# EDGAR Filing Document

**Accession Number:** 0001945415
**File Stem:** 0001213900-23-001337
**Filing Date:** 2023-1
**Character Count:** 1179800
**Document Hash:** 78e64998afff5f18f093dc2ce334f8a6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001213900-23-001337.hdr.sgml**: 20230329

**ACCESSION NUMBER**: 0001213900-23-001337

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 42

**FILED AS OF DATE**: 20230106

**DATE AS OF CHANGE**: 20230106

**FILER**: 

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

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-06419
- **FILM NUMBER:** 23514883

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

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

**This is a confidential draft submission to the U.S. Securities and Exchange Commission pursuant to Section 106(a) of the Jumpstart Our Business Startups Act of 2012 on January 6, 2023 and is not being filed publicly under the Securities Act of 1933, as amended.**

#### Registration No. 333-

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

#### ________________

#### Amendment No.1 to<br> FORM F-1<br>REGISTRATION STATEMENT UNDER<br>THE SECURITIES ACT OF 1933

#### ________________

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

#### _______________

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

#### ________________

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

---

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

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

#### ________________
*Copies to:*

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| | |
|:---|:---|
|  **William S. Rosenstadt, Esq.<br>Yarona L. Yieh, Esq.<br>Ortoli Rosenstadt LLP<br>366 Madison Avenue, 3**<sup>rd</sup> **Floor<br>New York, NY 10017<br>Telephone: +1-212-588-0022** | **Laura Hua Luo Hemmann, Esq.<br>King & Wood Mallesons LLP<br>50**<sup>th</sup> **Floor, 500 Fifth Avenue**<br> **New York, New York 10110<br>Telephone: +1 650 799 2061** |

---

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

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

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

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

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

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

Emerging growth company ☒

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

____________

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

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

#### Calculation of Registration Fee

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

---

____________

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

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

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

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

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the registration statement shall become effective on such date as the Securities and Exchange Commission, acting pursuant to such Section 8(a), may determine.**

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

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

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

---

#### HUHUTECH International Group Inc.

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

HUHUTECH International Group Inc. was incorporated in the Cayman Islands. As a holding company with no material operations of our own, we conduct our operations in China through Jiangsu Huhu Electromechanical Technology Co., Ltd, or HUHU China, our wholly owned subsidiary. Investors will not and may never directly hold equity interests in HUHU China. HUHUTECH controls and receives the economic benefits of HUHU China's business operations, if any, through equity ownership. Any references to "HUHUTECH" are to HUHUTECH International Group Inc., the ultimate holding company and any references to "we", "us", "our Company," "the Company," or "our" are to HUHUTECH International Group Inc. ("HUHUTECH") and its subsidiaries. Any references to the "holding company" is to HUHUTECH, in which investors are purchasing an interest. HUHU China conducts business operations, and is the operating subsidiary. For more details regarding the risks regarding the Company's holding company structure, please refer to "Prospectus Summary — Holding Company Structure" and "Risk Factor — Risks related to Doing Business in the PRC — HUHUTECH is a holding company, and will rely on dividends paid by our subsidiaries for our cash needs. Any limitation on the ability of our subsidiaries to make dividend payments to us, or any tax implications of making dividend payments to us, could limit our ability to pay our parent company expenses or pay dividends to holders of our Ordinary Shares" on page 25 of the prospectus.

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

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

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

**Under existing PRC foreign exchange regulations, payment of current account items, such as profit distributions and trade and service**-related **foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. As of the date of this prospectus, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities. Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there is no restrictions on HUHU China's ability to transfer cash to investors.**

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

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

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

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

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

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

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

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

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

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

**Our auditor, Wei, Wei & Co., LLP has been inspected by the PCAOB on a regular basis, with the last inspection completed in August 2020, and it is not subject to the determinations announced by the PCAOB on December 16, 2021. If trading in our Ordinary Shares is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist our Ordinary Shares. If our Ordinary Shares are unable to be listed on another securities exchange by then, such a delisting would substantially impair your ability to sell or purchase our Ordinary Shares when you wish to do so, and the risk and uncertainty associated with a potential delisting would have a negative impact on the price of our Ordinary Shares. See "Risk Factors — Risks Related to Doing Business in the PRC — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment" on page 36 of this prospectus.**

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

Upon completion of this offering, our CEO, Yujun Xiao, will beneficially own approximately [ ]% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the over-allotment option, or [ ]%, assuming full exercise of the over-allotment option. As a result, we will be deemed a "controlled company" for the purpose of the Nasdaq Stock Market Rules. As a controlled company, we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements, including the requirements that:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have a nominating and corporate governance committee and a compensation committee that are composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committees.

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

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

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

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

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

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

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

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____________

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

(2) We have agreed to pay Univest Securities LLC (the "Underwriter") a discount equal to [7]% of the gross proceeds of this offering. For a description of other compensation to be received by the Underwriter, see "Underwriting" beginning on page 124.

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

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

#### Prospectus dated , 202 3 .

#### The date of this prospectus is ____________, 202 3 .

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

#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
|  [Prospectus Summary](#T21) | 1 |
|  [Risk Factors](#T20) | 21 |
|  [Special Note Regarding Forward-Looking Statements](#T992000) | 51 |
|  [Use of Proceeds](#T19) | 52 |
|  [Dividend Policy](#T18) | 53 |
|  [Capitalization](#T17) | 54 |
|  [Dilution](#T16) | 55 |
|  [Enforceability of Civil Liabilities](#T15) | 56 |
|  [Corporate History and Structure](#T14) | 57 |
|  [Management's Discussion and Analysis of Financial Condition and Results of Operations](#T993000) | 60 |
|  [Business](#T13) | 77 |
|  [Regulation](#T12) | 89 |
|  [Management](#T11) | 99 |
|  [Related Party Transactions](#T10) | 102 |
|  [Principal Shareholders](#T9) | 103 |
|  [Description of Share Capital](#T8) | 104 |
|  [Shares Eligible for Future Sale](#T7) | 116 |
|  [Taxation](#T6) | 118 |
|  [Underwriting](#T5) | 124 |
|  [Expenses Related to this Offering](#T4) | 130 |
|  [Legal Matters](#T3) | 131 |
|  [Experts](#T2) | 131 |
|  [Where You Can Find Additional Information](#T1) | 131 |
|  [Index to the Consolidated Financial Statements](#T501) | F-1 |

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**You should rely only on the information contained in this prospectus or in any related free**-writing **prospectus. We have not authorized anyone to provide you with information different from that contained in this prospectus or in any related free**-writing **prospectus. We are offering to sell, and seeking offers to buy, the Ordinary Shares offered hereby, but only under circumstances and in jurisdictions where offers and sales are permitted and lawful to do so. The information contained in this prospectus is current only as of the date of this prospectus, regardless of the time of delivery of this prospectus or of any sale of the Ordinary Shares.**

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

We believe that we have grown to be one of the larger companies in the HPS and FMCS industry in China. Some of our clients are seasoned manufacturers in their industries in China. Our clients include Taiwan Semiconductor Manufacturing Co., Ltd., Yangtze Memory Technology Corp., Changxin Memory Technologies Inc., and AUO Corporation.

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

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

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

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

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

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

HUHU Japan was incorporated on April 25, 2022 under the laws of Japan as a limited company and a wholly owned subsidiary of HUHUTECH. HUHU Japan currently does not have any operations. It will conduct the same type of business in Japan as HUHU China does in China in the near future.

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

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

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

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

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

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

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

Under existing PRC foreign exchange regulations, payment of current account items, such as profit distributions and trade and service-related foreign exchange transactions, can be made in foreign currencies without prior approval from the State Administration of Foreign Exchange, or the SAFE, by complying with certain procedural requirements. Therefore, our PRC subsidiaries are able to pay dividends in foreign currencies to us without prior approval from SAFE, subject to the condition that the remittance of such dividends outside of the PRC complies with certain procedures under PRC foreign exchange regulations, such as the overseas investment registrations by our shareholders or the ultimate shareholders of our corporate shareholders who are PRC residents. Approval from, or registration with, appropriate government authorities is, however, required where the RMB is to be converted into foreign currency and remitted out of China to pay capital expenses such as the repayment of loans denominated in foreign currencies. The PRC government may also at its discretion restrict access in the future to foreign currencies for current account transactions. Current PRC regulations permit our PRC subsidiaries to pay dividends to the Company only out of their accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. As of the date of this prospectus, there are no restrictions or limitations imposed by the Hong Kong government on the transfer of capital within, into and out of Hong Kong (including funds from Hong Kong to the PRC), except for transfer of funds involving money laundering and criminal activities. Cayman Islands law prescribes that a company may only pay dividends out of its profits. Other than that, there is no restrictions on HUHU China's ability to transfer cash to investors.

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

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

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

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

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

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

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

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

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

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

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

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

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

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*High-purity Process System*

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

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

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

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

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

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

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

*Factory Management and Control System (FMCS)*

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

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

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

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

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

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

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

![](timage_002.jpg)

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

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

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

*Production Procedure*

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

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

The following chart illustrates our production process:

![](tflowchart_002.jpg)

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

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

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

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

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

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

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

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

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

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

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

#### Sales and Marketing
We believe that our solutions have a strong competitive edge in China's domestic market. Our CEO and CTO play essential roles in reaching out to potential clients, due to their multiple years of experience in the industry. Additionally, we have established a good reputation among our clients through our consistent high-quality products, which ensures we have plenty of long-term clients that we maintain carefully on a periodical basis. Due to our renowned reputation in China, we also receive consultation requests and offers from prospective clients, who discover our product and service by word of mouth and industry exhibitions such as SEMII CHINA and China (Shanghai) International Semiconductor Exhibition.

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

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

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

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment. See "Risk Factors — Risks Related to <u>Doing Business in the PRC</u> — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment" on page 36 of the prospectus.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

#### Holding Foreign Companies Accountable Act (the "HFCAA")
Our Ordinary Shares may be prohibited from trading on a national exchange under the HFCAA if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years. On June 22, 2021, the U.S. Senate passed the Accelerating Holding Foreign Companies Accountable Act, which, if passed by the U.S. House of Representatives and signed into law, would reduce the period of time for foreign companies to comply with PCAOB audits to two consecutive years instead of three, thus reducing the time period for triggering the prohibition on trading. On December 2, 2021, the U.S. Securities and Exchange Commission ("SEC") adopted final amendments to its rules implementing the HFCAA. The rules apply to registrants the SEC identifies as having filed an annual report with an audit report issued by a registered public accounting firm that is located in a foreign jurisdiction and that the PCAOB is unable to inspect or investigate (Commission-Identified Issuers) and require Commission-Identified Issuers identified by the SEC to submit documentation and make disclosures required under the HFCAA. In addition, the final amendments also establish procedures the SEC will follow in (i) determining whether a registrant is a "Commission-Identified Issuer" and (ii) prohibiting the trading on U.S. securities exchanges and in the over-the-counter market of securities of a "Commission-Identified Issuer" under the HFCAA. The final amendments are effective on January 10, 2022. The SEC will begin to identify and list Commission-Identified Issuers on its website shortly after registrants begin filing their annual reports for 2021. Pursuant to the HFCAA, the PCAOB issued a Determination Report on December 16, 2021, which found that the PCAOB is unable to inspect or investigate completely registered public accounting firms headquartered in mainland China or Hong Kong, a Special Administrative Region of the PRC, because of a position taken by one or more authorities in the PRC or

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Hong Kong. In addition, the PCAOB's report identified the specific registered public accounting firms which are subject to these determinations. Our auditor, Wei, Wei & Co., LLP, has been inspected by the PCAOB on a regular basis, with the last inspection completed in August 2020, and it is not subject to the determinations announced by the PCAOB on December 16, 2021. On August 26, 2022, the PCAOB announced that it had signed a Statement of Protocol (the "Statement of Protocol") with the China Securities Regulatory Commission and the Ministry of Finance of China. The terms of the Statement of Protocol would grant the PCAOB complete access to audit work papers and other information so that it may inspect and investigate PCAOB-registered accounting firms headquartered in China and Hong Kong. Under the PCAOB's rules, a reassessment of a determination under the HFCA Act may result in the PCAOB reaffirming, modifying or vacating the determination.

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

If trading in our Ordinary Shares is prohibited under the HFCAA in the future because the PCAOB determines that it cannot inspect or fully investigate our auditor at such future time, Nasdaq may determine to delist our Ordinary Shares. See "Risk Factors — Risks Related to Doing Business in the PRC — Our Ordinary Shares may be prohibited from being traded on a national exchange under the Holding Foreign Companies Accountable Act (the "HFCA Act"), if the Public Company Accounting Oversight Board (the "PCAOB") is unable to inspect our auditors for three consecutive years beginning in 2021. The delisting of our Ordinary Shares, or the threat of their being delisted, may materially and adversely affect the value of your investment." on page 36 of this prospectus.

#### PRC Limitations on Overseas Listing
The Regulations on Mergers and Acquisitions of Domestic Companies by Foreign Investors, or the M&A Rules, adopted by six PRC regulatory agencies requires an overseas special purpose vehicle formed for listing purposes through acquisitions of PRC domestic companies and controlled by PRC companies or individuals to obtain the approval of the China Securities Regulatory Commission, or the CSRC, prior to the listing and trading of such special purpose vehicle's securities on an overseas stock exchange.

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

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

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Our PRC legal counsel, Jiangsu Junjin Law Firm, has advised us based on their understanding of the current PRC law, rules, and regulations that the CSRC's approval is not required for the offering and trading of our Ordinary Shares on Nasdaq in the context of this offering, given that: (i) our PRC subsidiary was incorporated by means of direct investment rather than by merger or acquisition of equity interest or assets of a PRC domestic company owned by PRC companies or individuals as defined under the M&A Rules that are our beneficial owners; and (ii) the CSRC currently has not issued any definitive rule or interpretation concerning whether offerings like ours under this prospectus are subject to the M&A Rules. As of the date of this prospectus, no relevant laws or regulations in the PRC explicitly require us to seek approval from the CSRC or any other PRC governmental authorities for this offering, nor has our company or any of our subsidiaries received any inquiry, notice, warning or sanctions regarding our planned offering from the CSRC or any other PRC governmental authorities. However, since these statements and regulatory actions by the PRC government are newly published and official guidance and related implementation rules have not been issued, there remain some uncertainties as to how the rules will be interpreted or implemented in the context of an overseas offering and the potential impact such modified or new laws and regulations will have on the daily business operation of our PRC subsidiaries. We cannot assure you that relevant PRC government agencies, including the CSRC, would reach the same conclusion as we do. The PRC regulatory authorities may in the future promulgate laws, regulations or implementing rules that requires our company or our subsidiaries to obtain regulatory approval from Chinese authorities before listing in the U.S. If it is determined that CSRC approval is required for this offering, we may face sanctions by the CSRC or other PRC regulatory agencies for failure to seek CSRC approval for this offering.

As of the date of this prospectus, the Draft Rules Regarding Overseas Listings have not been promulgated, and our PRC legal counsel, Jiangsu Junjin Law Firm, has advised us based on their understanding of the current PRC law, rules, and regulations that we are not required to obtain permission or approval from the government of China for any offering pursuant to this prospectus. While the final version of the Draft Rules Regarding Overseas Listings are expected to be adopted in 2022, we believe that we will be required to comply with the filing requirements or procedures set forth in the Draft Rules Regarding Overseas Listings and that none of the situations that would clearly prohibit overseas offering and listing applies to us. In reaching this conclusion, we are relying on the advice of our PRC counsel, Jiangsu Junjin Law Firm, which has advised us that neither the holding company, nor our subsidiaries are currently required to obtain approval from Chinese authorities, including the CSRC, or the Cyberspace Administration of China, to list on U.S exchanges or issue securities to foreign investors.

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

For more detailed information, see "Risk Factors — Risks Related to Doing Business in the PRC — The approval of the China Securities Regulatory Commission may be required in connection with this offering, and, if required, we cannot predict whether we will be able to obtain such approval." on page 31 of this prospectus.

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

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

On July 10, 2021, the Cyberspace Administration of China, or the CAC, issued a revised draft of the Measures for Cybersecurity Review for public comments, which propose to authorize the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, including listings in foreign countries by companies that possess the personal data of more than one million users. On

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December 28, 2021, thirteen PRC regulatory agencies, namely, the CAC, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) required that, among others, in addition to "operator of critical information infrastructure" any "operator of network platform" holding personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review.

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

Our PRC legal counsel, Jiangsu Junjin Law Firm, has advised us based on their understanding of the current PRC law, rules, and regulations that we are not expected to be subject to the cybersecurity review by the CAC for this offering, given that: (i) using our products and services does not require users to provide any personal information; (ii) we do not possess any personal information of users in our business operations; and (iii) data processed in our business does not have a bearing on national security and thus may not be classified as core or important data by the authorities. However, if the draft Regulations on Network Data Security is adopted into law and we become listed on Nasdaq, our PRC subsidiaries likely will be required to perform annual data security assessment either by itself or retaining a third-party data security service provider and submit such data security assessment report to the local agency every year. Neither the CAC nor any other PRC regulatory agency or administration has contacted the Company in connection with our PRC subsidiaries' operations. The Company is currently not required to obtain regulatory approval from the CAC nor any other PRC authorities for the PRC subsidiaries' operations. However, there remains uncertainty as to how the Measures for Cybersecurity Review (2021) will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Measures for Cybersecurity Review (2021). We cannot assure you that PRC regulatory agencies, including the CAC, would take the same view as we do, and there is no assurance that we can fully or timely comply with such laws. In the event that the applicable laws, regulations, or interpretations change such that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we cannot guarantee whether we can complete the registration process in a timely manner, or at all. Given such uncertainty, we may be further required to suspend our relevant business, shut down our website, or face other penalties, which could materially and adversely affect our business, financial condition, results of operations and the value of our Ordinary Shares, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

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

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

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

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

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

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

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

---

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

---

---

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

---

---

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

---

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#### SELECTED CONDENSED CONSOLIDATING BALANCE SHEETS

---

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

---

---

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

---

---

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

---

#### SELECTED CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

---

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

---

---

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

---

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---

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

---

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to include only two years of audited financial statements and only two years of related management's discussion and analysis of financial condition and results of operations disclosure; and

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

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

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

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

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

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

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

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

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

#### Implications of Being a Controlled Company
Upon completion of this offering, our Director, Yujun Xiao, will beneficially own approximately [ ]% of the aggregate voting power of our issued and outstanding Ordinary Shares, assuming no exercise of the over-allotment option, or [ ]%, assuming full exercise of the over-allotment option. As a result, we will be deemed a "controlled company" for the purpose of the Nasdaq Stock Market Rules. As a controlled company, we are permitted to elect to rely on certain exemptions from the obligations to comply with certain corporate governance requirements, including the requirements that:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• we have a nominating and corporate governance committee and a compensation committee that are composed entirely of independent directors with a written charter addressing the purposes and responsibilities of the committees.

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

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

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

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#### The Offering

---

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

---

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#### RISK FACTORS
*An investment in our Ordinary Shares involves a high degree of risk. Before deciding whether to invest in our Ordinary Shares, you should consider carefully the risks described below, together with all of the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operation" and our consolidated financial statements and related notes. If any of these risks actually occurs, our business, financial condition, results of operations or cash flow could be materially and adversely affected, which could cause the trading price of our Ordinary Shares to decline, resulting in a loss of all or part of your investment. The risks described below and in the documents referenced above are not the only ones that we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business. You should only consider investing in our Ordinary Shares if you can bear the risk of loss of your entire investment.*

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

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

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

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

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

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

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could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, and limit our PRC subsidiaries' ability to make distributions or pay dividends to us or affect our ownership structure, which could adversely affect our business and prospects.

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

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

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

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

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

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

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

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

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

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

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

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

The Chinese government has exercised and continues to exercise substantial control over virtually every sector of the Chinese economy through regulation and state ownership. Our ability to operate in China may be harmed by changes in its laws and regulations, including those relating to taxation, environmental regulations, land use rights, property and other matters. The central or local governments of these jurisdictions may impose new, stricter regulations or interpretations of existing regulations that would require additional expenditures and efforts on our part to ensure our compliance with such regulations or interpretations. Accordingly, government actions in the future, including any decision not to continue to support recent economic reforms and to return to a more centrally

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planned economy or regional or local variations in the implementation of economic policies, could have a significant effect on economic conditions in China or particular regions thereof, and could require us to divest ourselves of any interest we then hold in Chinese properties.

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

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

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

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

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

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

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

Our PRC subsidiaries generate primarily all of their revenue in Renminbi, which is not freely convertible into other currencies. As a result, any restriction on currency exchange may limit the ability of our PRC subsidiaries to use its Renminbi revenues to pay dividends to us. The PRC government may continue to strengthen its capital controls, and more restrictions and substantial vetting process may be put forward by SAFE for cross-border transactions falling under both the current account and the capital account. Any limitation on the ability of our PRC subsidiaries to pay dividends or make other kinds of payments to us could materially and adversely limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund and conduct our business.

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

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

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

The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions in China and by China's foreign exchange policies. On July 21, 2005, the PRC government changed its decade-old policy of pegging the value of the Renminbi to the U.S. dollar, and the Renminbi appreciated more than 20% against the U.S. dollar over the following three years. Between July 2008 and June 2010, this appreciation halted and the exchange rate between the Renminbi and the U.S. dollar remained within a narrow band. Since June 2010, the Renminbi has fluctuated against the U.S. dollar, at times significantly and unpredictably. On November 30, 2015, the Executive Board of the International Monetary Fund (IMF) completed the regular five-year review of the basket of currencies that make up the Special Drawing

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Right, or the SDR, and decided that with effect from October 1, 2016, Renminbi is determined to be a freely usable currency and will be included in the SDR basket as a fifth currency, along with the U.S. dollar, the Euro, the Japanese yen and the British pound. In the fourth quarter of 2016, the Renminbi depreciated significantly in the backdrop of a surging U.S. dollar and persistent capital outflows of China.

This depreciation halted in 2017, and the RMB appreciated approximately 7% against the U.S. dollar during this one-year period. The Renminbi in 2018 depreciated approximately by 5% against the U.S. dollar. Starting from the beginning of 2019, the Renminbi has depreciated significantly against the U.S. dollar again. In early August 2019, the PBOC set the Renminbi's daily reference rate at RMB7.0039 to US$1.00, the first time that the exchange rate of Renminbi to U.S. dollar exceeded 7.0 since 2008. With the development of the foreign exchange market and progress towards interest rate liberalization and Renminbi internationalization, the PRC government may in the future announce further changes to the exchange rate system, and we cannot assure you that the Renminbi will not appreciate or depreciate significantly in value against the U.S. dollar in the future. It is difficult to predict how market forces or PRC or U.S. government policy may impact the exchange rate between the Renminbi and the U.S. dollar in the future.

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

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

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

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

The PRC subsidiary was formed under and are governed by the laws of the PRC. The PRC legal system is based on written statutes. Prior court decisions may be cited for reference, but have limited precedential value. In 1979, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general, such as foreign investment, corporate organization and governance, commerce, taxation and trade. As a significant part of our business is conducted in China, our operations are principally governed by PRC laws and regulations. However, since the PRC legal system continues to evolve rapidly, the interpretations of many laws, regulations and rules are not always uniform and enforcement of these laws, regulations and rules involves uncertainties, which may limit legal protections available to us. Uncertainties due to evolving laws and regulations could also impede the ability of a China-based company, such as our company, to obtain or maintain permits or licenses required to conduct business in China. In the absence of required permits or licenses, governmental authorities could impose material sanctions or penalties on us. In addition, some regulatory requirements issued by certain PRC government authorities may not be consistently applied by other PRC government authorities (including local government authorities), thus making strict compliance with all regulatory requirements impractical, or in some circumstances impossible. For example, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law or contract. However, since PRC administrative and court authorities have discretion in interpreting and implementing statutory

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and contractual terms, it may be more difficult to predict the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems. Furthermore, the PRC legal system is based in part on government policies and internal rules, some of which are not published on a timely basis or at all and may have retroactive effect. As a result, we may not be aware of our violation of these policies and rules until sometime after the violation. Such uncertainties, including uncertainty over the scope and effect of our contractual, property (including intellectual property) and procedural rights, could materially and adversely affect our business and impede our ability to continue our operations.

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

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

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

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

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

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

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

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

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

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

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

On July 10, 2021, the Cyberspace Administration of China ("CAC") issued a revised draft of the Measures for Cybersecurity Review for public comments. Further, on December 28, 2021, thirteen PRC regulatory agencies, namely, the CAC, the NDRC, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of State Security, the Ministry of Finance, MOFCOM, SAMR, CSRC, the People's Bank of China, the National Radio and Television Administration, National Administration of State Secrets Protection and the National Cryptography Administration, jointly adopted and published the Measures for Cybersecurity Review (2021), which became effective on February 15, 2022. The Measures for Cybersecurity Review (2021) authorized the relevant government authorities to conduct cybersecurity review on a range of activities that affect or may affect national security, and required that, among others, in addition to "operator of critical information infrastructure" any "operator of network platform" holding personal information of more than one million users which seeks to list in a foreign stock exchange should also be subject to cybersecurity review. The Measures for Cybersecurity Review (2021) further elaborated the factors to be considered when assessing the national security risks of the relevant activities, including, among others, (i) the risk of core data, important data or a large amount of personal information being stolen, leaked, destroyed, and illegally used or exited the country; (ii) the risk of critical information infrastructure, core data, important data or a large amount of personal information being affected, controlled, or maliciously used by foreign governments if going public; and (iii) the risks of network information security. The cybersecurity review will also look into the potential national security risks from overseas IPOs.

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

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We do not expect to be subject to the cybersecurity review by the CAC for this offering, given that: (i) using our products and services does not require users to provide any personal information; (ii) we do not possess any personal information from users in our business operations; and (iii) data processed in our business does not have a bearing on national security and thus may not be classified as core or important data by the authorities. However, if the draft Regulations on Network Data Security is adopted into law and we become listed on Nasdaq, our PRC subsidiaries likely will be required to perform annual data security assessment either by itself or retaining a third-party data security service provider and submit such data security assessment report to the local agency every year. Neither the CAC nor any other PRC regulatory agency or administration has contacted the Company in connection with the PRC subsidiaries. Neither the Company nor the PRC subsidiaries are currently required to obtain regulatory approval from the CAC nor any other PRC authorities. However, there remains uncertainty as to how the Measures for Cybersecurity Review (2021) will be interpreted or implemented and whether the PRC regulatory agencies, including the CAC, may adopt new laws, regulations, rules, or detailed implementation and interpretation related to the Measures for Cybersecurity Review (2021). We cannot assure you that PRC regulatory agencies, including the CAC, would take the same view as we do, and there is no assurance that we can fully or timely comply with such laws. Our PRC subsidiaries currently have obtained substantially all permissions and approvals required for our operations in compliance with the relevant PRC laws and regulations in the PRC, including the business license. In the event that the applicable laws, regulations or interpretations change such that we are subject to any mandatory cybersecurity review and other specific actions required by the CAC, we cannot guarantee whether we can complete the registration process in a timely manner, or at all. If we inadvertently conclude that such approval is not required, fail to obtain and maintain such approvals, licenses or permits required for our business or respond to changes in the regulatory environment, we could be subject to liabilities, penalties and operational disruption, which may materially and adversely affect our business, operating, significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause such securities to significantly decline in value or become worthless.

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

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

#### It may be difficult for overseas regulators to conduct investigation or collect evidence within China.
Shareholder claims or regulatory investigation that are common in the United States generally are difficult to pursue as a matter of law or practicality in China. For example, in China, there are significant legal and other obstacles to providing information needed for regulatory investigations or litigation initiated outside China. Although the authorities in China may establish a regulatory cooperation mechanism with the securities regulatory authorities of another country or region to implement cross-border supervision and administration, such cooperation with the securities regulatory authorities in the Unities States may not be efficient in the absence of mutual and practical cooperation mechanism. Furthermore, according to Article 177 of the PRC Securities Law, or Article 177, which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the territory of the PRC. While detailed interpretation of or implementation rules under Article 177 have yet to be promulgated, the inability for an overseas securities regulator to directly conduct investigation or evidence collection activities within China may further increase difficulties faced by you in protecting your interests. See also "— Risks Related to Our Ordinary Shares and this Offering — You may face difficulties in protecting your interests, and your ability to protect your rights through U.S. courts may be limited, because we are incorporated under Cayman Islands law" for risks associated with investing in us as a Cayman Islands company.

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

Under the *PRC Enterprise Income Tax Law* and its implementation rules, an enterprise established outside of the PRC with "de facto management body" within China is considered a "resident enterprise" and will be subject to the enterprise income tax on its global income at the rate of 25%. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control and overall management over the business, productions, personnel, accounts and properties of an enterprise. In 2009, the State Administration of Taxation, or SAT, issued the *Circular of the State Administration of Taxation on Issues Relating to Identification of PRC*-Controlled *Overseas Registered Enterprises as Resident Enterprises in Accordance with the De Facto Standards of Organizational Management,* or SAT Circular 82, which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. Although this circular only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect SAT's general position on how the "de facto management body" should be applied in determining the tax resident status of all offshore enterprises. According to SAT Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China and will be subject to PRC enterprise income tax on its global income only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in China; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in China; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions, are located or maintained in China; and (iv) at least 50% of voting board members or senior executives habitually reside in China.

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

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

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*State Administration of Taxation on Issues Concerning the Withholding of Non*-resident *Enterprise Income Tax at Source,* or Bulletin 37, which came into effect on December 1, 2017. The Bulletin 37 further clarifies the practice and procedure of the withholding of nonresident enterprise income tax.

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

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

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

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

***The approval of the China Securities Regulatory Commission may be required in connection with this offering, and, if required, we cannot predict whether we will be able to obtain such approval.***

The M&A Rules requires an overseas special purpose vehicles that are controlled by PRC companies or individuals formed for the purpose of seeking a public listing on an overseas stock exchange through acquisitions of PRC domestic interests using shares of such special purpose vehicles or held by its shareholders as considerations to obtain the approval of the China Securities Regulatory Commission, or the CSRC, prior to the listing and trading of such special purpose vehicle's securities on an overseas stock exchange. However, the application of the M&A Rules remains unclear. If CSRC approval is required, it is uncertain whether it would be possible for us to obtain the approval.

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

The Draft Rules Regarding Overseas Listing stipulate that the Chinese-based companies, or the issuer, shall fulfill the filing procedures within three working days after the issuer makes an application for initial public offering and listing in an overseas market. The required filing materials for an initial public offering and listing shall include but not limited to: record-filing report and related undertakings; regulatory opinions, record-filing, approval and other documents issued by competent regulatory authorities of relevant industries (if applicable); and security assessment opinion issued by relevant regulatory authorities (if applicable); PRC legal opinion; and prospectus. In addition, an issuer who issues overseas listed securities after overseas listing shall, within three working days

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after the completion of the issuance, submit required filing materials to the CSRC, including but not limited to: filing report and relevant commitment; and domestic legal opinion. Furthermore, an overseas offering and listing is prohibited under any of the following circumstances: (1) if the intended securities offering and listing is specifically prohibited by national laws and regulations and relevant provisions; (2) if the intended securities offering and listing may constitute a threat to or endangers national security as reviewed and determined by competent authorities under the State Council in accordance with law; (3) if there are material ownership disputes over the equity, major assets, and core technology, etc. of the issuer; (4) if, in the past three years, the domestic enterprise or its controlling shareholders or actual controllers have committed corruption, bribery, embezzlement, misappropriation of property, or other criminal offenses disruptive to the order of the socialist market economy, or are currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (5) if, in past three years, directors, supervisors, or senior executives have been subject to administrative punishments for severe violations, or are currently under judicial investigation for suspicion of criminal offenses, or are under investigation for suspicion of major violations; (6) other circumstances as prescribed by the State Council. The Administration Provisions defines the legal liabilities of breaches such as failure in fulfilling filing obligations or fraudulent filing conducts, imposing a fine between RMB 1 million and RMB 10 million, and in cases of severe violations, a parallel order to suspend relevant business or halt operation for rectification, revoke relevant business permits or operational license.

However, there remains uncertainty as to how the M&A Rules will be interpreted or implemented in the context of an overseas offering the potential impact such modified or new laws and regulations will have on the daily business operation of the PRC subsidiaries. We cannot assure you that relevant PRC government agencies, including the CSRC, would reach the same conclusion as we do. The PRC regulatory authorities may in the future promulgate laws, regulations or implementing rules that requires HUHUTECH and its subsidiaries, including the PRC subsidiaries, to obtain regulatory approval from Chinese authorities before listing in the U.S. If it is determined that CSRC approval is required for this offering, we may face sanctions by the CSRC or other PRC regulatory agencies for failure to obtain or delay in obtaining CSRC approval for this offering. These sanctions may include fines and penalties on our operations in China, limitations on our operating privileges in China, delays in or restrictions on the repatriation of the proceeds from this offering into the PRC, restrictions on or prohibition of the payments or remittance of dividends by our subsidiaries in China, or other actions that could have a material and adverse effect on our business, financial condition, results of operations, reputation and prospects, as well as the trading price of our Ordinary Shares. The CSRC or other PRC regulatory agencies may also take actions requiring us, or making it advisable for us, to halt this offering before the settlement and delivery of the Ordinary Shares that we are offering. Consequently, if you engage in market trading or other activities in anticipation of and prior to the settlement and delivery of the Ordinary Shares we are offering, you would be doing so at the risk that the settlement and delivery may not occur. In addition, if the CSRC or other regulatory agencies later promulgate new rules or explanations requiring that we obtain their approvals for this offering, we may be unable to obtain a waiver of such approval requirements, if and when procedures are established to obtain such a waiver.

We believe that neither HUHUTECH, nor any of its subsidiaries, including the PRC subsidiary are currently required to obtain approval from Chinese authorities, including the China Securities Regulatory Commission, or CSRC, or Cybersecurity Administration Committee, or CAC, to list on U.S exchanges or issue securities to foreign investors. We have not been denied any permission either as of the date of this prospectus. However, if we were required to obtain approval in the future and were denied permission from Chinese authorities to list on U.S. exchanges, we will not be able to continue listing on U.S. exchange, which would materially affect the interest of the investors. It is uncertain when and whether the Company will be required to obtain permission from the PRC government to list on U.S. exchanges in the future, and even when such permission is obtained, whether it will be denied or rescinded. Although the Company is currently not required to obtain permission from any of the PRC federal or local government to obtain such permission and has not received any denial to list on the U.S. exchange, our operations could be adversely affected, directly or indirectly, by existing or future laws and regulations relating to its business or industry.

As of the date of this prospectus, the Draft Rules Regarding Overseas Listings have not been promulgated, and we are not required to obtain permission from the government of China for any offering pursuant to this prospectus. While the final version of the Draft Rules Regarding Overseas Listings are expected to be adopted in 2022, we believe that we will be required to comply with the filing requirements or procedures set forth in the Draft Rules Regarding Overseas Listings and that none of the situations that would clearly prohibit overseas offering and listing applies to us. In reaching this conclusion, we are relying on the advice of our PRC counsel, Jiangsu Junjin Law

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

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

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

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

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

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

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

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

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The failure or inability of such shareholders or beneficial owners to comply with SAFE Circular 37 or other SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC subsidiaries' ability to make distributions or pay dividends to us or affect our ownership structure. Moreover, failure to comply with the various foreign exchange registration requirements described above could result in liability under PRC law for circumventing applicable foreign exchange restrictions. As a result, our business operations and our ability to distribute profits to you could be materially and adversely affected.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The lack of access to the PCAOB inspection in China prevents the PCAOB from fully evaluating audits and quality control procedures of the auditors based in China. As a result, the investors may be deprived of the benefits of such PCAOB inspections. The inability of the PCAOB to conduct inspections of auditors in China makes it more difficult to evaluate the effectiveness of these accounting firms' audit procedures or quality control procedures as compared to auditors outside of China that are subject to the PCAOB inspections, which could cause existing and potential investors in our stock to lose confidence in our audit procedures and reported financial information and the quality of our financial statements.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As the interpretation and implementation of labor-related laws and regulations are still evolving, we cannot assure you that our employment practice does not and will not violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. If we are deemed to have violated relevant labor laws and regulations, we could be required to provide additional compensation to our employees and our business, financial condition and results of operations could be materially and adversely affected.

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

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

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

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

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

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

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

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the tensions in the relationship between China and surrounding Asian countries; and (4) concerns over the rising level of inflation in major industrial countries including the United States and worries that efforts to curb inflation may result in recession. There were and could be in the future a number of domino effects from such turmoil on our business, including significant decreases in orders from our customers, insolvency of key suppliers resulting in product delays, rises in raw material prices leading up to increased level of cost of sales that we may not be able to pass onto customers, inability of customers to obtain credit to finance purchases of our products and/or customer insolvencies, and counterparty failures negatively impacting our operations. Any systemic economic or financial crisis could cause revenues for the semiconductor industry as a whole to decline dramatically and could materially and adversely affect our results of operations. Since our inception, inflation in China has not materially impacted our results of operations. According to the National Bureau of Statistics of China, the year-over-year percent changes in the consumer price index for 2019, 2020 and 2021 were increases of 2.9%, 2.5% and 0.9%, respectively. The year-over-year percent changes in the consumer price index for November 2022 was 1.6%. Since inflation in China has not materially impacted our business operations and results of operations, we have not taken or planned to take actions to mitigate inflationary pressures. Although we have not in the past been materially affected by inflation since our inception, we can provide no assurance that we will not be affected in the future by higher rates of inflation in China.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

If you purchase Ordinary Shares in this offering, you will pay more for your Ordinary Shares than the amount paid by our existing shareholders for their Ordinary Shares on a per ordinary share basis. As a result, you will experience immediate and substantial dilution, representing the difference between the initial public offering price of per ordinary share, and our adjusted net tangible book value per ordinary share, after giving effect to our sale

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of the Ordinary Shares offered in this offering. In addition, you may experience further dilution to the extent that our Ordinary Shares are issued upon the exercise or vesting, as the case may be, of our share incentive awards. See "Dilution" for a more complete description of how the value of your investment in the Ordinary Shares will be diluted upon completion of this offering.

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

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

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

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

Our amended and restated memorandum and articles of association contain provisions to limit the ability of others to acquire control of our company or cause us to engage in change-of-control transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium over prevailing market prices by discouraging third parties from seeking to obtain control of our company in a tender offer or similar transaction. Our board of directors has the authority, without further action by our shareholders, to issue preferred shares with such preferred, deferred or other special rights, restrictions or privileges whether in regard to voting, distributions, a return of capital or otherwise and in such classes and series, if any, as the directors may determine, any or all of which may be greater than the rights associated with our Ordinary Shares. Preferred shares could be issued quickly with terms calculated to delay or prevent a change in control of our company or make removal of management more difficult. If our board of directors decides to issue preferred shares, the price of the Ordinary Shares may fall and the voting and other rights of the holders of our Ordinary Shares and the Ordinary Shares may be materially and adversely affected.

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

We may, from time to time, distribute rights to our shareholders, including rights to acquire securities. We may be unable to establish an exemption from registration under the Securities Act, and we are under no obligation to file a registration statement with respect to these rights or underlying securities or to endeavor to have a registration statement declared effective. Accordingly, holders of Ordinary Shares may be unable to participate in our rights offerings and may experience dilution of their holdings as a result.

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

We are an exempted company incorporated under the laws of the Cayman Islands. Our corporate affairs are governed by our amended and restated memorandum and articles of association, the Companies Act (as amended) of the Cayman Islands and the common law of the Cayman Islands. The rights of shareholders to take action against our directors, actions by our minority shareholders and the fiduciary duties of our directors owed to us under Cayman Islands law are to a large extent governed by the common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent in the Cayman Islands as well as from the common law of England, the decisions of whose courts are of persuasive authority, but are not binding, on a court in the Cayman Islands. The rights of our shareholders and the fiduciary duties of our directors owed to us

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under Cayman Islands law are not as clearly established as they would be under statutes or judicial precedent in some jurisdictions in the United States. In particular, the Cayman Islands has a less developed body of securities laws than the United States. Some U.S. states, such as Delaware, have more fully developed and judicially interpreted bodies of corporate law than the Cayman Islands. In addition, Cayman Islands companies may not have the standing to initiate a shareholder derivative action in a federal court of the United States.

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records or to obtain copies of lists of shareholders of these companies. Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of Companies. Our directors have discretion under our amended and restated memorandum and articles of association to determine whether or not, and under what conditions, our corporate records may be inspected by our shareholders, but are not obliged to make them available to our shareholders. This may make it more difficult for you to obtain the information needed to establish any facts necessary for a shareholder motion or to solicit proxies from other shareholders in connection with a proxy contest.

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

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

We are a Cayman Islands exempted company and substantially all of our assets are located outside of the United States. All of our current operations are conducted in China. In addition, substantially all of our current directors and officers are nationals and residents of countries other than the United States. As a result, it may be difficult or impossible for you to bring an action against us or against these individuals in the United States in the event that you believe that your rights have been infringed under the U.S. federal securities laws or otherwise. Even if you are successful in bringing an action of this kind, the laws of the Cayman Islands and of China may render you unable to enforce a judgment against our assets or the assets of our directors and officers. For more information regarding the relevant laws of the Cayman Islands and China, see "Enforceability of Civil liabilities."

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

As a company with less than US$1.235 billion in revenues for our last fiscal year, we qualify as an "emerging growth company" pursuant to the JOBS Act. Therefore, we may take advantage of specified reduced reporting and other requirements that are otherwise applicable generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 of the Sarbanes-Oxley Act of 2002, or Section 404, in the assessment of the emerging growth company's internal control over financial reporting and permission to delay adopting new or revised accounting standards until such time as those standards apply to private companies. As a result, if we elect not to comply with such reporting and other requirements, in particular the auditor attestation requirements, our investors may not have access to certain information they may deem important.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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#### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus contains forward-looking statements. All statements contained in this prospectus other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in the "Risk Factors" section. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this prospectus may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

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

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

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

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

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

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

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

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

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

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

Under Cayman Islands law, a Cayman Islands company may pay a dividend on its shares out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in the company being unable to pay its debts due in the ordinary course of business.

If we determine to pay dividends on any of our Ordinary Shares in the future, as a holding company, we will be dependent receiving funds from our operating subsidiary. Current PRC regulations permit our WFOE to pay dividends to HUHU HK only out of its accumulated profits, if any, determined in accordance with Chinese accounting standards and regulations. In addition, each of our PRC subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, to fund a statutory reserve until such reserve reaches 50% of its registered capital. Each of such entity in China is also required to further set aside a portion of its after- tax profits to fund the discretionary common reserve, although the amount to be set aside, if any, is determined at the discretion of its shareholder. Although the statutory reserves can be used, among other ways, to increase the registered capital and eliminate future losses in excess of retained earnings of the respective companies, the reserve funds are not distributable as cash dividends except in the event of liquidation. Our subsidiaries in China are required to set aside statutory reserves and have done so.

The PRC government also controls on the conversion of RMB into foreign currencies and the remittance of currencies out of the PRC. Therefore, we may experience difficulties in completing the administrative procedures necessary to obtain and remit foreign currency for the payment of dividends from our profits, if any. Furthermore, if our subsidiaries and affiliates in the PRC incur debt on their own in the future, the instruments governing the debt may restrict their ability to pay dividends or make other payments.

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

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

Pursuant to the Arrangement between Mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Double Tax Avoidance Arrangement, the 10% withholding tax rate may be lowered to 5% if a Hong Kong resident enterprise owns no less than 25% of a PRC project. However, the 5% withholding tax rate does not automatically apply only when certain requirements are satisfied, including without limitation that (a) the Hong Kong project must be the beneficial owner of the relevant dividends; and (b) the Hong Kong project must directly hold no less than 25% share ownership in the PRC project during the 12 consecutive months preceding its receipt of the dividends.

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

#### Ordinary Shares

#### U.S. Dollars

---

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

---

____________

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

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

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

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

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

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

---

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

---

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

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

---

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

---

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• recognize or enforce judgments of United States courts obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of the United States or any state in the United States; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entertain original actions brought in each respective jurisdiction against us or our directors or officers predicated upon the securities laws of the United States or any state in the United States.

Jiangsu Junjin Law Firm has further advised us that the recognition and enforcement of foreign judgments are provided for under the PRC Civil Procedures Law. PRC courts may recognize and enforce foreign judgments in accordance with the requirements of the PRC Civil Procedures Law based either on treaties between China and the country where the judgment is made or on principles of reciprocity between jurisdictions. China does not have any treaties or other form of reciprocity with the United States or the Cayman Islands that provide for the reciprocal recognition and enforcement of foreign judgments. In addition, according to the PRC Civil Procedures Law, courts in the PRC will not enforce a foreign judgment against us or our directors and officers if it decides that the judgment violates the basic principles of PRC law or national sovereignty, security, or public interest. As a result, it is uncertain whether, and on what basis, a PRC court would enforce a judgment rendered by a court in the United States or in the Cayman Islands. Under the PRC Civil Procedures Law, foreign shareholders may originate actions based on PRC law against a company in China for disputes if they can establish sufficient nexus to the PRC for a PRC court to have jurisdiction, and meet other procedural requirements, including, among others, the plaintiff must have a direct interest in the case, and there must be a concrete claim, a factual basis and a cause for the suit. It will be, however, difficult for U.S. shareholders to originate actions against us in the PRC in accordance with PRC laws because we are incorporated under the laws of the Cayman Islands and it will be difficult for U.S. shareholders, by virtue only of holding the Ordinary Shares, to establish a connection to the PRC for a PRC court to have jurisdiction as required under the PRC Civil Procedures Law.

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

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

![](tflowchart_001.jpg)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

*Number of contracts for our system integration projects*

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

*Average contract price for our system integration projects*

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

*Expansion of our geographic coverage* 

We believe there is a substantial opportunity to further grow our customer base by continuing to make significant investments in sales, marketing and brand awareness. Our ability to attract new customers will depend on a number of factors, including competitive dynamics in our targeted new geographical markets in Japan. We intend to expand our marketing and sale team with a focus on increasing sales in targeted geographies and customer segments. On the other hand, since the HUHU Japan just functions as a sales and customer service center, we do not expect to incur a significant capital investment in the short term.

#### Results of Operations

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

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

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the Six Months Ended <br>June 30,** | **For the Six Months Ended <br>June 30,** | | |
|  | **2022** | **2021** | **Change** | **% Change** |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 477642 | 263945 | 213697 | 81.0% |
| &nbsp;&nbsp;&nbsp; Total operating expenses | 956339 | 693485 | 262854 | 37.9% |
|  **Income from operations** | 1128395 | 557905 | 570490 | 102.3% |
|  | (Unaudited) | (Unaudited) |  |  |
|  OTHER INCOME (EXPENSES): |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 3215 | 5122 | (1907) | (37.2)% |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (22411) | (20844) | (1567) | 7.5% |
| &nbsp;&nbsp;&nbsp; Other income, net | 78838 | 109043 | (30205) | (27.7)% |
| &nbsp;&nbsp;&nbsp; Total other income, net | 59642 | 93321 | (33679) | (36.1)% |
|  INCOME BEFORE INCOME TAXES | 1188037 | 651226 | 536811 | 82.4% |
|  Provision for income taxes | 175785 | 88217 | 87568 | 99.3% |
|  NET INCOME | $1012252 | $563009 | $449243 | 79.8% |

---

*Revenues*

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

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

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

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

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

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

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

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

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

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

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

*Cost of Revenues*

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

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

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

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

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

#### Gross profit

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

---

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

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

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

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

*Operating Expenses*

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

---

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

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

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

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

*Other Income (Expense)*

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

*Income tax provision*

Income tax provision was $175,785 and $88,217 for the six months ended June 30, 2022 and 2021, respectively. Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on a case-by-case basis. According to PRC tax regulations, 200% of current year research & development ("R&D") expense approved by the local tax authority may be deducted from tax income since January 1, 2021. The additional R&D deduction lowered our effective income tax rate to 14.8% and 13.5% for the six months ended June 30, 2022 and 2021, respectively.

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

*Other comprehensive income*

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

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

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

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*Revenues*

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

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

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

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

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

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

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

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

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

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

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

*Cost of Revenues*

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

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

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

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

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

#### Gross profit

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

---

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

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

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

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

*Operating Expenses*

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

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

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

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

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

*Other Income (Expense)*

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

*Income tax provision*

Income tax provision was $252,605 and $316,239 in fiscal 2021 and 2020, respectively. Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate while preferential tax rates, tax holidays and even tax exemption may be granted on a case-by-case basis.

*Net Income*

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

*Other comprehensive income*

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

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#### Liquidity and Capital Resources
Substantially all of our operations are conducted in China and all of our revenue, expenses, and cash are denominated in RMB. RMB is subject to the exchange control regulation in China, and, as a result, we may have difficulty distributing any dividends outside of China due to PRC exchange control regulations that restrict our ability to convert RMB into U.S. dollars. As of June 30, 2022, December 31, 2021 and 2020, the aggregate amount of cash in banks of $1,108,685, $69,267 and $154,644 respectively, was held at major financial institutions in the PRC.

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

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

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

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

The Company believes that its cash on hand and operating cash flows will be sufficient to fund its operations over at least the next 12 months from the date of this report. However, the Company may need additional cash resources in the future if the Company experiences changed business conditions or other developments, and/or access to short term bank loans, and may also need additional cash resources in the future if the Company wishes to pursue opportunities for investment, acquisition, strategic cooperation or other similar actions. If it is determined that the cash requirements exceed the Company's amounts of cash on hand, the Company may seek to issue debt or equity securities or obtain a credit facility.

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

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

---

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

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

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

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

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

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

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

---

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

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

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

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

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

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

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

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

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | **Total** | **Less than <br>1 Year** | **1 – 3 Years** | **3 – 5 Years** | **More than <br>5 Years** |
|  Operating lease arrangements | $43524 | $15180 | $28344 | $— | $— |
|  Bank loans | 1642257 | 1642257 |  |  |  |
|  Total | $1685781 | $1657437 | $28344 | $— | $— |

---

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

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** | **Payment Due by Period** |
|  | **Total** | **Less than <br>1 Year** | **1 – 3 Years** | **3 – 5 Years** | **More than <br>5 Years** |
|  Operating lease arrangements | $54078 | $16661 | $30027 | $7390 | $— |
|  Bank loans | 1051376 | 1051376 |  |  |  |
|  Total | $1105454 | $1068037 | $30027 | $7390 | $— |

---

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

#### Off-Balance Sheet Arrangements
There were no off-balance sheet arrangements for the six months ended June 30, 2022 and for the years ended December 31, 2021 and 2020 that have or that in the opinion of management are likely to have, a current or future material effect on our financial condition or results of operations.

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

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

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

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

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

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

#### Critical Accounting Policies
We prepare our consolidated financial statements in conformity with U.S. GAAP, which requires us to make judgments, estimates and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past two years, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates.

Critical accounting estimates reflect significant judgments, estimates and uncertainties, which may result in materially different results under different assumptions and conditions. Since the use of estimates is an integral component of the financial reporting process, our actual results could differ from those estimates. Some of our accounting policies require a higher degree of judgment than others in their application. Our critical accounting policies and practices include the following: (i) accounts receivable and (ii) revenue recognition. The following descriptions of critical accounting estimates should be read in conjunction with our consolidated financial statements and accompanying notes and other disclosures included in this prospectus.

#### Accounts receivable, net
Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a

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provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for doubtful accounts amounted to $252,303, $419,509 and $411,427 as of June 30, 2022, December 31, 2021 and December 31, 2020, respectively.

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

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

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

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

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

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

*Revenue from system integration projects*

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

Revenue is recognized over the contract term using the input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer confirms progress completion to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with the operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

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

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*Revenue from product sales*

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

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

*Revenue from engineering consulting services*

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

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

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

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#### BUSINESS

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

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

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

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

We believe that we have grown to be one of the larger companies in the HPS and FMCS industry in China. Some of our clients are seasoned manufacturers in their industries in China. Our clients include Taiwan Semiconductor Manufacturing Co., Ltd., Yangtze Memory Technology Corp., Changxin Memory Technologies Inc., and AUO Corporation.

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

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

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

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

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

![](tflowchart_001.jpg)

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

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

HUHU Japan was incorporated on April 25, 2022 under the laws of Japan as a limited company and a wholly owned subsidiary of HUHUTECH. HUHU Japan currently does not have any operations. It will conduct the same type of business in Japan as HUHU China does in China in the near future.

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

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

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

*High-purity Process System*

The high-purity process system revolves around applying effective control of impurities in the production process. It is mainly used in the core processes of integrated circuit manufacturing in the pan-semiconductor industry, including the processes of doping, photolithography, etching and CVD film formation processes. The system consists of high-purity process system equipment, high-purity process system piping, valve boxes, valve components and monitoring systems. We offer the overall solution design, installation and value-added services such as ancillary engineering, testing, plant hosting, calibration and maintenance. The technology used in this industry involves a variety of basic sciences such as physics, semiconductor physics, physical chemistry and electrochemistry and various engineering disciplines such as chemical, mechanical, materials and surface treatment. The new production lines of domestic fabrication plants ("fabs") will bring development opportunities for us as such new fabs may require high-purity process systems. The wafer production at fabs requires complicated technology and comprehensive processing techniques. As a result, wafer production requires substantial financial investment and mature technology. We believe new production lines of domestic fabs enable us to have competitive edge in the industry and may bring substantial profit in the future. For example, our high-purity process system has covered 16-65nm equipment, and our high-purity process system possesses the essential technology to support equipment that is used to produce 5nm sized wafers. We believe such capacity gives us a comparative advantage in the industry, due to the technical difficulty in supporting equipment producing wafers of that size.

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

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

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

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

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

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

*Factory Management and Control System (FMCS)*

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

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

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

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

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

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

![](timage_002.jpg)

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

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

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

*Production Procedure*

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

The following chart illustrates our production process:

![](tflowchart_002.jpg)

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

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

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

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

*Expanding Capacity of Semi-conductor Production*

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

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

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

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

![](tbarchart_001.jpg)

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

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![](tbarchart_002.jpg)

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

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

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

![](tbarchart_003.jpg)

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

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

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

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

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

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

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

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

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

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

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

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

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#### Sales and Marketing
We believe that our solutions have a strong competitive edge in China's domestic market. Our CEO and CTO play essential roles in reaching out to potential clients, due to their multiple years of experience in the industry. Additionally, we have established a good reputation among our clients through our consistent high-quality products, which ensures we have plenty of long-term clients that we maintain carefully on a periodical basis. Due to our renowned reputation in China, we also receive consultation requests and offers from prospective clients, who discover our product and service by word of mouth and industry exhibitions such as SEMII CHINA and China (Shanghai) International Semiconductor Exhibition.

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

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

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

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

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

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

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

---

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

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

---

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

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

---

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

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#### Domain

---

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

---

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

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

---

| | | |
|:---|:---|:---|
|  **Location** | **Space <br>(in square foot)** | **Owned or Lease <br>and Lease Term <br>(years), as <br>applicable** |
|  A3-1208 Tianan Zhihui City, Xinwu District, Wuxi City, Jiangsu | 634.4 | 10.2021 – 10.2022 |
|  No. 13 Jinding Road, Qiaolin Jiedao, Pukou District, Nanjing, Jiangsu | 6000 | 10.01.2021 – 9.30.2025 |
|  Room 307 Building 5, Qiaolin, Pukou District, Nanjing, Jiangsu | 850 | 12.15.2021 – 12.14.2022 |
|  **Total** | 7484.4 |  |

---

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

---

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

---

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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#### Regulations on Intellectual Property Rights

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

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

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

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

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

The *Measures for Administrative Protection of Copyright Related to Internet*, which was jointly promulgated by the NCA and the MII on April 29, 2005 and became effective on May 30, 2005, provides that upon receipt of an

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infringement notice from a legitimate copyright holder, an ICP operator must take remedial actions immediately by removing or disabling access to the infringing content. If an ICP operator knowingly transmits infringing content or fails to take remedial actions after receipt of a notice of infringement that harms public interest, the ICP operator could be subject to administrative penalties, including an order to cease infringing activities, confiscation by the authorities of all income derived from the infringement activities, or payment of fines.

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

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

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

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

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

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

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*Foreign Investment*

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

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

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

*Overseas Investment and Financing and Round-Trip Investment*

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

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

*Dividend Distribution*

Under the Company Law, the Foreign Investment Law, and Implementation Regulations of Foreign Investment Law, wholly foreign-owned enterprises in the PRC may pay dividends only out of their accumulated after-tax profits,

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

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

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

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

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

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

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

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#### Regulations on Taxation

#### Enterprise Income Tax
On March 16, 2007, the National People's Congress promulgated the PRC Enterprise Income Tax Law, which was amended on February 24, 2017 and December 29, 2018. On December 6, 2007, the State Council enacted the Regulations for the Implementation of the Enterprise Income Tax Law, which became effective on January 1, 2008 and was amended on April 23, 2019. Under the Enterprise Income Tax Law and the relevant implementing regulations, both resident enterprises and non-resident enterprises are subject to tax in China. Resident enterprises are defined as enterprises that are established in China in accordance with PRC laws, or that are established in accordance with the laws of foreign countries but are actually or in effect controlled from within China. Non-resident enterprises are defined as enterprises that are organized under the laws of foreign countries and whose actual management is conducted outside China, but have established institutions or premises in China, or have no such established institutions or premises but have income generated from inside China. Under the Enterprise Income Tax Law and relevant implementing regulations, a uniform corporate income tax rate of 25% is applied. However, if non-resident enterprises have not formed permanent establishments or premises in China, or if they have formed permanent establishments or premises in China but there is no actual relationship between the relevant income derived in China and the established institutions or premises set up by them, withholding income tax is set at the rate of 10% with respect to their income sourced from inside the PRC.

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

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

Pursuant to the Arrangement Between the Mainland of China and the Hong Kong Special Administrative Region on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and Capital, and other applicable PRC laws, if a Hong Kong resident enterprise is determined by the competent PRC tax authority to have met the relevant conditions and requirements under this arrangement and other applicable laws, the 10% withholding tax on the dividends the Hong Kong resident enterprise receives from a PRC resident enterprise may be reduced to 5%. However, based on the Circular on Certain Issues with Respect to the Enforcement of Dividend Provisions in Tax Treaties issued on February 20, 2009, if the relevant PRC tax authorities determine, in their discretions, that a company benefits from such reduced income tax rate due to a structure or arrangement that is primarily tax-driven, such PRC tax authorities may adjust the preferential tax treatment. Pursuant to the Circular on Several Questions regarding the "Beneficial Owner" in Tax Treaties, which was issued on February 3, 2018 by SAT and became effective on April 1, 2018, when determining the applicant's status as the "beneficial owner" regarding

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tax treatment in connection with dividends, interests, or royalties in the tax treaties, several factors, including, without limitation, whether the applicant is obligated to pay more than 50% of his or her income in twelve months to residents in a third country or region, whether the business operated by the applicant constitutes the actual business activities, and whether the counterparty country or region to the tax treaties does not levy any tax or grant any tax exemption on relevant incomes or levy tax at an extremely low rate, will be taken into account, and such factors will be analyzed according to the actual circumstances of the specific cases.

#### Tax on Indirect Transfer
On February 3, 2015, SAT issued the Bulletin on Issues of Enterprise Income Tax on Indirect Transfers of Assets by Non-PRC Resident Enterprises, or Bulletin 7. Pursuant to Bulletin 7, an "indirect transfer" of assets, including equity interests in a PRC resident enterprise, by non-PRC resident enterprises, may be recharacterized and treated as a direct transfer of PRC taxable assets, if such arrangement does not have a reasonable commercial purpose and was established for the purpose of avoiding payment of PRC enterprise income tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax. When determining whether there is a "reasonable commercial purpose" in the transaction arrangement, features to be taken into consideration include, inter alia, whether the main value of the equity interest of the relevant offshore enterprise derives directly or indirectly from PRC taxable assets; whether the assets of the relevant offshore enterprise mainly consists of direct or indirect investment in China or if its income is mainly derived from China; and whether the offshore enterprise and its subsidiaries directly or indirectly holding PRC taxable assets have a real commercial nature which is evidenced by their actual function and risk exposure. Pursuant to Bulletin 7, where the payer fails to withhold any or sufficient tax, the transferor shall declare and pay such tax to the tax authority by itself within the statutory time limit. Late payment of applicable tax will subject the transferor to default interest. Bulletin 7 does not apply to transactions of sale of shares by investors through a public stock exchange where such shares are acquired on a public stock exchange. On October 17, 2017, SAT issued the Announcement of the State Administration of Taxation on Issues Concerning the Withholding of Non- resident Enterprise Income Tax at Source, or Bulletin 37, which was amended by the Announcement of the State Administration of Taxation on Revising Certain Taxation Normative Documents issued on June 15, 2018 by SAT. Bulletin 37 further elaborates the relevant implemental rules regarding the calculation, reporting, and payment obligations of the withholding tax by the non-resident enterprises. Nonetheless, there remain uncertainties as to the interpretation and application of Bulletin 7. Bulletin 7 may be determined by the tax authorities to be applicable to our offshore transactions or sale of our shares or those of our offshore subsidiaries where non-resident enterprises, being the transferors, are involved.

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

#### Regulations on Employment

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

#### Social Insurance
As required under the Regulation of Insurance for Labor Injury implemented on January 1, 2004 and amended in 2010, the Provisional Measures for Maternity Insurance of Employees of Corporations implemented on January 1, 1995, the Decisions on the Establishment of a Unified Program for Old-Aged Pension Insurance of the State Council issued on July 16, 1997, the Decisions on the Establishment of the Medical Insurance Program for Urban Workers of the State Council promulgated on December 14, 1998, the Unemployment Insurance Measures promulgated on January 22, 1999, and the PRC Social Insurance Law implemented on July 1, 2011 and amended on December 29,

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2018, employers are required to provide their employees in China with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, work-related injury insurance, and medical insurance. These payments are made to local administrative authorities. Any employer that fails to make social insurance contributions may be ordered to rectify the non-compliance and pay the required contributions within a prescribed time limit and be subject to a late fee. If the employer still fails to rectify the failure to make the relevant contributions within the prescribed time, it may be subject to a fine ranging from one to three times the amount overdue. On July 20, 2018, the General Office of the State Council issued the Plan for Reforming the State and Local Tax Collection and Administration Systems, which stipulated that SAT will become solely responsible for collecting social insurance premiums.

