# EDGAR Filing Document

**Accession Number:** 0002047036
**File Stem:** 0001193125-25-336153
**Filing Date:** 2025-12
**Character Count:** 1241197
**Document Hash:** 412b58a68527303656f3e3722a52041f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-336153.hdr.sgml**: 20251230

**ACCESSION NUMBER**: 0001193125-25-336153

**CONFORMED SUBMISSION TYPE**: 20FR12B

**PUBLIC DOCUMENT COUNT**: 37

**FILED AS OF DATE**: 20251230

**DATE AS OF CHANGE**: 20251230

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Leoch Energy Inc
- **CENTRAL INDEX KEY:** 0002047036
- **STANDARD INDUSTRIAL CLASSIFICATION:** MISCELLANEOUS ELECTRICAL MACHINERY, EQUIPMENT & SUPPLIES [3690]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20FR12B
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43035
- **FILM NUMBER:** 251611848

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 152 BEACH ROAD
- **STREET 2:** #22-01/04, GATEWAY, EAST SINGAPORE
- **CITY:** SINGAPORE
- **PROVINCE COUNTRY:** U0
- **BUSINESS PHONE:** 65 6970 0908

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** 152 BEACH ROAD
- **STREET 2:** #22-01/04, GATEWAY, EAST SINGAPORE
- **CITY:** SINGAPORE
- **PROVINCE COUNTRY:** U0

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on December 30, 2025** 

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**FORM 20-F** 

**(Mark One)** 

☒ **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**OR** 

☐ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the fiscal year ended<u> </u> <u> </u>.** 

**OR** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**OR** 

☐ **SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**Date of event requiring this shell company report<u> </u> .** 

**For the transition period from<u> </u> to .** 

**Commission file number .** 

**Leoch Energy Inc** 

**(Exact name of Registrant as specified in its charter)** 

**N/A** 

**(Translation of Registrant's name into English)** 

**Cayman Islands** 

**(Jurisdiction of incorporation or organization)** 

---

| | |
|:---|:---|
| **152 Beach Road**<br> **#22-01/04 Gateway East**<br> **Singapore 189721**<br> **(Address of principal executive offices)** | **Dr. Li DONG**<br> **+65 6970 0908**<br> **152 Beach Road**<br> **#22-01/04 Gateway East**<br> **Singapore 189721**<br> **(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)** |

---

***Copies to:***

**Li He, Esq.** 

**Davis Polk & Wardwell LLP** 

**c/o 10 Floor, The Hong Kong Club** 

**Building 3A Chater Road** 

**Central, Hong Kong** 

**+852 2533-3300** 

**Securities registered or to be registered pursuant to Section 12(b) of the Act:** 

---

| | |
|:---|:---|
| **Title of each class** | **Name of each exchange on which registered** |
| **Ordinary Shares, par value US$0.000005 per share** | **The Nasdaq Stock Market LLC** |

---

**Securities for which there is a reporting obligation pursuant to Section 12(g) of the Act.** 

**None** 

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.** 

**None** 

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report.

Not applicable

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No ☐

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | 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 period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange 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.

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☒ International Financial Reporting Standards as issued by the International Accounting Standards Board ☐ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☐

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS) Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐

------

##### [**Table of Contents**](#toc)
**TABLE OF CONTENTS** 

---

| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  [Introduction and Use of Certain Terms](#tx760217_1) |  | iii |
|  [Market Information](#tx760217_2) |  | iv |
|  [Special Note About Forward-Looking Statements](#tx760217_4) |  | v |
|  [Summary](#tx760217_5) |  | 1 |
| PART I | PART I | PART I |
|  [ITEM 1. Identity of Directors, Senior Management and Advisers](#tx760217_6) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [1.A. Directors and Senior Management](#tx760217_7) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [1.B. Advisers](#tx760217_8) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [1.C. Auditors](#tx760217_9) |  | 15 |
|  [ITEM 2. Offer Statistics and Expected Timetable](#tx760217_10) |  | 15 |
|  [ITEM 3. Key Information](#tx760217_11) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [3.A. Selected Financial Data](#tx760217_12) |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [3.B. Capitalization and Indebtedness](#tx760217_13) |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [3.C. Reasons for the Offer and Use of Proceeds](#tx760217_14) |  | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [3.D. Risk Factors](#tx760217_15) |  | 17 |
|  [ITEM 4. Information on Leoch Technology](#tx760217_16) |  | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [4.A. History and Development of Leoch Technology](#tx760217_17) |  | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [4.B. Business Overview](#tx760217_18) |  | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [4.C. Organizational Structure](#tx760217_19) |  | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [4.D. Property, Plants and Equipment](#tx760217_20) |  | 81 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [4.E. Unresolved Staff Comments](#tx760217_21) |  | 82 |
|  [ITEM 5. Operating and Financial Review and Prospects](#tx760217_22) |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [5.A. Operating Results](#tx760217_23) |  | 82 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [5.B. Liquidity and Capital Resources](#tx760217_24) |  | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [5.C. Research and Development, Patents and Licenses, Etc.](#tx760217_25) |  | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [5.D. Trend Information](#tx760217_26) |  | 96 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [5.E. Critical Accounting Estimates](#tx760217_27) |  | 96 |
|  [ITEM 6. Directors, Senior Management and Employees](#tx760217_29) |  | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.A. Directors and Senior Management](#tx760217_30) |  | 97 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.B. Compensation](#tx760217_31) |  | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.C. Board Practices](#tx760217_32) |  | 100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.D. Employees](#tx760217_33) |  | 104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.E. Share Ownership](#tx760217_34) |  | 105 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [6.F. Disclosure of A Registrant's Action to Recover Erroneously Awarded Compensation](#tx760217_34a) |  | 106 |
|  [ITEM 7. Major Shareholders and Related Party Transactions](#tx760217_35) |  | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [7.A. Major Shareholders](#tx760217_36) |  | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [7.B. Related Party Transactions](#tx760217_37) |  | 106 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [7.C. Interests of Experts and Counsel](#tx760217_38) |  | 113 |
|  [ITEM 8. Financial Information](#tx760217_39) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [8.A. Combined Statements and Other Financial Information](#tx760217_40) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [8.B. Significant Changes](#tx760217_41) |  | 113 |
|  [ITEM 9. The Offer and Listing](#tx760217_42) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.A. Offer and Listing Details](#tx760217_43) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.B. Plan of Distribution](#tx760217_44) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.C. Markets](#tx760217_45) |  | 113 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.D. Selling Shareholders](#tx760217_46) |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.E. Dilution](#tx760217_47) |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [9.F. Expenses of the Issue](#tx760217_48) |  | 114 |

---

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

---

| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  [ITEM 10. Additional Information](#tx760217_49) |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.A. Share Capital](#tx760217_50) |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.B. Memorandum and Articles of Association](#tx760217_51) |  | 114 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.C. Material Contracts](#tx760217_52) |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.D. Exchange Controls](#tx760217_53) |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.E. Taxation](#tx760217_54) |  | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.F. Dividends and Paying Agents](#tx760217_55) |  | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.G. Statement by Experts](#tx760217_56) |  | 131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.H. Documents on Display](#tx760217_57) |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.I. Subsidiary Information](#tx760217_58) |  | 132 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [10.J. Annual Report to Security Holders](#tx760217_58a) |  | 132 |
|  [ITEM 11. Quantitative and Qualitative Disclosures About Market Risk](#tx760217_59) |  | 132 |
|  [ITEM 12. Description of Securities Other Than Equity Securities](#tx760217_60) |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [12.A. Debt Securities](#tx760217_61) |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [12.B. Warrants and Rights](#tx760217_62) |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [12.C. Other Securities](#tx760217_63) |  | 133 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [12.D. American Depositary Shares](#tx760217_64) |  | 133 |
| PART II | PART II | PART II |
|  [ITEM 13. Defaults, Dividend Arrearages and Delinquencies](#tx760217_65) |  | 134 |
|  [ITEM 14. Material Modifications to the Rights of Security Holders and Use of Proceeds](#tx760217_66) |  | 134 |
|  [ITEM 15. Controls and Procedures](#tx760217_67) |  | 134 |
|  [ITEM 16. \[Reserved\]](#tx760217_68) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.A. Audit Committee and Financial Expert](#tx760217_69) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.B. Code of Ethics](#tx760217_70) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.C. Principal Accountant Fees and Services](#tx760217_71) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.D. Exemptions From the Listing Standards for Audit Committees](#tx760217_72) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#tx760217_73) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.F. Change in Registrant's Certifying Accountant](#tx760217_74) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.G. Corporate Governance](#tx760217_75) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.H. Mine Safety Disclosure](#tx760217_76) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#tx760217_76a) |  | 134 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.J. Insider trading policies](#tx760217_76b) |  | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [16.K. Cybersecurity](#tx760217_76c) |  | 135 |
| PART III | PART III | PART III |
|  [ITEM 17. Financial Statements](#tx760217_77) |  | 136 |
|  [ITEM 18. Financial Statements](#tx760217_78) |  | 136 |
|  [ITEM 19. Exhibits](#tx760217_79) |  | 136 |

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##### [**Table of Contents**](#toc)
**INTRODUCTION AND USE OF CERTAIN TERMS** 

We have prepared this registration statement using a number of conventions, which you should consider when reading the information contained herein. In this registration statement, "we," "us," "our," "our company" and "Leoch Energy" shall refer to Leoch Energy Inc and the Leoch Energy Business (defined below) collectively, as the context may require.

We prepare our combined and consolidated financial statements expressed in U.S. dollars. Our combined and consolidated financial statements responsive to Item 17 of this Form 20-F are prepared in accordance with generally accepted accounting principles in the United States ("US GAAP").

We have prepared this registration statement to register our shares under the Securities Exchange Act of 1934 (the "Exchange Act") in connection with the trading of our shares on the Nasdaq Capital Market ("NASDAQ"). We were formed in July 2024 in connection a the spin-off of the following businesses that are currently held by Leoch International Technology Limited ("Leoch Technology") (collectively, the "Leoch Energy Business"), which is Leoch Technology's battery business in global markets, other than Chinese Mainland, Hong Kong and Macau (the "Global Markets").

Additionally, this registration statement uses the following conventions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "separation" shall refer to the transaction in which Leoch Technology will contribute
certain operations and assets of its business unit in Global Markets to us, including its interests in each of subsidiary of Leoch Energy,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "distribution" shall refer to the transaction in which Leoch Technology will spin off Leoch Energy
through a pro rata distribution to Leoch Technology shareholders of 100% of our shares held by Leoch Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "spin-off" refers collectively to the separation and the
distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "OEM" refers to original equipment manufacturer, a company that produces parts or vehicles that are
either used in the assembly of new vehicles or sold under the vehicle manufacturer's brand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Hong Kong Listing Rules" refers to the Rules Governing the Listing of Securities on the Stock
Exchange of Hong Kong (as amended from time to time).

Unless otherwise indicated or required by the context, in this registration statement, our disclosure assumes that the consummation of the spin-off has occurred. Although we did not acquire each of our businesses until shortly before the submission of this registration statement, the operating and other statistical information with respect to each of our businesses is presented as of June 30, 2025, unless otherwise indicated, as if we owned such businesses as of such date.

In connection with the separation, Leoch Technology will grant to us the exclusive rights to develop, produce and sell products under the brands of ![LOGO](g760217g33l51.jpg) , ![LOGO](g760217g00m93.jpg) and ![LOGO](g760217g01a30.jpg) in the Global Markets.

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##### [**Table of Contents**](#toc)
**MARKET INFORMATION** 

This Form 20-F contains certain industry and market data that were derived from an industry report commissioned by us and prepared by Frost & Sullivan, an independent research firm, regarding our industry and our market position globally. This Form 20-F also contains other industry and market data, including market sizing estimates, growth and other projections and information regarding our competitive position, prepared by our management on the basis of such industry sources and our management's knowledge of and experience in the industry and markets in which we operate (including management's estimates and assumptions relating to such industry and markets based on that knowledge). Our management has developed its knowledge of such industry and markets through its experience and participation in these markets.

Forecasts, projections and other forward-looking information obtained from these sources involve risks and uncertainties and are subject to change based on various factors, including those discussed in the section "Special Note About Forward-Looking Statements" below. You should not place undue reliance on these statements.

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**SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS** 

This Form 20-F contains certain "forward-looking statements" that involve risks and uncertainties. Forward-looking statements are statements that do not represent historical facts and the assumptions underlying such statements. We use words such as "anticipate," "believe," "continue," "could," "estimate," "potential," "expect," "intend," "may," "will," "would," "should," "plan," "predict," "project," "outlook" and similar expressions to identify forward-looking statements. Forward-looking statements in this Form 20-F include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain and strengthen our brands to generate and maintain ongoing demand for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to commercialize a continuing stream of new products and line extensions that create demand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations and plans for short- and long-term strategy, including our anticipated areas of focus and
investment, market expansion, product and technology focus, and projected growth and profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic conditions and the level of markets in the electric vehicle, urbanization, industrialization,
and renewable energy sectors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to expand into additional geographic markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain product quality and product performance at an acceptable cost;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to compete with existing and new competitors in our Global Markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• problems with, or loss of, our supply chain or suppliers, or an inability to obtain raw materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks associated with doing business globally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inflation, changes in the cost or availability of raw materials, energy, transportation and other necessary
supplies and services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to hire, integrate and retain highly skilled personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to maintain, protect and enhance our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to comply with ongoing regulatory requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to achieve some or all of the anticipated benefits of the separation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to securely maintain consumer and other third-party data;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectation that the spin-off takes place as contemplated
or at all;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our expectations regarding the potential outcome, or financial or other impact on us or any of our businesses of the spin-off, or regarding potential future sales or earnings of us or any of our businesses or potential shareholder returns; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other risks and uncertainties described under "Risk Factors."

This list of factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this registration statement. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. There can be no guarantee that: (i) we will be able to realize any of the potential strategic benefits or opportunities as a result of the spin-off; (ii) shareholders will achieve any particular level of shareholder returns; (iii) we, or any of our businesses, will be commercially successful in the future, or achieve any particular credit rating or financial results; or (iv) the spin-off will be successful.

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We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us 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 registration statement, and our future levels of activity and performance, may not occur and actual results could differ materially and adversely from those described or implied in the forward-looking statements. As a result, you should not regard any of these forward-looking statements as a representation or warranty by us or any other person or place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

In addition, statements that contain "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this registration statement. While we believe that this information provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements.

You should read this registration statement and the documents that we reference and have filed as exhibits to in this Form 20-F completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by the cautionary statements contained in this section and elsewhere in this registration statement.

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**SUMMARY** 

This summary highlights selected information from this Form 20-F and provides an overview of our company, our separation from Leoch Technology and the distribution by Leoch Technology of our shares to our shareholders. For a more complete understanding of our business and the spin-off, you should read this entire Form 20-F carefully, particularly the discussion under "Item 3. Key Information—3.D. Risk Factors" of this Form 20-F and our combined financial statements and the notes to those financial statements appearing elsewhere in this Form 20-F.

**Our Mission** 

We strive to become a world-class energy management and power solution provider.

**Overview** 

We are a global energy management and power solution company. We offer comprehensive energy management and power solutions including Battery Management System (BMS), Energy Storage Systems (ESS), AI and Internet-of-things (IOT), and a wide range of batteries for applications such as data centers (IDCs), and AI data centers (AIDCs), telecommunication base station, automobiles and motorcycles, low-speed electric vehicle, as well as residential, commercial and industrial (C&I), off-grid, power grid and renewable energy users. Additionally, we have broadened our product portfolio by developing Energy Management System (EMS) and Remote Maintenance System (RMS) in our innovation center in Singapore. We have a comprehensive offerings of more than 2,800 battery products encompassing UPS & network power battery, start, lighting and ignition battery (SLI battery), motive power battery and ESS batteries, among all global battery manufacturers. We are currently a wholly-owned subsidiary of Hong Kong-listed company Leoch Technology. After the spin-off, we will operate as an independent company, delivering batteries, ESS, IOT, EMS and various power solutions to customers and distributors in the Global Markets. Meanwhile, Leoch Technology will continue to serve customers and distributors within Chinese Mainland, Hong Kong and Macau.

Our development has always been in line with market demand. The development of global artificial intelligence has promoted the development and construction of data centers, leading to an increase in the UPS market for data centers, additionally, the number of 5G base stations continues to increase, driving the growth of demand for network power supplies. According to Frost & Sullivan, from 2020 to 2024, the market size of lead-acid network power batteries increased from US$8.9 billion to US$11.4 billion, and is expected to reach US$13.9 billion by 2029, with a CAGR of 5.2% from 2024 to 2029. In recent years, lithium-ion batteries have experienced rapid growth and lithium Battery Energy Storage System (BESS) has become the fastest-growing segment. The global lithium BESS market surged from US$3.4 billion in 2020 to US$43.9 billion in 2024, reflecting a CAGR of 89.9%. Looking ahead, we expect the global lithium BESS market to maintain a robust growth trajectory in the long term. The global lithium BESS market is projected to maintain its rapid growth, reaching US$128.6 billion by 2029, with a CAGR of 24.0% from 2024 to 2029, according to Frost & Sullivan.

We are dedicated to improving our products by refining formulations, optimizing structural designs, advancing production techniques, and upgrading manufacturing equipment. Additionally, we work closely with our customers to develop tailored solutions that address their specific requirements. Our products are renowned for their superior quality and performance, making them challenging for competitors to reach. For instances,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have enhanced the cycle life of our LDC motive power batteries by incorporating advanced deep-cycle AGM and
GEL technologies, achieving a cycle life that is two times the IEC standard; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for ESS, we have launched our dual UL (1973, 9540A) and IEC-certified (62619, 63056, 61000, 62477, 62933) liquid-cooled container ESS with a 5MWh capacity within a single 20-foot container, along with an all-in-one containerized ESS that integrates PCS inverters within the same unit.

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Additionally, our I&C ESS has obtained IEC62619 certification with hybrid PCS inverters complying to multiple country grid regulations, with optional features such as solar integration, blackstart and an on/off-grid switch within the all-in-one cabinet design.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for UPS especially smart energy applications in AIDC, we have launched our 6C high power density (maximum 600KW
for 5-7 mins discharge), on a highly compact design (600mm\*1000\*2200 WDH standard cabinet) saving space by more than 30%, and highest fire safety compliance with full UL9540 ready, on high quality LFP 6C cell and AI BMS for thermal runway management
and early warning detection

Our products' outstanding performance not only meets customer needs but also earns their lasting trust, as we expand beyond batteries into energy and sustainability solutions for the present and future. We have cultivated a high-quality and diverse customer base, serving more than 3,200 customers as of June 30, 2025. With our extensive global sales network, our products reached 160 countries through 20 sales companies, with more than 340 dedicated sales and pre- and post-support employees. We are a trusted power solution provider serving world's top IDC infrastructure solution providers, telecommunication operators and automobile original equipment manufacturers, as well as commercial, industrial, and city infrastructure clients and service providers. These industry leaders, particularly in IDC, telecommunications, and critical urban infrastructure, uphold stringent certification and cybersecurity compliance standards, creating high entry barriers for new suppliers—especially battery, ESS, and energy companies from regional markets seeking to expand into international markets. Our established role as a long-term partner to these global organizations is a clear indication of the superior quality and reliability of our products and services. This, in turn, reinforces ****our customer relationships in the long term.

Our global manufacturing network consists of 6 state-of-the-art manufacturing facilities located in Vietnam, Malaysia, India and Mexico, with three new production plants under construction. Our manufacturing expertise is driven by a team of highly skilled professionals from the globe in key leadership roles, including managers and technical supports. With extensive industry experience, they bring deep technical knowledge and engineering excellence, leveraging top-tier technology to enhance our manufacturing capabilities and drive innovation. We have continuously invested in and refined our facilities and manufacturing techniques over time, enabling us to optimize our production process and deliver best-in-class products that meet our clients' demands. Acknowledging our commitment to quality, a leading global automobile manufacturer has awarded us the Preferred Quality Status, while two of the global top energy solution companies have consistently awarded us as their best global battery supplier over the years, which are prestigious designations reserved for top-tier suppliers who excel in meeting a comprehensive set of quality and logistical standards. Additionally, we are deeply committed to ESG principles and sustainable growth, ensuring our innovations and operations contribute to a greener and more responsible future.

The following table sets forth our revenue in the periods indicated and based on the geographic locations of our customers and their percentage of total revenue.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2023** | **2023** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** |
|  | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** |
|  | | | | | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
|  | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** |
|  Americas | 295460 | 42.5 | 353013 | 40.6 | 180991 | 45.5 | 195138 | 40.2 |
|  Asia-Pacific (excluding Chinese Mainland, Hong Kong and Macau) | 143207 | 20.6 | 174136 | 20.0 | 80593 | 20.2 | 88211 | 18.2 |
|  EMEA and others | 256317 | 36.9 | 343192 | 39.4 | 136647 | 34.3 | 201710 | 41.6 |
|  **TOTAL** | **694984** | **100.0** | **870341** | **100.0** | **398231** | **100.0** | **485059** | **100.0** |

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**Our Competitive Strengths** 

We believe the following strengths of our business distinguish us from our competitors, enhance our leadership position in our industry and position us to capitalize on the expected continued growth in our market:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Extensive global sales and distribution network with localized operations for in-depth customer service;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Strong and long-term relationship with industry leading customers to deliver power solutions tackling key
challenges; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding global production capabilities for future growth.

**Our Growth Strategies** 

We plan to implement the following strategies to pursue our continued growth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reinforcing our OE service leadership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding aftermarket services through a strong distribution network;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Offering comprehensive power solutions with our strong technology portfolio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Continuing to invest in R&D efforts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Expanding global production footprint to support future growth

For more information on our business, see Item 4. "Information on the Company—4.B. Business Overview."

**Background and Reasons for the Spin-Off** 

Leoch Technology has been steadily expanding its international footprint by setting up production bases, sales networks, and R&D center in Global Markets. With the expansion in different regional markets, Leoch Technology has noticed the differences in customer demands, certification standards, regulatory environments, and so on. To enhance strategic focus and improve operational efficiency, Leoch Technology is committed to aligning its organizational structure with the specific needs of each market. The management structures of the Company's Chinese mainland, Hong Kong and Macau business and Global Markets businesses have gradually become independent. The business units in different regions will optimize product development, market expansion, and compliance management respectively based on regional characteristics. This measure will also enable each regional business to focus on the regulatory requirements and policy developments in its respective jurisdiction.

In the first half of 2024, due to the growth demand in Global Markets and the mature of internal organization structure, the revenue generate from Global Markets business of Leoch Technology has grown rapidly, and the management sees a strong potential in the future. In order to further delve into different markets, Leoch Technology has initiated the business spin-off plan and has made full preparations for the listing.

After evaluating the market positions of its battery products and related offerings, including network power batteries, SLI batteries, motive power batteries, ESS solutions across different regions around the world and recycled lead in Chinese Mainland, Leoch Technology recognized the need for region-specific strategies to succeed in different global markets. As a result, Leoch Technology determined that the most effective approach

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for driving global growth and strengthening its presence in local markets is to separate its operations into two distinct markets: (i) Chinese Mainland, Hong Kong and Macau; and (ii) the Global Markets. The decision to list the Global Markets business is based on its international orientation, diversified revenue structure, and the strategic importance of expanding its global presence. The U.S. stock market is a global market. Leoch Technology believes that listing of its Global Markets business on the U.S. stock market can help introduce international investors for its Global Market business, enhance the Company's global visibility and reflect the intrinsic value of the Global Market business. As an independent listed entity, Leoch Energy can improve its corporate governance and boost the development of its business. At the same time, after the listing, Leoch Energy can leverage the resources of the global market to expand its financing channels and broaden the strategic business opportunities, thus further developing its Global Market business.

Meanwhile, the Hong Kong market is closer to Leoch Technology's Chinese mainland, Hong Kong and Macau business, and investors there are more familiar with the market environment, regulatory system, and business development.

Therefore, Leoch Technology has decided to list its Global Market business in the U.S. and retain the listing of its Chinese mainland, Hong Kong and Macau business in Hong Kong market.

As two separate publicly traded entities, Leoch Technology and Leoch Energy will be better equipped to seize significant growth opportunities and allocate resources effectively to their respective geographic markets and strategic objectives. Leoch Technology Board believes that the separation and distribution is commercially beneficial to Leoch Technology and Leoch Energy and in the interest of the Leoch Technology Shareholders as a whole as it expects the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation would strengthen the operational management efficiencies of both Leoch Technology and Leoch
Energy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation would enable Leoch Technology and Leoch Energy to obtain reasonable valuation in the longer term
and maximize the interests of all shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation and distribution would create two independent businesses, Leoch Technology and Leoch Energy with
enhanced geographic focus, each of which the Leoch Technology Board believes is well positioned for continued growth and market share capture in respective areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation and distribution would enable shareholders and investors to assess the investment propositions of
each business of Leoch Technology and Leoch Energy individually and freely select whether to continue to participate in both businesses or adjust their investment exposure, so as to unlock and enhance the market value of both Leoch Technology and
Leoch Energy.

Neither we nor Leoch Technology can assure you that, following the spin-off, any of the benefits described above or otherwise described in this Form 20-F will be realized to the extent or at the time anticipated or at all. See also "Item 3. Key Information—3.D. Risk Factors."

Following the completion of the separation and distribution, Leoch Energy will continue to carry on the R&D, production, marketing and distribution of battery products under the Leoch brand in the Global Markets. Meanwhile, Leoch Technology continues to primarily engage in the R&D, production, marketing and distribution of battery products under the Leoch brand in Chinese Mainland, Hong Kong and Macau.

Leoch Technology historically manufactured Leoch branded various battery products, which we then distribute in the APAC (excluding Chinese Mainland, Hong Kong and Macau), American and EMEA markets. Following the completion of the separation and distribution, we will continue procuring a certain portion of finished battery products from Leoch Technology and pay Leoch Technology purchase prices with an

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arm's-length markup. This arrangement will be transitional as we progressively take over and establish our own manufacturing facilities.

As of the date of this Form 20-F, Leoch Technology intends to effect the separation and distribution; however, Leoch Technology has no obligation to consummate the separation and distribution by any specified date or at all. If pursued, the separation and distribution are subject to various conditions, including receipt of any necessary regulatory or other approvals, such as approval from the Stock Exchange of Hong Kong, which Leoch Technology has obtained, and approval from Leoch Technology shareholders. If the conditions to the separation and distribution are not satisfied, Leoch Technology may decide to waive one or more of these conditions and consummate the separation and distribution.

Leoch Technology and the Leoch Technology Board also considered a number of potentially negative factors in their initial evaluation of the potential spin-off, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disruptions to the business as a result of the separation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased significance of certain costs and liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• one-time costs of the spin-off or ongoing costs after the spin-off;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential inability to realize anticipated benefits of the spin-off; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our covenants and obligations pursuant to the agreements entered into in connection with the separation with
Leoch Technology.

Leoch Technology and the Leoch Technology Board believe that the anticipated benefits of the spin-off outweigh these factors. However, the completion of the spin-off remains subject to the satisfaction, or waiver by the Leoch Technology Board and the shareholders of Leoch Technology, of a number of conditions. We describe these benefits and certain other factors considered by Leoch Technology and the Leoch Technology Board, as well as conditions to the closing, in greater detail under "Item 4. Information on Leoch Technology—4.A. History and Development of Leoch Technology—The Spin-Off" and the Leoch Technology Circular, a copy of which is filed as Exhibit 15.4 to this registration statement.

**Summary Risk Factors** 

Our business is subject to a number of risks and uncertainties, as more fully described under "Risk Factors" in this registration statement. These risks could materially and adversely impact our business, financial condition and results of operations, which could cause the trading price of our ordinary shares to decline. Some of these risks include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we face intense competition in our major markets and may be pressured to remain competitive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant portion of our revenue is derived from lead-acid batteries and lithium batteries. If the lead-acid
battery or lithium battery market does not grow at the rate we expect or at all, or if lead-acid or lithium battery technology became less favored by the market, our business, profitability and future prospects may be materially and adversely
affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if we are unable to successfully develop new technology or new products, our business, results of operations and
prospects may be adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if our strategic focus on the ESS sector does not achieve the anticipated results, our growth prospects,
business, and results of operations could be materially and adversely affected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in the prices of raw materials could materially and adversely affect our results of operations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may experience difficulty in collecting our receivables from our customers and our liquidity and financial
condition would be negatively impacted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to maintain and predict inventory levels in line with the level of demand for our products could cause us
to face excess inventory risks, holding costs and costs of purchase, any of which could have a material adverse effect on our business, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to risks and uncertainties associated with our investments in futures and options at fair value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in exchange rates could have a material and adverse effect on our results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations of interest rates could negatively impact our performance and business expansion plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• from time to time, we may be involved in litigation, regulatory actions or government investigations and
inquiries, which could have an adverse impact on our profitability and combined financial position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recent and potential tariffs imposed by the U.S. government or a global trade war could increase costs and
inhibit future sales of our products, which could have a material adverse effect on our business, financial condition and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to governmental export and import controls, customs and economic sanction laws that could subject
us to liability and impair our ability to compete in international markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not successfully obtain and maintain the necessary regulatory permits or approvals for the manufacture and
sale of our products in certain markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are subject to environmental and safety risks and requirements relating to environmental and safety
regulations and environmental remediation matters which could adversely affect our business, results of operation and reputation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the spin-off may not be successful, and as an independent publicly traded
company, we will not enjoy the same benefits that we did as a subsidiary of Leoch Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we may not achieve some or all of the anticipated benefits of the spin-off, and the spin-off may adversely affect our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our historical financial information is not necessarily representative of the results we would have achieved as a
standalone public company and may not be a reliable indicator of our future results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation and distribution are subject to a number of conditions. The transactions may not take place, may
be delayed or may not take place in the manner currently anticipated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• conflicts of interest may arise because some of our directors have substantial interest Leoch Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the price of our shares after the spin-off may be volatile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if securities or industry analysts do not publish research or publish inaccurate or unfavorable research about
our business, our share price and trading volume could decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• techniques employed by short sellers may drive down the market price of our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if a substantial number of our shares become available for sale and are sold in a short period of time, the
market price of our shares could decline;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the combined post-spin-off value of our shares and the Leoch Technology
shares may not equal or exceed the aggregate pre-spin-off value of the Leoch Technology shares and our shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other factors described under "Item 3. Key Information—3.D. Risk Factors" section of this Form 20-F.

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**Corporate Information** 

We were incorporated as an exempted company in the Cayman Islands on July 19, 2024. Our principal executive offices are located at 152 Beach Road, Gateway East #22-01/04, Singapore 189721. Our telephone number is +65 6970 0908. We have included our website address in this Form 20-F solely as an inactive textual reference.

Leoch Technology, an exempted company incorporated in the Cayman Islands, is our sole shareholder immediately prior to the completion of the separation and distribution. For more information on our relationship with Leoch Technology, see "Item 4. Information on the Company—4.A. History and Development of the Company—The Spin-Off," "Item 6. Directors, Senior Management and Employees—Item 6.E. Share Ownership" and "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions—Related Party Transactions with Leoch Technology."

**Implications of Being a Foreign Private Issuer, Being Treated as an Emerging Growth Company and Being a Controlled Company** 

***Foreign Private Issuer***

Upon consummation of the spin-off, we will report under the Exchange Act as a non-U.S. company with foreign private issuer ("FPI") status. As long as we qualify as an FPI under the Exchange Act, we will be exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including:

&nbsp;&nbsp;&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;&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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the rules under the Exchange Act requiring the filing with the Securities and Exchange Commission
("SEC") of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K, upon the occurrence of specified significant events.

Notwithstanding these exemptions, we will file with the SEC, within four months after the end of each fiscal year, or such applicable time as required by the SEC, an annual report on Form 20-F containing financial statements audited by an independent registered public accounting firm.

We may take advantage of these exemptions until such time as we are no longer an FPI. We would cease to be an FPI at such time as more than 50% of our outstanding voting securities are held by U.S. residents and any of the following three circumstances applies: (i) the majority of our executive officers or directors are U.S. citizens or residents, (ii) more than 50% of our assets are located in the United States or (iii) our business is administered principally in the United States.

***Emerging Growth Company***

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"), because we qualified as an emerging growth company at the time we first confidentially submitted this registration statement on Form 20-F to the SEC. Accordingly, we are eligible to comply with reduced disclosure requirements applicable to emerging growth companies until we cease to be an "emerging growth company." These reduced disclosure requirements and exemptions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that we no longer qualify as a foreign private issuer ("FPI"), reduced disclosure
obligations regarding executive compensation in this registration statement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an exemption from compliance with the requirement that the Public Company Accounting Oversight Board has adopted
regarding a supplement to the auditor's report providing additional information about the audit and the financial statements for this registration statement.

As a result, the information contained in this Form 20-F may be different from the information you receive from other public companies in which you hold shares.

We continue to be an emerging growth company for the first five fiscal years after we complete the spin-off, unless one of the following occurs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our total annual gross revenues are US$1.235 billion or more,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have issued more than US$1 billion in non-convertible debt in the
past three years, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we become a "large accelerated filer," as defined in Exchange Act Rule 12b-2.

Both FPIs and emerging growth companies also are exempt from certain more stringent executive compensation disclosure rules. Thus, even if we no longer qualify as an emerging growth company, but remain an FPI, we will continue to be exempt from the more stringent compensation disclosures required of companies that are neither an emerging growth company nor an FPI.

***Controlled Company***

Upon the completion of the separation and distribution, Dr. Li Dong, the Chairman of our Board, will hold or have the ability to control more than 70% of the voting power of our outstanding share capital. As of December 16, 2025, Dr. Dong holds or controls 74.1% of Leoch Technology's outstanding share capital through Master Alliance Investment Limited, which owns 74.1% of Leoch Technology's outstanding share capital.

As a result, upon the completion of the separation and distribution, we will be a "controlled company" as defined under the NASDAQ corporate governance rules. As long as Dr. Dong continues to hold or has the ability to control a majority of the voting power of our outstanding shares, he will generally be able to control significant corporate activities, including the appointment of our directors and approval of significant corporate transactions. Dr. Dong's controlling interest may discourage or prevent a change in control of our company that other holders of our ordinary shares may favor. We have currently elected not to avail ourselves of any "controlled company" exemptions. See "Item 3. Key Information—3.D. Risk Factors—Risks Related to Ownership of Our Ordinary Shares—Immediately following the completion of the separation and distribution, Dr. Dong will be a substantial shareholder of us and will have influence over matters outside the ordinary course of our business requiring a shareholder vote, which may limit your ability to influence our actions" and "Risk Factors—Risks Related to Ownership of Our Ordinary Shares—We will be a "controlled company" within the meaning of the rules of NASDAQ and, as a result, will qualify for exemptions from certain corporate governance requirements. Although we do not intend to rely on these exemptions at this time, we may do so in the future and you may not have the same protections afforded to shareholders of companies that are subject to such requirements."

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***Immediately Prior to the Distribution***

![LOGO](g760217g15a35.jpg)

***Immediately After the Distribution***

![LOGO](g760217g15b45.jpg)

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**Summary Historical Combined and Consolidated Financial Information** 

The following tables summarize our combined financial and operating information. We have derived our summary combined statements of income information and combined statements of cash flows information for the years ended December 31, 2024 and the summary combined balance sheet information as of December 31, 2024 from our audited combined financial statements included elsewhere in this registration statement. The unaudited combined and consolidated income and cashflow information for the six months ended June 30, 2025 and the unaudited summary consolidated balance sheet information as of June 30, 2025 are derived from our unaudited interim condensed combined and consolidated financial statements included elsewhere in this Form 20-F. In our opinion, our condensed combined financial statements reflect, in our opinion, all adjustments of a normal, recurring nature that are necessary for the fair presentation of our financial information set forth in those statements. Our historical results are not necessarily indicative of the results that may be expected in the future.

We prepare our combined and consolidated financial statements in accordance with U.S. GAAP.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | $— | $— | $— | $— |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | ***(*** ***US$ in thousands, except for shares<br>and per share data*** ***)*** | ***(*** ***US$ in thousands, except for shares<br>and per share data*** ***)*** | ***(*** ***US$ in thousands, except for shares<br>and per share data*** ***)*** | ***(*** ***US$ in thousands, except for shares<br>and per share data*** ***)*** |
|  **Statement of Operations Data:** |  |  |  |  |
|  Revenue | 694984 | 870341 | 398231 | 485059 |
|  Gross profit | 102107 | 121001 | 59820 | 61630 |
|  Income from operations | 53247 | 65517 | 33772 | 27337 |
|  Income before income taxes | 49341 | 53311 | 24257 | 29446 |
|  Net income | 40269 | 37214 | 16092 | 18597 |
|  Net income attributable to Leoch Energy's shareholders | 38907 | 34482 | 15494 | 21219 |
|  Pro forma earnings per share, basic and diluted  |  |  | 15494 | 21219 |
|  Number of shares expected to be outstanding immediately after the distribution |  |  | 1 | 1 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | $— | $— | $— | $— |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | ***(US$ in thousands)*** | ***(US$ in thousands)*** | ***(US$ in thousands)*** | ***(US$ in thousands)*** |
|  **Statements of Cash Flows Data:** |  |  |  |  |
|  Net cash provided by/(used in) operating activities | 33292 | (3614) | (73349) | 103786 |
|  Net cash (used in)/provided by investing activities | (83786) | (30271) | 20347 | (33557) |
|  Net cash provided by/(used in) financing activities | 60882 | 27397 | 43824 | (67040) |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,<br>2023** | **As of December 31,<br>2024** | **As of June 30,<br>2025** |
|  | | | **(Unaudited)** |
|  | ***(US$ in thousands)***  | ***(US$ in thousands)***  | ***(US$ in thousands)***  |
|  **Balance Sheet Data:** |  |  |  |
|  Cash and cash equivalents | 31499 | 22126 | 24053 |
|  Total assets | 664578 | 745140 | 681917 |
|  Total liabilities | 464844 | 484957 | 542465 |
|  Total shareholders' equity | 199734 | 260183 | 139452 |

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##### [**Table of Contents**](#toc)
**The Spin-Off** 

**Overview** 

Leoch Technology has been steadily expanding its international footprint by setting up production bases, sales networks, and R&D center in Global Markets. With the expansion in different regional markets, Leoch Technology has noticed the differences in customer demands, certification standards, regulatory environments, and so on. To enhance strategic focus and improve operational efficiency, Leoch Technology is committed to aligning its organizational structure with the specific needs of each market. The management structures of the Company's Chinese mainland, Hong Kong and Macau business and Global Markets businesses have gradually become independent. The business units in different regions will optimize product development, market expansion, and compliance management respectively based on regional characteristics. This measure will also enable each regional business to focus on the regulatory requirements and policy developments in its respective jurisdiction.

In the first half of 2024, due to the growth demand in Global Markets and the mature of internal organization structure, the revenue generate from Global Markets business of Leoch Technology has grown rapidly, and the management sees a strong potential in future. In order to further delve into different markets, Leoch Technology has initiated the business spin-off plan and has made full preparations for the listing.

After evaluating the market positions of its battery products and related offerings, including network power batteries, SLI batteries, motive power batteries, ESS solutions across different regions around the world and recycled lead in Chinese Mainland, Leoch Technology recognized the need for region-specific strategies to succeed in different global markets. As a result, Leoch Technology determined that the most effective approach for driving global growth and strengthening its presence in local markets is to separate its operations into two distinct markets: (i) Chinese Mainland, Hong Kong and Macau; and (ii) the Global Markets. The decision to list the Global Markets business is based on its international orientation, diversified revenue structure, and the strategic importance of expanding its global presence. The U.S. stock market is a global market.

The ultimate objective of the proposed spin-off is to create a parallel listing structure of Leoch Technology and Leoch Energy, following which Leoch Energy will be deconsolidated from Leoch Technology and separately listed on NASDAQ. Leoch Technology believes that listing of its Global Markets business on the U.S. stock market can help introduce international investors for its Global Market business, enhance the Company's global visibility and reflect the intrinsic value of the Global Market business. As an independent listed entity, Leoch Energy can improve its corporate governance and boost the development of its business. At the same time, after the listing, Leoch Energy can leverage the resources of the global market to expand its financing channels and broaden the strategic business opportunities, thus further developing its Global Market business.

Meanwhile, the Hong Kong market is closer to Leoch Technology's Chinese mainland, Hong Kong and Macau business, and investors there are more familiar with the market environment, regulatory system, and business development.

Therefore, Leoch Technology has decided to list its Global Market business in the U.S. and retain the listing of its Chinese mainland, Hong Kong and Macau business in Hong Kong market.

As two separate publicly traded entities, Leoch Technology and Leoch Energy will be better equipped to seize significant growth opportunities and allocate resources effectively to their respective geographic markets and strategic objectives. See "Item 4. Information on Leoch Technology—4.A. History and Development of Leoch Technology—The Spin-Off—Reasons for the Spin-Off."

Prior to completion of the spin-off, Leoch Technology will first enter into a brand licensing agreement with us (the "Brand Licensing Framework Agreement"), pursuant to which Leoch Technology will grant to us the

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exclusive rights to develop, produce, and sell products under the Licensing Brands in the Global Markets. In addition, prior to completion of the spin-off, Leoch Technology will enter into a product procurement framework agreement (the "Product Procurement Framework Agreement") with us, pursuant to which Leoch Technology would manufacture and provide finished battery products to us for its further sales in the Global Markets and charge the purchase amount plus a mark-up rate.

We also intend to enter into a separation and distribution agreement (the "Separation and Distribution Agreement") with Leoch Technology prior to completion of the spin-off to effect the separation and provide a framework for our relationship with Leoch Technology after the spin-off. The agreement will be of short-term duration, will govern the relationship between us and Leoch Technology up to and after completion of the spin-off, and will allocate between us and Leoch Technology various assets, liabilities and obligations, including supply arrangements, employee benefits, intellectual property and tax-related assets and liabilities. See "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions" for more detail.

Leoch Technology will then subsequently distribute all of our shares held by Leoch Technology to Leoch Technology shareholders, pro rata to their respective holdings. The last day of trading of Leoch Technology shares with the right to receive our shares on the Stock Exchange of Hong Kong will be January 8, 2026. This means that any Leoch Technology shares that you hold or acquire and do not sell or otherwise dispose of prior to the close of business on January 8, 2026 will include the right to receive our shares. The Record Date for determining the entitlement to the proposed distribution is set on January 13, 2026. Each Leoch Technology shareholder will receive one Leoch Energy share for every fifty (50) Leoch Technology shares they hold as of the Record Date for the distribution. An application has been made to list our shares on the NASDAQ under the symbol "EMS" and trading in our shares is expected to begin on the NASDAQ on [February 4, 2026].

Completion of the spin-off is subject to the satisfaction, or waiver by the Leoch Technology Board and shareholders of Leoch Technology, of a number of conditions. See "Item 4. Information on Leoch Technology—4.A. History and Development of Leoch Technology—The Spin-Off" for more detail.

**Questions and Answers About the Spin-Off** 

The following provides only a summary of and certain questions relating to the terms of the spin-off. You should read the section entitled "Item 4. Information on Leoch Technology—4.A. History and Development of Leoch Technology—The Spin-Off" below in this Form 20-F for a more detailed description of the matters identified below and Leoch Technology Circular filed as Exhibit 15.4 of this Form 20-F and not rely solely on the summary questions and answers set out below.

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| | |
|:---|:---|
| ***Q:*** | ***What is the proposed spin-off and the Distribution?***  |

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|:---|:---|
| A: | The spin-off, if proceeded with, will result in the separate listing of Leoch Energy on the NASDAQ and the proposed distribution, if proceeded with, will result in the separation of Leoch Energy from Leoch Technology. The proposed distribution is aimed at providing Leoch Technology Shareholders with an assured entitlement to shares in Leoch Energy upon completion of the proposed spin-off by way of a distribution in specie, representing an arrangement determined by Leoch Technology having due regard to the interests of Leoch Technology Shareholders. Under the proposed distribution, Leoch Technology will distribute all of its shares in Leoch Energy to Leoch Technology Shareholders, which will occur substantially concurrently with the listing of Leoch Energy.  |

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|:---|:---|
| ***Q:*** | ***Will there be any ongoing relationship between Leoch Energy and Leoch Technology?***  |

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A: Following the completion of the proposed spin-off and the proposed distribution, Leoch Energy will be demerged and deconsolidated from Leoch Technology and separately listed on the NASDAQ, with

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Leoch Technology Shareholders becoming direct shareholders of Leoch Energy. Leoch Technology will no longer hold shares in Leoch Energy.

Leoch Energy and Leoch Technology will each operate as independent and separately listed companies. It is currently expected that after the completion of the proposed spin-off, Leoch Energy will continue to have transactions with Leoch Technology, which will constitute continuing connected transactions of Leoch Technology as defined under the Hong Kong Listing Rules and related party transaction as defined under Item 7.B. of Form 20-F. Each of these continuing connected transactions will be conducted on an arm's length basis and on normal commercial terms in the ordinary and usual course of business of each of Leoch Energy and Leoch Technology pursuant to the applicable laws and regulations. For further details, please refer to "Item 7.B. – Related Party Transactions".

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| | |
|:---|:---|
| ***Q:*** | ***What is the expected timing of the proposed spin-off and the proposed distribution?***  |

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| | |
|:---|:---|
| A: | It is expected that the proposed spin-off and the proposed distribution will be completed on or around [February 4, 2026] when the shares of Leoch Energy will commence trading on the NASDAQ. The last day of trading of Leoch Technolgoy shares with the right to receive our shares on the Stock Exchange of Hong Kong will be January 8, 2026. This means that any Leoch Tecehnology shares that you hold or acquire and do not sell or otherwise dispose of prior to the close of business on January 8, 2026 will include the right to receive our shares. The Record Date for determining the entitlement to the proposed distribution is set on January 13, 2026.  |

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| | |
|:---|:---|
| ***Q:*** | ***Can any Company Shareholders receive cash instead of shares of Leoch Energy as a result of the proposed spin-off and the proposed distribution?***  |

---

A: The Company does not intend to offer any cash alternative for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The cash alternative is not in line with the overall objective of the proposed spin-off. The overall objective of the proposed spin-off is to create a parallel listing structure of Leoch Technology and Leoch Energy, following which Leoch Technology
will no longer hold any interest in Leoch Energy, and Leoch Energy will be fully demerged from Leoch Technology and separately listed on the NASDAQ. If the cash alternative were to be provided by Leoch Technology and for any Company Shareholder who
elects the cash alternative, Leoch Energy shares that would have been distributed to such Company Shareholder will be retained by Leoch Technology. In the extreme case where all Company Shareholders take the cash alternative, Leoch Technology will
need to continue to hold up to 100% of Leoch Energy shares, which does not achieve the overall objective of Leoch Technology to pursue the proposed spin-off; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Providing the cash alternative would not be in the best interests of Leoch Technology and Leoch Technology
Shareholders as a whole. If Leoch Technology were to offer the cash alternative in terms of the payment of a large amount of cash to Leoch Technology Shareholders, in view of the large number of the distribution shares and hence the significant
amount of cash payment by Leoch Technology, Leoch Technology would either need to utilize a substantial amount of own cash resources and/or take on a substantial financial liability and burden to support such cash payment. This would not be
beneficial to Leoch Technology Shareholders as a whole as this would limit the resources for future business operation and development of Leoch Technology.

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| | |
|:---|:---|
| ***Q:*** | ***What will happen to my Leoch Technology Shares following the proposed spin-off and the proposed distribution?***  |

---

A: The number of Leoch Technology Shares you hold will not change as a result of the proposed spin- off and the proposed distribution. Following the proposed spin-off and the proposed distribution, the Leoch

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Technology Shares will remain to be listed on the Stock Exchange of Hong Kong. The shares of Leoch Energy will be listed on the NASDAQ.

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| | |
|:---|:---|
| ***Q:*** | ***What will be the price of Leoch Technology Shares and shares of Leoch Energy following the proposed spin-off and the proposed distribution?***  |

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| | |
|:---|:---|
| A: | There is no certainty as to the price of the Leoch Technology Shares or the shares of Leoch Energy following the proposed spin-off and the proposed distribution. Such prices may be influenced by a large number of factors including but not limited to market sentiment and conditions, market valuations for peer companies, investor response and financial performance of Leoch Technology and Leoch Energy, respectively.  |

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| | |
|:---|:---|
| ***Q:*** | ***How can the shares of Leoch Energy be traded and settled?***  |

---

A: The shares of Leoch Energy will be traded on the NASDAQ. Investors wishing to trade shares that are admitted to trading on the NASDAQ usually instruct brokers or place their orders via a broker. The brokers then decide how best to execute the trade.

Shareholders of Leoch Technology will need to engage a duly licensed broker to assist with trading shares of Leoch Energy on the NASDAQ and should note that their ability finalize a trade of shares of Leoch Energy would depend on their individual circumstances and satisfaction of "know your client" and any other internal procedures of the relevant broker.

Shareholders of Leoch Technology who wish to engage with a duly licensed broker for opening a U.S. brokerage account for trading of shares of Leoch Energy should directly contact their licensed broker.

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##### [**Table of Contents**](#toc)
**PART I** 

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS** 

**1. A. Directors and Senior Management** 

For information regarding our directors and senior management, see "Item 6. Directors, Senior Management and Employees—6.A. Directors and Senior Management."

**1. B. Advisers** 

Our U.S. legal counsel is Davis Polk & Wardwell LLP, 10<sup>th</sup> Floor, The Hong Kong Club Building, 3A Chater Road, Hong Kong. Our Cayman Islands legal counsel is Harney Westwood & Riegels, 3501 The Center, 99 Queen's Road Central, Hong Kong.

**1. C. Auditors** 

We have retained Ernst & Young Hua Ming LLP to act as our independent registered public accounting firm. The address for Ernst & Young Hua Ming LLP is 21/F, China Resources Building, 5001 Shennan Dong Road, Shenzhen, PRC. Ernst & Young Hua Ming LLP is registered with the Public Company Accounting Oversight Board.

**ITEM 2. Offer Statistics and Expected Timetable** 

Not Applicable.

**ITEM 3. KEY INFORMATION** 

**3. A. Selected Financial Data** 

The following selected financial data should be read together with our combined financial statements and related notes and "Item 5. Operating and Financial Review and Prospects" appearing elsewhere in this Form 20-F. We derived the selected statement of operations and cashflows data for the years ended December 31, 2024 and 2023 and the selected balance sheet data as of December 31, 2024 and 2023 from our combined financial statements and related notes appearing elsewhere in this Form 20-F. We derived the selected historical statement of operations data for the six months ended June 30, 2025 and 2024 and the summary balance sheet data as of June 30, 2025 from our unaudited interim condensed combined and consolidated financial statements and related notes included in this Form 20-F.

The selected financial data in this section are not intended to replace our combined financial statements and the related notes. Our historical results could differ from those that would have resulted if we operated autonomously or as an entity independent of Leoch Technology in the periods for which historical financial data is presented below, and such results are not necessarily indicative of the results that may be expected in the future.

For additional details regarding the preparation of our combined financial statements, please see "Item 5. Operating and Financial Review and Prospects—5.A. Operating Results—Basis of Presentation" and "Note 1. Organization and principal activities" and "Note 2. Summary of Significant Accounting Policies" to our combined financial statements appearing elsewhere in this Form 20-F.

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We prepare our combined and consolidated financial statements in accordance with U.S. GAAP.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | ***(US$ in thousands, except share<br>and per share data)*** | ***(US$ in thousands, except share<br>and per share data)*** | ***(US$ in thousands, except share<br>and per share data)*** | ***(US$ in thousands, except share<br>and per share data)*** |
|  **Statement of Operations Data:** |  |  |  |  |
|  Revenue | 694984 | 870341 | 398231 | 485059 |
|  Gross profit | 102107 | 121001 | 59820 | 61630 |
|  Income from operations | 53247 | 65517 | 33772 | 27337 |
|  Income before income taxes | 49341 | 53311 | 24257 | 29446 |
|  Net income | 40269 | 37214 | 16092 | 18597 |
|  Net income attributable to Leoch Energy's shareholders | 38907 | 34482 | 15494 | 21219 |
|  Pro forma earnings per share, basic and diluted |  |  | 15494 | 21219 |
|  Number of shares expected to be outstanding immediately after the distribution |  |  | 1 | 1 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | $— | $— | $— | $— |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | ***(US$ in thousands)*** | ***(US$ in thousands)*** | ***(US$ in thousands)*** | ***(US$ in thousands)*** |
|  **Statements of Cash Flows Data:** |  |  |  |  |
|  Net cash provided by/(used in) operating activities | 33292 | (3614) | (73349) | 103786 |
|  Net cash (used in)/provided by investing activities | (83786) | (30271) | 20347 | (33557) |
|  Net cash provided by/(used in) financing activities | 60882 | 27397 | 43824 | (67040) |

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| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,<br>2023** | **As of December 31,<br>2024** | **As of June 30,<br>2025** |
|  | | | **(Unaudited)** |
|  | ***(US$ in thousands)*** | ***(US$ in thousands)*** | ***(US$ in thousands)*** |
|  **Balance Sheet Data:** |  |  |  |
|  Cash and cash equivalents | 31499 | 22126 | 24053 |
|  Total assets | 664578 | 745140 | 681917 |
|  Total liabilities | 464844 | 484957 | 542465 |
|  Total shareholders' equity | 199734 | 260183 | 139452 |

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##### [**Table of Contents**](#toc)
**3. B. Capitalization and Indebtedness** 

The following table sets forth our capitalization as of June 30, 2025 on an actual basis.

We are providing the capitalization table below for informational purposes only. It should not be construed to be indicative of our capitalization or financial condition had the separation been completed on the date assumed. The capitalization table below may not reflect the capitalization or financial condition that would have resulted had we operated as a standalone public company at that date and is not necessarily indicative of our future capitalization or financial position.

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| | |
|:---|:---|
|  | **As of June 30,<br>2025** |
|  | Unaudited |
|  | *(US$ in thousands)* |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |
|  **Current liabilities:** |  |
|  Amounts due to related parties | 375117 |
|  Short-term loans | 64933 |
|  **Non-current liabilities:** |  |
|  Long-term loans | 490 |
|  **Total Indebtedness** | **440540** |
|  **Shareholders' equity:** |  |
|  Ordinary shares (par value of US0.000005 per share as of date of submission; 10,000,000,000 shares authorized, 1 share issued and outstanding as of date of submission) |  |
|  Additional paid-in capital | 30010 |
|  Retained earnings | 109450 |
|  Accumulated other comprehensive loss | (1287) |
|  **Total Leoch Energy Inc's shareholders' equity** | **138173** |
|  Noncontrolling interests | 1279 |
|  **Total shareholders' equity** | **139452** |
|  **Total capitalization <sup>(1)</sup>**  | **579992** |

---

(1) Total capitalization is defined as the sum of total indebtedness and total shareholders' equity.

**3. C. Reasons for the Offer and Use of Proceeds** 

Not applicable.

**3. D. Risk Factors** 

*You should carefully consider the risks described below, together with all of the other information included in this Form 20-F, in evaluating us and our shares. The following risk factors could adversely affect our business, financial condition, results of operations and the price of our shares.* 

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##### [**Table of Contents**](#toc)
**Risks Related to Our Industry and Business Operations** 

***We face intense competition in our major markets and may be pressured to remain competitive.***

We compete with a number of large-scale power solution providers, as well as numerous smaller, regional competitors. Our competitors may have greater financial, research and other resources, access to proprietary technology, greater expertise and more extensive technical capabilities, greater pricing flexibility and greater name recognition. There may also be significant consolidation in the industry, especially given the large number of smaller-scale power solution providers in the market, or new entrants to the market. Moreover, in order to gain market share, our competitors may price their products aggressively, resulting in more intense competition. We cannot assure you that we will be able to compete effectively against current and future competitors, and intensified competition may negatively affect our profitability and cause loss of market share, any of which could materially and adversely affect our results of operations.

***A significant portion of our revenue is derived from lead-acid batteries and lithium batteries. If the lead-acid battery or lithium battery market does not grow at the rate we expect or at all, or if lead-acid or lithium battery technology became less favored by the market, our business, profitability and future prospects may be materially and adversely affected.***

Our business development depends, in large part, on the continued growth in the demand for lead-acid battery and lithium battery products. Developments in our industry are outside of our control and any reduced demand for these battery products or any downturn or other adverse changes in the sectors we serve, such as IDC, telecommunication base station, automobiles and motorcycles, low-speed electronic vehicles, and residential, industrial and commercial energy storage, could materially and adversely affect our sales and profitability.

Furthermore, there can be no assurance that lead-acid batteries will continue to be competitive and remain the primary choice of battery products in, for example, IDC, telecommunication base station, automobiles and motorcycles, and low-speed electronic vehicles. Similarly, there can be no assurance that lithium batteries will continue to be competitive and remain the primary choice of battery products in, for example, residential, industrial and commercial energy storage. If there is a shift in market preference and if we are not able to develop products that meet such demands, our business could be adversely affected. See also "—If we are unable to successfully develop new technology or new products, our business, results of operations and prospects may be adversely and materially affected."

***If we are unable to successfully develop new technology or new products, our business, results of operations and prospects may be adversely affected.***

The battery industry is characterized by technological advancements, cost, new product introductions and evolving customer requirements with respect to criteria such as battery life, safety, cold-start performance, temperature range adaptability and electricity discharge capacity. Our competitors are continuously searching for ways to improve the specifications and quality of the batteries they produce, which, if successful, could render our products uncompetitive or less favored by the market. As a result, we must continue to invest significant human and capital resources in research and development to enhance our existing products and to develop new technologies. There is, however, no assurance that we will be successful in developing and manufacturing these and other new products in a timely manner or at all. Moreover, products that appear to be promising at the development phases may fail to achieve broad market acceptance for a variety of reasons. If we fail to timely develop products that meet market demands, we may be unable to achieve the growth as expected and may incur expenses relating to the development or acquisition of new technologies that do not lead to commercially viable products, which could materially and adversely affect our financial results, results of operations and prospects.

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***If our strategic focus on the ESS sector does not achieve the anticipated results, our growth prospects, business, and results of operations could be materially and adversely affected.***

As part of our long-term growth strategy, we have increased our investment and operational focus on the ESS sector, which we believe represents a significant opportunity. However, this sector is still evolving and subject to a number of uncertainties, including changing regulatory environments, technological advancements, customer adoption rates, competitive dynamics, and macroeconomic conditions.

There can be no assurance that demand for ESS solutions will grow at the rate we anticipate or that our products will achieve the required performance, cost, or reliability standards to succeed in this market. In addition, our investments in research and development, manufacturing capacity, and marketing related to ESS may not yield the expected returns and could divert resources from other core areas of our business.

If our effort on expanding into the ESS sector fails to generate the expected revenue or market share gains, or if we are unable to compete effectively in this segment, our growth prospects could be limited, and our business, financial condition, and results of operations could be materially and adversely affected.

***Fluctuations in the prices of raw materials could materially and adversely affect our results of operations.***

Our production processes require significant amounts of lead, lead alloy, ABS plastic, PP plastic, fiberglass, sulphuric acid and copper, and our success depends significantly on our ability to secure, at acceptable price levels, sufficient and constant supply of principal raw materials for our production. Our raw material costs constituted a significant portion of our cost of revenues.

The prices at which we purchase raw materials from our suppliers may be subject to market price fluctuations, fluctuations in raw material prices can therefore affect our financial results and profitability. We cannot assure you that we will be able to meet our future raw material requirements at a reasonable cost or to pass raw material cost increases totally to our customers.

***We procure a certain proportion of finished battery products from Leoch Technology, and any disruption in this relationship or failure by Leoch Technology to meet our quality or delivery requirements could materially and adversely affect our business, financial condition, and results of operations.***

Historically and during the transition period after the Spin-off, we have procured and will continue to procure certain finished battery products from Leoch Technology, and our continued ability to offer a full range of products to our customers depends, in part, on the reliability and performance of these affiliated suppliers. Although we intend to maintain a cooperative and commercially reasonable relationship with Leoch Technology for a transition period following the separation, we may not be able to control or influence their operations, pricing, production schedules, or quality assurance practices to the same extent as our own manufacturing operations.

Any failure by Leoch Technology to deliver products that meet our specifications, quality standards, or delivery timelines could result in delays, increased costs, loss of customer confidence, or reputational harm. In addition, any disputes or changes in the terms of our supply arrangements with Leoch Technology —whether due to commercial disagreements, shifts in strategic priorities, or operational challenges—could adversely impact our supply chain continuity and our ability to meet customer demand.

If we are unable to effectively manage our supplier relationship with Leoch Technology or find suitable alternative sources on acceptable terms, our business, financial condition, and results of operations could be materially and adversely affected.

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***Our capacity expansion plans are subject to risks and uncertainties, and may be difficult or expensive to manage.***

We have expanded and intend to continue to expand our production capacity to capture market opportunities. Since we will be separated from Leoch Technology, which has been our largest supplier, we intend to gradually reduce our reliance on Leoch Technology and expand our own production capacity. Our ability to increase our production capacity is subject to certain significant risks and uncertainties, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible difficulty to raise capital to acquire additional raw materials and equipment and to expand our
production facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible inability to ramp up production capacities meeting expectations or customer demands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible delays in construction progress of production facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential delays in recruiting local workforce for new or expanded production facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential delays and costs overruns due to increases in raw material prices and problems with equipment vendors;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• possible delays or denial of required approvals and certifications by relevant government authorities.

In the event such capacity expansion does not occur or is not timely completed, our future plans, profitability and growth may be materially and adversely affected. Our management may also be distracted from oversight of our existing operations to manage the expansion. Furthermore, our projects to add production lines and build new production facilities may not result in the anticipated benefits if completed. Any failure to successfully manage our expansion may make it difficult to effectively compete, develop new products or take advantage of new markets.

***We may face challenges in accurately planning our production based on our sales contracts, which may result in excess product inventory or product shortages.***

Although we have implemented a management system to effectively schedule our production, we may not be able to plan our production accurately. We may not have sufficient lead time to produce battery material products to meet our customers' requirements once they place orders with us. To meet the short delivery deadline, we generally make significant decisions on our production level and timing, procurement, facility requirements, personnel needs and other resources requirements based on the demand forecast that we work with our customer to develop, which is contractually non-binding. If the final purchase orders substantially differ from such forecast, we may have excess product inventory or product shortages. Excess product inventory could result in unprofitable sales or write-offs. Producing additional products to make up for any product shortages within a short time frame may be difficult, making us unable to fill out the purchase orders. In either case, our results of operation would fluctuate from period to period.

***Our operations and financial performance may be materially and adversely affected if we experience any major disruptions, damage or destruction at our production facilities.***

Our business is dependent on our manufacturing facilities. Our facilities are subject to operating risks and disruptions, such as the breakdown or failure of equipment, labor disputes, natural disasters, industrial accidents and the need to comply with relevant regulations. The occurrence of any of these could significantly affect our operating results. Further, our production involves a significant degree of vertical integration, and disruptions in the processing of materials we use for manufacturing of our products may have repercussions for the remainder of the production process. Should there be any loss of or shutdown of any of our manufacturing facilities, our business, financial condition and results of operations may be materially adversely affected.

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***Maintaining our manufacturing operations require significant capital expenditures, and our inability or failure to maintain our operations could have a material adverse impact on our market share and ability to generate revenue.***

Total capital commitments contracted but not yet reflected in the financial statements amounted to US$12.5 million, US$24.6 million and US$39.4 million as of December 31, 2023, 2024 and June 30, 2025, respectively, primarily related to the future expansion of our manufacturing facilities. We may incur significant additional capital expenditures as a result of unanticipated expenses, regulatory changes and other events that impact our business. If we are unable or fail to timely obtain capital on acceptable terms and adequately maintain our manufacturing capacity, we could lose customers and there could be a material adverse impact on our market share and our ability to generate revenue.

***Global economic and financial market conditions beyond our control might materially and negatively impact us.***

General economic factors beyond our control could adversely affect our business and results of operations. These factors include, but are not limited to, supply chain disruptions, labor shortages, wage pressures, rising inflation and potential economic slowdown or growing recession risk, as well as input costs including fuel and energy costs, foreign currency exchange rate fluctuations, and other matters that influence consumer spending and preferences.

In addition, the world economy is facing a number of actual and potential challenges, including conflicts between Russia and Ukraine, tensions in the Red Sea or tensions between Russia and the North Atlantic Treaty Organization ("NATO"), political unrest and conflicts in the Middle East, terrorist attacks or threats of such attacks around the world, war (or threatened war) or international hostilities, epidemics or pandemics, as well as other global events have significantly increased global macroeconomic uncertainty and volatility. Moreover, in response to unfavorable economic conditions, there has been and, in the future, could be a reduction in discretionary spending, which may lead to reduced net sales or cause a shift in our product mix or a shift of purchasing patterns. This shift could drive the market towards lower margin products or force us to reduce prices for our products in order to compete. Conversely, rapid increases in demand due to improving economic conditions could lead to supply chain challenges.

Global markets continued to face threats and uncertainties. Uncertain economic and financial market conditions may also adversely affect the financial condition of our customers, suppliers and other business partners. Any significant decrease in customers' purchases of our products or our inability to collect accounts receivable resulting from an adverse impact of the global markets on customers' financial condition could have a material adverse effect on our business, financial condition and results of operations. Additionally, disruptions in financial markets could reduce our access to debt and equity capital markets, negatively affecting our ability to implement our business strategy.

***We derive a significant revenue from customers who sell the products we manufacture under their own brands. If these customers come to view products sold under our brand as competing with their branded products, they may reduce or cease their purchases from us, and our business may be adversely affected.***

A significant amount of our revenue is derived from manufacturing products to be sold by our customers under their own brand. However, we also manufacture and sell products under "Leoch" brand name based on the brand licensing arrangement with Leoch Technology. Although the products these customers purchase from us are typically those they are not able to produce or to produce with adequate volume, if they come to view products we sell under "Leoch" brand as competing with their products, they may reduce or cease their purchases from us. In such case, our business and results of operations may be adversely affected.

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***Our business could be materially and adversely affected by significant order cancellations, reductions or delays by our customers, any material adverse change in our relationship with customers, or a negative change in our customers' businesses or investments.***

Our sales are typically made pursuant to individual purchase orders, and for telecommunications customers, we manufacture and deliver products pursuant to their order notices. We usually work with our customers to develop non-binding forecasts of future requirements. Based on these forecasts, we make plan of operations regarding the level of business that we will seek and accept, the timing of production schedules and the levels and utilization of personnel and other resources. ****A variety of conditions, both specific to each customer and generally affecting our customers' industries, may cause customers to cancel, reduce or delay purchase orders, order notices and commitments without penalty, except for payment for services rendered or products completed and, in certain circumstances, payment for materials purchased and charges associated with such cancellation, reduction or delay. Significant or numerous order cancellations, reductions or delays by our customers could have a material adverse effect on our business, financial condition or results of operations.

An adverse change in our relationship with customers or a negative change in our customers' businesses or investments may result in a reduction or cessation of their purchases from us. If we are unable to obtain comparable orders in substitution, our business, results of operations and financial condition may be adversely affected.

***If we cannot renew our certifications of power solutions or fail to obtain certifications for newly launched power solutions, our business and results of operations may be materially and adversely affected.***

We have obtained various certifications for our battery products and our production systems, including UL, CE, VdS and TLC certifications and IATF 16949 certification. Some of these certifications are subject to renewal after a period of time in accordance with the standards set by the relevant issuing organization and authorities. In the event of non-renewal, delay in renewal or revocation of any of these certifications, our business and results of operations may be materially and adversely affected.

In addition, we may be required to obtain various product certifications or approvals for our newly launched power solutions in certain jurisdictions or for specific customer segments, particularly in highly regulated industries such as automotive, telecommunications, and energy storage. Obtaining such certifications can be time-consuming and subject to factors beyond our control, including changes in regulatory requirements or delays in testing and approval processes. If we fail to obtain the necessary certifications prior to scheduled product deliveries, we may experience delays, order cancellations, or loss of customer confidence, any of which could materially and adversely affect our business, financial condition, and results of operations.

***Product recalls or safety concerns relating to our products could result in significant costs, damage to our brand and reputation, and could materially and adversely affect our business, financial condition, and results of operations.***

Our products may contain actual or perceived defects, safety issues, or non-compliance with applicable standards, which may require us to conduct product recalls or take other corrective actions. Defects in design, manufacturing, labeling, or use of components—particularly in high-performance or safety-critical applications such as data center infrastructure, automotive, telecommunications and energy storage—could result in injury to end users or damage to property, which may trigger regulatory investigations, product liability claims, or mandatory recalls.

A product recall, whether voluntary or required by a regulatory authority, could result in substantial costs, including warranty expenses, repair or replacement costs, litigation, regulatory penalties, and increased insurance premiums. In addition, a recall or public safety concern could significantly harm our reputation, reduce customer confidence, and negatively affect demand for our products. Even unfounded allegations of product defects could disrupt our operations or lead to the loss of key customers. Any such events could materially and adversely affect our business, financial condition, and results of operations.

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***Spending patterns and seasonality in the industries we serve could adversely affect our results of operations.***

Our results of operations are affected by spending patterns and seasonality in the industries of our major customers and overall economic conditions in the markets in which we operate. Our sales are also subject to the seasonality of the industries we serve, such as e-bikes and automotives, which may affect our periodic operating results. For example, during the first half of the year, which is considered the off-season, sales volumes are relatively lower, making it challenging to allocate production costs efficiently, which affects gross margin performance. In contrast, the second half of the year marks the peak season, where increased production scales significantly reduce unit costs. As a result, gross margins may improve in the second half of the year. More generally, our products are heavily dependent on the demand in the industries we serve, including IDC, telecommunication base station, automobiles and motorcycles, low-speed electronic vehicles, and residential, industrial and commercial energy storage. A weak capital expenditure environment in those industries could have a material adverse effect on our results of operations.

***We face risks associated with marketing, distribution and sale of our products, and if we are unable to effectively manage these risks, our business operations and future growth may be impeded.***

Our business depends, in large part, on our sales and distribution network of global regional and local distributors or partners. Moreover, if we fail to retain our existing customers, attract new customers, and increase sales for our customers, our business operations and future growth may be impeded. Our significant efforts in marketing, distribution and sale of our products cannot guarantee our success. Specifically, we are exposed to a number of risks, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• different spending patterns and customer preferences in various countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increased costs associated with developing and maintaining our marketing and distribution presence in various
countries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges in staffing and managing global operations and sales channels effectively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• challenges in providing customer service and support in these markets.

If we are unable to effectively manage these risks, our business operations and future growth may be impeded.

***We collaborate with a network of third-party distributors to market and sell our products, and any disruption, underperformance, or loss of key distributors could materially and adversely affect our business, financial condition, and results of operations.***

A significant portion of our sales is conducted through a network of third-party distributors, who play a critical role in promoting, marketing, and distributing our power solutions to end customers across various regions. We depend on these distributors to maintain adequate inventory levels, provide timely customer service, and represent our brand and products effectively in the markets they serve. Distributors, however, may choose to reduce their focus on our products, terminate their relationships with us, or carry competing products.

In addition, our ability to maintain or expand our presence in key markets depends on our success in managing existing distributor relationships and attracting new, capable distributors. If any of our major distributors underperform, cease to grow, fail to comply with applicable laws and regulations, experience financial difficulties, or if we are unable to replace them in a timely and cost-effective manner, our sales and market share could be negatively impacted. Furthermore, disruptions in the distribution network due to geopolitical tensions, logistics constraints, regulatory changes, or other unforeseen events could materially and adversely affect our business, financial condition, and results of operations.

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***Any problem with our product quality or performance will materially and adversely affect us, possibly resulting in reputation damage, loss of customers and sales, decrease in market share, products liability claims, among others.***

The success of our business depends on our ability to consistently deliver products with high quality and reliability. If the quality or performance of any of our products deteriorates for any reason, we may face with returns or cancellations of orders, customer complaints, as well as damage to our future sales and market expansions. Moreover, as our products contain harmful substances, such as lead and acid, any defects or improper performance of our products may directly or indirectly result in serious harm to the environment and people's health, safety and daily lives. If any such harm does result, we could be subject to products liability claims for damages. The costs and resources required to defend such claims could be substantial and, if such claims are successful, we could be responsible for paying some or all of the damages. Although we maintain products liability insurance, the coverage is limited to a fixed amount and may not be sufficient to cover all damages for which we are held liable. Any problems with our product quality may harm our results of operations, adversely affect our reputation among clients and potential clients and decrease our overall market share.

***Any delivery delays, improper handling of goods or increase in transportation costs of our logistics service providers could materially and adversely affect our business, financial condition and results of operations.***

We primarily rely on third-party logistics service providers for the transportation of our products. If we fail to cause our logistics service providers to timely and effectively obtain shipments of products from our suppliers and deliver products to our distributors and customers, our business, financial condition and results of operations could be harmed. The services provided by these logistics service providers may be suspended and cause interruption to the supply of our products due to unforeseen events. Delivery delays or losses may occur for various reasons beyond our control, including poor handling by our logistics companies, labor disputes or strikes, acts of war (e.g. conflicts between Russia and Ukraine, tensions in the Red Sea or tensions between Russia and the North Atlantic Treaty Organization ("NATO"), political unrest and conflicts in the Middle East), terrorist attacks or threats of such attacks around the world, international hostilities, epidemics or pandemics, earthquakes and other natural disasters. Poor handling of our products could also result in product contamination or damage, which may in turn lead to product recalls, product returns or exchanges, product liability, increased costs and damage to our reputation, thereby adversely affect our business, financial condition and results of operations.

***We may incur significant costs because of the warranties we supply with our battery products.***

We are confident that products sold to customers will meet the published or agreed upon specification. We provide warranties for our battery products in accordance with laws and regulations of the jurisdictions that such products are sold. Products that do not meet specification are replaced at no charge to the customer. Based on our historical experience, we have not encountered significant warranty claims. However, we have recorded warranty liability of US$3.0 million, US$5.1 million and US$7.8 million as of December 31, 2023, 2024 and June 30, 2025, respectively. There is no guarantee that future warranty claims will align with past trends, and a significant increase in such claims could exceed our existing reserves. This could have a material adverse effect on our business, financial condition and results of operations.

***We may undertake acquisitions, investments, joint ventures or other strategic alliances, which may have a material adverse effect on our ability to manage our business, and such undertakings may be unsuccessful.***

Our growth strategy includes plans to expand our operations through acquisitions or strategic partnerships with other companies. However, we may not be successful in identifying attractive partners or acquisition candidates, and any such failure could limit our ability to expand our business and grow our market share. Even if we are successful at forming partnerships or acquiring other companies, acquisitions of companies or businesses and participation in partnerships are subject to considerable risks, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to integrate new operations, personnel, products, services and technologies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unforeseen or hidden liabilities, including exposure to lawsuits associated with newly acquired companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diversion of financial or other resources from our existing businesses and technologies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disagreements among partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to comply with laws and regulations as well as industry or technical standards of the geographic markets
into which we expand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to operational, regulatory, market and geographic risks and additional capital requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to generate sufficient revenue to offset the costs and expenses of acquisitions, strategic
investments, joint venture formations or other strategic alliances; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential loss of, or harm to, employees or client relationships.

Any of the above risks could significantly impair our ability to manage our business and materially and adversely affect our business, results of operations and financial condition.

***Our multi-jurisdiction operations may lead to increasing risks and uncertainties, and our international business strategies may not yield the desired results.***

Operating in multiple jurisdictions around the world and expanding to new regions may expose us to various risks, which may include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• political risks, including geopolitical risks, civil unrest, acts of terrorism, acts of war, regional and global
political or military tensions and strained or altered foreign relations, which may lead to interruptions in our business operations and/or loss of property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• economic, financial and market instability and credit risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• government policies favoring domestic companies in certain foreign markets or trade barriers including export
requirements, tariffs, taxes and other restrictions and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cultural differences and language difficulties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• foreign currency exchange controls and fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainties in the interpretation and application of tax laws and regulations, more onerous tax obligations and
unfavorable tax conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to anticipate changes to the competitive landscape in the new market due to lack of familiarity with the
local business environment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in finding reliable suppliers meeting our quality standards at acceptable prices and quantities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties with localized management of employees and operations, including compliance with local labor and
immigration laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to obtain or maintain the requisite registrations, filings, licenses, permits, approvals and
certificates in multiple jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to obtain, maintain or enforce intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exposure to litigation or third-party claims in different jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulty in ensuring the compliance by our distributors and customers with the sanctions imposed by the U.S.
Office of Foreign Assets Control on various foreign states, organizations and individuals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• difficulties and costs associated with complying with, and enforcing remedies under, a wide variety of complex
local and international laws, treaties and regulations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• failure to develop appropriate risk management and internal control structures tailored to multi-jurisdictional
operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unanticipated changes in prevailing economic conditions and regulatory requirements.

If we are unable to effectively manage these risks, they could impair our ability to expand our markets internationally and have a material adverse effect on our business, financial condition, results of operations and prospects.

***A cybersecurity breach or failure of one or more key information technology systems could have a material adverse effect on our business or reputation.***

We rely extensively on information technology ("IT") systems, networks and services, including internet sites, data hosting and processing facilities and tools and other hardware, software and technical applications and platforms, some of which are managed, hosted, provided and/or used by third parties or their vendors, to assist in conducting our business.

Our IT systems may be subject to computer viruses or other malicious codes, unauthorized access attempts, phishing and other cyberattacks. We continue to assess potential threats and make investments seeking to address and prevent these threats, including monitoring of our networks and systems and upgrading skills, employee training and security policies for us and our third-party providers. However, because the techniques used in these cyberattacks change frequently and may be difficult to detect for periods of time, we may face difficulties in anticipating and implementing adequate preventative measures. We cannot guarantee that our security efforts will prevent breaches or breakdowns to our or our third-party providers' databases or systems. If the IT systems, networks or service providers we rely upon fail to function properly or if we or one of our third-party providers suffer a loss, significant unavailability of or disclosure of our business or stakeholder information and our business continuity plans do not effectively address these failures on a timely basis, we may be exposed to reputational, competitive and business harm as well as litigation and regulatory action, including administrative fines. The costs and operational consequences of responding to breaches and implementing remediation measures could be significant.

***We are subject to data security risks, which could negatively affect our reputation, business, financial condition and results of operations.***

Hackers and data thieves are increasingly sophisticated and operate social engineering, such as phishing and large-scale, complex automated attacks that can evade detection for long periods of time. Any breach of our or our service providers' network or other vendor systems, may result in the loss of confidential business and financial data, misappropriation of the transactional or personal information we handle or a disruption of our business. Any of these outcomes could have a material adverse effect on our business, including unwanted media attention, reputation damage, fines or lawsuits. We also may need to expend significant resources to protect against, respond to and/or redress problems caused by any breach.

In addition, as a global company, we are subject to global privacy and data security laws, regulations and codes of conduct. These laws and regulations may be inconsistent across jurisdictions and are subject to evolving and differing interpretations. Government regulators, privacy advocates and class action attorneys are increasingly scrutinizing how companies collect, process, use, store, share and transmit personal data. This increased scrutiny may result in new interpretations of existing laws, thereby further impacting our business.

The costs of compliance or failure to comply with such laws, regulations, codes of conduct and expectations could have a material adverse effect on our business, financial condition and results of operations. Misuse of or failure to secure personal information could also result in violation of data privacy laws and regulations, investigations or proceedings against us by governmental entities or others, damage to our reputation and

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credibility and could have a negative impact on our business, financial condition and results of operations. Furthermore, our actual or alleged failure to comply with applicable laws, regulations or policies or to protect personal data could result in enforcement actions and significant penalties against us, which could result in negative publicity, increase our operating costs, subject us to claims or other remedies and have a material adverse effect on our business, financial condition and results of operations.

***Our future success depends on the continuing services of our senior management team and other key personnel, as well as our ability to attract and retain personnel.***

Our future success depends heavily upon the continuing services, efforts and performance of all our directors and members of our senior management team (see "Item 6. Directors, Senior Management and Employees"). Our management team will comprise both experienced industry veterans and professional managers with extensive experience in the battery industry. If one or more of our senior executives, key research and development personnel or other personnel are unable or unwilling to continue in their present positions, we may not be able to replace them easily or at all, and our business may be disrupted and our financial condition and results of operations may be materially and adversely affected.

Furthermore, various parts of our production process are mainly done by manual labor and if we fail to attract and retain sufficient number of workers to meet our needs, our business and prospects may be adversely affected.

***Our insurance coverage may be inadequate to protect us from potential losses.***

Our operations are subject to hazards and risks normally associated with manufacturing operations. In addition, our products contain harmful substance and may subject us to product liability claims. Currently, we maintain comprehensive insurance coverage for our assets, including production facilities, inventories, machinery, equipment, and vehicles. Additionally, we have logistics insurance to cover the shipment of goods. For our employees, we comply with statutory insurance requirements, including work-related injury insurance (covering lead poisoning), medical insurance, maternity insurance, unemployment insurance, and pension insurance. Beyond statutory coverage, we provide personal injury and accidental medical insurance for selected management, administrative, and sales employees, based on their job responsibilities. We also maintain global product liability insurance to cover bodily injuries and property damage caused by our products, subject to specific coverage limits. For exported products, we maintain additional export insurance. The coverage, however, may be inadequate to protect us from potential losses, although we have not recorded any such losses historically. Further, we do not maintain business interruption insurance or profit loss insurance. Any losses or liabilities that are not covered by our current insurance policies or are not insured at all may have a material adverse effect on our business, results of operations and financial condition.

***We may be exposed to infringement or misappropriation claims, which, if determined adversely against us, could result in significant damages.***

Our success depends largely on our ability to use and develop our technology and know-how without infringing the intellectual property rights of third parties. The validity and scope of legal claims relating to the patents covering the proprietary components in our products and services involve complex scientific, legal and factual questions and analyses and, therefore, may have highly uncertain outcomes. We may be subject to litigation involving claims of patent infringement or violation of intellectual property rights of third parties. The defense and prosecution of intellectual property suits, patent opposition proceedings and related legal and administrative proceedings can be both costly and time consuming and may significantly divert the efforts and resources of our technical and management personnel. An adverse determination in any such litigation or proceeding to which we may become a party could subject us to significant liability to third parties, require us to seek licenses from third parties, pay ongoing royalties or redesign our products or services or subject us to injunctions prohibiting the manufacture and sale of our products or the use of our technologies. Protracted

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litigation could also result in our clients or potential clients deferring or limiting their purchase or use of our products or services until resolution of such litigation.

***We may not have adequate intellectual properties protection in our operations. Failure to protect our intellectual property rights may undermine our competitive position, and litigation to protect those rights may be costly and may not be resolved in our favor.***

We mainly rely on patent laws, trade secrets and our brand licensing arrangement with Leoch Technology to establish, protect and maintain our propriety intellectual property, technologies and other confidential information.

Our operations span multiple jurisdictions, yet they are not universally safeguarded by patent protection. Since we used to be a subsidiary of Leoch Technology, we have been mostly relying on patents held by Leoch Technology, of which the legal protection is confined to a limited number of jurisdictions. Due to the lack of patent coverage in many jurisdictions where we operate, we would not be able to prevent others from developing or commercializing products, technologies or designs similar to ours in such jurisdictions.

For some of our unpatented proprietary technologies, we do not apply for a patent to avoid disclosing details of such technologies, know-how and data. In such events, we primarily rely on non-disclosure agreements, confidentiality agreements and other contractual arrangements for their protection. As we rely in part on the good faith of the contracting parties for the effectiveness of these agreements, there is no assurance that these measures will be effective in protecting our proprietary information.

Even with the existence of a patent, however, we may not be necessarily protected from competition, as any granted patent may be challenged, invalidated or held unenforceable. Competitors may successfully challenge our patents, produce similar products that do not infringe our patents or produce products in countries that do not recognize our patents. Further, changes in either the patent laws or in the interpretation of patent laws may diminish the value of our intellectual property. Moreover, we cannot assure you that we will be successful in renewing our patents once they expire, or that all our patent applications will ultimately be approved and granted to us. The occurrence of any of these events could harm our competitive position and decrease our revenue.

Additionally, we primarily rely on the brand licensing arrangement with Leoch Technology for our brands and trademarks. Further, although our trademarks are registered, given the large geographic area in which we conduct our business, monitoring and preventing unauthorized use are difficult. Any unauthorized use of our brands, trademarks and other similar intellectual property rights could harm our competitive advantages, good will and business.

Litigation may be necessary in the future to enforce our intellectual property rights, the costs for which could be substantial. Enforcement of intellectual property rights may be more difficult and/or less effective in some jurisdictions compared to other jurisdictions. An adverse outcome in litigation or similar proceedings could adversely affect our business, financial condition and results of operation.

***Recent changes to patent laws in the United States and in foreign jurisdictions may limit our ability to obtain, defend and/or enforce our patents.***

The U.S. Supreme Court has ruled on several patent cases in recent years, either narrowing the scope of patent protection available in certain circumstances or weakening the rights of patent owners in certain situations. In addition to increasing uncertainty with regard to our ability to obtain patents in the future, this combination of events has created uncertainty with respect to the value of patents, once obtained. Depending on actions by the U.S. Congress, the U.S. federal courts and the U.S. Patent and Trademark Office, the laws and regulations governing patents could change in unpredictable ways that could weaken our ability to obtain new patents or to enforce patents that we have licensed or that we might obtain in the future. Similarly, changes in patent laws or

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regulations in other countries or jurisdictions, changes in the governmental bodies that enact them or changes in how the relevant governmental authority enforces patent laws or regulations may weaken our ability to obtain new patents or to enforce patents that we have licensed or that we may obtain in the future.

**Risks Related to Our Financial Condition** 

***We may experience difficulty in collecting our receivables from our customers and our liquidity and financial condition would be negatively impacted.***

As of December 31, 2023, 2024 and June 30, 2025, our accounts receivable were US$173.9 million, US$187.3 million and US$247.6 million, respectively. Our credit arrangements with customers may expose us to the risk of default or delay in payment under the purchase contracts. Such risks may become more prominent in an economic slowdown or recession, which may result in changes of customers' credit and payment policies, increase in delinquencies, foreclosures and losses. Our inability to collect payments from our clients in a timely and sufficient manner may adversely affect our liquidity, financial condition and results of operations.

***Failure to maintain and predict inventory levels in line with the level of demand for our products could cause us to face excess inventory risks, holding costs and costs of purchase, any of which could have a material adverse effect on our business, financial condition and results of operations.***

Our inventories primarily include raw materials, work in progress and finished goods. Our inventories as of December 31, 2023, 2024 and June 30, 2025 were US$111.1 million, US$111.9 million and US$125.8 million, respectively. As we maintain our inventory levels based on our internal forecasts of customers' demands and of the price fluctuations in raw materials, the accuracy of such forecasts is inherently uncertain. If our forecast customer demand is lower than actual demand, we may not be able to maintain an adequate inventory level of our raw materials or obtain sufficient supplies in a timely manner, our production may be interrupted and we may lose sales and market share to our competitors. On the other hand, we may be exposed to increased inventory risks due to accumulated excess inventory of our raw materials. Excess inventory levels may increase our inventory holding costs, risk of inventory obsolescence or impairment. Additionally, failure to accurately forecast the price fluctuations will lead to excessive cost of purchase.

***We are subject to risks and uncertainties associated with our investments in futures and options at fair value.***

Our derivative assets primarily represent futures and options contracts that we purchase to hedge financial risks, such as those relating to price fluctuations of our raw materials. Changes in fair value of derivative assets and derivative liabilities were gains of US$1.0 million, US$0.1 million, US$4 thousand and US$34 thousand for the year ended December 31, 2023, 2024 and for the six months ended June 30, 2024 and 2025, respectively.

Option contracts carry significant risks, including market volatility and leverage risk, which can amplify both gains and losses. Additionally, liquidity risk and the potential for physical delivery in futures contracts pose challenges, while the time-bound nature of options can lead to the loss of the entire premium if the market moves unfavorably.

***Fluctuations in exchange rates could have a material and adverse effect on our results of operations.***

Because we conduct a significant and growing portion of our business in currencies other than the US dollars but report our combined and consolidated financial results in US dollars, we face exposure to fluctuations in currency exchange rates. In particular, this exposure arises within our subsidiaries operating in multiple jurisdictions, as they often conduct transactions in currencies that differ from their respective functional currencies. This is notably the case for subsidiaries in emerging markets. We recorded net foreign exchange loss of US$1.1 million, US$4.3 million and US$4.7 million for the years ended December 31, 2023, 2024 and for the six months ended June 30 2024, respectively. We recorded net foreign exchange gain of US$4.4 million for the

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six months ended June 30, 2025. As exchange rates vary, revenue, costs exclusive of depreciation and amortization, operating expenses, other income and expense, and assets and liabilities, when translated, may also vary materially and thus affect our overall financial results. We may in the future, enter into cash flow or other type of hedging arrangements to manage foreign currency translation, but such activity may not completely eliminate fluctuations in our operating results due to currency exchange rate changes. Hedging arrangements are inherently risky, which could expose us to additional risks that could adversely affect our financial condition and operating results.

***Fluctuations of interest rates could negatively impact our performance and business expansion plans.***

We are exposed to fluctuations of interests rate in relation to fixed-rate bank borrowings, other financial assets and lease liabilities. We are also exposed to cash flow interest risk in relation to variable-rate bank balances, and variable-rate bank borrowings which carry prevailing market interest rates. We attempt to minimize this risk and lower our overall borrowing costs through maintaining a balanced portfolio of fixed rate and floating rate bank borrowings and bank balances.

This risk has not had a material impact on our overall borrowing cost or our financial performance. However, in the event that we fail to control this risk in the future, rising interest rates could significantly increase our cost of borrowing or could make it difficult for us to obtain financing in the future. If we are unable to obtain financing in the future, our growth could be limited, which could negatively impact our business and operating results.

**Risks Related to Legal Proceedings, Regulations and Internal Control** 

***From time to time, we may be involved in litigation, regulatory actions or government investigations and inquiries, which could have an adverse impact on our profitability and combined financial position.***

We may be involved in a variety of lawsuits, including class actions and derivative actions, regulatory actions or government investigations and inquiries and commercial or contractual disputes that, from time to time, are significant. In addition, from time to time, we may also be involved in legal proceedings and investigations arising in the normal course of business including, without limitation, commercial or contractual disputes, including warranty claims and other disputes with potential customers and suppliers; intellectual property matters; personal injury claims; environmental issues; tax matters; and employment matters.

It is difficult to predict the outcome or ultimate financial exposure, if any, represented by these matters, and there can be no assurance that any such exposure will not be material. Regardless of their subject matter or merits, class action and derivative action lawsuits and other government investigations may result in significant cost to us, which may not be covered by insurance, may divert the attention of management or may otherwise have an adverse effect on our reputation, business, financial condition and results of operations.

***Recent and potential tariffs imposed by the U.S. government or a global trade war could increase costs and inhibit future sales of our products, which could have a material adverse effect on our business, financial condition and results of operations.***

The U.S. government has and continues to make significant changes in U.S. trade policy and has taken certain actions that could negatively impact U.S. trade, including imposing tariffs on certain imported goods and prohibiting certain imports into the United States. On February 1, 2025, President Trump placed 25 percent tariffs on products imported from Mexico and Canada (10 percent tariffs on Canadian "energy resources") and 10 percent on all products from China through the International Emergency Economic Powers Act of 1977 ("IEEPA"). In retaliation, some countries have implemented, and continue to evaluate imposing additional tariffs on a wide range of American products. There is also a concern that the imposition of additional tariffs by the United States could result in the adoption of tariffs by other countries as well, leading to a global trade war. For example, the U.S. government has from time to time imposed significant tariffs on and prohibited imports of certain product categories imported from China. In particular, since February 2025, the U.S. administration has

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proposed to increase the total tariff level for imported Chinese goods to 145% and additional tariff increase could be imposed as the trade tension between the two countries continues to heighten. On April 11, 2025, China has responded by hiking its levies on U.S. imports to 125%, although the U.S. and China agreed in May to roll back most of these higher tariffs for 90 days. On May 12, 2025, a new executive order was issued by President Donald Trump to (i) suspend the previously imposed 34% reciprocal tariff from the April 2 order for a period of 90 days, through approximately August 12, 2025; (ii) eliminate the retaliatory tariff increases imposed on April 8 and April 9, which had raised the reciprocal tariff rate from 34% to 125%; and (iii) reinstate the 10% baseline tariff on imports originating from China, Hong Kong, and Macau for the duration of the 90-day period. Subsequently, on August 11, 2025, the White House extended this tariff regime, continuing to apply the 10% reciprocal tariff through November 10, 2025, rather than reverting to the previous 34% rate. The recent tariff increases have triggered strong international reactions, raising concerns about potential trade conflicts and economic repercussions. Such tariffs and prohibitions, if expanded to other categories, could have a significant impact on our business, particularly the importation of parts of our batteries and certain production equipment that is manufactured in, or with inputs from, China. If we attempt to renegotiate prices with suppliers or diversify our supply chain in response to tariffs, such efforts may not yield immediate results or may be ineffective. We might also consider increasing prices to our customers once we commence sales of our products; however, this could reduce the competitiveness of our products and adversely affect net sales. If we fail to manage these dynamics successfully, gross margins and profitability could be adversely affected. We cannot predict what actions may ultimately be taken with respect to tariffs or international trade relations, what products may be subject to such actions, or what retaliation actions may be taken in response. Any further deterioration in the international relations could exacerbate these actions and other governmental intervention.

The U.S. or foreign governments may take additional administrative, legislative, or regulatory action that could materially interfere with our ability to sell products in certain countries. Sustained uncertainty about, or worsening of, current global economic conditions and further escalation of trade tensions between the United States and its trading partners could result in a global economic slowdown and long-term changes to global trade, including retaliatory trade restrictions which may have an adverse effect on our business, financial condition and results of operations. Any alterations to our business strategy or operations made in order to adapt to or comply with any such changes would be time-consuming and expensive, and certain of our competitors may be better suited to withstand or react to these changes.

***We are subject to governmental export and import controls, customs and economic sanction laws that could subject us to liability and impair our ability to compete in international markets.***

The United States and various foreign governments have imposed controls, export license requirements and restrictions on the import or export of certain products, as well as customs and other import regulatory requirements. Our products may be subject to such export controls. Compliance with applicable regulatory requirements regarding the import and export of our products may create delays in the introduction of our products in international markets and, in some cases, prevent the export of our products to some countries altogether. Over the past year, several countries have imposed far-reaching export controls with respect to geopolitical conflicts in addition to export control measures targeting certain industries. We cannot rule out the possibility that these measures could have an indirect negative impact on our business and our ability to source certain products from key jurisdictions.

Furthermore, the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC") and other relevant agencies of the U.S. government administer certain laws and regulations that restrict U.S. persons and, in some instances, non-U.S. persons, from conducting activities, transacting business with or making investments in certain countries or with governments, entities and individuals subject to U.S. economic sanctions. Similar economic sanctions are imposed by the European Union and other jurisdictions. Sanctions may evolve rapidly and with far-reaching impact on global business—for example, over the past year, the United States, the United Kingdom, the European Union, as well as certain other countries have imposed multiple rounds of significant sanctions in response to geopolitical conflicts. Our international operations subject us to these laws and

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regulations, which are complex, restrict our business dealings with certain countries, governments, entities and individuals and are constantly changing. Penalties for noncompliance with these complex laws and regulations can be significant and include substantial fines, sanctions or civil and/or criminal penalties and violations can result in adverse publicity, which could harm our business, financial condition and results of operations. Even though we take precautions to prevent conducting business with targets of U.S. sanctions, business could be conducted with those targets or conducted by our distributors. Any such business could have negative consequences, including government investigations, penalties and reputational harm. Our failure to obtain required import or export approval for our products or to comply with applicable laws and regulations with regard to our import and export activity, could harm our international and domestic sales and adversely affect our net sales.

We could be subject to future enforcement action with respect to compliance with governmental export and import controls, customs laws and economic sanctions laws that result in penalties, costs and restrictions on export privileges that could have an adverse effect on our business, financial condition and results of operations.

***We may not successfully obtain and maintain the necessary regulatory permits or approvals for the manufacture and sale of our products in certain markets.***

Our manufacturing of batteries is regulated by the government and is subject to various laws and regulations in jurisdictions where we operate. For example, in establishing our factory in Vietnam, we need to obtain the environmental suitability pre-approval issued by the environmental protection bureau, the registration approval for environmental protection equipment, and the registration approval for hazardous waste, in order to comply with local environmental protection standards. Our compliance with such requirements and standards can be expensive and could lead to an increase in our production costs.

Although we believe that as of the date of this Form 20-F, we possessed all necessary regulatory permits, approvals and clearances for manufacturing in our production bases in operation, failure to maintain or renew such permits, licenses, registrations, certificates or approvals could have a material adverse effect on our business, profitability and prospects.

Furthermore, extensive government regulations and delays in granting relevant approvals can significantly hinder the introduction of new products. In addition, the approvals may be granted on a limited basis or subject to modification of our products. The occurrence of any of these events could increase our operating costs and materially and adversely affect our market competitiveness.

***We are subject to environmental and safety risks and requirements relating to environmental and safety regulations and environmental remediation matters which could adversely affect our business, results of operation and reputation.***

Battery technology development and manufacturing involves certain inherent environmental and safety risks. Some of our employees handle hazardous materials, including chemicals, such as lead, lithium and sulfides, that pose specific challenges. We have engineering and administrative controls in place for handling these materials along with any hazardous substances and the employees who handle such materials are required to follow certain safety procedures, including the use of personal protective equipment. In addition to exposure, materials with lead, lithium and sulfides have the propensity to start fires. While we believe we have taken precautionary measures which include engineering controls, personal protective equipment, procedures and training to prevent human exposures and fires, including annual safety training for our employees, we cannot completely rule out the possibility of human or environmental exposure to hazardous materials used in our development activities and prototype products. Any such exposure could result in future third-party claims against us, damage to our reputation, and heightened regulatory scrutiny, remedial and corrective action obligations or the incurrence of capital expenditures, any of which could limit or impair our ability to attract customers. The occurrence of future events such as these could have a material adverse effect on our business, financial condition, and results of operations.

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In addition to risks listed above, we are subject to numerous international and local environmental laws and regulations governing, among other things, solid and hazardous waste storage, treatment and disposal, and remediation of releases of hazardous materials. Environmental laws and regulations, including used battery recycling, recovery and reuse, are cost intensive activities that we support. In addition, new legislation and regulations may require us to make material changes to our operations, resulting in significant increases to the cost of production. Several developed countries, including the United States and some EU states, have adopted strict environmental regulations relating to the safe disposal and recycling of batteries such as Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries, and have established government-led programs to ensure 100% recycling of designated batteries. Further, some EU states have also implemented programs that encourage the improvement of battery production processes to reduce pollutant emission and the recovery of used batteries for environmentally-friendly recycling. Under some of these programs, relevant authorities have required battery manufacturers to bear the costs of such disposal and recycling. There is no assurance that other jurisdictions where we have substantial operations will not introduce similar environment protection programs in the future. The introduction of new laws, regulations and policies in this respect could increase our operating costs and adversely affect the profitability of our business.

***Global climate change, an increase in related legal and regulatory requirements and an increased related emphasis on ESG matters by various stakeholders could negatively affect our business.***

Increased public awareness and concern over climate change may result in new or increased legal and regulatory requirements to reduce or mitigate the effects of climate change on the environment. Increased costs of energy or compliance with emissions standards due to increased legal or regulatory requirements may cause disruptions in or increased costs associated with our development and manufacturing operations. Any failure to achieve our goals with respect to reducing our impact on the environment or a perception (whether or not valid) of our failure to act responsibly with respect to the environment or to effectively respond to new, or changes in, legal or regulatory requirements concerning climate change or other sustainability concerns could adversely affect our business and reputation.

***Labor disputes could significantly affect our business.***

Labor disputes, work stoppages or slowdowns at our production facilities or any of our contract manufacturers or raw material suppliers could significantly disrupt our operations or our expansion plans. Delay caused by any such disruptions could materially and adversely affect our operations or projection for increased capacity, production and revenue, which could have a material adverse effect on our business, results of operations and financial condition.

***Changes in tax laws or unanticipated tax liabilities could adversely affect our effective income tax rate and profitability.***

Our subsidiaries are subject to income taxes in various jurisdictions around the world. Our effective income tax rate could be adversely affected in the future by a number of factors, including changes in the valuation of deferred tax assets and liabilities, changes in tax laws and regulations or their interpretations and application and the outcome of income tax audits in any of the jurisdictions in which we operate or are otherwise subject to tax. Our effective tax rate may also be impacted by changes in the geographic mix of our earnings.

A significant change in U.S. tax law, or that of other countries where we operate or have a presence, may materially and adversely impact our income tax liability, provision for income taxes and effective tax rate. We regularly assess all of these matters to determine the adequacy of our income tax provision, which is subject to significant judgment.

In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe our tax estimates are reasonable, the final outcome of tax audits

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and related litigation could be materially different than that reflected in our historical income tax provisions and accruals. There can be no assurance that the resolution of any audits or litigation will not have an adverse effect on future operating results.

In August 2022, the United States passed the Inflation Reduction Act ("IRA"), which imposed, among other things, a corporate alternative minimum tax on book income on certain large U.S. corporations, including certain U.S. subsidiaries of certain large multinational corporate groups. These provisions became effective on January 1, 2023. The full effects of these rules and other provisions of the IRA on us are uncertain until further regulations and guidance from the Internal Revenue Service ("IRS") and Treasury are released.

Our tax obligations and effective tax rate in the jurisdictions in which we conduct business could increase, including as a result of the base erosion and profit shifting ("BEPS") project that is being led by the Organization for Economic Co-operation and Development ("OECD"), and other initiatives led by the OECD or jurisdictions where we operate. For example, the OECD is leading work on proposals, commonly referred to as "BEPS 2.0," which, if and to the extent implemented, would make important changes to the international tax system. These proposals are based on two "pillars," involving the reallocation of taxing rights in respect of certain multinational enterprises above a fixed profit margin to the jurisdictions in which they carry on business (subject to certain revenue threshold rules which we do not currently meet but may meet in the future) (referred to as "Pillar One") and imposing a minimum effective corporate tax rate on certain multinational enterprises (referred to as "Pillar Two"). A number of countries in which we conduct business, including through our Singapore and Vietnam subsidiaries, have enacted, or are in the process of enacting, core elements of the Pillar Two rules. We continue to monitor developments and evaluate the potential impacts and applicability of these new rules on our business.

