: all section steel supports and hangers (SubFAB is made of hot-dip galvanized material,

MainFAB is made of stainless steel), beef leg, lead rod, screw, nut, gasket, rubber gasket, Teflon forming gasket, EPDM forming gasket, pipe bracket, pipe clamp, PU tube cap at the end of the lead rod, pressure dial, pressure gauge hose, SUS304 hoop, acid and alkali resistant hose and aluminum foil hose in accordance with the requirements of the owner, Stainless steel Bellows and clamps, PFA hoses and joints and blind covers, stainless steel swagelok joints and other accessories, as well as other special accessories, bracket notches and welding anti-rust and anticorrosive materials, etc., shall be purchased and installed by Party B, and the above materials shall meet the requirements of the Owner, and the corresponding materials shall be provided

Information, quality certification documents, delivery list and other documents. If they are not provided in time, they will be regarded as unqualified materials and will be dismissed

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Penalties will be given;

&nbsp;&nbsp;&nbsp;&nbsp;1.3 The installation of all materials and equipment includes but is not limited to unloading, lifting,
 handling and secondary handling of materials and equipment, unloading and installation of touching, accessories, including all work
 related to debugging. Installation and debugging of all materials and equipment include and do not Limited to the installation of
 auxiliary equipment and the cooperation of the manufacturer related work;

&nbsp;&nbsp;&nbsp;&nbsp;1.4 Construction machinery and equipment, climbing operation equipment
(such as: scaffolding, crane, forklift, bend arm car, lift car, etc.), II

Party B shall be responsible for the secondary handling equipment (such as flatbed truck, forklift truck, crane, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;1.5 Party B shall be responsible for the construction and installation
of temporary stacking room for materials, pipeline welding prefabrication room and other materials required by Party B.

Meanwhile, it shall adjust and move the room free of charge according to the actual situation of the owner and Party A.

&nbsp;&nbsp;&nbsp;&nbsp;1.6 The construction process shall meet the requirements of the
owner's clean control. PVC film, temporary processing shed and play shall be laid during the construction process

The cleaning tools, vacuum cleaner, clean cloth, etc. are included in the quotation of Party B;

&nbsp;&nbsp;&nbsp;&nbsp;1.7 Party B shall be responsible for the protection of finished
products within the scope of construction work. If the site equipment pipeline is damaged due to Party B's responsibility, Party B shall
be responsible

Party B shall bear all the responsibilities and accept the corresponding punishment.

**2.** **Allocation of construction resources and schedule requirements** 

&nbsp;&nbsp;&nbsp;&nbsp;2.1 Party B shall assign corresponding management personnel according
to the requirements of Party A's project, and they must be full-time and professional;If there is any change in the management personnel
during construction

Or the adjustment of work content must be confirmed and approved by the project department of Party A in writing; otherwise, the fee will be RMB 5,000 per person;(in charge of Party B)

(See the table below for organizational structure and staffing requirements)

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&nbsp;&nbsp;&nbsp;&nbsp;2.2 Party B's management personnel or construction personnel do
not obey the management of Party A's project department, or Party A's project department considers their work ability and performance

Party B shall have the right to ask Party B to replace or leave his/her job if his/her attitude or other work cannot match his/her job duties, and Party B shall have no objection;

&nbsp;&nbsp;&nbsp;&nbsp;2.3 Party A has the right to increase or remove the quantity of
secondary fittings according to the changing conditions of the owner's MOVEIN equipment, and Party B shall not make any difference

If other instructions are given by the owner or the Project Department of China Power Company No. 4, Party B shall not refuse for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;2.4 Delivery time (HOOKUP at all stages shall meet the latest requirements of the owner). If the site progress fails to meet the HOOKUP progress of the Owner's equipment due to insufficient manpower of Party B, shortage of machinery and tools and materials and other reasons, Party A shall have the right to allocate other human resources to advance the project Party B shall bear all the expenses arising from the delay and impose a fine of RMB 10,000 Yuan per machine

&nbsp;&nbsp;&nbsp;&nbsp;2.5 If Party B violates the relevant provisions of this Project and receives the corresponding fine from Party A, Party B shall not excuse itself, even if Party B does not If Party B signs for confirmation, the fine shall remain valid and be deducted from the progress payment request of the next month;

**3.** **Technical data** 

&nbsp;&nbsp;&nbsp;&nbsp;3.1 Party B shall provide all kinds of construction materials in time, including but not limited to on-site hand-drawn drawings, completed ISO drawings and progress Plans and other technical documents;

&nbsp;&nbsp;&nbsp;&nbsp;3.2 Party B shall, according to the requirements of Party A's project,
prepare the corresponding construction plan and disclose the construction technology of the team;

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**Quality control**

**4.1** **Party B shall assign quality control personnel at the ratio of 1:30 construction personnel to cooperate with the third-party quality party to complete QC and comply with Party A** 

Party B's Quality department shall be responsible for on-site quality management;

4.2 Party B shall carry out the construction in strict accordance with the requirements of Party A, the owner and relevant national standards. If the construction fails to meet the above quality requirements, Party B shall bear the losses caused by rework or delay of the construction period and shall compensate for the quality defects (such as leakage, water leakage and leakage) Loss of scrap materials caused by gas, air leakage, etc., and loss of reputation of Party A caused therefrom.

4.3 After completion of construction, testing, debugging and labeling
shall be included in the scope of this construction, and labeling shall be in accordance with the owner's specifications

Make as required.

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| **5** | **Construct in a safe and civilized manner** |

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&nbsp;&nbsp;&nbsp;&nbsp;5.1 Party B must comply with the safety management regulations of
Party A and the owner when entering the site. If the owner incurs a fine, Party A will punish

Party B shall impose double penalty;

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**Annex II Bill of Quantities valuation table**

Project name: Integrated Circuit Demonstration Line Project (Phase I) Project Secondary installation machine Project

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|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Project name** | **Description of project characteristics** | **Unit** | **Quantity** | **Unit price of materials** | **Unit price of man machine** | **Comprehensive unit price** | **Combined price** | Remarks |
| 1 | Heating jacket | 1 Name: Heat jacket 1-1/2 "line | m | 727.27 | 1188.41 | 137.63 | 1326.04 | 964391.51 |  |
| 2 | Heating jacket | Name: Heat jacket 2" lines | m | 390.91 | 1188.41 | 137.63 | 1326.04 | 518361.45 |  |
| 3 | Heating jacket | 1 Name: Heat jacket 3 "lines | m | 11.82 | 1188.41 | 137.63 | 1326.04 | 15673.77 |  |
| 4 | Heating jacket | 1 Name: Heat jacket 4 "lines | m | 744.54 | 1188.41 | 137.63 | 1326.04 | 987288.21 |  |
| 5 | Heating jacket | 1 Name: Heat jacket 5 "lines | m | 11.82 | 1249.88 | 141.94 | 1391.82 | 16451.27 |  |
| 6 | Heating jacket | 1 Name: Heat jacket 6 "lines | m | 2260.00 | 1249.88 | 141.94 | 1391.82 | 3145505.80 |  |
| 7 | Heating jacket | 1 Name: Heating jacket 8 "lines | m | 11.82 | 1249.88 | 141.94 | 1391.82 | 16449.55 |  |
| 8 | Special gas heating belt | 1. Name: Special Gas heating belt 2. Material: Silicon | m | 8294.55 | 159.32 | 18.58 | 177.90 | 586101.30 |  |
| 9 | Special gas insulation | 1. Name: Special gas Insulation cotton FM certification)<br> 2. Material: silicone thickness:<br> 5mm density: 0.874g/cm3 | m | 330.00 | 20.96 | 2.43 | 23.40 | 7720.48 |  |
| 10 | Temperature control panel and temperature control module | 1. Name: Touch screen at 10 HMI temperature control panel<br> 2. Specification: 6 Line(including HMI<br> & PLC program)380V<br> 3P50A 240Zone Man-machine (HMI+ electric disk) | Set of | 38.00 | 8307.45 | 864.55 | 9172.00 | 348536.06 |  |
| 11 | Temperature control panel and temperature control die block | 1. Name: Touch screen at 10 HMI temperature control panel<br> 2. Specification: 6 Line(including HMI & PLC program)380V<br> 3P160A.240Zone Man-machine (HMI+ electric disk) | Set of | 52.00 | 9162.81 | 964.30 | 0127.11 | 526609.55 |  |

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**Annex II Bill of Quantities valuation table**

Project name: Integrated Circuit Demonstration Line Project (Phase I) Project Secondary installation machine Project

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Project name** | **Description of project characteristics** | **Unit** | **Quantity** | **Unit price of materials** | **Unit price of man machine** | **Comprehensive unit price** | **Combined price** | **Remarks** |
| 12 | Heating belt temperature control panel and temperature control module | 10 loop heating belt temperature control box TIC+SSR+T/C field type with 10 loop display RS485 | Set of | 17.00 | 12299.06 | 1330.06 | 13629.11 | 231694.95 |  |
| 13 | Heating belt temperature control panel and temperature control module | 1. Name: 20 loop heating belt temperature control box TIC+SSR+T/C field type with 20 loop display RS485 | Set of | 8.00 | 18571.57 | 2061.60 | 20633.17 | 165065.40 |  |
| 14 | RS485 communication cable and construction | RS485 communication cable and construction | m | 1760.00 | 5.74 | 0.58 | 6.32 | 11118.14 |  |
| 15 | Heat jacket to remove | 1. Name: Heating jacket 2 "(including) the following lines | m | 10.00 |  | 156.47 | 156.47 | 1564.66 |  |
| 16 | Heat jacket to remove | 1. Name: Heat jacket 3 "lines | dish | 10.00 | 0.72 | 156.47 | 157.19 | 1571.86 |  |
| 17 | Heat jacket to remove | 1. Name: Heat jacket 4 "pipe | m | 10.00 | 1.44 | 156.47 | 157.91 | 1579.06 |  |
| 18 | Heat jacket to remove | 1. Name: Heat jacket 5 "lines | m | 10.00 | 2.14 | 156.47 | 158.61 | 1586.11 |  |
| 19 | Heat jacket to remove | 1. Name: Heat jacket 6 "lines | m | 10.00 | 2.86 | 161.37 | 164.23 | 1642.31 |  |
| 20 | Heat jacket to remove | 1. Name: Heat jacket 8 "lines | m | 10.00 | 3.58 | 161.37 | 164.95 | 1649.50 |  |
| 21 | Heat jacket to remove | 1. Name: Heating jacket 10 "pipe | m | 10.00 | 3.58 | 161.37 | 164.95 | 1649.50 |  |
| 22 | Special gas heating belt removed | 1. Name: Removal of special gas heating belt <br> 2. Description: including unit heating belt temperature controller, electrical and signal wiring, etc | m | 10.00 |  | &nbsp;&nbsp;&nbsp;&nbsp;80.68 | &nbsp;&nbsp;&nbsp;&nbsp;80.68 | &nbsp;&nbsp;&nbsp;&nbsp;806.83 |  |
| Total: | Total: | Total: | Total: | Total: | 7553017.27 | 7553017.27 | 7553017.27 | 7553017.27 |  |

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**Annex III Brand list of equipment and materials**

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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;&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;**Brand list** | &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;&nbsp;&nbsp;&nbsp;**Brand list** | &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;&nbsp;&nbsp;&nbsp;**Brand list** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;System | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Material name | &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;**701 Secondary dispensing material brand recommendation form** |
| Heating jacket | Internet cable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legrand, Panduit, Belden, SYSTIMAX, Commscope, Nexans |
| Heating jacket | Human Machine Interface (HMI) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PROFACE, FATEK, MITSUBISHI, SIEMENS, OMRON |
| Heating jacket | PTFE fiberglass cloth | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALPHA(USA), PACONIC(USA), LEWCO(USA |
| Heating jacket | Electric heating sheet | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WATLOW(USA), TAIWEI(TAIWAN), O&MJAPAN |
| Heating jacket | Inner cloths | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ALPHA(USA), DUPONT(USA), LEWCO(USA) |
| Heating jacket | Heating wire | &nbsp;&nbsp;&nbsp;Etherm, FLEXELEC, Chromalox, Raychem, SILVER, KANTHAL, RESCAL |
| Heating jacket | Leakage circuit breaker | &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;ABB, Schneider, SIEMENS |
| Heating jacket | Temperature controller | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OMRON, YOKOGAWA, Riken, ABZIL |

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**Annex 4 Construction Specifications and Technical Requirements**

**1.** **Construction quality standard of Heating jacket and Heating tape system** 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. The construction station shall have the construction drawing
confirmed by the owner and the designer, and the wiring diagram of the panel cabinet shall be confirmed by the signature.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. The heating jacket and heating belt shall be designed and manufactured
in accordance with the actual measured pipe size, and the temperature control and overcurrent protection shall be adopted

The mode shall be approved by the owner.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. The power switch and cables of the temperature control panel
shall meet the requirements of the manufacturer's manual. The cables between the panel cabinet and the heating jacket shall be heat-resistant
cables, plus

The thermal components shall be made of silicone nichcr alloy heating sheet or PTFE nichcr alloy heating sheet, in accordance with the requirements of JISC2520 standard.

&nbsp;&nbsp;&nbsp;&nbsp;1.4. The pipe insulation material shall be made of flame retardant
or non-combustion material, and it shall have FM or CE certification. The thickness shall be no more than 15mm <br>
Under normal heating condition,
the surface temperature shall not be greater than 60℃.

&nbsp;&nbsp;&nbsp;&nbsp;1.5. Install the heating jacket

&nbsp;&nbsp;&nbsp;&nbsp;1.5.1. The current of each loop of the heating jacket shall not be
greater than 30A, and the current value of the power cord of a single jacket shall not be greater than 15A.

&nbsp;&nbsp;&nbsp;&nbsp;1.5.2. In each circuit of the heating jacket, an independent temperature
control switch, overload overheating and alarm device shall be set for the single section of the jacket. In case of failure,

Shall not affect the work of other heating tube sleeves.

&nbsp;&nbsp;&nbsp;&nbsp;1.5.3. The single point control temperature error of each section of
the heating jacket shall not be greater than ±1℃, and the length of the jacket shall meet the requirements in the following
table:

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| | | |
|:---|:---|:---|
| Pipe diameter (in inches) | Jacket length (cm) | Remarks |
| D eight or more | L 50 or less |  |
| D 6 or less | L 60 or less |  |
| D 3 or less | L 70 or less |  |
| Valves and expansion joints | Configure to actual size |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;1.5.4. The heating jacket shall be installed by means such as Velcro
paste which is convenient for manual disassembly and installation. The jacket shall be fitted tightly to the tube wall.

Except for the pipe support, there should be no gap between the jacket and the bracket, and the gap gap between the bracket should not be more than 2cm.

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&nbsp;&nbsp;&nbsp;&nbsp;1.6. Installation of heating belt

&nbsp;&nbsp;&nbsp;&nbsp;1.6.1. Each (single) temperature control loop of the heating belt shall
not have an intermediate connector, and the current of the control loop shall not exceed 12A.

&nbsp;&nbsp;&nbsp;&nbsp;1.6.2. The heating belt shall be flat covered with the outer wall of the gas pipeline, and the heating belt shall be insulated with silicone wrap, and the silicone shall be firmly bound with the cable belt The spacing shall not be greater than 60cm, and binding shall be added at the turning point.

&nbsp;&nbsp;&nbsp;&nbsp;1.6.3. After the heating belt of the pipeline and silicone insulation is installed, it shall be covered with aluminum foil tape. After the coating is completed, the space between adjacent pipelines shall be covered The distance between them shall not be less than 5cm.

&nbsp;&nbsp;&nbsp;&nbsp;1.7. Installation of temperature control panel and temperature control
module

&nbsp;&nbsp;&nbsp;&nbsp;1.7.1. Leakage protection and temperature fuse and protection device
shall be equipped in the temperature control panel cabinet.

&nbsp;&nbsp;&nbsp;&nbsp;1.7.2. The heating jacket and heating belt power supply wiring shall
be 4mm2\*2C heat-resistant cable, and the temperature compensation conductor shall be K-type compensation conductor

The cable specification shall comply with the specification and manufacturer's manual.

&nbsp;&nbsp;&nbsp;&nbsp;1.7.3. Each circuit of the heating and temperature control panel cabinet
shall be numbered, and the wiring cables shall be numbered by number tubes, and the wiring shall be consistent with the design drawings

Please do not jump wires at will. The wiring does not conform to the drawing.

&nbsp;&nbsp;&nbsp;&nbsp;1.8. Each section of heating jacket shall be marked with serial number,
label and machine name, and shall be pasted with high temperature warning label. The outermost layer of heating belt pipe shall be pressed

It is required to paste the name of the fluid and the direction of flow.

&nbsp;&nbsp;&nbsp;&nbsp;1.9. All power lines shall be laid in the bridge or hose, and shall
not be exposed or suspended in the air. It is strictly prohibited to place power distribution wiring, temperature compensation wire,

Signal line and other cables or joints covered in the heating jacket or heating belt.

&nbsp;&nbsp;&nbsp;&nbsp;1.10. Line test

&nbsp;&nbsp;&nbsp;&nbsp;1.10.1. Before the test, the circuit shall be thoroughly inspected to
confirm whether the points are connected incorrectly and whether the terminals are tightened as required.

&nbsp;&nbsp;&nbsp;&nbsp;1.10.2. Check whether the test instrument is effective. It is strictly
prohibited to use the instrument that has not been certified or has expired verification for measurement.

&nbsp;&nbsp;&nbsp;&nbsp;1.10.3. In line connectivity test, a multimeter must be used to measure
the connectivity of each circuit and check whether there is cable breakage or poor contact.

Insulation test, must use a multimeter to measure the insulation resistance of each circuit to the ground, insulation resistance value should not be less than 5 megohm, and must comply with the manufacturer's manual

Requirements.

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**Annex V Catalogue of relevant drawings (with drawings)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Serial <br> number** | **Code <br> number** | **Name** | **Drawing** | **Sheet <br> count** | **Notes** |
| 1 |  |  |  |  |  |
| 2 |  |  |  |  |  |
| 3 |  |  |  |  |  |
| 4 |  |  |  |  |  |
| 5 |  |  |  |  |  |
| 6 |  |  |  |  |  |

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**Annex 6 Project progress time node**

The contract period is from May 25, 2021 to May 25, 2022

See hookup Control Table - Machine Control Table for details

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| ![](ex10-21_001.jpg) | **Professional subcontract** |

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**Annex 7: Organizational Structure of the Project and Resumes of key members**

The organizational structure of the project shall contain the following contents:

Company level: Project Director, Safety Director (can be the same person)

Project level: Project manager, technical director, construction manager, quality manager, safety manager, professional engineer

Construction level: foreman, quality inspector, safety officer, team leader

![](ex10-21_007.jpg)

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The resume of key members of the project of the subcontractor should include the following contents (the form can be expanded):

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Job title** | **Name** | **Age** | **Contact number** | **Key performance** | **Key performance** |
| &nbsp;&nbsp; <br> Project Director | &nbsp;&nbsp;&nbsp; <br> Chen Shengqian | <br> 39 | <br> 18914271689 | &nbsp;&nbsp; 1. Hefei Changxin GMS<br> 2. Changjiang Storage GDS1-2<br> 3 Hefei Jinghe GMS | &nbsp;&nbsp;18.5 million <br> 15.6 million <br> 12 million |
| &nbsp;&nbsp; <br> Project Manager | &nbsp;&nbsp;&nbsp; <br> Xiao Yupeng | <br> 33 | <br> 15061518187 | 1. Fujian Jinhua Secondary Heat Preservation Heating <br> 2. Hefei Changxin Heatingjacket <br> 3. Shanghai Huali Heatingjacket | &nbsp;&nbsp;12 million <br> 32 million <br> 12 million |
| &nbsp;&nbsp; <br> Head of Technology | &nbsp;&nbsp;&nbsp; <br> **Liu Qingchun** | <br> 26 | <br> 18852370795 | 1 Changjiang Storage 20KHeating,jacket 23m <br> 2. Yangtze River stores 50K Heatingjacket 42m <br> 3. Xiamen Shilan Heatingjacket 8 million | 1 Changjiang Storage 20KHeating,jacket 23m <br> 2. Yangtze River stores 50K Heatingjacket 42m <br> 3. Xiamen Shilan Heatingjacket 8 million |
| &nbsp;&nbsp; <br> Construction Manager | &nbsp;&nbsp;&nbsp; <br> Deng Qiuping | <br> 41 | <br> 13086150883 | &nbsp;&nbsp; 3. Nanjing Taiwan Semiconductor Manufacturing Power Co<br> Hefei Changxin Heatingjacket<br> 5. Shanghai Huali Heatingjacket | &nbsp;&nbsp;52 million <br> 32 million <br> 12 million |
| &nbsp;&nbsp; <br> Safety Manager | &nbsp;&nbsp;&nbsp;&nbsp; <br> Xu Xiang | <br> 38 | <br> 13814805584 | &nbsp;&nbsp; 1 Changjiang Storage GDS1-2<br> 2. Hefei Changxin GMS<br> 3. Hefei Jinghe N1 GDS | &nbsp;&nbsp;15.6 million <br> 18.5 million<br> 4.8 million |
| &nbsp;&nbsp; <br> Foremen | &nbsp;&nbsp;&nbsp; <br> Zhuang Jianhua | <br> 43 | <br> 18651332578 | 1. Yangtze River Storage GMS Project<br> 2. Taiwan Semiconductor Manufacturing Co., LTD<br> 3. Hefei Changxin GMS Project | &nbsp;&nbsp;15.6 million <br> 3 million <br> 18.5 million |

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**Annex 8 Investment Plan of construction machinery and Tools**

List of main construction equipment to be put into the project

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Serial number | Device name | Model specifications | Quantity | Year of manufacture | Rated power (kW) | Remarks |
| 1 | Hammer drill |  | 2 China |  |  | Dr. |
| 2 | Hand drill |  | 2 China |  |  | Dr. |
| 3 | Handgun drill |  | 2 China |  |  | Dr. |
| 4 | A-line ladder |  | 2 China |  |  | Custom made |
| 5 | Heat gun |  | 2 China |  |  | Dongcheng |
| 6 | Wire reel |  | 2 China |  |  | Bulls |
| 7 | Clean room vacuum cleaner |  | 1 China |  |  | Kajinte |

---

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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**Power of attorney**

**Certificate of competence of legal representative**

Bidder: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>

Add: <u>3-1 2 0 8 Tian 'an Wisdom City, No. 22 8 Linghu Avenue, Xinwu District, Wuxi City</u>

Name: Wang ying lai sex: <u>Female</u> Age: <u>38</u> Position: <u>General Manager</u> ID Card No. :

<u>320922198302165723, the legal representative of Jiangsu Huhu Electromechanical Technology Co., LTD.,</u> participated in <u>the bidding activities of procurement of secondary installation machine of integrated Circuit Demonstration Line Project (Phase I) project. Signing bidding documents, contract negotiations and contracts</u>

<u>Signing, project execution and dealing with all matters related to it.</u>

Bidder: Jiangsu Huhu Electromechanical Technology Co., LTD

Date: June 8, 2021

![](ex10-21_008.jpg)

A copy of the corporate ID card is pasted

![](ex10-21_009.jpg)

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| ![](ex10-21_002.jpg) | **CLP No. 4** | **Professional sub-package together** |

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**Letter of authorization from legal representative**

This letter of authorization states: I <u>/</u> (name), the legal representative of/(the bidder), hereby authorize/(name) as the agent of our company to participate in the/recruitment organized by China Electronic System Engineering No. 4 Construction Co., LTD. (the bidder) in the name of our company

Bidding activities for the target. All documents and documents signed by the agent in the course of bid opening, bid evaluation, contract negotiation, contract signing and project execution

I acknowledge all matters in connection therewith. I hereby declare that this power of attorney shall come into force on the date of signature.

The agent has no right to transfer the authorization. The agent is hereby entrusted.

Agent: <u>/</u> Gender<u>: /</u>

Id No.__ : Upper Age:__ Position; <u>Item management</u>

Date:

Bidder: <u>/</u> (with official seal)

Legal representative: (signature and seal)

The copy of the ID card of the authorized person is pasted

Front of ID card Reverse side of ID card

Note: If the bidder's legal representative participates in the bid, the power of attorney is not required.

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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**10 qualification documents are attached**

**1. Business license**

![](ex10-21_010.jpg)

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional subcontract** |

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**2. Construction enterprise qualification certificate**

![](ex10-21_015.jpg)

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| ![](ex10-21_001.jpg) | Issuing authority: <br> 2021 year 0 March 6<br> Ministry of Housing and Urban-Rural Development, PRC |

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National Construction Market Supervision Public Service Desk enquiry website;tp5/m0hundwcn NO.DF 21862305

![](ex10-21_011.jpg)

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| ![](ex10-21_002.jpg) | **CLP No. 4** | **Professional subcontract** |

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3 Work safety permits

![](ex10-21_012.jpg)

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| ![](ex10-21_001.jpg) | **Professional subcontract** |

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**4 An account opening permit**

**Basic deposit account information** 

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| | |
|:---|:---|
| Account name: | Jiangsu Huhu Electromechanical Technology Co., LTD |
| Account Number: | 32001615036052517356 |
| Bank of deposit: | China Construction Bank Co., LTD. |
|  | Wuxi Chengbei Branch |
| Legal representative: | Wang ying lai |
| (responsible person of the unit) |  |
| Basic Deposit account No. : | J3020024045202 |

---

March 04, 2021

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**Annex 11 Principles of Submission, Approval and replacement of Materials and Equipment**

I. All materials and equipment provided by Party B must be submitted to Party A for approval before purchase and use; otherwise, the materials are not allowed to be used in the field.

Ii. Brand replacement shall follow the following principles:

1. Provisions on grade and brand of materials and equipment in
the bidding documents:

&nbsp;&nbsp;&nbsp;&nbsp;1.1 The list of materials and equipment in the bidding documents
shall have clear grade requirements. It is suggested that three or more brands should be used as suggestions only

Party B may choose more than three brands, but the grade must be the same, such as Party A, the employer and the management company review after the selection of the brand

If Party B fails to pass the bidding twice, Party B shall promise to unconditionally exchange any of the three required in the original tender.

&nbsp;&nbsp;&nbsp;&nbsp;1.2 The brand of materials or equipment marked in the design drawings or technical specifications is only
 for the reference of Party B. Party B can provide materials/equipment in the same standard file, but it must be approved by the
 designer and Party A. Party B may declare one or two of the materials or equipment in the bid response documents <br>For
 brands of the same grade, technical documents such as sample books of materials and equipment may also be attached for bid
 evaluation.

&nbsp;&nbsp;&nbsp;&nbsp;1.3 Party B shall have the responsibility to send a written questionnaire
to Party A prior to bid response to remind Party A of the big difference in the brands and grades of materials/equipment in the bidding
documents and the fact that the design parameters of materials/equipment have been secretly limited to the only designated brand so as
to avoid possible problems <br>
The unfair competition situation.

&nbsp;&nbsp;&nbsp;&nbsp;1.4 If the supplier of materials and equipment violates its promise due to Party B's winning the bid,
 or increases its price due to the project of "China Electronic System Engineering No. 4 Construction Co., LTD.", Party B
 may suspend the trading of the supplier after examination and discussion by the Purchasing department of "China Electronic
 System Engineering No. 4 Construction Co., LTD.", provided that Party B provides sufficient and valid evidence. Never enter
 the project of "China Electronic System Engineering No. 4 Construction Co., LTD". Therefore, Party B shall pay attention
 to the retention of evidence (there are

The inquiry sheet shall be signed and sealed.

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2 Replacement of materials and equipment after calibration:

&nbsp;&nbsp;&nbsp;&nbsp;2.1 Products provided by the manufacturer not specified in the contract
documents, or the name or model or category or product not specified in the contract documents, shall be deemed to be a material
replacement; Whether the replacement material is of the same quality, workmanship, and quality as the replaced material <br>
The
effectiveness and economy of use will be determined solely by the Designer and Party A's representative.

&nbsp;&nbsp;&nbsp;&nbsp;2.2 Materials/equipment declared by the winning bidder in the process
of bid negotiation and approved by Party A/designer shall not be replaced in principle.

&nbsp;&nbsp;&nbsp;&nbsp;2.3 If the materials are truly out of stock or in short supply in
the market and meet any of the following conditions, Party B may propose to replace the materials, which must be approved by Party A

The replacement materials shall be of the same material or superior to the designed material (or the contract material) only after the approval of the procedures of Party A <br>Materials.

&nbsp;&nbsp;&nbsp;&nbsp;2.3.1 The materials or equipment selected by Party A are not available
in the market or the government and relevant administrative departments have no control over the materials or equipment <br>
The materials
or equipment has been prohibited (Party B shall provide proof)

&nbsp;&nbsp;&nbsp;&nbsp;2.3.2 The replacement materials are beneficial to Party A (Party B
shall provide proof)

&nbsp;&nbsp;&nbsp;&nbsp;2.4 When Party B proposes any application for material replacement,
it shall provide a detailed analysis report/comparison table for Party A's review. The report must

Must include, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;2.4.1 Names, quantities, specifications, models, brands and properties
of materials and engineering equipment stipulated in the contract to be replaced <br>
Power, price and any other details;

&nbsp;&nbsp;&nbsp;&nbsp;2.4.2 Name, quantity, specification, model, brand, performance, price
and any other necessary information of the substitutes to be adopted <br>
Details of the products;

&nbsp;&nbsp;&nbsp;&nbsp;2.4.3 Index of the construction site used by the substitute and all
contract documents related thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;2.4.4 Reasons for the use of substitutes and reasons declaration;

&nbsp;&nbsp;&nbsp;&nbsp;2.4.5 The difference between the substitutes and the Supplies stipulated
in the Contract and any effect that may result from the use of the substitutes on the Works <br>
Effects in respect of;

&nbsp;&nbsp;&nbsp;&nbsp;2.4.6 Price difference;

&nbsp;&nbsp;&nbsp;&nbsp;2.4.7 Promise that the materials used for substitution shall be of
the same quality and technological level as the materials to be replaced, and shall be of the same design standard

The specified space allows, the maintenance, function, form, life, adaptability to the environment and other aspects are matched, and <br>The replacement shall benefit Party A.

&nbsp;&nbsp;&nbsp;&nbsp;2.4.8 Any other documents required by Party A from time to time to
make appropriate decisions;

&nbsp;&nbsp;&nbsp;&nbsp;2.5 If it is necessary to replace the brand suggested in Party A's
bidding documents with the brand suggested in the original bidding documents for special reasons, Party A may specify the product suggested
in the original bidding documents

Party B may choose two or more brands in the brand, and shall not designate a unique brand. Such brand changes must be made in accordance with the same <br>Mean low for high or the same principle.

&nbsp;&nbsp;&nbsp;&nbsp;2.6 If Party B returns the bid as a high-end brand due to the large
price difference of the suggested brand, the employer will not agree to change the bid after winning the bid

Is the low-grade brand among them. Such brand changes must follow the principle of trading low for high.

&nbsp;&nbsp;&nbsp;&nbsp;2.7 Party B shall have the responsibility to indicate to Party A the design or technical solution of the
 only designated brand implicitly defined from the parameters of materials and equipment, so that Party A can modify the design
 before replying to the bid; If it is found after the bid evaluation, it shall, in principle, be replaced with
 standardized/universal

The parameters shall be confirmed by Party A's written instructions, and the cost impact shall be calculated according to Article 2.9.

&nbsp;&nbsp;&nbsp;&nbsp;2.8 Party A's approval of any application for replacement of materials/equipment
shall not affect Party B's strict compliance with the provisions and requirements of the Contract documents

Responsibilities to be assumed by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;2.9 Cost calculation of alternative materials/equipment:

&nbsp;&nbsp;&nbsp;&nbsp;2.9.1 Replacement proposed by Party B due to Party B's reasons:

&nbsp;&nbsp;&nbsp;&nbsp;2.9.1.1 If the value of the replacement materials and equipment is higher
than the value of the materials and engineering equipment agreed herein,

Party B shall bear all the additional expenses involved.

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2.9. 1.2 If the value of the alternative materials and equipment is less than the value of the materials and equipment as agreed in the contract, will <br>The savings will be deducted from the contract price.

&nbsp;&nbsp;&nbsp;&nbsp;2.9.2 Replacement proposed for Party A's reasons:

&nbsp;&nbsp;&nbsp;&nbsp;2.9.2.1 If the value of the substitute materials and equipment is higher
than the value of the materials and engineering equipment agreed herein,

Party A shall bear all the additional expenses involved.

&nbsp;&nbsp;&nbsp;&nbsp;2.9.2.2 If the value of the alternative materials and equipment is less
than the value of the materials and equipment agreed herein

The amount saved will be deducted from Party B's contract price.

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| | |
|:---|:---|
| 2. 10 | Within the scope of Supply, the Supplier undertakes not to use any shoddy, fake, shoddy or low-quality raw materials or parts (bags <br>Including raw materials or parts purchased by Party B/suppliers); Otherwise, Party A or the employer may impose a penalty of 10 times the relevant amount. |

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**Annex 12 Provisions on the management and use of "Materials Supplied by Party A"**

1. Purpose: To strengthen the management of the construction process, ensure the quality of the project, reduce the loss, waste and loss, and prevent the destruction of finished products,

This management regulation is hereby formulated to save Party A's cost. These regulations shall be annexed to the project contract and have the same legal effect as the project contract.

2. Definition of "Materials supplied by A" : It is stipulated in the contract that Party A or the Owner shall purchase the materials for direct installation of the project or indirectly serve the construction of the project

Materials, equipment, machinery and other materials.

3. Provisions on the management of "Materials Supplied by A" :

1) Material quantity quota: "Materials Supplied by Party A" shall strictly comply with the material quantity quota, and Party B shall only appoint a specially-assigned person to obtain materials in accordance with Party A's material quantity quota

Receiving, signing for, using and returning surplus materials according to the management regulations.

2) Storage provisions: After Party B takes out the materials from Party A's warehouse, the ownership of the materials shall remain in Party A's possession. Party B shall keep the materials properly and take necessary protective measures to prevent rain, moisture and damage. Party B shall not misappropriate, transfer, resell, mortgage, lose or damage it

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. "Materials supplied by Party A".

3) Return provisions: Party B shall not, for any reason, cause the materials to be out of use or uncertain use or use within 20 days after receiving the materials

If the materials are no longer in use, Party B shall promptly return them to Party A's warehouse and ensure the integrity of the performance, packaging and appearance of the returned materials.

4) Party A shall have the right to change the "Materials supplied by Party A" into "materials supplied by Party B" at any time, and plan the procurement channels and reasonable profits. Party B shall obey

Execution.

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4 Use the rules:

1) If "Materials supplied by Party A" enters the site, Party B shall be unconditionally responsible for unloading, secondary handling and assistance in cleaning

Place and assist in acceptance inspection and other related work. 5. Report to Party A timely if any damage, quantity, quality and other problems are found.

