# EDGAR Filing Document

**Accession Number:** 0001957413
**File Stem:** 0001493152-26-020595
**Filing Date:** 2026-4
**Character Count:** 770883
**Document Hash:** 1b178c4e5ff83ac7296d37db0ed49289
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-26-020595.hdr.sgml**: 20260430

**ACCESSION NUMBER**: 0001493152-26-020595

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 82

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260430

**DATE AS OF CHANGE**: 20260430

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Digital Currency X Technology Inc.
- **CENTRAL INDEX KEY:** 0001957413
- **STANDARD INDUSTRIAL CLASSIFICATION:** MOTOR VEHICLES & PASSENGER CAR BODIES [3711]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 000000000
- **STATE OF INCORPORATION:** E9
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-41712
- **FILM NUMBER:** 26926148

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 8 BEIJING S. RD.
- **STREET 2:** ECONOMIC & TECH. DEV. ZONE YANTAI
- **CITY:** SHANDONG
- **NON US STATE TERRITORY:** REPUBLIC OF CHINA
- **PROVINCE COUNTRY:** F4
- **BUSINESS PHONE:** 8605352766202

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NO. 8 BEIJING S. RD.
- **STREET 2:** ECONOMIC & TECH. DEV. ZONE YANTAI
- **CITY:** SHANDONG
- **NON US STATE TERRITORY:** REPUBLIC OF CHINA
- **PROVINCE COUNTRY:** F4

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Chijet Motor Company, Inc.
- **DATE OF NAME CHANGE:** 20221207

?xml version='1.0' encoding='ASCII'?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 20-F**

**(Mark One)**

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

**OR**

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

**For the fiscal year ended December 31, 2025**

**OR**

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

**OR**

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

Date of event requiring this shell company report:

**For the transition period from _________ to _____________.**

Commission file number: 001-41712

**Digital Currency X Technology Inc.** 

(Exact name of Registrant as Specified in its Charter)

(Translation of Registrant's name into English)

**Cayman Islands**

(Jurisdiction of Incorporation or Organization)

**Room 1101, 11/F., Capital Centre, 151 Gloucester Road,** 

**Wanchai, Hong Kong** 

(Address of Principal Executive Offices)

**Melissa Chen**

**Tel: +86-0535-2766221**

**Room 1101, 11/F., Capital Centre, 151 Gloucester Road, Wanchai, Hong Kong**

(Name, Telephone, E-mail and/or Facsimile Number and Address of Company Contact Person)

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol(s)** | **Name of each exchange on which registered** |
| **class A ordinary shares, par value US$3.6 per share** | **DCX** | **The Nasdaq Stock Market LLC** |

---

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

None

(Title of Class)

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

None

(Title of Class)

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the annual report: 19,560,823 class A ordinary shares issued and 19,560,821 class A ordinary shares outstanding par value US$3.6 per share as of December 31, 2025.

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

Yes ☐ No ☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

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

Yes ☒ No ☐

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

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

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

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

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow: Item 17 ☐ Item 18 ☐

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

**Digital Currency X Technology Inc.** 

**ANNUAL REPORT ON FORM 20-F**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [introduction](#sh_001) | [introduction](#sh_001) | ii |
| [FORWARD LOOKING STATEMENTS](#sh_002) | [FORWARD LOOKING STATEMENTS](#sh_002) | iii |
| PART I | PART I |  |
| Item 1. | [Identity of Directors, Senior Management and Advisers](#sh_003) | 1 |
| Item 2. | [Offer Statistics and Expected Timetable](#sh_004) | 1 |
| Item 3. | [Key Information](#sh_005) | 1 |
| Item 4. | [Information on the Company](#m_001) | 51 |
| Item 4A. | [Unresolved Staff Comments](#m_002) | 84 |
| Item 5. | [Operating and Financial Review and Prospects](#m_003) | 84 |
| Item 6. | [Directors, Senior Management and Employees](#m_004) | 90 |
| Item 7. | [Major Shareholders and Related Party Transactions](#m_005) | 100 |
| Item 8. | [Financial Information](#sp_001) | 101 |
| Item 9. | [The Offer and Listing](#sp_002) | 101 |
| Item 10. | [Additional Information](#sp_003) | 102 |
| Item 11. | [Quantitative and Qualitative Disclosures About Market Risk](#sp_004) | 121 |
| Item 12. | [Description of Securities Other Than Equity Securities](#sp_005) | 121 |
| [PART II](#sp_006) | [PART II](#sp_006) |  |
| Item 13. | [Defaults, Dividend Arrearages and Delinquencies](#sp_007) | 122 |
| Item 14. | [Material Modifications to the Rights of Security Holders and Use of Proceeds](#sp_008) | 122 |
| Item 15. | [Controls and Procedures](#sp_009) | 122 |
| Item 16. | [Reserved](#sp_010) | 123 |
| Item 16A. | [Audit Committee Financial Expert](#sp_011) | 123 |
| Item 16B. | [Code of Ethics](#sp_012) | 123 |
| Item 16C. | [Principal Accountant Fees and Services](#sp_013) | 124 |
| Item 16D. | [Exemptions From the Listing Standards for Audit Committees](#sp_014) | 124 |
| Item 16E. | [Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#sp_015) | 124 |
| Item 16F. | [Change In Registrant's Certifying Accountant](#sp_016) | 125 |
| Item 16G. | [Corporate Governance](#sp_017) | 125 |
| Item 16H. | [Mine Safety Disclosure](#sp_018) | 126 |
| Item 16I. | [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](#sp_019) | 126 |
| Item 16J. | [Insider Trading Policies](#sp_020) | 126 |
| Item 16K. | [Cybersecurity](#sp_021) | 126 |
| [PART III](#sp_022) | [PART III](#sp_022) |  |
| Item 17. | [Financial Statements](#sp_023) | 127 |
| Item 18. | [Financial Statements](#sp_024) | 127 |
| Item 19. | [Exhibits](#sp_025) | 127 |

---

i

**INTRODUCTION**

Digital Currency X Technology Inc. ("Digital Currency X") is a Cayman Islands exempted company structured as a holding company. We completed a reorganization (the "Reorganization") in June 2023 and became a public company upon our merger with Jupiter Wellness Acquisition Corp. ("JWAC"), a Delaware corporation. We are a technology company focused on digital asset management, currently undergoing a strategic transition following the divestment of our legacy electric vehicle business. Our new core business is centered on two key initiatives: the DexTrader platform, an on-chain data and information service platform, and our digital asset treasury management, which includes staking activities to generate yield.

As part of this strategic transition, on March 18, 2026, the Company entered into an agreement to sell its entire electric vehicle manufacturing business, operated through its subsidiary Chijet Inc. and its related entities. This divestment was a strategic decision to eliminate a loss-making operation and enable the Company to focus its resources on new technology-driven business lines. Upon the closing of this transaction, the Company will no longer conduct operations in the new energy vehicle industry, and the historical financial results of the disposed business will be classified as discontinued operations.

Our new platform, DexTrader, was launched in 2026 to provide global cryptocurrency traders with real-time, comprehensive data insights and analytical tools for decentralized exchanges (DEXs). DexTrader is positioned solely as a data and information service, similar to a financial news and data terminal, and does not facilitate or participate in any asset transactions. As of the date of this annual report, DexTrader remains in its early operational phase, focused on user acquisition and product optimization, and has not yet generated any revenues.

ii

**FORWARD-LOOKING STATEMENTS**

This annual report contains "forward-looking statements" for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that represent our beliefs, projections and predictions about future events. You can identify some of these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "is/are likely to," "potential," "continue" or other similar expressions. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include statements relating to:

● changes in applicable laws or regulations;

● the successful development, user adoption, and future monetization of our DexTrader platform;

● the timing of revenue and expenditures;

● the ability of ours to access sufficient capital to run its business;

● assumptions regarding, and changes in, energy, material and labor prices;

● the possibility that we might be adversely affected by other economic, business or competitive factors;

● the future financial and business performance of us and our subsidiaries;

● the performance and reliability of our DexTrader platform and its underlying technology;

● the potential market size for on-chain data services and the assumptions and estimates related thereto;

● changes in the market for our products and services, including the volatility and public perception of the digital currency markets;

● the outcome of any legal proceedings that might be instituted against us;

● expansion and other plans and opportunities in the technology and digital asset sectors;

● other statements preceded by, followed by or that include the words "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek" or "target," or similar expressions; and

● other factors in the "*Item 3. Key Information - D. Risk Factors*" section in this annual report.

These forward-looking statements are subject to various and significant risks and uncertainties, including those which are beyond our control. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. The forward-looking statements made in this annual report relate only to events or information as of the date on which the statements are made in this annual report. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should thoroughly read this annual report and the documents that we refer to herein with the understanding that our actual future results may be materially different from and worse than what we expect. We qualify all of our forward-looking statements by these cautionary statements. We disclaim any obligation to update our forward-looking statements, except as required by law.

This annual report also contains certain data and information that we obtained from various private publications and industry sources related to the digital asset and blockchain industry. Statistical data in these publications also include projections based on a number of assumptions.

In addition, the new and rapidly changing nature of the digital asset and blockchain technology industry results in significant uncertainties for any projections or estimates relating to the growth prospects or future condition of our industry. Furthermore, if any one or more of the assumptions underlying the market data are later found to be incorrect, actual results may differ from the projections based on these assumptions. You should not place undue reliance on these forward-looking statements.

iii

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

Not Applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not Applicable.

**ITEM 3. KEY INFORMATION**

Digital Currency X is not an operating company, but a Cayman Islands holding company. Following the divestiture of our legacy automotive business in March 2026, our operations are now focused on digital asset treasury management and DexTrader platform operation. Consequently, our core operations are no longer conducted in mainland China. As used in this annual report, "we," "us," "our company," "the Company" or "our" refers to Digital Currency X Technology Inc. and its subsidiaries.

As a result of the divestment, the significant legal and operational risks and uncertainties associated with having a business based in mainland China, which were relevant to our former automotive operations, are no longer applicable to our current and future core business. In connection with our former operations, we faced various legal and operational risks and uncertainties associated with being based in or having operations primarily in mainland China and the complex and evolving PRC laws and regulations. For example, we faced risks associated with the fact that the PRC government had significant authority in regulating our former operations and could influence or intervene in those operations at any time, regulatory approvals on offerings conducted overseas by, and foreign investment in, China-based issuers, anti-monopoly regulatory actions, and oversight on data security. These risks could have resulted in a material adverse change in our historical operations and the value of our Class A Ordinary Shares (as defined herein), and could significantly limit or completely hinder our ability to offer or continue to offer securities to investors, or cause the value of such securities to significantly decline or become of little or no value. For a detailed description of risks related to our former business in mainland China, see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Former Operations in mainland China*."

While our current business is not subject to these PRC-specific risks, investors should be aware of the historical context of our former operations. The PRC government's significant authority in regulating our former operations and its oversight and control over offerings conducted overseas by, and foreign investment in, China-based issuers, was a significant risk factor that could have limited or completely hindered our ability to offer or continue to offer securities to investors during that period. Implementation of industry-wide regulations in this nature may cause the value of such securities to significantly decline or become of little or no value. For more details, see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Former Operations in mainland China-*The PRC government's significant oversight and discretion over our former business operation could result in a material adverse change in our operations and the value of our Class A Ordinary Shares."

Similarly, risks and uncertainties that arose from the legal system in mainland China, including risks and uncertainties arising from the legal system in mainland China, including risks and uncertainties regarding the enforcement of laws and quickly evolving rules and regulations in China, which may also exist in other jurisdictions, could have resulted in a material adverse change in our former operations and the value of our shares. For more details, see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Former Operations in mainland China*-There may be changes from time to time in the interpretation and application of the laws of mainland China, and any failure to comply with laws and regulations could have a material adverse effect on our business, results of operations, financial condition and the value of our Class A Ordinary Shares."

**Recent Development**

***Nasdaq continued listing compliance***

On January 23, 2026, we received a written notification (the "January Notice") from the Listing Qualifications (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq"), that it has regained compliance with the market value of listed securities requirement under Nasdaq Listing Rule 5550(b)(2) (the "Rule"). The Company was previously notified on December 12, 2025 by the Staff that it had failed to maintain a minimum market value of listed securities of $35,000,000 over the previous 30 consecutive business days as required by the Rule. The January Notice stated that the Staff has determined that for the last 20 consecutive business days, from December 23, 2025 to January 22, 2026, the Company's market value of listed securities has been $35,000,000 or greater. Accordingly, the Company has regained compliance with the Rule and this matter is now closed.

***Disposal of Automotive Business***

On March 18, 2026, the Company entered into a share purchase agreement (the "Share Purchase Agreement") with Drivepoint Holdings Ltd., a limited liability company incorporated in the Cayman Islands. Pursuant to the Share Purchase Agreement, the Company conditionally agreed to sell, and the purchaser conditionally agreed to acquire, Chijet Inc., through the sale and purchase of the entire issued share capital of Chijet Inc. at a consideration of US$1.00 in cash, subject to the terms and conditions of the Share Purchase Agreement (the "Disposal"). The Disposal is part of the Company's strategic transition away from its legacy electric vehicle manufacturing business, which has experienced intense industry competition, supply chain challenges, and cumulative losses exceeding US$100 million. Following a comprehensive strategic review, the Company's board of directors determined that divesting Chijet Inc. would allow the Company to eliminate a loss-making operation, improve its financial position, and focus resources on its new core business in technology and digital asset management. The Company believes that the Disposal will enhance its ability to achieve sustainable profitability, support the growth of new technology-driven business lines, and facilitate ongoing compliance with Nasdaq listing requirements. The Disposal has been approved by the board of directors of the Company and the closing is subject to certain conditions. Upon Closing, the Company will cease to hold any interest in Chijet Inc. Accordingly, Chijet Inc., together with its subsidiaries, will cease to be subsidiaries of the Company and will no longer be consolidated into the financial statements of Company from the date of the Disposal onward. The historical financial results of the disposed business for the periods presented in this annual report will be classified as discontinued operations in our future financial statements, starting with the fiscal year 2026. See *"Item 4. Information on the Company – 4A. History and Development of the Company."*

**3. A. [Reserved]**

**3. B. Capitalization and Indebtedness**

Not Applicable.

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

Not Applicable.

**3. D. Risk Factors**

*Investing in our ordinary shares is highly speculative and involves a significant degree of risk. You should carefully consider the following risks as well as all other information contained in this annual report, including the matters discussed under the headings "Forward-Looking Statements" and "Item 5. Operating and Financial Review and Prospects" before you decide to make an investment in our ordinary shares. Following the divestiture of our legacy automotive business in March 2026, Digital Currency X is a holding company with its operations now focused on its technology and digital asset business, which are not primarily conducted in mainland China. The risks discussed below could materially and adversely affect our business, prospects, financial condition, results of operations, cash flows, ability to pay dividends and the trading price of our ordinary shares. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, prospects, financial condition, results of operations, cash flows and ability to pay dividends, and you may lose all or part of your investment.*

*Such risks are not exhaustive. We may face additional risks that are presently unknown to us or that we believe to be immaterial as of the date of this annual report. Known and unknown risks and uncertainties may significantly impact and impair our business operations.*

**Risk Related to Our Business and Industry**

***We are undergoing a fundamental transformation of our business model from vehicle manufacturing to a technology and digital asset-focused company, and our management team's historical experience may not translate to our new operations.***

 ****

Historically, our primary business was the development and manufacturing of traditional and new energy vehicles under the Chijet brand. Following our pivot to Digital Currency X Technology Inc. in December 2025, our focus has shifted entirely to our new business lines: the DexTrader data and information services platform, and digital asset treasury management, including staking. Our management team consists of industry veterans with decades of experience in automotive engineering, manufacturing, and industrial supply chain management. They possess limited historical experience in blockchain technology, digital asset custody, and cryptocurrency treasury management. If our management team cannot effectively adapt to this highly specialized and volatile industry, or if we fail to attract and retain qualified crypto-native talent, our new business strategy will fail.

 ****

***Although the divestiture of our legacy automotive subsidiary was completed, we may be subject to post-closing risks.***

On March 20, 2026, we completed the sale of our legacy electric vehicle subsidiary, Chijet Inc., for $1. While this transaction was intended to eliminate ongoing financial losses from the automotive business, there can be no assurance that we will not be subject to post-closing liabilities, indemnification claims, or disputes arising from the sale agreement or the historical operations of the divested entity. Any such unforeseen liabilities could negatively impact our financial condition and divert management's attention from our new digital asset strategy.

***Our balance sheet is highly concentrated in digital assets, subjecting us to extreme price volatility and the risk of substantial financial loss.***

We held approximately US$401.96 million in digital assets within our treasury as of December 31, 2025. The prices of cryptocurrencies are extremely volatile and are influenced by factors beyond our control, including global macroeconomic conditions, regulatory crackdowns, technological glitches, and shifting market sentiment. A significant decline in the value of our digital asset holdings would immediately and materially impair our financial condition, book value, and our Nasdaq stock price.

***Our participation in decentralized finance (DeFi) ecosystems exposes us to novel financial and technological risks, including smart contract vulnerabilities.***

As part of our treasury optimization strategy, we deploy capital into DeFi protocols. This includes our strategy of staking digital assets to generate yield. These protocols rely on smart contracts deployed on public blockchains. Smart contracts are susceptible to coding errors, exploits, and "flash loan" attacks. If a DeFi protocol we utilize is hacked or fails to operate as intended, we could lose a significant portion, or all, of the digital assets we have committed to that ecosystem, with little to no legal recourse for recovery.

***If our proprietary custody infrastructure experiences a security breach or cyberattack, our digital asset holdings could be permanently lost.***

 ****

We are developing infrastructure for secure cryptocurrency custody. Digital assets are highly attractive targets for cybercriminals. If our security protocols, including private key management and cold storage mechanisms, are breached, our treasury could be stolen. Because digital asset transactions are generally irreversible, any such loss would likely be permanent and uninsured, leading to a catastrophic loss of capital.

 ****

***Our business model and technologies have not yet been proven in a commercial environment, and any failure to commercialize our strategic plans would adversely affect our results of operations and business, damage our reputation, and could result in substantial liabilities in excess of our resources.***

Investors should be aware of the difficulties normally encountered by an enterprise undergoing a fundamental transformation into a new industry, many of which are beyond our control, including substantial risks and expenses in the course of developing new, unproven digital asset infrastructure, establishing our presence in Web3 markets, reorganizing operations, and undertaking specialized treasury management activities. Our future financial performance depends, in part, on our ability to design, develop, deploy, scale, and secure our new business lines on a timely and cost-effective basis, including our ability to generate consistent returns from our staking activities, rather than our historical focus on manufacturing and assembling vehicles.

***We have a history of operating losses and expect to incur significant additional operating losses during this transition.***

We are operating with a history of negative operating cash flows stemming from our legacy operations, having incurred net losses of $30.07 million, $69.01 million and $98.50 million during the years ended December 31, 2025, 2024, and 2023 respectively. These historical losses were generated by our now-divested automotive business and are not indicative of the expected financial performance of our new digital asset treasury management operations. We expect that we will continue to incur operating and net losses for the medium term as we capitalize our new digital asset operations. The amount of future losses and when, if ever, we will achieve profitability are uncertain. In addition, even if we achieve profitability under our new operational focus, there can be no assurance that we will be able to maintain profitability in the future. Our potential profitability is now particularly dependent upon the successful commercialization of our DexTrader platform, the broader market adoption of digital currencies, and our ability to generate positive returns from our digital asset staking and treasury management activities, which may not occur at the levels we currently anticipate or at all.

Our independent registered public accounting firm has included an explanatory paragraph relating to our ability to continue as a going concern in its report on our audited consolidated financial statements included in this annual report.

Our audited consolidated financial statements have been prepared assuming that we, Chijet Group, will continue as a going concern, which contemplates the realization of our assets and settlement of our liabilities in the ordinary course of business.

In recent periods, we have experienced recurring operating losses and negative cash flows from operations. Furthermore, we have undergone a significant strategic transformation, including the disposal of our legacy automotive business and a shift to digital asset-related activities, which have a limited operating history. These factors expose us to certain risks and uncertainties.

Pursuant to applicable accounting guidance, our management has assessed our ability to remain a going concern for a period of at least twelve months from the date these financial statements are issued. This assessment involved preparing detailed cash flow forecasts based on our current cost structure and expected operating needs.

Based on this evaluation, our management anticipates that we will have sufficient liquidity to meet our obligations as they come due for at least twelve months from the issuance date. The forecasts indicate that we can sustain operations primarily through our existing cash resources and ongoing cost management, without relying on uncertain inflows such as projected revenues, financing activities, or returns from our digital asset-related operations.