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

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

In addition, SAT has issued certain circulars concerning employee stock options and restricted shares. Under these circulars, employees working in China who exercise stock options or are granted restricted shares will be subject to PRC individual income tax. The PRC subsidiaries of an overseas listed company are required to file documents related to employee stock options and restricted shares with relevant tax authorities and to withhold individual income taxes of employees who exercise their stock options or purchase restricted shares. If the employees fail to pay or the PRC subsidiaries fail to withhold income tax in accordance with relevant laws and regulations, the PRC subsidiaries may be subject to sanctions imposed by the tax authorities or other PRC governmental authorities.

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

#### M&A Rules and Overseas Listing
On August 8, 2006, six PRC governmental and regulatory agencies, including the Ministry of Commerce and the China Securities Regulatory Commission, promulgated the M&A Rules governing the mergers and acquisitions of domestic enterprises by foreign investors, which became effective on September 8, 2006, and was revised in 2009. The M&A Rules, among other things, require that if an overseas company established or controlled by PRC companies or PRC citizens intends to acquire equity interests or assets of any other PRC domestic company affiliated with the PRC citizens, such acquisition must be submitted to the Ministry of Commerce for approval. The M&A Rules also require that an offshore special purpose vehicle, or a special purpose vehicle formed for overseas listing purposes and controlled directly or indirectly by PRC companies or individuals, shall obtain the approval of the China Securities Regulatory Commission prior to overseas listing and trading of such special purpose vehicle's securities on an overseas stock exchange.

As of the date of this prospectus, we have not applied for approval from the Ministry of Commerce related to the reorganization. According to our PRC legal counsel, Jiangsu Junjin Law Firm, as of the date of this prospectus, neither the Company nor HUHU China has been subject to any investigation, or receive any notice, warning, or sanction from relevant government authorities related to non-compliance with the PRC regulations related to M&A rules and overseas listing.

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#### Regulations in Japan

#### Companies Act
The Formation, organization, operation and management of companies in Japan are governed by the JP Companies Act(Act No.86 of 2005). The JP Companies Act applies to both JP domestic companies and foreign-invested companies. And the registration authority for Japanese companies is the Legal Affairs Bureau. According to the document issued by the Kumamoto District Legal Affairs Bureau, Huhu Japan was established on April 25, 2022, a company which is established under the JP Companies Act.

#### Construction Business Act
In Japan, some industries need to apply for "license" to the government . For example, There are various construction-related laws in Japan, including Construction Business Act (Act No. 100 of 1949), Act on Construction, etc. of Government and Other Public Office Facilities (Act No. 181 of 1951). A company which seeks to operate a construction business, must obtain a license from the Minster of Land, Infrastructure, transport and Tourism when the company establishes business offices (head office, branch offices or an equivalent office specified by Cabinet Order; the same applies hereinafter) in the areas of two or more prefectures, or from the prefectural governor having jurisdiction over the location of the office when the company establishes a business office in the areas of only one prefecture. Huhu Japan's business operation are mainly governed by the Construction Business Act. According to the Notification issued by the Prefecture governor of Kumamoto, Huhu Japan has obtained the "Specific Construction Business License" on September 16, 2022. The validity period of this license is from September 30, 2022 to September 29, 2027.

#### Labor Laws
There are various labor-related laws in Japan, including the Labor Standards Act (Act No. 49 of April 7, 1947, as amended), the Industrial Safety and Health Act (Act No. 57 of June 8, 1972, as amended), and the Labor Contracts Act (Act No. 128 of December 5, 2007). The Labor Standards Act regulates, among others, minimum standards for working conditions such as working hours, leave period, and leave days. The Industrial Safety and Health Act requires, among others, the implementation of measures to secure employee safety and protect the health of workers in the workplace. The Labor Contracts Act regulates, among others, the change of terms of employment contracts and working rules, and dismissal and disciplinary action. The company has signed labor contracts with employees in accordance with the provisions of the Labor Contract Law and complies with these regulations.

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#### MANAGEMENT
*Executive Officers and Directors*

Set forth below is information concerning our directors, director nominees, executive officers and other key employees.

---

| | | |
|:---|:---|:---|
|  **Name** | **Age** | **Position(s)** |
|  Yujun Xiao | 40 | Director, Chief Executive Officer |
|  Yinglai Wang | 39 | Chairperson of the Board |
|  Huiping Zhang | 43 | Chief Financial Officer |
|  Xiaoming Chen | 33 | Chief Technology Officer |
|  Xiaoqiu Zhang | 42 | Independent Director Nominee |
|  Qi Zheng | 42 | Independent Director Nominee |
|  Ronghua Xu | 43 | Independent Director Nominee |

---

Yujun Xiao, *Chief Executive Officer, Director*

Yujun Xiao has been our Chief Executive officer since July 9, 2021. He founded HUHU China in 2015, prior to which he founded Shanghai Huhu Technology Ltd. in 2010 and served as its CEO from 2010 to 2015. From 2006 to 2010, he was the head of the engineer department of Shentong Computer Ltd. From 2001 to 2006, he served as a senior engineer at South Asia Technology Ltd. Mr. Xiao has extensive experience in corporate management and strategic decision making. He oversees the Company's daily operations at a company-wide level and makes periodic business development plans based on the Company's strategies. Mr. Xiao is also responsible for overseeing the Shenton Company strategy and business plan execution. Mr. Xiao holds a bachelor degree from Yancheng Institute of Technology, specializing in machinery manufacturing and automation. Yujun Xiao is the spouse of Yinglai Wang, a director of the Company.

Huiping Zhang, *Chief Financial Officer*

Huiping Zhang has been our Chief Financial officer since July 9, 2021. She served as the Chief Financial Officer in multiple companies from 2002 to 2020. Her most recent experience prior to joining us was the CFO at Zhongcheng Zhihui Technology Ltd., a position she served from 2017 to 2020. Ms. Zhang has many years of experience in financial work and team management experience. She is familiar with companies related to banking, tax, industry and commerce. She is also familiar with work procedures in obtaining tax benefits at high technology companies. Ms. Zhang has extensive knowledge of financial coordination and due diligence work in the early stage of listing in China, and has great expertise in accounting and financial analysis. Ms. Zhang holds a bachelor degree from Jiangsu Open University in Accounting. She also has an Intermediate Accountant Certificate in China.

Yinglai Wang, *Chairperson of the Board*

Yinglai Wang has served as the Chairperson of the board since July 09, 2021. She co-founded Shanghai Huhu Technology Ltd. in 2010. She was a management consultant at Engineer Machinery Management Consulting from 2006 to 2009. She worked at Kunshan Haohaizi Group in the administrative management department from 2001 to 2005. Ms. Wang has extensive experience in corporate management in the mechanical engineering industry and has a unique and advanced perspective in the strategic development of the Company. She holds a bachelor's degree in Wuxi Taihu College, specializing in business management. Yinglai Wang is the spouse of Yujun Xiao, who is the CEO and a director of the Company.

Xiaoming Chen, *Chief Technology Officer*

Xiaoming Chen has been our Chief Technology officer since July 09, 2021. He has served as the Chief Technology officer in HUHU China since 2015, prior to which he was the head of technology in Hanjin Electrical Automation System (Kunshan) Ltd. since 2011. He has worked as an engineer in multiple companies since 2009. Mr. Chen has abundant expertise in large to medium automation system project planning. Mr. Chen holds a college degree from Xuzhou Industry Career Technique College, specializing in Electric automation.

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Xiaoqiu Zhang, Independent Director Nominee

Xiaoqiu Zhang founded Wuxi Xinzhan Corporate Management Consulting Limited and has served as the general manager since 2016. She oversees corporate management and creating strategic planning. From June 2015 to June 2018, she served as a director at Wuxi Dongling Smart Technology Co., during which she assisted the company in its public listing process in China. Ms. Zhang holds a college degree from Nanjing Political Academy in December 2004, and obtained bachelor degree in business management from Northeastern Finance University in October 2020.

Qi Zheng, Independent Director Nominee

Qi Zheng has served as the managing director of Beijing Weiheng (Wuxi) Law Firm since September 2021, prior to which role, he was the senior partner from March 2020 at Beijing Weiheng (Wuxi) Law Firm, responsible for the firm's daily operation and corporate compliance department and criminal law department. He is also in-house counsel to multiple companies. Prior to joining Beijing Weiheng, he was an attorney at Jiangsu Manxiu Law Firm from April 2017 to March 2020. Mr. Zheng holds a bachelor of law degree in Nanjing Finance University on June 6, 2003, and a master of law degree from Tongji University in March 2015.

Ronghua Xu, Independent Director Nominee

Ms. Ronghua Xu has experience in accounting for over 15 years. From June 2007 until now, she serves as the Finance Director in Wuxi Jinke Real Estate Development Co., Ltd., a subsidiary of Jinke Property Group Co.,Ltd which is listed on the Shenzhen Stock Exchange (ticker: 000656), during which she is in charge of financial accounting and fund management. She has played an important role in the financial statement analysis for public listed companies, internal control management, M&A planning, financing management, tax planning and budget management. Ms. Xu graduated from Nankai University with a bachelor's degree in Business Administration in 2003. She obtained certificates of Certified Public Accountant (CPA) in 2009 and Certified Tax Agents (CTA) in 2013.

#### Family Relationships
Our CEO and director, Yujun Xiao is spouse to our director Yinglai Wang.

#### Board of Directors
Our board of directors will consist of 3 directors upon declaration of effectiveness of the registration statement of which this prospectus forms a part. A director is not required to hold any shares in our company to qualify to serve as a director. Subject to the rules of the relevant stock exchange and disqualification by the chairman of the board of directors, a director may vote with respect to any contract, proposed contract, or arrangement in which he or she is materially interested. A director may exercise all the powers of the Company to borrow money, mortgage its business, property and uncalled capital and issue debentures or other securities whenever money is borrowed or as security for any obligation of the Company or of any third party. There are no directors' service contracts with the Company or its subsidiaries providing for benefits upon termination of employment.

#### Committees of the board of directors
Prior to the declaration of effectiveness of the registration statement of which this prospectus forms a part, we intend to establish an audit committee, a compensation committee and a nominating and corporate governance committee under the board of directors. We intend to adopt a charter for each of the three committees prior to the completion of this offering.

#### Duties of Directors
As a matter of Cayman Islands law, directors of a Cayman Islands company owe fiduciary duties to the company and separately a duty of care, diligence and skill to the company. Under Cayman Islands law, directors and officers owe the following fiduciary duties: (i) a duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; (ii) a duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; (iii) directors should not improperly fetter the exercise of future discretion; (iv) a duty to exercise powers fairly as between different classes of shareholders; (v) a duty

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to exercise independent judgment; and (vi) a duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests. In fulfilling their duty of care to our company, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time. Our company may have the right to seek damages if a duty owed by our directors is breached.

Our board of directors has all the powers necessary for managing, and, for directing and supervising, our business affairs. The functions and powers of our board of directors include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• convening shareholders' annual and extraordinary general meetings and reporting its work to shareholders at such meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declaring dividends and distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointing officers and determining the term of office of the officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exercising the borrowing powers of our company and mortgaging the property of our company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approving the transfer of shares in our company, including the registration of such transfer in our register of members.

#### Terms of Directors and Officers
Our directors may be appointed by an ordinary resolution of our shareholders. Alternatively, our board of directors may, by the majority resolution of the directors appoint any person as a director to fill a casual vacancy on our board or as an addition to the existing board. Our directors are not automatically subject to a term of office and hold office until such time as they are removed from office by an ordinary resolution of our shareholders. In addition, a director will cease to be a director if he (i) becomes bankrupt or makes any arrangement or composition with his creditors; (ii) dies or is found to be or becomes of unsound mind; (iii) resigns his office by notice in writing; (iv) without special leave of absence from our board, is absent from meetings of our board for three consecutive meetings and our board resolves that his office be vacated; or (v) is removed from office pursuant to any other provision of our articles of association.

Our officers are appointed by and serve at the discretion of the board of directors, and may be removed by our board of directors.

#### Employment Agreements
We have entered into employment agreements with each of our executive officers. Each executive officer has agreed to hold, both during and after the termination or expiry of his or her employment agreement, in strict confidence and not to use, except as required in the performance of his or her duties in connection with the employment or pursuant to applicable law, any of our confidential information or trade secrets, any confidential information or trade secrets of our clients or prospective clients, or the confidential or proprietary information of any third party received by us and for which we have confidential obligations and rights for these inventions, designs and trade secrets.

In addition, each executive officer has agreed to be bound by non-competition and non-solicitation restrictions during the term of his or her employment. Specifically, each executive officer has agreed not to engage in business that is similar or identical to the Company's business, or to provide assistance for any individual or organization who is involved in similar or identical business with the Company.

#### Compensation of Directors and Executive Officers
In fiscal years ended December 31, 2021 and 2020, we paid an aggregate of RMB 1,249,153 (USD196,019) and RMB 685,000 (USD104,981) in cash to our executive officers. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors and executive officers. The PRC subsidiaries are required by law to make contributions equal to certain percentages of each employee's salary for his or her pension insurance, medical insurance, unemployment insurance and other statutory benefits and a housing provident fund.

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#### RELATED PARTY TRANSACTIONS
The table below sets forth the major related parties and their relationships with the Company as of June 30, 2022 and December 31, 2021:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Related party relationships:**

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  **Mr. Yujun Xiao**<br>| **CEO and Chairman of the Board of Directors of the Company** |
|  **Shanghai Tongcheng Enterprise Management Co., Ltd.** | **Mr. Yujun Xiao served as a supervisor and holds 40% of the shares** |
|  **Anhui Zhongke Shenwei Intelligent Data Co., Ltd.,** <br>| **Mr. Yujun Xiao is the legal representative and holds 9.51% of the shares** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Due from related party:**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **<br>As of <br>December 31,** | **<br>As of <br>December 31,** |
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp; Shanghai Tongcheng Enterprise Management Co., Ltd. | $1493 | $1569 | $— |

---

The balance was fully rapid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Due to related party:**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **<br>As of <br>December 31,** | **<br>As of <br>December 31,** |
|  | **As of <br>June 30<br>2022<br>(Unaudited)** | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp; Mr. Yujun Xiao | $514459 | $637007 | $638702 |

---

Mr. Yujun Xiao, the CEO and the Chairman of the Board of Directors, made advances to the Company as working capital to support the Company's operations during the years ended December 31, 2021 and 2020. The balance was unsecured, interest-free and due upon demand. The company repaid Mr. Yujun Xiao $94,688 during the six months ended June 30, 2022.

#### Employment Agreements
See "Management — Employment Agreements."

#### Share Issuance
See "Principal Shareholders."

#### Other Related Party Transactions
On March 8, 2022, Anhui Zhongke and HUHU China entered into a software purchase agreement, where Anhui Zhongke sold a factory management and monitoring software to HUHU China. The purchase price of the software is 2,305,000RMB(approximately 329,285 USD).

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#### PRINCIPAL SHAREHOLDERS
The following table sets forth information with respect to the beneficial ownership, within the meaning of Rule 13d-3 under the Exchange Act, of our ordinary share as of the date of this prospectus, and as adjusted to reflect the sale of the ordinary share offered in this offering for

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our directors and executive officers who beneficially owns our ordinary share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known to us to own beneficially more than 5% of our ordinary share.

Beneficial ownership includes voting or investment power with respect to the securities. Except as indicated below, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all Ordinary Shares shown as beneficially owned by them. Percentage of beneficial ownership of each listed person prior to this offering is based on (i) 5,000,000 Ordinary Shares issued and outstanding as of the date of this prospectus immediately prior to the effectiveness of the registration statement of which this prospectus is a part and (ii) ordinary share underlying options, warrants or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus. Percentage of beneficial ownership of each listed person after this offering includes (i) ordinary share outstanding immediately after the completion of this offering and (ii) ordinary share underlying options, warrants or convertible securities held by each such person that are exercisable or convertible within 60 days of the date of this prospectus.

As of the date of the prospectus, we have 5 shareholders of record, none of which is located in the United States. Each shareholder currently has the same voting rights.

---

| | | | |
|:---|:---|:---|:---|
|  **Name of Beneficial Owner** | **Amount of <br>Beneficial <br>Ownership** | **Pre-Offering <br>Percentage <br>Ownership** | **Post-Offering <br>Percentage <br>Ownership** |
|  ***Directors, Director Appointees and Named Executive Officers:*** |  |  |  |
|  Yujun Xiao, Chief Executive Officer and Director<sup>(1)</sup> | 2573000 | 51.46% | % |
|  Yinglai Wang, Director<sup>(2)</sup> | 2062000 | 41.24% | % |
|  Huiping Zhang, Chief Financial Officer | 0 |  |  |
|  Xiaoming Chen, Chief Technology Officer | 0 |  |  |
|  **All directors, director nominees and executive officers as a group (4 persons)** | 4635000 | 92.70% | % |
|  ***5% or Greater Shareholders:*** |  |  |  |

---

____________

(1) Army Xiao Holdings Limited, a company formed under the laws of the British Virgin Islands, of which Yujun Xiao is the sole shareholder and director, holds 2,109,500 Ordinary Shares. In addition, Army Xiao Holdings Limited is the general partner of Increase Willpower Limited, a limited partnership formed under the laws of the British Virgin Islands. Yujun Xiao is deemed the beneficial owner of the 2,109,500 Ordinary Shares held by Army Xiao Holdings Limited and 463,500 Ordinary Shares held by Increase Willpower Limited.

(2) Billion Wang Holdings Limited, a company formed under the laws of the British Virgin Islands, of which Yinglai Wang is the sole shareholder and director, holds 2,062,000 Ordinary Shares.

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#### DESCRIPTION OF SHARE CAPITAL
We were incorporated as an exempted company with limited liability and our affairs are governed by our memorandum and articles of association, as amended and restated from time to time (the "Articles"), and the Companies Act (as amended) of the Cayman Islands, or the "Cayman Islands Companies Act." A Cayman Islands exempted company with limited liability:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is a company that conducts its business mainly outside the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is prohibited from trading in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the exempted company carried on outside the Cayman Islands (and for this purpose can effect and conclude contracts in the Cayman Islands and exercise in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to hold an annual general meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have to make its register of members open to inspection by shareholders of that company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may obtain an undertaking against the imposition of any future taxation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as a limited duration company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may register as a segregated portfolio company.

"Limited liability" means that the liability of each shareholder is limited to the amount unpaid by the shareholder on that shareholder's shares of the company (except in exceptional circumstances, such as involving fraud, the establishment of an agency relationship or an illegal or improper purpose or other circumstances in which a court may be prepared to pierce or lift the corporate veil).

#### Our Post-Offering Memorandum and Articles of Association
We have adopted a memorandum and articles of association, which will become effective and replace our current memorandum and articles of association in its entirety immediately prior to the completion of this offering. The following are summaries of material provisions of our memorandum and articles of association and the Companies Act insofar as they relate to the material terms of our Ordinary Shares.

*Ordinary Shares*

All of our issued and outstanding Ordinary Shares are fully paid and non-assessable. Our Ordinary Shares are issued in registered form, and are issued when registered in our register of members. Unless the board of directors determine otherwise, each holder of our Ordinary Shares will not receive a certificate in respect of such Ordinary Shares. Our shareholders may freely hold and vote their Ordinary Shares. We may not issue shares or warrants to bearer.

Our authorized share capital is US$50,000 divided into 5,000,000,000 Ordinary Shares, par value US$0.00001 per share. Subject to the provisions of the Cayman Islands Companies Act and our memorandum and articles of association, and directions given by any ordinary resolution and the rights attaching to any class of existing shares, the directors have general and unconditional authority to issue, allot, grant options over or otherwise dispose of shares to such persons, at such times and on such terms as they may determine. Such authority could be exercised by the directors to allot shares which carry rights and privileges that are preferential to the rights attaches to Ordinary Shares. The directors may refuse to accept any application for shares, and may accept any application in whole or in part, for any reason or for no reason.

At the completion of this offering, there will be — Ordinary Shares issued and outstanding. Our authorized share capital of 5,000,000,000 Ordinary Shares comprises solely a single class of shares. Shares sold in this offering will be delivered against payment from the underwriters upon the closing of the offering in New York, New York, on or about , 2023.

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*Dividends*

Subject to the provisions of the Cayman Islands Companies Act and the Articles, the directors may declare dividends or distributions out of our funds which are lawfully available for that purpose.

Under the laws of the Cayman Islands, our company may pay a dividend out of either profit or share premium account, provided that in no circumstances may a dividend be paid if this would result in our company being unable to pay its debts as they fall due in the ordinary course of business. The directors when paying dividends to shareholders may make such payment either in cash or in specie.

No dividend shall bear interest as against the Company.

*Voting Rights*

Subject to any rights or restrictions as to voting attached to any shares and the Articles, unless any share carries special voting rights, on a show of hands every shareholder who is present in person, by its duly authorized representative or by proxy shall have one vote. On a poll, every shareholder shall have one vote for every share of which he is the holder.

*Variation of Rights of Shares*

If at any time our share capital is divided into different classes of shares, the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of two-thirds of the issued shares of that class, or with the sanction of a special resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class.

Unless otherwise expressly provided by the terms, of issue of any class, the rights conferred on the holders of shares of that class shall not be deemed to be varied by the creation or issue of further shares ranking pari passu with that class.

*Alteration of Share Capital*

Subject to the Cayman Islands Companies Act, our shareholders may, by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase our share capital by such sum, to be divided into shares of such amount, and with such rights, privileges, priorities and restrictions attached to them as prescribed by that ordinary resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of our share capital into shares of larger amount than our existing shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to the Cayman Islands Companies Act, sub-divide our shares or any of them into shares of smaller amounts than that fixed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any shares which, at the date of the passing of that ordinary resolution, have not been taken or agreed to be taken by any person.

Subject to the Cayman Islands Companies Act and the Articles, we may, by special resolution of our shareholders, reduce the share capital of the Company and any capital redemption reserve in any manner.

*Calls on Shares and Forfeiture*

The directors may, from time to time, make calls on the shareholders in respect of some or all of any monies unpaid on their shares, whether in respect of par value or the premium payable on those shares, and each shareholder shall (subject to receiving at least 14 days' notice specifying the time or times of payment), pay to us at the time or times so specified the amount called on his shares. The directors may revoke or postpone a call at any time. The joint holders of a share shall be jointly and severally liable to pay all calls in respect of the share and the holder or joint holders of a share at the time of a call shall remain liable to pay the call on that share, notwithstanding any subsequent transfer of the share being registered by the Company. If a sum called in respect of a shares is not paid before or on the day appointed for payment of that call, the shareholder from whom it is due and payable shall pay

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interest on the sum at such rate as the directors may determine (being the rate fixed by the terms of allotment of the share or in the notice of the call or if no rate is fixed, at the rate of 6 percent per annum) from the day appointed for payment of the call to the time of the actual payment. The directors may, at their discretion, waive payment of the interest in full or in part.

We have a first and paramount lien on every share (whether or not it is a fully paid share). The lien is for all monies, whether presently payable or not, called or payable at a fixed time in respect of that share and for all debts, liabilities or other obligations owed, whether presently or not, by the shareholder or by one or more joint shareholders or by any of their estates to the Company.

At any time, the directors may declare any share to be wholly or in part exempt from the lien on shares provisions of the Articles. Our lien, if any, on a share shall extend to all distributions payable on it.

*Unclaimed Dividend*

Any dividend that remains unclaimed after a period of six years from the date of declaration of such dividend shall be forfeited and revert to the Company.

*Forfeiture or Surrender of Shares*

If a shareholder fails to pay any call or instalment of a call in respect of shares on the day appointed for payment, the directors may serve a notice on such shareholder naming a further date not earlier than the expiration of 14 days from the date of service on or before which the payment required by the notice is to be made and containing a statement that in the event of non-payment the shares, or any of them, will be liable to be forfeited.

If the requirements of such notice are not complied with, we may forfeit the shares together with any distributions declared payable in respect of the forfeited shares and not paid at any time before tender of payment.

A forfeited share may be sold or otherwise disposed of on such terms and in such manner as the directors think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms as the directors think fit. The proceeds of any sale or disposition of the forfeited Share may be received and used by us as the directors determine.

A person whose shares have been forfeited shall cease to be a shareholder in respect of the forfeited shares, but shall, notwithstanding such forfeit, remain liable to pay to us all monies which at the date of forfeiture were payable by him to us in respect of the shares, together with interest.

*Share Premium Account*

The directors shall establish a share premium account and shall carry the credit of such account from time to time to a sum equal to the amount or value of the premium paid on the issue of any share or capital contributed or such other amounts required by the Cayman Islands Companies Act.

*Redemption and Purchase of Own Shares*

Subject to the Cayman Islands Companies Act and to the rights attaching to any class of shares, we may by our directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue shares on terms that they are to be redeemed or liable to be redeemed, at our option or the shareholder holding those redeemable shares, on such terms and in such manner the directors may, before the issue of those shares determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase our own shares (including any redeemable shares) on such terms and in such manner as the directors determine.

When making payments in respect of redemption or purchase of shares, the directors may make such payments in cash or in kind if so authorized by the terms of issue of those shares or with the agreement of the holder of those shares.

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*Transfer of Shares*

The transferor shall be deemed to remain the holder of an ordinary share until the name of the transferee is entered on the register of members of the Company.

Where the shares in question are not listed on or subject to the rules of Nasdaq, shares are transferable, subject to the consent of our board of directors who may, in their absolute discretion, refuse to consent to any transfer and decline to register the transfer without giving any reason.

If our directors refuse to register a transfer of a share, they are required, within two months after the date on which the transfer was lodged, to notify the transferee of the refusal.

*Inspection of Books and Records*

Holders of our Ordinary Shares will have no general right under the Cayman Islands Companies Act to inspect or obtain copies of our register of members or our corporate records. Under Cayman Islands law, the names of our current directors can be obtained from a search conducted at the Registrar of Companies of the Cayman Islands.

*General Meetings*

All general meetings other than annual general meetings shall be called extraordinary general meetings. We may but are not obliged to hold an annual general meeting.

Any director may convene general meetings at such times and in such manner and places within or outside the Cayman Islands as the director considers necessary or desirable. General meetings shall also be convened by any one or more of our directors on the written request of shareholders entitled to exercise 10% or more of the voting rights in respect of the matter for which the meeting is requisitioned. Such written request must state the objects of the meeting and must be signed by the shareholders requisitioning the meeting. The written request must be lodged at our registered office in the Cayman Islands and may be delivered in counterpart. If the directors do not proceed to convene a general meeting within 21 days of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the voting rights of all of them, may convene the general meeting in the same manner as nearly as possible as that in which a general meeting may be convened by a director. Where the requisitionists fail to convene the general meeting within three months of their right to convene the meeting arising, the right to convene the general meeting shall lapse.

The director convening a general meeting shall give not less than seven days' notice (not including the day on which the notice is given (or deemed to be given), but including the day on which the period of time expires) of a general meeting to those shareholders whose names on the date the notice is given appear as members in our register of members and are entitled to vote at the meeting. Such director shall also give such notice to each of the directors.

A general meeting held in contravention of the requirement to give notice is valid if shareholders holding at least 90% of the total voting rights on all the matters to be considered at the meeting have waived notice of the meeting and, for this purpose, the presence of a shareholder at the meeting shall constitute waiver in relation to all the shares which that shareholder holds.

Subject to the Cayman Islands Companies Act and with the consent of the shareholders who, individually or collectively, hold at least ninety percent of the voting rights of all those who have a right to vote at a general meeting, a general meeting may be convened on shorter notice.

A general meeting is duly constituted if, at the commencement of the meeting, there are present in person, through their authorized representative or by proxy one or more shareholders holding in aggregate at least one-third of the paid up voting share capital of the Company entitled to vote on resolutions of shareholders to be considered at the meeting. Where a quorum comprises a single shareholder or proxy, such person may pass a resolution of shareholders and a certificate signed by such person accompanied where such person be a proxy by a copy of the proxy instrument shall constitute a valid resolution of shareholders.

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If, within two hours from the time appointed for the general meeting, a quorum is not present, the meeting, if convened upon the requisition of shareholders, shall be dissolved. In any other case it shall stand adjourned to the next business day in the jurisdiction in which the meeting was to have been held at the same time and place or to such other time and place as the directors may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the shareholders present shall be a quorum.

The chairman may, with the consent of the meeting, adjourn any meeting from time to time, and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at the meeting from which the adjournment took place.

At any general meeting the chairman is responsible for deciding in such manner as considered appropriate whether any resolution proposed has been carried or not and the result of the decision shall be announced to the meeting and recorded in the minutes of the meeting. If the chairman has any doubt as to the outcome of the vote on a proposed resolution, he shall cause a poll to be taken of all votes cast upon such resolution and the result shall be announced to the meeting and recorded in the minutes of the meeting. The minutes of the meeting shall be conclusive evidence of the fact that a resolution was carried or not without proof of the number or proportion of the votes recorded in favour of or against such resolution.

*Preferred Shares*

Pursuant to our memorandum and articles of association, our directors have the authority to issue shares and other securities of the Company with such preferred, deferred or other special rights, restrictions or privileges whether with regard to voting, distributions, a return of capital, or otherwise and in such classes and series, if any, as the directors may determine. We do not currently have plans to issue any preferred shares.

*Directors*

We may by ordinary resolution or by resolution of our directors impose, a maximum or minimum number of directors required to hold office at any time and vary such limits from time to time. Under the Articles, we are required to have a minimum of one director.

A director may be appointed by ordinary resolution or by the directors. Any appointment may be to fill a vacancy or as an additional director.

The directors shall be entitled to such remuneration as the directors may determine.

We may in general meeting fix a minimum shareholding required to be held by a director, but unless and until so fixed a director is not required to hold shares.

A director may be removed by ordinary resolution or by a resolution of our directors.

Subject to the provisions of the articles, the office of a director shall be vacated if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he gives notice in writing to the Company that he resigns the office of director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he absents himself (without being represented by an alternate director appointed by him) from three consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he has by reason of such absence vacated office; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors generally;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he is found to be or becomes of unsound mind; or;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all the other directors (being not less than two in number) resolve that he should be removed as a director;

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Each of the compensation committee and the nominating and corporate governance committee shall consist of at least three directors and the majority of the committee members shall be independent within the meaning of the NASDAQ corporate governance rules. The audit committee shall consist of at least three directors, all of whom shall be independent within the meaning of the NASDAQ corporate governance rules and will meet the criteria for independence set forth in Rule 10A-3 or Rule 10C-1 of the Exchange Act.

*Powers and Duties of Directors*

Subject to the provisions of the Cayman Islands Companies Act and our memorandum and articles and any directions given by ordinary resolution, our business and affairs shall be managed by, or under the direction or supervision of, the directors. The directors shall have all the powers necessary for managing, and for directing and supervising, our business and affairs of the Company as are not by the Cayman Islands Companies Act, our memorandum and articles or the terms of any special resolution required to be exercised by the shareholders. No alteration of our memorandum and articles or any direction given by ordinary or special resolution shall invalidate any prior act of the directors that was valid at the time undertaken.

The directors may delegate any of their powers to any committee consisting of one or more directors. They may also delegate to any managing director or director holding any other executive office such of their powers as they consider desirable to be exercised by him provided that an alternate director may not act as managing director and the appointment of a managing director shall automatically terminate if he ceases to be a director. Any such delegation may be made subject to any conditions the directors may impose and may be revoked or altered. Subject to any such conditions, the proceedings of a committee of directors shall be governed by the Articles regulating the proceedings of directors, so far as they are capable of applying.

The directors may establish any committees, local boards or agencies or appoint any person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees or local boards. Any such appointment may be made subject to any conditions the directors may impose, and may be revoked or altered. Subject to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating the proceedings of directors, so far as they are capable of applying.

The directors may by power of attorney or otherwise appoint any company, firm, person or body of persons, whether nominated directly or indirectly by the directors, to be the attorney or authorized signatory of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the directors under the Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorized signatories as the directors may think fit and may also authorize any such attorney or authorized signatory to delegate all or any of the powers, authorities and discretions vested in him.

The directors may appoint such officers as they consider necessary on such terms, at such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the directors may think fit. Unless otherwise specified in the terms of his appointment an officer may be removed by the directors.

The directors may exercise all the powers of the Company to incur indebtedness, liabilities or obligations and to issue debentures, debenture stock, mortgages, bonds and other such securities and to secure indebtedness, liabilities or obligations whether of the Company or of any third party.

No person shall be disqualified from the office of director or alternate director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract or any other contract or transaction entered into by or on behalf of the Company in which any director or alternate director shall be in anyway interested be or be liable to be avoided, nor shall any director or alternate director so contracting or being so interested be liable to account to the Company for any profit realized by any such contract or transaction by reason of such director holding office or of the fiduciary relation thereby established. A director (or his alternate director in his absence) shall be at liberty to vote in respect of any contract or transaction in which he is interested provided that the nature of the interest of any director or alternate director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon. A general notice that a director or alternate director is a shareholder, director, officer or employee of any specified firm or company and is to be regarded as

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interested in any transaction with such firm or company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

*Capitalization of Profits*

The directors may capitalize any sum standing to the credit of any of the Company's reserve accounts (including share premium account and capital redemption reserve) or to the credit of profit and loss account or otherwise available for distribution and appropriate such sum to shareholders in the proportions in which such sum would have been divisible amongst them had the same been a distribution of profits by way of dividend and apply such sum on their behalf in paying up in full unissued shares for issue, allotment and distribution credited as fully paid-up to and amongst them in the proportions aforesaid. In such event the directors may make such provisions as they think fit in the case of shares becoming distributable in fractions.

*Liquidation Rights*

The shareholders may, subject to the Articles and any other sanction required by the Cayman Islands Companies Act, pass a special resolution allowing the Company to be wound up voluntarily. If the Company shall be wound up, and the assets available for distribution amongst the shareholders shall be insufficient to repay the whole of the share capital, such assets shall be distributed so that, as nearly as may be, the losses shall be borne by the shareholders in proportion to the par value of the shares held by them. If in a winding up the assets available for distribution amongst the shareholders shall be more than sufficient to repay the whole of the share capital at the commencement of the winding up, the surplus shall be distributed amongst the shareholders in proportion to the par value of the shares held by them at the commencement of the winding up subject to a deduction from those shares in respect of which there are monies due, of all monies payable to the Company for unpaid calls or otherwise, without prejudice to the rights of holders of shares issued upon special terms and conditions.

*Register of Members*

Under the Cayman Islands Companies Act, we must keep a register of members and there should be entered therein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the names and addresses of our shareholders, together with a statement of the shares held by each shareholder, such statement shall confirm (i) the amount paid or agreed to be considered as paid, on the shares of each shareholder; (ii) the number and category of shares held by each member, and (iii) whether each relevant category of shares held by a member carries voting rights under the articles of association of the company, and if so, whether such voting rights are conditional;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which the name of any person was entered on the register as a shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which any person ceased to be a shareholder.

Under the Cayman Islands Companies Act, the register of members of our company is prima facie evidence of the matters set out therein (that is, the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a shareholder registered in the register of members is deemed as a matter of the Cayman Islands Companies Act to have legal title to the shares as set against its name in the register of members. Upon the completion of this offering, the register of members will be immediately updated to record and give effect to the issuance of shares by us to the custodian or its nominee. Once our register of members has been updated, the shareholders recorded in the register of members will be deemed to have legal title to the shares set against their name.

If the name of any person is incorrectly entered in or omitted from our register of members, or if there is any default or unnecessary delay in entering on the register the fact of any person having ceased to be a shareholder of our company, the person or shareholder aggrieved (or any shareholder of our company or our company itself) may apply to the Grand Court of the Cayman Islands for an order that the register be rectified, and the Court may either refuse such application or it may, if satisfied of the justice of the case, make an order for the rectification of the register.

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*Differences in Corporate Law*

The Cayman Islands Companies Act is derived, to a large extent, from the older Companies Acts of the United Kingdom but does not follow recent United Kingdom statutory enactments, and accordingly there are significant differences between the Cayman Islands Companies Act and the current Companies Act of the United Kingdom. In addition, the Cayman Islands Companies Act differs from laws applicable to United States corporations and their shareholders. Set forth below is a summary of certain significant differences between the provisions of the Cayman Islands Companies Act applicable to us and the laws applicable to companies incorporated in the State of Delaware in the United States.

*Mergers and Similar Arrangements*

The Cayman Islands Companies Act permits mergers and consolidations between Cayman Islands companies and between Cayman Islands companies and non-Cayman Islands companies. For these purposes, (1) "merger" means the merging of two or more constituent companies and the vesting of their undertaking, property and liabilities in one of such companies as the surviving company and (2) a "consolidation" means the combination of two or more constituent companies into a consolidated company and the vesting of the undertaking, property and liabilities of such companies to the consolidated company. In order to effect such a merger or consolidation, the directors of each constituent company must approve a written plan of merger or consolidation, which must then be authorized by (1) a special resolution of the shareholders of each constituent company, and (2) such other authorization, if any, as may be specified in such constituent company's articles of association. The written plan of merger or consolidation must be filed with the Registrar of Companies of the Cayman Islands together with a declaration as to the solvency of the consolidated or surviving company, a declaration as to the assets and liabilities of each constituent company and an undertaking that a copy of the certificate of merger or consolidation will be given to the members and creditors of each constituent company and that notification of the merger or consolidation will be published in the Cayman Islands Gazette. Dissenting shareholders have the right to be paid the fair value of their shares (which, if not agreed between the parties, will be determined by the Cayman Islands courts) if they follow the required procedures, subject to certain exceptions. Court approval is not required for a merger or consolidation which is effected in compliance with these statutory procedures.

In addition, the Cayman Islands Companies Act contains statutory provisions that facilitate the reconstruction of companies by way of schemes of arrangement, provided that the arrangement is approved by a majority in number of each class of shareholders and creditors with whom the arrangement is to be made, and who must, in addition, represent three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently the arrangement must be sanctioned by the Grand Court of the Cayman Islands (the "Grand Court"). While a dissenting shareholder has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the arrangement if it determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the statutory provisions as to the required majority vote have been met;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the shareholders have been fairly represented at the meeting in question and the statutory majority are acting bona fide without coercion of the minority to promote interests adverse to those of the class;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the arrangement is such that may be reasonably approved by an intelligent and honest man of that class acting in respect of his interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the arrangement is not one that would more properly be sanctioned under some other provision of the Cayman Islands Companies Act.

The Cayman Islands Companies Act also contains a statutory power of compulsory acquisition which may facilitate the "squeeze out" of dissentient minority shareholders upon a tender offer. When a tender offer is made and accepted by holders of 90.0% of the shares affected within four months, the offeror may, within a two-month period commencing on the expiration of such four-month period, require the holders of the remaining shares to transfer such shares on the terms of the offer. An objection can be made to the Grand Court, but this is unlikely to succeed in the case of an offer which has been so approved unless there is evidence of fraud, bad faith or collusion.

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If an arrangement and reconstruction is thus approved, or if a takeover offer is made and accepted, a dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be available to dissenting shareholders of Delaware corporations, providing rights to receive payment in cash for the judicially determined value of the shares.

*Shareholders' Suits and Protection of Minority Shareholders.*

In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company and as a general rule, a derivative action may not be brought by a minority shareholder. However, based on English law authorities, which would in all likelihood be of persuasive authority in the Cayman Islands, the Grand Court can be expected to follow and apply the common law principles (namely the rule derived from the seminal English case of *Foss v. Harbottle* and the exceptions thereto, which limits the circumstances in which a shareholder may bring a derivative action on behalf of the company or a personal action to claim loss which is reflective of loss suffered by the company) which permit a minority shareholder to commence a class action against, or derivative actions in the name of, a company to challenge the following acts in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a company acts or proposes to act illegally or ultra vires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the act complained of, although not ultra vires, could only be effected duly if authorized by more than a simple majority vote that has not been obtained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• those who control the company are perpetrating a "fraud on the minority."

In the case of a company (not being a bank) having its share capital divided into shares, the Grand Court may, on the application of members holding not less than one fifth of the shares of the company in issue, appoint an inspector to examine the affairs of the company and to report thereon in such manner as the Grand Court shall direct.

Any of our shareholders may petition the Grand Court which may make a winding up order if the Grand Court of the Cayman Islands is of the opinion that it is just and equitable that we should be wound up and cease doing business, which may occur on the basis that there has been a loss of substratum and/or misconduct by management. Alternatively, the Grand Court may make an order: (1) regulating the conduct of our affairs; (2) requiring us to refrain from doing or continuing an act complained of by the shareholder petitioner or to do an act which the shareholder petitioner has complained we have omitted to do; (3) authorizing civil proceedings to be brought in our name and on our behalf by the shareholder petitioner on such terms as the Grand Court may direct; or (4) providing for the purchase of the shares of any of our shareholders by other shareholders or us and, in the case of a purchase by us, a reduction of our capital accordingly.

Generally, claims against us must be based on the general laws of contract or tort applicable in the Cayman Islands or individual rights as shareholders as established by our memorandum and articles of association.

*Indemnification of Directors and Executive Officers and Limitation of Liability*

The Cayman Islands law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our memorandum and articles of association permit indemnification of officers and directors for liabilities incurred in their capacities as such as a result of any act or failure to act unless such losses or damages arise from their own actual fraud or willful default. This standard of conduct is generally the same as permitted under the Delaware General Corporation Law for a Delaware corporation.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers or persons controlling us under the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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*Directors' Fiduciary Duties*

Under Delaware corporate law, a director of a Delaware corporation has a fiduciary duty to the corporation and its shareholders. This duty has two components: the duty of care and the duty of loyalty. The duty of care requires that a director act in good faith, with the care that an ordinarily prudent person would exercise under similar circumstances. Under this duty, a director must inform himself of, and disclose to shareholders, all material information reasonably available regarding a significant transaction. The duty of loyalty requires that a director acts in a manner he reasonably believes to be in the best interests of the corporation. He must not use his corporate position for personal gain or advantage. This duty prohibits self-dealing by a director and mandates that the best interest of the corporation and its shareholders take precedence over any interest possessed by a director, officer or controlling shareholder and not shared by the shareholders generally. In general, actions of a director are presumed to have been made on an informed basis, in good faith and in the honest belief that the action taken was in the best interests of the corporation. However, this presumption may be rebutted by evidence of a breach of one of the fiduciary duties. Should such evidence be presented concerning a transaction by a director, the director must prove the procedural fairness of the transaction, and that the transaction was of fair value to the corporation.

As a matter of Cayman Islands law, directors of a Cayman Islands company owe fiduciary duties to the company. Under Cayman Islands law, directors and officers owe the following fiduciary duties: (i) a duty to act in good faith in what the director or officer believes to be in the best interests of the company as a whole; (ii) a duty to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose; (iii) directors should not improperly fetter the exercise of future discretion; (iv) a duty to exercise powers fairly as between different classes of shareholders; (v) a duty to exercise independent judgment; and (vi) a duty not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests. In fulfilling their duty of care to our company, our directors must ensure compliance with our memorandum and articles of association, as amended and restated from time to time.

A director of a Cayman Islands company owes to the company a duty to act with skill and care. It was previously considered that a director need not exhibit in the performance of his duties a greater degree of skill than may reasonably be expected from a person of his knowledge and experience. However, there are indications that English and Commonwealth courts are moving towards an objective standard with regard to the required skill and care and these authorities are likely to be followed in the Cayman Islands.

*Shareholder Proposals*

Under the Delaware General Corporation Law, a shareholder has the right to put any proposal before the annual meeting of shareholders, provided it complies with the notice provisions in the governing documents. The Delaware General Corporation Law does not provide shareholders an express right to put any proposal before the annual meeting of shareholders, but in keeping with common law, Delaware corporations generally afford shareholders an opportunity to make proposals and nominations provided that they comply with the notice provisions in the certificate of incorporation or bylaws. A special meeting may be called by the board of directors or any other person authorized to do so in the governing documents, but shareholders may be precluded from calling special meetings.

The Cayman Islands Companies Act provides shareholders with only limited rights to requisition a general meeting, and does not provide shareholders with any right to put any proposal before a general meeting. However, these rights may be provided in a company's articles of association. Our articles provide that general meetings may also be convened by any one or more of our directors on the written request of shareholders entitled to exercise 10% or more of the voting rights in respect of the matter for which the meeting is requisitioned. Such written request must state the objects of the meeting and must be signed by the shareholders requisitioning the meeting. The written request must be lodged at our registered office in the Cayman Islands and may be delivered in counterpart. If the directors do not proceed to convene a general meeting within 21 days of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the voting rights of all of them, may convene the general meeting in the same manner as nearly as possible as that in which a general meeting may be convened by a director. Where the requisitionists fail to convene the general meeting within three months of their right to convene the meeting arising, the right to convene the general meeting shall lapse. As a Cayman Islands exempted company, we are not obligated by law to call shareholders' annual general meetings.

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*Cumulative Voting*

Under the Delaware General Corporation Law, cumulative voting for election of directors is not permitted unless the corporation's certificate of incorporation specifically provides for it. Cumulative voting potentially facilitates the representation of minority shareholders on a board of directors since it permits the minority shareholder to cast all the votes to which the shareholder is entitled on a single director, which increases the shareholder's voting power with respect to electing such director. As permitted under the Cayman Islands Companies Act, our articles do not provide for cumulative voting. As a result, our shareholders are not afforded any less protections or rights on this issue than shareholders of a Delaware corporation.

*Removal of Directors*

Under the Delaware General Corporation Law, a director of a corporation with a classified board may be removed only for cause with the approval of a majority of the outstanding shares entitled to vote, unless the certificate of incorporation provides otherwise. Subject to the provisions of our articles (which include the removal of a director by ordinary resolution), the office of a director may be vacated if: (a) he gives notice in writing to the Company that he resigns the office of director; or (b) he absents himself (without being represented by an alternate director appointed by him) from three consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he has by reason of such absence vacated office; or; (c) dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; (d) he is found to be or becomes of unsound mind; or; (e) the other directors (being not less than two in number) resolve that he should be removed as a director.

*Transactions with Interested Shareholders*

The Delaware General Corporation Law contains a business combination statute applicable to Delaware corporations whereby, unless the corporation has specifically elected not to be governed by such statute by amendment to its certificate of incorporation or bylaws that is approved by its shareholders, it is prohibited from engaging in certain business combinations with an "interested shareholder" for three years following the date that such person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or more of the target's outstanding voting stock or who or which is an affiliate or associate of the corporation and owned 15% or more of the corporation's outstanding voting stock within the past three years. This has the effect of limiting the ability of a potential acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if, among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either the business combination or the transaction which resulted in the person becoming an interested shareholder. This encourages any potential acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target's board of directors.

The Cayman Islands Companies Act has no comparable statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However, although the Cayman Islands Companies Act does not regulate transactions between a company and its significant shareholders, under Cayman Islands law such transactions must be entered into bona fide in the best interests of the company and for a proper corporate purpose and not with the effect of constituting a fraud on the minority shareholders.

*Dissolution; Winding Up*

Under the Delaware General Corporation Law, unless the board of directors approves the proposal to dissolve, dissolution must be approved by shareholders holding 100% of the total voting power of the corporation. Only if the dissolution is initiated by the board of directors may it be approved by a simple majority of the corporation's outstanding shares. Delaware law allows a Delaware corporation to include in its certificate of incorporation a supermajority voting requirement in connection with dissolutions initiated by the board of directors.

Under the Cayman Islands Companies Act and our articles, the Company may be wound up by a special resolution of our shareholders, or if the winding up is initiated by our board of directors, by either a special resolution of our members or, if our company is unable to pay its debts as they fall due, by an ordinary resolution of

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our members. In addition, a company may be wound up by an order of the courts of the Cayman Islands. The court has authority to order winding up in a number of specified circumstances including where it is, in the opinion of the court, just and equitable to do so.

*Variation of Rights of Shares*

Under the Delaware General Corporation Law, a corporation may vary the rights of a class of shares with the approval of a majority of the outstanding shares of such class, unless the certificate of incorporation provides otherwise. Under the Cayman Islands Companies Act and our articles, if our share capital is divided into more than one class of shares, the rights attaching to any class of share (unless otherwise provided by the terms of issue of the shares of that class) may be varied either with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the sanction of a resolution passed by a majority of not less than two-thirds of the holders of shares of the class present in person or by proxy at a separate general meeting of the holders of shares of that class.

*Amendment of Governing Documents*

Under the Delaware General Corporation Law, a corporation's certificate of incorporation may be amended only if adopted and declared advisable by the board of directors and approved by a majority of the outstanding shares entitled to vote, and the bylaws may be amended with the approval of a majority of the outstanding shares entitled to vote and may, if so provided in the certificate of incorporation, also be amended by the board of directors. Under the Cayman Islands Companies Act, our articles may only be amended by special resolution of our shareholders.

*Anti-money Laundering — Cayman Islands*

In order to comply with legislation or regulations aimed at the prevention of money laundering, we may be required to adopt and maintain anti-money laundering procedures, and may require subscribers to provide evidence to verify their identity. Where permitted, and subject to certain conditions, we may also delegate the maintenance of our anti-money laundering procedures (including the acquisition of due diligence information) to a suitable person.

We reserve the right to request such information as is necessary to verify the identity of a subscriber. In the event of delay or failure on the part of the subscriber in producing any information required for verification purposes, we may refuse to accept the application, in which case any funds received will be returned without interest to the account from which they were originally debited.

We also reserve the right to refuse to make any redemption payment to a shareholder if our directors or officers suspect or are advised that the payment of redemption proceeds to such shareholder might result in a breach of applicable anti-money laundering or other laws or regulations by any person in any relevant jurisdiction, or if such refusal is considered necessary or appropriate to ensure our compliance with any such laws or regulations in any applicable jurisdiction.

If any person resident in the Cayman Islands knows or suspects or has reason for knowing or suspecting that another person is engaged in criminal conduct or is involved with terrorism or terrorist property and the information for that knowledge or suspicion came to their attention in the course of their business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) a nominated officer (appointed in accordance with the Proceeds of Crime Act (as amended) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (as amended), if the disclosure relates to criminal conduct or money laundering or (ii) to a police constable or a nominated officer (pursuant to the Terrorism Act (as amended of the Cayman Islands) or the Financial Reporting Authority, pursuant to the Terrorism Act (as amended), if the disclosure relates to involvement with terrorism or terrorist financing and terrorist property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

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#### SHARES ELIGIBLE FOR FUTURE SALE
As of the date of this prospectus, our authorized share capital is US$50,000 divided into 5,000,000,000 Ordinary Shares, par value US$0.00001 per share, — Ordinary Shares are issued and outstanding. Upon completion of this offering, — Ordinary Shares will be issued and outstanding. Of that amount, — Ordinary Shares will be publicly held by investors participating in this offering, and — Ordinary Shares will be held by our existing shareholders, some of whom may be our "affiliates" as that term is defined in Rule 144 under the Securities Act. As defined in Rule 144, an "affiliate" of an issuer is a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the issuer. Prior to this offering, there has been no public market for our Ordinary Shares. While we intend to list the Ordinary Shares on the [Nasdaq Capital market], we cannot assure you that a regular trading market will develop in our Ordinary Shares.

All of the Ordinary Shares sold in the offering will be freely transferable by persons other than our "affiliates" in the United States without restriction or further registration under the Securities Act. Ordinary shares purchased by one of our "affiliates" may not be resold, except pursuant to an effective registration statement or an exemption from registration, including an exemption under Rule 144 under the Securities Act described below.

The Ordinary Shares held by existing shareholders are, and any Ordinary Shares issuable upon exercise of options outstanding following the completion of this offering will be, "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities may be sold in the United States only if they are registered or if they qualify for an exemption from registration under Rule 144 or Rule 701 under the Securities Act. These rules are described below.

Sales of substantial amounts of the Ordinary Shares in the public market could adversely affect prevailing market prices of the Ordinary Shares. As described below, only a limited number of our Ordinary Shares currently outstanding will be available for sale immediately after this offering due to contractual and legal restrictions on resale. Nevertheless, after these restrictions lapse, future sales of substantial amounts of our Ordinary Shares, including Ordinary Shares issued upon exercise of outstanding options, in the public market in the United States, or the possibility of such sales, could negatively affect the market price in the United States of our Ordinary Shares and our ability to raise equity capital in the future.

#### Lock-up Agreements
Pursuant to the underwriting agreement in connection with this offering, we, our directors and executive officers and the holders of [\*]% or more of our outstanding Ordinary Shares have agreed, subject to certain exceptions, not to transfer or dispose of, directly or indirectly, any of our Ordinary Shares or any securities convertible into or exchangeable or exercisable for our Ordinary Shares for a period of six months after the closing of this offering. After the expiration of the six-month period, the Ordinary Shares held by our directors, executive officers and such shareholders may be sold subject to the restrictions under Rule 144 under the Securities Act, pursuant to another exemption from registration under the Securities Act, or by means of a registered public offering. See "Underwriting — Lock-up Agreements" for more details.

#### Rule 144
All of our Ordinary Shares outstanding prior to the completion of this offering are "restricted securities" as that term is defined in Rule 144 under the Securities Act and may be sold publicly in the United States only if they are subject to an effective registration statement under the Securities Act or pursuant to an exemption from the registration requirement such as those provided by Rule 144 and Rule 701 promulgated under the Securities Act.

In general, under Rule 144 as currently in effect, beginning 90 days after the date of this prospectus, a person who is not deemed to have been our affiliate at any time during the three months preceding a sale and who has beneficially owned restricted securities within the meaning of Rule 144 for more than six months would be entitled to sell an unlimited number of those shares, subject only to the availability of current public information about us. A non-affiliate who has beneficially owned restricted securities for at least one year from the later of the date these shares were acquired from us or from our affiliate would be entitled to freely sell those shares.

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A person who is deemed to be an affiliate of ours and who has beneficially owned "restricted securities" for at least six months would be entitled to sell, within any three-month period, a number of shares that is not more than the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 1% of the number of Ordinary Shares then outstanding, in the form of Ordinary Shares or otherwise, which will equal approximately shares immediately after this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the average weekly trading volume of the Ordinary Shares on Nasdaq during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
In general, under Rule 701 of the Securities Act as currently in effect, each of our employees, consultants or advisors who purchases our Ordinary Shares from us in connection with a compensatory stock or option plan or other written agreement relating to compensation is eligible to resell such Ordinary Shares 90 days after we became a reporting company under the Exchange Act in reliance on Rule 144, but without compliance with some of the restrictions, including the holding period, contained in Rule 144.

#### Regulation S
Regulation S under the Securities Act provides an exemption from registration requirements in the United States for offers and sales of securities that occur outside the United States. Rule 903 of Regulation S provides the conditions to the exemption for a sale by an issuer, a distributor, their respective affiliates or anyone acting on their behalf. Rule 904 of Regulation S provides the conditions to the exemption for a resale by persons other than those covered by Rule 903. In each case, any sale must be completed in an offshore transaction, as that term is defined in Regulation S, and no directed selling efforts, as that term is defined in Regulation S, may be made in the United States.

We are a foreign issuer as defined in Regulation S. As a foreign issuer, securities that we sell outside the United States pursuant to Regulation S are not considered to be restricted securities under the Securities Act, and, subject to the offering restrictions imposed by Rule 903, are freely tradable without registration or restrictions under the Securities Act, unless the securities are held by our affiliates. We are not claiming the potential exemption offered by Regulation S in connection with the offering of newly issued shares outside the United States and will register all of the newly issued shares under the Securities Act.

Subject to certain limitations, holders of our restricted shares who are not our affiliates or who are our affiliates by virtue of their status as our officer or director of may resell their restricted shares in an "offshore transaction" under Regulation S if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• none of the shareholder, its affiliate nor any person acting on their behalf engages in directed selling efforts in the United States, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of a sale of our restricted shares by an officer or director who is our affiliate solely by virtue of holding such position, no selling commission, fee or other remuneration is paid in connection with the offer or sale other than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

Additional restrictions are applicable to a holder of our restricted shares who will be our affiliate other than by virtue of his or her status as our officer or director.

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#### TAXATION
*The following summary of the material Cayman Islands, PRC and U.S. federal income tax consequences of an investment in the Ordinary Shares is based upon laws and relevant interpretations thereof in effect as of the date of this registration statement, all of which are subject to change. This summary does not deal with all possible tax consequences relating to an investment in the Ordinary Shares, such as the tax consequences under U.S. state and local tax laws or under the tax laws of jurisdictions other than the Cayman Islands, the People's Republic of China and the United States. To the extent that the discussion relates to matters of Cayman Islands tax law, it represents the opinion of [\*] LLP, our Cayman Islands counsel; to the extent it relates to PRC tax law, it is the opinion of Jiangsu Junjin Law Firm, our PRC counsel.*

#### Cayman Islands Taxation
The Cayman Islands currently levies no taxes on individuals or corporations based upon profits, income, gains or appreciation and there is no taxation in the nature of inheritance tax or estate duty. There are no other taxes likely to be material to us levied by the government of the Cayman Islands except for stamp duties which may be applicable on instruments executed in, or, after execution, brought within the jurisdiction of the Cayman Islands. The Cayman Islands is not party to any double tax treaties that are applicable to any payments made to or by our company. There are no exchange control regulations or currency restrictions in the Cayman Islands.

Payments of dividends and capital in respect of our Ordinary Shares and Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our Ordinary Shares, nor will gains derived from the disposal of our Ordinary Shares be subject to Cayman Islands income or corporation tax.

#### People's Republic of China Taxation
Under the PRC Enterprise Income Tax Law and its implementation rules, an enterprise established outside of the PRC with a "de facto management body" within the PRC is considered a resident enterprise and will be subject to the enterprise income tax at the rate of 25% on its global income. The implementation rules define the term "de facto management body" as the body that exercises full and substantial control over and overall management of the business, production, personnel, accounts and properties of an enterprise. In April 2009, the State Administration of Taxation issued a circular, known as Circular 82, which provides certain specific criteria for determining whether the "de facto management body" of a PRC-controlled enterprise that is incorporated offshore is located in China. Although this circular only applies to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreigners, the criteria set forth in the circular may reflect the State Administration of Taxation's general position on how the "de facto management body" test should be applied in determining the tax resident status of all offshore enterprises. According to Circular 82, an offshore incorporated enterprise controlled by a PRC enterprise or a PRC enterprise group will be regarded as a PRC tax resident by virtue of having its "de facto management body" in China only if all of the following conditions are met: (i) the primary location of the day-to-day operational management is in the PRC; (ii) decisions relating to the enterprise's financial and human resource matters are made or are subject to approval by organizations or personnel in the PRC; (iii) the enterprise's primary assets, accounting books and records, company seals, and board and shareholder resolutions are located or maintained in the PRC; and (iv) at least 50% of voting board members or senior executives habitually reside in the PRC.

We believe that HUHUTECH is not a PRC resident enterprise for PRC tax purposes. HUHUTECH is not controlled by a PRC enterprise or PRC enterprise group and we do not believe that HUHUTECH meets all of the conditions above. HUHUTECH is a company incorporated outside the PRC. As a holding company, its key assets are its ownership interests in its subsidiaries, and its key assets are located, and its records (including the resolutions of its board of directors and the resolutions of its shareholders) are maintained, outside the PRC. For the same reasons, we believe our other entities outside of China are not PRC resident enterprises either. However, the tax resident status of an enterprise is subject to determination by the PRC tax authorities and uncertainties remain with respect to the interpretation of the term "de facto management body." There can be no assurance that the PRC government will ultimately take a view that is consistent with ours.

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If the PRC tax authorities determine that HUHUTECH is a PRC resident enterprise for enterprise income tax purposes, we may be required to withhold a 10% withholding tax from dividends we pay to our shareholders that are non-resident enterprises, including the holders of the Ordinary Shares. In addition, non-resident enterprise shareholders (including the ordinary shareholders) may be subject to a 10% PRC tax on gains realized on the sale or other disposition of Ordinary Shares, if such income is treated as sourced from within the PRC. It is unclear whether our non-PRC individual shareholders (including the ordinary shareholders) would be subject to any PRC tax on dividends or gains obtained by such non-PRC individual shareholders in the event we are determined to be a PRC resident enterprise. If any PRC tax were to apply to such dividends or gains, it would generally apply at a rate of 20% (and such PRC tax may be withheld at source in the case of dividends). Any PRC income tax liability may be reduced under applicable tax treaties. However, it is unclear whether non-PRC shareholders of HUHUTECH would in practice be able to obtain the benefits of any tax treaties between their country of tax residence and the PRC in the event that HUHUTECH is treated as a PRC resident enterprise.

Provided that our Cayman Islands holding company, HUHUTECH, is not deemed to be a PRC resident enterprise, holders of the Ordinary Shares and Ordinary Shares who are not PRC residents will not be subject to PRC income tax on dividends distributed by us or gains realized from the sale or other disposition of our shares or Ordinary Shares. However, under Bulletin 7 and Bulletin 37, where a non-resident enterprise conducts an "indirect transfer" by transferring taxable assets, including, in particular, equity interests in a PRC resident enterprise, indirectly by disposing of the equity interests of an overseas holding company, the non-resident enterprise, being the transferor, or the transferee, or the PRC entity which directly owns such taxable assets may report to the relevant tax authority such indirect transfer. Using a "substance over form" principle, the PRC tax authority may disregard the existence of the overseas holding company if it lacks a reasonable commercial purpose and was established for the purpose of reducing, avoiding or deferring PRC tax. As a result, gains derived from such indirect transfer may be subject to PRC enterprise income tax, and the transferee or other person who is obligated to pay for the transfer is obligated to withhold the applicable taxes, currently at a rate of 10% for the transfer of equity interests in a PRC resident enterprise. However, sales of shares and Ordinary Shares by investors through a public stock exchange where such shares or Ordinary Shares are acquired on a public stock exchange are currently exempt from these indirect transfer rules under Bulletin 7 and Bulletin 37. We and our non-PRC resident investors may be at risk of being required to file a return and being taxed under Bulletin 7 and Bulletin 37, and we may be required to expend valuable resources to comply with Bulletin 7 and Bulletin 37, or to establish that we should not be taxed under these circulars. See "Risk Factors — Risks Related to Doing Business in the PRC — We face uncertainties with respect to indirect transfers of equity interests in PRC resident enterprises by their non-PRC holding companies."