2) Party B shall take economy as the main line during use, strictly control loss, eliminate waste, and timely report quality problems found

Report that the use of unqualified materials is not permitted.

3) Party B shall be responsible for taking care of and protecting the materials that have not been installed or have been installed. In case of improper protection and care, the materials may be caused

In case of damage or loss, Party B shall be directly liable for compensation, and Party A may directly seek compensation from Party B.

5. Reward and Punishment Measures:

1) If Party B fails to receive more or more materials in accordance with Party A's material quota and fails to return them to Party A's warehouse in time, which leads to shortage of materials in parallel packages or causes Party A to purchase more materials, Party A will impose on Party B more than twice the relevant expenses incurred thereby The fine shall be deducted from the progress payment of the current month.

2) If the materials taken out by Party B are lost due to improper care, Party A shall impose a fine of more than 1.2 times the value of the materials;

3) If the materials taken out by Party B are damaged or can no longer be used in the project due to improper care and protection, Party B shall compensate for the loss at the original price <br>Party B shall repair and replace the materials free of charge.

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4) If the materials in Party A's warehouse need to be returned, damaged appearance, incomplete packaging, and loss of relevant quality certification materials are released for reasons other than Party B's over-collection or over-collection, and thus cannot be used again or can only be used at a reduced price, Party B shall bear the corresponding price difference Compensation, except due to the inherent nature of the materials.

5) For the use of excess materials caused by rework due to reasons of Party B (unqualified installation quality, wrong location), the excess material cost shall be borne by Party B, which shall be deducted from the project payment of the current month or the final settlement payment, and the rework installation cost shall be all The expenses shall be borne by Party B and shall not be paid to Party B in settlement.

6) Party B shall not misappropriate, transfer, resell, mortgage, lose or destroy the "materials supplied by Party A". In case of the above problems, Party A will impose a fine of more than three times the value of the materials, which will be directly deducted from the current project payment. In case of serious complex, Party B may submit the case to the judicial system The authorities handle it.

7) Party B shall strictly control the loss of the "materials supplied by Party A". If the loss exceeds the provisions or material waste is found, Party A shall take action A fine of more than three times the amount of approved waste or waste of materials.

8) Party B may report to Party A the waste, excess wear, theft, damage, destruction and other acts, if the evidence is conclusive A reward of more than 10% of the amount recovered from Party A.

Party B shall really read the above management regulations and obey Party A's regulations unconditionally.

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**Annex 13 Management Provisions of "Materials Supplied by Party B"**

6. Purpose: This regulation is formulated to strengthen the management of the construction process of the project, ensure the quality of the project and ensure the use of qualified materials in the project.

The Provisions are annexed to the contract and have the same legal effect as the contract.

7. Definition of "Materials supplied by Party B" refers to materials purchased by Party B for direct installation of the project or indirect service for construction as stipulated in the Contract.

Equipment, tools and other materials.

8. Provisions on the management of "Materials supplied by Party B"

1) Contract compliance: The "Materials supplied by Party B" must fully comply with the "brand, origin, technical requirements, quality, delivery date, <br>After-sales service and other relevant provisions.

2) Application for examination and inspection system: "Materials supplied by Party B" shall strictly comply with the approval provisions of the application for examination and inspection. "Materials supplied by Party B" shall provide samples, manufacturers, brands, origin, certificate of qualification, quality certificate and other relevant materials, which shall be approved by Party A's purchasing engineer, commercial engineer and master The responsible engineer, the project chief engineer and the project manager shall review and approve the purchase.

3) On-site inspection: Each batch of "Materials supplied by Party B" shall be approved after being checked by Party A's chief engineer or project manager Approach. Put an end to the use of unqualified materials. Each batch of materials must provide the corresponding material quality certification data.

4) Party B shall not change the brand, manufacturer, origin, technical requirements and quality standards of the materials agreed herein without authorization. Any change approved by the project chief engineer and the project manager shall be approved after the price difference is approved by the fund engineer and the purchasing engineer. Price difference

A deduction in the contract.

5) Party B shall be responsible for the storage and protection of the materials supplied by Party B, and shall bear any loss or damage thereof.

6) Party A shall have the right to convert the "Materials supplied by Party B" into "materials supplied by Party A" at any time, and deduct the corresponding amount of materials.

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9. Usage Rules:

&nbsp;&nbsp;&nbsp;&nbsp;4.1 If
"Materials supplied by Party B" enters the site, Party A shall have the right to spot check Party B's contract or count the
quantity.

&nbsp;&nbsp;&nbsp;&nbsp;4.2 Party
B shall take economy as the main line in the process of use, strictly control loss, eliminate waste, and timely report quality problems
found <br>
Report
that the use of unqualified materials is not permitted.

&nbsp;&nbsp;&nbsp;&nbsp;4.3 Party
B shall be responsible for the care and protection of the materials that have not been installed or have been installed. In case of improper
care and protection, the materials are damaged <br>
Party
B shall be responsible for any loss of the materials.

10. Reward and Punishment Measures:

&nbsp;&nbsp;&nbsp;&nbsp;5.1 Party B changes the
 material brand, manufacturer, origin, technical requirements and quality standards without Party A's approval, Party A <br>
Party
A shall impose a fine of more than 3 times the amount of the approved materials without authorization and deduct the difference.

&nbsp;&nbsp;&nbsp;&nbsp;5.2 If
Party B uses counterfeit or shoddy products, Party A shall impose a fine of more than 3 times the amount of approved counterfeit materials.

&nbsp;&nbsp;&nbsp;&nbsp;5.3 If
Party B uses unqualified products and causes project quality loss or function failure or reduced function, Party A shall have the right
to require Party B to dismantle and reinstall the products. All expenses incurred thereby shall be borne by Party B and Party A shall
verify if the circumstances are serious <br>
<br> A
fine of more than 3 times the amount of capital for quality defects.

&nbsp;&nbsp;&nbsp;&nbsp;5.4 For
the part of "Materials supplied by Party B", if any excess is caused by rework due to reasons of Party B (unqualified installation
quality, wrong location)

The use of materials, the cost of extra materials and the cost of rework and installation shall be borne by Party B and shall not be paid to Party B during settlement.

&nbsp;&nbsp;&nbsp;&nbsp;5.5 Party
B shall strictly control the consumption of the "Materials supplied by Party B" and shall not take any action such as exceeding
the consumption of the materials provided by Party B or material waste <br>
On
the basis of settlement, Party B shall bear the loss.

Party B shall read the above management regulations and obey Party A's regulations unconditionally.

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**Annex XIV. Security Agreement**

**<u>China Electronic System Engineering No.4 Construction Co., LTD.</u>**

**<u>(hereinafter referred to as "Party A")</u>**

**<u>Jiangsu Huhu Electromechanical Technology Co., LTD. (hereinafter referred to as "Party B")</u>**

In order to successfully complete the construction project, prevent fire prevention, theft prevention and personal and equipment accidents during the construction period,

Now, Party A and Party B negotiate to reach a safety construction agreement, which specifies the safety responsibilities of both parties, and both parties must jointly comply with the implementation.

**I. Responsibilities, obligations and Rights of Party A**

1. Before Party B enters the construction site, it shall formally carry out the safety management system of Party A and manage the company and business of Party A for all its entrance personnel

Normal or special safety training conducted by the owner or required by the owner.

2. Strictly control the health condition of the employees entering the building. The construction personnel must pass the physical examination before they can be trained to apply for the entrance permit

(Mainly measuring blood pressure).

3. Responsible for providing regular or non-regular training on safety or other special aspects related to safety to Party B's personnel.

4. Be responsible for all-round safety supervision and management of Party B during the whole construction period.

5. Prompt Party B to purchase necessary personal safety protective articles, safety appliances, equipment and facilities in time.

6. Party B shall timely provide the safety management system, safety measures and safety violation punishment rules related to the construction site (see the appendix for details).

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7. Party B shall have the right to conduct safety inspection on the construction site of Party B and promptly notify Party B of any unsafe problems and hidden dangers found by inspection within a specified time limit <br>Rectification.

8. Party B shall have the right to require Party B to rectify the inspected problems within a limited time, and shall have the right to rectify or fail to correct all kinds of safety risks arising from Party B <br>Any unsafe behaviors such as accidental or intentional confrontation shall be punished with fines.

9. Have the right to expel those who do not obey management, serious safety violations, and those who fight against management, retaliate, steal and fight.

**Ii. Responsibilities, rights and obligations of Party B**

1. Party B must abide by national laws and regulations, Party A's production safety management system, the general contractor's and the owner's management system and other aspects

Management system.

2. The construction personnel must go through the physical examination procedures (mainly blood pressure measurement).

3. Special personnel shall be assigned to manage the safety education and daily management of construction personnel and unconditionally obey Party A, the management company and the owner

To support the management work of Party A.

4. Party B's construction personnel cause Party B and the other party's personnel due to their violation of safety management rules and regulations, wild construction and violation of safety regulations

Party B shall be responsible for handling any injury or death accidents and Party A shall not assume any economic or other responsibilities arising therefrom.

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5. Party B's personnel entering the construction site shall, in accordance with Party A's requirements, equip them with personal safety labor protective equipment, and Party B's construction personnel shall

Party B's personnel must wear and use personal safety labor protective articles correctly as required by Party A.

6. Party B's personnel must voluntarily accept the safety supervision and inspection of Party A's security and other management personnel and promptly comply with the requirements of Party A

Deal with and eliminate potential safety risks to ensure safe operation.

7. Party B must ensure that the safety protection devices of the mechanical and electrical equipment entering the construction site are complete, sensitive, reliable and effective, in line with safety management

The specified requirements.

8. Without the permission of Party A's personnel, Party A (including the management company, the owner and other construction units) shall not be used without authorization.

Otherwise, Party B shall be fully liable for any events, accidents and damages arising therefrom.

9. If Party A receives any fine from the general contractor or the owner due to Party B, Party A shall pay more than twice the amount of the fine from the general contractor

Party A shall impose punishment.

10. Party B must hold the Construction Enterprise Safety Qualification Certificate and must provide a set of safety assurance schemes and measures for the project before construction

Construction shall not be carried out until submitted to Party A for approval.

11. Party B shall strictly comply with the basic safety protection standards of the construction site during construction, and shall pay close attention to the raw materials, semi-finished products,

Party B shall carry out effective protection and protection of finished products and bear all expenses and losses incurred during the process.

12. Party B shall have the right to take unreasonable production and living management measures, unsafe site conditions, unsafe facilities, and unreasonable measures during construction

Party B has the right to put forward rectification suggestions for unreasonable phenomena such as violation handling.

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13. Party B's construction personnel have the right to stop production and temporarily withdraw from the site when major potential accidents are found.

**Iii. Supporting documents of the Agreement**

1. Relevant national or local laws and regulations.

2. Safety documents and requirements issued and issued by the owner, the management company and the security department of the main contractor.

3. Party A's rules and regulations concerning site management, as well as those promulgated by the Project Department during construction.

4. Agreements, contracts and other documents concluded by Party A and Party B.

**Iv. Validity and term of the Agreement**

1. This Agreement shall be annexed to the contract and shall have the same effect as the contract.

2. This Agreement shall take effect from the date of execution until all Party B's personnel withdraw from the project.

3. This Agreement shall terminate by itself in case of force majeure or other causes.

4. This Agreement is made in duplicate, with each party holding one copy.

**V. Matters not covered herein shall be settled by both parties through negotiation.**

**Vi. This Agreement contains the following attachments:**

Annex 1 Construction Site Safety Management Regulations (Code of Safe and Civilized Construction)

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Annex 2 Safety Penalty Notice

Annex 3 Safety Penalty Details

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Attachment 1:

**Construction site safety management Regulations (Safe and civilized Construction Code)**

Party B shall attach great importance to the safety and health of every worker on the construction site. The construction personnel must bear in mind the production safety policy of "safety first prevention first comprehensive treatment" in production and construction, bear in mind the safety goal of "zero accidents and zero injuries", and take all necessary measures to achieve this goal

The standard.

Construction personnel must take into account that safety regulations and regulations cannot be ignored because of the urgency of the job. 3. Party B shall not violate any mandatory requirements or safety regulations

Then.

**Regulations on Safety and health work**

1. Party B shall comply with the Basic Law of Labor, Labor Safety and Health Law and the related subsidiary regulations, and shall also comply with the relevant safety and health management points. Party B shall appoint labor safety and health personnel in accordance with the regulations of labor safety and health organization management and automatic inspection promulgated by the competent authority.

2. Party B shall bear all economic and legal liabilities for the injury or death of its workers in work-related accidents.

3. Party B shall bear all economic and legal liabilities for any damage or injury to the third party, the owner and other Party B's facilities and tools or other property damage caused by its workers while performing the construction obligations.

4. In case of major occupational disasters occurring at the construction site or within the designated work area, Party B shall report to Party A's Project department at the construction site within 2 hours after the occurrence of such disasters. Party B shall also report other accidents and fire alarms immediately after the occurrence of such accidents, accept the investigation and attend the accident inspection meeting.

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5. Party B's full-time labor safety and health personnel shall be responsible for the following on-site safety and health work in accordance with provisions of laws and regulations:

1) Formulate occupational disaster prevention plans and guide the actual implementation of on-site work.

2) To plan and inspect the labor safety and health management facilities at the construction site.

3) Carry out inspection, regular inspection, key inspection and determination of working environment of the construction site.

4) To plan and implement labor safety and health education and training.

5) To investigate and deal with occupational disasters together with owners and their representatives.

6) The site shall be sorted out before the end of the work every day, and the materials shall be clear after the completion of the work. The person in charge of the site or the safety and health manager of Party B shall inspect the site and confirm that the site is safe

Leave the site.

6. Wear safety and health protective equipment suitable for personal needs according to the working environment.

1) Head protection a safety hat: All personnel entering the construction site must wear the safety hat correctly and fasten the jaw belt.

2) Ear protection an ear plug, in the noise more than 90 decibels above the working area, engaged in operation, maintenance.

3) Eye protection a safety glasses or protective mask: all engaged in grinding, cutting, concrete vibrating, steel processing, woodworking processing personnel, etc

Must be equipped with safety protective glasses;Personnel working in areas that produce sparks, fine dust, chips, liquid droplets or thermal radiation or harmful light,

Must be equipped with safety protective glasses.

4) Respiratory protection A breathing mask or gas mask;Wear proper respiratory protection when exposed to hazardous dust, fog droplets, hazardous gases or hypoxia.

5) Hand protection a cotton, canvas, acid and alkali resistant, insulating gloves: engaged in handling, corrosive toxic chemicals and equipment handling or may contact power supply

Personnel shall wear appropriate protective gloves. No gloves are allowed when working on rotating machinery.

6) Foot protection: All site construction workers must wear anti-smash safety shoes when working.

7) Suitable protective clothing shall be worn by those engaged in acid, alkali and toxic chemicals.

8) Safety belt: Workers engaged in the height of more than 2 meters must wear safety belts.

7. Construction machinery and materials shall not be stacked and placed on fire hydrants, fire extinguishers, switchboards, safety ladders and escape routes, so as to avoid delay of escape and emergency rescue.

8. Party B's labor safety and health personnel shall inspect the work site every day and fill in the safety inspection record in detail. If any safety risks are found at the work site, they shall immediately respond and take appropriate measures to eliminate the safety risks.

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9. The machines, tools, safety devices and other equipment provided by Party B shall comply with relevant laws and regulations. In case of non-compliance, once found, the equipment shall be immediately discontinued and removed from the site.

10. If Party B uses or stores hazardous chemicals during the construction period, it shall go through relevant procedures according to the hazardous materials and hazardous materials management system. If the construction contracted by Party B involves toxic, fire-prone or dangerous construction equipment or works in special dangerous environment, it shall handle the procedures according to the provisions of the construction safety and health facilities standards, and clean up the work site immediately after completion of construction. Keep the site clean and clean after completion of construction and avoid any accidents that may harm the safety and health of the work environment.

11. Party B shall provide its employees with necessary safety and health education and accident prevention training for their work. For the staff engaged in toxic and harmful operations with special hazards to health, Party B shall carry out special health examination regularly according to laws and regulations.

12. When Party B is engaged in the following work, it shall appoint personnel with special safety and hygiene training and qualified certificates to be:

1) Engaged in the operation of boilers (except small boilers) and first-class pressure vessels.

2) Operators of cranes, hoists, mobile cranes and miter cranes.

3) Welding, gas cutting or heating of metal with acetylene welding device or gas welding device.

4) Use crane equipment to engage in hanging operations.

5) Organic solvent operation.

6) Work with specific chemicals.

7) Electrical operators.

8) Retaining and supporting operations, stencil supporting operations, and erection of shelves.

9) Other dangerous operations designated by competent authorities.

13. Party B shall not employ the following personnel for the following work

1) Party B shall not employ anyone under the age of 18.

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2) No male or female workers under 18 years of age or over 55 years of age shall be employed in elevated or high-altitude operations.

3) No female workers shall be employed to engage in dangerous and injurious work, as well as elevated work and heavy manual labor.

4) Female workers during pregnancy or less than one year after childbirth shall not be employed in dangerous and hazardous work, elevated work and heavy manual labor.

5) Workers who are addicted to alcohol or drugs or suffer from dangerous or harmful diseases are not allowed to be employed in related jobs.

14. The sundries and debris of dangerous substances in the workplace should be removed regularly, so as not to interfere with work and injure personnel. After the work, the construction area should be cleaned up and the garbage should be cleared out of the factory on that day. It is forbidden to store the factory.

15. The driving professionals employed by Party B shall have driving licenses, and non-driving professionals shall not drive any vehicles on the construction site.

16. In case of fire, immediately notify the company and fire brigade (Electrical 119) for support to prevent the fire from spreading.

17. Party B shall bear all the losses and legal liabilities arising from the fire caused by Party B or its subordinate workers or Party B.

18. Fireworks are strictly prohibited in the project Department office and all construction sites. Smoking should be in designated places and smoking should be declined.

19. To prevent the possibility of falling, collapse and other workplaces, there should be safety equipment in line with the standards. When working at heights, be wary of falling tool materials, and do not leave tools and objects at heights after work. Around the construction frame, appropriate handrails and guardrail should be set up.

20. Hoisting operations must be enclosed with warning belts. It is strictly prohibited to pass irrelevant personnel, and all personnel are strictly prohibited to stand or pass under heavy objects and suspended objects.

21. The scaffold style approved by the labor safety supervision department should be adopted, and the scaffold should meet the requirements of the current relevant specifications. Before installing the scaffold, drawings and calculations designed by professional engineers should be submitted to the safety supervisor for review and approval.

22. Open part, workbench and other places, should be set up guardrail or cover and other measures. Guardrail should be hard enclosure, it is strictly prohibited to use soft enclosure or to replace with ropes, wires, etc. The cover should be used in an effective way to prevent slippage, falling, lifting or moving.

23. Cargo lifts are strictly prohibited from carrying persons. When the lift safety device fails, it is strictly prohibited to carry cargo.

24. Irrelevant personnel should be prevented from touching or misoperating the lift safety protection control system, and the safety protection device should not be removed for any reason.

**Two, electricity safety management system**

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1. Party B shall set up a safety power maintenance worker on site, and the temporary power supply facilities shall be managed by the project department. Unauthorized personnel are strictly prohibited from connecting or disconnecting electrical equipment and lines.

2. Electrical operation and maintenance personnel must be on duty with certificates.

3. Party B's electrical staff shall disclose the construction in accordance with the accepted safety technology when performing electrical work.

4. Temporary electrical maintenance personnel shall actively cooperate with operators to do maintenance, duty and temporary power supply work, and at the same time shall do a good job of insulation measurement and record of cables, distribution boxes, equipment, leakage (once every half month) test record, grounding pole (repeated grounding, lightning protection grounding) resistance test and record, do a good job of maintenance work record and electrician on duty record.

5. Temporary electricity facilities on site must be qualified before use, and be inspected once a week.

6. This project implements the distribution mode of three-level power distribution, two-level leakage protection, single machine and single box and three-phase five-wire system connected to zero protection system. The site shall have at least three repeated ground connections. The first level switchboards on site must be repeatedly grounded. The two-stage leakage protection facilities of on-site power supply and consumption facilities are in each two-stage box and three-stage switch box. The leakage action current of the leakage protection device of the two stage box shall not be greater than 30mA. The resistance values of repeated grounding and lightning protection grounding of temporary facilities meet the regulations.

7. The general distribution box and switch box must be equipped with two terminal boards, the protective ground wire (PE) and the working neutral wire (N). The phase wire must not be connected by wiring terminals or terminals. The protective neutral wire of the metal shell of the equipment and distribution box must be multi-strand copper wire. The minimum cross-sectional area must not be less than 25mm2. Protect the neutral wire without using a single strand. There shall be no joint, and the connection of the protective neutral wire must use the wire nose and be firmly crimped. The special color for protecting neutral wire is yellow and green two-color wire.

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8. The construction electricity of the equipment shall be connected by the construction switchboard, and the outdoor distribution box shall be covered to prevent rain and smashing. At the same time should build a platform, set up fences, signs. The fence should be connected to the protective zero line.

9. Avoid live work. Wear qualified insulation gloves if you must work with live work. It is forbidden to connect to electricity outdoors in rainy days. Under special needs, protective measures must be taken, and confirmed and approved by the electrical personnel in charge before construction.

10. The distribution box must be marked and numbered, and the door should be locked. The circuit breaker and socket in the distribution box should be marked with the use of the leading circuit.

11. Onsite cable lines shall be laid or erected properly as required. No line shall be laid directly along metal material. It shall not be subjected to tensile and shear forces, and measures shall be taken to prevent smashing, bumping, squeezing, tying and abrasion. When the line is buried, it should be carried out according to the requirements of the "electrical acceptance code", and the buried hidden inspection record should be made. When the cable is buried, the mark should be set along the line. When the power line is set vertically, the cable bracket should be made, and the cable should be fixed with butterfly insulation.

12. The on-site electric line shall not be laid on the ground, and it shall be used with a height of 24 meters. Insulation hooks shall be used when the line is high, and it is forbidden to use lead wire tying.

13 Construction site and living area lighting fixtures from the ground height, outdoor is not less than 3 meters, indoor is not less than 24 meters, can not meet the requirements should be used safety voltage. Safety voltage must be used in stairwells, rooms and damp places where people live in the construction area, and lighting below 24m. Entering the decoration stage, the secondary distribution box should be set up on each floor. The electrical equipment in the building must be equipped with a separate switch box. It is forbidden to have multiple machines in one gate.

The distribution box should be located in a dry and ventilated place, and there should be a base.

14. The power supply of field welding machine and other special equipment must be set up in a separate circuit in the first level box (cabinet), the secondary wire of the welding machine must be double in place, and installed with a secondary leakage protector. Safety cover must be installed on both the primary and secondary sides. The location of the welding machine should be protected against rain and moisture, and the welding machine should be used with a high cushion. The welding machine should be equipped with automatic shock prevention device and isolation switch, and the grounding wire connection point must be close to the welding spot.

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15. The primary side of the local lighting transformer must be equipped with leakage protector and overload, short circuit and other protective devices, and the secondary side must be equipped with a fuse.

16. 220V iodine tungsten lamp cover, iron support must be grounded protection, between the lampshade and the lamp holder to be insulated board (not wood), the lamp holder hand part Insulation materials must be wrapped around the bit and the cable hanging part.

17. It is strictly prohibited to contact or approach combustible materials with electric heating or other fire-prone electrical equipment. Do not use water or foam fire extinguisher and other conductive materials to extinguish an electrical fire. Use carbon dioxide fire extinguisher, dry powder fire extinguisher, 1211 fire extinguisher and cut off the power quickly.

18. The power line of the fixed equipment must be routed through the management site. When the height of the excavated part of the line is less than 15 meters, pipes should be worn, and measures should be taken to prevent water from entering the pipe mouth. The power source cable enters the line from the outside of the wall. The cable entering the building should be protected by a pipe at the point where it penetrates the wall. The metal pipe should be protected by grounding, and the pipe mouth should be protected by a shield.

19. Electricians and professional operators should stop the operation of related equipment and lines when they find overheating, lighting, motor phase absence and other conditions, and notify the relevant personnel to discharge the fault before continuing to operate, in order to prevent the occurrence of electrical fire.

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20. Construction personnel should consciously abide by the site electricity management system, not at will wiring. Do not move the live running equipment. Wear good insulation gloves when using a class of hand-held power tools and mobile power tools.

21. Reasonably choose the traverse section required by the equipment and the lamps and lanterns, and put an end to the use of excessive load on the line. Reasonable selection of the protection device of electrical equipment, when the fuse or automatic switch is used to protect a section of the line, the minimum short circuit current to be able to appear in the protection circuit, should not be less than 25 times of the rated current of the fuse body or 15 times of the active switch trip current.

22. The switch of each equipment must be firmly fixed at the height of 13-15m, and the oxidation, poor contact and ablation of the switch contact should be repaired or replaced by the electrical maintenance worker in time.

23. It is prohibited to use coil rollers as switch boxes, and it is prohibited to use unpacked free socket boxes on site. Live exposure and damaged electrical appliances are prohibited.

24. The power line of the on-site fire pump must be connected to the power supply of the onsite main distribution box switch.

25. Electrical operators should earnestly implement the specifications and connect the cables correctly. Wiring should be firmly connected and compacted, all kinds of switch contacts should be firmly pressed, and copper and aluminum joints should have transition ends. Electricians should strengthen the inspection and inspection of the operation of electrical lines and equipment, especially the joints where large current passes through. If loose or overheating is found, it should be handled in time. The electrician should check the gate box, cable and electric equipment in the building every day. Discover hidden dangers and eliminate them in time to ensure site safety.

26 transformer, distribution appliances should be set up according to the regulations of fire equipment. There should be a fire prevention system, near the fire source.

27. Electrical lines, equipment switches, lighting and other flammable materials must be kept safe distance, wood shed shavings, sawdust should be cleaned in time, and equipped with fire extinguishing equipment. When using iodine tungsten lamp, the distance between lamp and flammable substance should be greater than 50cm, indoor is not allowed to use more than 100W lamp, bedside lamp is strictly prohibited.

28. It is strictly prohibited to use electric stoves, iodine tungsten lamps and other high temperature lamps as heating and baking materials.

29. Wire connection should be staggered according to different phase sequence. When cutting the wire, the live wire and the neutral wire should be separated and mislocated to prevent short circuit at the mouth of the pliers.

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**Three, gas, electric welding operation safety code**

1. Before using gas welding, check whether the connection of gas welding regulator and rubber tube is tight. Only soap water test is allowed during inspection, and flame test is strictly prohibited.

2. Before gas welding work, it is necessary to check whether the fire nozzle is in good condition, and use a lighter when igniting. Matches or lighters are not allowed.

3. Cylinders not in use should always wear protective caps.

4. When engaged in gas welding and electric welding work, appropriate protective equipment must be worn. It is strictly prohibited to use gas cylinders without pressure regulating devices.

5. When cutting and welding at high places or open holes, appropriate isolation measures should be taken for high-heat metal slag to avoid spark slag and electrode scattering, scald the personnel below or cause fire.

6. One gate and one machine must be done for motor and welding machine. When using the welding machine, the fire license system should be implemented, and someone is monitoring, and the welding machine should be placed in a well-ventilated place.

7. The welding machine must go to the security department to issue the fire certificate before use. Welding machine wiring should meet the regulations, the secondary line should be wired nose, well with screws compaction. The line connector should be less. When working, the combustible materials in the working area should be cleaned. The welding machine should be placed in a well-ventilated place.

8 Flammable items must be kept away from gas or electric welding sites.

9. If the flame is found to burn into the welding device or rubber tube, the oxygen on the welding device should be closed immediately, and then the acetylene.

10. Gas cylinders must be kept upright by trolley and fixed with double iron chains.

11. The name of the manufacturer, type of the cylinder (body), person in charge and contact telephone number should be clearly marked when using the cylinder.

12. All kinds of gas or chemical pipelines or equipment without cleaning must not be welding or gas welding.

13. Check whether the grounding of equipment and welding material is normal before electric welding operation.

14. Check whether the external insulation of the power supply is damaged and whether the capacity device of the fuse is normal before welding operation.

15. Do not connect the grounding wire of the welding machine to railings, stairs, steel frames of buildings or pipes in use.

16. Before handling the welder, cut off the power supply line.

17. Perform electric or gas welding operations in a confined space with adequate ventilation or wear appropriate protective equipment.

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| ![](ex10-21_002.jpg) | **China Electric Power Company No. 4** | **Professional sub-package together** |

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**4. Safety Rules for Material handling and storage**

1. Materials and appliances shall not be stacked to prevent the use of fire extinguishers and prevent safety entrances and electrical switches.

2. Pay attention to wires and electrical equipment when handling materials, so as to avoid electric shock and disaster caused by body and material contact.

3. The power vehicles responsible for handling shall not enter the controlled area without the approval of the local supervisor.

4. When trucks, tankers and cranes stop for loading and unloading, the hand brake should be pulled up and the front and rear wheels fixed with triangle blocks.

5. Crane operation safety precautions

1) The operator shall not drive the crane without qualified training.

2) Crane operators should bring special operation licenses with them.

3) The crane operation shall apply for lifting license according to the prescribed procedures.

4) After the crane lifts the working object, the driver shall not leave without the consent of the command personnel.

5) No one is allowed to walk under the lifting weight or near the rope under tension.

6) Ensure that the retaining performance of the spreader structure does not exceed the rated load.

7) Warning belts should be given around the lifting operation and 5 meters outside the hanging radius to warn others of the danger of construction, and special personnel should be assigned to supervise nearby.

8) Steel cables and spring tongue pieces of hoisting equipment should be checked and qualified before use.

6. Safety precautions for the operation of stacking machine

1) No trained operator shall drive the stacker without authorization.

2) No one is allowed to take the stacker during handling operation.

3) The speed of handling vehicles in the warehouse shall not exceed 10 km/h.

7. Safety precautions for tank truck unloading operation

1) The tanker shall be marked with the name of the chemicals to be carried, the qualification mark and other relevant information.

2) The tank truck must be equipped with operator protective equipment and first aid kit.

3) The unloading of chemicals by the tank truck shall be carried out according to the operation procedure of the tank truck.

4) After filling or loading the tank truck, remove the outlet joint carefully to avoid leakage during filling or loading.

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| ![](ex10-21_002.jpg) | **China Electric Power Company No. 4** | **Professional sub-package together** |

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8. Safety regulations of Party B's tool room and warehouse

1) Inspect the doors and Windows of the warehouse and materials stored in each reservoir area as soon as possible, report any abnormality immediately, and check the materials stored in each reservoir area before work every day

Check doors and Windows, and make sure that there are no hidden dangers in fire prevention, anti-theft, power lines, etc., before leaving work.

2) Clean the warehouse every day, check the unsafe state of objects, and keep the reservoir area clean and tidy.

3) Check the material safety and fire prevention facilities inside and outside the reservoir area once a day. And equipped with enough fire extinguishers, found hidden dangers and problems in time to deal with, no ability

Report immediately when dealing with the problem for processing support.

4) Chemicals should follow the principle of buying less, buying more often, no or little inventory, and the inventory should be stored separately in another warehouse. According to the characteristics of chemicals such as flammable and explosive in water, volatile, corrosion and other items should be taken ventilation, rain proof, separation, high pad, anti falling, electrical explosion-proof and other measures for storage, to eliminate or reduce

Its harm.

5) Arrange the stacking of materials in the library reasonably, reserve enough access channels, and do not walk, sit or lie on the materials. Fragile and explosive items must be handled lightly

Put them lightly and put them in an obvious position when they are put into storage to prevent pressure, collision and beating. The materials stored in the open air should be covered under the mat.

**Five, high work safety code**

1. In the height of 2 meters above the operation, and no platform and guardrail around the elevated operation, should be taken before the construction of safety protection measures, after the inspection and confirmation of safety can be carried out.

2 engaged in high work must wear safety helmet correctly and tie the jaw belt. Use the safety belt correctly. Hang the safety belt in the place where your life can be guaranteed after you climb high. In the case that there is no seat belt to hang at high altitude, you must set up a life safety line, and then hang the seat belt on it before you start working.

3. Do not use wooden ladders when working at heights, and check whether the ladders are damaged and the feet of the ladders are stable before working.

4. If you carry hand tools with you when working at heights, you should use a tool belt or tool kit to avoid falling and hurting people.

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| ![](ex10-21_001.jpg) | **Professional division bag together** |

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5. When using ladders, avoid placing them at the exit entrance to avoid being knocked down by people entering and leaving. The use of ladders must be set up special support and not part-time other work, the top of the ladder and above the third orange is not allowed to stand people working.

6. Metal ladders should not be near electrical equipment to prevent electric shock.

7. Do not employ male or female workers under 18 years of age or over 55 years of age to work at heights.

8. Persons with high blood pressure, cardiovascular diseases, anemia, incomplete limbs, color blindness, high myopia, abnormal hearing, impaired balance, or who have suffered from epilepsy, mental or neurological diseases shall not be engaged in high work.

9. Party B's security personnel shall check whether the structure is solid and whether the staff's physical and mental condition is suitable for working at heights before daily operation.

10. The personnel working on the height shall check the safety protection measures and facilities by themselves before daily operation, and replace them immediately if there is any abnormality.

11. After the completion of daily construction, the ladder should be positioned and locked flat, and the place should be marked.

**Vi. Safety Rules for dangerous operations**

1. Definition and safety regulations of dangerous operation

1) Hot operation: it refers to the operation with open flame when working, such as electric welding, gas welding, gas cutting, blowtorch, grinding wheel of Angle grinder, toothless saw and grinding wheel cutting

Machine, baking work and other operations that may cause fire, explosion and other accidents.

2) Fire operation shall be issued fire certificate and express on the construction site, in order to obtain the supervision and inspection of safety management personnel;Fire operation must be more than two people work, one person work one person monitor the fire;Arrive at the construction site first exclude the site including the reservation of holes and holes outside the wall of flammable and explosive goods;With a certain number of qualified fire extinguishers on site standby;There should be 6-7 meters between the gas cylinders used in gas welding and cutting operations, and a safe distance of 10 meters between the two gas cylinders and the open flame

Distance;Outdoor five, six or more wind is not allowed to open fire operation.

3) confined space operation: such as basement reservoir, various storage tanks, tanks, sewer Wells, etc., may be due to insufficient oxygen content (02 content is less than 18%)

Operation into accidental injury

4) The environment shall be determined jointly with the safety management personnel before the operation. If the air quality is unqualified, the construction shall not be allowed. Ventilation facilities and rescue equipment shall be configured before the work

Apply reserve. Personnel leave for a period of time, and then enter the work should also be re-implemented environmental and other aspects of the determination.

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| ![](ex10-21_001.jpg) | **Professional division bag together** |

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5) Overhead and hanging operation: refers to the operation where the height is above 2 meters (including 2 meters) and accidental fall may occur.