A significant portion of our assets consists of digital assets, which are subject to price volatility and changing market conditions. Additionally, certain of our digital assets have been placed under staking arrangements after year-end, which may restrict their availability for short-term liquidity purposes. Although these factors introduce uncertainty, they have been taken into account in our management's assessment.Our management has launched various strategic initiatives to support our long-term operations and financial position, including the development of a digital asset trading platform, the expansion of our digital asset-related services, and access to financing arrangements that could provide additional liquidity if necessary. The timing and extent of benefits from these initiatives depend on market conditions and execution risks.In light of the foregoing, our management believes that it is not probable that we will fail to meet our obligations as they fall due within one year from the date these financial statements are issued. Consequently, our consolidated financial statements have been prepared on a going concern basis.

***The implementation of our M&A strategy, which requires the integration of our newly acquired company and its business, operations and employees with our own, involves significant risks, and the failure to integrate successfully may adversely affect our future results.***

Any failure to successfully integrate the business, operations and employees of our newly acquired subsidiary, or to otherwise realize the anticipated benefits of this acquisition, could harm our results of operations. Our ability to realize these benefits will depend on the timely integration and consolidation of organizations, operations, facilities, procedures, policies and technologies, and the harmonization of differences in the business cultures between our companies. The challenges involved in integrating include:

● Establishing new client, partner, and other important relationships in the digital asset industry

● Integrating financial forecasting and controls, procedures and reporting cycles

● Combining and integrating information technology, or IT, systems

● Integrating employees and related HR systems and benefits, maintaining employee morale and retaining key employees

The benefits we expect to realize from this is, necessarily, based on projections and assumptions about the combined businesses of our company, and assume, among other things, Our projections and assumptions concerning this acquisition may be inaccurate, however, and we may not successfully integrate and our operations in a timely manner, or at all. We may also be exposed to unexpected contingencies or liabilities of the acquired company. If we do not realize the anticipated benefits of this transaction, our growth strategy and future profitability would be adversely affected.

● The potential loss of key employees, clients, and other business partners of the companies we acquire following and continuing after announcement of acquisition plans.

***Our discontinued automotive operations had liabilities under government loan agreements, and while these liabilities were transferred in the divestiture, we cannot guarantee that we will be free from future claims related to these historical obligations.***

Our former automotive business's ability to obtain funds or incentives from government sources was subject to the availability of funds under applicable government programs and approval of its applications to participate in such programs. The application process for these funds and other incentives was highly competitive. We cannot assure you that the former business would have been successful in obtaining any of these additional grants, loans, and other incentives. If it was not successful in obtaining any of these additional incentives and was unable to find alternative sources of funding to meet its planned capital needs, its business and prospects for certain projects could have been materially adversely affected.

In May 2016, our former subsidiary secured two interest-free loans from non-financial institutions specifically for developing the electric vehicle industry in Xiangyang, PRC. The loans' utilization was strictly limited to this purpose, with their maturity depending on the development's progress. However, due to the COVID-19 pandemic and subsequent regulations, the subsidiary was unable to meet the loan conditions or secure government subsidies to repay the loans by July 2022. Consequently, the loans were reclassified as current liabilities for the years 2024 and 2025, and the subsidiary incurred a penalty of US$748,166 (RMB5.23 million), which is 5% of the land use rights cost, due to its default. The lender also reserved rights to demand compensation for losses, repurchase the land, and require repayment of any related government subsidies. As of March 19, 2026, no subsidies had been received. The principal amounts outstanding were approximately US$99.33 million (RMB694.60 million) and US$95.16 million (RMB694.60 million) as of December 31, 2025 and 2024, respectively. The variance primarily resulted from currency exchange rate fluctuations. The court is currently conducting an auction of the mortgaged buildings, land, and machinery.

The former subsidiary was negotiating with the lender to extend the loan terms and was planning to expand production to fulfill the loan conditions. During the period ended December 31, 2025, the subsidiary was unable to meet the conditions to apply for the government subsidies to repay the loans. In June 2023, the subsidiary signed two pledge agreements with the lender. Pursuant to the pledge agreements, it pledged machinery and equipment, molds and tooling with a carrying value of approximately US$4.64 million, buildings with a carrying value of approximately US$14.28 million and land use rights with a carrying value of US$14.05 million to the government to secure the repayment of the principal and related interest on the aforementioned loans. These assets and associated liabilities were part of the divested automotive business.

Additionally, in December 2019, Shandong Baoya, a former subsidiary, entered into loan agreements with Yantai Guofeng Investment Holding Group Co., Ltd. The loans bore an annual interest rate of 6.5%. Pursuant to the loan agreements, if Shandong Baoya met certain development conditions, part of the loan could be waived and converted to a government subsidy, including interest on such portion. For the year ended December 31, 2025, no principal amount was converted to government subsidies. As of December 31, 2025, the outstanding principal was US$105.82 million. As of April 30, 2026, the outstanding principal and interest were US$156.00 million. As of December 31, 2024, Shandong Baoya was notified that Yantai Guofeng had transferred its creditor's rights in Shandong Baoya to Yantai Public Transportation Co., Ltd ("Yantai Trans").

On February 10, 2025, Yantai Trans filed an application for property preservation with the Yantai Intermediate Court, which resulted in the freezing of Shandong Baoya's land use rights. The net value of the land use rights was US$26.18 million as of December 31, 2025.

***Our former automotive subsidiaries were in breach of certain loan agreements, and although these liabilities were transferred in the divestiture, we may be exposed to post-closing claims.***

Our former subsidiaries obtained loans from certain related parties and other institutions to fund their business operations. FAW Jilin, China FAW Corporation Limited (the minority shareholder of FAW Jilin) and its affiliate, FAW Finance Co., Ltd entered into a series of working capital loan agreements. The amount of these loans was RMB700 million (approximately US$95.90 million) on January 29, 2019, in the amount of RMB350 million (approximately US$47.95 million) on May 20, 2019, in the amount of RMB150 million (approximately US$20.55 million) on August 29, 2019, in the amount of approximately RMB270 million (approximately US$36.95 million) on October 29, 2019, in the amount of approximately RMB188 million (approximately US$25.73 million) on November 27, 2019, in the amount of approximately RMB87.4 million (approximately US$11.98 million) on December 13, 2019, each of the loans bears an annual interest rate of 3.915% with a term of one year. On January 23, 2020, the loan in the amount of RMB 700 million was extended for 12 months. On May 20, 2020, the parties entered into a supplemental agreement to the loan agreements, pursuant to which, FAW Jilin agreed to make four annual installment payments of US$39.44 million (RMB 287.87 million), for the remaining principal balance and pledged certain land use rights, buildings, machinery and equipment, molds and tooling and other logistics equipment of FAW Jilin. FAW Jilin failed to make the payments on November 1, 2022, November 1, 2023 and November 1, 2024. As of April 30, 2026, the aggregate outstanding principal and interest under such loans were US$206.97 million. See "*Item 13. Defaults, Dividend Arrearages and Delinquencies*" for more details and current status of the loan agreements.

If FAW Finance Co., Ltd. were to enforce the pledge, the operations of the divested automotive business would have been disrupted. As these assets and liabilities have been divested, a direct operational risk to us is remote, but we may face indemnification or other claims. Consequently, the former business's business, financial condition, results of operations and prospects could have been materially and adversely affected.

In May 2016, our former subsidiary secured two interest-free loans from non-financial institutions specifically for developing the electric vehicle industry in Xiangyang, PRC. The loans' utilization was strictly limited to this purpose, with their maturity depending on the development's progress. However, due to the COVID-19 pandemic and subsequent regulations, the subsidiary was unable to meet the loan conditions or secure government subsidies to repay the loans by July 2022. Consequently, the loans were reclassified as current liabilities for the years 2024, and 2025, and the subsidiary incurred a default penalty of US$748,166 (RMB5.23 million), which is 5% of the land use rights cost. The lender also reserved rights to demand compensation for losses, repurchase the land, and require repayment of any related government subsidies. As of April 30, 2026, no subsidies had been received. The principal amounts outstanding were approximately US$99.33 million (RMB694.60 million) and US$95.16 million (RMB 694.60 million), respectively, as of December 31, 2025, and December 31, 2024. The variance primarily resulted from currency exchange rate fluctuations. The court is currently conducting an auction of the mortgaged buildings, land, and machinery.

The former subsidiary was negotiating with the lender to extend the loan terms and was planning to expand production to fulfill the loan conditions. During the period ended December 31, 2025, the subsidiary was unable to meet the conditions to apply for the government subsidies to repay the loans. In June 2023, the former subsidiary signed two pledge agreements with the lender. Pursuant to the pledge agreements, the former subsidiary pledged machinery and equipment, mold and tooling with a carrying value of approximately US$4.64 million, buildings with a carrying amount of approximately US$14.28 million and land use rights with a carrying value of US$14.05 million to the government to secure the repayment of the principal and related interest on the aforementioned loans. If the lenders were to enforce the pledge, the operations of the divested automotive business would have been disrupted. As these assets and liabilities have been divested, this no longer poses a direct operational risk to our current business. Consequently, the former business's business, financial condition, results of operations and prospects could have been materially and adversely affected.

***We will require additional capital to support business growth, and this capital might not be available on commercially reasonable terms, or at all.***

We anticipate that we will need to raise additional funds through equity or debt financings. Our new business, which includes the development of the DexTrader platform and the management of a substantial digital asset treasury, is capital-intensive, and we expect that the costs and expenses associated with our planned operations will continue to increase in the near term. We do not expect to achieve positive cash flow from operations in the short term, if at all. Our plan to grow our business is dependent upon the timely availability of funds and further investment in technology development, cybersecurity, testing, and the build-out of our secure digital asset infrastructure. In addition, the fact that we have a limited operating history in the digital asset industry means that we have limited historical data on the demand for our services. As a result, our future capital requirements are uncertain, and actual capital requirements may be greater than what we currently anticipate.

If we raise additional funds through further issuances of equity or convertible debt securities, our shareholders could suffer significant dilution and economic loss, and any new equity securities we issue could have rights, preferences, and privileges superior to those of holders of our current equity securities. Any debt financing in the future could involve additional restrictive covenants relating to our capital raising activities and other financial and operational matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions.

We may not be able to obtain additional financing on terms favorable to us, if at all. Our ability to obtain such financing could be adversely affected by a number of factors, including general conditions in the global economy and in the global financial markets, including recent volatility and disruptions in the capital and credit markets,

***If we are not able to successfully manage our growth strategy, our business operations and financial results may be adversely affected.***

Our expected future growth presents numerous managerial, administrative, and operational challenges. Our ability to manage the growth of our operations will require us to continue to develop and improve our management information systems and our other internal systems and controls. In addition, our growth will increase our need to attract, develop, motivate, and retain both our management and employees. The inability of our management to effectively manage our growth or the inability of our employees to achieve anticipated performance could have a material adverse effect on our business.

***Operation of our business in international markets may expose us to additional risks, which could have an adverse effect on our operating results.***

Some of our current operations involve participating in global digital asset ecosystems, and we expect to generate a portion of our revenues from decentralized operations outside of the United States in the future. Operations in international markets may require us to respond to new and unanticipated regulatory, compliance, technological, and other challenges. These efforts may be time-consuming and costly, and there can be no assurance that we will be successful in responding to these and other challenges we may face as we operate in international markets, including:

● building and managing an experienced foreign or decentralized workforce and overseeing and ensuring the performance of foreign contractors,

● difficulties in developing, staffing, and simultaneously managing a number of varying foreign operations as a result of distance, language, cultural differences, and the highly specialized nature of Web3 talent,

● increased travel, infrastructure, cybersecurity and legal and compliance costs associated with multiple international locations and borderless networks,

● additional withholding taxes or other taxes on our foreign income or digital asset yields, and tariffs or other restrictions on cross-border data or capital transfers,

● imposition of, or unexpected adverse changes in, foreign laws or regulatory requirements regarding digital assets, many of which differ from those in the United States,

● increased exposure to foreign currency exchange rate risk and fiat-to-crypto gateway fluctuations,

● longer settlement cycles in some foreign jurisdictions and potential difficulties in enforcing smart contracts or collecting traditional accounts receivable,

● difficulties in repatriating overseas earnings or moving digital assets across jurisdictions with strict capital controls,

● compliance with numerous legislative, regulatory, licensing, or market requirements of foreign countries pertaining to cryptocurrency custody and decentralized finance,

● compliance with U.S. laws, such as the U.S. Foreign Corrupt Practices Act, or FCPA, and local laws prohibiting bribery and corrupt payments to government officials,

● laws and business practices that favor local competitors or prohibit foreign ownership of digital asset infrastructure businesses,

● potentially adverse tax consequences,

● compliance with laws of foreign countries, international organizations, such as the European Commission, treaties, and other international laws,

**●** t he inability to obtain new technology or innovation subsidies for our digital asset business,

● unfavorable labor regulations, and

● general economic conditions in the countries in which Digital Currency X operates.

Our international operations are also subject to general geopolitical risks, such as political, social, and economic instability, war, civil unrest, sabotage, kidnapping and ransom, expropriation, incidents of terrorism, changes in diplomatic and trade relations, or responses to such events, which could disrupt global internet infrastructure or digital asset markets. One or more of these factors could adversely affect any of our international operations and result in lower revenue and/or greater operating expenses than we expect, and could significantly affect our results of operations and financial condition.

Our overall success in international markets will depend, in part, on our ability to succeed in differing legal, regulatory, economic, social, and political conditions. We may not be successful in developing and implementing policies and strategies that will be effective in managing these risks in each country where we do business. Our failure to manage these risks successfully could harm our international operations, reduce our international revenue, and increase our costs, thus adversely affecting our business, financial condition, and operating results.

***Our revenue, expenses, and operating results may fluctuate significantly.***

Our revenue, expenses, and operating results may fluctuate significantly because of numerous factors, some of which may contribute to more pronounced fluctuations in an uncertain global economic environment or volatile cryptocurrency market. In addition to the other risks described in this "Risk Factors" section, the following factors could cause our operating results to fluctuate:

● the extreme price volatility of the digital assets held in our treasury and the varying yields generated from our participation in decentralized finance (DeFi) ecosystems during a quarter,

● delays, increased costs, or other unanticipated challenges in the development, deployment, and security of our cryptocurrency custody infrastructure that may affect profitability,

● the continuing creditworthiness, solvency, and technological security of our strategic partners, cryptocurrency exchanges, and the third-party DeFi protocols we utilize,

● reductions in the fees we can command for our custody solutions or increased competition and compressed yields within the digital asset treasury management space, and

● legislative and regulatory enforcement policy changes that may affect the legality, broader market adoption, and demand for digital assets and our associated technology solutions.

As a consequence, operating results for any future periods are difficult to predict and, therefore, prior results are not necessarily indicative of results to be expected in future periods. Any of the foregoing factors, or any other factors discussed elsewhere herein, could have a material adverse effect on our business, results of operations, and financial condition that could adversely affect the price of our shares.

***Failure of third-party service providers to maintain secure technological infrastructure or provide reliable services in a timely manner could compromise our digital asset operations, which could damage our reputation, have a negative impact on our strategic goals, and adversely affect our growth.***

Our success depends on our ability to securely manage our digital asset treasury and operate our custody solutions, which in part depends on the ability of third parties to provide us with highly secure and reliable technological infrastructure and services. In developing and maintaining our digital asset ecosystem, we rely heavily on third-party software, decentralized blockchain networks, smart contract auditing services, and cybersecurity infrastructure that meet our exacting specifications, as well as on specialized services performed by Web3 contractors.

We will also rely on third-party node operators, cryptocurrency exchanges, and decentralized finance (DeFi) protocols to execute, validate, and yield-generate transactions related to our treasury management; and we may need to engage new technological partners or deploy capital into emerging protocols with which we have limited historical experience.

If any of our technological partners or service providers are unable to provide secure and reliable services that meet our operational standards or satisfy our strategic commitments, our reputation, business, and operating results could be harmed. In addition, because the digital asset industry often relies on decentralized open-source protocols and third parties that operate with limited liability frameworks, we may be unable to avail ourselves of traditional warranty and contractual protections. This lack of legal recourse means we may incur significant unrecoverable losses or liabilities related to compromised infrastructure or exploited smart contracts, which could have a material adverse effect on our business, financial condition, and operating results. Moreover, any delays, hacks, network congestion, or interruptions in these third-party platforms or services could adversely affect the quality and performance of our treasury management and custody solutions, and require considerable expense to establish alternate infrastructure. This could cause us to experience difficulty executing our digital currency strategies and retaining institutional confidence, and could fundamentally harm our brand, reputation, and growth.

***Our estimates of market opportunity and forecasts of market growth may prove to be inaccurate.***

Market opportunity estimates and growth forecasts, whether obtained from third-party sources or developed internally, are subject to significant uncertainty and are based on assumptions and estimates that may prove to be inaccurate. The estimates and forecasts we include in this annual report relating to the size and expected growth of the digital asset custody market and institutional Web3 adoption may also prove to be inaccurate. The estimated global addressable market is based on assumptions that may prove to be inaccurate or incorrect. In addition, the estimated global market for digital assets and decentralized finance may not materialize in the timeframe we expect, if ever, and even if these markets meet the estimates presented in this annual report, this should not be taken as indicative of our future growth or prospects. In order to be successful, we will need to prove our ability to commercialize and scale our proprietary Web3 technology, successfully secure institutional partnerships and custody clients, obtain sufficient capital to finance our operations, including the ongoing development and deployment of our secure digital asset infrastructure, and otherwise successfully scale our treasury management strategies. We face a number of challenges in achieving our objectives, including those described elsewhere in these risk factors, and these challenges are significant. There can be no assurance that we will be able to achieve our objectives or successfully grow our business, capture meaningful market share, or take advantage of market opportunities in the digital asset space.

***Our business depends significantly on experienced and skilled personnel alongside third-party blockchain engineering subcontractor resources, and if we lose key personnel or if we are unable to attract and integrate additional skilled personnel, it will be markedly more difficult for us to manage our business and execute our digital asset strategies.***

The success of our new business model and the secure deployment of our cryptocurrency custody infrastructure will depend in large part on the skill of our internal personnel and on specialized Web3 development resources, rather than historical trade labor. Competition for highly qualified personnel, particularly those with deep expertise in blockchain technology, cryptographic security, and decentralized finance (DeFi) ecosystems, is exceptionally high and continues to intensify. In the event we are unable to attract, hire, and retain the requisite crypto-native personnel and subcontractors, we may experience severe delays in developing our technological infrastructure and optimizing our treasury strategies in accordance with our projected schedules and operational budgets.

Further, any increase in industry demand for these highly specialized engineering personnel may result in significantly higher compensation and retention costs, causing us to exceed our budgets for technological development and infrastructure deployment. Either of these circumstances may have a material adverse effect on our business, financial condition, and operating results, harm our reputation and trust among institutional clients, and cause us to curtail our pursuit of new digital asset initiatives.

Ultimately, our future success during this critical transition is particularly dependent on the vision, skills, experience, and effort of our senior management team, including our executive officers and our director, and chief executive officer, Melissa Chen. If we were to lose the services of any of our executive officers or key technological employees, our ability to effectively manage our pivot to digital asset treasury operations and securely implement our decentralized technology strategy could be fundamentally harmed, causing our business and financial prospects to suffer.

***We expect to operate in a highly competitive industry, and our current or future competitors may be able to compete more effectively than we do, which could have a material adverse effect on our business, revenues, growth rates, and market share.***

We operate in a highly competitive industry and we compete against unregulated or less regulated companies and companies with greater financial and other resources, and our business, operating results, and financial condition could be adversely affected if we are unable to compete effectively. The crypto industry is highly innovative, rapidly evolving, and characterized by healthy competition, experimentation, changing customer needs, frequent introductions of new products and services, and subject to uncertain and evolving industry and regulatory requirements. Many of our competitors have longer operating histories in the Web3 space and greater resources than we do and could focus their substantial financial resources to develop a competitive advantage.

We face significant competition from a variety of companies around the world, in particular those located outside the United States, who at times are and may in the future be subject to significantly less stringent regulatory and compliance requirements in their local jurisdictions. Their business models rely on being unregulated or only regulated in a small number of lower compliance jurisdictions, whilst also offering their products in highly regulated jurisdictions, including the United States, without necessarily complying with the relevant regulatory requirements in such jurisdictions. Given the uneven enforcement by United States and foreign regulators, many of these competitors have been able to operate from offshore while offering large numbers of products and services to consumers, including in the United States, without complying with the relevant licensing and other requirements in these jurisdictions, and historically without penalty. We also have expended significant managerial, operational, and compliance costs to comply with laws and regulations applicable to us in the jurisdictions in which we operate, and expect to continue to incur significant costs to comply with these requirements, which these unregulated or less regulated competitors have not had to incur.