***We may be unable to detect, deter and prevent all instances of fraud or other misconduct committed by our employees, suppliers or other third parties.***

We may be exposed to fraud, bribery or other misconduct committed by our employees, suppliers or third parties that could subject us to financial losses and sanctions imposed by governmental authorities, which may adversely affect our reputation. We implement internal procedures and policies to monitor our operations and ensure overall compliance. As of the date of this Form 20-F, we are not aware of any instances of fraud, bribery, and other misconduct involving employees, suppliers and other third parties that had any material and adverse impact on our business and results of operations. However, we cannot assure you that there will not be any such instances in the future. Although we consider our internal control policies and procedures to be adequate, we may be unable to prevent, detect or deter all such instances of misconduct. Any such misconduct committed against our interests, which may include past acts that have gone undetected or future acts, may have a material and adverse effect on our business and results of operations.

***If our estimates or judgments relating to our critical accounting policies prove to be incorrect or change significantly, our reported results of operations could be materially adversely affected.***

In connection with the preparation of our combined financial statements included in this Form 20-F, we use certain estimates and assumptions, which are more fully described in Note 2 of the financial statements filed as part of this Form 20-F. The estimates and assumptions we use in the preparation of our combined financial statements affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Changes in accounting estimates may occur from period to period. Accordingly, actual results could differ significantly from our estimates. While we believe that these estimates and assumptions are reasonable under the circumstances, they are subject to significant uncertainties, some of which are beyond our control. Should any of these estimates and assumptions change or prove to have been incorrect, it could have a material adverse effect on our financial statement presentation, financial condition, results of operations and cash flows, any of which could cause our share price to decline.

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***We have identified material weaknesses in our internal control over financial reporting. Such material weaknesses could continue to adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner. If we fail to implement and maintain an effective system of internal controls over financial reporting, we may be unable to accurately report our results of operations, meet our reporting obligations or prevent fraud, and investor confidence in our company and the market price of our shares may be negatively impacted.***

In connection with the audit of our combined financial statements as of and for the year ended December 31, 2024, we and our independent registered public accounting firm identified two material weaknesses in our internal control over financial reporting. As defined in the standards established by the PCAOB, a "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the company's annual or interim financial statements will not be prevented or detected on a timely basis.

The material weaknesses identified are i) lack of sufficient accounting and financial reporting personnel with requisite knowledge, skills and experience in application of U.S. GAAP and SEC reporting requirements and ii) the ineffective information technology general controls over the Company's financial system.

We are currently implementing a number of measures to remedy our identified material weaknesses, including 1) upgrading our current IT system to a more advanced version utilizing more secured public cloud and strengthening IT general controls; 2) hiring additional IT specialists to strengthen our information technology compliance oversight; 3) providing additional training for information technology personnel on the importance of information technology general controls; 4) designing and implementing information technology general controls, including controls over change management and the review and update of user access rights and privileges; 5) hiring additional qualified accounting and financial reporting personnel with an appropriate understanding of the U.S. GAAP and SEC reporting requirements; 6) enhancing the capabilities of its existing accounting and financial reporting personnel through continuous training and education in the accounting and reporting requirements under U.S. GAAP and SEC rules and regulations; and 7) developing, communicating and implementing an accounting policy manual in accordance with U.S. GAAP for our accounting and financial reporting personnel for recurring transactions and period-end closing processes. However, we cannot definitively state when the material weakness will be remediated nor quantify the total expected costs of the full remediation effort. There is no guarantee that these measures will be effective in addressing the material weaknesses identified or that we may conclude that they have been fully remediated. In addition, during the course of documenting and testing our internal control procedures, we may identify additional material weaknesses in our internal control over financial reporting. Such material weakness may cause investors to lose confidence in our reported financial information, limit our access to capital markets, harm our results of operations, and lead to a decline in the trading price of our shares.

As a company with less than US$1.235 billion in revenue for our last fiscal year, we qualify as an "emerging growth company" pursuant to the Jumpstart Our Business Startups Act (the "JOBS Act"). An emerging growth company 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 ("Section 404"), in the assessment of the emerging growth company's internal control over financing reporting. 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 have elected to take advantage of such exemptions. However, as we become a public company in the United States, we are subject to the reporting requirements of the Exchange Act and the requirements of the Sarbanes-Oxley Act of 2002. Section 404 requires that we include a report from management on our internal control over financial reporting in our second annual report on Form 20-F. These requirements may place a strain on our systems, personnel and resources. 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

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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.

The process of designing and implementing an effective financial reporting system is a continuous effort that requires us to anticipate and react to changes in our business and the economic and regulatory environments and to expend significant resources to maintain a financial reporting system that is adequate to satisfy our reporting obligations. The implementation of these measures, however, may not fully remediate the material weakness identified in our internal control over financial reporting, and we cannot conclude that the material weakness has had been fully remediated. These activities may also divert management's attention from other business concerns, which could have a material adverse effect on our business, financial condition and results of operations.

If we fail to maintain the adequacy of our internal control over financial reporting, as these standards are modified, supplemented, or amended from time to time, we may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting in accordance with Section 404, meet our reporting obligations, avoid material misstatements in our financial statements, or anticipate and identify accounting issues or other financial reporting risks that could materially impact our consolidated financial statements. Additionally, ineffective internal control over financial reporting could expose us to increased risk of fraud or misuse of corporate assets and subject us to potential delisting from the stock exchange on which we list, regulatory investigations, and civil or criminal sanctions. We may also be required to restate our financial statements from prior periods. 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.

***Failure to comply with anti-corruption and anti-money laundering laws, including the FCPA and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.***

We operate a global business and may have direct or indirect interactions with officials and employees of government agencies or state-owned or government controlled entities. We are subject to the FCPA, the U.S. domestic bribery statute contained in 18 U.S.C. § 201, the U.S. Travel Act, the USA PATRIOT Act, the U.K. Bribery Act and possibly other anti-bribery and anti-money laundering laws in countries in which we conduct activities. These laws generally prohibit companies, their employees and third-party intermediaries from corruptly promising, authorizing, offering or providing, directly or indirectly, improper payments of anything of value to government officials, political parties and private-sector recipients for the purpose of obtaining or retaining business, directing business to any person or securing any improper advantage. Certain laws, including the U.K. Bribery Act, also prohibit soliciting or receiving bribes or improper payments. In addition, U.S. public companies are required to maintain records that accurately and fairly represent their transactions and have an adequate system of internal accounting controls.

Some of the countries where we operate or where our products are sold may not have as strong a commitment to anti-corruption and ethical behavior that is required by U.S. laws or by our corporate policies. Noncompliance with anti-corruption, anti-bribery, anti-money laundering or similar laws and regulations could subject us to substantial fines, whistleblower complaints, adverse media coverage, investigations and severe administrative, civil and criminal sanctions and penalties, collateral consequences, including restrictions on the marketing of our products in certain countries, remedial measures and legal expenses, all of which could have a material adverse effect on our reputation, business, financial condition and results of operations. Further,

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detecting, investigating and resolving actual or alleged violations is expensive and can consume significant time and attention of our senior management.

In addition, if any person in the Cayman Islands knows or suspects, or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering, or is involved with terrorism or terrorist financing and property, and the information for that knowledge or suspicion came to their attention in the course of 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) the Financial Reporting Authority of the Cayman Islands (the "FRA"), pursuant to the Proceeds of Crime Act (As Revised) of the Cayman Islands, if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher, or the FRA, pursuant to the Terrorism Act (As Revised) of the Cayman Islands, if the disclosure relates to involvement with terrorism or terrorist financing and property.

**Risks Related to Separation from Leoch Technology and Being a Standalone Public Company** 

***The spin-off may not be successful, and as an independent publicly traded company, we will not enjoy the same benefits that we did as a subsidiary of Leoch Technology.***

Upon consummation of the spin-off, we will be a standalone public company. The process of becoming a standalone public company may distract our management from focusing on our business and strategic priorities. Moreover, as a separate public company, we will be a smaller company than Leoch Technology before its spin-off, and we may not have access to financial and other resources comparable to those available to Leoch Technology prior to the spin-off or enjoy certain other benefits that we did as a subsidiary of Leoch Technology. We cannot predict the effect that the spin-off will have on our relationship with partners or employees or our relationship with government regulators. We may also be unable to obtain goods, technology and services at prices and on terms as favorable as those available to us prior to the spin-off. Furthermore, as a smaller company, we may be more likely to be negatively impacted by changes in global market conditions, regulatory reforms and other industry factors, which could have a material adverse effect on our business, prospects, financial condition and results of operations.

If the spin-off is delayed or fails to be completed, we or Leoch Technology may face uncertainty in our strategic direction, and our management team may need to redirect focus to stabilizing operations within Leoch Technology's existing structure. Such delays or failures could create uncertainty among our customers, suppliers, and employees, potentially impacting our ability to retain key personnel, maintain supplier relationships, and execute growth plans. Additionally, we may incur significant costs associated with preparatory activities for the spin-off, which may not be recoverable if the transaction does not proceed.

In the event of a delay or failure of the spin-off, we together with Leoch Technology will evaluate alternative strategic options, including remaining within Leoch Technology as a business unit, pursuing other restructuring or partnership opportunities, or seeking additional funding sources to support our independent operations. We may also explore adjustments to our business model or capital structure to mitigate the financial and operational impact of a spin-off failure. However, there is no assurance that any of these contingency plans would be successful or that we would be able to operate effectively under an alternative structure, which could have a material adverse effect on our business, financial condition, and future prospects.

***We may not achieve some or all of the anticipated benefits of the spin-off, and the spin-off may adversely affect our business.***

We may not be able to achieve some or all of the strategic, financial, operational, marketing or other benefits anticipated to result from the spin-off, or such benefits may be delayed or not occur at all. There is risk that we will not achieve the following anticipated benefits, among others, following the spin-off:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• strengthening the operational management efficiencies of both Leoch Technology and us;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtaining reasonable valuation in the longer term and maximizing the interests of all shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• creating two independent businesses with enhanced geographic focus well positioned for continued growth and
market share capture in respective areas; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enabling shareholders and investors to assess the investment propositions of each business individually and
select whether to continue to participate in both businesses or adjust their investment exposure.

We may not achieve these and other anticipated benefits for a variety of reasons, including, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the spin-off will require significant amounts of management's time
and effort, which may divert management's attention from operating and growing our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following the spin-off, we may be more susceptible to market fluctuations
and other adverse events than if we were still a part of Leoch Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs associated with being a standalone public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• following the spin-off, our business will be less diversified than the
Leoch Technology business prior to the spin-off; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the other actions required to separate our and Leoch Technology's respective businesses could disrupt our
operations.

We cannot predict with certainty when the benefits anticipated from the spin-off will occur or the extent to which they will be achieved. If we fail to achieve some or all of the benefits anticipated to result from the spin-off, or if such benefits are delayed, our business, financial condition and results of operations could be adversely affected.

***Our historical financial information is not necessarily representative of the results we would have achieved as a standalone public company and may not be a reliable indicator of our future results.***

Our historical financial statements have been derived from the Leoch Technology combined and consolidated financial statements and accounting records, and these financial statements and the other historical financial information of Leoch Energy included in this Form 20-F are presented on a combined basis. This combined information does not necessarily reflect the financial position, results of operations and cash flows we would have achieved as a standalone public company during the period presented, or those that we will achieve in the future.

This is primarily because of the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the period covered by our combined financial statements, our business operated within legal entities which
hosted portions of other Leoch Technology businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the internal reorganization, Leoch Technology was the sole entity which received proceeds from debt and
equity financing. Cash proceeds from such equity financings were allocated on an as-needed basis between us and Leoch Technology's other subsidiaries. As a result, our historical financial information may not be indicative of future results of
operations, financial position, shareholders' equity and cash flows had we operated as a stand-alone entity and contracted at arm's length with unrelated parties for funding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our combined statements of comprehensive income include all revenues, costs and expenses directly attributable to
the Global Markets, including those expenses incurred by the Leoch Technology and its subsidiaries, but not solely relating to the Global Markets, reflecting allocations of shared expenses from Leoch Technology to us. These allocated expenses
primarily relate to costs incurred on support functions that historically been borne by Leoch Technology's headquarters, such as payroll expenses and other expenditures for research and development, office rental expenses, office utilities,
information technology

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support and certain corporate functions including senior management, finance, legal and human resources and other shared expenses. The allocations were made on a direct usage basis when identifiable, with a remainder allocated using applicable cost drivers where specific identification was not determinable. These allocations were made on a basis considered reasonable by management but may differ from actual costs which would have been incurred if the we operated independently during the periods presented. <br>

Therefore, our historical financial information may not necessarily be indicative of our future financial position, results of operations or cash flows, and the occurrence of any of the risks discussed in this "Risk Factors" section, or any other event, could cause our future financial position, results of operations or cash flows to materially differ from our historical financial information.

***The separation and distribution are subject to a number of conditions. The transactions may not take place, may be delayed or may not take place in the manner currently anticipated.***

The separation and distribution are a series of transactions designed to fully separate us from Leoch Technology and list our ordinary shares on NASDAQ, following which Leoch Technology would no longer be our shareholder. The separation and distribution are subject to a number of conditions, including necessary regulatory approvals and other uncertainties. If the conditions are not satisfied (and not otherwise waived), the separation and/or distribution will not take place. See "The Separation and Distribution Transactions" and the Leoch Technology Circular, a copy of which is filed as Exhibit 15.4 to this registration statement. The separation and distribution encompasses a series of complex transactions involving a number of professional parties and regulators across multiple jurisdictions, and may not be completed in the manner and within the time expected, or at all. If the separation and distribution from Leoch Technology are not completed, the benefits we currently expect from the separation and distribution, such as our strategic independence from Leoch Technology, would not materialize. In that event, Leoch Technology will continue to hold sufficient shares to exercise control over all matters requiring shareholder approval, whether such approval is required as an ordinary resolution or a special resolution as a matter of Cayman Islands law or under the rules and regulations of the place of the exchange on which Leoch Technology is listed, such as approval of the financial statements, declarations of dividends, the appointment and removal of directors, alteration of share capital (including increases, consolidations, subdivision, repurchase and cancellation), adoption of share incentive schemes, share issuances and amendments to our memorandum and articles of association.

***Conflicts of interest may arise because our chairman of the board of directors has substantial interest in Leoch Technology.***

Dr. Li DONG, our Chairman and Chief Executive Officer, is also the controlling shareholder of Leoch Technology. His interests in Leoch Technology and us could create, or appear to create, conflicts of interest with respect to decisions involving both us and Leoch Technology that could have different implications for Leoch Technology and us. For example, conflicts of interest could arise if we enter into any new commercial arrangements with Leoch Technology in the future, or if Leoch Technology decides to compete with us in any of our markets. In addition, there is a potential conflict of interest as he may devote more of his personal time to it rather than to our company. We cannot assure you that our memorandum and articles of association, policies and procedures will adequately address potential conflicts of interest or that potential conflicts of interest will be resolved in our favor or that we will be able to take advantage of corporate opportunities presented to individuals with a substantial interest in Leoch Technology. As a result, we may be precluded from pursuing certain advantageous transactions or growth initiatives.

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

We are an exempted company limited by shares incorporated under the laws of the Cayman Islands and substantially all of our assets are located outside of the United States. In addition, some of our current directors and executive officers are not United States nationals or residents. For example, Dr. Li DONG, our Chairman and

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Chief Executive Officer, is not national of the United States and does not reside in the United States. Substantially all of the assets of these persons are located outside the United States. As a result, it may be difficult or impossible for you to bring an action in the United States against us or against these individuals 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 certain jurisdictions where we operate may render you unable to enforce a judgment against us, our directors and executive officers or assets of these persons. For more information regarding the relevant laws of the Cayman Islands and certain jurisdictions in Asia, see "Item 10.B. Memorandum and Articles of Association — Enforceability of Civil Liabilities."

***Our ability to operate our business effectively may suffer if we do not, quickly and cost effectively, establish our own research and development, financial, administrative, corporate governance, listed company compliance and other support functions necessary to operate as a standalone public company.***

In connection with our separation from Leoch Technology, we are creating our own research and development, financial, administrative, corporate governance, listed company compliance and other support systems, including for the services Leoch Technology had historically provided to us. We expect this process to be complex, time consuming and costly. Any failure or significant downtime in our own research and development, financial, administrative or other support systems or in the Leoch Technology support systems during the transitional period in which Leoch Technology provides us with support could negatively impact our business operations.

***The transitional services Leoch Technology has agreed to provide us may not be sufficient for our needs. In addition, we or Leoch Technology may fail to perform under various transaction agreements that will be executed as part of the spin-off or we may fail to have necessary systems and services in place when certain of the transaction agreements expire.***

Following the spin-off, we and Leoch Technology will operate separately, each as an independent public company. We intend to enter into a Separation and Distribution Agreement with Leoch Technology related to the separation and distribution, and we intend to enter into several other agreements with Leoch Technology prior to completion of the spin-off to effect the separation and provide a framework for our relationship with Leoch Technology after the spin-off. These agreements will govern the relationships between Leoch Technology and us subsequent to the completion of the spin-off and will provide for the separation of the assets, employees, liabilities and obligations (including investments, property and employee benefits and tax liabilities) of Leoch Technology and its subsidiaries that constitute the Leoch Energy Business and are attributable to periods prior to, at and after the separation. In addition to the Separation and Distribution Agreement (which contains many of the key provisions related to our separation from Leoch Technology and the distribution of our shares to holders of Leoch Technology shares), including Brand Licensing Framework Agreement and Product Procurement Framework Agreement. See "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions—Agreements Between Leoch Technology and Us."

Certain of these agreements will provide for the performance of key business services by Leoch Technology for our benefit for a period of time after the spin-off. These services may not be sufficient to meet our needs and the terms of such services may not be equal to or better than the terms we may have received from unaffiliated third parties.

We will rely on Leoch Technology to satisfy its performance and payment obligations under these agreements. If Leoch Technology is unable to satisfy its obligations under these agreements, including its indemnification obligations, we could incur operational difficulties or losses. If we do not have in place our own systems and services, or if we do not have agreements with other providers of these services once certain transitional agreements expire, we may not be able to operate our business effectively and this may have an

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adverse effect on our business, financial condition and results of operations. In addition, after our agreements with Leoch Technology expire, we may not be able to obtain these services at as favorable prices or on as favorable terms.

Under the Separation and Distribution Agreement and related ancillary agreements, from and after the separation, we and Leoch Technology will be generally responsible for the debts, liabilities and other obligations related to the businesses which we own and operate following the consummation of the separation. Although we do not expect to be liable for any obligations that are not allocated to us under the Separation and Distribution Agreement, a court could disregard the allocation agreed to between the parties, and require that we assume responsibility for obligations allocated to Leoch Technology (for example, tax liabilities), particularly if Leoch Technology were to refuse or to be unable to pay or perform the allocated obligations.

***Our and Leoch Technology's contracts may contain provisions requiring the notice or consent of third parties in connection with the separation. If we or Leoch Technology fail to notify these third parties or obtain their consents, we may be unable to enjoy the benefit of these contracts in the future.***

We have entered into various business, financial and other contracts in the ordinary course of business. Some of these contracts, including certain commercial loan agreements, may require us to notify or seek prior consent from the counterparties in connection with the separation. We believe that we have carried out our contractual obligations and are not otherwise in material default or violation of these contracts. However, if any contractual counterparties find us in default or violation due to failure to notify them or obtain their prior consent in connection with the separation or otherwise, they may terminate their business relationship with us, declare any repayment obligations immediately due and/or pursue legal actions against us, which may materially and adversely affect our business, financial condition and results of operations.

Furthermore, Leoch Technology has entered into various business, financing and other contracts in the ordinary course of business. Some of these contracts may require Leoch Technology to notify or seek prior consent from the counterparties in connection with the separation. Leoch Technology has notified us that they believe that they have carried out their contractual obligations and are not otherwise in material default or violation of those contracts. However, if any contractual counterparties find Leoch Technology in default or violation due to failure to notify them or obtain their prior consent in connection with the separation or otherwise, they may terminate their business relationship with Leoch Technology or us, declare any repayment obligations immediately due and/or pursue legal actions against Leoch Technology or us, which may materially and adversely affect our business, financial condition and results of operations.

***The spin-off may be a taxable transaction to Leoch Technology shareholders.***

We do not intend to obtain opinions or tax rulings as to whether the spin-off will qualify as a tax-free transaction in any taxing jurisdiction. If the spin-off is treated as a taxable transaction under the laws of any taxing jurisdiction in which Leoch Technology shareholders are tax resident, such shareholders would be required to recognized taxable income with respect to the spin-off in that jurisdiction. Loech Technology shareholders should consult their tax advisers regarding the possible tax consequences of the spin-off in their particular circumstances.

***There can be no assurance that we will not be classified as a Singapore tax resident.***

There is a risk that we may be treated as a Singapore tax resident for Singapore income tax purposes. Under Singapore tax law, the tax residency of a company is determined by where the business is controlled and managed. The residency status of a company may change from year to year. Generally, a company is considered a Singapore tax resident for a particular year of assessment if the control and management of its business was exercised in Singapore in the preceding calendar year. "Control and management" is defined as the making of decisions on strategic matters, such as those concerning the company's policy and strategy. Where the control

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and management of a company is exercised is a question of fact. There is uncertainty as to whether the control and management of our Company is indeed exercised in Singapore such that Leoch Energy Inc may be deemed as a Singapore tax resident. In making such determination, Singapore tax authority will consider all facts provided by the company to determine if the control and management of the business is indeed exercised in Singapore. If Leoch Energy Inc is regarded as a Singapore tax resident, any dividends received or deemed received by Leoch Energy Inc in Singapore from subsidiaries located in a foreign jurisdiction with a rate of income tax or tax of a similar nature of less than 15% may be subject to additional Singapore income tax.

Income is considered to have been received in Singapore when it is: (i) remitted to, transmitted or brought into Singapore (ii) applied in or towards satisfaction of any debt incurred in respect of a trade or business carried on in Singapore or (iii) applied to purchase any movable property that is brought into Singapore. In addition, as Singapore does not impose withholding tax on dividends declared by Singapore resident companies, if Leoch Energy Inc is considered a Singapore tax resident, dividends paid to the holders of our Ordinary Shares will not be subject to withholding tax in Singapore. Regardless of whether or not Leoch Energy Inc is regarded as a Singapore tax resident, holders of our Ordinary Shares who are not Singapore tax residents would generally not be subject to Singapore income tax on gains derived from the disposal of our Ordinary Shares if such shareholders do not maintain a permanent establishment in Singapore, to which the disposition gains may be effectively connected, and the entire process (including the negotiation, deliberation, execution of the acquisition and sale, etc.) leading up to the actual acquisition and sale of our Ordinary Shares is performed outside of Singapore. For Singapore resident shareholders, if the gain from disposal of our ordinary shares is considered by Singapore tax authority as revenue in nature, such gain will generally be subject to Singapore income tax, and not taxable in Singapore if the gain is considered by Singapore tax authority as capital gains in nature to the extent that it does not fall within the ambit of Section 10L of the Singapore Income Tax Act. For a discussion of Singapore tax consequences relevant to us and our shareholders, see "Item 10.E. Taxation—Singapore Tax Considerations." Any Singapore taxes imposed on the Company may have a negative impact on the value of your investment in us.

***The requirements of being a standalone public company may strain our resources and distract our management, which could make it difficult to manage our business.***

Following the completion of the separation and distribution, we will be required to comply with various regulatory and reporting requirements, including those required by the SEC. Complying with these reporting and other regulatory requirements will be time-consuming and will result in increased costs to us and could have a negative effect on our business, financial condition and results of operations.

We are subject to the reporting requirements of the Exchange Act and the requirements of the Sarbanes-Oxley Act. These requirements may place a strain on our systems, personnel and resources. The Exchange Act requires, among other things, that we file annual and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting. To maintain and improve the effectiveness of our disclosure controls and procedures, we are committing significant resources, hiring additional staff and providing additional management oversight. We are implementing additional procedures and processes for the purpose of addressing the standards and requirements applicable to public companies. Sustaining our growth will also require us to commit additional management, operational and financial resources to identify new professionals to join our company and to maintain appropriate operational and financial systems to adequately support expansion. These activities may divert management's attention from other business concerns, which could have a material adverse effect on our business, financial condition and results of operations.

***Members of our management team have limited experience managing a U.S. public company.***

Some members of our management team have limited experience managing a publicly traded company in the United States, interacting with U.S. public company investors and complying with the increasingly complex

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laws pertaining to public companies in the United States. Our management team may not successfully or efficiently manage our transition to being a U.S. public company that is subject to significant regulatory oversight and reporting obligations under the federal securities laws and the continuous scrutiny of securities analysts and investors. These new obligations and constituents require significant attention from our senior management and could divert their attention away from the day-to-day management of our business, which could harm our business, financial condition and results of operations.

**Risks Related to Ownership of Our Shares** 

***The price of our shares after the spin-off may be volatile.***

The market price for our shares may be volatile. This market volatility, as well as general economic, market or political conditions could reduce the market price of our shares in spite of our operating performance. In addition, if trading of our shares is substantially localized on the NASDAQ, we may not meet the liquidity or other criteria necessary for inclusion in various stock indices that are based on our trading volumes on another exchange. This could have a further negative impact on the price of our shares.

Furthermore, in the past, securities class action litigation has often been brought against companies following a decline in the market price of its securities. If we face such litigation, it could result in substantial costs and a diversion of management's attention and resources, which could harm our business and financial results.

***If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about our business, our share price and trading volume could decline.***

The trading market for our 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 our shares, the market price for our 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 our shares to decline.

***Techniques employed by short sellers may drive down the market price of our shares.***

Short selling is the practice of selling securities that the seller does not own but rather has borrowed from a third party with the intention of buying identical securities back at a later date to return to the lender. The short seller hopes to profit from a decline in the value of the securities between the sale of the borrowed securities and the purchase of the replacement shares, as the short seller expects to pay less in that purchase than it received in the sale. As it is in the short seller's interest for the price of the security to decline, many short sellers publish, or arrange for the publication of, negative opinions regarding the relevant issuer and its business prospects in order to create negative market momentum and generate profits for themselves after selling a security short. These short attacks have, in the past, led to selling of shares in the market.

It is not clear what effect such negative publicity could have on us. If we were to become the subject of any unfavorable allegations, whether such allegations are proven to be true or untrue, we could have to expend a significant amount of resources to investigate such allegations and/or defend ourselves. While we would strongly defend against any such short seller attacks, we may be constrained in the manner in which we can proceed against the relevant short seller by principles of freedom of speech, applicable state law or issues of commercial confidentiality. Such a situation could be costly and time-consuming and could distract our management from growing our business. Even if such allegations are ultimately proven to be groundless, allegations against us could severely impact our business operations, and any investment in our shares could be greatly reduced or even rendered worthless.

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***If a substantial number of our shares become available for sale and are sold in a short period of time, the market price of our shares could decline.***

If our existing significant shareholders sell substantial amounts of our shares in the market, the market price of our shares could decrease significantly. The perception in the market that our existing significant shareholders might sell shares could also depress our share price. A decline in the price of our shares may impede our ability to raise capital through the issuance of additional shares or other equity securities.

***The combined post-spin-off value of our shares and the Leoch Technology shares may not equal or exceed the aggregate pre-spin-off value of the Leoch Technology shares and our shares.***

After the spin-off, the Leoch Technology shares will continue to be listed and traded on the Hong Kong Stock Exchange. Our shares will be traded under the symbol "EMS" on the NASDAQ. We have no current plans to apply for listing on any additional stock exchanges. As a result of the spin-off, it is expected that the trading prices of Leoch Technology shares in the regular-way market at market open on the trading day following the distribution date will be lower than the trading prices in the regular-way market at market close on the distribution date, because the trading prices will no longer reflect the value of the Leoch Energy Business. However, there can be no assurance that the aggregate market value of the Leoch Technology shares and our shares following the spin-off will be higher than, equal to or lower than the market value of Leoch Technology shares if the spin-off did not occur. This means, for example, that the combined trading prices of fifty (50) Leoch Technology shares and one Leoch Energy share after market open following the distribution date may be equal to, greater than or less than the trading prices of one Leoch Technology share prior to the distribution date.

***No assurance can be given that we will pay or declare dividends in the future.***

For the short-to-medium term, we intend to retain any earnings to finance the development of our business, and no assurance can be given that we will pay or declare dividends in the future. The Leoch Energy Board may, in its discretion, recommend the payment of a dividend in respect of a given fiscal year. However, the declaration, timing, and amount of any dividends to be paid by us following the spin-off will be subject to the approval of our shareholders. The determination of the Leoch Energy Board as to whether to recommend a dividend and the approval of any such proposed dividend by our shareholders, will depend upon many factors, including our financial condition, earnings, corporate strategy, capital requirements of our operating subsidiaries, covenants, legal requirements and other factors deemed relevant by the Leoch Energy Board and shareholders. See "Item 10. Additional Information—10.B. Memorandum and Articles of Association—Dividends" for more information.

***Your percentage ownership of our shares may be diluted in the future.***

In the future, we may issue additional shares in connection with acquisitions, capital markets transactions or otherwise, including equity awards that we will be granting to our directors, officers and employees and conditional capital we hold for purposes of our employee participation plans. These additional shares will have a dilutive effect on our earnings per share, which could adversely affect the market price of our shares.

***Following the spin-off, Dr. Li DONG, our controlling shareholder, will own more than 70% of the voting power of our outstanding shares, and the interests of Dr. Li DONG may differ from the interests of our other shareholders.***

Following the spin-off, Dr. Li DONG, our controlling shareholder, will own more than 70% of the voting power of our outstanding shares. Dr. Li DONG may have different interests than other Leoch Energy shareholders on matters which may affect our operational and financial decisions. Among other things, their influence could delay, defer or prevent a sale of Leoch Energy that other shareholders support, or, conversely, this influence could result in the consummation of such a transaction that other shareholders do not support. This concentrated influence could discourage a potential investor from seeking to acquire Leoch Energy shares and, as a result, might harm the market price of Leoch Energy shares.

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***We will be a "controlled company" within the meaning of the rules of NASDAQ and, as a result, will qualify for exemptions from certain corporate governance requirements. Although we do not intend to rely on these exemptions at this time, we may do so in the future and you may not have the same protections afforded to shareholders of companies that are subject to such requirements.***

Upon the completion of the separation and distribution, Dr. Li DONG, will hold or have the ability to control over 70% of the voting power of our outstanding share capital. As a result, upon the completion of the separation and distribution, we will be a "controlled company" as defined under the corporate governance rules of NASDAQ. Under these rules, a listed company of which more than 50% of the voting power is held by an individual, group or another company is a "controlled company" and may elect not to comply with certain corporate governance requirements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that a majority of our Board consist of independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement that our compensation, nominating and corporate governance committee be composed entirely of
independent directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the requirement for an annual performance evaluation of our compensation, nominating and corporate governance
committee.

While we do not rely on these exemptions at this time, we may in the future elect to rely on these exemptions and, accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of the NASDAQ.

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

We are an "emerging growth company," as defined in the U.S. Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and we may take advantage of certain exemptions from various requirements applicable to other public companies that are not emerging growth companies including, most significantly, not being required to comply with the auditor attestation requirements of Section 404 of Sarbanes-Oxley Act of 2002 for so long as we are an emerging growth company. As a result, if we elect not to comply with such auditor attestation requirements, our investors may not have access to certain information they may deem important.

***As of the date of the spin-off, we will be a foreign private issuer and, as a result, we will not be subject to U.S. proxy rules and will be subject to Exchange Act reporting obligations that, to some extent, are more lenient and less frequent than those of a U.S. domestic public company.***

Upon consummation of the spin-off, we will report under the Exchange Act as a non-U.S. company with foreign private issuer status. Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies, including (i) the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in respect of a security registered under the Exchange Act, (ii) 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 and (iii) the rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form 10-Q containing unaudited financial and other specified information, or current reports on Form 8-K, upon the occurrence of specified significant events. In addition, foreign private issuers are not required to file their annual report on Form 20-F until four months after the end of each financial year, while U.S. domestic issuers that are large accelerated filers are required to file their annual report on Form 10-K within 60 days after the end of each fiscal year. Foreign private issuers are also exempt from the Regulation FD, aimed at preventing issuers from making selective disclosures of material information. As a result of the above, you may not have the same protections afforded to shareholders of companies that are not foreign private issuers or controlled companies.

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***As a foreign private issuer, we are permitted and expect to follow certain home country corporate governance requirements in lieu of certain NASDAQ requirements applicable to domestic issuers.***

As a foreign private issuer, and if our shares are approved for listing on the NASDAQ, we will be permitted to, and intend to, follow certain home country corporate governance requirements in lieu of certain NASDAQ requirements. Following our home country corporate governance requirements, as opposed to the requirements that would otherwise apply to a U.S. company listed on the NASDAQ, may provide less protection than is afforded to investors under the NASDAQ rules applicable to domestic issuers.

In particular, we currently intend to follow our home country practice that: (i) does not require us to disclose any agreements or arrangements of third party director or nominee compensation, (ii) does not require us to solicit proxy and hold meetings of our shareholders every year, (iii) does not require us to make available to shareholders an annual report containing audited financial statements within a reasonable time following our filing of an annual report with the SEC, (iv) does not require that a majority of our board of directors satisfy the "independence" requirements of Rule 5605 of NASDAQ Stock Market Rules, (v) does not require each member of our compensation committee and nominating and corporate governance committee to be an independent director, (vi) does not require that director nominees be either selected or recommended by independent directors, (vii) does not require us to seek shareholder approval prior to the issuance of securities in connection with the acquisition of stock or assets of another company, (viii) does not require us to seek shareholder approval prior to the issuance of securities when the issuance or potential issuance will result in a change of control of the Company, (ix) does not require us to seek shareholders' approval for amending our share incentive plan, (x) does not require us to obtain shareholder approval for issuing additional securities exceeding 20% of our outstanding ordinary shares, (xi) does not require that voting rights of existing shareholders cannot be disparately reduced or restricted through any corporate action or issuance, and (xii) does not restrict a company's transactions with directors, requiring only that directors exercise a duty of care and owe certain fiduciary duties to the companies for which they serve. In the future, we may rely on other exemptions provided by NASDAQ.

***We may lose our foreign private issuer status, which would then require us to comply with the Exchange Act's domestic reporting regime and cause us to incur significant additional legal, accounting and other expenses.***

We will be a foreign private issuer as of the date of the spin-off and therefore we will not be required to comply with all of the periodic disclosure and current reporting requirements of the Exchange Act applicable to U.S. domestic issuers. In order to maintain our status as a foreign private issuer, either (a) a majority of our shares must be directly or indirectly owned of record by non-residents of the United States or (b)(i) a majority of our executive officers or directors may not be United States citizens or residents, (ii) more than 50% of our assets cannot be located in the United States and (iii) our business must be administered principally outside the United States.

If we were to lose our foreign private issuer status, we would be required to comply with the Exchange Act reporting and other requirements applicable to U.S. domestic issuers, which are more detailed and extensive than the requirements for foreign private issuers. For instance, we would be required to make changes in our corporate governance practices in accordance with various SEC and NASDAQ rules. The regulatory and compliance costs to us under U.S. securities laws when we would be required to comply with the reporting requirements applicable to a U.S. domestic issuer could be significantly higher than the costs we will incur as a foreign private issuer. As a result, a loss of foreign private issuer status could increase our legal and financial compliance costs and could make some activities highly time-consuming and costly. If we were required to comply with the rules and regulations applicable to U.S. domestic issuers, it could make it more difficult and expensive for us to obtain director and officer liability insurance, and we could be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These rules and regulations could also make it more difficult for us to attract and retain qualified members of the Leoch Energy Board.

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***There can be no assurance that we will not be a passive foreign investment company, or PFIC, for the current or any future taxable year, which could result in adverse U.S. federal income tax consequences to U.S. investors in our ordinary shares.***

In general, a non-U.S. corporation is a PFIC for U.S. federal income tax purposes for any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii) 50% or more of the average value of its assets (generally determined on an average quarterly basis) consists of assets that produce, or are held for the production of, passive income. For purposes of these calculations, a non-U.S. corporation that owns, directly or indirectly, at least 25% by value of the shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation and received directly its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties (other than certain royalties derived in an active business), and certain investment gains. Cash is generally a passive asset for these purposes. Goodwill and other intangible assets (the value of which may be determined by reference to the excess of the sum of the corporation's market capitalization and liabilities over the value of its assets) are generally characterized as active assets to the extent associated with business activities that produce active income.

Based on the composition of our income and assets and the estimated value of our assets (including goodwill and other intangible assets), we do not expect to be a PFIC for our 2025 taxable year. However, our PFIC status for any taxable year is an annual factual determination that can be made only after the end of that year and will depend on the composition of our income and assets and the average value of our assets from time to time, including the value of our goodwill and other intangible assets (which may be determined, in part, by reference to our market capitalization, which could be volatile). Consequently, there can be no assurance that we will not be a PFIC for any taxable year.

U.S. shareholders of Leoch Technology that received our shares in the spin-off transaction ("Leoch Technology U.S. Shareholders") should be aware that neither us nor Leoch Technology have analyzed our, or Leoch Technology's, PFIC status for the current or any prior taxable year. Such PFIC status may affect the U.S. federal income tax consequences of the spin-off transaction to the Leoch Technology U.S. Shareholders, and may also be relevant to determining whether Leoch Technology U.S. Shareholders could be required to treat us as a PFIC for the current or any future taxable year even if we do not otherwise meet the requirements for being a PFIC for such year. Leoch Technology U.S. Shareholders should consult their tax advisers regarding the possible consequences of our, or Leoch Technology's, PFIC status for the current or any prior taxable year.

If we are a PFIC for any taxable year during which a U.S. taxpayer owns or is deemed to own our ordinary shares, the U.S. taxpayer generally will be subject to adverse U.S. federal income tax consequences, including increased tax liability on disposition gains and "excess distributions" (subject to alternative treatment if the U.S. taxpayer is able to, and makes, a valid mark-to-market election) and additional reporting requirements. See "Item 10. Additional Information—10.E. Taxation-Material U.S. Federal Income Tax Considerations—Passive Foreign Investment Company Rules."

***Under certain attribution rules, certain of our non-U.S. subsidiaries are expected to be treated as controlled foreign corporations for U.S. federal income tax purposes and as a result, there could be adverse U.S. federal income tax consequences to U.S. investors that own our ordinary shares (directly or indirectly) and are treated as "Ten Percent Shareholders."***

Certain "Ten Percent Shareholders" (as defined below) in a non-U.S. corporation that is a controlled foreign corporation (a "CFC") for U.S. federal income tax purposes generally are required to include in income for U.S. federal income tax purposes their pro rata share of the CFC's "Subpart F income," investment of earnings in U.S. property and "global intangible low taxed income," even if the CFC has made no distributions to its shareholders. A non-U.S. corporation generally will be a CFC for U.S. federal income tax purposes if Ten Percent Shareholders own, directly, indirectly or constructively (through attribution), more than 50% of either the total combined voting power of all classes of stock of such corporation entitled to vote or of the total value of the

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stock of such corporation. A "Ten Percent Shareholder" is a United States person (as defined by the U.S. Internal Revenue Code of 1986, as amended) that owns directly or indirectly, or is considered to own constructively, 10% or more of the total combined voting power of all classes of stock entitled to vote of such corporation or 10% or more of the total value of the stock of such corporation. We are not expected to be a CFC. However, the determination of CFC status is complex and includes certain "downward attribution" rules pursuant to which certain of our non-U.S. subsidiaries are expected to be treated as constructively controlled by our U.S. subsidiaries and therefore such non-U.S. subsidiaries are expected to be treated as CFCs. We do not intend to provide information to Ten Percent Shareholders that may be required in order for those shareholders to properly report their U.S. taxable income with respect to our or our subsidiaries' operation. Prospective investors that may be or become Ten Percent Shareholders who directly or indirectly own our ordinary shares should consult their tax adviser with respect to the potential adverse tax consequences of holding our ordinary shares.

***Our post-listing memorandum and articles of association contain anti-takeover provisions, which could have a material adverse effect on the rights of holders of our ordinary shares.***

Some provisions of our Post-Listing M&AA (defined below) may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable. For example, the directors may issue from time to time, out of the authorized share capital of the Company (other than the authorized but unissued ordinary shares), series of preferred shares in their absolute discretion and without approval of the shareholders; provided, however, before any preferred shares of any such series are issued, the directors shall by resolution of directors determine, with respect to any series of preferred shares, the terms and rights of that series. 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 us in a tender offer or similar transaction.

***Claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.***

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 courts of the Cayman Islands to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.

Our Post-Listing M&AA provide that every director (including any alternate director), secretary, assistant secretary, or other officer for the time being and from time to time of our company (but not including our company's auditors) and the personal representatives of the same (each an "Indemnified Person") shall be indemnified and secured harmless against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Person, other than by reason of such Indemnified Person's own dishonesty, willful default or fraud, in or about the conduct of our company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such Indemnified Person in defending (whether successfully or otherwise) any civil proceedings concerning our company or its affairs in any court whether in the Cayman Islands or elsewhere. We intend to enter into indemnification agreements with each of our current and future directors and officers. These agreements require us to indemnify these individuals to the fullest extent permitted under Cayman Islands law against liability that may arise by reason of their service to us and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

The above limitations on liability and our indemnification obligations limit the personal liability of our directors and officers for monetary damages for breach of their duties as directors by shifting the burden of such losses and expenses to us. Certain liabilities or expenses covered by our indemnification obligations may not be covered by our directors' and officers' liability insurance or the coverage limitation amounts may be exceeded.

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As a result, any claims for indemnification by our directors and officers may reduce our available funds to satisfy successful third-party claims against us and may reduce the amount of money available to us.

***Forum selection provisions in our post-listing memorandum and articles of association could limit the ability of holders of our shares or other securities to obtain a favorable judicial forum for disputes with us, our directors and officers, and potentially others.***

Our Post-Listing M&AA provides that, for the avoidance of doubt and without limiting the jurisdiction of the courts of the Cayman Islands to hear, settle and/or determine disputes related to us, the courts of the Cayman Islands shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the shareholders, (iii) any action asserting a claim arising pursuant to any provision of the Companies Act (Revised) of the Cayman Islands (the "Companies Act") or our articles of association including but not limited to any purchase or acquisition of shares, security or guarantee provided in consideration thereof, or (iv) any action asserting a claim against the Company which if brought in the United States of America would be a claim arising under the internal affairs doctrine (as such concept is recognized under the laws of the United States from time to time).

Unless we consent in writing to the selection of an alternative forum, the United States District Court for the Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute, the state courts in New York County, New York) shall be the exclusive forum within the United States for the resolution of any complaint asserting a cause of action arising out of or relating in any way to the federal securities laws of the United States, regardless of whether such legal suit, action, or proceeding also involves parties other than the Company. Any person or entity purchasing or otherwise acquiring any share or other securities in the Company, or purchasing or otherwise acquiring the shares issued pursuant to deposit agreements, cannot waive compliance with the federal securities laws of the United States and the rules and regulations thereunder with respect to claims arising under the Securities Act and shall be deemed to have notice of and consented to the provisions of our articles of association. This choice of forum provision may limit a shareholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers, employees or agents, which may discourage such lawsuits against us and such persons. Alternatively, if a court were to find these provisions of our Post-Listing M&AA inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, we may incur additional costs associated with resolving such matters in other jurisdictions, which could adversely affect our business, financial condition and results of operations.

***Because we are incorporated under the laws of the Cayman Islands, you may face difficulties in protecting your interests, and your ability to protect your rights through the U.S. federal courts may be limited.***

We are an exempted company incorporated under the Companies Act. As a result, it may be difficult for investors to effect service of process within the United States upon our directors or officers, or enforce judgments obtained in the U.S. courts against our directors or officers.

Our corporate affairs are governed by our memorandum and articles of association, as amended and restated from time to time, the Companies Act and the common law of the Cayman Islands. The rights of shareholders to take action against the directors, actions by minority shareholders and the fiduciary duties of our directors 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 English common law, the decisions of whose courts are of persuasive authority, but are not binding on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors under Cayman Islands law are different from what they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a different body of securities laws as compared to the United States, and certain states, such as Delaware, may have more fully

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developed and judicially interpreted bodies of corporate law. In addition, Cayman Islands companies may not have standing to initiate a shareholders derivative action in a federal court of the United States.

We have been advised by Harney Westwood & Riegels 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), the Cayman Islands Grand Court of the Cayman Islands will at common law enforce final and conclusive in personam judgments of state and/or federal courts of the United States of America, or the Foreign Court, of a debt or definite sum of money against the Company (other than a sum of money payable in respect of taxes or other charges of a like nature, a fine or other penalty (which may include a multiple damages judgment in an anti-trust action) or where enforcement would be contrary to public policy). The Grand Court of the Cayman Islands may also at common law enforce final and conclusive in personam judgments of the Foreign Court that are non-monetary against the Company, for example, declaratory judgments ruling upon the true legal owner of shares in a Cayman Islands company. The Grand Court of the Cayman Islands will exercise its discretion in the enforcement of non-money judgments by having regard to the circumstances, such as considering whether the principles of comity apply. To be treated as final and conclusive, any relevant judgment must be regarded as res judicata by the Foreign Court. A debt claim on a foreign judgment must be brought within six years of the date of the judgment, and arrears of interest on a judgment debt cannot be recovered after six years from the date on which the interest was due. The courts of the Cayman Islands are unlikely to enforce a judgment obtained from the Foreign Court under civil liability provisions of U.S. federal securities law if such a judgment is found by the courts of the Cayman Islands to give rise to obligations to make payments that are penal or punitive in nature. Such a determination has not yet been made by the Grand Court of the Cayman Islands. A court of the Cayman Islands may stay enforcement proceedings if concurrent proceedings are being brought elsewhere. A judgment entered in default of appearance by a defendant who has had notice of the Foreign Court's intention to proceed may be final and conclusive notwithstanding that the Foreign Court has power to set aside its own judgment and despite the fact that it may be subject to an appeal the time-limit for which has not yet expired. The Grand Court of the Cayman Islands may safeguard the defendant's rights by granting a stay of execution pending any such appeal and may also grant interim injunctive relief as appropriate for the purpose of enforcement.

As a result of all of the above, shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members of our Board or controlling shareholders than they would as public shareholders of a U.S. company.

**ITEM 4. INFORMATION ON LEOCH TECHNOLOGY** 

**4. A. History and Development of Leoch Technology** 

**General Corporate Information** 

We were incorporated as an exempted company in the Cayman Islands on July 19, 2024. Our registered office in the Cayman Islands is located at the offices of 4th Floor, Harbor Place, 103 South Church Street, P.O.Box 10240, Grand Cayman KY1-1002, Cayman Islands. We appointed Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, New York 10168, U.S.A., as our agent for service of process in the United States, effective as of the date of this registration statement.

Our principal executive offices are located at 152 Beach Road, Gateway East #22-01/04, Singapore 189721. Our telephone number is +65 6970 0908. The information contained on, or that can be accessed through, our website is not a part of this Form 20-F. We have included our website address in this Form 20-F solely as an inactive textual reference.

Leoch Technology, an exempted company incorporated in the Cayman Islands, is our sole shareholder immediately prior to the completion of the separation and distribution. For more information on our relationship with Leoch Technology, see "Item 4. Information on the Company—4.A. History and Development of the

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Company—The Spin-Off," "Item 6. Directors, Senior Management and Employees—Item 6.E. Share Ownership" and "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions—Related Party Transactions with Leoch Technology."

**General Development of Business** 

We were formed by Leoch Technology in connection with our separation from Leoch Technology.

On February 12, 2025, Leoch Technology announced plans to separate into two independent, publicly traded companies to unlock the overall market value of Leoch Technology especially its global market potentials, improve the operation and management dedication and efficiency in both markets and realize recognition by investors especially overseas investors, thereby maximizing the interests of Leoch Technology, Leoch Energy and their respective shareholders as a whole.

On March 10, 2025, Leoch International Holding Pte. Ltd. ("LIH") declared a dividend of US$116.33 million to its sole shareholder, Leoch International Investment Limited ("LII"). There were no cash payments involved in the declaration of such dividend.

On March 14, 2025, we completed internal reorganization by purchasing all issued and outstanding shares of LIH, which holds Leoch Energy Business, from LII, an intermediary subsidiary of Leoch Technology, for a total consideration of US$38,687,604. There were no cash payments involved in the share purchase. The Purchase Consideration was non-cash in nature and was offset against the amounts due from related parties, non-current. The difference between the Purchase Consideration and the carrying amount of the net assets on the parent's book was recognized in equity.

**The Spin-Off** 

***Background***

Leoch Technology has been steadily expanding its international footprint by setting up production bases, sales networks, and R&D center in overseas markets. With the expansion in different regional markets, Leoch Technology has noticed the differences in customer demands, certification standards, regulatory environments, and so on. To enhance strategic focus and improve operational efficiency, Leoch Technology is committed to aligning its organizational structure with the specific needs of each market. The management structures of the Company's Chinese mainland, Hong Kong and Macau business and Global Markets businesses have gradually become independent. The business units in different regions will optimize product development, market expansion, and compliance management respectively based on regional characteristics. This measure will also enable each regional business to focus on the regulatory requirements and policy developments in its respective jurisdiction.

In the first half of 2024, due to the growth demand in Global Markets and the mature of internal organization structure, the revenue generate from Global Markets business of Leoch Technology has grown rapidly, and the management sees strong potential in the future. In order to further delve into different markets, Leoch Technology has initiated the business spin-off plan and has made full preparations for the listing.

After evaluating the market positions of its battery products and related offerings, including network power batteries, SLI batteries, motive power batteries, ESS solutions across different regions around the world and recycled lead in Chinese Mainland, Leoch Technology recognized the need for region-specific strategies to succeed in different global markets. As a result, Leoch Technology determined that the most effective approach for driving global growth and strengthening its presence in local markets is to separate its operations into two distinct markets: (i) Chinese Mainland, Hong Kong and Macau; and (ii) the Global Markets. The decision to list the Global Markets business is based on its international orientation, diversified revenue structure, and the strategic importance of expanding its global presence. The U.S. stock market is a global market. Leoch Technology believes that listing of its Global Markets business on the U.S. stock market can help introduce international investors for its Global Market business, enhance the Company's global visibility and reflect the

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intrinsic value of the Global Market business. As an independent listed entity, Leoch Energy can improve its corporate governance and boost the development of its business. At the same time, after the listing, Leoch Energy can leverage the resources of the global market to expand its financing channels and broaden the strategic business opportunities, thus further developing its Global Market business.

Meanwhile, the Hong Kong market is closer to Leoch Technology's Chinese mainland, Hong Kong and Macau business, and investors there are more familiar with the market environment, regulatory system, and business development.

Therefore, Leoch Technology has decided to list its Global Market business in the U.S. and retain the listing of its Chinese mainland, Hong Kong and Macau business in Hong Kong market.

***Reasons for the Spin-Off***

Leoch Technology and the Leoch Technology Board considered a wide variety of factors in their initial evaluation of the proposed spin-off, including the following factors and circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Technology's products need to constantly evolve with ever-changing customer preferences and needs,
which is unique in each market and are depending on the specific circumstances and environments in their own local jurisdictions. As such, Leoch Technology has different product series catering for automotive industries in different markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• As industry specifications, preferences and needs change at a fast pace, timelines for new product to launch to
market is an important factor for winning market share. By separating Leoch Technology's business by geographical markets, each of the separated groups will benefit by focusing on product development for the specific markets within its
coverage based on its own market preferences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Technology needs to comply with applicable laws and regulations in different jurisdictions for its business
operations. By separating Leoch Technology's business by geographical markets, each of the separated groups is able to focus on the regulatory requirements and updates in the specific jurisdiction and establish corporate governance measures
catering for the respective regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In light of the differences between the batteries markets, separating Leoch Technology's businesses in
terms of geographic focus will allow investors who are familiar with the relevant markets to better evaluate the true value and potential of the businesses in such markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Energy will be able to develop its independent corporate profile in the U.S., which enables it to attract
U.S. and other international investors, so as to unlock and maximize its market value.

We and Leoch Technology believe that, as two separate publicly traded entities, Leoch Technology and Leoch Energy will be better equipped to seize significant growth opportunities and allocate resources effectively to their respective businesses and strategic objectives. We also believe that the separation and distribution is commercially beneficial to Leoch Technology and Leoch Energy and in the interest of the Leoch Technology Shareholders as a whole as it expects the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation would strengthen the operational management efficiencies of both Leoch Technology and Leoch
Energy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation would enable Leoch Technology and Leoch Energy to obtain reasonable valuation in the longer term
and maximize the interests of all shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation and distribution would create two independent businesses, Leoch Technology and Leoch Energy with
enhanced geographic focus, each of which the Leoch Technology Board believes is well positioned for continued growth and market share capture in respective areas; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the separation and distribution would enable shareholders and investors to assess the investment propositions of
each business of Leoch Technology and Leoch Energy individually and freely select whether to continue to participate in both businesses or adjust their investment exposure, so as to unlock and enhance the market value of both Leoch Technology and
Leoch Energy.

Neither we nor Leoch Technology can assure you that, following the spin-off, any of the benefits described above or otherwise described in this Form 20-F will be realized to the extent or at the time anticipated or at all. See also "Item 3. Key Information—3.D. Risk Factors."

Following the completion of the separation and distribution, Leoch Energy will continue to carry on the R&D, production, marketing and distribution of battery products under the Leoch brand in the Global Markets. Meanwhile, Leoch Technology continues to primarily engage in the R&D, production, marketing and distribution of battery products under the Leoch brand in Chinese Mainland, Hong Kong and Macau.

Leoch Technology historically manufactured Leoch branded various battery products, which we then distribute in the APAC (excluding Chinese Mainland, Hong Kong and Macau), American and EMEA markets. Following the completion of the separation and distribution, we will continue procuring a certain portion of finished battery products from Leoch Technology and pay Leoch Technology purchase prices with an arm's-length markup. This arrangement will be transitional as we progressively take over and establish our own manufacturing facilities.

As of the date of this Form 20-F, Leoch Technology intends to effect the separation and distribution; however, Leoch Technology has no obligation to consummate the separation and distribution by any specified date or at all. If pursued, the separation and distribution are subject to various conditions, including receipt of any necessary regulatory or other approvals, such as approval from the Stock Exchange of Hong Kong, which Leoch Technology has obtained, and approval from Leoch Technology shareholders. If the conditions to the separation and distribution are not satisfied, Leoch Technology may decide to waive one or more of these conditions and consummate the separation and distribution.

Leoch Technology and the Leoch Technology Board also considered a number of potentially negative factors in their initial evaluation of the potential spin-off, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Disruptions to the business as a result of the separation*. The actions required to separate the respective
businesses of Leoch Technology and Leoch Energy could disrupt the operation of the Leoch Energy Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Increased significance of certain costs and liabilities*. Certain costs and liabilities that were otherwise
less significant to Leoch Technology as a whole will be more significant for us as a standalone company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *One-time costs of the spin-off or ongoing costs after the spin-off*. We will incur costs in connection with the transition to being a standalone
public company that may include accounting, tax, treasury, legal, and other professional services costs, recruiting and relocation costs associated with hiring key senior management personnel new to us, and costs to separate information systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Potential inability to realize anticipated benefits of the spin-off*. We may not achieve the anticipated benefits of the spin-off for a variety of reasons, including, among others: (i) the spin-off will require significant amounts of management's time and effort, which may divert management's attention from operating and growing the Leoch Energy Business;
(ii) following the spin-off, we may be more susceptible to market fluctuations and other adverse events than if it were still a part of Leoch Technology; (iii) the costs associated with us
being a standalone public company; (iv) following the separation, the Leoch Energy Business will be less diversified than the Leoch Technology business prior to the separation; and (v) the other actions required to separate the respective
businesses of us and Leoch Technology could disrupt our operations; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Our covenants and obligations pursuant to the Separation and Distribution Agreement and other agreements entered into in connection with the separation.* We are and will be subject to numerous covenants and obligations arising out of agreements entered into in connection with the separation. These covenants and indemnification obligations may limit
our ability to pursue strategic transactions or engage in new businesses or other transactions that might be beneficial.

Leoch Technology and the Leoch Technology Board believe that the anticipated benefits of the spin-off outweigh these factors. However, the completion of the spin-off remains subject to the satisfaction, or waiver by the Leoch Technology Board and the shareholders of Leoch Technology, of a number of conditions. We describe these benefits and certain other factors considered by Leoch Technology and the Leoch Technology Board, as well as conditions to the closing, in greater detail under "Item 4. Information on Leoch Technology—4.A. History and Development of Leoch Technology—The Spin-Off" and the Leoch Technology Circular, a copy of which is filed as Exhibit 15.4 to this registration statement.

***Number of Leoch Energy Shares You Will Receive***

The last day of trading of Leoch Technolgoy shares with the right to receive our shares on the Stock Exchange of Hong Kong will be January 8, 2026. This means that any Leoch Tecehnology shares that you hold or acquire and do not sell or otherwise dispose of prior to the close of business on January 8, 2026 will include the right to receive our shares. The Record Date for determining the entitlement to the proposed distribution is set on January 13, 2026. You will receive one Leoch Energy share for every fifty (50) Leoch Technology shares you hold as of the Record Date for the distribution.

***Results of the Spin-Off***

After the spin-off, we will be a standalone publicly traded company. Immediately following the spin-off, we expect to have approximately 28,699,867 Leoch Energy shares outstanding based on the number of issued Leoch Technology shares (excluding treasury shares held by Leoch Technology and its subsidiaries) as of December 16, 2025. The actual number of our shares that Leoch Technology will distribute in the spin-off will depend on the actual number of issued Leoch Technology shares, excluding treasury shares held by Leoch Technology and its subsidiaries, on the Record Date. The spin-off will not affect the number of outstanding Leoch Technology shares or any rights of holders of any outstanding Leoch Technology shares, although we expect the trading prices of Leoch Technology shares at market open on the trading day following the distribution date will be lower than the trading prices of Leoch Technology shares at market close on the distribution date, because the trading price of Leoch Technology shares will no longer reflect the value of the Leoch Energy Business.

On December 17, 2025, we entered into a Separation and Distribution Agreement with Leoch Technology related to the separation and distribution, and we intend to enter into several other agreements with Leoch Technology prior to completion of the spin-off to effect the separation and provide a framework for our relationship with Leoch Technology after the spin-off. These agreements will govern the relationship between us and Leoch Technology up to and after completion of the spin-off and allocate between us and Leoch Technology various assets, liabilities, rights and obligations, including employee benefits, intellectual property, supply of designated products and tax-related assets and liabilities. We describe these arrangements in greater detail under "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions—Agreements Between Leoch Technology and Us."

***Listing and Trading of Leoch Energy Shares***

As of the date of this Form 20-F, we are a wholly owned subsidiary of Leoch Technology. Accordingly, no public market for our shares currently exists. We intend to list our shares on the NASDAQ under the symbol "EMS." We will use a specialist firm to make a market in our shares on the NASDAQ to facilitate sufficient liquidity and maintain an orderly market in our shares throughout normal NASDAQ trading hours. We anticipate

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that trading in our shares will begin on a "when-issued" basis approximately two trading days before the Record Date and will continue up to and through the distribution date and that "regular-way" trading in our shares will begin on the first trading day following the distribution date. If trading begins on a "when-issued" basis, you may purchase or sell our shares up to and through the distribution date, but your transaction will not settle until after the distribution date. We cannot predict the trading prices for our shares before, on or after the distribution date.

[Computershare] will act as our U.S. share registrar and transfer agent.

Neither we nor Leoch Technology can assure you as to the trading price of Leoch Technology shares or of Leoch Energy shares after the spin-off, or as to whether the consolidated trading prices of our shares and the Leoch Technology shares after the spin-off will be less than, equal to or greater than the trading prices of Leoch Technology shares prior to the spin-off. See "Item 3. Key Information—3.D. Risk Factors—Risks Related to the Spin-Off and Ownership of our Shares" for more detail.

Subject to any restrictions on the registration of shareholdings in our share register that may be included in our Constitution, the Leoch Energy shares distributed to Leoch Technology shareholders will be freely transferable, except for shares received by individuals who are our affiliates. Individuals who may be considered our affiliates after the spin-off include individuals who control, are controlled by or are under common control with us, as those terms generally are interpreted for federal securities law purposes. These individuals may include some or all of our directors and executive officers. Individuals who are our affiliates will be permitted to sell their Leoch Energy shares only pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"), or an exemption from the registration requirements of the Securities Act, such as those afforded by Section 4(a)(1) of the Securities Act or Rule 144 thereunder.

***Conditions to the Spin-Off***

We expect that the spin-off will be effective on the distribution date, provided that the following conditions shall have been satisfied or waived by Leoch Technology:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all corporate and other action necessary in order to execute, deliver and perform the Separation and Distribution
Agreement and to consummate the transactions contemplated thereby by each of Leoch Technology and Leoch Energy having been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the SEC declaring this Form 20-F effective under the Exchange
Act, and no stop order suspending the effectiveness of this Form 20-F being in effect and no proceedings for that purpose being pending before or threatened by the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• copies of this Form 20-F, or notice of internet availability
thereof, having been mailed to record holders of Leoch Technology shares as of the Record Date for the spin-off;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the actions necessary or appropriate under U.S. federal, U.S. state or other securities laws or blue sky laws
(and comparable laws under foreign jurisdictions) having been taken or made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the receipt of all necessary government approvals required to consummate the spin-off having been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no order, injunction or decree issued by any governmental authority of competent jurisdiction or other legal
restraint or prohibition preventing consummation of the spin-off being in effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our shares to be distributed to Leoch Technology shareholders having been accepted for listing on the NASDAQ
(subject to official notice of issuance).

We are not aware of any material federal, foreign or state regulatory requirements with which we must comply, other than SEC rules and regulations, or any material approvals that we must obtain, other than the approval for listing of our shares and the SEC's declaration of the effectiveness of this Form 20-F, in connection with the spin-off.

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***Questions and Answers***

The following summary of questions and answers has been prepared to help you understand what the proposed spin-off and the proposed distribution involve. You should read the whole of this Form 20-F and Leoch Technology Circular filed as Exhibit 15.4 of this Form 20-F and not rely solely on the summary questions and answers set out below.

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| ***Q:*** | ***What is the proposed spin-off and the Distribution?***  |

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| A: | The spin-off, if proceeded with, will result in the separate listing of Leoch Energy on the NASDAQ and the proposed distribution, if proceeded with, will result in the separation of Leoch Energy from Leoch Technology. The proposed distribution is aimed at providing Leoch Technology Shareholders with an assured entitlement to shares in Leoch Energy upon completion of the proposed spin-off by way of a distribution in specie, representing an arrangement determined by Leoch Technology having due regard to the interests of Leoch Technology Shareholders. Under the proposed distribution, Leoch Technology will distribute all of its shares in Leoch Energy to Leoch Technology Shareholders, which will occur substantially concurrently with the listing of Leoch Energy.  |

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| ***Q:*** | ***Will there be any ongoing relationship between Leoch Energy and Leoch Technology?***  |

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| A: | Following the completion of the proposed spin-off and the proposed distribution, Leoch Energy will be demerged and deconsolidated from Leoch Technology and separately listed on the NASDAQ, with Leoch Technology Shareholders becoming direct shareholders of Leoch Energy. Leoch Technology will no longer hold shares in Leoch Energy.  |

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Leoch Energy and Leoch Technology will each operate as independent and separately listed companies. It is currently expected that after the completion of the proposed spin-off, Leoch Energy will continue to have transactions with Leoch Technology, which will constitute continuing connected transactions of Leoch Technology as defined under the Hong Kong Listing Rules and related party transaction as defined under Item 7.B. of Form 20-F. Each of these continuing connected transactions will be conducted on an arm's length basis and on normal commercial terms in the ordinary and usual course of business of each of Leoch Energy and Leoch Technology pursuant to the applicable laws and regulations. For further details, please refer to "Item 7.B.—Related Party Transactions".

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| ***Q:*** | ***What is the expected timing of the proposed spin-off and the proposed distribution?***  |

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| A: | It is expected that the proposed spin-off and the proposed distribution will be completed on or around [February 4, 2026] when the shares of Leoch Energy will commence trading on the NASDAQ. The last day of trading of Leoch Technology shares with the right to receive our shares on the Stock Exchange of Hong Kong will be January 8, 2026. This means that any Leoch Technology shares that you hold or acquire and do not sell or otherwise dispose of prior to the close of business on January 8, 2026 will include the right to receive our shares. The Record Date for determining the entitlement to the proposed distribution is set on January 13, 2026.  |

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| ***Q:*** | ***Can any Company Shareholders receive cash instead of shares of Leoch Energy as a result of the proposed spin-off and the proposed distribution?***  |

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A: The Company does not intend to offer any cash alternative for the following reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The cash alternative is not in line with the overall objective of the proposed spin-off. The overall objective of the proposed spin-off is to create a parallel listing structure of Leoch Technology and Leoch Energy, following which Leoch Technology
will no longer hold any interest in Leoch Energy, and Leoch Energy will be fully demerged from Leoch Technology and separately listed on the NASDAQ. If the cash alternative were to be provided by Leoch Technology and for any Company Shareholder who
elects the cash alternative, Leoch Energy shares that would have been distributed to such Company Shareholder will be retained by Leoch Technology. In the extreme

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case where all Company Shareholders take the cash alternative, Leoch Technology will need to continue to hold up to 100% of Leoch Energy shares, which does not achieve the overall objective of Leoch Technology to pursue the proposed spin-off; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Providing the cash alternative would not be in the best interests of Leoch Technology and Leoch Technology
Shareholders as a whole. If Leoch Technology were to offer the cash alternative in terms of the payment of a large amount of cash to Leoch Technology Shareholders, in view of the large number of the distribution shares and hence the significant
amount of cash payment by Leoch Technology, Leoch Technology would either need to utilize a substantial amount of own cash resources and/or take on a substantial financial liability and burden to support such cash payment. This would not be
beneficial to Leoch Technology Shareholders as a whole as this would limit the resources for future business operation and development of Leoch Technology.

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| ***Q:*** | ***What will happen to my Leoch Technology Shares following the proposed spin-off and the proposed distribution?***  |

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| A: | The number of Leoch Technology Shares you hold will not change as a result of the proposed spin- off and the proposed distribution. Following the proposed spin-off and the proposed distribution, the Leoch Technology Shares will remain to be listed on the Stock Exchange of Hong Kong. The shares of Leoch Energy will be listed on the NASDAQ.  |

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| ***Q:*** | ***What will be the price of Leoch Technology Shares and shares of Leoch Energy following the proposed spin-off and the proposed distribution?***  |

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|:---|:---|
| A: | There is no certainty as to the price of the Leoch Technology Shares or the shares of Leoch Energy following the proposed spin-off and the proposed distribution. Such prices may be influenced by a large number of factors including but not limited to market sentiment and conditions, market valuations for peer companies, investor response and financial performance of Leoch Technology and Leoch Energy, respectively.  |

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|:---|:---|
| ***Q:*** | ***How can the shares of Leoch Energy be traded and settled?***  |

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A: The shares of Leoch Energy will be traded on the NASDAQ. Investors wishing to trade shares that are admitted to trading on the NASDAQ usually instruct brokers or place their orders via a broker. The brokers then decide how best to execute the trade.

Shareholders of Leoch Technology will need to engage a duly licensed broker to assist with trading shares of Leoch Energy on the NASDAQ and should note that their ability finalize a trade of shares of Leoch Energy would depend on their individual circumstances and satisfaction of "know your client" and any other internal procedures of the relevant broker.

Shareholders of Leoch Technology who wish to engage with a duly licensed broker for opening a U.S. brokerage account for trading of shares of Leoch Energy should directly contact their licensed broker.

**Reasons for Furnishing this Form 20-F** 

We are furnishing this Form 20-F solely to provide information to Leoch Technology shareholders who will receive our shares in the spin-off. You should not construe this Form 20-F as an inducement or encouragement to buy, hold or sell any of our securities or any securities of Leoch Technology. We believe that the information contained in this Form 20-F is accurate as of the date set forth on the cover. Changes to the information contained in this Form 20-F may occur after that date, and neither we nor Leoch Technology undertakes any obligation to update the information except in the normal course of our respective public disclosure obligations and practices.

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**4. B. Business Overview** 

**Our Mission** 

We strive to become a world-class energy management and power solution provider.

**Overview** 

We are a global energy management and power solution company. We offer comprehensive energy management and power solutions including Battery Management System (BMS), Energy Storage Systems (ESS), AI and Internet-of-things (IOT), and a wide range of batteries for applications such as data centers (IDCs), and AI data centers (AIDCs), telecommunication base station, automobiles and motorcycles, low-speed electric vehicle, as well as residential, commercial and industrial (C&I), off-grid, power grid and renewable energy users. Additionally, we have broadened our product portfolio by developing Energy Management System (EMS) and Remote Maintenance System (RMS) in our innovation center in Singapore. We have a comprehensive offerings of more than 2,800 battery products encompassing UPS & network power battery, start, lighting and ignition battery (SLI battery), motive power battery and ESS batteries, among all global battery manufacturers. We are currently a wholly-owned subsidiary of Hong Kong-listed company Leoch Technology. After the spin-off, we will operate as an independent company, delivering batteries and ESS, IOT, EMS and various power solutions to customers and distributors in the Global Markets. Meanwhile, Leoch Technology will continue to serve customers and distributors within Chinese Mainland, Hong Kong and Macau.

Our development has always been in line with market demand. The development of global artificial intelligence has promoted the development and construction of data centers, leading to an increase in the UPS market for data centers, additionally, the number of 5G base stations continues to increase, driving the growth of demand for network power supplies. According to Frost & Sullivan, from 2020 to 2024, the market size of lead-acid network power batteries increased from US$8.9 billion to US$11.4 billion, and is expected to reach US$13.9 billion by 2029, with a CAGR of 5.2% from 2024 to 2029. In recent years, lithium-ion batteries have experienced rapid growth and lithium Battery Energy Storage System (BESS) has become the fastest-growing segment. The global lithium BESS market surged from US$3.4 billion in 2020 to US$43.9 billion in 2024, reflecting a CAGR of 89.9%. Looking ahead, we expect the global lithium BESS market to maintain a robust growth trajectory in the long term. The global lithium BESS market is projected to maintain its rapid growth, reaching US$128.6 billion by 2029, with a CAGR of 24.0% from 2024 to 2029, according to Frost & Sullivan.

We are dedicated to improving our products by refining formulations, optimizing structural designs, advancing production techniques, and upgrading manufacturing equipment. Additionally, we work closely with our customers to develop tailored solutions that address their specific requirements. Our products are renowned for their superior quality and performance, making them challenging for competitors to reach. For instances,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have enhanced the cycle life of our LDC motive power batteries by incorporating advanced deep-cycle AGM and GEL technologies, achieving a cycle life that is two times the IEC standard; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for ESS, we have launched our dual UL (1973, 9540A) and IEC-certified (62619, 63056, 61000, 62477, 62933)
liquid-cooled container ESS with a 5MWh capacity within a single 20-foot container, along with an all-in-one containerized ESS that integrates PCS inverters within the same unit. Additionally, our I&C ESS has obtained IEC62619 certification with
hybrid PCS inverters complying to multiple country grid regulations, with optional features such as solar integration, blackstart and an on/off-grid switch within the all-in-one cabinet design.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for UPS especially smart energy applications in AIDC, we have launched our 6C high power density (maximum 600KW
for 5-7 mins discharge), on a highly compact design (600mm\*1000\*2200 WDH standard cabinet) saving space by more than 30%, and highest fire safety compliance with full UL9540 ready, on high quality LFP 6C cell and AI BMS for thermal runway management
and early warning detection

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Our products' outstanding performance not only meets customer needs but also earns their lasting trust, as we expand beyond batteries into energy and sustainability solutions for the present and future. We have cultivated a high-quality and diverse customer base, serving more than 3,200 customers as of June 30, 2025. With our extensive global sales network, our products reached 160 countries through 20 sales companies, with more than 340 dedicated sales and pre- and post-support employees. We are a trusted power solution provider serving world's top IDC infrastructure solution providers, telecommunication operators and automobile original equipment manufacturers, as well as commercial, industrial, and city infrastructure clients and service providers. These industry leaders, particularly in IDC, telecommunications, and critical urban infrastructure, uphold stringent certification and cybersecurity compliance standards, creating high entry barriers for new suppliers—especially battery, ESS, and energy companies from regional markets seeking to expand into international markets. Our established role as a long-term partner to these global organizations is a clear indication of the superior quality and reliability of our products and services. This, in turn, reinforces our customer relationships in the long term.

Our global manufacturing network consists of 6 state-of-the-art manufacturing facilities located in Vietnam, Malaysia, India and Mexico, with three new production plants under construction. Our manufacturing expertise is driven by a team of highly skilled professionals from the globe in key leadership roles, including managers and technical supports. With extensive industry experience, they bring deep technical knowledge and engineering excellence, leveraging top-tier technology to enhance our manufacturing capabilities and drive innovation. We have continuously invested in and refined our facilities and manufacturing techniques over time, enabling us to optimize our production process and deliver best-in-class products that meet our clients' demands. Acknowledging our commitment to quality, a leading global automobile manufacturer has awarded us the Preferred Quality Status, while two of the global top energy solution companies have consistently awarded us as their best global battery supplier over the years, which are prestigious designations reserved for top-tier suppliers who excel in meeting a comprehensive set of quality and logistical standards. Additionally, we are deeply committed to ESG principles and sustainable growth, ensuring our innovations and operations contribute to a greener and more responsible future.

The following table sets forth our revenue in the periods indicated and based on the geographic locations of our customers and their percentage of total revenue.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2023** | **2023** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** |
|  | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** |
|  | | | | | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* |
|  Americas | 295460 | 42.5 | 353013 | 40.6 | 180991 | 45.5 | 195138 | 40.2 |
|  Asia-Pacific (excluding Chinese Mainland, Hong Kong and Macau) | 143207 | 20.6 | 174136 | 20.0 | 80593 | 20.2 | 88211 | 18.2 |
|  EMEA and others | 256317 | 36.9 | 343192 | 39.4 | 136647 | 34.3 | 201710 | 41.6 |
|  **TOTAL** | **694984** | **100.0** | **870341** | **100.0** | **398231** | **100.0** | **485059** | **100.0** |

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**Our Competitive Strength** 

We believe the following strengths of our business distinguish us from our competitors, enhance our leadership position in our industry and position us to capitalize on the expected continued growth in our market.

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We have a diverse range of power solution technologies, encompassing various types, specifications, and formats. Leveraging our extensive technology expertise, we provide comprehensive product line coverage and effectively address a broad spectrum of customer needs across different product applications:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our network power batteries support both UPS AC power supply and telecom DC power supply systems, which are
widely used in fields such as data centers, telecom operators, electric utility companies, transportation, and hospitals. We provide full range of lead-acid network power batteries of all size and lithium battery of small-to-large size. Our network power batteries, ranging in capacity from 0.8Ah to 3000Ah, have up to 12 years designed life. Our gel flat plate batteries use proprietary formulations, offering superior
cycle performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SLI batteries mainly used in automobile and motorcycle. Our products comply with various standards, including
Battery Council International (BCI) standard in the U.S., Japanese Industrial Standard (JIS), and German Industrial Standard (DIN), ranging in capacity from 17Ah-330Ah. Thanks to our stringent product standards and quality control, our products are
used by a majority of automobile and motorcycle OEM companies. They feature outstanding Cold Cranking Amps (CCA) ranging from 215A to 1450A, ensuring reliable performance in extreme cold conditions. This significantly surpasses industry standards
and outperforms most competitors. In the motorcycle SLI batteries category, our sales ranked 2<sup>nd</sup> in the Global Market in 2024, according to Frost & Sullivan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Motive power batteries ranging in capacity from 13Ah-1550Ah primarily engaged in low-speed electric vehicles, including golf carts, cleaning and sweeping equipment, forklift, and aerial work platform vehicles. We are also expanding the application of our motive power batteries to include
warehouse robots and small autonomous vehicles. Our products feature outstanding thermal management capabilities, enabling them to function effectively in various temperatures ranging up to from -45°C to +60°C. This superior resistance to
extreme temperatures ensures that vehicles or machinery equipped with our batteries can operate reliably in almost any location and environment worldwide. Our products feature superior cold-start discharge capabilities, utilizing low internal
resistance separators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We are expanding our services into ESS sector, as we enhance our solution offerings beyond battery products to
provide comprehensive energy solutions. We have enhanced our focus on energy storage sectors, including grid energy storage systems, industrial and commercial energy storage systems, and residential energy storage systems, while continuing to
support our existing product offerings. Our Battery Energy Storage System, integrating BMS, EMS, and Power Conversion System (PCS), is designed for high efficiency, long-lasting power, and energy-saving performance; it also enables the integration
of renewable energy sources such as solar and wind power.  **** ** It ensures safety and stability, facilitates easy installation, offers strong adaptability, and features intelligent operation and maintenance. Currently, our Singapore
innovation center has the capability to independently research and develop BMS and EMS.

Drawing on our extensive industry experience, we provide a one-stop solution with a wide array of options tailored to diverse application scenarios, while maintaining high product quality and performance. We are continuously expanding our range of battery models and venturing into new application areas.

***Extensive global sales and distribution network with localized operations for in-depth customer service***

Our global sales presence in 160 countries supported by 20 sales companies worldwide that provide local technical support, sales services, and warehousing, enables us to provide comprehensive support across the entire service cycle to our customers, from design and manufacturing to after-sales service. In the front-end market, we focus on developing products based on customer needs. Our extensive sales network, combined with technical team support, allows us to maintain close communication with customers and develop products that meet their

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expectations. In the aftermarket, we primarily sell ready-made products and leverage our strong sales capabilities to increase our share of clients' purchases. Our robust sales and distribution network is complemented by local warehouses in 13 countries as of June 30, 2025. These warehouses are strategically located near our customers, facilitating efficient product transportation. To further enhance customer engagement, we are expanding our localized sales task force and network to provide close-knit sales and technical support, ensuring tailored solutions for regional markets. Our wide-reaching sales and marketing network also allows us to stay attuned to local market developments and increase local exposure, thereby growing our customer base. Additionally, establishing strong connections with local markets has helped us develop diverse and market-specific sales channels.

***Strong and long-term relationship with industry leading customers to deliver power solutions tackling key challenges***

We are highly recognized by renowned industry customers and have built long-term, stable partnerships. We collaborate with esteemed industry clients across all business areas, strengthening our relationships through high-quality products, attentive service, and reliable after-sales support. Our ability to seamlessly integrate power solutions, delivery capabilities, and product quality enables us to address critical customer pain points effectively.

We have established partnerships with top power suppliers in the IDC sector and our solutions are adopted by 7 of the top 10 global (ex-China) telecom operators according to Frost & Sullivan. Our client-focused sales and customer service teams have helped us deepen relationships with key customers, leading to an average partnership duration of over 10 years with our top 5 customers. With these strong relationships, our wallet share among major customers continues to grow, driven by increasing sales volume and product diversification. We remain committed to supporting our customers' growth journeys by continuously addressing their pain points and evolving needs for product enhancements and new application areas. This approach fosters greater customer loyalty and expands our customer base.

***Expanding global production capabilities for future growth***

Since establishing a joint venture in Malaysia in 1999, we have continuously expanded our production bases and capacities to support our growing sales. As of June 30, 2025, we have six state-of-the-art factories across four countries worldwide, with a total of 30 production lines, and we have three new production plant under construction. We are also expanding our production capacities in the selected countries and regions. This strategic positioning enables us to effectively serve our customers worldwide. Our integrated global network enables efficient management of manufacturing and distribution, optimizing production in low-cost regions while mitigating the impact of geopolitical factors on production.

We employ a highly vertically integrated production process in our production sites that encompasses all major steps in battery manufacturing, from confection of lead alloy ingots to assembly of finished products. Leveraging our extensive experience, we have developed a best-practice production process, encompassing various aspects such as temperature control and sequential procedures. This integrated process and our best practices allow us to control the entire production process and implement stringent quality standards for our products to ensure superior quality and reliability. Our timely delivery has earned widespread recognition from customers, further reinforcing our reputation for reliability. Moreover, our ability to provide seamless production and logistics solutions enables us to effectively address our customers' pain points, ensuring a smoother supply chain experience. Additionally, our production system, through machine learning on vast production data, precisely guides manufacturing, enhancing efficiency, reducing production costs, and increasing profitability. Our advanced production system enables highly automated, traceable, and digitalized manufacturing, laying the foundation for sustained growth.

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**Our Growth Strategy** 

We plan to implement the following strategies to pursue our continued growth:

***Reinforcing our OE service leadership***

We are a major player in the battery industry and remain committed to reinforcing our leadership in OE services through continuous product development, exceptional customer service, and strong client partnerships.

With a solid market foundation across network, SLI, and motive power sectors, we continue to expand our presence by providing high-quality, reliable power solutions. Our dedicated sales and customer service teams work closely with leading industry customers, maintaining ongoing engagement, conducting regular follow-ups, and identifying opportunities to address their evolving needs. By delivering integrated solutions that enhance efficiency, performance, and reliability, we strengthen customer relationships and drive sustained growth in our OE business.

Building on this momentum, we are broadening our presence in key application areas such as data centers and power solutions for electric vehicles. Our strong partnerships with global industry leaders position us to stay ahead of market shifts, ensuring we remain a trusted supplier for critical infrastructure applications.

***Expanding aftermarket services through a strong distribution network***

Recognizing the vast potential in aftermarket services, we are expanding our reach to more customers by leveraging our well-established distribution network. This approach allows us to tap into higher profit margins and quicker payment cycles while providing customers with reliable, high-performance battery solutions.

Our comprehensive product coverage, already adopted by OE customers, provides a strong foundation for expanding our presence in the replacement and service markets. By utilizing our global production network and robust distribution channels, we are increasing accessibility and expanding into new application areas, including data centers, telecom network batteries, ESS, smart grids, and industrial power systems, where demand for efficient and durable power solutions continues to grow.

A key advantage in our aftermarket expansion is our ability to deliver timely, high-quality power solutions that effectively address critical customer pain points. With products designed for extended cycle life, enhanced safety, and superior energy efficiency, we continue to strengthen our market position and drive long-term profitability.

By reinforcing our leadership in OE services while strategically scaling our aftermarket presence through our strong distribution network, we are well-positioned to capture new opportunities, ensuring sustained growth and a stronger market footprint across both segments.

***Offering comprehensive power solutions with our strong technology portfolio***

The demand for integrated ESS solutions is increasing rapidly, driven by the global energy transition trend and the rapid expansion of the energy management market, which is fueled by both technological advancements and evolving policy frameworks. As a global power solution provider with a strong technology portfolio and an innovation center in Singapore, we are well-positioned to capitalize on this trend and deliver value for our customers. We are committed to developing comprehensive software and hardware energy storage solutions, including battery cells, packs, BMS, ESS, IoT, EMS and RMS.

By integrating commercially available AI technologies, we aim to achieve intelligent applications in batteries, ESS, and EMS to enhance battery safety and extend battery lifespan. By collecting data throughout the battery's lifecycle, our RMS allows remote battery status monitoring, fault diagnosis, and maintenance, as well as remote upgrades, thereby improving battery and equipment management efficiency and reducing manual maintenance costs.

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Additionally, we leverage extensive IoT data to facilitate predictive system maintenance, reduce failures, and enhance system reliability. These models assist EMS in intelligent battery charge and discharge decisions, supporting the coordinated management of ESS energy storage systems and renewable energy sources such as solar, wind, charging stations, and electric vehicles. This optimization improves clean energy utilization, forecasts grid loads, and dynamically adjusts electricity pricing while enabling intelligent energy trading, including, among others, price arbitrage, peak shaving and valley filling, dynamic capacity expansion, demand response, and virtual power plants.

As the energy management landscape shifts toward digitalization and distributed energy systems, we aim to fully tap into regional and industry-specific energy demands, ensuring our solutions align with decentralized power generation and storage needs. Additionally, we plan to focus on reducing energy consumption and improving energy efficiency by leveraging predictive maintenance and optimizing energy usage. Our EMS systems will also support integration with advanced factories, data centers, and telecommunications base stations. Furthermore, we aim to enhance remote software update capabilities, introduce paid software upgrade packages to generate new revenue streams, and ensure efficient energy transmission and system integration through mainstream PCS. Ultimately, our goal is to reduce energy costs, maintenance costs and greenhouse gas emissions.

***Continuing to invest in R&D efforts***

We firmly believe that our dedicated research and development efforts are pivotal in maintaining our competitive edge. Currently, we have an R&D center in Singapore primarily focused on the development of BMS and EMS systems, specifically aiming at high-voltage/ low-voltage energy storage and UPS active balancing BMS, EMS cloud-based remote monitoring and software updates, predictive maintenance, as well as other applications of intelligent algorithms in BMS and EMS. ****We plan to establish an R&D center in the U.S. in the near to medium term to better support our local production efforts and remain at the forefront of industry innovation. We therefore plan to continually expand our research and development team, upgrade our research facilities, and deepen our collaboration with reputable research and academic institutions. For instance, we collaborate with the National University of Singapore and Nanyang Technological University on the research of implementation of predictive maintenance for intelligent UPS batteries using hybrid digital twin technology based on both physical and data-driven models and with Harvard University on lithium battery recycling research. Building upon our rich manufacturing know-how, we are committed to the ongoing product development via formulation, structural design enhancements, and launching new battery solutions such as sodium batteries and solid-state lithium battery. As these new solutions reach industrial-scale production, they are expected to drive the future growth of our business.

***Expanding global production footprint to support future growth***

We are committed to optimizing our production processes and enhancing efficiency while maintaining advanced manufacturing techniques. By continuously identifying opportunities for reengineering, automation, and process consolidation, we aim to improve efficiency and reduce costs within our local facilities. Our efforts include upgrading information technology systems to streamline operations and optimize supply chains, lowering direct material costs, and increasing the level of digitalization in our facilities to further enhance production efficiency.

To better serve our key markets, we plan to strengthen our manufacturing footprint by expanding production bases in strategically selected locations. These locations will be chosen based on multiple factors, including product cost efficiencies, supply chain optimization, and proximity to customers. Our expansion efforts include increasing capacity within existing facilities and establishing new production sites.

By prioritizing localized production and supply chain integration, we aim to enhance responsiveness to market demand, reduce logistical complexities, and ensure cost-efficient, high-quality manufacturing. We expect to double our current production capacity by the end of 2026.

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**Overview of Our Industry** 

The global lead-acid battery industry is well-established and highly mature. Between 2020 and 2024, the market experienced steady growth, increasing from US$41.7 billion to US$51.9 billion, with a CAGR of 5.6%. Lead-acid batteries offer distinct advantages, such as stability, safety, and a wide operating temperature range, making them highly competitive in applications like data centers, communication base stations, and automotive start-stop systems. Given their cost-effectiveness and consistent demand from these downstream industries, the lead-acid battery market is expected to remain stable growth. With the ongoing expansion of key sectors such as data centers, telecommunications, automotive, and energy storage, the global lead-acid battery market is forecast to reach US$62.9 billion by 2029, representing a CAGR of 4.9% from 2024 to 2029.

In recent years, lithium-ion batteries have experienced rapid growth, driven by their superior characteristics such as high energy density and long cycle life. These batteries have achieved widespread commercial applications across various sectors, with the lithium Battery Energy Storage System (BESS) market emerging as the fastest-growing segment. Amid the global energy transition, the global lithium BESS market surged from US$3.4 billion in 2020 to US$43.9 billion in 2024, reflecting a CAGR of 89.9%. During this period, the grid BESS segment grew at a CAGR of 85.9%, the commercial and industrial BESS segment at 103.1%, and the residential BESS segment at 80.8%. Looking ahead, we expect the global lithium BESS market to maintain a robust growth trajectory in the long term. This expansion will be fueled by the increasing adoption of variable renewable energy sources like solar and wind, supportive policies and subsidies, and the on-going improvement in economic viability. The global lithium BESS market is projected to maintain its rapid growth, reaching US$128.6 billion by 2029, with a CAGR of 24.0% from 2024 to 2029.

***Overview of Rechargeable Battery Market***

Rechargeable batteries, also known as secondary batteries, address the issues of energy storage and on-demand release. With the increasing demand for power supply in various sectors such as transportation, backup power for devices, and mobile power scenarios, as well as the growing complexity of power sources and grid structures, the application of rechargeable battery industry has witnessed significant advancements in recent years. In 2024, rechargeable batteries accounted for more than 85% of global battery industry's total sales revenue.

Today, the main technological pathways for rechargeable batteries include lead-acid batteries, lithium batteries, sodium-ion batteries, and nickel-cadmium batteries. Among these, lead-acid and lithium batteries dominate the market, together accounting for more than 95% of the total market share in terms of sales revenue in 2024.

![LOGO](g760217g64f45.jpg)

*Source: Frost & Sullivan Report* 

***Overview of Lead-Acid Battery Market***

A lead-acid battery is a rechargeable battery that uses lead and sulphuric acid to function. The lead is submerged into the sulphuric acid to allow a controlled chemical reaction. In terms of battery's construction, lead-acid batteries can be divided into two main categories, including flooded (or wet) lead-acid batteries and maintenance free sealed lead-acid batteries (SLA).

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Flooded lead-acid batteries are the most commonly found lead-acid battery type and are widely used in the automotive industry. They provide the most cost-effective solution, as the least cost per amp hour, of any lead-acid battery type. SLA batteries are available in a few different formats. Their principal manufacturing process, including number of plates and plate thickness determines its designated end user application. SLA batteries tend not to sulphate or degrade as easily as flooded lead-acid batteries and are regarded the safest lead-acid battery to use. Two main versions of SLA batteries are AGM (absorbed glass matt) batteries and GEL batteries.

Lead-acid batteries have extensive downstream applications and are currently classified into three primary sectors: Network power batteries, SLI (Starting, Lighting, and Ignition) batteries, and Motive Power batteries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Network Power Batteries .*** Lead-acid batteries can be used as network
power batteries in telecom base stations, data centers, energy storage systems, power facilities, national defense and military industries, among others, and can provide emergency power supply for equipment when the main power fails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***SLI Batteries.*** Lead-acid batteries can be used as SLI batteries, mainly for starting vehicles such
as cars, motorcycles and ships, providing instantaneous large current to drive the starter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Motive Batteries.*** Lead-acid batteries can be used as motive batteries, mainly in low-speed electric vehicles such as electric bicycles, electric motorcycles, electric tricycles and golf carts, to provide continuous power to drive the vehicle.

***Market Prospects of Lead-acid Battery Industry***

The global lead-acid battery industry is highly mature and steadily growing, expanding from US$41.7 billion in 2020 to US$51.9 billion in 2024 at a CAGR of 5.6%. Known for stability, safety, and cost-effectiveness, lead-acid batteries remain essential in data centers, communication base stations, and automotive applications. With continued demand from these sectors, the market is projected to reach US$62.9 billion by 2029, at a CAGR of 4.9%.

![LOGO](g760217g65a15.jpg)

*Source: Frost & Sullivan Report* 

In terms of sales channels, the global lead-acid battery market can be divided into the pre-installation market and aftermarket. The development trend of the pre-installation market is closely related to the incremental sales

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of downstream application of lead-acid batteries, while the aftermarket is affected by the demand from the downstream application stock market. The aftermarket for lead-acid batteries surpasses the pre-installation market, accounting for over 68% of the total market share in 2024. From 2024 to 2029, the aftermarket is projected to grow at a CAGR of 5.3%, outpacing the pre-installation market, which is expected to grow at a CAGR of 4.1%.

***Network power Batteries.*** With the development of the telecom industry, the number of 5G base stations continues to increase, driving the growth of demand for network power supplies for telecom base stations. As a network power battery with high economy and safety, the market size of lead-acid batteries continues to grow with the development of the telecom industry. In addition, with the explosive development of global artificial intelligence, the demand for computing power has skyrocketed, and the construction of global data centers also developed rapidly. As an indispensable uninterruptible power supply for data centers, the application market size of lead-acid batteries will also continue to increase. From 2020 to 2024, the market size of lead-acid network power batteries increased from US$8.9 billion to US$11.4 billion, and is expected to reach US$13.9 billion by 2029, with a CAGR of 5.2% from 2024 to 2029.

**Total Revenue of Network Power Battery Market (by application), Global, 2020-2029E**![LOGO](g760217g66a23.jpg)

*Source: Frost & Sullivan Report* 

***SLI Battery.*** With the stable development of the automobile industry, particularly the rapid growth in sales of new energy vehicles, the demand for SLI batteries has steadily increased, driving the continuous expansion of the lead-acid battery market. Additionally, the ongoing improvement in automobile penetration is expanding the aftermarket for SLI batteries, serving as a crucial driving force for the SLI battery market. Furthermore, the development of markets such as motorcycles, ships, and rail transit continues to propel the market growth of SLI batteries. From 2020 to 2024, the market size of lead-acid SLI batteries grew from US$21.3 billion to US$25.8 billion, and is expected to reach US$32.3 billion by 2029, with a CAGR of 5.8% from 2024 to 2029.

***Motive Batteries.*** As common means of transportation in daily life, low-speed vehicles such as electric two-wheelers and three-wheelers have continued to increase in annual sales, driving the growth of the lead-acid battery market. Despite facing competitive pressure from lithium-ion batteries, lead-acid batteries still occupy a major market share in the battery market due to their cost advantages and stable performance. While lithium-ion batteries are gaining ground, the dynamics of the market are expected to evolve gradually, with both technologies

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continuing to play important roles for the time being. From 2020 to 2024, the market size of lead-acid motive batteries grew from US$11.5 billion to US$14.7 billion, and is expected to reach US$16.7 billion by 2029, with a CAGR of 3.2% from 2024 to 2029.

***Entry Barriers of Lead-acid Battery Industry***

***Sales Channels Barrier.*** In the lead-acid battery industry, securing customer relationships involves a lengthy process, including potential client identification, technical consultations, product development, and prototype testing. Many downstream customers implement stringent supplier certification mechanisms, where only those who pass rigorous qualification standards are added to the approved supplier list. Given the critical applications of lead-acid batteries, established suppliers enjoy high customer loyalty, making user retention exceptionally strong. Additionally, developing comprehensive sales channels requires significant time, investment, and expertise, further reinforcing the customer relationship barrier. These factors make it challenging for newer or smaller entrants to penetrate the market and compete effectively.

***Technology Barrier.* **The industry is moving towards innovations in multiple dimensions, such as enhancing battery performance, increasing safety, optimizing environmentally friendly production, innovations in production processes and equipment, as well as improvements in formulation and structural design. A strong team of R&D professionals is also required to realize such technological capabilities. Additionally, the deep industry-specific expertise, accumulated through years of specialized experience and proprietary knowledge, will further reinforce the technological entry barriers. Requirements are becoming increasingly strict as many downstream applications, such as data centers and telecom, are undergoing drastic changes. Such characteristics of the industry would create substantial technological entry barriers.

***Environmental Regulations Barrier.*** Since lead-acid batteries contain the heavy metal lead, their production and recycling processes have potential environmental impacts. Therefore, new entrants must strictly comply with environmental regulations, invest in pollution prevention and control facilities, and ensure that the production process is environmentally friendly.

***Brand Reputation.*** The downstream applications of lead-acid batteries, encompassing essential sectors such as telecommunications base stations, data centers, and power systems, necessitate exceptionally high standards of battery quality. Consumers place significant emphasis on factors such as product reliability, low return rates, and robust safety ratings, all of which contribute to the establishment of brand reputation. The cultivation of a strong brand reputation is a long-term endeavor, requiring sustained excellence and ongoing commitment, thereby creating a formidable brand barrier within the industry.

***Supply Chain Barrier.*** As raw materials costs account for the majority of the total costs of lead-acid battery, securing stable, low-cost, and high-quality raw materials is one of the key competitiveness for manufacturers. For newcomers, they face a high barrier in supply chain management as they are not as established and connected as major incumbents especially in terms of scale and reputation, and therefore tend to have less bargaining power when negotiating with suppliers.

***Capital Investment Barrier.*** The production of lead-acid batteries necessitates considerable capital investment in fixed assets, including the development of production lines and warehousing infrastructure, among others. To maintain product competitiveness, it is necessary to continuously update equipment and technology, which puts newcomers under financial pressure. The research and development of lead-acid batteries require substantial and ongoing capital investment, which is typically manageable only by large-scale industry participants.

***Economies of Scale Barrier.*** The lead-acid battery industry has significant scale barrier, as its production has the characteristics of economies of scale. Companies with large production scale and abundant capital have considerable scale advantages in raw materials procurement and production operations.

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***Competitive Landscape of Lead-acid Battery Industry***

The global lead-acid battery industry is relatively concentrated, with a CR10 of approximately 60%. In terms of sales revenue for 2024, major first-tier companies with sales revenue exceeding US$1.0 billion include Clarios, Tianneng, Chaowei, GS Yuasa, Exide Technologies, EnerSys, and Leoch International Technology Limited. With more than 2,200 models of network power batteries, SLI batteries and motive power batteries, and battery products ranging in capacity from 0.8Ah to 3,000Ah, we offer the widest lines of batteries among all global battery manufacturers.

In 2024, our sales in the lead-acid battery market, comprising primarily the network power battery segment, SLI batteries for motorcycles, and motive power applications, totaled US$820.1 million, ranking us seventh globally among manufacturers. Specifically, our sales in the lead-acid network power battery market reached US$381.9 million, ranking us fifth globally. In the lead-acid SLI battery for motorcycles market, our sales amounted to US$157.9 million, ranking us second globally.

***Growth Drivers and Future Trends of Lead-acid Battery Industry***

The major factors driving the growth of lead-acid battery market that may affect the landscape of lead-acid battery industry are as follows:

***High Safety and Irreplaceability:*** As a highly mature battery product, lead-acid batteries boast excellent safety, stability, and temperature adaptability. They will not catch fire or explode even under very high operating temperatures, making them hard to replace in their main application fields. In the field of network batteries, the requirements for stability and safety are extremely high in data centers, while telecom network batteries need to be highly stable and able to adapt to a broad range of operating temperatures. In these areas, lead-acid batteries hold an irreplaceable competitive advantage and will remain the mainstream choice for network batteries in data centers and telecom industry for a long time. In the SLI battery market, lead-acid batteries can provide instantaneous current output and low-temperature performance that lithium batteries struggle to match, securing an unshakeable position in the automotive SLI battery market.

***Continuous Growth of Downstream Industries.*** The global market demand for lead-acid batteries is driven by the continuous growth of major downstream industries. For example, the global sales volume of automobiles was approximately 91.8 million in 2024 and is expected to increase to 99.4 million in 2029, laying a solid foundation for the development of SLI batteries. With the rapid development of next-generation information technologies including artificial intelligence, cloud computing, and 5G, data centers and communication base stations are growing quickly. The incremental number of communication base station will increase from 2.8 million in 2024 to 4.2 million in 2029 and the incremental number of data center racks is expected to grow from 9.5 million in 2024 to 32.1 million in 2029 globally, which will continuously increase the demand for stable electricity supply, which will significantly drive the demand for network batteries in data centers and telecom industry.

***Product Innovation and Technological Upgrade.*** To meet the diverse market demands emerging worldwide, as well as to counter the intense competition brought about by the rapid development of lithium batteries, the main participants in the lead-acid battery market need to engage in product innovation and technological upgrade to solidify their market share. Through research and innovation in material formulations and production processes, lead-acid batteries are expected to further enhance their energy density, cycle life, and rapid charging capabilities, while reducing overall usage costs. Some lead-acid batteries with innovative structures may find opportunities to expand into new application fields. For example, lead-carbon batteries are expected to further open up the use of lead-acid batteries in large-scale energy storage systems. At the same time, manufacturers are actively providing product solutions tailored to the specific needs of different customers to meet the constantly changing market demands.

***Environmental Sustainability and Recyclability.*** Lead-acid batteries are recognized for their high safety, excellent recyclability, and a significant proportion of sustainably reusable materials. The well-established

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recycling processes for lead-acid batteries allow for the efficient recovery and reuse of key materials, such as lead, significantly reducing environmental impact. Compared to lead-acid batteries, other types of batteries, such as lithium-ion batteries, have yet to establish an equally robust recycling system. Companies with extensive recycling experience are well-positioned to capitalize on this by integrating recycling operations into their business models, further promoting sustainability. This not only supports a circular economy but also enables these companies to reuse critical materials, thereby enhancing their operational efficiency and competitiveness in the market.

***Overview of Lithium BESS Market***

In recent years, lithium-ion batteries have experienced rapid growth due to their superior characteristics such as high energy density and extensive cycle life. Lithium-ion batteries have achieved mature commercial applications across various fields. Among these, lithium BESS market has emerged as the fastest-growing downstream segment.

Lithium battery energy storage offers several advantages: it is not constrained by geographical conditions, has high specific energy, and can be flexibly utilized in various scenarios for power storage needs. It is currently a key focus in the development of global energy storage technology and is considered a mainstream solution within electrochemical energy storage. The lithium BESS market can be further classified based on its applications into grid BESS, commercial and industrial BESS, and residential BESS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Grid ESS.* ** Mainly refers to the BESS products used in power generation, power
transmission and distribution, for renewable energy grid connection and power auxiliary services. Grid ESS enhances the stability of renewable energy power generation, reduces curtailment of wind and solar power, and responds quickly to grid
frequency modulation, peak load regulation, and the adjustment capabilities of thermal power.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Commercial and Industrial BESS.* ** Primarily used by commercial and industrial customers
to utilize the price gap of electricity between peak and valley hours and adoption of distributed power generation systems, such as distributed photovoltaic, in order to reduce the energy cost or increase revenue from supply power to the grid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•  ***Residential BESS.*** Mainly used by household customers to utilize the price gap of electricity
between peak and valley hours and adoption of distributed power generation systems, in order to reduce the energy cost or increase revenue from supply power to the grid, usually with a small-capacity ESS.

Lithum BESS is mainly composed of ESS battery (in the form of module), battery management system ("BMS"), energy management system ("EMS"), and power conversion system ("PCS").

![LOGO](g760217g69a78.jpg)

*Source: Frost & Sullivan Report* 

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***Market Prospects of Lithium BESS Market***

In recent years, lithium-ion batteries have experienced rapid growth due to their superior characteristics such as high energy density and extensive cycle life. Lithium-ion batteries have achieved mature commercial applications across various fields. Among these, lithium BESS market has emerged as the fastest-growing downstream segment.

Globally, under the momentum of "dual carbon" targets, the importance of renewable energy sources, such as photovoltaic (PV) and wind energy, is steadily increasing, with their share in the energy mix on the rise. To mitigate the intermittent and unstable nature of renewable energy and its impact on the power grid, the development of utility-scale energy storage systems is imperative. Lithium BESS are widely regarded as the most promising solution in this context.