6) Refer to the high work safety code.

7) Dangerous substances pipeline disassembly operation: refers to the disassembly of various acids, alkali, engraving, special gas (explosion, spontaneous combustion, corrosion and other dangers), liquefied gas (low Temperature), high temperature gas, high temperature liquid and other pipelines, may cause accidental injury due to leakage.

8) Before the operation, it is necessary to be clear about the danger of the demolition operation, formulate protective measures and prepare personal protective equipment. The principle is that it is better to have more than enough, such as protective glasses and acid masks. Good ventilation facilities, dilute acid, alkali, inflammable and explosive gas. It is prohibited to operate with fire, if it is necessary to operate with fire

Only with strict testing and strict protective measures can it be allowed.

9) Fire pipeline interruption/fire detector isolation operation: refers to the operation of fire detector caused by construction, and sends out wrong signals. Including hot fire operation

Specified operations, fire piping and hydrant construction/reaming/ceiling drilling and other construction operations that may produce dust or smoke.

10) In order to prevent occupational disasters and ensure the life safety and health of employees at work, application, inspection and supervision shall be carried out for the above dangerous operations.

To ensure the safety of operations.

11) Dangerous cross operation: in the construction, there will be more due to the progress of up, down, left and right construction at the same time, and do not take into account the formation of interactive damage.

12) Do not ignore the existence of hidden safety risks because of the temporary progress.

13) Pay attention to the operation situation before and after the work at any time, once there is a hidden danger, to temporarily avoid or temporarily change the position of the work to eliminate hidden dangers.

2. The implementation of licensing methods

1) If it is necessary for Party B to engage in dangerous operations, it shall inform the project contractor before the construction, apply for and obtain the construction permit form, which shall be posted on the construction site

A second copy of the construction permit and the first copy of the permit shall be filed with the security unit in the plant before construction.

2) Before engaging in dangerous operations, the security management personnel of Party B or the person in charge of the site shall inspect the work site and confirm that there is no hidden danger before the construction personnel

The operation may begin.

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| ![](ex10-21_002.jpg) | **CLP No. 4** | **Professional sub-package together** |

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**Seven, clean room construction management provisions**

1. Rules for entering clean room:

1) To enter the clean room, you must wear clean safety shoes and shoe covers, and wear a hard hat.

2) The personnel shall enter and exit from the designated isolation area by virtue of the clean room badge. It is strictly prohibited to enter and exit through the closed door or other places.

3) It is strictly prohibited to use other people's work cards to enter.

4) Materials and appliances can only be brought in after the inspection permit, and the materials and appliances should be kept clean and free of oil.

5) Bring in unauthorized tools or materials.

6) Materials must go through special channels.

7) In the highly clean stage, special gloves need to be worn in the clean room.

8) In the highly clean stage, all areas of the clean room need to wear clean room protective equipment in accordance with the standard.

2. Civilized construction;

1) Trash cans and collection boxes should be placed in the FAB area for everyone to use.

2) The materials should be packed independently. Before entering the clean room, the outer packaging must be removed in the designated area outside. The packing boxes should be cleared away in time and put into the dustbin.

3) Materials shall be stored in the designated area and stacked neatly, with good identification.

4) No broom should be used for cleaning in clean room, but vacuum cleaner should be used (daily cleaning).

5) The operations that produce dust in the work, such as drilling, should be cleaned with a vacuum cleaner in time.

6) HEPA filter vacuum cleaner must be used for cleaning operations.

7) The garbage generated in the operation should be collected in time.

8) Clean up the working area after the work is finished.

9) All refuse and scrap materials must be removed from the site on the same day.

10) Keep items stacked neatly.

11) No smoking in the factory

12) No drinks or food.

13) No urinating or spitting.

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| ![](ex10-21_002.jpg) | **CLP No. 4** | **Professional sub-package together** |

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3. Clean room operation requirements:

1) The construction of clean room shall be applied for in advance, and shall not expire.

2) The ladder, especially the working surface, must be wiped clean before entering the clean room.

3) Once the working platform is dirty, it should be cleaned out of the clean room immediately.

4) The unpainted pipe should be placed on the overhead board, not on the ground.

5) Polluting operations (such as drilling, grinding, cutting, etc.) must be applied for, approved, and can only be carried out after taking protective measures.

6) The pollutants and debris generated in the operation should be isolated by temporary walls.

7) No cutting processing can be carried out in the clean room.

8) A shed should be set up for isolation in hot work.

9) Gas cylinder with plastic wrap, fixed placement.

10) Wire insulation overhead (at least 2m).

11) It is forbidden to block the channel, and ensure that the channel is smooth and clean at any time.

12) It is forbidden to open any emergency entry and exit unless it is an emergency.

13) Prefabricated gas cutting or welding should be done outside the clean room.

4. Pipeline safety:

1) Only thick diameter purified gas and general gas stainless steel pipes and wire slots can bear weight.

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| ![](ex10-21_001.jpg) | **Specialized in sub-package** |

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2) PVC pipe, plastic pipe, dangerous chemical pipe, fine diameter stainless steel pipe and other pipes are prohibited to tread on and cling to.

3) Do not step on the ventilation filter net.

5. Ground/wall protection:

1) Wheels for moving shelves and other wheels in use should be wrapped with licensed tape to prevent scratches on the floor.

2) Protective covers will also need to be added to the legs of the step ladder.

3) Replace the tape that wraps the wheels if it gets dirty.

4) Replace the tape on the wheel if it is damaged or lost.

5) Protective leather or plastic pads should be placed under ladders/moving platforms when they are placed on the ground.

6) When the construction area, materials and tools are placed on the ground, protective leather or plastic pads need to be laid underneath.

7) Take protective measures to prevent oil stains from contaminating the floor of the clean room.

8) Do not place any materials or tools near the wall of the clean room, and keep a distance of more than one meter.

9) When using tools or materials to transport, the item must be completely off the ground, and is not allowed to drag on the ground.

**Viii. Other Requirements:**

**1. "Ten inaccurate" construction site**

1) Do not wear safety helmet, do not enter the site.

2) No entry to the site after drinking alcohol or with children.

3) Vertical transport such as derrick is not allowed to take people.

4) Slippers and high heels are not allowed to be worn to work.

5) Formwork and perishable materials are not allowed to be used as scaffolding, and no roughhouse during homework.

6) The power switch is not allowed to use a brake, untrained workers are not allowed to operate machinery.

7) No protective measures are not allowed to work at altitude.

8) Hoisting equipment is not allowed to be hoisted without inspection (or test hoisting), and no one is allowed to stand below.

9) No smoking is allowed in the woodworking site and the fire protection zone.

10) All kinds of materials at the construction site should be classified and stacked neatly, so as to achieve civilized construction.

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| ![](ex10-21_001.jpg) | **Specialized in sub-package** |

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**2. Ten safety technical measures**

1) Use the "four treasures" (safety hat, safety belt, safety net, leakage protector) according to the regulations.

2) Mechanical equipment protection device must be complete and effective.

3) Hoisting equipment, such as lifting equipment, must be equipped with anti-position devices. It is not allowed to operate with illness, overload operation, and maintenance in operation.

4) Erection of electric wires, the lines must comply with the regulations of the local power bureau, electrical equipment must be all grounded to zero.

5) Electric machinery and electric hand-held tools should be equipped with leakage tripping devices.

6) Scaffold material and scaffold erection must meet the requirements of the regulations.

7) All kinds of cables and equipment must meet the requirements of the regulations.

8) There must be protective measures for the delivery ports, elevator ports, reserved ports and passageways of projects under construction.

9) It is strictly prohibited to wear high heels, slippers and bare feet into the construction site area, and it is not allowed to wear hard soles and slippery shoes with nails when working at altitude.

10) Dangerous places such as cliffs and steep ridges on the construction site should also have warning signs, and red lights should be warned at night.

**3. Six disciplines of production safety**

1) Entering the site, you must wear a hard hat, buckle the hat band, and use personal protective equipment correctly.

2) two meters above the height, the suspension operation must do a good job of safety measures, must wear a good safety belt, buckle the safety hook.

3) When working at high altitude, do not throw materials and tools and other objects up or down.

4) All kinds of electromechanical equipment, must be reliable and effective safety grounding and lightning protection device can be started to use.

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| ![](ex10-21_001.jpg) | **Professional sub-package together** |

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5) Those who do not know electrical appliances and machinery are strictly prohibited from using and playing with mechanical and electrical equipment.

6) Non-operators are strictly prohibited to enter the hoisting area, the crane must be in good condition, and no one is allowed to stand on the vertical bottom of the rod.

**4. Fire prevention notice**

1) Open flame shall not be used arbitrarily without approval on the construction site.

2) Welding operations must strictly follow the "ten no burning" regulations.

3) Smoking is strictly prohibited in inflammable and explosive places and prohibited areas such as paint room, wooden shed and dangerous goods warehouse.

4) Non-electricians are prohibited to install and connect electrical appliances and pull wires without authorization.

5) It is prohibited to use non-productive electric heating, kerosene stove and other open fire appliances without authorization.

6) Fire equipment is not allowed to be used for house use, no piling around, keep the road unblocked.

**5. "Two connections", "three nots" and "five necessities"**

1) Two-way: the construction site sidewalk is unblocked;The access of units and residents along the site is unimpeded.

2) Three None: there is no pipeline accident during construction;No major casualty accidents during construction;The roads around the construction site are smooth and there is no standing water.

3) Five must:

> Construction areas and non-construction areas must be strictly separated.

> Construction site must be listed construction, management Pekka on duty.

> The construction materials must be stacked in order.

> Cleaning facilities must be clean and civilized.

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| ![](ex10-21_002.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;中电四公司 | 专 业 分 包 合 同 |

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Annex 2:

**Safety Penalty Notice**

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|:---|:---|:---|
| Name of unit: | Name of unit: | Responsible person: |
| Unit to be penalized: | Unit to be penalized: | Amount of penalty: |
| Basis for applying for penalty: | Basis for applying for penalty: | Basis for applying for penalty: |
| &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; Applicant:<br>Date/month | &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; Opinions of Party A's Safety and Quality Supervision Department:<br>Signature:<br>Date/month | &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; Opinions of Party A's Safety and Quality Supervision Department:<br>Signature:<br>Date/month |

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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Attachment 3:

**Safety is punished with fine rules**

Note: Every employee of Party B shall conscientiously carry out safety management regulations when entering the construction site.If they fail to do so, Party A will punish them

In the form of execution. The following words: Description of violation, responsible person, RMB value, means that when Party B receives the notice, it shall pay in cash immediately, no later than 22:00 of the same day, and pay twice as much the next day or in the form of deduction of project payment. The penalty for repeated violations by the same person and the same site shall be doubled and the site shall be cleared.

Under any of the following circumstances, the project department and Safety and Quality Supervision Department of Party A shall propose, and the engineering management department and Purchasing Department shall evaluate, the subcontractor shall never be employed:

1) Production safety accidents caused by disobedience to safety management, illegal command and brutal construction;

2) Poor safety management, which cannot be improved after repeated punishment by the project department;

3) Threatening the project department by withdrawing people and removing sites for various reasons;

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Description of security violations** | &nbsp;&nbsp;**Responsible person** | &nbsp;&nbsp;**Fine (yuan)** |
| &nbsp;&nbsp;**1. Safety management** | &nbsp;&nbsp;**1. Safety management** | &nbsp;&nbsp;**1. Safety management** |
| &nbsp;&nbsp;No safety construction scheme, technical measures, safety technology disclosure | &nbsp;&nbsp;Party B's on-site person in charge | &nbsp;&nbsp;500 and stop construction |
| &nbsp;&nbsp;The scheme adopted has not been approved and violates the safety technical measures scheme | &nbsp;&nbsp;Party B's on-site person in charge | &nbsp;&nbsp;500 and stop construction |
| &nbsp;&nbsp;Large mechanical equipment, facilities without notice installation, demolition | &nbsp;&nbsp;Party B's on-site person in charge | &nbsp;&nbsp;500 and stop construction |
| &nbsp;&nbsp;The machinery and tools have not been accepted for use | &nbsp;&nbsp;Party B's on-site person in charge | &nbsp;&nbsp;500 and stop construction |
| &nbsp;&nbsp;Failure to apply for the required dangerous work permit | &nbsp;&nbsp;Party B's site person in charge | &nbsp;&nbsp;500 and stop construction |
| &nbsp;&nbsp;The temporary demolition of safety protection facilities has not been applied for | &nbsp;&nbsp;Party B's on-site person in charge | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;No supervision and warning signs after removal of safety protection facilities | &nbsp;&nbsp;Security officer of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Failure to disclose or inform the source of danger before the shift | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Failure to attend a security meeting on time | &nbsp;&nbsp;Security officer of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Failure to attend or assign someone else to conduct a site safety inspection | &nbsp;&nbsp;Party B's safety officer | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Prevent or prevent workers from participating in safety training and other safety activities. | &nbsp;&nbsp;Party B's safety officer | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Did not attend the Daily Safety Shift Meeting, Safety Education Conference, Safety work Exchange Meeting. | &nbsp;&nbsp;Employee himself | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Allow unlicensed personnel to perform special operations | &nbsp;&nbsp; Security officer of Party B<br> My own employee | &nbsp;&nbsp; 200<br> 100 |
| &nbsp;&nbsp;The civilized living and environment of the team are not executed according to the regulations | &nbsp;&nbsp;Security officer of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;**Two, personal protective supplies** | &nbsp;&nbsp;**Two, personal protective supplies** | &nbsp;&nbsp;**Two, personal protective supplies** |
| &nbsp;&nbsp;Not wearing a hard hat, not wearing a jawband, defacing the hard hat, sitting the hard hat on the ground, using the safety hat as a weapon in a fight, etc. | &nbsp;&nbsp;The employee himself/herself violates any of these | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Do not wear safety shoes, grinding cutting and other operations requiring eye protection do not wear safety glasses | &nbsp;&nbsp;Employees themselves | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Do not wear a mask for dust work | &nbsp;&nbsp;Employees themselves | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Do not wear earplugs for noisy work | &nbsp;&nbsp;Employee himself | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Improper use of personal protective equipment: such as using a hard hat to hold water | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Do not wear gloves in operations where gloves are used, such as in rotating mechanical drilling machines and silk pullers | &nbsp;&nbsp;Employee himself | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;Use a harness to hang, bind pipes, heavy objects. | &nbsp;&nbsp;The team leader | &nbsp;&nbsp;200 |

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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|:---|:---|:---|
| &nbsp;&nbsp;**Three, high work** | &nbsp;&nbsp;**Three, high work** | &nbsp;&nbsp;**Three, high work** |
| &nbsp;&nbsp;Climbing 2 meters above the altitude of the operation did not first hang up the safety belt | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Use substandard or unaccepted scaffolding | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;After the mobile scaffold position is fixed, the casters are not applied to the brakes. | &nbsp;&nbsp;Ground staff | &nbsp;&nbsp;50 |
| &nbsp;&nbsp;The scaffold working layer is not full and the paving plate is not tied and fixed. The probe plate is used | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Use a single ladder against the wall ratio of more than 1:4 and unmanned escalator or escalator personnel walk away without authorization | &nbsp;&nbsp; Employees themselves<br> Escalators | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Use single ladder or A-ladder to work at the first and second level | &nbsp;&nbsp;Employees themselves | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;No assigned escalator | &nbsp;&nbsp;Crew leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Work standing 2 meters above a ladder without wearing a seat belt | &nbsp;&nbsp;Employee himself/herself | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;**Four, hot work** | &nbsp;&nbsp;**Four, hot work** | &nbsp;&nbsp;**Four, hot work** |
| &nbsp;&nbsp;Use invalid pyrotechnic certificate or do not apply for pyrotechnic certificate | &nbsp;&nbsp;Squad leader | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;Not equipped with qualified fire extinguisher during hot work | &nbsp;&nbsp;Crew leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;No full-time fire monitor is set up during hot operation | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;When working in hot fire, inflammable items around the fire point are not cleaned up or protection is not carried out outside the hole in the wall and under the hole in the floor | &nbsp;&nbsp;Employees and fire supervisors in open fire operations | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Use a leaky air pipe for gas cutting or gas welding | &nbsp;&nbsp;Open fire operation staff and fire monitor | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Welding or cutting near flammable material above, without taking precautions against spark sputtering. | &nbsp;&nbsp;Employees and fire supervisors in open flame operations | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Do not use the correct electric welding mask or gas welding glasses when applying welding | &nbsp;&nbsp;Open fire working employees | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Do not clean up after welding, observe the situation around the fire point | &nbsp;&nbsp;Open fire operation staff and fire monitor | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;The distance between oxygen and acetylene cylinders is not 7 meters | &nbsp;&nbsp;Open flame operation staff | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Gas cylinder and open flame work less than 10 meters apart | &nbsp;&nbsp;Employees working with open flame | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Acetylene bottle not upright or upright not set anti-lodging fastens | &nbsp;&nbsp;Employees working with open flame | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Open flame operators operate without a license | &nbsp;&nbsp;Safety personnel of Party B | &nbsp;&nbsp;200 |
| &nbsp;&nbsp;**Five, lifting operations** | &nbsp;&nbsp;**Five, lifting operations** | &nbsp;&nbsp;**Five, lifting operations** |
| &nbsp;&nbsp;No lifting operation permit has been applied for | &nbsp;&nbsp;Crew leader and safety officer | &nbsp;&nbsp;200 each |
| &nbsp;&nbsp;Command staff operating without a license | &nbsp;&nbsp;Security officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Use a defective lifting tool | &nbsp;&nbsp;Crew leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Stand above or below a dangling weight | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Use lifting gear that has not been tested to pass muster | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;No safety warning fencing of the lifting operation area | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;When lifting, a safe ground condition is not maintained | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Failure to lift equipment in designated area | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Failure to use the personal safety equipment provided on the site | &nbsp;&nbsp;Employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;**Six, electrical work** | &nbsp;&nbsp;**Six, electrical work** | &nbsp;&nbsp;**Six, electrical work** |
| &nbsp;&nbsp;Operate without a license or with expired certificates | &nbsp;&nbsp;Safety officers and operators | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Do not perform lock-in/calibration procedures after live work or power outage | &nbsp;&nbsp;Squad leader | &nbsp;&nbsp;100 |

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| ![](ex10-21_001.jpg) | **Specialization is divided into packages** |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Step on the wrong side of the work | &nbsp;&nbsp;The employee herself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Short circuit without carefully checking the closing after wiring | &nbsp;&nbsp;Squad leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Maintenance electricians are not responsible for maintenance, resulting in short circuit and production suspension | &nbsp;&nbsp;Maintenance electrician | &nbsp;&nbsp;500 and do exit treatments |
| &nbsp;&nbsp;Without using a plug, insert the copper wire directly into the outlet | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Use a bad outlet, plug | &nbsp;&nbsp;Maintenance electrician | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Live temporary cables are not suspended for use, especially in wet conditions, and run the cables through water | &nbsp;&nbsp; Crew leader<br> Maintenance electrician | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Electric machinery and tools are constantly charged after use | &nbsp;&nbsp;Operator | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Temporary cable not used overhead | &nbsp;&nbsp;Safety officer of Party B | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;**Seven, civilized construction** | &nbsp;&nbsp;**Seven, civilized construction** | &nbsp;&nbsp;**Seven, civilized construction** |
| &nbsp;&nbsp;Misplacing materials and equipment | &nbsp;&nbsp;Crew leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;The construction site is chaotic and the material is not clear after completion | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Materials or equipment are placed at passageways that affect escape paths. | &nbsp;&nbsp;Squad leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Littering | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Work without cleaning up the resulting trash at all times | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Throw items or trash high or upstairs | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Store materials on mobile scaffolding or platforms | &nbsp;&nbsp;Crew leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Store chemicals or materials in non-regulated areas | &nbsp;&nbsp; Squad leader<br> Custodian | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Materials placed in front of the electrical box inspection channel, affect the electrical box inspection | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;**Viii. Others** | &nbsp;&nbsp;**Viii. Others** | &nbsp;&nbsp;**Viii. Others** |
| &nbsp;&nbsp;Construction site roughhouse, do not abide by labor discipline | &nbsp;&nbsp;Violator | &nbsp;&nbsp;100 each |
| &nbsp;&nbsp;Construction site fights and brawls | &nbsp;&nbsp;Offending employee | &nbsp;&nbsp; 1000 each<br> And do the exit treatment |
| &nbsp;&nbsp;Bring food or drinks to the construction site for consumption | &nbsp;&nbsp;The employee himself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Drinking alcoholic beverages during or before work or overtime | &nbsp;&nbsp;Violators | &nbsp;&nbsp;500 and do exit treatment |
| &nbsp;&nbsp;Smoke in non-smoking areas | &nbsp;&nbsp;Violators | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Defecating in public | &nbsp;&nbsp;The employee herself | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;Work with insufficient light or poor ventilation | &nbsp;&nbsp;Team leader | &nbsp;&nbsp;100 |
| &nbsp;&nbsp;The "Notice of Safety Hidden Danger" issued by the overdue rectification | &nbsp;&nbsp;Cooperating party safety officer | &nbsp;&nbsp;1000 |
| &nbsp;&nbsp;**9. Other violations not listed in the description will be punished according to the seriousness of the circumstances** | &nbsp;&nbsp;Violators | &nbsp;&nbsp;1000 |

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**Attachment 15 Quality Agreement**

**Party A: China Electronic System Engineering No.4 Construction Co., LTD**

**Party B: Jiangsu Huhu Electromechanical Technology Co., LTD**

In order to ensure the quality of the project conforms to the national acceptance standards and deliver the qualified project, both parties agree to sign this Construction Quality Agreement through negotiation.

As one of the annexes to the subcontract of the project, it has the same effect as the contract, and both parties shall strictly abide by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A's Responsibilities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Before the construction, Party A shall make technical disclosure or special construction plan for the construction procedure and shall make such disclosure to Party B's responsible person and construction personnel

Disclose, supervise and make the first piece, which shall be used as the standard of the process after receiving and confirming the experience.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The welders on the approach shall be assessed, and the operation cards shall be issued to them after they are qualified, and the welding specimens shall be kept.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Discover quality problems in time, put forward the Quality Rectification Notice, and supervise Party B to complete the work within a specified time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Responsibilities of Party B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The construction shall be carried out in strict accordance with the construction specifications, design drawings and requirements of the owner and supervisor, and shall comply with the technical disclosure of the engineer

Construction scheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The purchased materials shall be submitted for examination and confirmation in advance, and then purchased. The materials must be submitted for inspection before they can be used.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Timely rectify the quality problems proposed by Party A, and close the rectification order issued as scheduled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Reward Provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Project Department shall give to Party B and individuals with good quality in strict accordance with the drawing design and the requirements of the owner and the construction practice specifications

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Commendation and reward;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The reward method and amount shall be determined by the project department according to the construction highlights of Party B on site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Punishment Provisions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A shall have the right to give corresponding penalties to units and individuals that fail to comply with the requirements;The penalty standards shall be in accordance with "Quality" in the attached table

The punishment Rules shall be executed according to the corresponding provisions. The contents not listed in the table shall be punished according to the specific circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B who refuses to comply with the rectification, repeatedly has the same quality problem, and has serious gap with the first confirmed standard shall be doubled

Punishment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Violators must pay the fine in full before 20:00 on the same day, and those who don't pay the fine on time will be deducted twice from the project money

In addition.

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. The penalty on Party B in the Company's "Quality Reward and Punishment System" is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Project department shall impose a penalty of RMB 2000 ~ 10000 on Party B for any of the following problems and issue a Quality Penalty Notice.

The fine shall be paid in cash, and if Party B fails to pay within the time limit, double deduction shall be made from the subcontracted project payment of the current month.

> Those already in use on the project;

> those with serious quality problems;

> Quality problems involving process concealment and affecting the construction of the subsequent process require immediate rectification but cannot be completed within the specified time Rectification is effected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Those who purchase fake materials for use in the market shall be fined more than 10,000 yuan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. In case of quality accident, compensation and punishment shall be given according to the size and consequences of the loss caused.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In case of any of the following situations, the project department and the Safety and Quality Supervision Department shall propose the case, and the Project Department and the Contract and Purchase Department shall evaluate it;

Party B shall be listed as never to be employed.

> If a major quality accident occurs and causes heavy economic losses to the Company;

> Those that have suffered major damage within the Company;

> Disobey management and serious quality problems occur several times;

> threatening the project department with fines for quality, such as removing people and withdrawing sites

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Attached Table 1:

**Quality Penalty Rules - Electromechanical**

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| | | |
|:---|:---|:---|
| Serial number | &nbsp;&nbsp;Present image | Violation<br> 1 case |
| one, | &nbsp;&nbsp;**Material approach** |  |
| 1 | &nbsp;&nbsp;Entry materials are not used for inspection | 1000 |
| 2 | &nbsp;&nbsp;The materials purchased do not conform to the sample | 500 |
| 3 | &nbsp;&nbsp;Equipment and main material material, brand, important parameters are inconsistent with the design and contract | 1000 |
| Two, | &nbsp;&nbsp;**Bracket making and installation** |  |
| 1 | &nbsp;&nbsp;The end of the support and hanger is cut without grinding and anti-corrosion installation | 100 |
| 2 | &nbsp;&nbsp;Support hanger gas cutting and weld cutting bolt holes | 100 |
| 3 | &nbsp;&nbsp;The support and hanger are not painted and installed | 100 |
| 4 | &nbsp;&nbsp;Bracket material specifications are smaller than atlas or design-specified standards | 500 |
| 5 | &nbsp;&nbsp;The heat pipe is mounted by screw hanging | 300 |
| 6 | &nbsp;&nbsp;Boom expansion bolt loose or casing exposed | 300 |
| 7 | &nbsp;&nbsp;The air duct system has been insulated without anti-rocking support | 500 |
| 8 | &nbsp;&nbsp;The reinforced plate connecting the pipeline through the floor slab is not connected with the steel support or has no effective support | 300 |
| 9 | &nbsp;&nbsp;Use rope, wire, or wire, etc. as hangers | 200 |
| Three, | &nbsp;&nbsp;**Welding operations** |  |
| 1 | &nbsp;&nbsp;The welder has no valid certificate/valid certificate did not perform the exam or failed the exam construction | 1000 |
| 2 | &nbsp;&nbsp;The weld is not transparent, the molding is too poor, and the height does not meet the requirements | 100 |
| 3 | &nbsp;&nbsp;Direct arc welding is required for argon-connected pipes | 500 |
| 4 | &nbsp;&nbsp;Stainless steel welding with argon gas protection does not meet the requirements of serious oxidation | 300 |
| 5 | &nbsp;&nbsp;Stainless steel pipes are welded without argon gas protection | 500 |
| 6 | &nbsp;&nbsp;Stainless steel welds are not pickled or sanded | 100 |
| **Four,** | &nbsp;&nbsp;**Plumbing major** |  |
| 1 | &nbsp;&nbsp;Stainless steel pipes below DN200 are not constructed with band saws and beveling machines | 1000 |
| 2 | &nbsp;&nbsp;Failure to groove the mouth of the pipe for welding as required | 200 |
| <br> 3 | &nbsp;&nbsp;Rubber or metal soft joints are fixed or stretched without support before installation, resulting in deformation under stress | <br> 500 |
| 4 | &nbsp;&nbsp;Non-metallic pipe support installation does not meet the requirements leading to pipe subsidence and deformation | 500 |

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| 5 | &nbsp;&nbsp;Install pipes without removing rust and painting them | 300 |
| 6 | &nbsp;&nbsp;No cold bridge measures are taken for piping through floor brackets | 300 |
| 7 | &nbsp;&nbsp;Do not weld the inside of the flat welded flange | 100 |
| 8 | &nbsp;&nbsp;PVC pipe construction does not draw the installation line and inspection line | 300 |
| 9 | &nbsp;&nbsp;Fastening bolts less than the specified standard or using screw instead of bolts | 300 |
| 10 | &nbsp;&nbsp;Different materials of pipe directly welded connection | 200 |
| 11 | &nbsp;&nbsp;The pipe through the basement outer wall sleeve has not done waterproof sealing, through the roof without rain leakage measures | 500 |
| 12 | &nbsp;&nbsp;Steel sleeve steel directly buried steam pipeline outer guard pipe has not been tested for pressure | 500 |
| 13 | &nbsp;&nbsp;Steam and hot water pipes are not installed with fixed supports, slide the support | 500 |
| 14 | &nbsp;&nbsp;Pipes that alternate between hot and cold water are not equipped with fixed supports as required | 500 |
| 15 | &nbsp;&nbsp;Pipe valves and fire sprinklers were not tested as required before installation | 300 |
| 16 | &nbsp;&nbsp;Plastic piping is laid without expansion joints installed as required | 200 |
| 17 | &nbsp;&nbsp;The condensate outlet hose of the device is deflated, the pipe slopes, and the condensate drainage is connected to other pipes | 200 |
| 18 | &nbsp;&nbsp; Buried pipe elbow, tee, valve is not in accordance with the requirements to do support foundation, tamper Solid pipe bottom, backfill construction | 1000 |
| 19 | &nbsp;&nbsp;Heat pipe and cable spacing is less than a safe distance | 1000 |
| 20 | &nbsp;&nbsp;Tubing through fire/explosion zone is not sealed | 500 |
| 21 | &nbsp;&nbsp;No water seal is set for the drainage of the air conditioning equipment or the height of the water seal cannot meet the requirements | 300 |
| Five, | &nbsp;&nbsp;**Ventilation specialty** |  |
| 1 | &nbsp;&nbsp;Spring clip length batch does not meet the requirements, installation spacing is not correct | 300 |
| 2 | &nbsp;&nbsp;Spring clamp, corner code batch thickness is not enough | 500 |
| 3 | &nbsp;&nbsp;Common plate flange air pipe package Angle batch do not knock | 300 |
| 4 | &nbsp;&nbsp;Insulation air duct through the floor bracket does not take anti-cold bridge measures | 300 |
| 5 | &nbsp;&nbsp;Use a non-combustible material as a gasket for the smoke exhaust duct | 1000 |
| 6 | &nbsp;&nbsp;The air duct and static pressure box are not reinforced in accordance with the specifications | 300 |
| 7 | &nbsp;&nbsp;Adopt the form of cutting edge and edge splicing to open and connect tee on site | 500 |
| 8 | &nbsp;&nbsp;No sealing measures have been taken between the point where the air duct in the return air duct passes through the wall panel and the hole of the wall panel | 200 |
| 9 | &nbsp;&nbsp;The vent outlet soft joint is out of position by more than 30mm | 200 |
| 10 | &nbsp;&nbsp;Screw air duct opening horse mouth does not use finished tee | 300 |
| 11 | &nbsp;&nbsp;The thickness of the air duct plate is less than the national standard or the galvanized layer is not enough | 2000 |
| 12 | &nbsp;&nbsp;The wrong connection of the air pipe/directly block the reducer without the reducer at the reducer | 300 |

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| 13 | &nbsp;&nbsp;No measures have been taken to prevent rainwater from entering the roof common plate flange air duct and flowing back into the room | 500 |
| 14 | &nbsp;&nbsp;The air pipe flange and air valve are installed in the wall | 300 |
| 15 | &nbsp;&nbsp;No rain prevention measures have been taken where the outdoor air duct passes through the wall and roof | 300 |
| 16 | &nbsp;&nbsp; The air pipe flanges and soft joints in the explosion-proof area are not made to cross ground wires, and the two ends are not Connect with the grounding main line | 500 |
| 17 | &nbsp;&nbsp;The insulation air duct bracket is not insulated from the air duct | 200 |
| 18 | &nbsp;&nbsp;The distance between composite air duct supports and hangers does not meet the specification requirements | 200 |
| 19 | &nbsp;&nbsp;High pressure and negative pressure air pipes use hoses without wire support | 200 |
| 20 | &nbsp;&nbsp;There is no support hanger within 300mm from the horizontal pipe to the soft joint, which causes the air pipe to sink and the soft joint to suffer force | 300 |
| 21 | &nbsp;&nbsp;The distance from the fire valve to the wall is greater than 200mm, leakage or installation direction is wrong | 300 |
| 22 | &nbsp;&nbsp;The derrick of the equipment is lax and bent without force, the nut is incomplete and not fastened, and the end is not double-nut | 200 |
| 23 | &nbsp;&nbsp;The equipment is not fixed connected to the foundation, the base of the equipment is not installed in accordance with the design requirements of the vibration absorber | 200 |
| 24 | &nbsp;&nbsp;The fan coil is not level and there is debris in the stagnant water tray | 100 |
| Six, | &nbsp;&nbsp;Electrical major |  |
| 1 | &nbsp;&nbsp;The main grounding line of the system of the transformer or distribution cabinet is not connected or has bad contact before power transmission | 500 |
| 2 | &nbsp;&nbsp;Metal hose into the box transformer or high voltage cabinet, armored cable steel tape is not grounded | 300 |
| 3 | &nbsp;&nbsp;Cabinet cables are fastened without torque wrench and no fastening mark | 300 |
| 4 | &nbsp;&nbsp;Electrical connection nuts such as bus bar, bus bar and wire nose are loose and not tight before power transmission | 300 |
| 5 | &nbsp;&nbsp;The cabinet has been powered off without fire blocking | 500 |
| 6 | &nbsp;&nbsp;PE row N row multi-strand soft copper wires in the power distribution cabinet are connected without tin washing | 300 |
| 7 | &nbsp;&nbsp;Trim the thread nose and cut the core thread | 200 |
| 8 | &nbsp;&nbsp;Mixed strong and weak cables are laid | 500 |
| 9 | &nbsp;&nbsp;Severe cable damage caused by improper construction | 1000 |
| 10 | &nbsp;&nbsp;Elevators, emergency lighting, fire power, etc., are not using cables as required | 1000 |
| 11 | &nbsp;&nbsp;Bind fixed wire tubes with wire, wire, etc | 200 |
| 12 | &nbsp;&nbsp;Single core AC wire is run separately through a single metal wire tube or metal hose | 200 |