Our competitors may also offer on-chain data analytics or treasury services at prices below cost, devote significant sales resources to competing with us, or attempt to recruit our highly specialized key personnel by increasing compensation, any of which could improve these competitors' competitive positions. In addition, we may also face competition based on technological developments that compete with our digital asset infrastructure. Decentralized networks and other disruptive technologies such as generative AI may fundamentally alter the use of our products or services in unpredictable ways. If we do not keep pace with product and technology advances and otherwise keep our solutions competitive, our competitors may develop technology that would make our infrastructure noncompetitive or obsolete.

Some of our existing competitors have, and some of our potential competitors could have, substantial competitive advantages such as greater name recognition within the crypto community, longer operating histories, larger institutional customer bases, broader and deeper decentralized product lines, greater customer support resources, proven cryptographic technology, lower labor and research and development costs, substantially greater financial and other resources, and larger scale liquidity pools.

Some of our expected larger competitors, such as established centralized cryptocurrency exchanges, may have substantially broader product offerings and may be able to leverage their relationships with partners and customers based on other products to gain business in a manner that discourages potential customers from utilizing our services, including by selling at zero or negative margins or product bundling. In addition, innovative start-up companies, and larger companies that are making significant investments in blockchain research and development, may invent similar or superior technologies that compete with our technology. Our current and potential competitors may establish cooperative relationships among themselves or with third parties that may further enhance their resources. If we are unable to compete successfully, or if competing successfully requires us to take costly actions in response to the actions of our competitors, our business, operating results, and financial condition could be adversely affected.

***Security breaches and disruptions to our information technology infrastructure could interfere with our operations and expose us to liability, which could have a material adverse effect on our business, financial condition and results of operations.***

In the ordinary course of business, we rely heavily on information technology networks and systems to process, transmit, and store information electronically, and to manage and support a variety of business processes and activities. Additionally, we collect and store certain data, including proprietary business information and customer and employee data, and may have access to other confidential information in the ordinary course of our business. Despite our cybersecurity measures (including monitoring of networks and systems, and maintenance of backup and protective systems) which are continuously reviewed and upgraded, our information technology networks and infrastructure may still be vulnerable to damage, disruptions, or shutdowns due to attacks by hackers or breaches, employee error or malfeasance, data leakage, power outages, computer viruses and malware, telecommunication or utility failures, systems failures, natural disasters, or other catastrophic events. Further, the risk of potential cyberattacks by state actors or others have been heightened in connection with the ongoing conflict between Russia and Ukraine and it is uncertain how this new risk landscape will impact our operations. When geopolitical conflicts develop, government systems as well as critical infrastructures such as financial services and utilities may be targeted by state-sponsored cyberattacks even if they are not directly involved in the conflict.

We have not experienced and defended against threats to our systems and security (such as phishing attempts) to date. However, we could incur significant costs in order to investigate and respond to future attacks, to respond to evolving regulatory oversight requirements, to upgrade our cybersecurity systems and controls, and to remediate security compromise or damage. In response to past threats and attacks, we have implemented further controls and planned for other preventative actions to further strengthen our systems against future attacks. We cannot assure that such measures will provide absolute security, that we will be able to react in a timely manner, or that our remediation efforts following past or future attacks will be successful. Consequently, our financial performance and results of operations would be materially adversely affected.

***We are or may be subject to risks associated with strategic alliances or acquisitions.***

We have in the past, and may in the future, enter partnerships, collaborations, joint ventures, or strategic alliances with third parties in connection with the development, operation, and enhancement of our platform and products and the provision of our services. These alliances could subject us to a number of risks, including risks associated with sharing proprietary information, non-performance by the third party, and increased expenses in establishing new strategic alliances, any of which may materially and adversely affect our business. We may have limited ability to monitor or control the actions of these third parties and, to the extent any of these strategic third parties suffers negative publicity or harm to their reputation from events relating to their business, we may also suffer negative publicity or harm to our reputation by virtue of our association with any such third party.

When appropriate opportunities arise, we may acquire additional digital assets, decentralized products, blockchain technologies, or businesses that are complementary to our existing digital asset treasury management business. In addition to possible shareholder approval, we may need approvals and licenses from relevant government authorities for the acquisitions and to comply with any applicable laws and regulations, which could result in increased delay and costs and may disrupt our business strategy if we fail to do so. Furthermore, acquisitions and the subsequent integration of new Web3 assets, cryptographic protocols, and businesses into our own custody infrastructure require significant attention from our management and could result in a diversion of resources from our existing decentralized finance operations, which in turn could have an adverse effect on our operations. Acquired digital assets or blockchain businesses may not generate the financial results or yields we expect. Acquisitions could result in the use of substantial amounts of our fiat or digital currency reserves, potentially dilutive issuances of equity securities or proprietary tokens, the occurrence of significant goodwill impairment charges, amortization expenses for other intangible assets, and exposure to potential unknown liabilities of the acquired business, including hidden smart contract vulnerabilities or legacy regulatory infractions. Moreover, the costs of identifying, auditing, and consummating acquisitions in the rapidly evolving digital asset space may be significant.

***Our ability to execute our digital asset strategies and our future growth depend upon our ability to maintain relationships with our existing technological providers and strategic partners, to source new infrastructure providers for our critical custody solutions, and to complete building out our decentralized ecosystem while effectively managing the risks due to such relationships.***

Our success will be dependent upon our ability to enter into new service agreements and maintain our relationships with technological providers and strategic partners who are critical and necessary to the operation and security of our digital asset treasury. We also rely on these providers and our strategic partners to provide us with key cryptographic infrastructure, smart contract auditing, and technological support for our custody solutions. The service agreements we have or may enter into with key technology vendors and our strategic partners in the future may have provisions where such agreements can be terminated in various circumstances, including potentially without cause. If these providers and strategic partners become unable to provide, or experience delays in providing critical Web3 infrastructure or technology, or if the service and strategic agreements we have in place are terminated, it may be difficult to find replacement infrastructure and technology. Changes in business conditions, network congestion, governmental regulatory changes, and other factors beyond our control or that we do not presently anticipate could affect our ability to receive seamless technological services from our providers and strategic partners.

Furthermore, we have not secured long-term service agreements for all of our required blockchain infrastructure, custody technology, and security auditing services. We may be at a disadvantage in negotiating enterprise-level agreements for the highly specialized technologies required to manage an approximately US$401.96 million digital asset treasury as of December 31, 2025. Additionally, there is the possibility that finalizing the integration of these third-party technological solutions and decentralized protocols will cause significant disruption to our operations, or such service agreements could be executed at costs that make it difficult for us to operate profitably.

If we do not enter into longer-term service agreements with predictable pricing for our technological infrastructure and node operations, we may be exposed to severe fluctuations in the prices of blockchain networking, cloud storage, and cryptographic security services. Agreements for the use of proprietary custody software, decentralized API endpoints, and other Web3 infrastructure contain or are likely to contain variable pricing provisions that are subject to adjustment based on changes in market demand or underlying blockchain network transaction fees. Substantial increases in the prices for such technological services, whether due to acute network congestion, cybersecurity market dynamics, or general inflation, would increase our operating costs and could reduce our margins if we cannot recoup the increased costs. Any attempts to increase the management or custody fees charged to our institutional clients in response to increased underlying technological costs could be viewed negatively by our current or potential clients and could adversely affect our business, prospects, financial condition, or results of operations.

***Our operations rely heavily on a variety of agreements with our strategic partners, including agreements related to blockchain research and development, digital asset custody, smart contract security, and decentralized finance (DeFi) integration. We may also come to rely on other Web3 technology providers, node operators, and cryptocurrency exchanges. The inability for us to maintain agreements or partnerships with our existing strategic partners or to enter into new agreements or partnerships could have a material and adverse effect on our ability to operate as a standalone business, execute our digital asset treasury strategies, reach our technological deployment targets, or focus our efforts on our core areas of differentiation.***

Our operations rely heavily on a variety of agreements, including agreements related to cryptographic infrastructure, secure custody engineering, and exchange liquidity, with our strategic partners, including certain other decentralized protocol developers, Web3 vendors, and blockchain technology providers. Our reliance on these agreements subjects us to a number of significant risks, including the risk of being unable to operate as a standalone business, securely manage our cryptocurrency treasury, reach our development and deployment targets, or focus our efforts on core areas of differentiation.

These partnerships permit us to benefit from the extensive experience of established technology and know-how in decentralized infrastructure and digital asset security, while focusing our efforts on core areas of differentiation, such as treasury optimization, proprietary custody solutions, and the rapid adoption of the latest Web3 technologies. We intend to continue to rely on these partnerships as part of our strategy. We intend to rely primarily on our arrangements with specified infrastructure and technological partners to support our future digital asset operations and ecosystem models. If we are unable to maintain agreements or partnerships with our existing strategic partners or to enter into new agreements or partnerships, our ability to operate as a standalone business, execute our on-chain strategies, reach our development and deployment targets, or focus our efforts on core areas of differentiation could be materially and adversely affected.

***We are dependent on our strategic partners and technological suppliers, some of which are single-source providers of critical cryptographic infrastructure, and the inability of these strategic partners and suppliers to deliver necessary technological services on schedule and at prices, quality levels, and capacities acceptable to us, or our inability to efficiently manage these dependencies, could have a material and adverse effect on our results of operations and financial condition.***

We rely on our strategic partners and technological vendors for the provision and development of the key cryptographic infrastructure and smart contract architecture used in our digital asset treasury and custody solutions. While we plan to utilize open-source protocols and obtain infrastructure services from multiple providers whenever possible, some proprietary technological components used in our custody systems will be licensed by us from a single source, and our limited, and in many cases single-source, technological supply chain exposes us to multiple potential sources of operational failure or bandwidth shortages for our treasury operations.

However, it is possible that in the future our infrastructure providers may not be able to meet our required security specifications and performance characteristics, which would impact our ability to achieve our strategic treasury objectives. Additionally, our vendors may be unable to obtain required SOC certifications or provide necessary security warranties for their software that are necessary for use in our institutional custody solutions. We may also be impacted by changes in our technological needs, including API and network fee increases from our providers, in order to meet our security targets and development timelines as well as due to protocol upgrades. Likewise, any significant increases in our digital asset holdings or decentralized finance (DeFi) transaction volume may in the future require us to procure additional server capacity and node infrastructure in a short amount of time. Our providers may not ultimately be able to sustainably and timely meet our cost, security, and volume needs, requiring us to replace them with other sources. If we are unable to obtain suitable technological infrastructure and smart contract auditing services from our partners, or if our vendors decide to create or supply a competing digital asset custody product, our business could be adversely affected. Further, if we are unsuccessful in our efforts to control and reduce our decentralized networking costs, our results of operations will suffer.

While we have not experienced any temporary critical infrastructure disruption in the recent past, nor have our digital asset operations been severely affected by such circumstances, we have implemented risk prevention measures. These measures include establishing alternative infrastructure providers for all critical software components, utilizing multiple decentralized node operators across different geographic regions to minimize the risk of regional internet or cloud service disruption, and forming strategic partnerships for core key technologies such as private key sharding and secure multi-party computation (MPC) to effectively guarantee priority service access in case of market-based technological shortages. In addition, we could experience delays if our strategic technological partners and Web3 infrastructure providers do not meet agreed-upon service timelines or experience network capacity constraints. Any disruption in the provision of critical blockchain infrastructure, whether or not from a single-source vendor, could temporarily paralyze our digital asset treasury operations until an alternative provider is securely integrated, and there can be no guarantee that we or our strategic partners will be able to mitigate delays caused by any disruption in the availability of critical services. Even in cases where we may be able to establish alternate vendor relationships and license replacement cryptographic infrastructure, we may be unable to do so quickly, or at all, at service costs or security levels that are acceptable to us. This risk is heightened by the fact that we have less negotiating leverage with elite Web3 security firms than larger and more established cryptocurrency exchanges, which could adversely affect our ability to obtain necessary technological resources on favorable terms, or at all. Any of the foregoing could materially and adversely affect our results of operations, financial condition, and prospects. Furthermore, as the scale of our digital asset treasury and custody operations increases, we will need to accurately forecast computing demands, procure scalable cloud solutions, and manage high-volume on-chain transactions globally. If we are unable to accurately align our technological infrastructure capacity to our actual treasury needs or successfully implement automated transaction execution and private key management to accommodate the increased complexity of our decentralized operations, we may incur unexpected network disruptions, elevated blockchain transaction fees, and potential loss of digital assets, which could have a material and adverse effect on our results of operations and financial condition.

***We may not be able to accurately estimate the supply and demand for our digital asset custody solutions and treasury management services, which could result in inefficiencies in our business, hinder our ability to generate revenue, and create delays in the deployment of our technological infrastructure. If we fail to accurately predict our operational and cryptographic computing requirements, we incur the risk of having to pay for research and development costs as well as decentralized node and server capacities that we reserved but will not be able to use, or conversely, that we will not be able to secure sufficient additional computing and network capacities at reasonable costs in the event institutional demand for our services exceeds expectations.***

It is inherently difficult to predict our future revenues and appropriately budget for our expenses in the highly volatile digital asset sector, and we have limited insight into emerging macroeconomic or technological trends that may affect our business. We are required to provide forecasts of our infrastructure computing demand to certain of our strategic cloud and blockchain network providers prior to the scheduled onboarding of institutional clients. Currently, as a newly transitioned entity, there is little historical basis for making judgments about the demand for our proprietary custody solutions, our ability to successfully deploy and manage large-scale decentralized treasury operations, or our profitability in the future. If we overestimate our requirements, we may incur a higher cost of research and development for our blockchain protocols which will increase our operational burn rate, and our strategic infrastructure providers may have excess reserved computing capacity, which indirectly would increase our sunk costs. If we underestimate our requirements, our strategic network providers may have inadequate computing capacity, which could interrupt the execution of our treasury strategies and result in delays in client onboarding and revenue generation. In addition, lead times for specialized cryptographic infrastructure and smart contract auditing services that we order may vary significantly and depend on factors such as the specific vendor, network congestion, and demand for Web3 security services at a given time. If we fail to secure sufficient technological resources in a timely manner, the secure onboarding of institutional clients could be delayed, which would harm our brand, business, financial condition, and results of operations.

We may be unable to effectively grow our global institutional client base, technological deployment capabilities, and our decentralized finance (DeFi) integrations, or we may be unable to accurately project and effectively manage our growth. If we are unable to expand our secure custody networks and protocol auditing capabilities, institutional customers' perceptions of our security and reliability could be negatively affected, which could materially and adversely affect our business, financial condition, results of operations, and prospects.

Our success will depend on our ability to continue to expand our institutional sales and relationship management capabilities. As we develop and launch our digital asset products worldwide, our success will depend on our ability to correctly forecast institutional demand across various regulatory jurisdictions. If we incorrectly forecast demand in one jurisdiction, we cannot easily pivot this highly specialized compliance and technological infrastructure to another market where demand for our specific treasury products exists due to differing global regulatory regimes. We may face difficulties with scaling our custody solutions at increasing volumes, particularly in international markets requiring significant compliance localization. Moreover, because of the unique, proprietary nature of our cryptographic infrastructure, we require that our custody protocols be audited and maintained exclusively by our internal engineers or by certain authorized elite Web3 security firms. If we experience delays in adding secure capacity or auditing our protocols efficiently, or experience unforeseen vulnerabilities with the reliability of our smart contracts, it could critically overburden our technological capabilities and expose our treasury to unacceptable risks.

There is no assurance that we will be able to successfully scale our business to meet our institutional acquisition, infrastructure deployment, and treasury optimization targets globally, or that our financial and operational projections on which such targets are based will prove accurate. These scaling plans require significant fiat and digital asset investments and immense management resources, and there is no guarantee that they will generate additional institutional mandates or yield generation for our treasury, or that we will be able to avoid cost overruns or be able to hire the highly specialized Web3 personnel needed to support them. As we expand, we will also need to ensure our strict compliance with evolving regulatory requirements in various global jurisdictions applicable to the custody, management, and transacting of digital assets. If we fail to manage our strategic growth effectively, our reputation within the cryptocurrency ecosystem, business prospects, financial condition, and operating results may be severely harmed.

***We may in the future experience significant delays in the design, development, deployment, launch, and financing of our digital asset custody solutions and treasury management infrastructure, as well as delays in the build-out of our secure technological networks, which could harm our business and prospects.***

Any delay in the financing, development, design, deployment, and launch of our digital asset ecosystem, including planned future proprietary custody protocols and decentralized finance integrations, could materially damage our business, prospects, financial condition, and results of operations. Companies operating in the highly complex and nascent Web3 space often experience delays in the development, design, rigorous security auditing, and commercial release of new cryptographic infrastructure, and as we transition into this sector, we may experience such delays with regard to our decentralized product offerings. Our plan to successfully deploy our treasury management strategies and institutional custody solutions is heavily dependent upon the timely availability of capital, upon our finalizing of the related technological development, infrastructure procurement, smart contract testing, network build-out, and security auditing plans in a timely manner, and ultimately upon our ability to execute these complex technological integrations within our anticipated timeline. Furthermore, prior to the large-scale rollout of our new digital asset services to institutional clients, we will need our platforms and custody protocols to be fully compliant with differing and rapidly evolving requirements, including but not limited to stringent licensing and regulatory mandates, in the various global jurisdictions where we intend to offer our services.

Additionally, if we do not timely complete our planned internal development of proprietary technological infrastructure, or if such network deployment is delayed due to engineering bottlenecks or cybersecurity challenges, we may be required to contract with third-party Web3 infrastructure providers or centralized custodians to perform certain critical treasury operations. The additional licensing fees, network costs, or revenue-sharing arrangements required by these third parties could substantially increase our operational burn rate and adversely affect our business, financial condition, and results of operations.

***The success and growth of our business depends upon our ability to continuously and rapidly innovate, develop, and market new digital asset treasury and custody products, and there are significant risks related to future institutional market adoption of our services. Our limited operating history in the digital asset and Web3 infrastructure space makes evaluating our business and future prospects difficult and may increase the risk of your investment.***

The success and growth of our business depends upon our ability to continuously and rapidly innovate, develop, and market new decentralized financial products, and there are significant risks related to future market adoption of our products and the presence of favorable regulatory frameworks or institutional mandates facilitating the broader adoption of digital currencies. We have a limited operating history in cryptocurrency treasury management and operate in a rapidly evolving, highly volatile, and heavily regulated market. We have encountered and expect to continue to encounter risks and uncertainties frequently experienced by early-stage companies transitioning into rapidly changing technological markets, including risks related to our ability to, among other things: successfully launch and scale our proprietary custody platforms and treasury operations on the timing and with the security specifications we have planned; hire, integrate, and retain highly specialized Web3 professional and technical talent, including crypto-native key members of management; continue to make significant investments in blockchain research, infrastructure development, cybersecurity auditing, marketing, and institutional sales; successfully obtain, maintain, protect, and enforce our intellectual property regarding cryptographic protocols and defend against claims of intellectual property infringement, misappropriation, or other violations; build a well-recognized and trusted brand within the institutional digital asset ecosystem; establish and refine our secure technological networks and decentralized node infrastructure; establish and maintain satisfactory arrangements with our strategic technological partners and Web3 infrastructure providers; establish and expand an institutional customer base; navigate an exceptionally evolving, fragmented, and complex global regulatory environment governing digital currencies; anticipate and adapt to changing market conditions, including shifting institutional demand for specific custody solutions or decentralized finance (DeFi) yield strategies, rapid technological developments, and changes in the competitive Web3 landscape; and successfully design, secure, deploy, and market new proprietary custody protocols or decentralized treasury strategies at a profitable level in the future.