#### United States Federal Income Tax Considerations
The following discussion is a summary of U.S. federal income tax considerations generally applicable to the ownership and disposition of the Ordinary Shares by a U.S. Holder (as defined below) that acquires the Ordinary Shares in this offering and holds the Ordinary Shares as "capital assets" (generally, property held for investment) under the U.S. Internal Revenue Code of 1986, as amended, or the Code. This discussion is based upon existing U.S. federal tax law, which is subject to differing interpretations or change, possibly with retroactive effect. There can be no assurance that the U.S. Internal Revenue Service ("IRS") or a court will not take a contrary position. This discussion, moreover, does not address the U.S. federal estate, gift, Medicare, and alternative minimum tax considerations, or any state, local and non-U.S. tax considerations, relating to the ownership or disposition of the Ordinary Shares. The following summary does not address all aspects of U.S. federal income taxation that may be important to particular investors in light of their individual circumstances or to persons in special tax situations such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• banks and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pension plans;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulated investment companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• real estate investment trusts;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• broker-dealers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• traders that elect to use a mark-to-market method of accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• certain former U.S. citizens or long-term residents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt entities (including private foundations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• holders who acquire their Ordinary Shares pursuant to any employee share option or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors that will hold their Ordinary Shares as part of a straddle, hedge, conversion, constructive sale or other integrated transaction for U.S. federal income tax purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investors that have a functional currency other than the U.S. dollar;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding their Ordinary Shares in connection with a trade or business conducted outside the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons that actually or constructively own 10% or more of our stock (by vote or value); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• partnerships or other entities taxable as partnerships for U.S. federal income tax purposes, or persons holding the Ordinary Shares through such entities, all of whom may be subject to tax rules that differ significantly from those discussed below.

Each U.S. Holder is urged to consult its tax advisor regarding the application of U.S. federal taxation to its particular circumstances, and the state, local, non-U.S. and other tax considerations of the ownership and disposition of the Ordinary Shares.

#### General
For purposes of this discussion, a "U.S. Holder" is a beneficial owner of the ordinary that is, for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created in or organized under the law of the United States or any state thereof or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a trust (A) the administration of which is subject to the primary supervision of a U.S. court and which has one or more U.S. persons who have the authority to control all substantial decisions of the trust or (B) that has otherwise validly elected to be treated as a U.S. person under the Code.

If a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) is a beneficial owner of the Ordinary Shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. Partnerships holding the Ordinary Shares and their partners are urged to consult their tax advisors regarding an investment in the Ordinary Shares.

For U.S. federal income tax purposes, a U.S. Holder of Ordinary Shares will generally be treated as the beneficial owner of the underlying shares represented by the Ordinary Shares. The remainder of this discussion assumes that a U.S. Holder of the Ordinary Shares will be treated in this manner. Accordingly, deposits or withdrawals of Ordinary Shares for Ordinary Shares will generally not be subject to U.S. federal income tax.

#### Passive Foreign Investment Company Considerations
A non-U.S. corporation, such as our company, will be a PFIC, for U.S. federal income tax purposes for any taxable year, if either (i) 75% or more of its gross income for such year consists of certain types of "passive" income or (ii) 50% or more of the value of its assets (generally determined on the basis of a quarterly average) during such year is attributable to assets that produce or are held for the production of passive income. For this purpose, cash

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and assets readily convertible into cash are generally categorized as a passive asset and the company's goodwill and other unbooked intangibles are taken into account. Passive income generally includes, among other things, dividends, interest, rents, royalties, and gains from the disposition of passive assets. We will be treated as owning a proportionate share of the assets and earning a proportionate share of the income of any other corporation in which we own, directly or indirectly, 25% or more (by value) of the stock.

After the restructure that was completed in March 2022, HUHU China is now an indirect subsidiary of the Company. Based upon our current and projected income and assets, including the expected proceeds from this offering, and projections as to the value of our assets (which are based on the expected market price of the Ordinary Shares immediately following this offering), we do not expect to be a PFIC for the current taxable year or the foreseeable future. However, no assurance can be given in this regard because the determination of whether we are or will become a PFIC is a factual determination made annually that will depend, in part, upon the composition of our income and assets. Fluctuations in the market price of the Ordinary Shares may cause us to be or become a PFIC for the current or future taxable years because the value of our assets for purposes of the asset test, including the value of our goodwill and unbooked intangibles, may be determined by reference to the market price of the Ordinary Shares from time to time (which may be volatile). In estimating the value of our goodwill and other unbooked intangibles, we have taken into account our anticipated market capitalization immediately following the close of this offering. Among other matters, if our market capitalization is less than anticipated or subsequently declines, we may be or become a PFIC for the current or future taxable years. The composition of our income and assets may also be affected by how, and how quickly, we use our liquid assets and the cash raised in this offering. Under circumstances where our revenue from activities that produce passive income significantly increases relative to our revenue from activities that produce non-passive income, or where we determine not to deploy significant amounts of cash for active purposes, our risk of being or becoming a PFIC may substantially increase. Because there are uncertainties in the application of the relevant rules, and because our PFIC status is an annual factual determination, there can be no assurance that we will not be a PFIC for the current taxable year or any future taxable year.

If we are a PFIC for any year during which a U.S. Holder holds the Ordinary Shares, we generally will continue to be treated as a PFIC for all succeeding years during which such U.S. Holder holds the Ordinary Shares.

The discussion below under "— Dividends" and "— Sale or Other Disposition" is written on the basis that we will not be or become a PFIC for U.S. federal income tax purposes. The U.S. federal income tax rules that apply generally if we are treated as a PFIC are discussed below under "— Passive Foreign Investment Company Rules."

*Dividends*

Any cash distributions paid on the Ordinary Shares (including the amount of any PRC tax withheld) out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles, will generally be includible in the gross income of a U.S. Holder as dividend income on the day actually or constructively received by the U.S. Holder, in the case of Ordinary Shares, in the case of Ordinary Shares. Because we do not intend to determine our earnings and profits on the basis of U.S. federal income tax principles, any distribution we pay will generally be treated as a "dividend" for U.S. federal income tax purposes. Dividends received on the Ordinary Shares will not be eligible for the dividends-received deduction allowed to corporations in respect of dividends received from U.S. corporations.

Individuals and other non-corporate U.S. Holders will be subject to tax at the lower capital gain tax rate applicable to "qualified dividend income"; provided that certain conditions are satisfied, including that (1) the Ordinary Shares on which the dividends are paid are readily tradable on an established securities market in the United States, or, in the event that we are deemed to be a PRC resident enterprise under the PRC tax law, we are eligible for the benefit of the United States-PRC income tax treaty (the "Treaty"), (2) we are neither a PFIC nor treated as such with respect to a U.S. Holder (as discussed below) for the taxable year in which the dividend is paid and the preceding taxable year, and (3) certain holding period and other requirements are met. We intend to list the Ordinary Shares on the Nasdaq Stock Exchange. Provided that this listing is approved, we believe that the Ordinary Shares will generally be considered to be readily tradable on an established securities market in the United States. There can be no assurance that the Ordinary Shares will continue to be considered readily tradable on an established securities market in later years. Because the Ordinary Shares will not be listed on a U.S. exchange, we do not believe that dividends received with respect to Ordinary Shares that are not represented by Ordinary Shares will be treated as qualified dividends. Non-corporate U.S. Holders are urged to consult their tax advisors regarding the availability of the lower rate for dividends paid with respect to the Ordinary Shares.

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In the event that we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law (see "Taxation — People's Republic of China Taxation"), we may be eligible for the benefits of the Treaty. If we are eligible for such benefits, dividends we pay on our Ordinary Shares, regardless of whether such shares are represented by the Ordinary Shares, and regardless of whether the Ordinary Shares are readily tradable on an established securities market in the United States, would be eligible for the reduced rates of taxation described in the preceding paragraph, provided that certain holding period and other requirements are met and that we are neither a PFIC nor treated as such with respect to a U.S. Holder for the taxable year in which the dividend is paid and the preceding taxable year.

For U.S. foreign tax credit purposes, dividends paid on the Ordinary Shares generally will be treated as income from foreign sources and generally will constitute passive category income. In the event that we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law, a U.S. Holder may be subject to PRC withholding taxes on dividends paid on the Ordinary Shares (see "Taxation — People's Republic of China Taxation"). Depending on the U.S. Holder's particular facts and circumstances and subject to a number of complex conditions and limitations, PRC withholding taxes on dividends that are non-refundable under the Treaty may be treated as foreign taxes eligible for credit against a U.S. Holder's U.S. federal income tax liability. A U.S. Holder who does not elect to claim a foreign tax credit for foreign tax withheld may instead claim a deduction for U.S. federal income tax purposes, in respect of such withholding, but only for a year in which such holder elects to do so for all creditable foreign income taxes. The rules governing the foreign tax credit are complex and U.S. Holders are urged to consult their tax advisors regarding the availability of the foreign tax credit under their particular circumstances.

#### Sale or Other Disposition
A U.S. Holder will generally recognize gain or loss upon the sale or other disposition of Ordinary Shares in an amount equal to the difference between the amount realized upon the disposition and the holder's adjusted tax basis in such Ordinary Shares. The gain or loss will generally be capital gain or loss. Any capital gain or loss will be long term if the Ordinary Shares have been held for more than one year. The deductibility of a capital loss may be subject to limitations. Any such gain or loss that the U.S. Holder recognizes will generally be treated as U.S. source income or loss for foreign tax credit limitation purposes, which may limit the availability of foreign tax credits. However, in the event we are deemed to be a PRC resident enterprise under the PRC Enterprise Income Tax Law and PRC tax were to be imposed on any gain from the disposition of the Ordinary Shares, a U.S. Holder that is eligible for the benefits of the Treaty may elect to treat such gain as PRC source income. If a U.S. Holder is not eligible for the benefits of the Treaty or fails to make the election to treat any gain as foreign source, then such U.S. Holder may not be able to use the foreign tax credit arising from any PRC tax imposed on the disposition of the Ordinary Shares unless such credit can be applied (subject to applicable limitations) against United States federal income tax due on other income derived from foreign sources in the same income category (generally, the passive category). Each U.S. Holder is advised to consult its tax advisor regarding the tax consequences if a foreign tax is imposed on a disposition of the Ordinary Shares, including the availability of the foreign tax credit under its particular circumstances.

#### Passive Foreign Investment Company Rules
If we are a PFIC for any taxable year during which a U.S. Holder holds the Ordinary Shares, and unless the U.S. Holder makes a mark-to-market election (as described below), the U.S. Holder will generally be subject to special tax rules on (i) any excess distribution that we make to the U.S. Holder (which generally means any distribution paid during a taxable year to a U.S. Holder that is greater than 125 percent of the average annual distributions paid in the three preceding taxable years or, if shorter, the U.S. Holder's holding period for the Ordinary Shares), and (ii) any gain realized on the sale or other disposition including, under certain circumstances, a pledge, of Ordinary Shares. Under the PFIC rules:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the excess distribution or gain will be allocated ratably over the U.S. Holder's holding period for the Ordinary Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount allocated to the current taxable year and any taxable years in the U.S. Holder's holding period prior to the first taxable year in which we are a PFIC (each, a "pre-PFIC year") will be taxable as ordinary income; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount allocated to each prior taxable year, other than a pre-PFIC year, will be subject to tax at the highest tax rate in effect for individuals or corporations, as appropriate, for that year, increased by an additional tax equal to the interest on the resulting tax deemed deferred with respect to each such taxable year.

If we are a PFIC for any taxable year during which a U.S. Holder holds the Ordinary Shares, and any of our subsidiaries is also a PFIC (a "lower-tier PFIC"), such U.S. Holder would be treated as owning a proportionate amount (by value) of the shares of the lower-tier PFIC for purposes of the application of these rules. U.S. Holders are urged to consult their tax advisors regarding the application of the PFIC rules to any of our subsidiaries.

As an alternative to the foregoing rules, a U.S. Holder of "marketable stock" (as defined below) in a PFIC may make a mark-to-market election with respect to such stock. If a U.S. Holder makes this election with respect to the Ordinary Shares, the holder will generally (i) include as ordinary income for each taxable year that we are a PFIC the excess, if any, of the fair market value of Ordinary Shares held at the end of the taxable year over the adjusted tax basis of such Ordinary Shares and (ii) deduct as an ordinary loss the excess, if any, of the adjusted tax basis of the Ordinary Shares over the fair market value of such Ordinary Shares held at the end of the taxable year, but such deduction will only be allowed to the extent of the amount previously included in income as a result of the mark-to-market election. The U.S. Holder's adjusted tax basis in the Ordinary Shares would be adjusted to reflect any income or loss resulting from the mark-to-market election. If a U.S. Holder makes a mark-to-market election in respect of the Ordinary Shares and we cease to be a PFIC, the holder will not be required to take into account the gain or loss described above during any period that we are not a PFIC. If a U.S. Holder makes a mark-to-market election, any gain such U.S. Holder recognizes upon the sale or other disposition of the Ordinary Shares in a year when we are a PFIC will be treated as ordinary income and any loss will be treated as ordinary loss, but such loss will only be treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-market election.

The mark-to-market election is available only for "marketable stock," which is stock that is traded in other than de minimis quantities on at least 15 days during each calendar quarter ("regularly traded") on a qualified exchange or other market, as defined in applicable United States Treasury regulations. We anticipate that the Ordinary Shares should qualify as being regularly traded, but no assurances may be given in this regard.

Because a mark-to-market election cannot technically be made for any lower-tier PFICs that we may own, a U.S. Holder may continue to be subject to the PFIC rules with respect to such U.S. Holder's indirect interest in any investments held by us that are treated as an equity interest in a PFIC for U.S. federal income tax purposes.

We do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections which, if available, would result in tax treatment different from (and generally less adverse than) the general tax treatment for PFICs described above.

If a U.S. Holder owns the Ordinary Shares during any taxable year that we are a PFIC, the holder must generally file an annual IRS Form 8621. You should consult your tax advisor regarding the U.S. federal income tax consequences of owning and disposing of the Ordinary Shares if we are or become a PFIC.

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#### UNDERWRITING
We will enter into an underwriting agreement with Univest Securities, LLC, or the representative, to act as the representative of the underwriters named below. Subject to the terms and conditions of the underwriting agreement, the underwriters named below have agreed to purchase, and we have agreed to sell to them, the number of our Ordinary Shares at the initial public offering price, less the underwriting discounts, as set forth on the cover page of this prospectus and as indicated below:

---

| | |
|:---|:---|
|  **Name** | **Number of<br>Ordinary<br>Shares** |
|  Univest Securities, LLC |  |
|  **Total** |  |

---

The underwriters are offering the ordinary shares subject to their acceptance of the ordinary shares from us and subject to prior sale. The underwriting agreement provides that the obligations of the underwriters to pay for and accept delivery of the ordinary shares offered by this prospectus are subject to the approval of certain legal matters by their counsel and to certain other conditions. The underwriters are obligated to take and pay for all of the ordinary shares offered by this prospectus if any such shares are taken.

The underwriters will offer the ordinary shares to the public at the initial public offering price set forth on the cover page of this prospectus and to certain dealers at that price less a concession not in excess of 7% of the offering price per ordinary share. After this offering, the initial public offering price, concession and reallowance to dealers may be reduced by the representative. No such reduction shall change the amount of proceeds to be received by us as set forth on the cover page of this prospectus. The securities are offered by the underwriters as stated herein, subject to receipt and acceptance by them and subject to their right to reject any order in whole or in part. The underwriters have informed us that they do not intend to confirm sales to any accounts over which they exercise discretionary authority.

#### Discounts and Expenses
The underwriting discounts are equal to 7% of the initial public offering price.

The following table shows the price per share and total initial public offering price, underwriting discounts, and proceeds before expenses to us.

---

| | |
|:---|:---|
|  | **Per Share** |
|  Initial public offering price | $ |
|  Underwriting discounts to be paid by us | $ |
|  Proceeds to us, before expenses | $ |

---

We will also pay to the representative by deduction from the net proceeds of the offering contemplated herein, a non-accountable expense allowance equal to 1.0% of the gross proceeds received by us from the sale of the shares.

We have agreed to reimburse the representative up to a maximum of $250,000 for out-of-pocket accountable expenses (including the legal fees and other disbursements as disclosed below). We have paid an expense deposit of $50,000 to the underwriter upon the execution of the engagement letter (the Engagement Letter") between us and the underwriter dated February 15, 2022, and an additional $30,000 upon our first confidential filing to the SEC, for the underwriter's anticipated out-of-pocket accountable expenses. Any expenses advancement will be returned to us to the extent the representative's out-of-pocket accountable expenses are not actually incurred in accordance with FINRA Rule 5110(g)(4)(A).

We estimate that the total expenses of the offering payable by us, excluding the underwriting discounts and non-accountable expense allowance, will be approximately $.

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#### Right of First Refusal
We have also agreed to provide the representative the right of first refusal (the "Right of First Refusal"), exercisable at the sole discretion of the representative, for a period of eighteen months from the closing date of our initial public offering, to provide investment banking service to the Company on an exclusive basis, including acting as leading manager for any underwritten public offering, as exclusive placement agent for any private financing by the Company, and as financial advisor in connection with any merger, business combination, or sale of a majority or controlling portion of the equity or assets of the Company. The Right of First Refusal shall be subject to FINRA Rule 5110(g)(5), including that it may be terminated by the Company for cause, which shall be a breach by the representative of the Engagement Letter or a material failure by the underwriter to provide the services as contemplated by the Engagement Letter.

#### Representative's Warrants
In addition, we have agreed to issue the Underwriter Warrants to the representative, for a nominal consideration of $0.01, to purchase up to an aggregate number of ordinary shares equal to 5% of the total number of ordinary shares sold in this offering. Each such warrant evidencing the right to purchase one share of the ordinary shares being offered in this offering, and has an exercise price equal to 110% of the initial public offering price of the ordinary shares sold in this offering. The Underwriter Warrants shall be exercisable cashless for five years from the effective date of the registration statement of which this prospectus forms a part and will terminate on the fifth anniversary of the effective date of the registration statement of which this prospectus forms a part. The Underwriter Warrants and the underlying shares will be deemed compensation by FINRA, and therefore will be subject to FINRA Rule 5110(e)(1). In accordance with FINRA Rule 5110(e)(1), and except as otherwise permitted by FINRA rules, neither the Underwriter Warrants nor any of our ordinary shares issued upon exercise of the Underwriter Warrants may be sold, transferred, assigned, pledged or hypothecated, or be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of such securities by any person, for a period of 180 days beginning on the date of commencement of sales of the offering. The Underwriter Warrants and the underlying ordinary shares will be registered in the registration statement of which this prospectus forms a part. We agreed to maintain an effective registration statement on Form F-1 (or Form F-3, if we are eligible to use such form) until such date that is the earlier of the date when all of the ordinary shares underlying the representative's warrants have been publicly sold by holder of such warrants or such time as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such ordinary shares underlying the representative's warrants without registration.

We will bear all fees and expenses attendant to registering the ordinary shares underlying the Underwriter Warrants, other than any underwriting commissions incurred and payable by the warrant holders. The exercise price and number of ordinary shares issuable upon exercise of the Underwriter Warrants may be adjusted in certain circumstances, including in the event of a share dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The warrant exercise price and/or underlying shares may also be adjusted for issuances of ordinary shares at a price below the warrant exercise price.

#### Indemnification
We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act and liabilities arising from breaches of representations and warranties contained in the underwriting agreement, or to contribute to payments that the underwriters may be required to make in respect of those liabilities.

#### Observer's right
For the period of one year from the effective of the registration statement of which this prospectus forms a part, upon notice from the representative to the Company, the representative shall have the right to send a representative (who need not be the same individual from meeting to meeting) to observe each meeting of the board of directors of the Company; provided that such representative shall sign a Regulation FD compliant confidentiality agreement which is reasonably acceptable to the representative and its counsel in connection with such representative's attendance at meetings of the board of directors of the Company; and provided further that upon written notice to the representative, the Company may exclude the representative from meetings where, in the written opinion of counsel for the Company, the representative's presence would destroy the attorney-client privilege. The Company agrees to give the representative written notice of each such meeting and to provide the

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representative with an agenda and minutes of the meeting no later than it gives such notice and provides such items to the other directors, and reimburse the representative for his or her reasonable out-of-pocket expenses incurred in connection with its attendance at the meeting, including but not limited to, food, lodging and transportation, as well fees or compensation not in excess of those received by other non-employee members of the board of directors of the Company.

#### Lock-Up Agreements
We have agreed, for a period of [\*] months from the date of this prospectus, not to offer, issue, sell, contract to sell, encumber, grant any option for the sale of, or otherwise dispose of, except in this offering, any of our Ordinary Shares or securities that are substantially similar to our Ordinary Shares, including but not limited to any options or warrants to purchase our Ordinary Shares, or any securities that are convertible into or exchangeable for, or that represent the right to receive, our Ordinary Shares or any such substantially similar securities (other than pursuant to employee stock option plans existing on, or upon the conversion or exchange of convertible or exchangeable securities outstanding as of, the date such lock-up agreement was executed), without the prior written consent of the representative.

Our officers, directors and shareholders have agreed, subject to certain exceptions, to a [\*] lock-up period from the date of this prospectus, with respect to the Ordinary Shares that they beneficially own, including the issuance of shares upon the exercise of convertible securities and options that may be currently outstanding or which may be issued. This means that, for a period of twelve months following the date of this prospectus, such persons may not offer, sell, pledge or otherwise dispose of these securities without the prior written consent of the representative or as otherwise agreed.

The representative has no present intention to waive or shorten the lock-up period; however, the terms of the lock-up agreements may be waived at its discretion. In determining whether to waive the terms of the lock-up agreements, the representative may base its decision on its assessment of the relative strengths of the securities markets and companies similar to ours in general, and the trading pattern of, and demand for, our securities in general.

#### Listing
We intend to apply to list our Ordinary Shares on the Nasdaq Capital Market under the symbol "[\*]". We make no representation that such application will be approved or that our Ordinary Shares will trade on such market either now or at any time in the future. However, we will not complete this offering unless we are so listed.

#### Electronic Offer, Sale and Distribution
A prospectus in electronic format may be made available on websites or through other online services maintained by the underwriters or selling group members, if any, or by their affiliates, and the underwriters may distribute prospectus electronically. The underwriters may agree to allocate a number of Ordinary Shares to selling group members for sale to their online brokerage account holders. The Ordinary Shares to be sold pursuant to internet distributions will be allocated on the same basis as other allocations. Other than the prospectus in electronic format, the information on, or that can be accessed through, these websites and any information contained in any other website maintained by these entities is not part of, and is not incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved and/or endorsed by us or the underwriters, and should not be relied upon by investors.

In connection with this offering, certain of the underwriters or securities dealers may distribute prospectuses by electronic means, such as e-mail.

#### Passive Market Making
Any underwriter who is a qualified market maker on Nasdaq may engage in passive market making transactions on Nasdaq, in accordance with Rule 103 of Regulation M under the Exchange Act, during a period before the commencement of offers or sales of the shares and extending through the completion of the distribution. Passive market makers must comply with applicable volume and price limitations and must be identified as a

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passive market maker. In general, a passive market maker must display its bid at a price not in excess of the highest independent bid for such security. If all independent bids are lowered below the passive market maker's bid, however, the passive market maker's bid must then be lowered when certain purchase limits are exceeded.

#### Pricing of this Offering
Prior to this offering, there has been no public market for our Ordinary Shares. The initial public offering price for our Ordinary Shares will be determined through negotiations between us and the representative. Among the factors to be considered in these negotiations will be prevailing market conditions, our financial information, market valuations of other companies that we and the representative believe to be comparable to us, estimate of our business potential and earning prospects, the present state of our development and other factors deemed relevant. The initial public offering price of our Ordinary Shares in this offering does not necessarily bear any direct relationship to the assets, operations, book or other established criteria of value of our company.

#### Potential Conflicts of Interest
The underwriters and their affiliates may, from time to time, engage in transactions with and perform services for us in the ordinary course of their business for which they may receive customary fees and reimbursement of expenses. In the ordinary course of their various business activities, the underwriters and their affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own accounts and for the accounts of their customers and such investment and securities activities may involve securities and/or instruments of our Company. The underwriters and their affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

#### No Sales of Similar Securities
We have agreed not to offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise transfer or dispose of, directly or indirectly, any Ordinary Shares or any securities convertible into or exercisable or exchangeable for Ordinary Shares or enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of our Ordinary Shares, whether any such transaction is to be settled by delivery of Ordinary Shares or such other securities, in cash or otherwise, without the prior written consent of the representative, for a period of [\*] days from the date of this prospectus.

#### Selling Restrictions
Other than in the United States, no action may be taken, and no action has been taken, by us or the underwriters that would permit a public offering of the Ordinary Shares offered by, or the possession, circulation or distribution of, this prospectus in any jurisdiction where action for that purpose is required. The Ordinary Shares offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such shares be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any Ordinary Shares offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

In addition to the offering of the Ordinary Shares in the United States, the underwriters may, subject to applicable foreign laws, also offer the Ordinary Shares in certain countries.

#### Stamp Taxes
If you purchase Ordinary Shares offered by this prospectus, you may be required to pay stamp taxes and other charges under the laws and practices of the country of purchase, in addition to the initial public offering price listed on the cover page of this prospectus.

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#### Price Stabilization, Short Positions and Penalty Bids
Until the distribution of the Ordinary Shares offered by this prospectus is completed, rules of the SEC may limit the ability of the underwriters to bid for and to purchase our Ordinary Shares. As an exception to these rules, the underwriters may engage in transactions effected in accordance with Regulation M under the Exchange Act that are intended to stabilize, maintain or otherwise affect the price of our Ordinary Shares. The underwriters may engage in over-allotment sales, if applicable, syndicate covering transactions, stabilizing transactions and penalty bids in accordance with Regulation M.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Stabilizing transactions consist of bids or purchases made by the managing underwriter for the purpose of preventing or slowing a decline in the market price of our securities while this offering is in progress.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Short sales and over-allotments occur when the managing underwriter, on behalf of the underwriting syndicate, sells more of our shares than they purchase from us in this offering. In order to cover the resulting short position, the managing underwriter may exercise the over-allotment option described above and/or may engage in syndicate covering transactions. There is no contractual limit on the size of any syndicate covering transaction. The underwriters will deliver a prospectus in connection with any such short sales. Purchasers of shares sold short by the underwriters are entitled to the same remedies under the federal securities laws as any other purchaser of units covered by the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Syndicate covering transactions are bids for or purchases of our securities on the open market by the managing underwriter on behalf of the underwriters in order to reduce a short position incurred by the managing underwriter on behalf of the underwriters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A penalty bid is an arrangement permitting the managing underwriter to reclaim the selling concession that would otherwise accrue to an underwriter if the Ordinary Shares originally sold by the underwriter were later repurchased by the managing underwriter and therefore were not effectively sold to the public by such underwriter.

Stabilization, syndicate covering transactions and penalty bids may have the effect of raising or maintaining the market price of our Ordinary Shares or preventing or delaying a decline in the market price of our Ordinary Shares. As a result, the price of our Ordinary Shares may be higher than the price that might otherwise exist in the open market.

Neither we nor the underwriters make any representation or prediction as to the effect that the transactions described above may have on the prices of our Ordinary Shares. These transactions may occur on Nasdaq or on any trading market. If any of these transactions are commenced, they may be discontinued without notice at any time.

#### Notice to Prospective Investors in Hong Kong
The contents of this prospectus have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you are in any doubt about any of the contents of this prospectus, you should obtain independent professional advice. Please note that (i) our shares may not be offered or sold in Hong Kong, by means of this prospectus or any document other than to "professional investors" within the meaning of Part I of Schedule 1 of the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) (SFO) and any rules made thereunder, or in other circumstances which do not result in the document being a "prospectus" within the meaning of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32, Laws of Hong Kong) (CO) or which do not constitute an offer or invitation to the public for the purpose of the CO or the SFO, and (ii) no advertisement, invitation or document relating to our shares may be issued or may be in the possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere), which is directed at, or the contents of which are likely to be accessed or read by, the public in Hong Kong (except if permitted to do so under the securities laws of Hong Kong) other than with respect to the shares which are or are intended to be disposed of only to persons outside Hong Kong or only to "professional investors" within the meaning of the SFO and any rules made thereunder.

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#### Notice to Prospective Investors in the People's Republic of China
This prospectus may not be circulated or distributed in the PRC and the shares may not be offered or sold, and will not offer or sell to any person for re-offering or resale directly or indirectly to any resident of the PRC except pursuant to applicable laws, rules and regulations of the PRC. For the purpose of this paragraph only, the PRC does not include Taiwan and the special administrative regions of Hong Kong and Macau.

#### Notice to Prospective Investors in Taiwan, the Republic of China
The Ordinary Shares have not been and will not be registered with the Financial Supervisory Commission of Taiwan, the Republic of China, pursuant to relevant securities laws and regulations and may not be offered or sold in Taiwan through a public offering or in any manner which would constitute an offer within the meaning of the Securities and Exchange Act of Taiwan or would otherwise require registration with or the approval of the Financial Supervisory Commission of Taiwan.

#### Notice to Prospective Investors in the Cayman Islands
This prospectus does not constitute an invitation or offer to the public in the Cayman Islands of the Ordinary Shares, whether by way of sale or subscription. The underwriters have not offered or sold, and will not offer or sell, directly or indirectly, any Ordinary Shares in the Cayman Islands.

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#### EXPENSES RELATED TO THIS OFFERING
Set forth below is an itemization of the total expenses, excluding underwriting discount, accountable expenses and non-accountable expenses, that we expect to incur in connection with this offering. With the exception of the SEC registration fee, the Financial Industry Regulatory Authority, or FINRA, filing fee, and the stock exchange market entry and listing fee, all amounts are estimates.

---

| | |
|:---|:---|
|  SEC Registration Fee | $|
|  FINRA Fee |  |
|  Stock Exchange Market Entry and Listing Fee |  |
|  Printing and Engraving Expenses |  |
|  Legal Fees and Expenses |  |
|  Accounting Fees and Expenses |  |
|  **Total** | $|

---

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#### LEGAL MATTERS
We are being represented by Ortoli Rosenstadt LLP with respect to certain legal matters of U.S. federal securities and New York state law. The validity of the Ordinary Shares offered in this offering and other certain legal matters as to Cayman Islands law will be passed upon for us by Mourant Ozannes. Legal matters as to PRC law will be passed upon for us by Jiangsu Junjin law Firm and for the underwriters by Beijing King & Wood Mallesons, Chengdu Office. Ortoli Rosenstadt LLP may rely upon Mourant Ozannes with respect to matters governed by Cayman Islands law and Jiangsu Junjin Law Firm with respect to matters governed by PRC law. Our Underwriter, Univest Securities LLC is represented by King & Wood Mallesons LLP with respect to certain legal matters of U.S. federal securities and New York state law.

#### EXPERTS
The consolidated financial statements for the years ended December 31, 2021 and 2020, included in this Registration Statement have been so included in reliance on the report of Wei, Wei & Co., LLP, an independent registered public accounting firm, given on the authority of said firm in auditing and accounting. The office of Wei, Wei & Co., LLP is located at 13310 39<sup>th</sup> Avenue, Flushing, New York, 11354.

#### WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed a registration statement, including relevant exhibits, with the SEC on Form F-1 under the Securities Act with respect to the underlying Ordinary Shares represented by the Ordinary Shares to be sold in this offering. This prospectus, which constitutes a part of the registration statement on Form F-1, does not contain all of the information contained in the registration statement. You should read our registration statements and their exhibits and schedules for further information with respect to us and the Ordinary Shares.

Immediately upon the effectiveness of the registration statement on Form F-1 of which this prospectus forms a part, we will become subject to periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. All information filed with the SEC can be obtained over the internet at the SEC's website at *www.sec.gov* or inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

---

| | |
|:---|:---|
|  | **Page** |
|  **Consolidated Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm (PCAOB ID: 2388)](#T100) | F-2 |
|  [Consolidated Balance Sheets as of December 31, 2021 and 2020](#T101) | F-3 |
|  [Consolidated Statements of Income and Comprehensive Income for the Years Ended December 31, 2021 and 2020](#T102) | F-4 |
|  [Consolidated Statements of Changes in Shareholders' Equity for the Years Ended December 31, 2021 and 2020](#T103) | F-5 |
|  [Consolidated Statements of Cash Flows for the Years Ended December 31, 2021 and 2020](#T104) | F-6 |
|  [Notes to Consolidated Financial Statements](#T105) | F-7 – F-27 |
|  [Condensed Consolidated Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021](#T1106) | F-28 |
|  [Unaudited Interim Condensed Consolidated Statements of Income and Comprehensive Income for the Six Months Ended June 30, 2022 and 2021](#T1107) | F-29 |
|  [Unaudited Interim Condensed Consolidated Statements of Changes in Shareholders' Equity for the Six Months Ended June 30, 2022 and 2021](#T1108) | F-30 |
|  [Unaudited Interim Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021](#T1109) | F-31 |
|  [Notes to Unaudited Interim Condensed Consolidated Financial Statements](#T1110) | F-32 – F-51 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM** <br> To the Board of Directors and Shareholders of <br>HUHUTECH International Group Inc. <br> **Opinion on the Financial Statements** <br> We have audited the accompanying consolidated balance sheets of HUHUTECH International Group Inc. and Subsidiaries (the "Company") as of December 31, 2021 and 2020, and the related consolidated statements of income and comprehensive income, changes in shareholders' equity, and cash flows for each of the years in the two-year period ended December 31, 2021, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2021, in conformity with accounting principles generally accepted in the United States of America. <br> **Basis for Opinion** <br> These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. <br> We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. <br> Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. <br> */s/ Wei, Wei & Co., LLP* <br> We have served as the Company's auditor since 2022. <br> Flushing, New York <br>October 21, 2022<br>

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** |
|  | **2021** | **2020** |
|  **ASSETS** |  |  |
|  **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $75059 | $155240 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 536456 | 482797 |
| &nbsp;&nbsp;&nbsp; Notes receivable |  | 147966 |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 5177611 | 1503107 |
| &nbsp;&nbsp;&nbsp; Inventories | 540652 | 355007 |
| &nbsp;&nbsp;&nbsp; Advance to vendors, net | 95778 | 60562 |
| &nbsp;&nbsp;&nbsp; Prepayments and other assets, net | 59531 | 24827 |
| &nbsp;&nbsp;&nbsp; Due from related party | 1569 |  |
|  **TOTAL CURRENT ASSETS** | 6486656 | 2729506 |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 552299 | 583798 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 229294 | 27 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets | 111952 | 302388 |
| &nbsp;&nbsp;&nbsp; Deferred offering costs | 448560 |  |
| &nbsp;&nbsp;&nbsp; Right-of-use assets | 53820 | 4082 |
|  **TOTAL ASSETS** | $**7882581** | $**3619801** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
|  **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Short term bank loan | $1051376 | $459770 |
| &nbsp;&nbsp;&nbsp; Notes payable | 114937 |  |
| &nbsp;&nbsp;&nbsp; Accounts payable | 2582848 | 798022 |
| &nbsp;&nbsp;&nbsp; Due to related party | 637007 | 638702 |
| &nbsp;&nbsp;&nbsp; Advance from customers | 61168 | 409519 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities  | 435476 | 327841 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 88944 | 1227 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – current | 14685 | 1697 |
|  **TOTAL CURRENT LIABILITIES** | 4986441 | 2636778 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – non-current | 35283 | 2231 |
|  **TOTAL LIABILITIES** | 5021724 | 2639009 |
|  **COMMITMENTS AND CONTINGENCIES** |  |  |
|  **SHAREHOLDERS' EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary shares, $0.00001 par value, 5,000,000,000 shares authorized, 5,000,000 shares issued and outstanding as of December 31, 2021 and 2020\* | 50 | 50 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1738179 | 1277138 |
| &nbsp;&nbsp;&nbsp; Statutory reserves  | 99850 |  |
| &nbsp;&nbsp;&nbsp; Retained earnings (deficit)  | 937660 | (331532) |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 85118 | 35136 |
|  **TOTAL SHAREHOLDERS' EQUITY** | **2860857** | **980792** |
|  **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**7882581** | $**3619801** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2021** | **2020** |
|  **Revenues** | $10156441 | $4484984 |
|  **Cost of revenues** | 7094422 | 2391781 |
|  **Gross profit** | **3062019** | **2093203** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 271071 | 45962 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 689143 | 469843 |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 677580 | 182282 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 1637794 | 698087 |
|  **Income from operations** | **1424225** | **1395116** |
|  **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 8071 | 620 |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (35007) | (15630) |
| &nbsp;&nbsp;&nbsp; Other income, net | 224358 | 603 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income (expense), net | 197422 | (14407) |
|  **Income before income taxes** | **1621647** | **1380709** |
|  Provision for income taxes | 252605 | 316239 |
|  **Net income** | **1369042** | **1064470** |
|  **Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 49982 | 52568 |
|  **Comprehensive income** | $**1419024** | $**1117038** |
|  **Earnings per share\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | $0.27 | $0.21 |
|  **Weighted average number of shares outstanding\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | 5000000 | 5000000 |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **<br>Ordinary shares** | **<br>Ordinary shares** | **Additional<br>paid-in<br> capital** | **Statutory<br>reserves** | **Retained<br>earnings<br>(deficit)** | **Accumulated other<br>comprehensive<br>income (loss)** | **Total<br>shareholders'<br>equity (deficit)** |
|  | **Shares\*** | **Amount** | **Additional<br>paid-in<br> capital** | **Statutory<br>reserves** | **Retained<br>earnings<br>(deficit)** | **Accumulated other<br>comprehensive<br>income (loss)** | **Total<br>shareholders'<br>equity (deficit)** |
|  **Balance at December 31, 2019** | **5000000** | $**50** | $**1163502** | $**—** | $**(1396002)** | $**(17432)** | $**(249882)** |
| &nbsp;&nbsp;&nbsp; Capital contribution |  |  | 113636 |  |  |  | 113636 |
| &nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 1064470 |  | 1064470 |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  |  |  |  |  | 52568 | 52568 |
|  **Balance at December 31, 2020** | **5000000** | **50** | **1277138** | **—** | **(331532)** | **35136** | **980792** |
| &nbsp;&nbsp;&nbsp; Capital contribution |  |  | 461041 |  |  |  | 461041 |
| &nbsp;&nbsp;&nbsp; Net income |  |  |  |  | 1369042 |  | 1369042 |
| &nbsp;&nbsp;&nbsp; Statutory reserves appropriation |  |  |  | 99850 | (99850) |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments |  |  |  |  |  | 49982 | 49982 |
|  **Balance at December 31, 2021** | **5000000** | $**50** | $**1738179** | $**99850** | $**937660** | $**85118** | $**2860857** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | **For the Years Ended<br> December 31,** | **For the Years Ended<br> December 31,** |
|  | **2021** | **2020** |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $1369042 | $1064470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 102277 | 32072 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in provision for doubtful accounts |  | 82838 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recovery of provision for doubtful accounts | (1319) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | 195272 | 312104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of operating lease right-of-use assets | 4813 | 9166 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (3592713) | 1697049 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes receivable | 149668 | (139839) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (175007) | (138343) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other assets | (34113) | 28050 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance to vendors | (33358) | 16802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1744336 | (3130405) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 98585 | 136495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance from customers | (353803) | (82496) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes payable | 86625 | (1445) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases liabilities | (8463) | (9311) |
|  **Net cash (used in) operating activities** | **(448158)** | **(122793)** |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Additions to property, plant, and equipment | (42024) | (524994) |
| &nbsp;&nbsp;&nbsp; Acquisition of intangible asset | (241830) |  |
|  **Net cash (used in) investing activities** | **(283854)** | **(524994)** |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Loans from related parties |  | 589138 |
| &nbsp;&nbsp;&nbsp; Payments to related parties | (18314) |  |
| &nbsp;&nbsp;&nbsp; Capital contributions | 465059 | 114423 |
| &nbsp;&nbsp;&nbsp; Proceeds from bank acceptance notes payable, net of repayments | 113543 |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short-term bank loans | 1038631 | 434518 |
| &nbsp;&nbsp;&nbsp; Repayment of short-term bank loans | (465059) |  |
| &nbsp;&nbsp;&nbsp; Payment of offering costs | (443122) |  |
|  **Net cash provided by financing activities** | **690738** | **1138079** |
|  **Effect of exchange rate changes on cash and restricted cash** | **14752** | **96800** |
|  **Net (decrease) increase in cash and restricted cash** | **(26522)** | **587092** |
|  **Cash, cash equivalents and restricted cash at the beginning of year** | **638037** | **50945** |
|  **Cash, cash equivalents and restricted cash at the end of year** | $**611515** | $**638037** |
|  **Reconciliation of cash, cash equivalents and restricted cash, end of year** |  |  |
|  **Cash and cash equivalents** | $75059 | $155240 |
|  **Restricted cash** | 536456 | 482797 |
|  **Cash, cash equivalents and restricted cash at the end of year** | $**611515** | $**638037** |
|  **Supplemental cash flow disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for income tax | $34163 | $24336 |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $30308 | $18576 |
|  **Non-cash investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Right-of-assets obtained in exchange for operating lease obligations | $53852 | $4888 |

---

The accompanying notes are an integral part of these consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION
HUHUTECH International Group Inc. ("HUHUTECH" or the "Company") is a holding company incorporated under the laws of the Cayman Islands on July 8, 2021. HUHUTECH, through its wholly-owned subsidiaries is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for the optoelectronic, semiconductor, telecom and logistic industries in the People's Republic of China ("China" or "PRC").

#### Reorganization
A Reorganization of the legal structure was completed on January 14, 2022. The Reorganization involved the incorporations of HUHUTECH International Group Inc., a Cayman Islands holding company; HUHUTECH (HK) Limited ("HUHU HK"), a holding company established in Hong Kong, PRC; Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE"), a company established in the PRC; and the transfer of Jiangsu Huhu Electromechanical Technology Co., Ltd ("HUHU China"), a company established in the PRC, to WFOE.

Before and after the Reorganization, the Company, together with its subsidiaries, are effectively controlled by the same shareholder, who is the Chief Executive Officer ("CEO") and the Chairman of the Board of Directors of the Company, therefore the reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification ("ASC") 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.

Upon the reorganization, the Company has subsidiaries in countries and jurisdictions in Hong Kong, China and the PRC. Details of the subsidiaries of the Company as of December 31, 2021 were set out below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Entity** | **Date of <br>Incorporation** | **Jurisdiction of <br>Formation** | **Percentage of <br>Ownership** | **Principal Activities** |
|  HUHUTECH (HK) Limited ("HUHU HK") | July 28, 2021 | Hong Kong, PRC | 100% by HUHU | Investment holding |
|  Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE") | December 10, 2021 | PRC | 100% by HUHU HK | System integration and engineering services |
|  Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") | August 20, 2015 | PRC | 100% by WFOE | System integration and engineering services |

---

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Basis of presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities Exchange Commission ("SEC").

#### Principles of consolidation
The accompanying consolidated financial statements include the financial statements of HUHUTECH International Group Inc. and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Uses of estimates
In preparing the consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements and are adjusted to reflect actual experience when necessary. Significant estimates required to be made by management include, but are not limited to allowance for doubtful accounts, allowance for inventories obsolescence, the useful lives of property and equipment, revenue recognition and the realization of deferred tax assets. Actual results could differ from those estimates.

#### Cash
Cash comprises cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by FSD were $Nil and $55,331 as of December 31, 2021 and 2020, respectively.

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

#### Notes receivable
Notes receivable consisted of bank acceptance notes of $nil and $147,966 provided by the Company's customers as of December 31, 2021 and 2020, respectively. These non-interest-bearing notes with no more than 6 months maturity dates were issued or endorsed by the Company's customers to repay their payable balance due to the Company and these notes were guaranteed by the customers' banks.

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

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Inventories
Inventories are stated at the lower of cost or net realizable value. Costs include purchase price and related shipping costs. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized as an inventory valuation allowance. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products.

#### Advances to vendors
Advance to vendors consists of balances paid to suppliers for services and materials that have not been provided or received. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. In addition, at each reporting date, the Company determines the adequacy of the allowance by evaluating all available information, and then records specific allowances for those advances based on the available facts and circumstances. As of December 31, 2021 and 2020, the allowance for uncollectible advances to vendors was nil.

#### Prepayments and other assets, net
Prepayments and other assets primarily consist of prepaid rents and advances to employees, which are presented net of allowance for doubtful accounts. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management's best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Prepayment and other assets are written off against the allowances only after exhaustive collection efforts. Allowance for uncollectible balances amounted to $28,299 and $27,226 as of December 31, 2021 and 2020, respectively.

#### Property and equipment, net
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight-line method, as follows:

---

| | |
|:---|:---|
|  | **Useful life** |
|  Office equipment | 3 – 5 years |
|  Transportation equipment | 4 years |
|  Building | 20 years |

---

Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Intangible assets
Intangible assets consist primarily of the Type Class A license in construction and computer software. Type Class A license in construction is valid for five years and subject to renewal. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method.

<u> License </u>   <u> 5 years </u> <br> <u> Computer software </u>   <u> 3 years </u>

#### Impairment of long-lived assets
Long-lived assets, including property and equipment and intangible assets with finite lives, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the years ended December 31, 2021 and 2020, respectively.

#### Deferred offering costs
Deferred offering costs were expenses directly related to the Company's planned initial public offering ("IPO"). These costs consisted of legal, accounting, printing, and filing fees that the Company capitalized, including fees incurred by the independent registered public accounting firm directly related to the offering. The deferred offering costs will offset against the IPO proceeds and will be reclassified to additional paid-in capital upon completion of the IPO.

#### Notes payable
Notes payable are bank acceptance notes issued by financial institutions on the Company's behalf to vendors with a specific due date usually for a period of within 6 months. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before maturity date.

As collateral security for financial institutions' undertakings, the Company is required to maintain deposits with such financial institutions as restricted cash amounts of 50% to 100% of the balances of the bank acceptance notes. As of December 31, 2021, the Company deposited total $112,701 (RMB 718,200) as collateral to secure and issue eight bank acceptance notes of $114,937 (RMB 732,445) to its vendors with maturity period of six months. As of May 31, 2022 the notes were fully paid upon maturity and the restricted deposit was also released upon the payment. The Company did not have notes payable as of December 31, 2020.

#### Fair value of financial instruments
U.S. GAAP requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company's financial instruments, including cash, accounts receivable, notes receivable, advances to vendors, prepayments and other assets, accounts payable, accrued expenses and other liabilities, advances from customers, notes payable, due to related parties and bank loans, approximates their recorded values due to their short-term maturities. The Company determined that the carrying value of the Short-term bank loans approximated their fair value by comparing the stated loan interest rate to the rate charged by similar financial institutions.

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

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

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

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

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

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

Revenue from system integration projects

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

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Revenue is recognized over the contract term using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

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

Revenue from product sales

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

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

Revenue from engineering consulting services

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

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

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Disaggregation of revenues
For the years ended December 31, 2021 and 2020, the disaggregation of revenues by major revenue stream is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the years ended<br> December 31,** | **For the years ended<br> December 31,** |
|  | **2021** | **2020** |
|  System integration projects | $10007968 | $3518932 |
|  Product sales | 43161 | 232504 |
|  Engineering consulting services | 105312 | 733548 |
|  Total | $10156441 | $4484984 |

---

#### Research and development costs
Research and development activities are directed toward the development of cleaning control system, ultrapure water control system, gas detection system, and temperature automatic control system used in the semiconductor manufacturing process. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred.

#### Operating leases
A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases.

#### Value added tax ("VAT")
Revenue represents the invoiced value of goods and services, net of VAT. The VAT is based on gross sales price and VAT rates range from 6% to 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company's subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Government grants
Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of income and comprehensive income upon receipt and all conditions attached to the grants are fulfilled. For the years ended December 31, 2021 and 2020, the Company received $248,301 and $2,412 of government grants for various research programs. The benefit of these government grants on net income per share (basic and diluted) was $nil, $0.05 and $0.00 for the years ended December 31, 2021 and 2020, respectively.

#### Income taxes
The Company accounts for income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred for the years ended December 31, 2021 and 2020. All of the tax returns of the Company's subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Earnings per Share
The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the years ended December 31, 2021 and 2020, there were no dilutive shares. For the years ended December 31, 2021 and 2020, earnings per share amounted to $0.27 and $0.21, respectively.

#### Foreign currency translation
The functional currencies of the Company are the local currency of the county in which the subsidiaries operate. The Company's consolidated financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect on that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component in accumulated other comprehensive income included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.

Since the Company operates primarily in the PRC, the Company's functional currency is the Chinese Yuan ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency of U.S. Dollars ("US$"). The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in the translation.

The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

---

| | | |
|:---|:---|:---|
|  | **For the Year<br>Ended<br>December 31,<br>2021** | **For the Year<br>Ended<br>December 31,<br>2020** |
|  **Period Ended RMB: USD exchange rate** | 6.3726 | 6.5250 |
|  **Period Average RMB: USD exchange rate** | 6.4508 | 6.9042 |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Comprehensive income (loss)
Comprehensive income (loss) consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustments resulting from the Company not using US$ as its functional currency.

#### Risks and uncertainties
Beginning in late 2019, an outbreak of a novel strain of coronavirus (COVID-19) first emerged in China and has spread globally. In March 2020, the World Health Organization ("WHO") declared the COVID-19 as a pandemic. Governments in affected countries are imposing travel bans, quarantines and other emergency public health measures, which have caused material disruption to businesses globally resulting in an economic slowdown. Due to the fact that the COVID-19 coronavirus outbreak appears to be gradually contained in China, the Company's production and sales activities have been gradually returning to normal in fiscal 2021 and 2022. In addition, there is hiking market demand of semiconductor because of the global shortage caused by economic recovery after the pandemic. As the result, the Company revenues increased approximately 35% as compared to the fiscal 2020. However, there is still significant uncertainty regarding the possibility of new wave of infections caused by new variant, the breadth and duration of business disruptions due to the new waves could continue to have material impact to the Company's operations.

#### Segment reporting
In accordance with ASC Topic 280, Segment Reporting, the Company's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer. The Company's CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business in PRC China as a single segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented.

#### Concentrations of risks
(a) Concentration of credit risk

Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of December 31, 2021 and 2020, the aggregate amount of cash of $69,267 and $154,644 respectively, was held at major financial institutions in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts that was not covered by FSD were $Nil and $55,331 as of December 31, 2022 and 2021, respectively. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. The Company conducts credit evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for doubtful accounts based on the individual customer's and supplier's financial condition, credit history, and the current economic conditions.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
(b) Significant customers

For the year ended December 31, 2021, three customers accounted for 28.6%,13.3% and 10.6% of total revenues. For the year ended December 31, 2020, two customers accounted for 34.6% and 30.6% of total revenues. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable. As of December 31, 2020, three customers accounted for 33.1%, 28.1% and 21.1% of total accounts receivable.

(c) Significant suppliers

For the year ended December 31, 2021, no supplier accounted for more than 10% of total purchases. For the year ended December 31, 2020, one supplier accounted for approximately 22.3% of total purchases. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively. As of December 31, 2020, three suppliers accounted for approximately 21.5%, 18.9% and 12.4% of total accounts payable, respectively.

(d) Foreign currency risk

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

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

#### Recent accounting pronouncements
The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset and lease liability on the balance sheet for all leases, including operating leases, with a term in excess of 12 months. The guidance also expands the quantitative and qualitative disclosure requirements. In July 2018, the FASB issued updates to the lease standard making transition requirements less burdensome. The update provides an option to apply the transition provisions of the new standard at its adoption date instead of at the earliest comparative period presented in the company's financial statements. The new guidance requires the lessee to record operating leases on the balance sheet with a right-of-use asset and corresponding liability for future

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
payment obligations. FASB further issued ASU 2018-11 "Target Improvement" and ASU 2018-20 "Narrow-scope Improvements for Lessors." In June 2020, the FASB issued ASU No. 2020-05, "Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842) Effective Dates for Certain Entities" ("ASU 2020-05") in response to the ongoing impacts to businesses in response to the coronavirus (COVID-19) pandemic. ASU 2020-05 provides a limited deferral of the effective dates for implementing previously issued ASU 842 to give some relief to businesses and the difficulties they are facing during the pandemic. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"). ASU 2018-13 modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 3 — ACCOUNTS RECEIVABLE, NET

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Accounts receivable from third-party customers | $5597120 | $1914534 |
|  Less: allowance for doubtful accounts | (419509) | (411427) |
|  Account receivable, net | $5177611 | $1503107 |

---

Allowance for doubtful accounts movement is as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Beginning balance | $411427 | $303602 |
|  Provision |  | 82695 |
|  Reduction | (1737) |  |
|  Foreign currency translation adjustments | 9819 | 25130 |
|  Ending balance | $419509 | $411427 |

---

Approximately $4.3 million or 76.2% of the account receivable balance as of December 31, 2021 has been collected as of August 31, 2022.

#### NOTE 4 — INVENTORIES
Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Materials | $540652 | $355007 |

---

The Company records the value of its inventory using the lower of cost or net realizable value, cost is calculated on the weighted average method. No inventory reserve was recorded as of December 31, 2021 and 2020.

#### NOTE 5 — ADVANCE TO VENDORS
Advance to vendors consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Prepayments for technical service and materials | $95778 | $60562 |

---

#### NOTE 6 — PREPAYMENTS AND OTHER ASSETS , NET
Prepayments and other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Prepaid rents | $28111 | $6146 |
|  Prepaid expense | 59719 | 45907 |
|  Less: allowance for uncollectible balances | (28299) | (27226) |
|  Prepayments and other current assets; net | $59531 | $24827 |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 7 — PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Building | $366034 | $357484 |
|  Office equipment | 69933 | 56636 |
|  Transportation equipment | 286208 | 249641 |
|  Subtotal | 722175 | 663761 |
|  Less: accumulated depreciation | (169876) | (79963) |
|  Property and equipment, net | $552299 | $583798 |

---

Depreciation expense for the years ended December 31, 2021 and 2020 amounted to $86,934 and $31,719, respectively.

#### NOTE 8 — INTANGIBLE ASSETS, NET
The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $15,343 and $353 for the years ended December 31, 2021 and 2020, respectively.

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  License | $244798 | $— |
|  Computer software | 805 | 786 |
|  Less: accumulated amortization | (16309) | (759) |
|  Intangible assets, net | $229294 | $27 |

---

The estimated future amortization expenses are as follows:

---

| | |
|:---|:---|
|  **Years ending December 31,** | **Estimated Amortization Expense** |
| 2022 | $48366 |
| 2023 | 48366 |
| 2024 | 48366 |
| 2025 | 48366 |
| 2026 | 35830 |
|  Total | $229294 |

---

#### NOTE 9 — LEASES
The Company has several operating leases for manufacturing facilities and offices. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2020, the Company adopted the new lease accounting standard using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated retained earnings as of December 31, 2020. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 9 — LEASES (cont.)
On January 1, 2020, the ROU assets and related lease liabilities recognized were $8,069 and $8,069, respectively. Total lease expense amounted to $9,378 for the year ended December 31, 2020, which included $212 interest and $9,166 amortization expenses of ROU assets. Total lease expense amounted to $5,510 for the year ended December 31, 2021, which included $697 interest and $4,813 amortization expenses of ROU assets. Total cash paid for operating leases amounted to $9,523 and $9,160 for the years ended December 31, 2021 and 2020.

Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Right-of-use assets, net | $53820 | $4082 |
|  Operating lease liabilities – current | $14685 | $1697 |
|  Operating lease liabilities – non-current | 35283 | 2231 |
|  Total operating lease liabilities | $49968 | $3928 |

---

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of December 31, 2021:

---

| | |
|:---|:---|
|  Remaining lease term and discount rate: |  |
|  Weighted average remaining lease term (years) | 4 |
|  Weighted average discount rate | 4.50% |

---

The following is a schedule of maturities of lease liabilities as of December 31, 2021:

---

| | |
|:---|:---|
|  **Years ending December 31,** | |
| 2022 | $16661 |
| 2023 | 15249 |
| 2024 | 14778 |
| 2025 | 7390 |
|  Total future minimum lease payments | 54078 |
|  Less: imputed interest | 4110 |
|  Total | $49968 |

---

#### NOTE 10 — ACCRUED EXPENSE AND OTHER LIABILITIES

#### Accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Payroll payable | $272018  | $43374  |
|  Rent payable | 61141 | 163576 |
|  Equipment payable | 90221 | 116015 |
|  Other payables | 12096 | 4876 |
|  Total | $435476  | $327841  |

---

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 11 — SHORT TERM LOANS
Short-term borrowings consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  **Bank of Jiangsu** |  |  |
|  Interest rate of 4.5%, from March 19, 2020 to March 18, 2021 | $— | $459770 |
|  Interest rate of 4.4%, from April 19, 2021 to April 18, 2022 | 313844 |  |
|  Interest rate of 4.4%, from March 22, 2021 to March 21, 2022 | 470765 |  |
|  **China Construction Bank** |  |  |
|  Interest rate of 4.05%, from December 10, 2021 to November 3, 2022 | 188306 |  |
|  Interest rate of 4.05%, from December 21, 2021 to November 3, 2022 | 78461 |  |
|  **Total** | $1051376 | $459770 |

---

On March 19, 2020, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $459,770 (RMB 3,000,000) for one year with a maturity date on March 18, 2021 at a fixed annual interest rate of 4.5%. The Company pledged one patent valued at RMB 5.0 million (approximately $0.8 million) for guarantee of loan repayment. The loan was fully repaid upon maturity.

On April 19, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on April 18, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On March 22, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 21, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On December 10, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $188,306 (RMB 1,200,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan.

On December 21, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $78,461 (RMB 500,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan.

For the years ended December 31, 2021 and 2020, the Company recorded bank loan interest expenses of $35,007 and $15,630, respectively.

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS
Related party balances as of December 31, 2021 and 2020 and transactions for the years ended December 31, 2021 and 2020 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Related party relationships:**

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  Mr. Yujun Xiao | CEO and Chairman of the Board of Directors of the Company |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | Mr. Yujun Xiao served as a supervisor and holds 40% of the shares |

---

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS (cont.)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Due from related party:**

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31,** | **As of <br>December 31,** |
|  | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shanghai Tongcheng Enterprise Management Co., Ltd. | $1569 | $— |

---

The balance was fully repaid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) Due to related party:**

---

| | | |
|:---|:---|:---|
|  | **As of <br>December 31,** | **As of <br>December 31,** |
|  | **2021** | **2020** |
| &nbsp;&nbsp;&nbsp; Mr. Yujun Xiao | $637007 | $638702 |

---

Mr. Yujun Xiao made advances to the Company as working capital to support the Company's operations during the year ended December 31, 2021 and 2020. The balance was unsecured, interest-free and due upon demand.

#### NOTE 13 — TAXES

#### Corporate Income Taxes ("CIT")
<u><u>Cayman Islands</u></u>

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of the Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

<u><u>Hong Kong</u></u>

Under Hong Kong tax laws, HUHU HK is subject to a statutory income tax rate at 16.5% if revenue is generated in Hong Kong and they are exempted from income tax on their foreign-derived income. There are no withholding taxes in Hong Kong on remittance of dividends.

<u><u>PRC</u></u>

The Company derives all its income in PRC. Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate.

#### The components of the income tax provision are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31, <br>2021** | **For the <br>year ended <br>December 31, <br>2020** |
|  Current income tax expense | $57333 | $336949 |
|  Deferred income tax expense (benefit) | 195272 | (20710) |
|  Total provision for income taxes | $252605 | $316239 |

---

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 13 — TAXES (cont.)

#### The following table reconciles the PRC statutory rate to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the <br>year ended <br>December 31,<br>2021** | **For the <br>year ended <br>December 31,<br>2020** |
|  PRC statutory tax rate | 25.0% | 25.0% |
|  Research and development ("R&D") tax credit | (6.3)% | (1.5)% |
|  Non-deductible items\* | (3.2)% | (0.6)% |
|  Effective tax rate | 15.5% | 22.9% |

---

____________

\* Non-deductible items represent excess expenses and losses not deductible for PRC tax purpose.

#### The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Deferred tax assets: |  |  |
|  Allowance for doubtful accounts | $111952 | $105054 |
|  Net operating losses |  | 197334 |
|  Total deferred tax assets | $111952 | $302388 |

---

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets as at December 31, 2021 and 2020.

During the year ended December 31, 2021, a net operating loss carry forward of $789,336 was utilized to offset the Company's taxable income. All net operating loss carry forwards were utilized as of December 31, 2021.

#### Taxes payable
Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2020** |
|  Income tax payable | $36790 | $— |
|  Value-added tax payable | 39357 | 1168 |
|  Other taxes payable | 12797 | 59 |
|  Total taxes payable | $88944 | $1227 |

---

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the years ended December 31, 2021 and 2020.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 14 — SHAREHOLDERS' EQUITY

#### Ordinary shares
The Company was established by the founding shareholders under the laws of the Cayman Islands on July 8, 2021. The Company is authorized to issue 5,000,000,000 Ordinary Shares with a par value of $0.00001 each. As of December 31, 2020, 5,000,000 Ordinary Shares are issued and outstanding.

#### Capital contributions
HUHU China was incorporated under the laws of the People's Republic of China with a total registered capital of approximately $3.27 million (RMB 21,575,000). As of December 31, 2019, the Company received total capital contributions of approximately $1.16 million (RMB 8,000,000). During the years ended December 31, 2020 and 2021, the Company received capital contributions of $113,636 (RMB 790,000) and $461,041 (RMB 3,000,000), respectively. As of the date of this report, pursuant to the articles of incorporation of HUHU China, the remaining capital investment of approximately $1.54 million (RMB 9,785,000) shall be contributed in full before December 31, 2049.

#### Statutory reserve and restricted net assets
As stipulated by relevant PRC laws and regulations, the Company's subsidiaries and affiliated entities in the PRC must take appropriations from after-tax profits to non-distributive funds. These reserves include the general reserve and the development reserve.