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|:---|:---|:---|
| 13 | &nbsp;&nbsp;The cables and wires entering the box-type transformer are not fixed, and the safe distance between them and the high-voltage part is not up to standard | 300 |
| 14 | &nbsp;&nbsp;The first and last ends of the sent bridge are not connected with the grounded main line (there should be no less than 2) | 200 |
| <br> 15 | &nbsp;&nbsp; Non-galvanized metal bridge, no straddle ground wire at the trough joints, and no claw for connecting screws Pad, the connection position is wrong, the cross section of the ground span wire is less than 4mm2 | <br> 200 |
| 16 | &nbsp;&nbsp;There is no expansion joint and grounding wire for the bridge in the expansion joint or settlement joint of the building | 200 |
| 17 | &nbsp;&nbsp;The bottom of the buried pipeline is not tamped and backfilled as required | 300 |
| <br> 18 | &nbsp;&nbsp; There is no temporary waterproof and dustproof protection for closed bus bars when storage and installation are suspended Or temporary protective measures are damaged | <br> 300 |
| 19 | &nbsp;&nbsp;No electrical connection is available at the connection of explosion-proof pipe or hose wire buckle | 300 |
| 20 | &nbsp;&nbsp;The air pipes and pipelines in the explosion-proof area/pipelines, valve groups and soft joints conveying inflammable and explosive media are not made to cross ground wires, and the two ends are not connected with the ground trunk | 500 |
| 21 | &nbsp;&nbsp;The conductive part in the cabinet is exposed without protective measures | 300 |
| 22 | &nbsp;&nbsp;Thread nose contact surface between the clamp gasket, insulation mark, heat shrink tube, small thread nose or root warping and other reasons caused by non-fit | 200 |
| 23 | &nbsp;&nbsp;No water blocking weir and fire blocking are done at the place where the bus bar, bridge or cable trough crosses the floor | 300 |
| 24 | &nbsp;&nbsp;Electrical systems and equipment lack protective measures where they need to be protected | 300 |
| 25 | &nbsp;&nbsp;Outdoor bridge, trough box into the indoor before not taken rainwater irrigation measures | 500 |
| 26 | &nbsp;&nbsp;Anti-static floors, epoxy floors, etc. are not grounded as required | 200 |
| 27 | &nbsp;&nbsp;The fire module is not set in the dedicated module box | 200 |
| 28 | &nbsp;&nbsp;Integrated cabling cables from outside the building into the building without surge protectors | 300 |
| seven | &nbsp;&nbsp;Insulation |  |
| 1 | &nbsp;&nbsp;Use splicing of materials less than 300mm wide | 200 |
| 2 | &nbsp;&nbsp;Rubber and plastic insulation of air pipe/low-temperature pipe is not brushed with glue, dust and debris are not cleared before brushing | 300 |
| 3 | &nbsp;&nbsp;Air duct glass wool/rock wool insulation without insulation nails, flange and reinforcement Angle on both sides of no long insulation nails | 500 |
| 4 | &nbsp;&nbsp;The pipes and air pipes in the wall casing have not been insulated | 300 |
| 5 | &nbsp;&nbsp;Insulation and protective layer material, thickness, bulk density, brand and requirements do not meet | 300 |
| 6 | &nbsp;&nbsp;Outdoor pipe insulation metal protective layer against water lap and cover using embossing method (glass wool insulation material) | 300 |
| 7 | &nbsp;&nbsp;There is a gap between the low temperature pipe wood holder and the insulation rubber and plastic | 200 |
| 8 | &nbsp;&nbsp;The flange belt thickness is less than 80% of the air duct insulation thickness | 200 |
| 9 | &nbsp;&nbsp;Air conditioning duct/low temperature pipe insulation material is not applied to the root of the flange, there is a vacancy | 200 |

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|:---|:---|:---|
| 10 | &nbsp;&nbsp;The system main pipe and parts, accessories insulation is missing | 300 |
| 11 | &nbsp;&nbsp;Steam pipe, equipment, accessories outside the insulation layer temperature above 60° | 300 |
| 12 | &nbsp;&nbsp;Lead rods, wire tubes, etc. pass through the insulation layer | 300 |
| eight | &nbsp;&nbsp;Clean decoration |  |
| 1 | &nbsp;&nbsp;The roof of the top wall structure has no lifting point and no connection | 500 |
| 2 | &nbsp;&nbsp;Non-standard plate blind plate specification is smaller than the keel reserved position | 300 |
| 3 | &nbsp;&nbsp;No medium aluminium is set between the top plate/wall panels or the medium aluminium shortage exceeds 200mm | 200 |
| 4 | &nbsp;&nbsp;The FFU keel has no lifting point within 300mm around the column | 500 |
| 5 | &nbsp;&nbsp;Epoxy coating construction and PVC bonding/welding below allowable construction ambient temperature | 300 |
| 6 | &nbsp;&nbsp;Expansion bolt mounting sleeve exposed or loose and sinking | 300 |
| 7 | &nbsp;&nbsp;The keel end boom is greater than 300mm from the keel end | 300 |
| 8 | &nbsp;&nbsp;Set a secondary lift on the air duct hanger as the lifting point for the top plate | 300 |
| 9 | &nbsp;&nbsp;FFU keel severely uneven | 500 |
| 10 | &nbsp;&nbsp;Blind plate deformation and air leakage | 200 |
| 11 | &nbsp;&nbsp;There is no effective fixation at the pressure partition wall of the ceiling plate | 300 |
| 12 | &nbsp;&nbsp;The top panel is degummed, cracked, sunk and deformed | 500 |
| 13 | &nbsp;&nbsp;Clean indoor wall panel, roof cut not collected edge rock wool exposed | 200 |
| 14 | &nbsp;&nbsp;Top plate/wall panels cut through the bezel, and no reinforcement measures have been taken | 300 |
| 15 | &nbsp;&nbsp;Epoxy ground bubble, tumor serious | 200 |
| 16 | &nbsp;&nbsp; Failure to adjust the mix or fit according to the acid and base conditions of the environment used The ratio does not meet the requirements of corrosion resistance | 300 |
| <br> 17 | &nbsp;&nbsp; The copper foil is not connected to the ground terminal (solder, bolt crimping, conductive adhesive bonding) The real or detected value does not meet the design requirements | <br> 300 |

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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**Quality Penalty Rules - Civil and Structural**

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| | | | |
|:---|:---|:---|:---|
| Serial number | &nbsp;&nbsp;Problem Description | Violation<br> 1 case | Remarks |
| one , | &nbsp;&nbsp;**Basic engineering** |  |  |
| 1 | &nbsp;&nbsp;**Earthworks** |  |  |
| (1) | &nbsp;&nbsp;Wrong excavation, not according to the requirements of the plan disclosure, or not according to the cleaning of the foundation groove | <br> 300 |  |
| (2) | &nbsp;&nbsp;Fill sampling falsification, tamping times are not enough, excessive layer thickness, stay croucher does not meet the requirements, the base does not clean up debris and soil contains debris | <br> 500 ~ 1000 | <br> Rework in severe cases |
| (3) | &nbsp;&nbsp;Improper mix ratio of lime-soil foundation and sand-stone foundation, unqualified sampling | 1000 ~ 3000 |  |
| (4) | &nbsp;&nbsp;Without taking measures to dewatering before excavation | 300 |  |
| (5) | &nbsp;&nbsp;The water is not cleared before the foundation pit backfilling for backfilling | 300 |  |
| (6) | &nbsp;&nbsp;The construction of deep foundation pit is not carried out in accordance with the expert argumentation scheme | 5000 |  |
| (7) | &nbsp;&nbsp;The excavation is not carried out in accordance with the principle of "slotted support, support before digging, stratified excavation, no overdigging" | 1000 ~ 5000 |  |
| **2** | &nbsp;&nbsp;**Pile foundation works** |  |  |
| (1) | &nbsp;&nbsp;The deviation of pile position exceeds 50mm and the deviation of guard cylinder exceeds 20mm | 300 |  |
| (2) | &nbsp;&nbsp;Pile position without checking before drilling is directly constructed | 500 |  |
| (3) | &nbsp;&nbsp;End bearing pile hole bottom sediment more than 50mm, friction pile hole bottom sediment more than 100mm without secondary hole cleaning for perfusion | <br> 1000 ~ 5000 | Rework in severe cases |
| (4) | &nbsp;&nbsp;After excavation, it is found that the pile head overfills or underfills leakage tendons | 500 |  |
| (5) | &nbsp;&nbsp;The catheter is not clean before perfusion, the connecting part is not sealed ring, the depth of the catheter buried is more than 6m of the concrete surface, the concrete pouring is completed, the catheter is not washed in time or is not clean | <br> 300 |  |
| (6) | &nbsp;&nbsp;A welder for making steel cage is employed without a license and engaged in welding business without passing the examination | <br> 300 |  |
| (7) | &nbsp;&nbsp;Reinforcement cage binding loose, reinforcement is not neat, cage length, cage diameter, main bar spacing<br> The space between stirrup bars does not meet the requirements of the drawing design specification | 200 |  |
| (8) | &nbsp;&nbsp;Mud specific gravity, sand content, viscosity index deviation is too large, resulting in hole collapse | 500 |  |
| (9) | &nbsp;&nbsp;The collapse degree of concrete is not detected before concrete pouring | 200 |  |
| (10) | &nbsp;&nbsp;The concrete is not filled with a large hopper in the primary irrigation, and no water insulation embolism is placed | 500 |  |

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| (11) | &nbsp;&nbsp;The steel cage under the bottom without cutting the steel cage | 500 |  |
| (12) | &nbsp;&nbsp;The aperture and depth of the hole do not meet the requirements of the drawing design, and the deviation exceeds the permissible deviation range | 300 |  |
| (13) | &nbsp;&nbsp;Not feeding in accordance with the mix ratio during the construction of lime soil compacted pile | 500 |  |
| (14) | &nbsp;&nbsp;The lime soil compaction pile is not backfilled and rammed layer by layer, and the thickness of each backfilling, number of falling hammer and height are not implemented according to the scheme | <br> 500 |  |
| (15) | &nbsp;&nbsp;Strong tamping point spacing, falling distance, tamping number does not meet the construction requirements, resulting in ground uplift or churning | 500 |  |
| (16) | &nbsp;&nbsp;When the dynamic compaction encountered winter rainy season construction, did not timely remove snow, rain, frozen soil construction | <br> 300 |  |
| (17) | &nbsp;&nbsp;PHC pile body bending deformation, crack, strength, pile diameter, wall thickness is not enough to continue to use design requirements | <br> 500 | Exit treatment |
| (18) | &nbsp;&nbsp;The deviation of PHC pile position exceeds the allowable deviation range of design | 300 | Rework in severe cases |
| (19) | &nbsp;&nbsp;Large deviation of PHC pile perpendicularity | 200 |  |
| (20) | &nbsp;&nbsp;PHC pile to pile end plate not cleaned for welding before welding | 200 |  |
| (21) | &nbsp;&nbsp;PHC pile-to-pile end plate welding quality is poor or not yet welded, welding slag is not cleaned after welding, and anti-corrosion and rust treatment is not carried out | <br> 200 |  |
| (22) | &nbsp;&nbsp;When PHC pile is pressed, the top and bottom piles are not in the same axis, resulting in eccentricity or pile body fracture | 200 |  |
| (23) | &nbsp;&nbsp;PHC pile sinking depth does not meet the design requirements, and no measures have been taken | 500 |  |
| (24) | &nbsp;&nbsp;Failing to fill and grouting in time as required after grouting of high-pressure rotary jet pile is completed | 300 |  |
| (25) | &nbsp;&nbsp;The water-cement ratio of high-pressure rotary jet pile is not proportioned according to the design requirements | 1000 |  |
| (26) | &nbsp;&nbsp; When the solidification body of high pressure jet grouting pile has strength requirements, the grouting or return is used For filling and grouting | 500 |  |
| (27) | &nbsp;&nbsp;The high pressure jet grouting pile is not cleaned in time after the completion of grouting, resulting in the grouting pipe and nozzle plugging | 200 |  |
| (28) | &nbsp;&nbsp;Steel sheet pile is not constructed according to the designed construction scheme | 1000 ~ 5000 |  |
| (29) | &nbsp;&nbsp;The steel sheet pile lock has not passed the test for direct construction | 300 |  |
| (30) | &nbsp;&nbsp;When steel sheet pile is long, the adjacent joints are not staggered and welded | 300 |  |
| (31) | &nbsp;&nbsp;The steel sheet pile cannot be closed when tilted and no other measures are taken | 500 |  |
| **two** | &nbsp;&nbsp;**Main project** |  |  |

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|:---|:---|:---|:---|
| 1 | &nbsp;&nbsp;**Masonry works** |  |  |
| (1) | &nbsp;&nbsp;Brick, mortar and other main material strength, label and so on do not meet the design requirements | 1000 | Rework in severe cases |
| (2) | &nbsp;&nbsp;The age of autoclaved air filling block is less than 28 days for construction | 500 |  |
| (3) | &nbsp;&nbsp;Masonry horizontal joint, vertical joint mortar fullness is seriously insufficient, and even appear false joint, blind joint, transparent joint | <br> 200 |  |
| (4) | &nbsp;&nbsp;Do not stay in accordance with the requirements of the code | 200 |  |
| (5) | &nbsp;&nbsp;The masonry ash joint exceeds the standard, the masonry is uneven, the masonry wall column displacement or tilt, wrong platform; The ash joint and the flatness and verticality are seriously out of standard | <br> 200 |  |
| (6) | &nbsp;&nbsp;Reserved holes do not meet the requirements, the location is wrong | 200 |  |
| (7) | &nbsp;&nbsp;The reinforcement of the constructional column is not encrypted, the stirrup is leaky and tied, the reinforcement of the constructional column is not connected with the top planting reinforcement, and the number of planting reinforcement is lack | <br> 200 | Rework in severe cases |
| (8) | &nbsp;&nbsp;Door and window wood brick production, anticorrosion, fixed, spacing does not meet the requirements | 100 |  |
| (9) | &nbsp;&nbsp;Masonry, mortar and concrete do not use weight ratio, there is no pound, not according to the ratio of construction | 300 |  |
| (10) | &nbsp;&nbsp;The processing and binding of the stirrups of concrete columns and beams with seismic requirements have not made 135 degree two-way bending hooks, and the flat part is insufficient | 100 |  |
| (11) | &nbsp;&nbsp;The omission of the knot reinforcement or the insertion of the back reinforcement practice fraud | 200 |  |
| (12) | &nbsp;&nbsp;Dry brick on the wall or brick on the wall with serious missing edges and less corners | 200 |  |
| (13) | &nbsp;&nbsp;Group building method is wrong, resulting in through joints, or vertical joints up and down staggered spacing less than 1/3 block length, the end has less than 1/3 block length of the block on the wall | 100 |  |
| (14) | &nbsp;&nbsp;The wall masonry is built to the top at one time, and the top is blocked without the wall self-settling time interval | 1000 |  |
| (15) | &nbsp;&nbsp;The wall top sealing is not constructed according to the atlas and specification requirements, which does not meet the requirements | 1000 | Rework in severe cases |
| (16) | &nbsp;&nbsp;The hollow concrete blocks in the basement have not been filled with grout | 500 |  |
| (17) | &nbsp;&nbsp;The construction column or core column is not set in the hollow concrete block according to the design and specification requirements | 500 |  |
| **2** | &nbsp;&nbsp;**Scaffolding works** |  |  |
| (1) | &nbsp;&nbsp;The construction plan is carried out without approval | 1000 ~ 3000 |  |
| (2) | &nbsp;&nbsp;The construction of high support die is not carried out in accordance with the expert demonstration scheme | 5000 ~ 10000 | Rework for severe cases |
| (3) | &nbsp;&nbsp;The use of pipe rack and fastener is inconsistent with the construction plan | 500 |  |
| (4) | &nbsp;&nbsp;The spacing between horizontal and vertical rods does not meet the requirements of the construction scheme or specifications | 300 |  |

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| (5) | &nbsp;&nbsp;The sweeping rod and scissors brace are not set up according to the construction plan | 300 |  |
| (6) | &nbsp;&nbsp;The form of pipe joint is wrong or the distance between the fastener and the end is not enough | 300 |  |
| (7) | &nbsp;&nbsp;Fastener bolts are not tightened or fail to reach the specified torque | 200 |  |
| (8) | &nbsp;&nbsp;The position of the pipe joint is not staggered from each other according to the provisions | 200 |  |
| (9) | &nbsp;&nbsp;The sweeping rod is removed first when the mold is removed | 500 |  |
| (10) | &nbsp;&nbsp;The foundation is not hardened and no drainage ditch is set up before the erection of scaffolding | 1000 |  |
| (11) | &nbsp;&nbsp;The outer frame is connected to the inner frame | 500 |  |
| (12) | &nbsp;&nbsp;The outer frame is installed later than the inner frame, and the height of the outer frame is lower than the height of the inner frame | 1000 |  |
| (13) | &nbsp;&nbsp; The height of more than 24m floor-to-ceiling steel pipe scaffolding, cantilevered scaffolding, portal type Scaffoldings, hanging baskets and unloading platforms for which no special plans have been prepared | 1000 |  |
| **3** | &nbsp;&nbsp;**Formwork** |  |  |
| (1) | &nbsp;&nbsp;The thickness, bearing capacity, reinforcement method, stiffness and stability of the template do not meet the load requirements, and the construction scheme is seriously inconsistent | 1000 ~ 5000 |  |
| (2) | &nbsp;&nbsp;Beam and plate span ≥4m without arch | 200 |  |
| (3) | &nbsp;&nbsp;The deviation of beam and column axis exceeds the allowable deviation of the code | 200 |  |
| (4) | &nbsp;&nbsp;The elevation deviation of beam and plate bottom die exceeds the allowable deviation of the code | 100 |  |
| (5) | &nbsp;&nbsp;Beam, column geometric size deviation beyond the allowable deviation of the code | 300 ~ 5000 | In severe cases, return to factory for disposal |
| (6) | &nbsp;&nbsp;The contact surface between the formwork and concrete has not been cleaned up and has not been coated with isolation agent | 500 |  |
| (7) | &nbsp;&nbsp;Leaking at the joint of the formwork | 200 |  |

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(8) Before concrete pouring, there are sawdust, wood fragments, water and other uncleaned formwork memory 200

(9) Embedded parts fixed on the template, reserved holes have omissions, allowing deviation beyond the requirements of the code 300

(10) The support and removal of the post-cast belt formwork are not required by the installation construction scheme 1000

(11) Side die removal damage concrete surface and edges 100

(12) No demolishing report for demolishing operation 5000

(13) The mold is not dismantled in accordance with the principle of "support before removal, support before removal" 1000

(14) The spacing between threaded screws is too large 200

(15) There are waterproof requirements for the thickness of the threaded screw water stop does not meet the requirements of the design and construction specifications 300

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| **4** | &nbsp;&nbsp;**Steel bar fabrication and installation process** |  |
| (1) | &nbsp;&nbsp;The type and quantity of reinforcement do not meet the requirements | 500 ~ 3000 |
| (2) | &nbsp;&nbsp;Reinforcement anchorage, lap, welding, mechanical connection, bending does not meet the design and construction requirements | 200 |
| (3) | &nbsp;&nbsp;The stirrup in the core area of the beam and column is not encrypted according to the regulations, which seriously affects the aseismatic structure requirements | 100 ~ 500 |
| (4) | &nbsp;&nbsp;The water stop plate is not welded | 200 |
| (5) | &nbsp;&nbsp;Fire pool, basement and other steel bars are not tied | 100 |
| (6) | &nbsp;&nbsp;Rebar binding leakage binding, loose binding | 100 |
| (7) | &nbsp;&nbsp;The main tendon is misplaced or leaked | 300 |
| (8) | &nbsp;&nbsp;The cushion block is too little, resulting in no protective layer of the beam, or the rubber band on the board sagging seriously | 100 |
| (9) | &nbsp;&nbsp;Chemical planting reinforcement anchorage length is not enough, planting reinforcement effect is poor | 200 |
| (10) | &nbsp;&nbsp;The tension reinforcement of wall masonry shall be set up according to the seismic design requirements | 200 |
| (11) | &nbsp;&nbsp;Bar spacing, protective layer, lap length error exceeds the limit, bending is not straight | 100 |
| (12) | &nbsp;&nbsp;Welding without license, unqualified welding test or direct construction without welding test | 500 |
| (13) | &nbsp;&nbsp;Welding damage to the main bar, cutting groove does not meet the technical requirements | 200 |
| (14) | &nbsp;&nbsp;The protective layer is too thin or too thick | 100 |
| (15) | &nbsp;&nbsp;The cushion block is too little, resulting in no protective layer of the beam, or the rubber band on the board sagging seriously | 100 |
| (16) | &nbsp;&nbsp; Axis offset, bending, edge biting, not welded, welding bag is not Quality defects such as uniformity, porosity, burn, etc | 200 |
| (17) | &nbsp;&nbsp;The straight thread mechanical sleeve is connected with the outer leakage buckle exceeding the allowable value | 100 |
| (18) | &nbsp;&nbsp; External hanging beams, awning, stair steps and other not reserved reinforcement or after planting bars do not meet the quality Quantity required | 200 |
| **5** | &nbsp;&nbsp;**Concrete casting process** |  |
| (1) | &nbsp;&nbsp; Cast-in-place concrete vibration is not dense, honeycomb, pockmarked surface, hole area exceeds the standard, leakage reinforcement, Slag inclusion, rotten root and other quality defects | 100 |
| (2) | &nbsp;&nbsp;The foundation concrete column and beam joint is not dense and not maintained after secondary pouring | 100 |
| (3) | &nbsp;&nbsp;Where there is no special plan for large volume concrete pouring, or necessary measures are not taken to crack the surface | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> 1000 |

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(4) The section size, axis eccentricity and elevation deviation of beam and column after concrete pouring exceed the permissible range 100

(5) Adding water without permission to change the strength of concrete 3000

(6) Large deviation of embedded iron after casting 200

(7) When pouring concrete for columns, beams and slabs, the
 construction is not carried out according to the scheme. If the columns are not poured first, After pouring beams and slabs in the
 order of construction 2000

(8) Sills larger than 30mm gap without casting fine stone concrete 200

(9) Failure to leave construction joints in accordance with the required construction specifications 300

(10) Serious mold run-off or expansion of concrete structure 200

(11) Not according to the requirements of maintenance or maintenance time is not enough, resulting in a large area of cracking 300

(12) The distance between the lower bar of the tamping rod is too large, the tamping method does not meet the construction requirements, and it is not changed after reminding 300

(13) Pouring in rainy days does not take measures to be soaked by water 200

(14) The receiving surface is uneven, which is more serious than the specification requirements or affect the subsequent process construction 300

(15) The reservoir is backfilled without water storage test 5000

(16) Without permission of the design of the load-bearing structure to open holes 1000 ~ 5000

(17) Cold crouching at the floating slurry is not treated, loose stone is not chiseled, not watered wet 300

(18) The collapse degree of concrete is not tested before casting 300

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| **three** | &nbsp;&nbsp;**Steel structure engineering** | | |
| 1 | &nbsp;&nbsp;**Steel structure making and installation** |  |  |
| (1) | &nbsp;&nbsp;The geometric deformation of the main steel member exceeds the standard | 1000 ~ 5000 | In severe cases, return to factory for disposal |
| <br> (2) | &nbsp;&nbsp;Steel structure does not remove rust, basic treatment is poor, not according to the requirements of the coating, fire retardant coating, corrosion thickness is not enough, brushing surface process is poor | 300 ~ 1000 |  |
| (3) | &nbsp;&nbsp;Structural welding, weld length, thickness, bite edge does not meet the standard requirements | 200 |  |
| (4) | &nbsp;&nbsp;Approach materials without inspection report | 500 |  |
| (5) | &nbsp;&nbsp;The bolt leakage is not fastened, and the outer leakage thread is less than two buttons | 500 |  |

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(6) Important foundation iron parts, embedded parts, top surface
elevation geometric size exceeding the standard, appearance Poor workmanship 300

(7) High strength bolt uncorrected before finally screwed 200

(8) The grout at the foot of the column is not dense 200

(9) The main steel structure connecting plate, stiffening plate, reserved hole position is wrong, the number is missing 200

(10) High-strength bolts and ordinary bolts are mixed. The level of high-strength bolts does not conform to the design 500 ~ 1000

(11) The color steel plate is not protected by finished products, causing pollution and damage 200 Rework in severe cases

(12) Without permission to change the section size and wall thickness of the main steel member without design 5000 ~ 10000 Exit for severe cases

(13) If the contact surface of the connecting pair is not
polished and installed directly, paint the contact surface of the connecting pair the 500 to 1000

(14) The bolt holes of steel structure are not suitable for gas cutting and electric welding 500

(15) The welding position of the purlin support plate is inaccurate 200

(16) If the position of the tie rod is incorrect or omitted, the bolt installation of the tie rod does not install gaskets 100

(17) The size deviation of door and window opening exceeds the permissible range 200

(18) The awning frame has uneven welds 200

(19) Where the strength of foundation concrete does not meet the requirements of design and construction 5000 ~ 10000

(20) No record of issuance of electrode, improper use of electrode type or not dried for use 500 ~ 1000

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| **2** | &nbsp;&nbsp;**Molding steel plate (floor, roof, wall) installation** |  |  |
| (1) | &nbsp;&nbsp;Do not meet the requirements of the manufacturer and the standard and the appearance of the poor process, in the construction of damage or deformation of the quality problems | <br> 500 ~ 1000 | <br> Rework in severe cases |
| (2) | &nbsp;&nbsp;Those that bump or scratch the board | 200 | Compensation for the loss of the entire board at the original price |
| (3) | &nbsp;&nbsp;Self-tapping nail plate is not straight, the outer hole hole is not blocked | 100 |  |
| (4) | &nbsp;&nbsp;The board is not sewn straight | 200 |  |
| (5) | &nbsp;&nbsp;The insulation layer is not tightly pasted, and the construction continues after immersion | 500 ~ 1000 | Rework in severe cases |
| (6) | &nbsp;&nbsp;The stud is not welded properly or straight | 200 |  |
| (7) | &nbsp;&nbsp;The mold plate type is not in accordance with the design and sample requirements | 200 |  |
| (8) | &nbsp;&nbsp;The plate has color difference on the wall | 200 | In severe cases, return to factory for disposal |
| (9) | &nbsp;&nbsp;Leakage point after the completion of roof waterproof construction | 200 |  |
| (10) | &nbsp;&nbsp;Gutter installation is not straight | 200 |  |

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| (11) | &nbsp;&nbsp;Poor welding quality, not rust treatment | 300 |  |
| (12) | &nbsp;&nbsp;The gutter is not opened or the overflow hole is not set, resulting in rainwater backpouring | 500 |  |
| (13) | &nbsp;&nbsp;After the installation of the door and window wrapping, it is not attached to the purlin and uneven | 200 |  |
| (14) | &nbsp;&nbsp;Wall panel self-tapping nails without spikes | 100 |  |
| (15) | &nbsp;&nbsp;Roof plate self-tapping nail fixed without glue | 100 |  |
| four | &nbsp;&nbsp;**Ground and floor works** |  |  |
| 1 | &nbsp;&nbsp;Ground, floor cracks, empty drum, peeling, sand serious | 100 / m squared | Over 100 m² rework |
| 2 | &nbsp;&nbsp;Rough ground foundation treatment is poor, concrete does not vibrate, the surface of the dry ash | 200 / m squared |  |
| &nbsp;&nbsp;&nbsp;&nbsp; <br> 3 | &nbsp;&nbsp;The ground and base of the ground are poorly treated, the installation of the split joint does not meet the requirements, and the flatness, hollow drum and gloss do not meet the standard requirements | 200 / m squared |  |
| 4 | &nbsp;&nbsp;There is leakage at the ground or floor drain, and the slope does not meet the requirements of flooding | 300 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; <br> 5 | &nbsp;&nbsp;The surface of the decorative brick is uneven, flatness exceeds the standard, hollow drum, color inconsistency, uneven laying, joint is not wiped with embedded mortar, uneven gap, pattern meets the design requirements, there are cracks, lack of corrugations, falling corners and other defects | 200 |  |
| 6 | &nbsp;&nbsp;The floor flatness deviation exceeds the requirements of the drawing design and quality acceptance specification | 100 / m squared | In severe cases, rework |
| 7 | &nbsp;&nbsp;Stair side not closed edge and do drip line | 100 |  |
| 8 | &nbsp;&nbsp;The waterproof layer after laying wrinkles, empty drums, warped edges and loose sealing and other defects | 100 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; <br> 9 | &nbsp;&nbsp;After the foot line paste, the upper mouth highlights the wall thickness is not uniform, the height is not consistent, the upper mouth is not only flat, there are burrs, off the corner, the seam is not straight, the surface is unclean and so on | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> 100 |  |

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| 10 | &nbsp;&nbsp; The two ends of the wood joist of the wood floor are not padded and nailed firmly, and the gap between the wall is not less than 30mm, the surface is not straight, with 2m ruler check, ruler and joist The gap between more than 3mm | <br> 100 |
| five | &nbsp;&nbsp;**Door and window Engineering** |  |
| 1 | &nbsp;&nbsp;The production size deviation is large, and the actual measurement is not made on site before production | 1000 |
| 2 | &nbsp;&nbsp;Hardware is incomplete, close to the page single pick slot, gap exceed the standard | 100 |
| 3 | &nbsp;&nbsp;It is difficult to open and use after installation, and it is difficult to correct the deformation | 300 |
| 4 | &nbsp;&nbsp;Aluminum alloy, steel doors and Windows installation fixed point less, fixed not firmly, installation position, direction does not meet the requirements | 200 |
| 5 | &nbsp;&nbsp;The gap and location between doors and Windows and walls are not constructed according to the requirements of the drawings | 100 |
| 6 | &nbsp;&nbsp;Aluminum alloy, steel door and window glass installation, adhesive strip, clip, putty, poor appearance process | 200 |

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| 7 | &nbsp;&nbsp;Fire door opening mode is not correct, door frame is not filled seam or stuffed solid treatment | 300 |
| six | &nbsp;&nbsp;**Decoration Works** |  |
| 1 | &nbsp;&nbsp;Door, window plastering before not vertical hanging line, find the square | 300 |
| 2 | &nbsp;&nbsp;The finishing bricks are not lined, squared or lined before pasting | 300 |
| 3 | &nbsp;&nbsp;Indoor and outdoor plastering flatness, obvious plastering crouching, Yin and Yang Angle vertical, empty drum, partition seam exceeds the standard | 100 |
| 4 | &nbsp;&nbsp;The top of the door window and parapet wall is not pressed as a drip line trough, and there is no expansion joint for outdoor water distribution | 100 |
| 5 | &nbsp;&nbsp;Indoor and outdoor paint spraying, painting does not comply with the requirements of the design code construction | 200 |
| 6 | &nbsp;&nbsp;Surface decoration (such as decorative board, wall, top, ground decoration) is not applied according to the specification | 200 |
| 7 | &nbsp;&nbsp;Plastering operation does not hang the net in accordance with the requirements of the construction code | 500 ~ 1000 |
| 8 | &nbsp;&nbsp;Side keel not stringing before installation | 200 |
| 9 | &nbsp;&nbsp;The side keel is not tightly connected to the wall and has gaps | 100 |
| 10 | &nbsp;&nbsp;The main and secondary keel installation position and elevation deviation is large, the connecting piece is not installed in dislocation | 200 |
| 11 | &nbsp;&nbsp;The boom is not installed straight, warped or deformed | 100 |
| 12 | &nbsp;&nbsp;Over 1.5m boom with no reverse support set, over 3m without a transfer layer set | 500 |

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| 13 | &nbsp;&nbsp; Gypsum board installation, bolt stud distance deviation, uneven layout, spikes not done to prevent Rot treatment is smoothed directly with plaster putty | 100 |
| 14 | &nbsp;&nbsp;Cover panel seams and batten widths are not consistent and seams are not tight | 100 |
| 15 | &nbsp;&nbsp;The dust, dirt, spatter and mortar flow mark on the base is not cleared, the lack of edge less Angle is not repaired directly on the brush paint | 300 |
| 16 | &nbsp;&nbsp;Wood keels that have not been fireproofed prior to installation | 300 |
| 17 | &nbsp;&nbsp;The dust and dirt on the surface of the wood are not cleaned, the gaps, burrs and hatchings are not repaired, not filled with putty and polished with sandpaper | 300 |
| 18 | &nbsp;&nbsp;Dust, oil stains, scales, rust spots, welding slag, burrs, etc. on the surface of the metal surface have not been removed before coating | 300 |
| 19 | &nbsp;&nbsp;The base surface is painted when wet | 300 |

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| 20 | &nbsp;&nbsp;Before the construction, the matrix has dust, dirt, loose, powder, concave and convex, sand and cracks, Yin and Yang Angle is not square, after the construction of the bottom, color is different | 300 |  |
| 21 | &nbsp;&nbsp;Pasting patchwork seam seam surface is not in the dark or dead corner, there are seams in the Yang corner, not packed corner compacting | 300 |  |
| 22 | &nbsp;&nbsp; The construction of fine wood has the incorrect size, the surface is not straight and smooth, the Angle is not square, the line is not straight, the exposed nail cap, there is the absence of the peak, plane marks, burrs, hammer marks and so on caved | 300 |  |
| 23 | &nbsp;&nbsp;The Yang Angle is not used to find the square | 200 |  |
| 24 | &nbsp;&nbsp;Ceiling layout does not meet the symmetry design principle, the ceiling board corner area is less than 1/3 of the whole board | 300 |  |
| 25 | &nbsp;&nbsp;Mineral wool sound absorbing board and toilet aluminum plate ceiling on the tuyere, lamps, nozzle, speaker opening is incorrect | 300 |  |
| seven | &nbsp;&nbsp;**Roofing** |  |  |
| 1 | &nbsp;&nbsp;The process construction of each layer is not constructed according to the specifications of the drawings | 500 |  |
| 2 | &nbsp;&nbsp;Roof slope, flood gutter is not correct leakage | 300 |  |
| 3 | &nbsp;&nbsp;The roof details are rough, the protective layer, the anticorrosive layer process is poor, the length of the coil lap, the thickness of the ointment is not enough, the basic treatment is poor, the corner floor drain treatment does not meet the standard requirements | 200 | &nbsp;&nbsp; <br> Rework in severe cases |
| 4 | &nbsp;&nbsp;The downspout is not firmly installed and the workmanship is poor | 300 |  |
| 5 | &nbsp;&nbsp;Corner, floor drain treatment does not meet the standard requirements | 300 | Rework in severe cases |
| 6 | &nbsp;&nbsp;Waterproof roll and parapet wall, equipment foundation connection part without laminate | 500 |  |

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| eight | &nbsp;&nbsp;**Other Matters** |  |  |
| 1 | &nbsp;&nbsp;Concrete, mortar directly poured on the land, with overnight ash and initial concrete | 500 |  |
| 2 | &nbsp;&nbsp;Cutting corners in construction, using unqualified materials, not according to the process of construction, not according to the design specifications and standards of construction | 5000 ~ 10000 | In severe cases, the contract is terminated |
| 3 | &nbsp;&nbsp;After the completion of the project, it does not submit the acceptance data of materials or fill in the handover sheet of the process | 1000 | Serious cases will not be settled |
| 4 | &nbsp;&nbsp;Do not provide the inspection certificate and inspection report of the materials when they enter the field, or directly use the materials without applying for inspection | 1000 |  |
| 5 | &nbsp;&nbsp;If the inspected quality problems are not rectified in time, resulting in serious consequences, or refuse to rectify | 1000 ~ 5000 | In severe cases, the contract is terminated |
| 6 | &nbsp;&nbsp;Construction of the next working procedure without acceptance of concealed works | 5000 ~ 10000 |  |
| 7 | &nbsp;&nbsp;Do not attend the quality meeting without reason according to the project requirements | 100/ person |  |
| 8 | &nbsp;&nbsp;If the renderings of toilet, office and other areas are not provided for the owner's confirmation before the decoration construction | 1000 ~ 5000 |  |
| 9 | &nbsp;&nbsp;Failure to pay attention to the protection of finished products during construction, resulting in damage | 500 ~ 3000 | Compensation at the price for serious cases |
| 10 | &nbsp;&nbsp;The first confirmation system is not implemented as required by the company | 1000 |  |

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Schedule 2:

**Notice of Quality Improvement**

No:

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| &nbsp;&nbsp;&nbsp; <br> Business unit: | &nbsp;&nbsp;&nbsp; <br> Project Name: | &nbsp;&nbsp;&nbsp; <br> Project Manager: |
| &nbsp;&nbsp;&nbsp;Chief project engineer: | &nbsp;&nbsp;&nbsp;Construction unit (team): | &nbsp;&nbsp;&nbsp;Person in charge: |
| &nbsp;&nbsp;&nbsp;Contents of quality rectification: | &nbsp;&nbsp;&nbsp;Contents of quality rectification: | &nbsp;&nbsp;&nbsp;Contents of quality rectification: |
| &nbsp;&nbsp;&nbsp; <br> Rectification requirements and time limit:<br>The construction team should complete the rectification by the date of the month, or they may be fined.<br>Quality Supervisor/Principal Engineer (hand-signed): Responsible person of construction team (hand-signed): | &nbsp;&nbsp;&nbsp; <br> Rectification requirements and time limit:<br>The construction team should complete the rectification by the date of the month, or they may be fined.<br>Quality Supervisor/Principal Engineer (hand-signed): Responsible person of construction team (hand-signed): | &nbsp;&nbsp;&nbsp; <br> Rectification requirements and time limit:<br>The construction team should complete the rectification by the date of the month, or they may be fined.<br>Quality Supervisor/Principal Engineer (hand-signed): Responsible person of construction team (hand-signed): |
| &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; Implementation of the rectification (handwritten content):<br>The construction team has completed the rectification or on<br> The construction team is overdue and has not completed the rectification<br> Last requested completion date:<br>Quality Supervisor/Principal Engineer (hand signature): 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Implementation of the rectification (handwritten content):<br>The construction team has completed the rectification or on<br> The construction team is overdue and has not completed the rectification<br> Last requested completion date:<br>Quality Supervisor/Principal Engineer (hand signature): 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Implementation of the rectification (handwritten content):<br>The construction team has completed the rectification or on<br> The construction team is overdue and has not completed the rectification<br> Last requested completion date:<br>Quality Supervisor/Principal Engineer (hand signature): Date: |

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Schedule 3:

**Quality Penalty Notice**

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|:---|:---|:---|:---|
| &nbsp;&nbsp;Business unit: | &nbsp;&nbsp;Project Name: | &nbsp;&nbsp;Project Name: | &nbsp;&nbsp;Project Manager: |
| &nbsp;&nbsp;The unit to be penalized; | &nbsp;&nbsp;Amount of penalty: | &nbsp;&nbsp;Amount of penalty: | &nbsp;&nbsp;Quality person: |
| &nbsp;&nbsp; <br>Application for penalty event description: | &nbsp;&nbsp; <br>Application for penalty event description: | &nbsp;&nbsp; <br>Application for penalty event description: | &nbsp;&nbsp; <br>Application for penalty event description: |
| &nbsp;&nbsp;Punishment implementation situation: | &nbsp;&nbsp;Punishment implementation situation: | &nbsp;&nbsp;Punishment implementation situation: | &nbsp;&nbsp;Punishment implementation situation: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Applicant:<br>Year month day | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Applicant:<br>Year month day | &nbsp;&nbsp; Project (Quality Supervision Department) Manager:<br>Signature:<br>Year month day | &nbsp;&nbsp; Project (Quality Supervision Department) Manager:<br>Signature:<br>Year month day |

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**Annex 16 Confirmation of Wage Payment for Migrant Workers (Form)**

**To: China Electronic System Engineering No.4 Construction Co., LTD. (Party A)**

I hereby solemnly confirm to Party A that Party B is <u>in. All wages of migrant workers used in the second assembly process of the line item (Phase I) of integrated circuit</u> have been paid in full and timely without any dispute. If I practice fraud, all legal liabilities

I shall bear all the responsibility. If I fail to pay migrant workers in arrears, migrant workers stop work, block the project site or interfere with Party A and the project owner

I am willing to bear all responsibilities for the construction or business events, and all consequences and economic losses arising therefrom shall be borne by me. A

4. I can lower the internal evaluation level of the subcontractor (supplier) I represent. In serious cases, I will immediately withdraw from the company and never use it again.