***Our institutional client acquisition and the success of our treasury strategies will depend in part on our ability to establish and maintain confidence in our business prospects among institutional clients, analysts, and others within the digital asset industry.***

Institutional clients and strategic partners may be less likely to utilize our proprietary custody solutions or engage with our treasury platforms if they do not believe that our business will succeed or that our operations, including secure infrastructure and technological support operations, will continue for many years. Similarly, Web3 infrastructure providers and other third parties will be less likely to invest time and resources in developing business relationships or protocol integrations with us if they are not convinced that our strategic pivot will succeed. Accordingly, to build, maintain, and grow our new digital asset business, we must establish and maintain confidence among clients, technological partners, analysts, and other parties with respect to our liquidity, our history of losses from legacy operations, and our Web3 business prospects. Maintaining such confidence may be particularly difficult as a result of many factors, including our limited operating history in decentralized finance and cryptocurrency custody, others' unfamiliarity with our proprietary cryptographic infrastructure, any delays in scaling secure network deployment, smart contract auditing, and custody operations to meet institutional demand, fierce competition, and our treasury performance compared with broader market expectations. Many of these factors are largely outside of our control, and any negative perceptions about our business prospects, even if exaggerated or unfounded, would likely harm our business and make it more difficult to raise additional capital or attract strategic fiat gateways in the future.

In addition, a significant number of cryptocurrency custodians and decentralized protocols have recently entered the digital asset industry, an industry historically associated with extreme volatility, intense regulatory scrutiny, and a high rate of enterprise failure. If these new entrants or other digital asset infrastructure providers go out of business, deploy smart contracts that suffer severe exploits, or otherwise fail to securely manage digital assets as expected, such failures may dramatically increase institutional and regulatory scrutiny of others in the industry, including us. This contagion effect could further challenge client, partner, and analyst confidence in our business prospects and the overall viability of our decentralized ecosystem.

***We may be unable to adequately control the substantial costs associated with our operations.***

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We will require significant capital to develop and grow our business and will need to seek new financing in the future. We have incurred and expect to continue to incur significant expenses, including technological infrastructure costs, sales and distribution expenses as we build our brand and market our digital asset custody solutions; expenses relating to developing and securing our blockchain protocols; expanding our decentralized node networks and secure server facilities; research and development expenses; cybersecurity procurement costs; and general and administrative expenses as we scale our operations and incur the costs of being a public company. In addition, we expect to incur significant costs servicing and maintaining our institutional customers' digital asset portfolios, including establishing our security operations, partnerships with Web3 infrastructure providers, and specialized custody frameworks. These expenses could be significantly higher than we currently anticipate. Moreover, any delays in the start of smart contract testing or protocol deployment, obtaining necessary cryptographic equipment or supplies, expansion of our secure network capacities or infrastructure agreements, or the procurement of regulatory permits and licenses relating to our expected digital asset treasury and custody model could significantly increase our expenses. In such an event, we could be required to seek additional financing earlier than we expect, and such financing may not be available on commercially reasonable terms or at all. In the longer term, our ability to become profitable will depend not only on our ability to control costs but also on our ability to attract institutional capital and manage our treasury at yields sufficient to achieve our expected margins. If we are unable to cost-efficiently develop, design, deploy, market, sell, distribute, and maintain our digital asset infrastructure, our margins, profitability, and prospects would be materially and adversely affected. We have incurred net losses each year since our inception.

As of December 31, 2025, we had working capital of $405.81 million. We expect to continue this trend in the foreseeable future as we continue to design and develop our proprietary custody solutions, build up our technological infrastructure components and digital asset reserves, complete our planned network integrations and deploy a comprehensive suite of decentralized services, develop and deploy institutional custody partnerships, expand our cryptographic design, research, development, network maintenance, and security auditing capabilities, increase our institutional sales and marketing activities to develop our global distribution infrastructure, and expand our general and administrative functions to support our growing Web3 operations and status as a public company.

If our technological development or commercialization is delayed, our costs and expenses may be significantly higher than we currently expect. Because we will incur the costs and expenses from these efforts before we receive any incremental revenues with respect thereto, we expect the losses in future periods will be significant.

***Our digital asset treasury operations and cryptocurrency custody solutions rely heavily on complex cryptographic infrastructure and involve a significant degree of uncertainty and risk in terms of operational performance, network security, and technological costs.***

The existing and planned technological architecture for our decentralized finance and custody operations consists of sophisticated software networks, decentralized nodes, and specialized hardware security modules combining many complex cryptographic protocols. These digital and hardware infrastructure components are susceptible to unexpected malfunctions, software bugs, and network congestion from time to time, and their continuous operation will depend on rapid engineering remediation, software patches, and ongoing node maintenance to resume secure operations, which may not be successfully deployed or available when critically needed.

Unexpected malfunctions of our proprietary cryptographic infrastructure or third-party blockchain networks may significantly affect the intended operational efficiency and security of our treasury management operations. Operational performance and technological costs can be highly difficult to predict and are often influenced by factors entirely outside of our control, such as, but not limited to, severe blockchain network congestion, malicious cyberattacks, smart contract exploits, unexpected hard forks in underlying blockchain protocols, severe outages at third-party cloud service providers, difficulties or delays in recruiting specialized cybersecurity talent, damages or defects in hardware wallets or private key sharding systems, and systemic failures within the broader decentralized finance ecosystem. Should these profound operational and technological risks materialize, it may result in the permanent loss, theft, or freezing of our digital asset reserves, catastrophic damage to our technological architecture, severe monetary losses, delays and unanticipated fluctuations in our treasury yield generation, crippling administrative enforcement actions and regulatory fines, exponentially increased cybersecurity insurance costs, and devastating potential legal liabilities, all of which could have a material and adverse effect on our business, results of operations, cash flows, financial condition, or prospects.

***We face risks associated with our digital asset staking operations, including the risk of smart contract vulnerabilities on the EdgeAI mainnet, floating yield volatility, and potential regulatory restrictions, which could materially and adversely affect our business, financial condition, results of operations and prospects.***

After the fiscal year ended December 31, 2025, we staked EdgeAI native tokens into a designated smart contract on the EdgeAI mainnet for a 12-month lock-up period in January 2026. As of the date of this annual report, the carrying value of our staked tokens was US$401.96 million. Because our returns rely entirely on algorithmic, on-chain mechanics rather than guaranteed payments, we are exposed to significant market risk. We anticipate a floating annualized yield of 3.5% to 8% payable in EdgeAI tokens; therefore, any decline in the tokens' fiat value or failure in the mainnet's reward mechanisms could substantially diminish our expected economic benefits.

Furthermore, our staked assets and associated yields depend heavily on the security and operability of the EdgeAI mainnet. Smart contracts are susceptible to technical vulnerabilities, coding errors, and malicious cyberattacks. If the network experiences technical failures or a successful exploit of the smart contract holding our assets, our tokens could be lost, stolen, or rendered permanently inaccessible. Given the irreversible nature of blockchain transactions, we may have no recourse to recover these assets, resulting in a total loss and immediate impairment charge.

Additionally, the global regulatory framework governing digital assets and staking is highly uncertain and rapidly evolving. Regulators increasingly scrutinize staking activities, sometimes asserting they constitute unregistered securities offerings. Pursuant to our agreement, the EdgeAI Foundation may suspend the arrangement if we become subject to legal restrictions. Any new laws, regulatory enforcement actions, or required registrations could severely disrupt our digital asset strategy, force a premature termination of the agreement, or result in significant compliance costs and penalties, thereby materially and adversely affecting our business and prospects.

***Our digital infrastructure and globally distributed operations could be and have been adversely affected by events outside of our control, such as natural disasters, wars, health epidemics, macroeconomic shocks, or severe security incidents.***

We may be fundamentally impacted by events that disrupt the global internet or underlying blockchain networks, including natural disasters, wars, health epidemics, pandemics, or other catastrophic events outside of our control. Further, if major disasters such as earthquakes, wildfires, or tornadoes occur in regions where our critical third-party cloud service providers or decentralized node operators are concentrated, or if our proprietary information systems, cryptographic custody networks, or broader internet communications severely break down or operate improperly, our technological architecture may be seriously compromised, or we may have to temporarily halt or delay our treasury management operations, decentralized finance (DeFi) yield generation, and client transaction executions. In addition, global events such as pandemics or geopolitical conflicts can severely impact economic markets, global computing infrastructure supply chains, remote workforce availability, and institutional investor behavior across the world, driving extreme volatility in digital asset prices, and we have been, and may in the future be, adversely affected as a result. Furthermore, while we no longer operate vehicle manufacturing plants, we could be impacted by severe physical security incidents at the data centers hosting our servers or, more critically, devastating cybersecurity incidents targeting our digital asset custody protocols and private key storage infrastructure. Such incidents could result in the catastrophic loss of treasury assets or significant damage to our secure networks, requiring us to delay or permanently discontinue specific decentralized operations to rebuild our cryptographic architecture. We may incur significant expenses, unrecoverable digital asset losses, or severe operational delays relating to such events outside of our control, which could have a material adverse impact on our business, results of operations, and financial condition.

***We rely on our IT systems, and any material disruption to our IT systems could have a material and adverse effect on us.***

The availability and effectiveness of our services depend on the continued operation of our information technology and communications systems. We rely on our IT systems, and such systems are vulnerable to damage or interruption from various adverse effects, such as fire, terrorist attacks, natural disasters, power loss, telecommunications failures, computer viruses, computer denial of service attacks, or other attempts to harm our systems. Our products and services are also highly technical and complex and may contain errors or vulnerabilities that could result in interruptions in our services or the failure of our systems or the systems on which we rely.

***We are subject to evolving laws, regulations, standards, policies, and contractual obligations related to data privacy, security, and consumer protection, and any actual or perceived failure to comply with such obligations could harm our reputation and brand, subject us to significant fines and liability, or otherwise adversely affect our business***.

Due to our data collection practices, products, services, and technologies, upon entries into relevant jurisdictions, we will be subject to or affected by a number of federal, state, local, and international laws and regulations, as well as contractual obligations and industry standards, that impose certain obligations and restrictions with respect to data privacy and security and govern our collection, storage, retention, protection, use, processing, transmission, sharing, and disclosure of personal information, including that of our employees, customers, and other third parties with whom we conduct business. These laws, regulations, and standards may be interpreted and applied differently over time and from jurisdiction to jurisdiction, and it is possible that they will be interpreted and applied in ways that may have a material and adverse impact on our business, financial condition, and results of operations.

The global data protection landscape is rapidly evolving, and implementation standards and enforcement practices are likely to remain uncertain for the foreseeable future. We may not be able to monitor and react to all developments in a timely manner. The European Union adopted the General Data Protection Regulation ("***GDPR***"), which became effective on May 25, 2018, and California adopted the California Consumer Privacy Act of 2018 ("***CCPA***"), which became effective in January 2020. Both the GDPR and the CCPA impose additional obligations on companies regarding the handling of personal data and provide certain privacy rights to individual persons whose data is collected. Compliance with existing, proposed, and recently enacted laws and regulations (including implementation of the privacy and process enhancements called for under the GDPR and CCPA) can be costly, and any failure to comply with these regulatory standards could subject us to legal and reputational risks.

Specifically, the CCPA establishes a privacy framework for covered businesses, including an expansive definition of personal information and data privacy rights for California residents. The CCPA includes a framework with potentially severe statutory damages for violations and a private right of action for certain data breaches. The CCPA requires covered businesses to provide California residents with new privacy-related disclosures and new ways to opt-out of certain uses and disclosures of personal information. As we expand our operations, the CCPA may increase our compliance costs and potential liability. Some observers have noted that the CCPA could mark the beginning of a trend toward more stringent privacy legislation in the United States. Additionally, effective in most respects starting on January 1, 2023, the California Privacy Rights Act ("***CPRA***") will significantly modify the CCPA, including by expanding California residents' rights with respect to certain sensitive personal information. The CPRA also creates a new state agency that will be vested with authority to implement and enforce the CCPA and the CPRA.

Other jurisdictions have begun to propose similar laws. Compliance with applicable privacy and data security laws and regulations is a rigorous and time-intensive process, and we may be required to put in place additional mechanisms to comply with such laws and regulations, which could cause us to incur substantial costs or require us to change our business practices, including our data practices, in a manner adverse to our business. In particular, certain emerging privacy laws are still subject to a high degree of uncertainty as to their interpretation and application. Failure to comply with applicable laws or regulations or to secure personal information could result in investigations, enforcement actions, and other proceedings against us, which could result in substantial fines, damages, and other liability, as well as damage to our reputation and credibility, which could have a negative impact on our revenues and profits.

We post public privacy policies on our websites and provide privacy notices to the categories of persons whose personal information we collect, process, use, or disclose. Although we endeavor to comply with our published policies and other documentation, we may at times fail to do so or may be perceived to have failed to do so. Moreover, despite our efforts, we may not be successful in achieving compliance if our employees, contractors, service providers, vendors, or other third parties fail to comply with our published policies and documentation. Such failures could carry similar consequences or subject us to potential local, state, and federal action if they are found to be deceptive, unfair, or misrepresentative of our actual practices. Claims that we have violated individuals' privacy rights or failed to comply with data protection laws or applicable privacy notices could, even if we are not found liable, be expensive and time-consuming to defend and could result in adverse publicity that could harm our business.

Most jurisdictions have enacted laws requiring companies to notify individuals, regulatory authorities, and other third parties of security breaches involving certain types of data. Such laws may be inconsistent or may change, or additional laws may be adopted. In addition, our agreements with certain customers may require us to notify them in the event of a security breach. Such mandatory disclosures are costly, could lead to negative publicity, penalties or fines, litigation, and our customers losing confidence in the effectiveness of our security measures, and could require us to expend significant capital and other resources to respond to or alleviate problems caused by the actual or perceived security breach. Any of the foregoing could materially and adversely affect our business, prospects, results of operations, and financial condition.

***Our ability to effectively manage our expected growth in the digital asset treasury management sector will be fundamentally dependent on the performance of highly skilled personnel, including our Chief Executive Officer Melissa Chen, our senior management team, and other key cryptographic and Web3 employees, and our ongoing ability to recruit and retain such specialized talent. The loss of key personnel or an inability to attract, retain, and motivate qualified blockchain professionals may severely impair our ability to expand our new business model.***

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Our future success in executing our decentralized finance strategies and securing our cryptocurrency custody infrastructure will be substantially dependent upon the continued service and performance of our senior management team and key personnel possessing deep technological, cybersecurity, and digital asset expertise. Although we anticipate that our management and key personnel will remain in place during this strategic pivot, it is possible that we could lose critical talent. For example, we are highly dependent on the services of Melissa Chen, our Chief Executive Officer, who exerts a significant influence on and is a primary driver of our new Web3 business plan, technological deployment, and treasury optimization strategy. If Ms. Chen were to discontinue his service to us, we would be significantly disadvantaged in navigating the complex transition from legacy manufacturing to digital asset management. The replacement of any members of our senior management team or other key decentralized infrastructure personnel would likely involve significant time and exorbitant costs, and may significantly delay or prevent the achievement of our business objectives. Our future success also depends, in part, on our ability to continue to attract, integrate, and retain highly skilled smart contract engineers, node operators, and cybersecurity personnel.

Competition for such highly skilled Web3 personnel is exceptionally intense globally. As with any rapidly scaling technology enterprise, there can be no guarantee that we will be able to attract such individuals or that the presence of such individuals will necessarily translate into treasury profitability. Because we operate in the highly specialized and rapidly evolving cryptoeconomy, there is a severely limited pool of personnel available with proven, enterprise-level decentralized finance and custody experience, and such highly sought-after individuals may be subject to non-competition and other agreements that restrict their ability to work for us. Our inability to attract and retain these key technical and managerial personnel may materially and adversely affect our digital asset operations, and any failure by our management to effectively anticipate, implement, and manage the profound technological and regulatory changes required to sustain our growth would have a material and adverse effect on our business, financial condition, and results of operations.

Our ability to effectively manage our expected growth will be dependent on the performance of highly skilled personnel, including our Chief Executive Officer Melissa Chen, our senior management team, and other key employees, and our ability to recruit and retain key employees. The loss of key personnel or an inability to attract, retain, and motivate qualified personnel may impair our ability to expand our business.

**Risks Related to Litigation and Regulations**

***While our primary operations are no longer in mainland China, Changes in China's regulatory landscape regarding digital assets, including recent extraterritorial enforcement directives, could severely restrict our operations, subject us to penalties, and materially adversely affect our business.***

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Our operations and strategic initiatives, particularly those involving decentralized finance ecosystems and real world asset tokenization, are subject to complex, evolving, and highly restrictive international regulatory frameworks, most notably recent directives from regulatory authorities in the People's Republic of China. On February 6, 2026, multiple Chinese regulatory bodies, including the People's Bank of China and the China Securities Regulatory Commission, jointly promulgated the Notice on Further Preventing and Handling Risks Related to Virtual Currencies and Other Matters, which categorically classifies virtual currency transactions as illegal financial activities and strictly prohibits all related business operations within China. Crucially for our business model, this directive explicitly extends regulatory enforcement to offshore entities, strictly forbidding overseas enterprises from providing any form of virtual currency or real world asset tokenization services to domestic Chinese entities or individuals. Furthermore, the directive imposes absolute prohibitions on the offshore issuance of stablecoins pegged to the Renminbi without explicit regulatory consent and mandates severe scrutiny over any offshore real world asset tokenization initiatives that are backed by domestic Chinese assets or interests. Consequently, any inadvertent nexus to the Chinese market, whether through domestic residents covertly accessing our decentralized finance platforms and custody infrastructure, or through our necessary engagement with Chinese vendors, technology partners, or financial institutions who may now be subjected to extraterritorial civil or criminal liability for assisting overseas digital asset entities, could expose our Company to profound compliance liabilities. Any failure on our part to completely geofence our services from domestic Chinese residents or any inadvertent violation of these sweeping extraterritorial regulations through our global treasury operations could precipitate severe governmental enforcement actions, substantial financial penalties, criminal liability for our officers and directors, and irreparable damage to our corporate reputation and institutional client relationships.

***Our business is subject to complex U.S. state regulatory frameworks, notably the New York State Department of Financial Services (NYSDFS) BitLicense requirements, and any failure to maintain compliance could disrupt our operations and restrict our market access.***

In addition to international regulatory complexities, our business operations within the United States are heavily encumbered by disparate and exceptionally rigorous state-level regulatory frameworks, most prominently the comprehensive virtual currency regulations enforced by the New York State Department of Financial Services under the BitLicense framework. Operating within New York or offering services to its residents requires us to not only secure and meticulously maintain a BitLicense but also to subject our strategic and operational decisions to continuous regulatory oversight, including the absolute necessity of obtaining prior written approval from regulators before introducing any material new products, services, or modifications to our existing custody infrastructure and treasury strategies. This regulatory regime imposes substantial capital control requirements, compelling us to hold designated, potentially massive amounts of capital in highly liquid, investment-grade assets and to maintain dedicated, dollar-denominated trust accounts for customer benefit, thereby aggressively restricting the capital available for deployment in our core treasury optimization and yield-generation strategies. Furthermore, maintaining compliance with the New York regulatory apparatus necessitates the continuous funding and execution of exhaustive internal compliance programs, which mandate deeply integrated anti-money laundering risk assessments tailored specifically to our decentralized finance and custody business models, alongside rigorous quarterly and annual financial reporting, stringent consumer protection disclosures mandated across multiple languages, and exhaustive regulatory oversight of all corporate marketing activities. Consequently, the sheer operational friction and immense financial burden associated with strictly adhering to these multifaceted compliance, capital, and reporting mandates significantly inhibit our operational agility, and any real or perceived failure to flawlessly execute these compliance obligations could result in immediate license suspension, severe monetary sanctions, and our total exclusion from the critical New York institutional market, thereby inflicting a material adverse effect on our overall financial condition and strategic market positioning.

***We may in the future be subject to legal proceedings, regulatory disputes, and governmental inquiries that could cause us to incur significant expenses, divert our management's attention, and materially harm our business, results of operations, cash flows, and financial condition.***

From time to time, we may be subject to claims, lawsuits, government investigations, and other proceedings involving product liability, consumer protection, competition and antitrust, intellectual property, privacy, securities, tax, labor and employment, health and safety, our direct distribution model, environmental claims, commercial disputes, corporate, and other matters that could adversely affect our business, results of operations, cash flows, and financial condition. In the ordinary course of business, we have been the subject of complaints or litigation, including claims.

Litigation and regulatory proceedings may be protracted and expensive, and the results are difficult to predict. Additionally, our litigation costs could be significant, even if we achieve favorable outcomes. Adverse outcomes with respect to litigation or any of these legal proceedings may result in significant settlement costs or judgments, penalties and fines, or require us to modify, make temporarily unavailable, or stop manufacturing or selling our vehicles in some or all markets, all of which could negatively affect our sales and revenue growth and adversely affect our business, prospects, results of operations, cash flows, and financial condition.