The general reserve requires an annual appropriation of 10% of after-tax profits each year-end until the balance reaches 50% of a PRC company's registered capital. The development reserve is set aside at the Company's discretion. These reserves can only be used for general enterprise expansion and are not distributable as cash dividends. The general reserve amounted to $99,850 and $Nil as of December 31, 2021 and 2020, respectively.

Because the Company's operating subsidiaries in the PRC can only pay distributions out of distributable profits reported in accordance with PRC accounting standards, the Company's operating subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital and statutory reserves of the Company's entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Company's operating subsidiaries in the PRC not available for distribution, was $1,838,029 and $1,277,138 as of December 31, 2021 and 2020, respectively.

#### NOTE 15 — COMMITMENTS AND CONTINGENCIES
<u>**<u>Contingencies</u>**</u>

From time to time, the Company is subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of December 31, 2021, the Company has no outstanding litigation.

#### NOTE 16 — SUBSEQUENT EVENTS
The Company has evaluated subsequent events through October 21, 2022, the date these consolidated financial statements were available for issuance. The Company evaluated subsequent events through the date these consolidated financial statements were issued, and concluded that there are no additional reportable subsequent events except as disclosed below.

#### New subsidiary
On April 25, 2022, the Company incorporated a wholly owned subsidiary HUHU Technology Co., Ltd ("HUHU Japan") in Japan. HUHU Japan engages in providing professional system integration for optoelectronic, semiconductor, telecom and logistic industries in Japan.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)

#### Bank loans
On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 14, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) with a maturity date on April 11, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $86,307 (RMB 550,000) with a maturity date on April 16, 2023 at a fixed annual interest rate of 5.4375%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 22, 2022.

On April 01, 2022, the Company entered into a loan agreement with the Bank of Ningbo to obtain a loan of $470,765 (RMB 3,000,000) with a maturity date on March 28, 2023 at a fixed annual interest rate of 4.35%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On July 18, 2022, the Company entered into a loan agreement with the Bank of Nanjing to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on July 17, 2023 at a fixed annual interest rate of 3.70%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On January 18, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $63,769 (RMB 400,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 15, 2022.

On March 14, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $25,107 (RMB 160,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 15, 2022.

On March 14, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $400,151 (RMB 2,550,000) for one year with a maturity date on March 13, 2023 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 16, 2022.

On March 18, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $70,615 (RMB 450,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 22, 2022.

On March 23, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $31,384 (RMB 200,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on March 25, 2022.

On March 24, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $7,846 (RMB 50,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co- borrower of the loan. The loan was fully repaid March 25, 2022.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)
On June 23, 2022, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $101,999 (RMB 650,000) with a maturity date on November 03, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, is a co- borrower of the loan.

On June 23, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on June 23, 2023 at a fixed monthly interest rate of 3.08333%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

On July 19, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on July 18, 2023 at a fixed monthly interest rate of 3.08333%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder and director of the Company, guaranteed the repayment of the loan.

As of the date of this report, the Company obtained total bank loans of approximately $3.3 million (RMB 21,010,000), and repaid total bank loans of approximately $2.6 million (RMB 16,710,000) subsequent to the year ended December 31, 2021.

#### NOTE 17 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY
The Company's PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company. The payment of dividends by entities organized in the PRC is subject to limitations, procedures and formalities. Regulations in the PRC currently permit payment of dividends only out of accumulated profits as determined in accordance with accounting standards and regulations in the PRC. The Company's subsidiaries are also required to set aside at least 10% of its after-tax profit based on PRC accounting standards each year to its statutory reserves account until the accumulative amount of such reserves reaches 50% of its respective registered capital. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

In addition, the Company's operations and revenues are conducted and generated in the PRC, all of the Company's revenues being earned and currency received are denominated in RMB. RMB is subject to the foreign exchange control regulation in China, and, as a result, the Company may be unable to distribute any dividends outside of China due to PRC foreign exchange control regulations that restrict the Company's ability to convert RMB into USD.

Regulation S-X requires the condensed financial information of registrant shall be filed when the restricted net assets of consolidated subsidiaries exceed 25 percent of consolidated net assets as of the end of the most recently completed fiscal year. For purposes of the above test, restricted net assets of consolidated subsidiaries shall mean that amount of the registrant's proportionate share of net assets of consolidated subsidiaries (after intercompany eliminations) which as of the end of the most recent fiscal year may not be transferred to the parent company by subsidiaries in the form of loans, advances or cash dividends without the consent of a third party. The condensed parent company financial statements have been prepared in accordance with Rule 12-04, Schedule I of Regulation S-X as the restricted net assets of the Company's PRC subsidiary exceed 25% of the consolidated net assets of the Company.

Certain information and footnote disclosures normally included in financial statements prepared in conformity with generally accepted accounting principles have been condensed or omitted. The Company's investment in subsidiary is stated at cost plus equity in undistributed earnings of subsidiaries.

The condensed financial information has been prepared using the same accounting policies as set out in the consolidated financial statements except that the equity method has been used to account for investments in its subsidiaries. For the parent company, the Group records its investments in subsidiaries under the equity method of accounting as prescribed in ASC 323, Investments — Equity Method and Joint Ventures. Such investments are presented on the Condensed Balance Sheets as ''Investments in subsidiaries'' and the subsidiaries' gain as ''Equity in gain of subsidiaries'' on the Condensed Statements of Comprehensive Income.

For the period from July 8, 2021 (the date of incorporation of the parent company) to December 31, 2021 there were no material contingencies, significant provisions of long-term obligations, guarantees of the parent company.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 17 — CONDENSED FINANCIAL INFORMATION OF THE PARENT COMPANY (cont.)

#### PARENT COMPANY BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **December 31,<br>2021** | **December 31,<br>2020** |
|  **ASSETS** |  |  |
| &nbsp;&nbsp;&nbsp; Investment in subsidiaries, net | $727181 | $— |
|  **TOTAL ASSETS** | $**727181** | $**—** |
|  **EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Share capital | 50 |  |
| &nbsp;&nbsp;&nbsp; Additional paid in capital | (50) |  |
| &nbsp;&nbsp;&nbsp; Statutory reserves |  |  |
| &nbsp;&nbsp;&nbsp; Retained Earnings | 692615 |  |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive income | 34566 |  |
| &nbsp;&nbsp;&nbsp; **TOTAL SHAREHOLDERS' EQUITY** | 727181 |  |
|  **TOTAL LIABILITIES AND EQUITY** | $**727181** | $**—** |

---

____________

\* Shares and per share data are presented on a retroactive basis to reflect the recapitalization.

#### PARENT COMPANY STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | |
|:---|:---|
|  | **For the <br>period from <br>July 8, 2021 <br>(Inception) to <br>December 31, <br>2021** |
|  Equity in earnings of subsidiaries | 692615 |
|  **NET INCOME** | **692615** |
|  **OTHER COMPREHENSIVE INCOME** |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | 34566 |
|  **COMPREHENSIVE INCOME** | $**727181** |

---

#### PARENT COMPANY STATEMENTS OF CASH FLOWS

---

| | |
|:---|:---|
|  | **For the <br>period from <br>July 8, 2021 <br>(Inception) to <br>December 31, <br>2021** |
|  **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |
|  Net income | $692615 |
|  Adjustments to reconcile net income to net cash used in operating activities: |  |
| &nbsp;&nbsp;&nbsp; Equity in earnings of subsidiaries | (692615) |
|  **NET CASH USED IN OPERATING ACTIVITIES** | **—** |
|  **CHANGES IN CASH** | **—** |
|  **CASH AND CASH EQUIVALENTS AT THE BEGINNING OF YEAR** | **—** |
|  **CASH AND CASH EQUIVALENTS AT THE END OF YEAR** | $**—** |

---

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>CONDENSED CONSOLIDATED BALANCE SHEETS

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30,** | **As of <br>December 31,** |
|  | **2022** | **2021** |
|  | (Unaudited) | |
|  **ASSETS** |  |  |
|  **CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash | $1109463 | $75059 |
| &nbsp;&nbsp;&nbsp; Restricted cash | 285320 | 536456 |
| &nbsp;&nbsp;&nbsp; Notes receivable | 388170 |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable, net | 5749800 | 5177611 |
| &nbsp;&nbsp;&nbsp; Inventories | 1085587 | 540652 |
| &nbsp;&nbsp;&nbsp; Advances to vendors, net | 545593 | 95778 |
| &nbsp;&nbsp;&nbsp; Prepayments and other assets, net | 75741 | 59531 |
| &nbsp;&nbsp;&nbsp; Due from related party | 1493 | 1569 |
|  **TOTAL CURRENT ASSETS** | 9241167 | 6486656 |
| &nbsp;&nbsp;&nbsp; Property, plant and equipment, net | 491088 | 552299 |
| &nbsp;&nbsp;&nbsp; Intangible assets, net | 194861 | 229294 |
| &nbsp;&nbsp;&nbsp; Deferred tax assets | 69807 | 111952 |
| &nbsp;&nbsp;&nbsp; Deferred offering costs | 438937 | 448560 |
| &nbsp;&nbsp;&nbsp; Right-of-use assets | 44297 | 53820 |
|  **TOTAL ASSETS** | $**10480157** | $**7882581** |
|  **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
|  **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp; Short term bank loan | $1642257 | $1051376 |
| &nbsp;&nbsp;&nbsp; Notes payable | 208879 | 114937 |
| &nbsp;&nbsp;&nbsp; Accounts payable | 3551713 | 2582848 |
| &nbsp;&nbsp;&nbsp; Due to related party | 514459 | 637007 |
| &nbsp;&nbsp;&nbsp; Advances from customers | 182416 | 61168 |
| &nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 491688 | 435476 |
| &nbsp;&nbsp;&nbsp; Taxes payable | 146977 | 88944 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – current | 13989 | 14685 |
|  **TOTAL CURRENT LIABILITIES** | 6752378 | 4986441 |
| &nbsp;&nbsp;&nbsp; Operating lease liabilities – non-current | 26793 | 35283 |
|  **TOTAL LIABILITIES** | 6779171 | 5021724 |
|  **COMMITMENTS AND CONTINGENCIES** |  |  |
|  **SHAREHOLDERS' EQUITY:** |  |  |
| &nbsp;&nbsp;&nbsp; Ordinary shares, $0.00001 par value, 5,000,000,000 shares authorized, 5,000,000 shares issued and outstanding as of June 30, 2022 and December 31, 2021\* | 50 | 50 |
| &nbsp;&nbsp;&nbsp; Additional paid-in capital | 1738179 | 1738179 |
| &nbsp;&nbsp;&nbsp; Statutory reserves | 201075 | 99850 |
| &nbsp;&nbsp;&nbsp; Retained earnings | 1848687 | 937660 |
| &nbsp;&nbsp;&nbsp; Accumulated other comprehensive (loss) income | (87005) | 85118 |
|  **TOTAL SHAREHOLDERS' EQUITY** | **3700986** | **2860857** |
|  **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | $**10480157** | $**7882581** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2022** | **2021** |
|  | (Unaudited) | (Unaudited) |
|  **Revenues** | $6318135 | $3964409 |
|  **Cost of revenues** | 4233401 | 2713019 |
|  **Gross profit** | **2084734** | **1251390** |
|  **Operating expenses:** |  |  |
| &nbsp;&nbsp;&nbsp; Selling expenses | 91382 | 114518 |
| &nbsp;&nbsp;&nbsp; General and administrative expenses | 387315 | 315022 |
| &nbsp;&nbsp;&nbsp; Research and development expenses | 477642 | 263945 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total operating expenses** | 956339 | 693485 |
|  **Income from operations** | **1128395** | **557905** |
|  **Other income (expense):** |  |  |
| &nbsp;&nbsp;&nbsp; Interest income | 3215 | 5122 |
| &nbsp;&nbsp;&nbsp; Interest (expense) | (22411) | (20844) |
| &nbsp;&nbsp;&nbsp; Other income, net | 78838 | 109043 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other income, net | 59642 | 93321 |
|  **Income before income taxes** | **1188037** | **651226** |
|  Provision for income taxes | 175785 | 88217 |
|  **Net income** | **1012252** | **563009** |
|  **Other comprehensive income** |  |  |
| &nbsp;&nbsp;&nbsp; Foreign currency translation adjustments | (172123) | 15178 |
|  **Comprehensive income** | $**840129** | $**578187** |
|  **Earnings per share\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | $0.20 | $0.11 |
|  **Weighted average number of shares outstanding\*** |  |  |
| &nbsp;&nbsp;&nbsp; Basic and diluted | 5000000 | 5000000 |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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

#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary shares** | **Ordinary shares** | **Additional <br>paid-in <br>capital** | **Statutory <br>reserves** | **Retained <br>earnings** | **Accumulated <br>other <br>comprehensive <br>income (loss)** | **Total <br>shareholders' <br>equity** |
|  | **Shares\*** | **Amount** | **Additional <br>paid-in <br>capital** | **Statutory <br>reserves** | **Retained <br>earnings** | **Accumulated <br>other <br>comprehensive <br>income (loss)** | **Total <br>shareholders' <br>equity** |
|  **Balance at December 31, 2020** | **5000000** | $**50** | $**1277138** | $**—** | $**(331532**) | $**35136** | $**980792** |
|  Capital contribution |  |  | 461041 |  |  |  | 461041 |
|  Net income |  |  |  |  | 563009 |  | 563009 |
|  Statutory reserve appropriation |  |  |  | 56301 | (56301) |  |  |
|  Foreign currency translation adjustments |  |  |  |  |  |  | 15178 |
|  **Balance at June 30, 2021 (Unaudited)** | **5000000** | $**50** | $**1738179** | $**56301** | $**175176** | $**50314** | $**2020020** |
|  **Balance at December 31, 2021** | **5000000** | $**50** | $**1738179** | $**99850** | $**937660** | $**85118** | $**2860857** |
|  Net income |  |  |  |  | 1012252 |  | 1012252 |
|  Statutory reserve appropriation |  |  |  | 101225 | (101225) |  |  |
|  Foreign currency translation adjustments |  |  |  |  |  | (172123) | (172123) |
|  **Balance at June 30, 2022 (Unaudited)** | **5000000** | $**50** | $**1738179** | $**201075** | $**1848687** | $**(87005**) | $**3700986** |

---

____________

\* Share and per share data are presented on a retroactive basis to reflect the reorganization.

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

---

| | | |
|:---|:---|:---|
|  | **For the Six Months Ended June 30,** | **For the Six Months Ended June 30,** |
|  | **2022** | **2021** |
|  | (Unaudited) | (Unaudited) |
|  **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net income | $1012252 | $563009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 70362 | 42707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in provision for doubtful accounts | (151782) | 23417 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax expense | 37946 | 69691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of operating lease right-of-use assets | 7141 | 846 |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable | (699863) | (1197002) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notes receivable | (401290) | (154945) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | (590517) | (166898) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepayments and other assets | (19748) | (132333) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance to vendors | (469830) | (623017) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 1131372 | 1210065 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities | 79990 | 283896 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Advance from customers | 128419 | 51535 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taxes payable | 64463 | (655) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating leases liabilities | (7141) | (846) |
|  **Net cash provided by (used in) operating activities** | **191774** | **(30530**) |
|  **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Additions to property, plant, and equipment | (10752) | (3535) |
|  **Net cash (used in) investing activities** | **(10752**) | **(3535**) |
|  **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Loans from related parties |  | 1678 |
| &nbsp;&nbsp;&nbsp; Payments to related parties | (94688) |  |
| &nbsp;&nbsp;&nbsp; Capital contributions |  | 463664 |
| &nbsp;&nbsp;&nbsp; Proceeds from short-term bank loans | 1697767 | 772774 |
| &nbsp;&nbsp;&nbsp; Repayment of short-term bank loans | (1034094) | (463664) |
| &nbsp;&nbsp;&nbsp; Payment of offering costs | (12588) | (364516) |
|  **Net cash provided by financing activities** | **556397** | **409936** |
|  **Effect of exchange rate changes on cash and restricted cash** | **45849** | **7707** |
|  **Net increase in cash and restricted cash** | **783268** | **383578** |
|  **Cash and restricted cash at the beginning of period** | **611515** | **638037** |
|  **Cash and restricted cash at the end of period** | $**1394783** | $**1021615** |
|  **Reconciliation of cash and restricted cash, end of period** |  |  |
|  Cash | $1109463 | $1021615 |
|  Restricted cash | 285320 |  |
|  **Cash and restricted cash at the end of period** | $**1394783** | $**1021615** |
|  **Supplemental cash flow disclosures:** |  |  |
| &nbsp;&nbsp;&nbsp; Cash paid for income tax | $14061 | $27315 |
| &nbsp;&nbsp;&nbsp; Cash paid for interest | $22411 | $12577 |

---

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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#### HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

#### NOTE 1 — ORGANIZATION AND BUSINESS DESCRIPTION
HUHUTECH International Group Inc. ("HUHUTECH" or the "Company") is a holding company incorporated under the laws of the Cayman Islands on July 8, 2021. HUHUTECH, through its wholly-owned subsidiaries is a professional system integration provider to design and implement integrated facility management systems and industrial automation monitoring systems mainly for the optoelectronic, semiconductor, telecom and logistic industries in the People's Republic of China ("China" or "PRC").

#### Reorganization
A Reorganization of the legal structure was completed on January 14, 2022. The Reorganization involved the incorporations of HUHUTECH International Group Inc., a Cayman Islands holding company; HUHUTECH (HK) Limited ("HUHU HK"), a holding company established in Hong Kong, PRC; Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE"), a company established in the PRC; and the transfer of Jiangsu Huhu Electromechanical Technology Co., Ltd ("HUHU China"), a company established in the PRC, to WFOE.

Before and after the Reorganization, the Company, together with its subsidiaries, are effectively controlled by the same shareholder, who is the Chief Executive Officer ("CEO") and the Chairman of the Board of Directors of the Company, therefore the reorganization is considered as a recapitalization of entities under common control in accordance with Accounting Standards Codification ("ASC") 805-50-25. The consolidation of the Company and its subsidiaries have been accounted for at historical cost and prepared on the basis as if the aforementioned transactions had become effective as of the beginning of the first period presented in the accompanying consolidated financial statements.

Upon the reorganization, the Company has subsidiaries in countries and jurisdictions in Hong Kong, China and the PRC. Details of the subsidiaries of the Company as of June 30, 2022 were set out below:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  **Name of Entity** | **Date of <br>Incorporation** | **Jurisdiction of <br>Formation** | **Percentage of <br>Ownership** | **Principal <br>Activities** |
|  HUHUTECH (HK) Limited ("HUHU HK") | July 28, 2021 | Hong Kong, PRC | 100% by HUHU | Investment holding |
|  Wuxi Xinwu District Jianmeng Electromechanical Technology Co., Ltd ("WFOE") | December 10, 2021 | PRC | 100% by HUHU HK | System integration and engineering services |
|  Jiangsu Huhu Electromechanical Technology Co., Ltd. ("HUHU China") | August 20, 2015 | PRC | 100% by WFOE | System integration and engineering services |

---

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

#### Basis of presentation
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") pursuant to the rules and regulations of the Securities Exchange Commission ("SEC"). The interim results of operations are not necessarily indicative of results to be expected for any other interim period or for a full year. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation of its financial position and operating results have been included. These financial statements should be read in conjunction with the Company's audited consolidated financial statements and the related notes thereto for the fiscal years ended December 31, 2021 and 2020.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Principles of consolidation
The accompanying unaudited condensed consolidated financial statements include the unaudited condensed financial statements of HUHUTECH International Group Inc. and its subsidiaries. All inter-company balances and transactions have been eliminated upon consolidation.

#### Use of estimates
In preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information as of the date of the consolidated financial statements and are adjusted to reflect actual experience when necessary. Significant estimates required to be made by management include, but are not limited to allowance for doubtful accounts, allowance for inventories obsolescence, the useful lives of property and equipment, revenue recognition and the realization of deferred tax assets. Actual results could differ from those estimates.

#### Cash
Cash comprises cash at banks and on hand, which includes deposits with original maturities of three months or less with commercial banks in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 (approximately $75,000) deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts not covered by FSD were approximately $861,000 and $Nil as of June 30, 2022 and December 31, 2021, respectively.

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

#### Notes receivable
Notes receivable consisted of bank acceptance notes of $388,170 and $Nil provided by the Company's customers as of June 30, 2022 and December 31 2021, respectively. These non-interest-bearing notes with no more than 6 months maturity dates were issued or endorsed by the Company's customers to repay their balance due to the Company and these notes were guaranteed by the customers' banks.

#### Accounts receivable, net
Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of income and comprehensive income. Delinquent account balances are written-off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Allowance for doubtful accounts amounted to $252,303 and $419,509 as of June 30, 2022 and December 31 2021, respectively.

#### Inventories
Inventories are stated at the lower of cost or net realizable value. Costs include purchase price and related shipping costs. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the net realizable value of each item of inventories is recognized as an inventory valuation allowance. Net realizable value is estimated using selling price in the normal course of business less any costs to complete and sell products.

#### Advances to vendors
Advances to vendors consists of balances paid to suppliers for services and materials that have not been provided or received. Advances to suppliers are short-term in nature and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. In addition, at each reporting date, the Company determines the adequacy of the allowance by evaluating all available information, and then records specific allowances for those advances based on the available facts and circumstances. As of June 30, 2022 and December 31 2021, the allowance for uncollectible advances to vendors was nil.

#### Prepayments and other assets, net
Prepayments and other assets primarily consist of prepaid rents and advances to employees, which are presented net of allowance for doubtful accounts. Prepayment and other assets are classified as either current or non-current based on the terms of the respective agreements. These advances are unsecured and are reviewed periodically to determine whether their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. The allowance is also based on management's best estimate of specific losses on individual exposures, as well as a provision on historical trends of collections and utilizations. Actual amounts received or utilized may differ from management's estimate of credit worthiness and the economic environment. Prepayment and other assets are written off against the allowances only after exhaustive collection efforts. Allowance for uncollectible balances amounted to $26,924 and $28,299 as of June 30, 2022 and December 31, 2021, respectively.

#### Property and equipment, net
Property and equipment are recorded at cost less accumulated depreciation. Depreciation is provided in the amounts sufficient to depreciate the cost of the related assets over their useful lives using the straight-line method, as follows:

---

| | |
|:---|:---|
|  | **Useful life** |
|  Office equipment | 3 – 5 years |
|  Transportation equipment | 4 years |
|  Building | 20 years |

---

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other comprehensive income in other income or expenses.

#### Intangible assets
Intangible assets consist primarily of the Type Class A license in construction and computer software. Type Class A license in construction is valid for five years and subject to renewal. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method.

<u> License </u>   <u> 5 years </u> <br> <u> Computer software </u>   <u> 3 years </u>

#### Impairment of long-lived assets
Long-lived assets, including property and equipment and intangible assets with finite lives, are evaluated for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate that the carrying amount may not be fully recoverable or that the useful life is shorter than the Company had originally estimated. When these events occur, the Company evaluates the impairment by comparing the carrying value of the assets to an estimate of future undiscounted cash flows expected to be generated from the use of the assets and their eventual disposition. If the sum of the expected future undiscounted cash flows is less than the carrying value of the assets, the Company recognizes an impairment loss based on the excess of the carrying value of the assets over the fair value of the assets. No impairment charge was recognized for the six months June 30, 2022 and 2021, respectively.

#### Deferred offering costs
Deferred offering costs are expenses directly related to the Company's planned initial public offering ("IPO"). These costs consist of legal, accounting, printing, and filing fees that the Company capitalized, including fees incurred by the independent registered public accounting firm directly related to the registration statement. The deferred offering costs will offset against the IPO proceeds and will be reclassified to additional paid-in capital upon completion of the IPO.

#### Notes payable
Notes payable are bank acceptance notes issued by financial institutions on the Company's behalf to vendors with a specific due date usually for a period of within 6 months. These notes can either be endorsed by the vendor to other third parties as payment or can be factored to other financial institutions before maturity date.

As collateral security for financial institutions' undertakings, the Company is required to maintain deposits with such financial institutions as restricted cash amounts of 50% to 100% of the balances of the bank acceptance notes. As of June 30, 2022, the Company deposited total $180,634 (RMB1,209,900) as collateral to secure and issue ten bank acceptance notes of $208,879 (RMB1,399,094) to its vendors with maturity period of six months. As of November 30, 2022, $161,105 (RMB1,079,094) of the notes has been paid and the related restricted deposit was released upon payment. As of December 31, 2021, the Company deposited total $112,701 (RMB 718,200) as collateral to secure and issue eight bank acceptance notes of $114,937 (RMB 732,445) to its vendors with maturity period of six months. As of May 31, 2022 the notes were fully paid upon maturity and the restricted deposit was also released upon the payment.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Fair value of financial instruments
U.S. GAAP requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1 — inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2 — inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets in markets that are not active, inputs other than quoted prices that are observable and inputs derived from or corroborated by observable market data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3 — inputs to the valuation methodology are unobservable.

Unless otherwise disclosed, the fair value of the Company's financial instruments, including cash, accounts receivable, notes receivable, advances to vendors, prepayments and other assets, accounts payable, accrued expenses and other liabilities, advances from customers, notes payable, due to related parties and bank loans, approximates their recorded values due to their short-term maturities. The Company determined that the carrying value of the short-term bank loans approximated their fair value by comparing the stated loan interest rate to the rate charged by similar financial institutions.

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

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

Step 2: Identify the performance obligations in the contract

Step 3: Determine the transaction price

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

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

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

Revenue from system integration projects

The Company's revenues from system integration projects are normally under fixed-price contracts that may last from six months to three years. These contracts require the Company to perform customized services of project planning, system coding, installation of hardware and equipment, and configuration based on the customers' specific needs which requires significant customization. Upon delivery of the services and equipment, customer acceptance is generally required. In the same contract, the Company is required to provide a warranty period for one

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
to two years ("warranty period") after the customized project is delivered with a 3% – 10% holdback of the total contract price ("contract holdback") which is to be paid after the end of warranty period. The Company determined the warranty clause included in the contractual term is directly related to the quality of the Company's integration projects and there are no specific tasks to be performed during the warranty period, and therefore, consider it an assurance-type warranty. The warranty is not considered a separate performance obligation and no revenue is associated with these services under ASC 606. Because of the nature of the projects, and the contract owners perform inspection during the project and prior to acceptance, the Company has not experienced material warranty costs and, therefore, does not believe an accrual for these costs is necessary.

Revenue is recognized over the contract term using an input method under which the percentage of revenue to be recognized for a given project is measured by the estimates of the extent of progress towards project completion. Such contracts provide that the customer accept completion of progress to date and compensate the Company for services rendered, which may be measured in terms of costs incurred, units installed, or some other measure of progress. Application of the input method requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, and all costs associated with operation of equipment. The contract holdback is recognized as revenue after the warranty period has expired.

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

Revenue from product sales

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

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

Revenue from engineering consulting services

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

#### Contract balances
Accounts receivable represent amounts invoiced and revenues recognized prior to invoicing when the Company has satisfied the Company's performance obligation and has the unconditional rights to payment. Unearned revenues consist of payments received from customers related to unsatisfied performance obligations at the end of the period, and included in advance from customers in the Company's consolidated balance sheets with the balance of $182,416 and $61,168 as of June 30, 2022 and December 31, 2021, respectively. All unsatisfied

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
performance obligation will be performed within the next twelve months and no significant financing component is involved. There is no significant financing component in the Company's revenue arrangement because the Company's expected length of time between the payment and when the Company transfers the promised services is less than 12 months. For the portion of security deposit with more than 12 months is measured at present value at the reporting date by its primary borrowing rate. The impact of discounted interest expenses is not material for the June 30, 2022 and December 31, 2021.

#### Disaggregation of revenues
For the six months June 30, 2022 and 2021, the disaggregation of revenues by major revenue stream is as follows:

---

| | | |
|:---|:---|:---|
|  | **For the six months <br>June 30,** | **For the six months <br>June 30,** |
|  | **2022** | **2021** |
|  | **(Unaudited)** | **(Unaudited)** |
|  System integration projects | $6152326 | $3873564 |
|  Product sales | 145622 | 29590 |
|  Engineering consulting services | 20187 | 61255 |
|  Total | $6318135 | $3964409 |

---

#### Research and development costs
Research and development activities are directed toward the development of cleaning control system, ultrapure water control system, gas detection system, and temperature automatic control system used in the semiconductor manufacturing process. These costs, which primarily include salaries, contract services and supplies, are expensed as incurred.

#### Operating leases
A lease for which substantially all the benefits and risks incidental to ownership remain with the lessor is classified by the lessee as an operating lease. All leases of the Company are currently classified as operating leases.

#### Value added tax ("VAT")
Revenue represents the invoiced value of goods and services, net of VAT. The VAT is based on gross sales price and VAT rates range from 6% to 13%, depending on the type of products sold or service provided. Entities that are VAT general taxpayers are allowed to offset qualified input VAT paid to suppliers against their output VAT liabilities. Net VAT balance between input VAT and output VAT is recorded in taxes payable. All of the VAT returns filed by the Company's subsidiaries in PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Government grants
Government grants are recognized as income in other income, net or as a reduction of specific costs and expenses for which the grants are intended to compensate. Such amounts are recognized in the consolidated statements of income and comprehensive income upon receipt and all conditions attached to the grants are fulfilled. For the six months ended June 30, 2022 and 2021, the Company received $73,890 and $104,539 of government grants for various research programs. The benefit of these government grants on net income per share (basic and diluted) was $0.01 and $0.02 for the six months ended June 30, 2022 and 2021, respectively.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

#### Income taxes
The Company accounts for income taxes in accordance with the laws of the relevant tax authorities. Deferred income taxes are recognized when temporary differences exist between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred for the six months ended June 30, 2022 and 2021. All of the tax returns of the Company's subsidiaries in the PRC remain subject to examination by the tax authorities for five years from the date of filing.

#### Earnings per Share
The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings per Share". ASC 260 requires companies to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average ordinary shares outstanding for the period. Diluted EPS presents the dilutive effect on a per-share basis of the potential ordinary shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential ordinary shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS. For the six months ended June 30, 2022 and 2021, there were no dilutive shares. For the six months ended June 30, 2022 and 2021, earnings per share amounted to $0.20 and $0.11, respectively.

#### Foreign currency translation
The functional currencies of the Company are the local currency of the country in which the subsidiaries operate. The Company's consolidated financial statements are reported using U.S. Dollars. The results of operations and the consolidated statements of cash flows denominated in foreign currencies are translated at the average rates of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the applicable rates of exchange in effect on that date. The equity denominated in the functional currencies is translated at the historical rates of exchange at the time of capital contributions. Because cash flows are translated based on the average translation rates, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component in accumulated other comprehensive income (loss) included in consolidated statements of changes in equity. Gains and losses from foreign currency transactions are included in the consolidated statement of income and comprehensive income.

Since the Company operates primarily in the PRC, the Company's functional currency is the Chinese Yuan ("RMB"). The Company's consolidated financial statements have been translated into the reporting currency of U.S. Dollars ("US$"). The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into US$ at the rates used in the translation.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** | **June 30, <br>2021** |
|  Balance sheet items, except for equity accounts | US$1=RMB 6.6981 | US$1=RMB 6.3726 | US$1=RMB 6.4566 |
|  Items in the statements of income and <br>cash flows | US$1=RMB 6.4791 | US$1=RMB 6.4508 | US$1=RMB 6.4702 |

---

#### Comprehensive income (loss)
Comprehensive income (loss) consists of two components, net income and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under U.S. GAAP are recorded as an element of shareholders' equity but are excluded from net income. Other comprehensive income (loss) consists of foreign currency translation adjustments resulting from the Company not using US$ as its functional currency.

#### Risks and uncertainties
Beginning in late 2019, an outbreak of a novel strain of coronavirus (COVID-19) first emerged in China and has spread globally. In March 2020, the World Health Organization ("WHO") declared the COVID-19 as a pandemic. Governments in affected countries are imposing travel bans, quarantines and other emergency public health measures, which have caused material disruption to businesses globally resulting in an economic slowdown. For the six months ended June 30, 2022 and 2021, the pandemic did not have significant impact on the Company's operation. The Company's revenues increased approximately 59% from approximately $4.0 million for the six months ended June 30, 2021 to approximately $6.3 million for the six months ended June 30, 2022. However, there is still significant uncertainty regarding the possibility of a new wave of infections caused by a new variant, the breadth and duration of business disruptions due to the new waves could continue to have material impact to the Company's operations.

#### Segment reporting
In accordance with ASC Topic 280, Segment Reporting, the Company's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer. The Company's CODM reviews the consolidated financial results when making decisions about allocating resources and assessing the performance of the Company as a whole and hence, the Company has only one reportable segment. The Company operates and manages its business in PRC China as a single segment. As the Company's long-lived assets are substantially all located in the PRC and substantially all the Company's revenues are derived from within the PRC, no geographical segments are presented.

#### Concentrations of risks
(a) Concentration of credit risk

Assets that potentially subject the Company to a significant concentration of credit risk primarily consist of cash, accounts receivable and other current assets. The maximum exposure of such assets to credit risk is their carrying amounts as at the balance sheet dates. As of June 30, 2022 and December 31, 2021, the aggregate amount of cash of $1,108,685 and $69,267 respectively, was held at major financial institutions in PRC. Cash balances in bank accounts in PRC are insured by the People's Bank of China Financial Stability Department ("FSD") where there is a RMB 500,000 (approximately $75,000) deposit insurance limit for a legal entity's aggregated balance at each bank. As a result, the amounts that was not covered by FSD were approximately $861,000 and $Nil as of June 30, 2022 and December 31, 2021, respectively. To limit the exposure to credit risk relating to deposits, the Company primarily places cash deposits with large financial institutions in the PRC. The Company conducts credit

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
evaluations of its customers and suppliers, and generally does not require collateral or other security from them. The Company establishes an accounting policy to provide for allowance for doubtful accounts based on the individual customer's and supplier's financial condition, credit history, and the current economic conditions.

(b) Significant customers

For the six months ended June 30, 2022, three customers accounted for 30.4%, 13.7% and 12.5% of total revenues, respectively. For the six months ended June 30, 2021, three customers accounted for 36.0%, 20.5% and 15.7% of total revenues, respectively. As of June 30, 2022, five customers accounted for 17.6%, 17.2%, 12.8%, 11.6% and 11.2% of total accounts receivable, respectively. As of December 31, 2021, five customers accounted for 20.6%, 17.7%, 16.8%, 13.2% and 11.6% of total accounts receivable, respectively.

(c) Significant suppliers

For the six months ended June 30, 2022, two suppliers accounted for 23.8% and 11.2% of total purchases, respectively. For the six months ended June 30, 2021, two suppliers accounted for approximately 12.9% and 10.6% of total purchases, respectively. As of June 30, 2022, four suppliers accounted for approximately 20.6%, 19.5%, 11.2% and 10.9% of total accounts payable, respectively. As of December 31, 2021, two suppliers accounted for approximately 21.2% and 21.1% of total accounts payable, respectively.

(d) Foreign currency risk

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

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

#### Recent accounting pronouncements
The Company considers the applicability and impact of all accounting standards updates ("ASUs"). Management periodically reviews new accounting standards that are issued.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses," "Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments," and "ASU No. 2019-05, Financial Instruments — Credit Losses (Topic 326): Targeted Transition

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
Relief," which provided additional implementation guidance on the previously issued ASU. The ASU is effective for fiscal years beginning after December 15, 2020. The ASU requires a modified retrospective adoption method. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) — Simplifying the Accounting for Income Taxes. ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020 and interim periods within those fiscal years. The adoption of this guidance did not have a material impact on the Company's consolidated financial statements.

In October 2021, the FASB issued ASU No. 2021-08, "'Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers" ("ASU 2021-08"). This ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The amendments are effective for the Company beginning after December 15, 2023, and are applied prospectively to business combinations that occur after the effective date. The Company does not expect the adoption of ASU 2021-04 to have a material effect on the consolidated financial statements.

The Company does not believe other recently issued but not yet effective accounting standards, if currently adopted, would have a material effect on the Company's consolidated balance sheets, statements of income and comprehensive income and statements of cash flows.

#### NOTE 3 — ACCOUNTS RECEIVABLE, NET

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** |
|  | (Unaudited) | |
|  Accounts receivable from third-party customers | $6002103 | $5597120 |
|  Less: allowance for doubtful accounts | (252303) | (419509) |
|  Account receivable, net | $5749800 | $5177611 |

---

Allowance for doubtful accounts movement is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** | **December 31, 2021** |
|  | (Unaudited) | | |
|  Beginning balance | $419509 | $411427 |  |
|  Reduction | (151782) | (1737 |)) |
|  Foreign currency translation adjustments | (15424) | 9819 |  |
|  Ending balance | $252303 | $419509 |  |

---

Approximately $4.0 million or 67% of the account receivable balance as of June 30, 2022 has been collected as of November 30, 2022.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 4 — INVENTORIES
Inventories consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Materials | $1085587 | $540652 |

---

The Company records the value of its inventory using the lower of cost or net realizable value, cost is calculated on the weighted average method. No inventory reserve was recorded as of June 30, 2022 and December 31, 2021.

#### NOTE 5 — ADVANCE TO VENDORS
Advance to vendors consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Prepayments for technical service and materials | $545593 | $95778 |

---

#### NOTE 6 — PREPAYMENTS AND OTHER ASSETS, NET
Prepayments and other assets consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Prepaid rents | $26544 | $28111 |
|  Prepaid expense | 54538 | 59719 |
|  Prepaid tax | 21573 |  |
|  Less: allowance for uncollectible balances | (26924) | (28299) |
|  Prepayments and other current assets; net | $75741 | $59531 |

---

#### NOTE 7 — PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Building | $348246 | $366034 |
|  Office equipment | 76934 | 69933 |
|  Transportation equipment | 272300 | 286208 |
|  Subtotal | 697480 | 722175 |
|  Less: accumulated depreciation | (206392) | (169876) |
|  Property and equipment, net | $491088 | $552299 |

---

Depreciation expense for the six months ended June 30, 2022 and 2021 amounted to $46,285 and $42,680, respectively.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 8 — INTANGIBLE ASSETS, NET
The Company states intangible assets at cost less accumulated amortization. Amortization expenses were $24,077 and $27 for the six months ended June 30, 2022 and 2021, respectively.

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  License | $232901 | $244798 |
|  Computer software | 766 | 805 |
|  Less: accumulated amortization | (38806) | (16309) |
|  Intangible assets, net | $194861 | $229294 |

---

The estimated future amortization expenses are as follows:

---

| | |
|:---|:---|
|  **Twelve month periods ending June 30,** | **Estimated <br>Amortization <br>Expense** |
|  | (Unaudited) |
| 2023 | $48155 |
| 2024 | 48155 |
| 2025 | 48155 |
| 2026 | 50396 |
|  Total | $194861 |

---

#### NOTE 9 — LEASES
The Company has several operating leases for manufacturing facilities and offices. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Effective January 1, 2020, the Company adopted the new lease accounting standard, FASB ASC 842, Leases, using a modified retrospective transition method which allowed the Company not to recast comparative periods presented in its consolidated financial statements. In addition, the Company elected the package of practical expedients, which allowed the Company to not reassess whether any existing contracts contain a lease, to not reassess historical lease classification as operating or finance leases, and to not reassess initial direct costs. The Company has not elected the practical expedient to use hindsight to determine the lease term for its leases at transition. The Company combines the lease and non-lease components in determining the ROU assets and related lease obligation. Adoption of this standard resulted in the recording of operating lease ROU assets and corresponding operating lease liabilities as disclosed below and had no impact on accumulated retained earnings. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term.

Total lease expense amounted to $8,194 for the six months June 30, 2022, which included $1,053 interest and $7,141 amortization expenses of ROU assets. Total lease expense amounted to $927 for the six months June 30, 2021, which included $81 interest and $846 amortization expenses of ROU assets. Total cash paid for operating leases amounted to $8,194 and $927 for the six months June 30, 2022 and 2021.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 9 — LEASES (cont.)
Supplemental balance sheet information related to operating leases was as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Right-of-use assets, net | $44297 | $53820 |
|  Operating lease liabilities – current | $13839 | $14685 |
|  Operating lease liabilities – non-current | 26793 | 35283 |
|  Total operating lease liabilities | $40632 | $49968 |

---

The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2022:

---

| | |
|:---|:---|
|  Remaining lease term and discount rate: |  |
|  Weighted average remaining lease term (years) | 3.5 |
|  Weighted average discount rate | 4.50% |

---

The following is a schedule of maturities of lease liabilities as of June 30, 2022

---

| | |
|:---|:---|
|  Twelve months ending June 30, |  |
| 2023 | $15180 |
| 2024 | 14284 |
| 2025 | 14060 |
|  Total future minimum lease payments | 43524 |
|  Less: imputed interest | 2892 |
|  Total | $40632 |

---

#### NOTE 10 — ACCRUED EXPENSE AND OTHER LIABILITIES
Accrued expenses and other liabilities consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Payroll payable | $365653 | $272018 |
|  Rent payable | 11346 | 61141 |
|  Equipment payable | 72236 | 90221 |
|  Other payables | 42443 | 12096 |
|  Total | $491688 | $435476 |

---

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 11 — SHORT TERM LOANS
Short-term borrowings consisted of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  **Bank of Jiangsu** |  |  |
|  Interest rate of 4.4%, from April 19, 2021 to April 18, 2022 | $— | $313844 |
|  Interest rate of 4.4%, from March 22, 2021 to March 21, 2022 |  | 470765 |
|  Interest rate of 4.4%, from March 15, 2022 to March 14, 2023 | 447888 |  |
|  Interest rate of 4.4%, from April 15, 2022 to April 11, 2023 | 298593 |  |
|  **Bank of Ningbo** |  |  |
|  Interest rate of 4.35%, from April 01, 2022 to March 28, 2023 | 447888 |  |
|  **Bank of China** |  |  |
|  Interest rate of 3.08333%, from June 23, 2022 to June 23, 2023 | 447888 |  |
|  **China Construction Bank** |  |  |
|  Interest rate of 4.05%, from December 10, 2021 to November 3, 2022 |  | 188306 |
|  Interest rate of 4.05%, from December 21, 2021 to November 3, 2022 |  | 78461 |
|  **Total** | $1642257 | $1051376 |

---

On April 19, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $313,844 (RMB 2,000,000) for one year with a maturity date on April 18, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On March 22, 2021, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $470,765 (RMB 3,000,000) for one year with a maturity date on March 21, 2022 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayment. The loan was fully repaid upon maturity.

On December 10, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $188,306 (RMB 1,200,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

On December 21, 2021, the Company entered into a loan agreement with the China Construction Bank to obtain a loan of $78,461 (RMB 500,000) for one year with a maturity date on November 3, 2022 at a fixed annual interest rate of 4.05%. Ms. Yinglai Wang, the shareholder of the Company, personally guaranteed the repayment of the loan. The loan was fully repaid upon maturity.

On March 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on March 14, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $298,593 (RMB 2,000,000) with a maturity date on April 11, 2023 at a fixed annual interest rate of 4.4%. Ms. Yinglai Wang, the shareholder of the Company, provided her real estate property to guarantee the loan repayments. The loan was fully repaid on July 01, 2022.

On April 01, 2022, the Company entered into a loan agreement with the Bank of Ningbo to obtain a loan of $447,888 (RMB 3,000,000) with a maturity date on March 28, 2023 at a fixed annual interest rate of 4.35%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 11 — SHORT TERM LOANS (cont.)
On June 23, 2022, the Company entered into a loan agreement with the Bank of China to obtain a loan of $447,888 (RMB 3,000,000) for one year with a maturity date on June 23, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

For the six months ended June 30, 2022 and 2021, the Company recorded bank loan interest expenses of $22,411 and $20,844, respectively.

#### NOTE 12 — RELATED PARTIES BALANCES AND TRANSACTIONS
Related party balances as of June 30, 2022 and December 31, 2021 and transactions for the six months ended June 30, 2022 and 2021 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Related party relationships:

---

| | |
|:---|:---|
|  **Name of Related Party** | **Relationship to the Company** |
|  Mr. Yujun Xiao | CEO and Chairman of the Board of Directors of the Company |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | Mr. Yujun Xiao served as a supervisor and holds 40% of the shares |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Due from related party:

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30<br>2022** | **As of December 31,<br>2021** |
|  | **As of <br>June 30<br>2022** | **As of December 31,<br>2021** |
|  | (Unaudited) | |
|  Shanghai Tongcheng Enterprise Management Co., Ltd. | $1493 | $1569 |

---

The balance was fully repaid on September 5, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Due to related party:

---

| | | |
|:---|:---|:---|
|  | **As of <br>June 30, <br>2022** | **As of <br>December 31, <br>2021** |
|  | (Unaudited) | |
|  Mr. Yujun Xiao | $514459 | $637007 |

---

Mr. Yujun Xiao made advances to the Company as working capital to support the Company's operations during the year ended December 31, 2021. The Company repaid Mr. Yujun Xiao $94,688 during the six months ended June 30, 2022. The balance is unsecured, interest-free and due upon demand.

#### NOTE 13 — TAXES

#### Corporate Income Taxes ("CIT")
<u><u>Cayman Islands</u></u>

The Company is incorporated in the Cayman Islands and is not subject to tax on income or capital gains under the laws of the Cayman Islands. Additionally, the Cayman Islands does not impose a withholding tax on payments of dividends to shareholders.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 13 — TAXES (cont.)
<u><u>Hong Kong</u></u>

Under Hong Kong tax laws, HUHU HK is subject to a statutory income tax rate at 16.5% if revenue is generated in Hong Kong and they are exempted from income tax on their foreign-derived income. There are no withholding taxes in Hong Kong on remittance of dividends.

<u><u>PRC</u></u>

The Company derives all its income in PRC. Under the Enterprise Income Tax ("EIT") Law of PRC, domestic enterprises and Foreign Investment Enterprises (the "FIE") are usually subject to a unified 25% enterprise income tax rate.

The components of the income tax provision are as follows:

---

| | | |
|:---|:---|:---|
|  | **For the <br>six months <br>June 30, <br>2022** | **For the <br>six months <br>June 30, <br>2021** |
|  | (Unaudited) | (Unaudited) |
|  Current income tax expense | $137839 | $18526 |
|  Deferred income tax expense | 37946 | 69691 |
|  Total provision for income taxes | $175785 | $88217 |

---

The following table reconciles the PRC statutory rate to the Company's effective tax rate:

---

| | | |
|:---|:---|:---|
|  | **For the <br>six months <br>June 30, <br>2022** | **For the <br>six months <br>June 30, <br>2021** |
|  | (Unaudited) | (Unaudited) |
|  PRC statutory tax rate | 25.0% | 25.0% |
|  Research and development ("R&D") tax credit | (10.1)% | (10.1)% |
|  Permanent differences | (0.1)% | (1.4)% |
|  Effective tax rate | 14.8% | 13.5% |

---

The following table summarizes deferred tax assets and liabilities resulting from differences between financial accounting basis and tax basis of assets and liabilities:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, 2021** |
|  | (Unaudited) | |
|  **Deferred tax assets:** |  |  |
|  Allowance for doubtful accounts | $69807 | $111952 |
|  Total deferred tax assets | $69807 | $111952 |

---

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the cumulative earnings and projected future taxable income in making this assessment. Recovery of substantially all of the Company's deferred tax assets is dependent upon the generation of future income, exclusive of reversing taxable temporary differences. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are recoverable, management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets as at June 30, 2022 and December 31, 2021.

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**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### Taxes payable
Taxes payable consist of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, <br>2022** | **December 31, <br>2021** |
|  | (Unaudited) | |
|  Income tax payable | $141388 | $36790 |
|  Value-added tax payable |  | 39357 |
|  Other taxes payable | 5589 | 12797 |
|  Total taxes payable | $146977 | $88944 |

---

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. Penalties and interest incurred related to underpayment of income tax are classified as income tax expense in the period incurred. No significant penalties or interest relating to income taxes have been incurred during the six months June 30, 2022 and 2021.

#### NOTE 14 — SHAREHOLDERS' EQUITY

#### Ordinary shares
The Company was established by the founding shareholders under the laws of the Cayman Islands on July 8, 2021. The Company is authorized to issue 5,000,000,000 Ordinary Shares with a par value of $0.00001 each. As of June 30, 2022, 5,000,000 Ordinary Shares are issued and outstanding.

#### Capital contributions
HUHU China was incorporated under the laws of the People's Republic of China with a total registered capital of approximately $3.27 million (RMB 21,575,000). As of December 31, 2019, the Company received total capital contributions of approximately $1.16 million (RMB 8,000,000). During the years ended December 31, 2020 and 2021, the Company received capital contributions of $113,636 (RMB 790,000) and $461,041 (RMB 3,000,000), respectively. As of the date of this report, pursuant to the articles of incorporation of HUHU China, the remaining capital investment of approximately $1.54 million (RMB 9,785,000) shall be contributed in full before December 31, 2049.

#### Statutory reserve and restricted net assets
As stipulated by relevant PRC laws and regulations, the Company's subsidiaries and affiliated entities in the PRC must take appropriations from after-tax profits to non-distributive funds. These reserves include the general reserve and the development reserve.

The general reserve requires an annual appropriation of 10% of after-tax profits each year-end until the balance reaches 50% of a PRC company's registered capital. The development reserve is set aside at the Company's discretion. These reserves can only be used for general enterprise expansion and are not distributable as cash dividends. The general reserve amounted to $201,075 and $99,850 as of June 30, 2022 and December 31, 2021, respectively.

Because the Company's operating subsidiaries in the PRC can only pay distributions out of distributable profits reported in accordance with PRC accounting standards, the Company's operating subsidiaries in the PRC are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in

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

**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 14 — SHAREHOLDERS' EQUITY (cont.)
capital and statutory reserves of the Company's entities in the PRC. The aggregate amount of paid-in capital and statutory reserves, which represented the amount of net assets of the Company's operating subsidiaries in the PRC not available for distribution, was $1,939,254 and $1,838,029 as of June 30, 2022 and December 31, 2021.

#### NOTE 15 — COMMITMENTS AND CONTINGENCIES
<u>**<u>Contingencies</u>**</u>

From time to time, the Company is subject to certain legal proceedings, claims and disputes that arise in the ordinary course of business. Although the outcomes of these legal proceedings cannot be predicted, the Company does not believe these actions, in the aggregate, will have a material adverse impact on its financial position, results of operations or liquidity. As of June 30, 2022, the Company has no outstanding litigation.

#### NOTE 16 — SUBSEQUENT EVENTS
The Company has evaluated subsequent events through January 6, 2023, the date these consolidated financial statements were available for issuance. The Company evaluated subsequent events through the date these consolidated financial statements were issued, and concluded that there are no additional reportable subsequent events except as disclosed below.

#### Bank loans
On July 18, 2022, the Company entered into a loan agreement with the Bank of Nanjing to obtain a loan of $463,027 (RMB 3,000,000) for one year with a maturity date on July 17, 2023 at a fixed annual interest rate of 3.70%. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On July 19, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $308,685 (RMB 2,000,000) for one year with a maturity date on July 18, 2023 at a fixed monthly interest rate of 3.08333‰. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On October 27, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $617,370 (RMB 4,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On November 09, 2022, the Company entered into a loan agreement with the China Bank to obtain a loan of $771,712 (RMB 5,000,000) with a maturity date on August 13, 2023 at a fixed monthly interest rate of 2.8333‰. Mr. Yujun Xiao, the CEO and the Chairman of the Company, and Ms. Yinglai Wang, the shareholder of the Company, guaranteed the repayment of the loan.

On November 09, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $154,342 (RMB 1,000,000) with a maturity date on November 14, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 14, 2022.

On November 15, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $27,782 (RMB 180,000) with a maturity date on December 15, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

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

**HUHUTECH INTERNATIONAL GROUP INC. AND SUBSIDIARIES<br>NOTES TO UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

#### NOTE 16 — SUBSEQUENT EVENTS (cont.)
On November 17, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $77,171 (RMB 500,000) with a maturity date on December 17, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

On November 24, 2022, the Company entered into a loan agreement with the Bank of Jiangsu to obtain a loan of $33,955 (RMB 220,000) with a maturity date on December 24, 2022 at a fixed annual interest rate of 5.3505%. Ms. Yinglai Wang, the shareholder of the Company, is a co-borrower of the loan. The loan was fully repaid on November 28, 2022.

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

#### — Ordinary Shares

#### HUHUTECH International Group Inc.

#### PROSPECTUS

#### , 202 3
**Until and including , 2023 (the 25**<sup>th</sup>**day after the date of this prospectus), all dealers that buy, sell or trade our Ordinary Shares, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

------

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#### PART II<br>INFORMATION NOT REQUIRED IN PROSPECTUS

#### ITEM 6. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Cayman Islands law does not limit the extent to which a company's memorandum and articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Cayman Islands courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime. Our amended memorandum and articles of association provides that every director, alternate director or officer shall be indemnified out of the assets of the Company against any liability incurred by him as a result of any act or failure to act in carrying out his functions other than such liability (if any) that he may incur by his own actual fraud or willful default.

To the extent permitted by law, we may make a payment, or agree to make a payment, whether by way of advance, loan or otherwise, for any legal costs incurred by an existing or former secretary or any of our officers in respect of any matter identified in above on condition that the secretary or officer must repay the amount paid by us to the extent that it is ultimately found not liable to indemnify the secretary or that officer for those legal costs.

The Underwriting Agreement, the form of which has been filed as Exhibit 1.1 to this Registration Statement, will also provide for indemnification of us and our officers and directors.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### ITEM 7. RECENT SALES OF UNREGISTERED SECURITIES.
During the past three years, we have issued the following securities. We believe that each of the following issuances was exempt from registration under the Securities Act in reliance on Rule 901 of Regulation S under the Securities Act regarding sales by an issuer in offshore transactions, or Section 4(a)(2) under the Securities Act regarding transactions not involving a public offering. No underwriters were involved in these issuances of securities.

On July 8, 2021, we issued 5,000,000 Ordinary Shares in connection with the incorporation of the Company pursuant to the exemptions from registration under Rule 901 of Regulation S and Section 4(a)(2) under the Securities Act.

The details of the above-mentioned issuance are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  **Shareholders** | **Date of Issuance** | **Number of <br>Securities** | **Consideration** |
|  Harneys Fiduciary (Cayman) Limited\* | July 8, 2021 | 1 | US$0.00001 |
|  Billion Wang Holdings Limited | July 8, 2021 | 2061999 | US$20.6 |
|  Army Xiao Holdings Limited | July 8, 2021 | 2109500 | US$21.1 |
|  Fountain Qian Holdings Limited | July 8, 2021 | 210000 | US$2.1 |
|  Lucky Wei Holdings Limited | July 8, 2021 | 155000 | US$1.6 |
|  Increase Willpower Limited Partnership | July 8, 2021 | 463500 | US$4.6 |

---

____________

\* On July 8, 2021, Harneys Fiduciary transferred 1 share to Billion Wang Holdings Limited. pursuant to Section 4(a)(1) of the Securities Act, for transactions by persons other than an issuer, underwriter, or dealer.

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

#### ITEM 8. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Exhibits**

See Exhibit Index beginning on page II-4 of this registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Financial Statement Schedules**

Schedules have been omitted because the information required to be set forth therein is not applicable or is shown in the Consolidated Financial Statements or the Notes thereto.

#### ITEM 9. UNDERTAKINGS.
The undersigned registrant hereby undertakes to provide to the Underwriter at the closing specified in the underwriting agreement, certificates in such denominations and registered in such names as required by the Underwriter to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 6, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Securities and Exchange Commission (the "Commission") pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

provided, however, that: Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant under Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) That for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) That for the purpose of determining liability under the Securities Act to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) That for the purpose of determining any liability of the registrant under the Securities Act to any purchaser in the initial distribution of the securities, the undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

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

#### HUHUTECH International Group Inc.

#### Exhibit Index

---

| | |
|:---|:---|
|  **Exhibit No.** | **Description** |
|  1.1\*\* | Form of Underwriting Agreement |
|  3.1\* | [Memorandum and Articles of Association](drs2022a1ex3-1_huhutech.htm) |
|  4.1\*\* | Specimen Certificate for ordinary share |
|  4.2\*\* | Form of Underwriter's Warrant |
|  5.1\*\* | Opinion of regarding the validity of the Ordinary Shares being registered |
|  5.2\*\* | Opinion of Ortoli Rosenstadt LLP, U.S. counsel to HUHUTECH International Group Inc., as to the enforceability of the Underwriters Warrants |
|  8.1\*\* | Opinion of Jiangsu Junjin Law Firm regarding certain PRC tax matters (included in Exhibit 99.1) |
|  10.1\*\*\* | Form of Employment Agreement by and between Executive Officers and the Company |
|  10.2\*\* | Form of Lock-Up Agreement |
|  10.3\* | [Lease Agreement between the Company and Yue Li Leasing Service (Nanjing) Co., Ltd.](drs2022a1ex10-3_huhutech.htm) |
|  10.4\* | [Lease Agreement between the Company and Chongda He.](drs2022a1ex10-4_huhutech.htm) |
|  10.5\* | [Flexible Term Work Capital Loan Agreement between the Company and Bank of China dated June 22, 2022](drs2022a1ex10-5_huhutech.htm) |
|  10.6\* | [Work Capital Loan Agreement between the Company and Bank of Nanjiing (Wuxi branch) dated July 18, 2022](drs2022a1ex10-6_huhutech.htm) |
|  10.7\* | [Work Capital Loan Agreement between the Company and Bank of Ningbo dated March 28, 2022](drs2022a1ex10-7_huhutech.htm) |
|  10.8\* | [Flexible Term Work Capital Loan Agreement between the Company and Bank of China dated July 19, 2022](drs2022a1ex10-8_huhutech.htm) |
|  10.9\* | [Agreement between Li Yi System Engineering (Shanghai) Limited and the Company dated September 15, 2020](drs2022a1ex10-9_huhutech.htm) |
|  10.10\* | [Sales Agreement between AUO and the Company dated December 8, 2020.](drs2022a1ex10-10_huhutech.htm) |
|  10.15\*\*\* | English Translation of Employment Agreement between the Chief Executive Officer, Yujun Xiao, and the Company |
|  10.16\*\*\* | English Translation of Employment Agreement between the Chief Financial Officer, Huiping Zhang, and the Company |
|  10.17\*\*\* | English Translation of Employment Agreement between the Chief Technology Officer, Xiaoming Chen, and the Company |
|  14.1\*\* | Code of Business Conduct and Ethics of the Registrant |
|  21.1\*\*\* | List of Subsidiaries |
|  23.1\* | [Consent of Wei, Wei & Co., LLP](drs2022a1ex23-1_huhutech.htm) |
|  23.2\*\* | Consent of [Cayman counsel] (included in Exhibit 5.1) |
|  23.3\*\* | Consent of Jiangsu Junjin Law Firm (included in Exhibits 8.1 and 99.1) |
|  99.1\*\* | Opinion of Jiangsu Junjin Law Firm, People's Republic of China counsel to the Registrant, regarding certain PRC law matters |
|  99.2\*\* | Audit Committee Charter |
|  99.3\*\* | Compensation Committee Charter |
|  99.4\*\* | Nomination Committee Charter |
|  107\*\* | Filing Fee Table |

---

____________

\* Filed herewith.

\*\* To be filed by amendments

\*\*\* Previously filed

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

#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Jiangsu, China, on January 6, 2023.

---

| | | |
|:---|:---|:---|
|  **HUHUTECH International Group Inc.** | **HUHUTECH International Group Inc.** | **HUHUTECH International Group Inc.** |
|  By: | */s/ Yujun Xiao* | */s/ Yujun Xiao* |
|  | Name: | Yujun Xiao |
|  | Title: | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities and on January 6, 2023.

---

| | |
|:---|:---|
|  **Signature** | **Title** |
|  */s/ Yujun Xiao* | Chief Executive Officer and Director |
|  Name: Yujun Xiao | (Principal Executive Officer) |
|  */s/ Huiping Zhang* | Chief Financial Officer |
|  Name: Huiping Zhang | (Principal Executive Officer) |

---

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

#### SIGNATURE OF AUTHORIZED REPRESENTATIVE IN THE UNITED STATES
Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of HUHUTECH International Group Inc., has signed this registration statement or amendment thereto in New York on January 6, 2023.

---

| | | |
|:---|:---|:---|
|  **Authorized U.S. Representative** | **Authorized U.S. Representative** | **Authorized U.S. Representative** |
|  Cogency Global Inc. | Cogency Global Inc. | Cogency Global Inc. |
|  By: | */s/ Colleen A. De Vries* | */s/ Colleen A. De Vries* |
|  | Name: | Colleen A. De Vries |
|  | Title: | Senior Vice President |

---

## Exhibit 3.1

**Exhibit 3.1**

![](ex3-1_001.jpg)

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**HUHUTECH INTERNATIONAL GROUP INC.**

 

An Exempted Company Limited By Shares

**MEMORANDUM AND ARTICLES OF ASSOCIATION**

![](ex3-1_002.jpg)

*Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**MEMORANDUM OF ASSOCIATION**

**OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

An Exempted Company Limited By Shares

---

| | |
|:---|:---|
| 1 | NAME |

---

The name of the Company is HUHUTECH International Group Inc.

---

| | |
|:---|:---|
| 2 | STATUS |

---

The Company is a company limited by shares.

3 REGISTERED OFFICE

The registered office of the Company is at Harneys Fiduciary (Cayman) Limited, 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002, Cayman Islands or at such other place as the Directors may from time to time decide.

4 OBJECTS AND CAPACITY

Subject to paragraph 9 of this Memorandum, the objects for which the Company is established are unrestricted and the Company shall have full power and authority to carry out any object not prohibited by the Companies Act or any other law of the Cayman Islands. The Company is a body corporate capable of exercising all the functions of a natural person of full capacity, irrespective of any question of corporate benefit.

5 SHARE CAPITAL

The share capital of the Company is USD 50,000.00 divided into 5,000,000,000 Ordinary shares of par value USD 0.00001 each.

6 LIABILITY OF MEMBERS

The liability of each Member is limited to the amount from time to time unpaid on such Member's Shares.

1 *Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

7 CONTINUATION

The Company may exercise the powers contained in the Companies Act to transfer and be registered by way of continuation as a body corporate limited by shares under the laws of any jurisdiction outside the Cayman Islands and to be de-registered in the Cayman Islands.