Representative of Party B (signature + handprint):

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Party B (seal): Jiangsu Huhu Electromechanical Technology Co., LTD

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**Annex 17: Subcontractor's Letter of good Faith Undertaking**

In view of the fact that Party A and Party B have signed the project contract, Party B undertakes to establish a long-term close cooperation and guarantee the legal interests of both parties

They agree as follows:

1. Declaration and examination of engineering changes and settlement;

The following acts of Party B shall be deemed as intentionally and maliciously exaggerating or falsely reporting project changes and settlement, in violation of the principle of good faith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Providing false information, including false supply contract, false invoice, etc., in the declaration of project change and settlement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Project change account reduction, not timely (only submit the draft settlement) or not realistic declaration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 For material/equipment brand replacement, if the grade of the material/equipment brand actually constructed is reduced, Party B does not carry out the construction according to the actual situation

If the grade declaration and price difference deduction are calculated, the declaration and settlement are still made according to the original high-grade brand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Seriously violate the definition of engineering change and claim conditions in the contract, failing to provide the contract basis for the change and claim declaration;

The calculation of engineering quantity obviously does not conform to the calculation rules of engineering quantity and does not follow the calculation principle of change (deduction of original design and addition of changes)

Design) calculation, the engineering quantity calculation formula provided is deliberately wrong, does not meet the basic professional requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 obviously and the nature of the project in the bill of quantities, construction environment exactly the same work, do not count in the bill of quantities price

Is calculated, and there is no reasonable explanation;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 If the work is obviously similar to the nature and construction environment of the project in the bill of quantities, the price in the bill of quantities shall not be calculated.

And there is no reasonable explanation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 Work that is different from or not similar to the nature and construction environment of the project in the Bill of Quantities, and seriously deviates from the bill of Quantities

Conversion price based on the price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.9 If the unit price of a new project is completely different from the items in the bill of Quantities, it seriously deviates from the reasonable market price, refuses to provide the comprehensive unit price analysis table which should be provided by Party B according to the contract requirements, or the composition of the direct engineering cost in the comprehensive unit price analysis table provided is seriously unreasonable, including the consumption of labor, materials and machinery is seriously inconsistent with the actual situation, people The unit price of labor, materials and machinery is seriously not in line with the market unit price, and can not provide invoices and other proof.

If Party B still believes that there may be any ambiguity in understanding of anything other than the above terms, it shall put it in writing when reporting project changes and settlement

Make an explanation.

Ii. Party B undertakes to unconditionally accept the following penalties imposed on Party B by Party A for the acts mentioned in Article 1 and 1 above:

1. For Article 1 and 1.1 above, once found out, Party B shall be directly punished and fined 50% of the amount of false information such as false invoice and false contract amount.

As for Article 1 and 1.2 above, if Party B fails to declare the settlement draft when it is submitted, Party A shall directly punish Party B once found out

The penalty shall be 20% of the amount not declared.

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For Article 1 and 1.3 above, once found to be directly punished, the fine shall be 50% of the reasonable price difference of brand grade.

As for the above Articles 1, 1.4 to 1, 1.9, the parties may communicate with each other due to their different understandings of the contract, and the third party agreed herein shall make interpretation and clarification according to the contract. Party B shall make rectification immediately according to the opinions of the third party, failing which, Party A shall send a written notice. Upon receipt of this notice, Party B shall immediately rectify and resubmit. If Party B still submits the notice

If Party B neglects or responds slowly (no reply within 3 months), Party B will be fined RMB 20,000 Yuan per time by Party A.

5. The project, cost and business management personnel hired by Party B for the project must be professionals with relevant qualifications and experience, and have good professional quality and professional ethics. Party B shall set up strict internal quality control for the declaration of project changes and settlement

Procedure. If a breach of the above is caused by the obvious negligence of Party B's employees, such Party B is still deemed to have acted in bad faith.

The evaluation of Party B's honest behavior is an important basis for Party A's assessment and evaluation of Party B. In case of repeated dishonest behavior, it will be possible

The opportunity to cooperate with Party A will be lost forever.

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**Annex 18: Anti-Commercial Bribery Agreement**

**Party A: China Electronic System Engineering No. 4 Construction Co., LTD**

**Party B: Jiangsu Huhu Electromechanical Technology Co., LTD**

Commercial bribery will seriously damage the interests and business cooperation between Party A and Party B. In order to restrain the improper acts of Party A and Party B and their business handlers, stop the acts of commercial bribery, and safeguard the legitimate rights and interests of both parties, the following anti-commercial bribery agreement is reached through negotiation

3. Both parties must abide by and perform this agreement as an appendix to the sales contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party B must be a manufacturer/sales company/construction enterprise established according to law. Party B shall fully cooperate with Party A's supplier audit work and provide relevant legal qualifications and documents without resorting to fraud.

Party B shall not carry out business until it obtains the qualification of qualified supplier from Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. The goods sold by Party B to Party A must be qualified products and conform to the provisions of this Contract

Party B shall supply Party A with fake and inferior products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall not, in its business dealings with Party A, provide any form of commercial bribery to Party A's staff: for example, providing but not limited to cash to Party A's management personnel or business handling personnel,

Negotiable securities, valuable gifts, travel and other personal benefit assistance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Legal person, management or business handling personnel of Party B, if related to Party A's business handling personnel

If Party B has close relations with friends or relatives, it must truthfully inform Party A in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party B must actively cooperate with Party A's internal audit work, including but not limited to

Party B shall not refuse to confirm, provide false testimony or disclose the audit information to Party A's relevant personnel

2. Keep the transaction documents with Party A within two years for audit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Party A's personnel shall not accept any form of commercial bribery from Party B for personal gain, and

Party A shall not ask for bribes from Party B's relevant personnel.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Party A's personnel shall maintain an open, fair, just and honest attitude towards Party B under any circumstances

Party B shall not use his position as an excuse to make things difficult.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viii. If necessary for business purposes, Party A's personnel shall obtain the approval of the company's leaders before taking part in Party B's election

Party A shall not accept valuable securities, valuable gifts or other gifts for meetings, activities or social activities held by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. If Party B breaches this Agreement, Party A shall have the right to immediately terminate all business cooperation with Party B and suspend payment of all accounts payable to Party B. Party B shall pay 10 times the amount of cash or marketable securities provided to Party A as liquidated damages. If Party A suffers losses as a result, Party A shall have the right to recover compensation from Party B in accordance with the sales contract and prohibit Party B from entering Party A's company after Party B violates this Agreement

Conduct business. Those suspected of committing crimes shall be transferred to judicial organs and investigated for criminal responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;X. If Party A's employees violate this Agreement, Party B shall report to Party A's supervisory department by telephone:

**0311-66033531 and cooperate with Party A to find out the facts.** Those suspected of committing crimes shall be transferred to judicial organs for punishment

Responsibility for matters.

Faxed copies are valid.

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**19 Agreement on Security Protection enclosed**

This Agreement is signed by the following parties:

**Party A: China Electronic System Engineering No.4 Construction Co., LTD**

**Party B; Jiangsu Huhu Electromechanical Technology Co., LTD**

Party A and Party B hereby enter into an agreement through friendly negotiation for the purpose of consultation and cooperation concerning the purchase of products or services, and to protect the relevant technology, operation and business confidential information and relevant rights and interests of either party involved in the process

This Confidentiality Agreement (hereinafter referred to as the "Agreement") is to be observed by both parties:

The disclosing party is the "Disclosing Party" and the receiving party is the "Receiving Party".

**I. Purpose and Scope of Use of the Confidential Information:**

Party A and Party B require one party to disclose certain proprietary, secret or confidential information to the other party for the purpose of consultation and cooperation concerning the purchase of products or services. The Receiving Party shall try its best to keep confidential the relevant technology, operation and business information obtained by either party from the other party for the purpose and in the course of the above. The Confidential Information shall be used only between Party A and the other Party for the purpose mentioned above

Use, in addition, the recipient;Shall not be used for any other purpose without the written permission of the disclosing party.

**Ii. Definition of Confidential Information:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Confidential Information: For purposes of this Agreement, "Confidential Information" means any proprietary, secret or non-public information disclosed by one Party to the other party prior to or after the execution of this Agreement, or the technology, operations, or services of the other party known to or held by one party as a result of consultation or cooperation with the other party.

Business or other information, data or data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Confidential information includes but is not limited to either party's trade secrets, business secrets, technology-related knowledge and information, ideas, ideas, schemes, supplies or manufacturer information, customer information, personnel information, business plans, promotional and marketing activities, financial conditions and other business activities. The forms and carriers in which the Confidential Information is presented include, but not limited to, written or oral, documents, disks, disks, compact discs, e-mails, electromagnetic records, reports, written exchanges, audio tapes, video tapes, notes, drawings, models, specifications,

Assembly files, computer programs and other media.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Exclusions: Information shall not be deemed confidential if the recipient is able to determine that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Information already in the receiving Party's possession before it becomes known to the Disclosing Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information has become known to the public not due to the receiving Party's violation of the provisions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Information obtained or known by the receiving party in a lawful manner from another third party who has the right to provide or disclose the information;or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The information is provided by: recipient;Independently obtained or developed without use or reference to any confidential information, and the recipient can demonstrate its independence

Develop.

**3. Obligations and Limitations**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The Parties understand and undertake that the Confidential information provided or disclosed by either party or the Confidential information of the other party known to or kept by either party as a result of their joint cooperation shall be used only for the mutual purpose set forth in Article 1 of this Agreement. Except with the prior written consent of the Disclosing party, the receiving party shall not, directly or indirectly, arrange, modify, utilize, apply, develop or otherwise use the Confidential Information for any other purpose or purpose. For whatever reason, the Receiving Party shall not reverse engineer, decode or decompose the Confidential Information;**Disclosing Party I's prototype,**

Software, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2. The Receiving Party shall only provide the Confidential Information to the Receiving Party's officers, employees and professional consultants who are necessary to know the information for the common purpose and shall not disclose the Confidential Information to other persons or organizations; **The Receiving Party shall ensure that the above-mentioned staff, employees and consultants also comply with the confidentiality obligations set forth in this Agreement. Any breach of this Agreement by any of the above-mentioned personnel shall be deemed as a breach by the Receiving Party**

The breaching party shall indemnify the non-breaching party for the damage and loss of interests incurred therefrom.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3. The Parties agree that they shall keep the Confidential information of the other party to the same standard and degree as the proprietary, confidential and confidential information of each party.

And shall carefully store and handle the Confidential Information to prevent disclosure of such information without the permission of disclosing Party i.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. In case of any breach or potential breach of this Agreement, the Receiving Party shall immediately notify the Disclosing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5. Except as otherwise provided herein, any negotiation, discussion or negotiation, any proposed arrangement or agreement, any business or operation plan under negotiation or negotiation, or any other information related to the aforesaid negotiation, discussion, negotiation, arrangement or agreement shall be deemed confidential. And its confidentiality shall be maintained in accordance with the provisions of this Agreement. Without the written consent of the other party, neither Party shall provide or disclose the Confidential Information, directly or indirectly, to the media, the public or any other party

Any other third party.

**Iv. Ownership and Return of Confidential Information:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1. The Receiving Party acknowledges that the Confidential Information of the Disclosing Party has always been the asset of the Disclosing Party, and the disclosure of such Confidential Information shall not be deemed to be disclosure**

**Party i has granted the rights to the Confidential Information to the Receiving Party.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. Disclosing Party i may, at any time, request in writing to retrieve the Confidential Written Information disclosed under the terms of this Agreement and all copies thereof, and request a written assurance from the other party that the Confidential Information is not, directly or indirectly, knowingly in possession of or under control of the Confidential Information at the time of its return

And a copy of it. **The receiving party) shall return the information immediately within seven (7) days of receipt of the request.**

**5. Declaration:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. The Disclosing Party warrants that the Confidential Information provided does not violate any agreement reached with a third party or infringe on the rights of a third party, no

The said party shall compensate the receiving party for \| a third party based on the above reason to claim any loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. Unless otherwise specifically agreed in writing, the said party;With respect to the value, accuracy and marketability of the Information disclosed in accordance with this Agreement

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And makes no warranty whatsoever. All confidential information will be disclosed on an "as is" basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. Nothing in this Agreement shall be construed to compel a Party to disclose any particular Confidential information to the other Party, nor shall it be construed

Any obligation or expectation is created on either party to enter into a business relationship with the other party.

**Vi. Amendments**

Any amendment, interpretation or waiver of any provision of the Articles of Association of this Agreement shall be executed in writing by authorized representatives of the parties hereto

This Agreement shall not come into force until agreed upon.

**Vii. Implementation**

No delay by either party in the execution of any right, power or privilege under this Agreement shall constitute a waiver. No waiver by either party of any or all right or power in respect of any matter shall preclude future use of such right or power or other similar right or power in respect of any other matter.5. The Parties are fully aware that a breach of any provision of this Agreement will result in material adverse consequences for both parties, and that the loss caused by such breach may be difficult to estimate.8. Therefore, the parties agree that the only recourse can be made in accordance with this Agreement

11. In addition to seeking relief, any other relief (e.g. application to the court for compulsory sanction) may be sought under the law.

**Viii. Title**

Paragraph headings are for convenience only and shall not affect the meaning or content structure of this Agreement.

**9. The integrity of this Agreement**

This Agreement shall constitute the entire agreement between the Parties with respect to the subject matter hereof and supersede all previous agreements between the Parties with respect to the subject matter hereof

Agreements made in person or orally.

**10. Non-transferable**

The recipient shall not assign or assign this Agreement, in part or in whole, or any of its rights or obligations hereunder, to any third party without the prior written consent of the Disclosing Party. **Receiving Party 1 Any unauthorized assignment or stated assignment shall be void and entitle the Disclosing Party to immediately**

2 Unilaterally terminate this Agreement.

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All notices, demands or other communications made pursuant to this Agreement shall be given in writing. Such documents shall be sent to the address set forth in this Agreement, or to such other address as may be designated by a party on notice. Any written communication between the parties shall be deemed to have been received: (a) when delivered by carrier or by mail or electronic copy (fax), or (b) three days after delivery by registered mail for return receipt, prepaid postage

Later, or (c) when it is actually received by any other means.

**Xii. Duplicate Agreement**

This Agreement may be executed separately in counterparts, all of which shall constitute one agreement.

**Xiii. Separability**

If one or more payments contained in this Agreement are deemed invalid, illegal or unenforceable for any reason, such payment shall be invalid or

illegal Or unenforceable provisions shall not affect the other provisions of this Agreement. Such invalid, illegal or unenforceable provisions shall be deemed to be unenforceable

This agreement shall, to the extent possible, be executed in accordance with the original terms.

**14. Governing Laws**

This Agreement and the relationship between the parties with respect to the subject matter hereof shall be governed by and construed in accordance with the laws of the People's Republic of China;

The Parties also agree that any dispute or dispute shall be submitted to the Shijiazhuang Arbitration Commission for arbitration.

**15. Term of Validity**

This Agreement shall take effect from the date of signing the contract and remain in force for five years. However, the termination of this Agreement shall not terminate the obligation of confidentiality hereunder. The terms of this Agreement shall remain for a period of five years from the date of expiration or termination of the Confidential Information] disclosed prior to the expiration or termination of this Agreement

In effect.

**This agreement is signed in Shijiazhuang, Hebei Province.**

**(There is no text of this agreement below)**

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**Annex 20 Project Warranty Agreement**

**Party A: China Electronic System Engineering No. 4 Construction Co., LTD**

**Party B: Jiangsu Huhu Electromechanical Technology Co., LTD**

In order to ensure <u>the normal use of the secondary installation machine of the Integrated Circuit Demonstration Line Project (Phase I)</u> within the reasonable use period, Party A and Party B, in accordance with the Construction Law of the People's Republic of China and the Regulations on Quality Management of Construction Projects, reach an agreement through consultation and sign the project quality shortage

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Contract the warranty. Party B shall be responsible for the warranty of project quality defects during the warranty period in accordance with relevant provisions and the agreement between the parties.

I. Scope of warranty for Project Quality defects

The warranty for quality defects shall cover all construction projects under Party B's responsibility hereunder, as well as any additional warranty in the subsequent alteration of the project

Work content and other projects agreed by both parties.

Ii. Warranty Period for project quality defects

The warranty period for quality defects shall count from the date of the actual completion of the project. If the project is completed for acceptance of a single item, the quality deficiency shall be calculated separately on the basis of the individual item The

warranty period shall be suspended.

The parties agree that the warranty period for quality defects of the project is as follows;

☐ The foundation project and the main structure project shall be the reasonable service life stipulated in the design document;

☐ <u>5</u> years for roof waterproof works, toilets/rooms with waterproof requirements and anti-leakage works for external walls;

☐ Electrical pipeline engineering, water supply and drainage pipeline engineering, equipment installation engineering for <u>2</u> years;

☐ The heating and cooling system engineering has two heating periods and <u>two</u> cooling periods;

☐ Process pipeline engineering for <u>2</u> years;

☐ <u>2</u> years for decoration engineering;

☐ Warranty period for other items: <u>None</u>.

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Iii. Warranty responsibility for project quality defects

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Within the warranty period, Party B shall send personnel to repair the project within 7 days after receiving the warranty notice. Party B

Party A may entrust other personnel to do the repair if it does not send someone to do the repair within the agreed time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In case of an emergency repair accident, Party B shall immediately arrive at the accident site for emergency repair upon receiving the notice of the accident.

Iv. Cost of warranty for project quality defects

Party B shall bear the cost of warranty for project quality defects and the related liability for damages. Party B shall separately compensate for the insufficient quality guarantee fund.

V. Warranty fee for project quality defects

Party A and Party B agree that the project quality warranty fee shall be <u>3%</u> of the settlement price, and the bank interest rate of the quality defect warranty fee shall be: guarantee

<u>The repair fee is not subject to interest.</u>

Vi. Payment of warranty fee for project quality defects

Within 14 days after the expiration of the liability for project defects stipulated in the Contract and completion of the project certificate, Party A shall be short of the remaining quality of the project

Party A shall pay the warranty fee and interest to Party B, but shall not exempt Party B from the warranty responsibility during the warranty period.

Vii. Miscellaneous

Other warranty items for project quality defects agreed by Party A and Party B:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Definition of Responsibilities:

Party A's project engineer shall define the person responsible for the problem.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Under the following three circumstances, Party A may appoint the unit to carry out the warranty, and the repair amount shall be deducted from the original warranty fee of Party B. bearing

The contractor shall have no objection to this.

1) If Party B fails to deal with the matter in time (Party A shall enter the site for construction within 7 days after sending a written notice);

2) or the treatment effect of Party B fails to meet Party A's requirements for a long time (Party B has repaired it twice, but still fails to meet Party A's requirements);

3) or Party B intends to replace maintenance with economic compensation (warranty deduction).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the project runs normally, Party B shall submit an application for acceptance of warranty to Party A's Engineering department within 14 days prior to the expiration of the warranty period

The Engineering department shall organize the acceptance and issue the Engineering Warranty Certificate after the project is qualified. If Party B fails to do so within the time limit, Party A has the right to impose appropriate fines.

This Project Quality Defect Guarantee shall be signed by both Party A and Party B as an attachment to the Contract.

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**Annex 21 Description of the Fixed Total Price Contract and Fixed Unit Price Contract mode**

I. Items of the Contract:

In order to clarify the basic origin of the total price contract and fixed unit price contract mode of China Electronic System Engineering Fourth Construction Co., LTD

This standard is formulated to interpret and guide project bidding, bid evaluation, project cost and project settlement.

Ii. Scope of Application:

This standard is applicable to the interpretation of engineering contracts contracted by China Electronic System Engineering No. 4 Construction Co., LTD.

Iii. Model and Explanation of Fixed Total Price Contract:

**Definition: According to the terms of the contract, the total contract price shall be fixed for the work within the scope of the project stipulated in the contract documents**

The contract mode of addition or subtraction caused by the engineering changes ordered by Party A is called the fixed total price contract.

**2. Fixed lump sum contract: It is a lump sum contract based on the contract, contract drawings, tender documents and technical specifications.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The total price contract shall be based on the terms of the contract, contract drawings (calibration drawings), quantity specifications (including technical specifications and commercial specifications), and the scope and content of work (including equipment grade and material grade) stipulated in the rules for calculation of engineering quantity. In such lump sum contract, the bidder shall bear the risk of errors in calculating the quantity according to the drawings, as well as the uncertainties

Or the risk of unforeseeable factors in the unit price. Therefore, the contract unit price is also fixed.

**3. The main functions of the quantity in the bill of quantities are:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 In the project bid and bid evaluation when the total price of each single offer is reasonable, the quantity and unit price of each single offer is

Is it reasonable to control the risk of tender and bid evaluation?The bidding drawings should be deepened to a certain extent, and the list of quantities and materials can be used Can be consistent with the requirements of the drawing, no large multiple items or multiple quantities, and no large missing items and missing items;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 As the reference basis for progress payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 The unit price in the bill of quantities shall be the reference basis for the calculation of the change unit price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Party B shall bear the risk of completeness and accuracy of the project reported in the Bill of Quantities, and the total contract price shall remain unchanged.

The quantity shall be checked and accepted according to the quantity described in the as-built drawings, tender documents and technical specifications, and the quantity shall be cleared

The quantity and items in the list are for reference only.

The scope of the project of the fixed total price contract refers to all the projects designed, supplied, installed and maintained in accordance with the design intention of the drawings and specifications of materials and other provisions of the contract documents, regardless of whether the unit price of supply, unit price of installation, comprehensive unit price and total amount are filled in the quantity list

On the unit price or price.

If the bidding is based on drawings and technical specifications, all quantity additions or decreases shall be calculated in accordance with the principle of changing the drawings and subtracting the contract drawings. Therefore, all quantities (except those specified by Party A) are for reference and have nothing to do with the actual construction or not, and there is no need to adjust at settlement. The acceptance shall be compared with the contract drawings and modified drawings and the actual content on the site.

That is to check whether it is completed in accordance with the drawings and whether it meets the requirements of the contract

Project settlement: Whether it is calculated and provided by Party A or calculated by Party B, whether it is overstated quantities, overstated projects, missed quantities or missed projects, it shall be in the order of drawings and bidding documents and subject to the project and quantity required in the contract drawings. All of the settlement shall be undertaken by Party B. At the time of completion acceptance, acceptance shall be carried out according to the contract documents, contract drawings and change instructions in order to meet the requirements of use

In the case of and function, the settlement price shall be equal to the contract price plus or minus the change price.

Iv. Fixed Unit Price Contract Model and Explanation Overview:

1. Fixed unit price contract: The contract is based on unit price. The unit price shall be in accordance with the contract terms, contract drawings, specifications of quantity and materials (including technology)

Specifications and business specifications), rules for calculating quantities, bill of quantities, etc., to determine the unit price. Fixed unit price is composed of fixed material unit price and fixed installation unit price;The fixed unit price of materials and equipment supplied by A is the fixed unit price of installation;The fixed unit price of materials and equipment supplied by Party A is the sum of the unit price of fixed materials and the unit price of fixed installation. The fixed unit price includes but is not limited to labor costs and equipment Costs, materials costs, measures costs, management fees, profits, taxes and all risks and liabilities contained in the contract.

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2. Function of bill of quantities: bill of quantities, if there are mistakes and omissions, should be corrected, more deduction and less compensation, as a project change processing. In this contract mode, the quantity of the bill of quantities described in the contract drawings and technical specifications differs from that described in the as-built drawings

This adjustment shall be made in the settlement, that is, the final settlement shall be as per the quantity of as-built drawings.

**3 The fixed unit price adjustment provisions:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 The unit price in the contract shall not be determined by: The difference of construction site, the change of construction difficulty, the change of construction period, the change of market material equipment price, the change of market labor cost, the change of rush work requirements, the change of government red head documents, the change of industry association charges, the change of tax regulations, the change of weather, the change of the environment, war, riot, riot, etc All factors change the price of the contract. Whether such a change can be anticipated in advance or not, the industry said that Party A and

The force majeure of Party B shall not be the reason for adjusting the fixed unit price of the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 The non-contract unit price shall be decided by Party A and Party B through negotiation. The non-contract items include two types. The first is completely added items not included in the original bidding. The unit price of such items shall be determined by Party A and Party B by referring to similar items in the original contract. Second, as required by Party A's instructions, the grade of materials and equipment, brand and construction content are changed, resulting in changes in the contents of the unit price of the new construction project and the contract bidding. The unit price of this kind of project is only adjusted for the changed part.

Other arrangements remain unchanged. If the main material is adjusted for an installation project, the installation fee cannot be adjusted, only the supply price of the main material can be adjusted.

V. Interpretation of the final settlement of the Fixed Total Price Contract

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**1. In the case of contract drawings and technical specifications, settlement and quantity acceptance shall be considered according to specific circumstances:**

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| Bidding requirements | Quotation from Party B | Yes or no construction on site | Whether CLP IV has issued a change instruction | Verify receipt on site | Whether the settlement is deducted | Whether the quantity is contracted or not |
| <br>1. If there are required items in the bidding documents | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp; <br> Have change orders | &nbsp;&nbsp; <br> Construction | &nbsp;&nbsp;If the change does not conform to the contract drawing, add the change together and calculate according to the new drawing (compare the contract drawing with the changed drawing) | &nbsp;&nbsp; <br>If the quantity of the list and the items are not related, the method on the left side shall be implemented |
| <br>1. If there are required items in the bidding documents | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp;No change instruction | &nbsp;&nbsp;Construction | &nbsp;&nbsp;The total contract price is fixed without adjustment. | &nbsp;&nbsp; <br>If the quantity of the list and the items are not related, the method on the left side shall be implemented |
| <br>1. If there are required items in the bidding documents | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Not under construction | &nbsp;&nbsp; <br> With a change order | &nbsp;&nbsp; <br> No construction | &nbsp;&nbsp;Calculate according to the new drawing (compare the contract drawing with the changed drawing) and the contract unit price (including the suggested unit price), deduct the change price | &nbsp;&nbsp; <br>If the quantity of the list and the items are not related, the method on the left side shall be implemented |
| <br>1. If there are required items in the bidding documents | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Not under construction | &nbsp;&nbsp; <br>No change instructions | &nbsp;&nbsp; <br>No construction | &nbsp;&nbsp;Give priority to rectification, otherwise the higher price will be deducted after calculation based on the drawing (comparison between the contract drawing and the modified drawing paper) and the contract unit price (including the suggested unit price) | &nbsp;&nbsp; <br>If the quantity of the list and the items are not related, the method on the left side shall be implemented |

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| 2. If there is no required item in the bidding document (from the function and demand)<br> Say completely unnecessary items) | <br> Party B<br> Have a report<br> price | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp; <br> Have change orders | &nbsp;&nbsp; <br> Construction | &nbsp;&nbsp;Add the change price after calculating the new drawing (comparing the contract drawing with the changed drawing) and the contract unit price (including the suggested unit price) | &nbsp;&nbsp;It is not related to the quantity of the bill of quantities and the project, and shall be implemented according to the method on the left |
| 2. If there is no required item in the bidding document (from the function and demand)<br> Say completely unnecessary items) | <br> Party B<br> Have a report<br> price | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp;No change instruction | &nbsp;&nbsp;Construction | &nbsp;&nbsp;The total contract price is fixed without adjustment | &nbsp;&nbsp;It is not related to the quantity of the bill of quantities and the project, and shall be implemented according to the method on the left |
| 2. If there is no required item in the bidding document (from the function and demand)<br> Say completely unnecessary items) | <br> Party B<br> Have a report<br> price | &nbsp;&nbsp;Not under construction | &nbsp;&nbsp;With and without change orders | &nbsp;&nbsp;No construction | &nbsp;&nbsp;The total contract price is not subject to adjustment | &nbsp;&nbsp;It is not related to the quantity of the bill of quantities and the project, and shall be implemented according to the method on the left |
| <br>3. If there is no required project in the bidding drawings (but from the function and requirements and regulations<br> In the case of an essential project) | <br>Party B has an offer but no offer | &nbsp;&nbsp;Construction | &nbsp;&nbsp;Have change orders | &nbsp;&nbsp;Construction | &nbsp;&nbsp;The total contract price includes the increase or decrease of the change price | &nbsp;&nbsp; <br>The quantity of the list and the items are unrelated, and the method on the left is implemented |
| <br>3. If there is no required project in the bidding drawings (but from the function and requirements and regulations<br> In the case of an essential project) | <br>Party B has an offer but no offer | &nbsp;&nbsp;Construction | &nbsp;&nbsp;No change instruction | &nbsp;&nbsp;Construction | &nbsp;&nbsp;The total contract price is fixed without adjustment | &nbsp;&nbsp; <br>The quantity of the list and the items are unrelated, and the method on the left is implemented |
| <br>3. If there is no required project in the bidding drawings (but from the function and requirements and regulations<br> In the case of an essential project) | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Not under construction | &nbsp;&nbsp; <br>With a change order | &nbsp;&nbsp; <br>No construction | &nbsp;&nbsp;Give priority to rectification, otherwise calculate according to the new drawing (compare the contract drawing with the changed drawing) and deduct the change price after calculating the contract unit price (including the suggested unit price) | &nbsp;&nbsp; <br>The quantity of the list and the items are unrelated, and the method on the left is implemented |
| <br>3. If there is no required project in the bidding drawings (but from the function and requirements and regulations<br> In the case of an essential project) | <br>Party B has an offer but no offer | &nbsp;&nbsp; <br>Not under construction | &nbsp;&nbsp; <br>No change order | &nbsp;&nbsp; <br>No construction | &nbsp;&nbsp;Give priority to rectification, otherwise the higher price will be deducted after calculation based on the drawing (comparison between the contract drawing and the modified drawing paper) and the contract unit price (including the suggested unit price) | &nbsp;&nbsp; <br>The quantity of the list and the items are unrelated, and the method on the left is implemented |
| 4. If there is no required project in the bidding drawing (but it is necessary to reoptimize or improve the project from the perspective of function, requirement and norm) | <br> Party B has a quotation, but no quotation | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp; <br> Have change orders | &nbsp;&nbsp; <br> Construction | &nbsp;&nbsp;Calculate the increase or decrease of the change price according to the new drawing (compare the contract drawing with the change drawing) and the contract unit price (including the suggested unit price) | &nbsp;&nbsp;The quantity of the list and the items are unrelated, so the method on the left side shall be implemented |
| 4. If there is no required project in the bidding drawing (but it is necessary to reoptimize or improve the project from the perspective of function, requirement and norm) | <br> Party B has a quotation, but no quotation | &nbsp;&nbsp; <br>Construction | &nbsp;&nbsp;No change instruction | &nbsp;&nbsp;Construction | &nbsp;&nbsp;The total contract price is fixed without adjustment | &nbsp;&nbsp;The quantity of the list and the items are unrelated, so the method on the left side shall be implemented |
| 4. If there is no required project in the bidding drawing (but it is necessary to reoptimize or improve the project from the perspective of function, requirement and norm) | <br> Party B has a quotation, but no quotation | &nbsp;&nbsp;Not under construction | &nbsp;&nbsp;With and without change orders | &nbsp;&nbsp;No construction | &nbsp;&nbsp;The total contract price is not subject to adjustment | &nbsp;&nbsp;The quantity of the list and the items are unrelated, so the method on the left side shall be implemented |

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**2. Specific cases of total contract price (contract drawings and technical specifications)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The contract drawings require 5 card readers and the bill of quantities is 10 (0). The actual construction needs to construct 5 cards according to the drawings.