The results of litigation, investigations, claims, and regulatory proceedings cannot be predicted with certainty, and determining reserves for pending litigation and other legal and regulatory matters requires significant judgment. There can be no assurances that our expectations will prove correct, and even if these matters are resolved in our favor or without significant cash settlements, these matters, and the time and resources necessary to litigate or resolve them, could harm our business, results of operations, cash flows, and financial condition. In addition, the threat or announcement of litigation or investigations by governmental authorities or other parties, irrespective of the merits of the underlying claims, may itself have an adverse impact on the trading price of our securities.

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***We may become subject to severe technology liability and fiduciary claims, which could critically harm our financial condition and liquidity if we are not able to successfully defend or insure against such claims.***

We may become subject to technology and software liability claims, which could harm our business, prospects, results of operations, and financial condition. The digital asset custody and decentralized finance industry experiences significant claims related to technological failures, and we face inherent risks of exposure to claims in the event our proprietary custody infrastructure or smart contracts do not perform or are claimed not to perform as expected or malfunction, resulting in the catastrophic theft, freezing, or permanent loss of institutional digital assets. We also expect that, as is true for other digital asset custodians and infrastructure providers, our platforms may be targeted by sophisticated cyberattacks or exploited through unforeseen vulnerabilities, and even if such losses are not directly caused by the failure of our internal systems but rather by third-party protocols, we may face massive liability claims, breach of fiduciary duty allegations, and severe adverse publicity in connection with such incidents. In addition, we may face claims arising from or related to failures, claimed failures, or misuse of new technologies that we expect to offer, including automated decentralized finance (DeFi) yield strategies, proprietary algorithmic treasury execution features, and future upgrades to our cryptographic custody architecture. In addition, the blockchain networks and smart contracts that we utilize are built on highly complex, experimental codebases; on rare occasions, these decentralized protocols can experience catastrophic exploits or cascading liquidations that rapidly drain stored digital assets in a manner that can trigger broader systemic contagion across interconnected liquidity pools (see "-Risks Related to Our Business and Industry-Our treasury strategies will make use of decentralized finance protocols and smart contracts, which have been observed to suffer severe exploits or permanent loss of funds."). Any such events or failures of our custody architecture, smart contracts, or automated security warning systems could subject us to devastating class-action lawsuits, forced platform halts, or emergency redesign efforts, all of which would be immensely time-consuming and expensive.

A successful liability claim against us could require us to pay a substantial monetary award or fully compensate clients for permanently lost cryptocurrency. Moreover, a liability claim against us or our direct competitors could generate substantial negative publicity about our security architecture and business and inhibit or prevent the commercialization of our future digital asset services, which would have material and adverse effects on our brand, business, prospects, and results of operations. Our cybersecurity and errors and omissions insurance coverage might not be sufficient to cover all potential liability claims involving volatile digital assets, and such specialized insurance coverage may not continue to be available to us or, if available, may only be obtained at a significantly higher cost. Any lawsuit seeking significant monetary damages or other liability claims related to the loss of digital assets may have a material and adverse effect on our reputation, business, and financial condition.

***Our technological suppliers and infrastructure partners may be exposed to delays, limitations, and risks related to the specialized regulatory licenses, environmental scrutiny, and other operating permits required to operate the decentralized nodes and data centers powering our digital asset operations.***

Operation of institutional-grade digital asset infrastructure and secure data facilities requires highly specialized regulatory approvals, such as Money Transmitter Licenses (MTLs), state-specific virtual currency licenses, or Trust Charters, as well as local land use and high-density power consumption permits from federal, state, and local government entities. We may expand our decentralized network capacities by entering into additional agreements with our cloud suppliers and infrastructure partners over time to achieve a future target computing and custody capacity, and both we and our partners will be required to apply for and secure various financial, data security, and energy use permits necessary for the commercial operation of such expanded and additional data facilities. Furthermore, the underlying proof-of-work blockchain networks upon which certain digital assets in our treasury rely are subject to intense environmental scrutiny regarding their energy consumption and carbon footprint, potentially subjecting our infrastructure partners to stringent environmental regulations, restrictive zoning laws, or moratoriums on high-performance computing operations. Delays, denials, or severe restrictions on any of the applications for or assignment of the licenses and permits to operate our cryptographic infrastructure or the data centers of our partners could adversely affect our ability to execute on our business plans and treasury optimization objectives based on our current target network capacity or our future target institutional custody capabilities.

***If we fail to implement and maintain an effective system of internal controls over financial reporting, we may be unable to accurately report our results of operations, meet reporting obligations, or prevent fraud. As a result, our security holders could lose confidence in our financial and other public reporting, which would harm our business and trading price of our securities.***

We are subject to reporting obligations under U.S. securities laws. The SEC adopted rules pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 requiring every public company to include a management report on such company's internal control over financial reporting in its annual report, which contains management's assessment of the effectiveness of its internal control over financial reporting.

For the fiscal year ended December 31, 2025, we identified the following material weaknesses and significant deficiencies:(1) Complex transaction controls – We lack standardized processes to identify, evaluate, account for, and disclose complex and non-recurring transactions under U.S. GAAP and SEC rules, particularly for disposal of legacy operations and discontinued operations. Key accounting judgments, impairment measurements, and disclosure review procedures are insufficient, (2) Digital asset controls – We lack complete policies and processes for digital asset custody, wallet management, private key security, transaction authorization, and independent reconciliation. Wallet and private key policies are not fully standardized, approval mechanisms are unclear, and regular book-to-blockchain reconciliation is not established. See "Item 15. Controls and Procedures" for further details. Our management is currently in the process of evaluating the steps necessary to remediate the ineffectiveness, such as (i) establishing standardized processes for complex transactions, enhancing review and oversight, and engaging external experts when needed; and (ii) developing standardized digital asset policies, independent reconciliation mechanisms, and enhanced monitoring.

However, these measures may not fully remediate the identified deficiencies. If we fail to timely remediate these or other deficiencies, material misstatements could occur, and our ability to comply with financial reporting requirements and regulatory filings could be impaired. The digital asset control deficiencies also increase risks related to asset security, transaction authorization, and reconciliation accuracy. As a result, our business, financial condition, results of operations, prospects, and share price could be materially and adversely affected.

***We are subject to various environmental and energy-use laws and regulations that could impose substantial costs on us and cause delays in expanding our technological infrastructure and digital asset custody capabilities.***

Our infrastructure partners' data center operations, as well as the underlying decentralized networks upon which our digital asset treasury relies, are increasingly subject to stringent environmental laws and regulations in different jurisdictions globally. The environmental impact of blockchain technology has drawn intense scrutiny from environmental regulators and policymakers. Environmental and energy-use laws and regulations are highly complex and rapidly evolving, and as a newly transitioned digital asset enterprise, we have limited historical experience in forecasting and complying with these specific technological sustainability mandates. Moreover, we may be heavily affected by future amendments to such laws, new Environmental, Social, and Governance (ESG) reporting mandates, or other stringent environmental regulations that may require us or our infrastructure partners to fundamentally change our operations, such as migrating to renewable energy sources, relocating servers to different jurisdictions, or abandoning certain energy-intensive digital asset ecosystems entirely. This could potentially result in a material and adverse effect on our business, prospects, results of operations, and financial condition. These laws can give rise to severe liability for administrative oversight costs, mandatory carbon offset purchases, fines, and penalties. Capital and operating expenses needed to comply with these emerging environmental and energy-use regulations can be significant, and violations by us or our third-party data center operators could result in debilitating litigation, substantial regulatory fines and penalties, forced suspension of our technological deployments, or a complete cessation of our decentralized treasury operations.

**Risks Related to Intellectual Property**

***We may fail to adequately obtain, maintain, enforce, and protect our existing and future intellectual property and licensing rights, and we may not be able to prevent third parties from unauthorized use of our intellectual property and proprietary technology. If we are unsuccessful in any of the foregoing, our competitive position could be harmed, and we could be required to incur significant expenses to enforce our rights.***

Our ability to compete effectively in the digital asset treasury sector is dependent in part upon our ability to obtain, maintain, enforce, and protect our existing and future intellectual property, proprietary cryptographic technology, and licensing rights, but we may not be able to prevent third parties from the unauthorized use of our intellectual property, which could severely harm our business and competitive position. We establish and protect our intellectual property and proprietary Web3 technology through a combination of licensing agreements, nondisclosure and confidentiality agreements, and other contractual provisions, as well as through patent, trademark, copyright, and trade secret laws. Despite our efforts to obtain and protect intellectual property rights relating to our digital asset custody architecture and smart contracts, there can be no assurance that these protections will be available in all cases, or will guarantee our success in claiming the intellectual property rights, or will be adequate or timely to prevent our competitors or other third parties from copying, reverse engineering, or otherwise obtaining and using our proprietary algorithms, or seeking court declarations that they do not infringe, misappropriate, or otherwise violate our intellectual property. Failure to adequately obtain, maintain, enforce, and protect our intellectual property could result in our competitors offering identical or similar digital asset custody services, potentially resulting in the loss of our competitive advantage and a decrease in our revenue, which would adversely affect our business, prospects, financial condition, and results of operations.

The measures we take to obtain, maintain, protect, and enforce our intellectual property, including preventing unauthorized use by third parties, may not be effective for various reasons, including the following:

● any patent application we file may not result in the issuance of a patent;

● We may not be the first inventor of the subject matter to which it has filed a particular patent application, and/or it may not be the first party to file such a patent application;

● the scope of our issued patents may not be sufficient to protect our inventions and proprietary technology;

● Our issued patents may be challenged by our competitors or other third parties and invalidated by courts or other tribunals;

● patents have a finite term, and competitors and other third parties may offer identical or similar products after the expiration of our patents that cover such products;

● Our employees, contractors or business partners may breach their confidentiality, non-disclosure and non-use obligations;

● We may not be able to claim rights to the intellectual property rights we collaborate with third-parties to develop; or may not be the exclusive licensee to a developed patents or technology;

● competitors and other third parties may independently develop technologies that are the same or similar to ours;

● the costs associated with enforcing patents or other intellectual property rights, or confidentiality and invention assignment agreements may make enforcement impracticable; and

● competitors and other third parties may circumvent or otherwise design around our patents or other intellectual property.

Patent, trademark, copyright, and trade secret laws vary significantly throughout the world. The laws of some countries, including those where we deploy our decentralized node infrastructure, may not be as protective as the laws in the United States, and mechanisms for obtaining and enforcing intellectual property rights may be ineffectual or inadequate. Further, policing the unauthorized use of our intellectual property in some jurisdictions may be difficult or too expensive to be practical. In addition, third parties may seek to challenge, invalidate, or circumvent our patents, trademarks, copyrights, trade secrets, or other intellectual property, or applications for any of the foregoing, which could permit our competitors or other third parties to develop and commercialize products and technologies that are the same or similar to ours.

While we have registered and applied for registration of trademarks in an effort to protect our brand and goodwill with customers, competitors, or other third parties have in the past and may in the future oppose our trademark applications or otherwise challenge our use of the trademarks and other brand names in which we have invested. Such oppositions and challenges can be expensive and may adversely affect our ability to maintain the goodwill gained in connection with a particular trademark. In addition, we may lose our trademark rights if we are unable to submit specimens or other evidence of use by the applicable deadline to perfect such trademark rights.

Furthermore, we cannot be certain that these agreements will not be breached and that third parties will not improperly gain access to our trade secrets, know-how, and other proprietary technology. Third parties may also independently develop the same or substantially similar proprietary technology. Monitoring unauthorized use of our intellectual property is difficult and costly, as are the steps we have taken or will take to prevent misappropriation.

We have acquired or licensed, and plan to further acquire or license, patents and other intellectual property from third-party Web3 infrastructure providers and security auditing firms, and we may face claims that our use of this acquired or in-licensed technology infringes, misappropriates, or otherwise violates the intellectual property rights of third parties. In such cases, we will seek indemnification from our licensors; however, our rights to indemnification may be unavailable or insufficient to cover our costs and losses, particularly those resulting from compromised digital assets. Furthermore, disputes may arise with our licensors regarding the intellectual property subject to, and any of our rights and obligations under, any software license or open-source protocol agreement.

To prevent the unauthorized use of our intellectual property, it may be necessary to prosecute actions for infringement or misappropriation against third parties. Any such action could result in significant costs and diversion of our resources and management's attention from our core treasury operations, and there can be no assurances that we will be successful in any such action. Many of our current and potential competitors in the digital asset space have the ability to dedicate substantially greater resources to enforce their intellectual property rights than we currently do. Accordingly, despite our efforts, we may not be able to prevent third parties from infringing upon our proprietary custody technology, and our pending patent applications may not issue as patents, all of which could have a material adverse effect on our business, prospects, financial condition, and results of operations.

***Our patent applications may not issue as patents, which may have a material adverse effect on our ability to prevent others from commercially exploiting solutions similar to ours.***

We cannot be certain that we are the first inventor of the subject matter to which we have filed a particular patent application, or if we are the first party to file such a patent application. If another party has filed a patent application to the same subject matter as we have, we may not be entitled to the protection sought by the patent application. Further, the scope of protection of issued patent claims is often difficult to determine. As a result, we cannot be certain that the patent applications that we file will issue, or that our issued patents will afford protection against competitors with similar technology. In addition, our competitors may design around our issued patents, which may adversely affect our business, prospects, financial condition, or operating results.

***We use other parties' software and other intellectual property in our proprietary software, including "open source" software. Any inability to continuously use such software or other intellectual property in the future could have a material adverse impact on our business, financial condition, results of operations, and prospects.***

We use open-source software in our products and anticipate using open-source software in the future. Some open-source software licenses require those who distribute open-source software as part of their own software product to publicly disclose all or part of the source code to such software product or to make available any derivative works of the open-source code on unfavorable terms or at no cost, and we may be subject to such terms. The terms of many open-source licenses to which we are subject have not been interpreted by U.S. or other courts, and there is a risk that open-source software licenses could be construed in a manner that imposes unanticipated conditions or restrictions on our ability to provide or distribute our products or services. Any actual or claimed requirement to disclose our proprietary source code or pay damages for breach of contract could harm our business and could help third parties, including our competitors, develop products and services that are similar to or better than ours. While we monitor our use of open-source software and try to ensure that none is used in a manner that would require us to disclose our proprietary source code or that would otherwise breach the terms of an open-source agreement, such use could inadvertently occur, or could be claimed to have occurred. Additionally, we could face claims from third parties claiming ownership of, or demanding release of, the open-source software or derivative works that we developed using such software, which could include our proprietary source code, or otherwise seeking to enforce the terms of the applicable open-source license. These claims could result in litigation and could require us to make our software source code freely available, purchase a costly license, or cease offering the implicated products or services unless and until we can re-engineer them to avoid infringement, which may be a costly and time-consuming process, and we may not be able to complete the re-engineering process successfully.

Additionally, the use of certain open-source software can lead to greater risks than use of other parties' commercial software, as open-source licensors generally do not provide warranties or controls on the origin of software. There is typically no support available for open-source software, and we cannot ensure that the authors of such open-source software will implement or push updates to address security risks or will not abandon further development and maintenance. Many of the risks associated with the use of open-source software, such as the lack of warranties or assurances of title or performance, cannot be eliminated, and could, if not properly addressed, negatively affect our business. Any of these risks could be difficult to eliminate or manage and, if not addressed, could have a material and adverse effect on our business, financial condition, and results of operations.

***We may become subject to claims of intellectual property infringement by third parties which, regardless of merit, could be time-consuming and costly and result in significant legal liability, and could negatively impact our business, financial condition, results of operations, and prospects.***

Our competitors or other third parties may hold or obtain patents, copyrights, trademarks, or other proprietary rights that could prevent, limit, or interfere with our ability to make, use, develop, sell, or market our products and services, which could make it more difficult for us to operate. From time to time, the holders of such intellectual property rights may assert their rights and urge us to take licenses and/or may bring suits alleging infringement or misappropriation of such rights, which could result in substantial costs, negative publicity, and management attention, regardless of merit. While we endeavor to obtain and protect the intellectual property rights that we expect will allow us to retain or advance our strategic initiatives, there can be no assurance that we will be able to adequately identify and protect the portions of intellectual property that are strategic to our business, or mitigate the risk of potential suits or other legal demands by our competitors. Accordingly, we may consider entering into licensing agreements with respect to such rights, although no assurance can be given that such licenses can be obtained on acceptable terms or that litigation will not occur, and such licenses and associated litigation could significantly increase our operating expenses. In addition, if we are determined to have or believe there is a high likelihood that we have infringed upon a third party's intellectual property rights, we may be required to cease making, selling, or incorporating certain components or intellectual property into our goods and services, to pay substantial damages and/or license royalties, to redesign our products and services and/or to establish and maintain alternative branding for our products and services. In the event that we are required to take one or more such actions, our brand, business, financial condition, and operating results may be harmed*.***

**Risks Related to Doing Business in China**

***Although we are in the process of divesting our legacy operations in mainland China, our choice of auditor or their location may still subject us to risks under the HFCAA. Our Class A Ordinary Shares may be prohibited from trading in the United States under the HFCAA in the future if the PCAOB is unable to inspect or investigate completely auditors located in China. The delisting or prohibition of trading of our shares, or the threat of their being delisted or prohibited from trading, may materially and adversely affect the value of your investment.***

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

On December 16, 2021, the PCAOB issued a report to notify the SEC of its determination that the PCAOB was unable to inspect or investigate completely registered public accounting firms headquartered in mainland China and Hong Kong and our auditor was subject to that determination. On December 15, 2022, the PCAOB removed mainland China and Hong Kong from the list of jurisdictions where it is unable to inspect or investigate completely registered public accounting firms.

Each year, the PCAOB will determine whether it can inspect and investigate completely audit firms in mainland China and Hong Kong, among other jurisdictions. If the PCAOB determines in the future that it no longer has full access to inspect and investigate completely accounting firms in mainland China and Hong Kong and we use an accounting firm headquartered in one of these jurisdictions to issue an audit report on our financial statements filed with the SEC, we would be identified as a Commission-Identified Issuer following the filing of the annual report on Form 20-F for the relevant fiscal year. In accordance with the HFCAA, our securities would be prohibited from being traded on a national securities exchange or in the over-the-counter trading market in the United States if we are identified as a Commission-Identified Issuer for two consecutive years in the future. If our Class A Ordinary Shares are prohibited from trading in the United States, there is no certainty that we will be able to list on a non-U.S. exchange or that a market for our shares will develop outside of the United States. A prohibition of being able to trade in the United States would substantially impair your ability to sell or purchase our Class A Ordinary Shares when you wish to do so, and the risk and uncertainty associated with delisting would have a negative impact on the price of our shares. Such a prohibition would significantly affect our ability to raise capital on terms acceptable to us, or at all, which would have a material adverse impact on our business, financial condition, and prospects.

***The Chinese government may intervene in or influence our divestiture process and residual operations in China at any time, which could result in a material change in our operations and ability to execute our digital asset strategy.***

The Chinese government exerts substantial influence, discretion, oversight, and control over the manner in which companies incorporated under the laws and regulations of China, or those with significant operations, subsidiaries, or management residing in China, must conduct their business activities, including activities relating to overseas offerings of securities and foreign investments. Although we have agreed to divest our unprofitable legacy electric vehicle subsidiary, Chijet Inc., for $1 in order to pivot our strategic focus toward technology and digital asset management, this transaction remains subject to closing conditions, capital controls, and potential regulatory scrutiny. Until this divestiture is fully completed and legally recognized, and to the extent any of our executive management, administrative functions, or technological infrastructure remains located within mainland China, we remain deeply exposed to PRC regulatory risks.

Crucially, the Chinese government has adopted a strictly prohibitive stance on digital assets; mainland regulatory authorities, including the People's Bank of China, have issued sweeping bans declaring all cryptocurrency-related business activities illegal and strictly prohibiting cryptocurrency trading, fiat-to-crypto exchanges, decentralized finance participation, and digital asset mining within the PRC. Because we are executing a comprehensive digital currency strategy that includes our DexTrader data platform and digital asset staking activities with treasury holdings exceeding approximately US$401.96 million as of December 31, 2025, any determination by PRC authorities that our current operations, our strategic pivot, or the activities of our China-based personnel violate these uncompromising bans could result in immediate and severe enforcement actions. Such actions may include the freezing of our assets, severe financial penalties, criminal liability for our executives, and the forced cessation of our digital asset operations.