8 DEFINITIONS

Capitalised terms used and not defined in this Memorandum of Association shall bear the same meaning as those given in the Articles of Association of the Company.

9 EXEMPTED COMPANY

The Company will not trade in the Cayman Islands with any person, firm or corporation except in furtherance of the business of the Company carried on outside the Cayman Islands; provided that nothing in this section shall be construed as to prevent the Company effecting and concluding contracts in the Cayman Islands, and exercising in the Cayman Islands all of its powers necessary for the carrying on of its business outside the Cayman Islands.

10 FINANCIAL YEAR

The financial year end of the Company is 31 December or such other date as the Directors may from time to time decide and annex to this Memorandum.

2 *Auth Code: C66733704172 www.verify.gov.ky*

![](ex3-1_001.jpg)

 

The undersigned subscribes its name to this Memorandum of Association to form an incorporated company with limited liability to carry out the lawful purposes set out in this Memorandum of Association and agrees to take the number of Shares set out below.

Dated: 8 July 2021

---

| | |
|:---|:---|
| **SUBSCRIBER** | **NUMBER OF SHARES TAKEN** |
| Harneys Fiduciary (Cayman) Limited<br> P.O. Box 10240<br> Grand Cayman KY1-1002<br> Cayman Islands | 1 Share |

---

---

| |
|:---|
| /s/ Bonnie Sin |
| Bonnie Sin |
| Acting as duly authorised signatory For and on behalf of |
| Harneys Fiduciary (Cayman) Limited |

---

---

| |
|:---|
| /s/ Katy Chow |
| Katy Chow |
| Witness to the above signature |

---

3 *Auth Code: C66733704172 www.verify.gov.ky*

---

| | |
|:---|:---|
| ![](ex3-1_005.jpg) | ![](ex3-1_001.jpg) |

---

 

**THE COMPANIES ACT (REVISED)**

**OF THE CAYMAN ISLANDS**

**ARTICLES OF ASSOCIATION**

**OF**

**HUHUTECH INTERNATIONAL GROUP INC.**

An Exempted Company Limited By Shares

1 DEFINITIONS AND INTERPRETATION

1.1 The Regulations contained in Table A in the First Schedule to
the Companies Act do not apply to the Company. In these Articles of Association, if not inconsistent with the context, the following
words and expressions shall have the following meanings:

***Articles*** means these Articles of Association;

***Companies Act*** means the Companies Act (Revised), as amended or re-enacted from time to time;

***Company*** means the above named company;

***Director*** means a director of the Company appointed in accordance with these Articles;

***Distribution*** means a distribution, dividend (including an interim dividend) or other payment or transfer of property of the Company on or in respect of a Share (save in respect of its redemption or repurchase);

***Electronic Transactions Act*** means the Electronic Transactions Act of the Cayman Islands;

***Member*** has the same meaning as in the Companies Act;

***Memorandum*** means the Memorandum of Association of the Company;

***Officer*** means any person appointed by the Directors to hold an office in the Company;

***Ordinary Resolution*** means a resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) passed by a majority of such Members as, being entitled to do
so, vote in person or by proxy at a general meeting of the Company; or

4 *Auth Code: H62639701064<br> www.verify.gov.ky*

 

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) approved in writing by all of the Members entitled to vote at a general meeting of the Company in one
or more instruments each signed by one or more of the Members.

***Register of Directors and Officers*** means the register of Directors and Officers maintained by the Company in accordance with these Articles;

***Register of Members*** means the register of Members referred to in these Articles;

***Registrar*** means the Registrar of Companies and includes the Deputy Registrar of Companies;

***Registered Office*** means the registered office for the time being of the Company;

***Seal*** means any seal which has been duly adopted as the common seal of the Company and includes every duplicate seal;

***Secretary*** means the person appointed to perform any or all of the duties of secretary of the Company, including any assistant secretary;

***Share*** means a share in the capital of the Company, including a fraction of a share issued or authorised to be issued by the Company;

***Special Resolution*** means a special resolution passed in accordance with Section 60 of the Companies Act, being a resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) passed by a majority of not less than two-thirds of such Members
as, being entitled to do so, vote in person or by proxy at a general meeting of the Company of which notice specifying the intention
to propose the resolution as a Special Resolution has been duly given; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) approved in writing by all of the Members entitled to vote at a general meeting of the Company in one
or more instruments each signed by one or more of the Members;

***Subscriber*** means the subscriber to the Memorandum;

***Treasury Share*** means a Share that has been repurchased, redeemed, surrendered to or otherwise acquired by the Company and not cancelled; and

***Written*** includes information generated, sent, received or stored by electronic, electrical, digital, magnetic, optical, electromagnetic, biometric or photonic means, including electronic data interchange and electronic mail in accordance with the Electronic Transactions Act and in writing shall be construed accordingly.

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1.2 In the Memorandum and these Articles, unless the context otherwise
requires a reference to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words importing the masculine gender include the feminine gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any Cayman Islands law or regulation, is a reference to such law or regulation as amended or re-enacted
from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the singular includes the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a person includes all legal persons and natural persons; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) legal persons include all forms of corporate entity and any other person having capacity to act in its

1.3 Headings are for ease of reference only and shall be disregarded
in interpreting the Memorandum and the Articles.

2 COMMENCEMENT OF BUSINESS

2.1 **Commencement**. The business of the Company may be commenced at such time as determined by the Directors.

2.2 **Commencement Costs and Expenses**. The Directors may pay, out of capital or other money of the Company, all costs and expenses
incurred in the establishment and registration of the Company.

3 REGISTERED SHARES

3.1 **Registered Shares**. The Company shall issue registered Shares only.

3.2 **No Bearer Shares**. The Company is not authorised to issue bearer Shares, convert registered Shares to bearer Shares or exchange
registered Shares for bearer Shares.

4 SHARE CERTIFICATES

4.1 **Share Certificates**. Unless and until the Directors resolve to issue share certificates, no share
certificate shall be issued, and the records of the shareholdings of each Member shall be in uncertified book entry form. If the Directors
do resolve to issue share certificates in respect of any one or more classes of Shares, then every Member holding such Shares shall be
entitled, upon written request only, to a certificate signed by a Director or Secretary, or any other person authorised by a resolution
of the Directors, or under the Seal specifying the number of Shares held by him and the signature of the Director, Secretary or authorised
person and the Seal may be facsimiles or affixed by electronic means pursuant to the Electronic Transactions Act.

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4.2 **Indemnity and Replacement**. Any Member receiving a certificate shall indemnify and hold the Company and its Directors and Officers
harmless from any loss or liability which it or they may incur by reason of any wrongful or
fraudulent use or representation made by any person by virtue of the possession thereof. If a certificate for Shares is worn out or lost
it may be renewed or, in connection with any proposed share transfer, a new certificate may be issued, on production of the worn out certificate
or on satisfactory proof of its loss together with such indemnity as may be required by the Directors.

4.3 **Joint Holders**. If several Members are registered as joint holders of any Shares, any one of such
Members may give an effectual receipt for any share certificate.

5 ISSUE OF SHARES

5.1 **Issue**. Subject to the provisions, if any, of the Memorandum
and directions given by any Ordinary Resolution and the rights attaching to any class of existing Shares, the Directors may issue, allot,
grant options over or otherwise dispose of Shares (including any fractions of Shares) and other securities of the Company at such times,
to such persons, for such consideration and on such terms as the Directors may determine.

5.2 **Subscriber Share**. Notwithstanding the preceding Article,
the Subscriber shall have the power to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue one Share to itself;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfer that Share by an instrument of transfer to any person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** update the Register of Members in respect of the issue and transfer of that Share **.** 

5.3 **Preferred Shares**. Shares and other securities of the Company may be issued by the Directors with
such preferred, deferred or other special rights, restrictions or privileges whether in regard to voting, Distributions, a return of capital,
or otherwise and in such classes and series, if any, as the Directors may determine.

5.4 **Ordinary Shares**. Where the Directors issue a Share having no preferred, deferred, redemption or
other special rights, it shall be issued as an ordinary Share and entitle the holder, subject to any other Share having any preferred,
deferred, redemption or other special rights, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) receive notice of, attend and vote at any general meeting of the Company and on any Ordinary Resolution or Special Resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an equal share in any dividend or other Distribution paid by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an equal share in the distribution of the surplus assets of the Company.

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5.5 **Consideration for Share Issue**. A Share may be issued for consideration in any form, including money,
a promissory note or other written obligation to contribute money or property, real property, personal property (including goodwill and know-how),
services rendered or a contract for future services.

 

5.6 **Register of Members**. The Register of Members kept by the Company shall contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the names and addresses of each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a statement of the Shares held by each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the distinguishing numbers of the Shares of each Member (if any);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the amount paid, or agreed to be considered as paid, on the Shares of each Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the date on which the name of each person was entered on the register as a Member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the date on which any person ceased to be a Member.

5.7 **Commission**. The Company is authorised to pay a commission to any person in consideration of his
subscribing or agreeing to subscribe (whether absolutely or conditionally) for any Shares or procuring or agreeing to procure subscriptions
(whether absolute or conditional) for any Shares.

6 VARIATION OF RIGHTS

6.1 **Class Variation**. If, at any time, the share capital of the Company is divided into different classes
of Shares, the rights attached to any class (unless otherwise provided by the terms of issue of the Shares of that class) may be varied
with the consent in writing of the holders of two-thirds of the issued Shares of that class or with the sanction of a Special Resolution
passed at a separate general meeting of the holders of the Shares of the class. To every such separate general meeting the provisions
of these Articles relating to general meetings shall, mutatis mutandis, apply, but so that the necessary quorum shall be one or more persons
holding or representing by proxy one-third of the issued Shares of the class and that any holder of Shares of the class present in person
or by proxy may demand a poll.

6.2 **No Variation on Further Issue**. The rights conferred upon the holders of the Shares of any class
shall not, unless otherwise expressly provided by the terms of issue of the Shares of that class, be deemed to be varied by the creation
or issue of further Shares ranking *pari passu* therewith.

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7 REDEMPTION, PURCHASE AND SURRENDER OF SHARES AND TREASURY SHARES

7.1 **Redemption, Purchase and Surrender**. Subject to the provisions of the Companies Act and to the rights
attaching to any class of Share, the Company may:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) issue Shares on terms that they are to be redeemed or are liable to be redeemed at the option of the Company
or the Member on such terms and in such manner as the Directors may, before the issue of such Shares, determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) purchase its own Shares (including any redeemable Shares) on such terms and in such manner as the Directors
determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make a payment in respect of the redemption or purchase of its own Shares in any manner permitted by the
Companies Act including out of capital; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) permit the surrender of fully paid Shares for no consideration.

7.2 **Effect of Redemption, Purchase and Surrender**. Shares that the Company redeems, purchases, accepts
by way of surrender or otherwise acquires pursuant to Article 7.1 may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) be cancelled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be held as Treasury Shares on such terms and in such manner as the Directors determine prior to such acquisition.

7.3 **Treasury Shares**. All rights and obligations attaching to a Treasury Share are suspended and shall
not be exercised by the Company while it holds the Share as a Treasury Share, other than as set out in this Article. The Company may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cancel the Treasury Shares on such terms and in such a manner as the Directors may determine; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) transfer the Treasury Shares in accordance with Article 12.

7.4 **No Participation**. Any Share in respect of which notice of redemption has been given shall not be
entitled to participate in the profits of the Company in respect of the period after the date specified as the date of redemption in the
notice of redemption.

7.5 **No other Redemption**. The redemption, purchase or surrender of any Share shall not be deemed to
give rise to the redemption, purchase or surrender of any other Share.

7.6 **Redemption in Kind**. The Directors may, when making payments in respect of redemption or purchase
of Shares, if authorised by the terms of issue of the Shares being redeemed or purchased or with the agreement of the holder of such Shares,
make such payments either in cash or in kind.

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| 8 | LIEN |

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8.1 **All Monies Payable**. The Company shall have a first and paramount lien on every Share, whether or
not it is a fully paid Share, for all moneys, whether presently payable or not, called or payable at a fixed time in respect of that
Share and for all debts, liabilities or other obligations owed, whether presently or not, by the Member or by one or more joint Members
or by any of their estates to the Company (together, the Lien Amounts) but the Directors may, at any time, declare any Share to be wholly
or in part exempt from this Article. The Company's lien, if any, on a Share shall extend to all Distributions payable thereon. Any
registration of the transfer of a Share shall operate to extinguish the Company's lien on that Share.

8.2 **Sale**. The Company may sell, in such manner as the Directors think fit, any Shares in which the
Company has a lien, but no sale shall be made unless some amount in respect of which the lien exists is presently payable and the period
of fourteen days has elapsed after the Company has given a notice in writing, stating and demanding payment of such part of the presently
payable amount, to the relevant Member.

8.3 **Registration of Purchase**. The Directors may authorise any person to transfer the Shares sold in
accordance with this Article to the purchaser of such Shares. The purchaser shall be registered as the holder of the Shares so transferred
and he shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity
or invalidity in the sale of the Shares in accordance with this Article.

8.4 **Application of Proceeds**. The proceeds of the sale, net of any costs incurred by the Company in
relation to the sale, shall be applied by the Company in payment of such part of the amount in respect of which the lien exists as is
presently payable. The Company shall retain and have a lien over such part of the remainder of the proceeds as is equal to the Lien Amounts
which exist but are not presently payable by the Member and may apply such proceeds against the Lien Amounts as and when they become payable
and the residue shall be paid to the person entitled to the Shares at the date of the sale.

9 CALLS ON SHARES

9.1 **Calls**. The Directors may, from time to time, make calls upon the Members in respect of some or
all of any moneys unpaid on their Shares, whether in respect of their par value or the premium payable on those Shares; each Member shall
(subject to receiving at least 14 days' notice specifying the time or times of payment) pay to the Company at the time or times
so specified the amount called on his Shares. A call may be required to be paid in instalments. The Directors may revoke or postpone a
call at any time.

9.2 **Joint Holders**. The joint holders of a Share shall be jointly and severally liable to pay calls
in respect thereof and the holder or joint holders of a Share at the time of a call shall remain liable to pay the call on that Share,
notwithstanding any subsequent transfer of the Share being registered by the Company.

9.3 **Interest on Calls**. If a sum called in respect of a Share is not paid before or on the day appointed
for payment of that call, the Member from whom such amount is due shall pay interest upon the sum at such rate as the Directors
may determine from the day appointed for payment of the call to the time of the actual payment. The Directors shall have the discretion
to waive payment of any such interest in full or in part.

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9.4 **Fixed Payment Dates**. The provisions contained in these Articles in respect of calls shall apply
to payments, whether on account of the amount of the Share, or by way of premium, to be made on the allotment of a Share or any date fixed
on the issue of the Share as if the same had become payable by virtue of a call duly made and notified.

10 FORFEITURE

10.1 **Failure to pay Call**. If a Member fails to pay any call or instalment of a call in respect of Shares
on the day appointed for payment, the Directors may serve a notice on such Member naming a further date not earlier than the expiration
of 14 days from the date of service on or before which the payment required by the notice is to be made and containing a statement that
in the event of non-payment the Shares, or any of them, will be liable to be forfeited.

10.2 **Forfeiture**. If the requirements of the notice referenced in this Article are not complied with
the Company may forfeit the Shares together with any Distributions declared payable in respect of the forfeited Shares and not paid at
any time before tender of payment.

10.3 **No Refund**. The Company is under no obligation to refund any moneys to the Member whose Shares have
been forfeited.

10.4 **Sale of Forfeited Share**. A forfeited Share may be sold or otherwise disposed of on such terms and
in such manner as the Directors think fit, and at any time before a sale or disposition the forfeiture may be cancelled on such terms
as the Directors think fit. The proceeds of any sale or disposition of the forfeited Share may be received and used by the Company as
the Directors determine.

10.5 **Outstanding Liability**. A person whose Shares have been forfeited shall cease to be a Member in
respect of the forfeited Shares, but shall, notwithstanding, remain liable to pay to the Company all moneys which at the date of forfeiture
were payable by him to the Company in respect of the Shares together with interest.

10.6 **Certificate of Forfeiture**. A certificate in writing under the hand of a Director or Officer stating
that a Share has been duly forfeited on the date stated in the certificate shall be conclusive evidence of the facts stated in the certificate
as against all persons claiming to be entitled to the Share. The Directors may authorize any person to transfer the Shares sold in accordance
with this Article to the purchaser of such Shares. The purchaser shall be registered as the holder of the Shares so transferred and he
shall not be bound to see to the application of the purchase money, nor shall his title to the Shares be affected by any irregularity
or invalidity in the sale of the Shares in accordance with this Article.

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10.7 **Fixed Payment Dates**. The provisions of this Article applying to forfeiture for failure to pay any
call or instalment of a call shall apply to the failure to make payments, whether on account of the amount of the Share, or by way of
premium, to be made on the allotment of a Share or any date fixed on the issue of the Share as if the same had become payable by virtue
of a call duly made and notified.

11 TRANSMISSION OF SHARES

11.1 **Legal Personal Representative**. The legal personal representative of a deceased sole holder of a
Share shall be the only person recognised by the Company as having any title to the Share. In the case of a Share registered in the names
of two or more holders, the survivors, survivor or the legal personal representatives of the deceased survivor, shall be the only person(s)
recognised by the Company as having any title to the Share.

11.2 **Transmission**. Any person becoming entitled to a Share in consequence of the death or bankruptcy
of or any analogous event affecting a Member (each such event a Transmission Event and each such person a Representative) shall, upon
such evidence being produced as may from time to time be required by the Directors, have the right either to be registered as a Member
in respect of the Share or, instead of being registered himself, to make such transfer of the Share as the Member could have made; but
the Directors shall, in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer
of the Share by such Member before the occurrence of a Transmission Event.

11.3 **Pre-Registration Status**. Representatives shall be entitled to the same notices, dividends and other
advantages to which he would be entitled if he were the registered holder of the Share, except that he shall not, before being registered
as a Member in respect of the Share, be entitled in respect of it to exercise any right conferred by membership in relation to meetings
of the Company.

11.4 **Requirement for Registration**. The Directors may at any time give notice requiring a Representative
to elect either to be registered himself or to have some person nominated by him become the holder of the Share (but the Directors shall,
in either case, have the same right to decline or suspend registration as they would have had in the case of a transfer of the Share by
the relevant Member before the Transmission Event). If the notice is not complied with within ninety days the Directors may thereafter
withhold payment of all Dividends, bonuses or other monies payable in respect of the Share until the requirements of the notice have been
complied with.

12 TRANSFER OF SHARES

12.1 **Directors' Consent**. Shares and Treasury Shares are transferable, subject to the consent of
the Directors who may, in their absolute discretion, refuse to consent to any transfer and decline to register the transfer without giving
any reason.

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12.2 **Instrument of Transfer**. The instrument of transfer shall be in writing in such form as may be acceptable
to the Directors and shall be executed by or on behalf of the transferor and, if required by the Directors, signed by the transferee.

12.3 **Certificates**. Subject to Article 4.2, where the Company has issued a certificate in respect of
a Share proposed to be transferred, the transferor shall lodge, with the instrument of transfer, the original certificate relating to
the Share being transferred.

12.4 **Effective Date**. The transfer of a Share is effective when the name of the transferee is entered
on the Register of Members. Until such time, the transferor shall be deemed to remain a Member.

12.5 **Lost Certificate**. If the Directors are satisfied that an instrument of transfer relating to Shares
has been signed but that the instrument has been lost or destroyed, they may, on receipt of such indemnities as they may require:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept such evidence of the transfer of Shares as they consider
appropriate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) proceed to register the transferee's name in the Register
of Members.

12.6 **Notification of Refusal**. Where the Directors refuse to register a transfer of a Share, they shall,
within two months after the date on which the transfer was lodged with the Company, notify the transferee of the refusal.

12.7 **Transfer of Treasury Shares**. The transfer of Treasury Shares may be for valuable consideration
or otherwise, and at a discount to the par value of the Shares.

13 REGISTERED HOLDER DEEMED ABSOLUTE OWNER

13.1 The registered holder of a Share shall be treated as the absolute owner of such Share. No person shall
be recognised by the Company as holding any Share upon trust and the Company shall not register nor be bound by or required to recognise
any equitable or other interest of whatever nature in a Share other than an absolute right to the Share, irrespective of whether the Company
has notice of such interest.

14 ALTERATION OF SHARE CAPITAL

14.1 **Increase or Amendment**. The Company may by Ordinary Resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase the share capital by such sum, to be divided into Shares
of such amount, and with such rights, privileges, priorities and restrictions attached to them as the resolution shall prescribe;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consolidate and divide all or any of its share capital into Shares of larger amount than its existing
Shares;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to section 13 of the Companies Act, sub-divide its existing Shares, or any of them, into Shares of smaller amounts than is
fixed by the Memorandum; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cancel any Shares which, at the date of the passing of the resolution, have not been taken or agreed to be taken by any person.

14.2 **Reduction**. Subject to the provisions of the Companies Act and these Articles, the Company may,
by Special Resolution, reduce its share capital and any capital redemption reserve in any manner.

15 MEETINGS AND CONSENTS OF MEMBERS

15.1 **Meetings**. All meetings of Members shall be referred to as extraordinary general meetings unless
the general meeting is an annual general meeting. The Company may but shall not be obliged to hold an annual general meeting.

15.2 **Directors Convene**. Any Director may convene meetings of the Members at such times and in such manner
and places within or outside the Cayman Islands as the Director considers necessary or desirable.

15.3 **Members Convene**. Upon the written request of Members entitled to exercise 10% or more of the voting
rights in respect of the matter for which the meeting is requisitioned, any one or more of the Directors shall forthwith proceed to convene
a meeting of Members. The written request of Members to requisition a meeting must state the objects of the meeting and must be signed
by the Members requisitioning the meeting. The written request must be lodged at the Registered Office and may be delivered in counterpart.

15.4 **Failure to Convene**. If the Directors do not proceed to convene a meeting of Members within 21 days
of the written request to requisition a meeting being lodged the requisitionists, or any of them together holding at least half of the
voting rights of all of them, may convene the meeting of Members in the same manner as nearly as possible as that in which a meeting of
Members may be convened by a Director. Where the requisitionists fail to convene the meeting of Members within three months of their right
to convene the meeting arising, the right to convene the meeting of Members shall lapse.

15.5 **Notice of Meeting**. The Director convening a meeting shall give not less than seven days'
notice of a meeting of Members to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) those Members whose names on the date the notice is given appear as Members in the Register of Members and are entitled to vote at
the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each of the Directors.

15.6 **Failure to Give General Notice**. A meeting of Members held in contravention of the requirement to
give notice is valid if Members holding at least 90% of the total voting rights on all the matters to be considered at the meeting have waived notice
of the meeting and, for this purpose, the presence of a Member at the meeting shall constitute waiver in relation to all the Shares which
that Member holds.

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15.7 **Failure to give Individual Notice**. The inadvertent failure of a Director who convenes a meeting
to give notice of a meeting to a Member or another Director, or the fact that a Member or another Director has not received notice, does
not invalidate the meeting.

15.8 **Voting**. No person shall be entitled to vote at any meeting of Members unless he is registered as
a Member on the record date for such meeting and all calls or other moneys payable by him in respect of Shares have been paid at or before
the record date. Subject to the rights and restrictions attached to any Shares and the provisions of this Article, each Member who is
present in person, by its duly authorised representative or by proxy, shall have one vote and on a poll each Member shall have one vote
for every Share of which he is the holder.

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|:---|:---|
| 16 | PROXIES |

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16.1 **Proxies**. A Member may be represented at a meeting of Members by a proxy who may speak and vote
on behalf of the Member.

16.2 **Production of Proxies**. The instrument appointing a proxy shall be produced at the place designated
for the meeting before the time for holding the meeting at which the person named in such instrument proposes to vote. The notice of the
meeting may specify an alternative or additional place or time at which the proxy shall be presented.

16.3 **Form of Proxy**. An instrument appointing a proxy may be in any usual or common form (or such other
form as the Directors may approve) and may be expressed to be for a particular meeting or any adjournment thereof or may appoint a standing
proxy until notice of revocation is received at the Registered Office or at such place or places as the Directors may otherwise specify
for the purpose.

16.4 **Joint Ownership and Proxies**. Where Shares are jointly owned:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if two or more persons hold Shares jointly, each of them may
be present in person or by proxy at a meeting of Members and may speak as a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if only one of the joint owners is present in person or by proxy he may vote on behalf of all joint owners; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if two or more of the joint owners are present in person or by proxy they must vote as one.

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17 PROCEEDINGS OF SHAREHOLDER MEETINGS

17.1 **Chairman of Member Meeting**. At every meeting of Members, the chairman of the board of Directors
shall preside as chairman of the meeting. If there is no chairman of the board of Directors or if he is not present at the meeting within
fifteen minutes of the time appointed after the meeting or if he is unwilling to act the Directors present shall elect the chairman of
the meeting.

17.2 **Adjournment**. The chairman may, with the consent of the meeting, adjourn any meeting from time to
time, and from place to place, but no business shall be transacted at any adjourned meeting other than the business left unfinished at
the meeting from which the adjournment took place.

17.3 **Conference Call**. A Member, or his duly authorised representative or proxy, shall be deemed to be
present at a meeting of Members if he participates by telephone or other electronic means by means of which all the persons participating
in the meeting are able to hear each other.

17.4 **Objections**. No objection shall be raised to the qualification of any voter except at the meeting
of members or adjourned meeting of Members at which the vote objected to is given or tendered and every vote not disallowed at the meeting
shall be valid. Any objection made in due time shall be referred to the chairman whose decision shall be final and binding on all parties.

17.5 **Casting of Votes**. A Member holding more than one Share need not cast the votes in respect of the
Shares held by him in the same way on any resolution for which a poll is taken. A person appointed as the authorised representative or
proxy of a Member may cast the votes in respect of the Shares for which he is appointed in a like manner.

17.6 **Quorum**. A meeting of Members is duly constituted if, at the commencement of the meeting, there
are present in person, through their authorised representative or by proxy two or more Members entitled to vote on resolutions of Members
to be considered at the meeting except where there is only one Member entitled to vote on resolutions of Members to be considered at the
meeting in which case the quorum shall be one Member. Where a quorum comprises a single Member or proxy, such person may pass a resolution
of Members and a certificate signed by such person accompanied where such person be a proxy by a copy of the proxy instrument shall constitute
a valid resolution of Members.

17.7 **No Quorum**. If within two hours from the time appointed for the meeting a quorum is not present,
the meeting, if convened upon the requisition of Members, shall be dissolved; in any other case it shall stand adjourned to the next business
day in the jurisdiction in which the meeting was to have been held at the same time and place or to such other time and place as the Directors
may determine, and if at the adjourned meeting a quorum is not present within half an hour from the time appointed for the meeting the
Members present shall be a quorum.

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17.8 **Polls**. At any meeting of the Members the chairman is responsible for deciding in such manner as
he considers appropriate whether any resolution proposed has been carried or not and the result of his decision shall be announced to
the meeting and recorded in the minutes of the meeting. If the chairman has any doubt as to the outcome of the vote on a proposed resolution,
he shall cause a poll to be taken of all votes cast upon such resolution. If the chairman fails to take a poll then any Member present
in person or by proxy who disputes the announcement by the chairman of the result of any vote may immediately following such announcement
demand that a poll be taken and the chairman shall cause a poll to be taken. If a poll is taken at any meeting, the result shall be announced
to the meeting and recorded in the minutes of the meeting. The minutes of the meeting shall be conclusive evidence of the fact that a
resolution was carried or not without proof of the number or proportion of the votes recorded in favour of or against such resolution.

17.9 **Director Participation**. Directors may attend and speak at any meeting of Members and at any separate
meeting of the holders of any class or series of Shares.

17.10 **Unanimous Written Resolutions**. Any Ordinary or Special Resolution of Members and any other action
that may be taken by the Members at a meeting may also be taken by a resolution consented to in writing, without the need for any notice,
by all Members who would have been entitled to attend and vote at a meeting called for the purpose of passing such a resolution or taking
any other action. The consent may be in the form of counterparts, each counterpart being signed by one or more Members. If the consent
is in one or more counterparts, and the counterparts bear different dates, then the resolution shall take effect on the latest date borne
by the counterparts.

18 APPOINTMENT AND REMOVAL OF DIRECTORS

18.1 **Number of Directors**. The Company shall have a board of Directors consisting of not less than one
Director. The Company may by Ordinary Resolution impose a maximum or minimum number of Directors required to hold office at any time and
vary such limits from time to time.

18.2 **Appointment of Directors**. The first Directors shall be appointed by the subscribers to the Memorandum
by a written instrument signed by all the subscribers or by an Ordinary Resolution passed by the subscribers. Thereafter, subject to the
limits set out in the preceding Article, Directors shall be appointed by Ordinary Resolution or by a resolution of the Directors and may
be removed by Ordinary Resolution.

18.3 **Term**. Each Director holds office for the term, if any, fixed by the terms of his appointment or
until his earlier death, bankruptcy, insanity, resignation or removal. If no term is fixed on the appointment of a Director, the Director
serves indefinitely until his earlier death, bankruptcy, insanity, resignation or removal.

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18.4 **Vacation**. The office of a Director shall be vacated if:

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he gives notice in writing to the Company that he resigns the office of Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he absents himself (without being represented by an alternate Director appointed by him) from three consecutive
meetings of the board of Directors without special leave of absence from the Directors, and they pass a resolution that he has by reason
of such absence vacated office; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors generally; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) he is found to be or becomes of unsound mind; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all the other Directors (being not less than two in number) resolve that he should be removed as a Director.

19 REGISTER OF DIRECTORS AND OFFICERS

19.1 **Details**. The Register of Directors and Officers shall contain:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the names and addresses of the persons who are Directors and
Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date on which each person whose name is entered in the register was appointed as a Director or Officer;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the date on which each person named as a Director or Officer ceased to be a Director or Officer.

20 POWERS OF DIRECTORS

20.1 **Management by Directors**. Subject to the provisions of the Companies Act, the Memorandum, these
Articles and any directions given by Ordinary Resolution, the business and affairs of the Company shall be managed by, or under the direction
or supervision of, the Directors. The Directors shall have all the powers necessary for managing, and for directing and supervising, the
business and affairs of the Company as are not by the Companies Act, the Memorandum, these Articles or the terms of any Special Resolution
required to be exercised by the Members. No alteration of the Memorandum or these Articles or any direction given by Ordinary or Special
Resolution shall invalidate any prior act of the Directors that was valid at the time undertaken. A duly convened meeting of Directors
at which a quorum is present may exercise all powers exercisable by the Directors.

20.2 **Good Faith**. Each Director shall exercise his powers for a proper purpose. Each Director, in exercising
his powers or performing his duties, shall act honestly and in good faith in what the Director believes to be the best interests of the
Company.

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20.3 **Acting in Vacancy**. The continuing Directors may act notwithstanding any vacancy in their body,
but if and for so long as their number is below any minimum number of Directors fixed by or pursuant to these Articles, the continuing
Directors may act for the purpose of passing a resolution to appoint further Directors to the board of Directors and of convening a meeting
of Members to appoint further Directors but for no other purpose.

20.4 **Indebtedness and Security**. The Directors may exercise all the powers of the Company to incur indebtedness,
liabilities or obligations and to issue debentures, debenture stock, mortgages, bonds and other such securities and to secure indebtedness,
liabilities or obligations whether of the Company or of any third party.

21 PROCEEDINGS OF DIRECTORS

21.1 **Quorum**. The quorum for the transaction of the business of the Directors may be fixed by the Directors,
and unless so fixed shall be two if there are two or more Directors, and shall be one if there is only one Director. A person who holds
office as an alternate Director shall be counted in the quorum. A Director who also acts as an alternate Director shall count twice towards
the quorum.

21.2 **Voting**. Subject to the provisions of these Articles, the Directors may regulate their proceedings
as they think fit. Questions arising at any meeting shall be decided by a majority of votes. In the case of an equality of votes, the
chairman shall not have a second or casting vote. A Director who is also an alternate Director shall be entitled to a separate vote on
behalf of his appointor in addition to his own vote.

21.3 **Conference Call**. A person may participate and vote in a meeting of the Directors or committee of
Directors by telephone or other electronic means by means of which all the persons participating in the meeting are able to hear each
other. Unless otherwise determined by the Directors the meeting shall be deemed to be held at the place where the chairman is at the start
of the meeting.

21.4 **Unanimous Written Resolution**. A resolution in writing (in one or more counterparts) signed by all
the Directors or all the members of a committee of Directors (an alternate Director being entitled to sign any such resolution on behalf
of his appointor) shall be as valid and effectual as if it had been passed at a meeting of the Directors, or committee of Directors as
the case may be, duly convened and held.

21.5 **Notice of Meetings**. A Director may, or other Officer on the requisition of a Director shall, call
a meeting of the Directors by at least two days' notice in writing to every Director which notice shall set forth the general nature of
the business to be considered unless notice is waived by all the Directors either at, before or after the meeting is held.

21.6 **Chairman of the Board**. The Directors may elect a chairman of their board and determine the period
for which he is to hold office; but if no such chairman is elected, or if at any meeting the chairman is not present within five minutes after the time
appointed for holding the same, the Directors present may choose one of their number to be chairman of the meeting.

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21.7 **Defects**. Absent fraud, all acts done by any meeting of the Directors or a committee of Directors
shall, notwithstanding that it be afterwards discovered that there was some defect in the appointment of any Director or alternate Director,
or that they or any of them were disqualified, be as valid as if every such person had been duly appointed and qualified to be a Director
or alternate Director as the case may be.

22 PRESUMPTION OF ASSENT

22.1 A Director who is present at a meeting of the board of Directors at which action on any Company matter
is taken shall be presumed to have assented to the action taken unless his dissent shall be entered in the minutes of the meeting or unless
he shall file his written dissent from such action with the person acting as the chairman or secretary of the meeting before the adjournment
thereof. Such right to dissent shall not apply to a Director who voted in favour of such action.

23 DIRECTORS' INTERESTS

23.1 **Other Office**. A Director may hold any other office or place of profit under the Company (other
than the office of auditor) in conjunction with his office of Director for such period and on such terms as to remuneration and otherwise
as the Directors may determine. A Director may act by himself or his firm in a professional capacity for the Company and he or his firm
shall be entitled to remuneration for professional services as if he were not a Director or alternate Director.

23.2 **No Exclusivity**. A Director or alternate Director may be or become a director or other officer of
or otherwise interested in any company promoted by the Company or in which the Company may be interested as shareholder or otherwise,
and no such Director or alternate Director shall be accountable to the Company for any remuneration or other benefits received by him
as a director or officer of, or from his interest in, such other company.

23.3 **Disclosure of Interests**. No person shall be disqualified from the office of Director or alternate
Director or prevented by such office from contracting with the Company, either as vendor, purchaser or otherwise, nor shall any such contract
or any other contract or transaction entered into by or on behalf of the Company in which any Director or alternate Director shall be
in any way interested be or be liable to be avoided, nor shall any Director or alternate Director so contracting or being so interested
be liable to account to the Company for any profit realised by any such contract or transaction by reason of such Director holding office
or of the fiduciary relation thereby established. A Director (or his alternate Director in his absence) shall be at liberty to vote in
respect of any contract or transaction in which he is interested provided that the nature of the interest of any Director or alternate
Director in any such contract or transaction shall be disclosed by him at or prior to its consideration and any vote thereon.

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23.4 **General Notice of Interests**. A general notice that a Director or alternate Director is a shareholder,
director, officer or employee of any specified firm or company and is to be regarded as interested in any transaction with such firm or
company shall be sufficient disclosure for the purposes of voting on a resolution in respect of a contract or transaction in which he
has an interest, and after such general notice it shall not be necessary to give special notice relating to any particular transaction.

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| 24 | MINUTES |

---

24.1 The Directors shall cause minutes to be made in books kept for the purpose of all appointments of officers
made by the Directors, all proceedings at meetings of the Company or the holders of any class of Shares and of the Directors, and of committees
of Directors including the names of the Directors or alternate Directors present at each meeting.

25 DELEGATION OF DIRECTORS' POWERS

25.1 **Delegation**. The Directors may delegate any of their powers to any committee consisting of one or
more Directors. They may also delegate to any managing director or any Director holding any other executive office such of their powers
as they consider desirable to be exercised by him provided that an alternate Director may not act as managing director and the appointment
of a managing director shall automatically terminate if he ceases to be a Director. Any such delegation may be made subject to any conditions
the Directors may impose and may be revoked or altered. Subject to any such conditions, the proceedings of a committee of Directors shall
be governed by the Articles regulating the proceedings of Directors, so far as they are capable of applying.

25.2 **Committees**. The Directors may establish any committees, local boards or agencies or appoint any
person to be a manager or agent for managing the affairs of the Company and may appoint any person to be a member of such committees or
local boards. Any such appointment may be made subject to any conditions the Directors may impose, and may be revoked or altered. Subject
to any such conditions, the proceedings of any such committee, local board or agency shall be governed by the Articles regulating the
proceedings of Directors, so far as they are capable of applying.

25.3 **Third Party Delegation**. The Directors may by power of attorney or otherwise appoint any company,
firm, person or body of persons, whether nominated directly or indirectly by the Directors, to be the attorney or authorised signatory
of the Company for such purpose and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the
Directors under these Articles) and for such period and subject to such conditions as they may think fit, and any such powers of attorney
or other appointment may contain such provisions for the protection and convenience of persons dealing with any such attorneys or authorised
signatories as the Directors may think fit and may also authorise any such attorney or authorised signatory to delegate all or any of
the powers, authorities and discretions vested in him.

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25.4 **Officers**. The Directors may appoint such Officers as they consider necessary on such terms, at
such remuneration and to perform such duties, and subject to such provisions as to disqualification and removal as the Directors may think
fit. Unless otherwise specified in the terms of his appointment an officer may be removed by the Directors.

26 ALTERNATE DIRECTORS

26.1 **Alternate Appointment**. Any Director (other than an alternate Director) may by writing in notice
to the Company appoint any other Director, or any other person willing to act, to be an alternate Director.

26.2 **Conduct of Alternates**. An alternate Director shall be entitled to receive notice of all meetings
of Directors and of all meetings of committees of Directors of which his appointor is a member, to attend and vote at every such meeting
at which the Director appointing him is not personally present, and, save as expressly provided herein, to perform all the functions and
exercise all of the powers of his appointor as a Director in his absence.

26.3 **Automatic termination**. An alternate Director shall cease to be an alternate Director if his appointor
ceases to be a Director.

26.4 **No Agency**. An alternate Director shall be deemed for all purposes to be a Director and shall alone
be responsible for his own acts and defaults and shall not be deemed to be the agent of the Director appointing him.

27 NO MINIMUM SHAREHOLDING

27.1 The Company in general meeting may fix a minimum shareholding required to be held by a Director, but unless
and until such a shareholding qualification is fixed a Director is not required to hold Shares.

28 REMUNERATION OF DIRECTORS

28.1 **Office Remuneration**. The remuneration to be paid to the Directors, if any, shall be such remuneration
as the Directors shall determine. The Directors shall also be entitled to be paid all travelling, hotel and other expenses properly incurred
by them in connection with their attendance at meetings of Directors or committees of Directors, or general meetings of the Company, or
separate meetings of the holders of any class of Shares or debentures of the Company, or otherwise in connection with the business of
the Company, or to receive a fixed allowance in respect thereof as may be determined by the Directors, or a combination of such methods.

28.2 **Additional Remuneration**. The Directors may by resolution approve additional remuneration to any
Director for any services other than his ordinary routine work as a Director. Any fees paid to a Director who is also counsel or solicitor to the Company,
or otherwise serves it in a professional capacity shall be in addition to his remuneration as a Director.

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28.3 **Pensions**. The Directors, on behalf of the Company, may pay a gratuity or pension or allowance on
retirement to any Director who has held any other salaried office or place of profit with the Company or to his widow or dependants and
may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

29 INDEMNIFICATION

29.1 **Indemnity and Exclusion of Liability**. Every Director, alternate Director or Officer shall be indemnified
out of the assets of the Company against any liability incurred by him as a result of any act or failure to act in carrying out his functions
other than such liability (if any) that he may incur by his own actual fraud or wilful default. No such Director, alternate Director or
Officer shall be liable to the Company for any loss or damage in carrying out his functions unless that liability arises through the actual
fraud or wilful default of such Director or officer. References in this Article to actual fraud or wilful default mean a finding to such
effect by a competent court in relation to the conduct of the relevant party.

29.2 **Advancement of Expenses**. Expenses, including legal fees, incurred by a Director, alternate Director
or Officer, or former Director, alternate Director or Officer in defending any legal, administrative or investigative proceedings may
be paid by the Company in advance of the final disposition of such proceedings upon receipt of an undertaking by such party to repay the
amount if it shall ultimately be determined that such Director, alternate Director or Officer is not entitled to be indemnified by the
Company and upon such terms and conditions, if any, as the Company deems appropriate.

29.3 **Insurance**. The Company may purchase and maintain insurance in relation to any person who is or
was a Director, alternate Director, Officer or liquidator of the Company, or who at the request of the Company is or was serving as a
Director, alternate director, Officer or liquidator of, or in any other capacity is or was acting for, another body corporate or a partnership,
joint venture, trust or other enterprise, against any liability asserted against the person and incurred by the person in that capacity.

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| 30 | RECORDS |

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30.1 **Registered Office Records**. The Company shall keep the following documents at the Registered Office:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Certificate of Incorporation and any Certificate on Change
of Name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a copy of the Memorandum and Articles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Register of Directors and Officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to the extent the Company has created a security interest over any of its assets the Register of Mortgages
and Charges required to be maintained by the Company under Section 54 of the Companies Act.

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30.2 **Other Corporate Records**. The Company shall keep the following records at the Registered Office
or at such other place or places, within or outside the Cayman Islands, as the Directors may determine:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) minutes of meetings, Ordinary Resolutions and Special Resolutions of Members and classes of Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Register of Members; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) minutes of meetings and Resolutions of Directors and committees of Directors.

30.3 **Electronic Form**. All of the registers and records kept by the Company under these Articles shall
be in written form or either wholly or partly as electronic records complying with the requirements of the Electronic Transactions Act.

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| 31 | SEAL |

---

31.1 **Use of Seal**. The Company may, if the Directors so determine, have a Seal. The Seal shall only be
used by the authority of the Directors or of a committee of the Directors authorised by the Directors. Every instrument to which the Seal
has been affixed shall be signed by at least one person who shall be either a Director or an Officer or other person appointed by the
Directors for the purpose.

31.2 **Duplicate Seal**. The Company may have for use in any place or places outside the Cayman Islands
a duplicate Seal or Seals each of which shall be a facsimile of the common Seal of the Company and, if the Directors so determine, with
the addition on its face of the name of every place where it is to be used.

31.3 **Authentication and Filing**. A Director or Officer, representative or attorney of the Company may
without further authority of the Directors affix the Seal over his signature alone to any document required to be authenticated by him
under seal or to be filed with the Registrar of Companies in the Cayman Islands or elsewhere wheresoever.

32 DISTRIBUTIONS

32.1 **Payment of Distributions**. Subject to the Companies Act and this Article, the Directors may declare
and pay out of the funds of the Company lawfully available for such purpose a Distribution at a time and of an amount they think fit.
No Distribution shall be paid except out of the realised and unrealised profits of the Company, and/or out of the share premium account
and/ or as otherwise permitted by the Companies Act.

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32.2 **Ranking**. Except as otherwise provided by the rights attached to Shares, all Distributions shall
be declared and paid according to the par value of the Shares that a Member holds. The Company may pay Distributions in proportion to
the amount paid upon each Share where a larger amount is paid up on some Shares than on others. If any Share is issued on terms providing
that it shall rank for Distributions as from a particular date, that Share shall rank for Distributions accordingly.

32.3 **Deductions**. The Directors may deduct from any Distribution payable to any Member all sums of money,
if any, then payable by him to the Company on account of calls or otherwise.

32.4 **Distribution in Kind**. The Directors may declare that any Distribution be paid wholly or partly
by the distribution of specific assets and in particular of shares, debentures, or securities of any other company or in any one or more
of such ways and the Directors may settle the same as they think expedient and in particular may issue fractional Shares and fix the value
for distribution of such specific assets or any part thereof and may determine that cash payments shall be made to any Members upon the
basis of the value so fixed in order to adjust the rights of all Members and may vest any such specific assets in trustees as may seem
expedient to the Directors.

32.5 **Payment**. Any Distribution payable in cash in respect of Shares may be paid by electronic funds
transfer to the holder or by cheque or warrant sent through the post directed to the registered address of the holder or, in the case
of joint holders, to the registered address of the holder who is first named on the Register of Members or to such person and to such
address as such holder or joint holders may in writing direct. Every such cheque or warrant shall be made payable to the order of the
person to whom it is sent. Any one of two or more joint holders may give effectual receipts for any Distributions payable in respect of
the Shares held by them as joint holders.

32.6 **No Interest**. No Distribution shall bear interest as against the Company and no distribution shall
be paid on Treasury Shares.

32.7 **Unclaimed Payments**. Any Distribution which cannot be paid to a Member and/or which remains unclaimed
after six months from the date of declaration of such Distribution may, in the discretion of the Directors, be paid into a separate account
in the Company's name, provided that the Company shall not be constituted as a trustee in respect of that account and the Distribution
shall remain as a debt due to the Member. Any Distribution which remains unclaimed after a period of six years from the date of declaration
of such Distribution shall be forfeited and shall revert to the Company.

33 CAPITALISATIONS

33.1 **Capitalisations**. The Directors may capitalise any sum standing to the credit of any of the Company's
reserve accounts (including share premium account and capital redemption reserve) or to the credit of profit and loss account or otherwise
available for distribution and appropriate such sum to Members in the proportions in which such sum would have been divisible amongst
them had the same been a Distribution of profits by way of dividend and apply such sum on their behalf in paying up in full unissued
Shares for issue, allotment and distribution credited as fully paid-up to and amongst them in the proportions aforesaid. In such event
the Directors may make such provisions as they think fit in the case of Shares becoming distributable in fractions.

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34 RECORD DATE

34.1 **Record Date Determination**. For the purpose of determining Members entitled to attend meetings,
receive payment of any Distribution or capitalisation or for any other purpose, the Directors may provide that the Register of Members
shall be closed for transfers for a stated period which shall not in any case exceed forty days. In lieu of, or apart from, closing the
Register of Members, the Directors may fix in advance or arrears a date as the record date for any such determination of Members provided
that the record date for a meeting may not be earlier than the date of notice of such meeting.

34.2 **No Record Date Chosen**. If the Register of Members is not so closed and no record date is fixed
for the determination of Members entitled to attend meetings, receive payment of a Distribution or capitalisation, the date on which the
notice of the meeting is given or resolution of the Directors declaring such Distribution or capitalisation is adopted, as the case may
be, shall be the record date for such determination of Members.

35 REPRESENTATION

35.1 **Representation of Legal Persons**. The right of any individual to speak for or represent a Member
or a Director being a legal person shall be determined by the law of the jurisdiction where, and by the documents by which, such legal
person is constituted or derives its existence but save where an objection has been raised by a Member or a Director, the Directors shall
not be obliged to verify the rights of individuals purporting to speak for or represent legal persons. In case of doubt, the Directors
may in good faith seek legal advice from any qualified person and unless and until a court of competent jurisdiction shall otherwise rule,
the Directors may rely and act upon such advice without incurring any liability to any Member or the Company.

36 ACCOUNTS

36.1 **Accounts**. The Company shall keep proper books of account with respect to (a) all sums of money
received and expended by the Company and the matters in respect of which the receipt and expenditure takes place; (b) all sales and purchases
of goods by the Company; and (c) the assets and liabilities of the Company, that in each case, are sufficient to give a true and fair
view of the Company's affairs and to explain its transactions.

36.2 **Inspection**. The Directors shall from time to time determine whether and to what extent and at
 what times and places and under what conditions or regulations the accounts and books of the Company or any of them shall be open to
 the inspection of Members not being Directors and no Member (not being a Director) shall have any right of inspecting any account or
 book or document of the Company except as conferred by the Companies Act
or authorised by the Directors or by the Company in general meeting.

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36.3 **Financial Information**. The Directors may from time to time cause to be prepared and to be laid
before the Company in general meeting profit and loss accounts, balance sheets, group accounts (if any) and such other reports and accounts
as may be required by law.

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| 37 | AUDIT |

---

37.1 **Auditor**. The Directors may appoint an auditor of the Company who shall hold office until removed
from office by resolution of the Directors, and may fix his or their remuneration.

37.2 **Access Right**. Every auditor of the Company shall have a right of access at all times to the books
and accounts and vouchers of the Company and shall be entitled to require from the Directors and Officers such information and explanation
as may be necessary for any audit.

37.3 **Auditor Reports**. Auditors shall, if so required by the Directors, make a report on the accounts
of the Company during their tenure of office at such times as shall be required by the Directors or any meeting of the Members.

---

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|:---|:---|
| 38 | NOTICES |

---

38.1 **Calculation of Elapsed Time**. Subject to the laws of the Cayman Islands, where any period of time
is expressed as required for the giving of any notice or in any other case where some other action is required to be undertaken within
or omitted from being taken during a specified period of time, the calculation of the requisite period of time will not include the day
on which the notice is given (or deemed to be given) or the day on which the event giving rise to the need to take or omit action occurred,
but shall include the day on which the period of time expires.

38.2 **Delivery of Notices**. Notices shall be in writing and may be given by the Company to any Member
either personally or by sending it by courier, post, cable, telex, fax or e-mail to him or to his address as shown in the Register of
Members (or where the notice is given by e-mail by sending it to the e-mail address provided by such Member). Any notice, if posted from
one country to another, is to be sent airmail. E-mail notices may be sent by e-mail text and/or by way of a document attached to an email
in portable document format (PDF) or in Microsoft Word format and/or by any other method separately agreed between the Company and its
Members.

38.3 **Deemed Receipt**. Where a notice is sent by courier, service of the notice shall be deemed to be
effected by delivery of the notice to a courier company, and shall be deemed to have been received on the third day (not including Saturdays
or Sundays or public holidays) following the day on which the notice was delivered to the courier. Where a notice is sent by post, service
of the notice shall be deemed to be effected by properly addressing, pre-paying and posting a letter containing a notice, and shall be
deemed to have been received on the fifth day (not including Saturdays or Sundays or public holidays) following the day on which the notice
was posted. Where a notice is sent by cable, telex or
fax, service of the notice shall be deemed to have been received on the same day that it was transmitted. Where a notice is given by e-mail
service it shall be deemed to be effected by transmitting the e-mail to the e-mail address provided by the intended recipient and shall
be deemed to have been received on the same day that it was sent, and it shall not be necessary for the receipt of the e-mail to be acknowledged
by the recipient.

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38.4 **Notices of General Meeting**. Notice of every general meeting shall be given in any manner hereinbefore
authorized to every person shown as a Member in the Register of Members on the record date for such meeting except that in the case of
joint holders the notice shall be sufficient if given to the joint holder first named in the Register of Members.

39 VOLUNTARY LIQUIDATION

39.1 Subject to the Companies Act, the Company may by Special Resolution be wound up voluntarily.

40 WINDING UP

40.1 **Distribution of Assets**. If the Company shall be wound up, and the assets available for distribution
amongst the Members shall be insufficient to repay the whole of the share capital, such assets shall be distributed so that, as nearly
as may be, the losses shall be borne by the Members in proportion to the par value of the Shares held by them. If in a winding up the
assets available for distribution amongst the Members shall be more than sufficient to repay the whole of the share capital at the commencement
of the winding up, the surplus shall be distributed amongst the Members in proportion to the par value of the Shares held by them at the
commencement of the winding up subject to a deduction from those Shares in respect of which there are monies due, of all monies payable
to the Company for unpaid calls or otherwise. This Article is without prejudice to the rights of the holders of Shares issued upon special
terms and conditions.

40.2 **Valuation of Assets**. If the Company shall be wound up the liquidator may, with the sanction of
a Special Resolution and any other sanction required by the Companies Act, divide amongst the Members in kind the whole or any part of
the assets of the Company (whether they shall consist of property of the same kind or not) and may for that purpose value any assets and
determine how the division shall be carried out as between the Members or different classes of Members. The liquidator may, with the like
sanction, vest the whole or any part of such assets in trustees upon such trusts for the benefit of the Members as the liquidator, with
the like sanction, shall think fit, but so that no Member shall be compelled to accept any asset upon which there is a liability.

41 CONTINUATION

41.1 The Company may, subject to the provisions of the Companies Act and with the approval of a Special Resolution,
transfer and be registered by way of continuation as a body corporate limited by shares under
the laws of any jurisdiction outside the Cayman Islands and be de-registered in the Cayman Islands.

28 *Auth Code: H62639701064<br> www.verify.gov.ky*

![](ex3-1_001.jpg)

42 AMENDMENT OF THE MEMORANDUM AND ARTICLES

42.1 Subject to the Companies Act and the rights attaching to any class or series of Shares, the Company may
by Special Resolution change its name or alter or amend these Articles and/ or the Memorandum in whole or in part.

Dated: 8 July 2021

---

| | |
|:---|:---|
| **SUBSCRIBER** | **NUMBER OF SHARES TAKEN** |
| **Harneys Fiduciary (Cayman) Limited** | **1 Share** |
| **P.O. Box 10240** |  |
| **Grand Cayman KY1-1002** |  |
| **Cayman Islands** |  |

---

---

| |
|:---|
| /s/ Bonnie Sin |
| Bonnie Sin |
| Acting as duly authorised signatory <br> For and on behalf of |
| Harneys Fiduciary (Cayman) Limited |

---

---

| |
|:---|
| /s/ Katy Chow |
| Katy Chow |
| Witness to the above signature |

---

29 *Auth Code: H62639701064<br> www.verify.gov.ky*

## Exhibit 10.3

**Exhibit 10.3**

**PREMISES LEASE CONTRACT**

Lessor: Yue Yi Leasing Service (Nanjing) Co., LTD. (hereinafter referred to as Party A)

Lessee:Jiangsu HUHU Electromenchanical Technology Co.,Ltd. (hereinafter referred to as Party B)

Having reached unanimity through friendly consultation and negotiation, Party A and Party B have reached an agreement in principle on the leasing of Party A's plant and affiliated premises to Party B.A lease contract is hereby entered into.

**I. Rental houses**

Party A will be located at No. 13, Jinding Road, Qiaolin Street, Pukou District, Nanjing, with a floor area of 600 square meters (planning license No. 117, Pugui Building [2007] ; No. 143, Pugui Building [2007]) is leased to Party B for use (hereinafter referred to as "the Premises"). The existing decoration and other necessary facilities (inside and outside) related to production equipment, production conditions, office space and living space of the premises shall be subject to the actual conditions of the parties at the time of handover.Party A agrees that Party B shall decorate and change the content standard of the original facilities and equipment by itself.

**II. Lease purposes**

Party B leases the Premises as a warehouse. During the lease term, Party B shall not change the use of the Premises without prior written consent of Party A.

**III. Lease Term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The lease term is four years from <u>October 1, 2021</u> to <u>September 30, 2025</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the lease term, Party A has no right to adjust the rent at will. The annual rent is as follows:

The first year: from <u>October 1, 2021</u> to <u>September 30, 2022,</u> the house rent excluding tax is 12,000 Yuan, the tax rate is 9%, the tax is 1,080 yuan, a total of 13,080 yuan;The rent excluding tax is 74,400 yuan, the tax rate is 9%, and the tax is 6,696 yuan, 81,096 yuan in total;A total of 94,176 yuan (RMB Ninety-four thousand One hundred and seventy-six yuan only)

Year 2: From <u>October 1, 2022</u> to <u>September 30, 2023</u>, the house rent excluding tax is 12,360 Yuan, the tax rate is 9%, the tax is 1112.40 yuan, a total of 13,472.40 yuan;The rent excluding tax is 76,632 yuan, the tax rate is 9%, the tax is 6896.88 yuan, a total of 83,528.88 yuan;A total of 97,001.28 yuan (RMB Ninety-seven thousand, and one point two eight)

Year 3: From <u>October 1, 2023</u> to <u>September 30, 2024,</u> the house rent excluding tax is 12,730.80 yuan, the tax rate is 9%, the tax is 1,145.77 yuan, a total of 13,876.57 yuan;The rent excluding tax is 78,930.96 yuan, the tax rate is 9%, and the tax is 7103.79 yuan, totaling 86,034.75 yuan;A total of 99,911.32 yuan (RMB Ninety-nine thousand, nine hundred and eleven point three two)

Year 4: From <u>October 1, 2024</u> to <u>September 30, 2025,</u> the house rent excluding tax is 13112.72 yuan, the tax rate is 9%, the tax is 1180.15 yuan, a total of 14292.87 yuan;The rent excluding tax is 81298.89 yuan, the tax rate is 9%, and the tax is 7316.90 yuan, totaling 88615.79 yuan;A total of 102908.66 yuan (RMB One hundred and twenty-two thousand nine hundred and eighty six cents)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. During the lease, Party B shall pay attention to the maintenance and repair of the equipment, power, lighting fixtures and surrounding environment. Except for natural losses, Party B shall be able to operate normally when the lease expires.

**IV. Rent payment method**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party B shall, in accordance with the principle of pay before use, pay the rent to Party A on time every six months. Party A shall issue an invoice to Party B after receiving the payment.Payment for the lease is by bank transfer.

Party A's account Information:

Account name: Yue Yi Leasing Service (Nanjing) Co., LTD

Bank: Bank of Nanjing, Nanjing Qiaolin Sub-branch

Account number: 2061290000000542

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If Party A changes the account, it shall notify Party B in writing.If Party B makes the payment to the original account before receiving the written notice, Party B shall not be responsible for Party A's loss.

**V.Responsibilities of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Party A shall guarantee the compliance of building structure and fire protection of building structure (record No.:320000WYS110002441).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party A shall regularly inspect and timely repair the leased premises to ensure that there is no leakage, no flooding, good three-way (indoor water supply, drainage, lighting) and good doors and Windows, so as to ensure the safe and normal use of Party B.Party B shall promptly notify Party A to repair the wear and tear of the premises and its ancillary articles, equipment and facilities caused by natural properties or reasonable use.Party A shall carry out maintenance within 7 days upon receipt of Party B's notice.In case of failure to repair within the time limit, Party B may repair on behalf of Party A at Party A's expense.If the maintenance of the premises affects Party B's use, the rent shall be reduced or the lease term shall be extended accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The parties shall not be liable for breach of contract if the house is lawfully included in the scope of housing expropriation and requisition due to urban construction needs. However, the expropriation and requisition compensation is the compensation for business loss and decoration (only for the decoration part of Party B) and belongs to Party B.Party A shall make the payment to Party B within 7 days upon receipt of such payment.If Party A delays the payment, Party A shall pay Party B a daily payment for the delay of performance at the rate of 3‰ of the compensation payable to Party B.Party B shall cooperate with Party A to handle relevant procedures for moving out after receiving the compensation payment payable by Party A according to the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party A shall connect the power line to the plant and the distribution box, and install the lighting and water in place.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If Party A transfers the property ownership to a third party according to legal procedures, Party A shall guarantee that this Contract shall remain valid for the new property owner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party A shall ensure that there are no other rights defects in renting the Premises, including but not limited to mortgage, guarantee, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. During the lease term, Party A shall not unilaterally terminate the Contract.In case of early termination of the Contract due to Party A, Party A shall provide economic compensation to Party B for the decoration, decoration and appendage attached to the premises according to the residual value of the decoration, which shall be paid off within 7 days after the termination of the Contract. In such case, Party A shall refund the rent paid and not consumed by Party B and pay three months 'rent to Party B as penalty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Party A shall deliver the premises to Party A on time as stipulated in the Contract. If Party A fails to deliver the leased property within the time limit, the lease date shall be postponed accordingly.For each overdue day, Party B shall have the right to charge Party A a penalty of 3‰ of the rent on the annual rent. If the delay exceeds 30 days, Party B shall have the right to terminate the contract and require Party A to refund all the rent collected.

**VI. Responsibilities of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In the process of operation, Party B shall carry out production in accordance with relevant national laws and regulations, comply with local regulations, complete various procedures, pay all production and operation expenses of the company, strengthen comprehensive management and production safety management, and shall not engage in illegal business activities. In case of any violation of laws and regulations, Party B shall bear all responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. During the lease term, Party B shall not use Party A's land and premises as collateral to banks or creditors in production and operation, or sublease to others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party B shall not destroy or change the house structure by itself in the process of production and operation, and may decorate the house by itself on the basis of the foregoing.Party B shall repair the house and road damage caused by Party B and bear the cost, or Party A shall repair and bear the cost of Party B after negotiation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. During the lease, Party B shall pay attention to the maintenance and repair of the equipment, power, lighting fixtures and surrounding environment. Except for natural losses, Party B shall be able to operate normally when the lease expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. During the lease term, Party B shall do its own security work. In case of accidents and property losses, Party B shall be solely responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. If Party B terminates the Contract in advance due to market reasons or other reasons, it shall notify Party A in writing two months in advance and compensate Party A for three months 'rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Party B shall pay the rent to Party A on schedule before the lease is used; otherwise, Party B shall not use the leased premises and bear corresponding responsibilities.Party A shall notify Party B to pay the rent one week in advance before it is due.If Party B fails to pay the rent upon receipt of the notice, he/she shall be charged a late fee of 3‰ per day for the unpaid rent starting from the next day after the lease term expires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The public road in the factory shall be kept unblocked and no debris shall be piled up.

**VII. After the Agreement comes into force, both parties shall abide by this Agreement and shall not breach it without authorization.Otherwise, the breaching party shall bear all economic losses and legal liabilities caused by the breach in accordance with the provisions of the contract.The scope of compensation for breach of contract shall include but not be limited to: actual economic losses, investigation expenses, litigation costs, arbitration costs, expenses of hiring litigation and arbitration agents and other necessary expenses incurred as a result of breach of contract.**

**VIII. Settlement of contract disputes**

If both parties have any dispute during the contract period, they shall negotiate first. If no agreement can be reached through negotiation, either party may apply to the people's court of the place where the house is located for litigation.