No deduction (increase) is made for the settlement of more (less) list.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 If only 4 are constructed, it shall be deemed that the construction has not been carried out according to the drawing and the cost of one shall be required to be rectified or deducted.

If 6 units are actually constructed, Party A may increase the cost of 1 unit with the change instruction and visa issued by Party A. If there is no change

Additional requirements, Party A's instructions and necessary signing procedures shall not increase the cost. If Party A fails to issue an order, Party B may

No construction; If construction is carried out without authorization, the expenses shall be borne by oneself.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 If Party A's change instruction adds 1 piece during the construction process, no matter the quantity list is 10 pieces or 0 pieces, the settlement shall be made 5 plus 1 shall be used for settlement. That is, increase the price of 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 If the instruction in the project is to cancel the card reader (that is, there is no card reader on the final drawing of settlement), then at the settlement, the cost of 5 can only be deducted according to the calculation method of construction (completed) drawing minus contract drawing (when the bill of quantities is 10, the extra 5 will not be deducted;When the bill of quantities is 0, the unit price of the contract is still required (if there is a contract unit price).

Or reasonable market price (when there is no contract unit price) minus the quantity of 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 If the project does not receive Party A's instruction to cancel the card reader, but the card reader is not constructed in the end. Then the reasons need to be found:

2.6.1 If the construction is not carried out according to the drawings, it is required to rectify or deduct the cost of 5 pieces;Or compensate Party A for arranging another one

The direct loss caused by the construction of the unit.

2.6.2 If the construction cannot be carried out according to the actual situation of the site and the reason is that Party A forgets to give an order, Party A shall be required to issue a supplementary order. At the time of settlement, the cost of 5 drawings shall be deducted according to the calculation method of subtracting contract drawings from construction (completed) drawings (if 10 are listed in the bill of quantities, the extra 5 shall not be deducted. When the bill of quantities is 0, it still needs to be in accordance with the contract unit price (with contract unit price) or reasonable market price (without contract) When unit price) deduct the quantity of 5).

2.6.3 If the drawings are wrong, the construction cannot be carried out according to the site conditions, and Party B fails to notify Party A before the construction, the final result shall be

If there is no construction, no matter whether the card reader has been purchased or not, the cost of 5 card readers shall be deducted, all of them The loss shall be borne by Party B. When the quantity list is 10, the extra 5 will not be deducted;When the works

When the quantity list is 0 units, the contract unit price (where there is a contract unit price) or the reasonable market price is still required

(When there is no contract unit price) the quantity of 5 units shall be deducted.)

2.6.4 If there is a mistake in bidding and the work scope of several units is repeated, the construction has been carried out by another unit according to the site conditions.

Party B is unable to carry out the construction, Party B fails to notify Party A in advance of the construction and does not carry out the construction, if no Regardless of whether the card reader has been purchased and entered, the cost of 5 card readers shall be deducted in settlement, and all losses shall be borne by Party B

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At Party B's own expense.5. If Party B notifies Party A prior to the construction, the fee of 5 units shall be deducted. (when the bill of quantities

When the top is 10, there is no deduction for the extra 5;When the bill of quantities is 0, it is still necessary to deduct 5 quantities according to the same unit price (with contract unit price) or reasonable market price (without contract unit price). If the matter is not foreseen by an experienced Party B in advance and has been proved by written evidence Party A shall be responsible for the irrevocable expenses incurred by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 If the bidding documents require card readers, but do not specify quantity requirements, only say that the requirements are met. Party B offers 6 cards, but 5 cards can meet the requirements in actual construction, and Party A cannot deduct the payment. If 7 are needed to meet the requirements in actual construction, Party A will not increase the cost. Such problems are at the risk of Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 If Party B does not have a card reader in the deepened drawings, it shall not matter whether Party A or the architect has approved the deepened drawings

According to the bidding requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.1 If a card reader is included in the contract drawing and the final construction drawing also requires a card reader, Party B shall be required to make corrections or deduct the cost of the quantity on the tender drawing;If Party B fails to carry out construction in accordance with the requirements of the contract, it shall compensate Party A for the arrangement Direct losses caused by Party B's construction by another Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.2 If a card reader is included in the contract drawings and the final construction drawings do not require one, Party A shall be required no matter how much is reported by Party B

The deduction shall still be made in accordance with the quantity of the contract drawings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.3 If there is no requirement for card readers in the contract drawings and the final construction drawings do not require card readers, Party B shall clear the contract

No matter how many card readers are included in the list, they will not be deducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8.4 In summary, the number of card readers added or subtracted is based on 5 (bid drawing) instead of 10. There is no

In any case, Party B's own deepening of the drawings will not be part of the contract, that is, will not be used as a basis for changes and settlement. The enhanced drawings shall become construction drawings only and only as part of this Contract if they are issued in the form of a change order (Party A's order) and signed by an authorized representative through the project management procedure. At the same time

Shall be used as the basis for change and settlement.

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Vi. Priority:

This document is only for reference of Party B's bidding, construction, acceptance, settlement and other work. If there is any inconsistency or contradiction between the document and the project contract,

The Project contract shall prevail.

This document, as an integral part of the contract, has the same legal efficiency as the contract.8. Party B has fully understood and accepted the terms described in this document Close the requirements.

**Attached 22 clear the document**

(1) The manufacturer shall be equipped with a full amount of CO2 fire extinguisher and warning cone;Only aluminum alloy scaffolding is allowed to be used, while the ground is protected by PP plate; The cleaning of the responsible construction area shall be cleaned up immediately after the completion of construction;Each construction area shall be equipped with a special vacuum cleaner for clean rooms; Printers shall be provided for a fee;Office space for a fee;Safety supplies and clean clothing for a fee. The printing fee for each package is based on the printer item 8. The settlement amount shall be shared equally by each party according to the output value.

(2) The amount covered by the accident insurance shall not be less than 1.3 million yuan, and the expenses shall be borne by Party B and shall not be quoted separately.

(3) Construction utilities shall be shared by the subcontractor according to the output value.

(4) The unit price contract does not guarantee settlement of the contract amount

(5) The bidding terms of CLP IV are in conflict with the bidding terms of the owner, which is mainly the owner's bidding terms.(including calculation rules and inspection Acceptance criteria, etc.)

(6) For the materials with a long delivery period, China Power 4 shall purchase 20% of the engineering quantity and sell them to the subcontractor at the original price.

(7) In order not to affect the payment request of the contract, the completion data of the subcontracted machine must be completed within two weeks after the completion of the subcontracted machine, and the penalty for each machine shall be one day delayed 10, 000 yuan.

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**(8) Pump common Rack (PCW/GAS/UPW system disk can be installed on it) is made by Rack contractor i;**The common rack of multiple systems together **(excluding pump) is made by Rack contractor, and the cost is shared by relevant system contractor according to the proportion of occupancy;Other systems alone A single bracket is included in pipe mounting.**

**(9) The construction team is responsible for the site confirmation of the pre-dispatch point and the formal dispatch point.**

**(10) For other matters not mentioned, please refer to the bidding document.**

1. Payment terms shall be mainly clarified documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Advance payment: <u>15%</u> of the total contract price shall be paid within <u>30</u> days after the contract is signed and the Owner receives the advance payment bank guarantee letter approved by the Owner from the contractor;**(The advance payment shall be deducted in two installments, the first progress payment shall be deducted 50% and the second time 50%).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Progress Payment: The progress payment of this Contract shall be made in the following**<u>(1)</u> **way:** 1) Monthly payment:

The payment shall be made every month since the project starts. The contractor shall submit the progress payment application report before the 25th of each month, and the owner shall check and accept the progress payment

And the contractor shall provide VAT special invoice of the same amount within 60 days to pay <u>80%</u> of the approved completion amount of the current period

After the completion of the above, Party A shall pay the node payment from 15th to 30th of the next month after its review and confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Completion settlement payment: After the single station (single equipment) is accepted, the contractor shall submit the completion settlement documents according to the single station.**

Within 1 month from the date of submitting the complete completion settlement materials (the time will be postponed due to the contractor's reasons) at the beginning of the completion settlement

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(The person in charge of Party B shall, in accordance with the format required by Party A, provide the "Migrant Worker Wage Payment Confirmation", see the format for details) Annex Xvi). Within 60 days after the completion of the settlement audit report and submission of the VAT special invoice for the same amount, the payment shall be made to <u>97%</u> of the audited completion amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) Quality guarantee fund:** <u>3%</u> of the total settlement price shall be the quality guarantee fund, which shall be paid in one lump sum upon the expiration of defect liability and Party B's completion of all defect repair responsibilities and Party A's confirmation. The quality guarantee fund shall be paid without interest. The defect liability period of the Contract project shall be <u>24</u> months. The defect liability period refers to the period during which Party B undertakes the defect repair obligation as agreed herein and Party A reserves the quality guarantee fund, which shall be calculated from the date of completion and acceptance of the project. After the expiration of the defect liability, Party B shall still undertake the quality guarantee in accordance with the warranty period agreed herein Warranty obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Party A shall pay the above payment to Party B within 14 working days after receiving the payment from the owner.

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**Annex 23 Real Name System Management Agreement for Construction Workers**

The Owner (Party A): <u>China Electronic System Engineering No. 4 Construction Co., LTD</u>

Contractor (Party B): <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>

Party A and Party B have agreed on June 8, 2021 on the subcontracting of <u>temperature protection for the integrated circuit indicator Line item (Phase I) item,</u> secondary assembly machine process item (hereinafter referred to as the Project) The "Art Heating Belt/Jacket Package" (hereinafter referred to as the "Subcontract") has been signed.(June 8, 2021) In order to ensure the smooth implementation of the project construction and protect the legitimate rights and interests of migrant workers, Both parties shall comply with the Measures for the Implementation of the Labor Service Real-Name System Management of China Electronic System Engineering No. 4 Construction Co., LTD. And relevant laws and regulations

This Agreement is entered into on all matters concerning the management of the real name system of labor service in this project on the basis of fair, just and friendly consultation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Real-name registration and attendance management**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Party A appoints <u>Sun Zhaowei</u> (ID No. <u>320722198407106315</u>) as the person in charge of the project site and is fully responsible for labor Real name system management.

Party B appoints <u>Chen Shengqian</u> (ID No. <u>320922198110250093</u>) as the person in charge of the project site. Be presponsible for Party B's labor service personnel entry and exit information registration, safety education, daily attendance, wage payment and other labor service real-name system management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Before entering the site, Party B shall provide Party A with the labor roster, original ID card and its copy, payroll card information (opening bank and card number), legal labor contract (or copy with Party B's official seal), operation certificate and other materials, which shall be managed by the project labor service The department shall verify, register and establish the basic information one by one, and apply for the access control (attendance) card to enter the construction site after meeting the requirements of the security agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Party A shall be equipped with a attendance system according to the actual needs of the construction site. Party B shall assign labor management personnel to supervise labor personnel entering and leaving the construction site according to the requirements of real-name system and make daily attendance registration. Party B shall confirm that the attendance records of the current period (month) are reported and updated in real time before the 25th day of each month Labor standing book. If Party B does not confirm or delay, the attendance system data shall prevail, and Party B has no objection to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 Requirements for the subcontractor to appoint a project labor special manager: The subcontractor shall appoint a part-time labor special manager within 100 labor personnel;One full-time labor-management specialist should be set up for more than 100 subcontractors;Special management of labor with skilled computer operation, with certain services

Management ability.

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| ![](ex10-21_001.jpg) | 专 业 分 包 合 同 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Payroll management of labor personnel**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Before the <u>25th</u> day of each month, Party B shall calculate the salary of current labor service personnel according to the labor contract and relevant provisions and by referring to the attendance record.

Party B shall compile and record the wage payment ledger, and provide Party A with the payment voucher for record after the confirmation (signature and printing) of the labor personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 If Party A requires wages to be paid on behalf of Party A at the location of the project and Party A opens a special account for wages (labor fees) of migrant workers in the bank where the project is located, Party B shall apply for real-name wage payment bank cards for migrant workers and make labor payments according to actual attendance (Agreement 1.3) and labor contracts The payroll shall be confirmed by the labor personnel (sign and press press) and submitted to the Project Department for record. The wage payment bank card shall be handed over to the migrant worker himself for management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 When Party B entrusts Party A to make payment, Party A shall, through the special account for wage payment of labor personnel, pay wages to the bank card of each labor personnel one by one or directly pay wages to each labor personnel in cash according to the labor wage schedule provided by Party B in Article 2.2 of this Agreement, and Party B shall have no objection to such payment. If the wages of the labor personnel for the period listed in Article 2.2 are higher than the wages payable by Party A for the period, Party A shall pay the wages for the period Party B shall make up the insufficient part to the above account before the date of salary payment. Otherwise, Party B shall comply with the agreement after written confirmation.

When Party B and the labor service personnel have an agreement to pay a certain percentage of the wages in advance, and finally settle the wages in a lump sum according to the time limit of the node, Party B shall submit a written agreement confirmed by both parties to Party A for the record, and Party A shall take it as the basis, in accordance with the salary schedule confirmed by both parties and the negotiated ratio E.g. Pay the wages of labor personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Party A's payment to the account shall be deemed to have been received by Party B, and Party B shall be in no condition to make project settlement between Party A and Party B The payment shall be approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Party B's labor personnel shall go through the exit formalities to Party A in time to return the access control card and occupied materials, and settle the current salary Party B shall not leave the company until the formalities are completed.

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| ![](ex10-21_001.jpg) | 专 业 分 包 合 同 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Liability for breach of contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Party B shall submit the relevant documents to Party A on the date set forth herein. If Party B fails to do so or fails to do so, Party B shall submit the documents each time Party B shall pay RMB<u>10,000</u> as liquidated damages to Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Party B shall actively sign the labor contract, collect and update the information of labor personnel (labor

Labor ledger), labor attendance registration, wage measurement and payment, and Party B shall be responsible for the authenticity and integrity of the above information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Party B shall have the responsibility and obligation to actively cooperate with the Project Department to ensure the fund safety of the special account, if the special account is caused by Party B Party B shall be fully responsible for any fund loss and Party A shall have the right to terminate the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 If Party B fails to pay wages to the labor personnel, Party A shall have the right to correct the labor personnel according to the attendance sheet, labor contract and other documents

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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Party B has no objection to the payment of wages to the labor service personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Other**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Party B shall actively cooperate with Party A and Party A's superior unit to implement various systems on promoting real-name system of labor service wage management And methods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Party B fails to provide the original ID card and its copy, payroll card information (opening bank and card number) and legal labor and employment

If the contract (or the copy with Party B's official seal), operation certificate and other materials are not provided by Party A and Party B, the labor personnel without attendance record shall not be provided by both parties

<u>The labor of electrical circuit indicator line item (Phase I) item second assembly machine process item shall be integrated</u>

Personnel, Party A does not have to undertake any responsibility for payment, and has no relationship with Party A. Party B shall be responsible for all demands of the labor personnel.

Party B has no objection to such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 This Agreement only makes special provisions on the real-name system of labor service wage management, and other matters shall be subject to the provisions of the subcontract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 This Agreement is made in quadruplicate, with Party A holding two originals and Party B holding two originals. This Agreement shall come into force upon being signed and sealed by both parties.

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| ![](ex10-21_001.jpg) | 专 业 分 包 合 同 |

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**A letter of confirmation is enclosed**

**The following documents are annexes to this Contract:**

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| | |
|:---|:---|
| Annex 1 | Description of the Scope of Work |
| Annex 2 | Bill of Quantities Valuation table |
| Annex 3 | Brand List of Equipment and materials |
| Annex 4 | Construction Specifications and Technical Requirements |
| Annex 5 | relevant drawings |
| Annex 6 | Project progress time node |
| Annex 7 | Organizational Structure of the Project and resumes of key members |
| Annex 8 | Investment Plan of Construction machinery and tools |
| Annex 9 | Principles of Application for approval and replacement of materials and equipment |
| Annex 10 | A: Provisions on the management and use of materials Provisions on the management of materials supplied by Party A |
| Annex 11 | Agreement on Safe Construction Quality Agreement |
| Annex 12 | Confirmation of wage payment for migrant workers Subcontractor integrity Undertaking |
| Annex 13 | Anti-commercial bribery Agreement Non-disclosure Agreement |
| Annex 14 | Engineering warranty agreement |
| Annex 15 |  |
| Annex 16 |  |
| Annex 17 |  |
| Annex 18 |  |
| Annex 19 | Description of the lump-sum Contract and Fixed Unit Price contract mode |
| Annex 20 | Clarifications |
| Annex 21 | Real Name System Management Agreement for Construction Workers |

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Both Party A and Party B hereby confirm that the above attachments have been included in this Contract, and both parties have carefully read and confirmed that the above documents are an integral part of this Contract and have the same legal effect as this Contract.

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| ![](ex10-21_001.jpg) | 专 业 分 包 合 同 |

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|:---|:---|
| **Party A: China Electronic System** | **Party B: Jiangsu Huhu** |
| **Engineering No.4 Construction Co., LTD** | **Electromechanical Technology Co., LTD** |
| (Seal) |  |
| **Representative (signature);** | **Representative (signature);** |
| ![](ex10-21_003.jpg) | ![](ex10-21_014.jpg) |
| June 8, 2021 | June 8, 2021 |

---

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| ![](ex10-21_002.jpg) | **China Power Company No. 4** | **Professional sub-package together** |

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**Letter of Guarantee undertaking**

**Guarantor: <u>Wang yinglai</u>**

**Guaranteed: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

As the surety is <u>the legal representative of the surety</u>, the surety undertakes to China Electronic System Engineering No. 4 Construction Co., LTD. (hereinafter referred to as "China Power 4") that: The Process Heating Belt/Jacket Package (Contract No. :) signed by the Guarantor and China <u>Power IV in the Secondary installation Project of Integrated Circuit Demonstration Line Project (Phase I). CEFOC-HBZB-BJJDECP-21091-B-009)</u> and its additional, additional contracts or supplementary agreements, including but not limited to: if the guaranteed bears economic liabilities for China Power No. 4, the guarantor shall bear unlimited joint and several liability for compensation together with his personal assets;If the guaranteed is in arrears with the wages of the workers, the relevant workers or employees may interfere with the normal production and operation order of the Company (including its project department) and the customers of the company. In the event of the fourth generation of CLP, the guarantor shall unconditionally return to CLP No. 4 in full within 2 days after the advance payment of the wages of the fourth generation of CLP, or the labor fees related to the personnel

The payment shall be made at an interest rate of 24% per annum.

This undertaking may stand on its own. 12. Any dispute arising from this commitment shall be submitted to Shijiazhuang Arbitration Commission for arbitration. The guarantor confirms that The valid address of delivery is <u>A3-1208, Tian 'an Wisdom City, 228 Linghu Avenue, Xinwu District, Wuxi</u>, to: <u>Wang ying lai</u> 

Tel: <u>18112388986</u>. The service address applies to the service of various notices, letters, agreements and other documents without litigation, as well as the first instance, second instance, retrial and execution procedures after contract disputes enter arbitration or civil proceedings. When the address for service needs to be changed, the guarantor shall perform the obligation of giving written notice; otherwise, the confirmed address for service shall still be regarded as the valid address for service If the documents are rejected, the date on which the documents are returned shall be deemed as the date of service.

Guarantor: (signature + hand white

![](ex10-21_005.jpg)

June 8, 2021

Attachment: Copy of Guarantor ID card

![](ex10-21_006.jpg)

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## Exhibit 10.21

**Exhibit 10.21**

Contract Of Labor

Employer (hereinafter referred to as Party A): Jiangsu HUHU Electromechanical Technology Co., LTD

legal representative:<u> </u> <u>0510 - 8868 1689</u> <br>telephone: ________________

<u>Unit address:</u>_______________

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| |
|:---|
| Worker (hereinafter referred to as Party B): Yujun Xiao |
| Gender: male |
| Date of birth: ________________ |

---

postal address: ______________ <br>Citizen ID card number; ________________ contact number: <u>90502187</u>

To establish the labor relations of the two parties, clarify the rights and obligations of both parties, according to the labor law of the People's Republic of China, the labor contract law of the People's Republic of China and other laws and regulations, based on principal of legal, fair, equal, voluntary, consensus, honesty, parties agreed to sign this labor contract, and conclude the following terms:

one, term of a labor contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Upon the request of Party B, both parties agree that the term of labor contract shall take the form of pest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Fixed term: from / year is / day to<u> </u>Year / month / day, including the probation period. The probation period starts from / year / month to the 1st day of / year o ______

No fixed term: since 2) 22 years \| \| to the legal labor contract termination conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Upon the expiration of the labor contract, if both parties fail to terminate the contract or renew the labor contract, if Party B has worked in Party A for more than one month, the original labor contract shall be deemed to be automatically extended for one year, and may be automatically extended for several times. If Party B meets the Labor Contract Law of the People's Republic of China and relevant laws and regulations, and stipulates the conditions for signing a non-fixed labor labor contract, the labor contract between both parties shall be extended as a non-fixed labor contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the term of the labor contract, if Party B reaches the legal retirement age or begins to enjoy the basic endowment insurance benefits according to law, the labor contract shall terminate from the date of reaching the above circumstances. If Party B continues to work in Party A, both parties shall establish a labor relationship.

two, working place

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B is, A Wuxi H According to Party A's work needs, Party B agrees that the work place arranged by Party A shall perform the labor obligations at the actual project operation place according to the actual project operation needs, and Party B's failure to reach the actual operation place to perform the labor obligations shall be deemed as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party A has informed Party B that Party B is clearly aware of party A's actual business place adjustment within the contract term, and Party B is still willing to sign this Contract after consideration, and is willing to abide by Article 4.

three, job content

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall obey Party A's work arrangement and engage in divination and construction positions. For specific tasks, responsibilities and work standards, please refer to the job description / job description, operation specifications, operation guidance documents and other relevant documents provided by Party A, as well as the arrangement and requirements of Party A's management personnel.

Under any of the following circumstances, Party B shall voluntarily obey other positions arranged by Party A, and party B shall be determined according to the new position after the adjustment.

1) Both parties agree to change the work position (type of work)

2) Party B fails to complete the monthly task and performance indicators for two consecutive months;

3) Party A fails to arrange the original position due to changes in project cancellation or completion, organization adjustment, department cancellation, post merger and equipment update;

4) If Party B fails to work for one month, Party A has arranged other employees to replace Party B Party B returns to the post again;

5） Party B's parents, spouse, children, brothers and sisters work in Party A, and Party A thinks it is not conducive to the work and needs post transfer;

6） The laws, administrative regulations and administrative rules based on which the labor contract is concluded have changed, and the post must be adjusted;

7） Party B needs to be transferred according to Party B's work performance, physical condition and the needs of Party A's production and operation;

8） unqualified or incompetent in the performance appraisal;

9） The position should be adjusted as stipulated in Party A's rules and regulations.

Four, working hours, rest and vacation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Party A shall arrange Party B to implement the standard working hour system and implement the rest and vacation measures stipulated by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If Party A needs to arrange Party B to work overtime due to work, Party B shall go through the overtime application procedures according to relevant regulations, and Party A shall pay the overtime pay according to law. Party A does not agree with Party B to work overtime voluntarily. If only the time card record or other evidence proves that Party B extends the attendance time, it shall not be recorded as overtime work. If Party B voluntarily works overtime or otherwise cannot be recorded as overtime, it shall not enjoy the overtime treatment stipulated by law and agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Labor remuneration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B's salary shall be subject to the signed salary description. Party A may pay Party B the rewards other than those agreed herein regularly or irregularly according to the business conditions, but Party A has no obligation to pay them.

H .. Party B seriously violates company rules and regulations and does not enjoy all current bonuses, allowances and subsidies (annual, quarterly and monthly).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If Party B completes the prescribed work tasks and meets the prescribed quality standards, Party A (or the unit designated by Party A) shall pay Party B in full the salary for the previous month in legal currency by transfer or cash before the 30th of each month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. When Party B rescinds (terminates) the labor contract, Party A shall pay the unpaid wages, and they shall not be settled until after Party B completes the work handover. During the wage settlement, Party A shall pay the wages in the form of cash or bank transfer. If Party B fails to complete the work handover in Party A, resulting in the late wage payment, it shall not constitute arrears or deduction of wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Due to salary calculation standard is not clear or improper calculation method cause party a pay party b wages less, or party b refused to receive, does not belong to the arrears or deduct wages, party b shall find party a to verify, after verification party a pay wages have error, party a shall timely take remedial measures, reissue party b corresponding wage remuneration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Each time Party B receives wages, remuneration, and other income (including bonuses, allowances, subsidies, and various deductions), All expenses shall be calculated carefully; if there is any objection to the salary, remuneration and other income (including bonuses, allowances, subsidies and various deductions) calculated and paid by Party A, From the date of receipt of wages, remuneration and other income (including bonuses, allowances, subsidies and various deductions), Submit a written objection to Party A within three days, Party A will not accept Party B's objection application for later days, Party B shall be deemed to have made no objection or waived its rights; If party B raises an objection within the time limit, Even if there is party A's accounting error, Party A will no longer pay the difference of salary, remuneration and other income (including bonuses, allowances, subsidies, and various deductions). Labor protection, protection of working conditions and occupational hazards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Party A and Party B shall implement national laws, regulations, regulations and standards on labor protection, safety and health. Party A shall provide labor safety and health education to Party B to prevent accidents and reduce occupational hazards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Party A shall provide Party B with labor safety and health conditions and necessary labor safety protective equipment in accordance with national regulations, and strive to improve the working conditions.

seven, Social Security and Benefits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Party A and Party B shall participate in social insurance according to national and provincial regulations. The social insurance premium that shall be paid by Party B shall be withheld and paid by Party A from Party B's monthly salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. If Party A goes through the relevant social security procedures with the social insurance management department, Party B shall ensure that it meets the conditions for handling social insurance and provides the authenticity of the social insurance materials provided to Party A. If Party B fails to ensure that it meets the conditions for the social insurance handling and the information provided for the social insurance handling is false, and thus Party A fails to handle or fails to handle the relevant procedures of the social insurance for Party B in time, party B shall bear the relevant responsibilities.

eight, Modification, rescission and termination of a labor contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Party B has the right to choose a job freely, and Party A shall not restrict Party B's departure by signing the labor contract. Party B proposes to terminate the labor contract with Party A. If Party B handles the work handover as agreed by both parties, Party A shall settle the wages in full to Party B in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Party b to apply for early remove labor between, must be 3 0 days in advance (trial period for 3 day in advance) in written form as party a, written notice to the personnel department shall prevail, and shall not leave in advance, so that party a has time to recruit, in the work, party a and party b and both parties can negotiate the relevant formalities of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. If Party B terminate this Contract or leaves office without written notice 30 days in advance (3 days in advance during the trial period), it shall leave office arbitrarily; if Party B leaves office arbitrarily, Party B voluntarily waives the right to receive all wages, remuneration, income, and benefits. At the same time, Party A may still require Party B to bear the losses caused by leaving Party A without authorization. If it is difficult to calculate the economic losses, Party B shall compensate Party A for one month's salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Party B is investigated for criminal responsibility according to law, and the labor contract shall be naturally terminated starting from the effective date of the judgment. The employing unit does not need to perform the obligation of terminating the labor contract service again. If Party B does not fail to perform his labor obligations with the company for any reason, the performance of the labor relationship shall be suspended within 3 days. Party A shall not assume the relevant obligations during the suspension period.

For more than 3 days, Party A may terminate the labor contract of Party B without any economic compensation. nine, Other contents agreed upon by both parties through negotiation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. Party B is informed and aware that Party A's production site and office space are equipped with monitoring devices, and Party B is aware of this and accepts it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Party A orally informs Party B of party B's work content, working conditions, working place, occupational hazards, safe production conditions, labor remuneration and other information required by Party

B. Party B's signature or good seal on this Contract shall be deemed to have accepted the above information informed by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Party B confirms that there is no labor relationship with any unit, upon signing this Contract; without the written permission of Party A, it shall not establish labor relationship, labor relationship, employment relationship, part-time labor relationship, partnership relationship, and Party B shall not have any part-time activities (including e-commerce business, wechat business, direct sales, other part-time jobs, etc.).

If Party B violates this treaty, Party A may immediately terminate Party B's labor contract without paying any economic compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Party B confirms that if Party B conceals the non-competition with the original unit, it will constitute fraud and Party A may deemed the labor contract invalid. If Party A assumes joint and several liability due to Party B, Party A shall recover from Party B after compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Party B confirms that in order to ensure that Party B can receive timely treatment in hospitals with good medical conditions and meet the reimbursement rules of industrial injury insurance, Party B shall go to the hospital designated by Party A for treatment, and the diagnosis certificate and conclusion that Party A shall not accept the industrial injury insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Party b sick or work-related injury, need to leave treatment, must go to party a designated level of hospital for diagnosis, issued by the hospital suggested leave certificate, diagnosis, medical records and medical bills, not to the designated level of hospital diagnosis or leave formalities incomplete (recommended leave certificate, diagnosis, medical records, the original invoice, medical expenses original invoice cannot have at the same time, as the procedures are incomplete) are not approved sick leave. If the sick leave is not approved, Party B fails to leave the post without authorization and shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. If Party A has any questions about the medical diagnosis provided by Party B, it may require Party B to review the hospital at the designated hospital, and the review fee shall be paid by Party A in advance.

If the review result is consistent with the condition specified in Party B's leave procedures, Party A shall bear the review fee; if the review result is inconsistent with the condition specified in Party B, the review cost shall be borne by Party B. If Party B refuses to review it and fails to leave the post, it shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. Whether this Contract is terminated or terminated for any reason, or for whatever reason party B leaves the company, Party B shall handle the work handover procedures according to the relevant management regulations of Party A and the agreement between the two parties. Party A shall settle the salary, remuneration and other income after confirming the handover work. The handover procedures shall include but not limited to: handover to the personnel designated by Party A (subject to the signature of the work receiver); complete handover of office supplies, documents, equipment and other tangible or intangible assets; complete handover of any carrier containing important information to Party A; assist Party A to clear the claims and debts between both parties, complete the turnover procedures stipulated by Party A and handle the resignation procedures; handle other matters. If Party B fails to perform the above obligations (it shall be subject to the completion of all project leaders in the Employee Separation Transfer List), / If Party A is unable to handle the procedures related to Party B, Party B shall assume its own responsibilities.

If Party B leaves Party A by itself and fails to go through the relevant work handover procedures beyond the prescribed time limit, it means that Party B voluntarily waives all the remaining wages, remuneration, funds, wages, materials, welfare and other relevant rights remaining in Party A, and Party A may freely dispose of them. If Party B has debts to Party A due to borrowing or other reasons, the above disposal shall not offset Party B's debts. If Party B leaves Party A by itself and causes economic losses to Party A, Party A shall have the right to claim compensation to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. If Party B intentionally or materially causes losses to Party A, it shall be liable for compensation. Party b owe any money to party a, shall bear the economic loss compensation, or party b in violation of the contract conditions to terminate the labor contract, cause any economic losses to party a, in accordance with the law, regulations, the contract, party a has the right to party b's wages, bonuses and allowances, such as subsidies and other income (including not limited to this) in the corresponding deduction, insufficient deduction, party a shall still have the right to recover from party b for the rest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. Party A requires that, under any circumstances, Party B must abide by traffic safety laws and regulations and shall not commit any illegal acts, Party B shall be held liable for all cases (including but not limited to fines, deduction of driving license points, vehicle seizure, etc.) because Party B violates the provisions of traffic safety laws and regulations. If Party B suffers losses due to its violation of traffic safety laws and regulations, Party A may claim to Party B that the compensation shall be deducted from Party B's salary, remuneration, bonus and other income. If not deducted enough, it can still be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. Party b determine the fill in this contract mailing address and contact telephone number, party a to contact party a, serve the only fixed mailing address and effective contact phone number, party a to party b mailing address to legal documents, appear address unknown, address error, no this person, no address, party b refused to accept, others and other cannot be served, are regarded as legal documents from the date of the mail to party b.

X. Declaration and confirmation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. Party b during the work of the work results (including but not limited to technical data, development, summary concept, creative, documents and published books, work log, training materials, operation manual, audio and video materials, etc.), no matter what form (text, pictures, audio and video, etc.), its all the intellectual property rights belong to party a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Party b confirms that party a has truthfully inform party b work content, working conditions, requirements of choose and employ persons, working location, occupational hazards, production safety conditions, labor remuneration, social insurance, and so forth, and may work in the process of occupational disease hazards and its consequences, occupational disease prevention measures and treatment and other requirements to inform party b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. Party B confirms that the information on the entry registration form and resume provided or filled in to Party A is completely true and valid. Party B has no labor relationship with other employers, and is not subject to non-competition obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. Party B confirms that it has carefully read and understood the rules and regulations formulated by Party A and agrees to abide by them. The rules and regulations here include the employee handbook and other long-term comprehensive system, including party a in accordance with legal procedures and written or internal electronic network to party b public notice, instructions, methods and detailed rules of individual rules and regulations, including but not limited to the employee handbook, job description, safety guidelines, etc.

&nbsp;&nbsp;&nbsp;&nbsp;39. Other agreements:________________/________________________________________

/______________________________________________ <br>X. Supplementary Provisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Party B shall revise this contract and both parties agree. Both parties confirm the terms of this Contract without any objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. This labor contract is made in duplicate. Party A holds one copy and Party B holds one copy, which shall have the same legal effect.