Furthermore, the Chinese government has recently implemented new regulatory frameworks, including those promulgated by the China Securities Regulatory Commission (CSRC) regarding the overseas listing and capital activities of domestic companies, as well as strict cross-border data transfer laws. We cannot rule out the possibility that PRC authorities will require us to seek permission, undergo retroactive cybersecurity reviews, or face regulatory roadblocks regarding our strategic pivot, the repatriation of funds, or the divestiture of our mainland assets. Any such regulatory intervention, enforcement of the cryptocurrency ban against our residual mainland footprint, or a failure to successfully and completely sever our operational reliance on mainland China could result in a material adverse change in our operations, permanently compromise our decentralized treasury infrastructure, and cause the value of our Nasdaq-listed securities to significantly decline or become completely worthless.

***Changes in Chinese policies, regulations, and rules may occur quickly, and the enforcement of laws by the Chinese government is subject to change, which could have a significant impact upon our ability to successfully complete our strategic pivot and operate profitably.***

Although we are actively divesting our legacy vehicle manufacturing subsidiary in China to focus entirely on digital asset treasury management, the completion of this divestiture, the handling of any residual corporate entities, and our historical operational footprint remain deeply exposed to the economic, political, and legal developments in the PRC. Policies, regulations, rules, and the enforcement of laws by the Chinese government, particularly concerning cross-border capital flows, the repatriation of funds, foreign investments, and the sweeping national bans on all cryptocurrency-related activities, may have significant effects on our ability to sever our historical ties without incurring severe financial penalties or regulatory intervention. Our ability to operate profitably and seamlessly transition to a decentralized digital asset ecosystem may be adversely affected by rapid and unexpected changes in policies by the Chinese government, including changes in laws, regulations, their interpretation, and their retroactive enforcement, which could target our historical operations, restrict our restructuring efforts, or paralyze our remaining administrative functions.

***Litigation and negative publicity surrounding China-based companies listed in the U.S. may result in increased regulatory scrutiny of us and negatively impact the trading price of the Class A Ordinary Shares and could have a material adverse effect upon our business, including our results of operations, financial condition, cash flows and prospects.***

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We believe that litigation and negative publicity surrounding companies with operations in China that are listed in the U.S. have negatively impacted stock prices for such companies. Various equity-based research organizations have published reports on China-based companies after examining, among other things, their corporate governance practices, related party transactions, sales practices and financial statements that have led to special investigations and stock suspensions on national exchanges. Any similar scrutiny of us, regardless of its lack of merit, could result in a diversion of management resources and energy, potential costs to defend ourselves against rumors, decreases and volatility in our Class A Ordinary Shares trading price, and increased directors and officers insurance premiums and could have a material adverse effect upon our business, including our results of operations, financial condition, cash flows and prospects.

***It may be difficult for overseas regulators to conduct investigation or collect evidence within mainland China.***

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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 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. 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. Furthermore, pursuant to the *Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Enterprises* which became effective on March 31, 2023, the investigation and evidence collection in relation to the oversea securities offering and listing of the PRC companies by overseas securities regulatory authorities and relevant authorities shall be conducted through the cross-border cooperation mechanism for supervision and administration. The PRC companies shall obtain the prior consent from the CSRC or relevant authorities before cooperating with such overseas securities regulatory authorities or relevant authorities in connection with relevant inspections or investigations or providing relevant documents to such overseas securities regulatory authorities or relevant authorities. 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 Class A Ordinary Shares -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 holding company.

***There may be changes from time to time in the interpretation and application of the laws of mainland China, and any failure to comply with laws and regulations could have a material adverse effect on our business, results of operations, financial condition and the value of our ADSs.***

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Our operations in mainland China are governed by PRC laws and regulations. Our mainland China subsidiaries are subject to laws and regulations applicable to foreign investment in mainland China. The PRC legal system is a civil law system based on written statutes. Unlike the common law system, prior court decisions under the civil law system may be cited for reference but have limited precedential value. Many laws, regulations and legal requirements are relatively new and may change from time to time. The PRC legal system is evolving quickly. The interpretation and enforcement of relevant laws and regulations are subject to change. New laws and regulations may be promulgated and existing laws and regulations, as well as the interpretation and enforcement thereof, may change quickly. In addition, any new or changes in PRC laws and regulations related to foreign investment in mainland China could affect the business environment and our ability to operate our business in mainland China.

From time to time, we may have to resort to administrative and court proceedings to enforce our legal rights. While this may also apply to other jurisdictions, administrative and court proceedings in mainland China may take a long time, resulting in substantial costs and diversion of resources and management attention. Since PRC administrative and court authorities retain discretion in interpreting and implementing statutory provisions and contractual terms like other jurisdictions do, it may be difficult to predict the outcome of administrative and court proceedings that we are involved in. These uncertainties may impede our ability to enforce the contracts we have entered into and could materially and adversely affect our business and results of operations.

***We may be required to complete filing procedures with the China Securities Regulatory Commission in connection with our future offerings. We cannot predict whether we will be able to complete such filing on a timely manner, or at all.***

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On July 6, 2021, the relevant PRC government authorities issued *Opinions on Strictly Cracking Down Illegal Securities Activities in Accordance with the Law*. These opinions emphasized the need to strengthen the administration over illegal securities activities and the supervision on overseas listings by China-based companies and proposed to take effective measures, such as promoting the construction of relevant regulatory systems to deal with the risks and incidents faced by China-based overseas-listed companies. We do not believe that any provision in these opinions had a material adverse impact on our business or offshore listing plan.

On February 17, 2023, the CSRC, as approved by the State Council, released the Filing Rules. The Filing Rules took effect on March 31, 2023, when the CSRC started to accept filing applications. Pursuant to the Filing Rules, PRC domestic enterprises that directly or indirectly offer or list their securities in an overseas market are required to file with the CSRC within three business days after submitting their listing application documents to the relevant regulator in the place of intended listing. Failure to complete such filing may subject a PRC domestic enterprise to an order of rectification, a warning or a fine between RMB1 million and RMB10 million. Pursuant to these regulations, a domestic enterprise applying for listing abroad shall, among others, complete record filing procedures and report relevant information to the securities regulatory authority as required. We completed the CSRC filing procedures in connection with our initial public offering.

Our future capital raising activities such as follow-on equity or debt offerings, listing on other stock exchanges and going private transactions, may also be subject to the filing requirement with the CSRC. Failure to complete such filing procedures as required under the Filing Rules, or a rescission of any such filings completed by us, would subject us to sanctions by the CSRC or other PRC regulatory authorities, which could include fines and penalties on our operations in mainland China, and other forms of sanctions that may materially and adversely affect our business, financial condition and results of operations.

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

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The conversion of Renminbi into other currencies, including U.S. dollars, is based on rates set by the People's Bank of China. The Renminbi has fluctuated against other currencies, at times significantly and unpredictably. The value of the Renminbi against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in global and geographical political and economic conditions and China's foreign exchange policies. 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.

Significant revaluation of the Renminbi may have a material and adverse effect on your investment. For example, to the extent that we need to convert Renminbi from our divestiture activities into U.S. dollars to fund our new digital asset business, appreciation of the Renminbi against the U.S. dollar would have an adverse effect on the U.S. dollar amount we would receive from the conversion. Conversely, if we decide to convert our Renminbi into U.S. dollars for the purpose of making payments for dividends on our Class A Ordinary Shares or ADSs or for 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.

Limited hedging options are available in China to reduce our exposure to exchange rate fluctuations. To date, we have not entered into any hedging transaction 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 Foreign exchange regulations that restrict our ability to convert Renminbi into foreign currency.

***China's M&A Rules and certain other PRC regulations establish complex procedures for certain acquisitions of PRC companies by foreign investors, which could make it more difficult for us to pursue growth through acquisitions in China.***

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A number of PRC laws and regulations have established procedures and requirements that could make merger and acquisition activities in China by foreign investors more time consuming and complex, such as the PRC Anti-monopoly Law, the *Rules on the Merger and Acquisition of Domestic Enterprises by Foreign Investors*, or the M&A Rules, the *Rules of the Ministry of Commerce on Implementation of Security Review System of Mergers and Acquisitions of Domestic Enterprises by Foreign Investors*, or the M&A Security Review Rules, and the *Measures for the Security Review of Foreign Investment*. These laws and regulations impose requirements in some instances that MOFCOM and the NDRC be notified in advance of any change-of-control transaction in which a foreign investor takes control of a PRC domestic enterprise. In addition, the Anti-Monopoly Law requires that MOFCOM be notified in advance of any concentration of undertaking if certain thresholds are triggered. The M&A Security Review Rules provide that mergers and acquisitions by foreign investors that raise "national defense and security" concerns and mergers and acquisitions through which foreign investors may acquire de facto control over domestic enterprises that raise "national security" concerns are subject to strict review by MOFCOM, and prohibit any attempt to bypass a security review, including by structuring the transaction through a proxy or contractual control arrangement. Moreover, the Measures for the Security Review of Foreign Investment provide that foreign investors or the relevant parties in China shall proactively report to the Office of the Working Mechanism any foreign investment in, among other sectors, important information technology and key technology that involve national security concerns and result in the foreign investor's acquisition of actual control of the enterprise invested in before making such investment. In the future, we may grow our business by acquiring complementary businesses. Complying with the applicable requirements of the relevant regulations to complete any future acquisitions that we may engage in could be time consuming, and any required approval processes, including approval from MOFCOM, may delay or inhibit our ability to complete such acquisitions, which could affect our ability to expand our business or maintain our market share.

***PRC regulations relating to offshore investment activities by PRC residents may limit our mainland China 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 law.***

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In July 2014, the State Administration of Foreign Exchange, or SAFE, promulgated the *Circular of the State Administration of Foreign Exchange 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 and also requires the foreign-invested enterprise that is established through round-trip investment to truthfully disclose its controller(s). 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 or beneficial owners who are PRC residents and may be applicable to any offshore acquisitions that we make in the future. In February 2015, SAFE promulgated the *Notice of the State Administration of Foreign Exchange on Further Simplifying and Improving Foreign Exchange Administration Policy on Direct Investment*, or SAFE Notice 13, effective since June 2015. Under SAFE Notice 13, applications for foreign exchange registration of inbound foreign direct investments and outbound overseas direct investments, including those required under SAFE Circular 37, should be registered with qualified banks instead of SAFE. The qualified banks examine the applications and accept registrations under the supervision of SAFE. Any failure or inability of the relevant shareholders or beneficial owners who are PRC residents to comply with the registration procedures set forth in these regulations, or any failure to disclose or misrepresentation of the controller(s) of the foreign-invested enterprise that is established through round-trip investment, may subject us to fines and legal sanctions, such as restrictions on our cross-border investment activities, on the ability of our PRC subsidiaries to distribute dividends and the proceeds from any reduction in capital, share transfer or liquidation to us.

We may not at all times be fully informed of the identities of all the PRC residents holding direct or indirect interest in our company, and we cannot provide any assurance that these PRC residents will comply with our request to make or obtain any applicable registrations or continually comply with all requirements under SAFE Circular 37 or other related rules. As a result, we cannot assure you that all of our shareholders or beneficial owners who are PRC residents or entities have complied with, and will in the future make or obtain any applicable registrations or approvals required by, SAFE regulations. Registration for the change in our round-trip invested entity might not be completed in a timely manner. Failure by our shareholders or beneficial owners to comply with SAFE regulations, or failure by us to amend the foreign exchange registrations of our PRC subsidiaries, could subject us to fines or legal sanctions, restrict our overseas or cross-border investment activities, limit our PRC subsidiaries' ability to make distributions or pay dividends or affect our ownership structure. As a result, our business operations and our ability to distribute profits to you could be materially and adversely affected.

***Increases in labor costs and enforcement of stricter labor laws and regulations in China may adversely affect our business and our financial condition.***

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As we wind down our legacy operations, China's overall economy and the average wage in China have increased in recent years and 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 for any remaining employees. Unless we are able to pass on these increased labor costs to those who pay for our products and services, our 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 pensions, housing provident fund, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to designated government agencies for the benefit of our employees. In order to efficiently administer the contribution of employment benefit plans of our employees in some cities, we engaged third-party agents to make the contribution for our employees. In addition, for some of our employees, we did not pay social insurance and housing provident fund in full. If the relevant competent government authority is of the view that we have underpaid social insurance and housing provident fund for our employees or the third-party agency arrangement does not satisfy the requirements under the relevant PRC laws and regulations, we may be required to pay the shortage of our contributions or subject to fines or other legal sanctions. If we are subject to full distribution, late fees or fines in relation to the underpaid employee benefits, our financial condition and results of operations may be adversely affected. Pursuant to the *PRC Labor Contract Law* and its implementation rules, employers are subject to stricter requirements in terms of signing labor contracts, minimum wages, paying remuneration, determining the term of employee's 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 *PRC Labor Contract Law* and its implementation rules may limit our ability to effect those changes in a cost-effective manner, which could adversely affect our business and results of operations.

In October 2010, the SCNPC promulgated the *PRC Social Insurance Law*, effective on July 1, 2011 and amended on December 29, 2018. On April 3, 1999, the State Council promulgated the *Regulations on the Administration of Housing Provident Funds*, which was amended on March 24, 2002 and March 24, 2019. Companies registered and operating in China are required under the Social Insurance Law and the Regulations on the Administration of Housing Provident Funds to apply for social insurance registration and housing provident fund deposit registration within 30 days of their establishment and to pay for their employees different social insurance including pension insurance, medical insurance, work-related injury insurance, unemployment insurance and maternity insurance to the extent required by law. As advised by our PRC legal counsel, (i) under the Regulations on Administration of Housing Provident Fund, (a) if we fail to complete housing provident fund registration before the prescribed deadlines, we may be subject to a fine ranging from RMB10,000 to RMB50,000; and (b) if we fail to pay housing provident fund contributions within the prescribed deadlines, we may be subject to an order by the relevant PRC authorities to make such payments; and (ii) according to the Social Insurance Law, (a) for outstanding social insurance fund contributions that we did not fully pay within the prescribed deadlines, the relevant PRC authorities may demand that we pay the outstanding social insurance contributions within a stipulated deadline and we may be liable for a late payment fee equal to 0.05% of the outstanding contribution amount for each day of delay; and (b) if we fail to make such payments, we may be liable to a fine of one to three times the outstanding contribution amount.

As the interpretation and implementation of labor-related laws and regulations are still evolving, we cannot assure you that our employment practices do not and will not violate labor-related laws and regulations in China, which may subject us to labor disputes or government investigations. We cannot assure you that we have complied or will be able to comply with all labor-related law and regulations including those relating to obligations to make social insurance payments and contribute to the housing provident funds. 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 will be adversely affected.

***We may rely on dividends and other distributions on equity paid by our mainland China subsidiaries to fund any cash and financing requirements we may have, and any limitation on the ability of our mainland China subsidiaries to make payments to us could have a material and adverse effect on our ability to conduct our business.***

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We are a Cayman Islands holding company and we may rely on dividends and other distributions on equity paid by our mainland China subsidiaries for our cash and financing requirements, including the funds necessary to pay dividends and other cash distributions to our shareholders and service any debt we may incur. If our existing mainland China subsidiaries or any newly formed ones incur debt on their own behalf in the future, the instruments governing their debt may restrict their ability to pay dividends to us. In addition, our mainland China subsidiaries, may pay dividends to us only out of its retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. Under PRC laws, each of our mainland China subsidiaries is required to set aside at least 10% of its after-tax profits each year, if any, to fund certain statutory reserve funds until such reserve funds reach 50% of their registered capital.

Our mainland China 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 mainland China subsidiaries to use their Renminbi revenue to pay dividends to us. For instance, when we repatriate funds to the PRC from overseas financing activities, we may be required to complete certain filing or approval procedures to transfer funds out of the PRC for purposes such as investment, acquisition, or other capital account activities. Failure to complete these procedures could negatively affect our ability to pursue overseas expansion. Additionally, we cannot assure that additional regulatory requirements governing the convertibility of RMB into foreign currencies will not be imposed in the future, such as due to foreign exchange policy adjustments in response to changes in global economic conditions. If we are unable to access sufficient foreign currencies to meet our needs, we may face challenges in paying dividends to shareholders in foreign currencies or funding our overseas expansion efforts. Any limitation on the ability of our mainland China 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 *EIT Law* and its implementation rules provide that a withholding tax rate of up to 10% will be applicable to dividends payable by PRC 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.

***There may be changes from time to time in the interpretation and enforcement of PRC laws and regulations and changes in policies, rules, and regulations in China, could limit the legal protections available to you and us.***

Our PRC subsidiaries are subject to various PRC laws, rules and regulations generally applicable to companies in China. The PRC legal system is based on written statutes. Unlike common law systems, it is a system in which legal cases have limited value as precedents. In the late 1970s, the PRC government began to promulgate a comprehensive system of laws and regulations governing economic matters in general. The overall effect of legislation over the past four decades has significantly increased the protections afforded to various forms of foreign or private-sector investment in China.

As relevant laws and regulations are relatively new and the PRC legal system continues to rapidly evolve, the interpretations and enforcement of many laws, regulations and rules are always subject to change. As a result, under certain circumstances, it may be difficult to determine what actions or omissions may be deemed to be in violation of applicable laws and regulations. For example, on December 29, 2023, the Standing Committee of the National People's Congress promulgated the amended PRC Company Law, which came into effect on July 1, 2024 and supersede the existing PRC Company Law. The amended PRC Company Law provides stricter requirements on capital contribution of a company established in the PRC. According to the amended PRC Company Law, we may be required to fulfill the obligations of capital contribution to our PRC subsidiaries within a much shorter period than the currently effective period. However, since the amended PRC Company Law is still relatively new, there is still uncertainty regarding the implementation and interpretation of the amended PRC Company Law.

From time to time, we may have to resort to administrative and court proceedings to enforce our legal rights. However, since PRC administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and court proceedings. Furthermore, the PRC legal system is based in part on government policies and internal rules (some of which are not published in a timely manner or at all) that 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, and any failure to respond to changes in the regulatory environment in China could materially and adversely affect our business, impede our ability to continue our operations and reduce the value of your investment in our company.

Such uncertainties, including the promulgation of new laws, or changes to existing laws or the interpretation or enforcement thereof, could limit the legal protections available to us and our investors, including you.

***In light of recent events indicating greater oversight by the Cyberspace Administration of China over cybersecurity, particularly for companies seeking to list on a foreign exchange, we may be subject to a variety of PRC laws and other obligations regarding cybersecurity, data protection and any other rules, and any failure to comply with applicable laws and obligations could have a material and adverse effect on our business.***

The Chinese government has recently indicated an intent to exert oversight and control over overseas securities offerings and other capital markets activities and foreign investment in mainland China-based companies like us. 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 Strictly Scrutinizing Illegal Securities Activities in Accordance with the Law, 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.

On November 14, 2021, the Cyberspace Administration of China, or the CAC, released the Network Internet Data Protection Draft Regulations (draft for comments), which reiterates that data processors refer to individuals or organizations that autonomously determine the purpose and the manner of processing data. 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.

On December 28, 2021, the Measures for Cybersecurity Review (2021 version) was promulgated and became effective on February 15, 2022, and replaced the previous version published on April 13, 2020. According to the Measures for Cybersecurity Review (2021 version), critical information infrastructure operators, or CIIOs, that purchase network products and services, and network platform operators engaging in data processing activities that affect or may affect national security are subject to cybersecurity review. In addition, the relevant regulatory authorities are still entitled to impose security reviews on network products and services that are deemed capable of affecting national security. The network platform operators who possess personal information of more than one million users and intend to be listed at a foreign stock exchange must be subject to the cybersecurity review. CIIOs and network platform operators may voluntarily file for a cybersecurity review with CAC prior to purchasing network products and services if they deem their behavior affects or may affect national security based on self-assessment and self-evaluation. Notwithstanding the voluntary filing, the relevant authorities are entitled to initiate cybersecurity reviews accordingly. We believe that we were not subject to the cybersecurity review in connection with our listing and previous issuance of securities to foreign investors since (i) as companies that engaged in the research and development, production and sales of vehicles, including EVs, we and our subsidiaries are unlikely to be classified as CIIOs under the PRC Cybersecurity Law and the Security Protection Measures on Critical Information Infrastructure promulgated by the State Council on July 30, 2021; and (ii) we and our subsidiaries possess personal information of less than one million users. In addition, although we have not received any regulatory notice that identifies us as a CIIO from any PRC governmental authority, we cannot rule out the possibility that we, or certain of our customers or suppliers, may be deemed as a CIIO. If we are deemed as a CIIO, our purchases of network products or services, if deemed to be affecting or may affect national security, will need to be subject to a cybersecurity review, before we can enter into agreements with relevant customers or suppliers, and before the conclusion of such procedures, these customers will not be allowed to use our offerings or services, and we are not allowed to purchase products or services from our suppliers. As there remains significant uncertainty in the interpretation and enforcement of relevant PRC cybersecurity laws and regulations, we could be subject to cybersecurity review, and if so, we may not be able to pass such review. Any failure or delay in the completion of the cybersecurity review procedures or any other non-compliance with the related laws and regulations may result in fines or other penalties, including suspension of business, website closure, and revocation of prerequisite licenses, as well as reputational damage or legal proceedings or actions against us, which may have material adverse effect on our business, financial condition or results of operations. As of the date of this annual report, we have not been involved in any investigations on cybersecurity review initiated by the CAC or related governmental regulatory authorities, and we have not received any inquiry, notice, warning, or sanction in such respect.