**IX.Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract is made in duplicate, with each party holding one copy. This contract shall come into force after being signed and sealed by authorized representatives of both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. For other matters not covered herein, both parties may sign a supplementary contract upon mutual agreement. The supplementary contract shall have the same legal effect as this Contract.

(The following text is left blank)

---

| | |
|:---|:---|
| **Party A (Seal) :** | **Party B (Seal) :** |
| **Authorized Representative :** | **Authorized Representative :** |
| **(signature)** | **(signature)** |
| **On September 27th, 2021** | **On September 26th, 2021** |

---

## Exhibit 10.4

**Exhibit 10.4**

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

House Lease Contract contract no N0: 0002542

Lessor: <u>Chongda He</u> ID No.: <u>320724198407135717</u> (hereinafter referred to as Party A)

Representative/Agent: ____________________ ID No.: ____________________

Lessor's current address: _________________________________________

Lessee: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u> ID No. : <u>91320214346537120H</u>(hereinafter referred to as Party B) Representative/agent: <u>_Fulai Wei_</u> ID No. : <u>320922198908075720</u>

Current address of the lessee: ________________

Intermediary: Nanjing Tingju Real Estate Brokerage Co., LTD. Business license

Registration number: 320111000201903120143

Address: No. 3, Yanling Road, Shiqi Community, Qiaolin Street, Pukou District, Nanjing

In accordance with the provisions of national laws and regulations, to clarify the rights and obligations of Party A and Party B, both parties enter into this contract upon consensus through negotiation.

**Article 1: Property address**

Party A owns the room which locates in <u>Room 307, Building 5, Qialinshan Yayuan, Pukou District, Nanjing</u>, with a construction area of <u>85</u> square meters. The house type is: <u>residential building .</u> Party A leases it to Party B for <u>residential use.</u>

**Article 2: Lease term**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. The lease period is for <u>one</u> year, from <u>December 14, 2021</u> to <u>December 15, 2021</u>. Party A will deliver the leased premises to Party B for use on <u>December 15, 2021</u>.

**Article 3: Payment method**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A and Party B agree that the monthly rent is RMB <u>one thousand and eight hundreds yuan(￥1,800.00</u>) ,which shall be paid by Party B to Party A or to the bank account designated by Party A on the <u>day</u> of each month, paid in advance and used later.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Upon signing the Contract, Party B shall pay Party A the deposit for the lease of the house in RMB <u>one thousand and eight hundreds yuan</u>(<u>￥1,800.00)</u> .. The deposit shall be returned to Party B in full without interest by Party A on the day of termination of the contract after Party B has paid the relevant lease fee. The receipt issued by Party A shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Based on the services provided by the Intermediary, Party A shall pay the intermediary RMB <u>nine hundreds Yuan</u> (<u>￥900.00)</u> as service commission on the date of signing this Contract; Party B shall pay the intermediary RMB <u>nine hundreds Yuan</u> (<u>￥900.00</u>) as service commission.

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

**Article 4: Breach and liability**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party A may terminate the contract, take back the premises and hold Party B liable under any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To sublet, sublet, transfer, lend or exchange the premises with others without prior written consent of Party A;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Using the leased premises to carry out illegal activities, damaging the public interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Default the rent for months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. If Party A continues to lease the house after the expiration of this contract, Party B shall have the priority to lease the house under the same conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Party A shall compensate Party B in RMB <u>one thousand and eight hundreds yuan(￥1,800.00</u>) for early termination of the Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. If Party B terminates the contract in advance, Party A shall confiscate the rental deposit paid by Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. If Party B fails to pay the rent, in addition to the overdue rent, Party B shall pay <u>20%</u> of the rent to Party A on a daily basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VI. Party A shall pay the expenses incurred before the signing of the lease contract, and Party B shall pay the expenses incurred after the delivery of the premises to Party B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VII. Party A guarantees that there is no property rights dispute;If Party B requires Party A to provide the property title certificate or other relevant certification materials due to business needs, Party A shall provide assistance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;VIII. Party B shall be responsible for personal and property safety during the lease period, and Party A shall not be responsible for it.

**Article 5: Methods of dispute resolution**

Any dispute arising during the performance of this Contract shall be settled by both parties through negotiation.If no agreement can be reached through consultation, it may apply for arbitration to the Economic Contract Arbitration Commission of the Municipal Administration for Industry and Commerce, or bring a suit in the people's court.

<u>Nanjing Tingju Real Estate Brokerage Co., LTD</u>

Solemnly declare: Any payment received by our employees from customers shall be valid only if it is issued with the financial seal of our company, otherwise the company will not approve it.

**Article 6: Methods of dispute resolution**

For matters not covered in this contract, both parties may negotiate and sign a supplementary agreement, which shall have the same effect as this Contract. This contract is made in triplicate, with each party holding a copy and the intermediary party reserving one copy of the stub. It shall come into force after being signed and confirmed by the three parties.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| item name | quantity | brand | model | remarks | item name | quantity |
| goggle-box |  |  |  |  | sofa |  |
| Set-Top Box |  |  |  |  | tea table |  |
| washing machine | 1 |  |  |  | TV bench |  |
| refrigerator | 1 |  |  |  | bookcase | 2 |
| air conditioner | 2 |  |  |  | wardrobe | 2 |
| water heater | 1 |  |  |  | bed | 3 |
| cooker hood | 1 |  |  |  | Dining tables and chairs | 1table and 4 chairs |
| gas-oven |  |  |  |  | shoe cabinet |  |
| microwave |  |  |  |  | storeroom |  |
| Water card |  |  |  |  | Water meter reading |  |
| Electric card |  |  |  |  | Meter reading |  |

---

Comments on a form: <u>i clean the house and pay off the water and electricity charges；If the lease term is not full, the rent and deposit will be not refunded; If the goods in the room are deemed to be damaged, Party B shall compensate, and the rest shall be repaired by Party A. ii. The payment method is one month's rent as a deposit and three months' rent at a time, and pay the next quarter rent half a month in advance.</u>

Lessor : ___________ (Seal)Agent: ___________ (Seal) Lessee: ___________ (Seal)

DATE: DATE: DATE:

## Exhibit 10.5

**Exhibit 10.5**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Working capital loan contract**

**(Applicable to newly-signed domestic RMB interest rate, non-US dollar/pound/euro/yen/Swiss franc foreign currency interest rate, US dollar/pound/euro/yen/Swiss franc new benchmark interest rate)**

No：736375593D22061501

**Borrower: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

**Unified social credit code：<u>91320214346537120H</u>**

**Legal Representative/Person in charge: <u>Yinglai Wang</u>**

**Address: <u>3-1208, No.228 Linghu Avenue, Xinwu District, Wuxi City</u> ZIP Code： <u>/</u>**

**Opening financial Institution and Account Number:<u>Bank of China Limited,Wuxi Branch 483277737262</u>**

**Telephone: <u>/</u> Fax: <u>/</u>**

**Lender: <u>Bank of China Limited,Wuxi Branch</u>**

**Legal Representative/Person in charge:<u>Xinhong Chen</u>**

**Address: Zip Code:<u>258 Zhongshan Road, Wuxi</u> ZIP Code：**<u> </u>

**Telephone: *<u> </u>* Fax:** <u> </u>

The Borrower and Lender, through equal consultation, have reached an agreement on the issue of working capital loan by the Lender to the Borrower and hereby enter into this contract.

☐ This contract is a single agreement under the signed,Belong to <u>Jiangsu Huhu Electromechanical Technology Co., LTD.</u>with <u>Bank of China Limited,Wuxi Branch</u>.Number of <u>736375593E22061501</u>☐ Line of Credit Agreement /☐ General Agreement for Credit.(Note: This is optional. If not applicable, delete it.)

**Article 1 Loan Amount**

Currency of loan:<u>RMB</u>.

Amount borrowed: (in words)：<u>three million yuan</u>

(in Figures)：<u>￥3,000,000.00</u>

☐ At the time of the Borrower's actual withdrawal, if the Borrower's existing credit balance under the aforesaid Line of Credit Agreement is converted into according to the exchange rate __<u>/</u> (currency)on the actual withdrawal date due to exchange rate fluctuations, the lender has the right to terminate this contract or reject the Borrower's withdrawal application if it exceeds the line of credit agreed in the Line of Credit Agreement：If the available line of credit is less than the amount borrowed by the borrower under this contract, the lender shall have the right to reduce the amount borrowed under this contract and determine the amount borrowed under this contract according to the available line of credit.(Note: This clause is optional and applicable according to the management regulations of each line of credit limit. If it is not applicable, it should be deleted)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 2 Term of Loan**

Term of Loan: <u>12</u> month/ <u>/</u> day, starting from the actual withdrawal date;In the case of instalment withdrawal, the first actual withdrawal date.

The Borrower shall make the withdrawal in strict accordance with the agreed time. If the actual withdrawal date is later than the agreed time, the Borrower shall make the repayment in accordance with the repayment time agreed herein.

**Article 3 Purposes of loan**

Purpose of loan: <u>Buy heating belt, connecting sheet, etc</u>

Without the written consent of the lender, the borrower shall not change the purpose of the loan, including but not limited to, the borrower shall not use the loan for fixed assets, equity and other investment, for any fields or purposes that are prohibited by laws, regulations, regulations, or the state to produce or operate, for lending, or for the purchase of other financial products for arbitrage, or for the illegal creation of new hidden debts of the local government. And other uses for which bank loans are prohibited.

**Article 4 Loan Interest Rate and accrued interest** (Remarks: Fill in according to the facts, and exception to application must be deleted)

**The lender expresses to the borrower the annualized interest rate of the loan hereunder through the notification letter of the annualized interest rate of the loan attached hereto. If the annualized interest rate of the loan hereunder is only calculated according to the interest rate of the loan expressed in paragraph 1 of this article, the notification letter of the annualized interest rate of the loan shall not apply.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Borrowing interest rate**

The borrowing rate (annualized, simple interest rate for RMB borrowing and simple/compound interest rate for foreign currency borrowing (choose one))

The manner is <u>(2)</u> listed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Fixed interest rate, annual interest rate <u>/</u> %.**The contract interest rate remains unchanged during the term of the loan.

**☐ The source of fixed interest rate of RMB loan is:** the quoted interest rate of loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the National Inter-bank Lending Center as of one working day before the effective date of this contract ☐ plus/☐minus (optional) <u>/</u> basis points;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Sources of fixed interest rates for foreign currency borrowings:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Base rate plus <u>/</u> basis points applicable on the effective date of this Contract (T day).The benchmark interest rate is the value of <u>/</u> T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR corresponding to the currency of the loan agreed under this contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Base rate plus<u> </u> basis points applicable on the effective date of this Contract (T days, if the effective date is not a business day, the most recent business day before is T days).The benchmark interest rate is the interest rate of ☐ US dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ <u>/</u> T-5 business days as shown on the Bloomberg Financial Telecommunications terminal page. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.**(Note: This section applies to overnight interest rates)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The latest one obtained from Reuters Information system before 9:00 (Beijing time) one working day prior to the effective date of this Contract <u>/</u> Monthly <u>/ (</u>foreign currency benchmark rate) plus <u>/</u> basis points.**If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **The floating interest rate,** starting from the actual withdrawal date (in the case of fractional withdrawal, the first actual withdrawal date), ☐ daily /🗹 12 month /☐ <u>/</u> year (choose one) as a floating period, will be repriced once. The repricing date is the first day of the next floating period, that is, the starting date is the corresponding day of the repricing month. If there is no corresponding day in the current month, it is the last day of the current month. If the floating period is daily, the repricing date is the day of the next floating period.

**For each withdrawal:**

🗹 **Floating interest rate of RMB loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) is one working day prior to the date of actual withdrawal. The market quoted interest rate for loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) as recently published by the national interbank offered center 🗹 plus/minus (optional) <u>0</u> basis points;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. On the repricing date, together with other tranches of withdrawals, the market quoted rate ☐ plus/minus (optional) basis points of loans with maturity of 🗹 1 year /☐ 5 years or more (optional)🗹 plus/minus (optional) <u>0</u> basis points to reprice, as the applicable interest rate for the floating period.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Floating interest rate on foreign currency borrowings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **If applicable term interest rate,**(the following rules will determine the interest rate:The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be determined by the spread of the base rate applicable on the date of actual withdrawal (T day) plus basis points. The benchmark interest rate is the value of<u> </u>T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR ☐ corresponding to the currency of the loan agreed under this Contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System**.**On the repricing date (T day),<u> </u> (term) ☐ Yen TIBOR ☐ Euro EURIBOR ☐<u> </u>T-3 business days for the currency of the loan agreed under this Contract as displayed on the bloomberg financial telecommunications terminal page or obtained from the Reuters Information System plus other tranche withdrawals The spread of the basis points determines the applicable interest rate for that floating cycle.The spread remains unchanged over the life of the contract.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **If the overnight rate is applicable,** the following rules will determine the interest rate: The base rate plus<u> </u>☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ shall apply on each interest date(i.e., each natural day of the borrowing period, the same below) in the currency of the borrowing under this contract <u>/ b</u>ase point spreads are determined.The subsequent lender shall determine the interest rate of each accruing date based on the benchmark interest rate applicable on each accruing date and the aforementioned spread.Interest date the daily pricing base rate shall be determined as follows: The first rate fixing date shall be the actual withdrawal date, and the subsequent rate fixing date shall be each interest date after the first rate fixing date.Interest rate fixing date (T day, if the interest rate fixing date is not a business day, The most recent business day before shall be T day) The base rate applicable is the currency of the loan agreed under this Contract as shown on the Bloomberg Financial Telecommunications Terminal page ☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>T-5 working days of the interest rate value.The spread remains unchanged over the life of the contract.**If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be the latest (foreign currency benchmark rate) plus basis point of the month obtained from Reuters Information System before 9:00 (Beijing time) one business day prior to the date of actual withdrawal.On the repricing date, together with other tranche withdrawals, the latest (foreign currency benchmark rate) for the same floating period obtained from Reuters Information System before 9:00 AM (Beijing time) on the business day prior to the repricing date will be repriced as the applicable interest rate for the floating period.**If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Interest calculation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) For the fixed interest rate of Item 1 (1), floating interest rate of RMB loan in Item 1 (2) and floating interest rate of foreign currency loan in Item A and C of this Article:**

The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.

Interest calculation formula: interest = principal**×**actual days**×**daily interest rate.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) For item B of Floating interest rate for foreign currency borrowings in Paragraph 1 (2) of this Article:**

**The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.**

**Simple interest:** The part calculated on the basis of the pricing base and the part calculated on the basis of the spread is calculated on the basis of simple interest.

**Single compound interest combined interest bearing:** For the part calculated according to the pricing base, the interest of the part per business day = (the loan principal + the total amount of interest owed by the previous day) **×** the base day interest rate applicable on that day**;**Non-working days are still accruing simple interest.The portion calculated on the basis of the spread is calculated as simple interest.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

The above mentioned working days refer to the local working days of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. the way of interest**

The borrower shall pay interest in the first of the following ways: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest accrues quarterly, the 20th day of the last month of each quarter is the coupon Day, and the 21st Day is the coupon payment Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest accrues monthly, the 20th day of each month is the coupon Day, and the 21st Day is the Coupon Payment Day.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

If the Last Payment date of the principal of the Loan is not the Interest Payment Date, the last payment date of the Principal of the Loan is the Interest Payment Date and the Borrower shall pay all the interest payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Penalty interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the loan is overdue or not used for the purpose agreed in the contract, penalty interest shall be levied on the overdue or misappropriated part from the date of the overdue or misappropriated part until the principal and interest are repaid.

For overdue and misappropriated loans, penalty interest shall be calculated at the higher penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the interest and penalty interest that the Borrower fails to pay on time, compound interest shall be calculated **according to the penalty interest rate agreed** in this paragraph in the manner of settlement agreed in Paragraph 3 of this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Penalty interest rate (Remarks: Fill in according to the currency of the loan and the way of determining the interest rate)

**RMB loan penalty interest rate, ☐ Penalty interest rate on fixed-rate loans**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Floating interest rate, the floating period is<u> </u> month /<u> </u>year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period).Reprice once per floating period from the date of overdue or misappropriation.The repricing date shall be the overdue or misappropriated date. If there is no such date in the current month, the last day of the current month shall be the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be charged <u>%</u> at the base rate of penalty interest determined in subparagraph C, and the penalty interest rate for misappropriated loans shall be charged at the base rate of such penalty interest rate<u> </u>%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In the first floating period, the base rate of penalty interest is the borrowing rate agreed in paragraph 1 of this article.After the completion of each floating period, the penalty rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) <u>t</u>he base point is determined.

**☐ Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article.The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>40</u> %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>70 %</u>

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing date in accordance with the manner stipulated in paragraph 1 of this Article.

**Foreign currency borrowing penalty interest rate, ☐ Penalty interest rate on fixed-rate loans**

The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article<u> </u>basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article<u> </u>basis points

**☐ Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Paragraph 1 (2) of this article on the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u>the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u> the basis point.

**Floating rate Penalty interest rate for borrowing(Note: This section applies to loans with single compound interest and can not be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u>the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus<u> </u> the basis point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The "loan interest rate" and "penalty interest rate" under this Contract are tax inclusive interest rates, that is, the interest charged by the Lender to the Borrower has included VAT payable in accordance with national laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of any material change in the pricing basis of the floating interest rate hereunder, the market rules in force at that time shall apply.If the Lender then requires the Borrower to sign a supplementary contract on relevant matters, the Borrower shall cooperate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term "pricing base" in this Article has the same meaning as the term "base rate".

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Under this Contract, "TIBOR" means TIBOR announced and managed by the Japan Bankers Association (or the successor administrator), and "EURIBOR" means EURIBOR announced and managed by the European Money Market Institute (or the successor administrator) as the administrator. "Overnight SOFR" means an overnight SOFR published and administered by the Federal Reserve Bank of New York (or a successor governor) as administrator, "Overnight SONIA" means an overnight SONIA published and administered by the Bank of England (or a successor governor) as administrator, "Overnight TONA" means the overnight TONA published and managed by the Bank of Japan (or successor) as administrator, "Overnight ESTR" means the overnight ESTR published and managed by the European Central Bank (or successor) as administrator, "Overnight SARON" means the overnight SARON published and administered by the Swiss Stock Exchange (or a successor administrator) as the administrator.

**Article 5 Withdrawal conditions**

The borrower shall meet the following conditions for withdrawal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract and its attachments have come into force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has provided the guarantee as required by the lender, and the guarantee contract has taken effect and completed the legal approval, registration or filing procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower has reserved for the Lender the Borrower's documents, receipts, seals, names of persons and signature samples related to the conclusion and performance of this Contract, and has filled in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower has opened an account necessary for the performance of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Submit the written withdrawal application and relevant documents proving the purpose of the loan to the lender and handle the relevant withdrawal procedures on the bank <u>2</u> working days before the withdrawal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. 🗹 The Borrower has submitted to the Lender the resolution and letter of authorization for the Board of Directors or other competent departments to sign and perform this contract;(Note: This clause is optional. Please check whether the borrower has obtained relevant approval and authorization before signing the contract.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other withdrawal conditions stipulated by law and agreed by both parties

<u> </u>

If the above conditions are not met, the Lender shall have the right to reject the Borrower's withdrawal application, except where the Lender agrees to make the loan.

**Article 6 Time and method of withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall withdraw the money in the following <u>(2)</u> time and method:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)<u> </u> Year<u> </u> month<u> </u>day One time extraction on the day of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the loan shall be cleared <u>On June 22, 2022</u> Within a month

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Withdrawal in installments according to the following time:

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| | |
|:---|:---|
| Time of withdrawal | Amount of withdrawal |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall have the right to reject the Borrower's withdrawal application for the part not used within the aforesaid time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Commitment Fee (If the borrower is a small and micro enterprise, this clause shall be deleted;If the borrower is not a small or micro enterprise, one of the three options should be reserved according to the actual situation, and the other options should be deleted)**

**The Lender provides the promised service for the loan that the Borrower may and does not draw during the promised Service period (from the effective date of this Loan Contract to the drawdown date agreed herein) (hereinafter referred to as the "Undrawn Loan").Upon mutual agreement between the Borrower and the lender, the commitment fee is as follows:**

**☐ The Borrower shall pay a commitment fee for the aforesaid promised services.Specific according to the undrawn loan amount, undrawn days and annual rate<u> </u>% calculated.The specific fee date and calculated actual fee amount shall be separately signed in the Promised Service Agreement during the promised service period.**

**☐ The Borrower shall pay a commitment fee for the aforesaid promised services.It is agreed that the commitment fee is RMB<u> </u>Yuan, and the date of collection is<u> </u> (Note: it can be agreed to be collected in one time or in installments. For those charged in installments, please fill in the date and amount of the fee in this column).**

**☐ The Lender shall, in accordance with the principle of "fee reduction and interest concession", waive the commitment fee for the aforesaid aforesaid service and assess the amount to be RMB<u> </u> Yuan.**

**Article 7 Payment of loan funds**

1. Loan issuing account

The Borrower shall open the following account with the Lender as the loan issuance account, and the loan issuance and payment shall be handled through this account.**☐** This account is a special account and can only be used for the issuance and payment of borrowed funds, not for the receipt and payment of other funds.(Note: This sentence is optional and should be deleted if not applicable)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment method of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment method of the borrowed funds shall be implemented in accordance with laws and regulations, regulatory provisions and provisions of this Contract. The payment method of the borrowed funds for a single withdrawal shall be confirmed in the withdrawal application. If the lender considers that the payment method of the borrowed funds selected in the withdrawal application does not meet the requirements, it has the right to change the payment method or stop the release and payment of the borrowed funds.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Entrusted payment by the Lender means that the Lender pays the borrowed funds to the Borrower's counterparty conforming to the purpose agreed herein according to the Borrower's withdrawal application and payment authorization.According to the relevant regulations of the CBRC and the internal management regulations of the lender, payment of loan funds meeting one of the following conditions shall be made by the lender as entrusted payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The lender and the borrower establish a new credit business relationship, and the borrower's credit rating does not meet the lender's internal requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. When the withdrawal application is made, the payment object is clear (with a clear account and account name) and the amount of a single payment exceeds <u>0</u> RMB (excluding, the foreign currency is converted at the actual withdrawal day exchange rate)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Other circumstances specified by the Lender or agreed with the Borrower:

<u> </u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Independent payment by the Borrower, that is, after the Lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower pays the loan funds independently to the borrower's counterparty meeting the purpose agreed in the contract.Except for the circumstances stipulated in the preceding paragraph, where the lender is to be entrusted with the payment method, other payment methods of the borrowed funds shall be paid by the borrower independently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Change of payment method.After the submission of the withdrawal application, if the borrower's external payment, credit rating and other conditions change, the borrower shall change the payment method of the borrowed funds if the self-paid borrowed funds meet the conditions agreed in item (2) of Paragraph 2 of this Article.If the payment method is changed or the entrusted payment method changes the amount of external payment, the payment object and the purpose of the loan, etc., the borrower shall provide the lender with a written explanation of the application for the change, and resubmit the application for withdrawal and relevant transaction materials proving the purpose of the funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Specific requirements for entrusted payment of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment entrustment.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall have a clear payment authorization in the withdrawal application, that is, authorizes and entrusts the lender to directly pay the borrowed funds to the Borrower's designated counterparty account conforming to the purposes agreed herein after transferring the borrowed funds into the borrower's designated account. And shall provide the name of the counterparty receiving the payment, counterparty account, payment amount and other necessary payment information.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision of trading information.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall provide the Lender with the information of its lending account and the account of the counterparty and the certification materials proving that the withdrawal conforms to the purposes agreed in the loan contract at each time of withdrawal.The Borrower shall warrant that all information provided to the Lender is true, complete and valid.If the Lender's entrusted payment obligation fails to be completed in time due to inaccurate, inaccurate or incomplete transaction information provided by the Borrower, the Lender shall not assume any responsibility, and the repayment obligation of the Borrower already incurred under this Contract shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The lender's fulfillment of the entrusted payment obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In case of entrusted payment by the Lender, after the borrower submits the payment authorization and relevant transaction materials, the lender shall pay the borrowed funds to the borrower's counterparty through the borrower's account after examination and approval.

B.If the Lender finds through examination that the relevant transaction materials such as the proof of use provided by the Borrower do not conform to provisions hereof or have other defects, it shall have the right to require the Borrower to supplement, replace, explain or resubmit the relevant materials. Before the Borrower submits the relevant transaction materials deemed qualified by the Lender, the Lender shall have the right to refuse the release and payment of the relevant funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Lender is unable to timely pay the borrowed funds to its counterparty in accordance with the payment authorization of the Borrower due to the refund of the bank that opened the counterparty's account, the Lender shall not assume any liability and the repayment obligations of the Borrower already incurred under this Contract shall not be affected.The Borrower hereby authorizes the Lender to freeze the amount returned by the opening bank of the counterparty's account.Under such circumstances, the borrower shall resubmit the payment entrustment, proof of use and other relevant transaction materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower shall not evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Upon the release of the borrowed funds, the Borrower shall, as required by the Lender, promptly provide the records and materials for the use of the borrowed funds, including but not limited to the aforementioned materials <u>copy of payment voucher</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Under any of the following circumstances, the Lender has the right to re-determine the terms of loan issuance and payment or to stop the issuance and payment of loan funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower violates this Contract and evades the entrusted payment by the lender by breaking the whole into pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The credit status of the borrower declines or the profitability of the main business is not strong;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Abnormal use of borrowed funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower fails to provide the use records and materials of the loan funds in time as required by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower pays the borrowed funds in violation of the provisions of this Article.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 8 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower designates the following account as the fund withdrawal account, and the borrower's fund withdrawal shall be entered into this account.The borrower shall provide the information of the funds in and out of the account in time.The lender shall have the right to require the borrower to explain the inflow and outflow of large and abnormal funds in the capital return account and to supervise the account.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract according to the following repayment plan: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All loans under this contract shall be repaid on the expiration date of the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the loan under this Contract according to the following repayment plan:

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| | |
|:---|:---|
| Time of repayment | Amount of repayment |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2023.06.21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;￥3,000,000.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other repayment plans:<u> </u>

If the borrower wants to change the above repayment plan, it shall submit a written application to the Lender before <u>5</u> banking day, and the change of the repayment plan shall be confirmed by both parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Unless otherwise agreed by the parties, if the Borrower defaults on the principal and interest of the loan and the expense of realizing the claim, the Lender shall have the right to determine the sequence of repayment of the principal or interest and the expense of realizing the claim;In the case of installment repayment, if there are multiple loans due or overdue under this contract, the Lender has the right to determine the order of repayment of a certain repayment by the Borrower;Where there are multiple expired loan contracts between the borrower and the lender, the lender has the right to determine the order of contract performance by the borrower for each repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Unless otherwise agreed by both parties, the borrower may repay the loan in advance, but shall notify the lender in writing <u>30</u> banking day in advance.he amount of the prepayment is used first to repay the last loan due, in reverse order.**

**For borrowings with single compound interest, such as pre-repayment or partial pre-repayment, the interest corresponding to the pre-repayment principal should be settled in one lump sum.**

**☐ The Lender shall have the right to charge liquidated damages for early repayment according to the<u> </u>standard of the early repayment portion (Note: This clause is optional. If it is not applicable or the borrower is a small and micro enterprise, it shall be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower shall repay In the <u>first</u> way below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower shall deposit the full amount of funds in the following repayment account for repayment not later than <u>5</u> banking working day prior to the maturity of each principal and interest, and the Lender shall have the right to deduct the collection from the account voluntarily on the due date of each principal and interest.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other repayment methods agreed by both parties:

**Article 9 Guarantee** (Note: Fill in optionally according to the actual conditions, and delete the inapplicable clauses)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The debt hereunder shall be guaranteed in the following ways:<u> </u>

**☐** No guarantee.

☐ This contract belongs to the guarantor <u>Yinglai Wang,Yujun Xiao</u> is the main contract under the No.<u>Z66X2022034</u> ☐ Maximum Amount Guarantee Contract /☐ Maximum Amount Mortgage Contract /☐ Maximum Amount Pledge Contract signed between the Guarantor and the Lender, and the guarantor shall provide the maximum amount guarantee.

**☐ (Other forms of guarantee)<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event that the Borrower or the Guarantor may affect its ability to perform the Agreement, or that the Guarantee contract becomes invalid, cancelled or rescinded, or that the Borrower or the Guarantor's financial situation deteriorates or becomes involved in major litigation or arbitration cases, or that the Borrower or the Guarantor's accounts are closed or for other reasons may affect its ability to perform the Agreement, If the guarantor breaches the guarantee contract or any other contract between the guarantor and the Lender, or the guarantee is devalued, damaged, lost or sealed, resulting in the weakening or loss of the value of the guarantee, the Lender shall have the right to require and the Borrower shall have the obligation to provide a new guarantee or replace the guarantor to guarantee the obligations hereunder.

**Article 10 Invoicing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may apply to the Lender for issuing a VAT invoice (☐ special VAT invoice /☐ general VAT invoice) after the Lender has confirmed receipt of the payment, and the Lender shall issue a VAT invoice to the Borrower after receiving the Borrower's application for issuing a VAT invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower may apply for the issuance of VAT invoice to the corresponding business handling agency or other agencies designated by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower shall confirm that the payer, the contract signer and the buyer listed in the VAT invoice are the same tax payer.In case of any inconsistency, the Borrower cannot enter the account or deduct the input tax according to law, the relevant loss shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the borrower loses the invoice after obtaining it, the Lender need not issue the VAT invoice to the borrower again.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the lender provides discount to the borrower through negotiation, the VAT invoice amount shall be subject to the discounted price.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender will not provide a VAT invoice if the Lender provides services to the Borrower free of charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. When the Lender issues a VAT invoice to the Borrower, the Borrower shall check the invoice information in time.If the invoice information is wrong, the borrower shall promptly apply to the lender for a new VAT invoice.

**Article 11 Declarations and undertakings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. The Borrower declares as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower is legally registered and exists, and has the full capacity for civil rights and conduct necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The signing and performance of this Contract is based on the true intention of the Borrower, which has been legally and effectively authorized in accordance with its articles of association or other internal management documents, and will not violate any agreement, contract or other legal documents binding on the Borrower;The Borrower has or will obtain all relevant approvals, permits, filings or registrations necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) All documents, financial statements, vouchers and other materials provided by the Borrower to the Lender under this Contract are true, complete, accurate and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The transaction background of the borrower's application for subordination business with the lender is true and legal, does not involve money laundering, terrorist financing, WMD proliferation financing, tax evasion, fraud and other illegal purposes, and does not violate the provisions of the United Nations, China and other applicable sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower does not conceal from the Lender events that may affect its and the guarantor's financial position and ability to perform the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower and the loan project meet the national environmental protection standards, and the enterprises and projects with serious energy consumption and pollution problems and ineffective rectification are not subject to the risk of energy consumption and pollution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The purpose of borrowing and the source of repayment are genuine and legal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Other matters declared by the Borrower:<u> </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The Borrower undertakes as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Submit its financial statements (including but not limited to annual reports, quarterly reports and monthly reports) and other relevant materials to the Lender on a regular or timely basis as required by the Lender;(a) The Borrower ensures that it continues to meet the following financial criteria:<u>Keep profitable</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower has entered into or will enter into a counter-security agreement or similar agreement with the guarantor of this Contract in respect of its security obligations, such agreement will not prejudice any of the Lender's rights under this Contract;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accept the lender's credit inspection and supervision, and give sufficient assistance and cooperation;Where the borrower makes the payment independently, it shall, as required by the lender, regularly summarize and report the payment and use of the loan funds. The specific time for the report is: <u>On the 15th of each month</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In the event of merger, division, capital reduction, equity transfer, foreign investment, substantial increase in debt financing, transfer of material assets and creditor's rights and other matters that may adversely affect the borrower's ability to repay the debt, the borrower shall obtain the written consent of the Lender in advance;

The Borrower shall promptly notify the Lender of any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Change
 of articles of association, business scope, registered capital and legal representative of
 the borrower or guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Change
 the mode of operation in any form such as joint venture, joint venture, cooperation, contract
 operation, reorganization, restructuring and planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Is
 involved in major litigation or arbitration cases, or property or security is sealed, seized
 or placed in custody, or new security is placed on the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Being
 closed down, dissolved, liquidated, suspended for rectification, being revoked, having its
 business license revoked, or (being) applying for bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Shareholders,
 directors and current senior managers are involved in major cases or economic disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The
 borrower defaults under any other contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Operating
 difficulties or deterioration of its financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The order of repayment of the borrower's debts to the lender is higher than that of the borrower's shareholders, and no less than that of other creditors;

☐ Moreover, the Borrower shall not repay the loan from the shareholder of the Borrower before the effective date of this Contract and the completion of the repayment of the principal, interest and related expenses of the loan hereunder;(Note: This sentence is optional and should be deleted if not applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) ☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of the previous fiscal year, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower does not distribute dividends and bonuses to the shareholders in any form;

☐ The Borrower shall not distribute dividends and bonuses to the shareholders in any form from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ The dividend and bonus distributed by the Borrower to the shareholders shall not exceed % of the Borrower's after-tax profit from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of previous fiscal years, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower shall not distribute dividends and bonuses to the shareholders in any form.Where dividends and bonuses can be distributed to shareholders in accordance with the provisions of this paragraph, the dividend and bonus distributed to shareholders by the Borrower shall not exceed % of the Borrower's after-tax profit;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower does not dispose of its own assets in a manner that reduces its solvency.It undertakes that the total amount of its foreign guarantee shall not be more than <u>2</u> times of its own net assets, and the total amount of its foreign guarantee and the amount of its single guarantee shall not exceed the limit prescribed by its articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Except for the purposes agreed herein or with the consent of the Lender, the Borrower shall not transfer the loan funds hereunder to the account of the same name or the account of the affiliated party.

For the transfer of the account of the borrower with the same name or the account of a related party, the Borrower shall provide the corresponding supporting materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) ☐ With respect to the loan hereunder, the guarantee conditions, the pricing of the loan interest rate, the order of repayment and other loan conditions provided by the Borrower to the Lender shall not be lower than those now or in the future provided to any other financial institution;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) ☐ Go through the foreign exchange loan registration, principal and interest repayment approval and other procedures at the SAFE in time;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The lender shall have the right to collect the loan in advance according to the borrower's capital collection situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) ☐ The Borrower shall submit its environmental and social risk report to the Lender.The Borrower represents and warrants to strengthen environmental and social risk management and undertakes to accept supervision by the lender.Any breach of the foregoing by the Borrower shall constitute or be deemed to be a breach under this Agreement, and the Lender may take remedies for breach in accordance with this Agreement;(Note: This clause is optional. According to the CBRC Green Credit Guidelines, if the borrower is a customer with major environmental and social risks, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Cooperate with the lender to conduct due diligence, provide and update information about the Institution and its beneficial owners, and provide background information about the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other commitments of the Borrower:

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 12 Disclosure of related transactions within the Group of the borrower**

The parties agree that <u>1</u> the following clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not one of the group customers identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Commercial Banks Group Customers (the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Group Customers of Commercial Banks (hereinafter referred to as the "Guidelines").The Borrower shall timely report to the Lender the related transactions of more than 10% of its net assets, including the related relationships of the parties to the transaction, the items and nature of the transaction, the amount or corresponding proportion of the transaction, and pricing policies (including transactions with no amount or only a nominal amount).

If the borrower is under any of the following circumstances, the lender has the right to unilaterally decide to stop paying the loan that the borrower has not yet used and to recover part or all of the principal and interest of the loan in advance: using a false contract with a related party to discount or pledge the creditor's rights such as notes receivable and accounts receivable with no actual trade background to the bank to extract bank funds or grant credit;Major merger, acquisition and reorganization, which the lender considers may affect the security of the loan;Intentionally evading and abolishing bank creditor's rights through affiliated transactions;Other circumstances as stipulated in Article 18 of the Guidelines.

**Article 13 Event of breach and treatment**

**Any of the following shall constitute or be deemed to be an event of default by the Borrower under this Contract:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower fails to perform its obligations of payment and repayment to the Lender as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to use the loan funds in the way agreed herein or fails to use the obtained funds for the purposes agreed herein;Or the borrower uses the loan funds to transfer loans or purchase other financial products for arbitrage;Or the borrower unlawfully added the hidden debt of local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower's statements in this Contract are untrue or violate its commitments in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower fails to provide a new guarantee or replace the guarantor in accordance with the provisions of this Contract if the Lender considers that the occurrence of any situation as stipulated in Article 11 (2) (4) may affect the financial condition and performance ability of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower's credit status declines, or the borrower's profitability, solvency, operating capacity, cash flow and other financial indicators deteriorate, breaking the index constraints agreed herein or other financial agreements;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ☐ The Borrower defaults under other contracts with the Lender or other institutions of Bank of China Limited;

☐ The Borrower defaults under other contracts with the lender or other institutions of Bank of China Limited;Event of default under the credit granting contract between the borrower and other financial institutions;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The guarantor breaches the terms of the guarantee contract, or breaches any other contract between the guarantor and the lender or other institutions of Bank of China Limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower terminates its business or is dissolved, revoked or bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower is involved or may be involved in major economic disputes, lawsuits or arbitration, or its assets are sealed up, seized or enforced, or its assets are investigated or punished by judicial authorities, tax authorities, industry and commerce authorities or other administrative authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower's major investors and key management personnel have abnormal changes, disappeared or been investigated or restricted by judicial authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. When the Lender reviews the financial position and performance ability of the Borrower annually (i.e., every year after the effective date of this Contract), it finds that there are circumstances that may affect the financial position and performance ability of the Borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The designated fund return account has large amount and abnormal capital inflow and outflow, and the borrower cannot provide explanatory materials approved by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. ☐The construction of energy-saving projects is seriously delayed, energy-saving technology and equipment have serious defects, the main facilities or equipment stop and reduce production, resulting in a substantial decline in energy consumption load, the actual energy saving is significantly lower than the predicted amount, the energy saving income cannot be timely returned to the designated account, the borrower participates in private high-interest lending, without the consent of the lender to guarantee or borrow new debt, and the main financial indicators seriously deteriorate;(Note: This clause is optional. When conducting energy efficiency credit business in accordance with the Energy Efficiency Credit Guidelines, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Borrower refuses to cooperate with the Lender in carrying out due diligence, the Borrower or its transaction/counterparty is suspected of money laundering, terrorist financing, nuclear weapons proliferation, violation of applicable sanctions or other violations, or the Borrower or the guarantor is included in the United Nations, China and other applicable sanctions list or scope of sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Borrower breaches other provisions of this Contract concerning the rights and obligations of the parties.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**In case of the occurrence of the event of default specified in the preceding paragraph, the Lender shall have the right to take the following measures separately or simultaneously depending on the specific circumstances:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the borrower and guarantor to correct the breach within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reduce, suspend, cancel or terminate the credit line to the Borrower in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Suspend or terminate, in whole or in part, the acceptance of the Borrower's withdrawal and other business applications under this Contract and other contracts between the Borrower and the Lender;To suspend, cancel, or terminate the issuance, payment and handling of loans and trade financing that have not yet been issued in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Declare that all or part of the outstanding loan/trade finance principal and interest and other amounts payable under this Contract and other contracts between the Borrower and the Lender are immediately due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Terminate or rescind this Contract and terminate or rescind in whole or in part other contracts between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Require the Borrower to compensate the losses caused to the Lender by its breach of contract, including but not limited to the loss of legal costs, attorney's fees, notary fees, enforcement fees and other related expenses caused by the realization of the creditor's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The amount of the Borrower in the accounts opened by the Lender and other institutions of Bank of China Limited shall be deducted to pay off all or part of the Borrower's debts to the Lender under this Contract.The amount not due in the account is deemed to be due early.If the currency of the account is different from the Lender's valuation currency, it shall be converted at the Lender's applicable foreign exchange rate at the time of collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Exercise of guarantee real right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Require the guarantor to undertake the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Such other measures as the Lender deems necessary and possible.

**Article 14 Reservation of Rights**

If either party fails to exercise any or all of its rights under this Contract or requires the other party to perform or assume any or all of its obligations and responsibilities, it shall not constitute a waiver of such rights or an exemption from such obligations and responsibilities.

Any tolerance, extension or postponement by either party to the other party of its rights hereunder shall not affect any of its rights under this Contract, laws and regulations, nor shall it be deemed as a waiver of such rights.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 15 Alteration, modification and termination**

This Contract may be modified or modified in writing upon mutual agreement of both parties. Any modification or modification shall form an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated until all rights and obligations hereunder have been fulfilled.

Unless otherwise provided by laws or regulations or agreed by the parties, the invalidity of any provision of this Contract shall not affect the legal effect of the other provisions.

**Article 16 Application of law and dispute settlement**

This contract shall be governed by the laws of the People's Republic of China.

After the Contract comes into force, all disputes arising out of or in connection with the execution or performance of this Contract shall be settled by the parties through negotiation.**If no agreement can be reached through negotiation, either party may adopt the <u>two</u> of the following methods:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Arbitration.submit

☐ China International Economic and Trade Arbitration Commission

☐ Beijing Arbitration Commission (Beijing International Arbitration Center)

☐<u> </u>Arbitration Commission

 <u>/</u> (place of arbitration) In accordance with the Commission's arbitration rules in effect at the time of submission of the application for arbitration.The arbitral award shall be final and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Lawsuits.The parties may choose the Chinese court through consultation to settle the matter through litigation.

☐ Bring a suit in accordance with law to the people's court of the place where the lender or any other Bank of China Limited institution exercising its rights and obligations in accordance with this Contract or Individual Agreement has its domicile.

☐ Bring legal proceedings to the International Commercial Tribunal of the Supreme People's Court (international commercial disputes with a subject matter of more than 300 million yuan).

☐ Bring a suit to the people's court having jurisdiction in accordance with the law.

During the dispute settlement period, if the dispute does not affect the performance of the other terms of this Contract, the other terms shall continue to be performed.

**Article 17 Appendix**

The following attachments and other attachments confirmed by both parties shall form an integral part of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Withdrawal application form (format);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notification Letter of Annualized Loan Interest Rate (format);

3.....

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 18 Other Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not assign any rights and obligations hereunder to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the Lender is required to entrust other institutions of Bank of China Limited to perform the rights and obligations hereunder due to business needs, or assign the loan business hereunder to other institutions of Bank of China Limited to undertake and manage, the Borrower agrees.Any other institution of Bank of China Limited authorized by the Lender or any other institution of Bank of China Limited undertaking the loan business hereunder shall have the right to exercise all rights hereunder, and shall have the right to file a lawsuit in the court in the name of such institution, submit the dispute to an arbitration institution or apply for enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without affecting other provisions hereof, this Contract shall be legally binding on both parties and their successors and assigns in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unless otherwise agreed, both parties shall designate the domicile set forth in this Contract as the correspondence and contact address and the delivery address confirmed by both parties to be valid.The applicable scope of service address includes the delivery of various notices, contracts and other documents during the performance of the contract between the parties, as well as relevant documents and legal documents in the event of disputes arising from this contract, and the first instance, second instance, retrial and execution procedures after the disputes enter into arbitration and civil proceedings.

In case of any change of the above address, the changing party shall inform the other party of the changed address in writing <u>two</u> working day in advance.In arbitration and civil proceedings, either party shall perform the obligation of serving notice of the change of address to the arbitration institution or the court when the address is changed.If either party fails to perform the notification obligation in the foregoing manner, the address for service confirmed herein shall still be deemed to be the valid address for service.

If the legal document is not actually received by one party due to inaccurate address provided or confirmed by one party, failure to notify the other party and the court in time after the change of the address of service, or the designated receiver's refusal to sign for it, the date of delivery of the legal document shall be deemed as the date of service.In the case of direct service, the date on which the Courier records the information on the acknowledgement of service on the spot shall be deemed as the date of service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Transactions hereunder shall be conducted on the basis of their respective independent interests.If other parties to the transaction constitute affiliates or associates of the Lender in accordance with relevant laws, regulations and regulatory requirements, none of them will seek to use such affiliates to affect the fairness of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The titles and business names in this Contract are for convenience only and shall not be used to interpret the contents of the terms and the rights and obligations of the parties.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. The Lender shall have the right to provide the information related to this Contract and other relevant information of the Borrower to the Financial Credit Information Basic Database and other credit information databases established according to law in accordance with relevant laws, regulations and regulatory provisions for the inquiry and use by properly qualified institutions or individuals according to law.The Lender also has the right, for the purpose of the conclusion and performance of this Contract, to inquire the relevant information of the Borrower through the Basic financial credit Information database and other legally established credit information database.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. In case of legal holidays, the withdrawal date and repayment date shall be postponed to the first working day after the holidays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If the Lender fails to perform this Agreement or fails to perform as agreed herein due to changes in laws, regulations, regulatory provisions or requirements of regulatory authorities, the Lender shall have the right to terminate or alter the performance of this Agreement and the individual Agreements hereunder in accordance with changes in laws, regulations, regulatory provisions or requirements of regulatory authorities.If the Lender is unable to perform or perform as agreed herein due to termination or alteration of this Agreement for such reasons, the Lender shall be exempted from liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. The Borrower may consult and complain about the Contract and the business and charges hereunder through the contact number of the lender listed herein.**

**☐ 11. The Borrower and the lender agree to perform compulsory notarization through consultation. Within <u>/</u> working days after the signing of this Contract, the Borrower and the lender shall go to the notary office to perform compulsory notarization.The compulsory notary fee shall be borne by the borrower <u>/</u> and the lender <u>/</u> . If the borrower is a small and micro enterprise, the compulsory notary fee shall be borne by the lender.**

**If the borrower fails to perform or improperly perform the repayment obligations stipulated in this Contract after performing the compulsory notarization in accordance with this Contract, the lender may apply to the notary office for a certificate of execution and apply to the people's court with jurisdiction for compulsory execution, and the borrower is willing to accept compulsory execution.**

(Note: This clause is optional, if not applicable, it needs to be deleted)

**Article 19 Effectiveness of a Contract**

This contract shall come into force upon being signed and sealed by the legal representatives (responsible persons) or authorized signatories of both parties.

This contract is made in duplicate with each party holding the same legal effect.

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|:---|:---|
| **Borrower:<u> </u>** | **Lender: <u>Bank of China Limited,Wuxi Branch</u>** |
| **Authorized Signatory:**<u> </u> | **Authorized signatory:<u> </u>** |
| **Date of signing:<u>On June 22, 2022</u>** | **Date of signing: <u>On June 22, 2022</u>** |

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D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan <br> business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign <br> currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Attached is the notification letter of the annualized interest rate of the loan**

No :

To: __________/_________ (Borrower)

1. Our bank and your company have signed the Working Capital Loan Contract numbered ______/____.Under the aforementioned contract, our bank, as the lender, provides the loan to your company at an annualized interest rate of ___/___.The annualized rate of interest (☐ simple /☐ compound (optional)) consists of:

(1) The loan interest calculated according to the loan interest rate stipulated in Paragraph 1 of Article 4 of the aforesaid Contract;

(2) All expenses directly related to the loan as stipulated in Article ______/__ of the aforesaid Contract;(Delete if not applicable)

(3) All kinds of charges directly related to the loan agreed in the _______/__ (number: __/___) separately signed by your company and our bank.(Delete if not applicable)

2. This notification letter, as an attachment to the aforementioned contract, constitutes an integral part and has the same legal effect as the aforementioned contract. The provisions of the aforementioned contract shall apply to the matters not agreed herein.

Lender: _______________/_____________________

Authorized signatory: _______________/_____________________

Date of signing: _______________/_____________________

## Exhibit 10.6

**Exhibit 10.6**

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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**Important Tips**

According to the relevant regulations of the China Banking and Insurance Regulatory Commission and the Bank, the following behaviors are strictly prohibited by the Bank's employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Borrow from customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Provide guarantee, verification or matchmaking for private lending;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Part-time job in an enterprise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Borrowing transitional funds from clients' accounts, or using my own account as transitional funds for clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Keep cards, passbook, passwords and important vouchers on behalf of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Illegal collection from customers, forced binding or improper tie-in;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Accept or ask for improper benefits.

To protect the rights and interests of our customers, the Bank solemnly reminds us as follows:

**All the above items are prohibited by the Bank. Any person engaged in the above activities for whatever reason is his personal behavior and does not represent the will of the Bank. Please be careful.**

At the same time, Bank of Nanjing urges customers to supervise our staff. If any of the above situations are found, please report them to the Bank via email cxjb@njcb.com.cn or call 025-86775624. The Bank will maintain strict confidentiality.

 **Ba1 RMB working capital loan contract**

**(Applicable to RMB working capital loans of legal and unincorporated organizations)**

**Number: <u>Ba154202207060015</u>**

**Lender (Party A) : Bank of Nanjing Co., LTD., <u>Wuxi Branch</u>**

**Borrower (Party B) : <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>**

Party B applies for RMB working capital loan to Party A, and Party A agrees to grant the loan.In order to clarify the rights and obligations of both parties and safeguard the legitimate rights and interests of both parties, Party A and Party B hereby enter into this contract through consultation in accordance with relevant laws, regulations and rules for the purpose of compliance and execution.

**Article 1 Representations and warranties**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Representations and warranties of Party A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A is a banking institution legally established and qualified to operate the business hereunder.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) The signing and performance of this Contract by Party A has been approved by the competent decision maker or superior department as stipulated by law or its articles of association, and has obtained necessary, sufficient and legal authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party A's signing of this Contract is an expression of its true intention, and this Contract is legally binding on Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Representations and warranties of Party B

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B undertakes that it is a legally established and validly existing legal person or unincorporated organization, and that the signing of this Contract is the expression of its true intention and is fully and fully binding on it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Party B has obtained the approval or authorization required by its articles of association or other organizational documents for signing and performing this Contract. Party B's signing and performing this Contract does not violate applicable laws and regulations or any agreements, contracts or other legal documents binding on Party B. In addition, Party B has obtained all relevant approvals, permits, records or registrations necessary to sign and perform this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Party B's application to Party A to handle the business hereunder is true, legal and valid, and does not involve money laundering, terrorism or any other illegal purpose, nor does it violate any applicable laws, regulations and international treaties concerning economic sanctions, trade embargoes and trade controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(IV) Party B undertakes that its production and operation are legal and compliant, that it has sustainable operation capacity, that it has legal sources of repayment, that it has good credit standing and that it has no bad credit record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(V) Party B undertakes to abide by the principle of good faith, and all materials provided to Party A are true, legal, complete and valid, without any errors, omissions, concealment or misleading statements inconsistent with the facts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VI) Party B undertakes to timely notify Party A in writing of any adverse event affecting its solvency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Party B has read all contents of "Important Tips" on the first page of this Contract, understands and accepts the risks prompted by Party A, and is willing to actively assist Party A in supervising the behaviors of Party A's employees.Party B undertakes not to have any improper interest relationship with any individual employee of Party A, such as fund exchange or account borrowing, and voluntarily accept the supervision of Party A.If Party B violates the above commitments, Party A shall have the right to hold Party B liable.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(VIII) Party B undertakes that during the term of the loan hereunder until the principal and interest of the loan are repaid in full, Party B shall fully meet and strictly abide by the following financial targets:

1, <u>/</u> ; 2. <u>/</u> ;

3, <u>/</u> ; 4. <u>/</u> ;

5, <u>/</u> ; 6. <u>/</u> ;

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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**Article 2 Nature of Loan**

The loan under this contract is made in the <u>third</u> of the following ways:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Borrowings within the non-credit limit and the maximum credit limit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) For loans within the credit line, the Credit Contract number is <u>/</u> .This contract is the specific business contract under the Credit Extension Contract, and is an effective part of the Credit Extension Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) For loans within the maximum amount of claims, the number of the Contract for the Maximum Amount of Claims/Contract for the Maximum Amount of Claims is <u>A0454202206140002</u>.This contract is a specific business contract under the above Contract of Maximum Amount of Creditor's Rights/Contract of Maximum Amount of Creditor's Rights, and an effective part of the above Contract of Maximum Amount of Creditor's Rights/Contract of Maximum Amount of Creditor's Rights.

**Article 3 Loan amount**

**The loan amount under this contract is(in words) <u>three million yuan only</u> (lower case)<u>￥3,000,000.00</u>.**

**Article 4 Purposes of Loan**

**The loan purpose under this contract is the <u>first</u> of the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Working capital loan, to meet the working capital needs of Party B in production and operation, specifically to <u>pay the installation fee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) To repay old and new loans for the purpose of returning loans under <u>/</u> numbered <u>/</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) <u>/</u> .

Party B undertakes to use the loan hereunder in strict accordance with the purposes agreed herein and shall not use the loan hereunder in any form for equity investment, stock, futures and other speculative business activities or business projects explicitly prohibited by laws and regulations of other countries or other purposes that do not conform to laws and regulations, relevant national policies and Party A's regulations and requirements.

**Article 5 Term of Loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. The loan period hereunder shall be from <u>July 6, 2022</u> to <u>July 5, 2023</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. In case of any discrepancy between the start date of the loan period stipulated in the preceding paragraph and the IOU, the actual date of the loan set forth in the IOU shall prevail, and the maturity date stipulated in paragraph 1 of this Article shall be adjusted accordingly;If the loan is made in installments, the starting date of the loan period shall be the actual loan date listed in the IOU at the time of each loan, and the maturity date shall be no later than the maturity date determined at the time of the first loan and the IOU shall be the record.

The IOU is an integral part of this Contract and has the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. If Party B needs to extend the loan term, it shall submit a written application to Party A 10 days before the loan is due, and Party A shall review and decide whether to extend the loan term.If Party A approves the extension after examination, it shall sign the corresponding extension repayment agreement.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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**Article 6 Interest rate on loan, penalty interest rate, calculation and settlement of interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Interest rate of loan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) The loan interest rate hereunder shall be the annual interest rate, which shall be calculated by simple interest method. The interest rate shall be calculated by adding/subtraction of floating points on the basis of the quoted interest rate of <u>1-year</u> (1-year / 5-year or more) loan market issued by the National Inter bank Lending Center authorized by the People's Bank of China (hereinafter referred to as "LPR"), which shall be the first of the following:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Fixed interest rate, that is, the interest rate is <u>3.70000</u> %, the fixed interest rate is determined on the basis of <u>plus</u> (plus/minus) 0% (i.e., floating point) of the LPR <u>3.7</u> % published on <u>June 20, 2022.</u>The interest rate remains unchanged for the duration of the loan;If the loan is issued in installments, the interest rate of each loan issued shall apply to that interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Floating interest rate: the loan interest rate shall be determined by LPR <u>/</u> (plus/minus) <u>/</u> % (i.e., floating point) on the day before the loan issuance date (the calculation formula is R1=R0±n%, where R1 is the loan interest rate, R0 is LPR, and n% is the floating point, i.e., the increase or decrease of percentage points);If the loan is issued in batches, the interest rate shall be determined at the LPR level one day before the date of each loan issuance in accordance with the aforesaid floating rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) Where the interest rate of the loan stipulated in the preceding paragraph is a floating interest rate, during the term of the loan (including after the loan is overdue), in case of any adjustment of LPR, the interest rate of the loan shall be adjusted in the <u>/</u> one of the following ways, provided that the People's Bank of China provides otherwise:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Immediate adjustment, that is, the loan interest rate shall be adjusted according to the newly published LPR and the floating rules stipulated in the preceding paragraph the next day after the LPR adjustment occurs after the loan is issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Fixed day adjustment, that is, the loan rate shall be adjusted on the first day of each <u>/</u> (year/quarter/month) after the loan is issued, and the loan rate shall be adjusted according to the LPR of the day before the loan rate adjustment and the floating rules stipulated in the preceding paragraph;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) Adjustment of the corresponding date, that is, adjustment on the corresponding date of the loan issuance date of each year (if there is no corresponding date in the current year, it is the end of the corresponding month of the current year), and the loan interest rate shall be adjusted according to the LPR of the day before the loan interest rate adjustment and the floating rules agreed in the preceding paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The "Loan release date" herein refers to the date on which Party A actually releases the loan to the special loan release account designated by Party B under this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The "Loan interest Adjustment Day" mentioned in this Contract means the date on which the loan interest rate is adjusted in the manner agreed above in case of LPR adjustment during the term of the loan (including the overdue loan).

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Penalty interest rate**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) If Party B fails to use the loan for the purpose agreed herein, the penalty interest rate shall be 100% above the loan interest rate agreed herein.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) The penalty interest rate for overdue loan under this contract shall be 50% more than the loan interest rate agreed in this contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) For the loan overdue or not used for the purpose specified in this Contract, the interest shall be charged at the penalty interest rate from the date when the loan is overdue or not used for the purpose specified in this Contract until the principal and interest are repaid.Interest and penalty interest that cannot be paid on time shall be compounded at the penalty interest rate.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Interest accrual

The interest on the loan shall be calculated from the date of issuance of the loan.The loan under this contract is subject to daily interest rate, daily interest rate = monthly interest rate /30, monthly interest rate = annual interest rate /12.If Party B fails to pay the interest on schedule, the interest will be compounded from the next day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Interest settlement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) For loans with a fixed interest rate, the interest shall be calculated at the agreed rate of interest at the time of settlement.For loans subject to floating interest rates, the interest shall be calculated at the interest rate determined in the current period of each floating period;If there are multiple interest rate fluctuations in a single interest period, the interest of each floating period shall be calculated first, and the interest of each floating period shall be calculated by adding up the interest of each floating period on the settlement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) The loan under this contract shall be settled <u>monthly</u> (monthly/quarterly),the interest settlement date is fixed as the 20th day of each <u>month</u> (month/quarter).

**Article 7 Loan Guarantee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. For the debts hereunder, including but not limited to the loan principal, interest (including compound interest and penalty interest, the same below), liquidated damages, damages, expenses incurred by Party A to realize the debt and other amounts payable by Party B as agreed herein, the following guarantors shall provide Party A with one or more of the following guarantees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) <u>Yujun Xiao and Yinglai Wang</u> shall, as the guarantor, provide the joint and several liability guarantee and sign the corresponding guarantee contract with Party A or the guarantor shall issue the relevant guarantee certificate and letter of commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) As the mortgagor, <u>/</u> shall provide mortgage guarantee with the property owned or legally entitled to dispose of the mortgagor, and sign the corresponding mortgage contract with Party A or issue the relevant guarantee letter by the mortgagor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) As the pledgor, *<u>/</u>* shall provide the pledge guarantee with the movable property or rights or other legal property owned or legally entitled to dispose of by the pledgor, and sign the corresponding pledge contract with Party A or issue the relevant guarantee letter by the pledgor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the guarantor signs a guarantee contract with Party A or provides a unilateral guarantee promise to guarantee Party B's debts hereunder although it is not listed herein, it shall constitute the guarantor's effective guarantee for the debts hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If there is any change in the guarantee hereunder that is not conducive to the realization of the guarantee of Party A's claims, Party B shall provide other guarantees recognized by Party A as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. "Expenses incurred by Party A to realize the creditor's rights" in this Contract shall include but not limited to attorney's fee, litigation fee, arbitration fee, appraisal fee, property preservation fee, execution fee, notary fee, evaluation fee, auction fee, notice fee, delivery fee, travel expense, insurance premium, storage fee, inquiry fee, deposit fee, transfer fee and tax fee, remittance fee, storage guarantee property and realization The expense of security interest, etc.**

**Article 8 Loan issuance and payment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Preconditions for loan issuance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party A may issue the loan if the following conditions are met:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract has come into force.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B has completed the approval, registration, delivery and other procedures related to the loan hereunder in accordance with relevant laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If there is a guarantee in this Contract, the guarantee contract meeting Party A's requirements has come into force and the guarantee right has been legally established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B shall submit to Party A a withdrawal application in written form or by digital message in accordance with Party A's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The purpose for which Party B applies for the withdrawal shall comply with provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Party B shall submit the following documents to Party A if the withdrawal applied for by Party B shall be paid by the trustee according to the Contract:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Authentic, complete and valid payment application and payment authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Original documents or copies stamped with Party B's official seal for the purpose of the withdrawal, including but not limited to the transaction contract, goods documents, joint visa, payment documents, certificates of the replaced financing, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other materials required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. If the withdrawal applied by Party B is made by independent payment as agreed herein, Party B shall submit the materials required by Party A to Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The covenants, warranties and representations made by Party B herein are continuously, truthfully and effectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Party B does not have any breach that has occurred and continues to occur, and the loan to be drawn will not cause any breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Party B does not have any events or circumstances that have a material adverse impact on Party A's claims.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Other preconditions agreed by the parties: <u>/</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Party B acknowledges and accepts that Party A has the right to adjust, modify and supplement the preconditions of loan issuance hereunder in accordance with laws, regulations and rules in light of changes in Party B's credit, changes in the guarantee conditions hereunder and changes in relevant laws, regulations and market.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. Withdrawal application

Party B shall submit a written withdrawal application as required by Party A to Party A at least five banking days in advance (see the appendix hereto for the style).The withdrawal application shall state the withdrawal date and amount, and the withdrawal date shall be Party A's working day. The sum of the withdrawal amount and the loan amount issued shall not exceed the loan amount in this contract; otherwise, Party A has the right to refuse to issue the loan.

The written withdrawal application signed and submitted by Party B is irrevocable, provided that if Party B submits a new withdrawal application to Party A before Party A actually makes the payment, the earlier withdrawal application shall become invalid and the later withdrawal application shall prevail, which shall still meet the requirements of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. Special account for loan issuance

Party B irrevocably authorizes Party A to transfer the loan hereunder to the following special loan issuance account, which means that Party A has fulfilled its obligation to issue the loan to Party B in accordance with the agreement.

Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

Party A has the right to monitor the above accounts, and Party B has the obligation to accept and cooperate with Party A to monitor the above accounts.

If Party A requires Party A to issue an IOU for the loan under this Contract, Party B shall issue the IOU on time as required by Party A, which is an integral part of this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Loan payment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B shall pay the loan under this contract in the <u>first</u> way of the following :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment by trustee shall be adopted in all cases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) All payments shall be made independently;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Entrusted payment shall be adopted for a single amount of funds exceeding <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>/</u> .