![](ex10-15_001.jpg)

## Exhibit 10.22

**Exhibit 10.22**

Contract Of Labor

Employer (hereinafter referred to as Party A): Jiangsu HUHU Electromechanical Technology Co., LTD

legal representative: ____________________

telephone: ____________________

Address: ____________________

Worker: Huiping Zhang

(hereinafter referred to as Party B):

Sex: Female

Date of birth: ______________

Also

____________________________

postal address: _________

Citizen ID Card No.: ____________

contact number:___________

To establish the labor relations of the two parties, clarify the rights and obligations of both parties, according to the labor law of the People's Republic of China, the labor contract law of the People's Republic of China and other laws and regulations, based on the principal of legal, fair, equal, voluntary, consensus, honesty, parties agreed to sign this labor contract, and conclude the following terms:

one, term of a labor contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party B and both parties agree that the term of labor contract shall take the following form.

A Fixed period: from the next force year month, day to the year, including the trial period.

B No fixed period: the legal labor contract terminates when termination conditions appear.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Upon the expiration of the labor contract, if both parties fail to terminate the contract or renew the labor contract, if Party B has worked in Party A for more than one month, the original labor contract shall be deemed to be automatically extended for one year, and may be automatically extended for several times. If Party B meets the Labor Contract Law of the People's Republic of China and relevant laws and regulations and stipulates the conditions for signing non-fixed labor contract, the labor contract between both parties shall be extended to non-fixed labor contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the term of the labor contract, if Party B reaches the legal retirement age or begins to enjoy the basic endowment insurance benefits according to law, the labor contract shall terminate from the date of reaching the above circumstances. If Party B continues to work in Party A, both parties shall establish a labor relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B working place A, A Wuxi B According to Party A's work needs, Party B agrees that the working place arranged by Party A shall perform the actual labor obligations in the actual project operation place in the actual project operation place. Party B's failure to perform the labor obligations in the actual operation place shall be deemed to be absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party A has informed Party B that Party B is clearly aware of party A's actual business place adjustment within the contract term, and Party B is still willing to sign this Contract after consideration, and is willing to abide by Article 4.

3. Work content

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall obey Party A's work arrangement and refer to Party A for specific tasks, responsibilities provided by Party A and work standards

Job description / job description, operation specifications, making guidance documents

7, Under any of the following circumstances, Party B shall voluntarily obey the other positions arranged by Party A, and party B shall be determined according to the new position after the adjustment.

1) Both parties agree to change the work position (type of work)

2) Party B fails to complete the monthly task and performance indicators for two consecutive months;

3) Party A fails to arrange the original position due to changes in project cancellation or completion, organization adjustment, department cancellation, post merger and equipment update;

4) If Party B does not go to work for one month or more than one month for any reason, Party A has arranged other employees to replace Party B's original position and Party B goes to work again;

5) Party B's parents, spouse, children, brothers and sisters work in Party A, and Party A thinks it is not conducive to the work and needs post transfer;

6) The laws, administrative regulations and administrative rules based on which the labor contract is concluded have changed, and the post must be adjusted;

7) Party B needs to be transferred according to Party B's work performance, physical condition and the needs of Party A's production and operation;

8) unqualified or incompetent in the performance appraisal;

9) The position should be adjusted as stipulated in Party A's rules and regulations.

Four, working hours, rest and vacation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party A shall arrange Party B to implement the standard working hour system and implement the rest and vacation measures stipulated by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If Party A needs to arrange Party B to work overtime due to work, Party B shall go through the overtime application procedures according to relevant regulations, and Party A shall pay the overtime pay according to law. Party A does not agree with Party B to work overtime voluntarily. If only the time card record or other evidence proves that Party B extends the attendance time, it shall not be recorded as overtime work. If Party B voluntarily works overtime or otherwise cannot be recorded as overtime, it shall not enjoy the overtime treatment stipulated by law and agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Labor remuneration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B's salary shall be subject to the signed salary description. Party A may pay Party B the rewards other than those agreed herein regularly or irregularly according to the business conditions, but Party A has no obligation to pay them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Party B seriously violates company rules and regulations and does not enjoy all current bonuses, allowances and subsidies (annual, quarterly and monthly).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If Party B completes the prescribed work tasks and meets the prescribed quality child standards, Party A (or the unit designated by Party A) shall pay Party B the salary of the previous month in full in legal currency before the date of monthly delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. When Party B rescinds (terminates) the labor contract, Party A shall pay the unpaid wages, and the wages shall not be settled until after Party B completes the work handover. During the wage settlement, Party A shall pay the wages in the form of cash or bank transfer. If Party B fails to complete the work handover in Party A, resulting in the late wage payment, it shall not constitute arrears or deduction of wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Due to salary calculation standard is not clear or improper calculation method cause party a pay party b wages less, or party b refused to receive, does not belong to the arrears or deduct wages, party b shall find party a to verify, after verification party a pay wages have error, party a shall timely take remedial measures, reissue party b corresponding wage remuneration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Each time Party B receives wages, remuneration, and other income (including bonuses, allowances, subsidies, and various deductions), All expenses shall be calculated carefully; if there is any objection to the salary, remuneration and other income (including bonuses, allowances, subsidies and various deductions) calculated and paid by Party A, From the date of receipt of wages, remuneration and other income (including bonuses, allowances, subsidies and various deductions), Submit a written objection to Party A within three days, Party A will not accept Party B's objection application for later days, Party B shall be deemed to have made no objection or waived its rights; If party B raises an objection within the time limit, Even if there is party A's accounting error, Party A will no longer pay the difference of salary, remuneration and other income (including bonuses, allowances, subsidies, and various deductions).

Labor protection, protection of working conditions and occupational hazards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Party A and Party B shall implement national laws, regulations, regulations and standards on labor protection, safety and health. Party A shall provide labor safety and health education to Party B to prevent accidents and reduce occupational hazards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Party A shall provide Party B with labor safety and health conditions and necessary labor safety protective equipment in accordance with national regulations, and strive to improve the working conditions.

VII. Social Insurance and Welfare

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Party A and Party B shall participate in social insurance according to national and provincial regulations. Party A shall deduct the social insurance part that shall be paid by Party B from Party B's monthly salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Party A shall be responsible for handling relevant social security procedures with the social insurance management department, and Party B shall ensure that it meets the conditions for handling social insurance and provides the authenticity of the information provided to Party A. If Party B fails to ensure that it meets the conditions for social insurance handling and the information provided for social insurance handling is false, and thus Party A fails to handle or fails to handle the relevant procedures of social insurance for Party B in time, party B shall bear the relevant responsibilities.

VIII. Modification, rescission and termination of the labor contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Party B has the right to choose a job freely, and Party A shall not restrict Party B's departure by signing the labor contract. Party B proposes to terminate the labor contract with Party A. If Party B handles the work handover as agreed by both parties, Party A shall settle the wages in full to Party B in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Party b to apply for early remove labor between, must be 30 days in advance (3 H in advance during probation) in written form as party a, written notice to party a personnel department, and shall not leave in advance, so that party a has time to recruit, in the work, party a and party b and both parties can negotiate the relevant formalities of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. If Party B terminate this Contract or leaves without 30 day written notice (3 days during trial period), it shall be a higher vocational college; if Party B leaves without authorization, Party B voluntarily waives the right to receive all wages, remuneration, income, benefits, etc. At the same time, Party A may still require Party B to bear the losses caused by leaving Party A without authorization. If it is difficult to calculate the economic losses, Party B shall compensate Party A for one month's salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Party B is investigated for criminal responsibility according to law, and the labor contract shall be naturally terminated starting from the effective date of the judgment. The employing unit does not need to perform the obligation of terminating the labor contract service again. If Party B does not fail to perform his labor obligations with the company for any reason, the performance of the labor relationship shall be suspended within 3 days. Party A shall not assume the relevant obligations during the suspension period. For more than 3 days, Party A may terminate the labor contract of Party B without any economic compensation.

Ix. Other contents agreed upon by both parties through negotiation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. Party B is informed and aware that Party A's production site and office space are equipped with monitoring devices, and Party B is aware of this and accepts it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Party A orally informs Party B of party B's work content, working conditions, working place, occupational hazards, production safety conditions, labor remuneration and other information required by Party B. Party B's signature or good seal on this Contract shall be deemed to have accepted the above information informed by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Party B confirms that there is no labor relationship with any unit, upon signing this Contract; without the written permission of Party A, it shall not establish labor relationship, labor relationship, employment relationship, part-time labor relationship, partnership relationship, and Party B shall not have any part-time activities (including e-commerce business, wechat business, direct sales, other part-time jobs, etc.).

If Party B violates this treaty, Party A may immediately terminate Party B's labor contract without paying any economic compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Party B confirms that if Party B conceals the industry restrictions with the original unit, it will constitute fraud and Party A may find the labor contract invalid. If Party A assumes joint and several liability due to Party B, Party A shall recover from Party B after compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Party B confirms that in order to ensure that Party B can receive timely treatment in hospitals with good medical conditions and meet the reimbursement rules of industrial injury insurance, Party B shall go to the hospital designated by Party A for treatment, and the diagnosis certificate and conclusion that Party A shall not accept the industrial injury insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Party b sick or work-related injury, need to leave treatment, must go to party a designated level of hospital for diagnosis, issued by the hospital suggested leave certificate, diagnosis, medical records and medical bills, not to the designated level of hospital diagnosis or leave formalities incomplete (recommended leave certificate, diagnosis, medical records, the original invoice, medical expenses original invoice cannot have at the same time, as the procedures are incomplete) are not approved sick leave. If the sick leave is not approved, Party B fails to leave the post without authorization and shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. If Party A has any questions about the medical diagnosis provided by Party B, it may require Party B to review the hospital at the designated hospital, and the review fee shall be paid by Party A in advance. If the review station results and the condition specified in Party B's leave procedures agree, Party A shall bear the review expenses, and if the condition specified in Party B's leave procedures differ, the review expenses shall be borne by Party B. If Party B refuses to review it and fails to leave the post, it shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. Whether this Contract is terminated or terminated for any reason, or for whatever reason party B leaves the company, Party B shall handle the work handover procedures according to the relevant management regulations of Party A and the agreement between the two parties. Party A shall settle the salary, remuneration and other income after confirming the handover work. Transfer procedures shall include but are not limited to: handover to the personnel designated by Party A (subject to the signature of the work receiver); return the office supplies, documents, equipment in their possession; assist Party A to clear the claims and debts between both parties, complete the turnover procedures, and handle other outstanding affairs. If Party B fails to perform the above obligations (the obligations shall be signed by all the project leaders on the Employee Separation Transfer List), and if Party A is unable to handle the procedures related to the resignation, Party B shall bear its own responsibilities.

If Party B leaves Party A by itself and fails to go through the relevant work handover procedures beyond the prescribed time limit, it means that Party B voluntarily waives all the remaining wages, remuneration, funds, wages, materials, welfare and other relevant rights remaining in Party A, and Party A may freely dispose of them. If Party B has debts to Party A due to borrowing or other reasons, the above disposal shall not offset Party B's debts. If Party B leaves Party A by itself and causes economic losses to Party A, Party A shall have the right to claim compensation to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. If Party B intentionally or materially causes losses to Party A, it shall be liable for compensation. Party b owe any money to party a, shall bear the economic loss compensation, or party b in violation of the contract conditions to terminate the labor contract, cause any economic losses to party a, in accordance with the law, regulations, the contract, party a has the right to party b's wages, bonuses and allowances, such as subsidies and other income (including not limited to this) in the corresponding deduction, insufficient deduction, party a shall still have the right to recover from party b for the rest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. Party A requires that, under any circumstances, Party B must abide by traffic safety laws and regulations and shall not commit any illegal acts, Party B shall be held liable for all cases (including but not limited to fines, deduction of driving license points, vehicle seizure, etc.) because Party B violates the provisions of traffic safety laws and regulations. If Party B suffers losses due to its violation of traffic safety laws and regulations, Party A may claim to Party B that the compensation shall be deducted from Party B's salary, remuneration, bonus and other income. If not deducted enough, it can still be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. Party b determine the fill in this contract mailing address and contact telephone number, party a to contact party a, serve the only fixed mailing address and effective contact phone number, party a to party b mailing address to legal documents, appear address unknown, address error, no this person, no address, party b refused to accept, others and other cannot be served, are regarded as legal documents from the date of the mail to party b.

X. Declaration and confirmation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. Party b during the work of the work results (including but not limited to technical data, development, summary concept, creative, documents and published books, work log, training materials, operation manual, audio and video materials, etc.), no matter what form (text, pictures, audio and video, etc.), its all the intellectual property rights belong to party a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Party b confirms that party a has truthfully inform party b work content, working conditions, requirements of choose and employ persons, working location, occupational hazards, production safety conditions, labor remuneration, social insurance, and so forth, and may work in the process of occupational disease hazards and its consequences, occupational disease prevention measures and treatment and other requirements to inform party b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. Party B confirms that the information on the entry registration form and resume provided or filled in to Party A is completely true and valid. Party B has no labor relationship with other employers, and is not subject to non-competition obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. Party B confirms that it has carefully read and understood the rules and regulations formulated by Party A and agrees to abide by them. The rules and regulations here include the employee handbook and other long-term comprehensive system, including party a in accordance with the legal procedures and written or internal electronic network to party b public notice, instructions, methods and detailed rules of individual rules and regulations, including but not limited to the employee handbook, job description, safety guidelines, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. Other agreements: _____________________________________________________________

X. Supplementary Provisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. This contract shall be modified by Party B and agreed by both parties. Both parties confirm the terms of this Contract without any objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. This labor contract is made in duplicate. Party A holds one copy and Party B holds one copy, which shall have the same legal effect.

![](ex10-16_001.jpg)

## Exhibit 10.23

**Exhibit 10.23**

Contract Of Labor

Employer (hereinafter referred to as Party A): Jiangsu HUHU Eletromechanical Technology Co., LTD <br>

legal representative: _____________________________

telephone: _____________ <br>

Address: _________________________________________

Worker (hereinafter referred to as Party B): Xiaoming Chen

Sex: Male

Date of birth:

Address:________________________

Citizen ID number:

Contact phone number:

To establish the labor relations between the two parties, clarify the rights and obligations of both parties, according to the labor law of the People's Republic of China, the labor contract law of the People's Republic of China and other laws and regulations, in the principal of legal, fair, equal, voluntary, consensus, honest and trustworthy, agreed to sign a wooden labor contract, and conclude the following terms: -, Party B proposes and both parties agree that the labor contract term takes the following form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Fixed period: from no matter / day to _ Year, including the probation period- -months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. No fixed term: the year "month" to the legal termination of the labor contract conditions appear C Probation period from/ -From _ to / X / year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Upon the expiration of the labor contract, if both parties fail to terminate the contract or renew the labor contract, Party B shall work in Party A for more than one month The term of the original labor contract is deemed to be automatically extended for one year, and can be automatically extended for many times. If Party B meets the Labor Contract Law of the People's Republic of China and relevant laws and regulations and stipulates the conditions for signing a non-fixed term labor contract, the labor contract between both parties shall be extended to a non-fixed term labor contract.

3, During the term of the labor contract, if Party B reaches the legal retirement age or begins to enjoy the basic endowment insurance benefits according to law, the labor contract shall terminate from the date of reaching the above circumstances. If Party B continues to work in Party A, both parties shall establish a labor relationship.

2. Working place

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B's working place is Wuxi, Jiangsu. According to the work needs of Party A, Party B agrees that the working site arranged by Party A shall perform the labor obligations in the actual project operation place. Party B's failure to perform the labor obligations in the actual operation place shall be regarded as absenteeism.

5, Party A has informed Party B that Party B is clearly aware of party A's actual business place adjustment within the term of the contract, and Party B considers it still willing to enter into this contract, and willing to comply with the regulations.

3. Work content

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall obey Party A's work arrangement and engage in and add work positions: For specific tasks, responsibilities and work standards, please refer to the job description / job description, operation specifications, operation guidance documents and other corresponding documents provided by Party A, as well as the arrangement and requirements of Party A's management personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Under any of the following circumstances, Party B shall voluntarily obey other positions arranged by Party A, and party B shall be determined according to the new position after the adjustment.

1）Both parties agree to change the work position (type of work)

2）Party B fails to complete the monthly task and performance indicators for two consecutive months;

3) Party A fails to arrange the original post work due to changes in project cancellation or completion, organization adjustment, department cancellation, post merger and equipment update;

4) If Party B fails to work for one month for any reason, Party A has arranged other employees to replace Party B

Party B returns to the post again;

5） Party B's parents, spouse, children, brothers and sisters work in Party A, and Party A thinks it is not conducive to the work and needs post transfer;

6） The laws, administrative regulations and administrative rules based on which the labor contract is concluded have changed, resulting in the post must be adjusted;

7） Party B needs to be transferred according to Party B's work performance, physical condition and the needs of Party A's production and operation;

8） Unqualified or incompetent in the performance appraisal;

9） The position should be adjusted as stipulated in Party A's rules and regulations. Four, working hours, rest and vacation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party A shall arrange Party B to implement the standard working hour system and implement the rest and vacation measures stipulated by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If Party A needs to arrange Party B to work overtime due to work, Party B shall go through the overtime application procedures according to relevant regulations, and Party A shall pay the overtime pay according to law. Party A does not agree with Party B to work overtime voluntarily. If only the time card record or other evidence proves that Party B extends the attendance time, it shall not be recorded as overtime work. If Party B voluntarily works overtime or otherwise cannot be recorded as overtime, it shall not enjoy the overtime treatment stipulated by law and agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Labor remuneration

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B's salary shall be subject to the signed salary description. Party A may pay Party B the rewards other than those agreed herein regularly or irregularly according to the business conditions, but Party A has no obligation to pay them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Party B seriously violates company rules and regulations and does not enjoy all current bonuses, allowances and subsidies (annual, quarterly and monthly).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. If Party B completes the prescribed work tasks and meets the prescribed quality standards, Party A (or the unit designated by Party A) shall pay Party B's salary in full in legal currency before the date of monthly delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. When Party B rescinds (terminates) the labor contract, Party A shall pay the unpaid wages, and they shall not be settled until after Party B completes the work handover. During the wage settlement, Party A shall pay the wages in the form of cash or bank transfer. If Party B fails to complete the work handover in Party A, resulting in the late wage payment, it shall not constitute arrears or deduction of wages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. Because the salary calculation standard is not clear or improper calculation method caused party a pay party b wages less, or party b refused to receive, does not belong to be in arrears or deduct wages, party b shall find party a to verify, after verifying party a pay wages is wrong, party a shall timely take measures, reissue party b corresponding wage remuneration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. Each time Party B receives wages, remuneration, and other income (including bonuses, allowances, subsidies, and various deductions), All expenses shall be calculated carefully; if there is any objection to the salary, remuneration and other income (including bonuses, allowances, subsidies and various deductions) calculated and paid by Party A, From the date of receipt of wages, remuneration and other income (including bonuses, allowances, subsidies and various deductions), Submit a written objection to Party A within three days, Party A will not accept Party B's objection application for later days, Party B shall be deemed to have made no objection or waived its rights; If party B raises an objection within the time limit, Even if there is party A's accounting error, Party A will no longer pay the difference of salary, remuneration and other income (including bonuses, allowances, subsidies, and various deductions).

Labor protection, protection of working conditions and occupational hazards

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. Party A and Party B shall implement national laws, regulations, regulations and standards on labor protection, safety and health. Party A shall provide labor safety and health education to Party B to prevent accidents and reduce occupational hazards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. Party A shall provide Party B with labor safety and health conditions and necessary labor safety protective equipment in accordance with national regulations, and strive to improve labor condition.

VII. Social Insurance and Welfare

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. Party A and Party B shall participate in social insurance according to national and provincial regulations. The social insurance premium that shall be paid by Party B shall be withheld and paid by Party A from Party B's monthly salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. Party A shall be responsible for handling relevant social security procedures with the social insurance management department, and Party B shall ensure that it meets the conditions for handling social insurance and provides the authenticity of the information provided to Party A. If Party B fails to ensure that it meets the conditions for social insurance handling and the information provided for social insurance handling is false, and thus Party A fails to handle or fails to handle the relevant procedures of social insurance for Party B in time, party B shall bear the relevant responsibilities.

eight, Modification, rescission and termination of a labor contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. Party B has the right to choose a job freely, and Party A shall not restrict Party B's departure by signing the labor contract. Party B proposes to terminate the labor contract with Party A. If Party B handles the work handover as agreed by both parties, Party A shall settle the wages in full to Party B in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. Party b to apply for early remove labor between, must be 30 0 in advance (probation for 3 days in advance) in written form as party a, written notice to the personnel department shall prevail, and shall not leave in advance, so that party a has time to recruit, in the work, party a and party b and both parties can negotiate the relevant formalities of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. If Party B terminate this Contract or leaves without 30 day written notice (3 days in advance during trial period), it shall be a higher vocational college; if Party B leaves without authorization, Party B voluntarily waives the right to receive all wages, remuneration, income, benefits, etc. At the same time, Party A may still require Party B to bear the losses caused by leaving Party A without authorization. If it is difficult to calculate the economic losses, Party B shall compensate Party A for one month's salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. Party B is investigated for criminal responsibility according to law, and the labor contract shall be naturally terminated starting from the effective date of the judgment. The employing unit does not need to perform the obligation of terminating the labor contract service again. If Party B does not fail to perform his labor obligations with the company for any reason, the performance of the labor relationship shall be suspended within 3 days. Party A shall not undertake the relevant obligations. Party A may terminate the labor contract of Party B without any economic compensation. nine, Other contents agreed upon by both parties through negotiation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. If Party B is informed that Party A's production site and office space are equipped with monitoring devices, Party B is aware of this and accepts it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. Party A orally informs Party B of party B's work content, working conditions, working place, occupational hazards, production safety conditions, labor remuneration and other information required by Party B. Party B's signature or good seal on this Contract shall be deemed to have accepted the above information informed by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. Party B confirms that there is no labor relationship with any unit, upon signing this Contract; without the written permission of Party A, it shall not establish labor relationship, labor relationship, employment relationship, part-time labor relationship, partnership relationship, and Party B shall not have any part-time activities (including e-commerce business, wechat business, direct sales, other part-time jobs, etc.).

If Party B violates this treaty, Party A may immediately terminate Party B's labor contract without paying any economic compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27. Party B confirms that if Party B conceals the non-competition with the original unit, it will constitute fraud and Party A may deemed the labor contract invalid. If Party A assumes joint and several liability due to Party B, Party A shall recover from Party B after compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28. Party B confirms that in order to ensure that Party B can get timely treatment to hospitals with good medical conditions and meet the reimbursement rules of industrial injury insurance, Party B shall go to the hospital designated by Party A for the diagnosis certificate and verification of the non-designated level hospitals. Party A shall not accept it. Party B shall be liable for the industrial injury insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29. Party b sick or work-related injury, need to leave treatment, must go to party a designated level of hospital for diagnosis, issued by the hospital suggested leave certificate, diagnosis, medical records and medical bills, not to the designated level of hospital diagnosis or leave formalities incomplete (recommended leave certificate, diagnosis, medical records, the original invoice, medical expenses original invoice cannot have at the same time, as the procedures are incomplete) are not approved sick leave. If the sick leave is not approved, Party B fails to leave the post without authorization and shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30. If Party A has any questions about the medical diagnosis provided by Party B, it may require Party B to review the hospital at the designated hospital, and the review fee shall be paid by Party A in advance. If the review result is consistent with the condition specified in Party B's leave procedures, Party A shall bear the review fee; if the review station result is inconsistent with the condition specified in Party B, the review cost shall be borne by Party B. If Party B refuses to review it and fails to leave the post, it shall be treated as absenteeism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31. Whether this Contract is terminated or terminated for any reason, or for whatever reason party B leaves the company, Party B shall handle the work handover procedures according to the relevant management regulations of Party A and the agreement between the two parties. Party A shall settle the salary, remuneration and other income after confirming the handover work. Handover procedures shall include but are not limited to: handover to the personnel designated by Party A (subject to the signature of the receiver); complete handover of office supplies, documents, equipment; assist Party A to clear the claims and debts between both parties, complete the turnover procedures, and handle other outstanding affairs. If Party B fails to perform the above obligations (the obligations shall be signed by all the project leaders on the Employee Separation Transfer List), and if Party A is unable to handle or delay the procedures related to Party B's resignation, Party B shall bear its own responsibility.

If Party B leaves Party A by itself and fails to go through the relevant work handover procedures beyond the prescribed time limit, it means that Party B voluntarily waives all the remaining wages, remuneration, funds, wages, materials, welfare and other relevant rights remaining in Party A, and Party A may freely dispose of them. If Party B has debts to Party A due to borrowing or other reasons, the above disposal shall not offset Party B's debts. If Party B leaves Party A by itself and causes economic losses to Party A, Party A shall have the right to claim compensation to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32. If Party B intentionally or materially causes losses to Party A, it shall be liable for compensation. Party b owe any money to party a, shall bear the economic loss compensation, or party b in violation of the contract conditions to terminate the labor contract, cause any economic losses to party a, in accordance with the law, regulations, the contract compensation liability, party a has the right to from party b's wages, bonuses and allowances, such as subsidies and other income (including not limited to this) in the corresponding deduction, insufficient deduction, party a shall still have the right to recover from party b for the rest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33. Party A requires that, under any circumstances, Party B shall abide by the traffic safety laws and regulations and shall not commit any illegal act. Party B shall be held liable for all such activities (including but not limited to the points of fines, deduction of driving license and seizure of the vehicle due to its violation of the traffic safety laws and regulations). If Party B suffers losses due to its violation of traffic safety laws and regulations, Party A may claim compensation to Party B. The compensation shall be deducted from Party B's salary, remuneration, bonus and other income. If not deducted enough, it can still be recovered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34. Party b determine the fill in the contract mailing address and contact telephone number, party a to contact party a, serve the only fixed mailing address and effective contact phone number, party a to party b mailing address to legal documents, the address unknown, address error, no this person, no address, party b refused to accept, others and other cannot be served, are regarded as legal documents from the date of the mail to party b.

X. Declaration and confirmation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35. Party b in the work period of work results (including but not limited to technical data, development, summary concept, creative, documents and published books, work log, training materials, operation manual, audio and video materials, etc.), no matter what form (text, pictures, audio and video, etc.), its all the intellectual property rights belong to party a.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. Party b confirms that party a has truthfully inform party b work content, working conditions, requirements of choose and employ persons, working location, occupational hazards, production safety conditions, labor remuneration, social insurance, and so forth, and may work in the process of occupational disease hazards and its consequences, occupational disease prevention measures and treatment and other requirements to inform party b.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. Party B confirms that the information on the entry registration form and resume provided or filled in to Party A is completely true and valid. Party B has no labor relationship with other employers, and is not subject to non-competition obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;38. Party B confirms that has carefully read and understand the rules and regulations formulated by party a, and agrees to abide by the rules and regulations here including the employee handbook and other long-term comprehensive system, including party A in accordance with legal procedures and written or internal electronic network to party b public notice, instructions, methods and rules and other individual rules and regulations, including but not limited to employee manual, job description, safety guidelines, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39. Other agreements: _________________________________________________________________

X. Supplementary Provisions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36. This contract shall be modified by Party B and then agreed to by both parties. Both parties confirm the terms of this Contract without any objection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37. This labor contract is made in duplicate. Party A holds one copy and Party B holds one copy, which shall have the same legal effect.

![](ex10-17_001.jpg)

## Exhibit 10.24

**Exhibit 10.24**

contract NO: <u>HH, JD-20220308001</u>

place of signing:<u> </u>

Signing time: <u>2022.03.08</u> 

**Software system purchase and sale and service contract**

**Party A (Demander):** <u>Jiangsu Huhu Electromechanical Technology Co., Ltd</u>

Party B (Supplier): <u>Anhui Zhongke Shengwei Intelligent Data Co.,Ltd</u>

In accordance with the Contract Law of the People's Republic of China and on the principle of equality and Party B enter into this Contract through friendly negotiation and mutual benefit promise it to together.

**Article 1 Name, configuration and price of the software**

**Unit: RMB yuan**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**order number** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**dynacomm** | &nbsp;&nbsp;&nbsp;&nbsp;**edition** | &nbsp;&nbsp;**License number** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**unit-price** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Small amount** |
| &nbsp;&nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;Factory affairs data monitoring system | &nbsp;&nbsp;&nbsp;&nbsp;V1.0 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1 | &nbsp;&nbsp;&nbsp;&nbsp;2305000 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2305000 |
| &nbsp;&nbsp;&nbsp;&nbsp;2 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;3 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;4 |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;5 |  |  |  |  |  |
| &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** | &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** | &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** | &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** | &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** | &nbsp;&nbsp;**Total amount (in words): two hundred, thirty, five and five only.(￥2305000 Yuan) 13%** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Remarks:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The above price includes the training, installation and system debugging of the above software system;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The above price includes the upgrading and debugging of all annual data of the software;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The above price includes the implementation service of the system and the system maintenance work within one year. |

---

Page 1 (of 6 pages)

**Article 2 Term of service support**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The service period of this software is: <u>In March 8, 2022 To 2023, for the year 3</u> December 7 sun.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Upon the expiration of the service support period, you can choose whether to renew it, and the renewal fee is RMB<u> </u> Yuan / year.

**Article 3 The Rights and Obligations of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Upon receiving the software products, Party A shall timely check and accept the software products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Party A shall abide by the laws and regulations related to software copyright, and shall not make decryption, spread, copy and transfer to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Party A shall enjoy Party B's technical support, on-site maintenance and troubleshooting services during the free service period stipulated herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Party A shall be obliged to feedback the problems arising in the use of the software to Party B, and Party B shall be obliged to timely solve the questions reported from Party A subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The copyright of the above software shall belong to Party B, and Party A shall not copy, decrypt or engage in other activities that damage the legitimate rights and interests of Party B. Otherwise, Party A shall bear the corresponding legal liabilities.

**Article 4 The rights and obligations of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Party B shall guarantee to provide Party A with legitimate software systems, including software applications, software encryption cards and users Manual and other accessories and ensure the software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Party B shall ensure that the implemented software can be used normally, ensure the accuracy of the transformed data, and provide the corresponding data Follow-up services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Party B shall provide implementation and service for the software at the time and conditions agreed by both parties; or failure of the software.He provided the timely troubleshooting service in the abnormal condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 After the service maintenance period exceeds, Party A may enjoy party B's technical support, on-site maintenance and version update and other services for compensation.The cost is determined by both parties through negotiation.

Page 2 (of 6 pages)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Party B shall implement long-term tracking service for the sold software.

**Article 5 Delivery of products**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 After the contract is signed, Party B shall be responsible for the delivery and home installation and debugging within 30 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Delivery time: <u>2022</u> Year 4 Before October 8th.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Upon delivery, Party B shall provide Party A with the following materials: product qualification certificate, quality assurance card and product inspection report;Product operation manual; product warranty; user operation manual; system installation manual and other materials.

**Article 6 Acceptance inspection**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Acceptance criteria: the purchased software products meet the quality described and promised on the product specification and the manufacturer's website ask.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Party A's acceptance representative: Jia <u>say justice</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The acceptance of the software includes: the required terms of the software, the installation and debugging of the software and the system operation. And the legitimacy certificate of the software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 After the installation and debugging of the software, both parties shall check and accept the installation, debugging and operation of the software. Party A's acceptance representative shall sign it for confirmation as the basis for payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 After receiving the goods, Party A reserves the right of further inspection of the goods.

**Article 7: Payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Time and time of payment:

---

| | | | |
|:---|:---|:---|:---|
| **Payment order** | &nbsp;&nbsp;&nbsp;**Payment ratio is (%)** | &nbsp;&nbsp;**Payment amount (RMB)** | &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;**term of payment** |
| &nbsp;&nbsp;&nbsp;first | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;125000 | &nbsp;&nbsp;After the contract is signed <u>3</u> in a few days |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; <br> second time | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> 40% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> 980000 | &nbsp;&nbsp;30 days after the completion of system installation and debugging and acceptance inner |
| &nbsp;&nbsp;&nbsp;&nbsp;third time | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;55% | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1200000 | &nbsp;&nbsp;After a stable system operation for 3 months, 30 in a few days |
| &nbsp;&nbsp;Note: Party B shall provide a formal tax invoice as a prerequisite for Party A's payment | &nbsp;&nbsp;Note: Party B shall provide a formal tax invoice as a prerequisite for Party A's payment | &nbsp;&nbsp;Note: Party B shall provide a formal tax invoice as a prerequisite for Party A's payment | &nbsp;&nbsp;Note: Party B shall provide a formal tax invoice as a prerequisite for Party A's payment |

---

Page 3 (of 6 pages)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Terms of payment: <u>electricity converge</u> 

**Article 8. Maintenance services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Party B shall, after signing the contract, provide Party A's relevant personnel for standard training on software operation and maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 After updating the technical data of the software system provided to Party A, Party B shall timely notify Party A and submit it to Party A free of charge for the latest relevant information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Provide free maintenance and upgrade services to the user during the quality warranty period. Party B shall guarantee it outside of the quality warranty period. The service quality shall not be reduced, and the relevant fees shall be negotiated by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 Party B shall guarantee the realization of (weekly) 724 services. If the system fails and cannot be repaired remotely, Party B shall serve to the site within 48 hours after the fault occurs, during which party B shall propose emergency solutions to party A's site engineer, Party B upon arrival at the site Repair is completed within 8 hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 Contact information of Party B's after-sales service center: <u>Yu seedling 1 5 9 0 5 6 0 3 9 0 3</u> 

**Article 9 Liability for Breach of contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Party A shall pay the payment to Party B according to the time and proportion agreed herein. If Party A delays in making the payment, it shall be overdue. Party B shall be paid liquidated damages at the interest rate of the bank loan for the same period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 If the software provided by Party B does not comply with the contract, Party A shall have the right to request it to replace it, and Party B shall still fail to comply with the contract after the replacement. If agreed, Party A shall have the right to terminate the contract and pay the contract price 20% requires party B to pay liquidated damages.

Page 4 (of 6 pages)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 If Party B delays in delivering the goods, the contract price shall be paid for each overdue day.3 Unithousand shall pay liquidated damages to Party A. Overdue On the 5th, Party A shall have the right to terminate the contract, and Party B shall pay 20% of the contract price and compensate Party A for the facts caused thereby international loss.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 If Party B fails to provide warranty services as agreed herein, Party A shall have the right to repair separately, and the maintenance expenses shall be borne by Party B.

**Article 10. Force majeure**

If the Contract cannot be performed or fully performed due to force majeure, the party who encounters the force majeure event shall immediately notify the other party in writing and provide relevant supporting documents to the other party within 15 days after the occurrence of the force majeure event. The parties to the contract shall decide whether to change or terminate the contract according to the impact of the performance of the contract. Suffering from force majeure.

If the party fails to perform the above obligations, it shall not be exempted from its liability for breach of contract.

**Article 11 Dispute settlement method**

Any dispute arising from this contract may be settled by both parties through negotiation. If the negotiation fails, the dispute shall be found below How to solve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. submit to Jurisdiction of the people's courts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. submit to arbitrate.