The PRC government authorities also further enhanced the supervision and regulation of cross-border data transmission. On July 7, 2022, the CAC issued the Measures for Security Assessment of Cross-border Data Transfers, which took effect on September 1, 2022. Such measures stipulate that data processors who provide overseas the important data collected and generated during operations within the PRC and personal information that shall be subject to security assessment shall conduct a security assessment. On March 22, 2024, the CAC issued Provisions on Facilitating and Regulating Cross-border Data Flows, which provided that data handlers shall identify and declare important data in accordance with relevant rules. In accordance with these provisions, data handlers who provide data abroad, and meet any of the following conditions, are required to declare the outbound data transfer the security assessment to the national cyberspace administration authority through the provincial-level cyberspace administration authority where the data handlers are located: (i) critical information infrastructure operators providing personal information or important data abroad; (ii) data handlers other than critical information infrastructure operator providing important data abroad or cumulatively providing abroad personal information without any sensitive personal information of more than one million individuals or sensitive personal information of more than 10,000 individuals since January 1 of the current year. The assessment results of the data export are valid for three years. In addition, these provisions provide certain exemptions from obligations under the circumstances of cross-border data transfer, including, among others, the obligations for declaring data security assessment, concluding a standard contract for provisions of personal information abroad or passing the certification for personal information protection. As of the date of this annual report, such measures have not materially affected our business or results of operations.

On February 24, 2023, the CSRC, together with other PRC government authorities, released the Provisions on Strengthening the Confidentiality and Archives Administration Related to the Overseas Securities Offering and Listing by Domestic Enterprises (the "***Confidentiality and Archives Administration Provisions***"), which have come into effect on March 31, 2023. The Confidentiality and Archives Administration Provisions require, among others, that PRC domestic enterprises seeking to offer and list securities in overseas markets, either directly or indirectly, shall establish the confidentiality and archives system, and shall complete approval and filing procedures with competent authorities, if such PRC domestic enterprises or their overseas listing entities provide or publicly disclose documents or materials involving state secrets and work secrets of PRC government agencies to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals. It further stipulates that providing or publicly disclosing documents and materials which may adversely affect national security or public interests, and accounting files shall be subject to corresponding procedures in accordance with relevant laws and regulations. We believe that we and our subsidiaries have not and will not provide or publicly disclose documents or materials involving state secrets or work secrets of PRC government agencies or which may adversely affect national security or public interests, to relevant securities companies, securities service institutions, overseas regulatory agencies and other entities and individuals. Any failure or perceived failure by us or our subsidiaries to comply with the above confidentiality and archives administration requirements under the Confidentiality and Archives Administration Provisions and other PRC laws and regulations may result in that the relevant entities would be held legally liable by competent authorities, and referred to the judicial organ to be investigated for criminal liability if suspected of committing a crime. We cannot assure you, however, that regulators in China will not take a contrary view or will not subsequently require us to undergo the cybersecurity review and subject us to penalties for non-compliance.

As of the date of this annual report, we believe we are in compliance with the regulations or policies that have been issued by the CAC to date in general, with the other subsidiaries in China are not subject to any penalties, fines, suspensions, investigations from any competent authorities for violation of the existing regulations or policies that have been issued by the CAC. There remains uncertainty, however, as to how the regulations or policies issued by the CAC will be interpreted or implemented and whether the CAC may adopt new laws, regulations, rules, or detailed implementation and interpretation. If any such new laws, regulations, rules, or implementation and interpretation come into effect, we will take all reasonable measures and actions to comply and to minimize the adverse effect of such laws on us. Any inability to adequately address cybersecurity and data protection concerns, even if unfounded, or failure to comply with such standards, could result in inquiries and other proceedings or actions against us by governmental authorities, users, consumers or others, such as warnings, fines, penalties, required rectifications and/or other sanctions, as well as negative publicity and damage to our reputation, which could have an adverse effect on our business and results of operations.

Furthermore, the PRC government authorities may strengthen oversight and control over offerings that are conducted overseas and/or foreign investment in China-based issuers like us. Such actions taken by the PRC government authorities may influence our operations at any time, which are beyond our control. Therefore, any such action may adversely affect our operations and significantly limit or hinder our ability to offer or continue to offer securities to you and cause our securities to significantly decline in value or become worthless.

***Changes in the political and economic policies of the PRC government or in relations between China and the United States may materially and adversely affect our business, financial condition and results of operations and may result in our inability to sustain our growth and expansion strategies.***

Substantially all of our operations are conducted in the PRC and substantially all of our revenues are sourced from the PRC. Accordingly, our financial condition and results of operations are affected to a significant extent by economic, political and legal developments in the PRC or changes in government relations between China and the United States or other governments. There is uncertainty about the future relationship between the United States and China with respect to trade policies, treaties, government regulations and tariffs.

The Chinese economy, political and social conditions differ from those of many other jurisdictions. Over the past decades, the Chinese government has taken various measures to promote the market economy and encourage entities to establish sound corporate governance. The PRC government has also implemented certain measures in the past, including interest rate adjustment, aiming at sustaining the pace of economic growth. Any such development may cause decreased economic activity and affect the overall economic growth, and may adversely affect our business and operating results, leading to reduction in demand for our services and adversely affect our competitive position. We currently enjoy preferential local governmental policies, which contain eligibility requirements. We cannot guarantee that we will be able to successfully renew our preferential treatment in the future.

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

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Under the applicable regulations and SAFE rules, PRC citizens who participate in an employee stock ownership plan or a stock option plan in an overseas publicly listed company are required to register with SAFE or its local branches and complete certain other procedures. Pursuant to the rules related to stock options by SAFE, participants in a stock incentive plan who are PRC residents must retain a qualified PRC domestic agent, which could be a PRC subsidiary of the overseas publicly listed company or another qualified institution selected by the PRC subsidiary. Such qualified PRC domestic agent must, among other things, file on behalf of such participant an application with SAFE to conduct the SAFE registration with respect to such stock incentive plan and obtain approval for an annual allowance with respect to the purchase of foreign exchange in connection with the exercise or sale of stock options or stock such participant holds. Such participating PRC residents' foreign exchange income received from the sale of stock and dividends distributed by the overseas publicly listed company must be fully remitted into a PRC collective foreign currency account opened and managed by the PRC agent before distribution to such participants. In addition, the PRC domestic agent is required to amend the SAFE registration with respect to the stock incentive plan if there is any material change to the stock incentive plan or the PRC domestic agent or any other material changes. We and our PRC resident employees who have been granted stock options or other share-based incentives of ours will be subject to these rules. If we or our PRC resident participants fail to comply with these regulations, we and/or our PRC resident participants may be subject to fines and legal sanctions. In addition, China's State Administration of Taxation ("SAT") has issued certain circulars concerning employee share options and restricted shares. Under these circulars, our employees working in China who exercise share options and/or are granted restricted shares in the future will be subject to PRC individual income tax. Our PRC subsidiaries have obligations to file documents related to employee share options and/or restricted shares with tax authorities and to withhold individual income taxes of those employees who exercise their share options. If our employees fail to pay or we fail to withhold their income taxes according to laws and regulations, we may face sanctions imposed by the tax authorities or other PRC government authorities.

***PRC regulation on loans to, and direct investment in, our PRC subsidiaries by offshore holding companies and governmental control in currency conversion may delay or prevent us from funding the wind-down or divestiture of our legacy Chinese operations, or from repatriating funds, which could materially and adversely affect our liquidity and our transition to our digital asset strategy.***

Digital Currency X Technology Inc. is an exempted company incorporated in the Cayman Islands structured as a holding company that historically conducted its vehicle manufacturing operations in China through its PRC subsidiaries. As we execute the planned divestiture of our legacy electric vehicle subsidiary, Chijet Inc., for $1, we may still need to make loans or additional capital contributions to our PRC subsidiaries to settle historical liabilities, satisfy restructuring closing conditions, or manage wind-down operations. As permitted under PRC laws and regulations, we may make loans to our PRC subsidiaries subject to the approval from governmental authorities and limitation of amount, or we may make additional capital contributions. Furthermore, loans by us to our PRC subsidiaries to finance these transition activities cannot exceed the statutory limits and are subject to the requirement of making necessary filings in the Foreign Investment Comprehensive Management Information System and registration with other governmental authorities in China.

The SAFE promulgated the Notice of the State Administration of Foreign Exchange on Reforming the Administration of Foreign Exchange Settlement of Capital of Foreign-invested Enterprises ("***SAFE Circular 19***"), effective on June 1, 2015 and last amended on March 23, 2023, which regulates the flow and use of the RMB capital converted from foreign currency-denominated registered capital of a foreign-invested company such that RMB capital may not be used for the issuance of RMB entrusted loans, the repayment of inter-enterprise loans or the repayment of bank loans that have been transferred to a third party. Although SAFE Circular 19 allows RMB capital to be used for equity investments within the PRC, it reiterates the principle that RMB converted from the foreign currency-denominated capital may not be directly or indirectly used for purposes beyond its business scope. Crucially, because our new strategic focus is centered entirely on digital asset treasury management, activities that are categorically banned in mainland China, we are completely prohibited from using any converted RMB capital to fund our new business scope within the PRC.

The SAFE also promulgated the Notice of the State Administration of Foreign Exchange on Reforming and Standardizing the Foreign Exchange Settlement Management Policy of Capital Account ("***SAFE Circular 16***"), effective on June 9, 2016 and last amended on December 4, 2023, which reiterates some of the rules set forth in SAFE Circular 19, but changes the prohibition against using RMB capital converted from foreign currency-denominated registered capital to issue RMB entrusted loans to a prohibition against using such capital to grant loans to non-associated enterprises. Violations of SAFE Circular 19 and SAFE Circular 16 could result in strict administrative penalties. SAFE Circular 19, SAFE Circular 16, and the related SAFE Circular 28, may significantly limit our ability to transfer any foreign currency we hold to our PRC subsidiaries to facilitate our corporate restructuring, which may adversely affect our liquidity and our ability to cleanly sever our mainland footprint.

In light of the various requirements imposed by PRC regulations on loans to, and direct investment in, the PRC subsidiaries by offshore holding companies, and the fact that the PRC government may at its discretion restrict access to foreign currencies for current account transactions or capital repatriation in the future, 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 or capital contributions required to execute our divestiture. If we fail to complete such registrations or obtain such approvals, our ability to successfully conclude our strategic pivot, settle legacy mainland liabilities, or repatriate any residual value to capitalize our borderless digital asset treasury may be negatively affected, which could materially and adversely affect our overall liquidity and the viability of our new operational focus.

***Under the PRC Enterprise Income Tax Law, we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC enterprise shareholders and has a material adverse effect on our results of operations and the value of your investment.***

Under the PRC Enterprise Income Tax Law ("***EIT Law***"), that became effective in January 2008 and was amended in February 2017 and December 2018, as well as its implementing rules, an enterprise established outside the PRC with "de facto management bodies" within the PRC is considered a "resident enterprise" for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise income tax rate on its worldwide income. Under the implementation rules to the EIT Law, a "de facto management body" is defined as a body that has material and overall management and control over the manufacturing and business operations, personnel and human resources, finances and properties of an enterprise. In addition, a circular, known as SAT Circular 82, issued in April 2009 by the State Administration of Taxation (the "***SAT***"), specifies that certain offshore incorporated enterprises controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if the following are located or resident in the PRC: senior management personnel and departments that are responsible for daily production, operation and management; financial and personnel decision making bodies; key properties, accounting books, company seal, and minutes of board meetings and shareholders' meetings; and half or more of the senior management or directors having voting rights. Further to SAT Circular 82, the SAT issued a bulletin, known as SAT Bulletin 45, which took effect in September 2011, to provide more guidance on the implementation of SAT Circular 82 and clarify the reporting and filing obligations of such "Chinese-controlled offshore incorporated resident enterprises." SAT Bulletin 45 provides procedures and administrative details for the determination of resident status and administration on post-determination matters. Although both SAT Circular 82 and SAT Bulletin 45 only apply to offshore enterprises controlled by PRC enterprises or PRC enterprise groups, not those controlled by PRC individuals or foreign individuals, the determining criteria set forth in SAT Circular 82 and SAT Bulletin 45 may reflect the SAT's general position on how the "de facto management body" test should be applied in determining the tax resident status of offshore enterprises, regardless of whether they are controlled by PRC enterprises, PRC enterprise groups or by PRC or foreign individuals.

We do not believe that we, as an exempted company incorporated in the Cayman Islands, meets all of these conditions to be classified as a PRC resident enterprise following the planned divestiture of our legacy Chinese vehicle subsidiary. However, because certain members of our executive management team and administrative personnel may historically or currently reside in or maintain significant ties to mainland China during our transition, the PRC tax authorities could determine that our "de facto management body" remains in the PRC. If the PRC tax authorities determine that we are a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. First, we will be subject to the uniform 25% enterprise income tax on our world-wide income, which could materially reduce our net income. In addition, we will also be subject to PRC enterprise income tax reporting obligations. 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."

Finally, since there remain uncertainties regarding the interpretation and implementation of the EIT Law and its implementation rules, it is uncertain whether, if we are regarded as a PRC resident enterprise, any dividends payable by us to our investors and gains on the sale of our shares would become subject to PRC withholding tax, at a rate of 10% in the case of non-PRC enterprises or 20% in the case of non-PRC individuals (subject to the provisions of any applicable tax treaty). It is unclear whether non-PRC shareholders of our company would be able to claim the benefits of any tax treaties between their country of tax residence and the PRC in the event that we are treated as a PRC resident enterprise. Any such tax may reduce the returns on your investment in our ordinary shares.

***There are significant uncertainties under the EIT Law relating to the withholding tax liabilities of our legacy PRC subsidiaries, and any dividends or liquidation distributions payable by our PRC subsidiaries to our offshore holding companies during our divestiture process may not qualify for certain treaty benefits.***

Digital Currency X Technology Inc. is an exempted company incorporated in the Cayman Islands with limited liability structured as a holding company. As we execute the divestiture and wind-down of our legacy Chinese vehicle operations, we may still need dividends, liquidation proceeds, or other distributions on equity from our historical PRC subsidiaries to satisfy our immediate liquidity requirements and fund our transition to a global digital asset treasury strategy.

Pursuant to the EIT Law, a withholding tax rate of 10% currently applies to dividends paid by a PRC "resident enterprise" to a foreign enterprise investor, unless any such foreign investor's jurisdiction of incorporation has a tax treaty with China that provides for preferential tax treatment. Pursuant to a special arrangement between Hong Kong and China, such rate may be reduced to 5% if a Hong Kong resident enterprise owns more than 25% of the equity interest in the PRC company. Our legacy PRC entities are wholly owned by our offshore intermediate holding companies, and accordingly, these intermediate holding companies may qualify for a 5% tax rate in respect of distributions from the PRC subsidiaries when they are not obligated to pay more than 50% of the income in twelve months to residents in a third country or region. Under the Notice of the State Administration of Taxation on Issues regarding the Administration of the Dividend Provision in Tax Treaties promulgated on February 20, 2009, the taxpayer needs to satisfy certain conditions to utilize the benefits under a tax treaty. These conditions include: (1) the taxpayer must be the beneficial owner of the relevant dividends, and (2) the corporate shareholder to receive dividends from the PRC subsidiary must have continuously met the direct ownership thresholds during the 12 consecutive months preceding the receipt of the dividends. Further, under Announcement of the State Administration of Taxation on Issues Relating to "Beneficial Owner" in Tax Treaties, which took effect on April 1, 2018, a "Beneficial Owner" shall mean a person who has ownership and control over the income and the rights and property from which the income is derived. To determine the "beneficial owner" status of a resident of the treaty counterparty who needs to take advantage of the tax treaty benefits, a comprehensive analysis shall be carried out, taking into account actual conditions of the specific case.

Entitlement to a lower tax rate on dividends according to tax treaties or arrangements between the PRC central government and governments of other countries or regions is subject to the Announcement of State Taxation Administration on Promulgation of the Administrative Measures on Non-resident Taxpayers Enjoying Treaty Benefits ("***Circular 35***"). Circular 35 provides that non-resident enterprises are not required to obtain pre-approval from the relevant tax authority in order to enjoy the reduced withholding tax. Instead, non-resident enterprises and their withholding agents may, by self-assessment and on confirmation that the prescribed criteria to enjoy the tax treaty benefits are met, directly apply the reduced withholding tax rate, and file necessary forms and supporting documents when performing tax filings, which will be subject to post-tax filing examinations by the relevant tax authorities. Given the heightened regulatory scrutiny surrounding cross-border capital flows and our explicit strategic pivot toward strictly prohibited digital asset activities, we cannot assure you that our determination regarding our qualification to enjoy the preferential tax treatment during our corporate restructuring will not be aggressively challenged by the relevant PRC tax authority, or that we will be entitled to any preferential withholding tax rate under tax treaties for dividends or liquidation proceeds received from our legacy mainland subsidiaries.

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***Enhanced scrutiny over acquisition transactions by the PRC tax authorities may have a negative impact on potential acquisitions we may pursue in the future.***

Pursuant to the Notice on Strengthening Administration of Enterprise Income Tax for Share Transfers by Non-PRC Resident Enterprises ("***SAT Circular 698***") issued by the SAT on December 10, 2009, where a foreign investor transfers the equity interests of a resident enterprise indirectly via disposition of the equity interests of an overseas holding company, or an "indirect transfer," and such overseas holding company is located in a tax jurisdiction that (i) has an effective tax rate less than 12.5% or (ii) does not tax foreign income of its residents, the foreign investor shall report the indirect transfer to the competent tax authority. The PRC tax authority will examine the true nature of the indirect transfer, and if the tax authority considers that the foreign investor has adopted an "abusive arrangement" in order to avoid PRC tax, it may disregard the existence of the overseas holding company and re-characterize the indirect transfer.

On February 3, 2015, the SAT issued the Announcement of the State Administration of Taxation on Several Issues Concerning the Enterprise Income Tax on Indirect Property Transfer by Non-Resident Enterprises ("***SAT Bulletin 7***"), to supersede existing provisions in relation to the "indirect transfer" as set forth in SAT Circular 698, while the other provisions of SAT Circular 698 remain in force. Pursuant to SAT Bulletin 7, where a non-resident enterprise indirectly transfers properties such as equity in PRC resident enterprises without any justifiable business purposes and aiming to avoid the payment of enterprise income tax, such indirect transfer must be reclassified as a direct transfer of equity in PRC resident enterprises. To assess whether an indirect transfer of PRC taxable properties has reasonable commercial purposes, all arrangements related to the indirect transfer must be considered comprehensively and factors set forth in SAT Bulletin 7 must be comprehensively analyzed in light of the actual circumstances. SAT Bulletin 7 also provides that, where a non-PRC resident enterprise transfers its equity interests in a resident enterprise to its related parties at a price lower than the fair market value, the competent tax authority has the power to make a reasonable adjustment to the taxable income of the transaction.

On October 17, 2017, the SAT issued the Announcement of the State Administration of Taxation on Matters Concerning Withholding of Income Tax of Non-resident Enterprises as Source ("***SAT Bulletin 37***"), which repealed the entire SAT Circular 698 and the provision in relation to the time limit for the withholding agent to declare to the competent tax authority for payment of such tax of SAT Bulletin 7. Pursuant to SAT Bulletin 37, the income from a property transfer, as stipulated in the second item under Article 19 of the EIT Law, shall include the income derived from transferring such equity investment assets as stock equity. The balance of deducting the equity's net value from the total income from equity transfer shall be taxable income from equity transfer. Where a withholding agent enters into a business contract, involving the income specified in the third paragraph of Article 3 in the EIT Law, with a non-resident enterprise, the tax-excluding income of the non-resident enterprise will be treated as the tax-including income, based on which the tax payment will be calculated and remitted, if it is agreed in the contract that the withholding agent shall assume the tax payable.