Moreover, user-end lithium BESS are also experiencing rapid growth. For instance, with the rising costs of centralized power supply, particularly in developed markets like Europe and the United States, residential distributed generation systems combining PV and energy storage are accelerating in adoption. Furthermore, with the groundbreaking advancements in artificial intelligence technology, the global demand for computing power is surging, leading to a significant expansion in data center construction. These data centers have substantial electricity demands, making energy consumption their largest operational cost. Lithium BESS can effectively reduce the power costs of data centers by leveraging peak-valley electricity price differences and integrating PV and wind energy solutions.

Against the backdrop of the global energy transition, the global lithium BESS market experienced rapid growth, increasing from US$3.4 billion in 2020 to US$43.9 billion in 2024, reflecting a CAGR of 89.9%. During this period, grid BESS market grew by 85.9%, commercial and industrial BESS grew by 103.1%, and residential BESS grew by 80.8%. ****Looking ahead, we expect the global lithium BESS market to maintain a robust growth trajectory in the long term. Future growth will be driven by the increasing share of variable renewable energy sources such as solar and wind, supportive policies and subsidies, and the gradual improvement in economic viability. The global lithium BESS market is projected to maintain its rapid growth, reaching US$128.6 billion by 2029, with a CAGR of 24.0% from 2024 to 2029.

![LOGO](g760217g29y53.jpg)

*Source: Frost & Sullivan Report* 

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***Entry Barriers of Lithium BESS Market***

The lithium BESS industry is characterized by a number of entry barriers that make it difficult for new market entrants to establish a competitive position. The major entry barriers of the lithium BESS industry are as follows:

***Talent Barrier*.** The lithium BESS industry is characterized by its high demand for skilled talent. Firms in this domain need diverse research and development professionals alongside production staff who bring a wealth of technical knowledge and industry-specific experience. The nurturing of these specialists involves significant investment in both time and capital. Consequently, companies that have cultivated a team of seasoned core technical staff hold a substantial competitive advantage over newer market players.

***Technology Barrier.* **Lithium BESS technology presents significant technical barriers, rooted in its complex electrochemical processes and multidisciplinary nature. The production of lithium-ion batteries requires extensive expertise, particularly in material selection and process control, which are developed over years. As the industry advances toward safer and longer-lasting batteries, these barriers continue to rise. Moreover, the BMS and EMS, both critical components of energy storage systems, involve advanced technologies that further heighten these barriers. This makes it challenging for new entrants to compete with established companies that have mastered these essential technologies.

***Sales Channels Barrier.*** In the lithium BESS market, effective market penetration depends not only on the quality of the product but also on the breadth and depth of customer coverage, especially in Europe, North America, and APAC, where major market demand for lithium BESS are from. Strong sales channels facilitate direct customer engagement, build enduring relationships, and provide continuous service, all of which are crucial for maintaining high customer retention. Establishing such comprehensive and widely distributed networks requires substantial investment and long-term strategic planning, creating a significant barrier for smaller or newer entrants who often lack the necessary resources and experience to establish effective sales channels.

***Brand Reputation Barrier.*** In the lithium BESS market, the long operational lifespan of energy storage systems necessitates high stability and durability. This makes the product's reputation and the brand's reliability crucial factors. Consumers favor brands known for quality and long-term performance, especially in the European market*.*** Building such a reputation requires extensive time and sustained effort, creating a significant barrier for new entrants who may find it challenging to gain consumer trust in this competitive environment.

***Capital Investment Barrier.*** The lithium BESS industry requires significant fixed asset investment and benefits from economies of scale. Research and development of lithium BESS requires constant and large amount of capital. Therefore, strong financial resources are a significant barrier to entry in this industry.

***Economies of Scale Barrier.*** The lithium BESS industry has significant scale barrier, as its production has the characteristics of economies of scale. Companies with large production scale and abundant capital have considerable scale advantages in raw materials procurement and production operations. Additionally, customer typically make bulk purchases, which makes it difficult for manufacturers with small production scales to gain customer recognition and meet customer demands.

***Growth Drivers and Future Trends of Lithium BESS Market***

The major factors driving the growth of lithium BESS market and the emerging trends that may affect the landscape of lithium BESS industry are as follows:

***Increasing Share of Renewable Energy.*** The global energy system is increasingly shifting towards decarbonization, with clean energy sources like wind and solar gradually replacing fossil fuels as the dominant

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forms of natural energy. However, renewable energy generation, being dependent on natural conditions, is characterized by inherent intermittency and volatility. As its proportion in the energy mix grows, it poses significant challenges to grid safety and stability. Additionally, the unpredictable nature of renewable energy often leads to discrepancies between generation and demand, exacerbating energy absorption challenges. The integration of energy storage systems offers a critical solution by buffering renewable energy's entry into the grid, thereby mitigating fluctuations in wind and solar output and improving energy dispatch efficiency. This, in turn, facilitates more flexible and reliable grid integration and utilization of renewable energy. In the long term, as the penetration of clean energy deepens, the demand for energy storage systems is anticipated to grow steadily.

***Continuous Improvement in Performance and Safety.*** Lithium BESS are at the forefront of the energy industry's shift towards greater integration and intelligence. As these systems evolve to meet increasingly complex application demands, driven by trends towards higher capacity and efficiency, the growing number of battery packs complicates energy management. This challenge is being addressed through the deep integration of advanced BMS and EMS, which combine specialized hardware with sophisticated algorithms for precise charge and discharge management, significantly improving system longevity and efficiency. Additionally, the increasing focus on safety and maintainability has led to the development of intelligent software for fault detection and autonomous maintenance. This seamless fusion of hardware and software, coupled with the push towards smarter, more autonomous systems, positions lithium BESS as a crucial player in the future energy landscape.

***Favorable Government Policies.*** In alignment with the global "carbon-neutral" goals, governments in major economies have introduced a range of policies to promote the development of renewable energy and ESS projects. A regulatory trend is emerging where power generation projects, particularly those involving renewable energy, are required to include corresponding ESS. Additionally, policies now allow energy storage systems to participate in the electricity market as independent entities, thereby expanding potential revenue streams for these systems. Such favorable policies are expected to continue driving the installation of energy storage projects and the expansion of the lithium BESS market.

***Continuous Cost Reduction in lithium BESS System.*** During the past few years, with the advancement in manufacturing technology, expansion of production scale, and the standardization of products, the cost and price of Lithium BESS have witnessed a decreasing trend. As more market players accumulate experience in R&D and improve the production efficiency, the production cost and other indirect expenses of Lithium BESS are expected to further decrease, which will further foster the scalable commercialization of lithium BESS.

**Our Product Solutions** 

We provide more than 2,800 lead-acid and lithium battery products, with battery capacity ranging from 0.8 Ah to 3,000 Ah. These products cater to a wide array of applications and serve various industries. Our battery portfolio encompasses network power batteries, SLI batteries, and motive power batteries, available in diverse types, specifications, and forms. We are expanding our services to include comprehensive energy storage solutions, especially in the rapidly growing Energy Storage System (ESS) sector.

***Network Power Batteries***

Network power batteries, which generate a substantial portion of our revenue, provide backup or standby power for critical facilities and electrical equipment during primary power source outages. Our DJM medium density and DJW small density series are among our most popular products. Featuring valve-regulated lead-acid (VRLA) maintenance-free technology, our batteries are designed with special venting and sealing structures for safe and reliable use. Made with Pb-Ca alloy, they offer attributes such as long float life, flexible installation, and easy maintenance.

Our best-selling products are network power batteries mainly used in UPS and telecom system. These UPS and telecom batteries provide power during primary external AC and DC power source outages, enabling the

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orderly shutdown of computer equipment to protect against data loss or ensuring the continued operation of equipment until emergency generators can take over.

The main industries in which our network power batteries are used and their various applications include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Data center and telecommunications*. Our network power batteries provide reliable power to IDC data
centers, central telephone exchanges, cellular infrastructure, and other wireless and wireline systems operated by major telephone and internet backbone providers. Designed for telecommunications applications, they ensure high reliability and
extended operation. Additionally, our batteries are used for float charging backup in communication systems, power plants, data centers, emergency lighting, and security fields, as well as for energy storage and cyclic use in new energy system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Other consumer and industrial products*. Our network power batteries are widely used in various consumer
electronics and industrial products. Our customers encompass manufacturers and end-users in several sectors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Corporate and residential alarm systems, emergency lighting, toys, jump-starters, test equipment, recreational
vehicles, and medical devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Switchgear and electrical control systems, particularly in standby power systems to ensure the operability of
electric utility generation, transmission, and distribution systems.

***SLI Batteries***

Our SLI batteries, primarily used in automobiles and motorcycles, include Absorbent Glass Mat (AGM) batteries, Enhanced Flooded Batteries (EFB), and conventional flooded batteries. SLI batteries are primarily used to provide the substantial electricity required for starting motor vehicles, including passenger cars, commercial vehicles, motorcycles, ships, and boats. These batteries are also utilized in various other applications such as lawn mowers, water scooters, and ATVs. Our SLI batteries cater to a wide range of applications, covering passenger and commercial vehicles, new energy vehicles, ships, and specialized vehicles like motorcycles and ATVs. In the motorcycle SLI batteries category, we were ranked 2<sup>nd</sup> in the Global Market by sales revenue in 2024, according to Frost & Sullivan.

Our SLI batteries offer several notable features, such as high cold cranking amps (CCA) and cost-effectiveness, and they come in a complete range of specifications and varieties. They provide long start-stop life, excellent deep discharge cycle life and high performance with low water loss, ensuring durability even in high-temperature conditions. Additionally, they offer exceptional vibration resistance and come factory-charged for user convenience.

***Motive Power Batteries***

Our motive power batteries include LDC, DT and PzS/PzB series. The LDC series is geared towards applications such as golf carts and cleaning and sweeping equipment, while the DT series is aimed at aerial work platform vehicles and tourist buses. The PzS/PzB series are mainly used in electric forklifts, tow tractors, pallet trucks, and underground transportation. Our motive power batteries meet the higher requirements of the global market for product capacity and energy density and feature high capacity, high energy density, long cycle life, and deep cycling performance.

Our motive power batteries include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *LDC Deep Cycle Series Batteries*. Suitable for various electric vehicles such as electric tricycles, two-wheelers, golf carts, tourist buses, cleaning and sweeping equipment, and aerial work platforms. These batteries feature deep cycle AGM technology with grids and active materials made from lead

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exceeding 99.99% purity. They are designed with heavy-duty grids for deep cycling, are maintenance-free, leak-proof, valve-regulated, and equipped with dual separator paper for a long cycle life, high energy density, excellent vibration resistance, low self-discharge, and long shelf life. <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *DT Series Batteries*. Primarily used in golf carts, sightseeing vehicles, and cleaning equipment. These
batteries have excellent deep discharge performance, use lead-antimony alloy to extend cycle life, special separator materials to reduce water loss, and an automatic water replenishment system to improve efficiency and reduce the difficulty for end-users. **  Our DT series is characterized as a flooded battery with features including resistance to overcharging, vibration, and extreme temperatures, high safety and reliability, and long service life,
although it requires regular maintenance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *PzS/PzB Forklift Batteries*. Mainly used in electric forklifts, tow tractors, pallet trucks, and
underground transportation, commonly found in airports, stations, ports, and industrial and mining enterprises. Our PzS/PzB forklift batteries use cast grid technology and tubular positive plates to extend battery life. They feature tight
connections to eliminate terminal leakage risks and come with complete accessories for versatile configuration to meet different customer needs.

***Energy Storage System (ESS)***

We launched our ESS offering since 2019. Our ESS offerings primarily focus on grid and user-side applications in telecom, commercial & industrial, fast charging EV stations, data centre, off-grid and Microgrid, etc. These products feature medium capacity, high-rate discharge, integrated AC/DC modularity, support for parallel operation, and seamless photovoltaic & charger integration. The thermal management technology for these products is liquid cooling for better battery performance and sustainability.

To further enhance reliability and sustainability in demand-side C&I and infrastructure markets, we are developing Leoch AI & IoT software with a focus on battery management, remote management, C&I and behind-the-meter energy optimization, microgrid and offgrid, and carbon management. By integrating battery and ESS solutions with IoT, AI, and Microgrid technologies, we aim to create a comprehensive EMS solution that optimizes energy consumption, improves system efficiency, and enhances overall energy resilience for businesses and infrastructure applications.

**Our Customers** 

As of June 30, 2025, we serve over 3,200 customers, with our products sold in over 160 countries and regions worldwide. Our customer base includes industry-leading OEMs, to whom we supply either private-label products or products under our "Leoch" brand. We also deliver aftermarket services through a robust global distribution network. For many customers—including major IDC infrastructure solution providers and telecommunications operators in the United States and Europe—we are required to pass stringent quality control procedures to become a qualified supplier. These leading companies, particularly in the data center and telecommunications sectors, are recognized for their rigorous certification standards.

***Pricing***

We set the prices of our products based on a variety of factors, including market conditions, manufacturing costs, fluctuations in raw material prices (particularly lead prices), foreign exchange rates and purchase volume of our customers.

Most of our sales contracts contain a base price and a pricing mechanism. The pricing of lead-acid battery products is primarily influenced by the market price of lead. If the lead price on the London or Shanghai Metal Exchange fluctuates beyond a specific range, our product prices for such customers will be adjusted accordingly, either upward or downward.

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**Sales and Marketing** 

We have built a strong global sales network to serve our customers and distributors globally. Our sales and marketing team maintains close contact with our customers after order shipment. For our major customers or those who have long-term relationships with us, we have appointed dedicated teams that provides tailored service. Our service technicians also make periodic inspection and maintenance visits. As of June 30, 2025, we had more than 340 dedicated sales and pre- and post-support employees supporting our customers.

Our marketing approach has been developed to be highly responsive to the needs of our customers. We aim to build close relationships with our customers by providing end-to-end services from product design, manufacturing process, to timely after-sales support. The physical proximity of our sales and service locations to our customers allows us to maintain frequent contact with them to better understand and timely respond to their evolving needs. Through our sales and services network, we gather and analyze market information, promote our brand, establish and maintain customer relations, and identify potential customers. We also engage in marketing activities such as attending industry conferences and exhibitions to promote our products and enhance brand visibility. These efforts help us identify new opportunities to expand our customer base. In addition, we generate new customers through referrals, bidding processes, and direct inquires driven by our strong reputation.

**Product Warranty** 

We provide standard product warranty to our customers. We ship replacement to our customers if our products are damaged or do not perform to published specifications at no cost to the customer. We recorded a warranty liability of US$3.0 million, US$5.1 million and US$7.8 million as of December 31, 2023, 2024 and June 30, 2025, respectively. We have not experienced any material disputes arising from or in connection with the quality of our products during the periods presented.

**Research and Development** 

We dedicate significant resources to research and development to improve the performance of our existing products, develop products tailored to specific customer needs, and advance new products and technologies.

After the completion of the spin-off, our research and development efforts will be primarily implemented by our internal research team with the support of industry experts and consultants. Our primary innovation center is based in Singapore with supporting technicians based in Europe. Our R&D team consists of researchers in the R&D department and technicians in our production department, supporting the implementation of technologies into the production process.

Our innovation center in Singapore is equipped with advanced equipment to complement our human resources. Our innovation center in Singapore is engaged in R&D of new technologies such as battery management systems and energy management systems to provide customers with energy solutions for various scenarios. We also collaborate with leading institutions and universities, including Nanyang Technological University in Singapore, on projects such as intelligent predictive maintenance for UPS batteries through physics-based and data-driven hybrid methods.

We emphasize a client-driven approach in developing new and improved products and technologies. In addition to projects we conduct in response to industry trends, many of our R&D initiatives are designed to address special requirements from our customers. We have found client-initiated research projects to be beneficial in understanding our clients' needs and producing batteries with strong market acceptance, as well as strengthening our client relationships.

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**Production Facilities** 

***Production Bases***

As of June 30, 2025, we have six state-of-the-art factories across four countries worldwide, with a total of 30 production lines, and we have three new production plant under construction. As part of the continuous support from Leoch Technology, it is contemplated that during a transitional period commencing from the completion of the spin-off, we will continue to procure finished battery products from Leoch Technology, and Leoch Technology will continue to manufacture and sell finished battery products to us for its sales in the Global Markets. We will continue to enhance our own production capabilities and aim to operate independently after the transition period. Total capital commitments contracted but not yet reflected in the financial statements amounted to US$12.5 million, US$24.6 million and US$39.4 million as of December 31, 2023, 2024 and June 30, 2025, respectively, primarily related to the future expansion of our manufacturing facilities. Our expansion plans are expected to increase our total annual installed capacity to approximately 20.70 GWh, up from the current 7.28 GWh as of June 30, 2025.

See "—4.D. Property, Plants and Equipment" for detailed discussion of properties.

***Equipment***

We employ modern equipment in our production processes, incorporating technologies that are up to current market standards used by leading international battery manufacturers. We believe the equipment we employ is critical to our business as it plays a significant role in ensuring the quality of the products we manufacture.

Our principal production equipment includes lead powder grinding machines, plate casting machines, pasting machines, cast-on strap machines, heat-sealing machines, welding machines, formation chargers, optical emission spectrometers, and atomic absorption spectrophotometers, which we purchase from both domestic and international manufacturers.

We utilize a continuous casting and coating (ConCast) system from a leading U.S. supplier known for its expertise in battery grid manufacturing. This dual-strip system delivers high-speed, precision casting, enabling greater efficiency and lower production costs compared to typical industry setups. To support consistent battery performance, we also employ a high-efficiency strip-pasting machine from the same supplier. It offers fast, uniform double-sided pasting while maintaining excellent quality control. For plate wrapping, we rely on automated systems from a top Austrian equipment provider. These machines support various battery types and processes, delivering high precision and enhanced productivity. Our casting, welding, and assembly lines are sourced from a UK-based leader in manufacturing automation. These systems are designed for reliability, ease of operation, and improved consistency, particularly for automotive battery production. We also use grid-expanding equipment supplied by the original inventors of the process. Supplied through our UK partner, this equipment minimizes mechanical vibration and ensures uniform, crack-free grids that are well-suited for paste application.

We regularly inspect, maintain and repair our equipment. In addition, we conduct extensive servicing once a year during a scheduled shut-down for up to two days, generally around public holidays to minimize potential production disruption. We rely on our in-house employees and vendor technicians for maintenance and repairs. We have not experienced any major difficulties or delays in sourcing or purchasing the equipment we need to manufacture our products.

**Raw Materials and Utilities** 

***Raw Materials and Finished Goods***

The major raw materials used in our production include lead, copper, lead alloy, ABS plastic, PP plastic, sulphuric acid and fiberglass. Purchases of our major raw materials are made through our procurement center,

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which allows us to negotiate more favorable bulk supply contracts and ensure consistency in the quality of raw materials. In addition, historically we procure finished battery products from Leoch Technology and prior to completion of the spin-off, Leoch Technology will enter into a product procurement framework agreement (the "Product Procurement Framework Agreement") with us, pursuant to which Leoch Technology would manufacture and provide finished battery products to us for our further sales in the Global Markets, and charge the purchase amount plus a mark-up rate.

Lead constitutes the largest share of our raw material costs. Under the contracts with our lead suppliers, the price of each shipment is based on the lead price published on the London or Shanghai Metals Market. To protect ourselves from the risk of price fluctuations, many sales contracts with our customers have a similar pricing mechanism, where prices of our products are adjusted if the lead price on the London or Shanghai Metals Market rises or falls beyond a certain range. For more details, see "—Customers—Pricing" above.

***Inventory***

We have implemented a centralized inventory control system and the level of inventory is determined based on the needs of all of our production facilities. Our centralized sales center will generally assign an order to the production facility that has the necessary raw materials readily available to maximize efficiency and minimize our upfront cost. Through this system, we are able to monitor the inventory level for all production materials across all facilities and periodically redistribute excess materials to optimize resource allocation. For lead and ABS plastic, which are generic materials used for all products and are processed at our production facilities for specific applications, our production facilities generally maintain an average inventory of seven days and thirty days, respectively.

**Our Suppliers** 

We source lead from leading global Fortune 500 companies and procure plastic materials from top-tier international suppliers to meet our production needs. We select our suppliers through a set of standardized procedures to ensure that our raw materials and supplies meet our quality control standards. A supplier must pass our quality control procedures before it can become a preferred supplier and be eligible for long-term contracts. In addition, the quality of our suppliers' products and services are subject to random testing and annual review to ensure continuing compliance with our order specifications and quality standards.

We have developed a comprehensive supply chain with multiple material and equipment suppliers. We maintain at least two suppliers for our major raw materials in each of the countries or regions to mitigate the risk of reliance.

As part of the continuous support from Leoch Technology, it is contemplated that during a transitional period commencing from the completion of the spin-off, we will continue to procure finished battery products from Leoch Technology, and Leoch Technology will continue to manufacture and sell finished battery products to us for our sales in the Global Markets.

**Quality Control** 

We have established two regional Technical and Quality Management Centers for our Global Market and implemented factory executive committees at each of our factories across production facilities to ensure adherence to unified global quality standards.

Our quality management system is built on a comprehensive framework aligned with the Excellence Performance Model and applicable international standards. We have obtained certifications including ISO 9001, IATF 16949, TL 9000, ISO 14001, ISO 50001, ISO 14064, ISO 14067, QC 080000, ISO 45001, and SA 8000. The technical quality centers oversee product certifications such as CE (EU), UL (U.S.), and others, while

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ensuring strict compliance with system documentation and continuous quality improvement at the factory level. All product and process development undergoes tiered approvals depending on the type of improvement, with final implementation subject to authorization by the respective factory, regional management center, or headquarters. Quality issues are also classified and handled accordingly, with all incidents reported to headquarters for centralized oversight.

Quality management spans the full product lifecycle—from customer requirements and R&D certification to raw material control, in-process quality checks, final inspection, and after-sales service—ensuring comprehensive risk prevention. Key product characteristics subject to safety and regulatory requirements are monitored through ongoing sampling or full inspection. We also conduct independent audits across the entire value chain, covering internal and external quality data such as incoming defect rates, first-pass yields, scrap rates, performance testing, and customer complaints.

We have demonstrated strong quality performance across all stages of production, including inbound material inspection, in-process controls, and final product output. We consistently achieve a low rate of quality defects and receive few post-shipment product complaints. Our strong quality performance is driven by a skilled quality team, a well-established quality management procedures, and ongoing enhancements in automation across our production and quality control processes. We are also actively advancing toward the digitalization of our quality management systems.

**Material Licenses and Permits** 

We have earned the certification of various national standards for product safety or quality management, including UL Certificate from Underwriters Laboratories Inc. (United States), CE Certificate from EMTEK Shenzhen Co., Ltd. (European Union), VdS Certificate from VdS Schadenverhutung GmbH (Germany), and IEC Certificate from Intertek Testing & Certification Ltd. (U.K.). Each of these certifications is required before we could begin selling our products to the respective country and also helps to establish our quality in other markets.

Each certifying institution has its own requirements for maintaining valid certifications. Each of the UL certificates, CE certificates and IEC certificates requires our products to be certified before they can be sold in the United States, the European Union and the U.K., respectively, and then requires us to pay an annual fee to maintain the certification. The VdS certificates were granted for different products for a five-yearperiod with the most recent commencing on January 30, 2024 and expiring on January 29, 2029. The ISO 9001:2015 was granted for a period of three years commencing on January 18, 2023 and expiring on January 27, 2026. The SA8000:2014 was granted for a period of three years commencing on January 26, 2024 and expiring on January 25, 2027.

We do not foresee any legal impediment in renewing our certifications upon expiry of their respective validity periods.

**Competition** 

Please refer to detailed discussion in "—Overview of Our Industry."

**Seasonality** 

Our results of operations are affected by spending patterns and seasonality in the industries of our major customers and overall economic conditions in the markets in which we operate. Our sales are also subject to the seasonality of the industries we serve, such as e-bikes and automotives, which may affect our periodic operating results. For example, during the first half of the year, which is considered the off-season, sales volumes are relatively lower, making it challenging to allocate production costs efficiently, which affects gross margin performance. In contrast, the second half of the year marks the peak season, where increased production scales significantly reduce unit costs, leading to improved gross margins. More generally, our products are heavily

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dependent on the demand in the industries we serve, including data center, telecommunications, UPS, energy storage system, renewable energy and vehicle industries. A weak capital expenditure environment in these sectors could have a material adverse effect on our results of operations.

**Insurance** 

We maintain comprehensive insurance coverage for our assets, including production facilities, inventories, machinery, equipment, and vehicles. Additionally, we have logistics insurance to cover the shipment of goods. For our employees, we comply with statutory insurance requirements, including work-related injury insurance (covering lead poisoning), medical insurance, maternity insurance, unemployment insurance, and pension insurance. Beyond statutory coverage, we provide personal injury and accidental medical insurance for selected management, administrative, and sales employees, based on their job responsibilities. We also maintain global product liability insurance to cover bodily injuries and property damage caused by our products, subject to specific coverage limits. For exported products, we maintain additional export insurance.

**Intellectual Property Rights** 

We retain certain trademarks for use in the Global Markets independently and rely primarily on a combination of patents, copyrights, trademarks and trade secrets, the brand licensing framework agreement with Leoch Technology as well as employee and third-party confidentiality agreements to protect our intellectual property.

Under the brand licensing framework agreement, Leoch Technology will grant to us the exclusive rights to develop, produce and sell products under the brands of ![LOGO](g760217g33l51.jpg) , ![LOGO](g760217g00m93.jpg) and ![LOGO](g760217g01a30.jpg) (the "Licensing Brands") in the Global Markets and charge us royalties from for such licensing arrangement.

We rely on trade secret protection and confidentiality agreements to safeguard our interests regarding certain proprietary information. All of our employees are required to sign a general confidentiality agreement, while those with particular access to our proprietary information, such as researchers in the research and development department, are required to sign a more expansive non-disclosure agreement. We also require our clients and business partners to enter into confidentiality agreements before we disclose any sensitive aspects of our operations, technology or business plans.

Despite our efforts to protect our proprietary rights, unauthorized parties may attempt to copy or otherwise obtain and use our technology. It is difficult to monitor unauthorized use of technology, particularly in countries where the laws may not adequately protect our proprietary rights. In addition, our competitors may independently develop technology similar to ours. Our precautions may not prevent misappropriation or infringement of our intellectual property. For details about risks related to our intellectual properties, see "Item 3. Key Information—3.D. Risk Factors—Risks Related to Our Industry and Business Operations."

**Regulations** 

There are government regulations pertaining to battery safety, transportation of batteries, use of batteries in cars, factory safety, and disposal of hazardous materials, including but not limited to the REACH regulation (EC 1907/2006) for chemicals, the RoHS directive (EU 2011/65/EU) for restricting hazardous substances in electronic equipment, the F-Gas regulation (EU 517/2014) for fluorinated greenhouse gases, the Ozone Depleting Substances regulation (EC 1005/2009), the Waste Electrical and Electronic Equipment (WEEE) directive (2012/96/EU) and the Battery Directive (2006/66/EC) and its amendment (2013/56/EU). We are also required to comply with applicable laws and requirements under China RoHS and California Proposition 65 directive.

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The major applicable regulatory bodies include European Chemicals Agency (ECHA), national enforcement authorities within EU member states, coordinated by the European Commission, and Office of Environmental Health Hazard Assessment (OEHHA) in California.

**4. C. Organizational Structure** 

**Organizational Structure** 

We are currently a wholly owned subsidiary of Leoch Technology. Following the spin-off, we will be a separate, standalone company independent of Leoch Technology. Leoch Technology will not retain any ownership interest in us.

***Immediately Prior to the Distribution***

![LOGO](g760217g15a35.jpg)

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***Immediately After the Distribution***

![LOGO](g760217g15b45.jpg)

See Item 4. "Information on the Company—4.B. Business Overview" for additional information.

**Significant Subsidiaries** 

An exhibit containing a list of our significant subsidiaries has been filed with this registration statement.

**4. D. Property, Plants and Equipment** 

The following table sets forth our most significant facilities as of June 30, 2025.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Location** | **Size of Site** | **Held** | **Lease Term** | **Major Activities** |
| Malaysia | Approximately 170,600 sq.m. | Leased | January 2025 – December 2027 | Factory & office |
| Ping Fu, Vietnam | Approximately 15,700 sq.m. | Leased | March 2025 – February 2031 | Factory |
| Ping Fu, Vietnam | Approximately 15,700 sq.m. | Leased | March 2025 – February 2031 | Factory |
| Bhiwadi, India | Approximately 16,000 sq.m. | Leased | October 2015 –October 2024 | Factory |
| Bhiwadi, India | Approximately 11,000 sq.m. | Leased | June 2024 –May 2029 | Factory |
| Ping Fu, Vietnam | Approximately 21,000 sq.m. | Owned | N/A | Factory, office & warehouse |
| Ping Fu, Vietnam | Approximately 22,000 sq.m. | Owned | N/A | Factory, office & warehouse |
| Malaysia | Approximately 27,000 sq.m. | Leased | January 2024 – August 2030 | Factory |
| Malaysia | Approximately 21,000 sq.m. | Owned | N/A | Factory |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Location** | **Size of Site** | **Held** | **Lease Term** | **Major Activities** |
| Saltillo, Mexico | Approximately 10,000 sq.m. | Leased | May 2024 – June 2028 | Factory, office & warehouse |
| Saltillo, Mexico | Approximately 49,000 sq.m. | Owned | N/A | Factory, office & warehouse |
| Sri Lanka | Approximately 16,000 sq.m. | Leased | August 2012 to August 2042 | Office |

---

**4. E. Unresolved Staff Comments** 

Not applicable.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS** 

**5. A. Operating Results** 

This operating and financial review should be read together with the section captioned "Selected Financial Data," "Item 4. Information on Leoch Technology—4.B. Business Overview" and the combined financial statements and condensed combined financial statements of the Leoch Energy Business and the related notes to those statements included elsewhere in this Form 20-F. Our reference to the combined financial statement(s) includes the relevant condensed combined financial statement(s) for the periods presented throughout the rest of this section. Among other things, those financial statements include more detailed information regarding the basis of preparation for the following information. The combined financial statements of the Leoch Energy Business have been prepared in accordance with GAAP. This discussion contains forward-looking statements that involve risks and uncertainties. As a result of many factors, such as those set forth under "Risk Factors" and elsewhere in this Form 20-F, our actual results may differ materially from those anticipated in these forward-looking statements. Please see "Special Note About Forward-Looking Statements" in this Form 20-F.

**Items You Should Consider When Evaluating Our Combined Financial Statements and Assessing Our Future Prospects** 

Our results of operations, financial position and cash flows could differ from those that would have resulted if we operated autonomously or as an entity independent of Leoch Technology in the periods for which the combined financial statements and the unaudited condensed combined financial statements are included in this Form 20-F, and such information may not be indicative of our future operating results or financial performance. As a result, you should consider the following facts when evaluating our historical results of operations and assessing our future prospects:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For the period covered by our combined financial statements, our business was operated within legal entities
which hosted portions of other Leoch Technology businesses. For example, certain assets, liabilities and results of operations of subsidiaries related to certain markets will remain with Leoch Technology and are not included in these combined
financial statements as they are not core to our historical and future business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For annual reporting purposes, income taxes attributable to our business have been determined using the separate
return approach, under which current and deferred income taxes are calculated as if a separate tax return had been prepared in each tax jurisdiction. In various tax jurisdictions, our and Leoch Technology's businesses operated within the same
legal entity and certain Leoch Technology subsidiaries were part of Leoch Technology's tax group. This required an assumption that the subsidiaries and operations of Leoch Energy in those tax jurisdictions operated on a standalone basis and
constitute separate taxable entities. Actual outcomes and results could differ from these separate tax return estimates, including those estimates and assumptions related to realization of tax benefits within Leoch Technology's tax groups.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For interim reporting purposes, income taxes attributable to our business have been determined in accordance with
FASB guidance for interim reporting of income tax, under which we have computed

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our provision for income taxes based on a projected annual effective tax rate while excluding loss jurisdictions which cannot be benefited. Our projected effective tax rate is based on forecasted annualized results which may fluctuate significantly in future periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our combined financial statements also include an allocation from Leoch Technology for certain management and
support functions that we would incur as a publicly traded company that we have not previously incurred. The allocation of these additional expenses, which are included in the combined financial statements, may not be indicative of the actual
expense that would have been incurred had we operated as an independent, publicly traded company for the period presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The preparation of financial statements requires management to make certain estimates and assumptions, either at
the balance sheet date or during the period that affects the reported amounts of assets and liabilities as well as expenses. In particular, due to the fact that the presented combined financial statements have been carved out from Leoch Technology
financial statements, actual outcomes and results could differ from those estimates and assumptions as indicated in the critical accounting policies and estimates section of this Form 20-F. See "Note 1.
Background and Basis of Presentation" to our combined financial statements included elsewhere in this Form 20-F and in the "Critical Accounting Policies and Significant Estimates" section
within this Item 5.A.

**Overview** 

We are a global energy management and power solution company. We offer comprehensive energy management and power solutions including Battery Management System (BMS), Energy Storage Systems (ESS), AI and Internet-of-things (IOT), and a wide range of batteries for applications such as data centers (IDCs), and AI data centers (AIDCs), telecommunication base station, automobiles and motorcycles, low-speed electric vehicle, as well as residential, commercial and industrial (C&I), off-grid, power grid and renewable energy users. Additionally, we have broadened our product portfolio by developing Energy Management System (EMS) and Remote Maintenance System (RMS) in our innovation center in Singapore. We have a comprehensive offerings of more than 2,800 battery products encompassing UPS & network power battery, start, lighting and ignition battery (SLI battery), motive power battery and ESS batteries, among all global battery manufacturers. We are currently a wholly-owned subsidiary of Hong Kong-listed company Leoch Technology. After the spin-off, we will operate as an independent company, delivering batteries, ESS, IOT, EMS and various power solutions to customers and distributors in the Global Markets. Meanwhile, Leoch Technology will continue to serve customers and distributors within Chinese Mainland, Hong Kong and Macau.

Our products' outstanding performance not only meets customer needs but also earns their lasting trust, as we expand beyond batteries into energy and sustainability solutions for the present and future. We have cultivated a high-quality and diverse customer base, serving more than 3,200 customers as of June 30, 2025. With our extensive global sales network, our products reached 160 countries through 20 sales companies, with more than 340 dedicated sales and pre- and post-support employees. We are a trusted power solution provider serving world's top IDC infrastructure solution providers, telecommunication operators and automobile original equipment manufacturers, as well as commercial, industrial, and city infrastructure clients and service providers. These industry leaders, particularly in IDC, telecommunications, and critical urban infrastructure, uphold stringent certification and cybersecurity compliance standards, creating high entry barriers for new suppliers—especially battery, ESS, and energy companies from regional markets seeking to expand into international markets. Our established role as a long-term partner to these global organizations is a clear indication of the superior quality and reliability of our products and services. This, in turn, reinforces ****our customer relationships in the long term.

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**Trends and Uncertainties** 

Our financial condition and results of operations have been, and will continue to be, affected by a number of factors, including but not limited to those set out below.

***Fluctuations in prices of our major raw materials***

Our production processes rely on a substantial intake of various materials, including lead, lead alloy, ABS plastic, PP plastic, sulphuric acid and fiberglass, which are critical for maintaining our manufacturing operations. Securing a consistent and cost-effective supply of these primary raw materials is essential for our production success, with raw material costs comprising a significant portion of our cost of revenues. Accordingly, fluctuations in prices of our major raw materials, such as lead, have a significant impact on our business operations and financial condition.

The procurement of raw materials is subject to market pricing, which can fluctuate and subsequently impact our financial results and profitability. We face the challenge of sourcing future raw material requirements at reasonable costs and may not always be able to pass on increased raw material costs entirely to our customers.

Our sales contracts, particularly with IDC data center and telecommunication customers, typically include a base price and a pricing mechanism that allows for adjustments based on market conditions. The pricing of lead-acid battery products is largely influenced by the market price of lead. If the lead price on the London or Shanghai Metal Exchange varies beyond a specific threshold, our product prices will be adjusted accordingly, either increasing or decreasing. For lead-acid batteries supplied to distributors, we sell at fixed prices, which reflects current market trends.

Furthermore, we purchase futures and options to hedge financial risks relating to price fluctuations of our raw materials. Commodity futures and option contracts carry significant risks, including market volatility and leverage risk, which can amplify both gains and losses. Additionally, liquidity risk and the potential for physical delivery in futures contracts pose challenges, while the time-bound nature of options can lead to the loss of the entire premium if the market moves unfavorably. Our purchase of futures and options has been limited historically, and we do not expect to make substantial purchases in the future.

For uncertainties and risks related to fluctuations in prices of our major raw materials and the impact on our business, see also "Item 3. Risk Factors—Risks Related to Our Business and Industry— Fluctuations in the prices of raw materials, such as lead, could materially and adversely affect our results of operations."

***Fluctuations in foreign exchange rates***

We operate a substantial and expanding share of our business in currencies other than US dollars, yet we report our combined financial results in US dollars, which positions us to leverage the dynamic global marketplace. We recorded net foreign exchange loss of US$1.1 million, US$4.3 million and US$4.7 million for the years ended December 31, 2023, 2024 and for the six-months ended June 30 2024, respectively. We recorded net foreign exchange gain of US$4.4 million for the six months ended June 30, 2025. These fluctuations reflect the dynamic nature of international trade and its impact on our financial condition.

As exchange rates naturally fluctuate, our revenue, costs excluding depreciation and amortization, operating expenses, other income and expenses, as well as our assets and liabilities, may also experience variations when translated into US dollars. This diversity in financial performance reflects our commitment to global operations and the opportunities it presents for growth.

Fluctuations in foreign exchange rates pose risks to our global operations. While they can enhance the value of our international transactions on some occasions, on others, they can diminish it. These variations directly impact our revenue and cost structure, potentially affecting profitability. To manage these risks, we remain vigilant and

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actively monitor global currency markets, seeking opportunities to optimize our financial strategies in response to changing conditions. We may hedge against fluctuations in foreign exchange rates by employing financial instruments such as forward contracts and currency swaps, which we believe will be helpful to mitigate the impact of exchange rate volatility on our international operations and financial performance. Our goal is to sustain the stability and growth of our international business despite the inherent volatility of foreign exchange rates.

For uncertainties and risks related to fluctuations in foreign exchange rates and the impact on our business, see also "Item 3. Risk Factors—Risks Related to Our Financial Condition—Fluctuations in exchange rates could have a material and adverse effect on our results of operations."

***Seasonality of demand for our battery products***

Our operating results are influenced by spending patterns and seasonality within the industries of our major customers, as well as overall economic conditions in the markets where we operate. Particularly in industries we serve, such as e-bikes and automotives, seasonality can impact our periodic operating results. More broadly, our products are heavily dependent on demand within the industries we cater to, including IDC data center, telecommunications, UPS, energy storage system, renewable energy and vehicle industries. A downturn in capital expenditure in these sectors could significantly affect our operating results.

The demand for certain battery products exhibits distinct seasonal patterns. For instance, the replacement rate for automotive SLI batteries is higher in winter, illustrating the impact of seasonal changes on product demand. Additionally, the cyclical nature of downstream industries can also affect the demand for certain battery products; for example, the capital expenditure cycles in the telecommunications industry may influence the demand for backup power supplies. These cyclical factors highlight our sensitivity to market dynamics and the importance of adjusting our operational strategies across different seasons and economic cycles.

For uncertainties and risks related to seasonality and the impact on our business, see also "Item 3. Risk Factors—Risks Related to Our Business and Industry— Spending patterns and seasonality in the industries we serve could adversely affect our results of operations."

Our business is also affected by general factors such as trends in technology development of our industry, demand and pricing of our products, fluctuations of interest rates, as well as geopolitical events that may have an impact on the market or the supply chain, among others. For a further discussion of trends, uncertainties and other factors that could impact our operating results, see the section entitled "Risk Factors" included elsewhere in this Form 20-F.

***Basis of Presentation***

We have not historically prepared standalone financial statements for the Company. The accompanying combined financial statements of the Company have been prepared in accordance with the generally accepted accounting principles of the United States ("U.S. GAAP"). There was no controlling financial interest held by us over the entities that comprise Leoch Energy Business for any periods presented. Hence, we prepared our financial statements on a combined basis including the financial statements of the Company, and those entities comprising the Leoch Energy Business in the Global Markets. All significant intercompany transactions and balances have been eliminated.

**Components of Results of Operations** 

The following section describes certain line items in our combined statements of comprehensive income:

***Revenues***

Our revenues are derived principally from sales of various battery products to customers. For a discussion of how and when we recognize revenue, see "Note 2. Summary of Significant Accounting Policies" to our combined financial statements included elsewhere in this Form 20-F.

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The following table sets forth our revenue in the periods indicated and based on the product categories and their percentage of total revenue.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended**<br>**December 31,** | **Year ended**<br>**December 31,** | **Year ended**<br>**December 31,** | **Year ended**<br>**December 31,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2023** | **2023** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** |
|  | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** |
|  | | | | | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* | *US$ in thousands, except percentage* |
|  Network power | 323387 | 46.5 | 381861 | 43.9 | 172733 | 43.4 | 189547 | 39.1 |
|  SLI | 240157 | 34.6 | 376725 | 43.3 | 176848 | 44.4 | 223285 | 46.0 |
|  Motive power | 50438 | 7.3 | 59792 | 6.9 | 26474 | 6.7 | 36455 | 7.5 |
|  ESS | 59376 | 8.5 | 41073 | 4.7 | 20841 | 5.2 | 35593 | 7.3 |
|  Others | 21626 | 3.1 | 10890 | 1.2 | 1335 | 0.3 | 179 | 0.1 |
|  **TOTAL** | **694984** | **100.0** | **870341** | **100.0** | **398231** | **100.0** | **485059** | **100.0** |

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The following table sets forth our revenue in the periods indicated and based on the geographic locations of our customers and their percentage of total revenue.

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Year ended December 31,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** | **Six months ended June 30,** |
|  | **2023** | **2023** | **2024** | **2024** | **2024** | **2024** | **2025** | **2025** |
|  | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** | **Revenue** | **%** |
|  | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** | *(US$ in thousands, except percentage***)** |
|  |  |  |  |  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
|  Americas | 295460 | 42.5 | 353013 | 40.6 | 180991 | 45.5 | 195138 | 40.2 |
|  Asia-Pacific (excluding Chinese Mainland, Hong Kong and Macau) | 143207 | 20.6 | 174136 | 20.0 | 80593 | 20.2 | 88211 | 18.2 |
|  EMEA and others | 256317 | 36.9 | 343192 | 39.4 | 136647 | 34.3 | 201710 | 41.6 |
|  **TOTAL** | **694984** | **100.0** | **870341** | **100.0** | **398231** | **100.0** | **485059** | **100.0** |

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***Cost of Revenues***

We generally recognize our cost of revenues in the same period that we recognize related revenues. Cost of revenues consists primarily of materials, labor costs and manufacturing overheads (including depreciation of assets associated with production). Cost of revenues also includes charges to write-down the carrying value of the inventories when it exceeds its estimated net realizable value and to provide for on-hand inventories that are either obsolete or in excess of forecasted demand. The cost of raw materials is the single largest cost element in our cost of revenues.

***Research and Development Expenses***

Research and development expense are primarily employee compensation and related costs incurred in the development and enhancement of new product and technology.

***Selling and Marketing Expenses***

Our selling and marketing expenses primarily include employee compensation for our selling and marketing personnel and other sales and marketing related expenses.

***General and Administrative Expenses***

General and administrative expense consists primarily of employee compensation for our general and administrative personnel and depreciation.

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***Interest Income***

Our interest income consists primarily of our income from interests of financial assets, such as bank deposits.

***Interest Expense***

Our interest expense consists primarily of interest incurred on borrowings and letters of credit.

***Foreign Exchange Loss, Net***

Our foreign exchange loss, net represents our financial losses resulting from the fluctuation in foreign exchange rates.

***Income Tax Expenses***

Our income tax expenses consist primarily of our current income tax expenses and deferred tax benefit. "Note 11. Income taxes" to our combined financial statements included elsewhere in this Form 20-F for details.

Cayman Islands

Under the current tax laws of Cayman Islands, We are not subject to tax on income or capital gains. Besides, upon payment of dividends by us to our shareholders, no Cayman Islands withholding tax will be imposed.

Singapore

Under the Singapore tax laws, our subsidiary in Singapore is subject to 17% income tax rate on any taxable income accruing in or derived from Singapore, or received in Singapore from outside Singapore.

United States

As a result of the United States tax law amendments, the federal statutory income tax rate for the subsidiary in the US is 21% for the year ended December 31, 2024. Our subsidiary in the US was incorporated in the state of California, and is also subject to state income tax at a rate of approximately 5.6% for the year ended December 31, 2024.

Vietnam

Under the Vietnam tax laws, the subsidiary in Vietnam is subject to 20% income tax rate on any taxable income.

Malaysia

Under the Income Tax Act of Malaysia, the subsidiary in Malaysia is subject to 24% income tax rate any taxable income.

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**Results of Operations** 

The following table sets forth our combined results of operations for the periods indicated. This information should be read together with our combined financial statements and related notes included elsewhere in this Form 20-F. The operating results in any period are not necessarily indicative of the results that may be expected for any future period.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31,** | **Year Ended**<br>**December 31,** | **Six Months Ended**<br>**June 30,** | **Six Months Ended**<br>**June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | *(US$ in thousands)* | *(US$ in thousands)* | *(US$ in thousands)* | *(US$ in thousands)* |
|  **Revenues** | 694984 | 870341 | 398231 | 485059 |
|  **Cost of revenues** | (592877) | (749340) | (338411) | (423429) |
|  **Gross profit** | **102107** | **121001** | **59820** | **61630** |
|  **Operating expenses** |  |  |  |  |
|  Research and development | (7707) | (3999) | (1514) | (2609) |
|  Selling and marketing | (25265) | (27444) | (15596) | (17873) |
|  General and administrative | (15888) | (24041) | (8938) | (13811) |
|  **Total operating expenses** | **(48860)** | **(55484)** | **(26048)** | **(34293)** |
|  **Income from operations** | **53247** | **65517** | **33772** | **27337** |
|  Interest income | 130 | 143 | 75 | 89 |
|  Interest expense | (4574) | (8513) | (4927) | (3229) |
|  Foreign exchange loss, net | (1096) | (4329) | (4715) | 4379 |
|  Others, net | 1634 | 493 | 52 | 870 |
|  **Income before income taxes** | **49341** | **53311** | **24257** | **29446** |
|  Income tax expenses | (9072) | (16097) | (8165) | (10849) |
|  **Net income** | **40269** | **37214** | **16092** | **18597** |

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***Discussion of the Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024***

***Revenues***

Our revenues increased by 21.8% from US$398.2 million for the six months ended June 30, 2024 to US$485.1 million for the six months ended June 30, 2025, primarily attributable to the significant increase of revenues generated from SLI battery products. The increase in our revenues is driven by the increased demand in Asia due to the Vietnamese market's shift toward lead-acid batteries, higher sales in Europe following major progress in our lithium battery projects, and sales growth in the Middle East and Africa as our Vietnam facility took on orders affected by GCC anti-dumping duties. In particular, our revenue generated from SLI battery products globally increased by 26.3% from US$176.8 million for the six months ended June 30, 2024 to US$223.3 million for the six months ended June 30, 2025.

Our overall revenue growth was also driven by an increase in revenue from network power battery products, motive power products and ESS solutions. Benefiting from our expanded market coverage and increasing market acceptance across our key markets, revenue from network power battery products rose by 9.7% from US$172.7 million for the six months ended June 30, 2024 to US$189.5 million for the six months ended June 30, 2025. Revenue generated by motive power products increased by 37.7% from US$26.5 million for the six months ended June 30, 2024 to US$36.5 million for the six months ended June 30, 2025. Moreover, revenue from our ESS solutions increased by 70.8% from US$20.8 million in the six months ended June 30, 2024 to US$35.6 million during the same period in 2025.

From a geographic perspective, we have expanded our local sales presence in the EMEA and Asia-Pacific. Leveraging our deep understanding of international customers, globally recognized brand reputation, rising local market demand, diverse product portfolio, reliable product quality and competitive pricing, we have achieved

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significant revenue growth from both new and existing customers. Revenue in the EMEA and others increased by 47.6% from US$136.6 million for the six months ended June 30, 2024 to US$201.7 million for the six months ended June 30, 2025. Moreover, revenue from Asia-Pacific (excluding Chinese Mainland, Hong Kong and Macau) increased significantly from US$80.6 million for the six months ended June 30, 2024 to US$88.2 million for the six months ended June 30, 2025, representing a 9.5% growth. Revenue in Americas also contributed to the increase of total revenue. Such revenue increased by 7.8% from RMB181.0 million in the first six months of 2024 to RMB195.1 million in the first six months of 2025.

***Cost of Revenues***

Our cost of revenues increased by 25.1% from US$338.4 million for the six months ended June 30, 2024 to US$423.4 million for the six months ended June 30, 2025, in line with our revenue growth. This increase was primarily attributable to the increase in labor and material expenses associated with the growth in product sales volume.

***Gross Profit and Gross Profit Margin***

Our gross profit increased by 3.0% from US$59.8 million for the six months ended June 30, 2024 to US$61.6 million for the six months ended June 30, 2025. The increases were primarily driven by our significant revenue growth. Our gross profit margin slightly decreased from 15.0% for the six months ended June 30, 2024 to 12.7% for the six months ended June 30, 2025, mainly due to the procurement of higher-cost components imported from the Chinese Mainland due to applicable tariffs.

***Research and Development Expenses***

Our research and development expenses increased by 72.3% from US$1.5 million for the six months ended June 30, 2024 to US$2.6 million for the six months ended June 30, 2025, primarily due to our increased investment in lithium battery EMS, BMS and AI-BMS research and development, mainly for the recruitment of specialized technical talent and the acquisition of laboratory equipment.

***Selling and Marketing Expenses***

Our selling and marketing expenses increased by 14.6% from US$15.6 million for the six months ended June 30, 2024 to US$17.9 million for the six months ended June 30, 2025, primarily due to increased personnel and office costs resulting from our business expansion.

***General and Administrative Expenses***

Our general and administrative expenses increased by 54.5% from US$8.9 million for the six months ended June 30, 2024 to US$13.8 million for the six months ended June 30, 2025, primarily due to the increase in personnel costs and expected credit losses. In addition, the listing expenses incurred in 2025 in connection with our spin-off listing also contributed to an increase in the general and administrative expenses.

***Interest Income***

For the six months ended June 30, 2024 and 2025, we recorded interest income of US$75 thousand and US$89 thousand, respectively.

***Interest Expense***

Our interest expense decreased from US$4.9 million for the six months ended June 30, 2024 to US$3.2 million for the six months ended June 30, 2025, primarily due to the repayment of bank borrowings.

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***Foreign Exchange (Loss)/Gain, net***

We recorded net foreign exchange loss of US$4.7 million for the six months ended June 30, 2024 and net foreign exchange gain of US$4.4 million for the six months ended June 30, 2025, primarily due to the fluctuations in foreign exchange rates.

***Income Tax Expenses***

Our income tax expenses increased from US$8.2 million for the six months ended June 30, 2024 to US$10.8 million for the six months ended June 30, 2025, primarily due to an increase in valuation allowance.

***Net Income***

As a result of the foregoing, our net income increased from US$16.1 million for the six months ended June 30, 2024 to US$18.6 million for the six months ended June 30, 2025.

***Discussion of the Year Ended December 31, 2024 Compared to Year Ended December 31, 2023***

***Revenues***

Our revenues increased by 25.2% from US$695.0 million for the year ended December 31, 2023 to US$870.3 million for the year ended December 31, 2024, primarily attributable to the significant increase of revenues generated from SLI battery products, driven by higher sales of high-end products, improved delivery capabilities, and the continued expansion of automobile aftermarket services sector, leading to the rise in the proportion of repeat orders in 2024. In particular, our revenue generated from SLI battery products globally increased by 56.9% from US$240.2 million for the year ended December 31, 2023 to US$376.7 million for the year ended December 31, 2024. With the increasing number of automobiles in use, the aftermarket for SLI battery products holds significant potential, and we are actively expanding its presence in this sector. This revenue growth was also driven by an increase in revenue from network power battery products, primarily fueled by the rapid expansion of data centers, which led to greater demand for these products.

This revenue growth was also driven by an increase in revenue from network power battery products and motive power products. Network power battery products primarily fueled by the rapid expansion of telecommunication base construction in southeast Asia region, which led to greater demand for these products. Consequently, revenue from network power battery products rose 18.1% from US$323.4 million for the year ended December 31, 2023 to US$381.9 million for the year ended December 31, 2024. Revenue generated by motive power products growth 18.5% from US$50.4 million for the year ended December 31, 2023 to US$59.8 million for the year ended December 31, 2024, mainly benefiting from the growing demand for electric tricycles and logistics vehicles in Southeast Asia and the Middle East. Revenue from our ESS solutions declined in 2024 compared to 2023, primarily due to new certification requirements for products in the U.S. market, which have since been successfully obtained in 2025.

From a geographic perspective, we have expanded our local sales presence in the EMEA and Americas. Leveraging our deep understanding of international customers, globally recognized brand reputation, rising local market demand, diverse product portfolio, and reliable product quality, we have achieved significant revenue growth from both new and existing customers. Revenue in the EMEA and others increased by 33.9% from US$256.3 million in 2023 to US$343.2 million in 2024. Moreover, revenue in the Americas increased from US$295.5 million in 2023 to US$353.0 million in 2024, representing a 18.3% increase.

***Cost of Revenues***

Our cost of revenues increased by 26.4% from US$592.9 million for the year ended December 31, 2023 to US$749.3 million for the year ended December 31, 2024, in line with our revenue growth. This increase was

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primarily attributable to higher unit product costs driven by the temporary rise in prices of raw materials such as lead, as well as increased shipping costs, which elevated transportation-related manufacturing expenses.

***Gross Profit and Gross Profit Margin***

Our gross profit increased by 18.5% from US$102.1 million in 2023 to US$121.0 million in 2024. The increases were primarily driven by revenue growth, which led to greater economies of scale. Our gross profit margin remained relatively stable at 14.7% in 2023 and 13.9% in 2024.

***Research and Development Expenses***

Our research and development expenses decreased by 48.1% from US$7.7 million for the year ended December 31, 2023 to US$4.0 million for the year ended December 31, 2024, primarily due to an increase in the number of projects that qualified for R&D capitalization.

***Selling and Marketing Expenses***

Our selling and marketing expenses increased by 8.6% from US$25.3 million for the year ended December 31, 2023 to US$27.4 million for the year ended December 31, 2024, primarily due to the expansion of our selling and marketing teams in the Global Market, and in particular, our selling and marketing team in Americas market.

***General and Administrative Expenses***

Our general and administrative expenses increased by 51.3% from US$15.9 million for the year ended December 31, 2023 to US$24.0 million for the year ended December 31, 2024, primarily due to the expansion of our Singapore headquarters, resulting in higher personnel and rental costs. In addition, the listing expenses incurred in 2024 in connection with our spin-off listing also contributed to an increase in the general and administrative expenses.

***Interest Income***

For the year ended December 31, 2023 and 2024, we recorded interest income of US$0.1 million and US$0.1 million, respectively.

***Interest Expense***

Our interest expense increased from US$4.6 million for the year ended December 31, 2023 to US$8.5 million for the year ended December 31, 2024, primarily due to higher working capital needs driven by revenue growth and rising overseas financing costs.

***Foreign Exchange Loss, Net***

Our foreign exchange loss increased from US$1.1 million for the year ended December 31, 2023 to US$4.3 million for the year ended December 31, 2024, primarily due to the appreciation of U.S. dollar in 2024.

***Income Tax Expenses***

Our income tax expenses increased from US$9.1 million in 2023 to US$16.1 million in 2024, primarily due to the phase out of Global Trader Program of Singapore in 2024, which provided favorable tax treatment, and an increase of valuation allowance.

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***Net Income***

As a result of the foregoing, our net income decreased from US$40.3 million for the year ended December 31, 2023 to US$37.2 million for the year ended December 31, 2024.

**Non-GAAP Financial Measures** 

Non-GAAP Adjusted EBITDA and Adjusted EBITDA margin are Non-GAAP financial measures. Their most directly comparable financial measures prepared in accordance with accounting principles generally accepted in the United States ("GAAP") are GAAP net income and GAAP net income margin. GAAP net income margin is defined as GAAP net income divided by revenue. In addition to reporting financial results in accordance with GAAP, we provide Adjusted EBITDA adjusted for certain items, including interest income and expenses, foreign exchange loss, net, depreciation and amortization expense, and income tax expense.

Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenue. We adjust for the items listed above and show non-GAAP financial measures in all periods presented.

We utilize the adjusted results to review our ongoing operations without the effect of these adjustments. We believe the supplemental adjusted results are useful to investors because they help them compare our results to previous periods and provide important insights into underlying trends in the business and how management oversees and optimizes our business operations on a day-to-day basis. We exclude the costs described above in calculating adjusted results to allow us and investors to evaluate the performance of the business based upon its expected ongoing operating structure. We believe the adjusted measures, accompanied by the disclosure of the types of expenses included in these adjustments, provides valuable insight to our financial performance. We also believe Adjusted EBITDA and Adjusted EBITDA margin provide additional useful information to investors due to the various noncash items during the period. Adjusted results should be considered only in conjunction with results reported according to GAAP.

The non-GAAP financial measures are presented for supplemental informational purposes only. They should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended**<br>**December 31,** | **Year Ended**<br>**December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | *(US$ in thousands, except percentage)* | *(US$ in thousands, except percentage)* | *(US$ in thousands, except percentage)* | *(US$ in thousands, except percentage)* |
|  Net income | 40269 | 37214 | 16092 | 18597 |
|  **Non-GAAP adjustments** |  |  |  |  |
|  Income tax expenses | 9072 | 16097 | 8165 | 10849 |
|  Interest income | (130) | (143) | (75) | (89) |
|  Interest expense | 4574 | 8513 | 4927 | 3229 |
|  Foreign exchange loss/(gain), net | 1096 | 4329 | 4715 | (4379) |
|  Depreciation of property and equipment | 6723 | 7573 | 3762 | 5252 |
|  Amortization of intangible assets | 451 | 457 | 334 | 201 |
|  **Total Adjusted EBITDA** | **62055** | **74040** | **37920** | **33660** |
|  Net income margin | 5.8% | 4.3% | 4.0% | 3.8% |
|  **Adjusted EBITDA margin** | **8.9%** | **8.5%** | **9.5%** | **6.9%** |

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**5. B. Liquidity and Capital Resources** 

Our principal sources of liquidity are our cash and cash equivalents and cash generated from operations. Our principal uses of cash in recent periods have been investing in international expansion, purchasing of new property and equipment and new construction for factories. As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents of US$24.1 million. Our cash and cash equivalents consist primarily of cash on deposits with banks.

We believe that our current cash, cash equivalents and cash expected to be generated from operations will be sufficient to meet our working capital needs and fund our committed capital expenditures over the next 12 months from the date of the issuance of the financial statements. We plan to use our current cash on hand, cash generated by operations and additional financing raised through short-term or long-term borrowings to support our core business operations and international expansion, invest in new product development and enhance our global distribution. We may be required to seek additional equity or debt financing to fund our activities. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If we are unable to raise additional capital when desired, the results of operations and financial conditions of the business would be materially and adversely affected. Our liquidity is subject to various risks including the risks identified in "Risk Factors" and market risks identified in "Quantitative and Qualitative Disclosures about Market Risk."

We have lease obligations and other contractual obligations and commitments as part of our ordinary course of business. See "Note 9—Lease," "Note 11—Borrowings" and "Note 14—Commitments and Contingencies" to our combined financial statements found elsewhere in this registration statement for information about our lease obligations and other contractual obligations. We did not have during the periods presented and we do not currently have, any off-balance sheet arrangements involving commitments or obligations, including contingent obligations, arising from arrangements with unconsolidated entities or persons that have or are reasonably likely to have a material current or future effect on our business, financial condition, results of operations, liquidity, cash requirements or capital resources.

**Cash Flows** 

A summary of the sources and uses of cash and cash equivalents is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | $— | $— | $— | $— |
|  | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Six Months Ended<br>June 30,** | **Six Months Ended<br>June 30,** |
|  | **2023** | **2024** | **2024** | **2025** |
|  | | | **(Unaudited)** | **(Unaudited)** |
|  | *(US$ in thousands)* | *(US$ in thousands)* | *(US$ in thousands)* | *(US$ in thousands)* |
|  Net cash provided by/(used in) operating activities | 33292 | (3614) | (73349) | 103786 |
|  Net cash (used in)/provided by | (83786) | (30271) | 20347 | (33557) |
|  Net cash provided by/(used in) financing activities | 60882 | 27397 | 43824 | (67040) |

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***Operating Activities***

Net cash provided by operating activities in the six months ended June 30, 2025 was US$103.8 million. The difference between our net income of US$18.6 million and the net cash used in operating activities in the six months ended June 30, 2025 was primarily the result of (i) an increase in amounts due to related parties of US$82.5 million, and (ii) a decrease in prepayments and other current and non-current assets of US$54.3 million. This was partially offset by (i) an increase in account receivables of US$57.3 million, and (ii) an increase in inventories of US$11.2 million.

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Net cash used in operating activities in the year ended December 31, 2024 was US$3.6 million. The difference between our net income of US$37.2 million and the net cash used in operating activities in the year ended December 31, 2024 was primarily the result of: (i) the decrease in amounts due to related parties of US$30.4 million, (ii) increase in prepayments and other current and non-current assets of US$27.9 million, and (iii) an increase in amounts due from related parties of US$12.4 million. This was partially offset by increases in other payables and accruals of US$8.7 million, tax payable of US$7.8 million, and operating lease liabilities of US$4.1 million.

Net cash provided by operating activities in the year ended December 31, 2023 was US$33.3 million. The difference between our net income of US$40.3 million and the net cash provided by operating activities was primarily the result of: (i) increase in accounts receivable of US$42.6 million, and (ii) increase in inventories of US$34.9 million. This was partially offset by (i) non-cash expenses allocated from the Parent of US$20.2 million, (ii) increase in amounts due to related parties of US$25.2 million, and (iii) decrease in accounts payable of US$14.0 million.

***Investing Activities***

Net cash used in investing activities in the six months ended June 30, 2025 was US$33.6 million, which primarily included (i) loans provided to related parties of US$34.3 million, and (ii) purchase of property and equipment of US$23.1 million. This was partially offset by repayment of loans provided to related parties of US$31.6 million.

Net cash used in investing activities in the year ended December 31, 2024 was US$30.3 million, which primarily included (i) loans provided to related parties of US$94.3 million, and (ii) purchases of property and equipment of US$40.7 million. This was partially offset by repayment of loans provided to related parties of US$106.8 million.

Net cash used in investing activities in the year ended December 31, 2023 was US$83.8 million, which primarily included loans provided to related parties of US$106.6 million, partially offset by repayment of loans provided to related parties of US$39.3 million.

***Financing Activities***

Net cash used in financing activities in the six months ended June 30, 2025 was US$67.0 million, which primarily included (i) repayment of short-term borrowings and long-term borrowings of US$102.7 million, and (ii) repayment of loans borrowed from related parties of US$81.0 million, partially offset by proceeds from short-term and long-term loans of US$116.7 million.

Net cash provided by financing activities in the year ended December 31, 2024 was US$27.4 million, which primarily included (i) proceeds from short-term loans and long-term loans of US$207.9 million, and (ii) loans borrowed from related parties of US$43.0 million, partially offset by repayment of short-term loans and long-term loans of US$208.5 million and repayment of loans borrowed from related parties of US$15.0 million.

Net cash provided by financing activities in the year ended December 31, 2023 was US$60.9 million, which primarily included (i) proceeds from short-term loans and long-term loans of US$215.2 million, and (ii) loans borrowed from related parties of US$53.0 million, partially offset by repayment of short-term loans and long-term loans of US$207.3 million.

**Principal Capital Expenditures** 

Our manufacturing and assembly activities have required and will continue to require significant investment of capital and substantial engineering expenditures. Our capital investments are expected to be funded with cash from operations or other available sources of liquidity.

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As of June 30, 2025, we have six state-of-the-art factories across four countries worldwide, with a total of 30 production lines, and we have three new production plant under construction. We are also expanding our production capacities in the selected countries and regions. These expansion and construction plans were primarily related to the expansion of our lead acid solutions manufacturing capacity. Total capital commitments contracted but not yet reflected in the financial statements amounted to US$12.5 million, US$24.6 million and US$39.4 million as of December 31, 2023, 2024 and June 30, 2025, respectively, primarily related to the future expansion of our manufacturing facilities. These expansion plans are expected to increase our total annual installed capacity to approximately 20.70 GWh, up from the current 7.28 GWh as of June 30, 2025. See Item 4. "Information on the Company—4.B. Business Overview—Production Facilities—Production Bases."

**Material Indebtedness** 

We had total borrowings of US$51.3 million, US$50.9 million and US$65.4 million as of December 31, 2023, 2024 and June 30, 2025 respectively. The following table presents short-term borrowings as of December 31, 2023, 2024 and June 30, 2025. Short-term borrowings include borrowings with total terms shorter than one year and the current portion of the long-term borrowings:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | | **As of December 31,**<br>**2023** | **As of December 31,**<br>**2024** | **As of June 30,<br>2025** |
|  | | **(Audited)**  | **(Audited)**  | **(Unaudited)** |
|  | | ***(US$ in thousands*)** | ***(US$ in thousands*)** | ***(US$ in thousands*)** |
|  **Current** |  |  |  |  |
|  Short-term borrowings: |  |  |  |  |
|  Interest-bearing bank borrowings, secured | (2) | 4779 | 4744 | 5535 |
|  Factoring arrangements | (3) | 20217 | 27703 | 32783 |
|  Interest-bearing bank borrowings, guaranteed | (4) | 23765 | 17032 | 26226 |
|  Current portion of long-term borrowings, secured | (1) | 230 | 230 | 266 |
|  Current portion of long-term borrowings, guaranteed | (4) | 809 | 568 | 123 |
|  **Total current borrowings** |  | **49800** | **50277** | **64933** |
|  **Non-Current** |  |  |  |  |
|  Long-term borrowings: |  |  |  |  |
|  Interest-bearing bank borrowings, secured | (1) | 1011 | 501 | 490 |
|  Interest-bearing bank borrowings, guaranteed | (4) | 531 | 92 |  |
|  **Total non-current borrowings** |  | **1542** | **593** | 490 |
|  **Total borrowings** |  | **51342** | **50870** | **65423** |

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(1) As of December 31, 2023, 2024 and June 30, 2025, we had an outstanding mortgage loan of
US$1.2 million, US$0.7 million and US$0.8 million, respectively, bearing an average interest rate of 5%, and maturing on March 28, 2028. The mortgage loan is secured by an office in Singapore, which have a net carrying amount of
approximately US$2.6 million, US$2.3 million and US$2.1 million as of December 31, 2023, 2024 and June 30, 2025, respectively.

(2) As of December 31, 2023, 2024 and June 30, 2025, we had an outstanding import invoice financing of
US$4.8 million, US$4.7 million and US$5.5 million, respectively, bearing an average interest rate of 8.3%. The loan was secured by the properties in Malaysia, which had a net carrying amount of approximately US$4.8 million,
US$4.8 million and US$4.9 million as of December 30, 2023, 2024 and June 30, 2025, respectively.

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(3) The loans were secured by certain accounts receivable with and amount of US$25.3 million,
US$38.3 million and US$38.4 million as of December 31, 2023, 2024 and June 30, 2025, respectively. The loans were guaranteed by Leoch Technology and its subsidiary.

(4) The loans were guaranteed by Leoch Technology.

Payments for short-term and long-term borrowings are due at the end of their respective maturities. The weighted average interest rate for the outstanding borrowings was approximately 5.45%, 5.25% and 5.15% as of December 31, 2023, 2024 and June 30, 2025, respectively.

Interest expense related to the term loans of US$3.3 million, US$2.8 million, US$1.5 million and US$1.2 million are recognized in "Interest expense" in the combined statements of comprehensive income for the the year ended December 31, 2023, 2024 and for the six months ended June 30, 2024 and 2025, respectively.

The following table sets forth the contractual obligations which has not included impact of discount of time value as of December 31, 2023, 2024 and June 30, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  | **Less than** | | | | | |
|  | **1 year** | **1 –2 years** | **2 –3 years** | **3 –4years** | **4 –5 years** | **Total** |
|  **As of December 31, 2023** |  |  |  |  |  |  |
|  Long-term borrowings and Interest payables | 1092 | 761 | 367 | 249 | 238 | 2707 |
|  **As of December 31, 2024** |  |  |  |  |  |  |
|  Long-term borrowings and Interest payables | 744 | 352 | 249 | 238 |  | 1583 |
|  **As of June 30, 2025** |  |  |  |  |  |  |
|  Long-term borrowings and Interest payables | 389 | 255 | 243 |  |  | 887 |

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**Quantitative and Qualitative Disclosures About Market Risk** 

See "Item 11. Quantitative and Qualitative Disclosures About Market Risk."

**5. C. Research and Development, Patents and Licenses, Etc.** 

Our research and development costs were US$7.7 million, US$4.0 million, US$1.5 million and US$1.7 million in the year ended December 31, 2023, 2024 and for the six months ended June 30, 2024 and 2025, respectively. As described in the "Risk Factors" section and elsewhere in this Form 20-F, government regulations and policies can make developing or marketing new technologies expensive or uncertain due to various restrictions on trade and technology transfers. See "Item 3. Key Information—3.D. Risk Factors." For further information on our research and development policies and additional product information, see "Item 4. Information on Leoch Technology— 4.B. Business Overview."

**5. D. Trend Information** 

Please see "—5.A. Operating Results—Trends and Uncertainties" and "Item 4. Information on Leoch Technology—4.B. Business Overview—Our Markets" for trend information.

**5. E. Critical Accounting Estimates** 

Our significant accounting policies are set out in "Note 2. Summary of Significant Accounting Policies" to our combined financial statements included elsewhere in this Form 20-F, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amount of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities at the date of our audited combined separation financial statements. Actual results may differ from these estimates under different assumptions or conditions.

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Critical accounting policies are those that reflect significant judgments or uncertainties, and which could potentially result in materially different results under different assumptions and conditions. We have described below what we believe are our most critical accounting policies.

There were no other significant changes in our critical accounting estimates during the first half ended June 30, 2025, compared to those described below.

***Expected credit losses***

We estimate an allowance for credit losses in accordance with Accounting Standards Codification ("ASC") 326, Credit Losses ("ASC 326"). We assess credit loss by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on customer type, region and assessed credit risk based on the Group's ongoing credit evaluation and on an individual basis when we identify specific customers with known disputes or collectability issues. We apply a migration roll rate method that considers historical collectability based on past due status, the age of the accounts receivable balances, current economic conditions, and reasonable and supportable forecasts of future economic conditions and other factors that may affect our ability to collect from customers.

***Incremental Borrowing Rate***

We recognize a right-of-use ("ROU") asset at the amount of the lease liabilities adjusted for cumulative prepayments and lease incentives, if any. Lease liability is recognized at the present value of the lease payments over the lease term. Lease expense is recorded on a straight-line basis over the lease term. As our leases do not provide an implicit rate, we estimate the incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. In estimating the incremental borrowing rate, we consider the credit rating, nature of underlying asset, publicly available data of borrowing rates for loans of similar amount, currency and term of the lease.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES** 

**6. A. Directors and Senior Management** 

**Board of Directors** 

We are currently a wholly owned subsidiary of Leoch Technology, and our directors consist of both employees of Leoch Technology and nominee directors. Upon the completion of the spin-off, except for Dr. Li DONG who will act as the non-executive Director of Leoch Technology and the chairman of the board of directors and Chief Executive Officer of Leoch Energy, there will be no overlapping of directors or senior managers between Leoch Technology and Leoch Energy.

The following table sets forth information regarding our executive officers and directors as of the date of this Form 20-F.

---

| | | |
|:---|:---|:---|
| **Directors and Executive Officers** | **Age** | **Position/Title** |
|  Dr. Li DONG | 58 | Chairman and Chief Executive Officer |
|  Dr. Christoph Loch\* | 65 | Independent Director |
|  Jamil Nizam\* | 59 | Independent Director |
|  William McDade\* | 49 | Independent Director |
|  Chonghan FAN | 52 | Chief Financial Officer |
|  Dennis Allen Wetzel | 67 | Chief Technical Officer (Lead Battery) |
|  Da (Robin) LI | 47 | Chief Technical Officer (Smart Energy Solutions and Energy Management System) |

---

\* Each of Dr. Christoph Loch, Jamil Nizam and William McDade has accepted appointment as our director, which will be effective immediately upon the SEC's declaration of effectiveness of our registration statement on Form 20-F.

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**Biographies** 

***Dr. Li DONG, Chairman, Chief Executive Officer***

Dr. Li DONG is our Chairman and Chief Executive Officer and, prior to the separation and spin-off, led the Leoch Technology since April 2010, the date of incorporation of Leoch Technology. Dr. DONG has over 30 years of experience in the battery industry. He had also led Leoch Technology's development and application for over 20 patent rights relating to batteries. Dr. DONG obtained a Doctor of Science from Shanghai University in 2021 and an EMBA degree from National University of Singapore in 2015. Dr. DONG graduated from Xi'an International Studies College, the predecessor of Xi'an International Studies University, in 1990 with a Bachelor of Arts degree and Northwest Textile University of Science and Technology, the predecessor of Xi'an Polytechnic University, in 1988 with a Bachelor's degree in Engineering.

***Dr. Christoph Loch, Independent Director***

Dr. Christoph Loch will serve as our independent director upon the effectiveness of our registration statement on Form 20-F. Dr. Loch is Professor of Operations and Technology Management at IESE Business School in Barcelona. Until 2024, he was Professor at Cambridge Judge Business School (CJBS), where he served as the Director (Dean) of the school from 2011-2021. As an academic, Professor Loch has continued to teach and conduct research. His experience lies in the management of innovation in organizations, project management, and the emotional side of motivation of professional personnel. He was identified as one of the top ten Innovation researchers worldwide in the *Journal of Product Innovation Management* in 2012, and he was identified as one of the top ten researchers worldwide in Operations Management in the journal Decision Sciences in 2020. Since January 2024, he serves as the Editor-in-Chief of the journal Management Science. Dr. Loch obtained his Diplom-Wirtschafts-Ingenieur from Darmstadt Institute of Technology, his MBA degree from University of Tennessee and his Ph.D. from Stanford Graduate School of Business.

***Jamil Nizam, Independent Director***

Mr. Jamil Nizam will serve as our independent director upon the effectiveness of our registration statement on Form 20-F. Mr. Nizam is an accomplished executive and board leader with over 40 years of experience in the electronic components distribution industry. He currently serves as Chairman of Waldom Electronics, where he previously served as Chief Executive Officer. Prior to Waldom, Mr. Nizam spent 13 years at Master Electronics, holding multiple senior leadership positions, including President and Chief Executive Officer, and he continues to serve as a director of Master Electronics. Mr. Nizam holds a bachelor's degree from California State University, Northridge, and has completed the Owner/President Management Program (OPM 50) at Harvard Business School.

***William McDade, Independent Director***

Mr. William McDade will serve as our independent director immediately upon the effectiveness of our registration statement on Form 20-F. Mr. McDade currently serves as Chief Financial Officer of Alphia, one of the largest pet food manufacturers in North America. Prior to joining Alphia, he served for 10 years as Chief Financial Officer and Secretary of Interstate Batteries, the largest battery brand and distributor in North America. Prior to Interstate, McDade spent 15 years with Keurig Dr Pepper, where he held multiple senior leadership positions in both supply chain and finance, and successfully led a five-year transformation program. Mr. McDade obtained his Bachelor's degree in Accounting from University of Texas and holds an MBA from University of Dallas.

***Mr. Chonghan FAN, Chief Financial Officer***

Mr. Chonghan FAN is our Chief Financial Officer. He is a seasoned finance and management executive with a distinguished career spanning corporate leadership, fund management, investment banking and strategy consulting. Previously, he served as the Head of China Fund Management at Golden Vision Capital, where he oversaw strategic investment portfolios in China's dynamic market, and as Chief Executive Officer for the China

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region at Canoo Inc., a NASDAQ-listed electric vehicle pioneer, leading its global capital market activities, as well as regional operation and expansion. Earlier in his career, he held senior roles at J.P. Morgan as General Manager of Western China and Project Leader in the investment banking division, driving high-profile transactions. His expertise was honed during his tenure at Tenneco Inc., where he managed cross-border M&A, and as a Senior Management Consultant at IBM in the United States, advising Fortune 100 clients on operational transformation and excellence. Mr. Chonghan FAN holds an EMBA from Tsinghua University PBC School of Finance, an MBA from Columbia Business School, and dual Bachelor's degrees in Investment Management and International Business from Dongbei University of Finance and Economics.

***Mr. Dennis Allen Wetzel, Chief Technical Officer (Lead Battery)***

Mr. Dennis Wetzel is our Chief Technology Officer responsible for lead battery. Mr. Wetzel has over 40 years of experience in battery technology, manufacturing operations and automotive energy systems.Prior to join us, Mr. Wetzel has held senior engineering, technology, sales and business development roles across leading multinational companies, including Cerence AI, Samsung-Harman and Johnson Controls, where he spent more than 30 years in progressively senior positions supporting global automotive OEM battery and energy system programs. His experience covers automotive and industrial lead-acid batteries (including AGM, flooded and micro-hybrid applications), UPS and telecom energy solutions, as well as advanced battery technologies such as nickel-hydrogen fuel cells, nickel-zinc systems and bipolar battery architectures. Mr. Wetzel holds a Bachelor of Science in Business Administration from Cardinal Stritch University.

***Mr. Da (Robin) LI, Chief Technical Officer (Smart Energy Solutions and Energy Management System)***

Mr. Robin Li is our Chief Technology Officer for Smart Energy Solution and Energy Management System. He is responsible for defining and executing our strategic growth vision for smart energy solution including Lithium & Sodium Ion ESS, UPS battery for AIDC, BMS, IOT remote battery management, and microgrid EMS; leading global R&D, and scaling AI to drive innovation across battery systems and smart energy platform. Boasting more than 20 years of experiences across energy technology, operation technology, information technology, AI and IOT domains, Mr. Li has personally directed major decarbonization and digitalization transformation projects for global leading Fortune 500 companies, private companies and governments. Before joining us, Mr. Li held global business & product management leadership positions at Schneider Electric, IBM, Accenture, etc. Robin holds an MBA from the University of Manchester, an Master of Engineering in Electrical & Computer Engineering from National University of Singapore, and Bachelor of Engineering degree from Huazhong University of Science & Technology.

**6. B. Compensation** 

**Compensation** 

Because we are a newly incorporated entity, we have not previously provided any compensation to our directors or senior management. For further information on the share ownership of our senior management, see "Item 6.E. Share Ownership."

**Employment Agreements and Indemnification Agreements** 

We [have entered into] employment agreements with each of our executive officers. Each of our executive officers is employed for a specified period of time, which can be renewed upon both parties' agreement before the end of the current employment term. We may terminate an executive officer's employment for cause at any time without advance notice in certain events. We may terminate an executive officer's employment by giving a prior written notice or by paying certain compensation. In such case of termination by us, we will provide severance payments to the executive officer as expressly required by applicable law of the jurisdiction where the executive officer is based. An executive officer may terminate his or her employment at any time by giving a prior written notice.

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Each executive officer has agreed to hold, unless expressly consented to by us, at all times during and after the termination of his or her employment agreement, in strict confidence and not to use, any of our confidential information or the confidential information of our customers and suppliers.

We [have entered into] indemnification agreements with each of our directors and executive officers. Under these agreements, we agree to indemnify our directors and executive officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being a director or officer of our company.

**6. C. Board Practices** 

**Board of Directors** 

Upon the completion of the spin-off, our board of directors will consist of four directors, including three independent directors, namely Dr. Christoph Loch, Jamil Nizam and William McDade. A director is not required to hold any shares in our company to qualify to serve as a director. The Corporate Governance Rules of the NASDAQ generally require that a majority of an issuer's board of directors must consist of independent directors. However, the Corporate Governance Rules of the NASDAQ permit foreign private issuers like us to follow "home country practice" in certain corporate governance matters. We will have a board consisting of a majority of independent directors upon the completion of the spin-off. However, we intend to rely on this "home country practice" exception and may not have a majority of independent directors serving on our board of directors in the future if we adjust the size of our board. In addition, Dr. Li DONG will serve as the chairman of our two-members compensation committee and nominating and corporate governance committee.

A director who is in any way, whether directly or indirectly, interested in a contract or transaction proposed or transaction contract with our company is required to declare the nature of his or her interest at a meeting of our directors. A general notice given to the directors by any director to the effect that he or she is a member of any specified company or firm and is to be regarded as interested in any contract or transaction which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made or transaction so consummated. Subject to our post-listing memorandum and articles of association, our company may by ordinary resolution appoint any person to be a director and the board may, by the affirmative vote of a simple majority of the remaining directors present and voting at a board meeting, appoint any person as a director to fill a casual vacancy or as an addition to the existing board. Subject to the rules of NASDAQ and disqualification by the chairman of the relevant board meeting, a director may vote in respect of any contract or transaction or proposed contract or transaction notwithstanding that he/she may be interested therein and if he/ she does so, his/her vote shall be counted and he/she may be counted in the quorum at any meeting of the directors at which any such contract or transaction or proposed contract or transaction shall come before the meeting for consideration. Our board of directors may from time to time at their discretion exercise all of the powers of our company to raise or borrow money and to mortgage or charge its undertaking, property and assets (present and future) and uncalled capital, or any part thereof, and to issue debentures, debenture stock, bonds and other securities, whether outright or as collateral security for any debt, liability or obligation of our company or of any third party. None of our directors has a service contract with us that provides for benefits upon termination of service as a director.

**Committees of the Leoch Energy Board** 

We have established an audit committee, a compensation committee and a nominating and corporate governance committee under our board of directors. We have adopted a charter for each of the three committees. Each committee's members and functions are described below.

***Audit Committee***

Audit Committee. Our audit committee consists of Dr. Christoph Loch, Jamil Nizam and William McDade, and is chaired by William McDade. We have determined that each of Dr. Christoph Loch, Jamil Nizam and William McDade satisfies the requirements of Rule 5605(a)(2) of the Listing Rules of the NASDAQ and meets the independence standards under Rule 10A-3 under the Securities Exchange Act of 1934, as amended. We have

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determined that William McDade qualifies as an "audit committee financial expert." The audit committee oversees our accounting and financial reporting processes and the audits of the financial statements of our company. The audit committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending to our board for approval, the appointment, re-appointment or removal of the independent auditor, after considering its annual performance evaluation of the independent auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the remuneration and terms of engagement of the independent auditor and pre-approving all auditing and non-auditing services permitted to be performed by our independent auditors at least annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• obtaining a written report from our independent auditor describing matters relating to its independence and
quality control procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing with the independent registered public accounting firm any audit problems or difficulties and
management's response;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing with our independent auditor, among other things, the audits of the financial statements, including
whether any material information should be disclosed, issues regarding accounting and auditing principles and practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and approving all proposed related party transactions, as defined in Item 404 of Regulation S-K under the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing and recommending the semi-annually financial data and the annual financial statements to our board for
inclusion in our semi-annually earnings releases and annual reports, respectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discussing the annual audited financial statements with management and the independent registered public
accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing the adequacy and effectiveness of our accounting and internal control policies and procedures and any
special steps taken to monitor and control major financial risk exposures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing and reassessing the adequacy of the committee charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving annual audit plans, and undertaking an annual performance evaluation of the internal audit function;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• establishing and overseeing procedures for the handling of complaints and whistleblowing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• meeting separately and periodically with management and the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• monitoring compliance with our code of business conduct and ethics, including reviewing the adequacy and
effectiveness of our procedures to ensure proper compliance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reporting regularly to the board.

***Compensation Committee***

Our compensation committee consists of Dr. Li DONG and Jamil Nizam and is chaired by Dr. Li DONG. We have determined that Jamil Nizam satisfies the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the NASDAQ. The compensation committee assists the board in reviewing and approving the compensation structure, including all forms of compensation, relating to our directors and executive officers. Our Chief Executive Officer may not be present at any committee meeting during which his compensation is deliberated upon. The compensation committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the development and implementation of compensation programs in consultation with our management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing and approving, or recommending to the board for its approval, the compensation for
our executive officers;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing and recommending to the board for determination with respect to the compensation of
our non-executive directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing periodically and approving any incentive compensation or equity plans, programs or
other similar arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing executive officer and director indemnification and insurance matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing our regulatory compliance with respect to compensation matters, including our policies on restrictions
on compensation plans and loans to directors and executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing and reassessing the adequacy of the committee charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting compensation consultant, legal counsel or other adviser only after taking into consideration all
factors relevant to that person's independence from management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reporting regularly to the board.

***Nominating and Corporate Governance Committee***

Our nominating and corporate governance committee consists of Dr. Li DONG and Dr. Christoph Loch, and is chaired by Dr. Li DONG. We have determined that Dr. Christoph Loch satisfies the "independence" requirements of Rule 5605(a)(2) of the Listing Rules of the NASDAQ. The nominating and corporate governance committee assists the board in selecting individuals qualified to become our directors and in determining the composition of the board and its committees. The nominating and corporate governance committee is responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recommending nominees to the board for election or re-election to the
board, or for appointment to fill any vacancy on the board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reviewing annually with the board the current composition of the board with regards to characteristics such as
independence, knowledge, skills, experience, expertise, diversity and availability of service to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing and recommending to our board such policies and procedures with respect to nomination or appointment
of members of our board and chairs and members of its committees or other corporate governance matters as may be required pursuant to any SEC or NASDAQ rules, or otherwise considered desirable and appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• selecting and recommending to the board the names of directors to serve as members of the audit committee and the
compensation committee, as well as of the nominating and corporate governance committee itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least annually, reviewing and reassessing the adequacy of the committee charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• developing and reviewing at least annually the corporate governance principles adopted by the board and advising
the board with respect to significant developments in the law and practice of corporate governance and our compliance with such laws and practices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• evaluating the performance and effectiveness of the board as a whole.

**Duties and Functions of Directors** 

Under Cayman Islands law, our directors owe fiduciary duties to our company, including a duty of loyalty, a duty to act honestly and a duty to act in what they consider in good faith to be in our best interests. Our directors must also exercise their powers only for a proper purpose. Our directors also owe to our company a duty to exercise the skill they actually possess and such care and diligence that a reasonable prudent person would exercise in comparable circumstances. 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, English and Commonwealth courts have moved towards an objective

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standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands. In fulfilling their duty of care to us, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time. Our company has the right to seek damages if a duty owed by our directors is breached. In limited exceptional circumstances, a shareholder may have the right to seek damages in our name if a duty owed by our directors is breached. The functions and powers of our board of directors include, among others, (i) convening shareholders' annual general meetings and reporting its work to shareholders at such meetings, (ii) declaring dividends (including interim dividends) and other distributions, (iii) appointing officers and determining their terms of offices and responsibilities, (iv) exercising the borrowing powers of our company and mortgaging the property of our company, and (v) approving the transfer of shares of our company, including the registering of such shares in our share register.

**Terms of Directors and Officers** 

Our company may by an ordinary resolution appoint any person to be a director. The board may, by the affirmative vote of a simple majority of the remaining directors present and voting at a board meeting, appoint any person as a director, to fill a casual vacancy on the board.

An appointment of a director may be on terms that the director shall automatically retire from office (unless he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between our company and the director, if any; but no such term shall be implied in the absence of express provision. Each director whose term of office expires shall be eligible for re-election at a meeting of the shareholders or re-appointment by the board.

A director may be removed from office by an ordinary resolution (except with regard to the removal of Dr. Li DONG, who may be removed from office by a special resolution), notwithstanding anything in the articles of association of our company or in any agreement between our company and such director (but without prejudice to any claim for damages under such agreement).

The office of a director shall be vacated if, among other things, the director (i) becomes bankrupt or makes any arrangement or composition with his or her creditors; (ii) dies or is found by our company to be or becomes of unsound mind; (iii) resign his office by notice in writing to our company; or (iv) is removed from office pursuant to any other provision of our articles of association.

**Corporate Governance Differences** 

Certain corporate governance practices in the Cayman Islands, which is our home country, are considerably different than the standards applied to U.S. domestic issuers. NASDAQ Stock Market Rules provide that foreign private issuers are exempt from certain corporate governance requirements of NASDAQ and may follow their home country practices, subject to certain exceptions and requirements to the extent that such exemptions would be contrary to U.S. federal securities laws and regulations. We currently follow our home country practice that: (i) does not require us to disclose any agreements or arrangements of third party director or nominee compensation, (ii) does not require us to solicit proxy and hold meetings of our shareholders every year, (iii) does not require us to make available to shareholders an annual report containing audited financial statements within a reasonable time following our filing of an annual report with the SEC, (iv) does not require that a majority of our board of directors satisfy the "independence" requirements of Rule 5605 of NASDAQ Stock Market Rules, (v) does not require each member of our compensation committee and nominating and corporate governance committee to be an independent director, (vi) does not require that director nominees be either selected or recommended by independent directors, (vii) does not require us to seek shareholder approval prior to the issuance of securities in connection with the acquisition of stock or assets of another company, (viii) does not require us to seek shareholder approval prior to the issuance of securities when the issuance or potential issuance will result in a change of control of Leoch Technology, (ix) does not require us to seek shareholders' approval for amending our share incentive plan, (x) does not require us to obtain shareholder approval for issuing additional

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securities exceeding 20% of our outstanding ordinary shares, and (xi) does not require that voting rights of existing shareholders cannot be disparately reduced or restricted through any corporate action or issuance. In the future, we may rely on other exemptions provided by NASDAQ.

In accordance with NASDAQ Stock Market Rule 5250(d)(1), we will post this Form 20-F and future annual reports on our company website. In addition, we will provide hard copies of our future annual report free of charge to shareholders upon request.

**Code of Conduct and Business Ethics** 

Prior to the spin-off, the Leoch Energy Board will adopt a written Code of Business Conduct and Ethics reinforcing our guiding principles to act with the highest level of integrity and ethical standards and setting forth our expectations regarding personal and corporate conduct for all of our directors, officers, employees and representatives.

**6. D. Employees** 

As of June 30, 2025, we employed a total of 4,769 employees which are classified as follows:

---

| | | |
|:---|:---|:---|
| **Competency** | **Number of<br>Employees** | **Percentage of Total<br>Employees (%)** |
|  Management | 13 | 0.3 |
|  Administration | 101 | 2.1 |
|  Production | 3573 | 74.9 |
|  Sales and marketing | 342 | 7.2 |
|  Research and development | 110 | 2.3 |
|  Others | 630 | 13.2 |
|  Total | 4769 | 100.0 |

---

As of December 31, 2022, 2023 and 2024, our employees totaled 2,167, 2,209 and 4,070, respectively.

We provide our employees and management with on-the-job education, training and other opportunities to improve their skills and knowledge. Newly hired employees generally attend an onboard training program, including an introduction to corporate culture, workplace safety, products and rules of conduct. Every year, all the factory-level management teams submit training proposals for specific training to be carried out. Administrative employees receive specific training relevant to their functions, such as environmental safety, accounting or internal control. For our management, we organize annual seminars and training to further develop their management skills.

We enter into employment agreements with all of our employees, covering, among other things, salaries, benefits, training and workplace safety, confidentiality obligations relating to trade secrets and grounds for termination. Our employees receive the benefits as specified under laws and regulations of applicable jurisdictions, including welfare benefits such as medical care, social security and retirement benefits, as well as other miscellaneous benefits. Employees at our production facilities in Binh Phuoc Province, Vietnam, have formed labor unions. Employees may choose whether to join the union or not.

In 2023, 2024 and the six months ended June 30, 2025, we have not experienced any major labor dispute or other labor disturbances that have interfered with our operations, and our employee relations are favorable.

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**6. E. Share Ownership** 

The following table sets forth information concerning the beneficial ownership of Leoch Technology shares, as of December 16, 2025, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of Leoch Energy's directors and executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known to us to beneficially own more than 5% of Leoch Technology shares.

The calculations in the table below are based on 1,434,993,357 ordinary shares of Leoch Technology issued and outstanding as of December 16, 2025.

Beneficial ownership is determined in accordance with the rules and regulations of the SEC. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, we have included shares that the person has the right to acquire within 60 days, including through the exercise of any option, warrant, or other right or the conversion of any other security.

These shares, however, are not included in the computation of the percentage ownership of any other person.

The following sets forth the total amount of Leoch Technology shares directly or indirectly owned by Leoch Energy's current directors, executive officers and principal shareholders based on 1,434,993,357 Leoch Technology shares outstanding as of December 16, 2025.

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| | | |
|:---|:---|:---|
| **Holder** | **Leoch<br>Technology**<br>**Shares** | **Percentage**<br>**Ownership** |
|  **Directors and Executive Officers** |  |  |
|  Dr. Li DONG<sup>(1)</sup> | 1063847000 | 74.1% |
|  Dr. Christoph Loch\*\* |  |  |
|  Jamil Nizam\*\* |  |  |
|  William McDade\*\* |  |  |
|  Chonghan FAN |  |  |
|  Dennis Wetzel |  |  |
|  Da (Robin) LI |  |  |
|  **All directors and executive officers as a group** | 1063847000 | 74.1% |
|  **Principal Shareholders** |  |  |
|  Master Alliance Investment Limited<sup>(1)</sup> | 1063847000 | 74.1% |
|  Dr. Li DONG<sup>(1)</sup> | 1063847000 | 74.1% |

---

\* Less than 1% 

\*\* Each of Dr. Christoph Loch, Jamil Nizam and William McDade has accepted appointment as our director, which will be effective immediately upon the SEC's declaration of effectiveness of our registration statement on Form 20-F.

(1) Represents 1,063,847,000 ordinary shares of Leoch Technology held by Master Alliance Investment Limited, a
British Virgin Islands company. Master Alliance Investment Limited is wholly owned by Dr. Li DONG. The registered address of Master Alliance Investment Limited is Vistra Corporate Services Center, Wickhams Cay II, Road Town, Tortola, VG1110,
British Virgin Islands.

All of the Leoch Energy shares are currently held by Leoch Technology. In the spin-off, each Leoch Technology shareholder will receive one Leoch Energy share for every fifty (50) Leoch Technology shares they held as of the Record Date for the distribution. Accordingly, following the spin-off, each director, executive officer and principal shareholders would own the following number of Leoch Energy shares.

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| | | |
|:---|:---|:---|
| **Holder** | **Leoch<br>Technology**<br>**Shares** | **Percentage**<br>**Ownership** |
|  **Directors and Executive Officers** |  |  |
|  Dr. Li DONG | 1063847000 | 74.1% |
|  Dr. Christoph Loch\*\* |  |  |
|  Jamil Nizam\*\* |  |  |
|  William McDade\*\* |  |  |
|  Chonghan FAN |  |  |
|  Dennis Wetzel |  |  |
|  Da (Robin) LI |  |  |
|  **All directors and executive officers as a group** | 1063847000 | 74.1% |
|  **Principal Shareholders** |  |  |
|  Master Alliance Investment Limited | 1063847000 | 74.1% |
|  Dr. Li DONG | 1063847000 | 74.1% |

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\* Less than 1% 

\*\* Each of Dr. Christoph Loch, Jamil Nizam and William McDade has accepted appointment as our director, which will be effective immediately upon the SEC's declaration of effectiveness of our registration statement on Form 20-F.

To the extent our directors, officers and employees own Leoch Technology shares as of the close of business on the Record Date, they will participate in the spin-off on the same terms as other holders of Leoch Technology shares.

Except as otherwise noted, each person or entity identified above (including nominees) has sole voting and investment or dispositive power with respect to the securities they hold. Leoch Technology's major shareholders do not have different voting rights from other shareholders.

Prior to the spin-off, 100% of our issued share capital is owned by Leoch Technology.

As of December 16, 2025, based on the Leoch Technology share register and excluding treasury shares, if any, less than 2% of our outstanding shares are expected to be held of record by residents of the United States immediately following the spin-off.

We are not aware of any arrangement that may, at a subsequent date, result in a change of our control.

**6. F. Disclosure of A Registrant's Action to Recover Erroneously Awarded Compensation** 

Not Applicable.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS** 

**7. A. Major Shareholders** 

Please refer to "Item 6. Directors, Senior Management and Employees — E. Share Ownership."

**7. B. Related Party Transactions** 

In addition to the director and executive officer compensation arrangements discussed above in "Item 6.B. Compensation," this section describes each transaction or series of related transactions since January 1, 2022, and each currently proposed transaction in which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we are, were or will be a participant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of our directors, executive officers or beneficial owners of more than 5% of any class of our share capital,
or any members of the immediate family of or any entity affiliated with any such person, had or will have a direct or indirect material interest.

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**Related Party Transactions with Leoch Technology** 

Prior to the separation, we have operated as part of Leoch Technology's broader corporate organization rather than as a stand-alone public company and we have engaged in various transactions with Leoch Technology entities. Following the separation, we intend to continue certain relationships with Leoch Technology entities. Our arrangements with Leoch Technology entities and/or other related persons or entities as of the separation are described below.

**Purchases of Raw Materials and Sales of Products** 

In the years ended December 31, 2023, 2024 and the six months ended June 30, 2024 and 2025, our sales of products to related companies controlled by Dr. Li DONG, our chairman and chief executive officer, and Leoch Technology group amounted to US$4.8 million, US$16.1 million US$2.6 million and US$13.4 million, respectively.

In the years ended December 31, 2023, 2024 and the six months ended June 30, 2024 and 2025, our purchases of raw material from Leoch Technology group amounted to US$381.6 million, US$476.9 million US$237.5 million and US$275.8 million, respectively. The transaction amount for our procurement of finished battery products, semi-finished products and equipment from Leoch Technology group is expected to decrease.

**Loans and Receivables** 

As of December 31, 2023, 2024 and June 30, 2025, the outstanding amount of non-trade interest-free loans provided by Leoch Energy to Leoch Technology was US$181.0 million, US$168.5 million and US$16.1 million, respectively; and the outstanding amounts due from products sold to Leoch Technology group was US$5.6 million, US$16.7 million and US$25.1 million, respectively.

As of December 31, 2023, 2024 and June 30, 2025, the amounts due from companies owned by Dr. Li DONG, our chairman and chief executive officer, for products sold was US$0.8 million, US$2.8 million and US$2.6 million, respectively.

As of December 31, 2023, 2024 and June 30, 2025, the amounts due to Leoch Technology group include (a) US$302.6 million, US$273.3 million and US$375.1 million, respectively, from trade payables due to Leoch Technology group (b) US$53.0 million, US$81.0 million and US$81.0 million, respectively, from interest-free repayments due to Leoch Technology group from allocation of bank loan facility by Leoch Technology group.

**Agreements Between Leoch Technology and Us** 

Following the spin-off, we and Leoch Technology will operate separately, each as an independent public company. We intend to enter into a Separation and Distribution Agreement with Leoch Technology related to the separation and distribution, and we intend to enter into several other agreements with Leoch Technology prior to completion of the spin-off to effect the separation and provide a framework for our relationship with Leoch Technology after the spin-off. These agreements will govern the relationships between Leoch Technology and us subsequent to the completion of the spin-off and will provide for the separation of the assets, employees, liabilities and obligations (including investments, property and employee benefits and tax liabilities) of Leoch Technology and its subsidiaries that constitute the Leoch Energy Business and are attributable to periods prior to, at and after the separation. In addition to the Separation and Distribution Agreement (which contains many of the key provisions related to our separation from Leoch Technology and the distribution of our shares to holders of Leoch Technology shares), these agreements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a Brand Licensing Framework Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a Product Procurement Framework Agreement

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The material agreements described below have been filed as exhibits to this Form 20-F and the summaries below set forth the terms of the agreements that we believe are material. These summaries are qualified in their entireties by reference to the full text of the applicable agreements, which are incorporated by reference into this Form 20-F.

The terms of the agreements described below that will be in effect following the spin-off have not yet been finalized. Changes to these agreements, some of which may be material, may be made prior to the spin-off.

In addition, we intend to enter into other agreements with Leoch Technology prior to the completion of the spin-off that are not material to our business. These agreements include agreements relating to information sharing and access rights, data transfer, confidentiality and systems access, transfer of marketing authorizations, certain manufacturing quality control matters, certain leases to Leoch Technology and certain transitional distribution and other services matters, including shared premises services, as well as a third party claims and investigations management agreement. Certain terms of the third party claims and investigations management agreement are also summarized below.

***Separation and Distribution Agreement***

We intend to enter into a Separation and Distribution Agreement with Leoch Technology. The Separation and Distribution Agreement will set forth our agreements with Leoch Technology regarding the principal actions to be taken in connection with the separation and the distribution. It will also set forth other agreements that govern certain aspects of our relationship with Leoch Technology following the separation.

*Transfer of Assets and Assumption of Liabilities*

The Separation and Distribution Agreement will identify assets to be transferred, liabilities to be assumed and contracts to be assigned to each of Leoch Technology and us as part of the separation, and will describe when and how these transfers, assumptions and assignments will occur. Some of these transfers, assumptions and assignments may occur prior to the parties' entering into the Separation and Distribution Agreement. The Separation and Distribution Agreement will provide for those transfers of assets and assumptions of liabilities that are necessary in connection with the separation so that we and Leoch Technology retain the assets necessary to operate our respective businesses and retain or assume the liabilities allocated in accordance with the separation. The Separation and Distribution Agreement will also provide for the settlement or extinguishment of certain liabilities and other obligations between us and Leoch Technology. In particular, the Separation and Distribution Agreement will provide that, subject to the terms and conditions contained in the Separation and Distribution Agreement:

"Leoch Energy Assets" (as defined in the Separation and Distribution Agreement), including, but not limited to, the equity interests of our subsidiaries and assets primarily (or in the case of intellectual property, exclusively) relating to the Leoch Energy Business, will be retained by or transferred to us or one of our subsidiaries, except as set forth in the Separation and Distribution Agreement or one of the other agreements described herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "Leoch Energy Liabilities" (as defined in the Separation and Distribution Agreement), including, but
not limited to, the following will be retained by or transferred to us or one of our subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of the liabilities (whether accrued, contingent or otherwise, and subject to certain exceptions) to the
extent related to, arising out of or resulting from the Leoch Energy Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities (whether accrued, contingent or otherwise) relating to, arising out of, or resulting from, any
infringement, misappropriation or other violation of any intellectual property of any other person related to the conduct of the Leoch Energy Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any product liability claims or other claims of third parties to the extent relating to, arising out of or
resulting from any product developed, manufactured, marketed, distributed, leased or sold by the Leoch Energy Business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities relating to, arising out of, or resulting from any indebtedness of any subsidiary of ours or any
indebtedness secured exclusively by any of Leoch Energy Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from any form,
registration statement, schedule or similar disclosure document filed or furnished with the SEC, to the extent the liability arising therefrom related to matters related to the Leoch Energy Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other liabilities (whether accrued, contingent or otherwise) relating to, arising out of or resulting from
disclosure documents filed or furnished with the SEC that are related to the separation (including this Form 20-F).