**Article 12 Validity of contracts and others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 For matters not covered herein, both parties may sign a supplementary agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 The appendix and supplementary agreements shall be an integral part of the Contract and shall have the same legal effect as this Contract. Such as attachment and this. For any inconsistency, this article shall prevail; if the supplementary agreement disagrees with this article, the supplementary agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 This contract shall come into force upon being signed and sealed by both parties. If the approval of the national competent authorities is required, it shall be born from the date of approval effect.

Page 5 (of 6 pages)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 Contract formula Party A and Party B shall hold each copy portion.

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Party A (legal person official seal) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Party B (legal person official seal) |
| Address: 3-1208 Tiananzhihui Compound<br> 228 Linghu Road<br> Xinwu District, Wuxi City, Jiangsu Province<br> People's Republic of China | Address: China (Anhui) Pilot Free Trade Zone together |
| <br> Legal representative: Wang Hu-in | Innovation Industrial Park, No.800 Wangxi Road, Feicheng High-tech Zone |
|  | 709 |
| Authorized Representative: Chen Xiaoming |  |
| ![](ex10-25_001.jpg) | Legal representative: Xiao Yujun |
| Tel.: 17715531723 |  |
|  | Authorized Representative: Yu Miao |
| Bank: CCB Wuxi Chengbei Branch | ![](ex10-25_002.jpg) |
|  | Tel.: 15905603903 |
| Account No.: 32001615036052517356 |  |
|  | Bank: Bank of China, Hefei Changjiang West Road Sub-branch |
| Tax No.: 91320214346537120H |  |
|  | Account number: 187264183827 |
| Date: March 8, 2022 |  |
|  | Tax id.: 91340111MA 8N8NCM 5Y |
|  | Date: March 8, 2022 |

---

Page 6 (of 6 pages)

## Exhibit 10.25

**Exhibit 10.25**

Jiangsu Huhu Electromechanical Technology Co., Ltd

Re: Small micro fast loan with China Construction Bank

Jiangsu Huhu Electromechanical Technology Co., Ltd represents the following regarding the loan contract of China Construction Bank:

1. Jiangsu Huhu Electromechanical Technology Co., Ltd. (hereinafter referred to as "Jiangsu Huhu") signed the a micro fast Loan contract with Wuxi Branch of China Construction Bank Co., Ltd. (hereinafter referred to as "China Construction Bank") on November 3, 2021. It is agreed in the contract that China Construction Bank will provide Jiangsu Huhu with a loan up to the amount of RMB 3 million, valid from November 3, 2021 to November 3, 2022. During the duration, Jiangsu Huhu may request the bank of any capital needs within the agreed amount, and China Construction Bank shall issue the requested funds to the Company.

2. Jiangsu Huhu had applied for a loan of 1.2 million yuan from China Construction Bank on December 10, 2021, and another loan of 500,000 yuan from China Construction Bank on December 21, 2021.The two issuances are included in the framework agreement of small micro fast loans. No other loan contracts have been signed.

Jiangsu Huhu Electromechanical Technology Co., Ltd.

March 1, 2023

## Exhibit 10.26

**Exhibit 10.26**

Jiangsu Huhu Electromechanical Technology Co., Ltd

Re: Online Working Capital Loan with Bank of Ningbo

Jiangsu Huhu Electromechanical Technology Co., Ltd represents the following regarding the loan contract of Bank of Ningbo:

1. Jiangsu Huhu Electromechanical Technology Co., Ltd. (hereinafter referred to as "Jiangsu Huhu") signed an Online Working Capital Loan contract with Wuxi Branch of Bank of Ningbo Co., Ltd (hereinafter referred to as "Bank of Ningbo") on March 28, 2022. It is agreed in the contract that Bank of Ningbo will provide Jiangsu Huhu with a loan up to the amount of RMB 3 million, valid from March 28, 2022 to March 28, 2023. During the duration, Jiangsu Huhu may request the bank of any capital needs within the agreed amount, and Bank of Ningbo shall issue the requested funds to the Company.

2. Jiangsu Huhu had applied for a loan of 3 million yuan from Bank of Ningbo on April 1, 2022. This issuance is included in the framework agreement of online working capital loan. No other loan contracts have been signed.

Jiangsu Huhu Electromechanical Technology Co., Ltd.

March 2, 2023

## Exhibit 14.1

**Exhibit 14.1**

**HUHUTECH INTERNATIONAL GROUP INC.**

**Code of Ethics and Business Conduct**

1. <u>Introduction</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 The Board of Directors (the "**Board**") of HUHUTECH International Group Inc. (the "**Company**") has adopted this Code of Ethics and Business Conduct (the "**Code**") in order to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the "**SEC**") and in other public communications made by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) promote compliance with applicable governmental laws, rules and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promote the protection of Company assets, including corporate opportunities and confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promote fair dealing practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) deter wrongdoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ensure accountability for adherence to the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 All directors, officers and employees are required to be familiar with the Code, comply with its provisions and report any suspected violations as described below in Section 10, Reporting and Enforcement.

2. <u>Honest and Ethical Conduct</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The Company's policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Each director, officer and employee must act with integrity and observe the highest ethical standards of business conduct in his or her dealings with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job.

3. <u>Conflicts of Interest</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 A conflict of interest occurs when an individual's private interest (or the interest of a member of his or her family) interferes, or even appears to interfere, with the interests of the Company as a whole. A conflict of interest can arise when an employee, officer or director (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances. Loans by the Company to, or guarantees by the Company of obligations of, any director or executive officer or their family members are expressly prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Whether or not a conflict of interest exists or will exist can be unclear. Conflicts of interest should be avoided unless specifically authorized as described in Section 3.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Persons other than directors and executive officers who have questions about a potential conflict of interest or who become aware of an actual or potential conflict should discuss the matter with, and seek a determination and prior authorization or approval from, their supervisor or the Chief Financial Officer. A supervisor may not authorize or approve conflict of interest matters or make determinations as to whether a problematic conflict of interest exists without first providing the Chief Financial Officer with a written description of the activity and seeking the Chief Financial Officer's written approval. If the supervisor is himself involved in the potential or actual conflict, the matter should instead be discussed directly with the Chief Financial Officer.

Directors and executive officers must seek determinations and prior authorizations or approvals of potential conflicts of interest exclusively from the Audit Committee.

4. <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Employees, officers and directors should comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which the Company operates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Although not all employees, officers and directors are expected to know the details of all applicable laws, rules and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to the Legal Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 No director, officer or employee may purchase or sell any Company securities while in possession of material nonpublic information regarding the Company, nor may any director, officer or employee purchase or sell another company's securities while in possession of material nonpublic information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material nonpublic information regarding the Company or any other company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) obtain profit for himself or herself; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) directly or indirectly "tip" others who might make an investment decision on the basis of that information.

5. <u>Disclosure</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Company's periodic reports and other documents filed with the SEC, including all financial statements and other financial information, must comply with applicable federal securities laws and SEC rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Each director, officer and employee who contributes in any way to the preparation or verification of the Company's financial statements and other financial information must ensure that the Company's books, records and accounts are accurately maintained. Each director, officer and employee must cooperate fully with the Company's accounting and internal audit departments, as well as the Company's independent public accountants and counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Each director, officer and employee who is involved in the Company's disclosure process must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be familiar with and comply with the Company's disclosure controls and procedures and its internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take all necessary steps to ensure that all filings with the SEC and all other public communications about the financial and business condition of the Company provide full, fair, accurate, timely and understandable disclosure.

6. <u>Protection and Proper Use of Company Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 All directors, officers and employees should protect the Company's assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company's profitability and are prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 All Company assets should be used only for legitimate business purposes. Any suspected incident of fraud or theft should be reported for investigation immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The obligation to protect Company assets includes the Company's proprietary information. Proprietary information includes intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business and marketing plans, engineering and manufacturing ideas, designs, databases, records and any nonpublic financial data or reports. Unauthorized use or distribution of this information is prohibited and could also be illegal and result in civil or criminal penalties.

7. <u>Corporate Opportunities</u>. All directors, officers and employees owe a duty to the Company to advance its interests when the opportunity arises. Directors, officers and employees are prohibited from taking for themselves personally (or for the benefit of friends or family members) opportunities that are discovered through the use of Company assets, property, information or position. Directors, officers and employees may not use Company assets, property, information or position for personal gain (including gain of friends or family members). In addition, no director, officer or employee may compete with the Company.

8. <u>Confidentiality</u>. Directors, officers and employees should maintain the confidentiality of information entrusted to them by the Company or by its customers, suppliers or partners, except when disclosure is expressly authorized or is required or permitted by law. Confidential information includes all nonpublic information (regardless of its source) that might be of use to the Company's competitors or harmful to the Company or its customers, suppliers or partners if disclosed.

9. <u>Fair Dealing</u>. Each director, officer and employee must deal fairly with the Company's customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job. No director, officer or employee may take unfair advantage of anyone through manipulation, concealment, abuse or privileged information, misrepresentation of facts or any other unfair dealing practice.

10. <u>Reporting and Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Reporting and Investigation of Violations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Actions prohibited by this Code involving directors or executive officers must be reported to the Audit Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Actions prohibited by this Code involving anyone other than a director or executive officer must be reported to the reporting person's supervisor or the Chief Financial Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) After receiving a report of an alleged prohibited action, the Audit Committee, the relevant supervisor or the Chief Financial Officer must promptly take all appropriate actions necessary to investigate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All directors, officers and employees are expected to cooperate in any internal investigation of misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company must ensure prompt and consistent action against violations of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, after investigating a report of an alleged prohibited action by a director or executive officer, the Audit Committee determines that a violation of this Code has occurred, the Audit Committee will report such determination to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, after investigating a report of an alleged prohibited action by any other person, the relevant supervisor or the Chief Financial Officer determines that a violation of this Code has occurred, the supervisor or the Chief Financial Officer will report such determination to the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon receipt of a determination that there has been a violation of this Code, the Board will take such preventative or disciplinary action as it deems appropriate, including, but not limited to, reassignment, demotion, dismissal and, in the event of criminal conduct or other serious violations of the law, notification of appropriate governmental authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Waivers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Board may, in its discretion, waive any violation of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any waiver for a director or an executive officer shall be disclosed as required by SEC and Nasdaq rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Prohibition on Retaliation.

The Company does not tolerate acts of retaliation against any director, officer or employee who makes a good faith report of known or suspected acts of misconduct or other violations of this Code.

## Exhibit 21.1

**Exhibit 21.1**

**Subsidiaries of HUHUTECH International Group Inc.**

The following is a list of subsidiaries of the Registrant.

---

| | |
|:---|:---|
| **Business Entity Name** | **Place of Formation** |
| HUHUTECH (HK) Limited. | Hong Kong |
| HUHU Technology Co., Ltd. | Japan |
| Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd. | People's Republic of China |
| Jiangsu HUHU Electromechanical Technology Co., Ltd. | People's Republic of China |

---

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

---

| | |
|:---|:---|
| ![](ex23-1_002.jpg) | &nbsp;&nbsp;**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**<br>We hereby consent to the inclusion in this Registration Statement on Form F-1 of HUHUTECH International Group Inc. of our report dated October 21, 2022 with respect to our audits of the consolidated financial statements of HUHUTECH International Group Inc. and Subsidiaries as of and for the years ended December 30, 2021 and 2020, and to the reference to us under the heading "Experts" in the Registration Statement.<br>/s/ Wei, Wei & Co., LLP<br>Flushing, New York<br> March 29, 2023 |

---

## Exhibit 99.2

**Exhibit 99.2**

**CHARTER OF THE AUDIT COMMITTEE OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

**<u>Membership</u>**

The Audit Committee (the "**Committee**") of the board of directors (the "**Board**") of HUHUTECH International Group Inc. (the "**Company**") shall consist of three or more directors. Each member of the Committee shall be independent in accordance with the requirements of Rule 10A-3 of the Securities Exchange Act of 1934 and the rules of the Nasdaq Stock Market. No member of the Committee can have participated in the preparation of the Company's or any of its subsidiaries' financial statements at any time during the past three years.

Each member of the Committee must be able to read and understand fundamental financial statements, including the Company's balance sheet, income statement and cash flow statement. At least one member of the Committee must have past employment experience in finance or accounting, requisite professional certification in accounting or other comparable experience or background that leads to financial sophistication. At least one member of the Committee must be an "audit committee financial expert" as defined in Item 407(d)(5)(ii) of Regulation S-K. A person who satisfies this definition of audit committee financial expert will also be presumed to have financial sophistication.

The members of the Committee shall be appointed by the Board based on recommendations from the nominating and corporate governance committee of the Board. The members of the Committee shall serve for such term or terms as the Board may determine or until earlier resignation or death. The Board may remove any member from the Committee at any time with or without cause.

**<u>Purpose</u>**

The purpose of the Committee is to oversee the Company's accounting and financial reporting processes and the audit of the Company's financial statements.

The primary role of the Committee is to oversee the financial reporting and disclosure process. To fulfill this obligation, the Committee relies on: management for the preparation and accuracy of the Company's financial statements; for establishing effective internal controls and procedures to ensure the Company's compliance with accounting standards, financial reporting procedures and applicable laws and regulations; and the Company's independent auditors for an unbiased, diligent audit or review, as applicable, of the Company's financial statements and the effectiveness of the Company's internal controls. The members of the Committee are not employees of the Company and are not responsible for conducting the audit or performing other accounting procedures.

**<u>Duties and Responsibilities</u>**

The Committee shall have the following authority and responsibilities:

To (1) select and retain an independent registered public accounting firm to act as the Company's independent auditors for the purpose of auditing the Company's annual financial statements, books, records, accounts and internal controls over financial reporting, (2) set the compensation of the Company's independent auditors, (3) oversee the work done by the Company's independent auditors and (4) terminate the Company's independent auditors, if necessary.

To select, retain, compensate, oversee and terminate, if necessary, any other registered public accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Company.

To approve all audit engagement fees and terms; and to pre-approve all audit and permitted non-audit and tax services that may be provided by the Company's independent auditors or other registered public accounting firms, and establish policies and procedures for the Committee's pre-approval of permitted services by the Company's independent auditors or other registered public accounting firms on an on-going basis.

At least annually, to obtain and review a report by the Company's independent auditors that describes (1) the accounting firm's internal quality control procedures, (2) any issues raised by the most recent internal quality control review, peer review or Public Company Accounting Oversight Board review or inspection of the firm or by any other inquiry or investigation by governmental or professional authorities in the past five years regarding one or more audits carried out by the firm and any steps taken to deal with any such issues, and (3) all relationships between the firm and the Company or any of its subsidiaries; and to discuss with the independent auditors this report and any relationships or services that may impact the objectivity and independence of the auditors.

At least annually, to evaluate the qualifications, performance and independence of the Company's independent auditors, including an evaluation of the lead audit partner; and to assure the regular rotation of the lead audit partner at the Company's independent auditors and consider regular rotation of the accounting firm serving as the Company's independent auditors.

To review and discuss with the Company's independent auditors (1) the auditors' responsibilities under generally accepted auditing standards and the responsibilities of management in the audit process, (2) the overall audit strategy, (3) the scope and timing of the annual audit, (4) any significant risks identified during the auditors' risk assessment procedures and (5) when completed, the results, including significant findings, of the annual audit.

To review and discuss with the Company's independent auditors (1) all critical accounting policies and practices to be used in the audit; (2) all alternative treatments of financial information within generally accepted accounting principles ("**GAAP**") that have been discussed with management, the ramifications of the use of such alternative treatments and the treatment preferred by the auditors; and (3) other material written communications between the auditors and management.

To review and discuss with the Company's independent auditors and management (1) any audit problems or difficulties, including difficulties encountered by the Company's independent auditors during their audit work (such as restrictions on the scope of their activities or their access to information), (2) any significant disagreements with management and (3) management's response to these problems, difficulties or disagreements; and to resolve any disagreements between the Company's auditors and management.

To review with management and the Company's independent auditors: any major issues regarding accounting principles and financial statement presentation, including any significant changes in the Company's selection or application of accounting principles; any significant financial reporting issues and judgments made in connection with the preparation of the Company's financial statements, including the effects of alternative GAAP methods; and the effect of regulatory and accounting initiatives and off-balance sheet structures on the Company's financial statements.

To keep the Company's independent auditors informed of the Committee's understanding of the Company's relationships and transactions with related parties that are significant to the company; and to review and discuss with the Company's independent auditors the auditors' evaluation of the Company's identification of, accounting for, and disclosure of its relationships and transactions with related parties, including any significant matters arising from the audit regarding the Company's relationships and transactions with related parties.

To review with management and the Company's independent auditors the adequacy and effectiveness of the Company's financial reporting processes, internal control over financial reporting and disclosure controls and procedures, including any significant deficiencies or material weaknesses in the design or operation of, and any material changes in, the Company's processes, controls and procedure] and any special audit steps adopted in light of any material control deficiencies, and any fraud involving management or other employees with a significant role in such processes, controls and procedures, and review and discuss with management and the Company's independent auditors disclosure relating to the Company's financial reporting processes, internal control over financial reporting and disclosure controls and procedures, the independent auditors' report on the effectiveness of the Company's internal control over financial reporting and the required management certifications to be included in or attached as exhibits to the Company's annual report on Form 20-F, as applicable.

To review and discuss with the Company's independent auditors any other matters required to be discussed by applicable requirements of the PCAOB and the SEC.

To review and discuss with the Company's independent auditors and management the Company's annual audited financial statements (including the related notes), the form of audit opinion to be issued by the auditors on the financial statements and the disclosure under "Operating and Financial Review and Prospects" to be included in the Company's annual report on Form 20-F before the Form 20-F is filed.

To recommend to the Board that the audited financial statements be included in the Company's Form 20-F and whether the Form 20-F should be filed with the SEC; and to produce the audit committee report required to be included in the Company's proxy statement.

To establish and oversee procedures for the receipt, retention and treatment of complaints received by the Company regarding accounting, internal accounting controls or auditing matters and the confidential, anonymous submission by Company employees of concerns regarding questionable accounting or auditing matters.

To monitor compliance with the Company's Code of Business Conduct and Ethics (the "**Code**"), to investigate any alleged breach or violation of the Code, and to enforce the provisions of the Code.

To review, with the General Counsel and outside legal counsel, legal and regulatory matters, including legal cases against or regulatory investigations of the Company and its subsidiaries, that could have a significant impact on the Company's financial statements.

To review, approve and oversee any transaction between the Company and any related person (as defined in Item 404 of Regulation S-K) and any other potential conflict of interest situations on an ongoing basis, in accordance with Company policies and procedures, and to develop policies and procedures for the Committee's approval of related party transactions.

**<u>Outside Advisors</u>**

The Committee shall have the authority, in its sole discretion, to retain and obtain the advice and assistance of independent outside counsel and such other advisors as it deems necessary to fulfill its duties and responsibilities under this Charter. The Committee shall set the compensation, and oversee the work, of any outside counsel and other advisors.

The Committee shall receive appropriate funding from the Company, as determined by the Committee in its capacity as a committee of the Board, for the payment of compensation to the Company's independent auditors, any other accounting firm engaged to perform services for the Company, any outside counsel and any other advisors to the Committee.

**<u>Structure and Operations</u>**

The Board shall designate a member of the Committee as the chairperson. The Committee shall meet at least two times a year at such times and places as it deems necessary to fulfill its responsibilities. The Committee shall report after each committee meeting to the Board on its discussions and actions, including any significant issues or concerns that arise at its meetings, and shall make recommendations to the Board as appropriate. The Committee is governed by the same rules regarding meetings (including meetings in person or by telephone or other similar communications equipment), action without meetings, notice, waiver of notice, and quorum and voting requirements as are applicable to the Board.

The Committee shall meet separately, and periodically, with management, and representatives of the Company's independent auditors, and shall invite such individuals to its meetings as it deems appropriate, to assist in carrying out its duties and responsibilities. However, the Committee shall meet regularly without such individuals present.

The Committee shall review this Charter at least annually and recommend any proposed changes to the Board for approval.

**<u>Delegation of Authority</u>**

The Committee shall have the authority to delegate any of its responsibilities, along with the authority to take action in relation to such responsibilities, to one or more subcommittees as the Committee may deem appropriate in its sole discretion.

**<u>Performance Evaluation</u>**

The Committee shall conduct an annual evaluation of the performance of its duties under this Charter and shall present the results of the evaluation to the Board. The Committee shall conduct this evaluation in such manner as it deems appropriate.

## Exhibit 99.3

**Exhibit 99.3**

**CHARTER OF THE COMPENSATION COMMITTEE OF** 

**HUHUTECH INTERNATIONAL GROUP INC.**

**<u>Membership</u>**

The Compensation Committee (the "**Committee**") of the board of directors (the "**Board**") of HUHUTECH International Group Inc. (the "**Company**") shall consist of three or more directors. Each member of the Committee shall be independent in accordance with the rules of the Nasdaq Stock Market.

Each member of the Committee must qualify as "non-employee directors" for the purposes of Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the "**Exchange Act**").

The members of the Committee shall be appointed by the Board based on recommendations from the nominating and corporate governance committee of the Board. The members of the Committee shall serve for such term or terms as the Board may determine or until earlier resignation or death. The Board may remove any member from the Committee at any time with or without cause.

**<u>Purpose</u>**

The purpose of the Committee is to carry out the responsibilities delegated by the Board relating to the review and determination of executive compensation.

**<u>Duties and Responsibilities</u>**

The Committee shall have the following authority and responsibilities:

To review and approve annually the corporate goals and objectives applicable to the compensation of the chief executive officer ("**CEO**"), evaluate at least annually the CEO's performance in light of those goals and objectives, and recommend to the Board for approval the CEO's compensation level based on this evaluation. The CEO cannot be present during any voting or deliberations by the Committee on his or her compensation.

To review and make recommendations to the Board regarding the compensation of all other executive officers.

To review, and make recommendations to the Board regarding, incentive compensation plans and equity-based plans, and where appropriate or required, recommend for approval by the shareholders of the Company, which includes the ability to adopt, amend and terminate such plans. The Committee shall also have the authority to administer the Company's incentive compensation plans and equity-based plans, including designation of the employees to whom the awards are to be granted, the amount of the award or equity to be granted and the terms and conditions applicable to each award or grant, subject to the provisions of each plan.

To review, and make recommendations to the Board regarding, any employment agreements and any severance arrangements or plans, including any benefits to be provided in connection with a change in control, for the CEO and other executive officers, which includes the ability to adopt, amend and terminate such agreements, arrangements or plans.

To review all director compensation and benefits for service on the Board and Board committees at least once a year and to recommend any changes to the Board as necessary.

To oversee, in conjunction with the Board, engagement with shareholders and proxy advisory firms on executive compensation matters.

**<u>Outside Advisors</u>**

The Committee shall have the authority, in its sole discretion, to select, retain and obtain the advice of a compensation consultant as necessary to assist with the execution of its duties and responsibilities as set forth in this Charter. The Committee shall set the compensation, and oversee the work, of the compensation consultant. The Committee shall have the authority, in its sole discretion, to retain and obtain the advice and assistance of outside legal counsel and such other advisors as it deems necessary to fulfill its duties and responsibilities under this Charter. The Committee shall set the compensation, and oversee the work, of its outside legal counsel and other advisors. The Committee shall receive appropriate funding from the Company, as determined by the Committee in its capacity as a committee of the Board, for the payment of compensation to its compensation consultants, outside legal counsel and any other advisors. However, the Committee shall not be required to implement or act consistently with the advice or recommendations of its compensation consultant, legal counsel or other advisor to the compensation committee, and the authority granted in this Charter shall not affect the ability or obligation of the Committee to exercise its own judgment in fulfillment of its duties under this Charter.

In retaining or seeking advice from compensation consultants, outside counsel and other advisors (other than the Company's in-house counsel), the Committee must take into consideration the factors specified in Nasdaq Listing Rule 5605(d)(1)(D). The Committee may retain, or receive advice from, any compensation advisor they prefer, including ones that are not independent, after considering the specified factors. The Committee is not required to assess the independence of any compensation consultant or other advisor that acts in a role limited to consulting on any broad-based plan that does not discriminate in scope, terms or operation in favor of executive officers or directors and that is generally available to all salaried employees or providing information that is not customized for a particular company or that is customized based on parameters that are not developed by the consultant or advisor, and about which the consultant or advisor does not provide advice.

The Committee shall evaluate whether any compensation consultant retained or to be retained by it has any conflict of interest in accordance with Item 407(e)(3)(iv) of Regulation S-K. Any compensation consultant retained by the Committee to assist with its responsibilities relating to executive compensation or director compensation shall not be retained by the Company for any compensation or other human resource matters.

**<u>Structure and Operations</u>**

The Board shall designate a member of the Committee as the chairperson. The Committee shall meet at least two times a year at such times and places as it deems necessary to fulfill its responsibilities. The Committee shall report regularly to the Board regarding its actions and make recommendations to the Board as appropriate. The Committee is governed by the same rules regarding meetings (including meetings in person or by telephone or other similar communications equipment), action without meetings, notice, waiver of notice, and quorum and voting requirements as are applicable to the Board.

The Committee may invite such members of management to its meetings as it deems appropriate. However, the Committee shall meet regularly without such members present, and in all cases the CEO and any other such officers shall not be present at meetings at which their compensation or performance is discussed or determined.

The Committee shall review this Charter at least annually and recommend any proposed changes to the Board for approval.

**<u>Delegation of Authority</u>**

The Committee shall have the authority to delegate any of its responsibilities, along with the authority to take action in relation to such responsibilities, to one or more subcommittees as the Committee may deem appropriate in its sole discretion.

**<u>Performance Evaluation</u>**

The Committee shall conduct an annual evaluation of the performance of its duties under this charter and shall present the results of the evaluation to the Board. The Committee shall conduct this evaluation in such manner as it deems appropriate.

## Exhibit 99.4

**Exhibit 99.4**

**CHARTER OF THE NOMINATING COMMITTEE OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

**<u>Membership</u>**

The Nominating Committee (the "**Committee**") of the board of directors (the "**Board**") of HUHUTECH International Group Inc. (the "**Company**") shall consist of three or more directors. Each member of the Committee shall be independent in accordance with the rules of the Nasdaq Stock Market.

The members of the Committee shall serve for such term or terms as the Board may determine or until earlier resignation or death. The Board may remove any member from the Committee at any time with or without cause.

**<u>Purpose</u>**

The purpose of the Committee is to carry out the responsibilities delegated by the Board relating to the Company's director nominations process and procedures, developing and maintaining the Company's corporate governance policies and any related matters required by the federal securities laws.

**<u>Duties and Responsibilities</u>**

The Committee shall have the following authority and responsibilities:

To identify and screen individuals qualified to become members of the Board, consistent with criteria approved by the Board. The Committee shall consider any director candidates recommended by the Company's shareholders pursuant to the procedures set forth in the Company's described in the Company's proxy statement.

To make recommendations to the Board regarding the selection and approval of the nominees for director to be submitted to a shareholder vote at the annual meeting of shareholders.

To oversee the Company's corporate governance practices and procedures, including identifying best practices and reviewing and recommending to the Board for approval any changes to the documents, policies and procedures in the Company's corporate governance framework, including its certificate of incorporation and by-laws.

To review the Board's committee structure and composition and to make recommendations to the Board regarding the appointment of directors to serve as members of each committee and committee chairmen annually.

If a vacancy on the Board and/or any Board committee occurs, to identify and make recommendations to the Board regarding the selection and approval of candidates to fill such vacancy either by election by shareholders or appointment by the Board.

To develop and recommend to the Board for approval standards for determining whether a director has a relationship with the Company that would impair its independence.

To review and discuss with management disclosure of the Company's corporate governance practices, including information regarding the operations of the Committee and other Board committees, director independence and the director nominations process, and to recommend that this disclosure be, included in the Company's proxy statement or annual report on Form 20-F, as applicable.

To develop and recommend to the Board for approval a Company Code of Business Conduct and Ethics (the "**Code**"), to monitor compliance with the Company's Code, to investigate any alleged breach or violation of the Code, to enforce the provisions of the Code and to review the Code periodically and recommend any changes to the Board.

**<u>Outside Advisors</u>**

The Committee shall have the authority, in its sole discretion, to select, retain and obtain the advice of a director search firm as necessary to assist with the execution of its duties and responsibilities as set forth in this Charter. The Committee shall set the compensation and oversee the work of the director search firm. The Committee shall have the authority, in its sole discretion, to retain and obtain the advice and assistance of outside counsel, an executive search firm and such other advisors as it deems necessary to fulfill its duties and responsibilities under this Charter. The Committee shall set the compensation and oversee the work of its outside counsel, the executive search firm and any other advisors. The Committee shall receive appropriate funding from the Company, as determined by the Committee in its capacity as a committee of the Board, for the payment of compensation to its search consultants, outside counsel and any other advisors.

**<u>Structure and Operations</u>**

The Board shall designate a member of the Committee as the chairperson. The Committee shall meet at least two times a year at such times and places as it deems necessary to fulfill its responsibilities. The Committee shall report regularly to the Board regarding its actions and make recommendations to the Board as appropriate. The Committee is governed by the same rules regarding meetings (including meetings in person or by telephone or other similar communications equipment), action without meetings, notice, waiver of notice, and quorum and voting requirements as are applicable to the Board.

The Committee shall review this Charter at least annually and recommend any proposed changes to the Board for approval.

**<u>Delegation of Authority</u>**

The Committee shall have the authority to delegate any of its responsibilities, along with the authority to take action in relation to such responsibilities, to one or more subcommittees as the Committee may deem appropriate in its sole discretion.

**<u>Performance Evaluation</u>**

The Committee shall conduct an annual evaluation of the performance of its duties under this charter and shall present the results of the evaluation to the Board. The Committee shall conduct this evaluation in such manner as it deems appropriate.

## Exhibit 99.6

**Exhibit 99.6**

March 29, 2023

<u>Via Edgar Correspondence</u>

Mr. Kevin Stertzel

Division of Corporation Finance

Office of Manufacturing

U.S. Securities and Exchange Commission

100 F Street, NE

Washington, D.C., 20549

---

| | |
|:---|:---|
| **Re:** | **HUHUTECH International Group Inc.**<br> **CIK 1945415**<br> **Registration Statement on Form F-1**  |
|  | **Request for Waiver and Representation under Item 8.A.4 of Form 20-F** |

---

Dear Mr. Stertzel:

The undersigned, HUHUTECH International Group Inc., a foreign private issuer organized under the laws of the Cayman Islands (the "Company"), is submitting this letter to the U.S. Securities and Exchange Commission (the "Commission") in connection with the Company's registration statement on Form F-1(the "Registration Statement"), relating to a proposed initial public offering and listing of the Company's ordinary shares in the United States.

The Company has included in the Registration Statement its audited consolidated financial statements, prepared in accordance with accounting principles generally accepted in the United States, as of December 31, 2021 and 2020, and for each of the two fiscal years ended December 31, 2021 and 2020, and unaudited interim consolidated financial statements as of June 30, 2022, and for each of the six-month periods ended June 30, 2022 and 2021.

The Company respectfully requests that the Commission waive the requirement of Item 8.A.4 of Form 20-F, which states that in the case of a company's initial public offering, the registration statement on Form F-1 must contain audited financial statements of a date not older than 12 months from the date of the offering (the "12-Month Requirement"). *See also* Division of Corporation Finance, *Financial Reporting Manual*, Section 6220.3.

The Company is submitting this waiver request pursuant to Instruction 2 to Item 8.A.4 of Form 20-F, which provides that the Commission will waive the 12-Month Requirement "in cases where the company is able to represent adequately to us that it is not required to comply with this requirement in any other jurisdiction outside the United States and that complying with this requirement is impracticable or involves undue hardship." *See also* the 2004 release entitled *International Reporting and Disclosure Issues in the Division of Corporation Finance* (available on the Commission's website at http://www.sec.gov/divisions/corpfin/internatl/cfirdissues1104.htm) by the staff of the Division of Corporation Finance of the Commission at Section III.B.c, in which the staff notes that:

"the instruction indicates that the staff will waive the 12-month requirement where it is not applicable in the registrant's other filing jurisdictions and is impracticable or involves undue hardship. As a result, we expect that the vast majority of IPOs will be subject only to the 15-month rule. The only times that we anticipate audited financial statements will be filed under the 12-month rule are when the registrant must comply with the rule in another jurisdiction, or when those audited financial statements are otherwise readily available."

In connection with this waiver request, the Company represents to the Commission that:

1. The Company is not required by any jurisdiction outside the United States to prepare consolidated financial statements audited under any generally accepted auditing standards for any interim period.

2. Full compliance with Item 8.A.4 of Form 20-F at present is impracticable and involves undue hardship for the Company.

3. The Company does not anticipate that its audited financial statements for the fiscal year ended December 31, 2022 will be available until May 2023.

4. In no event will the Company seek effectiveness of the Registration Statement if its audited financial statements are older than 15 months at the time of the Company's initial public offering.

The Company will file this letter as an exhibit to the Registration Statement pursuant to Instruction 2 to Item 8.A.4 of Form 20-F.

---

| | |
|:---|:---|
|  | Sincerely, |
| | */s/ Yujun Xiao* |
|  | Yujun Xiao, Chief Executive Officer |

---

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

**F-1**

**(Form Type)**

**HUHUTECH International Group Inc.**

**(Exact Name of Registrant as Specified in its Charter)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Title of Class of Securities to be Registered** | **Amount to** <br> **Be Registered** | **Proposed** <br> **Maximum** <br> **Offering** <br> **Price per** <br> **Share** | **Fee Rate** | **Proposed** <br> **Maximum** <br> **Aggregate** <br> **Offering** <br> **Price<sup>(1)</sup>** | **Amount of** <br> **Registration** <br> **Fee<sup>(2)</sup>** |
| Ordinary shares, par value US$0.00001 per share<sup>(3)</sup> | 1000000 | $5.00 | 0.00011020 | $5000000 | $551 |
| Underwriter's warrants<sup>(4)</sup> |  |  |  |  |  |
| Ordinary shares, par value US$0.00001, underlying the underwriter's warrants | 50000 | $5.50 |  | $275000 | $30.305 |
| Total | 1050000 |  |  | $5275000 | $581.305 |

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(1) Estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457(a) under the Securities Act.

(2) Calculated pursuant to Rule 457(o) under the Securities
Act, based on an estimate of the proposed maximum aggregate offering price.

(3) In accordance with Rule 416(a), the Registrant is also
registering an indeterminate number of additional ordinary shares that shall be issuable pursuant to Rule 416 to prevent dilution
resulting from share splits, share dividends or similar transactions.

(4) The Registrant will issue to the underwriter warrants to purchase
a number of ordinary shares equal to an aggregate of 5% of the ordinary shares sold in the offering. The exercise price of the underwriter's
warrants is equal to 110% of the offering price of the ordinary shares offered hereby. The underwriter's warrants are exercisable
at any time, and from time to time, in whole or in part, within 5 years commencing from the effective date of the offering.