"Entrusted payment" in this contract means that Party A, based on Party B's withdrawal application and payment authorization, pays the loan to Party B's transaction object conforming to the purpose agreed in this Contract through a special account issued by the loan.Independent payment means that Party A shall, according to Party B's withdrawal application, release the borrowed funds to the above-mentioned special account for the issuance of the borrowed funds, and Party B shall independently pay the borrowed funds to Party B's transaction objects conforming to the purposes agreed herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) In case of entrusted payment, Party B shall submit to Party A a true, complete and valid application for payment and a business contract corresponding to the purpose of the loan hereunder and other supporting materials. After Party A's examination and approval, the borrowed funds shall be paid to Party B's transaction partner through the special account for the loan issued above.If Party B fails to submit the above documents as required or the payment application is not in line with the loan purpose agreed in the contract, Party A shall have the right to refuse Party B's fund payment.

In the case of independent payment, Party B shall regularly summarize and report to Party A the payment and use of the borrowed funds, and Party A shall have the right to check whether the loan payment conforms to the purposes agreed herein by means of account analysis, voucher inspection or on-site investigation.

**Article 9 Supervision of fund return accounts**

Party B shall open or designate the following special fund withdrawal account with Party A and provide Party A with the information of the funds in and out of the account in a timely manner.Party A shall have the right to supervise the account, and Party B shall actively cooperate with Party A to check the flow of funds in and out of the account and provide relevant information as required by Party A.

Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name:<u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

Party B undertakes and irrevocably authorizes Party A to withdraw the loan under this contract in advance according to Party B's fund collection situation.

**Article 10 Repayment of the loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B shall pay the interest due to Party A on the settlement date.The first Coupon Payment date is the first interest settlement day after the loan issuance.Interest follows capital at maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B shall repay the loan principal in accordance with the <u>first</u> term of the following :

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The principal shall be repaid once due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the principal in installments. The principal repayment plan is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>/</u> year <u>/</u> month <u>/</u> day <u>/</u> thousand yuan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>/</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall, prior to the repayment date agreed herein, prepare sufficient amount due for the current period in the following repayment account opened by Party A and irrevocably authorize Party A to deduct the corresponding amount from the repayment account to pay off the principal and interest of the loan hereunder.**If the loan is due on a non-banking working day, it will be postponed to the next banking working day.**

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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Bank of deposit: <u>Bank of Nanjing, Wuxi Branch</u>

Account Name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u>

Account Number: <u>0401210000002160</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iv. If Party B fails to perform its obligations as stipulated in the preceding paragraph, Party A shall have the right to withhold funds from any account opened by Party B in Bank of Nanjing Co., LTD. (including any branch offices) (including but not limited to current deposit account, time deposit account, national debt account, etc.) for the repayment right, and Party B shall bear the losses of interest, service charges, exchange and other losses arising from the withholding.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. If the payment made by Party B is insufficient to pay off all debts hereunder, the payment shall be made in the following order: (I) Expenses incurred by Party A to realize the claims;(II) The loan interest (including penalty interest and compound interest) and other payments due (including but not limited to liquidated damages, damages, etc.) shall be repaid in the order of maturity;(III) Principal of loan.However, Party A has the right to unilaterally decide to change the foregoing payment order.**

**Article 11 Repay the principal in advance**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. If Party B returns the principal in advance, it shall submit a written application to Party A 5 working days in advance, and may repay part or all of the principal in advance with Party A's approval.The interest of Party B's early repayment shall be calculated according to the amount of the repayment, the actual days of the payment and the loan interest rate agreed herein, and the corresponding interest shall be settled at the same time.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. After Party B repays the principal in advance, the loan that has not been repaid shall still be paid at the loan interest rate agreed herein.

**Article 12 Credit inquiry**

Party B irrevocably authorizes Party A to: When Party B applies for the loan under this Contract and during the term of the loan business, Party A shall have the right to inquire, print, save and use Party B's credit report and detailed information in the Financial Credit Information Basic Database of the People's Bank of China and/or the Enterprise Comprehensive Information Management System of Jiangsu Province (hereinafter referred to as the "Credit Information Management Agency"). At the same time, Party B irrevocably authorizes Party A to submit Party B's basic information, credit information, guarantee information and other credit information, including but not limited to Party B's basic information, credit information, guarantee information and other credit information (including the information caused by the failure to timely perform the contract obligations and other breaches that may cause negative impact) to the credit investigation management authority.Party B agrees that if the record is overdue for more than one year, the information will be submitted to the enterprise Credit Information Basic Database of Jiangsu Province through the Comprehensive Information Management System of Jiangsu Province.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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**Party A shall have the right to make an independent judgment on the credit investigation status of Party B. If Party A believes that the credit investigation status of Party B is poor or declining, Party A shall have the right to stop issuing financing to the debtor, withdraw the already issued financing in advance, require Party B to provide other guarantees recognized by Party A or take other measures as agreed in this Contract.**

**Article 13 Anti-money laundering clause**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B undertakes that Party B and its business entities shall not participate in money laundering, terrorist financing, tax evasion, fraud and other illegal and criminal activities, and shall cooperate with Party A to carry out investigation and provide relevant information in a timely manner when anti-money laundering laws and regulations/regulatory inspection and cooperation are required or when Party A finds that Party B's behavior or transaction is abnormal or suspected of violating applicable international sanctions. Ensure the accuracy, authenticity and completeness of relevant information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party B undertakes that the down payment, first installment, repayment funds (including but not limited to monthly payment, scheduled repayment, overdue repayment, etc.), all kinds of deposits (including but not limited to deposits provided by Party B/guarantors or any third party), sources of funds such as fees, sources of credits/pledges provided and purposes of the loan involved in the process of borrowing or repayment from Party A are legal and compliant There is no suspicion of money laundering, terrorist financing, tax evasion, fraud and other illegal activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. If Party B violates any of the above terms, Party A shall immediately stop providing services to Party B without notice and shall be deemed as Party B in breach of the contract, and Party A shall have the right to take such measures as agreed herein, including declaring the loan to expire in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. If Party A finds or has reasonable grounds to suspect Party B of money laundering, terrorist financing, tax evasion and other illegal activities, Party A may take necessary money laundering risk control measures, including but not limited to shutting down the function, suspending the quota, declaring the loan due early and so on. Party B shall be fully liable for the costs incurred by Party A due to the risk control measures taken by Party A or the losses caused to Party A by Party B's failure to perform the anti-money laundering obligations or improper behaviors.

**Article 14 Rights and Obligations of Party B**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Party B shall have the right to ask Party A to issue the loan in accordance with this Contract if it meets the withdrawal conditions agreed herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party A requires Party B to issue a Promissory Note, Party B shall promptly issue it as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party B shall use the loan according to the purpose of the loan agreed herein, shall not misappropriate the loan, shall not use the loan in any form for equity investment, stock, futures and other speculative business activities or business projects explicitly prohibited by laws and regulations of other countries or other purposes that do not conform to laws and regulations, relevant national policies and Party A's regulations and requirements. The principal and interest of the loan and other expenses agreed herein shall be repaid in full and on schedule as agreed herein.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party B undertakes to use the loan in strict accordance with the payment terms agreed herein, actively cooperate with and consciously accept Party A's inspection, supervision and management of the loan payment hereunder, and timely and completely provide the records and materials of the use of the loan funds as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. Party B shall strictly abide by the financial indicators promised by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Without Party A's consent, Party B shall not repay the loan in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vii. Party B shall obtain the consent of Party A before implementing such matters as division, transformation, merger, termination, joint venture, equity transfer, foreign investment and substantial increase of debt financing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Viii. Party B shall actively cooperate with and consciously accept Party A's inspection and supervision of its production and operation, finance and use of loans hereunder, and shall provide relevant financial and accounting information and production and operation information as required by Party A, including but not limited to: If Party B is a listed company or an unlisted public company, it shall provide Party A with the balance sheet, profit and loss statement, cash flow statement and other financial information within 10 working days from the date of information disclosure as required by relevant regulatory regulations;If Party B is any entity other than the foregoing, it shall, within the first 10 working days of the first month of each quarter, provide Party A with the balance sheet at the end of the previous quarter, the income statement (the income and expenditure statement for the public institution) and the cash flow statement at the end of each year.Meanwhile, Party B shall timely provide the financial statements audited by the audit institution approved by Party A every year and shall be responsible for the authenticity, legality, integrity and validity of the materials provided by Party A.

Party B undertakes that all financial and accounting materials provided by it conform to Chinese laws and regulations and truthfully, completely and fairly reflect its financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ix. Party B shall perform the following notification obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) Party B shall notify Party A in writing within 3 days after the occurrence or potential occurrence of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Deterioration of the operating financial condition of Party B or any guarantor, which affects or may affect its debt repayment ability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Party B or any guarantor is involved or may be involved in litigation or arbitration proceedings or other legal disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Party B's name, legal representative (responsible person), domicile and contact telephone number are changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Directors, senior managers and actual controllers of Party B or any guarantor are involved in major cases or economic disputes or cannot be contacted or interviewed;

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Other matters affecting or likely to affect Party B's solvency occur to Party B or any guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) Party B shall notify Party A in writing 30 days prior to the occurrence or potential occurrence of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Division, transformation, merger, termination, joint venture, equity transfer, foreign investment, substantial increase of debt financing, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Change of business scope and registered capital of Party B;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The top five shareholders and actual controllers of Party B's capital contribution or share holding have changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Party B changes the debt terms with other financial institutions or other interest-bearing financing, pays off long-term debts in advance, and pays back large amounts owed to shareholders or investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Party B is unable to pay the debts due, carry out debt restructuring, enter or will enter into closure, rectify, liquidation, bankruptcy, dissolution or similar legal procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) In case of the above events, Party B shall properly carry out the debt repayment hereunder and shall be obliged to provide other guarantees approved by Party A as required by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**X. Party B knows and agrees that if Party B uses Party A's online banking, mobile banking and other electronic channels to conduct business, it shall be deemed to have accepted the relevant business rules of Party A's electronic channels and shall undertake to comply with the relevant business rules of Party A.otherwise, Party B shall be deemed to have breached the contract and Party A shall have the right to take relevant measures as agreed herein.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xi. Party B knows and agrees to strengthen the management of environmental and social risks. Party A has the right to supervise the management of Party B's environmental and social risks and serve as an important basis for the allocation of financing funds. If required by Party A, Party B shall submit an environmental and social risk management report, otherwise Party B will be deemed to have breached the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xii. Party B shall not refuse to perform its obligations hereunder on the grounds of disputes with any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Xiii. Other rights and obligations enjoyed and undertaken in accordance with laws, regulations, rules and other provisions and provisions of this Contract.

**Article 15 Rights and Obligations of Party A**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Subject to the conditions set forth herein, Party A shall issue the loan to Party B in accordance with the provisions hereof, except for the delay not caused by Party A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Party A has the right to withdraw all or part of the principal and interest of the loan in accordance with this Contract or in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party A shall have the right to inspect and supervise Party B's production, operation and financial conditions, and to obtain Party B's plan statistics, financial and accounting statements and other relevant materials. Party A's inspection and supervision may be conducted in a combination of regular and irregular, on-site and off-site manner.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. Party A shall have the right to participate in Party B's financing, asset sale, merger, division, joint-stock transformation, bankruptcy liquidation and other activities, and Party B shall actively cooperate and consciously assist.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**V. If Party B owes Party A several debts (including but not limited to the debts hereunder), and Party B's payment is insufficient to pay off all the debts, Party A shall decide the debts to be paid by Party B, and Party B is aware of and agrees with this.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vi. Other rights and obligations to be enjoyed and undertaken in accordance with laws, regulations, rules and other provisions and provisions of this Contract.

**★★Article 16 Handling of breach of contract and events affecting the security of Party A's creditor's rights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. Any of the following circumstances shall constitute Party B's breach under this Contract or affect the security of Party A's creditor's rights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) If Party B fails to use the loan according to the purpose agreed herein, it misappropriates the funds or uses the funds to engage in illegal or illegal transactions;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Party B fails to pay the loan funds in the manner agreed herein or avoids the entrusted payment in any form;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) Party B fails to pay off any financing principal, interest (including penalty interest and compound interest), expenses or other funds as agreed herein;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IV) If Party B breaches the financial targets (if any) agreed herein, Party A believes that the security of its creditor's rights will be affected;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) Party B refuses to accept or cooperate with Party A's supervision and inspection of the use of the borrowed funds and relevant business financial activities;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VI) Party B fails to obtain the consent of Party A before implementing such matters as division, transformation, merger, termination, joint venture, equity transfer, foreign investment and substantial increase of debt financing;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Party B breaches any representations, warranties and commitments hereunder, or breaches other obligations hereunder;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VIII) Party B provides false materials with no real trade or transaction background or conceals business financial facts;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IX) Party B or the guarantor evades debts through affiliated transactions or other means, or has any bad credit record;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(x) Party B uses any false contract or arrangement with any third party to extract funds or credit from Party A or other banks, including but not limited to bank discount or pledge of bills receivable and accounts receivable with no real trade background;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XI) Failure of Party B, the guarantor or its affiliates to perform debts with Party A or institutions at all levels of Bank of Nanjing Co., LTD., or any other third party;**

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XII) If the guarantor under this Contract violates laws, regulations, rules and other provisions or the agreement of the guarantee contract, or the guarantee is not effective, invalid, revoked or terminated, or the guarantor or the pledge is not in favor of the creditor's rights of Party A (including but not limited to significantly reduced value, loss, ownership dispute, transfer, sealing, seizure, freezing or disposal), Or the guarantor refuses to perform its security obligations;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIII) The transfer of assets by Party B, the guarantor or its affiliates or its legal representative, management or actual controller, which Party A deems to affect the security of its creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIV) Party B, the guarantor or its affiliates or its legal representatives, management and actual controllers have or may be involved in litigation or arbitration cases, or have been or may be subject to any form of punishment or compulsory measures by administrative, law enforcement or judicial authorities;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XV) Party B or any guarantor shall stop paying the debts due or admit the inability to pay the debts due, or carry out restructuring negotiations on the debts owed by Party B;Party B or the Guarantor is closed for rectification, dissolution, bankruptcy or other events or negative information to the detriment of Party B or the Guarantor;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVI) Party B or the legal representative or actual controller of the guarantor cannot contact or make an appointment;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVII) If the next notice under this contract actually occurs, Party A believes that it will affect the security of its creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XVIII) The security of Party A's creditor's rights may be affected if Party B fails to take effective countermeasures due to changes in national credit policies and market environment that are unfavorable to Party A's creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIX) Other matters in violation of laws, regulations, rules and other provisions or provisions of this Contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. If Party B has any of the above breach events or any of the events affecting the security of Party A's debt, Party A shall have the right to exercise one or more of the following rights:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(I) Require Party B or the guarantor to correct the breach within a time limit;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(II) Require Party B to immediately make up 100% of the financing amount issued hereunder/pay the security deposit;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(III) Party B shall be required to provide other guarantees recognized by Party A;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(IV) Change the loan payment method or stop the loan fund payment approved by Party B;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(v) Declare the creditor's rights under this contract to be due in advance, and require the guarantor to perform the guarantee responsibility or exercise the right of mortgage or pledge or direct deposit to pay off debts or exercise other guarantee rights;**

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VI) The funds of Party B in the accounts opened by Party A or the Bank of Nanjing Co., Ltd. at all levels (including but not limited to margin account, current account, time account, national debt account, etc.) are withheld for the right of debt repayment. Party B shall bear the losses of interest, service charges, exchange and other losses arising from the withholding and the collection items are foreign currencies. The repayment amount shall be converted into RMB according to Party A's system listed exchange rate on the collection date;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VII) Require Party B to assume the liability for breach of contract and compensate Party A for any losses and expenses incurred thereby and expenses incurred by Party A to realize the creditor's rights;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(VIII) to adopt measures for preservation;**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(XIV) Exercising other rights that can be exercised by laws, regulations, rules and provisions of this Contract.**

**Article 17 Application of laws and dispute settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. This Contract is concluded in accordance with the laws of the People's Republic of China and shall be governed by the laws of the People's Republic of China.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. Any dispute arising out of or in connection with this Contract may be settled through negotiation.If no agreement can be reached through negotiation, it shall be settled in the <u>first</u> way of the following :**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) File a lawsuit with the people's court having jurisdiction in the place where Party A is domicile.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) shall be submitted to <u>/</u> Arbitration Commission (place of arbitration: <u>/</u>) for arbitration in accordance with the Commission's arbitration rules in effect at the time of applying for arbitration.The arbitration shall be final and binding upon both parties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. If the parties have agreed otherwise on the litigation jurisdiction, it shall be separately agreed in "Other Agreed Matters" hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iv. During the litigation or arbitration period, the provisions of this Contract that do not involve disputes shall still be performed.

**Article 18 Effectiveness, alteration and termination of the Contract**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. Both parties agree that Party A shall sign this Contract in the form of electronic signature or physical seal, and Party B shall sign this Contract in the form of physical seal.Party A's electronic signature and physical seal shall have the same legal effect. **Party B recognizes the validity and evidential effect of the relevant data messages (including but not limited to the electronic contracts generated and recorded by Party A's system) generated by Party A's electronic signature and signed by Party A in this Contract.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party A signs this Contract by electronic signature, this Contract shall come into force on the date when Party A's electronic signature is printed on this Contract and Party B's legal representative (responsible person) or authorized agent signs or affixes the name seal and affixes the official seal or special contract seal of Party B. **Party B may log in to Party A's official website (www.njcb.com.cn) and other channels confirmed and published by Party A to verify the relevant information of this Contract.If Party B has any questions, it may consult Party A's business outlets or call Party A's customer service hotline: 95302;**If Party A signs this Contract with a physical seal, this Contract shall come into force on the date when Party A's legal representative (responsible person) or authorized agent signs or seals and affixing Party A's official seal or special contract seal, and Party B's legal representative (responsible person) or authorized agent signs or affixing its official seal and affixing Party B's official seal or special contract seal.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. After this Contract comes into force, neither party shall modify or terminate this Contract unless otherwise agreed herein. If such modification or termination is necessary, both parties shall reach a written agreement through consultation.The terms of this contract shall remain valid until a written agreement is reached.

**Article 19 Notice and Service**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. The address, email address, telephone number, legal representative (responsible person) or authorized agent specified by Party B on the signature page shall serve Party B's documents:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Ii. Party B agrees that all notices, correspondence, agreements, materials and other documents sent by Party A to Party B hereunder shall be deemed to have been delivered by personal delivery, post, express delivery, fax, telephone, SMS or email in accordance with the service information mentioned in the preceding paragraph.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iii. After disputes arising from Party B's business go through the procedures of third-party mediation, arbitration or court, the relevant legal documents sent by the third-party mediation agency or court or arbitration agency shall be deemed to have been served by personal delivery, post or express delivery in accordance with the aforementioned service information.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Iv. Party B shall, within three days, notify Party A, the People's Court or arbitration institution or a third party mediation institution in writing of any change in the information delivered by any of the documents.Until Party A, the people's court or the arbitration institution or the third party mediation institution receives the written notice of change, the documents served in accordance with the information mentioned in Paragraph 1 of this Article shall be deemed to have been effectively served.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;V. In case of any discrepancy between the service information provided herein and the separately signed "Confirmation of Service Address", the separately signed "Confirmation of Service Address" shall prevail.

**Article 20 Other agreed matters**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. All annexes and legal documents related to the performance of this Contract are integral parts of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. If Party B voluntarily accepts and agrees that the loan hereunder is issued by Party A or any institution of Bank of Nanjing Co., LTD., Party A shall be deemed to have performed the loan issuance obligation hereunder and Party B shall have no objection to this.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Iii. Party A's rights under this Contract shall not exclude or limit Party A's other rights under laws or other contracts.No non-exercise, partial exercise or delay in the exercise of any right by Party A shall constitute a waiver or partial waiver of such right, unless stated in writing by Party A.

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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4. Iv. <u>/</u> 

**Article 21 Supplementary Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. This Contract is made in duplicate, with one held by Party A and one held by Party B. If this contract is guaranteed, the registration and recording department shall hold <u>/</u> copy and each copy shall have the same legal effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ii. Matters not covered herein shall be handled in accordance with relevant national laws, regulations and rules.

(The following text is left blank)

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**(There is no text in this page, which is the signing page of the Renminbi Working Capital Loan Contract numbered :<u>Ba154202207060015</u>)**

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| &nbsp;&nbsp;**Party A** | &nbsp;&nbsp;**Party A** |
| &nbsp;&nbsp; Party A: **Bank of Nanjing Co., LTD., <u>Wuxi Branch</u>**<br> (Seal)<br>Date of signing: July 6，2022 | &nbsp;&nbsp; Legal Representative (responsible person) (signature and seal) :<br> (or authorized agent) :<br>Address:<br> Postal Code:<br> Contact Number: |
| &nbsp;&nbsp;**Party B is a legal or unlegal organization** | &nbsp;&nbsp;**Party B is a legal or unlegal organization** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Party B has read all the terms of this Contract, especially the contents in bold, underlined and marked with special symbols.At the request of Party B, Party A has made corresponding clauses in this Contract.Party B has fully known, fully understood and voluntarily accepted the meaning of this contract and the corresponding legal consequences.** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Party B has read all the terms of this Contract, especially the contents in bold, underlined and marked with special symbols.At the request of Party B, Party A has made corresponding clauses in this Contract.Party B has fully known, fully understood and voluntarily accepted the meaning of this contract and the corresponding legal consequences.** |
| &nbsp;&nbsp; Party B's name: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd.</u><br> (Seal)<br>Date of signing: July 18, 2022 | &nbsp;&nbsp; Legal Representative (responsible person) (signature and seal) :<br> (or authorized agent) :<br>Address of delivery:A3-1208,Tian An Intelligent Park, 228 Linghu Ave,Xinwu<br> District , Wuxi City , China<br> Zip code: 214000<br> Contact number: 18306180110<br> Email Address: |

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| ![](ex10-6_001.jpg) | Contract No.： Ba154202207060015 |

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**Attachment:**

**Application for withdrawal**

Bank of Nanjing Co., LTD. <u>Wuxi Branch:</u>

According to the RMB Working Capital Loan Contract (hereinafter referred to as the "Loan Contract") signed by our company and your bank numbered <u>Ba154202207060015</u>, we hereby submit an irrevocable withdrawal application to your bank:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The amount of withdrawal applied for this time is <u>three million yuan only</u> (in words), and the date of application for withdrawal is <u>July 18, 2022</u>.If the withdrawal is the first withdrawal under the loan contract, the start date of the loan period stipulated in the loan contract is inconsistent with the loan promissory note, the actual loan date in the loan promissory note at the time of the first loan shall prevail, and the loan maturity date stipulated in the loan contract shall be adjusted accordingly.If the draw-down is the second or subsequent draw-down under the Loan contract, the starting date of the loan period shall be the actual draw-down date set forth in the Loan IOU at the time of the loan, and the maturity date shall be no later than the maturity date determined at the time of the first loan and the loan IOU shall be the record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Our company understands and recognizes that your bank has the right to approve the application of our company, and your bank's payment of funds to the special account for loan issuance as agreed in the contract shall be the performance of the loan contract and this application for withdrawal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Our company confirms that all loan funds will be used for the purposes mentioned in the loan contract, and promises to perform all obligations in accordance with the loan contract, and ensure that the principal and interest will be paid in full on time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Our unit confirms that the promises and statements in the loan contract are still true and effective on the date of this application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Our company confirms that there is no event of default on the date of submission of this application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The terms and conditions of the loan contract shall be included in and form an integral part of this withdrawal application.

Hereby request.

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| |
|:---|
| Borrower (Seal) : Jiangsu HUHU Electromenchanical Technology Co.,Ltd. |
| Legal representative or authorized agent (signature) : |
| <u>July 18, 2022</u> |

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## Exhibit 10.7

**Exhibit 10.7**

**Online Working Capital Loan Master Agreement**

Standard clause

(Version 2021011 / e-Channel Version)

Code Number: <u>07800LK22BHA16M</u>

Please refer to the subsidiary terms for the name of lender and borrower

In accordance with the relevant laws, regulations and rules of the state, the borrower and the lender hereby enter into this agreement through consultation and abide by it.The online mobile loan referred to as "online upstream loan" in this Agreement refers to the business whereby the lender and the borrower sign a general loan agreement, and within the effective use stipulated in the agreement, the borrower can apply for loan through the lender's online banking and other electronic channels in a self-service way.

Article 1 Credit Matters

1.1 The borrower initiates the loan application through the lender's online banking and other electronic channels, and the lender agrees to grant the loan to the borrower based on the borrower's application after examination.

1.2 The amount,purpose,starting date,maturity date,interest rate,adjustment method of interest rate and repayment method of the liquidity loans under this Agreement shall be subject to the records in the IOU issued by the loan borrower through online banking and other electronic channels,and the borrower has no objection to this.The IOU is an integral part of this agreement.

1.3The loan provided under this Agreement working capital loan.Without the written consent of the lender,the borrower shall not change the purpose of the loan defined in the IOU.

1.4 The starting date of interest for each working capital loan here under shall be within the validity period of this agreement.

1.5 During the performance of the agreement,if a certain interest date or maturity date is a non-banking working day,it shall be transferred to the next banking working day.

1.6 Interest rate and adjustment method

1.6.1 The interest rate of RMB loan shall be based on the quoted loan market interest rate (LPR), and the annual interest rate shall be determined according to the following formula: daily interest rate = annual interest rate /360.The specific loan interest rate is subject to the loan record at the time of issuance of each loan.The interest rate and interest-bearing rules for foreign currency loans are subject to the loan records and the relevant supplementary agreements (if any) at the time of the issuance of each loan.

1.6.2 Loan interest is calculated on the actual days of the loan from the date the loan is transferred into the account designated by the borrower.

1.6.3 If the market quoted Loan interest rate (LPR) is adjusted and applied to the loan hereunder prior to the issuance of the Loan, the new market quoted Loan Interest rate (LPR) shall be applied and the new loan interest rate shall be redetermined and executed according to the basis points plus or minus as stipulated in Article 1,6.1 of this Agreement.

1.6.4 After the loan is issued, if the market quoted loan interest rate (LPR) is adjusted and applied to the loan hereunder, the loan interest rate shall be adjusted according to the corresponding IOU.The specific sample is as follows:

(1) Adjustment on January 1 next year: As of January 1 of the following year on the date of each adjustment of the market quoted rate (LPR), according to the adjusted market quoted rate (LPR)(if the LPR has been adjusted twice or more times in a calendar year), Determine and implement the new loan interest rate based on the last loan market quoted interest rate (LPR) adjusted within the calendar year) and the corresponding plus or minus basis points；

(2) Adjusted by month, quarter, half year, year: Adjust by month/quarter/half year/year, namely the corresponding day of each month/quarter/half year/year (if there is no corresponding day, it is the last day of the month/quarter/half year/year), and according to the loan market quoted interest rate (LPR) at the time of such adjustment (if the loan market quoted interest rate (LPR) has been adjusted twice or more within the period agreed in this paragraph, To determine and implement the new loan interest rate based on the last adjusted loan market quoted rate (LPR) during the period and the corresponding plus or minus basis points；(" Month, quarter, half year, year "in this paragraph is collectively referred to as "Period")

(3) Fixed interest rate；Continue to carry out the original interest rate recorded in the corresponding borrowing record, and do not calculate the interest in sections；

(4) Immediate adjustment: starting from the day of the adjustment of the Market quoted Rate of Loan (LPR), the new loan interest rate shall be determined according to the adjusted market quoted rate of Loan (LPR) and the corresponding number of points of addition or subtraction, and the new loan interest rate shall be implemented on the same day.

1.6.5 The lender may adjust the loan interest rate at its own time according to changes in external market interest rates and actual business needs.

1.7 Repayment method.The principal and interest repayment method adopted in this contract shall be subject to the corresponding IOU, and the details are as follows:

(1) Repayment with the same amount of principal and interest as scheduled

① If the repayment date of each installment is the corresponding date of the entire period from the date of loan issuance (if there is no corresponding date, the repayment date shall be the last day of the month).From the month when the loan is issued, the principal and interest of the loan shall be repaid with the same amount for each term. The calculation formula is:

the amount of the same amount for each term=the loan principal balance × the term interest rate ×(1+ the loan period interest rate) <sup>the number of repayment periods</sup> ÷[(1+ the loan period interest rate) <sup>the number of repayment periods</sup> -1]

② If the repayment date of each period is not the corresponding date of the whole period starting from the loan issuance date, the calculation formula of the principal and interest amount of the other periods except the first and last is the same as above. The calculation formula of the principal and interest amount of the first and last periods is as follows:

First repayment principal =the loan principal balance × the term interest rate ×(1+ the loan period interest rate) the number of repayment periods ÷[(1+ the loan period interest rate) the number of repayment periods -1]- loan principal balance × term interest rate

First payment interest= loan principal balance x actual days of the first payment x daily interest rate

First payment principal and interest = first payment principal + first payment interest

Final payment principal= the principal balance of the loan

Final loan repayment interest = principal balance of the loan x actual days of the final term x daily interest rate

Final loan repayment principal and interest = final loan repayment principal + final loan repayment interest

(2) Use the same amount of principal repayment

① If the repayment date of each period is the corresponding purpose of the whole period from the loan issuance date (if there is no corresponding date, the repayment date is the last day of the final month).Starting from the month when the loan is issued, the loan principal shall be repaid in equal amount each period, and the loan interest shall be reversed with the principal period by period.The calculation formula is:

First payment principal = loan principal/total loan repayment maturity

Principal repayments per installment = principal of loan/total repayments

Interest on each loan repayment = (loan principal - accumulated principal repaid) \* daily interest rate

Principal and interest amount per loan repayment = principal per loan repayment + interest per loan repayment

② If the repayment date of each period is not the corresponding date of the whole period starting from the loan issuance date, the calculation formula of the principal and interest amount of the remaining periods except the first and last two periods is the same as above. The principal and interest amount of the first and final loan repayment is calculated as follows:

First payment principal = loan principal/total loan repayment maturity

First payment interest = loan principal balance X actual days of the first payment \*daily interest rate

Principal and interest amount of first loan repayment = principal of first loan repayment + interest of first loan repayment

Final repayment principal = loan principal balance

The repayment interest of the end =Loan principal balance \* actual days at the end \* interest rate

Final loan repayment principal and interest = final loan repayment principal + final loan repayment interest

(3) If the loan principal is repaid by installments on a monthly, quarterly, half-year, annual basis, expiry date for interest is the 20th day of the end of each month, the end of the quarter, the end of the half-year, the end of the month, the Coupon Payment is the calendar day next to the interest date, and the loan principal is repaid by installments. The number of repayment periods of the loan principal, the amount of each repayment and the date of repayment are subject to the attachment to the IOU；

(4) If the interest is settled by month, quarter, half year, and the principal and interest are repaid at maturity, the interest date is the 20th day of each month, the end of the quarter, the end of the half year, the end of the year, the payment date is the calendar day next to the interest date, and the principal and interest are repaid at the maturity of the loan；

(5) When the loan is due, the principal and interest will be repaid in one lump sum, and the interest will be cleared with the principal.

1.8 Withdrawal conditions

Unless waived in whole or in part by the Lender, the Borrower shall meet the following conditions before each withdrawal, otherwise the Lender has the right to reject the Borrower's withdrawal application:

1.8.1 The Borrower principal shall continue to be legal and valid and shall continue to comply with its commitments hereunder；

1.8.2 This Agreement has come into force and the Security Agreement hereunder is legally established and effective；

1.8.3 Has fully performed its obligations hereunder without any breach of contract as agreed herein；

1.8.4 Other relevant materials for loan application have been provided as required by the lender.

1.9 Loan fund payment

1.9.1 The payment method of the loan funds hereunder includes the following two payment methods；

(1) Entrusted payment by the Lender, that is, the lender pays the loan through the borrower's account to the borrower's transaction object conforming to the agreed purposes according to the borrower's withdrawal application and payment authorization:

(2) Independent payment by the Borrower, that is, after the lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower makes independent payment to the Borrower's transaction object conforming to the purpose agreed herein； The Lender may independently determine the payment method of the Loan hereunder based on the relevant information provided by the Borrower and relevant laws and regulations as well as the Lender's policies.

1.9.2 The Borrower agrees that in the case of entrusted payment, the Lender shall first transfer the loan into the Borrower's account, and then directly transfer the loan from the Borrower's account into the Borrower's transaction object's account.

During the stay of the loan funds in the Borrower's account, the borrower shall not withdraw the loan funds, and during this period, if the funds are taken strong measures including but not limited to freezing, deduction, etc., the Borrower shall bear the responsibility for repayment, which has nothing to do with the lender.

1.9.3 Regardless of the entrusted payment by the Lender or the independent payment by the Borrower, once the loan funds are transferred into the Borrower's account according to the application or authorization of the Borrower, the Borrower shall be deemed to have successfully drawn the loan under this Agreement, the Lender has fulfilled its lending obligations, and the Borrower shall repay the loan according to the loan Agreement.

1.9.4 In the case of entrusted payment by the lender, the borrower shall, as required by the lender, provide relevant business agreements and other supporting materials related to the purpose of the loan, the letter of authorization for payment and other materials, and the lender shall perform the loan obligation after superficial examination and approval； otherwise, the Lender shall have the right to refuse the loan.

Where the borrower makes the payment independently, the borrower shall report the payment of the loan funds as required by the lender every three months after the loan is made, provide the records and materials of the use of the loan funds that meet the requirements of the lender, and provide the lender with relevant account information, payment vouchers and other materials for the lender's inspection.Otherwise, the Lender is entitled to exercise any one or more of the Lender's rights set forth in Article 2.3 of this Agreement.

1.9.5 In the case of autonomous payment, the Lender agrees that the Borrower may, at its own option, withdraw the loan at the Lender's counter, use online banking (if applicable) or in any other manner agreed by the Lender.The Borrower agrees to draw the loan in accordance with the relevant provisions of the Lender and to confirm the loan handled over the counter, online or in any other manner agreed by the Lender.

1.10 Fund Collection account: The Borrower shall open a special account for fund collection at the lender or a branch of Bank of Ningbo, and timely provide the lender with the information of the flow of funds in and out of the account. The specific fund collection account is the same as the repayment account.The lender has the right to recover the loan in advance according to the borrower's capital recovery situation.

1.11 Repayment Account: The Borrower shall open a repayment account with the Lender or any branch of Bank of Ningbo, deposit in full the amount of the repayment of the principal and interest into the repayment account before the date of each repayment of the principal and interest, and authorize the Lender to deduct the amount from the repayment account. The specific repayment account shall be the repayment account listed in the loan memorandum.If the borrower has outstanding principal and interest or other expenses of the loan, it shall promptly deposit them into the repayment account and authorize the lender to deduct them at any time.If the quoted interest rate of the loan market (LPR) changes, the borrower shall timely and fully deposit the principal and interest payment, otherwise all consequences caused by this, including but not limited to additional penalty interest and adverse impact on the Borrower's credit record, shall be borne by the Borrower and have nothing to do with the lender.If the repayment account is reported as loss, frozen, stopped payment or settled, or the borrower needs to change the repayment account, the borrower shall go through the procedures of changing the repayment account at the lender.Before the change procedures take effect, If the borrower fails to handle the change procedures of the repayment account in time or fails to handle the repayment at the counter in time and fails to pay off the principal and interest of the due loan and other expenses in time, the borrower shall bear the liability for breach of contract.

1.12 For purposes of this Agreement, "Period" means month or an integral multiple of month, and the corresponding "Period rate" shall be an integral multiple of annual interest rate /12× month.The "end month" is March, June, September or December；"Half-year end month" means June or December；"Year end month" means December.

1.13 After the signing of this Agreement between the Lender and the Borrower, there is no need to sign the working capital loan agreement in each case when handling the online floating loan business.

Article 2 Rights and Obligations of the lender

2.1 The Lender has the right to recover or withdraw in advance the loan principal, interest, compound interest, penalty interest and other claims in accordance with this Agreement and the relevant loan ownership agreement.

2.2 The Lender shall have the right to know the borrower's production and operation, financial activities, material inventory and loan use, check the use and management of collateral at any time, require the borrower to provide true and complete financial statements and other documents, materials and information on a monthly basis, and shall have the right to use the Bank's credit investigation system or other institutions and systems in accordance with relevant regulations. Query, print, save, and use the borrower's basic information and credit report.

2.3 During the term of this Agreement, if any of the following occurs to the Borrower or its affiliates or actual controller, the Lender shall have the right to hold that all the credit granted by the Borrower to the Lender, including but not limited to loan, discount, acceptance of bank acceptance, international trade financing, bank guarantee, etc., are due in advance. And has the right to

(1) terminate the relevant agreements and agreements signed with the Borrower in advance, including but not limited to this Agreement；

(2) stop the issuance of new loans, declare the loans under this Agreement to expire in advance, and recover all loan principal, interest and fees in advance；

(3) Directly deduct the corresponding amount from any account of the Borrower to repay the principal, interest and fees of the loan and notify the borrower；

(4) Other security measures that require additional approval by the lender；

(5) bring a suit to the people's court, and take such measures as sealing up, freezing and withholding of assets；

(6) Other asset preservation measures.At the same time, all branches of Bank of Ningbo also enjoy the above rights to the borrower.

(1) The borrower has ceased production, closed down its business, been dissolved, been taken over, cancelled its registration, may be sued for bankruptcy, has been shut down for whole collection, has had its business license revoked or has been revoked；

(2) The Borrower conceals material facts related to the conclusion of this Agreement or provides false information, circumstances, statements or information containing false information: or provides false statements, vouchers, documents and other materials to the Lender during the term of this Agreement；

(3) The borrower fails to repay the principal and interest of the loan in accordance with this Agreement and the corresponding promissory note (including the situation where the loan is due early or has been repaid after the loan is overdue；

(4) The borrower fails to use the loan in accordance with the purposes agreed in this Agreement and the corresponding loan promissory notes；

(5) The Borrower fails to perform the obligations agreed with the lender or a third party or the obligations prescribed by laws and regulations；

(6) Disposal (including but not limited to gift, transfer, assignment or sale at a low price) of any asset by the Borrower prior to the repayment of the Lender's debt which may or has affected its ability to repay the Lender；

(7) The Borrower's credit status declines, its business activities become difficult, its financial status deteriorates, or it breaks the constraints of the financial indicators set by the Lender or agreed by the parties；

(8) The borrower fails to pay the loan funds in the agreed manner；

(9) The borrower is involved in economic disputes or lawsuits, or any of its assets are sealed up, frozen or deducted by other preservation measures；

(10) The borrower is prosecuted, fined or fined for suspected illegal crimes, or the legal representative or main responsible person of the borrower is detained, arrested, taken coercive measures, prosecuted, sentenced or fined or fined for suspected crimes；

(11) The Borrower fails to perform any of its obligations under this Agreement and the corresponding loan note or breaches any terms and commitments under this Agreement and the corresponding loan note；

(12) The security agreement under this Agreement is invalid, the guarantor's guarantee ability is reduced, the value of the secured property is decreased, and the secured property is sealed, frozen or deducted by security measures which affect the security of the creditor's rights under this Agreement；

(13) The guarantor violates the guarantee agreement；

(14) Events listed in Item (1), (5), (7), (9) and (10) of this paragraph occur to the related party or the actual controller of the Borrower or other changes that are not conducive to the realization of the creditor's right of the Lender, and the Borrower fails to provide another guarantee approved by the lender as required by the Lender, (For the definition of related party, see Accounting Standard for Business Enterprises No. 36 -- Related Party Disclosure and its revised version.) For the definition of actual controller, see Company Law of the People's Republic of China and its revised version.

(15) Other than the above events, any other events which, in the judgment of the Lender, adversely affect the Borrower's performance of the repayment obligations hereunder.The Lender has complete and independent discretion as to whether such circumstances occur.

2.4 In the process of loan payment, if the Lender, in its independent judgment, considers that the Borrower has one or more of the following circumstances, the Lender has the right to (1) change the loan payment method from autonomous payment to entrusted payment (including partial entrusted payment)；(2) to stop the issuance and payment of loan funds；(3) Negotiate with the borrower the terms of issuance and payment of supplementary loans.

(1) Declining credit status of the borrower；

(2) The borrower's main business profitability is not strong；

(3) Abnormal use of loan funds by the borrower；

2.5 Where the Borrower fails to repay the loan principal, interest, compound interest, penalty interest and other debts due (including those due in advance) as agreed, the Lender shall have the right to deduct the corresponding amount from all the accounts opened by the Borrower in Bank of Ningbo Co., Ltd. and any of its branches for cancellation and notify the Borrower.If the lender withdraws all the time deposits due at the end of the term of the borrower in advance, the interest shall be calculated according to the interest rate of the live deposit announced on the date of withdrawal. If the part of the time deposit needs to be withdrawn in advance, the interest shall be calculated according to the interest rate of the current deposit announced on the date of withdrawal, and the interest shall be calculated according to the interest rate of the time deposit on the date of opening of the account when the remaining part matures.The borrower shall bear the interest loss arising from the deduction.The Borrower hereby authorizes the Lender not to expunge such amount at any time.

2.6 Where the Borrower defaults under this agreement, or evades the supervision of the Lender, or conceals important facts related to this Agreement or provides false materials and information or other illegal acts, the Lender shall have the right to provide relevant information to the collection agency for collection purposes or to notify the relevant departments or units.The Borrower shall not excitably authorize the lender to provide the borrower's name, contact information and other relevant information to the collection agency for the purpose of collection. The collection agency shall have the obligation to keep the borrower's information confidential and shall not use the Borrower's information beyond the purpose of collection.Meanwhile, the Lender has the right to hold the Borrower liable for breach of contract in accordance with laws, regulations and provisions of this Agreement.

2.7 The Lender has the right to participate in the borrower's large amount financing, asset sale, merger, division, joint-stock reform, bankruptcy liquidation and other activities.

2.8 The borrower and the mortgagor shall, according to the requirements of the lender, complete the registration of the mortgagor and property insurance and other legal procedures in accordance with the law, and the guarantee and insurance shall remain valid. The Lender shall have the right to be the first in line to claim the insurance benefits and obtain copies of the relevant insurance agreements or insurance documents.Otherwise, the Lender has the right to refuse to provide the loan hereunder.

2.9 The Lender shall have the right to require the Borrower to conduct timely loan reconciliation.

2.10 Subject to the performance by the Borrower and the guarantor of their obligations under this Agreement and the Security Agreement, the Lender shall grant the loan to the Borrower in accordance with this Agreement and the corresponding ious.The Lender has the right to entrust the Head Office of Bank of Ningbo and its other branches, any paying bank or agent Bank of Bank of Ningbo to extend the loan to the Borrower in accordance with the provisions of this Agreement, and the Borrower has no objection to this and warrants that the performance of this Agreement by the Head Office of Bank of Ningbo and its other branches, paying bank or agent Bank shall be deemed to be the performance of the Lender. All payment obligations under this Agreement shall be performed by the Borrower to the Lender and all rights shall be vested in the Lender.If the borrower defaults, the lender shall have the right to claim the creditor's rights directly against the borrower.

2.11 The guarantor of the Loan hereunder shall have any event that threatens its normal operations or materially adversely affects its ability to secure the corresponding debt hereunder, Including but not limited to suspension of production, closure of business, cancellation of registration, revocation of business license, bankruptcy, difficulties in business activities, deterioration of financial condition, suspected illegal activities of legal representative or main person in charge, litigation activities or major economic disputes, assets being sealed up, frozen or deducted and other asset preservation measures, etc. Or if the value of the collateral, pledge or pledge right used as the loan guarantee hereunder is reduced or the asset preservation measures such as sealing, freezing or deduction are taken, and the Borrower fails to provide additional security as required by the Lender, the Lender shall also have the right to take all the measures set forth in Article 2.3 hereof.

Article 3 Commitment and Authorization of the Borrower

3.1 Provide the lender with true, complete and effective materials；

3.2 Cooperate with the lender in loan payment management, post-loan management and relevant inspection；

3.3 Not to use the loan funds for fixed assets, equity and other investments, and not to use the loan funds for fields and purposes prohibited by the state to produce and operate；Not to evade the lender's entrusted payment by breaking up the whole into pieces；

3.4 The Borrower undertakes to fully perform all its obligations under this Agreement.

3.5 The Borrower agrees and authorize（irrevocable） the Lender (including any branch of the Lender) to use the financial credit information basic database, credit information service platform of inclusive finance and other credit information service platforms established by national or local governments in accordance with the law when reviewing the Borrower's application for credit granting and post-delivery risk management of the credit granting business. Or inquire, print, use and save the basic financial information and credit information of the unit through various risk information sharing systems, various risk early warning systems, water and electricity use information base and other legally established credit information databases or credit investigation agencies: Meanwhile, the Borrower agrees and irrevocably authorizes the Lender to provide the Borrower's basic financial information and credit information to the aforementioned platform, system, information database or institution in accordance with the law for the purpose of meeting regulatory submission requirements.Regardless of whether the business under this Agreement is approved or not, the Borrower agrees that the Lender shall retain the Borrower's credit report and other materials, and the Lender shall ensure that the aforementioned query information is used to the extent authorized.

Article 4 Rights and Obligations of the borrower

4.1 The right to obtain and use the loan in accordance with this Agreement and the corresponding IOU.

4.2 Repay the loan principal, interest, compound interest, penalty interest, legal costs, preservation costs, enforcement costs, attorney's fees, travel expenses and other reasonable expenses in accordance with this Agreement and the corresponding ious, and the authorized Lender is irrevocably entitled to deduct such expenses in accordance with Article 2.5 hereof.

4.3 The loan shall be used in accordance with the purpose specified in this Agreement without usurping or misappropriating the loan.

4.4 Provide the Lender with true and complete financial statements or other relevant materials and information on a monthly basis, and actively cooperate with the Lender in the inspection of its production and operation, financial status, material inventory and the use of the loan hereunder.

4.5 Before the debt repayment under this Agreement is complete, the Borrower shall take such measures as contracting, leasing, joint-stock transformation, association, merger, merger, division, joint venture, capital reduction, asset transfer, foreign investment, substantial increase in debt financing, application for suspension of business for rectification, application for dissolution, application for bankruptcy or other changes in the creditor's debt relationship that may cause this Agreement or affect the realization of the Lender's loan claims Shall notify the lender in writing 30 days prior to the implementation of the above actions, and at the same time fulfill the obligation to pay off the debts or pay off the debts in advance, and obtain the written consent of the lender； otherwise, the above actions shall not be taken.

4.6 The Borrower shall notify the Lender in writing within 3 days after the occurrence of any other event other than the above which threatens its normal operations or has a material adverse impact on the performance of the repayment obligations hereunder, including but not limited to any of the circumstances set forth in Article 2.3 hereof, and implement the repayment measures.

4.7 If the Borrower provides a guarantee for the debts of others or sets a mortgage or pledge guarantee with its main property to a third party before the completion of the debts under this Agreement, which may affect its ability to repay the debts under this Agreement, it shall notify the Lender in writing in advance and obtain the written consent of the Lender.

4.8 The Borrower shall not withdraw or transfer funds, dispose at a low price, gift assets or transfer shares without authorization in order to evade debts to the lender or weaken its own solvency.

4.9 Where the Borrower changes its name, legal representative, legal address, business scope, correspondence address, contact telephone number, etc., it shall, within 5 days after the change, deliver a written notice and relevant documents of change issued by the competent authorities of industry and commerce to the Lender.Otherwise, all liabilities and consequences arising therefrom shall be borne by the Borrower.

4.10 If the guarantor of the loan hereunder stops production, goes out of business, has its registration cancelled, has its business license revoked, is bankrupt and suffers from operating loss, partially or completely loses its guarantee ability corresponding to the debt hereunder, or if the value of the collateral, pledge or pledge right used as the loan guarantee hereunder decreases or there is a dispute over ownership, The Borrower shall provide other security measures approved by the Lender within 10 days after the occurrence of the above circumstances.

4.11 The Borrower shall be obliged to cooperate with the lender in loan reconciliation.

4.12 The Borrower shall, in accordance with the requirements of laws and regulations, bear the expenses of lawyer services, insurance, transportation, registration, storage, appraisal, notarization, depository and guarantee in connection with this Agreement and the guarantee hereunder.

4.13 The Borrower shall immediately sign and deliver the return receipt to the Lender or send the return receipt to the Lender within 3 days after signing for the receipt of the collection letter or collection document delivered to it by the Lender directly or by post.

4.14 The borrower shall strengthen environmental and social risk management. If the borrower is involved in major environmental and social risks, it shall submit environmental and social risk report；The Borrower represents and warrants that the internal management documents relating to environmental and social risks are in accordance with the requirements of laws and regulations and are effectively implemented,There are no major litigation cases involving environmental and social risks；The borrower undertakes to accept the lender's supervision；If the borrower's statements, warranties or commitments relating to environmental and social risk management have not been seriously fulfilled, or if the Borrower has been penalized by the relevant government authorities or strongly questioned by the public and/or the media for poor environmental and social risk management, The Lender shall have the right to cancel the credit granting commitment already made, suspend the disbursement of the loan until the borrower has taken remedial measures approved by the Lender, withdraw the loan already issued in advance, and exercise the relevant right of pledge in case the loan cannot be repaid；

Article 5 Liability for Breach of Contract

5.1 After the Agreement comes into force, both parties shall perform the obligations and commitments set forth herein, if either party fails to perform or fails to fully perform the obligations or commitments set forth herein.It shall bear the corresponding liability for breach of contract and compensate the other party for the losses caused thereby.

5.2 The Lender shall indemnify the Borrower for any losses caused by the Lender's breach of contract.The scope of compensation is limited to the direct losses of the borrower, excluding indirect losses and expected losses.

5.3 If the borrower fails to repay the loan principal as agreed upon upon the maturity of the loan (including being declared to be due early), the lender will charge a certain percentage of overdue penalty interest on the overdue loan according to the loan interest rate agreed herein for the actual overdue days from the overdue date. For the specific percentage of overdue penalty interest, please refer to the Annex.

5.4 If the Borrower fails to use the loan for the agreed purpose, the Lender shall have the right to charge a certain percentage of penalty interest for misappropriation of the loan amount used by the Borrower according to the actual default days at the loan interest level agreed herein from the date of the Borrower's default. For the specific percentage of penalty interest for misappropriation, please refer to the Annex.

5.5 The Lender shall have the right to compound interest on the outstanding interest payable by the Borrower.The outstanding interest payable by the Borrower during the loan term shall be compounded at the interest rate and settlement method agreed herein；If the Borrower fails to use the loan in due time or fails to use the loan for the purpose agreed herein, the unpaid interest payable shall be compounded by the total interest rate and the settlement rate of the loan interest rate and the penalty interest rate agreed herein.

5.6 When the loan interest rate under this Agreement is adjusted, the penalty interest rate will be automatically adjusted based on the adjusted loan interest rate in accordance with the proportion agreed in Articles 5.3 and 5.4 of this Agreement. The penalty interest rate will apply at the same time as the loan interest rate and will be calculated in sections.

5.7 If the Lender intentionally conceals material facts related to the conclusion of this Agreement or provides false information or circumstances to the Borrower, the Lender shall have the right to charge the Borrower liquidated damages equal to 10% of the loan balance issued hereunder.

5.8 The Borrower shall bear the expenses paid by the Lender during the realization of the creditor's rights, including but not limited to legal costs, arbitration fees, preservation fees, enforcement fees, attorney fees, travel expenses and other expenses for the realization of the creditor's rights.

5.9 If the Borrower breaches its obligations under this Agreement or the guarantor of the loan hereunder breaches its obligations under the guarantee Agreement, the Borrower shall be liable for breach of contract as mentioned above, and the Lender shall have the right to identify all the credit extended by the Borrower to the Lender, including but not limited to loan, discount, banker's acceptance, international trade financing, bank's guarantee, etc. Are due earlier and are entitled to take all actions set forth in Section 2.3 of this Agreement.

5. 10 If the creditor's rights under this Agreement are secured by mortgage, If the relevant mortgage certificate expires, the relevant authority certificate and mortgage registration procedures cannot be completed again according to the requirements of the lender，the Lender shall have the right to declare that all the credit extension of the Borrower are due in advance and require the Borrower to pay the full margin in advance, add additional security and other remedial measures if the relevant mortgage certificate fails to complete the relevant warrant and mortgage registration formalities as required by the Lender before the expiration.

Article 6 Effectiveness, alteration, assignment, rescission and termination of the Agreement

6.1 This Agreement shall be established by the Borrower through the electronic channels of Bank of Ningbo Co., LTD. (including but not limited to the online banking, Bank of Ningbo APP, financial system, etc.) by clicking and submitting online, and shall come into force upon the approval of the Lender. If the borrower submits the application for signing the Agreement through the lender's electronic channel, it shall have the same legal effect as the handwritten signature or seal on the paper application.All transactions completed through the electronic channels of Bank of Ningbo Co., LTD through the borrower's identity authentication elements (including but not limited to account number, login name, password, digital certificate, USBKey, etc.) or other transaction security measures shall be deemed to be done by the Borrower, and the business instructions generated by the above operations shall be legal and valid certificates for the lender to handle the business. The borrower shall be responsible for the consequences arising therefrom.In the event of loss, theft or damage to such elements as identity authentication, the Borrower shall bear all consequences unless the Borrower has expressly notified the Lender.If the Lender's electronic channel cannot be used normally due to terminal failure, system failure and other reasons, the Borrower shall immediately notify the Lender or go to the Lender's business outlets for handling.The borrower shall properly keep the account number, password and other information, and shall not lend or sublease the account to others.The Borrower shall bear all the risks and losses arising from the loan of the Borrower's account, the sublease of other people's use or the disclosure of the information.

The Borrower has read the above in detail and understands that an electronic signature is the data contained in electronic form in a message attached to identify the signer and show that the signer approves of its contents.Therefore, in addition to all the risks associated with signing a contract in writing, the application for drawing an electronic banker's acceptance bill by means of electronic signature is fully understood and recognized as having the following risks:

(1) The account password of the borrower's online banking and other electronic channels is leaked or its identity may be counterfeited；

(2) Due to the possibility of malicious attacks by hackers on the Internet, the Internet server may break down and other unpredictable factors；

(3) the Borrower's Internet access equipment and software system do not match the online trading system provided；

(4) If the borrower's handling personnel do not have certain experience in online transaction, they may be unable to initiate the transaction due to improper operation；

(5) The borrower's computer system is infected with computer viruses or illegally invaded.

The foregoing risks may result in the loss of the Borrower, and the Borrower is fully aware of and voluntarily assumes such risks.

This Agreement shall be valid for one year from the effective date. If no written objection is raised by both parties ，It will be postponed automatically for one year.and so on.If there are still outstanding working capital loans under the original Agreement, the original Agreement shall remain binding on the parties until the completion of all the businesses under the original Agreement.All business after the effective date of this Agreement shall be handled in accordance with the provisions of this Agreement.In the absence of any outstanding business, either Party shall have the right to terminate this Agreement by giving a written notice to the other party five working days in advance. This Agreement shall be terminated as of the date set forth in the written notice. If the date set forth in the written notice is earlier than the date on which the notice reaches the other party, the date on which the notice reaches the other party shall prevail.

6.2 With the consent of the Lender, the Borrower may apply for repayment in advance, and the Lender has the right to charge liquidated damages according to a certain percentage of the amount repaid in advance. Please refer to the subsidiary articles for the liquidated damages.

6.3 If the borrower requires the extension of the loan, it shall submit a written application for extension to the lender and the guarantor's written opinion agreeing to continue the guarantee 7 days before the expiration of the loan term. Upon the Lender's approval and signing of the extension agreement, the loan hereunder shall be extended only after the extension agreement becomes effective.

6.4 After this Agreement comes into force, neither party shall arbitrarily alter or terminate this Agreement except as agreed herein or as provided by laws and regulations.If this Agreement needs to be changed or terminated, both parties shall reach a written agreement through consultation.The terms of this Agreement shall remain valid until the written agreement is reached.If the agreement is changed, the client's consent shall be sought through phone calls, SMS messages and other means, and the announcement shall be made through the public account or official website of our bank.

6.5 The Lender may assign its rights under this Agreement to a third party without the consent of the Borrower.The notice of the assignment of rights by the Lender may be given by written notice or by announcement on the Lender's official website (http://www.nbcb.com,cn), public media and other forms approved by the regulatory authority.The Borrower hereby authorizes the Lender, as its agent, to enter into all necessary agreements and documents with such third parties to complete the transfer.The Borrower hereby acknowledges that the agreement and documents signed by the Lender and the said third party constitute valid legal documents between the Borrower and the third party, confirm the creditor's and debtor's relationship between the Borrower and the third party, and are legally binding on both the Borrower and the third party.If the Lender transfers the loan claims under this Agreement to a third party, the Borrower shall, within five working days from the date of the announcement, raise the claim of defense or set-off against the Lender. Failure to object is considered as an endorsement of the assignment of debt.

6.6 The Borrower shall not assign any of its obligations under this Agreement to a third party without the written consent of the Lender.

Article 7 Application of law and dispute settlement

7. 1 The conclusion, validity, interpretation, performance and dispute resolution of this Agreement shall be governed by the laws of the People's Republic of China (excluding the laws of Hong Kong, Macao and Taiwan for the purpose of this Agreement).

7.2 Any dispute arising from the performance of this Agreement shall be settled by the parties through negotiation.If no agreement can be reached through negotiation, please refer to the subsidiary terms for the specific dispute settlement method.

7.3 During the period of negotiation, submission of litigation or arbitration, the Agreement does not involve the provisions of the disputed part and the parties shall still perform it. Neither party shall refuse to perform any of its obligations under this Agreement on the grounds that the dispute settlement procedure is in progress.

Article 8 Other Matters

8.1 The invalidity or cancellation of some provisions of this Agreement shall not affect the validity of other provisions, which shall remain valid.

8.2 Service

(1) The Borrower acknowledges that the following address shall be the address and contact information for the notice sent by the Lender and the debt collection, litigation (arbitration) legal documents involved, and the address and contact information shall be applicable to all stages of litigation and execution.

(2) The lender, the Trial court and arbitration agency shall send the notice and legal documents at the following address and contact information. If no one signs for or refuses to receive the mail, the date of return of the notice and legal documents shall be deemed as the date of service. If the mail is rejected at the time of direct service, the deliverer may take photos or video to record the service process, and leave the notice and legal documents in lien, which shall be deemed as service.

(3) The borrower acknowledges that the lender, the hearing court and the arbitration institution may serve the instrument by mobile phone SMS , fax or email or other modern means of communication through the mobile phone number, fax number or email address specified below. The lender, the hearing court and the arbitration institution shall be deemed to have served the instrument as long as they confirm that they have sent the relevant legal instrument at the number and address specified below.The relevant legal documents sent by the lender, the hearing court or the arbitration institution at the following postal address shall be deemed to have been delivered 3 days after the delivery of the mail.

(4) If the borrower provides the wrong contact information or fails to timely inform the changed contact information, resulting in the failure to serve or return the notice or legal document, the date of return of the notice or legal document shall be deemed as the date of service.

(5) The delivery address and contact information of the Borrower are set forth in the subsidiary terms.

8.3 Both parties hereby agree to confirm the legal validity of the telephone recording and faxed copy, and promise that they can be submitted as evidence to the court, the Arbitration Commission and other dispute settlement institutions.A faxed copy shall have the same validity as the original while the original is in transit.The fax number specified by the Borrower in this Agreement shall not be changed at will, and the Borrower shall issue a written explanation of the change to the Lender when the fax number is changed, failing which, the Borrower shall assume all liabilities arising therefrom.The Borrower shall ensure that the fax sent by the Borrower is consistent with the original； otherwise, the Borrower shall bear the corresponding responsibility.

8.4 The headings of the terms of this Agreement are for the convenience of reference only, and no terms of this Agreement shall be construed or understood solely on the basis of the headings.

8.5 Except as agreed herein or as provided by relevant laws and regulations, unless the non-breaching party expressly states in writing, the breaching Party shall violate or fail to perform any agreement or obligation contained herein at any time. No act, omission, delay in taking action or any other measure by the non-breaching Party shall be deemed to be a waiver of any of its rights under this Agreement.

8.6 If any party to this Agreement requests notarization of the agreement, the parties shall jointly apply for notarization to the notary office, and clearly give the agreement the effect of enforcement.The notarization fee shall be borne by the borrower.At the same time, the Borrower agrees that this Agreement shall be enforceable upon notarization. If the Borrower fails to perform its obligations hereunder, the Lender may apply to the people's court with jurisdiction for enforcement according to law.

8.7 If this Agreement cannot be fully performed due to changes in regulations, rules, policies or emergency measures, the Lender shall not bear any responsibility.

8.8 Matters not covered herein shall be handled in accordance with relevant laws and regulations, the People's Bank of China, the CBRC and the lender.

Article 9 The standard terms, ancillary terms, supplementary agreements, ious, Borrower's undertakings, testimonies and power of Payment, etc. constitute the entire Agreement, and the components of such Agreement may be executed in paper, electronic or other means approved by the Lender.

<u>Article 10 Tips and Declarations</u>

1. The Borrower agrees that the Lender shall entrust a third party to keep the written documents or electronic information related to this Agreement: The Parties hereto agree and confirm that the written documents or electronic information related to this Agreement provided by the third party entrusted by the Lender shall be the final proof of the matters related to this Agreement.

<u>2. The Lender has drawn the Borrower's attention to a full and accurate understanding of the terms of this Agreement.The meaning of the terms of this Agreement and the corresponding legal consequences are fully known and understood by the contracting parties.</u>

<u>At the same time, the Borrower specifically declares that it has paid special attention to and accepts the terms, especially the bold terms, relating to its obligations and adverse to it.</u>

<u>The borrower already knows that choosing a floating rate increases interest payments if interest rates rise between the start date and the maturity date, and choosing a fixed rate increases interest payments if interest rates fall between the start date and the maturity date.</u>

(The above is the standard terms of this Agreement, and the following is connected to the subordinate terms of this Agreement)

Subsidiary Terms of Online Working Capital Loan General Agreement

No. : <u>07800LK22BHA16M</u>

Lender: Bank of Ningbo Co., LTD. <u>Wuxi Branch</u>

Borrower: <u>Jiangsu HUHU Electromenchanical Technology Co.,Ltd</u>

Article 1

If the borrower fails to repay the principal of the loan as agreed, the lender shall charge an additional penalty interest of <u>50%</u> for overdue payment；

If the borrower fails to use the loan for the agreed purpose, the lender shall charge an additional penalty interest of <u>80 percent</u> for misappropriation.