All assets and liabilities (whether accrued, contingent or otherwise) of Leoch Technology will be retained by or transferred to Leoch Technology or one of its subsidiaries (other than us or one of our subsidiaries), except as set forth in the Separation and Distribution Agreement or one of the other agreements described below and except for other limited exceptions that will result in us retaining or assuming certain other specified liabilities.

Except as expressly set forth in the Separation and Distribution Agreement or any ancillary agreement, all assets will be transferred on an "as is," "where is" basis and the respective transferees will bear the economic and legal risks that any conveyance will prove to be insufficient to vest in the transferee good title, free and clear of any security interest, that any necessary consents or governmental approvals are not obtained and that any requirements of laws or judgments are not complied with. In general, neither we nor Leoch Technology will make any representations or warranties regarding any assets or liabilities transferred or assumed, any consents or approvals that may be required in connection with such transfers or assumptions or any other matters.

Certain of the liabilities and obligations to be assumed by one party or for which one party will have an indemnification obligation under the Separation and Distribution Agreement and any ancillary agreements are, and following the separation may continue to be, the legal or contractual liabilities or obligations of another party. Each such party that continues to be subject to such legal or contractual liability or obligation will rely on the applicable party that assumed the liability or obligation or the applicable party that undertook an indemnification obligation with respect to the liability or obligation, as applicable, under the Separation and Distribution Agreement, to satisfy the performance and payment obligations or indemnification obligations with respect to such legal or contractual liability or obligation.

*Further Assurances; Separation of Guarantees*

To the extent that any transfers of assets or assumptions of liabilities contemplated by the Separation and Distribution Agreement have not been consummated on or prior to the date of the distribution, the parties will agree to cooperate with each other to effect such transfers or assumptions while holding such assets or liabilities for the benefit of the appropriate party so that all the benefits and burdens relating to such asset or liability inure to the party entitled to receive or assume such asset or liability. Each party will agree to use commercially reasonable efforts to take or to cause to be taken all actions, and to do, or to cause to be done, all things reasonably necessary under applicable law or contractual obligations to consummate and make effective the transactions contemplated by the Separation and Distribution Agreement and other transaction agreements. Additionally, we and Leoch Technology will use commercially reasonable efforts to remove us and our subsidiaries as a guarantor of liabilities retained by Leoch Technology and its subsidiaries and to remove Leoch Technology and its subsidiaries as a guarantor of liabilities to be assumed by us.

*Treatment of Certain Contracts*

Certain contracts are to be assigned, novated, amended or cloned to facilitate the separation of our business from Leoch Technology. If such contracts may not be assigned, novated, amended or cloned, the parties are required to take reasonable actions to cause the appropriate party to receive the benefit of the contract for a specified period of time after the separation is complete.

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*Release of Claims and Indemnification*

Except as otherwise provided in the Separation and Distribution Agreement or any ancillary agreement, each party will release and forever discharge the other party and its subsidiaries and affiliates from all liabilities existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the separation. The releases will not extend to obligations or liabilities under any agreements between the parties that remain in effect following the separation pursuant to the Separation and Distribution Agreement or any ancillary agreement. These releases will be subject to certain exceptions set forth in the Separation and Distribution Agreement.

The Separation and Distribution Agreement will provide for cross-indemnities that, except as otherwise provided in the Separation and Distribution Agreement, are principally designed to place financial responsibility for the obligations and liabilities allocated to us under the Separation and Distribution Agreement with us and financial responsibility for the obligations and liabilities allocated to Leoch Technology under the Separation and Distribution Agreement. Specifically, each party will indemnify, defend and hold harmless the other party, its affiliates and subsidiaries and each of its officers, directors, employees and agents for any losses arising out of or due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the liabilities or alleged liabilities the indemnifying party assumed or retained pursuant to the Separation and
Distribution Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the assets the indemnifying party assumed or retained pursuant the Separation and Distribution Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operation of the indemnifying party's business, whether prior to, at, or after the distribution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any breach by the indemnifying party of any provision of the Separation and Distribution Agreement or any
ancillary agreement unless such other agreement expressly provides for separate indemnification therein.

Each party's aforementioned indemnification obligations will be uncapped; provided that the amount of each party's indemnification obligations will be subject to reduction by any insurance proceeds (net of premium increases) received by the party being indemnified. The Separation and Distribution Agreement will also specify procedures with respect to claims subject to indemnification and related matters.

*Insurance* 

Following the separation, we will continue to maintain at our own cost our own insurance coverage.

*Additional Covenants* 

We and Leoch Technology have both agreed to comply with the following additional covenants until the date on which the distribution occurs (except with respect to the third covenant listed below, which the parties have agreed to comply with until the expiration of the term of the Brand License Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent that either party is a party to any contracts that provide that certain actions or inactions of its
affiliates may result in our being in breach of such contracts, such party may not take any actions that reasonably could result in it being in breach of such contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• without the other party's prior written consent, no member of a party shall enter into any contract that
binds or imposes any liabilities on any member (or any director, officer or employee of any member) of its group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each party is required to take certain actions to comply with anti-corruption law.

*Dispute Resolution*

If a dispute arises between us and Leoch Technology under the Separation and Distribution Agreement, the counsels of the parties and such other representatives as the parties may designate will negotiate to resolve any

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disputes for a reasonable period of time. If the parties are unable to resolve the dispute in this manner then, unless otherwise agreed by the parties and except as otherwise set forth in the Separation and Distribution Agreement, the dispute will be resolved through binding confidential arbitration.

*Term/Termination*

The Separation and Distribution Agreement may be terminated at any time prior to the distribution by Leoch Technology in its sole discretion, and at any time after the distribution by an agreement in writing signed by us and Leoch Technology.

*Treatment of Intercompany Loans and Advances*

Upon the completion of the separation, all loans and advances between Leoch Technology or any subsidiary of Leoch Technology (other than us and our subsidiaries), on the one hand, and us or any of our subsidiaries, on the other hand, will be terminated other than certain loans and advances that are scheduled to the Separation and Distribution Agreement to remain outstanding following the separation.

*Other Matters Governed by the Separation and Distribution Agreement*

Other matters governed by the Separation and Distribution Agreement include, but are not limited to, confidentiality and access to and provision of records and treatment of outstanding guarantees and similar credit support.

*Conditions*

The Separation and Distribution Agreement will also provide that the following conditions must be satisfied or waived by Leoch Technology, in its sole and absolute discretion after consulting in good faith with us and after reasonably considering our views (which we shall promptly provide in good faith), before the separation can occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Leoch Technology Board shall have authorized and approved the distribution and not withdrawn such
authorization and approval, and shall have declared the dividend of our ordinary shares to Leoch Technology Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Technology shall have obtained the approval of the distribution by its shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Separation and Distribution Agreement and the ancillary agreements contemplated by the Separation and
Distribution Agreement shall have been executed by each party to those agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the internal reorganization contemplated by the Separation and Distribution Agreement shall have been completed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the SEC shall have declared effective our registration statement on this Form 20-F, and no stop order suspending the effectiveness of our registration statement shall be in effect and no proceedings for that purpose shall be pending before, or threatened by, the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no order, injunction or decree issued by any governmental authority of competent jurisdiction or other legal
restraint or prohibition preventing consummation of the distribution shall be in effect, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no other event outside the control of Leoch Technology shall have occurred or failed to occur that prevents the
consummation of the distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• NASDAQ shall have approved our listing application, subject to official notice of issuance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all necessary actions and filings with regard to applicable state securities or "blue sky" laws shall
have been taken.

The foregoing description of the Separation and Distribution Agreement is subject to and qualified in its entirety by reference to the full text of the Separation and Distribution Agreement, which is filed as Exhibit 2.2 to this registration statement.

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***Brand Licensing Agreement***

It is expected that Leoch Technology and Leoch Energy will enter into a brand licensing framework agreement (the "Brand Licensing Framework Agreement"), pursuant to which Leoch Technology will grant to Leoch Energy the exclusive rights to develop, produce, and sell products under the Licensing Brands in the Global Markets. The initial term of the Brand Licensing Framework Agreement is expected to be three years, subject to renewal upon parties' agreement.

The licensing arrangements will enable Leoch Energy to obtain exclusive rights, and would allow it to use the Licensing Brands to develop its business and reputation through distributing products in the Global Markets.

*Principal terms of the Brand Licensing Framework Agreement:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Technology to license the Licensing Brands to Leoch Energy for its sales of products exclusively in the
Global Markets; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Leoch Energy to exclusively promote and distribute products under the Licensing Brands (i.e., sales, marketing
and distribution) in the Global Markets, and pay license royalties to Leoch Technology.

*Pricing term:*

The license royalty under the Brand Licensing Framework Agreement will be determined among the respective parties from time to time on an arm's length basis.

The royalties under the Brand Licensing Framework Agreement to be paid by Leoch Energy to Leoch Technology is currently expected to be RMB6,000,000 per annum which is subject to adjustments from time to time upon arm's length negotiations between Leoch Energy and Leoch Technology, and have made reference to (a) the positioning of the relevant products under the Licensing Brands in the end-market, (b) the duration such products have been present in the relevant market and the product introduction strategy, and (c) such other factors as Leoch Technology and Leoch Energy may deem relevant.

***Product Procurement Framework Agreement***

It is expected that Leoch Energy and Leoch Technology will enter into a product procurement framework agreement (the "Product Procurement Framework Agreement") with an initial term of three years, pursuant to which Leoch Technology would manufacture and provide finished battery products to Leoch Energy for its further sales in the Global Markets, and charge the purchase amount plus a mark-up rate.

*Pricing terms:* 

Leoch Energy will pay to Leoch Technology purchase fees, being the cost amount of Leoch Technology with a mark-up rate. Such mark-up rate for the purchase fees under the Product Procurement Framework Agreement shall be determined by Leoch Technology and Leoch Energy on an arm's length basis, with reference to (i) the ascribed mark-up rates as reflected in the financials of Leoch Energy (which have been prepared on a pro forma basis as if Leoch Energy has been separated from Leoch Technology throughout the financial years of 2021 to 2024) for the purchase of battery products from Leoch Technology; (ii) the cost and expense for Leoch Technology for manufacturing these products; and (iii) the price at which the same type of products is sold by Leoch Technology to independent third parties on normal commercial terms in the ordinary course of business in the PRC, or on terms which are of no less favourable to Leoch Technology than terms available to other independent third parties who are willing to order similar quantity under similar conditions.

It is submitted that the pricing terms under the Product Procurement Framework Agreement are fair and reasonable to both Leoch Technology and Leoch Energy.

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In 2023, 2024 and the six months ended June 30, 2024 and 2025, the transaction amount for Leoch Energy's procurement of raw material from Leoch Technology were US$381.6 million, US$476.9 million, US$237.5 million and US$275.8 million, respectively.

The Product Procurement Framework Agreement is expected to be entered into as a transitional arrangement between Leoch Technology and Leoch Energy upon completion of the proposed spin-off. Whilst there will be such on-going continuing connected transactions between Leoch Energy and Leoch Technology with respect to the procurement of products from Leoch Technology, Leoch Energy will gradually establish its own manufacturing base and expand production capacity for the production of its products. Therefore, it is expected that the transaction amounts under the Product Procurement Framework Agreement will decrease progressively in the near future.

**7. C. Interests of Experts and Counsel** 

Not Applicable.

**ITEM 8. FINANCIAL INFORMATION** 

**8. A. Combined Statements and Other Financial Information** 

Please refer to pages F-1 through F-30 of this Form 20-F.

**Legal Proceedings** 

From time to time, we may be involved in various legal proceedings arising from the ordinary course of business activities. We are not presently a party to any litigation the outcome of which we believe, if determined adversely to us, would individually or taken together have a material adverse effect on our business, financial condition and results of operations.

In addition, under the Separation and Distribution Agreement to be entered into with Leoch Technology in connection with the spin-off, Leoch Technology has agreed to indemnify us for certain litigation claims to which certain of our subsidiaries are named the defendant or party.

**8. B. Significant Changes** 

A discussion of significant changes in our business can be found under Item 4.A. "Information on Leoch Technology—History and Development of Leoch Technology," Item 4.B. "Information on Leoch Technology—Business Overview" and Item 5.A. "Operating and Financial Review and Prospects—Results of Operations."

**ITEM 9. THE OFFER AND LISTING** 

**9. A. Offer and Listing Details** 

We are distributing our ordinary shares, par value $0.000005 per share. Our shares do not have any price history.

**9. B. Plan of Distribution** 

Not Applicable.

**9. C. Markets** 

It is expected that our shares will be listed for trading on the NASDAQ under the symbol "EMS" and the ISIN code KYG546471056 and CUSIP code G54647105.

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**9. D. Selling Shareholders** 

Not Applicable.

**9. E. Dilution** 

Not Applicable.

**9. F. Expenses of the Issue** 

Not Applicable.

**ITEM 10. ADDITIONAL INFORMATION** 

**10. A. Share Capital** 

As of the date of this Form 20-F, our authorized share capital is US$50,000 divided into 10,000,000,000 ordinary shares of par value of US$0.000005 each. Upon consummation of the spin-off, we will have approximately 28,699,867 ordinary shares of par value US$0.000005 each issued and outstanding based on 1,434,993,357 ordinary shares of Leoch Technology issued and outstanding as of December 16, 2025. No additional shares will be issued in connection with this registration statement. Such amount does not give effect to any shares to be issued pursuant to the physical delivery forward transaction or Dilution Protection Agreements.

For the purposes of this section, references to "shareholders" means those shareholders whose names and number of shares are entered in our register of members. Only persons who are registered in our register of members are recognized under Cayman Islands law as shareholders of our company. As a result, only registered shareholders have legal standing to institute shareholder actions against us or otherwise seek to enforce their rights as shareholders.

Upon consummation of the spin-off, we will have only one class of shares issued and outstanding, which will have identical rights in all respects and rank equally with one another.

All shares presently issued are fully paid and existing shareholders are not subject to any calls on shares.

For further information on our shares, see "Item 10.B. Memorandum and Articles of Association."

**10. B. Memorandum and Articles of Association** 

We are a Cayman Islands exempted company and our corporate affairs are governed by our memorandum and articles of association, as amended and restated from time to time, and Companies Act (Revised) of the Cayman Islands (the "Companies Act"), and the common law of the Cayman Islands.

We plan to adopt an amended and restated memorandum and articles of association (the "Post-Listing M&AA"), which will become effective and replace the current effective memorandum and articles of association in its entirety immediately prior to completion of the spin-off. Our authorized share capital immediately prior to completion of the spin-off will be US$50,000 divided into 10,000,000,000 ordinary shares of a par value of US$0.000005 each.

The following are summaries of material provisions of our Post-Listing M&AA and the Companies Act insofar as they relate to the material terms of our ordinary shares that we expect will become effective immediately prior to the completion of the spin-off.

**Registered Office and Objects** 

Our registered office in the Cayman Islands is at the offices of Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbor Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands, or at such other location as the Directors may from time to time determine.

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The objects for which the our company is established are unrestricted and we 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.

**Board of Directors** 

See "Item 6 Directors, Senior Management and Employees."

**Ordinary shares** 

***General.*** Our authorized share capital immediately prior to completion of the spin-off will be US$50,000 divided into 10,000,000,000 ordinary shares of a par value of US$0.000005 each. All of our issued and outstanding ordinary shares are fully paid and non-assessable. Certificates representing the ordinary shares are issued in registered form. We may not issue share to bearer. Our shareholders who are nonresidents of the Cayman Islands may freely hold, transfer and vote their ordinary shares.

***Dividends.*** Subject to any rights and restrictions for the time being attached to any shares, the directors may from time to time declare dividends (including interim dividends) and other distributions on shares in issue and authorise payment of the same out of the funds of our company lawfully available therefor. Subject to any rights and restrictions for the time being attached to any shares, our company by an ordinary resolution may declare dividends, but no dividend shall exceed the amount recommended by the directors. In either case, all dividends are subject to certain restrictions under Cayman Islands law, namely that our company may only pay dividends out of profits or share premium account, and provided always 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.

***Voting Rights.*** Subject to any rights and restrictions for the time being attached to any share, on a poll every shareholder present at the meeting shall have one (1) vote for each share of which such shareholder is the holder. At any general meeting a resolution put to the vote of the meeting shall be decided by a poll. A poll shall be taken in such manner as the chairman of the meeting directs, and the result of the poll shall be deemed to be the resolution of the meeting.

One or more shareholders holding shares which carry in aggregate (or representing by proxy) not less than one-third (1/3) of all votes attaching to all shares in issue and entitled to vote at such general meeting, present at the meeting, shall be a quorum for all purposes. As a Cayman Islands exempted company, we are not obliged by the Companies Act to call shareholders' annual general meetings. Our Post-Listing M&AA provide that we may (but are not obliged to) in each calendar year hold a general meeting as our annual general meeting in which case we will specify the meeting as such in the notices calling it, and the annual general meeting will be held at such time and place as may be determined by our board of directors. We plan to rely on "home-country exemption" provided under the Listing Rules of the NASDAQ Global Market and do not intend to hold an annual shareholders' meeting during each fiscal year. All general meetings, other than an annual general meetings, shall be called an extraordinary general meetings. The chairman or the directors (acting by a resolution of the board) may call general meetings, and they shall on a shareholders' requisition forthwith proceed to convene an extraordinary general meeting of our company. A shareholders' requisition is a requisition of shareholders holding at the date of deposit of the requisition shares which carry in aggregate not less than one-third (1/3) of all votes attaching to all the issued and outstanding Shares that as at the date of the deposit carry the right to vote at general meetings of our company. At least seven (7) calendar days' notice shall be given for any general meeting in accordance with our Post-Listing M&AA.

An ordinary resolution to be passed at a meeting by the shareholders requires the affirmative vote of a simple majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy or, in the case of corporations, by their duly authorised representatives, at a general meeting of our company, while a special resolution also requires the affirmative vote of no less than two-thirds of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by

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proxy or, in the case of corporations, by their duly authorised representatives, at a general meeting of our company of which notice specifying the intention to propose the resolution as a special resolution has been duly given. A special resolution will be required for important matters such as a change of name or making changes to our Post-Listing M&AA.

***Transfer of Ordinary Shares.*** Subject to the restrictions in our Post-Listing M&AA as set out below, any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or any other form approved by our board of directors.

Our board of directors may, in their absolute discretion, decline to register any transfer of shares which is not fully paid up or on which our company has a lien. Our board of directors may also decline to register any transfer of any Ordinary Share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is lodged with us, accompanied by the certificate for the ordinary shares to which it
relates and such other evidence as our board of directors may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is in respect of only one class of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a transfer to joint holders, the number of joint holders to whom the Ordinary Share is to be
transferred does not exceed four; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a fee of such maximum sum as the NASDAQ may determine to be payable or such lesser sum as our directors may from
time to time require is paid to us in respect thereof.

If our directors refuse to register a transfer, they shall, within three calendar months after the date on which the instrument of transfer was lodged with us, send to each of the transferor and the transferee notice of such refusal.

The registration of transfers may, on ten (10) calendar days' notice being given by advertisement in such one or more newspapers, by electronic means or by any other means in accordance with the rules of NASDAQ, be suspended and the register closed at such times and for such periods as our board of directors may from time to time determine, *provided*, always that the registration of transfers shall not be suspended nor the register closed for more than 30 calendar days in any calendar year.

***Liquidation.*** If our 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 our company for unpaid calls or otherwise.

***Calls on Ordinary Shares and Forfeiture of Shares.*** Our board of directors may from time to time make calls upon shareholders for any amounts unpaid on their shares in a notice served to such shareholders at least 14 calendar clear days prior to the specified time or times of payment. The shares that have been called upon and remain unpaid are subject to forfeiture.

***Redemption, Repurchase and Surrender of Shares.*** We may issue shares on terms that such shares are subject to redemption, at our option or at the option of the holders thereof, on such terms and in such manner as may be determined, before the issue of such shares, by our board of directors or by an ordinary resolution of our shareholders. Our company may also repurchase any of our shares provided that the manner and terms of such

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purchase have been approved by our board of directors or by an ordinary resolution of our shareholders, or are otherwise authorized by our articles of association. Under the Companies Act, the redemption or repurchase of any share may be paid out of our company's profits or out of the proceeds of a fresh issue of shares made for the purpose of such redemption or repurchase, or out of capital (including share premium account and capital redemption reserve) if we can, immediately following the date on which the payment is proposed to be made, pay our debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding, or (c) if the company has commenced liquidation. In addition, our company may accept the surrender of any fully paid share for no consideration.

***Variations of Rights of Shares.*** Whenever the capital of our company is divided into different classes the rights attached to any such class may, subject to any rights or restrictions for the time being attached to any class, only be materially adversely varied with the consent in writing of the holders of at least two-thirds of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class.

The rights conferred upon the holders of the shares of any class issued with preferred or other rights shall not, subject to any rights or restrictions for the time being attached to the shares of that class, be deemed to be materially adversely varied by, inter alia, the creation, allotment or issue of further shares ranking pari passu with or subsequent to them or the redemption or purchase of any shares of any class by our company. The rights of the holders of shares shall not be deemed to be materially adversely varied by the creation or issue of shares with preferred or other rights including, without limitation, the creation of shares with enhanced or weighted voting rights.

***Inspection of Books and Records.*** Holders of our ordinary shares have no general right under Cayman Islands law to inspect or obtain copies of our list of shareholders or our corporate records (other than copies of our memorandum and articles of association and register of mortgages and charges, and any special resolutions passed by our shareholders). Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of Companies in the Cayman Islands. However, we will provide our shareholders with annual audited financial statements.

***Issuance of Additional Shares.*** Our Post-Listing M&AA authorizes our board of directors to issue additional ordinary shares from time to time as our board of directors shall determine, to the extent of available authorized but unissued shares.

Our Post-Listing M&AA also provide that our directors may issue from time to time, out of the authorised share capital of our company (other than the authorised but unissued shares), series of preferred shares in their absolute discretion and without approval of the shareholders; provided, however, before any preferred shares of any such series are issued, the directors shall by resolution of directors determine, with respect to any series of preferred shares, the terms and rights of that series.

***Anti-Takeover Provisions.*** Some provisions of our Post-Listing M&AA may discourage, delay or prevent a change of control of our company or management that shareholders may consider favorable, including provisions that authorize our board of directors to issue preferred shares in one or more series and to determine the terms and rights of such preferred shares without approval by our shareholders.

***Changes in Capital.*** We may by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• increase the share capital by new shares of such amount as we think expedient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consolidate and divide all or any of our share capital into shares of a larger amount than our existing shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sub-divide our existing shares, or any of them into shares of an amount
smaller than that fixed by our memorandum of association, provided that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced share shall be the same as it was in case of the share from which the
reduced share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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 and diminish the amount of our share capital by the amount of the shares so canceled.

We may by special resolution, reduce our share capital or any capital redemption reserve in any manner authorised by the Companies Act.

***Exempted Company.*** We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except that an exempted company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to file an annual return of its shareholders with the Registrar of Companies in the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is not required to open its register of members for inspection;

&nbsp;&nbsp;&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;&nbsp;&nbsp;• may issue shares with no par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for
30 years in the first instance);

&nbsp;&nbsp;&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;&nbsp;&nbsp;• may register as a limited duration company; and

&nbsp;&nbsp;&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.

***Register of Members.*** Under the Companies Act, we must keep a register of members and there should be entered therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the names and addresses of our members, and a statement of the shares held by each member, which shall include:
(i) the amount paid or agreed to be considered as paid on the shares of each member, (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 memorandum and articles of association, and if so, whether such voting rights are conditional;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which the name of any person was entered on the register as a member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which any person ceased to be a member.

Under the 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 member registered in the register of members is deemed as a matter of the Companies Act to have legal title to the shares as set against its name in the register of members.

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 member of

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our company, the person or member aggrieved (or any member 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.

***Choice of Forum***

Our Post-Listing M&AA provide that, for the avoidance of doubt and without limiting the jurisdiction of the courts of the Cayman Islands to hear, settle and/or determine disputes related to our company, the courts of the Cayman Islands shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of our company to our company or the shareholders, (iii) any action asserting a claim arising pursuant to any provision of the Companies Act or our articles of association including but not limited to any purchase or acquisition of shares, security or guarantee provided in consideration thereof, or (iv) any action asserting a claim against our company which if brought in the United States of America would be a claim arising under the internal affairs doctrine (as such concept is recognised under the laws of the United States from time to time). Our also provide that, unless our company consents in writing to the selection of an alternative forum, the United States District Court for the Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute, the state courts in New York County, New York) shall be the exclusive forum within the United States for the resolution of any complaint asserting a cause of action arising out of or relating in any way to the federal securities laws of the United States, regardless of whether such legal suit, action, or proceeding also involves parties other than our company.

This choice of forum provision may limit a shareholder's ability to bring a claim in a judicial forum that it finds favorable for disputes with us or our directors, officers or other employees, which may discourage such lawsuits. The enforceability of similar exclusive forum provisions (including exclusive federal forum provisions for actions, suits or proceedings asserting a cause of action arising under the federal securities laws of the United States) in other companies' organizational documents has been challenged in legal proceedings, and there is uncertainty as to whether courts would enforce the exclusive forum provisions in our Post-Listing M&AA. Additionally, any person or entity purchasing or otherwise acquiring any shares or other securities in our company, or purchasing or otherwise acquiring the shares issued pursuant to deposit agreements, cannot waive compliance with the federal securities laws of the United States and the rules and regulations thereunder with respect to claims arising under the Securities Act and shall be deemed to have notice of and consented to the provisions of such article in our Post-Listing M&AA.

For more information on the risks associated with our choice of forum provision, see "Item 3. Risk Factors—Risks Related to Ownership of Our Ordinary Shares—Forum selection provisions in our post-listing memorandum and articles of association could limit the ability of holders of our shares or other securities to obtain a favorable judicial forum for disputes with us, our directors and officers, and potentially others."

**Comparison of Shareholder Rights** 

The Companies Act is derived, to a large extent, from the older Companies Acts of England, but does not follow many recent English law statutory enactments. In addition, the Companies Act differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of the significant differences between the provisions of the Companies Act applicable to us and the laws applicable to companies incorporated in Delaware.

***Mergers and Similar Arrangements***

The Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (i) "merger" means the

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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 (ii) 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 (i) a special resolution of the shareholders of each constituent company, and (ii) 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 shareholders and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

A merger between a Cayman parent company and its Cayman subsidiary or subsidiaries does not require authorization by a resolution of shareholders of that Cayman subsidiary if a copy of the plan of merger is given to every shareholder of that Cayman subsidiary to be merged unless that shareholder agrees otherwise. For this purpose a company is a "parent" of a subsidiary if it holds issued shares that together represent at least ninety percent (90%) of the votes at a general meeting of the subsidiary.

The consent of each holder of a fixed or floating security interest over a constituent company is required unless this requirement is waived by a court in the Cayman Islands.

Save in certain limited circumstances, a shareholder of a Cayman constituent company who dissents from the merger or consolidation is entitled to payment of the fair value of such shareholder's shares (which, if not agreed between the parties, will be determined by the Cayman Islands court) upon dissenting to the merger or consolidation, provided that the dissenting shareholder complies strictly with the procedures set out in the Companies Act. The exercise of dissenter rights will preclude the exercise by the dissenting shareholder of any other rights to which he or she might otherwise be entitled by virtue of holding shares, save for the right to seek relief on the grounds that the merger or consolidation is void or unlawful.

Separate from the statutory provisions relating to mergers and consolidations, the Companies Act also contains statutory provisions that facilitate the reconstruction and amalgamation of companies by way of schemes of arrangement, provided that the arrangement is approved by (i) 75% in value of the members or class of members or (ii) a majority in number representing 75% in value of the creditors or class of creditors, in each case depending on the circumstances, as are present at a meeting called for such purpose and thereafter sanctioned by the Grand Court of the Cayman Islands. While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the statutory provisions as to the required majority vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 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;&nbsp;&nbsp;• the arrangement is such that may be reasonably approved by an intelligent and honest individual of that class
acting in respect of his interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act
or that would amount to a "fraud on the minority."

The Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of a dissenting minority shareholder 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

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such shares to the offeror on the terms of the offer. An objection can be made to the Grand Court of the Cayman Islands, but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

If an arrangement and reconstruction is thus approved, or if a tender 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***

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 authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, Cayman Islands courts can be expected to follow and apply common law principles that permit a minority shareholder to commence a class action against or derivative actions in the name of the company to challenge actions where:

&nbsp;&nbsp;&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;&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;&nbsp;&nbsp;• those who control the company are perpetrating a "fraud on the minority."

A shareholder may have a direct right of action against us where the individual rights of that shareholder have been infringed or are about to be infringed.

***Indemnification of Directors and Officers and Limitation of Liability***

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 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 Post-Listing M&AA provide that every director (including any alternate director), secretary, assistant secretary, or other officer for the time being and from time to time of our company (but not including our company's auditors) and the personal representatives of the same (each an "Indemnified Person") shall be indemnified and secured harmless against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Person, other than by reason of such Indemnified Person's own dishonesty, willful default or fraud, in or about the conduct of our company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such Indemnified Person in defending (whether successfully or otherwise) any civil proceedings concerning our company or its affairs in any court whether in the Cayman Islands or elsewhere. This standard of conduct for indemnification is generally the same as permitted under the Delaware General Corporation Law (the "DGCL") for a Delaware corporation.

In addition to such indemnification, we have obtained a general liability insurance policy that covers certain liabilities of our directors and officers arising out of claims based on acts or omissions in their capacities as directors or officers.

We have entered into indemnification agreements with each of our directors and officers that provide such persons with additional indemnification beyond that provided in our Post-Listing M&AA.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to us, our directors, our officers or persons who control 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.

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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, directors must inform themselves of all material information reasonably available regarding a significant transaction. The duty of loyalty requires that directors act in a manner they reasonably believe to be in the best interests of the corporation. They must not use their corporate positions for personal gain or advantage. This duty prohibits self-dealing by directors and mandates that the best interest of a 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 and accomplished through fair process.

As a matter of Cayman Islands law, directors of a Cayman Islands company are in the position of fiduciaries with respect to the company, and therefore it is considered that they owe the following duties to the company: a duty to act bona fide in the best interests of the company, a duty not to make a profit based on their position as directors (unless the company permits them to do so), a duty not to put themselves in a position where the interests of the company conflict with their personal interests or their duties to third parties and a duty to exercise powers for the purpose for which such powers were intended. Directors of a Cayman Islands company owe to the company a duty to act with skill and care. It was previously considered that directors need not exhibit in the performance of their duties a greater degree of skill than may reasonably be expected from people of their knowledge and experience. However, English and Commonwealth courts have moved toward an objective standard with regard to the required skill and care, and these authorities are likely to be followed in the Cayman Islands.

***Shareholder Action by Written Consent***

Under the DGCL, a corporation may eliminate the right of shareholders to act by written consent by amendment to its certificate of incorporation. The Companies Act provides that our shareholders may approve corporate matters by way of a unanimous written resolution signed by or on behalf of each shareholder who would have been entitled to vote on such matter at a general meeting without a meeting being held, however our Post-Listing M&AA provide that our shareholders may approve corporate matters by way of a unanimous written resolution signed by or on behalf of each shareholder who would have been entitled to vote on such matter at a general meeting without a meeting being held.

***Shareholder Proposals***

Under the DGCL, 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. 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 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 Post-Listing M&AA provide that the chairman or the directors (acting by a resolution of the board) may call general meetings, and they shall on a shareholders' requisition forthwith proceed to convene an extraordinary general meeting of our company. Our Post-Listing M&A also provide that a shareholders' requisition is a requisition of shareholders holding at the date of deposit of the requisition shares which carry in aggregate not less than one-third (1/3) of all votes attaching to all the issued and outstanding shares that as at the date of the deposit carry the right to vote at general meetings of our company.

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***Cumulative Voting***

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. Under the DGCL, cumulative voting for elections of directors is only permitted if the corporation's certificate of incorporation specifically provides for it.

There are no prohibitions in relation to cumulative voting under Cayman Islands law, but our Post-Listing M&AA 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 DGCL, a director of a corporation may be removed with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Our Post-Listing M&AA provide that a director may be removed from office by an ordinary resolution (except with regard to the removal of Dr. Li DONG, who may be removed from office by a special resolution), notwithstanding anything in our articles of association or in any agreement between our company and such director (but without prejudice to any claim for damages under such agreement. The office of a director shall be vacated, if such director (i) becomes bankrupt or makes any arrangement or composition with his creditors, (ii) dies or is found to be or becomes of unsound mind, (iii) resigns his office by notice in writing to our company, or (iv) is removed from office pursuant to any other provision of our articles of association.

***Transactions with Interested Shareholders***

The DGCL 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, 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 share 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.

Cayman Islands law 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 Cayman Islands law does not regulate transactions between a company and its significant shareholders, our directors are required to comply with fiduciary duties which they owe to us under Cayman Islands law, including the duty to ensure that, in their opinion, any such transactions must be entered into bona fide in the best interests of the company and are entered into for a proper corporate purpose and not with the effect of constituting a fraud on the minority shareholders.

***Dissolution; Winding Up***

Under the DGCL, 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.

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Under Cayman Islands law, a company may be wound up by either an order of the courts of the Cayman Islands or by a special resolution of its shareholders or, if the company is unable to pay its debts as they fall due, by an ordinary resolution of its shareholders. The courts of the Cayman Islands have the 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 DGCL, 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 our Post-Listing M&AA, whenever the capital of our company is divided into different classes the rights attached to any such class may, subject to any rights or restrictions for the time being attached to any class, only be materially adversely varied with the consent in writing of the holders of at least two-thirds of the issued shares of that class or with the sanction of a special resolution passed at a separate meeting of the holders of the shares of that class.

***Amendment of Governing Documents***

Under the DGCL, a corporation's governing documents may be amended with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Under the Companies Act and our Post-Listing M&AA, our memorandum and articles of association may only be amended by special resolution of shareholders.

***Rights of Non-Resident or Foreign Shareholders***

There are no limitations imposed by our Post-Listing M&AA on the rights of non-resident or foreign shareholders to hold or exercise voting rights on our shares. In addition, there are no provisions in our Post-Listing M&AA governing the ownership threshold above which shareholder ownership must be disclosed.

**Enforceability of Civil Liabilities** 

***Cayman Islands***

We were incorporated in the Cayman Islands in order to enjoy the following benefits:

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

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

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

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

&nbsp;&nbsp;&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, the following:

&nbsp;&nbsp;&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; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cayman Islands companies may not have standing to sue before the federal courts of the United States.

Our Post-Listing M&AA 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.

We have substantial operations conducted outside of the United States, and substantially all of our assets are located outside of the United States. Some of our directors and executive officers are nationals or residents of

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jurisdictions other than the United States and a substantial portion of their assets are located outside the United States. For example, Dr. Li DONG, our Chairman and Chief Executive Officer, and Mr. Da (Robin) Li, our Chief Technology Officer for Smart Energy Solution and Energy Management System are not nationals of the United States and do not reside in the United States. As a result, it may be difficult for a shareholder to effect service of process within the United States upon these persons, 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. as our agent upon whom process may be served in any action brought against us under the securities laws of the United States. Harney Westwood & Riegels, our counsel as to Cayman Islands law, has advised us, that there is uncertainty as to whether the courts of the Cayman Islands would:

&nbsp;&nbsp;&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;&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.

We have been advised by our Cayman Islands legal counsel, Harney Westwood & Riegels, 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), the Grand Court of the Cayman Islands, will at common law enforce final and conclusive in personam judgments of state and/or federal courts of the United States of America, or the Foreign Court, of a debt or definite sum of money against the Company (other than a sum of money payable in respect of taxes or other charges of a like nature, a fine or other penalty (which may include a multiple damages judgment in an anti-trust action) or where enforcement would be contrary to public policy). The Grand Court of the Cayman Islands may also at common law enforce final and conclusive in personam judgments of the Foreign Court that are non-monetary against the Company, for example, declaratory judgments ruling upon the true legal owner of shares in a Cayman Islands company. The Grand Court of the Cayman Islands will exercise its discretion in the enforcement of non-money judgments by having regard to the circumstances, such as considering whether the principles of comity apply. To be treated as final and conclusive, any relevant judgment must be regarded as res judicata by the Foreign Court. A debt claim on a foreign judgment must be brought within six years of the date of the judgment, and arrears of interest on a judgment debt cannot be recovered after six years from the date on which the interest was due. The courts of the Cayman Islands are unlikely to enforce a judgment obtained from the Foreign Court under civil liability provisions of U.S. federal securities law if such a judgment is found by the courts of the Cayman Islands to give rise to obligations to make payments that are penal or punitive in nature. Such a determination has not yet been made by the Grand Court of the Cayman Islands. A court of the Cayman Islands may stay enforcement proceedings if concurrent proceedings are being brought elsewhere. A judgment entered in default of appearance by a defendant who has had notice of the Foreign Court's intention to proceed may be final and conclusive notwithstanding that the Foreign Court has power to set aside its own judgment and despite the fact that it may be subject to an appeal the time-limit for which has not yet expired. The Grand Court of the Cayman Islands may safeguard the defendant's rights by granting a stay of execution pending any such appeal and may also grant interim injunctive relief as appropriate for the purpose of enforcement.

***Singapore***

There is uncertainty as to whether the courts of Singapore would (i) recognize and enforce judgments of courts in the United States, based upon the civil liability provisions of the securities laws of the United States or any state or territory of the United States (ii) enter judgments in original actions brought in the Singapore courts based solely on the civil liability provisions of these securities laws. An *in personam* final and conclusive judgment in the federal or state courts of the United States under which a fixed or ascertainable sum of money is payable may generally be enforced as a debt in the Singapore courts under the common law as long as it is established that the Singapore courts have jurisdiction over the judgment debtor. Additionally, the court where the judgment was obtained must have had international jurisdiction over the party sought to be bound in the local

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proceedings. However, the Singapore courts are unlikely to enforce a foreign judgment if (a) the foreign judgment is inconsistent with a prior local judgment that is binding on the same parties; (b) the enforcement of the foreign judgment would contravene the public policy of Singapore; (c) the proceedings in which the foreign judgment was obtained were contrary to principles of natural justice; (d) the foreign judgment was obtained by fraud or (e) the enforcement of the foreign judgment amounts to the direct or indirect enforcement of a foreign penal, revenue or other public law.

In particular, the Singapore courts may potentially not allow the enforcement of any foreign judgment for a sum payable in respect of taxes, fines, penalties or other similar charges, including the judgments of courts in the United States based upon the civil liability provisions of the securities laws of the United States or any state or territory of the United States. In respect of civil liability provisions of the United States federal and state securities law which permit punitive damages against us and our directors or executive officers, we are unaware of any decision by the Singapore courts which has considered the specific issue of whether a judgment of a United States court based on such civil liability provisions of the securities laws of the United States or any state or territory of the United States is enforceable in Singapore.

**10. C. Material Contracts** 

For information concerning our material contracts, see "Item 4. Information on Leoch Technology," "Item 5. Operating and Financial Review and Prospects" and "Item 7. Major Shareholders and Related Party Transactions—7.B. Related Party Transactions."

**10. D. Exchange Controls** 

There are currently no exchange control restrictions in effect in Cayman Islands or major jurisdictions where we operate.

**10. E. Taxation** 

The following summary contains a description of Cayman Islands, Singapore, and U.S. federal income tax consequences of the ownership and disposition of our ordinary shares. This summary should not be considered a comprehensive description of all the tax considerations that may be relevant to ownership of our ordinary shares, it is not applicable to all categories of investors, some of which may be subject to special rules, and does not address all of the Cayman Islands, Singapore, and U.S. federal income tax considerations applicable to any particular holder. The summary is based upon the tax laws of the Cayman Islands, Singapore, and the United States and regulations thereunder as of the date hereof, which are subject to change.

Holders of our ordinary shares should consult their tax advisors about the particular Cayman Islands, Singapore, and U.S. federal, state, local and other tax consequences to them of the ownership and disposition of our ordinary shares, including any other tax consequences under the laws of their country of citizenship, residence or domicile.

**Cayman Islands Tax Considerations** 

The following is a discussion of certain Cayman Islands tax consequences of an investment in our ordinary shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended as tax advice, does not consider any investor's particular circumstances and does not consider tax consequences other than those arising under Cayman Law.

***Under Existing Cayman Law***

Under existing Cayman Islands law, the spin-off will not result in any Cayman Islands tax.

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Payments of dividends and capital in respect of our ordinary shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of interest and principal or a dividend or capital to any holder of ordinary shares, as the case may be, nor will gains derived from the disposal of our ordinary shares be subject to Cayman Islands income or corporation tax. The Cayman Islands currently have no income, corporation or capital gains tax and no estate duty, inheritance tax or gift tax.

No stamp duty is payable in respect of the issuance of our ordinary shares or on an instrument of transfer in respect of an ordinary share.

**Singapore Tax Considerations** 

***Spin-off Transaction***. The spin-off should not result in Singapore corporate tax of a company that is not a Singapore tax resident company. See "Risk Factors—Risks Related to Separation from Leoch Technology and Being a Standalone Public Company—There can be no assurance that we will not be classified as a Singapore tax resident."

***Dividends or Other Distributions with Respect to Ordinary Shares***. Under the one-tier corporate tax system which currently applies to all Singapore tax resident companies, tax on corporate profits is final, and dividends paid by a Singapore tax resident company will be income tax exempt in the hands of a shareholder, whether or not the shareholder is a company or an individual and whether or not the shareholder is a Singapore tax resident.

***Capital Gains upon Disposition of Ordinary Shares***. Under current Singapore tax laws, there is no tax on capital gains. There are no specific laws or regulations which deal with the characterization of whether a gain is income or capital in nature. Gains arising from the disposal of our Ordinary Shares may be construed to be of an income nature and subject to Singapore income tax, if they arise from or are otherwise connected with activities which the Inland Revenue Authority of Singapore regards as the carrying on of a trade or business in Singapore.

***Corporate Income Tax***. Companies that carry on business in Singapore are subject to a flat rate of 17% of the companies' chargeable income. Chargeable income refers to the companies' taxable income (after deducting tax-allowable expenses).

***Goods and Services Tax***. Goods and Services Tax is charged at 9% on the supply of goods and services made in Singapore by a taxable person in the course or furtherance of one's business and the importation of goods into Singapore.

**Material U.S. Federal Income Tax Considerations** 

The following are material U.S. federal income tax consequences to the U.S. Holders described below of the ownership and disposition of our ordinary shares, but this discussion does not purport to be a comprehensive description of all of the tax considerations that may be relevant to a particular person's decision to acquire our ordinary shares.

This discussion applies only to a U.S. Holder that (i) was not a shareholder of Leoch Technology at any time prior to the completion of the spin-off transaction (and thus became a holder of our ordinary shares after the spin-off transaction) and (ii) holds our ordinary shares as capital assets for U.S. federal income tax purposes.

In addition, this discussion does not describe all of the tax consequences that may be relevant in light of a U.S. Holder's particular circumstances, including any minimum tax, the Medicare contribution tax on net investment income and tax consequences applicable to U.S. Holders subject to special rules, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulated investment companies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealers or traders in securities that use a mark-to-market method of tax accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding ordinary shares as part of a straddle, integrated or similar transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entities classified as partnerships for U.S. federal income tax purposes and their partners;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt entities, "individual retirement accounts," or
"Roth IRAs";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that own or are deemed to own ordinary shares representing 10% or more of our stock by vote or value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that acquired ordinary shares pursuant to the exercise of an employee stock option or otherwise as
compensation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding ordinary shares in connection with a trade or business outside the United States.

If a partnership (or other entity that is classified as a partnership for U.S. federal income tax purposes) owns ordinary shares, the U.S. federal income tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. Partnerships owning ordinary shares and their partners should consult their tax advisers as to their particular U.S. federal income tax consequences of owning and disposing of our ordinary shares.

This discussion is based on the Internal Revenue Code of 1986, as amended (the "Code"), administrative pronouncements, judicial decisions, and final, temporary and proposed Treasury regulations, all as of the date hereof, any of which is subject to change, possibly with retroactive effect. This discussion does not address any state, local or non-U.S. tax considerations, or any federal taxes (such as estate or gift taxes) other than income taxes.

This discussion assumes that no non-U.S. tax will be impose on distributions on, or dispositions of, our ordinary shares. U.S. Holders should consult their tax advisers on the U.S. federal income tax consequences to them if any such non-U.S. tax were so imposed.

As used herein, a "U.S. Holder" is a person that acquired our ordinary shares after the spin-off transaction and is, for U.S. federal income tax purposes, a beneficial owner of the ordinary shares and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a citizen or individual resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United
States, any state therein or the District of Columbia; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source.

U.S. Holders should consult their tax advisers concerning the U.S. federal, state, local and non-U.S. tax consequences of owning and disposing of ordinary shares in their particular circumstances.

Except as described below under "—*Passive Foreign Investment Company Rules*," this discussion assumes that we are not, and will not be, a passive foreign investment company (a "PFIC") for any taxable year.

***The Spin-Off Transaction***

The spin-off will be consummated prior to the listing of our ordinary shares on the NASDAQ. Therefore, the spin-off will not result in U.S. federal income tax on U.S. Holders that acquire our ordinary shares on or after the date our ordinary shares are listed on the Nasdaq.

We have not analyzed, or received an opinion or ruling, regarding the U.S. federal income tax consequences of the spin-off to any U.S. shareholders of Leoch Technology that acquired our ordinary shares pursuant to the spin-off transaction ("Leoch Technology Spin-Off Shareholders"). Leoch Technology Spin-Off Shareholders

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should consult their tax advisers regarding the U.S. tax consequences of the spin-off and all related transactions, as well as the U.S. tax consequences of owning or disposing of our ordinary shares in their particular circumstances, as they may differ from the tax considerations described below. For example, if the spin-off is treated as a taxable transaction for U.S. federal income tax purposes, a Leoch Technology Spin-Off Shareholder would be required to treat the receipt of our ordinary shares as a taxable dividend to the extent of such shareholder's allocable portion of Leoch Technology's current or accumulated earnings and profits (as calculated for U.S. federal income tax purposes), with any excess treated first as a tax-free return of capital to the extent of such shareholder's adjusted tax basis in the relevant Leoch Technology shares and thereafter as capital gain. Because Leoch Technology does not maintain calculations of earnings and profits under U.S. federal income tax principles, such distribution would be expected to be reported in its entirety as a dividend (which would not qualify for any preferential tax rate) if the spin-off is treated as a taxable transaction for U.S. federal income tax purposes. In that case, a Leoch Technology Spin-Off Shareholder would have an initial tax basis in our ordinary shares received in the spin-off equal to their fair market value on the date of the spin-off, and a holding period for such shares would begin on the day after the date of the spin-off. By contrast, if the spin-off is not treated as a taxable transaction for U.S. federal income tax purposes, Leoch Technology Spin-Off Shareholders generally would not be taxed on the receipt of our ordinary shares pursuant to the spin-off, and their holding period for our ordinary shares received in the spin-off (including for purposes of the PFIC rules) would include the holding period for the Leoch Technology shares with respect to which our ordinary shares were received. Different rules may apply if Leoch Technology were a PFIC for any taxable year during which a Leoch Technology Spin-Off Shareholder owned Leoch Technology shares with respect to which they received our ordinary shares in the spin-off transaction. The remainder of this discussion does not address any U.S. federal income tax consequences to Leoch Technology Spin-Off Shareholders.

***Taxation of Distributions***

We currently do not intend to make distributions to our shareholders. Distributions paid on our ordinary shares, other than certain *pro rata* distributions of ordinary shares, will be treated as dividends to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Because we do not maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that distributions generally will be reported to U.S. Holders as dividends. Dividends will not be eligible for the dividends-received deduction generally available to U.S. corporations under the Code. Subject to applicable limitations, dividends paid to certain non-corporate U.S. Holders of ordinary shares may be taxable at a preferential rate. Non-corporate U.S. Holders should consult their tax advisers regarding the availability of this preferential tax rate on dividends in their particular circumstances.

Dividends will be included in a U.S. Holder's income on the date of receipt. The amount of any dividend income paid in foreign currency will be the U.S. dollar amount calculated by reference to the spot rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars on such date. If the dividend is converted into U.S. dollars on the date of receipt, a U.S. Holder generally should not be required to recognize foreign currency gain or loss in respect of the amount received. A U.S. Holder may have foreign currency gain or loss if the dividend is converted into U.S. dollars after the date of receipt. Dividends will be treated as foreign source income for purposes of the foreign tax credit rules.

***Sale or Other Taxable Disposition of Ordinary Shares***

A U.S. Holder will generally recognize capital gain or loss on a sale or other taxable disposition of ordinary shares in an amount equal to the difference between the amount realized and the U.S. Holder's tax basis in the ordinary shares disposed of, in each case as determined in U.S. dollars. The gain or loss will be long-term capital gain or loss if, at the time of the sale or disposition, the U.S. Holder has owned the ordinary shares for more than one year. Long-term capital gains recognized by non-corporate U.S. Holders may be subject to tax rates that are lower than those applicable to ordinary income. The deductibility of capital losses is subject to limitations.

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***Passive Foreign Investment Company Rules***

In general, a non-U.S. corporation is a PFIC for U.S. federal income tax purposes for any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii) 50% or more of the average value of its assets (generally determined on an average quarterly basis) consists of assets that produce, or are held for the production of, passive income. For purposes of these calculations, a non-U.S. corporation that owns, directly or indirectly, at least 25% by value of the shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation and received directly its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties (other than certain royalties derived in an active business), and certain investment gains. Cash is generally a passive asset for these purposes. Goodwill and other intangible assets (the value of which may be determined by reference to the excess of the sum of the corporation's market capitalization and liabilities over the value of its assets) are generally characterized as active assets to the extent associated with business activities that produce active income.

Based on the composition of our income and assets and the estimated value of our assets (including goodwill and other intangible assets), we do not expect to be a PFIC for our 2025 taxable year. However, our PFIC status for any taxable year is an annual factual determination that can be made only after the end of that year and will depend on the composition of our income and assets and the average value of our assets from time to time, including the value of our goodwill and other intangible assets (which may be determined, in part, by reference to our market capitalization, which could be volatile). Consequently, there can be no assurance that we will not be a PFIC for any taxable years.

If we are a PFIC for any taxable year and any entity in which we own equity interests is also a PFIC (any such entity, a "Lower-tier PFIC"), U.S. Holders will be deemed to own a proportionate amount (by value) of the shares of each Lower-tier PFIC and will be subject to adverse U.S. federal income tax according to the rules described in the next paragraph on (i) certain distributions by a Lower-tier PFIC and (ii) dispositions of shares of Lower-tier PFICs, in each case as if the U.S. Holders held such shares directly, even though the U.S. Holder does not receive any proceeds of those distributions or dispositions.

In general, if we are a PFIC for any taxable year during which a U.S. Holder owns or is deemed to own the ordinary shares, gain recognized by such U.S. Holder on a sale or other disposition (including certain pledges) of the ordinary shares will be allocated ratably over the U.S. Holder's holding period. The amounts allocated to the taxable year of the sale or disposition and to any year before we became a PFIC will be taxed as ordinary income. The amount allocated to each other taxable year will be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge will be imposed on the resulting tax liability for each such year. Furthermore, to the extent that distributions received by a U.S. Holder in any taxable year on its ordinary shares exceed 125% of the average of the annual distributions on the ordinary shares received during the preceding three taxable years or the U.S. Holder's holding period, whichever is shorter, the excess distributions will be subject to taxation in the same manner. If we are a PFIC for any taxable year during which a U.S. Holder owns ordinary shares, we will generally continue to be treated as a PFIC with respect to the U.S. Holder for all succeeding taxable years during which the U.S. Holder owns the ordinary shares, even if we cease to meet the threshold requirements for PFIC status, unless the U.S. Holder makes a timely "deemed sale" election, in which case any gain on the deemed sale will be taxed under the PFIC rules described above.

Alternatively, if we are a PFIC for any taxable year and if the ordinary shares are "regularly traded" on the NASDAQ, a U.S. Holder that owns ordinary shares could make a mark-to-market election that will result in tax treatment different from the general tax treatment for PFICs described in the preceding paragraph. The ordinary shares will be treated as regularly traded for any calendar year in which more than a *de minimis* quantity of the ordinary shares is traded on the NASDAQ on at least 15 days during each calendar quarter. If a U.S. Holder of ordinary shares makes the mark-to-market election, for each taxable year that we are a PFIC, the U.S. Holder generally will recognize as ordinary income any excess of the fair market value of the ordinary shares at the end of such U.S. Holder's taxable year over their adjusted tax basis, and will recognize an ordinary loss in respect of

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any excess of the adjusted tax basis of the ordinary shares over their fair market value at the end of such U.S. Holder's taxable year, but only to the extent of the net amount of income previously included as a result of the mark-to-market election. If a U.S. Holder makes the election, the U.S. Holder's tax basis in the ordinary shares will be adjusted to reflect the income or loss amounts recognized. Any gain recognized on the sale or other disposition of ordinary shares in a taxable year in which we are a PFIC will be treated as ordinary income and any loss will be treated as an ordinary loss (but only to the extent of the net amount of income previously included as a result of the mark-to-market election, with any excess loss treated as a capital loss). If a U.S. Holder makes the mark-to-market election, distributions paid on ordinary shares will be treated as discussed under "—*Taxation of Distributions*" above (but subject to the discussion in the immediately subsequent paragraph). Once made, the election will remain in effect for all taxable years in which we are a PFIC, unless it is revoked with the IRS's consent, or the ordinary shares cease to be regularly traded on a qualified exchange. U.S. Holders should consult their tax advisers regarding the availability and advisability of making a mark-to-market election in their particular circumstances in the case that we are a PFIC for any taxable year. In particular, U.S. Holders should consider carefully the impact of a mark-to-market election with respect to their ordinary shares given that we may have Lower-tier PFICs, and there is no provision in the Code or Treasury regulations that would enable a U.S. Holder to make a mark-to-market election with respect to any Lower-tier PFICs the shares of which are not regularly traded.

If we are a PFIC (or are treated as a PFIC with respect to a U.S. Holder) for a taxable year in which we pay a dividend or for the prior taxable year, the preferential tax rate described above with respect to dividends paid to certain non-corporate U.S. Holders will not apply.

If we are a PFIC for any taxable year during which a U.S. Holders owns any ordinary shares, the U.S. Holder will generally be required to file annual reports with the IRS. U.S. Holders should consult their tax advisers regarding the determination of whether we are a PFIC for any taxable year and the potential application of the PFIC rules to their ownership of ordinary shares.

***Information Reporting and Backup Withholding***

Payments of dividends and sales proceeds that are made within the United States or through certain U.S.-related financial intermediaries may be subject to information reporting and backup withholding, unless (i) the U.S. Holder is a corporation or other "exempt recipient" or (ii) in the case of backup withholding, the U.S. Holder provides a correct taxpayer identification number and certifies that it is not subject to backup withholding. The amount of any backup withholding from a payment to a U.S. Holder will be allowed as a credit against its U.S. federal income tax liability and may entitle it to a refund, provided that the required information is timely furnished to the IRS.

Certain U.S. Holders who are individuals (and certain specified entities) may be required to report information relating to their ownership of ordinary shares, or non-U.S. accounts through which the ordinary shares are held. U.S. Holders should consult their tax advisers regarding their reporting obligations with respect to the ordinary shares.

**10. F. Dividends and Paying Agents** 

For a discussion of the declaration and payment of dividends on our shares, see "Item 10.B. Memorandum and Articles of Association—Dividends."

The paying agent for our shares is [Computershare].

**10. G. Statement by Experts** 

The combined financial statements of Leoch Energy Inc at December 31, 2024 and 2023, and for the years then ended, appearing in this Registration Statement have been audited by Ernst & Young Hua Ming LLP,

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independent registered public accounting firm, as set forth in their report thereon appearing elsewhere herein, and are included in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

**10. H. Documents on Display** 

Any statement in this Form 20-F about any of our contracts or other documents is not necessarily complete. If the contract or document is filed as an exhibit to the Form 20-F, the contract or document is deemed to modify the description contained in this Form 20-F. You must review the exhibits themselves for a complete description of the contract or document.

Upon completion of the spin-off, we will become subject to the informational requirements of the Exchange Act. Accordingly, we will be required to file reports and other information with the SEC, including annual reports on Form 20-F and periodic reports on Form 6-K. The SEC maintains an Internet website that contains reports and other information about issuers, like us, that file electronically with the SEC. The address of that website is www.sec.gov. In addition, as of the first day of listing of our shares on the NASDAQ, copies of all information and documents pertaining to press releases, media conferences, investor updates and presentations at analyst and investor presentation conferences can be downloaded from our website, which will be operational at or prior to the spin-off. The information that will be contained on our website is not a part of this Form 20-F.

As a foreign private issuer, we will be exempt under the Exchange Act from, among other things, the rules prescribing the furnishing and content of proxy statements, and our executive officers, directors and principal shareholders are exempt from the reporting and shortswing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act. However, we intend to furnish or make available to our shareholders annual reports containing our combined financial statements prepared in accordance with GAAP. Our annual report will contain an "Operating and Financial Review and Prospects" section for the relevant periods.

**10. I. Subsidiary Information** 

Not Applicable.

**10. J. Annual Report to Security Holders** 

Not applicable.

**ITEM 11. Quantitative and Qualitative Disclosures About Market Risk** 

***Concentration of credit risk***

Financial assets that potentially expose us to concentrations of credit risk consist primarily of cash and cash equivalents, accounts receivable, and amounts due from related parties. We place our cash, cash equivalents and restricted cash with reputable financial institutions which have high-credit ratings. As of December 31, 2023, 2024 and June 30, 2025, the aggregate amount of cash, cash equivalents and restricted cash of US$20.8 million, US$15.1 million and US$16.9 million, respectively, were held at major financial institutions located in Singapore, and US$10.7 million, US$9.3 million and US$11.1 million, respectively, were deposited with major financial institutions located outside Singapore. We continue to monitor the financial strength of these financial institutions. We regularly monitor the rating of the international financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions.

Accounts receivable are typically unsecured and derived from revenue earned from customers, which are exposed to credit risk. We mitigate customer credit risk by performing periodic credit evaluations on our customers and ongoing monitoring of outstanding balances. We maintain reserves for estimated credit losses, and

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these losses have generally been within our expectations. As of June 30, 2025, we had no single customer with a receivable balance exceeding 10% of the total accounts receivable balance. There was no single customer that generated greater than 10% of total revenues for the six months ended June 30, 2025.

Amounts due from related parties are typically unsecured. In evaluating the collectability of the amounts due from related parties, we consider many factors, including the related parties' repayment history and their credit-worthiness. An allowance for credit losses is made when collection of the full amount is no longer probable.

***Concentration of suppliers***

A significant portion of our raw materials were purchased from two suppliers, one of which is our Leoch Technology group set out in "Note 14. Related party transactions" to our combined financial statements included elsewhere in this Form 20-F, who collectively accounted for 79%, 81%, 88% and 81% of our total equipment and raw materials purchases for the years ended December 31, 2023, 2024 and the six months ended June 30, 2024 and 2025, respectively. A significant interruption by these suppliers in the delivery of equipment and raw materials could impair our ability to deliver the products and services and could materially adversely impact our combined statements of income and other comprehensive income and combined statements of financial position. We minimize such risk by introducing alternative suppliers to ensure a constant supply.

***Business and economic risk***

We believe that changes in any of the following areas could have a material adverse effect on our future combined financial position, results of operations, or cash flows: changes in the overall demand for services, competitive pressures due to new entrants; advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with our ability to attract employees necessary to support our growth. Our operations could also be adversely affected by significant political, regulatory, economic, and social uncertainties in the Europe, Middle East and Africa ("EMEA"), Americas and Asia-Pacific regions.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES** 

**12. A. Debt Securities** 

Not Applicable.

**12. B. Warrants and Rights** 

Not Applicable.

**12. C. Other Securities** 

Not Applicable.

**12. D. American Depositary Shares** 

Not Applicable.

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**PART II** 

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES** 

Not applicable.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS** 

Not applicable.

**ITEM 15. CONTROLS AND PROCEDURES** 

Not applicable.

**ITEM 16. [RESERVED]** 

Not applicable.

**16. A. Audit Committee and Financial Expert** 

Not applicable.

**16. B. Code of Ethics** 

Not applicable.

**16. C. Principal Accountant Fees and Services** 

Not applicable.

**16. D. Exemptions From the Listing Standards for Audit Committees** 

Not Applicable.

**16. E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers** 

Not applicable.

**16. F. Change in Registrant's Certifying Accountant** 

None.

**16. G. Corporate Governance** 

Not applicable.

**16. H. Mine Safety Disclosure** 

Not applicable.

**16. I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections.** 

Not applicable.

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**16. J. Insider trading policies** 

Not applicable.

**16. K. Cybersecurity** 

Not applicable.

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**PART III** 

**ITEM 17. FINANCIAL STATEMENTS** 

**Historical Combined financial statements** 

Please refer to pages F-1 through F-29 of this Form 20-F.

**ITEM 18. FINANCIAL STATEMENTS** 

Not applicable.

**ITEM 19. EXHIBITS** 

We have filed the following documents as exhibits to this Form 20-F:

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| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| 1.1 | [Form of Post-Listing M&AA, to be in effect immediately prior to the completion of the separation and distribution.](d760217dex11.htm) |
| 2.1 | [Form of Specimen Share Certificate for Leoch Energy Inc's Ordinary Shares](d760217dex21.htm) |
| 2.2 | [Separation and Distribution Agreement dated December 17, 2025 by and between Leoch International Technology Ltd and Leoch Energy Inc](d760217dex22.htm) |
| 4.1 | [Brand Licensing Framework Agreement dated December 10, 2025 by and between Leoch International Technology Ltd and Leoch Energy Inc](d760217dex41.htm) |
| 4.2 | [Product Procurement Framework Agreement dated December 10, 2025 by and between Leoch International Technology Ltd and Leoch Energy Inc](d760217dex42.htm) |
| 4.3 | [Form of Indemnification Agreement, between the Registrant and each of its Directors and Executive Officers](d760217dex43.htm) |
| 4.4 | [Form of Employment Agreement, between the Registrant and each of its Executive Officers](d760217dex44.htm) |
| 8.1 | [List of Subsidiaries](d760217dex81.htm) |
| 11.1 | [Form of Code of Business Conduct and Ethics](d760217dex111.htm) |
| 15.1 | [Opinion of Harney Westwood & Riegels](d760217dex151.htm) |
| 15.2 | [Consent of Harney Westwood & Riegels (included in Exhibit 15.1)](d760217dex151.htm) |
| 15.3 | [Consent of Ernst & Young Hua Ming LLP, Independent Registered Public Accounting Firm](d760217dex153.htm) |
| 15.4 | [Leoch International Technology Ltd Circular](d760217dex154.htm) |
| 99.1 | [Consent of Frost & Sullivan](d760217dex991.htm) |

---

------

##### [**Table of Contents**](#toc)
**SIGNATURES** 

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this registration statement on its behalf.

---

| | |
|:---|:---|
|  Leoch Energy Inc | Leoch Energy Inc |
| By: | /s/ Li DONG |
|  | Name: Li DONG |
|  | Title: Chairman and Chief Executive Officer |

---

Date: December 30, 2025

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**INDEX TO THE FINANCIAL STATEMENTS** 

**Audited Combined Financial Statements** 

---

| | |
|:---|:---|
|  | **Page** |
|  [Report of Independent Registered Public Accounting Firm (PCAOB ID number: 1408)](#fin760217_1) | F-2 |
|  [Combined Balance Sheets as of December 31, 2023 and 2024](#fin760217_2) | F-3 |
|  [Combined Statements of Comprehensive Income for the Years Ended December 31, 2023 and 2024](#fin760217_3) | F-5 |
|  [Combined Statements of Shareholders' Equity for the Years Ended December 31, 2023 and 2024](#fin760217_4) | F-6 |
|  [Combined Statements of Cash Flows for the Years Ended December 31, 2023 and 2024](#fin760217_5) | F-7 |
|  [Notes to the Combined Financial Statements](#fin760217_6) | F-9-F-29 |
| **Unaudited Interim Condensed Combined and Consolidated Financial Statements** |  |
|  | **Page (s)** |
|  [Unaudited Interim Condensed Combined and Consolidated Balance Sheets as of December 31, 2024 and June 30, 2025](#fin760217_7) | F-30-F-31 |
|  [Unaudited Interim Condensed Combined and Consolidated Statements of Comprehensive Income for the Six Months Ended June 30, 2024 and 2025](#fin760217_8) | F-32-F-33 |
|  [Unaudited Interim Condensed Combined and Consolidated Statements of Shareholders' Equity for the Six Months Ended June 30, 2024 and 2025](#fin760217_9) | F-34 |
|  [Unaudited Interim Condensed Combined and Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2025](#fin760217_10) | F-35-F-37 |
|  [Notes to the Unaudited Interim Condensed Combined and Consolidated Financial Statements](#fin760217_11) | F-38-F-46 |

---

------

##### [**Table of Contents**](#toc)
**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** 

To the Shareholders and the Board of Directors of Leoch Energy Inc

**Opinion on the Financial Statements** 

We have audited the accompanying combined balance sheets of Leoch Energy Inc (the Company) as of December 31, 2024 and 2023, the related combined statements of comprehensive income, shareholders' equity and cash flows for the years then ended, and the related notes (collectively referred to as the "combined financial statements"). In our opinion, the combined financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Ernst & Young Hua Ming LLP

We have served as the Company's auditor since 2024.

Shenzhen, The People's Republic of China

September 29, 2025

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED BALANCE SHEETS** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of December 31,** | **As of December 31,** |
|  | | **2023** | **2024** |
|  | **Notes** | **US$** | **US$** |
|  **ASSETS** |  |  |  |
|  **Current assets:** |  |  |  |
|  Cash and cash equivalents |  | 31499 | 22126 |
|  Restricted cash |  |  | 2234 |
|  Accounts receivable, net | 4 | 173940 | 187340 |
|  Inventories, net | 5 | 111067 | 111936 |
|  Amounts due from related parties | 14 | 6402 | 19454 |
|  Prepayments and other current assets | 6 | 86729 | 112919 |
|  **Total current assets** |  | **409637** | **456009** |
|  **Non-current assets:** |  |  |  |
|  Property and equipment, net | 7 | 50929 | 88105 |
|  Intangible assets, net |  | 2717 | 7044 |
|  Goodwill |  | 214 | 246 |
|  Operating right-of-use assets | 8 | 7975 | 13261 |
|  Deferred tax assets | 11 | 1529 | 4011 |
|  Amounts due from related parties | 14 | 180990 | 168483 |
|  Other non-current assets | 9 | 10587 | 7981 |
|  **Total non-current assets** |  | **254941** | **289131** |
|  **Total assets** |  | **664578** | **745140** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
|  **Current liabilities:** |  |  |  |
|  Accounts payable |  | 18745 | 16413 |
|  Customer deposits |  | 10646 | 13680 |
|  Short-term loans | 10 | 49800 | 50277 |
|  Accrued liabilities and other current liabilities |  | 6421 | 13676 |
|  Current portion of operating lease liabilities | 8 | 1750 | 2638 |
|  Amounts due to related parties | 14 | 302619 | 273273 |
|  Income tax payable |  | 15742 | 23365 |
|  **Total current liabilities** |  | **405723** | **393322** |
|  **Non-current liabilities:** |  |  |  |
|  Amounts due to related parties | 14 | 52990 | 80989 |
|  Long-term loans | 10 | 1542 | 593 |
|  Non-current portion of operating lease liabilities | 8 | 4080 | 8682 |
|  Deferred tax liabilities | 11 | 509 | 1371 |
|  **Total non-current liabilities** |  | **59121** | **91635** |
|  **Total liabilities** |  | **464844** | **484957** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED BALANCE SHEETS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of December 31,** | **As of December 31,** |
|  | | **2023** | **2024** |
|  | **Notes** | **US$** | **US$** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY (CONTINUED)** |  |  |  |
|  **Commitments and contingencies** | 12 |  |  |
|  **Shareholders' equity:** |  |  |  |
|  Ordinary shares (par value of US$0.000005 per share as of date of submission; 10,000,000,000 shares authorized, 1 share issued and outstanding as of date of submission) | 13 |  |  |
|  Additional paid-in capital |  | 29489 | 55662 |
|  Retained earnings |  | 170079 | 204561 |
|  Accumulated other comprehensive loss |  | (529) | (3619) |
|  **Total Leoch Energy Inc's shareholders' equity** |  | **199039** | **256604** |
|  Noncontrolling interests |  | 695 | 3579 |
|  **Total shareholders' equity** |  | **199734** | **260183** |
|  **Total liabilities and shareholders' equity** |  | **664578** | **745140** |

---

The accompanying notes are an integral part of the combined financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED STATEMENTS OF COMPREHENSIVE INCOME** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the years ended**<br>**December 31,** | **For the years ended**<br>**December 31,** |
|  | | **2023** | **2024** |
|  | **Notes** | **US$** | **US$** |
|  **Revenues** (including related party amounts of US$4,760 and US$16,061, for the years ended December 31, 2023 and 2024, respectively) | 3, 14 | 694984 | 870341 |
|  **Cost of revenues** (including related party amounts of US$264,330 and US$450,182 for the years ended December 31, 2023 and 2024, respectively) | 14 | (592877) | (749340) |
|  **Gross profit** |  | **102107** | **121001** |
|  **Operating expenses** |  |  |  |
|  Research and development expenses |  | (7707) | (3999) |
|  Selling and marketing expenses |  | (25265) | (27444) |
|  General and administrative expenses |  | (15888) | (24041) |
|  **Total operating expenses** |  | **(48860)** | **(55484)** |
|  **Income from operations** |  | **53247** | **65517** |
|  Interest income |  | 130 | 143 |
|  Interest expense |  | (4574) | (8513) |
|  Foreign exchange loss, net |  | (1096) | (4329) |
|  Others, net |  | 1634 | 493 |
|  **Income before income taxes** |  | **49341** | **53311** |
|  Income tax expenses | 11 | (9072) | (16097) |
|  **Net income** |  | **40269** | **37214** |
|  Less: net income attributable to noncontrolling interests |  | 1362 | 2732 |
|  **Net income attributable to Leoch Energy Inc's shareholders** |  | **38907** | **34482** |
|  **Earnings per share, basic and diluted** |  | 38907 | 34482 |
|  **Weighted average shares used in computing earnings per share, basic and diluted** |  | 1 | 1 |
|  **Other comprehensive income, net of tax of nil:** |  |  |  |
|  Foreign currency translation adjustments |  | 1995 | (2938) |
|  **Total comprehensive income** |  | **42264** | **34276** |
|  Less: comprehensive income attributable to noncontrolling interests |  | 1234 | 2884 |
|  **Comprehensive income attributable to Leoch Energy Inc's shareholders** |  | **41030** | **31392** |

---

The accompanying notes are an integral part of the combined financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED STATEMENTS OF SHAREHOLDERS' EQUITY** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | | |
|  | **Ordinary shares** | **Ordinary shares** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated<br>other<br>comprehensive<br>loss** | **Total** | **Non-<br>controlling<br>interests** | **Total<br>shareholders'<br>equity** |
|  | **Number of<br>shares** | **Amount** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated<br>other<br>comprehensive<br>loss** | **Total** | **Non-<br>controlling<br>interests** | **Total<br>shareholders'<br>equity** |
|  | | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** |
|  **Balance as of January 1, 2023** |  |  | 9250 | 131172 | (2652) | 137770 | (539) | 137231 |
|  Net income |  |  |  | 38907 |  | 38907 | 1362 | 40269 |
|  Contribution from the Parent<sup>(i)</sup> |  |  | 20239 |  |  | 20239 |  | 20239 |
|  Translation adjustments |  |  |  |  | 2123 | 2123 | (128) | 1995 |
|  **Balance as of December 31, 2023** |  |  | **29489** | **170079** | **(529)** | **199039** | **695** | **199734** |
|  Net income |  |  |  | 34482 |  | 34482 | 2732 | 37214 |
|  Contribution from the Parent<sup>(i)</sup> |  |  | 26173 |  |  | 26173 |  | 26173 |
|  Translation adjustments |  |  |  |  | (3090) | (3090) | 152 | (2938) |
|  **Balance as of December 31, 2024** |  |  | **55662** | **204561** | **(3619)** | **256604** | **3579** | **260183** |

---

(i) Contribution represents non-cash expenses allocated from the Parent.

The accompanying notes are an integral part of the combined financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED STATEMENTS OF CASH FLOWS** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  **Cash flows from operating activities:** |  |  |
|  Net income | 40269 | 37214 |
|  Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value (loss)/gain from derivative contract | (154) | 86 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash expenses allocated from the Parent | 20239 | 26173 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment | 6723 | 7573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from disposal of property and equipment | 2 | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash operating lease expense | 1954 | 3308 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 451 | 457 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | (739) | (1672) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for allowance for credit losses | 668 | 774 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of inventories | 523 | 993 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange loss, net | 34 | 784 |
|  Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (42614) | (15367) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories, net | (34862) | (3915) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other current and non-current assets | (2184) | (27903) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts due from related parties | 716 | (12406) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts due to related parties | 25168 | (30352) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 13954 | (2165) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | (2255) | (7858) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables and accruals | 2170 | 8744 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax payable | 3198 | 7780 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 31 | 4111 |
|  **Net cash provided by/(used in) operating activities** | **33292** | **(3614)** |
|  **Cash flows from investing activities:** |  |  |
|  Purchase of property and equipment | (5929) | (40675) |
|  Prepayment for property and equipment | (5147) | (2076) |
|  Prepayment for intangible assets | (5440) |  |
|  Loans provided to related parties | (106562) | (94319) |
|  Repayment of loans provided to related parties | 39298 | 106825 |
|  Purchases of intangible asset | (6) | (26) |
|  **Net cash used in investing activities** | **(83786)** | **(30271)** |
|  **Cash flows from financing activities:** |  |  |
|  Proceeds from short-term loans and long-term loans | 215227 | 207916 |
|  Loans from related parties | 52990 | 43000 |
|  Repayment of loans from related parties |  | (15001) |
|  Repayment of short-term loans and long-term loans | (207335) | (208518) |
|  **Net cash provided by financing activities** | **60882** | **27397** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**COMBINED STATEMENTS OF CASH FLOWS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Effect of exchange rate on cash, cash equivalents and restricted cash | 584 | (651) |
|  **Net increase/(decrease) in cash, cash equivalents and restricted cash** | **10972** | **(7139)** |
|  Cash, cash equivalents and restricted cash at the beginning of year | 20527 | 31499 |
|  **Cash, cash equivalents and restricted cash at the end of year** | **31499** | **24360** |
|  **Supplemental disclosures of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | (6613) | (9996) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense paid | (3328) | (2169) |
|  **Supplemental disclosures of non-cash investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of intangible assets included in other non-current assets |  | 5440 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment included in accrued liabilities and other current liabilities |  | 2360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment included in amounts due to related parties |  | 3285 |
|  **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 31499 | 22126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted cash |  | 2234 |
|  **Total cash, cash equivalents and restricted cash** | **31499** | **24360** |

---

The accompanying notes are an integral part of the combined financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**1. Organization and principal activities** 

Leoch Energy Inc (the "Company" and where appropriate, the term "Company" also refers to its subsidiaries) was incorporated in the Cayman Islands on July 19, 2024 as an exempted company with limited liability under the Companies Act of the Cayman Islands. The Company is a wholly-owned subsidiary of Leoch International Technology Limited ("LIT" or the "Parent") and designs, develops and sells various battery products.

The Parent undertook a series of restructuring transactions to establish the Company as the parent company of LIT's overseas markets (the "Global Markets") including Europe, Middle East and Africa ("EMEA"), Americas and Asia-Pacific regions (excluding Mainland China, Hong Kong and Macau, or "Asia-Pacific") (collectively, the "Group"). As part of the restructuring, the Company acquired the Global Markets business from Leoch International Investments, an intermediary subsidiary of the Parent, for total purchase consideration of US$38,688.

As the transfer of the Global Markets were between entities under common control of Dr. Dong Li (the "Founder"), the transaction was accounted for in a manner similar to a pooling of interests with the assets and liabilities of the Global Markets carried over at their historical amounts. Therefore, the accompanying combined financial statements include the assets, liabilities, revenue, expenses, and cash flows that are directly attributable to the Group for all periods presented and have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented.

The Group's combined statements of comprehensive income include all revenues, costs and expenses directly attributable to the Global Markets, including those expenses incurred by the Parent and its subsidiaries, but not solely relating to the Global Markets, reflecting allocations of shared expenses from the Parent to the Group. These allocated expenses primarily relate to costs incurred on support functions that historically have been borne by the Parent, such as payroll expenses and other expenditures for research and development, office rental expenses, office utilities, information technology support and certain corporate functions including senior management, finance, legal and human resources and other shared expenses. The allocations were made on a direct usage basis when identifiable, while the remainder were allocated using applicable cost drivers where specific identification was not determinable. These allocations were made on a basis considered reasonable by management but may differ from actual costs which would have been incurred if the Group operated independently during the periods presented. The following table set forth the expenses allocated from the Parent for the years ended December 31, 2023 and 2024.

---

| | | |
|:---|:---|:---|
|  | **For the years ended**<br>**December 31,** | **For the years ended**<br>**December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Research and development expenses | 7707 | 3999 |
|  Selling and marketing expenses | 5963 | 6304 |
|  General and administrative expenses | 2177 | 5469 |
|  Interest expense | 1177 | 6341 |
|  Cost of revenues | 3215 | 4060 |
|  **Total** | **20239** | **26173** |

---

Prior to the restructuring, the Parent allocated cash proceeds from debt and equity financing on an as-needed basis between the Global Markets and the Parent's other subsidiaries. As a result, the Group's historical financial

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**1. Organization and principal activities (continued)** 

information may not be indicative of future results of operations, financial position, shareholders' equity and cash flows had the Group operated as a stand-alone entity and contracted at arm's length with unrelated parties for funding.

As of December 31, 2024, the Company's principal subsidiaries are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Entity** | **Date of<br>incorporation** | **Place of<br>incorporation** | **Percentage**<br>**of legal ownership**<br>**by the Company** | **Principal<br>activities** |
|  Leoch International Holding Pte. Limited | April 21, 2011 | Singapore | 100% | Investment holding |
|  Leoch Battery Pte. Ltd. | April 5, 2010 | Singapore | 100% | Sale of lead-acid batteries |
|  Leoch Battery Corporation | June 17, 2003 | United States | 100% | Sale of lead-acid batteries |
|  Energymax Power (M) Sdn Bhd | July 10, 2016 | Malaysia | 51% | Manufacture and sale of<br>lead-acid batteries |
|  Leoch Super Power (Vietnam) Limited | September 29, 2017 | Vietnam | 100% | Manufacture and sale of<br>lead-acid batteries |
|  Leoch Battery (Vietnam) Limited | September 29, 2017 | Vietnam | 100% | Manufacture and sale of<br>lead-acid batteries |

---

**2. Summary of Significant Accounting Policies** 

***Basis of presentation***

Management has not historically prepared standalone financial statements for the Group. The combined financial statements of the Group have been prepared in accordance with the generally accepted accounting principles of the United States ("U.S. GAAP"). There was no controlling financial interest held by the Company over the entities that comprise the Company's Global Markets for any periods presented. Hence, the Company prepared its financial statements on a combined basis which included the financial statements of the Company and those entities comprising the Global Markets. ****All significant intercompany transactions and balances have been eliminated.

***Use of estimates***

The preparation of the combined financial statements in conformity with U.S. GAAP requires the use of estimates and judgments that affect the reported amounts in the combined financial statements and accompanying notes. Significant accounting estimates reflected in the combined financial statements include allowance for credit losses of accounts receivable and incremental borrowing rates for leases. Management bases its estimates on historical experience and various other factors believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Actual results could differ from those estimates.

***Foreign currency***

The functional currency of the Company and its subsidiaries in Singapore and United States is the United States Dollar ("US$"). The functional currencies of the Company's other subsidiaries are their respective local currencies, which are determined based on the criteria of Accounting Standards Codification ("ASC") 830, *Foreign Currency Matters* ("ASC 830"). The Group's reporting currency is US$.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Foreign currency (continued)***

Transactions in currencies other than the functional currency are remeasured and recorded in the functional currency at the exchange rate prevailing on the transaction date. Monetary assets and liabilities denominated in currencies other than the functional currency are remeasured into the functional currency at the rates of exchange prevailing at the balance sheet dates. Non-monetary items that are measured in terms of historical cost in foreign currency are remeasured using the exchange rates at the dates of the initial transactions. Exchange gains and losses are recognized in the combined statements of comprehensive income during the period or year in which they occur.

The Group translates the financial statements of each entity into US$ using the exchange rate as of the balance sheet date for assets and liabilities and average exchange rate for the year for income and expense items. Translation gains and losses are recorded in accumulated other comprehensive income, as a component of shareholders' equity.

***Cash and cash equivalents***

Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Group considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents, which are unrestricted as to withdrawal or use.

***Restricted cash***

Restricted cash primarily represents deposits required by the Group's commercial banks as collateral for letters of credit. The Group presents restricted cash within the ending cash, cash equivalents and restricted cash balance on the combined statements of cash flows.

***Accounts receivable, net***

Accounts receivable, net, are stated at the invoiced amount, net of allowance for credit losses in accordance with ASC 326, *Credit Losses* ("ASC 326"). The Group records the allowance for credit losses as an offset to accounts receivable, with estimated credit losses charged to "General and administrative expenses" in the combined statements of comprehensive income. The Group estimates credit losses by reviewing accounts receivable on a collective basis where similar characteristics exist, primarily based on customer type, region and assessed credit risk based on the Group's ongoing credit evaluation and on an individual basis when the Group identifies specific customers with known disputes or collectability issues. The Group applies a migration roll rate method that considers historical collectability based on past due status, the age of the accounts receivable balances, current economic conditions, and reasonable and supportable forecasts of future economic conditions and other factors that may affect the Group's ability to collect from customers. The Group writes off accounts receivable when they are deemed uncollectible. There was no write off in any periods presented.

***Inventories, net***

Inventories consist of raw materials, work in progress and finished goods which are stated at the lower of cost and net realizable value. Cost of inventories is determined using the weighted average cost method. Adjustments to reduce the cost of inventory to its net realizable value are made, if required, for decreases in sales price, obsolescence, or similar reductions in the estimated net realizable value, and are recorded in cost of revenues.

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**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Property and equipment, net***

Property and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

---

| | |
|:---|:---|
| **Category** | **Estimated Useful Life** |
|  Buildings | 20 - 50 years |
|  Plant and machinery | 5 - 10 years |
|  Office equipment | 3 - 10 years |
|  Motor vehicles | 4 - 5 years |
|  Tooling and equipment | 3 - 10 years |

---

Costs related to construction of property and equipment incurred before the assets are ready for their intended use are capitalized as construction in progress. Construction in progress is transferred to specific property and equipment items and depreciation of these assets commences when they are ready for their intended use. Expenditures for repair and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from their respective accounts, and any gain or loss on such sale or disposal is reflected in the combined statements of comprehensive income.

***Intangible assets, net***

Intangible assets with finite lives are carried at cost less accumulated amortization. Intangible assets represent computer software, trademarks and customer relationships acquired in a business combination. The cost of the trademarks and customer relationships were measured at their fair value on at the acquisition date. All intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives.

Intangible assets that have indefinite useful lives primarily include land use rights in Malaysia and Mexico. The Company evaluates indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, the asset is tested for impairment.

The estimated useful lives of intangible assets are as follows:

---

| | |
|:---|:---|
| **Category** | **Estimated Useful Life** |
|  Land use rights | Indefinite |
|  Computer software | 10 years |
|  Trademarks | 8 years |
|  Customer relationships | 10 years |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Intangible assets, net (continued)***

Estimated amortization expense relating to the existing intangible assets with finite lives for each of the next five years is as follows:

---

| | |
|:---|:---|
|  | **US$** |
|  For the year ending December 31, 2025 | 290 |
| 2026 | 290 |
| 2027 | 290 |
| 2028 | 290 |
| 2029 | 290 |

---

Residual values are considered nil.

***Impairment of long-lived assets and intangible assets with definite lives (other than goodwill)***

The Group evaluates long-lived assets including property and equipment, operating right-of-use assets and intangible assets, whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable in accordance with ASC 360, *Property, Plant and Equipment* ("ASC 360"). When such events occur, the Group assesses the recoverability of the asset group by determining whether or not the carrying amounts of the asset group will be recovered through the undiscounted future cash flows expected to be generated from their use and eventual disposition. If the sum of the expected undiscounted cash flow is less than the carrying amount of the asset group, the Group recognizes an impairment loss based on the excess of the carrying amount of the asset groups over their estimated fair value.

No impairment loss was recognized for any period presented.

***Revenue recognition***

The Group's revenues are derived principally from sales of various battery products to customers. Those sales predominantly contain a single performance obligation and revenue is recognized at a single point in time when ownership, risks and rewards transfer to the customer, which can be either the shipping or delivery date.

Revenues are recognized when control of promised goods is transferred to the Group's customers in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods net of value-added tax ("VAT").

***Customer deposits***

The Group records a contract liability, which is presented as "Customer deposits" in the combined balance sheets when it receives payments prior to delivery of goods to customers. The Company recognizes these contract liabilities as revenue after the revenue recognition criteria are met. Customer deposits was US$10,646 and US$13,680 as of December 31, 2023 and 2024, respectively. Revenue recognized from the prior year customer deposit balance during the years ended December 31, 2023 and 2024 was US$8,852 and US$10,646, respectively.

All the amounts of transaction prices allocated to the remaining performance obligations are expected to be recognized as revenue within one year.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Warranty Liability***

The Group provides guarantees that products sold to customers will meet the published or agreed upon specification and considers these guarantees as assurance-type warranties. The warranty period range from six to twelve months. Products that do not meet specifications are replaced at no charge to the customer. The Group had no significant warranty claims based on its historical experience. The Group recorded warranty liabilities of US$3,039 and US$5,121 as of December 31, 2023 and 2024, respectively, which were included in accrued liabilities and other current liabilities in the combined balance sheets.

***Costs of revenues***

Cost of revenues consists primarily of materials, labor costs and manufacturing overheads (including depreciation of assets associated with production). Cost of revenues also includes charges to write-down the carrying value of the inventories when it exceeds its estimated net realizable value and to provide for on-hand inventories that are either obsolete or in excess of forecasted demand. Cost of revenues are expensed as incurred when the corresponding goods have been provided.

***Research and development expenses***

Research and development expenses are primarily employee compensation and related costs incurred in the development and enhancement of new product and technology.

***Borrowing Costs***

Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized and amortized over the useful life of the corresponding assets.

All other borrowing costs are expensed when incurred.

***Leases***

The Group leases office space and equipment. The Group's offices and facility leases generally have lease terms between 1 to 9 years. The Group's lease agreements are with fixed lease payments and do not contain variable lease payments or material residual value guarantees. The Group's leases do not contain restrictions or covenants that restrict the Group from incurring other financial obligation.

The Group follows ASC 842, *Leases* ("ASC 842") to account for its leases. The Group classifies leases as operating or financing lease at inception in accordance with the recognition criteria in ASC 842. The Group classifies a lease as a finance lease if the lease meets any one of the following criteria: a) the leases transfers ownership of the underlying asset to the lessee by the end of the lease term, b) the leases grants the lessee an option to purchase the underlying asset that the lessee is reasonably certain to exercise, c) the lease term is for a major part of the remaining economic life of the underlying asset, d) the present value of the sum of the lease payments and any residual value guaranteed by the lessee that is not already included in the lease payments equals or exceeds substantially all of the fair value of the underlying asset or e) the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of the lease term. The Group's lease portfolio consists entirely of operating leases as of December 31, 2023 and 2024.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Leases (continued)***

The Group recognizes a right-of-use ("ROU") asset at the amount of the lease liabilities adjusted for cumulative prepayments and lease incentives, if any. Lease liability is recognized at the present value of the lease payments over the lease term. Lease expense is recorded on a straight-line basis over the lease term. As the Group's leases do not provide an implicit rate, the Group estimates its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. In estimating its incremental borrowing rate, the Group considers its credit rating, nature of underlying asset, publicly available data of borrowing rates for loans of similar amount, currency and term as the lease. The Group exempts short-term leases of 12 months or less from balance sheet recognition requirements associated with ASC 842 and recognizes fixed rental payments for these short-term leases as a straight-line expense over the lease term.

The Group owns land use rights in Vietnam for a specified period of time stated in the land use right certificates. Land use rights represent operating leases in accordance with ASC 842. The purchase price of land use rights represents lease prepayments and is recorded as ROU asset in the combined balance sheet and amortized using the straight-line method over the estimated useful lives of 47 years.

***Advertising expenses***

Advertising expenses, including promotion expenses, are charged to "selling and marketing expenses" as incurred. Advertising expenses amounted to US$2,017, and US$1,873 for the years ended December 31, 2023 and 2024, respectively.

***Income taxes***

The Group accounts for income taxes using the liability approach and recognizes deferred tax assets and liabilities for the expected future consequences of events that have been recognized in the combined financial statements or in the Group's tax returns. Deferred tax assets and liabilities are recognized on the basis of the temporary differences that exist between the tax basis of assets and liabilities and their reported amounts in the combined financial statements using enacted tax rates in effect for the year end in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in earnings. Deferred tax assets are reduced by a valuation allowance through a charge to income tax expense when, in the opinion of management, it is more-likely-than-not that a portion of or all of the deferred tax assets will not be realized. The Group evaluates the potential for recovery of deferred tax assets by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. The components of the deferred tax assets and liabilities are classified as non-current.

The Group accounts for uncertainty in income taxes recognized in the combined financial statements by applying a two-step process to determine the amount of the benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more-likely-than-not to be sustained (defined as a likelihood of more than fifty percent of being sustained upon an audit, based on the technical merits of the tax position), the tax position is then assessed to determine the amount of benefits to recognize in the combined financial statements. Tax positions that meet the "more likely than not" recognition threshold are measured, using a cumulative probability approach, at the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon settlement. Interest and penalties on income taxes will be classified as a component of the provisions for income taxes.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Income taxes (continued)***

The Group evaluated its income tax uncertainty under ASC 740, *Income taxes* ("ASC 740"). ASC 740 clarifies the accounting for uncertainty in income taxes by prescribing the recognition threshold a tax position is required to meet before being recognized in the financial statements. The Group elects to classify interest and penalties related to an uncertain tax position, if and when required, as part of income tax expense in the combined statements of comprehensive income.

***Fair value measurements***

ASC 820-10, *Fair Value Measurements and Disclosures: Overall*, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace

Level 3 — Unobservable inputs which are supported by little or no market activity

ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivables, other receivables within prepayments and other current assets, balances with related parties, interest-bearing bank loans, accounts payable, and other payables with accrued liabilities and other current liabilities, approximate their fair values because of the short maturity of these instruments. Derivative instruments are stated at fair value on a recurring basis.

The Group did not transfer any assets or liabilities in or out of Level 3 during the years ended December 31, 2023 and 2024. There were no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2023 and 2024.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Fair value measurements (continued)***

The following tables summarize the Group's financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2023 and 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value measurements at December 31, 2023 using** | **Fair value measurements at December 31, 2023 using** | **Fair value measurements at December 31, 2023 using** | **Fair value measurements at December 31, 2023 using** |
|  | **Quoted prices in<br>active market for<br>identical assets**<br>**(Level 1)** | **Significant other<br>observable inputs**<br>**(Level 2)** | **Significant<br>unobservable<br>inputs**<br>**(Level 3)** | **Total** |
|  Derivative assets |  | 152 |  | 152 |
|  | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** |
|  | **Quoted prices in<br>active market for<br>identical assets**<br>**(Level 1)** | **Significant other<br>observable inputs**<br>**(Level 2)** | **Significant<br>unobservable<br>inputs**<br>**(Level 3)** | **Total** |
|  Derivative assets |  | 66 |  | 66 |

---

***Derivatives***

ASC 815, *Derivatives and Hedging* ("ASC 815") requires all contracts that meet the definition of a derivative to be recognized on the balance sheet as either assets or liabilities and recorded at fair value. The Group's derivative assets represent commodity future and option contracts that do not qualify for hedge accounting in accordance with ASC 815. As there is no initial cost associated with the derivative, the net unrealized gain/(loss) represents the derivative's fair value which is classified as prepayments and other current assets within the combined balance sheets. Changes in fair value of derivative assets and derivative liabilities resulted in a gain of US$992 and US$125 for the years ended December 31, 2023 and 2024, respectively, and are recognized in "others, net" in the combined statements of comprehensive income.

***Comprehensive income***

Comprehensive income is defined as the changes in equity of the Group during the year from transactions and other events and circumstances excluding transactions resulting from investments by owners and distributions to owners. Accumulated other comprehensive loss of the Group includes the foreign currency translation adjustments.

***Earnings per share***

In accordance with ASC 260, *Earnings Per Share*, basic earnings per share is computed by dividing net income attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is calculated by dividing net income attributable to ordinary shareholders, as adjusted for the effect of dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the period. Ordinary equivalent shares include ordinary shares issuable upon the exercise of share options, using the treasury stock method. Ordinary share equivalents are excluded from the computation of diluted earnings per share if their effects are anti-dilutive.

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**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Concentration of risks***

*Concentration of credit risk* 

Financial assets that potentially expose the Group to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, accounts receivable, amounts due from related parties

The Group places its cash and cash equivalents and restricted cash with reputable financial institutions which have high-credit ratings. As of December 31, 2023 and 2024, the aggregate amount of cash and cash equivalents and restricted cash of US$20,810 and US$15,089 respectively, were held at major financial institutions located in Singapore, and US$10,689 and US$9,271 respectively, were deposited with major financial institutions located outside of Singapore. The Group continues to monitor the financial strength of the financial institutions. The Group regularly monitors the ratings of the financial institutions to avoid any potential defaults. There has been no recent history of default in relation to these financial institutions.

Accounts receivable are typically unsecured and derived from revenue earned from customers, which are exposed to credit risk. The Group mitigates customer credit risk by performing periodic credit evaluations on its customers and ongoing monitoring of outstanding balances. The Group maintains reserves for estimated credit losses and these losses have generally been within its expectations. The Group did not have any customers with receivable balance exceeding 10% of the total accounts receivable balance as of December 31, 2023 and 2024. No single customer generated more than 10% of total revenues for the years ended December 31, 2023 and 2024, respectively.

Amounts due from related parties are typically unsecured. In evaluating the collectability of the amounts due from related parties, the Group considers many factors, including the related parties' repayment history and their creditworthiness. An allowance for credit losses is made when collection of the full amount is no longer probable.

*Concentration of suppliers* 

A significant portion of the Group's inventories were purchased from two suppliers, one of which is the Parent group (Note 14), who collectively accounted for 79% and 81% of the Group's total inventories purchases for the years ended December 31, 2023 and 2024, respectively. A significant interruption by these suppliers in the delivery of inventories could impair the Group's ability to deliver the products and could materially adversely impact its combined statements of comprehensive income and combined statements of financial position. The Group minimizes such risk by introducing alternative suppliers to ensure a constant supply.

*Business and economic risk* 

The Group believes that changes in any of the following areas could have a material adverse effect on the Group's future combined financial position, results of operations or cash flows: changes in the overall demand for its products; competitive pressures due to new entrants; trade relationships, advances and new trends in new technologies and industry standards; changes in certain strategic relationships; regulatory considerations and risks associated with the Group's ability to attract employees necessary to support its growth. The Company's operations could also be adversely affected by significant political, regulatory, economic and social uncertainties in the EMEA, Americas and Asia-Pacific regions.

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**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Recently issued accounting pronouncements***

The Company is an emerging growth company ("EGC") as defined by the Jumpstart Our Business Startups Act ("JOBS Act"). The JOBS Act provides that an EGC can take advantage of extended transition periods for complying with new or revised accounting standards. This allows an EGC to delay adoption of certain accounting standards until those standards would otherwise apply to private companies. The Group elected to take advantage of the extended transition periods. However, this election will not apply should the Group cease to be classified as an EGC.

In December 2023 the FASB issued ASU No. 2023-09 — *Income tax: Improvements to Income Tax Disclosures* ("ASU 2023-09"). ASU 2023-09 requires public business entities to disclose additional categories of information about federal, state and foreign income taxes in their rate reconciliation and disclose, annually, income taxes paid by federal (national), state and foreign taxes. ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024 and annual periods beginning after December 15, 2025 for all other entities. Early adoption is permitted. The Group is currently evaluating the impact of this new standard on its combined financial statements.

In December 2024, the FASB issued ASU No. 2024-03: *Disaggregation of Income Statement Expenses* ("ASU 2024-03"), which requires additional disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. This ASU should be applied prospectively with the option to apply the standard retrospectively. Early adoption is permitted. The Group is currently evaluating the impact of this new standard on its combined financial statements.

**3. Segment reporting** 

The Company adopted ASU No. 2023-07, "Improvements to Reportable Segment Disclosures" ("ASC Topic 280") in the year ended December 31, 2024, which establishes standards for companies to report in their financial statements information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise engaging in businesses activities for which separate financial information is available that is regularly evaluated by the Group's chief operating decision makers ("CODM") in deciding how to allocate resources and assess performance. The Group's chief operating decision maker ("CODM") is the Chief Executive Officer, who makes resource allocation decisions and assesses performance based on the combined financial results. As a result, the Group has only one reportable segment and one operating segment.

The primary measure of segment profitability for the Company's operating segment is combined net income. Combined net income is used by the CODM to drive decisions, allocate resources and assess performance. The significant segment expense reviewed by the CODM on a regular basis within combined net income includes cost of revenues, which is separately presented on the Company's combined statements of comprehensive income. Other segment items within combined net income include research and development expenses, selling and marketing expenses, general and administrative expenses, interest income (expense), foreign exchange gain (loss), other income (expense) and income tax expenses.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**3. Segment reporting (continued)** 

*Geographic information* 

The analysis of the total long-lived assets excluding deferred tax assets, related party balances and goodwill by geographic area was as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Americas | 3071 | 37668 |
|  EMEA | 2531 | 2089 |
|  Asia-Pacific | 66606 | 76634 |
|  | **72208** | **116391** |

---

Total revenues by geographic area are presented as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Americas | 295460 | 353013 |
|  EMEA and others | 256317 | 343192 |
|  Asia-Pacific | 143207 | 174136 |
|  | **694984** | **870341** |

---

**4. Accounts receivable, net** 

Accounts receivable and allowance for credit losses as of December 31, 2023 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Accounts receivable | 178864 | 193030 |
|  Less: allowance for credit losses | (4924) | (5690) |
|  **Accounts receivable, net** | **173940** | **187340** |

---

The following table presents the movement in the allowance for credit losses:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Balance at the beginning of the year | 4246 | 4924 |
|  Provisions | 668 | 774 |
|  Write off |  |  |
|  Translation adjustments | 10 | (8) |
|  **Balance at the end of the year** | **4924** | **5690** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**5. Inventories, net** 

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Raw materials | 9562 | 15475 |
|  Work in progress | 24192 | 34569 |
|  Finished goods | 77313 | 61892 |
|  **Total** | **111067** | **111936** |

---

**6. Prepayments and other current assets** 

Prepayments and other current assets consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **Notes** | **As of December 31,** | **As of December 31,** |
|  | | **2023** | **2024** |
|  | | **US$** | **US$** |
|  Prepayments for materials | (i) | 82754 | 103437 |
|  Deductible input VAT |  | 1606 | 4447 |
|  Deposits and guarantees |  | 1013 | 2025 |
|  Others |  | 1356 | 3010 |
|  **Total** |  | **86729** | **112919** |

---

(i) Balance includes prepayments of US$69,892 and US$97,345 to Parent group as of December 31, 2023 and 2024,
respectively.

**7. Property and equipment, net** 

Property and equipment consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Buildings | 22990 | 23255 |
|  Plant and machinery | 55255 | 70645 |
|  Office equipment | 1022 | 1313 |
|  Motor vehicles | 1114 | 1464 |
|  Tooling and equipment | 1424 | 1601 |
|  Construction in progress | 3343 | 30994 |
|  Less: Accumulated depreciation | (34219) | (41167) |
|  **Property and equipment, net** | **50929** | **88105** |

---

Depreciation expense recognized for the years ended December 31, 2023 and 2024 were US$6,723 and US$7,573, respectively.

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**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**8. Lease** 

As of December 31, 2023 and 2024, the weighted average remaining lease term for the Group's operating leases were 14.75 years and 11 years, respectively, and the corresponding weighted average discount rates were 4.34% and 4.71%, respectively.

The components of lease cost were as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended**<br>**December 31,** | **For the years ended**<br>**December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Operating lease cost | 1954 | 3308 |
|  Short-term lease cost | 1935 | 1050 |
|  **Total lease cost** | **3889** | **4358** |

---

Supplemental cash flow information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended**<br>**December 31,** | **For the years ended**<br>**December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Cash payments for operating leases | 1923 | 3151 |
|  ROU assets obtained in exchange for operating lease liabilities | 1953 | 7829 |

---

Future lease payments under operating leases as of December 31, 2024 were as follows:

---

| | |
|:---|:---|
|  | **Operating leases** |
|  | **US$** |
|  Years ending December 31, |  |
| 2025 | 2960 |
| 2026 | 2719 |
| 2027 | 2498 |
| 2028 | 1935 |
| 2029 | 1433 |
|  Thereafter | 1035 |
|  **Total future lease payments** | **12580** |
|  Less: imputed interest | (1260) |
|  **Total lease liability balance** | **11320** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**9. Other non-current assets** 

Other non-current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Prepayments for land and machinery | 10587 | 7223 |
|  Others |  | 758 |
|  | **10587** | **7981** |

---

**10. Borrowings** 

The following table presents short-term borrowings as of December 31, 2023 and 2024. Short-term borrowings include borrowings with total terms shorter than one year and the current portion of the long-term borrowings:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **As of December 31,** | **As of December 31,** |
|  |  | **2023** | **2024** |
|  |  | **US$** | **US$** |
|  **Current** |  |  |  |
|  Short-term borrowings: |  |  |  |
|  Interest-bearing bank borrowings, secured | (2) | 4779 | 4744 |
|  Factoring arrangements | (3) | 20217 | 27703 |
|  Interest-bearing bank borrowings, guaranteed | (4) | 23765 | 17032 |
|  Current portion of long-term borrowings, secured | (1) | 230 | 230 |
|  Current portion of long-term borrowings, guaranteed | (4) | 809 | 568 |
|  **Total current borrowings** |  | **49800** | **50277** |
|  **Non-Current** |  |  |  |
|  Long-term borrowings: |  |  |  |
|  Interest-bearing bank borrowings, secured | (1) | 1011 | 501 |
|  Interest-bearing bank borrowings, guaranteed | (4) | 531 | 92 |
|  **Total non-current borrowings** |  | **1542** | **593** |
|  **Total borrowings** |  | **51342** | **50870** |

---

(1) The Group had an outstanding mortgage loan of US$1,241 and US$731 as of December 31, 2023 and 2024,
respectively, bearing an interest rate of 5%, and maturing on March 28, 2028. The loan was secured by an office in Singapore, which had a net carrying amount of approximately US$2,563 and US$2,255 as of December 31, 2023 and December 31,
2024, respectively.