Article 2

With the consent of the Lender, the Borrower may apply for repayment in advance, and the Lender has the right to charge<u>/</u> penalty against the amount repaid in advance.

Article 3

Any dispute arising out of the performance of this Agreement can be settled by the following means

It shall be under the jurisdiction of the People's Court <u>No. 666 Zhongshan Road, Wuxi</u>, where the agreement is signed

Article 4

Delivery address and contact information of the Borrower:

Delivery address: <u>A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City</u>

Addressee (or consignee) : <u>Ying Lai Wang</u> post：<u>legal representative</u>；<u>The ID card number is 320922198302165723</u>

Contact number: <u>18112388986</u>

Fax receiving number: <u>/</u>

SMS receiving number: <u>18112588986</u>

Email: <u>/</u>

The standard terms and ancillary terms of this Agreement constitute the entire Agreement.

Signing date: March 28, 2022

## Exhibit 10.8

**Exhibit 10.8** 

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Working capital loan contract**

**(Applicable to newly-signed domestic RMB interest rate, non-US**

**dollar/pound/euro/yen/Swiss franc foreign currency interest rate, US dollar/pound/euro/yen/Swiss franc new benchmark interest rate)**

No：736375593D22071101

**Borrower: <u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

**Unified social credit code：<u>91320214346537120H</u>**

**Legal Representative/Person in charge: <u>Yinglai Wang</u>**

**Address: <u>3-1208, No.228 Linghu Avenue, Xinwu District, Wuxi City</u> ZIP Code：<u> </u>/<u> </u>**

**Opening financial Institution and Account Number:<u>Bank of China Limited,Wuxi Branch 483277737262</u>**

**Telephone:<u> </u>/<u> </u> Fax:<u> </u>/<u> </u>**

**Lender: <u>Bank of China Limited,Wuxi Branch</u>**

**Legal Representative/Person in charge:<u>Xinhong Chen</u>**

**Address: Zip Code:<u>258 Zhongshan Road, Wuxi</u> ZIP Code：**

**Telephone: <u>/</u> Fax: <u>/</u>**

The Borrower and Lender, through equal consultation, have reached an agreement on the issue of working capital loan by the Lender to the Borrower and hereby enter into this contract.

☐ This contract is a single agreement under the signed,Belong to <u>Jiangsu Huhu Electromechanical Technology Co., LTD.</u>with <u>Bank of China Limited, Wuxi Branch</u>. Number of <u>736375593E22061501</u> ☐ Line of Credit Agreement /☐ General Agreement for Credit.(Note: This is optional. If not applicable, delete it.)

**Article 1 Loan Amount**

Currency of loan:<u>RMB</u>.

Amount borrowed: (in words)：<u>two million yuan</u>

(in Figures)：<u>￥2,000,000.00</u>

☐ At the time of the Borrower's actual withdrawal, if the Borrower's existing credit balance under the aforesaid Line of Credit Agreement is converted into according to the exchange rate<u> </u> <u>/</u> (currency) on the actual withdrawal date due to exchange rate fluctuations, the lender has the right to terminate this contract or reject the Borrower's withdrawal application if it exceeds the line of credit agreed in the Line of Credit Agreement：If the available line of credit is less than the amount borrowed by the borrower under this contract, the lender shall have the right to reduce the amount borrowed under this contract and determine the amount borrowed under this contract according to the available line of credit.(Note: This clause is optional and applicable according to the management regulations of each line of credit limit. If it is not applicable, it should be deleted)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 2 Term of Loan**

Term of Loan: <u>12</u> month/<u> </u>/<u> </u>day, starting from the actual withdrawal date;In the case of instalment withdrawal, the first actual withdrawal date.

The Borrower shall make the withdrawal in strict accordance with the agreed time. If the actual withdrawal date is later than the agreed time, the Borrower shall make the repayment in accordance with the repayment time agreed herein.

**Article 3 Purposes of loan**

Purpose of loan: <u>Purchase Cable</u>

Without the written consent of the lender, the borrower shall not change the purpose of the loan, including but not limited to, the borrower shall not use the loan for fixed assets, equity and other investment, for any fields or purposes that are prohibited by laws, regulations, regulations, or the state to produce or operate, for lending, or for the purchase of other financial products for arbitrage, or for the illegal creation of new hidden debts of the local government. And other uses for which bank loans are prohibited.

**Article 4 Loan Interest Rate and accrued interest** (Remarks: Fill in according to the facts, and exception to application must be deleted)

**The lender expresses to the borrower the annualized interest rate of the loan hereunder through the notification letter of the annualized interest rate of the loan attached hereto. If the annualized interest rate of the loan hereunder is only calculated according to the interest rate of the loan expressed in paragraph 1 of this article, the notification letter of the annualized interest rate of the loan shall not apply.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Borrowing interest rate**

The borrowing rate (annualized, simple interest rate for RMB borrowing and simple/compound interest rate for foreign currency borrowing (choose one))

The manner is <u>(2)</u> listed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) Fixed interest rate, annual interest rate<u> </u>/<u> </u>%.**The contract interest rate remains unchanged during the term of the loan.

☐ **The source of fixed interest rate of RMB loan is:** the quoted interest rate of loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the National Inter-bank Lending Center as of one working day before the effective date of this contract ☐ plus/☐minus (optional) <u>/</u> basis points;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Sources of fixed interest rates for foreign currency borrowings:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Base rate plus<u> </u>/<u> </u> basis points applicable on the effective date of this Contract (T day). The benchmark interest rate is the value of<u> </u>/<u> </u>T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR corresponding to the currency of the loan agreed under this contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Base rate plus basis points applicable on the effective date of this Contract (T days, if the effective date is not a business day, the most recent business day before is T days). The benchmark interest rate is the interest rate of ☐ US dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>/<u> </u>T-5 business days as shown on the Bloomberg Financial Telecommunications terminal page. **If the foreign currency base rate is negative, the foreign currency base rate is zero.**The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.**(Note: This section applies to overnight interest rates)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The latest one obtained from Reuters Information system before 9:00 (Beijing time) one working day prior to the effective date of this Contract<u> </u>/<u> </u> Monthly<u> </u>/<u> </u> (foreign currency benchmark rate) plus<u> </u>/<u> </u> basis points. **If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **The floating interest rate,** starting from the actual withdrawal date (in the case of fractional withdrawal, the first actual withdrawal date), ☐ daily /🗹 <u>12</u> month /☐<u> </u>/<u> </u> year (choose one) as a floating period, will be repriced once. The repricing date is the first day of the next floating period, that is, the starting date is the corresponding day of the repricing month. If there is no corresponding day in the current month, it is the last day of the current month. If the floating period is daily, the repricing date is the day of the next floating period.

**For each withdrawal:**

☑ **Floating interest rate of RMB loan**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) is one working day prior to the date of actual withdrawal. The market quoted interest rate for loans with a maturity of ☐ 1 year /☐ 5 years or more (optional) as recently published by the national interbank offered center þ plus/minus (optional) <u>0</u> basis points;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. On the repricing date, together with other tranches of withdrawals, the market quoted rate ☐ plus/minus (optional) basis points of loans with maturity of þ 1 year /☐ 5 years or more (optional) 🗹 plus/minus (optional) <u>0</u> basis points to reprice, as the applicable interest rate for the floating period.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Floating interest rate on foreign currency borrowings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **If applicable term interest rate,**(the following rules will determine the interest rate:The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be determined by the spread of the base rate applicable on the date of actual withdrawal (T day) plus basis points. The benchmark interest rate is the value of T-3 working days (term) of ☐ Yen TIBOR ☐ Euro EURIBOR ☐ corresponding to the currency of the loan agreed under this Contract as displayed on the page of Bloomberg Financial Telecommunications terminal or obtained from Reuters Information System**.** On the repricing date (T day), (term) ☐ Yen TIBOR ☐ Euro EURIBOR ☐ T-3 business days for the currency of the loan agreed under this Contract as displayed on the bloomberg financial telecommunications terminal page or obtained from the Reuters Information System plus other tranche withdrawals The spread of the basis points determines the applicable interest rate for that floating cycle. The spread remains unchanged over the life of the contract. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **If the overnight rate is applicable,** the following rules will determine the interest rate: The base rate plus<u> </u> ☐US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐ shall apply on each interest date(i.e., each natural day of the borrowing period, the same below) in the currency of the borrowing under this contract<u> </u>/<u> </u>base point spreads are determined. The subsequent lender shall determine the interest rate of each accruing date based on the benchmark interest rate applicable on each accruing date and the aforementioned spread. Interest date the daily pricing base rate shall be determined as follows: The first rate fixing date shall be the actual withdrawal date, and the subsequent rate fixing date shall be each interest date after the first rate fixing date. Interest rate fixing date (T day, if the interest rate fixing date is not a business day, The most recent business day before shall be T day) The base rate applicable is the currency of the loan agreed under this Contract as shown on the Bloomberg Financial Telecommunications Terminal page ☐ US Dollar overnight SOFR ☐ British Pound overnight SONIA ☐ Japanese Yen overnight TONA ☐ Euro overnight ESTR ☐ Swiss Franc overnight SARON ☐<u> </u>T-5 working days of the interest rate value. The spread remains unchanged over the life of the contract. **If the foreign currency base rate is negative, the foreign currency base rate is zero.** The working day mentioned in this paragraph refers to the local working day of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The interest rate for the first installment (from the date of actual withdrawal to the date of expiration of this floating period) shall be the latest (foreign currency benchmark rate) plus basis point of the month obtained from Reuters Information System before 9:00 (Beijing time) one business day prior to the date of actual withdrawal. On the repricing date, together with other tranche withdrawals, the latest (foreign currency benchmark rate) for the same floating period obtained from Reuters Information System before 9:00 AM (Beijing time) on the business day prior to the repricing date will be repriced as the applicable interest rate for the floating period. **If the foreign currency base rate is negative, the foreign currency base rate is zero.(Note: This section applies to term interest rates of foreign currencies other than US dollar, British pound, Japanese yen, Euro and Swiss franc)**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Interest calculation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) For the fixed interest rate of Item 1 (1), floating interest rate of RMB loan in Item 1 (2) and floating interest rate of foreign currency loan in Item A and C of this Article:**

The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.

Interest calculation formula: interest = principal**×**actual days**×**daily interest rate.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) For item B of Floating interest rate for foreign currency borrowings in Paragraph 1 (2) of this Article:**

**The interest shall be calculated from the date of the actual withdrawal of the borrower, and shall be calculated according to the actual withdrawal amount and the number of days the borrower has used the money.**

**Simple interest:** The part calculated on the basis of the pricing base and the part calculated on the basis of the spread is calculated on the basis of simple interest.

**Single compound interest combined interest bearing:** For the part calculated according to the pricing base, the interest of the part per business day = (the loan principal + the total amount of interest owed by the previous day) **×** the base day interest rate applicable on that day**;**Non-working days are still accruing simple interest. The portion calculated on the basis of the spread is calculated as simple interest.

Daily interest rate calculation base is 360 days a year, conversion formula: daily interest rate = annual interest rate /360.

The above mentioned working days refer to the local working days of the corresponding currency pricing benchmark authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. the way of interest**

The borrower shall pay interest in the first of the following ways: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Interest accrues quarterly, the 20th day of the last month of each quarter is the coupon Day, and the 21st Day is the coupon payment Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Interest accrues monthly, the 20th day of each month is the coupon Day, and the 21st Day is the Coupon Payment Day.

If the Last Payment date of the principal of the Loan is not the Interest Payment Date, the last payment date of the Principal of the Loan is the Interest Payment Date and the Borrower shall pay all the interest payable.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Penalty interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If the loan is overdue or not used for the purpose agreed in the contract, penalty interest shall be levied on the overdue or misappropriated part from the date of the overdue or misappropriated part until the principal and interest are repaid.

For overdue and misappropriated loans, penalty interest shall be calculated at the higher penalty interest rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the interest and penalty interest that the Borrower fails to pay on time, compound interest shall be calculated **according to the penalty interest rate agreed** in this paragraph in the manner of settlement agreed in Paragraph 3 of this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Penalty interest rate (Remarks: Fill in according to the currency of the loan and the way of determining the interest rate)

**RMB loan penalty interest rate,**

☐ **Penalty interest rate on fixed-rate loans**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Floating interest rate, the floating period is month/ year (Remarks: For fixed interest rate loans with a term of less than one year (inclusive), the floating period is the original loan term;Fixed-rate loans for more than one year, with a one-year floating period). Reprice once per floating period from the date of overdue or misappropriation. The repricing date shall be the overdue or misappropriated date. If there is no such date in the current month, the last day of the current month shall be the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be charged <u>%</u> at the base rate of penalty interest determined in subparagraph C, and the penalty interest rate for misappropriated loans shall be charged at the base rate of such penalty interest rate %

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In the first floating period, the base rate of penalty interest is the borrowing rate agreed in paragraph 1 of this article.After the completion of each floating period, the penalty rate of the next floating period is based on the quoted rate of the market for loans with maturity of ☐ 1 year /☐ 5 years or more (optional) last published by the Nationwide Interbank Offered Center as of one business day prior to the repricing date. ☐ plus /☐ minus (optional) <u>t</u>he base point is determined.

☐ **Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, float in the period specified in paragraph 1 of this Article. The penalty interest repricing date shall be the late or misappropriated date. If there is no corresponding date in the current month, the last day of the current month shall be the penalty interest repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>40</u> %, and the penalty interest rate for misappropriated borrowings shall be charged at the base rate of penalty interest determined in subparagraph C <u>70 %</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. The base rate of penalty interest in the first floating period is overdue or misappropriated the loan interest rate actually executed in the current period. After each floating period, the base rate of penalty interest in the next floating period shall be repriced on the repricing date in accordance with the manner stipulated in paragraph 1 of this Article.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Foreign currency borrowing penalty interest rate, □ Penalty interest rate on fixed-rate loans**

The penalty interest rate for overdue loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points, and the penalty interest rate for misappropriated loans shall be the basis point above the loan interest rate set in Paragraph 1 (1) of this Article basis points

☐ **Floating rate Penalty interest rate for borrowing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The floating period and repricing date of penalty interest shall be determined in accordance with Paragraph 1 (2) of this Article. The basic interest rate of penalty interest within the first floating period shall be overdue or misappropriated the loan interest rate actually implemented in the current period. The basic interest rate of penalty interest in the next floating period after the completion of each floating period shall be repriced in accordance with the manner agreed in Paragraph 1 (2) of this article on the repricing date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

**Floating rate Penalty interest rate for borrowing(Note: This section applies to loans with single compound interest and can not be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. From the date of overdue or misappropriation, the penalty base rate fluctuates according to the settlement period, with the penalty base rate for each settlement period being the effective execution rate for the previous settlement period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The penalty interest rate for overdue loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point, and the penalty interest rate for misappropriated loans shall be the base rate of penalty interest determined in subparagraph A plus the basis point.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Others**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The "loan interest rate" and "penalty interest rate" under this Contract are tax inclusive interest rates, that is, the interest charged by the Lender to the Borrower has included VAT payable in accordance with national laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) In the event of any material change in the pricing basis of the floating interest rate hereunder, the market rules in force at that time shall apply.If the Lender then requires the Borrower to sign a supplementary contract on relevant matters, the Borrower shall cooperate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The term "pricing base" in this Article has the same meaning as the term "base rate".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Under this Contract, "TIBOR" means TIBOR announced and managed by the Japan Bankers Association (or the successor administrator), and "EURIBOR" means EURIBOR announced and managed by the European Money Market Institute (or the successor administrator) as the administrator. "Overnight SOFR" means an overnight SOFR published and administered by the Federal Reserve Bank of New York (or a successor governor) as administrator, "Overnight SONIA" means an overnight SONIA published and administered by the Bank of England (or a successor governor) as administrator, "Overnight TONA" means the overnight TONA published and managed by the Bank of Japan (or successor) as administrator, "Overnight ESTR" means the overnight ESTR published and managed by the European Central Bank (or successor) as administrator, "Overnight SARON" means the overnight SARON published and administered by the Swiss Stock Exchange (or a successor administrator) as the administrator.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 5 Withdrawal conditions**

The borrower shall meet the following conditions for withdrawal:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Contract and its attachments have come into force;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower has provided the guarantee as required by the lender, and the guarantee contract has taken effect and completed the legal approval, registration or filing procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower has reserved for the Lender the Borrower's documents, receipts, seals, names of persons and signature samples related to the conclusion and performance of this Contract, and has filled in the relevant vouchers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower has opened an account necessary for the performance of this Contract as required by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Submit the written withdrawal application and relevant documents proving the purpose of the loan to the lender and handle the relevant withdrawal procedures on the bank <u>2</u> working days before the withdrawal

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. 🗹 The Borrower has submitted to the Lender the resolution and letter of authorization for the Board of Directors or other competent departments to sign and perform this contract;(Note: This clause is optional. Please check whether the borrower has obtained relevant approval and authorization before signing the contract.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. Other withdrawal conditions stipulated by law and agreed by both parties

If the above conditions are not met, the Lender shall have the right to reject the Borrower's withdrawal application, except where the Lender agrees to make the loan.

**Article 6 Time and method of withdrawal**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower shall withdraw the money in the following <u>(2)</u> time and method:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)<u> </u>Year<u> </u>month<u> </u>day One time extraction on the day of the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the loan shall be cleared <u>On July 19, 2022</u> Within a month

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Withdrawal in installments according to the following time:

---

| | |
|:---|:---|
| Time of withdrawal | Amount of withdrawal |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/ |

---

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Lender shall have the right to reject the Borrower's withdrawal application for the part not used within the aforesaid time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Commitment Fee (If the borrower is a small and micro enterprise, this clause shall be deleted;If the borrower is not a small or micro enterprise, one of the three options should be reserved according to the actual situation, and the other options should be deleted)**

**The Lender provides the promised service for the loan that the Borrower may and does not draw during the promised Service period (from the effective date of this Loan Contract to the drawdown date agreed herein) (hereinafter referred to as the "Undrawn Loan").Upon mutual agreement between the Borrower and the lender, the commitment fee is as follows:**

☐ **The Borrower shall pay a commitment fee for the aforesaid promised services. Specific according to the undrawn loan amount, undrawn days and annual rate % calculated. The specific fee date and calculated actual fee amount shall be separately signed in the Promised Service Agreement during the promised service period.**

☐ **The Borrower shall pay a commitment fee for the aforesaid promised services. It is agreed that the commitment fee is RMB Yuan, and the date of collection is (Note: it can be agreed to be collected in one time or in installments. For those charged in installments, please fill in the date and amount of the fee in this column).**

☐ **The Lender shall, in accordance with the principle of "fee reduction and interest concession", waive the commitment fee for the aforesaid aforesaid service and assess the amount to be RMB Yuan.**

**Article 7 Payment of loan funds**

1. Loan issuing account

The Borrower shall open the following account with the Lender as the loan issuance account, and the loan issuance and payment shall be handled through this account. ☐ This account is a special account and can only be used for the issuance and payment of borrowed funds, not for the receipt and payment of other funds.(Note: This sentence is optional and should be deleted if not applicable)

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Payment method of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The payment method of the borrowed funds shall be implemented in accordance with laws and regulations, regulatory provisions and provisions of this Contract. The payment method of the borrowed funds for a single withdrawal shall be confirmed in the withdrawal application. If the lender considers that the payment method of the borrowed funds selected in the withdrawal application does not meet the requirements, it has the right to change the payment method or stop the release and payment of the borrowed funds.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Entrusted payment by the Lender means that the Lender pays the borrowed funds to the Borrower's counterparty conforming to the purpose agreed herein according to the Borrower's withdrawal application and payment authorization. According to the relevant regulations of the CBRC and the internal management regulations of the lender, payment of loan funds meeting one of the following conditions shall be made by the lender as entrusted payment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The lender and the borrower establish a new credit business relationship, and the borrower's credit rating does not meet the lender's internal requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. When the withdrawal application is made, the payment object is clear (with a clear account and account name) and the amount of a single payment exceeds <u>0</u> RMB (excluding, the foreign currency is converted at the actual withdrawal day exchange rate<u> </u>)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Other circumstances specified by the Lender or agreed with the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Independent payment by the Borrower, that is, after the Lender releases the loan funds to the borrower's account according to the borrower's withdrawal application, the borrower pays the loan funds independently to the borrower's counterparty meeting the purpose agreed in the contract. Except for the circumstances stipulated in the preceding paragraph, where the lender is to be entrusted with the payment method, other payment methods of the borrowed funds shall be paid by the borrower independently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Change of payment method. After the submission of the withdrawal application, if the borrower's external payment, credit rating and other conditions change, the borrower shall change the payment method of the borrowed funds if the self-paid borrowed funds meet the conditions agreed in item (2) of Paragraph 2 of this Article. If the payment method is changed or the entrusted payment method changes the amount of external payment, the payment object and the purpose of the loan, etc., the borrower shall provide the lender with a written explanation of the application for the change, and resubmit the application for withdrawal and relevant transaction materials proving the purpose of the funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Specific requirements for entrusted payment of borrowed funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Payment entrustment. If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall have a clear payment authorization in the withdrawal application, that is, authorizes and entrusts the lender to directly pay the borrowed funds to the Borrower's designated counterparty account conforming to the purposes agreed herein after transferring the borrowed funds into the borrower's designated account. And shall provide the name of the counterparty receiving the payment, counterparty account, payment amount and other necessary payment information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Provision of trading information.If the borrower meets the conditions of entrusted payment by the Lender, the borrower shall provide the Lender with the information of its lending account and the account of the counterparty and the certification materials proving that the withdrawal conforms to the purposes agreed in the loan contract at each time of withdrawal. The Borrower shall warrant that all information provided to the Lender is true, complete and valid. If the Lender's entrusted payment obligation fails to be completed in time due to inaccurate, inaccurate or incomplete transaction information provided by the Borrower, the Lender shall not assume any responsibility, and the repayment obligation of the Borrower already incurred under this Contract shall not be affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The lender's fulfillment of the entrusted payment obligation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In case of entrusted payment by the Lender, after the borrower submits the payment authorization and relevant transaction materials, the lender shall pay the borrowed funds to the borrower's counterparty through the borrower's account after examination and approval.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. If the Lender finds through examination that the relevant transaction materials such as the proof of use provided by the Borrower do not conform to provisions hereof or have other defects, it shall have the right to require the Borrower to supplement, replace, explain or resubmit the relevant materials. Before the Borrower submits the relevant transaction materials deemed qualified by the Lender, the Lender shall have the right to refuse the release and payment of the relevant funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. If the Lender is unable to timely pay the borrowed funds to its counterparty in accordance with the payment authorization of the Borrower due to the refund of the bank that opened the counterparty's account, the Lender shall not assume any liability and the repayment obligations of the Borrower already incurred under this Contract shall not be affected. The Borrower hereby authorizes the Lender to freeze the amount returned by the opening bank of the counterparty's account. Under such circumstances, the borrower shall resubmit the payment entrustment, proof of use and other relevant transaction materials.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower shall not evade the entrusted payment by the lender by breaking the whole into pieces.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Upon the release of the borrowed funds, the Borrower shall, as required by the Lender, promptly provide the records and materials for the use of the borrowed funds, including but not limited to the aforementioned materials <u>copy of payment voucher</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Under any of the following circumstances, the Lender has the right to re-determine the terms of loan issuance and payment or to stop the issuance and payment of loan funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower violates this Contract and evades the entrusted payment by the lender by breaking the whole into pieces;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The credit status of the borrower declines or the profitability of the main business is not strong;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Abnormal use of borrowed funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The borrower fails to provide the use records and materials of the loan funds in time as required by the lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The borrower pays the borrowed funds in violation of the provisions of this Article.

**Article 8 Repayment**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower designates the following account as the fund withdrawal account, and the borrower's fund withdrawal shall be entered into this account. The borrower shall provide the information of the funds in and out of the account in time. The lender shall have the right to require the borrower to explain the inflow and outflow of large and abnormal funds in the capital return account and to supervise the account.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise agreed by both parties, the Borrower shall repay the loan under this Contract according to the following repayment plan: <u>(2)</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All loans under this contract shall be repaid on the expiration date of the loan term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Repay the loan under this Contract according to the following repayment plan:

---

| | |
|:---|:---|
| Time of repayment | Amount of repayment |
| 2023.07.18 | ￥2,000,000.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Other repayment plans:<u> </u>

If the borrower wants to change the above repayment plan, it shall submit a written application to the Lender before <u>5</u> banking day, and the change of the repayment plan shall be confirmed by both parties in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Unless otherwise agreed by the parties, if the Borrower defaults on the principal and interest of the loan and the expense of realizing the claim, the Lender shall have the right to determine the sequence of repayment of the principal or interest and the expense of realizing the claim;In the case of installment repayment, if there are multiple loans due or overdue under this contract, the Lender has the right to determine the order of repayment of a certain repayment by the Borrower;Where there are multiple expired loan contracts between the borrower and the lender, the lender has the right to determine the order of contract performance by the borrower for each repayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Unless otherwise agreed by both parties, the borrower may repay the loan in advance, but shall notify the lender in writing <u>30</u> banking day in advance.he amount of the prepayment is used first to repay the last loan due, in reverse order.**

**For borrowings with single compound interest, such as pre-repayment or partial pre-repayment, the interest corresponding to the pre-repayment principal should be settled in one lump sum.**

☐ **The Lender shall have the right to charge liquidated damages for early repayment according to the standard of the early repayment portion(Note: This clause is optional. If it is not applicable or the borrower is a small and micro enterprise, it shall be deleted)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower shall repay In the <u>first</u> way below

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower shall deposit the full amount of funds in the following repayment account for repayment not later than <u>5</u> banking working day prior to the maturity of each principal and interest, and the Lender shall have the right to deduct the collection from the account voluntarily on the due date of each principal and interest.

Account Name:**<u>Jiangsu Huhu Electromechanical Technology Co., LTD</u>**

Account Number:**<u>483277737262</u>**

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Other repayment methods agreed by both parties:<u> </u>

**Article 9 Guarantee** (Note: Fill in optionally according to the actual conditions, and delete the inapplicable clauses)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The debt hereunder shall be guaranteed in the following ways:

☐ No guarantee.

☐ This contract belongs to the guarantor <u>Yinglai Wang,Yujun Xiao</u> is the main contract under the No.<u>Z66X2022034</u> ☐ Maximum Amount Guarantee Contract /☐ Maximum Amount Mortgage Contract /☐ Maximum Amount Pledge Contract signed between the Guarantor and the Lender, and the guarantor shall provide the maximum amount guarantee.

☐ **(Other forms of guarantee)<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. In the event that the Borrower or the Guarantor may affect its ability to perform the Agreement, or that the Guarantee contract becomes invalid, cancelled or rescinded, or that the Borrower or the Guarantor's financial situation deteriorates or becomes involved in major litigation or arbitration cases, or that the Borrower or the Guarantor's accounts are closed or for other reasons may affect its ability to perform the Agreement, If the guarantor breaches the guarantee contract or any other contract between the guarantor and the Lender, or the guarantee is devalued, damaged, lost or sealed, resulting in the weakening or loss of the value of the guarantee, the Lender shall have the right to require and the Borrower shall have the obligation to provide a new guarantee or replace the guarantor to guarantee the obligations hereunder.

**Article 10 Invoicing**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower may apply to the Lender for issuing a VAT invoice (☐ special VAT invoice /☐ general VAT invoice) after the Lender has confirmed receipt of the payment, and the Lender shall issue a VAT invoice to the Borrower after receiving the Borrower's application for issuing a VAT invoice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower may apply for the issuance of VAT invoice to the corresponding business handling agency or other agencies designated by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower shall confirm that the payer, the contract signer and the buyer listed in the VAT invoice are the same tax payer.In case of any inconsistency, the Borrower cannot enter the account or deduct the input tax according to law, the relevant loss shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. If the borrower loses the invoice after obtaining it, the Lender need not issue the VAT invoice to the borrower again.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. If the lender provides discount to the borrower through negotiation, the VAT invoice amount shall be subject to the discounted price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The Lender will not provide a VAT invoice if the Lender provides services to the Borrower free of charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. When the Lender issues a VAT invoice to the Borrower, the Borrower shall check the invoice information in time.If the invoice information is wrong, the borrower shall promptly apply to the lender for a new VAT invoice.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 11 Declarations and undertakings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. The Borrower declares as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Borrower is legally registered and exists, and has the full capacity for civil rights and conduct necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The signing and performance of this Contract is based on the true intention of the Borrower, which has been legally and effectively authorized in accordance with its articles of association or other internal management documents, and will not violate any agreement, contract or other legal documents binding on the Borrower;The Borrower has or will obtain all relevant approvals, permits, filings or registrations necessary to enter into and perform this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) All documents, financial statements, vouchers and other materials provided by the Borrower to the Lender under this Contract are true, complete, accurate and valid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The transaction background of the borrower's application for subordination business with the lender is true and legal, does not involve money laundering, terrorist financing, WMD proliferation financing, tax evasion, fraud and other illegal purposes, and does not violate the provisions of the United Nations, China and other applicable sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The Borrower does not conceal from the Lender events that may affect its and the guarantor's financial position and ability to perform the Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The borrower and the loan project meet the national environmental protection standards, and the enterprises and projects with serious energy consumption and pollution problems and ineffective rectification are not subject to the risk of energy consumption and pollution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The purpose of borrowing and the source of repayment are genuine and legal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Other matters declared by the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. The Borrower undertakes as follows:<u> </u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Submit its financial statements (including but not limited to annual reports, quarterly reports and monthly reports) and other relevant materials to the Lender on a regular or timely basis as required by the Lender;(a) The Borrower ensures that it continues to meet the following financial criteria:<u>Keep profitable</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the Borrower has entered into or will enter into a counter-security agreement or similar agreement with the guarantor of this Contract in respect of its security obligations, such agreement will not prejudice any of the Lender's rights under this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Accept the lender's credit inspection and supervision, and give sufficient assistance and cooperation;Where the borrower makes the payment independently, it shall, as required by the lender, regularly summarize and report the payment and use of the loan funds. The specific time for the report is: <u>On the 15th of each month</u>

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) In the event of merger, division, capital reduction, equity transfer, foreign investment, substantial increase in debt financing, transfer of material assets and creditor's rights and other matters that may adversely affect the borrower's ability to repay the debt, the borrower shall obtain the written consent of the Lender in advance;

The Borrower shall promptly notify the Lender of any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Change of articles of association, business scope, registered capital and legal representative of the borrower
or guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Change the mode of operation in any form such as joint venture, joint venture, cooperation, contract operation,
reorganization, restructuring and planned listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Is involved in major litigation or arbitration cases, or property or security is sealed, seized or placed
in custody, or new security is placed on the security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Being closed down, dissolved, liquidated, suspended for rectification, being revoked, having its business
license revoked, or (being) applying for bankruptcy, etc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Shareholders, directors and current senior managers are involved in major cases or economic disputes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. The borrower defaults under any other contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Operating difficulties or deterioration of its financial situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The order of repayment of the borrower's debts to the lender is higher than that of the borrower's shareholders, and no less than that of other creditors;

☐ Moreover, the Borrower shall not repay the loan from the shareholder of the Borrower before the effective date of this Contract and the completion of the repayment of the principal, interest and related expenses of the loan hereunder;(Note: This sentence is optional and should be deleted if not applicable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) ☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of the previous fiscal year, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower does not distribute dividends and bonuses to the shareholders in any form;

☐ The Borrower shall not distribute dividends and bonuses to the shareholders in any form from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ The dividend and bonus distributed by the Borrower to the shareholders shall not exceed % of the Borrower's after-tax profit from the commencement of this Contract until the loan principal, interest and related expenses under this Contract are paid off.

☐ When the net profit after tax of the relevant fiscal year is zero or negative, or the after-tax profit is not enough to cover the accumulated losses of previous fiscal years, or the pre-tax profit is not used to pay off the principal, interest and expense payable by the borrower in the current fiscal year, or the pre-tax profit is not enough to pay off the principal, interest and expense of the next period, The borrower shall not distribute dividends and bonuses to the shareholders in any form. Where dividends and bonuses can be distributed to shareholders in accordance with the provisions of this paragraph, the dividend and bonus distributed to shareholders by the Borrower shall not exceed % of the Borrower's after-tax profit;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) The borrower does not dispose of its own assets in a manner that reduces its solvency. It undertakes that the total amount of its foreign guarantee shall not be more than <u>2</u> times of its own net assets, and the total amount of its foreign guarantee and the amount of its single guarantee shall not exceed the limit prescribed by its articles of association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Except for the purposes agreed herein or with the consent of the Lender, the Borrower shall not transfer the loan funds hereunder to the account of the same name or the account of the affiliated party.

For the transfer of the account of the borrower with the same name or the account of a related party, the Borrower shall provide the corresponding supporting materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) ☐ With respect to the loan hereunder, the guarantee conditions, the pricing of the loan interest rate, the order of repayment and other loan conditions provided by the Borrower to the Lender shall not be lower than those now or in the future provided to any other financial institution;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) ☐ Go through the foreign exchange loan registration, principal and interest repayment approval and other procedures at the SAFE in time;(This is an optional clause)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) The lender shall have the right to collect the loan in advance according to the borrower's capital collection situation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) ☐ The Borrower shall submit its environmental and social risk report to the Lender. The Borrower represents and warrants to strengthen environmental and social risk management and undertakes to accept supervision by the lender. Any breach of the foregoing by the Borrower shall constitute or be deemed to be a breach under this Agreement, and the Lender may take remedies for breach in accordance with this Agreement;(Note: This clause is optional. According to the CBRC Green Credit Guidelines, if the borrower is a customer with major environmental and social risks, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) Cooperate with the lender to conduct due diligence, provide and update information about the Institution and its beneficial owners, and provide background information about the transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14) Other commitments of the Borrower:

**Article 12 Disclosure of related transactions within the Group of the borrower**

The parties agree that <u>1</u> the following clause

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower is not one of the group customers identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Commercial Banks Group Customers (the "Guidelines").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower is a group customer identified by the Lender in accordance with the Guidelines on Risk Management of Credit Granting Business to Group Customers of Commercial Banks (hereinafter referred to as the "Guidelines").The Borrower shall timely report to the Lender the related transactions of more than 10% of its net assets, including the related relationships of the parties to the transaction, the items and nature of the transaction, the amount or corresponding proportion of the transaction, and pricing policies (including transactions with no amount or only a nominal amount).

If the borrower is under any of the following circumstances, the lender has the right to unilaterally decide to stop paying the loan that the borrower has not yet used and to recover part or all of the principal and interest of the loan in advance: using a false contract with a related party to discount or pledge the creditor's rights such as notes receivable and accounts receivable with no actual trade background to the bank to extract bank funds or grant credit;Major merger, acquisition and reorganization, which the lender considers may affect the security of the loan;Intentionally evading and abolishing bank creditor's rights through affiliated transactions;Other circumstances as stipulated in Article 18 of the Guidelines.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 13 Event of breach and treatment**

**Any of the following shall constitute or be deemed to be an event of default by the Borrower under this Contract:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Borrower fails to perform its obligations of payment and repayment to the Lender as agreed herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Borrower fails to use the loan funds in the way agreed herein or fails to use the obtained funds for the purposes agreed herein;Or the borrower uses the loan funds to transfer loans or purchase other financial products for arbitrage;Or the borrower unlawfully added the hidden debt of local government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Borrower's statements in this Contract are untrue or violate its commitments in this Contract;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Borrower fails to provide a new guarantee or replace the guarantor in accordance with the provisions of this Contract if the Lender considers that the occurrence of any situation as stipulated in Article 11 (2) (4) may affect the financial condition and performance ability of the borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The borrower's credit status declines, or the borrower's profitability, solvency, operating capacity, cash flow and other financial indicators deteriorate, breaking the index constraints agreed herein or other financial agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. ☐ The Borrower defaults under other contracts with the Lender or other institutions of Bank of China Limited;

☐ The Borrower defaults under other contracts with the lender or other institutions of Bank of China Limited;Event of default under the credit granting contract between the borrower and other financial institutions;

(Note: Select one according to actual business needs, and delete the inapplicable terms)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The guarantor breaches the terms of the guarantee contract, or breaches any other contract between the guarantor and the lender or other institutions of Bank of China Limited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. The Borrower terminates its business or is dissolved, revoked or bankrupt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. The Borrower is involved or may be involved in major economic disputes, lawsuits or arbitration, or its assets are sealed up, seized or enforced, or its assets are investigated or punished by judicial authorities, tax authorities, industry and commerce authorities or other administrative authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. The Borrower's major investors and key management personnel have abnormal changes, disappeared or been investigated or restricted by judicial authorities according to law, which has or may affect the performance of its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. When the Lender reviews the financial position and performance ability of the Borrower annually (i.e., every year after the effective date of this Contract), it finds that there are circumstances that may affect the financial position and performance ability of the Borrower or the guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. The designated fund return account has large amount and abnormal capital inflow and outflow, and the borrower cannot provide explanatory materials approved by the lender;

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

13.☐ The construction of energy-saving projects is seriously delayed, energy-saving technology and equipment have serious defects, the main facilities or equipment stop and reduce production, resulting in a substantial decline in energy consumption load, the actual energy saving is significantly lower than the predicted amount, the energy saving income cannot be timely returned to the designated account, the borrower participates in private high-interest lending, without the consent of the lender to guarantee or borrow new debt, and the main financial indicators seriously deteriorate;(Note: This clause is optional. When conducting energy efficiency credit business in accordance with the Energy Efficiency Credit Guidelines, this clause should be selected. If not applicable, it should be deleted)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. The Borrower refuses to cooperate with the Lender in carrying out due diligence, the Borrower or its transaction/counterparty is suspected of money laundering, terrorist financing, nuclear weapons proliferation, violation of applicable sanctions or other violations, or the Borrower or the guarantor is included in the United Nations, China and other applicable sanctions list or scope of sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. The Borrower breaches other provisions of this Contract concerning the rights and obligations of the parties.

**In case of the occurrence of the event of default specified in the preceding paragraph, the Lender shall have the right to take the following measures separately or simultaneously depending on the specific circumstances:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Require the borrower and guarantor to correct the breach within a time limit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Reduce, suspend, cancel or terminate the credit line to the Borrower in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Suspend or terminate, in whole or in part, the acceptance of the Borrower's withdrawal and other business applications under this Contract and other contracts between the Borrower and the Lender;To suspend, cancel, or terminate the issuance, payment and handling of loans and trade financing that have not yet been issued in whole or in part;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Declare that all or part of the outstanding loan/trade finance principal and interest and other amounts payable under this Contract and other contracts between the Borrower and the Lender are immediately due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Terminate or rescind this Contract and terminate or rescind in whole or in part other contracts between the Borrower and the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Require the Borrower to compensate the losses caused to the Lender by its breach of contract, including but not limited to the loss of legal costs, attorney's fees, notary fees, enforcement fees and other related expenses caused by the realization of the creditor's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The amount of the Borrower in the accounts opened by the Lender and other institutions of Bank of China Limited shall be deducted to pay off all or part of the Borrower's debts to the Lender under this Contract. The amount not due in the account is deemed to be due early.If the currency of the account is different from the Lender's valuation currency, it shall be converted at the Lender's applicable foreign exchange rate at the time of collection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Exercise of guarantee real right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Require the guarantor to undertake the guarantee liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. Such other measures as the Lender deems necessary and possible.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 14 Reservation of Rights**

If either party fails to exercise any or all of its rights under this Contract or requires the other party to perform or assume any or all of its obligations and responsibilities, it shall not constitute a waiver of such rights or an exemption from such obligations and responsibilities.

Any tolerance, extension or postponement by either party to the other party of its rights hereunder shall not affect any of its rights under this Contract, laws and regulations, nor shall it be deemed as a waiver of such rights.

**Article 15 Alteration, modification and termination**

This Contract may be modified or modified in writing upon mutual agreement of both parties. Any modification or modification shall form an integral part of this Contract.

Unless otherwise provided by laws and regulations or agreed by the parties, this Contract shall not be terminated until all rights and obligations hereunder have been fulfilled.

Unless otherwise provided by laws or regulations or agreed by the parties, the invalidity of any provision of this Contract shall not affect the legal effect of the other provisions.

**Article 16 Application of law and dispute settlement**

This contract shall be governed by the laws of the People's Republic of China.

After the Contract comes into force, all disputes arising out of or in connection with the execution or performance of this Contract shall be settled by the parties through negotiation. **If no agreement can be reached through negotiation, either party may adopt the <u>two</u> of the following methods:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Arbitration. submit

☐ China International Economic and Trade Arbitration Commission

☐ Beijing Arbitration Commission (Beijing International Arbitration Center)

☐ Arbitration Commission <u>/</u> (place of arbitration) In accordance with the Commission's arbitration rules in effect at the time of submission of the application for arbitration. The arbitral award shall be final and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Lawsuits. The parties may choose the Chinese court through consultation to settle the matter through litigation.

☐ Bring a suit in accordance with law to the people's court of the place where the lender or any other Bank of China Limited institution exercising its rights and obligations in accordance with this Contract or Individual Agreement has its domicile.

☐ Bring legal proceedings to the International Commercial Tribunal of the Supreme People's Court (international commercial disputes with a subject matter of more than 300 million yuan).

☐ Bring a suit to the people's court having jurisdiction in accordance with the law.

During the dispute settlement period, if the dispute does not affect the performance of the other terms of this Contract, the other terms shall continue to be performed.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Article 17 Appendix**

The following attachments and other attachments confirmed by both parties shall form an integral part of this Contract and have the same legal effect as this Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Withdrawal application form (format);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Notification Letter of Annualized Loan Interest Rate (format);

3.....

**Article 18 Other Provisions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Without the written consent of the Lender, the Borrower shall not assign any rights and obligations hereunder to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the Lender is required to entrust other institutions of Bank of China Limited to perform the rights and obligations hereunder due to business needs, or assign the loan business hereunder to other institutions of Bank of China Limited to undertake and manage, the Borrower agrees.Any other institution of Bank of China Limited authorized by the Lender or any other institution of Bank of China Limited undertaking the loan business hereunder shall have the right to exercise all rights hereunder, and shall have the right to file a lawsuit in the court in the name of such institution, submit the dispute to an arbitration institution or apply for enforcement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without affecting other provisions hereof, this Contract shall be legally binding on both parties and their successors and assigns in accordance with the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Unless otherwise agreed, both parties shall designate the domicile set forth in this Contract as the correspondence and contact address and the delivery address confirmed by both parties to be valid. The applicable scope of service address includes the delivery of various notices, contracts and other documents during the performance of the contract between the parties, as well as relevant documents and legal documents in the event of disputes arising from this contract, and the first instance, second instance, retrial and execution procedures after the disputes enter into arbitration and civil proceedings.

In case of any change of the above address, the changing party shall inform the other party of the changed address in writing <u>two</u> working day in advance. In arbitration and civil proceedings, either party shall perform the obligation of serving notice of the change of address to the arbitration institution or the court when the address is changed. If either party fails to perform the notification obligation in the foregoing manner, the address for service confirmed herein shall still be deemed to be the valid address for service.

If the legal document is not actually received by one party due to inaccurate address provided or confirmed by one party, failure to notify the other party and the court in time after the change of the address of service, or the designated receiver's refusal to sign for it, the date of delivery of the legal document shall be deemed as the date of service. In the case of direct service, the date on which the Courier records the information on the acknowledgement of service on the spot shall be deemed as the date of service.

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Transactions hereunder shall be conducted on the basis of their respective independent interests. If other parties to the transaction constitute affiliates or associates of the Lender in accordance with relevant laws, regulations and regulatory requirements, none of them will seek to use such affiliates to affect the fairness of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The titles and business names in this Contract are for convenience only and shall not be used to interpret the contents of the terms and the rights and obligations of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. The Lender shall have the right to provide the information related to this Contract and other relevant information of the Borrower to the Financial Credit Information Basic Database and other credit information databases established according to law in accordance with relevant laws, regulations and regulatory provisions for the inquiry and use by properly qualified institutions or individuals according to law. The Lender also has the right, for the purpose of the conclusion and performance of this Contract, to inquire the relevant information of the Borrower through the Basic financial credit Information database and other legally established credit information database.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. In case of legal holidays, the withdrawal date and repayment date shall be postponed to the first working day after the holidays.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. If the Lender fails to perform this Agreement or fails to perform as agreed herein due to changes in laws, regulations, regulatory provisions or requirements of regulatory authorities, the Lender shall have the right to terminate or alter the performance of this Agreement and the individual Agreements hereunder in accordance with changes in laws, regulations, regulatory provisions or requirements of regulatory authorities. If the Lender is unable to perform or perform as agreed herein due to termination or alteration of this Agreement for such reasons, the Lender shall be exempted from liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. The Borrower may consult and complain about the Contract and the business and charges hereunder through the contact number of the lender listed herein.**

☐ **11. The Borrower and the lender agree to perform compulsory notarization through consultation. Within <u>/</u> working days after the signing of this Contract, the Borrower and the lender shall go to the notary office to perform compulsory notarization. The compulsory notary fee shall be borne by the borrower <u>/</u> and the lender <u>/</u> .If the borrower is a small and micro enterprise, the compulsory notary fee shall be borne by the lender.**

**If the borrower fails to perform or improperly perform the repayment obligations stipulated in this Contract after performing the compulsory notarization in accordance with this Contract, the lender may apply to the notary office for a certificate of execution and apply to the people's court with jurisdiction for compulsory execution, and the borrower is willing to accept compulsory execution.**

(Note: This clause is optional, if not applicable, it needs to be deleted)

**Article 19 Effectiveness of a Contract**

This contract shall come into force upon being signed and sealed by the legal representatives (responsible persons) or authorized signatories of both parties.

This contract is made in duplicate with each party holding the same legal effect.

---

| | | | |
|:---|:---|:---|:---|
| **Borrower:** | | **Lender:** | **Bank of China Limited,Wuxi Branch** |
| **Authorized Signatory:** | | **Authorized signatory:** | |
| **Date of signing:** | **On July 19, 2022** | **Date of signing:** | **On July 19, 2022** |

---

D—04：Working capital Loan Contract —— is applicable to single, and class A, B single working capital loan business (newly signed domestic contract of RMB interest rate, non-USD / pound / Euro / yen / CHF foreign currency interest rate, USD / pound / Euro / yen / CHF / new benchmark interest rate loan contract)

**Attached is the notification letter of the annualized interest rate of the loan**

No :

To: __________/_________ (Borrower)

1. Our bank and your company have signed the Working Capital Loan Contract numbered ______/____.Under the aforementioned contract, our bank, as the lender, provides the loan to your company at an annualized interest rate of ___/___.The annualized rate of interest (☐ simple /☐ compound (optional)) consists of:

(1) The loan interest calculated according to the loan interest rate stipulated in Paragraph 1 of Article 4 of the aforesaid Contract;

(2) All expenses directly related to the loan as stipulated in Article ______/__ of the aforesaid Contract;(Delete if not applicable)

(3) All kinds of charges directly related to the loan agreed in the _______/__ (number: __/___) separately signed by your company and our bank.(Delete if not applicable)

2. This notification letter, as an attachment to the aforementioned contract, constitutes an integral part and has the same legal effect as the aforementioned contract. The provisions of the aforementioned contract shall apply to the matters not agreed herein.

Lender: <u>/</u> 

Authorized signatory: <u>/</u> 

Date of signing: <u>/</u>

## Exhibit 10.9

**Exhibit 10.9**

![](ex10-9_001.jpg)

![](ex10-9_002.jpg)

![](ex10-9_003.jpg)

![](ex10-9_004.jpg)

## Exhibit 10.10

**Exhibit 10.10**

Page:1/5

![](ex10-10_001.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Vendor Code | 49015-560633 | PO NO | L6K-200054018437-AUKS | REV 0 |
| Vendor | Wuxi Huhu Electromechanical Technology Co., LTD | Agent |  |  |
| Contact | \*\*\*\*\*\* | Contact |  |  |
| Address | A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City | Address |  |  |
| Tel | \*\*\*\*\*\* | Tel |  |  |
| Fax |  | Fax |  |  |

---

Tax Registration Number: 91320214346537120H

---

| | | | |
|:---|:---|:---|:---|
| Payment | O/A 120 Days on 15<sup>th</sup> | Ship to | AU Optronics (Kunshan) Co., Ltd |
| Currency | CNY |  | No.6, Longteng Road, Economic and |
| Trade Term | DDP |  | Technological Development Zone, Kunshan<br> City, Jiangsu Province |
| Ship Way | BY TRUCK |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |
| Po prt date | 2020/12/8 0:00:00 | Bill to | AU Optronics (Kunshan) Co., Ltd |
| Tax | 9 |  | No.6, Longteng Road, Economic and |
| Buyer | Hu Tao |  | Technological Development Zone, Kunshan |
| Forwarder | Forwarder instruction & Payment Info: http://srm.auo.com/srm/srm.asp |  | City, Jiangsu Province <br> taxpayer's registration number: 91320583692597767W |
|  |  |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Line <br>Item No | Item Description<br> Maker Code<br> Supplier Item No | Qty<br> Deliver Date<br> Budget No | Unit Set | Unit Price<br> PR NO<br> Asset No | Amount Subinventory |
| 1 Y.NORMAL.EXP | L 6 KB mold thinning Local Scrubber new HF chloride ashamed value tester project in the room | 1.0000 | 8 | 63000.000000 | 63000.000000 |
|  |  | 2020/12/25 0:00:00 |  | 202000540983 |  |

---

---

| | | |
|:---|:---|:---|
| Amount |  | 63000.00 |
| 9 |  | 5670.00 |
| Total Amount | CNY | 68670.00 |

---

---

| | | |
|:---|:---|:---|
| ![](ex10-10_002.jpg) | ![](ex10-10_003.jpg) | ![](ex10-10_004.jpg) |
| 2020.12.08 | 2020.12.08 | 2020.12.08 |
| Buyer | Section Head/<br> assistant manager | Department head/<br> manager |

---

  <br> Vendor Signature

Page:2/5

![](ex10-10_001.jpg)

---

| | | | | |
|:---|:---|:---|:---|:---|
| Vendor Code | 49015-560633 | PO NO | L6K-200054018437-AUKS | REV 0 |
| Vendor | Wuxi Huhu Electromechanical Technology Co., LTD | Agent |  |  |
| Contact | \*\*\*\*\*\* | Contact |  |  |
| Address | A3-1208, Tian 'an Wisdom City, Xinwu District, Wuxi City | Address |  |  |
| Tel | \*\*\*\*\*\* | Tel |  |  |
| Fax |  | Fax |  |  |

---

Tax Registration Number: 91320214346537120H

---

| | | | |
|:---|:---|:---|:---|
| Payment | O/A 120 Days on 15<sup>th</sup> | Ship to | AU Optronics (Kunshan) Co., Ltd |
| Currency | CNY |  | No.6, Longteng Road, Economic and |
| Trade Term | DDP |  | Technological Development Zone, Kunshan |
| Ship Way | BY TRUCK |  | City, Jiangsu Province<br> Tel:+86-0512-50358800 Fax:+86-0512-50358512 |
| Port date | 2020/12/8 0:00:00 | Bill to | AU Optronics (Kunshan) Co., Ltd |
| Tax | 9 |  | No.6, Longteng Road, Economic and |
| Buyer | ![](ex10-10_005.jpg) |  | Technological Development Zone, Kunshan |
| Forwarder | Forwarder instruction & Payment Info: http://srm.auo.com/srm/srm.asp |  | City, Jiangsu Province <br> taxpayer's registration number: 91320583692597767W |
|  |  |  | Tel:+86-0512-50358800 Fax:+86-0512-50358512 |

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|:---|:---|:---|:---|:---|:---|
| Line <br>Item No | Item Description<br> Maker Code<br> Supplier Item No | Qty<br> Deliver Date<br> Budget No | Unit Set | Unit Price<br> PR NO<br> Asset No | Amount Subinventory |

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|:---|:---|:---|
| To Supplier: | Please refer to the following precautions before shipment: | Please refer to the following precautions before shipment: |
|  | 1. | Use unit: repair and storage ext: 1071.; Mail:SiuCheng.Liu@auo.com |
|  | 2. | Purchasing personnel of this case: Hu Tao ext:1821. |
|  | 3. | Quotation number 1 Date :HHJDBJ20201027-1. |
|  | 4. | Delivery date: as required by AUKSuser. |
|  | 5. | Guarantee: None. |
|  | 6. | Payment terms :o1A120Dayson15th. |
|  | 7. | Upon receipt of the order, please contact the user immediately to confirm the detailed delivery date, sign and return to the Mail:Matt.Hu@auo.com |
|  | 8. | Please send the invoice and delivery note with the goods to the warehouse for acceptance, and label the order number, product name and delivery quantity on the invoice. After investigation, if not in accordance with this regulation, will be returned to the processing. |
|  | 9. | The actual delivery time shall be notified by the user. |
|  | 10. | Matters not mentioned herein shall be notified separately by referring to the laws and regulations of each receiving country and AU. |

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\* AU Optronics The right to cancel or modify this order shall be notified in writing within 0 days after the date of the confirmation. The Supplier is aware of or holds any secrets of AU as a result of this order, Supplier agrees to maintain the confidentiality of any confidential information that is known to or held by you as a result of this mask and not disclose it to any third party.

\* When delivering the goods, please mark line and item.

\* The name of the product on the ticket must be the same as description the mask.

\* The amount of cover on the ticket should not be greater than the amount of cover and cover on the mask.

\* Supplier Consent - We agree that we will not receive any request or request from any third party on the basis of business, work, business, trial or other wisdom (whether registered or not) because the goods or clothing supplied by the supplier is removed, whether it is a finished or semi-finished product or a vaporware. The Supplier agrees to pay all costs, losses, expenses and damages arising therefrom (including but not limited to legal fees). Dong would like you to inform the skeleton such as master eggs or eyes for handsome, out of the pasta responsible tiger reason including reconciliation, Jin tune - cut phase mouse matters.

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| | | |
|:---|:---|:---|
| ![](ex10-10_002.jpg) | ![](ex10-10_003.jpg) | ![](ex10-10_004.jpg) |
| 2020.12.08 | 2020.12.08 | 2020.12.08 |
| Buyer | Section Head/<br> assistant manager | Department head/<br> manager |

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  <br> Vendor Signature

Page:3/5

![](ex10-10_001.jpg)

**··· Basic contract of AUO order ···**

\* On-time delivery is an important factor in the performance of this order. Au Optronics Limited (AUo) may cancel part or all of the order in the event of any delay due to reasons attributable to the supplier.

\* Supplier Guarantee: All goods or services supplied ("Goods") are new and unused. The Supplier is the sole owner of the goods supplied and has been authorized to sell the goods. The Supplier guarantees that the goods supplied are not available Subject to any legal disputes (including but not limited to: infringement of intellectual property rights litigation, validity of rights litigation), and at least 18 months from the date of final acceptance of the goods by AUo (if the final bargaining record or other written agreement is different from this period, the longest warranty period shall prevail), and guarantee that there is no weakness in design, materials and construction.

\* Supplier further agrees to guarantee, protect and indemnify AUo, its employees, its customers and consumers so that AUo will not receive any goods, whether finished or semi-finished or parts, from the Supplier Any claim or claim by any third party based on any right and intellectual property rights (including, without limitation, patent rights, Copyrights, trademarks, trade secrets or other intellectual property rights (whether registered or not). In addition, if Supplier breaches any term of this Order,AUo shall have the right to cancel the order, terminate the Contract and further cooperation. If any damage is caused to AUo,AUo shall be held responsible, Auo shall be directly offset and deducted from the purchase price and shall be legally claimed, and Supplier agrees to pay all costs, losses, expenses and damages arising therefrom (including but not limited to attorney's fees). And shall, upon notification of such claim or request by AUo, be responsible for handling all relevant matters including reconciliation and coordination.

\* If the products/processes/services to be purchased are used as vehicle types, the products to be purchased must comply with the laws and regulations of the following countries: country of receipt, country of shipment, country of destination identified by the customer.

\* Supplier further agrees to abide by the terms and conditions of the Sale and Purchase Agreement entered into with AUo.

\* Supplier agrees to maintain the confidentiality of any AUo confidential information known or held by Supplier in connection with this Order and not disclose it to any third party.

\* Supplier shall confirm acceptance of order by fax or other written confirmation within 7 days after receipt of order.

\* AUo may unilaterally notify Supplier in writing (by fax, E-mail or post) to "cancel" or "modify" this Order line by line prior to Supplier's return of this Order. Or AUo may "cancel" or "modify" this Order in writing to Supplier until Supplier has confirmed this Order and has not fulfilled it in full.

\* The invoice shall indicate the order number and material number, which will be collected at the receiving area of AUo when the goods are delivered. Suppliers who deliver the goods between the 25th and the end of the current month shall issue the invoice of the next month (next month) to AUo for payment.

  <br> Vendor Signature

Page:4/5

![](ex10-10_001.jpg)

\* The package shall be indicated: a. product name b. quantity c. AUo material No. d. supplier and compact name e. compact, valid date and batch No. f. Order No. g. Patent number (as necessary if available).

\* Initial shipment and supply suppliers shall provide 6 specification confirmation documents for AUo confirmation.

\* Except for consumables and spare parts. The shipment inspection report shall be placed in the top box with the words "The shipment inspection report is in this box".

\* Supplier shall not deliver in advance except by written notice from AUo.

\* VManufacturer network query payment website : http://srm.auo.com/srm/srm.asp

Delivery requirement

\* Supplier shall indicate this Purchase Order Number, Supplier Number and AUo Material Number on all delivery documents (including but not limited to: letters, uniform invoices, import and export documents, packing lists, delivery lists, bills of Lading), and AUo delivery lists shall be applied when delivering goods.

\* Delivery shall be in accordance with the delivery date and quantity specified in the purchase order (subject to quality requirements).

\* Unless otherwise agreed by both parties, a penalty of three thousandths (0.3%) of the total amount of the goods delivered late for each day of delay shall be imposed, and AUo shall have the right to cancel the order and directly offset the penalty with other payments.

\* The supplier shall take care to avoid bumping and falling during delivery and bear the risk of transporting the goods in transit.

\* The contents of invoices, bills of lading and documents related to customs clearance provided at the time of delivery shall be consistent with AUo's order. AUo shall be entitled to claim against the supplier for any loss caused by omissions.

\* The goods listed in this order are subject to inspection by AUo in accordance with the specifications and quality requirements of the order. When AUo has accepted the goods in writing or in other forms, the Supplier shall complete the delivery obligation. After the completion of the delivery obligation, the Supplier shall still be responsible for the product warranty.

Quality requirement

\* Goods contracted by the Supplier shall be contracted in accordance with the requirements set out in the latest specifications, blueprints and acknowledgement issued by AUo.

\* The Supplier shall respond within 24 hours after AUo notifies the Supplier of defective products, and repair or replace the defective products within 7 days, otherwise AUo may appoint a third party to repair the defective products at the Supplier's expense.

\* Incoming quality inspection shall be conducted according to the AQL level set by AUo and supplier.

\* The outer packing must be firm, moisture-proof and shock-proof.

\* Defective products shall be returned for repair in full compliance with the original AUo specifications.

\* The verification of external inspection materials, supplier handling and storage methods are based on AUo Quality Control specifications.

\* Supplier will notify AUo by VECA(Supplier Engineering Change Application) prior to any changes in materials, contracts, material suppliers and production locations in accordance with AUo's Change Management regulations.

\* Supplier shall comply with AUo product quality specifications (e.g. medical, automotive, aerospace...) .

  <br> Vendor Signature

Page:5/5

![](ex10-10_001.jpg)

Work safety requirement

\* The Supplier will perform the employer's duties in accordance with the law by conducting personnel health examinations, education and training, and taking out labor and accident insurance.

\* The supplier shall provide safety tools and equipment that meet the requirements of laws and regulations for the operators to use.

\* Supplier shall provide personal protective equipment that complies with regulatory requirements and CNS requirements.

\* The supplier shall have a good safety work plan and take good accident prevention measures.

\* Supplier shall be responsible for on-site safety supervision.

\* Supplier shall follow AUo personnel instructions.

Socially sound environmental responsibility (SER) requirements

\* supplier should understand, plan, and follow the electronic industry code of conduct (EICC, http://www.eicc.info/code.htmI).

\* Supplier shall cooperate with AUo's labor, environmental, safety, health and ethics audits.

\* Tier 1 suppliers and outsourcers should obtain ISo14001 certification, and non-qualified suppliers or new manufacturers should also obtain ISO 14001 certification within the year of becoming an AUo qualified manufacturer.

\* Supplier should be aware that any violation of EICC or relevant local laws and regulations will affect the Supplier's business cooperation with AUo and may result in AUo's direct termination of the business cooperation with Supplier. Green product requirements

\* Supplier agrees to supply AUo with products (including those from secondary suppliers) that do not use gold (Au), tin (Sn), key (W) and other minerals from illegal mining in the Congo and the adjacent Tiaotu region.

In the event of any breach of the above, Supplier shall immediately notify AUo in writing of its use of the minerals and shall dispose of the minerals in accordance with SEC regulations prior to shipment.

For the protection of personal information, unless it is necessary for performing the required job duties, it is strictly prohibited to process or use any personal information in the system. Please be reminded that any personal information may only be processed or used reasonably and adequately in strict compliance of Company's policy and within the scope of Company's authorization. Any wrongful use will be subject to both civil and criminal prosecution.

  <br> Vendor Signature

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

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|:---|:---|
| ![](ex23-1_002.jpg) | **<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**<br>We hereby consent to the inclusion in this Amendment No. 1 to the Registration Statement on Form F-1 of HUHUTECH International Group Inc. of our report dated October 21, 2022 with respect to our audits of the consolidated financial statements of HUHUTECH International Group Inc. and Subsidiaries for the years ended December 30, 2021 and 2020, and to the reference to us under the heading "Experts" in the Registration Statement.<br>/s/ Wei, Wei & Co., LLP<br>Flushing, New York<br> January 6, 2023 |

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