(2) As of December 31, 2023 and 2024, the group had an outstanding import invoice financing of US$4,779 and
US$4,744, respectively, bearing an average interest rate of 8.3%. The loan was secured by the Group's properties in Malaysia, which had a net carrying amount of approximately US$4,777 and US$4,757 as of December 31, 2023 and December 31,
2024, respectively.

(3) Balance represents short-term loans secured by certain accounts receivable with and amount of US$25,271 and
US$38,299 as of December 31, 2023 and 2024, respectively. The loans are guaranteed by the Parent and Leoch Power Supply (HK) Ltd, a subsidiary of the Parent.

(4) The bank loans were guaranteed by the Parent.

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**10. Borrowings (continued)** 

Payments for short-term and long-term borrowings are due at the end of their respective maturities. The weighted average interest rate for the outstanding borrowings was approximately 5.45% and 5.25% as of December 31, 2023 and 2024, respectively.

Interest expense related to the loans of US$3,290 and US$2,805 are recognized in "Interest expense" in the combined statements of comprehensive income for the years ended December 31, 2023 and 2024, respectively.

The following table sets forth the contractual obligations which has not included impact of discount of time value as of December 31, 2023 and 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | | | **Payment due by period** | **Payment due by period** | **Payment due by period** | **Payment due by period** |
|  |<br>**Less<br>than**<br>**1 year** |<br>**1 – 2 years** | **2 – 3 years** | **3 – 4years** | **4 – 5 years** | **Total** |
|  **As of December 31, 2023** |  |  |  |  |  |  |
|  Long-term borrowings and Interest payables | 1092 | 761 | 367 | 249 | 238 | 2707 |
|  **As of December 31, 2024** |  |  |  |  |  |  |
|  Long-term borrowings and Interest payables | 744 | 352 | 249 | 238 |  | 1583 |

---

**11. Income taxes** 

*Cayman Islands* 

Under the current tax laws of Cayman Islands, the Company is not subject to tax on income or capital gains. Besides, upon payment of dividends by the Company to its shareholders, no Cayman Islands withholding tax will be imposed.

*Singapore* 

Under the Singapore tax laws, the subsidiary in Singapore is subject to 17% income tax rate on any taxable income accruing in or derived from Singapore, or received in Singapore from outside Singapore.

*United States* 

As a result of the United States tax law amendments, the federal statutory income tax rate for the subsidiary in the US is 21% for the year ended December 31, 2024. The subsidiary in the US was incorporated in the state of California, and is also subject to state income tax at a blended rate of approximately 5.6% for the year ended December 31, 2024.

*Vietnam* 

Under the Vietnam tax laws, the subsidiary in Vietnam is subject to 20% income tax rate on any taxable income.

*Malaysia* 

Under the Income Tax Act of Malaysia, the subsidiary in Malaysia is subject to 24% income tax rate any taxable income.

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**11. Income taxes (continued)** 

The Company's profit before income taxes consist of:

---

| | | |
|:---|:---|:---|
|  | **For the years ended<br>December 31,** | **For the years ended<br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Singapore | 32627 | 37073 |
|  Others | 16714 | 16238 |
|  **Total profit before income taxes** | **49341** | **53311** |

---

*Composition of income tax expense* 

The current and deferred portions of income tax expense included in the combined statements of comprehensive loss are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended<br>December 31,** | **For the years ended<br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Current income tax expense | 9801 | 17769 |
|  Deferred tax benefit | (729) | (1672) |
|  **Total income tax expense** | **9072** | **16097** |

---

*Reconciliation between expenses of income taxes* 

Reconciliation between the expense of income taxes computed by applying the statutory tax rate to profit before income taxes and the actual provision for income taxes is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended<br>December 31,** | **For the years ended<br>December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Profit before income tax | 49341 | 53311 |
|  Income tax expense computed at the statutory tax rate | 8388 | 9063 |
|  International tax rate differential | 1050 | 1241 |
|  Preferential tax rate | (3967) | (1670) |
|  Non-taxable income |  | (120) |
|  Non-deductible expenses | 3863 | 4865 |
|  Deferred taxes |  | 123 |
|  Interest and penalty | 216 | 905 |
|  Changes in valuation allowance | (478) | 1690 |
|  **Income tax expense** | **9072** | **16097** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**11. Income taxes (continued)** 

*Deferred tax assets and liabilities* 

The tax effects of temporary differences that give rise to the deferred tax balances as of December 31, 2023 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  **Deferred tax assets** |  |  |
|  Provision for credit losses | 1040 | 1153 |
|  Unrealized foreign exchange | 138 | 1201 |
|  Lease liabilities | 1189 | 2750 |
|  Tax losses | 776 | 2707 |
|  Accrued expenses |  | 817 |
|  Others | 93 | 302 |
|  Less: Valuation allowance | (555) | (2245) |
|  **Total deferred tax assets** | **2681** | **6685** |
|  **Deferred tax liabilities** |  |  |
|  Property and equipment depreciation | 39 | 971 |
|  Operating lease right-of-use assets | 1152 | 2674 |
|  Fair value adjustments arising from acquisition of subsidiaries | 470 | 400 |
|  **Total deferred tax liabilities** | **1661** | **4045** |
|  **Net deferred tax assets** | **1529** | **4011** |
|  **Net deferred tax liabilities** | **509** | **1371** |

---

As of December 31, 2024, the Group had tax losses of approximately US$9,947 derived mainly from entities in the Sri Lanka and France. The tax losses in Sri Lanka can be carried forward for six years to offset future taxable profit. The tax losses in Sri Lanka will expire from 2024 to 2029, if not utilized. The tax losses in France can be carried forward indefinitely.

The Company did not provide for deferred taxes and foreign withholding taxes on the undistributed earnings of foreign subsidiaries during the years presented on the basis of its current intent to permanently reinvest its foreign subsidiaries' earnings. As of December 31, 2024, the total amount of undistributed earnings from the foreign subsidiaries for which no withholding tax has been accrued was US$15,603. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable.

The Company operates through its subsidiaries and evaluates the potential realization of deferred tax assets on an entity basis. The Company recorded valuation allowance against deferred tax assets of those entities that were in a three-year cumulative financial loss and are not forecasting profits in the near future as of December 31, 2023 and 2024. In making such determination, the Company also evaluated a variety of factors including the Company's operating history, accumulated deficit, existence of taxable temporary differences and reversal periods.

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**11. Income taxes (continued)** 

*Unrecognized tax position* 

As of December 31, 2023 and 2024, the Company recorded an unrecognized tax position of US$2,114 and US$5,691, respectively. It is possible that the amount of uncertain tax position will change in the next twelve months; however, an estimate of the range of the possible outcomes cannot be made at this moment. As of December 31, 2023 and 2024, unrecognized tax benefits of US$2,012 and US$4,264, if ultimately recognized, will impact the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax position was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  Balance at beginning of the year | 1492 | 2114 |
|  Additions | 622 | 3999 |
|  Reversal |  | (422) |
|  Balance at end of the year | **2114** | **5691** |

---

The Company records interest and penalties as part of its income tax expense. For the year ended December 31, 2023, the Company recorded US$216 (December 31, 2024: US$905) of interest expense and penalties in relation to the unrecognized tax benefit into income tax expense. The accumulated interest expense and penalties accrued in relation to the unrecognized tax position is US$1,434 as of December 31, 2024.

In general, the Singapore tax authorities have up to four years to conduct examinations of the tax filings of the Company's Singapore subsidiaries. Accordingly, the Singapore tax filings from 2020 through 2024 remain open to examination by the respective tax authorities. The Group may also be subject to examinations of tax filings in other jurisdictions for years between 2014 through 2024.

**12. Commitments and contingencies** 

*Capital commitments* 

The Group's capital commitments primarily relate to the expansion and improvement of its Mexico battery plant. Total capital commitments contracted but not yet reflected in the financial statements amounted to US$12,537 and US$24,635 as of December 31, 2023 and 2024, respectively.

*Contingencies* 

The Group is subject to contingencies in the normal course of business, such as legal proceedings and claims arising out of its business. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group's business, financial position or results of operations.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**13. Ordinary shares** 

As of date of submission, the Company had one issued common share owned by the Parent. The holder of the Company's ordinary share is entitled to one vote per share on all matters submitted to a vote of the shareholders for the Company.

**14. Related party transactions** 

The table below sets forth the major related parties and their relationships with the Company:

---

| | |
|:---|:---|
| **Name of related parties** | **Relationship** |
| Dr. Dong Li | Founder, chief executive officer and sole executive director |
| Parent group | Subsidiaries controlled by the Parent. |

---

Details of related party balances as of December 31, 2023 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  **Amounts due from related parties, current** |  |  |
|  Parent group<br> (i) | 5594 | 16685 |
|  Related companies owned by the Founder<br> (ii) | 808 | 2769 |
|  **Total** | **6402** | **19454** |
|  **Amounts due from related parties, non-current** |  |  |
|  Parent group<br> (iii) | 180990 | 168483 |
|  **Total** | **187392** | **187937** |
|  **Amounts due to related parties, current** |  |  |
|  Parent group<br> (iv) | 302619 | 273273 |
|  **Amounts due to related parties, non-current** |  |  |
|  Parent group<br> (v) | 52990 | 80989 |
|  **Total** | **355609** | **354262** |

---

(i) Balance represent amounts due from products sold to entities within the Parent group.

(ii) Balance represent amounts due from products sold to related parties controlled by the Founder.

(iii) Balance represent non-trade interest-free loans lent to entities within the Parent group.

(iv) Balance represent amounts arising from trade payables due to entities within the Parent group.

(v) Balance represent non-trade interest-free loans due to entities within the Parent group.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**14. Related party transactions (continued)** 

Details of related party transactions for the years ended December 31, 2023 and 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2023** | **2024** |
|  | **US$** | **US$** |
|  **Sales of products to related companies** |  |  |
|  Related companies controlled by the Founder | 2161 | 3075 |
|  Parent group | 2599 | 12986 |
|  | **4760** | **16061** |
|  **Purchases of raw materials from related companies** |  |  |
|  Parent group | **381565** | **476868** |
|  **Purchases of equipment from related companies** |  |  |
|  Parent group | **—** | **3718** |

---

The purchases of raw materials from fellow subsidiaries and sales of products to the related companies controlled by the Founder were made according to prices mutually agreed between the two parties.

All other related party transactions are disclosed in the footnotes herein.

**15. Subsequent events** 

The subsequent events have been evaluated through September 29, 2025, the date the combined financial statements are issued.

On March 10, 2025, the Group declared a dividend of US$116,330 to its sole shareholder, the Parent. The dividend payable will be offset against the amounts due from related parties, non-current.

On March 14, 2025, the Company signed the Sale and Purchase Agreement with the Parent, pursuant to which it agreed to purchase the Global Markets business in exchange for a total consideration of US$38.7 million. The Purchase Consideration will be recorded as a non-cash contribution to parent in the Company's Combined and Consolidated Statements of Shareholders' Equity and will be offset against the amounts due from related parties, non-current.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEETS** 

**AS OF DECEMBER 31, 2024 AND JUNE 30, 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **As of December 31,**<br>**2024** | **As of June 30,**<br>**2025** |
|  | **Notes** | **(Audited)** | **(Unaudited)** |
|  |  | **US$** | **US$** |
|  **ASSETS** |  |  |  |
|  **Current assets:** |  |  |  |
|  Cash and cash equivalents |  | 22126 | 24053 |
|  Restricted cash |  | 2234 | 4015 |
|  Accounts receivable, net | 4 | 187340 | 247632 |
|  Inventories, net | 5 | 111936 | 125788 |
|  Amounts due from related parties | 11 | 19454 | 27723 |
|  Prepayments and other current assets | 6 | 112919 | 56629 |
|  **Total current assets** |  | **456009** | **485840** |
|  **Non-current assets:** |  |  |  |
|  Property and equipment, net |  | 88105 | 126755 |
|  Intangible assets, net |  | 7044 | 7567 |
|  Goodwill |  | 246 | 331 |
|  Operating right-of-use assets |  | 13261 | 25161 |
|  Deferred tax assets |  | 4011 | 4621 |
|  Amounts due from related parties | 11 | 168483 | 16085 |
|  Other non-current assets | 7 | 7981 | 15557 |
|  **Total non-current assets** |  | **289131** | **196077** |
|  **Total assets** |  | **745140** | **681917** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |  |
|  **Current liabilities:** |  |  |  |
|  Accounts payable |  | 16413 | 20957 |
|  Customer deposits |  | 13680 | 9737 |
|  Short-term loans |  | 50277 | 64933 |
|  Accrued liabilities and other current liabilities |  | 13676 | 19172 |
|  Current portion of operating lease liabilities |  | 2638 | 4072 |
|  Amounts due to related parties | 11 | 273273 | 375117 |
|  Income tax payable |  | 23365 | 27306 |
|  **Total current liabilities** |  | **393322** | **521294** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED BALANCE SHEETS (continued)** 

**AS OF DECEMBER 31, 2024 AND JUNE 30, 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **As of December 31,**<br>**2024** | **As of June 30,**<br>**2025** |
|  | **Notes** | **(Audited)** | **(Unaudited)** |
|  |  | **US$** | **US$** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY (CONTINUED)** |  |  |  |
|  **Non-current liabilities:** |  |  |  |
|  Amounts due to related parties | 11 | 80989 |  |
|  Long-term loans |  | 593 | 490 |
|  Non-current portion of operating lease liabilities |  | 8682 | 19225 |
|  Deferred tax liabilities |  | 1371 | 1456 |
|  **Total non-current liabilities** |  | **91635** | **21171** |
|  **Total liabilities** |  | **484957** | **542465** |
|  **Commitments and contingencies** | 9 |  |  |
|  **Shareholders' equity:** |  |  |  |
|  Ordinary shares (par value of US$0.000005 per share as of date of submission; 10,000,000,000 shares authorized, 1 share issued and outstanding as of December 31, 2024 and June 30, 2025) | 10 |  |  |
|  Additional paid-in capital |  | 55662 | 30010 |
|  Retained earnings |  | 204561 | 109450 |
|  Accumulated other comprehensive loss |  | (3619) | (1287) |
|  **Total Leoch Energy Inc's shareholders' equity** |  | **256604** | **138173** |
|  Noncontrolling interests |  | 3579 | 1279 |
|  **Total shareholders' equity** |  | **260183** | **139452** |
|  **Total liabilities and shareholders' equity** |  | **745140** | **681917** |

---

The accompanying notes are an integral part of these unaudited interim condensed combined and consolidated financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  |  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  |  | **2024** | **2025** |
|  | **Notes** | **(Unaudited)** | **(Unaudited)** |
|  |  | **US$** | **US$** |
|  **Revenues** (including related party amounts of US$2,627 and US$13,422, for the six months ended June 30, 2024 and 2025, respectively) | 3, 11 | 398231 | 485059 |
|  **Cost of revenues** (including related party amounts of US$145,896 and US$172,273 for the six months ended June 30, 2024 and 2025, respectively) | 11 | (338411) | (423429) |
|  **Gross profit** |  | **59820** | **61630** |
|  **Operating expenses** |  |  |  |
|  Research and development expenses |  | (1514) | (2609) |
|  Selling and marketing expenses |  | (15596) | (17873) |
|  General and administrative expenses |  | (8938) | (13811) |
|  **Total operating expenses** |  | **(26048)** | **(34293)** |
|  **Income from operations** |  | **33772** | **27337** |
|  Interest income |  | 75 | 89 |
|  Interest expense |  | (4927) | (3229) |
|  Foreign exchange (loss)/gain, net |  | (4715) | 4379 |
|  Others, net |  | 52 | 870 |
|  **Income before income taxes** |  | **24257** | **29446** |
|  Income tax expenses | 8 | (8165) | (10849) |
|  **Net income** |  | **16092** | **18597** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (continued)** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | |
|:---|:---|:---|:---|
|  | | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | | **2024** | **2025** |
|  | **Notes** | **(Unaudited)** | **(Unaudited)** |
|  | | **US$** | **US$** |
|  Less: net income/(loss) attributable to noncontrolling interests |  | 598 | (2622) |
|  **Net income attributable to Leoch Energy Inc's shareholders** |  | **15494** | **21219** |
|  **Earnings per share, basic and diluted** |  | 15494 | 21219 |
|  **Weighted average shares used in computing earnings per share, basic and diluted** |  | 1 | 1 |
|  **Other comprehensive income, net of tax of nil:** |  |  |  |
|  Foreign currency translation adjustments |  | (48) | 2654 |
|  **Total comprehensive income** |  | **16044** | **21251** |
|  Less: comprehensive income/(loss) attributable to noncontrolling interests |  | 501 | (2300) |
|  **Comprehensive income attributable to Leoch Energy Inc's shareholders** |  | **15543** | **23551** |

---

The accompanying notes are an integral part of these unaudited interim condensed combined and consolidated financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | **Attributable to Leoch Energy Inc** | | |
|  | **Ordinary shares** | **Ordinary shares** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated<br>other<br>comprehensive<br>loss** | **Total** | **Non-**<br>**controlling<br>interests** | **Total<br>shareholders'<br>equity** |
|  | **Number of<br>shares** | **Amount** | **Additional<br>paid-in<br>capital** | **Retained<br>earnings** | **Accumulated<br>other<br>comprehensive<br>loss** | **Total** | **Non-**<br>**controlling<br>interests** | **Total<br>shareholders'<br>equity** |
|  | | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** | **US$** |
|  **Balance as of January 1, 2024** |  |  | **29489** | **170079** | **(529)** | **199039** | **695** | **199734** |
|  Net income |  |  |  | 15494 |  | 15494 | 598 | 16092 |
|  Contribution from the Parent<sup>(i)</sup> |  |  | 11506 |  |  | 11506 |  | 11506 |
|  Translation adjustments |  |  |  |  | 49 | 49 | (97) | (48) |
|  **Balance as of June 30, 2024 (unaudited)** |  |  | **40995** | **185573** | **(480)** | **226088** | **1196** | **227284** |
|  **Balance as of January 1, 2025** |  |  | **55662** | **204561** | **(3619)** | **256604** | **3579** | **260183** |
|  Net income |  |  |  | 21219 |  | 21219 | (2622) | 18597 |
|  Contribution from the Parent<sup>(i)</sup> |  |  | 13036 |  |  | 13036 |  | 13036 |
|  Contribution to the Parent<sup>(ii)</sup> |  |  | (38688) |  |  | (38688) |  | (38688) |
|  Dividends declared |  |  |  | (116330) |  | (116330) |  | (116330) |
|  Translation adjustments |  |  |  |  | 2332 | 2332 | 322 | 2654 |
|  **Balance as of June 30, 2025 (unaudited)** |  |  | **30010** | **109450** | **(1287)** | **138173** | **1279** | **139452** |

---

(i) Contribution from Parent represent non-cash expenses allocated from the
Parent

(ii) Contribution to Parent represent non-cash consideration paid by Leoch
Energy Inc to the Parent for the acquisition of the Overseas Business as part of the corporate reorganization (Note 1)

The accompanying notes are an integral part of these unaudited interim condensed combined and consolidated financial statements.

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  **Cash flows from operating activities:** |  |  |
|  Net income | 16092 | 18597 |
|  Adjustments to reconcile net income to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fair value gain from derivative contract | 10 | 66 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash expenses allocated from the Parent | 11506 | 13036 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation of property and equipment | 3762 | 5252 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from disposal of property and equipment |  | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash operating lease expense | 1622 | 2143 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of intangible assets | 334 | 201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | (2477) | (466) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for allowance for credit losses | 1104 | 2181 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Impairment of inventories | 192 | 280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foreign exchange loss /(gain), net | 1153 | (4617) |
|  Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (5262) | (57321) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories, net | (27602) | (11206) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other current and non-current assets | (31920) | 54274 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts due from related parties | (1507) | (8415) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts due to related parties | (47525) | 82493 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | (3481) | 4725 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | (7255) | (12999) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other payables and accruals | 5589 | 1015 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax payable | 7780 | 4066 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 4536 | 10452 |
|  **Net cash (used in)/provided by operating activities** | **(73349)** | **103786** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | |
|:---|:---|:---|
|  | **For the six-months ended June 30,** | **For the six-months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  **Cash flows from investing activities:** |  |  |
|  Purchases of property and equipment | (26354) | (23063) |
|  Prepayment for property and equipment |  | (7774) |
|  Loans provided to related parties | (39023) | (34345) |
|  Repayment of loans provided to related parties | 85110 | 31625 |
|  Purchases of intangible asset | (20) |  |
|  Proceeds from disposal of property and equipment | 634 |  |
|  **Net cash provided by/(used in) by investing activities** | **20347** | **(33557)** |
|  **Cash flows from financing activities:** |  |  |
|  Proceeds from short-term loans and long-term loans | 153273 | 116671 |
|  Loans borrowed from related parties | 43000 |  |
|  Repayment of loans borrowed from related parties |  | (80989) |
|  Repayment of short-term borrowings and long-term borrowings | (152449) | (102722) |
|  **Net cash provided by/(used in) financing activities** | **43824** | **(67040)** |
|  Effect of exchange rate on cash, cash equivalents and restricted cash | (309) | 519 |
|  **Net (decrease)/ increase in cash, cash equivalents and restricted cash** | **(9487)** | **3708** |
|  Cash, cash equivalents and restricted cash at the beginning of period | 31499 | 24360 |
|  **Cash, cash equivalents and restricted cash at the end of period** | **22012** | **28068** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)** 

**FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2025** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  **Supplemental disclosures of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income taxes paid | (2862) | (7249) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense paid | (3297) | (2169) |
|  **Supplemental disclosures of non-cash investing activities and financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment included in accrued liabilities and other current liabilities |  | 3076 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of property and equipment included in amounts due to related parties |  | 20781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend distribution to the Parent |  | 116330 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash consideration paid to the Parent as part of the corporate reorganization (Note 1) |  | 38688 |
|  **Reconciliation of cash, cash equivalents and restricted cash:** |  |  |
|  Cash and cash equivalents | 22012 | 24053 |
|  Restricted cash |  | 4015 |
|  **Total cash, cash equivalents and restricted cash** | **22012** | **28068** |

---

The accompanying notes are an integral part of these unaudited interim condensed combined and consolidated financial statements.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**1. Organization and principal activities** 

Leoch Energy Inc (the "Company" and where appropriate, the term "Company" also refers to its subsidiaries) was incorporated in the Cayman Islands on July 19, 2024 as an exempted company with limited liability under the Companies Act of the Cayman Islands. The Company is a wholly-owned subsidiary of Leoch International Technology Limited ("LIT" or the "Parent") and designs, develops and sells various battery products.

The Parent undertook a series of restructuring transactions to establish the Company as the parent company of LIT's overseas markets (the "Global Markets") including Europe, Middle East and Africa ("EMEA"), Americas and Asia-Pacific regions (excluding Mainland China, Hong Kong and Macau, or "Asia-Pacific") (collectively, the "Group"). As part of the restructuring, the Company acquired the Global Markets business from Leoch International Investments, an intermediary subsidiary of the Parent, for total purchase consideration of US$38,688. The acquisition was completed on March 14, 2025. The Purchase Consideration was non-cash in nature and was offset against the amounts due from related parties, non-current. The difference between the Purchase Consideration and the carrying amount of the net assets on the parent's book was recognized in equity.

As the transfer of the Global Markets were between entities under common control of Dr. Dong Li (the "Founder"), the transaction was accounted for in a manner similar to a pooling of interests with the assets and liabilities of the Global Markets carried over at their historical amounts. Therefore, the accompanying combined and consolidated financial statements include the assets, liabilities, revenue, expenses, and cash flows that are directly attributable to the Group for all periods presented and have been prepared as if the corporate structure of the Company had been in existence since the beginning of the periods presented.

The Group's combined and consolidated statements of comprehensive income include all revenues, costs and expenses directly attributable to the Global Markets, including those expenses incurred by the Parent and its subsidiaries, but not solely relating to the Global Markets, reflecting allocations of shared expenses from the Parent to the Group. These allocated expenses primarily relate to costs incurred on support functions that historically have been borne by the Parent, such as payroll expenses and other expenditures for research and development, office rental expenses, office utilities, information technology support and certain corporate functions including senior management, finance, legal and human resources and other shared expenses. The allocations were made on a direct usage basis when identifiable, while the remainder were allocated using applicable cost drivers where specific identification was not determinable. These allocations were made on a basis considered reasonable by management but may differ from actual costs which would have been incurred if the Group operated independently during the periods presented. The following table set forth the expenses allocated from the Parent for the six-months ended June 30, 2024 and 2025.

---

| | | |
|:---|:---|:---|
|  | **For the six-months ended<br>June 30, 2024** | **For the six-months ended<br>June 30, 2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Research and development expenses | 1514 | 1708 |
|  Selling and marketing expenses | 3092 | 4041 |
|  General and administrative expenses | 1384 | 3825 |
|  Interest expense | 3389 | 1871 |
|  Cost of revenues | 2127 | 1591 |
|  **Total** | **11506** | **13036** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**1. Organization and principal activities (continued)** 

Prior to the restructuring, the Parent allocated cash proceeds from debt and equity financing on an as-needed basis between the Global Markets and the Parent's other subsidiaries. As a result, the Group's historical financial information may not be indicative of future results of operations, financial position, shareholders' equity and cash flows had the Group operated as a stand-alone entity and contracted at arm's length with unrelated parties for funding.

**2. Summary of Significant Accounting Policies** 

***Basis of presentation***

Management has not historically prepared standalone financial statements for the Group. The combined and consolidated financial statements of the Group have been prepared in accordance with the generally accepted accounting principles of the United States ("U.S. GAAP"). There was no controlling financial interest held by the Company over the entities that comprise the Company's Global Markets for any periods presented. Hence, the Company prepared its financial statements on a combined basis which included the financial statements of the Company and those entities comprising the Global Markets. All significant intercompany transactions and balances have been eliminated.

***Customer deposits***

The Group's contract liabilities represent deposits when it receive payments prior to delivery of goods to customers. Customer deposits were US$13,680 and US$9,737 as of December 31, 2024 and June 30, 2025, respectively. Revenue recognized from the prior year customer deposit balance during the year ended December 31, 2024 and six months ended June 30, 2025 was US$10,646 and US$13,680, respectively.

All the amounts of transaction prices allocated to the remaining performance obligations are expected to be recognized as revenue within one year.

***Warranty Liability***

The Group provides guarantees that products sold to customers will meet the published or agreed upon specification and considers these guarantees as assurance-type warranties. The warranty period range from six- to twelve-months. Products that do not meet specifications are replaced at no charge to the customer. The Group had no significant warranty claims based on its historical experience. The Group recorded warranty liabilities of US$5,121 and US$7,805 as of December 31, 2024 and June 30, 2025, respectively, which was included in accrued liabilities and other current liabilities in the combined and consolidated balance sheets.

***Fair value measurements***

ASC 820-10, *Fair Value Measurements and Disclosures: Overall*, establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

Level 1 — Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets

Level 2 — Include other inputs that are directly or indirectly observable in the marketplace

Level 3 — Unobservable inputs which are supported by little or no market activity

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Fair value measurements (continued)***

ASC 820-10 describes three main approaches to measuring the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivables, other receivables within prepayments and other current assets, balances with related parties, interest-bearing bank loans, accounts payable, and other payables with accrued liabilities and other current liabilities, approximate their fair values because of the short maturity of these instruments. Derivative instruments are stated at fair value on a recurring basis.

The Group did not transfer any assets or liabilities in or out of Level 3 during the year ended December 31, 2024 and June 30, 2025. There were no financial assets and liabilities measured and recorded at fair value on a non-recurring basis as of December 31, 2024 and June 30, 2025.

The following tables summarize the Group's financial assets and liabilities measured and recorded at fair value on a recurring basis as of December 31, 2024 and June 30, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** | **Fair value measurements at December 31, 2024 using** |
|  | **Quoted prices in<br>active market for<br>identical assets<br>(Level 1)** | **Significant other<br>observable inputs**<br>**(Level 2)** | **Significant<br>unobservable<br>inputs**<br>**(Level 3)** | **Total** |
|  Derivative assets |  | 66 |  | 66 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair value measurements at June 30, 2025 using** | **Fair value measurements at June 30, 2025 using** | **Fair value measurements at June 30, 2025 using** | **Fair value measurements at June 30, 2025 using** |
|  | **Quoted prices in<br>active market for<br>identical assets<br>(Level 1)** | **Significant other<br>observable inputs**<br>**(Level 2)** | **Significant<br>unobservable<br>inputs**<br>**(Level 3)** | **Total** |
|  Derivative assets |  |  |  |  |

---

***Derivatives***

The Group's derivative assets represent commodity future and options contracts that do not qualify for hedge accounting in accordance with ASC 815, *Derivatives and Hedging* ("ASC 815"). Changes in fair value of derivative assets and derivative liabilities resulted in a gain of US$4 and US$34 for the six months ended June 30, 2024 and 2025, respectively, and are recognized in "Others, net" in the combined and consolidated statements of comprehensive income.

***Unaudited interim combined and consolidated financial statements***

The unaudited interim combined and consolidated financial statements have been prepared on the same basis as the audited annual financial statements, and reflect, in management's opinion, all adjustments of a normal,

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**2. Summary of Significant Accounting Policies (continued)** 

***Unaudited interim combined and consolidated financial statements (continued)***

recurring nature that are necessary for the fair presentation of the Company's financial position as of June 30, 2025 and its combined and consolidated statements of comprehensive income, changes in shareholder's equity and cash flows for the six months ended June 30, 2024 and 2025. These unaudited interim combined and consolidated financial statements do not include all of the information and footnotes required by U.S. GAAP for audited annual financial statements. Results for the six months ended June 30, 2025 are not necessarily indicative of the results expected for the full fiscal year nor for any future period.

***Concentration of risks***

*Concentration of suppliers* 

A significant portion of the Group's inventories were purchased from two suppliers, one of which is the Parent group (Note 11), who collectively accounted for 81% and 81% of the Group's total inventories purchases for the years ended December 31, 2024 and six months ended June 30, 2025, respectively. A significant interruption by these suppliers in the delivery of inventories could impair the Group's ability to deliver the products and could materially adversely impact its combined and consolidated statements of comprehensive income and combined and consolidated statements of financial position. The Group minimizes such risk by introducing alternative suppliers to ensure a constant supply.

**3. Segment reporting** 

There is no change in the basis of segmentation and measurement of segment profit or loss for each reportable segment as compared with the Group's consolidated financial statements for the year ended December 31, 2024. The Group's Chief Executive Officer (CEO) makes resource allocation decisions and assesses performance based on the combined and consolidated financial results. As a result, the Group has only one reportable segment and one operating segment.

The primary measure of segment profitability for the Company's operating segment is combined and consolidated net income. The significant segment expense reviewed by the CODM on a regular basis within combined and consolidated net income includes cost of revenues, which is separately presented on the Company's combined and consolidated statements of comprehensive income. Other segment items within combined and consolidated net income include research and development expenses, selling and marketing expenses, general and administrative expenses, interest income (expense), foreign exchange gain (loss), other income (expense) and income tax expenses.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**3. Segment reporting (continued)** 

*Geographic information* 

The analysis of the total long-lived assets excluding deferred tax assets, related party balances and goodwill by geographic area was as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Americas | 26365 | 50907 |
|  EMEA | 2264 | 2001 |
|  Asia-Pacific | 70275 | 122132 |
|  **TOTAL** | **98904** | **175040** |

---

Total revenues by geographic area are presented as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Americas | 180991 | 195138 |
|  EMEA and others | 136647 | 201710 |
|  Asia-Pacific | 80593 | 88211 |
|  **TOTAL REVENUES** | **398231** | **485059** |

---

**4. Accounts receivable, net** 

Accounts receivable and allowance for credit losses as of December 31, 2024 and June 30, 2025 are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
|  | **(Audited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Accounts receivable | 193030 | 255507 |
|  Less: allowance for credit losses | (5690) | (7875) |
|  **Accounts receivable, net** | **187340** | **247632** |

---

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**4. Accounts receivable, net (continued)** 

The following table presents the movement in the allowance for credit losses for the six months ended June 30, 2024 and 2025:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Balance at the beginning of the period | 4924 | 5690 |
|  Provisions | 1104 | 2181 |
|  Write off |  |  |
|  Translation adjustments | (2) | 4 |
|  **Balance at the end of the period** | **6026** | **7875** |

---

**5. Inventories, net** 

Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
|  | **(Audited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Raw materials | 15475 | 22374 |
|  Work in progress | 34569 | 44421 |
|  Finished goods | 61892 | 58993 |
|  **Total** | **111936** | **125788** |

---

**6. Prepayments and other current assets** 

Prepayments and other current assets consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of** | **As of** |
|  |<br>**Notes** | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
|  | | **(Audited)** | **(Unaudited)** |
|  | | **US$** | **US$** |
|  Prepayments for materials | (i) | 103437 | 43033 |
|  Deductible input VAT |  | 4447 | 7663 |
|  Deposits and guarantees |  | 2025 | 2128 |
|  Others |  | 3010 | 3805 |
|  **Total** |  | **112919** | **56629** |

---

(i) Balance includes prepayments of US$97,345 and US$36,269 to Parent group as of December 31, 2024 and
June 30, 2025, respectively.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**7. Other non-current assets** 

Other non-current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
|  | **(Audited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  Prepayments for land and machinery | 7223 | 14997 |
|  Others | 758 | 560 |
|  | **7981** | **15557** |

---

**8. Income taxes** 

The income tax provision included in the combined and consolidated statements of comprehensive income for the six months ended June 30, 2024 and 2025, is based on the best estimate of the effective tax rate expected to be applicable for the entire year. The effective tax rates for the six months ended June 30, 2024 and 2025 are 33.7% and 36.8%, respectively. These estimated effective tax rates are subject to adjustment in subsequent quarterly periods as our estimates of pretax income or loss for the year are increased or decreased. The increase in the effective tax rate in the six months ended June 30, 2025 is mainly due to an increase in the valuation allowance.

**9. Commitments and contingencies** 

*Capital commitments* 

The Group's capital commitments primarily relate to the expansion and improvement of its Mexico battery plant. Total capital commitments contracted but not yet reflected in the financial statements amounted to US$24,635 and US$39,389 as of December 31, 2024 and June 30, 2025, respectively.

*Contingencies* 

The Group is subject to contingencies in the normal course of business, such as legal proceedings and claims arising out of its business. Liabilities for contingencies are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. If the assessment indicates that a potential loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed.

The Group is currently not involved in any legal or administrative proceedings that may have a material adverse impact on the Group's business, financial position or results of operations.

**10. Ordinary shares** 

As of June 30, 2025, the Company had only one issued common share owned by the Parent. The holder of the Company's ordinary share is entitled to one vote per share on all matters submitted to a vote of the shareholders for the Company.

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##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**11. Related party transactions** 

The table below sets forth the major related parties and their relationships with the Company:

---

| | |
|:---|:---|
| **Name of related parties** | **Relationship** |
| Dr. Dong Li (the Founder) | Founder, chief executive officer and sole executive director |
| Parent group | Subsidiaries controlled by the Parent. |

---

Details of related party balances are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of** | **As of** |
|  | **December 31,**<br>**2024** | **June 30,**<br>**2025** |
|  | **(Audited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  **Amounts due from related parties, current** |  |  |
|  Parent group<br> (i) | 16685 | 25147 |
|  Related companies owned by the Founder<br> (ii) | 2769 | 2576 |
|  **Total** | **19454** | **27723** |
|  **Amounts due from related parties, non-current** |  |  |
|  Parent group<br> (iii) | 168483 | 16085 |
|  **Total** | **187937** | **43808** |
|  **Amounts due to related parties, current** |  |  |
|  Parent group<br> (iv) | 273273 | 375117 |
|  **Amounts due to related parties, non-current** |  |  |
|  Parent group<br> (v) | 80989 |  |
|  **Total** | **354262** | **375117** |

---

(i) Balance represents amounts due from products sold to entities within the Parent group.

(ii) Balance represents amounts due from products sold to related parties controlled by the Founder.

(iii) Balance represents non-trade interest-free loans lent to entities
within the Parent group. On March 10, 2025, the Group declared a dividend of US$116,330 to its sole shareholder, the Parent. The dividend payable was offset against the amounts due from related parties, non-current. On March 14, 2025, the Company signed the Sale and Purchase Agreement with the Parent, pursuant to which it agreed to purchase the Global Markets business in exchange for a total
consideration of US$38.7 million. The Purchase Consideration was non-cash in nature and was offset against the amounts due from related parties, non-current.

(iv) Balance represents amounts arising from trade payables due to entities within the Parent group.

(v) Balance represents non-trade interest-free loans due to entities within
the Parent group. Such loans were fully repaid as at 30 June 2025.

------

##### [**Table of Contents**](#toc)
**LEOCH ENERGY INC** 

**NOTES TO THE UNAUDITED INTERIM CONDENSED COMBINED AND CONSOLIDATED FINANCIAL STATEMENTS (continued)** 

**(Amounts in thousands of US dollars ("US$"), except for number of shares and per share data)** 

**11. Related party transactions (continued)** 

Details of related party transactions for the periods presented are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months ended June 30,** | **For the six months ended June 30,** |
|  | **2024** | **2025** |
|  | **(Unaudited)** | **(Unaudited)** |
|  | **US$** | **US$** |
|  **Sales of products to related companies** |  |  |
|  Related companies controlled by the Founder | 1443 | 1478 |
|  Parent group | 1184 | 11944 |
|  | **2627** | **13422** |
|  **Purchases of raw materials from related companies** |  |  |
|  Parent group | **237501** | **275826** |
|  **Purchases of equipment from related companies** |  |  |
|  Parent group | **—** | **20781** |

---

The purchases of raw materials from fellow subsidiaries and sales of products to the related companies controlled by the Founder were made according to prices mutually agreed between the two parties.

All other related party transactions are disclosed in the footnotes herein.

**12. Subsequent events** 

The subsequent events have been evaluated through December 30, 2025, the date the unaudited interim condensed combined and consolidated financial statements are issued.

## Exhibit 1.1

**Exhibit 1.1** 

**THE COMPANIES ACT (REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED MEMORANDUM OF ASSOCIATION** 

**OF** 

**LEOCH ENERGY INC** 

(adopted by a Special Resolution passed on December 17, 2025 and effective immediately prior to the completion of the initial listing of the Company's ordinary shares on a Designated Stock Exchange)

1. The name of the Company is Leoch Energy Inc.

2. The Registered Office of the Company will be situated at the offices of 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 location within the Cayman Islands as the Directors may from time to time determine.

3. 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.

4. The Company shall have and be capable of exercising all the functions of a natural person of full capacity
irrespective of any question of corporate benefit as provided by the Companies Act.

5. 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.

6. The liability of each Shareholder is limited to the amount, if any, unpaid on the Shares held by such
Shareholder.

7. The authorised share capital of the Company is US$50,000 divided into 10,000,000,000 ordinary shares of a par
value of US$0.000005 each. Subject to the Companies Act and the Articles, the Company shall have power to redeem or purchase any of its Shares and to increase or reduce its authorised share capital and to sub-divide or consolidate the said Shares or any of them and to issue all or any part of its capital whether original, redeemed, increased or reduced with or without any preference, priority, special privilege
or other rights or subject to any postponement of rights or to any conditions or restrictions whatsoever and so that unless the conditions of issue shall otherwise expressly provide every issue of shares whether stated to be ordinary, preference or
otherwise shall be subject to the powers on the part of the Company hereinbefore provided.

------

8. The Company has the power contained in the Companies Act to deregister in the Cayman Islands and be registered
by way of continuation in some other jurisdiction.

9. Capitalised terms that are not defined in this Memorandum of Association bear the same meanings as those given
in the Articles of Association of the Company.

------

**THE COMPANIES ACT (REVISED)** 

**OF THE CAYMAN ISLANDS** 

**COMPANY LIMITED BY SHARES** 

**AMENDED AND RESTATED ARTICLES OF ASSOCIATION** 

**OF** 

**LEOCH ENERGY INC** 

(adopted by a Special Resolution passed on December 17, 2025 and effective immediately prior to the completion of the initial listing of the Company's ordinary shares on a Designated Stock Exchange)

**TABLE A** 

The regulations contained or incorporated in Table 'A' in the First Schedule of the Companies Act shall not apply to the Company and the following Articles shall comprise the Articles of Association of the Company.

1. In these Articles the following defined terms will have the meanings ascribed to them, if not inconsistent with
the subject or context:

---

| | |
|:---|:---|
| **"Affiliate"** | means in respect of a Person, any other Person that, directly or indirectly, through (1) one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person, and (i) in the case of a natural person, shall include, without limitation, such person's spouse, parents, children, siblings, mother-in-law, father-in-law, brothers-in-law and sisters-in-law, a trust for the benefit of any of the foregoing, and a corporation, partnership or any other entity wholly or jointly owned by any of the foregoing, and (ii) in the case of an entity, shall include a partnership, a corporation or any other entity or any natural person which directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such entity; |
| **"Articles"** | means these articles of association of the Company, as amended or substituted from time to time; |
| **"Board" and "Board of Directors" and "Directors"** | means the directors of the Company for the time being, or as the case may be, the directors assembled as a board or as a committee thereof; |
| **"Chairman"** | means the chairman of the Board of Directors; |
| **"Class" or "Classes"** | means any class or classes of Shares as may from time to time be issued by the Company; |

---

------

---

| | |
|:---|:---|
| **"Control"** | (including the terms *controlling, controlled by* and *under common control with*) means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise. |
| **"Commission"** | means the Securities and Exchange Commission of the United States of America or any other federal agency for the time being administering the Securities Act; |
| **"Communication Facilities"** | means video, video-conferencing, internet or online conferencing applications, telephone or tele-conferencing and/or any other video-communications, internet or online conferencing application or telecommunications facilities by means of which all Persons participating in a meeting are capable of hearing and being heard by each other; |
| **"Company"** | means Leoch Energy Inc, a Cayman Islands exempted company; |
| **"Companies Act"** | means the Companies Act (Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof; |
| **"Company's Website"** | means the main corporate/investor relations website of the Company, the address or domain name of which has been disclosed in any registration statement filed by the Company with the Commission in connection with its initial public offering of the Shares, or which has otherwise been notified to Shareholders; |
| **"Designated Stock Exchange"** | means the stock exchange in the United States on which any Shares are listed for trading; |
| **"Designated Stock Exchange Rules"** | means the relevant code, rules and regulations, as amended, from time to time, applicable as a result of the original and continued listing of any Shares on the Designated Stock Exchange; |
| **"electronic"** | has the meaning given to it in the Electronic Transactions Act and any amendment thereto or re-enactments thereof for the time being in force and includes every other law incorporated therewith or substituted therefor; |
| **"electronic communication"** | means a communication sent by electronic means, including electronic posting to the Company's Website, transmission to any number, address or internet website (including the website of the Commission) or other electronic delivery methods as otherwise decided and approved by not less than two-thirds of the vote of the Board; |
| **"Electronic Transactions Act"** | means the Electronic Transactions Act (Revised) of the Cayman Islands and any statutory amendment or re-enactment thereof; |
| **"electronic record"** | has the meaning given to it in the Electronic Transactions Act and any amendment thereto or re-enactments thereof for the time being in force and includes every other law incorporated therewith or substituted therefor; |
| **"Exchange Act"** | means the Securities Exchange Act of 1934, as amended; |
| **"Memorandum of Association"** | means the memorandum of association of the Company, as amended or substituted from time to time; |

---

------

---

| | |
|:---|:---|
| **"Ordinary Resolution"** | means a resolution: |
|  | (a) passed by a simple majority of the votes cast by such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy or, in the case of corporations, by their duly authorised representatives, at a general meeting of the Company held in accordance with these Articles; or |
|  | (b) approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the resolution so adopted shall be the date on which the instrument, or the last of such instruments, if more than one, is executed; |
| **"paid up"** | means paid up as to the par value in respect of the issue of any Shares and includes credited as paid up; |
| **"Person"** | means any natural person, firm, company, joint venture, partnership, corporation, association or other entity (whether or not having a separate legal personality) or any of them as the context so requires; |
| **"Present"** | means in respect of any Person, such Person's presence at a general meeting of Shareholders (or any meeting of the holders of any Class of Shares), which may be satisfied by means of such Person or, if a corporation or other non-natural Person, its duly authorised representative (or, in the case of any Shareholder, a proxy which has been validly appointed by such Shareholder in accordance with these Articles), being: (a) physically present at the meeting; or (b) in the case of any meeting at which Communication Facilities are permitted in accordance with these Articles, including any Virtual Meeting, connected by means of the use of such Communication Facilities; |
| **"Designated Stock Exchange"** | means the national stock exchange in the United States on which any Shares are listed for trading; |
| **"Designated Stock Exchange Rules"** | means the relevant code, rules and regulations, as amended, from time to time, applicable as a result of the original and continued listing of any Shares on the Designated Stock Exchange; |
| **"Founder Director"** | means Dr. Dong Li, as long as Dr. Dong Li holds or beneficially owns (as defined under Rule 13d-3 of the Exchange Act) any Shares of the Company or is employed by the Company or any of its Subsidiaries; |
| **"Register"** | means the register of Members of the Company maintained in accordance with the Companies Act; |
| **"Registered Office"** | means the registered office of the Company as required by the Companies Act; |
| **"Seal"** | means the common seal of the Company (if adopted) including any facsimile thereof; |
| **"Secretary"** | means any Person appointed by the Directors to perform any of the duties of the secretary of the Company; |

---

------

---

| | |
|:---|:---|
| **"Securities Act"** | means the Securities Act of 1933 of the United States of America, as amended, or any similar federal statute and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time; |
| **"Share"** | means a share in the share capital of the Company. All references to "Shares" herein shall be deemed to be Shares of any or all Classes as the context may require. For the avoidance of doubt in these Articles the expression "Share" shall include a fraction of a Share; |
| **"Shareholder" or "Member"** | means a Person who is registered as the holder of one or more Shares in the Register; |
| **"Share Premium Account"** | means the share premium account established in accordance with these Articles and the Companies Act; |
| **"signed"** | means bearing a signature or representation of a signature affixed by mechanical means or an electronic symbol or process attached to or logically associated with an electronic communication and executed or adopted by a Person with the intent to sign the electronic communication; |
| **"Special Resolution"** | means a special resolution of the Company passed in accordance with the Companies Act, being a resolution: |
|  | (a) passed by not less than two-thirds of the votes cast by such Shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy or, in the case of corporations, by their duly authorised representatives, 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 |
|  | (b) approved in writing by all of the Shareholders entitled to vote at a general meeting of the Company in one or more instruments each signed by one or more of the Shareholders and the effective date of the special resolution so adopted shall be the date on which the instrument or the last of such instruments, if more than one, is executed; |
| **"Treasury Share"** | means a Share held in the name of the Company as a treasury share in accordance with the Companies Act; |
| **"United States"** | means the United States of America, its territories, its possessions and all areas subject to its jurisdiction; and |
| **"Virtual Meeting"** | means any general meeting of the Shareholders (or any meeting of the holders of any Class of Shares) at which the Shareholders (and any other permitted participants of such meeting, including without limitation the chairman of the meeting and any Directors) are permitted to attend and participate solely by means of Communication Facilities. |

---

2. In these Articles, save where the context requires otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the singular number shall include the plural number and vice versa;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words importing the masculine gender only shall include the feminine gender and any Person as the context may
require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the word "may" shall be construed as permissive and the word "shall" shall be construed
as imperative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reference to a dollar or dollars (or US$) and to a cent or cents is reference to dollars and cents of the
United States of America;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reference to a statutory enactment shall include reference to any amendment or re-enactment thereof for the time being in force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) reference to any determination by the Directors shall be construed as a determination by the Directors in their
sole and absolute discretion and shall be applicable either generally or in any particular case;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any phrase introduced by the terms "including", "include" or "in
particular" or similar expression shall be construed as illustrative and shall not limit the sense of the words preceding those terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) reference to "in writing" shall be construed as written or represented by any means reproducible in
writing, including any form of print, lithograph, email, facsimile, photograph or telex or represented by any other substitute or format for storage or transmission for writing including in the form of an electronic record or partly one and partly
another;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any requirements as to delivery under the Articles include delivery in the form of an electronic record or an
electronic communication;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any requirements as to execution or signature under the Articles, including the execution of the Articles
themselves, can be satisfied in the form of an electronic signature as defined in the Electronic Transactions Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Sections 8 and 19(3) of the Electronic Transactions Act shall not apply.

3. Subject to the last two preceding Articles, any words defined in the Companies Act shall, if not inconsistent
with the subject or context, bear the same meaning in these Articles.

**PRELIMINARY** 

4. The business of the Company may be conducted as the Directors see fit.

5. The Registered Office shall be at such address in the Cayman Islands as the Directors may from time to time
determine. The Company may in addition establish and maintain such other offices and places of business and agencies in such places as the Directors may from time to time determine.

6. The expenses incurred in the formation of the Company and in connection with the offer for subscription and
issue of Shares shall be paid by the Company. Such expenses may be amortised over such period as the Directors may determine and the amount so paid shall be charged against income and/or capital in the accounts of the Company as the Directors shall
determine.

------

7. The Directors shall keep, or cause to be kept, the Register at such place as the Directors may from time to
time determine and, in the absence of any such determination, the Register shall be kept at the Registered Office.

**SHARES** 

8. Subject to these Articles and where applicable the Designated Stock Exchange Rules, all Shares for the time
being unissued shall be under the control of the Directors who may, in their absolute discretion and without the approval of the Members, cause the Company to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue, allot and dispose of Shares (including, without limitation, preferred shares) (whether in certificated
form or non-certificated form) to such Persons, in such manner, on such terms and having such rights and being subject to such restrictions as they may from time to time determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) grant rights over Shares or other securities to be issued in one or more classes or series as they deem
necessary or appropriate and determine the designations, powers, preferences, privileges and other rights attaching to such Shares or securities, including dividend rights, voting rights, conversion rights, terms of redemption and liquidation
preferences, any or all of which may be greater than the powers, preferences, privileges and rights associated with the then issued and outstanding Shares, at such times and on such other terms as they think proper; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) grant options with respect to Shares and issue warrants or similar instruments with respect thereto.

9. The Directors may authorise the division of Shares into any number of Classes and the different Classes shall
be authorised, established and designated (or re-designated as the case may be) and the variations in the relative rights (including, without limitation, voting, dividend and redemption rights), restrictions,
preferences, privileges and payment obligations as between the different Classes (if any) may be fixed and determined by the Directors or by an Ordinary Resolution. The Directors may issue Shares with such preferred or other rights, all or any of
which may be greater than the rights of Shares, at such time and on such terms as they may think appropriate. Notwithstanding Article 12, the Directors may issue from time to time, out of the authorised share capital of the Company (other than the
authorised but unissued Shares), series of preferred shares in their absolute discretion and without approval of the Members; provided, however, before any preferred shares of any such series are issued, the Directors shall by resolution of
Directors determine, with respect to any series of preferred shares, the terms and rights of that series, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the designation of such series, the number of preferred shares to constitute such series and the subscription
price thereof if different from the par value thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether the preferred shares of such series shall have voting rights, in addition to any voting rights provided
by law, and, if so, the terms of such voting rights, which may be general or limited;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dividends, if any, payable on such series, whether any such dividends shall be cumulative, and, if so, from
what dates, the conditions and dates upon which such dividends shall be payable, and the preference or relation which such dividends shall bear to the dividends payable on any shares of any other class or any other series of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) whether the preferred shares of such series shall be subject to redemption by the Company, and, if so, the
times, prices and other conditions of such redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) whether the preferred shares of such series shall have any rights to receive any part of the assets available
for distribution amongst the Members upon the liquidation of the Company, and, if so, the terms of such liquidation preference, and the relation which such liquidation preference shall bear to the entitlements of the holders of shares of any other
class or any other series of shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) whether the preferred shares of such series shall be subject to the operation of a retirement or sinking fund
and, if so, the extent to and manner in which any such retirement or sinking fund shall be applied to the purchase or redemption of the preferred shares of such series for retirement or other corporate purposes and the terms and provisions relative
to the operation thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) whether the preferred shares of such series shall be convertible into, or exchangeable for, shares of any other
class or any other series of preferred shares or any other securities and, if so, the price or prices or the rate or rates of conversion or exchange and the method, if any, of adjusting the same, and any other terms and conditions of conversion or
exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the limitations and restrictions, if any, to be effective while any preferred shares of such series are
outstanding upon the payment of dividends or the making of other distributions on, and upon the purchase, redemption or other acquisition by the Company of, the existing shares or shares of any other class of shares or any other series of preferred
shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the conditions or restrictions, if any, upon the creation of indebtedness of the Company or upon the issue of
any additional shares, including additional shares of such series or of any other class of shares or any other series of preferred shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any other powers, preferences and relative, participating, optional and other special rights, and any
qualifications, limitations and restrictions thereof;

and, for such purposes, the Directors may reserve an appropriate number of Shares for the time being unissued. The Company shall not issue Shares to bearer.

10. The Company may insofar as may be permitted by law, pay a commission to any Person in consideration of his
subscribing or agreeing to subscribe whether absolutely or conditionally for any Shares. Such commissions may be satisfied by the payment of cash or the lodgement of fully or partly paid-up Shares or partly in
one way and partly in the other. The Company may also pay such brokerage as may be lawful on any issue of Shares.

------

11. 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.

**MODIFICATION OF RIGHTS** 

12. Whenever the capital of the Company is divided into different Classes the rights attached to any such
Class may, subject to any rights or restrictions for the time being attached to any Class, only be materially adversely varied with the consent in writing of the holders of at least two-thirds of the
issued Shares of that Class or with the sanction of a Special Resolution passed at a separate meeting of the holders of the Shares of that Class. To every such separate meeting all the provisions of these Articles relating to general meetings
of the Company or to the proceedings thereat shall, mutatis mutandis, apply, except that the necessary quorum shall be one or more Persons holding or representing by proxy at least one-third in nominal or par
value amount of the issued Shares of the relevant Class (but so that if at any adjourned meeting of such holders a quorum as above defined is not Present, those Shareholders who are Present shall form a quorum) and that, subject to any rights or
restrictions for the time being attached to the Shares of that Class, every Shareholder of the Class shall on a poll have one vote for each Share of the Class held by him. For the purposes of this Article the Directors may treat all the
Classes or any two or more Classes as forming one Class if they consider that all such Classes would be affected in the same way by the proposals under consideration, but in any other case shall treat them as separate Classes.

13. The rights conferred upon the holders of the Shares of any Class issued with preferred or other rights
shall not, subject to any rights or restrictions for the time being attached to the Shares of that Class, be deemed to be materially adversely varied by, inter alia, the creation, allotment or issue of further Shares ranking pari passu with or
subsequent to them or the redemption or purchase of any Shares of any Class by the Company. The rights of the holders of Shares shall not be deemed to be materially adversely varied by the creation or issue of Shares with preferred or other
rights including, without limitation, the creation of Shares with enhanced or weighted voting rights.

**CERTIFICATES** 

14. Every Person whose name is entered as a Member in the Register may, without payment and upon its written
request, request a certificate within two calendar months after allotment or lodgement of transfer (or within such other period as the conditions of issue shall provide) in the form determined by the Directors. All certificates shall specify the
Share or Shares held by that Person, provided that in respect of a Share or Shares held jointly by several Persons the Company shall not be bound to issue more than one certificate, and delivery of a certificate for a Share to one of several joint
holders shall be sufficient delivery to all. All certificates for Shares shall be delivered personally or sent through the post addressed to the Member entitled thereto at the Member's registered address as appearing in the Register.

15. Every share certificate of the Company shall bear such legends as may be required under the applicable laws,
including the Securities Act.

16. Any two or more certificates representing Shares of any one Class held by any Member may at the
Member's request be cancelled and a single new certificate for such Shares issued in lieu on payment (if the Directors shall so require) of one U.S. dollar (US$1.00) or such smaller sum as the Directors shall determine.

------

17. If a share certificate shall be damaged or defaced or alleged to have been lost, stolen or destroyed, a new
certificate representing the same Shares may be issued to the relevant Member upon request, subject to delivery up of the old certificate or (if alleged to have been lost, stolen or destroyed) compliance with such conditions as to evidence and
indemnity and the payment of out-of-pocket expenses of the Company in connection with the request as the Directors may think fit.

18. In the event that Shares are held jointly by several Persons, any request may be made by any one of the joint
holders and if so made shall be binding on all of the joint holders.

**FRACTIONAL SHARES** 

19. The Directors may issue fractions of a Share and, if so issued, a fraction of a Share shall be subject to and
carry the corresponding fraction of liabilities (whether with respect to nominal or par value, premium, contributions, calls or otherwise), limitations, preferences, privileges, qualifications, restrictions, rights (including, without prejudice to
the generality of the foregoing, voting and participation rights) and other attributes of a whole Share. If more than one fraction of a Share of the same Class is issued to or acquired by the same Shareholder such fractions shall be
accumulated.

**LIEN** 

20. The Company has a first and paramount lien on every Share (whether or not fully paid) for all amounts (whether
presently payable or not) payable at a fixed time or called in respect of that Share. The Company also has a first and paramount lien on every Share registered in the name of a Person indebted or under liability to the Company (whether he is the
sole registered holder of a Share or one of two or more joint holders) for all amounts owing by him or his estate to the Company (whether or not presently payable). The Directors may at any time declare a Share to be wholly or in part exempt from
the provisions of this Article. The Company's lien on a Share extends to any amount payable in respect of it, including but not limited to dividends.

21. The Company may sell, in such manner as the Directors in their absolute discretion think fit, any Share on
which the Company has a lien, but no sale shall be made unless an amount in respect of which the lien exists is presently payable nor until the expiration of fourteen (14) calendar days after a notice in writing, demanding payment of such part
of the amount in respect of which the lien exists as is presently payable, has been given to the registered holder for the time being of the Share, or the Persons entitled thereto by reason of his death or bankruptcy.

22. For giving effect to any such sale the Directors may authorise a Person to transfer the Shares sold to the
purchaser thereof. The purchaser shall be registered as the holder of the Shares comprised in any such transfer 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 proceedings in reference to the sale.

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23. The proceeds of the sale after deduction of expenses, fees and commissions incurred by the Company shall be
received by the Company and applied in payment of such part of the amount in respect of which the lien exists as is presently payable, and the residue shall (subject to a like lien for sums not presently payable as existed upon the Shares prior to
the sale) be paid to the Person entitled to the Shares immediately prior to the sale.

**CALLS ON SHARES** 

24. Subject to the terms of the allotment, the Directors may from time to time make calls upon the Shareholders in
respect of any moneys unpaid on their Shares, and each Shareholder shall (subject to receiving at least fourteen (14) calendar days' notice specifying the time or times of payment) pay to the Company at the time or times so specified the
amount called on such Shares. A call shall be deemed to have been made at the time when the resolution of the Directors authorising such call was passed.

25. The joint holders of a Share shall be jointly and severally liable to pay calls in respect thereof.

26. If a sum called in respect of a Share is not paid before or on the day appointed for payment thereof, the
Person from whom the sum is due shall pay interest upon the sum at the rate of eight percent per annum from the day appointed for the payment thereof to the time of the actual payment, but the Directors shall be at liberty to waive payment of that
interest wholly or in part.

27. The provisions of these Articles as to the liability of joint holders and as to payment of interest shall apply
in the case of non-payment of any sum which, by the terms of issue of a Share, becomes payable at a fixed time, whether on account of the amount of the Share, or by way of premium, as if the same had become
payable by virtue of a call duly made and notified.

28. The Directors may make arrangements with respect to the issue of partly paid Shares for a difference between
the Shareholders, or the particular Shares, in the amount of calls to be paid and in the times of payment.

29. The Directors may, if they think fit, receive from any Shareholder willing to advance the same all or any part
of the moneys uncalled and unpaid upon any partly paid Shares held by him, and upon all or any of the moneys so advanced may (until the same would, but for such advance, become presently payable) pay interest at such rate (not exceeding without the
sanction of an Ordinary Resolution, eight percent per annum) as may be agreed upon between the Shareholder paying the sum in advance and the Directors. No such sum paid in advance of calls shall entitle the Member paying such sum to any portion of a
dividend declared in respect of any period prior to the date upon which such sum would, but for such payment, become presently payable.

**FORFEITURE OF SHARES** 

30. If a Shareholder fails to pay any call or instalment of a call in respect of partly paid Shares on the day
appointed for payment, the Directors may, at any time thereafter during such time as any part of such call or instalment remains unpaid, serve a notice on him requiring payment of so much of the call or instalment as is unpaid, together with any
interest which may have accrued.

31. The notice shall name a further day (not earlier than the expiration of fourteen (14) calendar days from
the date of the notice) on or before which the payment required by the notice is to be made, and shall state that in the event of non-payment at or before the time appointed, the Shares in respect of which the
call was made will be liable to be forfeited.

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32. If the requirements of any such notice as aforesaid are not complied with, any Share in respect of which the
notice has been given may at any time thereafter, before the payment required by notice has been made, be forfeited by a resolution of the Directors to that effect.

33. 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.

34. A Person whose Shares have been forfeited shall cease to be a Shareholder 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 forfeited, but his liability shall cease if and when the Company receives payment
in full of the amount unpaid on the Shares forfeited.

35. A certificate in writing under the hand of a Director that a Share has been duly forfeited on a date stated in
the certificate shall be conclusive evidence of the facts in the declaration as against all Persons claiming to be entitled to the Share.

36. The Company may receive the consideration, if any, given for a Share on any sale or disposition thereof
pursuant to the provisions of these Articles as to forfeiture and may execute a transfer of the Share in favour of the Person to whom the Share is sold or disposed of and that Person shall be registered as the holder of the Share and shall not be
bound to see to the application of the purchase money, if any, nor shall his title to the Shares be affected by any irregularity or invalidity in the proceedings in reference to the disposition or sale.

37. The provisions of these Articles as to forfeiture shall apply in the case of non-payment of any sum which by the terms of issue of a Share becomes due and payable, whether on account of the amount of the Share, or by way of premium, as if the same had been payable by virtue of a call
duly made and notified.

**TRANSFER OF SHARES** 

38. The instrument of transfer of any Share shall be in writing and in any usual or common form or such other form
as the Directors may, in their absolute discretion, approve and be executed by or on behalf of the transferor and if in respect of a nil or partly paid up Share, or if so required by the Directors, shall also be executed on behalf of the transferee
and shall be accompanied by the certificate (if any) of the Shares to which it relates and such other evidence as the Directors may reasonably require to show the right of the transferor to make the transfer. The transferor shall be deemed to remain
a Shareholder until the name of the transferee is entered in the Register in respect of the relevant Shares.

39. (a) The Directors may in their absolute discretion decline to register any transfer of Shares which is not
fully paid up or on which the Company has a lien.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Directors may also decline to register any transfer of any Share unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the instrument of transfer is lodged with the Company, accompanied by the certificate for the Shares to which
it relates and such other evidence as the Board may reasonably require to show the right of the transferor to make the transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the instrument of transfer is in respect of only one Class of Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the instrument of transfer is properly stamped, if required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a transfer to joint holders, the number of joint holders to whom the Share is to be transferred
does not exceed four; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a fee of such maximum sum as the Designated Stock Exchange may determine to be payable, or such lesser sum as
the Board of Directors may from time to time require, is paid to the Company in respect thereof.

40. The registration of transfers may, on ten (10) calendar days' notice being given by advertisement in
such one or more newspapers, by electronic means or by any other means in accordance with the Designated Stock Exchange Rules, be suspended and the Register closed at such times and for such periods as the Directors may, in their absolute
discretion, from time to time determine, provided always that such registration of transfer shall not be suspended nor the Register closed for more than thirty (30) calendar days in any calendar year.

41. All instruments of transfer that are registered shall be retained by the Company. If the Directors refuse to
register a transfer of any Shares, they shall within three calendar months after the date on which the transfer was lodged with the Company send notice of the refusal to each of the transferor and the transferee.

**TRANSMISSION OF SHARES** 

42. 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 name of two or more holders, the survivors or survivor, or the legal personal representatives of the deceased survivor, shall be the only Person recognised by the
Company as having any title to the Share.

43. Any Person becoming entitled to a Share in consequence of the death or bankruptcy of a Shareholder 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 Shareholder in respect of the Share or, instead of being registered himself, to make such transfer of the Share as the
deceased or bankrupt Person 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 the deceased or bankrupt Person before the
death or bankruptcy.

44. A Person becoming entitled to a Share by reason of the death or bankruptcy of a Shareholder shall be entitled
to the same dividends and other advantages to which he would be entitled if he were the registered Shareholder, except that he shall not, before being registered as a Shareholder 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, provided however, that the Directors may at any time give notice requiring any such Person to elect either to be registered himself or to transfer the Share, and if the notice is
not complied with within ninety (90) calendar 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.

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**REGISTRATION OF EMPOWERING INSTRUMENTS** 

45. The Company shall be entitled to charge a fee not exceeding one dollar (US$1.00) on the registration of every
probate, letters of administration, certificate of death or marriage, power of attorney, notice in lieu of distringas, or other instrument.

**ALTERATION OF SHARE CAPITAL** 

46. The Company may from time to time by an Ordinary Resolution increase the share capital by such sum, to be
divided into Shares of such Classes and amount, as the resolution shall prescribe.

47. The Company may by an Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase its share capital by new Shares of such amount as it thinks expedient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of a larger amount than its existing Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subdivide its Shares, or any of them, into Shares of an amount smaller than that fixed by the Memorandum,
provided that in the subdivision the proportion between the amount paid and the amount, if any, unpaid on each reduced Share shall be the same as it was in case of the Share from which the reduced Share is derived; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any Shares that, at the date of the passing of the resolution, have not been taken or agreed to be taken
by any Person and diminish the amount of its share capital by the amount of the Shares so cancelled.

48. The Company may by a Special Resolution reduce its share capital and any capital redemption reserve in any
manner authorised by the Companies Act.

**REDEMPTION, PURCHASE AND SURRENDER OF SHARES** 

49. Subject to the provisions of the Companies Act and these Articles, the Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares that are to be redeemed or are liable to be redeemed at the option of the Shareholder or the
Company. The redemption of Shares shall be effected in such manner and upon such terms as may be determined, before the issue of such Shares, by either the Board or by the Shareholders by an Ordinary Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&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 have been
approved by the Board or by the Shareholders by an Ordinary Resolution, or are otherwise authorised by these Articles; and

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&nbsp;&nbsp;&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.

50. The purchase of any Share shall not oblige the Company to purchase any other Share other than as may be
required pursuant to applicable law and any other contractual obligations of the Company.

51. The holder of the Shares being purchased shall be bound to deliver up to the Company the certificate(s) (if
any) thereof for cancellation and thereupon the Company shall pay to him the purchase or redemption monies or consideration in respect thereof.

52. The Directors may accept the surrender for no consideration of any fully paid Share.

**TREASURY SHARES** 

53. The Directors may, prior to the purchase, redemption or surrender of any Share, determine that such Share shall
be held as a Treasury Share.

54. The Directors may determine to cancel a Treasury Share or transfer a Treasury Share on such terms as they think
proper (including, without limitation, for nil consideration).

**GENERAL MEETINGS** 

55. All general meetings other than annual general meetings shall be called extraordinary general meetings.

56. (a) The Company may (but shall not be obliged to) in each calendar year hold a general meeting as its annual
general meeting and shall specify the meeting as such in the notices calling it. The annual general meeting shall be held at such time and place as may be determined by the Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At these meetings the report of the Directors (if any) shall be presented.

57. (a) The Chairman or the Directors (acting by a resolution of the Board) may call general meetings, and they
shall on a Shareholders' requisition forthwith proceed to convene an extraordinary general meeting of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Shareholders' requisition is a requisition of Members holding at the date of deposit of the requisition
Shares which carry in aggregate not less than one-third (1/3) of all votes attaching to all the issued and outstanding Shares that as at the date of the deposit carry the right to vote at general meetings of
the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The requisition must state the objects of the meeting and must be signed by the requisitionists and deposited
at the Registered Office, and may consist of several documents in like form each signed by one or more requisitionists.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If there are no Directors as at the date of the deposit of the Shareholders' requisition, or if the
Directors do not within twenty-one (21) calendar days from the date of the deposit of the requisition duly proceed to convene a general meeting to be held within a further twenty-one (21) calendar days, the requisitionists, or any of them representing more than one-half (1/2) of the total voting rights of all of them, may themselves
convene a general meeting, but any meeting so convened shall not be held after the expiration of three (3) calendar months after the expiration of the said twenty-one (21) calendar days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A general meeting convened as aforesaid by requisitionists shall be convened in the same manner as nearly as
possible as that in which general meetings are to be convened by Directors.

**NOTICE OF GENERAL MEETINGS** 

58. At least seven (7) calendar days' notice shall be given for any general meeting. Every notice shall
be exclusive of the day on which it is given or deemed to be given and of the day for which it is given and shall specify the place, the day and the hour of the meeting and the general nature of the business and shall be given in the manner
hereinafter mentioned or in such other manner if any as may be prescribed by the Company, provided that a general meeting of the Company shall, whether or not the notice specified in this Article has been given and whether or not the provisions of
these Articles regarding general meetings have been complied with, be deemed to have been duly convened if it is so agreed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of an annual general meeting, by all the Shareholders (or their proxies) entitled to attend and
vote thereat; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an extraordinary general meeting, by holders of two-thirds (2/3) of the Shareholders having a right to attend and vote at the meeting, Present at the meeting or, in the case of a corporation or other non-natural person, represented by its duly authorised representative or proxy.

59. The accidental omission to give notice of a meeting to or the non-receipt of a notice of a meeting by any Shareholder shall not invalidate the proceedings at any meeting.

**PROCEEDINGS AT GENERAL MEETINGS** 

60. No business except for the appointment of a chairman for the meeting shall be transacted at any general meeting
unless a quorum of Shareholders is Present at the time when the meeting proceeds to business. One or more Shareholders holding Shares which carry in aggregate (or representing by proxy) not less than one-third (1/3) of all votes attaching to all Shares in issue and entitled to vote at such general meeting, Present at the meeting, shall be a quorum for all purposes.

61. If within half an hour from the time appointed for the meeting a quorum is not Present, the meeting shall be
dissolved.

62. If the Directors wish to make this facility available for a specific general meeting or all general meetings of
the Company, attendance and participation in any general meeting of the Company may be by means of Communication Facilities. Without limiting the generality of the foregoing, the Directors may determine that any general meeting may be held as a
Virtual Meeting. The notice of any general meeting at which Communication Facilities will be utilised (including any Virtual Meeting) must disclose the Communication Facilities that will be used, including the procedures to be followed by any
Shareholder or other participant of the meeting who wishes to utilise such Communication Facilities for the purposes of attending and participating in such meeting, including attending and casting any vote thereat.

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63. The Chairman, if any, shall preside as chairman at every general meeting of the Company.

64. If there is no such Chairman, or if at any general meeting he is not Present within fifteen minutes after the
time appointed for holding the meeting or is unwilling to act as chairman of the meeting, any Director or Person nominated by the Directors shall preside as chairman of that meeting, failing which the Shareholders Present shall choose any Person
Present to be chairman of that meeting.

65. The chairman of any general meeting (including any Virtual Meeting) shall be entitled to attend and participate
at any such general meeting by means of Communication Facilities, and to act as the chairman of such general meeting, in which event the following provisions shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The chairman of the meeting shall be deemed to be Present at the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Communication Facilities are interrupted or fail for any reason to enable the chairman of the meeting to
hear and be heard by all other Persons participating in the meeting, then the other Directors Present at the meeting shall choose another Director Present to act as chairman of the meeting for the remainder of the meeting; provided that if no other
Director is Present at the meeting, or if all the Directors Present decline to take the chair, then the meeting shall be automatically adjourned to the same day in the next week and at such time and place as shall be decided by the Board of
Directors.

66. The chairman of any general meeting at which a quorum is Present may with the consent of the meeting (and shall
if so directed by the meeting) adjourn the 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.
When a meeting, or adjourned meeting, is adjourned for fourteen (14) calendar days or more, notice of the adjourned meeting shall be given as in the case of an original meeting. Save as aforesaid it shall not be necessary to give any notice of
an adjournment or of the business to be transacted at an adjourned meeting.

67. The Directors may cancel or postpone any duly convened general meeting at any time prior to such meeting,
except for general meetings requisitioned by the Shareholders in accordance with these Articles, for any reason or for no reason, upon notice in writing to Shareholders. A postponement may be for a stated period of any length or indefinitely as the
Directors may determine.

68. At any general meeting a resolution put to the vote of the meeting shall be decided by a poll.

69. A poll shall be taken in such manner as the chairman of the meeting directs, and the result of the poll shall
be deemed to be the resolution of the meeting.

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70. All questions submitted to a meeting shall be decided by an Ordinary Resolution except where a greater majority
is required by these Articles or by the Companies Act. In the case of an equality of votes, the chairman of the meeting shall be entitled to a second or casting vote.

71. A poll shall be taken forthwith or at such time as the chairman of the meeting directs.

**VOTES OF SHAREHOLDERS** 

72. Subject to any rights and restrictions for the time being attached to any Share, on a poll every Shareholder
Present at the meeting shall have one (1) vote for each Share of which such Shareholder is the holder.

73. In the case of joint holders the vote of the senior who tenders a vote whether in person or by proxy (or, if a
corporation or other non-natural person, by its duly authorised representative or proxy) shall be accepted to the exclusion of the votes of the other joint holders and for this purpose seniority shall be
determined by the order in which the names stand in the Register.

74. Shares carrying the right to vote that are held by a Shareholder of unsound mind, or in respect of whom an
order has been made by any court having jurisdiction in lunacy, may be voted by his committee, or other Person in the nature of a committee appointed by that court, and any such committee or other Person may vote in respect of such Shares by proxy.

75. No Shareholder shall be entitled to vote at any general meeting of the Company unless all calls, if any, or
other sums presently payable by him in respect of Shares carrying the right to vote held by him have been paid.

76. On a poll votes may be given either personally or by proxy.

77. Each Shareholder, other than a recognised clearing house (or its nominee(s)), may only appoint one proxy on a
poll. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly authorised in writing or, if the appointor is a corporation, either under Seal or under the hand of an officer or attorney duly
authorised. A proxy need not be a Shareholder.

78. An instrument appointing a proxy may be in any usual or common form or such other form as the Directors may
approve.

79. The instrument appointing a proxy shall be deposited at the Registered Office or at such other place as is
specified for that purpose in the notice convening the meeting, or in any instrument of proxy sent out by the Company not less than 48 hours before the time for holding the meeting or adjourned meeting at which the person named in the instrument
proposes to vote, provided that the Directors may in the notice convening the meeting, or in an instrument of proxy sent out by the Company, direct that the instrument appointing a proxy may be deposited at such other time (no later than the time
for holding the meeting or adjourned meeting) at the Registered Office or at such other place as is specified for that purpose in the notice convening the meeting, or in any instrument of proxy sent out by the Company. The chairman of the meeting
may in any event at his discretion direct that an instrument of proxy shall be deemed to have been duly deposited. An instrument of proxy that is not deposited in the manner permitted shall be invalid.

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80. A resolution in writing signed by all the Shareholders for the time being entitled to receive notice of and to
attend and vote at general meetings of the Company (or being corporations by their duly authorised representatives) shall be as valid and effective as if the same had been passed at a general meeting of the Company duly convened and held.

**CORPORATIONS ACTING BY REPRESENTATIVES AT MEETINGS** 

81. Any corporation which is a Shareholder or a Director may by resolution of its directors or other governing body
authorise such Person as it thinks fit to act as its representative at any meeting of the Company or of any meeting of holders of a Class or of the Directors or of a committee of Directors, and the Person so authorised shall be entitled to
exercise the same powers on behalf of the corporation which he represents as that corporation could exercise if it were an individual Shareholder or Director.

**CLEARING HOUSES** 

82. If a recognised clearing house (or its nominee(s)) is a Member of the Company it may, by resolution of its
directors or other governing body or by power of attorney, authorise such Person(s) as it thinks fit to act as its representative(s) at any general meeting of the Company or of any Class of Shareholders provided that, if more than one Person is
so authorised, the authorisation shall specify the number and Class of Shares in respect of which each such Person is so authorised. A Person so authorised pursuant to this Article shall be entitled to exercise the same powers on behalf of the
recognised clearing house (or its nominee(s)) which he represents as that recognised clearing house (or its nominee(s)) could exercise if it were an individual Member holding the number and Class of Shares specified in such authorisation.

**DIRECTORS** 

83. (a) Unless otherwise determined by the Company in general meeting, the number of Directors shall not be less
than three (3) and not be more than nine (9), the exact number of Directors to be determined from time to time by an Ordinary Resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For as long as Dr. Dong Li holds or beneficially owns (as defined under Rule 13d-3 of the Exchange Act) any Shares of the Company or is employed by the Company or any of its Subsidiaries, Dr. Dong Li shall occupy one (1) seat of the Board (the "**Founder Director** ")
and shall serve as the Chairman of the Board of Directors. The Chairman shall preside as chairman at every meeting of the Board of Directors. To the extent the Chairman is not present at a meeting of the Board of Directors within fifteen minutes
after the time appointed for holding the same, the attending Directors may choose one of them to be the chairman of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company may by an Ordinary Resolution appoint any person to be a Director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Board may, by the affirmative vote of a simple majority of the remaining Directors present and voting at a
Board meeting, appoint any person as a Director, to fill a casual vacancy on the Board, which may be created in accordance with Article 103.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) An appointment of a Director may be on terms that the Director shall automatically retire from office (unless
he has sooner vacated office) at the next or a subsequent annual general meeting or upon any specified event or after any specified period in a written agreement between the Company and the Director, if any; but no such term shall be implied in the
absence of express provision. Each Director whose term of office expires shall be eligible for re-election at a meeting of the Shareholders or re-appointment by the
Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) A Director may be removed from office by an Ordinary Resolution (except with regard to the removal of the
Founder Director, who may be removed from office by a Special Resolution), notwithstanding anything in these Articles or in any agreement between the Company and such Director (but without prejudice to any claim for damages under such agreement).

84. The Board may, from time to time, and except as required by applicable law or Designated Stock Exchange Rules,
adopt, institute, amend, modify or revoke the corporate governance policies or initiatives of the Company and determine on various corporate governance related matters of the Company as the Board shall determine by resolution of Directors from time
to time.

85. A Director shall not be required to hold any Shares in the Company by way of qualification. A Director who is
not a Member of the Company shall nevertheless be entitled to attend and speak at general meetings.

86. The remuneration of the Directors may be determined by the Directors, the committee of the Board or by an
Ordinary Resolution.

87. The Directors shall be entitled to be paid for their travelling, hotel and other expenses properly incurred by
them in going to, attending and returning from meetings of the Directors, or any committee of the Directors, or general meetings of the Company, or otherwise in connection with the business of the Company, or to receive such fixed allowance in
respect thereof as may be determined by the Directors from time to time, or a combination partly of one such method and partly the other.

**ALTERNATE DIRECTOR OR PROXY** 

88. Any Director may in writing appoint another Person to be his alternate and, save to the extent provided
otherwise in the form of appointment, such alternate shall have authority to sign written resolutions on behalf of the appointing Director, but shall not be required to sign such written resolutions where they have been signed by the appointing
director, and to act in such Director's place at any meeting of the Directors at which the appointing Director is unable to be present. Every such alternate shall be entitled to attend and vote at meetings of the Directors as a Director when
the Director appointing him is not personally present and where he is a Director to have a separate vote on behalf of the Director he is representing in addition to his own vote. A Director may at any time in writing revoke the appointment of an
alternate appointed by him. Such alternate shall be deemed for all purposes to be a Director of the Company and shall not be deemed to be the agent of the Director appointing him. The remuneration of such alternate shall be payable out of the
remuneration of the Director appointing him and the proportion thereof shall be agreed between them.

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89. Any Director may appoint any Person, whether or not a Director, to be the proxy of that Director to attend and
vote on his behalf, in accordance with instructions given by that Director, or in the absence of such instructions at the discretion of the proxy, at a meeting or meetings of the Directors which that Director is unable to attend personally. The
instrument appointing the proxy shall be in writing under the hand of the appointing Director and shall be in any usual or common form or such other form as the Directors may approve, and must be lodged with the chairman of the meeting of the
Directors at which such proxy is to be used, or first used, prior to the commencement of the meeting.

**POWERS AND DUTIES OF DIRECTORS** 

90. Subject to the Companies Act, these Articles and any resolutions passed in a general meeting, the business of
the Company shall be managed by the Directors, who may pay all expenses incurred in setting up and registering the Company and may exercise all powers of the Company. No resolution passed by the Company in general meeting shall invalidate any prior
act of the Directors that would have been valid if that resolution had not been passed.

91. Subject to these Articles, the Directors may from time to time appoint any natural person or corporation,
whether or not a Director to hold such office in the Company as the Directors may think necessary for the administration of the Company, including but not limited to, chief executive officer, one or more other executive officers, president, one or
more vice presidents, treasurer, assistant treasurer, manager or controller, and for such term and at such remuneration (whether by way of salary or commission or participation in profits or partly in one way and partly in another), and with such
powers and duties as the Directors may think fit. Any natural person or corporation so appointed by the Directors may be removed by the Directors. The Directors may also appoint one or more of them to the office of managing director upon like terms,
but any such appointment shall ipso facto terminate if any managing director ceases for any cause to be a Director, or if the Company by an Ordinary Resolution resolves that his tenure of office be terminated.

92. The Directors may appoint any natural person or corporation to be a Secretary (and if need be an assistant
Secretary or assistant Secretaries) who shall hold office for such term, at such remuneration and upon such conditions and with such powers as they think fit. Any Secretary or assistant Secretary so appointed by the Directors may be removed by the
Directors.

93. Subject to applicable law, Designated Stock Exchange Rules and these Articles, the Directors may delegate any
of their powers to committees consisting of such member or members of their body as they think fit; any committee so formed shall in the exercise of the powers so delegated conform to any regulations that may be imposed on it by the Directors.

94. The Directors may from time to time and at any time by power of attorney (whether under Seal or under hand) or
otherwise appoint any company, firm or Person or body of Persons, whether nominated directly or indirectly by the Directors, to be the attorney or attorneys or authorised signatory (any such Person being an "Attorney" or
"Authorised Signatory", respectively) of the Company for such purposes and with such powers, authorities and discretion (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 power of attorney or other appointment may contain such provisions for the protection and convenience of Persons dealing with any such Attorney or Authorised Signatory 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 discretion vested in him.

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95. The Directors may from time to time provide for the management of the affairs of the Company in such manner as
they shall think fit and the provisions contained in the three next following Articles shall not limit the general powers conferred by this Article.

96. The Directors from time to time and at any time may establish any committees, local boards or agencies for
managing any of the affairs of the Company and may appoint any natural person or corporation to be a member of such committees or local boards and may appoint any managers or agents of the Company and may fix the remuneration of any such natural
person or corporation.

97. The Directors from time to time and at any time may delegate to any such committee, local board, manager or
agent any of the powers, authorities and discretions for the time being vested in the Directors and may authorise the members for the time being of any such local board, or any of them to fill any vacancies therein and to act notwithstanding
vacancies and any such appointment or delegation may be made on such terms and subject to such conditions as the Directors may think fit and the Directors may at any time remove any natural person or corporation so appointed and may annul or vary
any such delegation, but no Person dealing in good faith and without notice of any such annulment or variation shall be affected thereby.

98. Any such delegates as aforesaid may be authorised by the Directors to sub-delegate all or any of the powers, authorities, and discretion for the time being vested in them.

**BORROWING POWERS OF DIRECTORS** 

99. The Directors may from time to time at their discretion exercise all the powers of the Company to raise or
borrow money and to mortgage or charge its undertaking, property and assets (present and future) and uncalled capital or any part thereof, to issue debentures, debenture stock, bonds and other securities, whether outright or as collateral security
for any debt, liability or obligation of the Company or of any third party.

**THE SEAL** 

100. The Seal shall not be affixed to any instrument except by the authority of a resolution of the Directors
provided always that such authority may be given prior to or after the affixing of the Seal and if given after may be in general form confirming a number of affixing of the Seal. The Seal shall be affixed in the presence of a Director or a Secretary
(or an assistant Secretary) or in the presence of any one or more Persons as the Directors may appoint for the purpose and every Person as aforesaid shall sign every instrument to which the Seal is so affixed in their presence.

101. The Company may maintain a facsimile of the Seal in such countries or places as the Directors may appoint and
such facsimile Seal shall not be affixed to any instrument except by the authority of a resolution of the Directors provided always that such authority may be given prior to or after the affixing of such facsimile Seal and if given after may be in
general form confirming a number of affixing of such facsimile Seal. The facsimile Seal shall be affixed in the presence of such Person or Persons as the Directors shall for this purpose appoint and such Person or Persons as aforesaid shall sign
every instrument to which the facsimile Seal is so affixed in their presence and such affixing of the facsimile Seal and signing as aforesaid shall have the same meaning and effect as if the Seal had been affixed in the presence of and the
instrument signed by a Director or a Secretary (or an assistant Secretary) or in the presence of any one or more Persons as the Directors may appoint for the purpose.

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102. Notwithstanding the foregoing, a Secretary or any assistant Secretary shall have the authority to affix the
Seal, or the facsimile Seal, to any instrument for the purposes of attesting authenticity of the matter contained therein but which does not create any obligation binding on the Company.

**DISQUALIFICATION OF DIRECTORS** 

103. The office of Director shall be vacated, if the Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) becomes bankrupt or makes any arrangement or composition with his creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) dies or is found to be or becomes of unsound mind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) resigns his office by notice in writing to the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is removed from office pursuant to any other provision of these Articles.

**PROCEEDINGS OF DIRECTORS** 

104. The Directors may meet together (either within or outside of the Cayman Islands, either physically in person or
virtually online) for the despatch of business, adjourn, and otherwise regulate their meetings and proceedings as they think fit. Questions arising at any meeting shall be decided by a majority of votes. At any meeting of the Directors, each
Director present in person or represented by his proxy or alternate shall be entitled to one vote. In case of an equality of votes the chairman of the meeting shall have a second or casting vote. A Director may, and a Secretary or assistant
Secretary on the requisition of a Director shall, at any time summon a meeting of the Directors.

105. A Director may participate in any meeting of the Directors, or of any committee appointed by the Directors of
which such Director is a member, by means of telephone or similar communication equipment by way of which all Persons participating in such meeting can communicate with each other and such participation shall be deemed to constitute presence in
person at the meeting.

106. The quorum necessary for the transaction of the business of the Board may be fixed by the Directors, and unless
so fixed, the quorum shall be a majority of Directors then in office, provided that any quorum shall require the presence of the Founder Director, provided further, however, that if such quorum cannot be obtained for a Board meeting after two
(2) consecutive notices of such meeting have been sent by the Company with the first notice providing not less than seven (7) days' prior notice and the second notice providing not less than five (5) days' prior notice,
then the attendance of any three (3) Directors shall constitute a quorum, provided further that matters discussed in such adjourned meeting shall be limited to those stated in the written notices and agendas of the Board meeting, and
resolutions passed in such meeting shall be subject to notices and agendas of such meeting as well as copies of all board papers shall be sent to all the Directors and each Shareholder who appointed a director to the Board at least seven
(7) days prior to the relevant Board meeting. If at any time there is only a sole Director, the quorum shall be one Director. A Director represented by proxy or by an alternate Director at any meeting shall be deemed to be present for the
purposes of determining whether or not a quorum is present.

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107. A Director who is in any way, whether directly or indirectly, interested in a contract or transaction or
proposed contract or transaction with the Company shall declare the nature of his interest at a meeting of the Directors. A general notice given to the Directors by any Director to the effect that he is a member of any specified company or firm and
is to be regarded as interested in any contract or transaction which may thereafter be made with that company or firm shall be deemed a sufficient declaration of interest in regard to any contract so made or transaction so consummated. Subject to
the Designated Stock Exchange Rules and disqualification by the chairman of the relevant Board meeting, a Director may vote in respect of any contract or transaction or proposed contract or transaction notwithstanding that he may be interested
therein and if he does so his vote shall be counted and he may be counted in the quorum at any meeting of the Directors at which any such contract or transaction or proposed contract or transaction shall come before the meeting for consideration.

108. 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 and no Director or intending Director shall be disqualified by his office from contracting with the Company
either with regard to his tenure of any such other office or place of profit or as vendor, purchaser or otherwise, nor shall any such contract or arrangement entered into by or on behalf of the Company in which any Director is in any way interested
be liable to be avoided, nor shall any Director so contracting or being so interested be liable to account to the Company for any profit realised by any such contract or arrangement by reason of such Director holding that office or of the fiduciary
relation thereby established. A Director, notwithstanding his interest, may be counted in the quorum present at any meeting of the Directors whereat he or any other Director is appointed to hold any such office or place of profit under the Company
or whereat the terms of any such appointment are arranged and he may vote on any such appointment or arrangement.

109. Any Director may act by himself or through 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; provided that nothing herein contained shall authorise a Director or his firm to act as auditor to the Company.

110. The Directors shall cause minutes to be made for the purpose of recording:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all appointments of officers made by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the names of the Directors present at each meeting of the Directors and of any committee of the Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all resolutions and proceedings at all meetings of the Company, and of the Directors and of committees of
Directors.

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111. When the chairman of a meeting of the Directors signs the minutes of such meeting the same shall be deemed to
have been duly held notwithstanding that all the Directors have not actually come together or that there may have been a technical defect in the proceedings.

112. A resolution in writing signed by all the Directors or all the members of a committee of Directors entitled to
receive notice of a meeting of Directors or committee of Directors, as the case may be (an alternate Director, subject as provided otherwise in the terms of appointment of the alternate Director, being entitled to sign such a resolution on behalf of
his appointer), shall be as valid and effectual as if it had been passed at a duly called and constituted meeting of Directors or committee of Directors, as the case may be. When signed a resolution may consist of several documents each signed by
one or more of the Directors or his duly appointed alternate.

113. The continuing Directors may act notwithstanding any vacancy in their body but if and for so long as their
number is reduced below the number fixed by or pursuant to these Articles as the necessary quorum of Directors, the continuing Directors may act for the purpose of increasing the number, or of summoning a general meeting of the Company, but for no
other purpose.

114. Subject to any regulations imposed on it by the Directors, a committee appointed by the Directors may elect a
chairman of its meetings. If no such chairman is elected, or if at any meeting the chairman is not present within fifteen minutes after the time appointed for holding the meeting, the committee members present may choose one of them to be chairman
of the meeting.

115. A committee appointed by the Directors may meet and adjourn as it thinks proper. Subject to any regulations
imposed on it by the Directors, questions arising at any meeting shall be determined by a majority of votes of the committee members present and in case of an equality of votes the chairman shall have a second or casting vote.

116. All acts done by any meeting of the Directors or of a committee of Directors, or by any Person acting as a
Director, shall notwithstanding that it be afterwards discovered that there was some defect in the appointment of any such Director or Person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such Person had
been duly appointed and was qualified to be a Director.

**PRESUMPTION OF ASSENT** 

117. A Director who is present at a meeting of the Board of Directors at which an 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 or shall forward such dissent by registered post to such person immediately after the adjournment of the meeting. Such right to dissent shall not apply to a Director who voted in favour of such action.

**DIVIDENDS** 

118. Subject to any rights and restrictions for the time being attached to any Shares, the Directors may from time
to time declare dividends (including interim dividends) and other distributions on Shares in issue and authorise payment of the same out of the funds of the Company lawfully available therefor.

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119. Subject to any rights and restrictions for the time being attached to any Shares, the Company by an Ordinary
Resolution may declare dividends, but no dividend shall exceed the amount recommended by the Directors.

120. The Directors may, before recommending or declaring any dividend, set aside out of the funds legally available
for distribution such sums as they think proper as a reserve or reserves which shall, in the absolute discretion of the Directors, be applicable for meeting contingencies or for equalising dividends or for any other purpose to which those funds may
be properly applied, and pending such application may in the absolute discretion of the Directors, either be employed in the business of the Company or be invested in such investments (other than Shares of the Company) as the Directors may from time
to time think fit.

121. Any dividend payable in cash to the holder of Shares may be paid in any manner determined by the Directors. If
paid by cheque it will be sent by mail addressed to the holder at his address in the Register, or addressed to such person and at such addresses as the holder may direct. Every such cheque or warrant shall, unless the holder or joint holders
otherwise direct, be made payable to the order of the holder or, in the case of joint holders, to the order of the holder whose name stands first on the Register in respect of such Shares, and shall be sent at his or their risk and payment of the
cheque or warrant by the bank on which it is drawn shall constitute a good discharge to the Company.

122. The Directors may determine that a dividend shall be paid wholly or partly by the distribution of specific
assets (which may consist of the shares or securities of any other company) and may settle all questions concerning such distribution. Without limiting the generality of the foregoing, the Directors may fix the value of such specific assets, may
determine that cash payment shall be made to some Shareholders in lieu of specific assets and may vest any such specific assets in trustees on such terms as the Directors think fit.

123. Subject to any rights and restrictions for the time being attached to any Shares, all dividends shall be
declared and paid according to the amounts paid up on the Shares, but if and for so long as nothing is paid up on any of the Shares dividends may be declared and paid according to the par value of the Shares. No amount paid on a Share in advance of
calls shall, while carrying interest, be treated for the purposes of this Article as paid on the Share.

124. If several Persons are registered as joint holders of any Share, any of them may give effective receipts for
any dividend or other moneys payable on or in respect of the Share.

125. No dividend shall bear interest against the Company.

126. Any dividend unclaimed after a period of six calendar years from the date of declaration of such dividend may
be forfeited by the Board of Directors and, if so forfeited, shall revert to the Company.

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**ACCOUNTS, AUDIT AND ANNUAL RETURN AND DECLARATION** 

127. The books of account relating to the Company's affairs shall be kept in such manner as may be determined
from time to time by the Directors.

128. The books of account shall be kept at the Registered Office or at such other place or places as the Directors
think fit, and shall always be open to the inspection of the Directors.

129. The Directors may 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 Shareholders not being Directors, and no Shareholder (not being a Director) shall have any right to inspect any account or book or
document of the Company except as conferred by law or authorised by the Directors or by an Ordinary Resolution.

130. The accounts relating to the Company's affairs shall be audited in such manner and with such financial
year end as may be determined from time to time by the Directors or failing any determination as aforesaid shall not be audited.

131. The Directors may appoint an auditor of the Company who shall hold office until removed from office by a
resolution of the Directors and may fix his or their remuneration.

132. 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 of the Company such information and explanation as may be necessary for the performance of the duties of the auditors.

133. The auditors shall, if so required by the Directors, make a report on the accounts of the Company during their
tenure of office at the next annual general meeting following their appointment, and at any time during their term of office, upon request of the Directors or any general meeting of the Members.

134. The Directors in each calendar year shall prepare, or cause to be prepared, an annual return and declaration
setting forth the particulars required by the Companies Act and deliver a copy thereof to the Registrar of Companies in the Cayman Islands.

**CAPITALISATION OF RESERVES** 

135. Subject to the Companies Act, the Directors may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) resolve to capitalise an amount standing to the credit of reserves (including a Share Premium Account, capital
redemption reserve and profit and loss account), which is available for distribution;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) appropriate the sum resolved to be capitalised to the Shareholders in proportion to the nominal amount of
Shares (whether or not fully paid) held by them respectively and apply that sum on their behalf in or towards:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) paying up the amounts (if any) for the time being unpaid on Shares held by them respectively, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) paying up in full unissued Shares or debentures of a nominal amount equal to that sum,

and allot the Shares or debentures, credited as fully paid, to the Shareholders (or as they may direct) in those proportions, or partly in one way and partly in the other, but the Share Premium Account, the capital redemption reserve and profits which are not available for distribution may, for the purposes of this Article, only be applied in paying up unissued Shares to be allotted to Shareholders credited as fully paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make any arrangements they think fit to resolve a difficulty arising in the distribution of a capitalised
reserve and in particular, without limitation, where Shares or debentures become distributable in fractions the Directors may deal with the fractions as they think fit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) authorise a Person to enter (on behalf of all the Shareholders concerned) into an agreement with the Company
providing for either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the allotment to the Shareholders respectively, credited as fully paid, of Shares or debentures to which they
may be entitled on the capitalisation, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the payment by the Company on behalf of the Shareholders (by the application of their respective proportions of
the reserves resolved to be capitalised) of the amounts or part of the amounts remaining unpaid on their existing Shares,

and any such agreement made under this authority being effective and binding on all those Shareholders; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) generally do all acts and things required to give effect to the resolution.

136. Notwithstanding any provisions in these Articles and subject to the Companies Act, the Directors may resolve to
capitalise an amount standing to the credit of reserves (including the share premium account, capital redemption reserve and profit and loss account) or otherwise available for distribution by applying such sum in paying up in full unissued Shares
to be allotted and issued to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) employees (including Directors) or service providers of the Company or its Affiliates upon exercise or vesting
of any options or awards granted under any share incentive scheme or employee benefit scheme or other arrangement which relates to such persons that has been adopted or approved by the Directors or the Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any trustee of any trust or administrator of any share incentive scheme or employee benefit scheme to whom
shares are to be allotted and issued by the Company in connection with the operation of any share incentive scheme or employee benefit scheme or other arrangement which relates to such persons that has been adopted or approved by the Directors or
Members; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) service providers of the Company or its Affiliates upon exercise or vesting of any options or awards granted
under any share incentive scheme or employee benefit scheme or other arrangement which relates to such persons that has been adopted or approved by the Directors or the Members.

**SHARE PREMIUM ACCOUNT** 

137. The Directors shall in accordance with the Companies Act establish a Share Premium Account and shall carry to
the credit of such account from time to time a sum equal to the amount or value of the premium paid on the issue of any Share.

138. There shall be debited to any Share Premium Account on the redemption or purchase of a Share the difference
between the nominal value of such Share and the redemption or purchase price provided always that at the discretion of the Directors such sum may be paid out of the profits of the Company or, if permitted by the Companies Act, out of capital.

**NOTICES** 

139. Except as otherwise provided in these Articles, any notice or document may be served by the Company or by the
Person entitled to give notice to any Shareholder either personally, or by posting it by airmail or a recognised courier service in a prepaid letter addressed to such Shareholder at his address as appearing in the Register, or by electronic mail to
any electronic mail address such Shareholder may have specified in writing for the purpose of such service of notices, or by facsimile to any facsimile number such Shareholder may have specified in writing for the purpose of such service of notices,
or by placing it on the Company's Website should the Directors deem it appropriate. In the case of joint holders of a Share, all notices shall be given to that one of the joint holders whose name stands first in the Register in respect of the
joint holding, and notice so given shall be sufficient notice to all the joint holders.

140. Any Shareholder Present at any meeting of the Company shall for all purposes be deemed to have received due
notice of such meeting and, where requisite, of the purposes for which such meeting was convened.

141. Any notice or other document, if served by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) post, shall be deemed to have been served five (5) calendar days after the time when the letter containing
the same is posted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) facsimile, shall be deemed to have been served upon production by the transmitting facsimile machine of a
report confirming transmission of the facsimile in full to the facsimile number of the recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) recognised courier service, shall be deemed to have been served 48 hours after the time when the letter
containing the same is delivered to the courier service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) electronic means, shall be deemed to have been served immediately (i) upon the time of the transmission to
the electronic mail address supplied by the Shareholder to the Company or (ii) upon the time of its placement on the Company's Website.

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In proving service by post or courier service it shall be sufficient to prove that the letter containing the notice or documents was properly addressed and duly posted or delivered to the courier service.

142. Any notice or document delivered or sent by post to or left at the registered address of any Shareholder in
accordance with the terms of these Articles shall notwithstanding that such Shareholder be then dead or bankrupt, and whether or not the Company has notice of his death or bankruptcy, be deemed to have been duly served in respect of any Share
registered in the name of such Shareholder as sole or joint holder, unless his name shall at the time of the service of the notice or document have been removed from the Register as the holder of the Share, and such service shall for all purposes be
deemed a sufficient service of such notice or document on all Persons interested (whether jointly with or as claiming through or under him) in the Share.

143. Notice of every general meeting of the Company shall be given to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all Shareholders holding Shares with the right to receive notice and who have supplied to the Company an
address for the giving of notices to them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) every Person entitled to a Share in consequence of the death or bankruptcy of a Shareholder, who but for his
death or bankruptcy would be entitled to receive notice of the meeting.

No other Person shall be entitled to receive notices of general meetings.

**INFORMATION** 

144. Subject to the relevant laws, rules and regulations applicable to the Company, no Member shall be entitled to
require discovery of any information in respect of any detail of the Company's trading or any information which is or may be in the nature of a trade secret or secret process which may relate to the conduct of the business of the Company and
which in the opinion of the Board would not be in the interests of the Members of the Company to communicate to the public.

145. Subject to due compliance with the relevant laws, rules and regulations applicable to the Company, the Board
shall be entitled to release or disclose any information in its possession, custody or control regarding the Company or its affairs to any of its Members including, without limitation, information contained in the Register and transfer books of the
Company.

**INDEMNITY** 

146. Every Director (including for the purposes of this Article any alternate Director appointed pursuant to the
provisions of these Articles), Secretary, assistant Secretary, or other officer for the time being and from time to time of the Company (but not including the Company's auditors) and the personal representatives of the same (each an
"Indemnified Person") shall be indemnified and secured harmless against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such Indemnified Person, other than by reason of such
Indemnified Person's own dishonesty, willful default or fraud, in or about the conduct of the Company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers,
authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such Indemnified Person in defending (whether successfully or otherwise) any civil proceedings
concerning the Company or its affairs in any court whether in the Cayman Islands or elsewhere.

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147. No Indemnified Person shall be liable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for the acts, receipts, neglects, defaults or omissions of any other Director or officer or agent of the
Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any loss on account of defect of title to any property of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on account of the insufficiency of any security in or upon which any money of the Company shall be invested; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) for any loss incurred through any bank, broker or other similar Person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) for any loss occasioned by any negligence, default, breach of duty, breach of trust, error of judgement or
oversight on such Indemnified Person's part; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) for any loss, damage or misfortune whatsoever which may happen in or arise from the execution or discharge of
the duties, powers, authorities, or discretions of such Indemnified Person's office or in relation thereto;

unless the same shall happen through such Indemnified Person's own dishonesty, willful default or fraud.

**FINANCIAL YEAR** 

148. Unless the Directors otherwise prescribe, the financial year of the Company shall end on 31 December in
each calendar year and shall begin on 1 January in each calendar year.

**NON-RECOGNITION OF TRUSTS** 

149. No Person shall be recognised by the Company as holding any Share upon any trust and the Company shall not,
unless required by law, be bound by or be compelled in any way to recognise (even when having notice thereof) any equitable, contingent, future or partial interest in any Share or (except only as otherwise provided by these Articles or as the
Companies Act requires) any other right in respect of any Share except an absolute right to the entirety thereof in each Shareholder registered in the Register.

**WINDING UP** 

150. If the Company shall be wound up the liquidator may, with the sanction of a Special Resolution of the Company
and any other sanction required by the Companies Act, divide amongst the Members in species or 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, subject to Article 151, 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.

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151. 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.

**AMENDMENT OF ARTICLES OF ASSOCIATION** 

152. Subject to the Companies Act, the Company may at any time and from time to time by a Special Resolution alter
or amend these Articles in whole or in part.

**CLOSING OF REGISTER OR FIXING RECORD DATE** 

153. For the purpose of determining those Shareholders that are entitled to receive notice of, attend or vote at any
meeting of Shareholders or any adjournment thereof, or those Shareholders that are entitled to receive payment of any dividend, or in order to make a determination as to who is a Shareholder for any other purpose, the Directors may provide that the
Register shall be closed for transfers for a stated period which shall not exceed in any case thirty (30) calendar days in any calendar year.

154. In lieu of or apart from closing the Register, the Directors may fix in advance a date as the record date for
any such determination of those Shareholders that are entitled to receive notice of, attend or vote at a meeting of the Shareholders and for the purpose of determining those Shareholders that are entitled to receive payment of any dividend the
Directors may, at or within ninety (90) calendar days prior to the date of declaration of such dividend, fix a subsequent date as the record date for such determination.

155. If the Register is not so closed and no record date is fixed for the determination of those Shareholders
entitled to receive notice of, attend or vote at a meeting of Shareholders or those Shareholders that are entitled to receive payment of a dividend, the date on which notice of the meeting is posted or the date on which the resolution of the
Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of Shareholders. When a determination of those Shareholders that are entitled to receive notice of, attend or vote at a meeting of
Shareholders has been made as provided in this Article, such determination shall apply to any adjournment thereof.

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**REGISTRATION BY WAY OF CONTINUATION** 

156. The Company may by a Special Resolution resolve to be registered by way of continuation in a jurisdiction
outside the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing. In furtherance of a resolution adopted pursuant to this Article, the Directors may cause an application to be made to the
Registrar of Companies to deregister the Company in the Cayman Islands or such other jurisdiction in which it is for the time being incorporated, registered or existing and may cause all such further steps as they consider appropriate to be taken to
effect the transfer by way of continuation of the Company.

**DISCLOSURE** 

157. The Directors, or any service providers (including the officers, the Secretary and the Registered Office
provider of the Company) specifically authorised by the Directors, shall be entitled to disclose to any regulatory or judicial authority or to any stock exchange on which securities of the Company may from time to time be listed any information
regarding the affairs of the Company including without limitation information contained in the Register and books of the Company.

**EXCLUSIVE FORUM** 

158. For the avoidance of doubt and without limiting the jurisdiction of the courts of the Cayman Islands to hear,
settle and/or determine disputes related to the Company, the courts of the Cayman Islands shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim
of breach of a fiduciary duty owed by any Director, officer or other employee of the Company to the Company or the Members, (iii) any action asserting a claim arising pursuant to any provision of the Companies Act or these Articles including
but not limited to any purchase or acquisition of the Shares, security or guarantee provided in consideration thereof, or (iv) any action asserting a claim against the Company which if brought in the United States of America would be a claim
arising under the internal affairs doctrine (as such concept is recognised under the laws of the United States from time to time).

159. Unless the Company consents in writing to the selection of an alternative forum, the United States District
Court for the Southern District of New York (or, if the United States District Court for the Southern District of New York lacks subject matter jurisdiction over a particular dispute, the state courts in New York County, New York) shall be the
exclusive forum within the United States for the resolution of any complaint asserting a cause of action arising out of or relating in any way to the federal securities laws of the United States, regardless of whether such legal suit, action, or
proceeding also involves parties other than the Company. Any person or entity purchasing or otherwise acquiring any Share or other securities in the Company, or purchasing or otherwise acquiring the Shares issued pursuant to deposit agreements,
cannot waive compliance with the federal securities laws of the United States and the rules and regulations thereunder with respect to claims arising under the Securities Act and shall be deemed to have notice of and consented to the provisions of
this Article. Without prejudice to the foregoing, if the provision in this Article is held to be illegal, invalid or unenforceable under applicable law, the legality, validity or enforceability of the rest of these Articles shall not be affected and
this Article shall be interpreted and construed to the maximum extent possible to apply in the relevant jurisdiction with whatever modification or deletion may be necessary so as best to give effect to the intention of the Company.

## Exhibit 2.1

**Exhibit 2.1** 

**SHARE CERTIFICATE** 

---

| | | |
|:---|:---|:---|
| **Number** | **Shares** | **Shares** |
|  xx |  | x,xxx,xxx.0 |

---

**Leoch Energy Inc** 

**THIS SHARE CERTIFICATE CERTIFIES THAT** as of [date], [Name of shareholder] of [Address of shareholder] is the registered holder of [total number of share for shareholder] fully paid Ordinary Share(s) of US$0.000005 par value per share in the above named Company which are held subject to, and transferable in accordance with, the Amended and Restated Memorandum and Articles of Association of the Company (as Revised).

In Witness Whereof the Company has authorised this certificate to be issued on [date].

---

| | |
|:---|:---|
| **By** | |
|  | **Director** |

---

## Exhibit 2.2

**Exhibit 2.2** 

**SEPARATION AND DISTRIBUTION AGREEMENT** 

**by and between** 

**Leoch International Technology Limited** 

**and** 

**Leoch Energy Inc** 

**Date as of December 17, 2025** 

------

**SEPARATION AND DISTRIBUTION AGREEMENT** 

This SEPARATION AND DISTRIBUTION AGREEMENT (this "**Agreement**"), dated as of December 17, 2025, is entered into by and between Leoch International Technology Limited, an exempted company incorporated under the Laws of the Cayman Islands ("**ParentCo**"), and Leoch Energy Inc, an exempted company incorporated under the Laws of the Cayman Islands ("**SpinCo**") (each a "**Party**" and collectively, the "**Parties**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings assigned to them in Article 1.

RECITALS

WHEREAS, the board of directors of ParentCo (the "**ParentCo Board**") has determined that it is appropriate, desirable and in the best interests of ParentCo and its shareholders to separate its two businesses, the ParentCo Business and the SpinCo Business, into ParentCo and SpinCo respectively, two publicly traded companies, by means of the transfer/assumption of certain assets and liabilities from ParentCo or any of the ParentCo Subsidiaries to SpinCo or any of the SpinCo Subsidiaries and the transfer/assumption of certain assets and liabilities from SpinCo or any of the SpinCo Subsidiaries to ParentCo or any of the ParentCo Subsidiaries, all as more fully described in this Agreement and the Ancillary Agreements (the "**Separation**");

WHEREAS, on the Distribution Date, ParentCo will make a distribution, on a pro rata basis and in accordance with the applicable provisions of this Agreement, including Article 3, to holders of ParentCo Ordinary Shares on the Record Date of all the outstanding SpinCo Ordinary Shares owned by Parent (the "**Distribution**");

WHEREAS, the Parties intend in this Agreement to set forth the principal corporate arrangements between the Parties with respect to the Separation and the Distribution.

NOW, THEREFORE, in consideration of the foregoing and the terms, conditions, covenants and provisions of this Agreement, ParentCo and SpinCo mutually covenant and agree as follows:

ARTICLE 1

DEFINITIONS

"**Action**" shall mean any demand, action, cause of action, claim, counterclaim, dispute, suit, countersuit, arbitration, hearing, inquiry, subpoena, proceeding, examination or investigation (whether criminal, civil, legislative, administrative, regulatory, prosecutorial, appellate or otherwise) by or before any federal, state, local, foreign or international Governmental Entity or any arbitration or mediation tribunal.

"**Affiliate**" of a Person shall mean any firm, individual, corporation, business trust, joint venture, association, company, limited liability company, partnership, or other organization or entity, that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control (provided that such common control is not by a natural person) with such specified Person. As used herein, "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or other interests, by contract or otherwise; *provided* that if control is deemed solely on the basis of ownership of voting securities or other interests, such ownership must be in excess of fifty percent (50%) of the then-outstanding shares of common stock or the combined voting power of such Person. For the sake of clarity, neither SpinCo nor any of the SpinCo Subsidiaries shall be considered Affiliates of ParentCo and the ParentCo Subsidiaries under this Agreement and vice versa.

------

"**Agreement**" shall have the meaning set forth in the preamble hereof.

"**Ancillary Agreements**" shall mean all of the contracts, obligations, indentures, agreements, leases, purchase orders, commitments, permits, licenses, notes, bonds, mortgages, arrangements or undertakings (whether written or oral and whether express or implied) that are legally binding on either Party or any part of its property under applicable Law entered into in connection with the transactions contemplated hereby, including the documents listed on Schedule I, to be delivered by SpinCo and ParentCo in connection with the Separation.

"**Assumption**" shall have the meaning set forth in Section 2.02(a).

**"Chairman"** shall have the meaning set forth in Section 3.04(b).

"**Closing of the Books Method**" shall mean the apportionment of items between Tax periods (or portions of a Tax period) based on a closing of the books and records on the close of the Distribution Date (in the event that the Distribution Date is not the last day of the Tax period, as if the Distribution Date were the last day of the Tax period), subject to adjustment for items accrued on the Distribution Date that are properly allocable to the Tax period following the Distribution, as determined by ParentCo in accordance with applicable Law; provided that Taxes not based upon or measured by net or gross income or specific events shall be apportioned between the Pre-Disposition Tax Period and Post-Distribution Tax Period on a pro rata basis in accordance with the number of days in each Tax period.

"**Combined Books and Records**" shall have the meaning set forth in Section 8.01(b).

"**Connected Transactions**" shall mean the transactions with the ParentCo Group under this Agreement and the Ancillary Agreements that will constitute connected transactions under the Hong Kong Listing Rules upon completion of the Distribution and which will be subject to the independent shareholders' approval requirement under the Hong Kong Listing Rules.

"**Consent**" shall mean any consent, waiver, notice, report or other filing obtained, made or to be obtained from or made, including with respect to any Contract, or any registration, notification, dossier, appendices, license, permit, approval, authorization to be obtained from, or approval from, or notification requirement to, any third parties, including any Third Party to a Contract and any Governmental Entity.

------

"**Contract**" shall mean any contract, obligation, indenture, agreement, lease, purchase order, commitment, permit, license, note, bond, mortgage, arrangement or undertaking (whether written or oral and whether express or implied) that is legally binding on any Person or any part of its property under applicable Law, but excluding this Agreement and any Ancillary Agreement save as otherwise expressly provided in this Agreement or any Ancillary Agreement.

"**Controlling Shareholder**" when used with respect to any specified Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or other interests, by Contract or otherwise.

"**Dispute**" shall have the meaning set forth in Section 9.02.

"**Distribution**" shall have the meaning set forth in the recitals hereto.

"**Distribution Agent**" shall mean an authorized qualified agent for the Distribution, which shall be determined by ParentCo Board in its sole and absolute discretion.

"**Distribution Date**" shall mean the date of the consummation of the Distribution, which shall be determined by ParentCo Board in its sole and absolute discretion.

"**Distribution Disclosure Documents**" shall mean (a) any registration statement filed or to be filed by SpinCo with the SEC to effect the registration of SpinCo Ordinary Shares in connection with the Distribution, and also includes any amendment or supplement thereto, information statement, prospectus, offering memorandum, offering circular, periodic report or similar disclosure document, whether or not filed with the SEC or any other Governmental Entity, and (b) any current reports on Form 6-K filed or furnished with the SEC by SpinCo in connection with the Distribution.

"**Effective Time**" shall mean 11:59 p.m., New York City time, on the Distribution Date.

"**Extraordinary General Meeting**" shall mean the meeting of the ParentCo Shareholders entitled to vote as of the Record Date approving the transactions contemplated by this Agreement and the Connected Transactions.

"**Global Markets**" means regions other than the PRC, Hong Kong Special Administrative Region and Macau Special Administrative Region.

"**Governmental Approvals**" shall mean any notices, reports or other filings to be made, or any consents, registrations, approvals, permits or authorizations to be obtained from, any Governmental Entity.

------

"**Governmental Entity**" shall mean any federal, state, local, foreign or international court, government department, commission, board, bureau, agency, official or other regulatory, administrative or governmental entity.

"**HKIAC**" shall have the meaning set forth in Section 9.02.

"**Hong Kong Listing Rules**" refers to the rules governing the listing of securities on The Stock Exchange of Hong Kong Limited.

"**Indemnifying Party**" shall have the meaning set forth in Section 5.04(a).

"**Indemnitee**" shall have the meaning set forth in Section 5.04(a).

"**Indemnity Payment**" shall have the meaning set forth in Section 5.04(a).

"**Ineligible Person**" shall have the meaning set forth in the Recitals.

"**Information**" shall mean information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, Contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys (including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), communications and materials otherwise related to or made or prepared in connection with or in preparation for any legal proceeding, and other technical, financial, employee or business information or data.

"**Insurance Proceeds**" shall mean those monies (a) received by an insured from an unaffiliated Third Party insurer under any ParentCo Pre-Distribution Policy, or (b) paid by such Third Party insurer on behalf of an insured under any ParentCo Pre-Distribution Policy, in either case net of any applicable premium adjustment, retrospectively-rated premium, deductible, retention, or cost of reserve paid or held by or for the benefit of such insured.

"**Intellectual Property**" shall mean all intellectual property and industrial property rights of any kind or nature, including all (a) patents, patent applications, patent disclosures, and all related continuations, continuations-in-part, divisionals, reissues, re-examinations, substitutions and extensions thereof, (b) trademarks and all goodwill associated therewith, (c) copyrights and copyrightable subject matter, whether statutory or common law, registered or unregistered and published or unpublished, (d) rights of publicity, (e) moral rights and rights of attribution and integrity, (f) rights in software, (g) trade secrets and all other confidential and proprietary information, know-how, inventions, improvements, processes, formulae, models and methodologies, (h) rights to domain names, (i) rights to personal information, (j) telephone numbers and internet protocol addresses, (k) applications and registrations for the foregoing, and (l) Actions against past, present, and future infringement, misappropriation, or other violation of the foregoing.

------

"**Law**" shall mean any United States or non-United States federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, order, requirement or rule of law (including common law).

"**Liabilities**" shall mean any and all debts, liabilities, and obligations, whether accrued or fixed, known or unknown, absolute or contingent, matured or unmatured, reserved or unreserved, paid or unpaid or determined or determinable of any kind or nature whatsoever, including those arising under any Law or Action, whether asserted or unasserted, or order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental entity, and those arising under any Contract or any fines, damages or equitable relief which may be imposed in connection with any of the foregoing and including all costs and expenses related thereto.

"**Memorandum and Articles**" shall mean the Amended and Restated Memorandum and Articles of Association of SpinCo, in the form attached hereto as Exhibit A.

"**ParentCo**" shall have the meaning set forth in the preamble hereof.

"**ParentCo Assets**" shall mean any and all assets of ParentCo and its Affiliates (whether accrued, contingent or otherwise) other than the SpinCo Assets.

"**ParentCo Board**" shall have the meaning set forth in the Recitals.

"**ParentCo Business**" shall mean such business other than the SpinCo Business as conducted by ParentCo prior to or as of the Effective Time.

"**ParentCo General Liability Policies**" shall mean all ParentCo Pre-Distribution Policies that respond to claims on an occurrence basis.

"**ParentCo Group**" shall mean, immediately after the Effective Time, (a) ParentCo and (b) each of ParentCo Subsidiaries.

"**ParentCo Indemnitees**" shall have the meaning set forth in Section 5.02.

"**ParentCo Insider Shareholders**" shall mean the insiders (including directors, officers employees and Controlling Shareholders) of ParentCo who are ParentCo Shareholders.

"**ParentCo Liabilities**" shall mean any and all Liabilities of ParentCo and its Affiliates (whether accrued, contingent or otherwise) other than the SpinCo Liabilities, including, the potential liability associated with the ParentCo Assets.

"**ParentCo Ordinary Shares**" shall mean the ordinary shares of ParentCo, HK$0.1 par value per share.

------

"**ParentCo Policies**" shall mean all ParentCo Pre-Distribution Policies that respond to claims on a claims-made basis.

"**ParentCo Pre-Distribution Policies**" shall mean all Policies, other than the SpinCo Policies and including the ParentCo General Liability Policies and the ParentCo Policies, entered prior to or as of the Effective Time, which are between or among ParentCo and one or more Third Parties, that benefit either or both the ParentCo Business and the SpinCo Business.

"**ParentCo Shareholder**" shall have the meaning set forth in the Recitals.

"**ParentCo Shareholder Approval**" shall mean the approval, at the Extraordinary General Meeting where a quorum is present, of the transactions contemplated by this Agreement and the Connected Transactions, by an ordinary resolution of ParentCo Shareholders requiring the affirmative vote of the holders of the requisite number of ParentCo Ordinary Shares entitled to vote thereon, whether in person or by proxy at the Extraordinary General Meeting (or any adjournment or postponement thereof), in accordance with the memorandum and articles of association of ParentCo and applicable Law (including the Hong Kong Listing Rules).

"**ParentCo Subsidiaries**" shall mean all the Subsidiaries of ParentCo that are not SpinCo and SpinCo Subsidiaries.

"**Party(ies)**" shall have the meaning set forth in the preamble hereof.

"**Person**" shall mean any natural person, firm, individual, corporation, business trust, joint venture, association, company, limited liability company, partnership, or other organization or entity, whether incorporated or unincorporated, or any Governmental Entity.

"**Policies**" shall mean insurance policies and insurance Contracts of any kind (other than life and benefits policies or Contracts).

"**Post-Distribution Tax Period**" shall mean any Tax period (or portion thereof) beginning after the Distribution Date.

"**PRC**" shall refer to the People's Republic of China, excluding, for the purposes of this Agreement only, the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan.

"**Pre-Distribution Tax Period**" shall mean any Tax period (or portion thereof) ending on or before the Distribution Date.

"**Record Date**" shall mean the close of business on the date to be determined by ParentCo Board as the record date for the Distribution.

"**Record Holder**" shall mean the holders of record of ParentCo Ordinary Shares as of the close of business on the Record Date.

------

"**SEC**" shall mean the United States Securities and Exchange Commission or any successor agency thereto.

"**Securities Act**" shall mean the Securities Act of 1933, together with the rules and regulations promulgated thereunder.

"**Security Interest**" shall mean any mortgage, security interest, pledge, lien, charge, claim, option, right to acquire, voting or other restriction, right-of-way, covenant, condition, easement, encroachment, restriction on transfer, or other encumbrance of any nature whatsoever, excluding restrictions on transfer under security Laws.

"**Separation**" shall have the meaning set forth in the recitals hereto.

"**Shared Contract**" shall mean any Contract of ParentCo Group or SpinCo Group that, as of the Distribution, relates in any material respect to both the ParentCo Business, on the one hand, and the SpinCo Business, on the other hand in respect of rights or performance obligations for periods of time after the Distribution.

"**Shared Contractual Liabilities**" shall mean Liabilities in respect of Shared Contracts.

"**Spin Off Recipients**" shall mean the Persons who are Record Holders.

"**SpinCo**" shall have the meaning set forth in the preamble hereof.

"**SpinCo Assets**" shall mean (without duplication) the assets that relate to the SpinCo Business, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all categories of assets that are reflected as assets of SpinCo in the consolidated balance sheet of SpinCo as
of June 30, 2025, included in the relevant Distribution Disclosure Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all of ParentCo's rights, title and interest in and to all Intellectual Property, including trade
secrets, not hereto forth described in the definition of SpinCo Assets that are exclusively to be used in the SpinCo Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all SpinCo Books and Records. "**SpinCo Books and Records**" shall mean books and records which
relate to SpinCo, the SpinCo Assets, the SpinCo Liabilities or the conduct of the SpinCo Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all rights and benefits of ParentCo in existence as of the Effective Time or arising after the Effective Time
(the "**Assumed Contracts**") that relate to the SpinCo Business, including any rights to Intellectual Property or SpinCo copyrights contained therein. The Assumed Contracts shall be deemed to include all purchase, work and change
orders related thereto;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all SpinCo Permits as of the Effective Time and all rights, interests or claims of ParentCo, ParentCo
Subsidiaries, SpinCo or SpinCo Subsidiaries thereunder as of the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all of ParentCo's rights under the leases relating to the SpinCo Business, and all of ParentCo's
rights, title and interest in and to the lessee improvements and the sublessee improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any and all interest in the SpinCo Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) SpinCo Policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all of ParentCo's rights, title and interest in and to any and all other assets that are expressly
contemplated by this Agreement or any Ancillary Agreement (or the Attachments and Schedules hereto or thereto) to be transferred to SpinCo or any of the SpinCo Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) to the extent not already identified in the aforesaid subclauses (a) through (i), all assets of any of
Parties, ParentCo Subsidiaries or SpinCo Subsidiaries as of the Effective Time that are primarily related to the SpinCo Business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) subject to applicable Law and the provisions of the applicable Ancillary Agreements, to the extent not already
identified in the aforesaid subclauses (a) through (j), all rights, interests and claims of any of the Parties, the ParentCo Subsidiaries and the SpinCo Subsidiaries as of the Effective Time with respect to Information that is exclusively
related to the SpinCo Assets, the SpinCo Liabilities, or the SpinCo Business.

For the avoidance of doubt and notwithstanding anything to the contrary herein, SpinCo Assets shall not include (i) any net operating losses, net operating loss carry-forwards or other Tax attributes of ParentCo, whether or not relating to SpinCo or the SpinCo Business, or (ii) the ParentCo Assets.

"**SpinCo Business**" shall mean the business of ParentCo in Global Market as identified in the relevant Distribution Disclosure Documents, as conducted or proposed to be conducted by ParentCo prior to or as of the Effective Time.

"**SpinCo Employees**" shall mean all employees of SpinCo that relate to operation of the SpinCo Business.

"**SpinCo Group**" shall mean, immediately after the Effective Time, (a) SpinCo and (b) each of SpinCo Subsidiaries.

"**SpinCo Indemnitees**" shall have the meaning set forth in Section 5.03.

------

"**SpinCo Liabilities**" shall mean (without duplication) the liabilities that are relating to the SpinCo Business or the SpinCo Assets, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all categories of Liabilities that are reflected as liabilities of SpinCo in the consolidated balance sheet of
SpinCo as of June 30, 2025, included in the relevant Distribution Disclosure Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Liabilities under the Assumed Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Liabilities under the leases relating to the SpinCo Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all litigation matters that relate to the SpinCo Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all other Liabilities of SpinCo relating to, arising out of or resulting from SpinCo's
performance or obligations under any Ancillary Agreement or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any and all other Liabilities that are expressly contemplated by this Agreement or any Ancillary Agreement (or
the attachments and schedules hereto or thereto) to be transferred to and assumed by SpinCo or any of the SpinCo Subsidiaries, or relating to the SpinCo Business.

"**SpinCo Ordinary Shares**" shall mean the ordinary shares in the share capital of the SpinCo of a par value of US$0.000005 each.

"**SpinCo Permits**" shall mean all Governmental Approvals owned or licensed by ParentCo, any ParentCo Subsidiary, SpinCo or any SpinCo Subsidiary primarily used or primarily held for use in the SpinCo Business as of the Effective Time.

"**SpinCo Policies**" shall mean all Policies, current or past, which are owned or maintained by or on behalf of ParentCo or its Subsidiaries, which relate solely to the SpinCo Business and are assignable to SpinCo.

"**SpinCo Subsidiaries**" shall mean SpinCo's Subsidiaries.

"**Stock Exchange**" shall mean the New York Stock Exchange/ National Association of Securities Dealers Automated Quotations (NASDAQ) or any successor thereto.

"**Stock Exchange Listing Application**" shall have the meaning set forth in Section 3.03(a).

"**Straddle Tax Period**" means a Tax period that includes but does not end on the Distribution Date.

------

"**Subsidiary**" of a Person shall mean any firm, individual, corporation, business trust, joint venture, association, company, limited liability company, partnership, or other organization or entity, whether incorporated or unincorporated of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization, that is directly or indirectly owned, or controlled through contractual arrangements or otherwise, by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries; *provided*, *however*, that no Person that is not directly or indirectly wholly owned by any other Person shall be a Subsidiary of such other Person unless such other Person controls, or has the right, power or ability to control, that Person. For the sake of clarity, SpinCo shall not be considered a Subsidiary of ParentCo under this Agreement.

"**Tax**" (and the correlative meaning, "**Taxes**," "**Taxing**" and "**Taxable**") shall mean (i) all taxes, charges, fees, duties, levies, imposts or other assessments imposed by any Tax Authority in any jurisdiction or a political subdivision thereof, including, but not limited to, income, gross receipts, excise, property, sales, use, license, capital stock, transfer, franchise, payroll, withholding, social security, value added and other taxes, and any interest, penalties or additions attributable thereto and (ii) any liability to pay any of the foregoing as a result of a contractual obligation to indemnify any Person for such amounts.

"**Tax Authority**" shall mean any governmental authority or any subdivision, agency, commission or authority thereof or any quasi-governmental or private body having jurisdiction over the assessment, determination, collection or imposition of any Tax.

"**Tax Return**" shall mean any return, report, certificate, form or similar statement or document (including any related or supporting information or schedule attached thereto and any information return, amended tax return, claim for refund or declaration of estimated tax) supplied or required to be supplied to, or filed or required to be filed with, a Tax Authority in connection with the determination, assessment or collection of any Tax or the administration of any laws, regulations or administrative requirements relating to any Tax.

"**Third Party**" shall mean any Person other than ParentCo, any ParentCo Affiliate, SpinCo and any SpinCo Affiliate.

"**Third-Party Claim**" shall have the meaning set forth in Section 5.05(a).

"**Transfer**" shall have the meaning set forth in Section 2.02(a).

"**Transfer Agent**" shall mean an authorized qualified agent for the transfer of the SpinCo Ordinary Shares upon listing, which shall be determined by SpinCo Board in its sole and absolute discretion.

"**Transferred Employees**" shall mean such current or former employees of the ParentCo Group who will terminate or have terminated their employment with the ParentCo and, thereafter, will be or have been employed by the SpinCo Group, as the list of such Transferred Employees is and may be agreed from time to time in writing between the ParentCo and the SpinCo.

------

ARTICLE 2

THE SEPARATION

Section 2.01. *General*. Subject to the terms and conditions of this Agreement, the Parties shall use, and shall cause any of their respective Subsidiaries to use, their respective reasonable best efforts to consummate the transactions contemplated hereby.

Section 2.02. *Transfer of Assets and Assumption of Liabilities*. Subject to Sections 2.03, 2.04 and 2.05:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Distribution Date, the Parties shall, and shall cause their respective Subsidiaries to, execute such instruments of assignment, transfer or conveyance and take such other corporate actions as are necessary to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) transfer and convey to SpinCo and/or its designated Subsidiaries all of the right, title and interest of ParentCo and/or its Subsidiaries in, to and under all SpinCo Assets not already owned by SpinCo;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) transfer and convey to ParentCo and/or its designated Subsidiaries all of the right, title and interest of SpinCo and/or its Subsidiaries in, to and under all ParentCo Assets not already owned by ParentCo (each of Section 2.02(a)(i) and Section 2.02(a)(ii), the "**Transfer**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) cause SpinCo and/or its designated Subsidiaries to assume all of the SpinCo Liabilities to the extent such Liabilities would otherwise remain Liabilities of ParentCo and/or its Subsidiaries, regardless of (A) when or where such Liabilities arose or arise, (B) where or against whom such Liabilities are asserted or determined, (C) which entity is named in any action associated with any Liability, and (D) whether the facts on which they are based occurred prior to, on or after the Effective Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) cause ParentCo and/or its designated Subsidiaries to assume all of the ParentCo Liabilities to the extent such Liabilities would otherwise remain Liabilities of SpinCo and/or its Subsidiaries, regardless of (A) when or where such Liabilities arose or arise, (B) where or against whom such Liabilities are asserted or determined, (C) which entity is named in any action associated with any Liability, and (D) whether the facts on which they are based occurred prior to, on or after the Effective Time (each of Section 2.02(a)(iii) and Section 2.02(a)(iv), the "**Assumption**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On or before the Distribution Date, ParentCo shall transfer, or cause to be transferred, the SpinCo Employees to SpinCo and/or its designated Subsidiaries, as the case may be.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the avoidance of doubt, SpinCo shall remit payment to the payees identified by ParentCo under the terms of each respective Assumed Contracts of any unpaid payments or Liabilities thereunder as of the Effective Time, including any related deferred revenue, deferred rent and debt accounts. Notwithstanding the foregoing, SpinCo shall not assume (on behalf of itself and / or its designated Subsidiaries) any Liability attributable to the failure of ParentCo or its officers, directors, employees, agents or Affiliates to materially perform ParentCo's obligations to SpinCo pursuant to this Agreement or the Ancillary Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If at any time, after the Effective Time, the Parties agree that ParentCo or its Subsidiaries possess any assets or liabilities related to the SpinCo Business, ParentCo shall as promptly as practicable transfer or cause to be transferred, at ParentCo's expense, and SpinCo shall accept such transfer and/or assume (on behalf of itself and /or its designated Subsidiaries), for no additional consideration, such SpinCo Asset and/or Liability, including any and all economic benefits or detriments generated from such SpinCo Asset and/or Liabilities after the Effective Time, to SpinCo. Each such transferred asset or liability shall be deemed a SpinCo Asset or a SpinCo Liability, respectively, and shall be subject to the terms and conditions of this Agreement applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If at any time, after the Effective Time, the Parties agree that SpinCo or its Subsidiaries possess any assets or liabilities solely related to the ParentCo Business, SpinCo shall as promptly as practicable transfer or cause to be transferred (on behalf of itself and /or its designated Subsidiaries), at ParentCo's expense, and ParentCo shall accept such transfer and/or assume, for no consideration, such ParentCo Assets and/or ParentCo Liabilities, including any and all economic benefits or detriments generated from such ParentCo Assets and/or ParentCo Liabilities after the Effective Time, to ParentCo. Each such transferred asset or liability shall be deemed a ParentCo Asset or a ParentCo Liability, respectively, and shall be subject to the terms and conditions of this Agreement applicable thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In furtherance of the Transfer and the assumption of the SpinCo Liabilities by SpinCo as set forth above, and simultaneously with the execution and delivery of this Agreement (i) ParentCo shall execute and deliver such bills of sale, stock powers, certificates of title, assignments of contracts and other instruments of transfer, conveyance and assignment as and to the extent necessary to evidence the Transfer, and (ii) SpinCo (on behalf of itself and /or its designated Subsidiaries) shall execute and deliver to ParentCo such bills of sale, stock powers, certificates of title, assumptions of contracts, indemnity agreements and other instruments of assumption as and to the extent necessary to evidence the valid and effective Assumption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All of the assets and liabilities (including whether accrued, contingent or otherwise) other than the SpinCo Assets and SpinCo Liabilities will be retained or assumed by ParentCo, including but not limited to the potential liability associated with the assets to be retained in ParentCo after the Separation and Distribution.

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Section 2.03. *Governmental Approvals; Consents*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To the extent that the Transfer or the Assumption requires any Governmental Approvals, the Parties shall use reasonable best efforts to obtain any such Governmental Approvals. If and to the extent that the Transfer or the Assumption would be a violation of applicable laws or require any Governmental Approval in connection with the Separation or the Distribution, then, unless ParentCo shall otherwise determine, the Transfer to or Assumption by SpinCo of such SpinCo Assets or SpinCo Liabilities, as the case may be, shall be automatically deemed deferred and any such purported Transfer or the Assumption shall be null and void until such time as all legal impediments are removed and/or each of such Governmental Approval has been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Parties shall use reasonable best efforts to obtain any Consents required in connection with the transactions contemplated by this Agreement. Notwithstanding the foregoing, no Party shall be obligated to pay any consideration therefor to any Third Party from whom any such Consent, substitution or amendment is requested (unless such Party is fully reimbursed by the requesting Party).

Section 2.04. *Deferred Transfers/Assumptions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Transfer of any SpinCo Asset or Assumption intended to be Transferred and assumed hereunder is not consummated prior to or at the Effective Time, whether as a result of the provisions of Section 2.03 or for any other reason, then ParentCo shall thereafter hold such SpinCo Asset for the use and benefit of SpinCo if permitted by Law. If the Transfer of any ParentCo Asset or Assumption intended to be Transferred and assumed hereunder is not consummated prior to or at the Effective Time, whether as a result of the provisions of Section 2.03 or for any other reason, then SpinCo shall thereafter hold such ParentCo Asset for the use and benefit of ParentCo if permitted by Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If and when the Consents and/or Governmental Approvals, or any other impediments to Transfer or Assumption, the absence of which caused the deferral of Transfer of any asset or Assumption pursuant to Section 2.03 or otherwise, are obtained or removed (as appropriate), the Transfer of the applicable SpinCo Asset or ParentCo Asset or Assumption shall be effected in accordance with the terms of this Agreement and/or the applicable Ancillary Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any SpinCo Asset retained by ParentCo due to the deferral of the Transfer of such SpinCo Asset, ParentCo shall take such actions with respect to such SpinCo Asset as may be reasonably requested by SpinCo (and SpinCo shall fully reimburse ParentCo for all costs and expenses associated therewith). With respect to any ParentCo Asset retained by SpinCo due to the deferral of the Transfer of such ParentCo Asset, SpinCo shall take such actions with respect to such ParentCo Asset as may be reasonably requested by ParentCo (and ParentCo shall fully reimburse SpinCo for all costs and expenses associated therewith).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Parties are unable to obtain, or to cause to be obtained, any such required Governmental Approvals, Consents, release, substitution or amendment pursuant to Section 2.03 or otherwise, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ParentCo shall (A) continue to be bound by such applicable Contract, license or other obligation, which shall not constitute a Liability of ParentCo (unless not permitted by Law or the terms thereof), (B) as agent or subcontractor for SpinCo, pay, perform and discharge fully all the obligations or other SpinCo Liabilities thereunder after the Effective Time, and (C) deliver to SpinCo any payments, benefits or other consideration received by ParentCo under such Contract, license or other obligation; *provided*, *however*, that ParentCo shall not be obligated to extend, renew or otherwise cause such Contract, license or other obligation to remain in effect beyond the term in effect as of the Effective Time. SpinCo shall have the right to direct ParentCo to exercise ParentCo's rights under such Contract, license or other obligation for the benefit of SpinCo. SpinCo shall fully indemnify ParentCo and its Affiliates, officers, directors, employees, agents and hold each of them harmless against any and all obligations or SpinCo Liabilities arising in connection therewith and also for any actions requested by SpinCo pursuant to Section 2.04(c), *provided*, *however*, that SpinCo shall have no obligation to indemnify ParentCo with respect to any matter to the extent that ParentCo has engaged in any violation of Law or fraud in connection therewith. ParentCo shall, without further consideration, promptly pay and remit, or cause to be promptly paid or remitted, to SpinCo, all money, rights and other consideration received by it or any of its Subsidiaries in respect of such performance on behalf of SpinCo (unless any such consideration is a ParentCo Asset pursuant to this Agreement). If and when any such Governmental Approval, Consent, release, substitution or amendment shall be obtained or such agreement, lease, license or other rights or obligations shall otherwise become assignable or capable of novation, ParentCo shall promptly assign, or cause to be assigned, all rights, obligations and other SpinCo Liabilities thereunder of ParentCo's to SpinCo or its designated Subsidiary without payment of any further consideration and SpinCo (or its designated Subsidiary, as applicable), without the payment of any further consideration, shall assume such rights and obligations and other SpinCo Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SpinCo shall (A) continue to be bound by such applicable Contract, license or other obligation, which shall not constitute a Liability of SpinCo (unless not permitted by Law or the terms thereof), (B) as agent or subcontractor for ParentCo, pay, perform and discharge fully all the obligations or other ParentCo Liabilities thereunder after the Effective Time, and (C) deliver to ParentCo any payments, benefits or other consideration received by SpinCo under such Contract, license or other obligation; *provided*, *however*, that SpinCo shall not be obligated to extend, renew or otherwise cause such Contract, license or other obligation to remain in effect beyond the term in effect as of the Effective Time. ParentCo shall have the right to direct SpinCo to exercise SpinCo's rights under such Contract, license or other obligation for the benefit of ParentCo. ParentCo shall fully indemnify SpinCo and its Affiliates, officers, directors, employees, agents and hold each of them harmless against any and all obligations or ParentCo Liabilities arising in connection therewith and also for any actions requested by ParentCo pursuant to Section 2.04(c), *provided*, *however*, that ParentCo shall have no obligation to indemnify SpinCo with respect to any matter to the extent that SpinCo has engaged in any violation of Law or fraud in connection therewith. SpinCo shall, without further consideration, promptly pay and remit, or cause to be promptly paid or remitted, to ParentCo, all money, rights and other consideration received by it or any of its Subsidiaries in respect of such performance on behalf of ParentCo (unless any such consideration is a SpinCo Asset pursuant to this Agreement). If and when any such Governmental Approval, Consent, release, substitution or amendment shall be obtained or such agreement, lease, license or other rights or obligations shall otherwise become assignable or capable of novation, SpinCo shall promptly assign, or cause to be assigned, all rights, obligations and other ParentCo Liabilities thereunder of SpinCo's to ParentCo or its designated Subsidiary without payment of any further consideration and ParentCo (or its designated Subsidiary, as applicable), without the payment of any further consideration, shall assume such rights and obligations and other ParentCo Liabilities.

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Section 2.05. *Termination of Agreements*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth in Section 2.05(b), the Parties hereby terminate any and all written or oral agreements, arrangements, commitments or understandings, between or among them, effective as of the Effective Time; and each Party shall, at the reasonable request of the other Party, take, or cause to be taken, such other actions as may be necessary to effect the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The provisions of Section 2.05(a) shall not apply to any of the following agreements, arrangements, commitments or understandings (or to any of the provisions thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) this Agreement and the Ancillary Agreements and any agreement entered into in connection herewith or in order to consummate the transactions contemplated hereby or thereby (and each other agreement or instrument contemplated by this Agreement or any Ancillary Agreement to be entered into by any of the Parties or any of the members of their respective Groups or to be continued from and after the Effective Time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any agreements, arrangements, commitments or understandings to which any Third Party or non-wholly owned Subsidiary of ParentCo or SpinCo is a 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any intercompany accounts payable or accounts receivable accrued as of the Effective Time that are reflected in the books and records of the Parties or otherwise documented in writing in accordance with past practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Shared Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any agreements, arrangements, commitments or understandings filed as an exhibit, whether in preliminary or final form, to the Distribution Disclosure Documents; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any agreements, arrangements, commitments or understandings as agreed by the Parties to be not subject to Section 2.05(a).

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Section 2.06. *Guarantees and Other Obligations.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Effective Time or as soon as practicable thereafter, ParentCo shall (with the reasonable cooperation of the applicable members of the ParentCo Group) use its commercially reasonable efforts to have any members of the SpinCo Group removed as guarantor of or obligor for any ParentCo Liability. On or prior to the Effective Time or as soon as practicable thereafter, SpinCo shall (with the reasonable cooperation of the applicable members of the SpinCo Group) use its commercially reasonable efforts to have any members of the ParentCo Group removed as guarantor of or obligor for any SpinCo Liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Parties are unable to obtain, or to cause to be obtained, any such required removal as set forth in Section 2.06(a),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to ParentCo Liabilities, (A) ParentCo shall, and shall cause the other members of the ParentCo Group to, indemnify, defend and hold harmless each of the SpinCo Indemnitees from and against any Liability arising from or relating to such guarantee, letter of credit or other obligation, as applicable, and shall, as agent or subcontractor for the applicable SpinCo Group guarantor or obligor, pay, perform and discharge fully all of the obligations or other Liabilities of such guarantor or obligor thereunder, and (B) ParentCo shall not, and shall cause the other members of the ParentCo Group not to, agree to renew or extend the term of, increase any obligations under, or transfer to a third Person, any loan, guarantee, letter of credit, lease, contract or other obligation for which a member of the SpinCo Group is or may be liable unless all obligations of the members of the SpinCo Group with respect thereto are thereupon terminated by documentation satisfactory in form and substance to SpinCo in its sole and absolute discretion; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) with respect to SpinCo Liabilities, (A) SpinCo shall, and shall cause the other members of the SpinCo Group to, indemnify, defend and hold harmless each of the ParentCo Indemnitees for any Liability arising from or relating to such guarantee, letter of credit or other obligation, as applicable, and shall, as agent or subcontractor for the applicable ParentCo Group guarantor or obligor, pay, perform and discharge fully all of the obligations or other Liabilities of such guarantor or obligor thereunder, and (B) SpinCo shall not, and shall cause the other members of the SpinCo Group not to, agree to renew or extend the term of, increase any obligations under, or transfer to a third Person, any loan, guarantee, letter of credit, lease, contract or other obligation for which a member of the ParentCo Group is or may be liable unless all obligations of the members of the ParentCo Group with respect thereto are thereupon terminated by documentation satisfactory in form and substance to ParentCo in its sole and absolute discretion.

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Section 2.07. *Shared Contracts*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to Shared Contractual Liabilities pursuant to, under or relating to a given Shared Contract, such Shared Contractual Liabilities shall be allocated, unless otherwise allocated pursuant to this Agreement or an Ancillary Agreement, between the Parties as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, if a Liability is incurred exclusively in respect of a benefit received by one Party or its Group, the Party or Group receiving such benefit shall be responsible for such Liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, if a Liability cannot be exclusively allocated to one Party or its Group under Section 2.07(a)(i) above, such Liability shall be allocated among both Parties and their respective Groups based on the relative proportions of total benefit received (over the remaining term of the Shared Contract, measured starting as of the date of allocation) under the relevant Shared Contract. Notwithstanding the foregoing, each Party and its Group shall be responsible for any or all Liabilities arising out of or resulting from such Party's or Group's breach of the relevant Shared Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise expressly contemplated in this Agreement or an Ancillary Agreement, if ParentCo or any member of the ParentCo Group, on the one hand, or SpinCo or any member of the SpinCo Group, on the other hand, receives any benefit or payment under any Shared Contract which was intended for the other Party or its Group, ParentCo, on the one hand, or SpinCo, on the other hand, as applicable, will use its respective commercially reasonable efforts, or will cause any member of its Group to use its commercially reasonable efforts, to deliver, Transfer or otherwise afford such benefit or payment to the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything to the contrary herein, if the Parties have determined that it is advisable that certain Shared Contracts, or portions thereof, will be separated or assigned to a member of the ParentCo Group or the SpinCo Group, as applicable, the Parties shall use their commercially reasonable efforts to separate the Shared Contracts into separate Contracts between the appropriate Third Party and either (i) SpinCo or a member of the SpinCo Group or (ii) ParentCo or a member of the ParentCo Group. ParentCo or a member of the ParentCo Group will use commercially reasonable efforts to assign the rights and obligations, but only to the extent relating to the SpinCo Business, under such Shared Contracts to SpinCo or a member of the SpinCo Group. The Parties agree to cooperate and provide reasonable assistance prior to the Effective Time and for a period of six (6) months following the Effective Time (with no obligation on the part of either Party to pay any costs or fees with respect to such assistance) in effecting the separation or assignment of such Shared Contracts as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each of ParentCo and SpinCo shall, and shall cause the members of their respective Group to, (i) treat for all Tax purposes the portion of each Shared Contract inuring to their respective Business as an Asset owned by, and/or a Liability of, as applicable, such Party, or the members of such Party's Group, as applicable, not later than the Effective Time, and (ii) neither report nor take any Tax position (on a Tax Return or otherwise) inconsistent with such treatment (unless required by applicable Law).

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Section 2.08. *Disclaimer of Representations and Warranties*. THE PARTIES UNDERSTAND AND AGREE THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY ANCILLARY AGREEMENT, NO PARTY TO THIS AGREEMENT, ANY ANCILLARY AGREEMENT OR ANY OTHER AGREEMENT OR DOCUMENT CONTEMPLATED BY THIS AGREEMENT HEREBY OR THEREBY, IS REPRESENTING OR WARRANTING IN ANY WAY AS TO THE PARENTCO ASSETS, PARENTCO BUSINESS, PARENTCO LIABILITIES, SPINCO ASSETS, SPINCO BUSINESS OR SPINCO LIABILITIES CONTRIBUTED, TRANSFERRED, DISTRIBUTED OR ASSUMED AS CONTEMPLATED HEREBY OR THEREBY, AS TO ANY CONSENTS OR GOVERNMENTAL APPROVALS REQUIRED IN CONNECTION HEREWITH OR THEREWITH, AS TO THE VALUE OR FREEDOM FROM ANY SECURITY INTERESTS OF, OR ANY OTHER MATTER CONCERNING, ANY PARENTCO ASSETS, PARENTCO BUSINESS, PARENTCO LIABILITIES, SPINCO ASSETS, SPINCO BUSINESS OR SPINCO LIABILITIES OR AS TO THE ABSENCE OF ANY DEFENSES OR RIGHT OF SETOFF OR FREEDOM FROM COUNTERCLAIM WITH RESPECT TO ANY CLAIM, INCLUDING ANY ACCOUNTS RECEIVABLE, OF ANY PARTY, OR AS TO THE LEGAL SUFFICIENCY OF ANY CONTRIBUTION, DISTRIBUTION, ASSIGNMENT, DOCUMENT, CERTIFICATE OR INSTRUMENT DELIVERED HEREUNDER TO CONVEY TITLE TO ANY PARENTCO ASSET, SPINCO ASSET OR THING OF VALUE UPON THE EXECUTION, DELIVERY AND FILING HEREOF OR THEREOF. EXCEPT AS MAY EXPRESSLY BE SET FORTH HEREIN OR IN ANY ANCILLARY AGREEMENT, ALL SUCH PARENTCO ASSETS OR SPINCO ASSETS ARE BEING TRANSFERRED ON AN "AS IS," "WHERE IS" BASIS AND SO LONG AS THE TRANSFEROR IS IN COMPLIANCE WITH THE TERMS OF THIS AGREEMENT RELATING TO THE TRANSFER, THE TRANSFEREE SHALL BEAR THE ECONOMIC AND LEGAL RISKS THAT (I) ANY CONVEYANCE SHALL PROVE TO BE INSUFFICIENT TO VEST IN THE TRANSFEREE GOOD AND MARKETABLE TITLE, FREE AND CLEAR OF ANY SECURITY INTEREST, AND (II) ANY NECESSARY CONSENTS OR GOVERNMENTAL APPROVALS ARE NOT OBTAINED OR THAT THE REQUIREMENTS OF LAWS, CONTRACTS, OR JUDGMENTS ARE NOT COMPLIED WITH.

ARTICLE 3

THE DISTRIBUTION

Section 3.01. *Securities Law Matters*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) SpinCo shall cooperate with ParentCo to accomplish the Distribution, including in connection with the preparation of all documents and the making of all filings required in connection with the Distribution. ParentCo shall direct and control the efforts of the Parties in connection with the Distribution, after consulting in good faith with SpinCo and after reasonably considering the views of SpinCo (which SpinCo shall promptly provide in good faith), and SpinCo shall take, or cause to be taken, all actions and to do, or cause to be done, all other things necessary to facilitate the Distribution as directed by ParentCo in good faith and in accordance with the applicable terms and subject to the conditions of this Agreement and the other Ancillary Agreements. Without limiting the generality of the foregoing, SpinCo will, and will cause the members of its Group and its and their respective employees, advisors, agents, accountants, counsel and other representatives to, as reasonably directed by ParentCo, reasonably cooperate in and take the following actions: (i) participating in meetings, drafting sessions, due diligence sessions, management presentation sessions, "testing the waters" meetings and similar meetings or sessions in connection with the Distribution (including any marketing efforts); and (ii) furnishing all historical and forward-looking financial and other financial and other information that is available to SpinCo and is required in connection with the Distribution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In furtherance and not in limitation of the obligations set forth in Section 3.01(a), SpinCo shall file the Distribution Disclosure Documents and any amendments or supplements thereto as may be necessary or advisable in order to cause the Distribution Disclosure Documents to become and remain effective as required by the SEC or federal, state or other applicable securities Laws (but shall not make any such filing prior to the Distribution without the prior written consent of ParentCo). ParentCo and SpinCo (as applicable) shall prepare and mail or otherwise make available, prior to the Distribution Date, to the holders of ParentCo Ordinary Shares, such information concerning the SpinCo Group (as applicable), the SpinCo Business, the SpinCo Group's operations and management, the Distribution, and such other matters as ParentCo shall reasonably determine and as may be required by Law. The Parties will prepare, and SpinCo will, to the extent required by applicable Law (and previously consented to in writing by ParentCo), file with the SEC, any such documentation and any requisite no-action letters which ParentCo determines are necessary or desirable to effectuate the Distribution, and the Parties shall use their respective reasonable best efforts to obtain all necessary approvals from the SEC with respect thereto as soon as practicable. The Parties shall take all such actions as may be necessary or appropriate under the securities or "blue sky" Laws of states or other political subdivisions of the United States and shall use commercially reasonable efforts to comply with all applicable foreign securities Laws in connection with the transactions contemplated by this Agreement and the other Ancillary Agreements.

Section 3.02. *Ancillary Agreements*. On or prior to the Distribution Date, each of ParentCo and SpinCo shall enter into, and/or (where applicable) shall cause the applicable member or members of its respective Group to enter into, the Ancillary Agreements and any other Contracts in respect of the Distribution reasonably necessary or appropriate in connection with the transactions contemplated hereby and thereby.

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Section 3.03. Stock Exchange Listing Application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Distribution Date and subject to Section 3.01, the Parties shall prepare and file an application for the listing on the Stock Exchange of SpinCo Ordinary Shares to be issued to the Spin Off Recipients in the Distribution (the "**Stock Exchange Listing Application**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prior to the Distribution Date and subject to Section 3.01, the SpinCo Group shall use reasonable best efforts to cause the Stock Exchange Listing Application to be approved by the Stock Exchange, subject to official notice of issuance.

Section 3.04. Governance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Memorandum and Articles*. On or prior to the Distribution Date, the Parties shall take all necessary action so that, as of the Distribution Date, SpinCo will have adopted the Memorandum and Articles, substantially in the form filed by SpinCo with the SEC as an exhibit to the relevant Distribution Disclosure Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Officers and Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) On or prior to the Distribution Date, the Parties shall take all necessary action (including providing written resignations, effective as of the Distribution Date) to cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the individuals identified as officers of SpinCo in the relevant Distribution Disclosure Document to be officers of SpinCo on or prior to the Distribution 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;(B) the individuals identified as directors of SpinCo in the relevant Distribution Disclosure Document to be directors of SpinCo on or prior to the Distribution Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Dr. Li Dong identified as the chairman of the board of directors of SpinCo (the "**Chairman**") in the relevant Distribution Disclosure Document to be the Chairman on or prior to the Distribution Date, and thereafter until such time as reflected in the Memorandum and Articles.

Section 3.05. *Distribution Agent*. ParentCo shall enter into a distribution agent agreement with the Distribution Agent or otherwise provide instructions to the Distribution Agent regarding the Distribution in furtherance of Section 3.09, Section 3.10 and Section 3.11.

Section 3.06. *Transfer Agent*. SpinCo shall enter into a transfer agency agreement with the Transfer Agent.

Section 3.07. *ParentCo Shareholder Approval*. ParentCo shall take any and all actions necessary to duly call, give notice of, convene and hold a meeting of the ParentCo Shareholders to seek the ParentCo Shareholder Approval.

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Section 3.08. *Form of Distribution*. ParentCo will effect the Distribution as a pro rata distribution to the Spin Off Recipients.

Section 3.09. *Manner of Distribution*. Each Spin Off Recipient (other than ParentCo or a member of the ParentCo Group) will be entitled to receive one (1) SpinCo Ordinary Share for every fifty (50) ParentCo Ordinary Shares held by such Spin Off Recipient as of the Record Date. Prior to the Distribution Date, the ParentCo Board, in accordance with applicable Law, shall establish (or designate a committee of the ParentCo Board to establish) the Record Date for the Distribution and any appropriate procedures in connection with the Distribution.

Section 3.10. Distribution; Delivery of Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On or prior to the Distribution Date, ParentCo shall, or shall cause the applicable member of its Group to, execute and deliver an instrument of transfer, or otherwise make available to the Distribution Agent, for the benefit of the Spin Off Recipients, such number of issued and outstanding SpinCo Ordinary Shares as is necessary to effect the Distribution and provide to the Distribution Agent book-entry authorizations and any information required in order to complete the Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Distribution Date, ParentCo will direct the Distribution Agent to distribute, effective as of the Distribution Date, the SpinCo Ordinary Shares being distributed in the Distribution for the account of the Spin Off Recipients that are entitled thereto pursuant to Section 3.09, a book-entry authorization representing the SpinCo Ordinary Shares being distributed in the Distribution for the account of such Spin Off Recipients. All such SpinCo Ordinary Shares to be so distributed shall be distributed by way of direct registration in book-entry form. No certificates therefor shall be distributed.

Section 3.11. *No Fractional Shares*. Notwithstanding anything herein to the contrary, no fractional SpinCo Ordinary Shares shall be issued in connection with the Distribution, and any such fractional share interests to which a Spin Off Recipient would otherwise be entitled shall not entitle such Spin Off Recipient to vote or to any other rights as a shareholder of SpinCo. In lieu of any such fractional shares, each Spin Off Recipient who, but for the provisions of this section, Section 3.08 and Section 3.09, would be entitled to receive a fractional share interest of SpinCo Ordinary Shares pursuant to the Distribution, shall be paid cash, without any interest thereon, as hereinafter provided. ParentCo will direct the Distribution Agent to determine the number of whole and fractional SpinCo Ordinary Shares allocable to each Spin Off Recipient, to aggregate all such fractional shares into whole shares, to sell the whole shares obtained thereby in the open market at the then-prevailing prices on behalf of each Spin Off Recipient who otherwise would be entitled to receive fractional share interests and to distribute to each such Spin Off Recipient his, her or its ratable share of the total proceeds of such sale, after making appropriate deductions of the amounts required for any applicable withholding and transfer Taxes. The costs and expenses of such sale and distribution, including brokers fees and commissions will be paid by a member of the SpinCo Group. The sales of fractional shares shall occur as soon after the Distribution Date as practicable and as determined by the Distribution Agent. None of ParentCo, SpinCo or the Distribution Agent shall guarantee any minimum sale price for the fractional SpinCo Ordinary Shares. Neither ParentCo nor SpinCo shall pay any interest on the proceeds from the sale of fractional shares. The Distribution Agent shall have the sole discretion to select the broker-dealers through which to sell the aggregated fractional shares and to determine when, how and at what price to sell such shares. Neither the Distribution Agent nor the broker-dealers through which the aggregated fractional shares are sold shall be Affiliates of ParentCo or SpinCo.

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Section 3.12. *Conditions to Distribution*. The obligation of ParentCo to effect the Distribution pursuant to this Agreement shall be subject to the prior or simultaneous satisfaction, or, to the extent permitted by applicable Law, waiver by ParentCo, in its sole and absolute discretion, after consulting in good faith with SpinCo and after reasonably considering the views of SpinCo (which SpinCo shall promptly provide in good faith), of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Separation shall have been completed substantially in accordance with this Agreement to the satisfaction of ParentCo (other than any of such steps that are expressly contemplated to occur at or after the Distribution);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Distribution Disclosure Documents filed in connection with the Distribution shall be effective under the Securities Act, no stop order relating to the Distribution Disclosure Documents will be in effect, no proceedings seeking such stop order shall be pending before or threatened by the SEC, and the requisite information shall have been distributed to the ParentCo Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Stock Exchange shall have approved the Stock Exchange Listing Application, subject to official notice of issuance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this Agreement and each of the Ancillary Agreements shall have been duly executed and delivered by the parties thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the actions and filings with regard to state securities and "blue sky" Laws of states or other political subdivisions of the United States (and any comparable Laws under any foreign jurisdictions) described in Section 3.01(b) to the extent applicable shall have been taken and, where applicable, have become effective or been accepted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no order, injunction or decree issued by any Governmental Entity of competent jurisdiction or other legal restraint or prohibition preventing the consummation of all or any portion of the Distribution shall be pending, issued or in effect, and no other event outside the control of the Parties shall have occurred or failed to occur that prevents the consummation of all or any portion of the Distribution or any related transactions contemplated hereby, including the Separation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the ParentCo Board shall have approved the Distribution and shall have not determined, in the sole and absolute judgment of the ParentCo Board, that any events or developments shall have occurred that make it inadvisable to effect the Separation, Distribution and other transactions contemplated by this Agreement or the Ancillary Agreements or would result in the Separation, Distribution and other transactions contemplated by this Agreement or the Ancillary Agreements not being in the best interest of ParentCo or the ParentCo Shareholders;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the ParentCo Shareholder Approval shall have been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Confirmation of the solvency and financial viability of each of SpinCo and ParentCo after the Separation and Distribution by the ParentCo Board and the boards of directors of SpinCo shall have been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) ParentCo will have entered into a Distribution Agent Agreement with, or provided instructions regarding the Distribution to, the Distribution Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Immediately prior to the Distribution Date, the Memorandum and Articles shall be in effect.

Section 3.13. Additional Matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No member of the ParentCo Group, SpinCo Group or any of their respective Affiliates, will be liable to any Person in respect of any SpinCo Ordinary Shares (or dividends or distributions with respect thereto) that are properly delivered to a public official pursuant to any applicable abandoned property, escheat or similar Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ParentCo may at any time and from time to time, in its sole and absolute discretion, until the completion of the Distribution abandon, modify or change any or all of the terms of the Separation, the Distribution and other transactions contemplated by this Agreement and the Ancillary Agreements, including, without limitation, by accelerating or delaying the timing of the consummation of all or part of the Separation, Distribution or the other transactions contemplated by this Agreement and the Ancillary Agreements, after consulting in good faith with SpinCo and after reasonably considering the views of SpinCo (which SpinCo shall promptly provide in good faith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) SpinCo shall cooperate with ParentCo in all respects to accomplish the Separation, the Distribution and the other transactions contemplated by this Agreement and the Ancillary Agreements. SpinCo shall, at ParentCo's direction, promptly take any and all actions necessary or desirable to effect the Separation, the Distribution and the other transactions contemplated by this Agreement and the Ancillary Agreements, after ParentCo consults in good faith with SpinCo and after ParentCo reasonably considers the views of SpinCo (which SpinCo shall promptly provide in good faith). ParentCo shall select, and SpinCo shall cooperate in good faith to select, any investment bank(s), manager(s), underwriter(s) or dealer-manager(s) in connection with the Distribution, as applicable, as well as any financial printer, solicitation and/or exchange agent and financial, legal, accounting, tax and other advisors and service providers in connection with the Distribution, as applicable, after ParentCo consults in good faith with SpinCo and after ParentCo reasonably considers the views of SpinCo (which SpinCo shall promptly provide in good faith). SpinCo and ParentCo, as the case may be, will provide to the exchange agent all share certificates (to the extent certificated) or book-entry authorizations (to the extent not certificated) and any information required in order to complete the Distribution.

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Section 3.14. *Tax Withholding*. The Parties shall be entitled to deduct and withhold from amounts payable pursuant to this Agreement any Taxes required to be deducted and withheld under any provision of federal, state, local or foreign Tax Law. Upon becoming aware of any such withholding obligation, the Party so deducting and withholding shall provide reasonable advance notice of such withholding and shall reasonably cooperate with the Party in respect of which such deduction and withholding is made to eliminate or reduce any such required deduction or withholding.

ARTICLE 4

INSURANCE

Section 4.01. *Policies and Rights Included Within the SpinCo Assets*. Without limiting the generality of the definition of the SpinCo Assets, the SpinCo Assets shall include (a) the SpinCo Policies and (b) any and all rights of an insured Party or its Affiliates under each of the ParentCo Pre-Distribution Policies, to the extent allowable under such Policies, including rights of indemnity and the right to be defended by or at the expense of the insurer, with respect to all injuries, losses, Liabilities, damages and expenses incurred or claimed to have been incurred prior to the Effective Time by any Party or any of its Affiliates in connection with the SpinCo Business (*provided* that ParentCo shall have equal rights with respect to indemnity and the right to be defended to the extent practical and appropriate) and which injuries, losses, liabilities, damages and expenses may arise out of insured or insurable occurrences or events under one or more of the ParentCo Pre-Distribution Policies; *provided*, *however*, that nothing in this Section 4.01 shall be deemed to constitute (or to reflect) the assignment of the ParentCo Pre-Distribution Policies, or any of them, to SpinCo.

Section 4.02. *Post-Effective Time Claims*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, subsequent to the Effective Time, any Person may assert a claim against SpinCo or its Affiliates with respect to any injury, loss, Liability, damage or expense incurred or claimed to have been incurred prior to the Effective Time, including claims related to the SpinCo Business, or in connection with the Distribution, and such injury, loss, Liability, damage or expense may have or has arisen out of insured or insurable occurrences, claims or events under one or more of the ParentCo Pre-Distribution Policies, ParentCo shall at the time such claim is asserted (except to the extent inconsistent with Section 4.01 and to the extent allowable under the ParentCo Pre-Distribution Policies) be deemed to assign, without need of further documentation, to SpinCo or its Affiliates, any and all rights of an insured party under the applicable ParentCo Pre-Distribution Policy with respect to such asserted claim, including rights of indemnity and the right to be defended by or at the expense of the insurer; *provided*, *however*, that nothing in this Section 4.02 shall be deemed to constitute (or to reflect) the assignment of the ParentCo Pre-Distribution Policies, or any of them, to SpinCo.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any ParentCo Pre-Distribution Policy does not allow such assignment of a claim to SpinCo or its Affiliates, at SpinCo's sole option, cost and expense, claims for coverage of insured SpinCo Liabilities shall be tendered by ParentCo as necessary to invoke the benefit of the ParentCo Pre-Distribution Policies. If such insurers do not promptly acknowledge insurance coverage in connection with such insured SpinCo Liabilities, then, with respect to such insured SpinCo Liabilities, SpinCo, on an as-incurred basis (i) shall advance all amounts expended by ParentCo, incurred at the request of SpinCo, for or with respect to such insured SpinCo Liabilities, including all costs and expenses in connection with the defense and settlement and in satisfaction of any judgment incurred, and amounts sufficient to cover any Liabilities required to be paid by ParentCo or its Subsidiaries, and (ii) shall pay all costs incurred in connection with pursuing and recovering Insurance Proceeds with respect to the insured SpinCo Liabilities, but only to the extent so requested by SpinCo, which shall be entitled to direct such recovery efforts. Any payments made to ParentCo or its Subsidiaries by SpinCo or the SpinCo Subsidiaries on account of such insured SpinCo Liabilities shall be deemed to be advances pursuant to this Section 4.02. SpinCo and the SpinCo Subsidiaries shall have the right to recover any advances made pursuant to Section 4.03 from ParentCo and its Subsidiaries, and ParentCo and its Subsidiaries shall have the obligation promptly to reimburse SpinCo and the SpinCo Subsidiaries for such advances, solely from the Insurance Proceeds of the ParentCo Pre-Distribution Policies that cover such insured SpinCo Liabilities and that are received by ParentCo or its Subsidiaries. ParentCo and its Subsidiaries (i) shall, at all times until paid to SpinCo, hold Insurance Proceeds received for or with respect to insured SpinCo Liabilities in trust for the benefit of SpinCo; and (ii) shall promptly remit such Insurance Proceeds to SpinCo.

Section 4.03. *ParentCo Policies.* ParentCo shall, to the extent that the ParentCo Policies cover the SpinCo Liabilities, after discussion with SpinCo, either (a) maintain the ParentCo Policies, (b) buy replacement insurance, or (c) purchase an extended reporting period endorsement for the ParentCo Policies. In each of (a), (b) and (c), such coverage shall be at the expense of SpinCo and be of a type and with a limit and terms and conditions similar to those in force under the ParentCo Policies as of the Effective Time.

ARTICLE 5

RELEASES AND INDEMNIFICATION

Section 5.01. *Release of Pre-Distribution Claims*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in this Agreement or any Ancillary Agreement, SpinCo, together with its Subsidiaries, executors, administrators, successors and assigns, does hereby, effective as of the Effective Time, remise, release and forever discharge ParentCo, its Affiliates and all Persons who at any time prior to the Effective Time were shareholders, directors, officers, agents or employees of ParentCo or any of its Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, from all Liabilities existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Effective Time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in this Agreement or any Ancillary Agreement, ParentCo, together with its Subsidiaries, executors, administrators, successors and assigns, does hereby, effective as of the Effective Time, remise, release and forever discharge SpinCo, its Affiliates and all Persons who at any time prior to the Effective Time were shareholders, directors, officers, agents or employees of SpinCo or any of its Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, from all Liabilities existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained in Section 5.01(a) and Section 5.01(b) shall impair or otherwise affect any right of any Party to enforce this Agreement or any Ancillary Agreement. In addition, nothing contained in Section 5.01(a) and Section 5.01(b) shall release any Party from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Liability assumed by, or transferred, or assigned or allocated to, a Party or its respective Affiliates pursuant to or contemplated by this Agreement or any Ancillary Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Liability provided in or resulting from any other Contract or understanding that is entered into after the Effective Time between one Party (and/or a member of such Party's Affiliates), on the one hand, and the other Party (and/or a member of such Party's Affiliates), on the other hand;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Liability that the Parties may have with respect to indemnification or contribution pursuant to this Agreement or otherwise for claims brought against the Parties by a Third Party, which Liability shall be governed by the provisions of this Article 5 and, if applicable, the appropriate provisions of the Ancillary Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any Liability provided in or resulting from any Contract among any members of the ParentCo Group or the SpinCo Group that is specified in Section 2.05(b) as not to terminate as of the Effective Time, or any other Liability specified in such Section 2.05(b) as not to terminate as of the Effective Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Liability that such Party (or any member of its Group) may have to directors, officers, agents or employees under indemnification or similar agreements or arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Liability for the sale, lease, construction or receipt of goods, property or services purchased, obtained or used in the ordinary course of business by a member of one Group from a member of the other Group prior to the Effective Time; and

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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;(vii) any Liability the release of which would result in the release of any Person other than a Person released pursuant to this Section 5.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Party shall not, and shall not permit any of its Subsidiaries to, make any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or indemnification, against the other Party or any member of the other Party's Affiliates, or any other Person released pursuant to Section 5.01(a) and Section 5.01(b), with respect to any and all Liabilities released pursuant to Section 5.01(a) and Section 5.01(b). If a Party breaches this Section 5.01(d), such breaching Party shall be liable for all related expenses, including court costs, attorneys' fees, and all other legal expenses of the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It is the intent of each Party, by virtue of the provisions of this Section 5.01, to provide for a full and complete release and discharge of all Liabilities existing or arising from all acts and events occurring or failing to occur or alleged to have occurred or to have failed to occur and all conditions existing or alleged to have existed on or before the Effective Time, whether known or unknown, between one Party (and/or any Affiliate of such Party) and the other Party (and/or a member of such other Party) (including any contractual agreements or arrangements existing or alleged to exist between or among any such members on or before the Effective Time), except as otherwise set forth in this Section 5.01.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Party hereby acknowledges that it has considered the possibility that it may not now fully know the nature or value of the claims which are generally released pursuant to this Section 5.01 and that such general release extends to all claims of every nature and kind, known or unknown, suspected or unsuspected, past or present, however arising, and that any and all rights granted to such Party pursuant to any applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If any Person associated with a Party (including any director, officer or employee of a Party) initiates an Action with respect to claims released by this Section 5.01, the Party with which such Person is associated shall indemnify the other Party against such Action in accordance with the provisions set forth in this Article 5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) At any time, at the request of a Party, each Party shall, and to the extent practicable, cause each other Person on whose behalf it released Liabilities pursuant to this Section 5.01, to execute and deliver releases in customary form reflecting the provisions hereof.

Section 5.02. *Indemnification by SpinCo*. Except as otherwise provided in this Agreement or any Ancillary Agreement, following the Effective Time, SpinCo shall indemnify, defend and hold harmless ParentCo and its Affiliates and all Persons who at any time prior to the Effective Time were directors, officers, agents or employees of ParentCo or any of its Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns (collectively, the "**ParentCo Indemnitees**"), from and against any and all Liabilities and related losses of the ParentCo Indemnitees relating to, arising out of or resulting from any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The failure of SpinCo, its Subsidiaries or any of their respective Affiliates or any other Person to pay, perform or otherwise promptly discharge, whether prior to or after the Effective Time, any SpinCo Liabilities in accordance with their respective terms;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The SpinCo Liabilities (including any subsequently identified SpinCo Liabilities under Section 2.02(d));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Litigation matters that relate to the SpinCo Business prior to or after the Separation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except to the extent relating to a SpinCo Liability, any guarantee, indemnification or contribution obligation for the benefit of SpinCo or any of SpinCo Subsidiaries by ParentCo or any of ParentCo Subsidiaries that survives the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any untrue statement, alleged untrue statement, omission or alleged omission of a material fact in the relevant Distribution Disclosure Documents, with respect to all information contained in the relevant Distribution Disclosure Documents (except for any disclosure made explicitly in the ParentCo's name);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any breach by SpinCo of this Agreement or any of the Ancillary Agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The failure of any member of the SpinCo Group to timely file Tax Returns and timely pay Taxes required to be filed or paid by it pursuant to Section 6.04 or to timely reimburse any member of the ParentCo Group to the extent required pursuant to Section 6.04(d).

Section 5.03. *Indemnification by ParentCo*. Except as otherwise provided in this Agreement or any Ancillary Agreement, following the Effective Time, ParentCo shall indemnify, defend and hold harmless SpinCo, SpinCo Subsidiaries and any of their respective Affiliates and all Persons who are directors, officers, agents or employees of SpinCo, its Subsidiaries or any of their respective Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns (collectively, the "**SpinCo Indemnitees**"), from and against any and all Liabilities and related losses of the SpinCo Indemnitees relating to, arising out of or resulting from any of the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The failure of ParentCo, its Affiliates or any other Person to pay, perform or otherwise promptly discharge, whether prior to or after the Effective Time, any ParentCo Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The ParentCo Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Litigation matters that relate to the ParentCo Business;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Except to the extent relating to a ParentCo Liability, any guarantee, indemnification or contribution obligation for the benefit of ParentCo or any of ParentCo Subsidiaries by SpinCo or any of SpinCo Subsidiaries that survives the Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any untrue statement, alleged untrue statement or omission or alleged omission of a material fact in the relevant Distribution Disclosure Documents with respect to statements made explicitly in ParentCo's name; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any breach by ParentCo of this Agreement or any of the Ancillary Agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The failure of any member of the ParentCo Group to timely file Tax Returns and timely pay Taxes required to be filed or paid by it pursuant to Section 6.04 or to timely reimburse any member of the SpinCo Group to the extent required pursuant to Section 6.04(d).

Section 5.04. *Reduction for Insurance Proceeds and Other Recoveries*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The amount that any Party is required to provide indemnification (the "**Indemnifying Party**") to or on behalf of the Party entitled to such indemnification (the "**Indemnitee**") pursuant to this Article 5, shall be reduced (retroactively or prospectively) by Insurance Proceeds or other amounts actually recovered from Third Parties on behalf of such Indemnitee in respect of the Liability or related loss. If an Indemnitee receives a payment as required by this Agreement from an Indemnifying Party in respect of any Liability or related loss (an "**Indemnity Payment**") and subsequently receives Insurance Proceeds in respect of such Liability or related loss, then such Indemnitee shall hold such Insurance Proceeds in trust for the benefit of the Indemnifying Party (or Indemnifying Parties) and shall pay to the Indemnifying Party, as promptly as practicable after receipt, a sum equal to the amount of such Insurance Proceeds received, up to the aggregate amount of any payments received from the Indemnifying Party pursuant to this Agreement in respect of such indemnifiable loss of such Insurance Proceeds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An insurer who would otherwise be obligated to pay any claim shall not be relieved of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, have any subrogation rights with respect thereto, it being expressly understood and agreed that no insurer or any other Third Party shall be entitled to a "windfall" (i.e., a benefit they would not be entitled to receive in the absence of the indemnification provisions) by virtue of the indemnification provisions hereof. Notwithstanding the foregoing, each Party shall be required to use reasonable best efforts to collect or recover any available Insurance Proceeds.

Section 5.05. *Procedures For Indemnification of Third-Party Claims*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Indemnitee shall receive notice or otherwise learn of the assertion by a Third Party (including any Governmental entity) of any claim or of the commencement by any such Person of any Action (collectively, a "**Third-Party Claim**") with respect to which an Indemnifying Party may be obligated to provide indemnification to such Indemnitee, such Indemnitee shall give such Indemnifying Party and each Party to this Agreement, written notice thereof as soon as reasonably practicable, but no later than thirty (30) days after becoming aware of such Third-Party Claim. Any such notice shall describe the Third-Party Claim in reasonable detail. If any Party shall receive notice or otherwise learn of the assertion of a Third-Party Claim which may reasonably be determined to be a Liability of the Parties, such Party shall give the other Party to this Agreement written notice thereof within thirty (30) days after becoming aware of such Third-Party Claim. Any such notice shall describe the Third-Party Claim in reasonable detail. Notwithstanding the foregoing, the failure of any Indemnitee or other Party to give notice as provided in this Section 5.05(a) shall not relieve the related Indemnifying Party of its obligations under this Article 5, except to the extent that such Indemnifying Party is actually prejudiced by such failure to give notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) An Indemnifying Party shall be entitled to participate in the defense of any Third-Party Claim, at such Indemnifying Party's own expense and by such Indemnifying Party's own counsel; *provided* that if the defendants in any such claim include both the Indemnifying Party and one or more Indemnitees and in such Indemnitees' reasonable judgment a conflict of interest between such Indemnitees and such Indemnifying Party exists in respect of such claim, such Indemnitees shall have the right to employ separate counsel and in that event the reasonable fees and expenses of such separate counsel (but not more than one separate counsel reasonably satisfactory to the Indemnifying Party) shall be paid by such Indemnifying Party. Within thirty (30) days after the receipt of notice from an Indemnitee in accordance with Section 5.05(a) (or sooner, if the nature of such Third-Party Claim so requires), the Indemnifying Party shall notify the Indemnitee of its election whether the Indemnifying Party will assume responsibility for defending such Third-Party Claim. After notice from an Indemnifying Party to an Indemnitee of its election to assume the defense of a Third-Party Claim, such Indemnitee shall have the right to employ separate counsel and to participate in (but not control) the defense, compromise, or settlement thereof, but the fees and expenses of such counsel shall be the expense of such Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any Third-Party Claim, the Indemnifying Party and Indemnitees agree, and shall cause their respective counsel (if applicable), to cooperate fully (in a manner that will preserve all attorney-client privilege or other privileges) to mitigate any such claim and minimize the defense costs associated therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If an Indemnifying Party fails to assume the defense of a Third-Party Claim within thirty (30) days after receipt of written notice of such claim, the Indemnitee will, upon delivering notice to such effect to the Indemnifying Party, have the right to undertake the defense, compromise or settlement of such Third-Party Claim on behalf of and for the account of the Indemnifying Party subject to the limitations as set forth in this Section 5.05; *provided*, *however*, that such Third-Party Claim shall not be compromised or settled without the written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, delayed or conditioned. If the Indemnitee assumes the defense of any Third-Party Claim, it shall keep the Indemnifying Party reasonably informed of the progress of any such defense, compromise or settlement. The Indemnifying Party shall reimburse all such costs and expenses of the Indemnitee in the event it is ultimately determined that the Indemnifying Party is obligated to indemnify the Indemnitee with respect to such Third-Party Claim. In no event shall an Indemnifying Party be liable for any settlement effected without its consent, which consent will not be unreasonably withheld, delayed or conditioned.

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Section 5.06. *Additional Matters*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any claim on account of a Liability which does not result from a Third-Party Claim shall be asserted by written notice given by the Indemnitee to the related Indemnifying Party. Such Indemnifying Party shall have a period of thirty (30) days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such sixty (60) day period, such Indemnifying Party shall be deemed to have accepted responsibility to make payment. If such Indemnifying Party rejects such claim in whole or in part, such Indemnitee shall be free to pursue such remedies as may be available to such party as contemplated by this Agreement and the Ancillary Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of payment by or on behalf of any Indemnifying Party to any Indemnitee in connection with any Third-Party Claim, such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third-Party Claim against any claimant or plaintiff asserting such Third-Party Claim or against any other person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense (including allocated costs of in-house counsel and other in-house personnel) of such Indemnifying Party, in prosecuting any subrogated right, defense or claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of an Action in which the Indemnifying Party is not a named defendant, if the Indemnifying Party shall so request, the Parties shall endeavor to substitute the Indemnifying Party for the named defendant, and add the Indemnifying Party as a named defendant if at all practicable. If such substitution or addition cannot be achieved for any reason or is not requested, the named defendant shall allow the Indemnifying Party to manage the Action as set forth in this section and subject to Section 5.05 with respect to Liabilities, the Indemnifying Party shall fully indemnify the named defendant against all costs of defending the Action (including court costs, sanctions imposed by a court, attorneys' fees, experts' fees and all other external expenses, and the allocated costs of in-house counsel and other in-house personnel), the costs of any judgment or settlement, and the cost of any interest or penalties relating to any judgment or settlement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of doubt, SpinCo will assume the liability for, and control of, all pending and threatened legal matters related to the SpinCo Business or the SpinCo Liabilities and SpinCo will indemnify and hold harmless ParentCo for any Liability arising out of or resulting from such assumed legal matters. Each Party will agree to cooperate in defending any claims against the other Party for events that took place prior to, on or after the Effective Time. ParentCo will retain liability for, and control of, pending and threatened legal matters related to the ParentCo Business.

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Section 5.07. *Survival of Indemnities.* The rights and obligations of each Party and their respective Indemnitees under this Article 5 shall survive the sale or other transfer by any Party or its Affiliates of any assets or businesses or the assignment by it of any and all Liabilities.

ARTICLE 6

CERTAIN COVENANTS AND OTHER AGREEMENTS OF THE PARTIES

Section 6.01. *Brand Licensing.* ParentCo Group and the SpinCo Group agree to enter into a brand licensing framework agreement (a form of which is attached hereto as Exhibit B) after the completion of the Separation and Distribution, pursuant to which ParentCo Group will grant to the SpinCo Group the exclusive rights to develop, produce, and sell products under certain brands in the Global Markets.

Section 6.02. *Product Procurement*. ParentCo Group and the SpinCo Group agree to enter into a product procurement framework agreement (a form of which is attached hereto as Exhibit C) after the completion of the Separation and Distribution, pursuant to which ParentCo Group would manufacture and provide finished battery products to the SpinCo Group for its further sales in the Global Markets, and charge the purchase amount plus a mark-up rate.

Section 6.03. *Employee Matters*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As of or prior to the Distribution Date, SpinCo will have established a Subsidiary in the Global Markets, which have entered into, or will enter into, an employment agreement with each Transferred Employee in accordance with applicable Law. As of or prior to the Distribution Date, each Transferred Employee will have terminated, or will terminate, his or her employment agreement with the applicable member of the ParentCo Group in accordance with applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The ParentCo Group shall take such actions as are necessary or appropriate to cause each Transferred Employee to, effective as of the Distribution Date, cease to participate in any applicable employee incentive plan of the ParentCo Group in accordance with applicable Law. The SpinCo Group may adopt an employee equity incentive plan from time to time, which shall permit the grant and issuance of certain reward awards or incentive awards to employees determined by the SpinCo Group under such plan (including any of the Transferred Employees so determined by the SpinCo Group).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent any Transferred Employee is required by applicable Law to be paid in connection with the transfer of employment to any member of the SpinCo Group for any vacation time, paid time off and other time-off benefits as such Transferred Employee had with the ParentCo Group as of immediately prior to the Distribution Date, SpinCo Group shall, or shall cause another member of the SpinCo Group to, pay such Transferred Employee the amounts owed in compensation for such vacation time, paid time off and other time-off benefits.

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Section 6.04. *Tax Matters*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ParentCo shall have sole and exclusive responsibility for the preparation and filing of (i) all Tax Returns that include only ParentCo and/or any of its Subsidiaries that is not a member of the SpinCo Group for any Tax period, (ii) any Tax Returns required to be filed by ParentCo, SpinCo or any of their Subsidiaries for any Pre-Distribution Tax Period and (iii) any Tax Return with respect to a Straddle Tax Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SpinCo and its Subsidiaries shall have sole and exclusive responsibility for the preparation and filing of all Tax Returns that include only SpinCo and/or any member of the SpinCo Group for any Post-Distribution Tax Period; provided that if any such Tax Return could reasonably result in a Tax liability or a Tax Return filing obligation for any member of the ParentCo Group with respect to any Tax period, such Tax Return shall be filed consistent with past practices, elections, conventions and accounting methods used prior to the Distribution Date and shall be subject to ParentCo's right to comment on such Tax Return and any comment from ParentCo shall be considered by SpinCo or the relevant Subsidiary in good faith. No member of the SpinCo Group shall forgo the right to carry back any Tax asset from a Post-Distribution Tax Period to any prior Tax period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If requested by SpinCo, ParentCo shall (i) submit to SpinCo for SpinCo's review and comment a draft of any Tax Return (or the relevant portions thereof) described in Section 6.04(a)(ii) or Section 6.04(a)(iii) that reflects a Tax liability for which any member of the SpinCo Group is allocated pursuant to Section 6.04(e) and (ii) consider in good faith any reasonable comments that SpinCo timely provides to ParentCo in respect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ParentCo shall pay (or cause to be paid) to the proper Tax Authority the Tax shown as due on any Tax Return for which a member of the ParentCo Group is responsible for filing under this Section 6.04, and SpinCo shall pay (or cause to be paid) to the proper Tax Authority the Tax shown as due on any Tax Return for which a member of the SpinCo Group is responsible for filing under this Section 6.04, provided that, (i) if any member of the ParentCo Group is required to make a payment to a Taxing Authority for Taxes allocated to the SpinCo Group pursuant to Section 6.04(e) or Section 6.04(f), SpinCo shall (or shall cause such SpinCo Group member to) promptly pay the amount of such Taxes to ParentCo or, at the election of ParentCo, reimburse such member of the ParentCo Group if it had paid such Taxes and (ii) if any member of the SpinCo Group is required to make a payment to a Taxing Authority for Taxes allocated to the ParentCo Group pursuant to Section 6.04(e) or Section 6.04(f), Parent Co shall (or shall cause such ParentCo Group member to) promptly pay the amount of such Taxes to SpinCo or, at the election of SpinCo, reimburse such member of the SpinCo Group if it had paid such Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as provided in Section 6.04(f), (i) ParentCo shall be allocated all Taxes reported, or required to be reported, on any Tax Return that any member of the ParentCo Group files or is required to file under applicable Law and (ii) SpinCo shall be allocated all Taxes reported, or required to be reported, on any Tax Return that any member of the SpinCo Group files or is required to file under applicable Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) With respect to any Straddle Tax Period, Taxes shall be allocated between the ParentCo Group and the SpinCo Group accordance with the Closing of the Books Method; provided however, that if any SpinCo Group member does not close its Tax year on the Distribution Date, the Tax attributable to the operations of the members of the SpinCo Group for any Pre-Distribution Tax Period shall be the Tax computed using a hypothetical closing of the books consistent with the Closing of the Books Method.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any tax sharing agreement between any member of ParentCo Group and any member of the SpinCo Group shall be terminated as of the Effective Date.

Section 6.05. *Inducement.* SpinCo acknowledges and agrees that ParentCo's willingness to cause, effect and consummate the Separation and Distribution has been conditioned upon and induced by SpinCo's covenants and agreements in this Agreement and the Ancillary Agreements, including SpinCo's assumption of the SpinCo Liabilities pursuant to the Separation and the provisions of this Agreement and SpinCo's covenants and agreements contained in Article 5.

Section 6.06. *Post-Effective Time Conduct*. The Parties acknowledge that, after the Effective Time, ParentCo (and the ParentCo Subsidiaries) shall be independent of SpinCo (and the SpinCo Subsidiaries), and SpinCo (and the SpinCo Subsidiaries) shall be independent of ParentCo (and the ParentCo Subsidiaries), in each case with responsibility for its own respective actions and inactions and its own respective Liabilities relating to, arising out of or resulting from the conduct of its business, operations and activities following the Effective Time, except as may otherwise be provided in this Agreement or any Ancillary Agreement, and each Party shall and shall cause the other members of its Group to (except as otherwise provided in Article 5) use commercially reasonable efforts to prevent such Liabilities from being inappropriately borne by any of ParentCo, ParentCo Subsidiaries, SpinCo or SpinCo Subsidiaries.

ARTICLE 7

CONFIDENTIALITY

Section 7.01. *Confidentiality*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any termination of this Agreement and subject to Section 7.02, for a period of ten (10) years after the Distribution Date, each Party agrees to hold, and to cause its respective Subsidiaries, Affiliates, directors, officers, employees, agents, accountants, counsel and other advisors and representatives to hold, in strict confidence, and undertake all reasonable precautions to safeguard and protect the confidentiality of, all Information concerning the other Party that is in its possession after the Distribution Date or furnished by the other Party or its respective directors, officers, employees, agents, accountants, counsel and other advisors and representatives at any time pursuant to this Agreement, any Ancillary Agreement or otherwise, and shall not use any such Information other than for such purposes as shall be expressly permitted hereunder or thereunder, except, in each case, to the extent that such Information has been (i) in the public domain through no fault of such Party, its respective Subsidiaries, Affiliates, directors, officers, employees, agents, accountants, counsel and other advisors and representatives, (ii) lawfully acquired from other sources, which are not bound by a confidentiality obligation, by such Party or its respective Subsidiaries or Affiliates, or (iii) independently generated without reference to any proprietary or confidential Information of the other Party or its Subsidiaries.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Party agrees not to release or disclose, or permit to be released or disclosed, any such Information to any other Person, except its directors, officers, employees, agents, accountants, counsel and other advisors and representatives who need to know such Information and who are informed and advised that the Information is confidential and subject to the obligations hereunder, except in compliance with Section 7.02. Without limiting the foregoing, when any Information is no longer needed for the purposes contemplated by this Agreement or any Ancillary Agreement, each Party will promptly after request of the other Party either (i) destroy all copies of the Information in such Party's possession, custody or control (including any that may be stored in any computer, word processor, or similar device, to the extent not commercially impractical to destroy such copies) including any copies, summaries, analyses, compilations, reports, extracts or other reproductions, in whole or in part, of such written, electronic or other tangible material or any other materials in written, electronic or other tangible format based on, reflecting or containing Information prepared by such Party, and/or (ii) return to the requesting Party, at the expense of the requesting Party, all copies of the Information furnished to such Party by or on behalf of the requesting Party. Notwithstanding the foregoing, each Party may maintain the confidential Information of the other Party that is contained in such Party's electronic back-up files that are created in the normal course of business pursuant to such Party's standard protocol for preserving its electronic records.

Section 7.02. *Protective Arrangements*. In the event that either Party or their respective Subsidiaries or Affiliates, either (i) determines after consultation with counsel, in the opinion of such counsel that it is required by law to disclose any Information, or (ii) receives any demand under lawful process or from any Governmental entity to disclose or provide Information of the other Party or their respective Subsidiaries that is subject to the confidentiality provisions hereof, such Party shall notify the other Party prior to disclosing or providing such Information and shall cooperate at the expense of the requesting party (and to the extent legally permissible) in seeking any reasonable protective arrangements requested by such other Party. Subject to the foregoing, the Party that received such request may thereafter (i) furnish only that portion of the confidential Information that is legally required, (ii) give notice to the other Party of the Information to be disclosed as far in advance as is practical, and (iii) exercise reasonable best efforts to obtain reliable assurance that the confidential nature of such Information shall be maintained.

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ARTICLE 8

ACCESS TO INFORMATION AND SERVICES

Section 8.01. *Provision of Books and Records*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in any Ancillary Agreement, as soon as practicable after the Distribution Date, ParentCo and SpinCo shall cooperate to provide that originals of SpinCo Books and Records (including all documents and electronically stored information except e-mails or other electronic correspondence not readily available in hard copy) which solely relate to SpinCo or the conduct of the SpinCo Business, as the case may be, up to the Effective Time, are in the possession or control of SpinCo or a SpinCo Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to SpinCo Books and Records (including e-mails and other electronic correspondence not readily available in hard copy) that relate to both the SpinCo Business and the ParentCo Business (the "**Combined Books and Records**"), (i) the Parties shall use good faith efforts to divide as soon as practicable but no later than six (6) months following the Distribution Date such Combined Books and Records into the books and records which solely relate to ParentCo or the conduct of the ParentCo Business and those that relate solely to SpinCo and the SpinCo Business, as the case may be, up to the Effective Time, as appropriate, and (ii) to the extent such Combined Books and Records are not so divided, each Party shall keep and maintain copies of such Combined Books and Records as reasonably appropriate under the circumstances, subject to applicable confidentiality provisions hereof and of any Ancillary Agreement.

Section 8.02. *Access to Information*. Except as otherwise provided in any Ancillary Agreement, after the Distribution Date, each Party shall provide the other Party and such other Party's authorized accountants, counsel and other designated representatives reasonable access and duplicating rights during normal business hours to all records, books, Contracts, instruments, computer data and other data and Information relating to pre-Distribution operations of the SpinCo Business or ParentCo Business, as applicable, or within such Party's possession or control or such other Information reasonably necessary for the preparation, review or auditing for financials for such other Party (including using reasonable best efforts to give access to Persons or firms possessing Information) insofar as such access is reasonably required by such other Party for the conduct of the SpinCo Business or ParentCo Business, as applicable, subject to appropriate restrictions for classified or privileged information.

Section 8.03. *Production of Witnesses*. At all times after the Effective Time, each of SpinCo and ParentCo shall use reasonable best efforts to make available to the other, upon prior written request, its and its Subsidiaries' officers, directors, employees and agents as witnesses to the extent that such Persons may reasonably be required in connection with any Action.

Section 8.04. *Reimbursement*. Except to the extent otherwise contemplated in any Ancillary Agreements, a Party providing any information under Section 8.02 or witness services under Section 8.03 to the other Party shall be entitled to receive from the recipient, upon the presentation of invoices therefor, payments of such amounts, relating to supplies, disbursements and other out-of-pocket expenses (at cost) and direct and indirect expenses of employees who are witnesses or otherwise furnish assistance (at cost), as may be reasonably incurred in providing any such information under Section 8.02 or witness services under Section 8.03.

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Section 8.05. *Privileged Matters*. To allocate the interests of each Party with respect to privileged information, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ParentCo shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information which relates solely to the ParentCo Business, whether or not the privileged information is in the possession of or under the control of ParentCo or SpinCo. ParentCo shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information that relates solely to the subject matter of any claims constituting Liabilities of ParentCo and its Affiliates and all Persons who at any time prior to or as of the Effective Time were directors, officers, agents or employees of ParentCo or any of its Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, now pending or which may be asserted in the future, in any lawsuits or other Actions initiated against or by ParentCo, whether or not the privileged information is in the possession of or under the control of ParentCo or SpinCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SpinCo shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information which relates solely to the SpinCo Business, whether or not the privileged information is in the possession of or under the control of ParentCo or SpinCo. SpinCo shall also be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged information which relates solely to the subject matter of any claims constituting Liabilities of SpinCo and its Affiliates and all Persons who at any time prior to or as of the Effective Time were directors, officers, agents or employees of SpinCo or any of its Affiliates (in each case, in their respective capacities as such), in each case, together with their respective heirs, executors, administrators, successors and assigns, now pending or which may be asserted in the future, in any lawsuits or other Actions initiated against or by SpinCo, whether or not the privileged information is in the possession of SpinCo or under the control of ParentCo or SpinCo.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ParentCo and SpinCo agree that they shall have a shared privilege, with equal right to assert or waive, subject to the restrictions of this Section 8.05, with respect to all privileges not allocated pursuant to the terms of Sections 8.05(a) and 8.05(b). All privileges relating to any claims, proceedings, litigation, disputes or other matters which involve both ParentCo and SpinCo in respect of which ParentCo and SpinCo retain any responsibility or liability under this Agreement shall be subject to a shared privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Party may waive any privilege which could be asserted under any applicable law, if the other Party has a shared privilege, without the consent of the other Party, except to the extent reasonably required in connection with any litigation with Third Parties or as provided in Section 8.05(e). Such consent shall be in writing, or shall be deemed to be granted unless written objection is made within twenty (20) days after notice upon the other Party requesting such consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In the event of any litigation or dispute between the Parties and any of its Affiliates, either Party may waive a privilege in which the other Party has a shared privilege, without obtaining the consent of the other Party, provided that such waiver of a shared privilege shall be effective only as to the use of Information with respect to the litigation or dispute between the Parties and any of its Affiliates, and shall not operate as a waiver of the shared privilege with respect to Third Parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If a dispute arises between the Parties regarding whether a privilege should be waived to protect or advance the interest of either Party, each Party agrees that it shall negotiate in good faith, shall endeavor to minimize any prejudice to the rights of the other Party, and shall not unreasonably withhold consent to any request for waiver by the other Party. Each Party specifically agrees that it will not withhold consent to waiver for any purpose except to protect its own legitimate interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Upon receipt by any Party of any subpoena, discovery or other request which arguably calls for the production or disclosure of Information subject to a shared privilege or as to which the other Party has the sole right hereunder to assert a privilege, or if any Party obtains knowledge that any of its current or former directors, officers, agents or employees has received any subpoena, discovery or other request which arguably calls for the production or disclosure of such privileged information, such Party shall promptly notify the other Party of the existence of the request and shall provide the other Party a reasonable opportunity to review the Information and to assert any rights it may have under this Section 8.05 or otherwise to prevent the production or disclosure of such privileged information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The transfer of all Information pursuant to this Agreement is made in reliance on the agreement of ParentCo and SpinCo, as set forth in this Section 8.05 and elsewhere in this Agreement, to maintain the confidentiality of privileged information and to assert and maintain applicable privileges. The access to Information being granted pursuant to Sections 8.01 and 8.02, the agreement to provide witnesses and individuals pursuant to Section 8.03 and the transfer of privileged information between the Parties pursuant to this Agreement shall not be deemed a waiver of any privilege that has been or may be asserted under this Agreement or otherwise.

ARTICLE 9

DISPUTE RESOLUTION

Section 9.01. *Disputes and Negotiation*. The Parties agree to follow the procedures set forth in this Article 9 if and when a dispute arises under this Agreement or the Ancillary Agreements. In the event of a dispute between the Parties, a designated representative of each of ParentCo and SpinCo will meet as reasonably requested by either Party to review any such dispute. If the disagreement is not resolved by the designated representatives by mutual agreement within thirty (30) days after a meeting to discuss the disagreement, either Party may at any time thereafter provide the other Party written notice specifying the terms of such disagreement in reasonable detail. Upon receipt of such notice, the chief executive officers of ParentCo and SpinCo shall meet at a mutually agreed upon time and location for the purpose of resolving such disagreement. The chief executive officers of ParentCo and SpinCo will discuss such disagreement and/or negotiate for a period of up to sixty (60) days in an effort to resolve such disagreement or negotiate an acceptable interpretation or revision of the applicable portion of this Agreement or the Ancillary Agreements mutually agreeable to both Parties, without the necessity of formal procedures relating thereto. During the course of such negotiations, the Parties will reasonably cooperate and provide information that is not materially confidential in order that each of the Parties may be fully informed with respect to the issues in dispute. The institution of a formal proceeding, including arbitration under Section 9.02, to resolve the disagreement may occur by written notice to the other Party only after the earlier of: (i) the chief executive officers of ParentCo and SpinCo mutually agreeing that resolution of the disagreement through continued negotiation is not likely to occur; or (ii) the expiration of the sixty (60) day negotiation period.

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Section 9.02. *Dispute Resolution and Arbitration*. Disputes (the "**Disputes**") arising out of, relating to or in connection with this Agreement or the Ancillary Agreements (except as otherwise provided in any Ancillary Agreements), or in relations between the parties with respect to the subject matter hereof, for any reason or under any circumstances, shall be resolved exclusively by arbitration under the auspices of Hong Kong International Arbitration Centre ("**HKIAC**") in accordance with the arbitration rules of the HKIAC in force at the time of the request for arbitration. The arbitration shall take place in Hong Kong at the HKIAC. The arbitration proceeding shall be conducted in English. The arbitral tribunal shall consist of three (3) arbitrators, with one arbitrator to be appointed by ParentCo, one arbitrator to be appointed by SpinCo, and the third arbitrator to be appointed by the Chairman of HKIAC. Each of the arbitrators shall be fluent in English. The arbitration award shall be final and binding on the Parties and shall not be subject to any appeal. Any judgment upon any award may be entered and enforced in any court having jurisdiction over a Party or any of its assets. For the purpose of enforcement of an award, the Parties irrevocably and unconditionally waive any defense of inconvenient forum in any court of competent jurisdiction.

Section 9.03. *Confidentiality*. The arbitration proceeding shall be confidential and the arbitrator(s) shall issue appropriate protective orders to safeguard each Party's confidential Information. Except as required by law, no Party shall make (or instruct the arbitrator(s) to make) any public announcement with respect to the proceedings or decision of the arbitrator(s) without prior written consent of each other Party. The existence of any dispute submitted to arbitration, and the award, shall be kept in confidence by the Parties and the arbitrator(s), except as may be required in connection with the enforcement of such award or as otherwise required by applicable law or regulatory authority.

Section 9.04. *Limitation of Liability*. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, INCLUDING, WITHOUT LIMITATION, LOST PROFITS AND BUSINESS INTERRUPTION.

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ARTICLE 10

FURTHER ASSURANCES

Section 10.01. *Further Assurances*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to and without limiting the actions specifically provided in this Agreement, each of the Parties shall use its reasonable best efforts, prior to, on and after the Distribution Date, to take, or cause to be taken, all actions, and to do, or cause to be done, all things, reasonably necessary, proper or advisable under applicable laws, regulations and agreements to consummate and make effective the transactions contemplated by this Agreement and the Ancillary Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the foregoing, prior to, on and after the Distribution Date, each Party shall cooperate with the other Party, and without any further consideration, but at the expense of the requesting Party, to execute and deliver, or use its reasonable best efforts to cause to be executed and delivered, all instruments, including instruments of conveyance, assignment and transfer, and to make all filings with, and to obtain all consents, approvals or authorizations of, any Governmental entity or any other Person under any permit, license, agreement, indenture or other instrument (including any Consents or Governmental Approvals), and to take all such other actions as such Party may reasonably be requested to take by the other Party from time to time, consistent with the terms of this Agreement and the Ancillary Agreements, in order to effectuate the provisions and purposes of this Agreement and the Ancillary Agreements and the transfers of the SpinCo Assets or ParentCo Assets and the assignment and assumption of the SpinCo Liabilities or ParentCo Liabilities and the other transactions contemplated hereby and thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At or prior to the Effective Time, ParentCo and SpinCo, in their respective capacities as direct and indirect shareholders of ParentCo Subsidiaries and SpinCo Subsidiaries (as applicable), shall each approve or ratify any actions that are reasonably necessary or desirable to be taken by ParentCo, SpinCo, any ParentCo Subsidiary, any SpinCo Subsidiary, as the case may be, to effectuate the transactions contemplated by this Agreement and the Ancillary Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Nothing in this Article 10 shall limit or affect the provisions of Section 3.13(c) or Article 11.

ARTICLE 11

TERMINATION

Section 11.01. *Termination*. Notwithstanding anything to the contrary herein, this Agreement (including Article 5 (Indemnification)) may be terminated and the Separation and Distribution may be amended, modified or abandoned at any time prior to the Distribution by and in the sole discretion of ParentCo without the approval of SpinCo. In the event of such termination, no Party shall have any Liability to the other Party or any other Person. After the Distribution, this Agreement may not be terminated except by an agreement in writing signed by each Party.

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ARTICLE 12

MISCELLANEOUS

Section 12.01. *Governing Law*. This Agreement and any dispute arising out of, in connection with or relating to this Agreement shall be governed by and construed in accordance with the Laws of the State of New York, without giving effect to the conflicts of laws principles thereof.

Section 12.02. *Assignability.* The provisions of this Agreement, each Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) and the obligations and rights hereunder shall be binding upon, inure to the benefit of and be enforceable by (and against) the Parties and their respective successors and permitted transferees and assigns. Notwithstanding the foregoing, this Agreement shall not be assignable, in whole or in part, by any Party without the prior written consent of the other Party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be null and void; *provided*, *however*, that a Party may assign this Agreement to an Affiliate controlled by such Party or in connection with a merger transaction in which such Party is not the surviving entity or in connection with the sale or other transfer by such Party of all or substantially all of its assets, and upon the effectiveness of such assignment, the assigning Party shall be released from all of its obligations under this Agreement if the surviving entity of such merger or the transferee of such assets shall agree in writing, in form and substance reasonably satisfactory to the other Party, to be bound by all terms of this Agreement as if named as a "Party" hereto.

Section 12.03. *Third Party Beneficiaries*. Except for the indemnification rights under this Agreement of any ParentCo Indemnitee or SpinCo Indemnitee in their respective capacities as such, (a) the provisions of this Agreement and each Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) are solely for the benefit of the Parties and are not intended to confer upon any Person except the Parties any rights or remedies hereunder, and (b) there are no Third Party beneficiaries of this Agreement or any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) and neither this Agreement nor any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) shall provide any Third Party with any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement or any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement).

Section 12.04. *Notices*. All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) upon transmission of an electronic mail sent to the Party's e-mail address, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the addresses set forth below (or at such other addresses as shall be specified by notice given in accordance with this Section):

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If to ParentCo, to:

Unit C, 33/F

TML Tower

No.3 Hoi Shing Road

Tsuen Wan, New Territories

Hong Kong

Attention: HONG Yu

If to SpinCo, to:

153 BEACH Road

#22-01/04

GATEWAY EAST

SINGAPORE

Attention: DONG Li

Section 12.05. *Severability*. If any provision of this Agreement or any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) or the application thereof to any Person or circumstance is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions hereof or thereof, or the application of such provision to Persons or circumstances or in jurisdictions other than those as to which it has been held invalid or unenforceable, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby, so long as the economic or legal substance of the transactions contemplated hereby or thereby, as the case may be, is not affected in any manner adverse to any Party. Upon such determination, the Parties shall negotiate in good faith in an effort to agree upon such a suitable and equitable provision to effect the original intent of the Parties.

Section 12.06. *Expenses*. Except as expressly set forth in this Agreement or in any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement), whether or not the Separation or the Distribution is consummated, all the costs and expenses incurred in connection with the Separation and Distribution, including costs and expenses relating to legal and tax counsel, financial advisors and accounting advisory work paid or incurred in connection with the Separation and Distribution shall be paid by the Party incurring such costs and expenses.

Section 12.07. *Survival of Covenants*. Except as expressly set forth in any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement), all covenants, representations and warranties contained in this Agreement and each Ancillary Agreement (except as otherwise provided in any Ancillary Agreement), and liability for the breach of any obligations contained herein, shall survive the Effective Time and remain in full force and effect in accordance with their applicable terms.

Section 12.08. *Waivers of Default.* The failure of either Party to require strict performance by the other Party of any provision in this Agreement or any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) will not waive or diminish such Party's right to demand strict performance thereafter of that or any other provision hereof.

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Section 12.09. *Specific Performance*. Subject to the provisions of Article 9, in the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the Party who is, or is to be, thereby aggrieved shall have the right to specific performance and injunctive or other equitable relief in respect of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The Parties agree that the remedies at law for any breach or threatened breach, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived by each of the Parties.

Section 12.10. *Amendments.* Subject to Section 11.01, this Agreement may not be modified or amended except by an agreement in writing signed by each of the Parties.

Section 12.11. *Schedules.* All schedules attached hereto are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Capitalized terms used in the schedules hereto but not otherwise defined therein will have the respective meanings assigned to such terms in this Agreement.

Section 12.12. *Construction*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement has been prepared jointly and shall not be strictly construed against either Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement, whenever the context requires: the singular number shall include the plural, and vice versa; the masculine gender shall include the feminine and neuter genders; the feminine gender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise indicated, all references in this Agreement to "Articles", "Sections", "Schedules", "Exhibits" and "Attachments" are intended to refer to Articles and Sections of, and Schedules, Exhibits and Attachments, to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The words "include" and "including," shall not be deemed to be terms of limitation, but rather shall be deemed to be followed by the words "without limitation".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 12.13. *Counterparts*. This Agreement may be executed in two or more counterparts, original, but which together shall constitute one and the same instrument. Any executed counterpart delivered by means of electronic transmission pursuant to which the signature of (or on behalf of) such Party can be seen shall be deemed for all purposes as being a good and valid execution and delivery of this Agreement by such Party.

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Section 12.14. *Performance*. ParentCo shall cause to be performed, and hereby guarantees the performance of, all actions, agreements and obligations set forth in this Agreement or in any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) to be performed by any ParentCo Subsidiary. SpinCo shall cause to be performed, and hereby guarantee the performance of, all actions, agreements and obligations set forth in this Agreement or in any Ancillary Agreement (except as otherwise provided in any Ancillary Agreement) to be performed by any SpinCo Subsidiary.

Section 12.15. *Mutual Drafting*. This Agreement and the Ancillary Agreements (except as otherwise provided in any Ancillary Agreement) shall be deemed to be the joint work product of the Parties, and any rule of construction that a document shall be interpreted or construed against a drafter of such document shall not be applicable.

[*Remainder of Page Intentionally Left Blank*]

------

WITNESS WHEREOF, the Parties have caused this Separation and Distribution Agreement authorized representatives as of the day and year first above written.

---

| | |
|:---|:---|
|  **Leoch International Technology Limited** | **Leoch International Technology Limited** |
|  By: | /s/ HONG Yu |
|  | Name: HONG Yu |
|  | Title: Director |

---

[Signature Page to Separation and Distribution Agreement]

------

WITNESS WHEREOF, the Parties have caused this Separation and Distribution Agreement authorized representatives as of the day and year first above written.

---

| | |
|:---|:---|
|  **Leoch Energy Inc** | **Leoch Energy Inc** |
|  By: | /s/ DONG Li |
|  | Name: DONG Li |
|  | Title: Director |

---

[Signature Page to Separation and Distribution Agreement]

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**Schedule I** 

**List of Ancillary Agreements** 

1. Brand Licensing Agreement between ParentCo Group and SpinCo Group, the form of which is attached in Exhibit B
to this Agreement

2. Product Procurement Framework Agreement between ParentCo Group and SpinCo Group, the form of which is attached
in Exhibit C to this Agreement

Schedule I

------

**Exhibit A** 

**Amended and Restated Memorandum and Articles of Association** 

Exhibit A-1

------

**Exhibit B** 

**Brand Licensing Agreement** 

Exhibit B-1

------

**Exhibit C** 

**Product Procurement Framework Agreement** 

Exhibit C-1

## Exhibit 4.1

**Exhibit 4.1** 

**Dated 10 December 2025** 

**Leoch International Technology Limited** 

**and** 

**Leoch Energy Inc** 

**BRAND LICENSING FRAMEWORK AGREEMENT** 

------

**THIS AGREEMENT** is entered into on 10 December 2025

**BETWEEN:** 

**(1)** **Leoch International Technology Limited** ()"**Leoch Technology** "), a company with limited
liability incorporated under the laws of the Cayman Islands, for itself and on behalf of its subsidiaries (collectively "**Leoch Technology Group** "); and

**(2)** **Leoch Energy Inc** ()"**Leoch Energy** "), an exempted company with limited liability
incorporated under the laws of the Cayman Islands, for itself and on behalf of its subsidiaries (collectively "**Leoch Energy Group** ").

(collectively, the "**Parties**", and individually a "**Party**")

**RECITALS:** 

**(A)** Leoch Technology and Leoch Energy, or their respective affiliates, will enter into certain separation
and distribution agreement, pursuant to which Leoch Technology is being separated into two separate, publicly traded companies ()"**Separation and Distribution** "), each for (i) battery business and sales of recycled lead products
business in Chinese Mainland, Hong Kong and Macau, which shall be owned and conducted, directly and indirectly, by Leoch Technology and its subsidiaries; and (ii) battery business in overseas markets including Europe, Middle East and Africa,
Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau) ()"**Overseas Markets** ").

**(B)** In connection with the transactions contemplated under the Separation and Distribution, it is expected
that Leoch Technology Group will grant to Leoch Energy Group the exclusive rights to develop, produce, and sell products under the brands of ![LOGO](g760217g1215150504900.jpg) , ![LOGO](g760217g1215150505393.jpg) and ![LOGO](g760217g1215150505673.jpg) (the "**Licensing Brands**") in the Overseas Markets.

**(C)** in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

**OPERATIVE PROVISIONS:** 

**1.** **INTERPRETATION** 

1.1 Any reference in this Agreement to "**writing**" includes a reference to e-mail, facsimile transmission or comparable means of communication.

1.2 Any reference in this Agreement to any provision of a statute shall be construed as a reference to that
provision as amended, re-enacted or extended at the relevant time.

1.3 The headings in this Agreement are for convenience only and shall not affect its interpretation.

**2.** **TRANSACTIONS** 

2.1 Leoch Technology Group will grant to Leoch Energy Group the exclusive rights to develop, produce, and sell
products under the the Licensing Brands in the Overseas Markets, and Leoch Energy Group will pay license royalties to Leoch Technology Group.

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2.2 The royalties under the Brand Licensing Framework Agreement to be paid to Leoch Technology Group by Leoch
Energy Group is currently expected to be RMB6,000,000 per annum which is subject to adjustments from time to time upon arm's length negotiations between Leoch Energy and Leoch Technology, and have made reference to (a) the positioning of
the relevant products under the Licensing Brands in the end-market, (b) the duration such products have been present in the relevant market and the product introduction strategy, and (c) such other
factors as Leoch Technology and Leoch Energy may deem relevant.

**3.** **REPRESENTATIONS AND WARRANTIES** 

3.1 Each of Leoch Technology (for itself and on behalf of its subsidiaries) and Leoch Energy (for itself and on
behalf of its subsidiaries) hereby represents and warrants to each other that, as at the date of the execution and delivery of this Agreement and for so long as any of the Transactions is being carried out:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a company duly incorporated, validly existing and in good standing under the laws of its country of
incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has all the requisite power and capacity to enter into and perform its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement and all documents and instruments executed pursuant hereto are, and when delivered will be,
valid and legally binding obligations of Leoch Technology (or any other member of Leoch Technology Group) and Leoch Energy (or any other member of Leoch Energy Group) (as the case may be); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution, performance and implementation of this Agreement and the matters contemplated herein has been
duly authorized by all necessary corporate action of Leoch Technology Group and Leoch Energy Group, respectively.

**4.** **TERM AND TERMINATION** 

4.1 The effective term of this Agreement shall be ten years from the date on which Leoch Energy is listed on a
commence on Nasdaq, subject to circumstances as provided in Clause 4.2.

4.2 Notwithstanding the terms of Clause 4.1, either party shall be entitled forthwith to terminate this Agreement
by written notice to the other party at any time if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the other party commits any material breach of any of the provisions of this Agreement and, in the case of a
breach capable of remedy, fails to remedy the same within the period of 30 days or otherwise agreed by the parties after receipt of a written notice giving full particulars of the breach and requiring it to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an encumbrancer takes possession or a receiver is appointed over any of the property or assets of that other
party, or that other party makes any voluntary arrangement with its creditors or becomes subject to an administration order, or that other party goes into liquidation (except for the purposes of amalgamation or reconstruction and in such manner that
the company resulting therefrom effectively agrees to be bound by or assume the obligations imposed on that other party under this Agreement); or

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where necessary pursuant to the requirements under the rules and regulations prescribed by the applicable stock
exchange or as may otherwise be required by such stock exchange, the transactions contemplated under this Agreement are not approved by the independent shareholders of Leoch Technology and Leoch Energy in compliance with such requirements,

and, upon termination of this Agreement, if the products or services have been delivered but not paid for, the relevant purchase price or service charges shall become immediately due and payable notwithstanding any previous agreement or arrangement to the contrary.

4.3 Notwithstanding the terms of Clauses 4.1 and 4.2, a party hereto shall be entitled to terminate this Agreement
by giving the other party not less than three months' written notice (unless the notice period is otherwise waived by the other party in writing).

4.4 For the purposes of Clause 4.2(a), a breach shall be considered capable of remedy if the party in breach can
comply with the provision in question in all respects other than as to the time of performance.

4.5 Any waiver by either party of a breach of any provision of this Agreement shall not be considered as a waiver
of any subsequent breach of the same or any other provision thereof.

4.6 The rights to terminate this Agreement given by this Clause shall be without prejudice to any other right or
remedy of either party in respect of the breach concerned (if any) or any other breach.

**5.** **COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS** 

5.1 The parties hereby agree and acknowledge that, notwithstanding any provision in this Agreement to the contrary,
the transactions as contemplated under this Agreement and the obligations and duties of Leoch Technology Group on one part and Leoch Energy Group on the other part are subject to the compliance of the applicable laws and regulations (including the
requirements under the respective stock exchanges where each of them is listed), and each of Leoch Technology Group and Leoch Energy Group shall use its best endeavours to assist the other Party for compliance with the applicable laws and
regulations (including the requirements under the respective stock exchanges where each of them is listed), in particular, shall provide all information and documents as required by the relevant stock exchange or pursuant to the applicable laws and
regulations in connection with this Agreement and the transactions contemplated hereunder.

5.2 Leoch Technology and Leoch Energy may disclose in their respective listing documents, announcements, circulars,
interim and annual reports and/or press releases relating to this Agreement, the Transactions or other matters contemplated under this Agreement on or after the date of this Agreement.

**6.** **NATURE OF AGREEMENT** 

6.1 Neither party may, without the written consent of the other, assign its rights under this Agreement.

6.2 This Agreement contains the entire agreement between the parties with respect to the subject matter hereof,
supersedes all previous agreements and understandings between the parties with respect thereto, and may not be modified except by an instrument in writing signed by the duly authorised representatives of the parties.

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6.3 Each party acknowledges that, in entering into this Agreement, it does not do so on the basis of, and does not
rely on, any representation, warranty or other provision except as expressly provided herein, and all conditions, warranties or other terms implied by statute or common law are hereby excluded to the fullest extent permitted by law.

6.4 If any provision of this Agreement is held by any court or other competent authority to be void or
unenforceable in whole or part, this Agreement shall continue to be valid as to the other provisions thereof and the remainder of the affected provision.

**7.** **NOTICES** 

Any notice required to be given by this Agreement shall be delivered personally or sent by e-mail or courier to the following address:

---

| | | |
|:---|:---|:---|
| <u>To Leoch Technology</u> |  |  |
| Address | : | Unit C, 33/F.<br> TML Tower<br> No.3 Hoi Shing Road<br> Tsuen Wan, New Territories<br> Hong Kong |
| Email | : | helen@leoch.com |
| Attention | : | HONG Yu |
| <u>To Leoch Energy</u> |  |  |
| Address | : | 152 BEACH ROAD<br> #22-01/04<br> GATEWAY EAST<br> SINGAPORE |
| Email | : | dongli@leoch.com |
| Attention | : | DONG Li |

---

or to such other address or e-mail as either party may hereafter designate in writing to the other party. Notices shall be effective upon receipt by the other party.

**8.** **GOVERNING LAW AND JURISDICTION** 

8.1 This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.

8.2 Any dispute, controversy, difference or claim arising out of or relating to this contract, including the
existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved
by arbitration administered by the Hong Kong International Arbitration Centre ()"**HKIAC**") under the HKIAC administered Arbitration Rules in force when the Notice of Arbitration is submitted. The law of this arbitration clause shall
be governed by Hong Kong law. The seat of arbitration shall be Hong Kong.

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**9.** **RIGHTS OF THIRD PARTIES** 

A person who is not a party to this Agreement shall have no rights under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) to enforce any of its terms.

**10.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, and by each party hereto on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart signature page of this Agreement by e-mail attachment (PDF) or telecopy shall be an effective mode of delivery.

[*Signature pages to follow*]

------

**IN WITNESS** whereof the parties have executed this Agreement the day and year first above written.

---

| |
|:---|
| For and on behalf of |
| **Leoch International Technology Limited** |
| /s/ HONG Yu |
| Name: HONG Yu |
| Title: Director |

---

------

---

| |
|:---|
| For and on behalf of |
| **Leoch Energy Inc** |
| /s/ DONG Li |
| Name: DONG Li |
| Title: Director |

---

## Exhibit 4.2

**Exhibit 4.2** 

**Dated 10 December 2025** 

**Leoch International Technology Limited** 

**and** 

**Leoch Energy Inc** 

**PRODUCT PROCUREMENT FRAMEWORK AGREEMENT** 

------

**THIS AGREEMENT** is entered into on 10 December 2025

**BETWEEN:** 

**(1)** **Leoch International Technology Limited** ()"**Leoch Technology** "), a company with limited
liability incorporated under the laws of the Cayman Islands, for itself and on behalf of its subsidiaries (collectively "**Leoch Technology Group** "); and

**(2)** **Leoch Energy Inc** ()"**Leoch Energy** "), an exempted company with limited liability
incorporated under the laws of the Cayman Islands, for itself and on behalf of its subsidiaries (collectively "**Leoch Energy Group** ").

(collectively, the "**Parties**", and individually a "**Party**")

**RECITALS:** 

**(A)** Leoch Technology and Leoch Energy, or their respective affiliates, will enter into certain separation
and distribution agreement, pursuant to which Leoch Technology is being separated into two separate, publicly traded companies ()"**Separation and Distribution** "), each for (i) battery business and sales of recycled lead products
business in Chinese Mainland, Hong Kong and Macau, which shall be owned and conducted, directly and indirectly, by Leoch Technology and its subsidiaries; and (ii) battery business in overseas markets including Europe, Middle East and Africa,
Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau) ()"**Overseas Markets** ").

**(B)** In connection with the transactions contemplated under the Separation and Distribution, it is expected
that Leoch Energy Group will procure finished battery products from Leoch Technology Group for further sales in the Overseas Markets.

**(C)** in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.

**OPERATIVE PROVISIONS:** 

**1.** **INTERPRETATION** 

1.1 Any reference in this Agreement to "**writing**" includes a reference to e-mail, facsimile transmission or comparable means of communication.

1.2 Any reference in this Agreement to any provision of a statute shall be construed as a reference to that
provision as amended, re-enacted or extended at the relevant time.

1.3 The headings in this Agreement are for convenience only and shall not affect its interpretation.

**2.** **TRANSACTIONS** 

2.1 Leoch Technology would manufacture and provide finished battery products to Leoch Energy for its further sales
in the Overseas Markets, and charge the purchase amount plus a mark-up rate.

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2.2 Leoch Energy Group will pay to Leoch Technology Group purchase fees, being the cost amount of Leoch Technology
with a mark-up rate of approximately 10% to 25%. Such mark-up rate for the purchase fees under the Product Procurement Framework Agreement shall be determined by Leoch
Technology and Leoch Energy on an arm's length basis, with reference to (i) the ascribed mark-up rates as reflected in the financials of Leoch Energy Group (which have been prepared on a pro forma
basis as if Leoch Energy Group has been separated from Leoch Technology Group throughout the financial years of 2022 to 2024) for the purchase of battery products from Leoch Technology Group; (ii) the cost and expense for Leoch Technology Group
for manufacturing these products; and (iii) the price at which the same type of products is sold by Leoch Technology Group to independent third parties on normal commercial terms in the ordinary course of business in the PRC, or on terms which
are of no less favorable to the Retained Group than terms available to other independent third parties who are willing to order similar quantity under similar conditions.

**3.** **SPECIFIC AGREEMENTS** 

3.1 Any member of the Leoch Technology Group and any member of the Leoch Energy Group may enter into specific
agreements in respect of any of the Transactions under this Agreement with a view to setting out the detailed terms, provided that such terms comply with the applicable laws and regulations (including the requirements under the respective stock
exchanges where each of them is listed).

**4.** **REPRESENTATIONS AND WARRANTIES** 

4.1 Each of Leoch Technology (for itself and on behalf of its subsidiaries) and Leoch Energy (for itself and on
behalf of its subsidiaries) hereby represents and warrants to each other that, as at the date of the execution and delivery of this Agreement and for so long as any of the Transactions is being carried out:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is a company duly incorporated, validly existing and in good standing under the laws of its country of
incorporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has all the requisite power and capacity to enter into and perform its obligations under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement and all documents and instruments executed pursuant hereto are, and when delivered will be,
valid and legally binding obligations of Leoch Technology (or any other member of Leoch Technology Group) and Leoch Energy (or any other member of Leoch Energy Group) (as the case may be); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the execution, performance and implementation of this Agreement and the matters contemplated herein has been
duly authorized by all necessary corporate action of Leoch Technology Group and Leoch Energy Group, respectively.

**5.** **TERM AND TERMINATION** 

5.1 The effective term of this Agreement shall be the period from the date on which Leoch Energy is listed on a
commence on Nasdaq until December 31, 2027, subject to circumstances as provided in Clause 5.2.

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5.2 Notwithstanding the terms of Clause 5.1, either party shall be entitled forthwith to terminate this Agreement
by written notice to the other party at any time if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the other party commits any material breach of any of the provisions of this Agreement and, in the case of a
breach capable of remedy, fails to remedy the same within the period of 30 days or otherwise agreed by the parties after receipt of a written notice giving full particulars of the breach and requiring it to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an encumbrancer takes possession or a receiver is appointed over any of the property or assets of that other
party, or that other party makes any voluntary arrangement with its creditors or becomes subject to an administration order, or that other party goes into liquidation (except for the purposes of amalgamation or reconstruction and in such manner that
the company resulting therefrom effectively agrees to be bound by or assume the obligations imposed on that other party under this Agreement); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where necessary pursuant to the requirements under the rules and regulations prescribed by the applicable stock
exchange or as may otherwise be required by such stock exchange, the transactions contemplated under this Agreement are not approved by the independent shareholders of Leoch Technology and Leoch Energy in compliance with such requirements,

and, upon termination of this Agreement, if the products or services have been delivered but not paid for, the relevant purchase price or service charges shall become immediately due and payable notwithstanding any previous agreement or arrangement to the contrary.

5.3 Notwithstanding the terms of Clauses 5.1 and 5.2, a party hereto shall be entitled to terminate this Agreement
by giving the other party not less than three months' written notice (unless the notice period is otherwise waived by the other party in writing).

5.4 For the purposes of Clause 5.2(a), a breach shall be considered capable of remedy if the party in breach can
comply with the provision in question in all respects other than as to the time of performance.

5.5 Any waiver by either party of a breach of any provision of this Agreement shall not be considered as a waiver
of any subsequent breach of the same or any other provision thereof.

5.6 The rights to terminate this Agreement given by this Clause shall be without prejudice to any other right or
remedy of either party in respect of the breach concerned (if any) or any other breach.

**6.** **COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS** 

6.1 The parties hereby agree and acknowledge that, notwithstanding any provision in this Agreement to the contrary,
the transactions as contemplated under this Agreement and the obligations and duties of Leoch Technology Group on one part and Leoch Energy Group on the other part are subject to the compliance of the applicable laws and regulations (including the
requirements under the respective stock exchanges where each of them is listed), and each of Leoch Technology Group and Leoch Energy Group shall use its best endeavours to assist the other Party for compliance with the applicable laws and
regulations (including the requirements under the respective stock exchanges where each of them is listed), in particular, shall provide all information and documents as required by the relevant stock exchange or pursuant to the applicable laws and
regulations in connection with this Agreement and the transactions contemplated hereunder.

------

6.2 Leoch Technology and Leoch Energy may disclose in their respective listing documents, announcements, circulars,
interim and annual reports and/or press releases relating to this Agreement, the Transactions or other matters contemplated under this Agreement on or after the date of this Agreement.

**7.** **NATURE OF AGREEMENT** 

7.1 Neither party may, without the written consent of the other, assign its rights under this Agreement.

7.2 This Agreement contains the entire agreement between the parties with respect to the subject matter hereof,
supersedes all previous agreements and understandings between the parties with respect thereto, and may not be modified except by an instrument in writing signed by the duly authorised representatives of the parties.

7.3 Each party acknowledges that, in entering into this Agreement, it does not do so on the basis of, and does not
rely on, any representation, warranty or other provision except as expressly provided herein, and all conditions, warranties or other terms implied by statute or common law are hereby excluded to the fullest extent permitted by law.

7.4 If any provision of this Agreement is held by any court or other competent authority to be void or
unenforceable in whole or part, this Agreement shall continue to be valid as to the other provisions thereof and the remainder of the affected provision.

**8.** **NOTICES** 

Any notice required to be given by this Agreement shall be delivered personally or sent by e-mail or courier to the following address:

---

| | | |
|:---|:---|:---|
| <u>To Leoch Technology</u> |  |  |
| Address | : | Unit C, 33/F.<br> TML Tower<br> No.3 Hoi Shing Road<br> Tsuen Wan, New Territories<br> Hong Kong |
| Email | : | helen@leoch.com |
| Attention | : | HONG Yu |
| <u>To Leoch Energy</u> |  |  |
| Address | : | 152 BEACH ROAD<br> #22-01/04<br> GATEWAY EAST<br> SINGAPORE |
| Email | : | dongli@leoch.com |
| Attention | : | DONG Li |

---

or to such other address or e-mail as either party may hereafter designate in writing to the other party. Notices shall be effective upon receipt by the other party.

**9.** **GOVERNING LAW AND JURISDICTION** 

9.1 This Agreement shall be governed by and construed in accordance with the laws of Hong Kong.

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9.2 Any dispute, controversy, difference or claim arising out of or relating to this contract, including the
existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of or relating to it shall be referred to and finally resolved
by arbitration administered by the Hong Kong International Arbitration Centre ()"**HKIAC**") under the HKIAC administered Arbitration Rules in force when the Notice of Arbitration is submitted. The law of this arbitration clause shall
be governed by Hong Kong law. The seat of arbitration shall be Hong Kong.

**10.** **RIGHTS OF THIRD PARTIES** 

A person who is not a party to this Agreement shall have no rights under the Contracts (Rights of Third Parties) Ordinance (Chapter 623 of the Laws of Hong Kong) to enforce any of its terms.

**11.** **COUNTERPARTS** 

This Agreement may be executed in any number of counterparts, and by each party hereto on separate counterparts. Each counterpart is an original, but all counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart signature page of this Agreement by e-mail attachment (PDF) or telecopy shall be an effective mode of delivery.

[*Signature pages to follow*]

------

**IN WITNESS** whereof the parties have executed this Agreement the day and year first above written.

---

| |
|:---|
| For and on behalf of |
| **Leoch International Technology Limited** |
| /s/ HONG Yu |
| Name: HONG Yu |
| Title: Director |

---

------

---

| |
|:---|
| For and on behalf of |
| **Leoch Energy Inc** |
| /s/ DONG Li |
| Name: DONG Li |
| Title: Director |

---

## Exhibit 4.3

**Exhibit 4.3** 

**INDEMNIFICATION AGREEMENT** 

THIS INDEMNIFICATION AGREEMENT (the "**Agreement**") is made as of , 2025 by and among (i) Leoch Energy Inc, an exempted company incorporated under the laws of the Cayman Islands (the "**Company**") and (ii) , an individual holding a passport numbered (the "[**Director/Officer**]"). The Director shall be referred to herein as the "**Indemnitee**".

WHEREAS, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself;

WHEREAS, highly competent persons have become more reluctant to serve corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, the Board of Directors of the Company (the "**Board**") has determined that, in order to attract and retain qualified persons, the Company will maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among companies and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions;

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty in attracting and retaining such qualified persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company's shareholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

WHEREAS, the Indemnitee does not regard the protection available under the current effective memorandum and articles of association of the Company (the "**Articles**") and insurance as adequate in the present circumstances. The Director may not be willing to serve as an officer or director without adequate protection, and the Company desires the Director to serve in such capacity. The Director is willing to serve, continue to serve and to take an additional service for or on behalf of the Company on the condition that the Indemnitee be so indemnified;

WHEREAS, although the Articles require indemnification of the officers and directors of the Company, and the Indemnitee may also be entitled to additional contractual indemnification whereby contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification; and

WHEREAS, this Agreement is a supplement to and in furtherance of the Articles and any resolutions adopted pursuant thereto, and shall not be deemed as a substitute therefor, nor to diminish or abrogate any rights of the Indemnitee thereunder.

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NOW, THEREFORE, in consideration of the Director's agreement to serve as a director after the date hereof, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>. For purposes of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Change in Control**" shall be deemed to have occurred if (i) any "person" (as such term is used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "**Exchange Act**")), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned directly or indirectly by the shareholders of the Company in substantially the same proportions as their ownership of shares of the Company, becomes the "**beneficial owner**" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing more than fifty percent (50%) of the total voting power represented by the Company's then outstanding Voting Securities, (ii) during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company and any new director whose election by the Board of Directors or nomination for election by the Company's shareholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the shareholders of the Company approve a merger or consolidation of the Company with any other corporation other than a merger or consolidation which would result in the Voting Securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into Voting Securities of the surviving entity) at least a majority of the total voting power represented by the Voting Securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or (iv) the shareholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of (in one transaction or a series of transactions) all or substantially all of the Company's assets; <u>provided</u> that in no event shall a Change in Control be deemed to include (A) a merger, consolidation or reorganization of the Company for the purpose of changing the Company's state of incorporation and in which there is no substantial change in the shareholders of the Company or its successor (as the case may be), or (B) the Company's first firm commitment underwritten public offering of any of its securities to the general public pursuant to (x) a registration statement filed under the Securities Act of 1933, as amended, or (y) the securities laws applicable to an offering of securities in another jurisdiction pursuant to which such securities will be listed on an internationally recognized securities exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Corporate Status**" describes the status of a person who is or was a director, officer, employee, agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving at the request or consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Disinterested Director**" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Enterprise**" shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that the Indemnitee is or was serving at the written request or consent of the Company as a director, officer, employee, agent or fiduciary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**Expenses**" shall include all attorneys' fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other reasonable disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, participating, or being or preparing to be a witness in a Proceeding. Expenses also shall include the foregoing incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersede as bond, or other appeal bond or its equivalent. Expenses, however, shall not include amounts paid in settlement by the Indemnitee or the amount of judgments or fines against the Indemnitee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**Independent Counsel**" means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or the Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "**Independent Counsel**" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or the Indemnitee in an action to determine the Indemnitee's rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Proceeding**" includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which the Indemnitee was, is or will be involved as a party or otherwise, by reason of the Indemnitee's Corporate Status include with or without limitation: the fact that the Director is or was an officer or director of the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer or director of the Company, by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or other Enterprise, or as a direct or indirect result of any Proceeding made by any shareholder of the Company against the Indemnitee and arising out of or related to any round of financing of the Company (including but not limited to Proceedings regarding non-participation, or non-pro rata participation, in such round by such shareholder); in each case whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement; including one pending on or before the date of this Agreement, but excluding one initiated by an Indemnitee pursuant to <u>Section</u> <u>8</u> of this Agreement to enforce his/its rights under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**Voting Securities**" shall mean any securities of the Company that vote generally in the election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Indemnity of Indemnitee</u>. The Company hereby agrees to hold harmless and indemnify the Indemnitee to the fullest extent permitted by applicable law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Proceedings Other Than Proceedings by or in the Right of the Company</u>. The Director shall be entitled to the rights of indemnification provided in this <u>Section</u> <u>2(a)</u> if, by reason of his Corporate Status, the Director is, or is threatened to be made, a party to or participant in any Proceeding other than a Proceeding by or in the right of the Company. Pursuant to this <u>Section</u> <u>2(a)</u>, the Director shall be indemnified against all Expenses, judgments, penalties, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred by the Director, or on the Director's behalf, in connection with such Proceeding or any claim, issue or matter therein, if the Director acted in good faith and in a manner the Director reasonably believed to be in or not opposed to the best interests of the Company, and with respect to any criminal Proceeding, had no reasonable cause to believe the Director's conduct was unlawful.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Proceedings by or in the Right of the Company</u>. The Director shall be entitled to the rights of indemnification provided in this <u>Section</u> <u>2(b)</u> if, by reason of the Director's Corporate Status, the Director is, or is threatened to be made, a party to or participant in any Proceeding brought by or in the right of the Company. Pursuant to this <u>Section</u> <u>2(b)</u>, the Director shall be indemnified against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred or paid by the Director, or on the Director's behalf, in connection with such Proceeding if the Director acted in good faith and in a manner the Director reasonably believed to be in or not opposed to the best interests of the Company; <u>provided</u>, <u>however</u>, if applicable law so provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which it shall be finally determined (under the procedures, and subject to the presumptions, set forth in <u>Section</u> <u>7</u> and <u>Section</u> <u>8</u> hereof), that the Director is liable to the Company unless and to the extent that a tribunal of competent jurisdiction shall determine that such indemnification may be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Overriding Right to Indemnification if Successful on the Merits</u>. Notwithstanding any other provision of this Agreement, to the extent that the Indemnitee is, by reason of the Director's Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, the Indemnitee shall be indemnified to the maximum extent permitted by applicable law, as such may be amended from time to time, against all Expenses actually and reasonably incurred by him/it or on his/its behalf in connection therewith. If the Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify the Indemnitee against all Expenses actually and reasonably incurred by the Indemnitee or on the Indemnitee's behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Additional Indemnity</u>. In addition to, and without regard to any limitations on, the indemnification provided for in <u>Section</u> <u>2</u> of this Agreement, and subject to the other provisions of this Agreement, the Company shall, and hereby does indemnify and hold harmless the Director against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of the negligence or active or passive wrongdoing of the Director. The only limitation that shall exist upon the Company's obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to the Director that is finally determined (under the procedures, and subject to the presumptions, set forth in <u>Section</u> <u>7</u> and <u>Section</u> <u>8</u> hereof) to be unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Contribution</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whether or not the indemnification provided in <u>Section</u> <u>2</u> and <u>Section</u> <u>3</u> hereof is available, in respect of any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with an Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall pay, in the first instance, the entire amount of any judgment or settlement of such action, suit or proceeding without requiring the Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have against the Indemnitee. The Company shall not enter into any settlement of any action, suit or proceeding in which the Company is jointly liable with the Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against the Indemnitee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without diminishing or impairing the obligations of the Company set forth in the preceding subparagraph, if, for any reason, the Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which the Company is jointly liable with the Indemnitee (or would be if joined in such action, suit or proceeding), the Company shall contribute to the amount of Expenses (including attorneys' fees), judgments, fines and amounts paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) actually and reasonably incurred and paid or payable by the Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company, other than the Indemnitee, who are jointly liable with the Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and the Indemnitee, on the other hand, from the transaction or events from which such action, suit or proceeding arose; <u>provided</u>, <u>however</u>, that the proportion determined on the basis of relative benefit may, to the extent necessary to conform to law, be further adjusted by reference to the relative fault of the Company and all officers, directors or employees of the Company other than the Indemnitee who are jointly liable with the Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and the Indemnitee, on the other hand, in connection with the transactions or events that resulted in such Expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the applicable law may require to be considered. The relative fault of the Company and all officers, directors or employees of the Company, other than the Indemnitee, who are jointly liable with the Indemnitee (or would be if joined in such action, suit or proceeding), on the one hand, and the Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or secondary and the degree to which their conduct is active or passive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the fullest extent permitted by applicable law, the Company hereby agrees to fully indemnify and hold the Indemnitee harmless from any claim of contribution brought by officers, directors or employees of the Company, other than the Indemnitee, based upon a claim of liability which, if made against the Indemnitee directly, would be indemnifiable under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to the Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying the Indemnitee, shall contribute to the amount incurred by the Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement (if such settlement is approved in advance by the Company, which approval shall not be unreasonably withheld) and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company (together with its directors, officers, employees and agents) and the Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and the Indemnitee in connection with such event(s) and/or transaction(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Indemnification for Expenses of a Witness</u>. Notwithstanding any other provision of this Agreement, to the extent that the Director is, by reason of his Corporate Status, a witness, or is made (or asked) to respond to discovery request, in any Proceeding to which the Director is not a party, he shall be indemnified against all Expenses reasonably and actually incurred by him or on his behalf in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Advancement of Expenses</u>. Notwithstanding any other provision of this Agreement, the Company shall advance all Expenses reasonably incurred by or on behalf of an Indemnitee in connection with any Proceeding by reason of the Director's Corporate Status within thirty (30) days after the receipt by the Company of a statement or statements from the Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by the Indemnitee and shall include or be preceded or accompanied by a written undertaking by or on behalf of the Indemnitee to repay any Expenses advanced if it shall finally be determined (under the procedures, and subject to the presumptions, set forth in <u>Section</u> <u>7</u> and <u>Section</u> <u>8</u> hereof, or as set forth in <u>Section</u> <u>10(a)</u>) that the Indemnitee is not entitled to be indemnified against such Expenses. Any advances and undertakings to repay pursuant to this <u>Section</u> <u>6</u> shall be unsecured and interest-free. This <u>Section</u> <u>6</u> shall not apply to any claim made by the Indemnitee for which indemnity is excluded pursuant to <u>Sections 10(b)</u>, <u>(c)</u>, and <u>(d)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Procedures and Presumptions for Determination of Entitlement to Indemnification</u>. It is the intent of this Agreement to secure for the Indemnitee's rights of indemnification that are as favorable as may be permitted by applicable law. Accordingly, the parties agree that the following procedures and presumptions shall apply in the event of any question as to whether an Indemnitee is entitled to indemnification under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Indemnitee shall give the Company notice in writing as soon as practicable of any claim made against the Indemnitee for which indemnification will or could be sought under this Agreement. Such notice shall include the Indemnitee's request for indemnification and such documentation and information as is reasonably available to the Indemnitee and as is reasonably necessary for the Company to determine whether and to what extent the Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that the Indemnitee has requested indemnification. Failure to provide the notice required hereby shall not impair the Indemnitee's rights of indemnification and contribution under this Agreement except to the extent that such failure to provide notice actually prejudices the rights of the Company to defend any action or proceeding which is the basis of the claimed indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon written request by the Indemnitee for indemnification pursuant to the first sentence of <u>Section</u> <u>7(a)</u> hereof, a determination, if required by applicable law, with respect to the Indemnitee's entitlement thereto shall be made in the specific case by one of the following four (4) methods, which shall be at the election of the Board of Directors: (i) by a majority vote of the Disinterested Directors, even though less than a quorum, (ii) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum, (iii) if there are no Disinterested Directors or if the Disinterested Directors so direct, by Independent Counsel, in a written opinion of such counsel to the Board of Directors and the Indemnitee, or (iv) if so directed by the Board of Directors, by the shareholders of the Company; provided that, in the event of a Change in Control (other than a Change in Control which has been approved by a majority of the Company's Board of Directors (other than the Director) who were directors immediately prior to such Change in Control), the determination shall be made by the Independent Counsel, in a written opinion of such counsel to the Board of Directors and the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to <u>Section</u> <u>7(b)</u> hereof, the Independent Counsel shall be selected as provided in this <u>Section</u> <u>7(c)</u>. The Independent Counsel shall be selected by the Board of Directors. The Indemnitee may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company, as the case may be, a written objection to such selection; <u>provided</u>, <u>however</u>, that such objection may be asserted only on the ground that the counsel so selected does not satisfy the definition of "<u>Independent Counsel</u>" set forth at <u>Section</u> <u>1</u> of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. In the event that a proper and timely written objection is made and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a tribunal of competent jurisdiction has determined that such objection is without merit. If, within thirty (30) days after submission by the Indemnitee of a written request for indemnification pursuant to <u>Section</u> <u>7(a)</u> hereof, no Independent Counsel shall have been selected and not objected to, either the Company or the Indemnitee may petition any tribunal of competent jurisdiction for resolution of any objection which shall have been made by the Indemnitee to the Company's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by a tribunal of competent jurisdiction or by such other person as the tribunal of competent jurisdiction shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under <u>Section</u> <u>7(b)</u> hereof. The Company shall pay any and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to <u>Section</u> <u>7(b)</u> hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of this <u>Section</u> <u>7(c)</u>, regardless of the manner in which such Independent Counsel was selected or appointed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that the Indemnitee is entitled to indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because the Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that the Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) In making a determination with respect to whether Indemnitee acted in good faith and in a manner that Indemnitee not unreasonably believed to be in or not opposed to the best interests of the Company, the person or persons or entity making such determination shall presume that Indemnitee acted in good faith and in a manner that Indemnitee not unreasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence. Any action, or failure to act, by Indemnitee based on Indemnitee's good faith reliance on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise shall not, in and of itself, constitute grounds for an adverse determination with respect to whether Indemnitee acted in good faith and in a manner that Indemnitee not unreasonably believed to be in or not opposed to the best interests of the Company. In addition, the knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the person, persons or entity empowered or selected under <u>Section</u> <u>7</u> to determine whether the Indemnitee is entitled to indemnification shall not have made a determination within ninety (90) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and the Indemnitee shall be entitled to such indemnification absent (i) a misstatement by the Indemnitee of a material fact, or an omission of a material fact necessary to make the Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; <u>provided</u>, <u>however</u>, that such ninety-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making such determination with respect to entitlement to indemnification in good faith requires such additional time to obtain or evaluate documentation and/or information relating thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Indemnitee shall cooperate with the person, persons or entity making such determination with respect to the Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to the Indemnitee and reasonably necessary to such determination. Any Independent Counsel, member of the Board of Directors or shareholder of the Company shall act reasonably and in good faith in making a determination regarding the Indemnitee's entitlement to indemnification under this Agreement. Any costs or expenses (including attorneys' fees and disbursements) reasonably incurred by the Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to the Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold the Indemnitee harmless therefrom.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In the event the Company shall be obligated under this Agreement to pay the expenses of any proceeding against the Indemnitee, the Company, if appropriate, shall be entitled to assume the defense of such proceeding, with counsel approved by the Indemnitee (such approval not to be unreasonably withheld), upon the delivery to the Indemnitee of written notice of its election to do so. After delivery of such notice, approval of such counsel by the Indemnitee and the retention of such counsel by the Company, the Company will not be liable to the Indemnitee under this Agreement for any fees of counsel subsequently incurred by the Indemnitee with respect to the same proceeding, provided that (i) the Indemnitee shall have the right to employ his/its counsel in any such proceeding at the Indemnitee's expense; and (ii) if (A) the employment of counsel by the Indemnitee has been previously authorized by the Company, (B) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of any such defense, or (C) the Company shall not, in fact, have employed counsel to assume the defense of such proceeding, then the fees and expenses of the Indemnitee's counsel shall be at the expense of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which the Indemnitee is a party is resolved in any manner other than by adverse judgment against the Indemnitee (including, without limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that the Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of the Indemnitee to indemnification under this Agreement or create a presumption that the Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that the Indemnitee had reasonable cause to believe that his/its conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Remedies of the Indemnitee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that (i) a determination is made pursuant to <u>Section</u> <u>7</u> of this Agreement that the Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to <u>Section</u> <u>6</u> of this Agreement, (iii) no determination of entitlement to indemnification is made pursuant to <u>Section</u> <u>7(b)</u> of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this Agreement within thirty (30) days after receipt by the Company of a written request therefor or (v) payment of indemnification is not made within thirty (30) days after a determination has been made that the Indemnitee is entitled to indemnification or such determination is deemed to have been made pursuant to <u>Section</u> <u>7</u> of this Agreement, the Indemnitee shall be entitled to an adjudication in a tribunal of competent jurisdiction, of the Indemnitee's entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this <u>Section</u> <u>8(a)</u>. The Company shall not oppose the Indemnitee's right to seek any such adjudication.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a determination shall have been made pursuant to <u>Section</u> <u>7(b)</u> of this Agreement that the Indemnitee is not entitled to indemnification, any judicial proceeding commenced pursuant to this <u>Section</u> <u>8</u> shall be conducted in all respects as a de novo trial on the merits, and the Indemnitee shall not be prejudiced by reason of the adverse determination under <u>Section</u> <u>7(b)</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination shall have been made pursuant to <u>Section</u> <u>7(b)</u> of this Agreement that the Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding commenced pursuant to this <u>Section</u> <u>8</u>, absent (i) a misstatement by the Indemnitee of a material fact, or an omission of a material fact necessary to make the Indemnitee's misstatement not materially misleading in connection with the application for indemnification, or (ii) a prohibition of such indemnification under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that the Indemnitee, pursuant to this <u>Section</u> <u>8</u>, seeks a judicial adjudication of his/its rights under, or to recover damages for breach of, this Agreement, or to recover under any directors' and officers' liability insurance policies maintained by the Company, the Company shall pay on his/its behalf, in advance, any and all expenses (of the types described in the definition of Expenses in <u>Section</u> <u>1</u> of this Agreement) actually and reasonably incurred by him/it in such judicial adjudication, regardless of whether the Indemnitee is ultimately determined to be entitled to such indemnification, advancement of expenses or insurance recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall be precluded from asserting in any proceeding commenced pursuant to this <u>Section</u> <u>8</u> that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such tribunal of competent jurisdiction that the Company is bound by all the provisions of this Agreement. The Company shall indemnify the Indemnitee against any and all Expenses and, if requested by the Indemnitee, shall (within fifteen (15) days after receipt by the Company of a written request therefore) advance, to the extent not prohibited by law, such expenses to the Indemnitee, which are incurred by the Indemnitee in connection with any action brought by the Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company, regardless of whether the Indemnitee is ultimately determined to be entitled to such indemnification, advancement of expenses or insurance recovery, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Non-Exclusivity; Survival of Rights; Insurance; Subrogation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which an Indemnitee may at any time be entitled under applicable law, the Articles, any agreement, a vote of shareholders, a resolution of directors or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of the Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee prior to such amendment, alteration or repeal. To the extent that a change in any applicable law, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Articles and this Agreement, it is the intent of the parties hereto that the Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. Notwithstanding anything in this Agreement to the contrary, the indemnification and contribution provided for in this Agreement will remain in full force and effect regardless of any investigation made by or on behalf of the Indemnitee or any of the Indemnitee's agents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise that such person serves at the request of the Company, the Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any director, officer, employee, agent or fiduciary under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers reasonably required and take all action reasonably necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights; provided, however, that the Company hereby unconditionally and irrevocably waives, relinquishes and releases, and covenants and agrees not to exercise (and to cause each subsidiary or other controlled affiliate of the Company not to exercise), any rights that such entity may now have or hereafter acquire against the Indemnitee that arise from or relate to the existence, payment, performance or enforcement of the Company's obligations under this Agreement or under any other indemnification agreement (whether pursuant to contract, by-laws or charter) with any person or entity, including, without limitation, any right of subrogation (whether pursuant to contract or common law), reimbursement, exoneration, contribution or indemnification, or to be held harmless, and any right to participate in any claim or remedy of Indemnitee against the Indemnitee, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Indemnitee, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the extent that the Indemnitee has otherwise actually received such payment under any insurance policy, Company contract, Company agreement or otherwise (except to the extent that Indemnitee is required (by court order or otherwise) to return such payment or to surrender it to the Company), provided, however, that (i) the Company hereby agrees that it is the indemnitor of first resort under this Agreement, (ii) the Company shall be required to advance the full amount of expenses incurred by any such Indemnitee and shall be liable for the full amount of all liability and loss suffered by such Indemnitee (including, but not limited to, Expenses (including, but not limited to, attorneys' fees and expenses), judgments, fines and amounts paid in settlement actually and reasonably incurred by such Indemnitee in connection with such Proceeding), without regard to any rights any such Indemnitee may have against any insurance carrier providing insurance coverage to Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company's obligation to indemnify or advance Expenses hereunder to the Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount the Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise (except to the extent that the Indemnitee is required (by court order or otherwise) to return such payment or to surrender it to the Company, or such indemnification payments and advance payment of Expenses when taken together with any such amount actually received from the Company or under director and officer insurance policies are inadequate to fully pay all costs, Expenses or other items to the full extent that Indemnitee is otherwise entitled to indemnification or other payment hereunder).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Exception to Right of Indemnification</u>. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against an Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in connection with any Proceeding (or any part of any Proceeding) initiated by the Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by the Indemnitee against the Company or its directors, officers, employees or other indemnitees, if a tribunal of competent jurisdiction finally determines that each of the material assertions made by the Indemnitee in such Proceeding (or any part of any Proceeding) was not made in good faith or was frivolous; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for which payment has actually been made to or on behalf of the Indemnitee under any Company insurance policy or other Company indemnity provision, except with respect to any excess beyond the amount paid under any Company insurance policy or other Company indemnity provision; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) for an accounting of profits made from the purchase and sale (or sale and purchase) by the Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended, or similar provisions of state statutory law or common law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in connection with any Proceeding (or any part of any Proceeding) initiated by the Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by the Indemnitee against the Company or its directors, officers, employees or other indemnitees (other than any Proceeding initiated by the Indemnitee pursuant to <u>Section</u> <u>8(d)</u>, which shall be governed by the terms of such section), unless (i) the Board of Directors of the Company authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) for any reasonable Expenses, judgments, fines, interests or penalties, or excise taxes assessed with respect to any Proceeding initiated by or against the Indemnitee, if it is determined that the Indemnitee is not entitled to the indemnification pursuant to <u>Section</u> <u>7</u>, and such determination is not overruled or vacated by a court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Duration of Agreement</u>. All agreements and obligations of the Company contained herein shall become effective upon the effectiveness of the appointment of the Director and continue until six (6) years after the end of any period the Director is an officer or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) but shall continue thereafter so long as the Indemnitee shall be subject to any Proceeding (or any proceeding commenced under <u>Section</u> <u>8</u> hereof) by reason of the Director's Corporate Status as permitted by the applicable law, whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement, notwithstanding such six (6) year period. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Security</u>. To the extent requested by an Indemnitee and approved by the Board of Directors of the Company, the Company may at any time and from time to time provide security to the Indemnitee for the Company's obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without the prior written consent of the Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumes the obligations imposed on it hereby in order to induce the Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that the Indemnitee is relying upon this Agreement in serving as an officer or director of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company represents that this Agreement has been approved by the Company's Board of Directors and shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not seek from a court, or agree to, a "bar order" which would have the effect of prohibiting or limiting the Indemnitee's rights to receive advancement of expenses under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Severability</u>. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision. Without limiting the generality of the foregoing, this Agreement is intended to confer upon the Indemnitee indemnification rights to the fullest extent permitted by applicable laws. In the event any provision hereof conflicts with any applicable law, such provision shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to resolve such conflict.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Modification and Waiver</u>. No supplement, modification, termination or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Notice by the Indemnitee</u>. Each Indemnitee agrees promptly to notify the Company in writing upon being served with or otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification covered hereunder. The failure to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise unless and only to the extent that such failure or delay materially prejudices the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Notices</u>. All notices and other communications required or permitted hereunder shall be in writing and shall be sent by facsimile or mailed by electronic, registered or certified mail or by overnight courier or otherwise delivered by hand or by messenger, addressed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To an Indemnitee at the address set forth below the Indemnitee signature hereto, or to such other address as may have been furnished to by the Company to the Indemnitee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the Company at the address set forth below Company signature hereto, or to such other address as may have been furnished to the Indemnitee by the Company.

Where a notice is sent by overnight courier, service of the notice shall be deemed to be effected by properly addressing, and sending such notice through an internationally recognized express courier service, delivery fees pre-paid, and to have been effected five (5) business days following the day the same is sent as aforesaid.

Where a notice is delivered by facsimile, electronic mail, by hand or by messenger, service of the notice shall be deemed to be effected upon delivery or successful transmission record being generated by the sender's machine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts and may be delivered by electronic PDF or facsimile transmission, all of which shall be considered one and the same agreement and each of which shall be deemed an original.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Governing Law and Venue</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement, and all claims or causes of action (whether in contract, tort or statute) that may be based upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement), will be governed by and enforced in accordance with the internal laws of the State of Delaware, including its statutes of limitations, without regard to any borrowing statute that would result in the application of the statute of limitations of any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company and Indemnitee each hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all purposes in connection with any claim or cause of action contemplated by Section 20(a) above and agree that any such claim or cause of action will be commenced, prosecuted and continued only in the Court of Chancery of the State of Delaware (the "**Delaware Court**"), which will be the exclusive and only proper forum for adjudicating such a claim or cause of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Construction</u>. The parties acknowledge that all parties have contributed to the drafting of this Agreement and, therefore, waive the application of any law, regulation, holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the party drafting such agreement or document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Successors and Assigns.</u> Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, permitted assigns, heirs, executors and administrators of the parties hereto whose rights or obligations hereunder are affected by such amendments. The Company may not assign its rights or delegate its obligations under this Agreement without the written consent of the Indemnitee.

[*REMAINDER OF PAGE INTENTIONALLY LEFT BLANK*]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

**[DIRECTOR/OFFICER]:** 

As Individual:

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| |
|:---|
|  By: |
|  Name: |

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*Signature Page to Indemnification Agreement* 

*(Leoch Energy Inc)* 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

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| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **Leoch Energy Inc** | **Leoch Energy Inc** |
|  By: |  |
|  Name: | Dr. Li DONG |
|  Title: | Chief Executive Officer |

---

*Signature Page to Indemnification Agreement* 

*(Leoch Energy Inc)*

## Exhibit 4.4

**Exhibit 4.4** 

**EMPLOYMENT AGREEMENT** 

This Employment Agreement (the "**Agreement**"), dated as of , 202_, is entered between Leoch Energy Inc, an exempted company incorporated in the Cayman Islands (the "**Company**" and, together with its subsidiaries, the "**Group**") and (the "**Executive**").

WHEREAS, the Company and the Executive wish to enter into an employment agreement whereby the Executive will be employed by the Company in accordance with the terms and conditions stated below;

NOW, THEREFORE, the parties hereby agree as follows:

ARTICLE 1

EMPLOYMENT, DUTIES AND RESPONSIBILITIES

Section 1.01 *. Employment.* The Executive shall serve as the of the Company. The Executive hereby accepts such employment and agrees to devote substantially all of the Executive's time and efforts to promoting the interests of the Group.

Section 1.02 *. Duties and Responsibilities.* Subject to the supervision of and direction by the Board of Directors of the Company, the Executive shall perform such duties as are similar in nature to those duties and services customarily associated with the positions set forth above.

Section 1.03 *. Base of Operation.* The Executive's principal base of operation for the performance of his or her duties and responsibilities under this Agreement shall be the offices of the Company as specified in the Operative Employment Agreement (as defined below), and at such other places as shall from time to time be reasonably necessary to fulfill the Executive's obligations hereunder.

ARTICLE 2

TERM

Section 2.01 *. Term.* 

(a) Subject to other terms and conditions of this Agreement, the employment pursuant to this Agreement (the "**Employment**") shall commence on , 202 and shall have a period of time as specified in the Operative Employment Agreement, unless it is terminated pursuant to this Agreement, the Operative Employment Agreement or as mutually agreed by the parties hereto.

(b) The Executive represents and warrants to the Company that neither the execution and delivery of this Agreement nor the performance of the Executive's duties hereunder violates or will violate the provisions of any other agreement to which the Executive is a party or by which the Executive is bound.

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(c) It is understood and agreed that to the extent an employment agreement or similar agreement has been entered into by and between a member of the Group on one hand and the Executive on the other hand (the "**Operative Employment Agreement**"), and the Operative Employment Agreement is terminated for any reasons pursuant to the terms therein, the Employment shall also be terminated unless mutually agreed by both parties.

ARTICLE 3

COMPENSATION AND EXPENSES

Section 3.01 *. Salary, Remuneration and Benefits.* The Executive's salary, remuneration and benefits shall be determined by the Company and shall be specified in the Operative Employment Agreement or any other agreement between the Company or another member of the Group on one hand and the Executive on the other hand. The Executive's salary, remuneration and benefits shall be reviewed by the Board of Directors (or its designated compensation committee) and/or the management of the Company in accordance with the relevant policies adopted by the Company from time to time.

Section 3.02. *Expenses.* The Company will reimburse the Executive for reasonable documented business-related expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder during the term of the Employment, subject, however, to the Company's policies and guidelines relating to business-related expenses as in effect from time to time during the duration of the employment, *provided* that, the Executive shall provide the Company with all appropriate receipts and vouchers.

Section 3.03 *. Employee Benefit Plans.* The Executive shall be entitled to participate during the term of the Employment in employee benefit plans, programs and arrangements of the Company as may be in effect from time to time, including, without limitation, any share incentive plan, comprehensive health insurance and retirement scheme, subject to the terms and provisions of such plan and the execution of the award agreement and other related agreements between the Company and the Executive, as well as the terms and conditions as set forth in the Operative Employment Agreement.

Section 3.04. *Payer of Compensation.* Subject to the terms and conditions as set forth in the Operative Employment Agreement, all compensation, salary, benefits and remuneration pursuant to this Agreement may be paid by the Company or any of its subsidiaries, as decided by the Company in its sole discretion.

ARTICLE 4

EXCLUSIVITY, NON-COMPETE, NON-SOLICITATION, CONFIDENTIALITY, AND INTELLECTUAL PROPERTY

Section 4.01 *. Exclusivity.* The Executive agrees to perform his or her duties, responsibilities and obligations hereunder efficiently and to the best of his or her ability. The Executive agrees that the Executive will devote substantially all of the Executive's working time, care and attention and best efforts to such duties, responsibilities and obligations throughout the term of the Employment. The Executive agrees that all of his or her activities as an employee of the Company shall be in conformity with all present and future policies, rules and regulations and directions of the Company not inconsistent with this Agreement and the Operative Employment Agreement.

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Section 4.02 *. Non-compete, Non-solicitation and Confidentiality.* Both parties hereto acknowledge that the Executive shall continue to comply with the provisions relating to non-compete, non-solicitation and confidentiality in the Operative Employment Agreement or another agreement entered into between the Company or any other member of the Group on one hand and the Executive on the other hand.

Section 4.03. *Transfer of Intellectual Property*. The Executive hereby agrees to transfer to the Company or another member of the Group as designated by the Company all intellectual property rights in the works created during the Employment within the scope of the Executive's employment as set forth in this Agreement and the Operative Employment Agreement or other intellectual property rights deemed to be occupational works in accordance with applicable laws and regulations (the "**Occupational Works**"). The "intellectual property rights" as referred to in this section means all current and future intellectual property rights, including but not limited to patent rights, trademarks or copyrights in any country, whether registered or not. The Executive agrees that, throughout the course of the Employment and at all times thereafter, he or she shall execute necessary documents and take necessary action to implement the foregoing transfer of the Occupational Works to the Group, provided that such assistance shall be limited to a reasonable period following the termination of employment and the Company shall reimburse the Executive for all reasonable costs and expenses incurred in connection with such supports. The Executive acknowledged that the Company shall, where permitted by applicable laws and regulations, hold all rights and interests in the Occupational Works, including any patent or copyrights. The Executive further agrees that, throughout the course of the Employment and at all times thereafter, the Executive and his or her heirs, assignees and representatives will, upon the Company's requests, assign exclusively to the Company or another member of the Group as designated by the Company any right, title and interest in the Occupational Work and assist in the preparation and execution of all applications and instruments and carry out other tasks or procedures necessary in accordance with applicable laws and regulations for the Company or another member of the Group as designated by the Company to obtain and maintain the patent and other intellectual property right in any applicable jurisdictions and/or protecting the rights and interests of the Company or another member of the Group as designated by the Company in the Occupational Works. Notwithstanding the foregoing, the Executive shall retain all right, title and interest in any intellectual property that was developed by the Executive prior to the commencement of employment as set forth in the Operative Employment Agreement, or independently of the Executive's employment without use of the Company's confidential information or resources.

ARTICLE 5

TERMINATION OF THE EMPLOYMENT

Section 5.01 *. Termination by Company.* The Company shall have the right to terminate the Employment at any time with "Cause" without advance notice pursuant to the terms and conditions hereof. For purposes of this Agreement, "**Cause**" shall have the meanings ascribed to it in the Operative Employment Agreement. For purposes of this Section 5.01, no act or failure to act, on the part of the Executive shall be deemed "**willful**" unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the act or omission of the Executive was in the best interest of the Company. The Company may also terminate the Executive's employment at any time with or without Cause by giving an advance notice in writing in accordance with the terms and conditions under Operative Employment Agreement.

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Section 5.02 *. Termination by the Executive.* The Executive shall have the right to terminate the Employment at any time by giving an advance notice in writing pursuant to the terms and conditions under the Operative Employment Agreement. If the Executive terminates the employment under this Section 5.02, the Company is not obliged to pay to the Executive any financial compensation for such termination.

Section 5.03 *. Death.* In the event the Executive passes away during the term of the Employment, this Agreement shall automatically terminate, effective on the date of the Executive's death.

Section 5.04. *Effect of Termination*.

(a) Parties shall refer to the Operative Employment Agreement for effect of termination of the Executive's employment.

ARTICLE 6

MISCELLANEOUS

Section 6.01 *. Benefit Assignment; Assignment; Beneficiary.* This Agreement shall inure to the benefit of and be binding upon the Company and its assigns. This Agreement shall also inure to the benefit of, and be enforceable by, the Executive and the Executive's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. If the Executive should die while any amount would still be payable to the Executive hereunder if the Executive had continued to live, all such amounts shall be paid in accordance with the terms of this Agreement to the Executive's beneficiary, devisee, legatee or other designee, or if there is no such designee, to the Executive's estate.

Section 6.02. *Notices.* Any notice required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered or if sent by registered or certified mail, national overnight courier, or email. In the case of the Company, to the office or email account of the Head of Human Resources; and in the case of the Executive, to the address or email account appearing on the employment records of the Company, from time to time. Any notice given hereunder shall be deemed to have been given at the time of receipt thereof by the person to whom such notice is given.

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Section 6.03 *. Entire Agreement; Amendment.* This Agreement contains the entire agreement of the parties hereto with respect to the terms and conditions of the Executive's employment with the Company and, subject to Section 4.02(d) of this Agreement, supersedes any and all prior agreements and understandings, whether written or oral, between the parties hereto with respect to the employment of the Executive with the Company. For the avoidance of doubt, in case of any conflict between this Agreement and the Operative Employment Agreement as to the Executive's compensation, the term of the Employment, the Executive's non-compete, confidentiality and non-solicitation obligations, the intellectual properties arrangement, and termination, the Operative Employment Agreement shall prevail. This Agreement may not be changed or modified except by an amendment in writing signed by both of the parties hereto.

Section 6.04 *. Waiver.* The waiver by either party of a breach of any provision of this Agreement shall not operate or be construed as a continuing waiver or as a consent to or waiver of any subsequent breach hereof.

Section 6.05 *. Headings.* The article and section headings herein are for convenience of reference only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

Section 6.06 *. Governing Law. [*This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of Hong Kong Special Administration Region of the People's Republic of China ("**Hong Kong**")/ This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of Singapore].

Section 6.07 *. Agreement To Take Actions.* Each party hereto shall execute and deliver such documents, certificates, agreements and other instruments, and shall take such other actions, as may be reasonably necessary or desirable in order to perform his or its obligations under this Agreement or to effectuate the purposes hereof.

Section 6.08 *. Arbitration.* [Any dispute between the parties hereto respecting the meaning and intent of this Agreement or any of its terms and provisions shall be submitted to the Hong Kong International Arbitration Centre ("**HKIAC**") for arbitration in accordance with HKIAC's arbitration rules in effect at the time. The arbitral award is final and binding upon the parties thereto. The arbitration tribunal will consist of three arbitrators (one appointed by claimant, the second appointed by respondent and the third appointed by the first two arbitrators or the Chairman of HKIAC). The arbitration seat shall be in Hong Kong. The language of arbitration shall be English and Chinese/ Any dispute arising out of or in connection with this Agreement shall be referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre ("**SIAC"**) in accordance with the SIAC Rules for the time being in force. The seat of arbitration shall be Singapore. The language of arbitration shall be English.]

Section 6.09 *. Survivorship.* The respective rights and obligations of the parties hereunder shall survive any termination of this Agreement to the extent necessary to the intended preservation of such rights and obligations.

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Section 6.10 *. Severability.* The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision or provisions of this Agreement, which shall remain in full force and effect.

Section 6.11 *. Counterparts.* This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument.

Section 6.13 *. Withholding.* All payments to the Executive hereunder shall be subject to withholding to the extent required by applicable law.

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IN WITNESS WHEREOF, each of the parties hereto has duly executed this Agreement as of the date first above written.

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| | | |
|:---|:---|:---|
| Leoch Energy Inc | Leoch Energy Inc | Leoch Energy Inc |
| By: |  |  |
|  | Name: | Dr. DONG LI |
|  | Title: | Chairman of the Board |

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---

| |
|:---|
|  EXECUTIVE |
|  Name: |
|  Title: |

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## Exhibit 8.1

**Exhibit 8.1** 

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| | |
|:---|:---|
| **Number** | **Name of the Subsidiary** |
| 1 | Leoch International Holding Pte. Limited |
| 2 | Leoch Battery Pte. Ltd. |
| 3 | Leoch Super Power (Vietnam) Company Limited |
| 4 | Leoch Battery Corporation |
| 5 | Energymax Power (M) Sdn Bhd |
| 6 | Leoch Battery (Vietnam) Company Limited |
| 7 | Leoch Batteries India Private Limited |
| 8 | Leoch Super Power India Private Limited |
| 9 | Leoch France |
| 10 | LEOCH BATTERY AUSTRALIA PTY LTD |
| 11 | LEOCH Nordeuropa GmbH |
| 12 | Leoch Lanka (Private) Limited |
| 13 | Leoch Battery UK Ltd |
| 14 | Tele Power Sdn Bhd |
| 15 | Leoch Italia s.r.l. |
| 16 | Leoch International Vietnam Limited Liabilities Company |
| 17 | LEOCH IBERIA S.L. |
| 18 | Leoch Battery (Thailand) Co., Ltd. |
| 19 | Topsource Express Line Pte. Ltd. |
| 20 | Topsource Energy (M) Sdn Bhd |
| 21 | Leoch Runto Mexico Limited |
| 22 | Leoch Metals Pte. Ltd. |
| 23 | PT LEOCH BATTERY INDONESIA |
| 24 | LEOCH INVEST PTE. LTD. |
| 25 | LEOCH EUROPE SINGLE MEMBER S.A. |
| 26 | Leoch Green Energy Limited |
| 27 | Kachi Energy Limited |
| 28 | Shenzhen Leoch Energy Technology Ltd. |
| 29 | Shenzhen Leoch Energy Technology Ltd.(Zhaoqing Branch) |
| 30 | Shenzhen Leoch Energy Technology Ltd.(Anhui Branch) |
| 31 | Shenzhen Leoch Energy Technology Ltd.(Jinhu Branch) |
| 32 | Leoch International Corporation |
| 33 | Leoch Battery (M) Sdn Bhd |
| 34 | LEOCH DBS Limited |
| 35 | DEL SOL GLOBAL LIMITED |
| 36 | Leoch Energy Corporation |
| 37 | LEOCH SOLUTIONS LTDA |
| 38 | FIRST SOURCE TECHNOLOGY PTE. LTD. |
| 39 | DONWAY ACCESSORIES(M) SDN. BHD |
| 40 | LUCIKAR INTERNATIONAL (HK)LIMITED |
| 41 | Leoch Energy (Vietnam) Co., Ltd. |

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## Exhibit 11.1

**Exhibit 11.1** 

**Leoch Energy Inc** 

**(the "Company")** 

**Code of Business Conduct and Ethics** 

Adopted December 17, 2025

Introduction

This Code of Business Conduct and Ethics (the "**Code**") has been adopted by our Board of Directors (the "**Board**") and summarizes the standards that must guide our actions. Although they cover a wide range of business practices and procedures, these standards cannot and do not cover every issue that may arise, or every situation in which ethical decisions must be made, but rather set forth key guiding principles that represent Company policies and establish conditions for employment at the Company.

We must strive to foster a culture of honesty and accountability. Our commitment to the highest level of ethical conduct should be reflected in all of the Company's business activities, including, but not limited to, relationships with employees, customers, suppliers, competitors, the government, the public and our shareholders. All of our employees, officers and directors must conduct themselves according to the language and spirit of this Code and seek to avoid even the appearance of improper behavior. Even well-intentioned actions that violate the law or this Code may result in negative consequences for the Company and for the individuals involved.

One of our Company's most valuable assets is our reputation for integrity, professionalism and fairness. We should all recognize that our actions are the foundation of our reputation and adhering to this Code and applicable laws is imperative.

Conflicts of Interest

Our employees, officers and directors have an obligation to conduct themselves in an honest and ethical manner and to act in the best interest of the Company. All employees, officers and directors should endeavor to avoid situations that present a potential or actual conflict between their interest and the interest of the Company.

A "conflict of interest" occurs when a person's private interest interferes in any way, or even appears to interfere, with the interests of the Company as a whole, including those of its subsidiaries and affiliates. A conflict of interest may arise when an employee, officer or director takes an action or has an interest that may make it difficult for him or her to perform his or her work objectively and effectively. A conflict of interest may also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of the employee's, officer's or director's position in the Company.

Although it would not be possible to describe every situation in which a conflict of interest may arise, the following are examples of situations that may constitute a conflict of interest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Working, in any capacity, for a competitor, customer or supplier while employed by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accepting gifts of more than modest value or receiving personal discounts (if such discounts are not generally
offered to the public) or other benefits as a result of your position in the Company from a competitor, customer or supplier.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Competing with the Company for the purchase or sale of property, products, services or other interests.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Having an interest in a transaction involving the Company, a competitor, customer or supplier (other than as an
employee, officer or director of the Company and not including routine investments in publicly traded companies).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Receiving a loan or guarantee of an obligation as a result of your position with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directing business to a supplier owned or managed by, or which employs, a relative or friend.

Situations involving a conflict of interest may not always be obvious or easy to resolve. You should report actions that may involve a conflict of interest to the Audit Committee of the Board.

In order to avoid conflicts of interests, senior executive officers and directors must disclose to the Audit Committee of the Board any material transaction or relationship that reasonably could be expected to give rise to such a conflict. Conflicts of interests involving the Audit Committee of the Board shall be disclosed to the Board.

In the event that an actual or apparent conflict of interest arises between the personal and professional relationship or activities of an employee, officer or director, the employee, officer or director involved is required to handle such conflict of interest in an ethical manner in accordance with the provisions of this Code.

Quality of Public Disclosures

The Company has a responsibility to provide full and accurate information in our public disclosures, in all material respects, about the Company's financial condition and results of operations. Our reports and documents filed with or submitted to the United States Securities and Exchange Commission and our other public communications shall include full, fair, accurate, timely and understandable disclosure.

Compliance with Laws, Rules and Regulations

We are strongly committed to conducting our business affairs with honesty and integrity and in full compliance with all applicable laws, rules and regulations. No employee, officer or director of the Company shall commit an illegal or unethical act, or instruct others to do so, for any reason.

Compliance with this Code and Reporting of Any Illegal or Unethical Behavior

All employees, directors and officers are expected to comply with all of the provisions of this Code. The Code will be strictly enforced and violations will be dealt with immediately, including by subjecting persons who violate its provisions to corrective and/or disciplinary action such as dismissal or removal from office. Violations of the Code that involve illegal behavior will be reported to the appropriate authorities.

Situations which may involve a violation of ethics, laws, rules, regulations or this Code may not always be clear and may require the exercise of judgment or the making of difficult decisions. Employees, officers and directors should promptly report any concerns about a violation of ethics, laws, rules, regulations or this Code to their supervisors or the legal department or a department with similar duties and responsibilities of the Company (the "**Legal Department**") or, in the case of accounting, internal accounting controls or auditing matters, the Audit Committee of the Board. Interested parties may also communicate directly with the Company's non-management directors through contact information located in the Company's annual report on Form 20-F.

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Any concerns about a violation of ethics, laws, rules, regulations or this Code by any senior executive officer or director should be reported promptly to the Audit Committee of the Board. Any such concerns involving the Audit Committee should be reported to the Board. Reporting of such violations may also be done anonymously through email to the Company at a designated email address for compliance reporting. An anonymous report should provide enough information about the incident or situation to allow the Company to investigate properly. If concerns or complaints require confidentiality, including keeping an identity anonymous, the Company will endeavor to protect this confidentiality, subject to applicable laws, regulations or legal proceedings.

The Company encourages all employees, officers and directors to report any suspected violations promptly and intends to thoroughly investigate any good faith reports of violations. The Company will not tolerate any kind of retaliation for reports or complaints regarding misconduct that were made in good faith. Open communication of issues and concerns by all employees, officers and directors without fear of retribution or retaliation is vital to the successful implementation of this Code. All employees, officers and directors are required to cooperate in any internal investigations of misconduct and unethical behavior.

The Company recognizes the need for this Code to be applied equally to everyone it covers. The Legal Department of the Company will have primary authority and responsibility for the enforcement of this Code, subject to the supervision of the Audit Committee of the Board, and the Company will devote the necessary resources to enable the Legal Department to establish such procedures as may be reasonably necessary to create a culture of accountability and facilitate compliance with this Code. Questions concerning this Code should be directed to the Legal Department.

The provisions of this section are qualified in their entirety by reference to the following section.

Reporting Violations to a Governmental Agency

Employees have the right under applicable laws to certain protections for cooperating with or reporting legal violations to governmental agencies or entities and self-regulatory organizations. As such, nothing in this Code is intended to prohibit any employee from disclosing or reporting violations to, or from cooperating with, a governmental agency or entity or self-regulatory organization, and employees may do so without notifying the Company. The Company may not retaliate against all employees for any of these activities, and nothing in this Code or otherwise requires any employee to waive any monetary award or other payment that he or she might become entitled to from a governmental agency or entity, or self-regulatory organization.

All employees of the Company have the right to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report possible violations of applicable laws or regulations that have occurred, are occurring, or are about to
occur to any governmental agency or entity, or self-regulatory organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cooperate voluntarily with, or respond to any inquiry from, or provide testimony before any self-regulatory
organization or any other national or local regulatory or law enforcement authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Make reports or disclosures to law enforcement or a regulatory authority without prior notice to, or
authorization from, the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Respond truthfully to a valid subpoena.

All employees have the right to not be retaliated against for reporting, either internally to the Company or to any governmental agency or entity or self-regulatory organization, information which the employee reasonably believes relates to a possible violation of law. It is a violation of law to retaliate against anyone who has reported such potential misconduct either internally or to any governmental agency or entity or self-regulatory organization. Retaliatory conduct includes discharge, demotion, suspension, threats, harassment, and any other manner of discrimination in the terms and conditions of employment because of any lawful act the employee may have performed. It is unlawful for the company to retaliate against an employee for reporting possible misconduct either internally or to any governmental agency or entity or self-regulatory organization when requested by such agency or organization.

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Notwithstanding anything contained in this Code or otherwise, employees may disclose confidential Company information, including the existence and terms of any confidential agreements between the employee and the Company (including employment or severance agreements), to any governmental agency or entity or self-regulatory organization when requested by such agency or organization.

The Company cannot require an employee to withdraw reports or filings alleging possible violations of national or local law or regulation, and the Company may not offer employees any kind of inducement, including payment, to do so.

An employee's rights and remedies as a whistleblower protected under applicable whistleblower laws, including a monetary award, if any, may not be waived by any agreement, policy form, or condition of employment, including by a predispute arbitration agreement.

Even if an employee has participated in a possible violation of law, the employee may be eligible to participate in the confidentiality and retaliation protections afforded under applicable whistleblower laws, and the employee may also be eligible to receive an award under such laws.

Waivers and Amendments

Any waiver (including any implicit waiver) of the provisions in this Code for executive officers or directors may only be granted by the Board or a committee thereof and will be promptly disclosed to the Company's shareholders. Any such waiver will also be disclosed in the Company's annual report on Form 20-F. Amendments to this Code must be approved by the Board and will also be disclosed in the Company's annual report on Form 20-F.

Trading on Inside Information

Using non-public Company information to trade in securities, or providing a family member, friend or any other person with non-public Company information, is illegal. All non-public, Company information should be considered inside information and should never be used for personal gain. You are required to familiarize yourself and comply with the Company's Statement of Policy Concerning Trading in Company Securities, copies of which are distributed to all employees, officers and directors and are available from the Legal Department. You should contact the Legal Department with any questions about your ability to buy or sell securities.

Protection of Confidential Proprietary Information

Confidential proprietary information generated by and gathered in our business is a valuable Company asset. Protecting this information plays a vital role in our continued growth and ability to compete, and all proprietary information should be maintained in strict confidence, except when disclosure is authorized by the Company or required by law.

Proprietary information includes all non-public information that might be useful to competitors or that could be harmful to the Company, its customers or its suppliers if disclosed. Intellectual property such as trade secrets, patents, trademarks and copyrights, as well as business, research and new product plans, objectives and strategies, records, databases, salary and benefits data, employee medical information, customer, employee and suppliers lists and any unpublished financial or pricing information must also be protected.

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Unauthorized use or distribution of proprietary information violates Company policy and could be illegal. Such use or distribution could result in negative consequences for both the Company and the individuals involved, including potential legal and disciplinary actions. We respect the property rights of other companies and their proprietary information and require our employees, officers and directors to observe such rights.

Your obligation to protect the Company's proprietary and confidential information continues even after you leave the Company, and you must return all proprietary information in your possession upon leaving the Company.

The provisions of this section are qualified in their entirety by the section entitled "Reporting Violations to Governmental Agencies" above.

Protection and Proper Use of Company Assets

Protecting Company assets against loss, theft or other misuse is the responsibility of every employee, officer and director. Loss, theft and misuse of Company assets directly impact our profitability. Any suspected loss, misuse or theft should be reported to a supervisor or the Legal Department.

The sole purpose of the Company's equipment, vehicles, supplies and electronic resources (including hardware, software and the data thereon) is the conduct of our business. They may only be used for Company business consistent with Company guidelines.

Corporate Opportunities

Employees, officers and directors are prohibited from taking for themselves business opportunities that are discovered through the use of corporate property, information or position. No employee, officer or director may use corporate property, information or position for personal gain, and no employee, officer or director may compete with the Company. Competing with the Company may involve engaging in the same line of business as the Company or any situation in which the employee, officer or director takes away from the Company opportunities for sales or purchases of property, products, services or interests. Employees, officers and directors owe a duty to the Company to advance its legitimate interests when the opportunity to do so arises.

Fair Dealing

Each employee, officer and director of the Company should endeavor to deal fairly with customers, suppliers, competitors, the public and one another at all times and in accordance with ethical business practices.

Each employee has an obligation to comply with the anti-corruption and anti-bribery laws of the People's Republic of China and any other regions and countries in which the Company operates. No one should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practice. No bribes, kickbacks or other similar payments in any form shall be made directly or indirectly to or for anyone for the purpose of obtaining or retaining business or obtaining any other favorable action. In the event of a violation of these provisions, the Company and any employee, officer or director involved may be subject to disciplinary action as well as potential civil or criminal liability for violation of this policy.

Occasional business gifts to, or entertainment of, non-government employees in connection with business discussions or the development of business relationships are generally deemed appropriate in the conduct of Company business. However, these gifts should be given infrequently and their value should be modest. Gifts or entertainment in any form that would likely result in a feeling or expectation of personal obligation should not be extended or accepted.

------

Practices that are acceptable in a commercial business environment may be against the law or the policies governing national or local government employees. Therefore, no gifts or business entertainment of any kind may be given to any government employee without the prior approval of a supervisor or the Legal Department.

Except in certain limited circumstances, the United States Foreign Corrupt Practices Act (the "**FCPA**") prohibits giving anything of value directly or indirectly to any "non-U.S. official" for the purpose of obtaining or retaining business. When in doubt as to whether a contemplated payment or gift may violate the FCPA, contact a supervisor or the Audit Committee of the Board before taking any action.

Equal Opportunity, Non-Discrimination and Fair Employment

The Company's policies for recruitment, advancement and retention of employees forbid discrimination on the basis of any criteria prohibited by law, including but not limited to race, sex and age. Our policies are designed to ensure that employees are treated, and treat each other, fairly and with respect and dignity. In keeping with this objective, conduct involving discrimination or harassment of others will not be tolerated. All employees, officers and directors are required to comply with the Company's policy on equal opportunity, non-discrimination and fair employment, copies of which were distributed by and are available from the Legal Department.

Compliance with Antitrust Laws

The antitrust laws prohibit agreements among competitors on such matters as prices, terms of sale to customers and the allocation of markets or customers. Antitrust laws can be complex, and violations may subject the Company and its employees to criminal sanctions, including fines, jail time and civil liability. If you have any questions about our antitrust compliance policies, consult the Legal Department.

Trade Controls

Employees are required to comply with all applicable trade laws and economic sanctions laws and regulations. These laws generally apply to the import, export and transfer of certain products and technology by U.S. companies.

Political Contributions and Activities

Any political contributions made by or on behalf of the Company and any solicitations for political contributions of any kind must be lawful and in compliance with Company policies. This policy applies solely to the use of Company assets and is not intended to discourage or prevent individual employees, officers or directors from making political contributions or engaging in political activities on their own behalf. No one may be reimbursed directly or indirectly by the Company for personal political contributions.

Environment, Health and Safety

We are committed to conducting our business in compliance with all applicable environmental and workplace health and safety laws and regulations. We strive to provide a safe and healthy work environment for our employees and to avoid adverse impact and injury to the environment and the communities in which we conduct our business. Achieving this goal is the responsibility of all officers, directors and employees.

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Dealings with the Community

We are committed to being a responsible member of, and recognize the mutual benefits of engaging and building relationships with, the communities in which we operate. Wherever the Company operates, we strive to make a positive and meaningful contribution to the surrounding community and to ensure the distribution of a fair share of benefits to all stakeholders impacted by its activities, including the surrounding community. We strongly encourage our employees to play a positive role in the community.

Doing Business with Others

We strive to promote the application of the standards of this Code by those with whom we do business. Our policies, therefore, prohibit the engaging of a third party to perform any act prohibited by law or by this Code, and we shall avoid doing business with others who intentionally and continually violate the law or the standards of this Code.

Accuracy of Company Financial Records

We maintain the highest standards in all matters relating to accounting, financial controls, internal reporting and taxation. All financial books, records and accounts must accurately reflect transactions and events and conform both to required accounting principles and to the Company's system of internal controls. Records shall not be distorted in any way to hide, disguise or alter the Company's true financial position.

Retention of Records

All Company business records and communications shall be clear, truthful and accurate. Employees, officers and directors of the Company shall avoid exaggeration, guesswork, legal conclusions and derogatory remarks or characterizations of people and companies. This applies to communications of all kinds, including email and "informal" notes or memos. Records should always be handled according to the Company's record retention policies. If an employee, officer or director is unsure whether a document should be retained, consult a supervisor or the Legal Department before proceeding.

Anti-Money Laundering

We are committed to preserving our reputation in the financial community by assisting in efforts to combat money laundering and terrorist financing. Money laundering is the practice of disguising the ownership or source of illegally obtained funds through a series of transactions to "clean" the funds so they appear to be proceeds from legal activities.

We have adopted measures to reduce the extent to which the Company's facilities, products and services can be used for a purpose connected with market abuse or financial crimes. Additionally, where necessary, we screen customers, potential customers and suppliers to ensure that our products and services cannot be used to facilitate money laundering or terrorist activity. If you have any questions about our internal anti-money laundering process and procedure, consult the Legal Department.

------

Social Media

Unless you are authorized by the Company, you are discouraged from discussing the Company as part of your personal use of social media. While business should only be conducted through approved channels, we understand that social media is used as a source of information and as a form of communicating with friends, family and workplace contacts.

When you are using social media and identify yourself as a Company employee, officer or director or mention the Company incidentally, for instance on Weixin or professional networking site, please remember the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Never disclose confidential information about the Company or its business, customers or suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Make clear that any views expressed are your own and not those of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Remember that our policy on Equal Opportunity, Non-Discrimination and
Fair Employment applies to social media sites.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Be respectful of your colleagues and all persons associated with the Company, including customers and suppliers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Promptly report to the Company's corporate communications department any social media content which
inaccurately or inappropriately discusses the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Never respond to any information, including information that may be inaccurate about the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Never post documents, parts of documents, images or video or audio recordings that have been made with Company
property or of Company products, services or people or at Company functions or events.

Professional Networking

Online networking on professional or industry sites has become an important and effective way for colleagues to stay in touch and exchange information. Employees, officers and directors should use good judgment when posting information about themselves or the Company on any of these services.

What you post about the Company or yourself will reflect on all of us. When using professional networking sites, you should observe the same standards of professionalism and integrity described in our code and follow the social media guidelines outlined above.

Drug-Free, Violence-Free Workplace

The use of alcohol and drugs can impair your ability to work effectively and productively. Except at approved Company functions, or with appropriate authorization, you may not drink alcohol on Company premises.

You are prohibited from working while your performance is impaired by alcohol or any other drug whether legal or illegal. Additionally, you may not possess any non-pharmaceutical drugs on Company premises or at work-related functions.

We strictly prohibit acts of hostility, intimidation or violence towards others in the workplace and in places where our business is being conducted. You may not bring firearms, explosives or any other weapons onto Company premises, or to any work-related setting, regardless of whether you are licensed to carry such weapons.

------

Government Inquiries

The Company cooperates with government agencies and authorities. Forward all requests for information, other than routine requests, to the Legal Department immediately to ensure that we respond appropriately.

All information provided must be truthful and accurate. Never mislead any investigator. Do not ever alter or destroy documents or records subject to an investigation.

Review

The Board shall review this Code annually and make changes as appropriate.

## Exhibit 15.1

**Exhibit 15.1** 

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| | |
|:---|:---|
| ![LOGO](g760217dspa1.jpg) | Harney Westwood & Riegels<br> 3501 The Center<br> 99 Queen's Road Central<br> Hong Kong<br> Tel: +852 5806 7800<br> Fax: +852 5806 7810 |

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30 December 2025

063755.0001 Leoch Energy Inc

4th Floor, Harbour Place

103 South Church Street

P. O. Box 10240

Grand Cayman KY1-1002

Cayman Islands

Dear Sir or Madam

**Leoch Energy Inc, Company Number 412272 (the *Company*)** 

We are lawyers qualified to practise in the Cayman Islands and have acted as Cayman Islands legal advisers to the Company in connection with the Company's registration statement on Form 20-F (the ***Registration Statement***), including all amendments or supplements thereto, filed with the United States Securities and Exchange Commission (the ***Commission***) under Section 12(b) of the United States Securities Exchange Act of 1934, as amended, relating to the registration of the ordinary shares of a par value of US$0.000005 each of the Company (the ***Shares***).

We are furnishing this opinion as Exhibit 15.1 to the Registration Statement.

For the purposes of giving this opinion, we have examined the Documents (as defined in Schedule 1). We have not examined any other documents, official or corporate records or external or internal registers and have not undertaken or been instructed to undertake any further enquiry or due diligence in relation to the transaction which is the subject of this opinion.

In giving this opinion we have relied upon the assumptions set out in Schedule 2 which we have not independently verified.

Based solely upon the foregoing examinations and assumptions and upon such searches as we have conducted and having regard to legal considerations which we deem relevant, and subject to the qualifications set out in Schedule 3, we are of the opinion that under the laws of the Cayman Islands:

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| | |
|:---|:---|
| 1 | **Existence and Good Standing.** The Company has been duly incorporated as an exempted company with limited liability and is validly existing and in good standing under the laws of the Cayman Islands.  |

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| | |
|:---|:---|
| The British Virgin Islands is Harneys Hong Kong office's main jurisdiction of practice.<br> Jersey legal services are provided through a referral arrangement with Harneys (Jersey) which is an independently owned and controlled Jersey law firm.<br> Resident Partners: M Chu \| JP Engwirda \| Y Fan \| SG Gray \| IC Groark \| PM Kay \| MW Kwok<br> IN Mann \| BP McCosker \| R Ng \| PJ Sephton | Anguilla \| Bermuda \| British Virgin Islands<br> Cayman Islands \| Cyprus \| Hong Kong \| Jersey<br> London \| Luxembourg \| Shanghai \| Singapore<br> harneys.com |

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| | |
|:---|:---|
| 2 | **Authorised Share Capital.** Based on our review of the M&A (as defined in Schedule 1), the authorised share capital of the Company, with effect from the date that the M&A becomes effective, will be US$50,000 divided into 10,000,000,000 ordinary shares of a par value of US$0.000005 each.  |

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| | |
|:---|:---|
| 3 | **Valid Issuance of Shares.** The allotment and issue of the Shares as contemplated by the Registration Statement have been duly authorised and, when allotted, issued and fully paid for in accordance with the Registration Statement, and when the names of the shareholders are entered in the register of members of the Company, the Shares will be validly issued, fully paid and non-assessable.  |

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| | |
|:---|:---|
| 4 | **Cayman Islands Law.** The statements under the headings "Item 10. Additional Information – 10.A. Share Capital" "Item 10. Additional Information – 10.B. Memorandum and Articles of Association" and "Item 10. Additional Information – 10.E. Taxation – Cayman Islands Tax Considerations" in the Registration Statement, to the extent that they constitute statements of Cayman Islands law, are accurate in all material respects as at the date of this opinion and such statements constitute our opinion.  |

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This opinion is confined to the matters expressly opined on herein and given on the basis of the laws of the Cayman Islands as they are in force and applied by the Cayman Islands courts at the date of this opinion. We have made no investigation of, and express no opinion on, the laws of any other jurisdiction. Except as specifically stated herein, we express no opinion as to matters of fact. Except as specifically stated herein, we make no comment with respect to any representations and warranties which may be made by or with respect to the Company in the Registration Statement. We express no opinion with respect to the commercial terms of the transactions the subject of this opinion.

In connection with the above opinion, we hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the reference made to our firm in the Registration Statement under the headings "Item 1. Identity of Directors, Senior Management and Advisers – 1.B. Advisers", "Item 10. Additional Information – 10.B. Memorandum and Articles of Association – Enforceability of Civil Liabilities" and elsewhere in the Registration Statement. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the United States Securities Act of 1933, as amended or the Rules and Regulations of the Commission thereunder.

This opinion is limited to the matters referred to herein and shall not be construed as extending to any other matter or document not referred to herein.

This opinion shall be construed in accordance with the laws of the Cayman Islands.

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| |
|:---|
| Yours faithfully |
| /s/ Harney Westwood & Riegels |
| **Harney Westwood & Riegels** |

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**SCHEDULE 1** 

List of Documents and Records Examined

1 A copy of the certificate of incorporation of the Company dated 19 July 2024.

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| | |
|:---|:---|
| 2 | A copy of the amended and restated memorandum and articles of association of the Company as adopted by a special resolution passed on 17 December 2025 and effective immediately prior to the completion of the initial listing of the Company's ordinary shares on a Designated Stock Exchange (the ***M&A***).  |

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3 A copy of the register of members provided to us on 11 September 2024.

4 A copy of the register of directors and officers of the Company provided to us on 11 September 2024.

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| | |
|:---|:---|
| 5 | A copy of executed written resolutions of the sole director of the Company passed on 17 December 2025 (the ***Resolutions***).  |

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6 A certificate of good standing dated 16 December 2025 in respect of the Company issued by the Registrar of Companies in the Cayman Islands.

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| | |
|:---|:---|
| 7 | A certificate issued by the sole director of the Company dated 19 December 2025, a copy of which is attached hereto (the ***Director's Certificate***).  |

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8 The Registration Statement.

(items 1 to 6 above collectively referred to as the ***Corporate Documents*** and items 1 to 8 above collectively referred to as the ***Documents***)

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**SCHEDULE 2** 

Assumptions

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| | |
|:---|:---|
| 1 | **Authenticity of Documents.** Copy documents or drafts of documents provided to us are true and complete copies of, or in the final forms of, the originals. All original Corporate Documents are authentic, all signatures, initials and seals are genuine.  |

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| | |
|:---|:---|
| 2 | **Corporate Documents.** All matters required by law to be recorded in the Corporate Documents are so recorded, and all corporate minutes, resolutions, certificates, documents and records which we have reviewed are accurate and complete, and all facts expressed in or implied thereby are accurate and complete as at the date of the passing of the Resolutions.  |

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| | |
|:---|:---|
| 3 | **Constitutional Documents.** The M&A is the latest memorandum and articles of association of the Company in effect as of the time of the opinion.  |

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---

| | |
|:---|:---|
| 4 | **Resolutions.** The Resolutions have been duly executed by or on behalf of the sole director, and the signature(s) and initial(s) thereon are those of a person or persons in whose name the Resolutions have been expressed to be signed. The Resolutions remain in full force and effect.  |

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| | |
|:---|:---|
| 5 | **No Steps to Wind-up**. The sole director and shareholders of the Company have not taken any steps to have the Company struck off or placed in liquidation, no steps have been taken to wind up the Company and no receiver has been appointed over any of the property or assets of the Company.  |

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| | |
|:---|:---|
| 6 | **Unseen Documents.** Save for the Documents provided to us there are no resolutions, agreements, documents or arrangements which materially affect, amend or vary the transactions envisaged in the Documents and, in particular, that the entry into and performance of the transactions contemplated under the Registration Statement will not cause any of the parties thereto to be in breach of any agreement or undertaking.  |

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| | |
|:---|:---|
| **7** | **Director's Certificate**. The contents of the Director's Certificate are true and accurate as at the date of this opinion and there is no information not contained in the Director's Certificate that will in any way affect this opinion.  |

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**SCHEDULE 3** 

Qualifications

---

| | |
|:---|:---|
| 1 | **Foreign Statutes.** We express no opinion in relation to provisions making reference to foreign statutes in the Registration Statement.  |

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---

| | |
|:---|:---|
| 2 | **Commercial Terms.** Except as specifically stated herein, we make no comment with respect to any representations and warranties which may be made by or with respect to the Company in any of the documents or instruments cited in this opinion or otherwise with respect to the commercial terms of the transactions the subject of this opinion.  |

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| | |
|:---|:---|
| 3 | **Register of members.** Under the Companies Act, the register of members of a Cayman Islands company is by statute regarded as prima facie evidence of any matters which the Companies Act directs or authorises to be inserted therein. A third party interest in the shares in question would not appear. An entry in the register of members may yield to a court order for rectification (for example, in the event of fraud or manifest error).  |

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| | |
|:---|:---|
| 4 | **Meaning of Non-Assessable.** In this opinion the phrase ***non-assessable*** means, with respect to the issuance of Shares, that a shareholder shall not, in respect of the relevant Shares, have any obligation to make further contributions to the Company's assets (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).  |

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| | |
|:---|:---|
| 5 | **Good Standing.** The Company shall be deemed to be in good standing at any time if all fees (including annual filing fees) and penalties under the Companies Act have been paid and the Registrar of Companies has no knowledge that the Company is in default under the Companies Act (Revised) of the Cayman Islands.  |

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| | |
|:---|:---|
| 6 | **Economic Substance.** We have undertaken no enquiry and express no view as to the compliance of the Company with the International Tax Co-operation (Economic Substance) Act (Revised).  |

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**SCHEDULE 4** 

**Director's Certificate**

## Exhibit 15.3

**Exhibit 15.3** 

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the reference to our firm under the caption "Statement by Experts" and to the use of our report dated September 29, 2025 in the Registration Statement (Form 20-F) of Leoch Energy Inc.

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| |
|:---|
| /s/ Ernst & Young Hua Ming LLP |
| Shenzhen, The People's Republic of China<br> December 30, 2025 |

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## Exhibit 15.4

**Exhibit 15.4** 

THIS CIRCULAR IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION

If you are in any doubt as to any aspect of this circular or as to the action to be taken, you should consult a licensed securities dealer, bank manager, solicitor, professional accountant or other professional adviser.

If you have sold or transferred all your shares in Leoch International Technology Limited, you should at once hand this circular and the accompanying form of proxy to the purchaser or the transferee or to the bank, licensed securities dealer or other agent through whom the sale or transfer was effected for transmission to the purchaser or the transferee.

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this circular, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this circular.

The Proposed Spin-off and the Proposed Distribution (each as defined herein) are subject to, among other things, the approval of the Company Shareholders, the approvals from the relevant U.S. authorities, the final decision of the Directors and the board of directors of the Company (or its subsidiaries, as applicable), as well as market conditions and other relevant considerations. Accordingly, the Company Shareholders and potential investors should be aware that there is no assurance that the Proposed Spin-off and the Proposed Distribution will take place or when they will take place. The Company Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

This circular is for information purposes only and does not constitute an invitation or offer, for securities of the Company.

![LOGO](g760217g1215180519552.jpg)

**Leoch International Technology Limited** 

理士國際技術有限公司

*(Incorporated in the Cayman Islands with limited liability)* 

**(Stock Code: 842)** 

(1) THE PROPOSED SPIN-OFF AND THE PROPOSED DISTRIBUTION;

(2) CONTINUING CONNECTED TRANSACTIONS IN RELATION TO THE PRODUCT PROCUREMENT FRAMEWORK AGREEMENT;

AND

(3) NOTICE OF THE EXTRAORDINARY GENERAL MEETING

Independent Financial Adviser to

the Independent Board Committee and the Independent Company Shareholders

![LOGO](g760217g36f00.jpg)

A letter from the Board is set out on pages 5 to 32 of this circular and a letter of recommendation from the Independent Board Committee to the Company Shareholders and the Independent Company Shareholders is set out on pages 33 to 34 of this circular. A letter of advice from the Independent Financial Adviser to the Independent Board Committee and the Independent Company Shareholders in respect of the Product Procurement Framework Agreement is set out on pages 35 to 46 of this circular.

A notice convening the extraordinary general meeting of the Company to be held at 10:00 a.m. on 7 January 2026 at Unit C, 33/F., TML Tower, No. 3 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong, is set out on pages EGM-1 to EGM-3 of this circular. A form of proxy for use at the extraordinary general meeting of the Company is also enclosed with this circular.

Whether or not you are able to attend the meeting, you are requested to complete the accompanying form of proxy in accordance with the instructions printed thereon and return it to the Company's branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limited at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong, as soon as possible but in any event not less than 48 hours before the time appointed for the holding of the meeting or any adjourned meeting (as the case may be). Completion and return of the form of proxy shall not preclude you from attending and voting at the meeting or any adjourned meeting (as the case may be) should you so wish.

15 December 2025

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CONTENTS

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| | |
|:---|:---|
|  | *Page* |
|  EXPECTED TIMETABLE | ii |
|  DEFINITIONS | 1 |
|  LETTER FROM THE BOARD | 5 |
|  LETTER FROM THE INDEPENDENT BOARD COMMITTEE | 33 |
|  LETTER FROM THE INDEPENDENT FINANCIAL ADVISER | 35 |
|  APPENDIX I – FINANCIAL INFORMATION OF THE GROUP | 47 |
|  APPENDIX II – GENERAL INFORMATION | 49 |
|  APPENDIX III – PRO FORMA FINANCIAL INFORMATION OF THE SPINCO GROUP | 55 |
|  NOTICE OF THE EGM | EGM-1 |

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– i –

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EXPECTED TIMETABLE

EVENTS

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| | |
|:---|:---|
|  Despatch of circular and notice of the EGM | 15 December 2025 |
|  Latest time for lodging transfers of Shares in order to be entitled to attend and vote at the EGM | 4:30 p.m.,<br> 31 December 2025 |
|  Latest time for return of proxy forms in respect of the EGM | 10:00 a.m.,<br> 5 January 2026 |
|  Closure of the register of members of the Company for determining the entitlements to attend and vote at the EGM | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> 2 January 2026 to<br> 7 January 2026 |
|  EGM | 10:00 a.m., 7 January 2026 |
|  Announcement of the poll results of the EGM | 7 January 2026 |
|  Register of members of the Company re-opens | 8 January 2026 |
|  Latest day of trading in the Shares on a cum-entitlement basis | 8 January 2026 |
|  First day of dealing in the Shares on an ex-entitlement basis | 9 January 2026 |
|  Latest time for lodging transfers of Shares to qualify for the Proposed Distribution | 4:30 p.m., 12 January 2026 |
|  Closure of the register of members of the Company for determining entitlements to the Proposed Distribution | 13 January 2026 |
|  Record Date for determining the entitlements to the Proposed Distribution | 13 January 2026 |
|  Register of members of the Company re-opens | 14 January 2026 |
|  Completion of the Proposed Distribution | 4 February 2026 |
|  Expected Listing Date of the Spinco | 4 February 2026 |

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All times refer to Hong Kong time. Please note that the expected timetable above is indicative only and may be extended or varied. If there is any change to the expected timetable above, the Company will publish an announcement as soon as possible.

– ii –

------

DEFINITIONS

*In this circular, the following expressions shall have the following meanings unless the context requires otherwise:* 

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| | |
|:---|:---|
|  ''Articles'' | the articles of association of the Company |
|  ''Board'' | the board of the Directors |
|  ''Brand Licensing Framework Agreement'' | the brand licensing framework agreement to be entered into between the SpinCo Group and the Retained Group |
|  ''Company'' | Leoch International Technology Limited, a company incorporated in the Cayman Islands and the issued Shares of which are listed on the main board of the Stock Exchange under stock code: 842 |
|  ''Company Shareholder(s)'' | the shareholder(s) of the Company |
|  ''Controlling Shareholders'' | has the meaning ascribed to it under the Listing Rules |
|  ''Director(s)'' | the director(s) of the Company |
|  ''Dr. Dong'' | Dr. Dong Li, the Chairman of the Board and an executive Director, who, through Master Alliance, is interested in approximately 74.17% of the total issued share capital of the Company and hence a Controlling Shareholder |
|  ''EGM'' | the extraordinary general meeting of the Company to be held at 10:00 a.m. on 7 January 2026 for the purpose of considering and, if thought fit, approving the matters referred to in this circular |
|  ''Group'' | the Company and its subsidiaries |
|  ''Hong Kong'' | the Hong Kong Special Administrative Region of the People's Republic of China |
|  ''IFRS'' | International Financial Reporting Standards |

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– 1 –

------

DEFINITIONS

---

| | |
|:---|:---|
|  ''Independent Board Committee'' | an independent committee of the Board comprising of all the independent non-executive Directors established by the Company to advise (i) the Company Shareholders in respect of the terms of the Proposed Spin-off and the Proposed Distribution; and (ii) the Independent Company Shareholders in respect of the terms of, and the transactions contemplated under, the Product Procurement Framework Agreement |
|  ''Independent Financial Adviser'' | Lego Corporate Finance Limited, a licensed corporation to carry out type 6 (advising on corporate finance) regulated activity under the SFO, acting as the independent financial adviser to advise the Independent Board Committee and the Independent Company Shareholders in respect of the terms of the Product Procurement Framework Agreement |
|  ''Independent Company Shareholders'' | Company Shareholder(s) who is/are not required to abstain from voting on the resolution to be proposed at the EGM to approve the Product Procurement Framework Agreement |
|  ''Latest Practicable Date'' | 5 December 2025, being the latest practicable date prior to the printing of this circular for ascertaining certain information contained in this circular |
|  ''Listing Rules'' | the Rules Governing the Listing of Securities on the Stock Exchange (as amended from time to time) |
|  ''Master Alliance'' | Master Alliance Investment Limited, a limited liability company incorporated in the British Virgin Islands which is wholly owned by Dr. Dong |
|  ''Non-Qualifying Company Shareholders'' | the Company Shareholders who, due to practical limitations and restrictions, will not be qualified to receive the shares of the SpinCo directly under the Proposed Distribution, if any. Please refer to the paragraph headed ''2.12. Arrangement for the Proposed Distribution'' of this circular for a more detailed definition |
|  ''PN15'' | Practice Note 15 of the Listing Rules |
|  ''Product Procurement Framework Agreement'' | the product procurement framework agreement to be entered into between the SpinCo Group and the Retained Group |

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– 2 –

------

DEFINITIONS

---

| | |
|:---|:---|
|  ''Proposed Distribution'' | the proposed demerger of the SpinCo from the Company through a distribution in specie of all of the Company's shares held in the SpinCo to all the Company Shareholders on a pro-rata basis |
|  ''Proposed Spin-off'' | the proposed listing of the shares of the SpinCo on the U.S. Stock Exchange |
|  ''Qualifying Company Shareholders'' | the Company Shareholders who are not the Non-Qualifying Shareholders and who will directly receive the shares of the SpinCo under the Proposed Distribution |
|  ''Referenced Equity Value'' | the value of the SpinCo Group as of 30 June 2025, assessed by an independent valuer engaged by the Company |
|  ''Retained Group'' | the Company and its subsidiaries, excluding the SpinCo Group |
|  ''SFO'' | the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) |
|  ''Share(s)'' | the ordinary share(s) of HK$0.10 each in the issued share capital of the Company |
|  ''SpinCo'' | Leoch Energy Inc, an exempted limited liability company incorporated in the Cayman Islands on 19 July 2024 and a wholly-owned subsidiary of the Company prior to the Proposed Spin-off, and the demerger entity in the Proposed Spin-off |
|  ''SpinCo Group'' | the SpinCo and its subsidiaries |
|  ''SpinCo Listing Date'' | the date on which the SpinCo is listed on the U.S. Stock Exchange |
|  ''Stock Exchange'' | The Stock Exchange of Hong Kong Limited |
|  ''subsidiary(ies)'' | has the meaning as ascribed thereto in the Listing Rules |
|  ''U.S.'' | the United States of America |
|  ''U.S. SEC'' | the Securities and Exchange Commission of the U.S. |
|  ''U.S. Stock Exchange'' | the New York Stock Exchange or Nasdaq |

---

– 3 –

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DEFINITIONS

---

| | |
|:---|:---|
|  "US$" | U.S. dollar(s), the lawful currency of the U.S. |
|  "%" | percent |

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LETTER FROM THE BOARD

![LOGO](g760217g1215180520044.jpg)

**Leoch International Technology Limited** 

理士國際技術有限公司

*(Incorporated in the Cayman Islands with limited liability)* 

**(Stock Code: 842)** 

---

| | |
|:---|:---|
|  *Executive Directors:* | *Registered Office:* |
|  Dr. DONG Li | Cricket Square, Hutchins Drive |
|  Ms. HONG Yu | PO Box 2681 |
|  | Grand Cayman KY1-1111 |
|  *Independent non-executive Directors:* | Cayman Islands |
|  Mr. CAO Yixiong Alan |  |
|  Mr. LAU Chi Kit | *Headquarters:* |
|  Mr. LU Zhiqiang | 152 BEACH ROAD |
|  | #22-01/04, |
|  | GATEWAY EAST, |
|  | SINGAPORE |
|  | *Principal place of business in Hong Kong:* |
|  | Unit C, 33/F, |
|  | TML Tower |
|  | No. 3 Hoi Shing Road |
|  | Tsuen Wan |
|  | New Territories |
|  | Hong Kong |
|  | 15 December 2025 |

---

*To the Company Shareholders* 

Dear Sir or Madam,

(1) THE PROPOSED SPIN-OFF AND THE PROPOSED DISTRIBUTION;

(2) CONTINUING CONNECTED TRANSACTIONS IN RELATION TO THE PRODUCT PROCUREMENT FRAMEWORK AGREEMENT;

AND

(3) NOTICE OF THE EXTRAORDINARY GENERAL MEETING

1. INTRODUCTION

Reference is made to the announcement of the Company dated 12 February 2025 in relation to the Proposed Spin-off and the Proposed Distribution.

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LETTER FROM THE BOARD

The purpose of this circular is to provide you with, among others: (i) further details of the Proposed Spin-off and the Proposed Distribution; (ii) further details of the Product Procurement Framework Agreement; (iii) the letter of recommendation from the Independent Board Committee to (a) the Company Shareholders in respect of the Proposed Spin-off and the Proposed Distribution; and (b) the Independent Company Shareholders in respect of the Product Procurement Framework Agreement; (iv) the letter from the Independent Financial Adviser to the Independent Board Committee and the Independent Company Shareholders in respect of the Product Procurement Framework Agreement; and (v) a notice of the EGM, to enable you to make an informed decision on whether to vote for or against the proposed resolutions at the EGM.

An ordinary resolution will be proposed at the EGM to approve the Proposed Spin-off and the Proposed Distribution, which is subject to the approval by the requisite majority (i.e., over 50%) of the Company Shareholders voting at the EGM in person or by proxy.

2. THE PROPOSED SPIN-OFF AND SEPARATE LISTING OF THE SPINCO ON THE U.S.
STOCK EXCHANGE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. Background

The Board proposes to carry out a spin-off and separate listing of the SpinCo on the U.S. Stock Exchange. In this regard, the Company submitted a spin-off proposal to the Stock Exchange pursuant to PN15 and announced on 12 February 2025 that the Stock Exchange has confirmed that the Company may proceed with the Proposed Spin-Off.

Subject to obtaining the requisite approval from the Company Shareholders at an EGM, the Proposed Spin-off, if proceeded with, will result in the separate listing of the SpinCo on a U.S. Stock Exchange and the Proposed Distribution, if proceeded with, will result in the full separation of the SpinCo from the Company. It is proposed that the Proposed Distribution, whereby the Company will distribute all of the shares it holds in the SpinCo to the Company Shareholders, will occur substantially concurrently with the listing of the SpinCo. Considering the recent market conditions in the U.S., an initial public offering of the SpinCo's shares on a U.S. Stock Exchange will not be undertaken together with the Proposed Spin-off and the Proposed Distribution.

The Proposed Distribution is aimed at providing the Company Shareholders with an assured entitlement to the shares of the SpinCo upon the Proposed Spin-off by way of a distribution in specie, representing an arrangement determined by the Company having due regard to the interests of the Company Shareholders.

The ultimate objective of the Proposed Spin-off and the Proposed Distribution is to create a parallel listing structure of the Company and the SpinCo, under which the SpinCo will be demerged and deconsolidated from the Company and separately listed on a U.S. Stock Exchange, with the Company Shareholders becoming direct shareholders of the SpinCo.

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LETTER FROM THE BOARD

In addition to the approval by the Company Shareholders at the EGM, among other things, the SpinCo has yet to obtain approvals from the U.S. SEC and the U.S. Stock Exchange before it can be listed on the U.S. Stock Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. Shareholding percentage of the Company in the SpinCo immediately before and after the Proposed Spin-off and the Proposed Distribution

Prior to the completion of the Proposed Spin-off, the SpinCo (as the listing entity) is a wholly-owned subsidiary of the Company. Immediately following the completion of the Proposed Spin-off, the SpinCo Group will be fully demerged and deconsolidated from the Company and separately listed on the U.S. Stock Exchange, whilst the Company will remain listed on the Stock Exchange.

Set out below is the shareholding structure of the Group and the SpinCo Group before and after the completion of the Proposed Spin-off and the Proposed Distribution.

Before the completion of the Proposed Spin-off and the Proposed Distribution.

![LOGO](g760217g84i36.jpg)

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LETTER FROM THE BOARD

After the Proposed Spin-off and the Proposed Distribution:

![LOGO](g760217g11r38.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. Conditions of the Proposed Spin-off and the Proposed Distribution

The Proposed Spin-off and the Proposed Distribution will proceed if the proposal is approved by the requisite majority (i.e., over 50%) of the Company Shareholders voting at the EGM in person or by proxy. The Proposed Spin-off and the Proposed Distribution are subject to (i) the approval by the requisite majority (i.e., over 50%) of the Company Shareholders voting at the EGM in person or by proxy, and (ii) the approvals from the relevant U.S. authorities in respect of the Proposed Spin-off and Proposed Distribution. As of the Latest Practicable Date, the abovementioned conditions have not yet been fulfilled, and such conditions are not waivable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. Financial impact of the Proposed Spin-off and the Proposed Distribution

It is expected that the SpinCo (and its subsidiaries) will cease to be subsidiaries of the Company and be fully demerged from the Company immediately upon completion of the Proposed Spin-off and the Proposed Distribution.

The following estimates the financial impact of the Proposed Spin-off and the Proposed Distribution on the Group on the basis of the current structure which is subject to finalization and audit and is for illustration purposes only. The analysis below does not purport to represent how the financial position of the Group will be upon completion of the Proposed Spin-off and the Proposed Distribution.

Paragraph 25 of IFRS 10 states that:

*''If a parent loses control of a subsidiary, the parent:* 

*derecognises the assets and liabilities of the former subsidiary from the consolidated statement of financial position.* 

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LETTER FROM THE BOARD

*recognises any investment retained in the former subsidiary at its fair value when control is lost and subsequently accounts for it and for any amounts owed by or to the former subsidiary in accordance with relevant IFRSs. That fair value shall be regarded as the fair value on initial recognition of a financial asset in accordance with IFRS 9 or, when appropriate, the cost on initial recognition of an investment in an associate or joint venture.*

*recognises the gain or loss associated with the loss of control attributable to the former controlling interest.''*

Since the SpinCo will be fully demerged and deconsolidated from the Company and will no longer be accounted for as a subsidiary of the Company, the Group will derecognise the assets and liabilities of the SpinCo Group from the consolidated statements of financial position. The Group will no longer hold shares in the SpinCo.

*Valuation of the SpinCo Group* 

For the purpose of the PN15 application to the Stock Exchange, the Company has engaged an independent valuer to assess the value of the SpinCo Group. Based on the valuation report, the Referenced Equity Value of the SpinCo Group is estimated to be approximately RMB1,425 million as of 30 June 2025.

The valuer has adopted the market approach with reference to the fair value of certain selected comparable companies as of 30 June 2025 in determining the market value of the SpinCo Group. The valuer has selected a group of comparable companies listed on Japan, Hong Kong and U.S. stock exchanges to provide a reasonable reference in evaluating the industry's multiples, and adopted the P/B ratio and EV/Sales ratio to arrive at the Referenced Equity Value. The comparable companies have been selected based on the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The comparable companies are in the same industry as the SpinCo Group, namely the new energy battery industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The difference between the revenue scale of the comparable companies and the revenue scale of the SpinCo Group
on the valuation date shall be around or within five times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The selected companies shall be profitable and have positive net assets on the valuation benchmark date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The selected companies have relevant public information for reference and assessment. A share companies are
excluded as they are having higher premium in terms of market capitalization.

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LETTER FROM THE BOARD

The assumptions adopted by the valuer included but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the products of the SpinCo Group was transacted in an open market where parties could determine the terms of
the transaction on an arm's length negotiation basis with due consideration; (ii) the SpinCo Group is expected to continue to conduct the existing power solution business; (iii) the historical profitability of the SpinCo Group is
sustainable and representative; (iv) the general new energy battery market will not have a material decrease in the foreseeable future; (v) future legislative or regulatory changes would not have a material adverse effect on the SpinCo
Group's business, results of operations or financial condition; (vi) the mortgage and guarantee borne by the SpinCo Group were not taken into consideration when determining the Referenced Equity Value; (vii) there will not be
material future legislative or regulatory changes including taxes, credit, exchange rates and finance policies; (viii) the business operation of the Retained Group has been and will be conducted in accordance with applicable laws, regulations
and its Articles; (ix) the shares of the selected companies are traded under a normal and orderly market without manipulation; and (x) the financial information of the selected companies are true, accurate and complete and was disclosed in
time.

As the SpinCo was not listed as of 30 June 2025, in determining the Referenced Equity Value, the valuer has taken into consideration (i) the nature and history of the Group and the SpinCo Group; (ii) the financial conditions of the SpinCo Group; (iii) the operation, financial and business risks of the SpinCo Group, including the continuity of income; (iv) market-derived investment returns of entities engaged in similar lines of business; and (v) the private company status of the SpinCo.

Having reviewed the qualification and experience of the independent valuer, and conducted reasonable assessment on the valuation method and the principal assumptions adopted by the valuer, the Company is of the view that the above method in determining the Referenced Equity Value is fair and appropriate because of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the value of the SpinCo Group as determined by the independent valuer represents a fair value of 100% interest
in the SpinCo Group as of 30 June 2025 by reference to the then circumstances of the SpinCo Group, which is based on common and widely accepted valuation methodology; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the valuation methodology (as being appropriate based on the view of the valuer) has taken into account the
specific circumstances of the SpinCo Group and value of companies as of 30 June 2025 that are considered to be comparable to the SpinCo Group.

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LETTER FROM THE BOARD

However, the Company Shareholders and potential investors should note that the above Referenced Equity Value assessed by the valuer is for the Company Shareholders' and potential Shareholders' reference only. The value in respect of the Company's equity interest in the SpinCo Group as of the date of the completion of the Proposed Spin-off and the Proposed Distribution will be determined by the market share price of the SpinCo on the U.S. Stock Exchange, as the SpinCo will become a listed company in the U.S. in connection with the Proposed Spin-off and the Proposed Distribution subject to, among other things, the approval of the Company Shareholders and the approvals from the relevant U.S. authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. Reasons for and anticipated benefits of the Proposed Spin-off and the
Proposed Distribution

Following the Company's assessment of the overall market positions of its power solution and related items including its network power batteries, SLI batteries, motive power batteries and energy storage solutions across different regions around the world and recycled lead in the PRC, the Company recognized that success in each market requires geography- specific considerations and focus (such as, among others, consumer habits, localized lifestyle differences, cultural differences, and consumer and market preferences). As a result, the Company believes that the best strategy to drive global business growth and expand its presence in localized markets, is to ''break up'' the Group into its two primary delineated markets: (i) Chinese Mainland, Hong Kong and Macau; and (ii) overseas markets (the ''Overseas Markets'') including Europe, Middle East and Africa (''EMEA''), Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau), and have the Retained Group, which will remain listed on the Stock Exchange focus on Chinese Mainland, Hong Kong and Macau markets, while the SpinCo Group, of which the Company proposes to attain a separate listing on the U.S. Stock Exchange, focuses on the Overseas Markets.

The Board considers that the Proposed Spin-off and the Proposed Distribution are commercially beneficial to the Company and the SpinCo Group and in the interest of the Company Shareholders as a whole as it expects the following benefits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Proposed Spin-off would strengthen the operational management
ability of both the Retained Group and the SpinCo Group, and their respective abilities to recruit and retain personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Proposed Spin-off and the Proposed Distribution would create two independent businesses, being the Retained
Group and the SpinCo Group with enhanced geographic focus, each of which the Board believes is well positioned for continued growth and market share capture, driven by innovation and new product offerings in their respective areas;

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Proposed Spin-off would be conducive to improving the operation,
financial transparency and corporate governance level of the Retained Group and the SpinCo Group, respectively, through which the investors could form better understanding of, and investment decisions in, businesses with different focuses, thus
achieving reasonable valuation of the Group, enhancing the interests of all shareholders of the Retained Group and the SpinCo Group; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Proposed Spin-off and the Proposed Distribution would enable
shareholders and investors to assess the investment propositions of each business of the Retained Group and the SpinCo Group individually and freely select whether to continue to participate in both businesses or adjust their investment exposure, so
as to unlock and enhance the market value of both the Retained Group and the SpinCo Group.

As such, the Company is of the view that the Proposed Spin-off and the Proposed Distribution is fair and reasonable and in the interests of the Company and the Company Shareholders as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6. Information on the SpinCo Group and the Retained Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.6.1* *Business Overview* 

As of the Latest Practicable Date, the Group is primarily engaged in (i) power solutions business categorized into three major categories: (a) network power batteries, including Telecom and UPS batteries which are widely used in communications networks and data centers at all levels to provide a key guarantee for the normal operation of communication networks and other reserve power batteries; (b) SLI batteries, which are used for the starting-and-stop, lightening and ignition (SLI) of automobiles, motorcycles and ships; and (c) motive power batteries, which are mainly used in electric bicycles, electric tricycles, low-speed electric cars, golf carts and sightseeing carts; and (ii) sales of recycled lead products business. For the three years ended 31 December 2024 and the six months ended 30 June 2025, the revenue generated by the above two major business segments from customers principally located in Chinese Mainland, Hong Kong, Macau, EMEA, Americas and Asia-Pacific (other than Chinese Mainland, Hong Kong and Macau).

Upon completion of the Proposed Spin-off and the Proposed Distribution, the SpinCo Group will operate its power solution business in Overseas Markets (the ''SpinCo Businesses''), and the Retained Group will continue to operate its power solution business and sales of recycled lead products business in Chinese Mainland, Hong Kong and Macau (the ''Remaining Businesses'').

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LETTER FROM THE BOARD

The SpinCo Businesses and the Remaining Businesses will primarily engaged in the production and sales of the power solution products as stated above. The power solution products sold by the Retained Group and the SpinCo Group are designed for use in vehicles, energy storage systems and other applications for telecommunication stations and data centers in different markets and regions, with differentiated and distinguished features and characteristics in terms of their design, technical specification, functionality and capacity, which cater to specific models of products (such as electric vehicles) and application systems used or sold in different countries and regions, as well as with modifications necessary to comply with any applicable standard or product requirements under local laws and regulations. For example, the batteries used in BMW cars sold in China have different size, specifications, capacity and electricity compared to the BMW cars sold in the U.S. This is determined by local standards, product requirements and customer preference in difference regions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.6.2* *Financial Information of the SpinCo Group* 

For the purpose of the application under PN15 with the Stock Exchange, the Company has prepared pro-forma financial information of the SpinCo Group. Set out below is the financial information of the SpinCo Group prepared according to IFRS with the pro-forma adjustments for the three years ended 31 December 2024 and the six months ended 30 June 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the six<br> months ended<br> 30 June<br> 2025 | For the six<br> months ended<br> 30 June<br> 2025 |
|  | 2022 | 2022 | 2023 | 2023 | 2024 | 2024 | For the six<br> months ended<br> 30 June<br> 2025 | For the six<br> months ended<br> 30 June<br> 2025 |
|  | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) |
|  Revenue |  | 4776 |  | 4962 |  | 6206 |  | 3434 |
|  Profit before tax |  | 400 |  | 404 |  | 440 |  | 211 |
|  Profit after tax |  | 353 |  | 323 |  | 312 |  | 142 |

---

The total assets (on a pro forma basis as per above) of the SpinCo Group amounted to RMB3,094 million, RMB3,870 million, RMB5,392 million and RMB4,886 million, as of 31 December 2022, 2023 and 2024 and 30 June 2025, respectively. The net asset value of the SpinCo Group amounted to RMB1,023 million, RMB1,358 million, RMB1,918 million and RMB1,007 million, as of 31 December 2022, 2023 and 2024 and 30 June 2025, respectively.

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LETTER FROM THE BOARD

The Company Shareholders and potential investors should note that the above financial information has been prepared under IFRS with pro forma adjustments, which may differ from the financial information included in any registration statement to be filed by the SpinCo with the relevant U.S. authorities in connection with its proposed listing on the U.S. Stock Exchange, which would be prepared in accordance with U.S. generally accepted accounting principles (GAAP).

For details of the financial information (on a pro forma basis as per above) of the SpinCo Group, please refer to Appendix III-Pro Forma Financial Information of the SpinCo Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.6.3* *Financial Information of the Retained Group* 

For the purpose of the application under PN15 with the Stock Exchange, the Company has prepared pro-forma financial information of the Retained Group. Set out below is the financial information of the Retained Group prepared according to IFRS with pro-forma adjustments for the three years ended 31 December 2024 and the six months ended 30 June 2025:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | | | | | For the six<br>months ended<br>30 June | For the six<br>months ended<br>30 June |
|  | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the six<br>months ended<br>30 June | For the six<br>months ended<br>30 June |
|  | 2022 | 2022 | 2023 | 2023 | 2024 | 2024 | 2025 | 2025 |
|  | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) | (RMB million, unaudited) |
|  Revenue |  | 10610 |  | 11274 |  | 13456 |  | 7242 |
|  Profit before tax |  | 190 |  | 250 |  | 264 |  | 754 |
|  Profit after tax |  | 157 |  | 256 |  | 264 |  | 779 |

---

The total assets (on a pro forma basis as per the above) of the Retained Group amounted to RMB8,588 million RMB11,167 million, RMB13,723 million and RMB13,797 million as of 31 December 2022, 2023 and 2024 and 30 June 2025, respectively. The net asset value of the Retained Group amounted to RMB3,021 million, RMB3,243 million, RMB3,114 million and RMB4,056 million as of 31 December 2022, 2023 and 2024 and 30 June 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7. Management Independence

As of the Latest Practicable Date, the Board comprises Dr. Dong and Ms. Hong Yu as executive Directors, and Mr. Cao Yixiong Alan, Mr. Lau Chi Kit and Mr. Lu Zhiqiang as independent non-executive Directors.

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LETTER FROM THE BOARD

Upon the completion of the Proposed Spin-off, except for Dr. Dong who will act as the chairman of the Board and non-executive Director of the Retained Group and the chairman of the board of directors and chief executive officer of the SpinCo Group, there will be no overlapping of directors or senior managers between the SpinCo Group and the Retained Group.

On the above basis, the Company believes that the Board will operate the business of the Retained Group and resolve all actual or potential conflicting matters involving the SpinCo Group's business independently, and equally the SpinCo will operate the business of the SpinCo Group independently and make decisions in the interests of the SpinCo and its shareholders as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8. Clear delineation between the business of the Retained Group and the SpinCo Group

Upon completion of the Proposed Spin-off, the SpinCo Group will carry on the R&D, production, marketing and distribution of power solution products in the Overseas Markets, whilst the Retained Group will continue to carry on the Remaining Businesses.

The Remaining Business and the business of the SpinCo Group are mainly delineated in terms of their target customers, namely, the customers of the Remaining Business are located in Chinese Mainland, Hong Kong and Macau, while the customers of the SpinCo Business are located in EMEA, Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau).

As a result of such clear geographical delineation in terms of the locations of the customers of the SpinCo Group and the Retained Group, there is clear delineation of businesses between the SpinCo Group and the Retained Group in the following aspects:

---

| | | |
|:---|:---|:---|
|  | Remaining Businesses | SpinCo Business |
|  Distribution and marketing channels | The Retained Group will sell its products directly to customers or through distributors in Chinese Mainland, Hong Kong and Macau. The distribution and marketing channels do not overlap between the Retained Group and the SpinCo Group. | The SpinCo Group will sell its products directly to customers or through distributors in EMEA, Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau). The distribution and marketing channels do not overlap between the Retained Group and the SpinCo Group. |

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LETTER FROM THE BOARD

---

| | | |
|:---|:---|:---|
|  | Remaining Businesses | SpinCo Business |
|  Production and manufacturing | The Retained Group has its own production base for production of its products to be sold in Chinese Mainland, Hong Kong and Macau.<br>As of 30 June 2025, the Retained Group owns 11 domestic production plants with 100 production lines and a maximum output of 29.34GWh for battery products and 30,000 tons for lead products. There were 13,188 employees as of 30 June 2025.<br>Note: GWh refers to Gigawatt hour, a unit of energy that represents one billion watt-hours and is equal to one million kilowatt- hours. | The SpinCo Group currently has relatively small number of self-owned production bases for production of its product to be sold in the Overseas Markets, and plans to further increase the production capabilities of these bases and acquire production bases to support its needs for products.<br>As of 30 June 2025, the SpinCo Group owns six production plants, and had three production plants under construction. There were 4,769 employees as of 30 June 2025.<br>As a transitional arrangement, upon completion of the Proposed Spin-off, the SpinCo Group will continue to engage the Retained Group, on a non- exclusive basis, to manufacture batteries products to be sold by the SpinCo Group in the overseas markets, and the SpinCo Group will expand and enhance its manufacturing capability to enable it to function independently from the Retained Group. For details of the proposed transitioning arrangements, please refer to paragraph headed ''2.9.3 Product Procurement Framework Agreement'' below. |

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LETTER FROM THE BOARD

*Independent sales and marketing by geographical regions* 

The Retained Group is engaged in the sales of batteries and recycled lead products in Chinese Mainland, Hong Kong and Macau. As of 30 June 2025, the Retained Group has established local sales companies in different provinces in Chinese Mainland, including 11 production plants, more than 20 sales companies, and more than 100 warehouses to serve local customers. For power solution, the Retained Group provides battery and/or supporting system supporting to communication operators, data centres operators, communication equipment manufacturers, automobiles and low-speed electric vehicles manufactures and other OEMs through direct sales, and vigorously expands the distribution channel sales network in the after-sales market. For recycled lead products, the Retained Group uses them by itself or sells to battery manufacturers through direct sales and to metal trading companies through distributors. Sales promotion channels/methods for the Retained Group include active participation in domestic bidding, industry exhibitions and distributor meetings in various provinces and cities, and domestic social media channels.

The SpinCo Group is engaged in the sales of power solution in the Overseas Markets. The products are sold to more than 160 countries and regions. The SpinCo Group has set up local sales companies in different regions and hired sales persons with knowledge of the local language, customs, environment, policies and local product needs. As of 30 June 2025, the SpinCo Group has established six overseas production plants, with more than 20 overseas sales companies and warehouses in 13 countries to facilitate local customer needs. The SpinCo Group sells to major market players in the industry such as communication operators, data centres operators and communication equipment manufacturers through direct sales under the brand of Leoch or to other OEMs. Meanwhile, the SpinCo Group sells products to large regional traders through distribution for further sales to small and medium-sized customers. The sales promotion channel/methods for the SpinCo Group include active participation in overseas bidding, influential global exhibitions, and overseas social media channels.

As such, the SpinCo Group and the Retained Group market their products to customers independently from each other and each has their own sales force.

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LETTER FROM THE BOARD

*Clear geographical delineation* 

As explained above, the Remaining Businesses are substantially distinct from and independent from the SpinCo Businesses in terms of geographical delineation. The Company believes that there will not be any noticeable competing business between the operations of the SpinCo Group and the Retained Group due to the clear geographical delineation in the sales and distribution of products by the Retained Group and the SpinCo Group.

Upon completion of the Proposed Spin-off, the sales of products by the SpinCo Group will focus on the Overseas Markets, whilst the Retained Group will focus on Chinese Mainland, Hong Kong and Macau.

Each of the Retained Group and the SpinCo Group will set up internal control policies to manage product sales and to procure that their respective products should only be distributed in predetermined geographical locations to minimize the risk of parallel importing. Each of the Retained Group and the SpinCo Group sells their products to both local direct sale customers and distributors. The direct sale customers are local customers who use these products for their self-manufacture or operation purpose, while distributors will typically sell their products to other local end customers. The Retained Group and the SpinCo Group will regularly communicate with and procure their respective distributors to further sell the products in the designated regions (in Chinese Mainland, Hong Kong or Macau, or in EMEA, Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau)) to minimize risk of parallel importing. In addition, both the Retained Group and the SpinCo Group will only engage new customers within their respective sales regions.

Accordingly, it is believed that there is clear delineation between the Retained Group and the SpinCo Group in terms of geographical division.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9. Operational Independence

The SpinCo Group has its own organizational structure with independent function (for example financial, human resources and legal and compliance functions), each with specific areas of responsibility carrying out essential administrative functions without the Retained Group's support. It has a set of internal control procedures to facilitate the effective operation of its business. The SpinCo Group and the Retained Group have their respective trademarks, patents and other intellectual property rights material to their business operations.

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.9.1* *Continuing Connected Transactions* 

Historically, the SpinCo Group maintained a close business relationship with the Retained Group. It is currently expected that after the completion of the Proposed Spin-off, the SpinCo Group will continue to have various transactions with the Retained Group, which will constitute continuing connected transactions of the Company. Each of these continuing connected transactions will be conducted on an arm's length basis and on normal commercial terms in the ordinary and usual course of business of each of the SpinCo Group and the Retained Group pursuant to the applicable laws and regulations.

---

| | | |
|:---|:---|:---|
| No. | Category | Nature |
| 1. | Brand Licensing Framework Agreement | The Retained Group will grant the SpinCo Group the exclusive rights to develop, produce and sell products under the brands of ![LOGO](g760217g1215180520582.jpg) , ![LOGO](g760217g1215180520880.jpg) and ![LOGO](g760217g1215180521147.jpg) (the ''Licensing Brands'') in the Overseas Markets and charge the SpinCo Group royalties from for such licensing arrangement. |
| 2. | Product Procurement Framework Agreement | The SpinCo Group will procure finished power solution from the Retained Group, and the Retained Group will continue to manufacture and sell finished power solution to the SpinCo Group for its sales in the Overseas Markets and charge the purchase amount plus a mark-up rate. |

---

Upon completion of the Proposed Spin-off, the SpinCo Group will be controlled by Dr. Dong Li, our Controlling Shareholders. As such, the SpinCo Group will constitute a connected person of the Retained Group under Chapter 14A of the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.9.2* *Brand Licensing Framework Agreement* 

Upon completion of the Proposed Spin-off, the Retained Group will enter into the Brand Licensing Framework Agreement with the SpinCo Group, pursuant to which the Retained Group will grant to the SpinCo Group the exclusive rights to develop, produce, and sell products under the Licensing Brands in the Overseas Markets. The initial term of the Brand Licensing Framework Agreement is expected to be ten years commencing on the SpinCo Listing Date, subject to renewal upon parties' agreement, which is determined after arm's length negotiation with reference to the actual needs of the SpinCo Group.

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LETTER FROM THE BOARD

The licensing arrangement will enable the Retained Group to benefit from the SpinCo Group's use of and development of reputation for the brand on its products offered to the Overseas Markets and therefore enhancing the presence of the Licensing Brands, brand recognition, and market penetration in these markets, which will in turn enable the Retained Group to leverage the local strength of the Licensing Brands (and brands of products) in these markets and capitalize on a stronger global brand to further entrench and grow its position in the Chinese Mainland, Hong Kong and Macau, creating a reinforcing ''halo effect'' for all geographical markets in which the Licensing Brands are present. In addition, the Retained Group will also receive more royalties under the Brand Licensing Framework Agreement as the SpinCo Group Business grows.

The licensing arrangement will enable the SpinCo Group to obtain exclusive rights, and would allow it to use the Licensing Brands to develop its business and reputation through distributing products in the Overseas Markets. Meanwhile, the SpinCo Group is also developing its own brands for business operation. The Retained Group is also expected to gradually transfer its overseas trademarks to the SpinCo Group at a consideration to be determined with reference to the valuation of the relevant trademarks assessed. Prior to completion of the transfer mentioned above which may take one to two years to complete, such overseas trademarks will be licensed by the Retained Group to the SpinCo Group under the Brand Licensing Framework Agreement.

The license royalty under the Brand Licensing Framework Agreement to be paid by the SpinCo Group to the Retained Group is currently expected to be RMB6,000,000 per annum, which is determined among the respective parties from time to time on an arm's length basis, and is subject to adjustments from time to time upon arm's length negotiations between the SpinCo Group and the Retained Group with reference to (a) the positioning of the relevant products under the Licensing Brands in the end-market, (b) the duration such products have been present in the relevant market and the product introduction strategy, and (c) such other factors as the Retained Group and the SpinCo Group may deem relevant.

*Listing Rules implications* 

Considering that the highest applicable percentage ratio under Rule 14.07 of the Listing Rules for the royalties payable by the SpinCo Group to the Retained Group is expected to be more than 0.1% but less than 5%, therefore the relevant transactions under the Brand Licensing Framework Agreement are expected to be subject to the applicable reporting and announcement requirements, but exempt from the circular and independent shareholders' approval requirements under Chapter 14A of the Listing Rules.

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LETTER FROM THE BOARD

Pursuant to Rule 14A.52 of the Listing Rules, as the term of the Brand License Framework Agreement exceeds three years, the Company has appointed Lego Corporate Finance Limited to explain why a term longer than three years is required and to confirm that it is a normal business practice for agreements of this type to be of such duration.

Dr. Dong, who will act as the chairman of the Board and non-executive Director of the Retained Group and the chairman of the board of directors and chief executive officer of the SpinCo Group, will abstain from voting at the Board meeting approving the Brand Licensing Framework Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*2.9.3* *Product Procurement Framework Agreement* 

It is expected that the SpinCo Group and the Retained Group will enter into the Product Procurement Framework Agreement with an initial term of two years commencing on the SpinCo Listing Date, pursuant to which the Retained Group would manufacture and provide finished power solution to the SpinCo Group for its further sales in the Overseas Markets, and charge the purchase amount plus a mark-up rate.

For further details of the terms of the Product Procurement Framework Agreement, please refer to the section headed ''3. Product Procurement Framework Agreement'' below in this circular.

*Listing Rules Implications* 

Considering that the highest applicable percentage ratio under Rule 14.07 of the Listing Rules for the service fees payable by the SpinCo Group to the Retained Group will exceed 5%, the relevant transactions under the Product Procurement Framework Agreement will be subject to the announcement, annual review and shareholders' approval requirements under Chapter 14A of the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10. Financial Independence

The SpinCo Group has established its own finance department with a team of independent financial staff responsible for financial management, accounting, reporting, funding and internal control functions, which is independent from the Retained Group.

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LETTER FROM THE BOARD

As of 30 June 2025, the outstanding amount of borrowings and guarantee provided by the SpinCo Group to the Retained Group was RMB47 million, while the outstanding amount of borrowings and guarantee provided by the Retained Group to the SpinCo Group was RMB442 million. The Company has been negotiating with the relevant commercial banks to enter into agreements for purpose of terminating such borrowings and guarantee arrangements, and such termination will take effect upon the listing of the SpinCo. The Company expects to execute such agreements by the end of January 2026. Once the outstanding amount of borrowings and guarantee between the SpinCo Group and the Retained Group are released upon the listing of the SpinCo, both the Retained Group and the SpinCo Group will have sufficient working capital from cash generated from operating activities, independent loans and facilities and respective financing activities.

On the basis stated above, it is believed that the SpinCo Group will be financially independent from the Retained Group after the Proposed Spin-off.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11. Assured Entitlement

In accordance with the requirement of paragraph 3(f) of PN15, the Board proposes to give due regard to the interests of the Company Shareholders by providing them with an assured entitlement to the shares of the SpinCo by way of a full distribution in specie of existing shares of the SpinCo held by the Company, with each of the Company Shareholders to be entitled to a pro rata distribution of all of the Company's shareholding in the SpinCo in proportion to their respective shareholdings in the Company.

The Company does not intend to offer a cash alternative through direct cash payments to the Company Shareholders while retaining shares of the SpinCo (the ''Cash Alternative'') for the following the reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cash Alternative is not in line with the overall objective of the Proposed Spin-off. The overall objective of the Proposed Spin-off is to create a parallel listing structure of the Company and the SpinCo, following which the Company will no
longer hold any interest in the SpinCo, and the SpinCo will be fully demerged from the Company and separately listed on the U.S. Stock Exchange. If the Cash Alternative were to be provided by the Company and for any Company Shareholder who elects
the Cash Alternative, the SpinCo shares that would have been distributed to such Company Shareholder will be retained by the Company. In the extreme case where all Company Shareholders take the Cash Alternative, the Company will need to continue to
hold up to 100% of the SpinCo shares, which does not achieve the overall objective of the Company to pursue the Proposed Spin-off; and

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) providing the Cash Alternative would not be in the best interests of the Company and the Company Shareholders
as a whole. If the Company were to offer the Cash Alternative in terms of the payment of a large amount of cash to the Company Shareholders, in view of the large number of the distribution shares and hence the significant amount of cash payment by
the Company, the Company would either need to utilize a substantial amount of own cash resources and/or take on a substantial financial liability and burden to support such cash payment. This would not be beneficial to Company Shareholders as a
whole as this would limit the resources for future business operation and development of the Company.

The Company considers that the Proposed Spin-off and the Proposed Distribution will be beneficial to the Company, the Company Shareholders and shareholders of the SpinCo as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12. Arrangement for the Proposed Distribution

*Overseas Company Shareholders* 

As of the Latest Practicable Date, Company Shareholders shown on the register of members of the Company included over 1,000 Company Shareholders in Hong Kong. Although there were no Non-Qualifying Company Shareholders as at the Latest Practicable Date, in the event that there are any overseas Company Shareholders as of the Record Date, the Company will make further enquiries regarding the legal restrictions under the laws of the relevant overseas jurisdiction(s) and the requirements of the relevant regulatory body(ies) pursuant to Rule 13.36(2)(a) of the Listing Rules to assess if any overseas Company Shareholders as of the Record Date will be subject to legal restrictions to receive the SpinCo shares. If after making such enquiries and based on legal opinions provided to the Company, the Board is of the opinion that it cannot directly distribute the SpinCo shares to certain overseas Company Shareholders on account either of the legal restrictions under the laws of the relevant jurisdiction(s) or the requirements of the relevant regulatory body(ies), such overseas Company Shareholders will not directly receive the SpinCo shares.

A Company Shareholder with an address outside Hong Kong should also consult his/her/its own professional advisers as to whether or not he/she/it is permitted to receive the SpinCo shares pursuant to the Proposed Distribution or if any governmental or other consent is required or other formalities are required to be observed and whether there are any other restrictions in relation to the future sale of any the SpinCo shares. An overseas Company Shareholder residing in a jurisdiction where it would be illegal for him/her/it to elect for or to receive the SpinCo shares under the Proposed Distribution due to restrictions under the relevant overseas securities laws and regulations will be included in the Non-Qualifying Company Shareholders.

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LETTER FROM THE BOARD

*Arrangements for Qualifying Company Shareholders and Non-qualifying Company Shareholders*

The following arrangements for the Proposed Distribution for the Company Shareholders, in connection with the Proposed Spin-off, have been proposed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Qualifying Company Shareholders will receive the SpinCo shares on a pro rata basis on the SpinCo Listing Date.
If the Qualifying Company Shareholders own SpinCo shares beneficially through a CCASS nominee, arrangements will be made for the SpinCo shares to be distributed to CCASS and transfer the SpinCo shares to Qualifying Company Shareholders'
broker's account in the Depository Trust Company (''DTC''). In case broker of the Qualifying Company Shareholders at CCASS does not have a DTC account for trading of SpinCo shares, at their request, the Company shall
provide assistance to the the Qualifying Company Shareholders by referencing a broker with DTC account for trading of shares on the U.S. Stock Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to the Non-Qualifying Company Shareholders, the Company
will facilitate the sale of the SpinCo shares that would otherwise be directly distributed to the Non-Qualifying Company Shareholders on a pro rata basis within 90 days of the Proposed Listing shares on the
U.S. stock market, and the sale proceeds will be paid to the Non-Qualifying Shareholders net of the fees and expenses occurred for the sale of the shares of the Non-Qualifying Company Shareholders on the U.S. stock market. Details of the above arrangement will be further announcement by the Company if there is any Non-qualifying Company Shareholders on the record date.

The Company will make further announcement(s) relating to the detailed arrangement for the Proposed Distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13. Listing Rules Implications

As described in the paragraph headed ''2.11. Assured Entitlement'', the Proposed Spin- off will be conducted through a distribution in specie of all of the Company's shares held in the SpinCo to the Company Shareholders in the form of the Proposed Distribution. Prior to the Proposed Spin-off and the Proposed Distribution, the SpinCo is a wholly-owned subsidiary of the Company. Following the completion of the Proposed Spin-off and the Proposed Distribution, the SpinCo will be demerged from the Company, resulting in a parallel listing structure of the Company and the SpinCo, and the Company Shareholders will be entitled to shares in both the Company and the SpinCo.

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LETTER FROM THE BOARD

Although the Proposed Spin-off and the Proposed Distribution do not constitute a transaction under Chapter 14 of the Listing Rules, Article 141 of the Articles of the Company provide that whenever the Board or the Company in general meeting has resolved that a dividend be paid or declared, the Board may further resolve that such dividend be satisfied wholly or in part by the distribution of specific assets of any kind. In addition, considering the size of the asset which is subject to the Proposed Spin-off and the Proposed Distribution, the Board will present the Proposed Spin-off and the Proposed Distribution to the Company Shareholders at the EGM for consideration and, if thought fit, approval by way of an ordinary resolution.

To the best of the knowledge, information and belief of the Directors, having made all reasonable enquiries, no Shareholder has a material interest in the Proposed Spin-off and the Proposed Distribution. As such, no Shareholder is required to abstain from voting on the EGM resolution approving the Proposed Spin-off and the Proposed Distribution.

The Proposed Spin-off and the Proposed Distribution are subject to, among other things, the approval of the Company Shareholders, the approvals from the relevant U.S. authorities in respect of the listing of, and permission to deal in, securities of the SpinCo, the final decision of the Directors, the board of directors of the SpinCo, as well as market conditions and other relevant considerations. Accordingly, the Company Shareholders and potential investors should be aware that there is no assurance that the Proposed Spin-off and the Proposed Distribution will take place or when they will take place. The Company Shareholders and potential investors should exercise caution when dealing in the securities of the Company.

3. PRODUCT PROCUREMENT FRAMEWORK AGREEMENT

As detailed above, it is contemplated that during a transitional period commencing from the completion of the Proposed Spin-off, the SpinCo Group will continue to procure finished power solution from the Retained Group, and the Retained Group will continue to manufacture and sell finished power solution to the SpinCo Group for its sales in the Overseas Markets, which will constitute continuing connected transactions between the Retained Group and the SpinCo Group upon completion of the Proposed Spin-off.

Set out below are the principal terms of the Product Procurement Framework Agreement:

Date of Agreement

10 December 2025

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LETTER FROM THE BOARD

Parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Seller: The Retained Group

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Buyer: The SpinCo Group

Term

The Product Procurement Framework Agreement has an initial term of two years commencing on the SpinCo Listing Date, subject to the Independent Company Shareholders' approval at the EGM. The Product Procurement Framework Agreement is expected to be entered into as a transitional arrangement between the Retained Group and the SpinCo Group while the SpinCo ramps up its own manufacturing capabilities upon completion of the Proposed Spin-off.

Reasons and benefits for the Product Procurement Framework Agreement

The Retained Group has been providing finished power solution to the SpinCo Group for its sales in the Overseas Markets since 2001, which was in line with the industry norm. Owing to the long term historical cooperation, the Retained Group has acquired comprehensive understanding of the SpinCo Group's business and operational requirements and established a great foundation for mutual trust, and therefore can well understand the technical standards of SpinCo Group's products based on their cooperative experience with the Retained Group, and provide power solution of the required quality and standard within the timeframe stipulated by the SpinCo Group. In light of the above, the Retained Group are well positioned to accommodate to the needs of the SpinCo Group and offer more tailored services with greater efficiency and flexibility in terms of supply chain management, inventory control and delivery cycle. These give the Retained Group a competitive edge over the other OEMs in its provisions of finished power solution to the SpinCo Group. If the SpinCo Group were to source power solution from other OEM(s), it would take additional time and resources for the SpinCo Group to identify suitable OEM(s) with requisite capability on fulfilment of customers' preference on shapes, plates and accessories of power solution. The SpinCo Group will also need to conduct additional product quality examination on these OEMs and obtain customers' consents on any changes of products resulted from engaging new OEMs. Such process would potentially incur substantial costs which is otherwise not economically beneficial to the SpinCo Group, and may prolong the product delivery timeline and therefore prejudice the SpinCo Group's customer satisfaction.

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LETTER FROM THE BOARD

As of the current stage, the sourcing service provided to the SpinCo allows the SpinCo to remain competitive by leveraging the economies of scale of the Retained Group's manufacturing capabilities for mass production of power solution at a lower cost compared to the SpinCo sourcing such products and services on its own. This in turn enables the SpinCo Group to meet customer needs in the Overseas Markets at a more competitive pricing and cost-effective manner whilst allowing time for the SpinCo Group to gradually ramps up its own manufacturing and production capacity during the transitional period upon completion of the Proposed Spin-off.

As for the Retained Group, with the added benefit of having a good understanding of the operational flow of the SpinCo and a strong business relationship between the SpinCo and the Retained Group built over the years, the Retained Group is well-placed to supply power solution to the SpinCo Group during the transitional period upon completion of the Proposed Spin-off. The arrangement under the Product Procurement Framework Agreement is advantageous for the Retained Group as it provides the Retained Group with a stable source of income and recurring revenue streams (albeit in a decreasing trend) through the provisions of finished power solution to the SpinCo Group.

Pricing Policies

The SpinCo Group will pay to the Retained Group purchase fees, being the cost amount of the Retained Group with a mark-up rate of approximately 10% to 25%, under the Product Procurement Framework Agreement. Such mark-up rate for the purchase fees is determined by the Retained Group and the SpinCo Group on an arm's length basis, with reference to (i) the ascribed mark-up rates as reflected in the financials of the SpinCo Group (which have been prepared on a pro forma basis as if the SpinCo Group has been separated from the Retained Group throughout the financial years of 2022 to 2024) for the purchase of power solution from the Retained Group; (ii) the cost and expense for the Retained Group for manufacturing these products; and (iii) the price at which the same type of products is sold by the Retained Group to independent third parties on normal commercial terms in the ordinary course of business in the PRC, or on terms which are of no less favourable to the Retained Group than terms available to other independent third parties who are willing to order similar quantity under similar conditions.

Historical amount

For the three years ended 31 December 2022, 2023 and 2024, and the six months ended 30 June 2025, the transaction amount for SpinCo Group's procurement of batteries products from the Retained Group were RMB2,533.2 million, RMB2,678.7 million, RMB3,477.5 million and RMB2,153 million, respectively.

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LETTER FROM THE BOARD

Proposed annual caps and basis of determination

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | From the<br>SpinCo Listing<br>Date until<br>31 December<br>2026 | From the<br>SpinCo Listing<br>Date until<br>31 December<br>2026 | For the<br> year ending<br>31 December<br>2027 | For the<br> year ending<br>31 December<br>2027 |
|  | | | (RMB million) | (RMB million) |
|  Annual caps |  | 800 |  | 400 |

---

The annual caps for the Product Procurement Framework Agreement are principally determined based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the expected business development of the SpinCo Group and the historical transaction amounts between the SpinCo
Group and the Retained Group with respect to the procurement arrangement. The transaction amount for SpinCo Group's procurement of batteries products from the Retained Group increased from RMB2.7 billion in 2023 to RMB3.5 billion in
2024. This is because the revenue of the Company increased significantly from 2023 to 2024, which was largely attributable to the revenues increase from the sale SLI batteries driven by higher sales of high-end products, improved delivery capabilities, and the continued expansion of automobile aftermarket services. However, due to the inherent lead time required for SpinCo's capacity expansion, the
growth in SpinCo's production capacity has lagged behind its revenue growth. To ensure timely order fulfillment, the SpinCo has increased its procurement volume of finished power solution from Retain Group under the Product Procurement
Framework Agreement. In addition, the value of product demand of the SpinCo Group had shown an increasing trend along with its expected business development, with an increase of approximately 25% from 2023 to 2024, and such trend is expected to
continue for the three years ending December 31, 2027; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the expected decline in the transaction amount of products to be procured by the SpinCo Group from the Retained
Group under the Product Procurement Framework Agreement alongside the SpinCo Group's gearing up of its capabilities to conduct production activities independently upon completion of the Proposed Spin-off. It is currently expected that by the end of 2028, the SpinCo Group's own production capacity will be able to meet the vast majority of its internal demand. Specifically, the production capacity
of the nine factories of the SpinCo Group by the end of 2025 will increase gradually in the next three years from 2026 to 2028, while the SpinCo Group is currently expected to have a new factory in the 2027 to further increase its production
facilities, reducing the transaction amount of products to be procured by the SpinCo Group from the Retained Group under the Product Procurement Framework Agreement to an immaterial amount.

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LETTER FROM THE BOARD

Having considered the factors set out above, the Directors are of the view that the proposed annual caps for the Product Procurement Framework Agreement are fair and reasonable.

Internal control measures

The Company has adopted the following internal control measures to ensure that the transactions contemplated under each of the Product Procurement Framework Agreement and the Brand Licensing Framework Agreement are on normal commercial terms and in the interests of the Company and the Shareholders as a whole:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company has adopted and implemented a management system on connected transactions. Under such system, the
audit committee is responsible for conducting reviews on compliance with relevant laws, regulations, the Company's policies and the Listing Rules in respect of the connected transactions. In addition, the audit committee, the Board and the
Sales Department of the Company are jointly responsible for evaluating the terms under the framework agreements for connected transactions, in particular, with respect to the fairness of the pricing policies and annual cap under each agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the audit committee, the Board, the Finance Department and the Sales Department of the Company also regularly
monitor the fulfillment status and the transaction updates under the agreements. Specifically, the Finance Department of the Company will inform the Sales Department of the Company the amounts of the annual caps under the framework agreements and
conduct monthly review of the actual transaction amounts to ensure that the annual caps are not exceeded. In addition, the management of the Company, including each of the sales director, finance manager and finance director, also need to approve
the pricing terms and regularly reviews the pricing policies of the agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company's independent non-executive Directors and auditors
will conduct annual reviews of the continuing connected transactions under the framework agreements and provide annual confirmations to ensure that, pursuant to Rules 14A.55 and 14A.56 of the Listing Rules, the transactions are conducted in
accordance with the terms of the agreements, on normal commercial terms and in accordance with the relevant pricing policies;

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) when considering fees for the products and services to be charged by the Group to the connected persons or by
the connected persons to the Group, the Group will constantly research prevailing market conditions and practices and make reference to the pricing and terms between the Group and independent third parties for similar transactions, and the Sales
Department of the Company will regularly review the corresponding price of the comparable power solution of the Retained Group offered to all customers, to ensure that the pricing and terms offered by the connected persons from mutual commercial
negotiations (as the case may be) are fair, reasonable and are no less favorable than those to be offered by independent third parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) when considering any renewal or revisions to the framework agreements, the interested Directors and
Shareholders shall abstain from voting on the resolutions to approve such transactions at board meetings or shareholders' general meetings (as the case may be), and the independent non-executive Directors and Independent Shareholders have the right to consider if the terms of the non- exempt continuing connected transactions (including the proposed annual cap) are fair and reasonable, on normal
commercial terms and in the interests of the Company and the Shareholders as a whole. If the independent non-executive Directors' or independent Shareholders' approvals cannot be obtained, the
Company will not continue the transactions under the framework agreement(s) to the extent that they constitute non-exempt continuing connected transactions under the Listing Rules.

Listing Rules Implications

Upon completion of the Proposed Spin-off and the Proposed Distribution, the SpinCo Group will be a connected person of the Retained Group given Dr. Dong, the Chairman of the Board and an executive Director, who through Master Alliance, will hold more than 70% interest in each of the SpinCo Group and the Retained Group. Accordingly, the Product Procurement Framework Agreement will constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules upon completion of the Proposed Spin- off.

As the highest applicable percentage ratio as set out in Rule 14.07 of the Listing Rules in respect of the Product Procurement Framework Agreement would be more than 5%, the transactions contemplated under the Product Procurement Framework Agreement are subject to the reporting, announcement, circular and independent shareholders' approval requirements under Chapter 14A of the Listing Rules.

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. EGM

The EGM will be held at 10:00 a.m. on 7 January 2026 at Unit C, 33/F., TML Tower, No. 3 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong, to consider and, if thought fit, approve, among other matters, the Proposed Spin-off, the Proposed Distribution and the Product Procurement Framework Agreement.

Whether or not you are able to attend the EGM, you are requested to complete the accompanying form of proxy in accordance with the instructions printed thereon and return the same to the Company's branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limited at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong as soon as possible but in any event not less than 48 hours before the time appointed for holding the EGM or any adjourned meeting (as the case may be). Completion and return of the form of proxy will not preclude you from attending and voting in person at the meeting or any adjourned meeting (as the case may be) should you so wish.

Pursuant to Rule 13.39(4) of the Listing Rules, all votes of the Company Shareholders at the EGM must be taken by poll. The chairman of the EGM will demand a poll for the resolution to be proposed at the EGM in accordance with the Articles. The results of the voting will be announced in accordance with Rule 2.07C of the Listing Rules after conclusion of the EGM.

Dr. Dong and his associates (including Master Alliance) shall abstain from voting on the relevant resolutions approving the Product Procurement Framework Agreement and the transactions contemplated thereunder at the EGM. Save as disclosed above and as of the Latest Practicable Date, no Shareholders, to the knowledge and belief of the Directors having made all reasonable enquiries, will be required to abstain from voting at the EGM on relevant resolutions.

Given the interest of Dr. Dong in the Product Procurement Framework Agreement, Dr. Dong abstained from voting at the Board meeting approving the Product Procurement Framework Agreement. Save as disclosed above, none of the Directors have any material interest in the Product Procurement Framework Agreement and none were required to abstain from voting on the relevant Board resolution.

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LETTER FROM THE BOARD

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. RECOMMENDATION

Your attention is drawn to the letter from the Independent Board Committee set out on pages 33 to 34 of this circular.

The Directors (excluding the independent non-executive Directors whose views are set out in the letter from the Independent Board Committee in this circular) are of the view that the proposals on the Proposed Spin-off and the Proposed Distribution, and the Product Procurement Framework Agreement are fair and reasonable so far as the Shareholders are concerned and in the interests of the Company and the Shareholders as a whole.

An Independent Board Committee has been formed to advise (i) the Company Shareholders in connection with the Proposed Spin-off and the Proposed Distribution; and (ii) the Independent Company Shareholders in connection with the Product Procurement Framework Agreement.

The Independent Board Committee considers that the terms of the Proposed Spin-off and the Proposed Distribution, and the transactions contemplated under the Product Procurement Framework Agreement are fair and reasonable and are in the interests of the Company and the Company Shareholders as a whole. Accordingly, the Independent Board Committee recommends that (i) the Company Shareholders vote in favour of the relevant resolution to approve the Proposed Spin-off and the Proposed Distribution; and (ii) the Independent Company Shareholders vote in favour of the relevant resolution to approve the transactions contemplated under the Product Procurement Framework Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ADDITIONAL INFORMATION

This circular is being distributed to the Company Shareholders. This circular does not constitute an offer or invitation to subscribe for or purchase any securities nor is it calculated to invite any such offer or invitation. Neither this circular nor anything contained herein shall form the basis of any contract or commitment whatsoever.

Your attention is also drawn to the additional information set out in the appendices to this circular.

Yours faithfully,

By Order of the Board

Leoch International Technology Limited

Dr. Dong Li

*Chairman*

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LETTER FROM THE INDEPENDENT BOARD COMMITTEE

![LOGO](g760217g1215180520044.jpg)

**Leoch International Technology Limited** 

理士國際技術有限公司

*(Incorporated in the Cayman Islands with limited liability)* 

**(Stock Code: 842)** 

Hong Kong, 15 December 2025

*To the Company Shareholders* 

Dear Sir or Madam,

(1) THE PROPOSED SPIN-OFF AND THE PROPOSED DISTRIBUTION;

(2) CONTINUING CONNECTED TRANSACTIONS IN RELATION TO THE PRODUCT PROCUREMENT FRAMEWORK AGREEMENT;

AND

(3) NOTICE OF THE EXTRAORDINARY GENERAL MEETING

We refer to the circular dated 15 December 2025 issued by the Company to the Company Shareholders (the ''Circular'') of which this letter forms part. Terms defined in the Circular shall have the same meanings when used in this letter, unless the context otherwise requires.

We have been appointed by the Board as members of the Independent Board Committee to advise (i) the Company Shareholders on whether the terms of the Proposed Spin-off and the Proposed Distribution are fair and reasonable so far as the Company Shareholders are concerned and are in the interests of the Company and the Company Shareholders as a whole; and (ii) the Independent Company Shareholders on whether the terms of the Product Procurement Framework Agreement are fair and reasonable so far as the Independent Company Shareholders are concerned and are in the interests of the Company and the Independent Company Shareholders as a whole.

We are of the view that the terms of the Proposed Spin-off and the Proposed Distribution are fair and reasonable and in the interests of the Company and the Company Shareholders as a whole.

In addition, having considered the terms of the Product Procurement Framework Agreement and the advice of the Independent Financial Adviser in relation thereto as set out on pages 35 to 46 of the Circular, we are of the view that the terms of the Product Procurement Framework Agreement are fair and reasonable, on normal commercial terms and in the interests of the Company and the Shareholders as a whole, and the transactions contemplated thereunder are in the ordinary and usual course of business of the Group.

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LETTER FROM THE INDEPENDENT BOARD COMMITTEE

Accordingly, we recommend (i) the Company Shareholders to vote in favour of the ordinary resolutions regarding the Proposed Spin-off and the Proposed Distribution; and (ii) the Independent Company Shareholders to vote in favour of the ordinary resolutions regarding the Product Procurement Framework Agreement as set out in the notice of the EGM.

Yours faithfully,

For and on behalf of the Independent Board Committee

Mr. Cao Yixiong Alan Mr. Lau Chi Kit Mr. Lu Zhiqiang

*Independent non-executive Directors* 

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

*Set out below is the text of a letter received from Lego Corporate Finance Limited, the Independent Financial Adviser to the Independent Board Committee and the Independent Company Shareholders in respect of the Product Procurement Framework Agreement for the purpose of inclusion in this circular.*![LOGO](g760217g74w87.jpg)

15 December 2025

*To the Independent Board Committee and the Independent Company Shareholders* 

Dear Sirs or Madams,

CONTINUING CONNECTED TRANSACTIONS

IN RELATION TO THE

PRODUCT PROCUREMENT FRAMEWORK AGREEMENT

INTRODUCTION

We refer to our appointment as the Independent Financial Adviser to the Independent Board Committee and the Independent Company Shareholders in respect of the terms of the Product Procurement Framework Agreement, details of which are set out in the ''Letter from the Board'' (the ''Letter from the Board'') contained in the circular issued by the Company to the Shareholders dated 15 December 2025 (the ''Circular''), of which this letter forms part. Terms used in this letter shall have the same meanings as defined in the Circular unless the context otherwise requires.

According to the Letter from the Board, it is expected that the SpinCo Group and the Retained Group will enter into the Product Procurement Framework Agreement with an initial term of two years commencing on the SpinCo Listing Date, pursuant to which the Retained Group would manufacture and provide finished power solution to the SpinCo Group for its further sales in the Overseas Markets.

Upon completion of the Proposed Spin-off and the Proposed Distribution, the SpinCo Group will be a connected person of the Retained Group given Dr. Dong, the Chairman of the Board and an executive Director, who through Master Alliance, will hold more than 70% interest in each of the SpinCo Group and the Retained Group. Accordingly, the Product Procurement Framework Agreement will constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules upon completion of the Proposed Spin-off.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

As the highest applicable percentage ratio as set out in Rule 14.07 of the Listing Rules in respect of the Product Procurement Framework Agreement would be more than 5%, the transactions contemplated under the Product Procurement Framework Agreement are subject to the reporting, announcement, circular and independent shareholders' approval requirements under Chapter 14A of the Listing Rules.

The EGM will be held to consider and, if thought fit, approve, among other matters, the Product Procurement Framework Agreement. The Independent Board Committee has been formed to advise the Independent Company Shareholders in connection with the Product Procurement Framework Agreement.

OUR INDEPENDENCE

As at the Latest Practicable Date, Lego Corporate Finance Limited did not have any relationships or interests with the Company or the SpinCo or any of their respective substantial shareholders, directors or chief executives, or any of their respective associates that could reasonably be regarded as relevant to the independence of Lego Corporate Finance Limited. In the last two years, save for the engagements in connection with the Product Procurement Framework Agreement and the Brand Licensing Framework Agreement pursuant to Rule 14A.52 of the Listing Rules, details of which are set out in the sub-section headed "2.9.2 Brand Licensing Framework Agreement" in the Letter from the Board, there was no engagement between the Group and Lego Corporate Finance Limited. As at the Latest Practicable Date, apart from normal professional fees paid or payable to us in connection with the above-mentioned engagements, no arrangements existed whereby we had received or would receive any fees or benefits from the Company or the SpinCo. Accordingly, we are qualified to give independent advice in respect of the Product Procurement Framework Agreement.

BASIS OF OUR OPINION

In formulating our opinion and advice, we have relied on (i) the information and facts contained or referred to in the Circular; (ii) the information supplied by the Group and its advisers; (iii) the opinions expressed by and the representations of the Directors and the management of the Group (the ''Management''); and (iv) our review of the relevant public information. We have assumed that all the information provided and representations and opinions expressed to us or contained or referred to in the Circular were true, accurate and complete in all respects as at the date thereof and may be relied upon. We have also assumed that all statements contained and representations made or referred to in the Circular were true at the time they were made and have continued to be true as at the date of the Circular and all such statements of belief, opinions and intention of the Directors and the Management and those as set out or referred to in the Circular were reasonably made after due and careful enquiry. We have no reason to doubt the truthfulness, accuracy and completeness of the information and representations provided to us by the Directors and/or the Management. We have also sought and received confirmation from the Directors that no material facts have been withheld or omitted from the information provided and referred to in the Circular and that all information or

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

representations provided to us by the Directors and the Management were true, accurate, complete and not misleading in all material respects at the time they were made and have continued to be so until the date of the Circular.

We consider that we have reviewed the relevant information currently available to reach an informed view and to justify our reliance on the accuracy of the information contained in the Circular so as to provide a reasonable basis for our recommendation. We have not, however, carried out any independent verification of the information provided, representations made or opinion expressed by the Directors and the Management, nor have we conducted any form of in- depth investigation into the business, affairs, operations, financial position or future prospects of the Company or SpinCo or any of their respective associates.

PRINCIPAL FACTORS AND REASONS CONSIDERED

In arriving at our recommendation, we have taken into consideration the following principal factors and reasons:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Reasons for and benefits of entering into the Product Procurement Framework Agreement

As of the Latest Practicable Date, the Group was primarily engaged in (i) power solutions business categorised into three major categories: (a) network power batteries, including Telecom and UPS batteries which are widely used in communications networks and data centers at all levels to provide a key guarantee for the normal operation of communication networks and other reserve power batteries; (b) SLI batteries, which are used for the starting-and-stop, lightening and ignition (SLI) of automobiles, motorcycles and ships; and (c) motive power batteries, which are mainly used in electric bicycles, electric tricycles, low-speed electric cars, golf carts and sightseeing carts; and (ii) sales of recycled lead products business. For the three years ended 31 December 2024, the revenue of the Group generated by the above two major business segments from customers principally located in Chinese Mainland, Hong Kong, Macau, EMEA, Americas and Asia-Pacific (other than Chinese Mainland, Hong Kong and Macau). Upon completion of the Proposed Spin-off and the Proposed Distribution, both the Retained Group and the SpinCo Group will be primarily engaged in the production and sales of the power solution products while targeting different customers in terms of geographical locations, whereby the Retained Group will continue to operate its power solution business and sales of recycled lead products business in Chinese Mainland, Hong Kong and Macau, whereas the SpinCo Group will continue to operate its power solution business in the Overseas Markets.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

Prior to completion of the Proposed Spin-off, the Retained Group has been maintaining a solid production base for production of its products, with 11 domestic production plants with 100 production lines and a maximum output of 29.34GWh for battery products and 30,000 tons for lead products as at 30 June 2025, and the SpinCo Group has been sourcing finished power solution from the Retained Group for its sales in the Overseas Markets since 2001. Upon completion of the Proposed Spin-off, considering the relatively low current production capabilities of the SpinCo Group which is insufficient to meet its customers' demand, notwithstanding that the SpinCo Group is planning to increase its production capabilities of such bases and acquire production bases to support its needs for products in the future, the entering into of the Product Procurement Framework Agreement allows the SpinCo Group to leverage on the established manufacturing capability of the Retained Group and secure a stable source of power solution for carrying out its ordinary and usual course of business during the transitional period, alongside the gradual expansion of the manufacturing and production capacity of the SpinCo Group.

Furthermore, over the long-term business historical cooperation, the Retained Group has acquired a comprehensive understanding of the SpinCo Group's business and operational requirements, and is thus well-positioned to accommodate the needs of the SpinCo Group for power solution and offer more tailed services with greater efficiency and flexibility. Accordingly, the entering into of the Product Procurement Framework Agreement would, on one hand, provide the Retained Group with a secured source of income from supplying power solution to the SpinCo Group and, on the other hand, allow the SpinCo Group to remain competitive by leveraging the economies of scale of the Retained Group's manufacturing capabilities for mass production of power solution at a lower cost compared to the SpinCo sourcing such products and services on its own, which is beneficial to the Retained Group and the SpinCo Group.

In light of the above, we are of the view that the entering into of the Product Procurement Framework Agreement is in the ordinary and usual course of business of the Group and in the interests of the Group and the Independent Company Shareholders as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Principal terms of the Product Procurement Framework Agreement

It is expected that the SpinCo Group and the Retained Group will enter into the Product Procurement Framework Agreement with an initial term of two years commencing on the SpinCo Listing Date, pursuant to which the SpinCo Group will continue to procure finished power solution from the Retained Group, and the Retained Group will continue to manufacture and sell finished power solution to the SpinCo Group for its further sales in the Overseas Markets.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

As disclosed in the Letter from the Board, among others, the prices to be charged by the Retained Group to the SpinCo Group shall be the cost amount of the Retained Group with a mark-up rate of approximately 10% to 25% (the ''Proposed Mark-up Range''), which shall be determined by the Retained Group and the SpinCo Group on an arm's length basis with reference to, among others, the price at which the same type of products is sold by the Retained Group to independent third parties or on terms which are of no less favourable to the Retained Group than those made available to the independent third parties who are willing to order similar quantity under similar conditions. As confirmed by the Management, the mark-up rate to be charged to the SpinCo Group under the Product Procurement Framework Agreement in any case shall be no less favourable to the Retained Group than the mark-up rate recently charged by the Retained Group to the independent customers in respect of sales of power solution with comparable aspects, and a series of internal control measures will be implemented by the Retained Group in order to govern the above.

In assessing the fairness and reasonableness of the pricing terms of the Product Procurement Framework Agreement, we have primarily considered the internal control measures adopted by the Retained Group in respect of the transactions contemplated under the Product Procurement Framework Agreement. As stated in the Letter from the Board, among others, the sales department of the Company will regularly review the corresponding price of the comparable power solution of the Retained Group offered to all customers to ensure that the pricing charged to the SpinCo Group under the Product Procurement Framework Agreement is no less favourable to the Group than those offered by the Retained Group to the independent third parties in respect of power solution with comparable aspects. Also, we noted that a multi-tiered approval system will be adopted by the Retained Group such that the pricing to be charged under the Product Procurement Framework Agreement shall be subject to the approval by each of the sales director, finance manager and finance director of the Retained Group, thereby preventing any personnel from gaining complete control over the pricing and approval processes and reducing the risks of frauds and errors. In addition, other internal control measures have been implemented by the Retained Group to govern the conduct of the transactions contemplated under the Product Procurement Framework Agreement, including but not limited to the regular monitoring of the fulfillment status and transaction updates by the audit committee, the Board, and the finance department and the sales department of the Company, as well as the annual review of the transactions by the auditors of the Company and the independent non-executive Directors. For further details on the internal control measures to be adopted by the Retained Group, please refer to the sub-section headed ''3. PRODUCT PROCUREMENT FRAMEWORK AGREEMENT – Internal control measures'' of the Letter from the Board.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

Considering that the historical transactions conducted by the Retained Group with the SpinCo Group in relation to the sale of power solution prior to completion of the Proposed Spin-off were intra-group transactions, which did not constitute continuing connected transactions pursuant to Chapter 14A of the Listing Rules and accordingly were not subject to the requirements thereunder, we are of the view that the pricing policy previously adopted for such historical transactions is not directly relevant to our assessment regarding the transactions to be conducted under the Product Procurement Framework Agreement. Nevertheless, for reference purpose, we have reviewed a total of 18 sets of invoices and/or sales order documents (the ''Independent Sample Documents'') issued by the Retained Group to the independent customers for the transactions with the top two transaction amounts during each of the first nine months of 2025 (the ''Review Period'') in respect of the sales of power solutions with aspects comparable to those under the Product Procurement Framework Agreement. Despite that the aggregate transaction amount underlying the Independent Sample Documents accounts for less than 1% of the aggregate transaction amount conducted between the Retained Group and independent customers in respect of sales of comparable power solutions during the Review Period, taking into account (i) the relatively small transaction amounts of the individual sales orders; (ii) the Independent Sample Documents capture the two most representative comparable transactions in terms of transaction amounts conducted between the Retained Group and independent customers for each consecutive month during the Review Period; (iii) the Review Period covers the first nine months of 2025, which in our view represents a recent and fair period to reflect the Retained Group's prevailing business practice in its ordinary and usual course of business with independent customers; and (iv) the power solutions sold by the Retained Group under the Independent Sample Documents are generally comparable in nature to those to be provided by the Retained Group to the SpinCo Group under the Product Procurement Framework Agreement, we consider that the selection of the Independent Sample Documents is fair and reasonable. Based on our review, the Proposed Mark-up Range is in line with the underlying mark-up rates of the Independent Sample Documents (the ''Sample Mark-up Rates'').

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

Accordingly, taking into account (i) that the mark-up rate to be charged to the SpinCo Group under the Product Procurement Framework Agreement in any case shall be no less favourable to the Retained Group than the mark-up rate recently charged by the Retained Group to the independent customers in respect of sales of power solution with comparable aspects; (ii) that internal control measures will be adopted by the Retained Group to govern the conduct of the transactions under the Product Procurement Framework Agreement and safeguard the interests of the Independent Company Shareholders, in particular, the sales department of the Company will regularly review the corresponding price list of the comparable power solution of the Retained Group offered to all customers to ensure that the pricing charged to the SpinCo Group under the Product Procurement Framework Agreement is no less favourable to the Group than those offered by the Retained Group to the independent third parties in respect of power solution with comparable aspects; and (iii) the Proposed Mark-up Range is in line with the Sample Mark-up Rates, we are of the view that the terms of the Product Procurement Framework Agreement are on normal commercial terms and fair and reasonable so far as the Independent Company Shareholders are concerned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The proposed annual caps for the transactions to be contemplated under the Product Procurement Framework
Agreement (the ''Proposed Annual Caps'')

Set out below are the historical transaction amounts for the three years ended 31 December 2022, 2023 and 2024 and the six months ended 30 June 2025, and the Proposed Annual Caps from the SpinCo Listing Date until 31 December 2026 and the year ending 31 December 2027, respectively:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Historical transaction amounts | Historical transaction amounts | Historical transaction amounts | Proposed Annual Caps | Proposed Annual Caps | Proposed Annual Caps |
|  | | | | For the<br>six months<br>ended | From the<br>SpinCo<br>Listing Date<br>until | For the year<br>ending |
|  | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | 30 June | 31 December | 31 December |
|  | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 |
|  | RMB million | RMB million | RMB million | RMB million | RMB million | RMB million |
|  SpinCo Group's procurement of batteries products from the Retained Group | 2533.2 | 2678.7 | 3477.5 | 2153.0 | 800 | 400 |

---

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

As seen from the above, the SpinCo Group's procurement of battery products from the Retained Group historically exhibited an increasing pattern for the three years ended 31 December 2024, while the Proposed Annual Caps are projected to decrease progressively for the two years ending 31 December 2026 and 2027. As advised by the Management, the relatively higher procurement amount in the past years was due to increasing demand for the finished battery products and the fact that the SpinCo Group had a relatively low production capacity such that it had to purchase the shortfall amount of the relevant battery products from the Retained Group in order to meet the increasing orders placed by its customers.

As disclosed in the Letter from the Board, the Proposed Annual Caps are principally determined based on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the expected business development of the SpinCo Group and the historical transaction amounts between the SpinCo
Group and the Retained Group with respect to the procurement arrangement. The transaction amount for SpinCo Group's procurement of batteries products from the Retained Group increased from RMB2.7 billion in 2023 to RMB3.5 billion in
2024. This is because the revenue of the Company increased significantly from 2023 to 2024, which was largely attributable to the revenue increase from the sale of SLI batteries driven by higher sales of high-end products, improved delivery capabilities, and the continued expansion of automobile aftermarket services. However, due to the inherent lead time required for SpinCo's capacity expansion, the
growth in SpinCo's production capacity has lagged behind its revenue growth. To ensure timely order fulfillment, the SpinCo has increased its procurement volume of finished power solution from Retained Group under the Product Procurement
Framework Agreement. In addition, the value of product demand of the SpinCo Group had shown an increasing trend along with its expected business development, with an increase of approximately 25% from 2023 to 2024, and such trend is expected to
continue for the three years ending December 31, 2027; and

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the expected decline in the transaction amount of products to be procured by the SpinCo Group from the Retained
Group under the Product Procurement Framework Agreement alongside the SpinCo Group's gearing up of its capabilities to conduct production activities independently upon completion of the Proposed Spin-off. It is currently expected that by the end of 2028, the SpinCo Group's own production capacity will be able to meet the vast majority of its internal demand. Specifically, the production capacity
of the nine factories of the SpinCo Group by the end of 2025 will increase gradually in the next three years from 2026 to 2028, while the SpinCo Group is currently expected to have a new factory in 2027 to further increase its production facilities,
reducing the transaction amount of products to be procured by the SpinCo Group from the Retained Group under the Product Procurement Framework Agreement to an immaterial amount.

In assessing the fairness and reasonableness of the determination of the Proposed Annual Caps, we have obtained and reviewed the underlying computations of the Proposed Annual Caps as prepared by the Management. As enquired with the Management and as disclosed in the Letter from the Board, the SpinCo Group currently has relatively small number of self-owned production bases for production of its products to be sold in the Overseas Markets, and plans to further increase its production capabilities and acquire production bases to support its needs for products. The SpinCo Group has accelerated the expansion and construction of its production plants from 2025, as compared to the previous years. As at 30 June 2025, the SpinCo Group owned six production plants, and had three production plants under construction. As advised by the Management, with the expected expansion of its production capabilities in the coming years, the procurement amount of finished battery products from the Retained Group shall decrease to minimal amounts after the SpinCo Group has geared up its manufacturing capabilities, thereby resulting a decreasing Proposed Annual Caps for the period from SpinCo Listing Date to 31 December 2026 and the year ending 31 December 2027 being the transitional period following completion of the Proposed Spin-off.

In this regard, we have obtained from the Management the current expansion plan of the SpinCo Group's production capacity in the coming years. Based on our review, we note that three new production plants of the SpinCo Group located in Vietnam, Malaysia and Mexico are expected to complete construction and be in operation in 2025, contributing to a growth of capacity by approximately 72%, while one of the existing production plants located in India will complete expansion therefore doubling its existing capacity, which would overall lead to a significant increase in expected production capacity by approximately 78% in 2025. The Management has estimated the Proposed Annual Caps for the two years ending 31 December 2027 primarily with reference to the aforesaid increase in the production capabilities and the estimated growing demand from the SpinCo Group's customers having considered the historical growth.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

Following the Proposed Spin-Off, the SpinCo Group will be operating its power solution business focusing overseas markets including Europe, Middle East and Africa, Americas and Asia-Pacific regions (other than Chinese Mainland, Hong Kong and Macau). On this basis, we have conducted market research on the general outlook of the global power battery industry, in particular lead-acid batteries and lithium-ion batteries. According to the report ''Lead Acid Battery Market Size & Share Analysis – Growth Trends & Forecasts (2025-2030)'' available from Mordor Intelligence, an independent market research firm, the lead-acid battery market size is estimated at USD49.37 billion in 2025, and is expected to reach USD61.23 billion by 2030, showing a compound annual growth rate (''CAGR'') of 4.4% during the period, among which, the Asia-Pacific region is estimated to grow at the highest CAGR. With reference to ''Lithium-ion Battery Market – Growth (Size, Share), Segments, Regions, Competition & Trends Overview (2025-2030)'' available from Mordor Intelligence, the global lithium-ion battery market size is estimated at USD113.61 billion in 2025, and is expected to reach USD304.22 billion by 2030, showing a CAGR of 21.77% during the period. Among the different end-use industries of lithium-ion batteries (comprising automotive, consumer electronics, industrial and power tools, stationary energy storage and other segments), despite the automotive sector commanded a majority market size of 55% in 2024, the market growth of lithium-ion battery adopted in the energy storage segment is expected to increase at a CAGR of 28.9% to 2030, outpacing the growth in automotive and other segments. Such growth in energy storage system is driven by the rising need for grid stability and integration of renewable energy sources.

On the other hand, based on the annual report of the Group for the year ended 31 December 2024, the Group's revenue amounted to RMB16,126.5 million, representing an increase of approximately 19.7% from RMB13,471.2 million for the previous year, among which, revenue from the power solutions business (including reserve power batteries, SLI batteries and motive power batteries) increased by approximately 26.7% from RMB11,447.5 million for the year ended 31 December 2023 to RMB14,503.8 million for the year ended 31 December 2024. With reference to the unaudited pro forma financial information of the SpinCo Group as set out in Appendix III of the Circular, the SpinCo Group's revenue from continuing operations amounted to RMB4,776.5 million, RMB4,961.6 million and RMB6,206.2 million for the three years ended 31 December 2022, 2023 and 2024, showing respective year-on-year growths of approximately 3.9% and 25.1%. Further, as advised by the Management, it is planned that the Group will increase its focus on the after-sales market covering more distributor and/or retail channels and end customers, which entails higher profit margins. The Group expects that the after-sales market will become the main growth contributor in the coming years. The Management also expected the growth potential of the SpinCo Group in overseas market would be considerable given the prevailing limited market shares of the Group in non-China region.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

As such, we consider that the increase in production capabilities of the SpinCo Group is aligned with the robust market outlook, increasing historical sales performance and expected growing demand from its customers in the coming years.

Based on our review of the expansion plan of the SpinCo Group provided by the Management, in addition to the increase in production capacity of existing plants as described above, a new factory located in the United States is also expected to commence operation in 2027. Following the construction of new production plants and expansion of existing production plants, it is noted that the SpinCo Group would achieve further growth in production capacity by around 60% and 24% for the two years ending 31 December 2026 and 2027, respectively, following the increase in production lines in support of the anticipated increase in demand for battery products. Having considered the production expansion plan of the SpinCo Group, in particular the year-on-year increase in production capacity of existing and new production plants, the SpinCo Group would be able to manufacture higher volume of battery products for sale on its own and accordingly reduce the procurement order for finished battery products from the Retained Group during the two years ending 31 December 2027. Therefore, the Proposed Annual Caps for the two years ending 31 December 2026 and 2027 are expected to progressively decrease.

As a result of the growing production capacity, the production value of the SpinCo Group will also increase correspondingly. Based on our review of the underlying determination of Proposed Annual Caps provided by the Management, we note that the Proposed Annual Caps was derived from the estimated product procurement costs of the SpinCo Group for the two years ending 31 December 2027. In order to continue to fulfil the growing customer demand in the coming years, the SpinCo Group's aggregate production cost and product procurement costs is expected to increase. While the production costs will increase as a result of the expanding capacity on one hand, the procurement cost from the Retained Group (i.e. the Proposed Annual Caps) is expected to decrease on the other hand, such that the SpinCo Group's overall production cost and product procurement costs shall increase at a rate consistent with the historical increment from 2023 to 2024, which we consider to be fair and reasonable.

Accordingly, we are of the view that the Proposed Annual Caps for the two years ending 31 December 2026 and 2027 are fair and reasonable.

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LETTER FROM THE INDEPENDENT FINANCIAL ADVISER

RECOMMENDATIONS

Having considered the principal factors and reasons as discussed above, we are of the view that Product Procurement Framework Agreement will be conducted in the ordinary and usual course of business of the Group, and the terms of the Product Procurement Framework Agreement are on normal commercial terms, fair and reasonable and in the interests of the Company and the Independent Company Shareholders as a whole. Accordingly, we advise the Independent Company Shareholders, as well as the Independent Board Committee to recommend the Independent Company Shareholders, to vote in favour of the relevant resolution(s) to be proposed at the EGM to approve the Product Procurement Framework Agreement.

Yours faithfully,

For and on behalf of

Lego Corporate Finance Limited

Billy Tang

*Managing Director*

*Mr. Billy Tang is a licensed person registered with the Securities and Futures Commission and a responsible officer of Lego Corporate Finance Limited to carry out type 6 (advising on corporate finance) regulated activity under the SFO. He has over 25 years of experience in the accounting and investment banking industries.* 

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APPENDIX I FINANCIAL INFORMATION OF THE GROUP

1. FINANCIAL INFORMATION OF THE GROUP

The audited consolidated financial statements for each of the years ended 31 December 2022, 2023 and 2024 and the unaudited consolidated financial statements for the six months ended 30 June 2025 of the Company together with relevant notes thereto have been disclosed in the documents published on the Stock Exchange's website (http://www.hkexnews.hk) and the Company's website (http://www.leoch.com).

2. STATEMENT OF INDEBTEDNESS

At the close of business on 30 June 2025, the Group had total borrowings of approximately RMB5,342 million which were guaranteed or secured.

Except as disclosed above, the Group did not have any outstanding loans or other similar indebtedness as of the close of the business on 30 June 2025. The Directors have confirmed that there have been no material changes in the indebtedness and contingent liabilities of the Group since 30 June 2025.

3. WORKING CAPITAL

As of the Latest Practicable Date, having made appropriate inquiries and taking into account of the internal resources of the Group and currently available loan facilities, the Directors are of the opinion that the Group will have sufficient working capital for its requirements for at least the next 12 months from the date of this circular.

4. MATERIAL ADVERSE CHANGE

There is no material adverse change in the financial and trading position of the Group since 31 December 2024, the date to which the latest published audited consolidated financial statements of the Group were made up.

5. FINANCIAL AND OPERATIONAL PROSPECT

Business Review and Prospects

The Group demonstrated robust revenue growth in 2024 compared to 2023, driven by strong performance across key geographical regions. The Company's strategic focus on expanding its market presence, investing in innovative technologies, and capitalizing on the growing demand for energy storage solutions has yielded significant results.

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APPENDIX I FINANCIAL INFORMATION OF THE GROUP

The Group anticipates that with the accelerated transformation of the global energy structure towards green and low-carbon, as well as the rapid popularization of digital and intelligent technologies, the new energy and artificial intelligence sectors will witness unprecedented development opportunities. The energy solutions the Group provide for data centers, communications, and energy storage, among others, are in line with the current global technological innovation trends, which will help the Group create new growth points and consolidate its leading position in the industry.

At the same time, we also see that the risks facing the global economy are complex and diverse. There are short-term challenges such as geopolitical conflicts and inflationary pressures, as well as long-term structural risks such as climate change and debt issues. To address these multiple challenges, the Group has added analyses and response strategies for potential risks such as fluctuations in raw material prices, supply chain risks, and technological change risks in our strategic planning. We have also established a risk management team to regularly assess and adjust risk response strategies.

Future Outlook and Strategies

As the Group continues to see future growth of consumer needs and believe it will maintain its leading position in the industry. Looking ahead, the Group is confident in its strategy, the strength of business model and development going forward and expects its business performance to remain robust. The Group will remain committed to creating long- term value for the Company Shareholders through steady growth and sustainable development.

Upon the completion of the Proposed Spin-off, the Retained Group will be embracing the vast market of Chinese Mainland, Hong Kong and Macau with its brands well positioned in product research, design, marketing, export and distribution of power solution in Chinese Mainland, Hong Kong and Macau. The Group is looking to achieve fast growth in Chinese Mainland, Hong Kong and Maca and make the brands known to more consumers, as well as providing better product offerings to consumers in Chinese Mainland, Hong Kong and Macau.

– 48 –

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APPENDIX II GENERAL INFORMATION

1. RESPONSIBILITY STATEMENT

This circular, for which the Directors, collectively and individually accept full responsibility, includes particulars given in compliance with the Listing Rules for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief the information contained in this circular is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this circular substantially misleading.

2. DISCLOSURE OF INTERESTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Directors' and chief executive's interests and short positions in the securities of the Company and
its associated corporations

As at the Latest Practicable Date, the following Directors or the chief executive of the Company had or were deemed to have interests or short positions in the shares, underlying shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) (i) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provision of the SFO); or (ii) which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein; or (iii) which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers (the ''Model Code'') adopted by the Company:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Name of Director/<br> chief executive | Note | Nature of Interest | Number of<br> Shares held | Number of<br>underlying<br>Shares held | Approximate<br>percentage of<br>issued share<br>capital |
|  Dr. Dong Li | 1 | Interest of controlled corporation | 1063847000 (L) |  | 74.17% |
|  Ms. Hong Yu | 2 | Beneficial owner | 1504000 (L) | 480000 (L) | 0.14% |
|  Mr. Cao Yixiong Alan | 3 | Beneficial owner | 1025000 (L) | 1100000 | 0.15% |
|  Mr. Lau Chi Kit | 4 | Beneficial owner |  | 350000 (L) | 0.02% |
|  Mr. Lu Zhiqiang | 5 | Beneficial owner | 75000 | 150000 (L) | 0.02% |
|  Mr. Wu Kouyue | 6 | Beneficial owner | 900000 (L) | 500000 (L) | 0.1% |

---

*The letter ''L'' denotes long position in the Shares/underlying Shares* 

– 49 –

------

APPENDIX II GENERAL INFORMATION

*Notes:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Dr. Dong is deemed to be interested in 1,063,847,000 Shares held by Master Alliance, a company which is
wholly owned by Dr. Dong. Dr. Dong, the chairman of the Company and an executive Director, is a director of Master Alliance, which has an interest or short position in the Shares or underlying Shares which would fall to be disclosed to the
Company pursuant to Divisions 2 and 3 of Part XV of the SFO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Ms. HONG held 1,504,000 Shares, and has been granted options of 480,000 Shares under the new share option
scheme adopted by the Company on 30 October 2020 (the ''New Share Option Scheme'').

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Mr. Cao Yixiong Alan held 1,025,000 Shares, and has been granted options of 1,100,000 Shares under the New
Share Option Scheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Mr. Lau Chi Kit has been granted options for (i) 200,000 Shares under the share option scheme of the
Company adapted on 14 October 2010 (the ''2010 Share Option Scheme''); and (ii) 150,000 Shares under the New Share Option Scheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Mr. LU Zhiqiang held 75,000 Shares, and had been granted options of 150,000 Shares under the New Share
Option Scheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Mr. Wu Kouyue 900,000 Shares, and had been granted options of 500,000 Shares under the New Share Option
Sheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. As at the Latest Practicable Date, the number of issued shares of the Company was 1,434,423,357.

Save as disclosed above, as at the Latest Practicable Date, (a) none of the Directors and the chief executive of the Company had or was deemed to have any interests or short positions in the shares, underlying shares or debentures of the Company and its associated corporations (within the meaning of Part XV of the SFO) (i) which were required to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests or short positions which they were taken or deemed to have under such provision of the SFO); or (ii) which were required, pursuant to section 352 of the SFO, to be entered in the register referred to therein; or (iii) which were required to be notified to the Company and the Stock Exchange pursuant to the Model Code; and (b) none of the Directors or proposed Director is a director or employee of a company which had an interest or short position in the Shares and underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO.

– 50 –

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APPENDIX II GENERAL INFORMATION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Substantial Company Shareholders' interests in Shares and underlying Shares

As of the Latest Practicable Date, as far as the Directors are aware of, the following persons (other than the Directors and chief executive of the Company), had an interest in the shares or underlying shares in the Company which would fall to be disclosed to the Company under the provision of Divisions 2 and 3 of Part XV of the SFO, or was, directly or indirectly, interested in 5% or more of the issued capital of the Company:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Name of Substantial Company<br> Shareholders | Note | Nature of Interest | Number of<br>Shares/<br>underlying<br> Shares held | Approximate<br>percentage of<br>issued share<br>capital |
|  Master Alliance Investment Limited | 1 | Beneficial Owner | 1063847000 (L) | 74.17% |

---

*The letter ''L'' denotes long position in the Shares/underlying Shares* 

*Notes:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Master Alliance Investment Limited, a company wholly owned by Dr. Dong, beneficially owned 1,063,847,000
Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) As at the Latest Practicable Date, the number of issued shares of the Company was 1,434,423,357.

Save as disclosed herein, as of the Latest Practicable Date, the Company had not been notified by any person (other than the Directors or the chief executive of the Company) who had an interest or short position in the Shares or the underlying Shares which would fall to be disclosed to the Company under the provision of Divisions 2 and 3 of Part XV of the SFO, or was, directly or indirectly, interested in 5% or more of the issued capital of the Company.

3. DIRECTORS' SERVICE CONTRACTS

As of the Latest Practicable Date, none of the Directors has entered into any service contract with the Company or any of its subsidiaries which was not determinable by the Company within one year without payment of compensation (other than statutory compensation).

– 51 –

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APPENDIX II GENERAL INFORMATION

4. COMPETING INTERESTS

To the best knowledge of the Directors, none of the Directors had any interest in any business which directly or indirectly competes or is likely to compete with the business of the Group as of the Latest Practicable Date.

5. INTERESTS IN CONTRACT OR ARRANGEMENTS

As of the Latest Practicable Date, save as disclosed below, there is no contract or arrangement entered into by any member of the Group subsisting at the date of this circular in which any Director is materially interested and which is significant in relation to the business of the Group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the master sales agreement dated 2 December 2024 entered into between the Company and Dr. Dong (for and on
behalf of all companies under his control other than the Group) in respect of the sales by the Group to Dr. Dong's associates of batteries and related parts including connecting cables and molds etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the master purchases agreement dated 2 December 2024 entered into between the Company and Dr. Dong (for
and on behalf of all companies under his control other than the Group) in respect of the purchases by the Group from Dr. Dong's associates of: (a) battery related components including chargers, connecting cables, BMS, battery cells,
battery holders and electric scooters etc.; and (b) low capacity lithium-ion batteries (for resale to customers upon request).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the master purchase agreement dated 13 August 2025 entered into between the Company and Dr. Dong (for and
on behalf of all companies under his control other than the Group) in respect of the purchases of certain production facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Brand Licensing Framework Agreement dated 10 December 2025 entered into between the SpinCo Group and the
Retained Group in respect of the grant of the exclusive rights to develop, produce, and sell products under the Licensing Brands in the Overseas Markets by the Retained Group to the SpinCo Group, which is controlled by Dr. Dong; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Product Procurement Framework Agreement dated 10 December 2025 entered into between the SpinCo Group
and the Retained Group in respect of the procurement of finished power solution from the Retained Group by the SpinCo Group, which is controlled by Dr. Dong.

– 52 –

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APPENDIX II GENERAL INFORMATION

As at the Latest Practicable Date, save for the master agreements referred to above, none of the Directors had any direct or indirect interest in any assets which had been acquired, disposed of by or leased to, or which were proposed to be acquired, disposed of by or leased to, any member of the Group since 31 December 2024, being the date to which the latest published audited consolidated financial statements of the Group were made up.

6. MATERIAL CONTRACTS

There was no contract (not being contracts entered into in the ordinary course of business) entered into by any member of the Group within the two years immediately preceding the Latest Practicable Date, which is or may be material.

7. MATERIAL LITIGATION

The Directors confirm that, as of the Latest Practicable Date, no member of the Group was involved in any material litigation or arbitration and no material litigation or claim is known to the Directors to be pending or threatened by or against any member of the Group.

8. MATERIAL ADVERSE CHANGE

As of the Latest Practicable Date, there is no material adverse change in the financial or trading position of the Group since 31 December 2024, the date to which the latest published audited consolidated financial statements of the Group were made up.

9. EXPERT'S QUALIFICATION AND CONSENT

The Independent Financial Adviser is a licensed corporation to carry out type 6 (advising on corporate finance) regulated activity under the SFO which has provided its opinion contained in this circular.

The Independent Financial Adviser has given and has not withdrawn its written consent to the issue of this circular with the inclusion herein of its letter and/or references to its name in the form and context in which they respectively appear. The letter from the above expert is given as of the date of this circular for incorporation in this circular.

As at the Latest Practicable Date, the Independent Financial Adviser was not beneficially interested in the share capital of any member of the Group nor did it have any right (whether legally enforceable or not) to subscribe for or to nominate persons to subscribe for any Shares, convertible securities, warrants, options or derivatives which carry voting rights in any member of the Group nor did it have any interest, either direct or indirect, in any assets which have been acquired or disposed of by or leased to or are proposed to be acquired or disposed of by or leased to any member of the Group since 31 December 2024, being the date to which the latest published audited consolidated financial statements of the Group were made up.

– 53 –

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APPENDIX II GENERAL INFORMATION

10. MISCELLANEOUS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Ms. Lin Jianan is our Company Secretary. Ms. Lin is a member of The Hong Kong Chartered Governance
Institute (formerly known as The Hong Kong Institute of Chartered Secretaries), a chartered secretary, a chartered governance professional and an environmental, social and governance reporting certification holder. She obtained a bachelor's
degree in engineering from Tianjin Polytechnic University in 2010 and a master's degree in business administration with a major in corporate governance and directorship from Hong Kong Baptist University in 2014;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The registered office of the Company is situated at Cricket Square, Hutchins Drive, PO Box 2681, Grand Cayman KY1-1111, Cayman Islands; the principal place of business of the Company in Hong Kong is situated at Unit C, 33rd Floor, TML Tower, No.3 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong; and the headquarters of
the Company is situated at 152 Beach Road, #22-01/04, Gateway East, Singapore;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The branch share registrar and transfer office of the Company is Tricor Investor Services Limited at 17/F, Far
East Finance Centre, 16 Harcourt Road, Hong Kong;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The English text of this circular shall prevail over the respective Chinese text in the case of inconsistency.

11. DOCUMENTS ON DISPLAY

Copies of the following documents will be published on the website of the Stock Exchange (www.hkexnews.hk) and the Company's website (http://www.leoch.com) for a period of 14 days from the date of this circular:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Product Procurement Framework Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the letter from the Independent Board Committee to the Company Shareholders dated 15 December 2025, the text of
which is set out on pages 33 to 34 of this circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the letter from the Independent Financial Adviser to the Independent Board Committee dated 15 December 2025,
the text of which is set out on pages 35 to 46 of this circular; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the written consent referred to in the section headed ''Expert's Qualification and
Consent'' in this appendix.

– 54 –

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APPENDIX III PRO FORMA FINANCIAL INFORMATION OF

THE SPINCO GROUP

*Set out below are the key unaudited pro forma financial information of the SpinCo Group prepared according to IFRS with pro-forma adjustments for the three years ended 31 December 2024 and the six months ended 30 June 2025 (as if the SpinCo Group had not been part of the Group for the relevant financial years/period).* 

The following financial information may differ from the financial information included in any registration statement to be filed with the relevant U.S. authorities, which would be prepared in accordance with U.S. generally accepted accounting principles (GAAP). The financial information of the SpinCo Group following completion of the Proposed Spin-off and the Proposed Distribution will be provided in U.S. GAAP rather than IFRS.

Summary Combined and Consolidated Income Statements

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the year ended 31 December | For the year ended 31 December | For the year ended 31 December | For the six<br>months ended<br>30 June |
|  | 2022 | 2023 | 2024 | 2025 |
|  | (RMB'000, unaudited) | (RMB'000, unaudited) | (RMB'000, unaudited) | |
|  CONTINUING OPERATIONS |  |  |  |  |
|  REVENUE | 4776472 | 4961612 | 6206203 | 3434109 |
|  Cost of sales | (4131647) | (4200895) | (5287457) | (2987638) |
|  Gross profit | 644825 | 760717 | 918746 | 446471 |
|  Other income and gains | 40320 | 17252 | 4661 | 38308 |
|  Selling and distribution expenses | (143334) | (177405) | (195310) | (132394) |
|  Administrative expenses | (96440) | (110214) | (161278) | (83434) |
|  Research and development costs | (24156) | (54479) | (28460) | (18727) |
|  (Impairment losses)/reversal of impairment on financial assets | (10636) | 10787 | (5508) | (15655) |
|  Other expenses | (3576) | (8323) | (31876) | (65) |
|  Finance costs | (7349) | (34635) | (60584) | (23177) |
|  PROFIT/(LOSS) BEFORE TAX FROM CONTINUING OPERATIONS | 399654 | 403700 | 440391 | 211327 |
|  Income tax credit/(expense) | (46265) | (80318) | (128264) | (69553) |
|  PROFIT/(LOSS) FOR THE YEAR FROM CONTINUING OPERATIONS | 353389 | 323382 | 312127 | 141774 |
|  PROFIT ATTRIBUTABLE TO THE SHAREHOLDER | 353762 | 312252 | 293510 | 160594 |

---

– 55 –

------

APPENDIX III PRO FORMA FINANCIAL INFORMATION OF

THE SPINCO GROUP

Summary Combined and Consolidated Balance Sheet

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | As of 31 December | As of 31 December | As of 31 December | For the six<br>months ended<br>30 June |
|  | 2022 | 2023 | 2024 | 2025 |
|  | (RMB'000, unaudited) | (RMB'000, unaudited) | (RMB'000, unaudited) | |
|  Total non-current assets | 454336 | 527737 | 2055480 | 1356419 |
|  Total current assets | 2639476 | 3341907 | 3336389 | 3529841 |
|  Total assets | 3093812 | 3869644 | 5391869 | 4886260 |
|  Total current liabilities | 2028321 | 2469876 | 2815330 | 3741098 |
|  Total non-current liabilities | 42947 | 41685 | 658709 | 138534 |
|  Total liabilities | 2071268 | 2511561 | 3474039 | 3879632 |
|  Total equity | 1022544 | 1358083 | 1917830 | 1006628 |

---

– 56 –

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NOTICE OF THE EGM

![LOGO](g760217g1215180520044.jpg)

**Leoch International Technology Limited** 

理士國際技術有限公司

*(Incorporated in the Cayman Islands with limited liability)* 

**(Stock Code: 842)** 

NOTICE OF THE EXTRAORDINARY GENERAL MEETING

NOTICE IS HEREBY GIVEN that the extraordinary general meeting (the ''EGM'') of Leoch International Technology Limited (the ''Company'') will be held at 10:00 a.m. on 7 January 2026 at Unit C, 33/F., TML Tower, No. 3 Hoi Shing Road, Tsuen Wan, New Territories, Hong Kong to consider and, if thought fit, passing the following ordinary resolution of the Company. Unless otherwise indicated, capitalized terms used in this notice shall have the same meanings as those defined in the circular of the Company dated 15 December 2025 (the ''Circular''):

ORDINARY RESOLUTIONS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. THAT:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Proposed Spin-off and the Proposed Distribution be and are hereby
approved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the directors of the Company and/or the directors of the SpinCo or the directors of any members of the SpinCo
Group be and are hereby authorised, for and on behalf of the Company and the SpinCo, to take all steps and do all acts and things as they consider to be necessary, appropriate or expedient in connection with and to implement or give effect to the
Proposed Spin-off and the Proposed Distribution, and any director of the Company be authorised to execute all such other documents, instruments and agreements (including the affixation of the Company's
common seal) deemed by such director to be incidental to, ancillary to or in connection with the Proposed Spin-off and the Proposed Distribution.

EGM – 1

------

NOTICE OF THE EGM

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. THAT conditional upon the passing of ordinary resolution 1 above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the terms and conditions of the Product Procurement Framework Agreement dated 10 December 2025 entered into
between the SpinCo Group and the Retained Group in respect of the procurement of finished power solution from the Retained Group by the SpinCo Group for an initial term of two years commencing on the SpinCo Listing Date (a copy of the Product
Procurement Framework Agreement is marked ''A'' and produced to the EGM and signed by the chairman of the EGM for identification purpose) and the transactions contemplated thereby be and are hereby approved, confirmed and
ratified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the proposed maximum annual monetary value of the continuing connected transactions contemplated under the
Product Procurement Framework Agreement pursuant to paragraph (a) of this resolution for each of the period from the SpinCo Listing Date to 31 December 2026, and the financial year ending 31 December 2027 as set out in the paragraph headed
''Letter from the Board – PRODUCT PROCUREMENT FRAMEWORK AGREEMENT – Proposed annual caps and basis of determination'' contained in the Circular be and are hereby approved; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any one or more directors of the Company be and are hereby authorised to do all such acts and things as they
consider necessary or expedient for the purposes of giving effect to the Product Procurement Framework Agreement and the transactions contemplated thereby''

---

| |
|:---|
| By Order of the Board |
| Leoch International Technology Limited |
| Dr. Dong Li |
| *Chairman* |

---

Hong Kong, 15 December 2025

*Notes:* 

1. Any shareholder of the Company entitled to attend and vote at the EGM is entitled to appoint a proxy to attend
and vote on his/her behalf. A proxy need not be a shareholder of the Company. A shareholder who is the holder of two or more shares of the Company may appoint more than one proxy to represent him/her to attend and vote on his/her behalf. If more
than one proxy is so appointed, the appointment shall specify the number and class of shares in respect of which each such proxy is so appointed.

2. In order to be valid, the form of proxy together with the power of attorney or other authority, if any, under
which it is signed or a certified copy of that power of attorney or authority, must be deposited at the branch share registrar and transfer office of the Company in Hong Kong, Tricor Investor Services Limited (the ''Branch Share
Registrar'') at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong not less than 48 hours before the time appointed for the holding of the EGM (i.e. before 5 January 2026 at 10:00 a.m.) or any adjournment thereof. Completion and
return of the form of proxy shall not preclude a shareholder of the Company from attending and voting in person at the EGM and, in such event, the instrument appointing a proxy shall be deemed to be revoked.

EGM – 2

------

NOTICE OF THE EGM

3. The instrument appointing a proxy shall be in writing under the hand of the appointor or of his attorney duly
authorised in writing, or if the appointor is a corporation, either under seal or under the hand of an officer or attorney duly authorised.

4. Where there are joint holders of any share, any one of such joint holders may vote at the EGM, either
personally or by proxy, in respect of such share as if he/she were solely entitled thereto, but if more than one of such joint holders are present at the EGM personally or by proxy, then the one of such joint holders so present whose name stands
first on the register of members of the Company shall, in respect of such share, be entitled alone to vote in respect thereof.

5. The resolutions at the EGM will be taken by poll pursuant to the Rules Governing the Listing of Securities (the
''Listing Rules'') on The Stock Exchange of Hong Kong Limited (the ''Stock Exchange'') and the results of the poll will be published on the websites of the Stock Exchange (www.hkexnews.hk) and the
Company (http://www.leoch.com) in accordance with the Listing Rules.

6. The register of members of the Company will be closed from 2 January 2026 to 7 January 2026 (both days
inclusive), during which period no transfer of shares of the Company will be registered. In order to determine the identity of members who are entitled to attend and vote at the EGM, all share transfer documents accompanied by the relevant share
certificates must be lodged with the Branch Share Registrar at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong for registration not later than 4:30 p.m. on 31 December 2025.

*As at the date of this notice, the executive directors are Dr. DONG Li and Ms. HONG Yu and the independent non-executive directors are Mr. CAO Yixiong Alan, Mr. LAU Chi Kit and Mr. LU Zhiqiang.* 

EGM – 3

## Exhibit 99.1

**Exhibi 99.1** 

December 30, 2025

**Leoch Energy Inc** 

152 Beach Road

#22-01/04 Gateway East

Singapore 189721

**<u>Re: Leoch Energy Inc</u>**

Ladies and Gentlemen,

We understand that Leoch Energy Inc (the "Company") plans to file a registration statement on Form 20-F (as may be amended from time to time, the "Registration Statement") with the United States Securities and Exchange Commission (the "SEC") under the Exchange Act of 1934, in connection with its proposed spin-off listing (the "Proposed Spin-off Listing").

We hereby consent to the references to our name and the inclusion of information, data and statements from our research reports and amendments thereto (collectively, the "Report") as well as the citation of our Report, (i) in the Registration Statement, (ii) in any written correspondence with the SEC, (iii) in any other future filings with the SEC by the Company, including, without limitation, filings on annual reports on Form 20-F, Form 6-K or other SEC filings (collectively, the "SEC Filings"), (iv) on the websites of the Company and its subsidiaries and affiliates, (v) in institutional and retail road shows and other activities in connection with any future offering or placements, and (vi) in other publicity materials in connection with the Proposed Spin-off Listing.

We further hereby consent to the filing of this letter as an exhibit to the Registration Statement and as an exhibit to any other SEC Filings.

Yours faithfully,

For and on behalf of

**Frost & Sullivan Limited** 

---

| |
|:---|
| /s/ Charles Lau |
| Name: Charles Lau |
| Title: Executive Director |

---