We face uncertainties as to the reporting and other implications of certain past and future transactions where PRC taxable assets are involved, such as offshore restructuring, sale of the shares in our offshore subsidiaries or investments. Our Company may be subject to filing obligations or taxed or subject to withholding obligations in such transactions, under SAT Bulletin 7 and SAT Bulletin 37. It is possible that we or our non-PRC resident investors may become at risk of being taxed under SAT Bulletin 7 and SAT Bulletin 37 and may be required to expend valuable resources to comply with SAT Bulletin 7 and SAT Bulletin 37 or to establish that we or our non-PRC resident investors should not be taxed under SAT Bulletin 7 and SAT Bulletin 37, which may have an adverse effect on our financial condition and results of operations or such non-PRC resident investors' investment in us.

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***Dividends payable to our foreign investors and gains on the sale of our Ordinary Shares by our foreign investors may be subject to PRC tax.***

Under the EIT Law and its implementation regulations issued by the State Council, a 10% PRC withholding tax is applicable to dividends payable to investors that are non-resident enterprises, which do not have an establishment or place of business in the PRC or which have such establishment or place of business but the dividends are not effectively connected with such establishment or place of business, to the extent such dividends are derived from sources within the PRC. Any gain realized on the transfer of Ordinary Shares by such investors is also subject to PRC tax at a current rate of 10% which in the case of dividends will be withheld at source if such gain is regarded as income derived from sources within the PRC. If we are deemed a PRC resident enterprise, dividends paid on our Ordinary Shares, and any gain realized from the transfer of our Ordinary Shares, may be treated as income derived from sources within the PRC and may as a result be subject to PRC taxation. See *"Regulation - Regulations Relating to Taxation.*" Furthermore, if we are deemed a PRC resident enterprise, dividends payable to individual investors who are non-PRC residents and any gain realized on the transfer of Ordinary Shares by such investors may be subject to PRC tax at a current rate of 20%. Any PRC tax liability may be reduced under applicable tax treaties. However, it is unclear whether holders of our Ordinary Shares would be able to claim the benefit of income tax treaties or agreements entered into between China and other countries or areas if we are considered a PRC resident enterprise. If dividends payable to our non-PRC investors, or gains from the transfer of our Ordinary Shares by such investors are subject to PRC tax, the value of your investment in our Ordinary Shares may decline significantly.

***We may rely on dividends, liquidation proceeds, and other distributions on equity paid by our legacy PRC subsidiaries to fund any cash and financing requirements we may have during our corporate transition, and the PRC subsidiaries' restrictions on paying dividends or making other payments to us could restrict our ability to satisfy our liquidity requirements and have a material and adverse effect on our ability to execute our digital asset strategy.***

We are an exempted company incorporated in the Cayman Islands with limited liability structured as a holding company. As we execute the divestiture of our legacy vehicle operations, we may need dividends, liquidation distributions, and other returns on equity from our historical PRC subsidiaries to satisfy our immediate liquidity requirements, including the critical fiat funds necessary to capitalize our new global digital asset treasury, pay dividends to shareholders, and service any debt we may incur during this strategic pivot. Historically, our PRC subsidiaries generated and retained cash from legacy operating activities and re-invested it in our mainland business. Current PRC regulations permit our PRC subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with PRC accounting standards and regulations. In addition, our PRC subsidiaries are required to set aside at least 10% of their accumulated profits each year, if any, to fund certain statutory reserve funds until the total amount set aside reaches 50% of their registered capital. Our PRC subsidiaries may also allocate a portion of their after-tax profits based on PRC accounting standards to employee welfare and bonus funds at their discretion, which may be heavily utilized during severance or wind-down operations. These statutory reserves are not distributable as cash dividends. Furthermore, if our PRC subsidiaries incur debt on their own behalf or hold legacy debt obligations, the instruments governing such debt may strictly restrict their ability to pay dividends or make other payments to us to facilitate our corporate restructuring. Any limitation on the ability of our legacy PRC subsidiaries to distribute dividends, remit divestiture proceeds, or make payments to us may severely restrict our ability to satisfy our transition liquidity requirements.

In addition, the PRC government may further strengthen its already stringent capital controls, and more severe restrictions and substantial vetting processes may be put forward by SAFE for cross-border transactions falling under both the current account and the capital account. Given that the ultimate purpose of repatriating these onshore funds is to finance a decentralized cryptocurrency treasury, activities that are strictly and categorically prohibited under mainland Chinese law, we anticipate extreme regulatory friction in clearing these cross-border transfers. Any limitation on the ability of our PRC subsidiaries to pay dividends, remit liquidation proceeds, or make other kinds of payments to us could materially and adversely limit our ability to successfully conclude our strategic pivot, make critical Web3 investments or infrastructure acquisitions that could be beneficial to our new business, or otherwise fund and conduct our decentralized operations globally.

***Fluctuations in exchange rates could result in foreign currency exchange losses to us and may reduce the value of, and amount in U.S. Dollars of dividends payable on, our shares in foreign currency terms and could impact our gross profit and gross margin.***

The value of the RMB and the Hong Kong dollar against the U.S. dollar and other currencies may fluctuate and is affected by, among other things, changes in political and economic conditions and the foreign exchange policy adopted by the PRC government. In August 2015, the PBOC, changed the way it calculates the mid-point price of RMB against the U.S. dollar, requiring the market-makers who submit for reference rates to consider the previous day's closing spot rate, foreign-exchange demand and supply as well as changes in major currency rates. It is difficult to predict how market forces or PRC or U.S. government policy, including any interest rate increases by the Federal Reserve, may impact the exchange rate between the RMB and the U.S. dollar in the future. There remains significant international pressure on the PRC government to adopt a more flexible currency policy, including from the U.S. government, which has threatened to label China as a "currency manipulator," which could result in greater fluctuation of the RMB against the U.S. dollar. However, the PRC government may still at its discretion restrict access to foreign currencies for current account transactions in the future. Therefore, it is difficult to predict how market forces or government policies may impact the exchange rate between the RMB and the U.S. dollar or other currencies in the future. In addition, the PBOC may take measures in the foreign exchange market to limit fluctuations in RMB exchange rates and achieve policy goals. If the exchange rate between RMB and U.S. dollar fluctuates in unanticipated manners, our results of operations and financial condition, and the value of, and dividends payable on, our shares in foreign currency terms may be adversely affected. We may not be able to pay dividends in foreign currencies to our shareholders. Appreciation of RMB to U.S. dollar will result in foreign currency translation gain, while depreciation of RMB to U.S. dollar will result in foreign currency translation loss.

***Restrictions on currency exchange may limit our ability to utilize our revenues effectively.***

All of our revenues are denominated in Renminbi. The Renminbi is currently convertible under the "current account," which includes dividends, trade and service-related foreign exchange transactions, but not under the "capital account," which includes foreign direct investment and loans, including loans we may secure from our onshore subsidiaries. Currently, our WFOE may purchase foreign currency for settlement of "current account transactions," including payment of dividends to us, without the approval of SAFE by complying with certain procedural requirements. However, the relevant PRC governmental authorities may limit or eliminate our ability to purchase foreign currencies in the future for current account transactions. Since we expect a significant portion of our future revenue will be denominated in Renminbi, any existing and future restrictions on currency exchange may limit our ability to utilize revenue generated in Renminbi to fund our business activities outside of the PRC or pay dividends in foreign currencies to our shareholders. Foreign exchange transactions under the capital account remain subject to limitations and require approvals from, or registration with, SAFE and other relevant PRC governmental authorities. This could affect our ability to obtain foreign currency through debt or equity financing for our subsidiaries.

***To the extent cash or assets in our business are in the PRC or Hong Kong or a PRC or Hong Kong entity, the funds or assets may not be available to fund our new digital asset operations or for other use outside of the PRC or Hong Kong due to interventions in or the imposition of restrictions and limitations on the ability of our company and our subsidiaries by the PRC government to transfer cash or assets, which may materially and adversely affect our business, financial condition, and results of operations and may result in our inability to sustain our strategic pivot and decentralized treasury strategies.***

We are an offshore holding company with no material operations of its own and historically conducted substantially all of its legacy vehicle operations through its PRC subsidiaries. As of the date of this annual report, as we navigate the divestiture of our legacy business, a significant portion of our fiat cash and historical assets remain located in the PRC. As a holding company, we may rely on dividends, liquidation distributions, and other returns on equity paid by our legacy PRC subsidiaries for our immediate cash and transition financing requirements. If our PRC subsidiaries incur debt on their own behalf in the future or hold legacy debt obligations, the instruments governing such debt may strictly restrict their ability to pay dividends or remit proceeds to us. We are in the process of adopting our formal Web3 cash and digital asset management policies which will dictate the purpose, amount, and cryptographic security procedures of fiat and digital asset transfers among our holding company and global subsidiaries. Historically, one PRC operating entity provided financial support for other entities' operations by inter-company loans and we have not experienced difficulties or limitations on our ability to transfer fiat cash between mainland subsidiaries. Among our holding company and its subsidiaries, fiat cash is transferred as needed in the form of capital contributions or working capital loans to the PRC subsidiaries, as we are permitted under PRC laws and regulations to provide funding to our PRC subsidiaries only through loans or capital contributions, and only if we satisfy the applicable government registration and approval requirements. We believe that there is currently no restriction 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 the transfer of funds involving money laundering and criminal activities—a regulatory threshold that invites exceptionally high scrutiny for enterprises transitioning into the digital asset sector. Crucially, to the extent cash or assets in our business are trapped in the PRC or Hong Kong or a PRC or Hong Kong entity, these funds or assets may not be available to fund our decentralized treasury operations or for other use outside of the PRC or Hong Kong due to sudden interventions in or the imposition of stringent restrictions and limitations on the ability of our company and our subsidiaries by the PRC government to transfer cash or assets cross-border, particularly given the PRC's sweeping administrative bans on capital flows associated with cryptocurrency activities. As of the date of this annual report, no transfers, dividends, or other distributions of fiat or digital assets have been made to date from our subsidiaries to our holding company in connection with our new strategic focus, nor have we or any of our subsidiaries ever paid dividends or made distributions to U.S. investors to date.

The PRC government imposes strict controls on the convertibility of the Renminbi into foreign currencies and, in certain cases, the remittance of currency out of China. If the foreign exchange control system prevents us from obtaining sufficient foreign currencies to satisfy our foreign currency demands during the wind-down and divestiture of our legacy business, we may not be able to transfer cash out of China, repatriate liquidation proceeds, or pay dividends in foreign currencies to our global shareholders. Therefore, to the extent legacy fiat cash or historical assets in our business remain trapped in the PRC or Hong Kong or a PRC or Hong Kong entity, these funds or assets may not be available to capitalize our new global digital asset treasury, fund our decentralized finance operations, or be utilized for other uses outside of the PRC or Hong Kong. This is due to sudden interventions in or the imposition of severe restrictions and limitations on the ability of our company and our subsidiaries by the PRC government to transfer cash or assets cross-border. This risk is profoundly magnified by the fact that the ultimate destination of these repatriated funds is to finance a decentralized cryptocurrency ecosystem, a purpose that directly contravenes the PRC's sweeping national bans on digital asset activities and capital flows associated with virtual currencies. Such capital controls and restrictions may materially and adversely affect our transition liquidity, business, financial condition, and results of operations, and may result in our inability to successfully complete our strategic pivot or sustain our decentralized expansion strategies.

Notwithstanding the foregoing, there can be no assurance that the PRC government will not impose even more stringent restrictions in the future on our ability to transfer or distribute cash within our legacy PRC subsidiaries or to remit divestiture funds to foreign investors, which could result in an absolute inability or strict legal prohibition on making transfers or distributions outside of China and may fatally undermine our ability to finance our ongoing Web3 operations.

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

Digital Currency X is an exempted company incorporated under the laws of the Cayman Islands. We historically conducted substantially all of our production and sales in China, and substantially all of our assets are located in China. In addition, our executive officers and certain directors are PRC nationals and reside within China for a significant portion of the time. The PRC does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the United States, the United Kingdom, Japan and many other jurisdictions. As a result, it may not be possible for investors to serve process upon us or those persons in China, or to enforce against us or them in China, any judgments obtained from non-PRC jurisdictions. As a result, it may be difficult for you to effect service of process upon us or those persons inside mainland China. It may also be difficult for you to enforce judgments obtained in U.S. courts based on the civil liability provisions of the U.S. federal securities laws against us and our officers and directors who do not reside in the United States or have substantial assets located in the United States. In addition, there is uncertainty as to whether the courts of the PRC would recognize or enforce judgments of U.S. courts against us or such persons predicated upon the civil liability provisions of the securities laws of the United States or any state.

Shareholder claims that are common in the United States, including securities law class actions and fraud claims, 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 obtaining information needed for shareholder investigations or litigation outside China or otherwise with respect to foreign entities. Although the local 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 regulatory cooperation with the securities regulatory authorities in the United States has not been efficient in the absence of mutual and practical cooperation mechanism. According to Article 177 of the PRC Securities Law which became effective in March 2020, no overseas securities regulator is allowed to directly conduct investigation or evidence collection activities within the PRC. Accordingly, without the consent of the competent PRC securities regulators or other relevant authorities, no entity or individual may provide any documents and materials relating to securities business activities to foreign entities or government agencies. As such, there are also uncertainties as to the procedures and requisite timing for the oversea securities regulatory agencies to conduct investigations and collect evidence within the territory of the PRC.

**Risks Related to Ownership of Our Class A Ordinary Shares**

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***We may not be able to timely and effectively implement controls and procedures required by Section 404 of the Sarbanes-Oxley Act of 2002.***

We are required to provide management's attestation on internal controls. The standards required for a public company under Section 404 of the Sarbanes-Oxley Act of 2002 are significantly more stringent than those required of privately-held companies. Management may not be able to effectively and timely implement controls and procedures that adequately respond to the regulatory compliance and reporting requirements that will be applicable to us. If we are not able to implement the additional requirements of Section 404 in a timely manner or with adequate compliance, we may not be able to assess whether our internal controls over financial reporting are effective, which may subject us to adverse regulatory consequences and could harm investor confidence and the market price of our Ordinary Share.

***The requirements of being a public company may strain our resources and divert management's attention.***

As a public company, we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended. (the "Exchange Act,") the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of Nasdaq and other applicable securities rules and regulations. Compliance with these rules and regulations will increase the legal and financial compliance costs of ours, make some activities more difficult, time-consuming or costly and increase demand on our systems and resources, particularly after it is no longer an "emerging growth company." The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight may be required. As a result, management's attention may be diverted from other business concerns, which could adversely affect our business and operating results. We may need to hire more employees in the future or engage outside consultants to comply with these requirements, which will increase its costs and expenses.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to their application and practice, regulatory authorities may initiate legal proceedings against us and our business may be adversely affected.

***If we are characterized as a passive foreign investment company for U.S. federal income tax purposes, our U.S. shareholders may suffer adverse tax consequences.***

If we are a passive foreign investment company ("**PFIC**") for any taxable year (or portion thereof) that is included in the holding period of a U.S. holder of Class A Ordinary Shares, the U.S. holder may be subject to adverse U.S. federal income tax consequences and may be subject to additional reporting requirements. Digital Currency X's PFIC status for its current and subsequent taxable years may depend on its unbooked goodwill as valued based on the projected market value of its equity and whether it qualifies for the PFIC start-up exception. Depending on the particular circumstances, the application of the start-up exception may be subject to uncertainty, and there cannot be any assurance that we will qualify for the start-up exception. Accordingly, there can be no assurances with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. Our actual PFIC status for any taxable year, however, will not be determinable until after the end of such taxable year. Please see the section of this annual report entitled "*Taxation-Certain Material U.S. Federal Income Tax Considerations-Passive Foreign Investment Company Rules*" for a more detailed discussion with respect to Digital Currency X's potential PFIC status. U.S. holders are urged to consult their tax advisors regarding the possible application of the PFIC rules to holders of Class A Ordinary Shares.

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***The IRS may not agree that we should be treated as a non-U.S. corporation for U.S. federal income tax purposes.***

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Although we are incorporated in the Cayman Islands, the IRS may assert that we should be treated as a U.S. corporation for U.S. federal income tax purposes pursuant to Section 7874 of the Internal Revenue Code of 1986, as amended (the "Code") For U.S. federal income tax purposes, a corporation is generally considered a U.S. "domestic" corporation if it is created or organized in or under the laws of the U.S., any state thereof, or the District of Columbia. Because we are not so created or organized (but are instead incorporated only in the Cayman Islands), we would generally be classified as a foreign corporation (that is, a corporation other than a U.S. "domestic" corporation) under these rules. Section 7874 of the Code provides an exception under which a corporation created or organized under foreign law may, in certain circumstances, be treated as a U.S. corporation for U.S. federal income tax purposes.

As more fully described in the section titled "*Taxation-Certain Material U.S. Federal Income Tax Considerations - U.S. Federal Income Tax Treatment of Digital Currency X - Tax Residence of Digital Currency X for U.S. Federal Income Tax Purposes*," based on the rules for determining share ownership under Code Section 7874 and the Treasury regulations promulgated under Code Section 7874 (the "Section 7874 Regulations"), and certain factual assumptions, we are not currently expected to be treated as a U.S. corporation for U.S. federal income tax purposes under Code Section 7874. However, the application of Section 7874 of the Code is complex, is subject to detailed regulations (the application of which is uncertain in various respects and would be impacted by changes in such U.S. tax laws and regulations with possible retroactive effect), and is subject to certain factual uncertainties. Accordingly, there can be no assurance that the IRS will not challenge our status as a foreign corporation under Code Section 7874 or that such challenge would not be sustained by a court.

If the IRS were to successfully challenge under Code Section 7874 our status as a foreign corporation for U.S. federal income tax purposes, we and certain shareholders of ours could be subject to significant adverse tax consequences, including a higher effective corporate income tax rate on us and future withholding taxes on certain of our shareholders, depending on the application of any income tax treaty that might apply to reduce such withholding taxes. In particular, holders of Class A Ordinary Shares would be treated as holders of stock of a U.S. corporation.

***Code Section 7874 may increase our U.S. affiliates' U.S. taxable income or have other adverse consequences to us and our shareholders.***

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Following the acquisition of a U.S. corporation by a foreign corporation, Code Section 7874 can limit the ability of the acquired U.S. corporation and its U.S. affiliates to use U.S. tax attributes (including net operating losses and certain tax credits) to offset U.S. taxable income resulting from certain transactions, as well as result in certain other adverse tax consequences, even if the acquiring foreign corporation is respected as a foreign corporation for purposes of Code Section 7874. In general, if a foreign corporation acquires, directly or indirectly, substantially all of the properties held directly or indirectly by a U.S. corporation, and after the acquisition the former shareholders of the acquired U.S. corporation hold at least 60% (by either vote or value) but less than 80% (by vote and value) of the shares of the foreign acquiring corporation by reason of holding shares in the acquired U.S. corporation, subject to other requirements, certain adverse tax consequences under Section 7874 of the Code may apply.

If these rules apply to the Business Combination, we and certain of our shareholders may be subject to adverse tax consequences including, but not limited to, restrictions on the use of tax attributes with respect to "inversion gain" recognized over a 10-year period following the transaction, disqualification of dividends paid from preferential "qualified dividend income" rates and the requirement that any U.S. corporation owned by us include as "base erosion payments" that may be subject to a minimum U.S. federal income tax any amounts treated as reductions in gross income paid to certain related foreign persons. Furthermore, certain "disqualified individuals" (including officers and directors of a U.S. corporation) may be subject to an excise tax on certain stock-based compensation held thereby at a rate of 20%.

As more fully described in the section titled "*Taxation-Certain Material U.S. Federal Income Tax Considerations - U.S. Federal Income Tax Treatment of Digital Currency X - Utilization of JWAC's Tax Attributes and Certain Other Adverse Tax Consequences to Digital Currency X and Digital Currency X's Shareholders*," based on the terms of the Business Combination, the rules for determining share ownership under Section 7874 of the Code and the Section 7874 Regulations (as defined in "*Taxation-Certain Material U.S. Federal Income Tax Considerations - U.S. Federal Income Tax Treatment of Digital Currency X - Tax Residence of Digital Currency X for U.S. Federal Income Tax Purposes*"), and certain factual assumptions, we are not currently expected to be subject to these rules under Code Section 7874 after the Business Combination. The above determination, however, is subject to detailed regulations (the application of which is uncertain in various respects and would be impacted by future changes in such U.S. Treasury regulations, with possible retroactive effect) and is subject to certain factual uncertainties. Accordingly, there can be no assurance that the IRS will not challenge whether we are subject to the above rules or that such a challenge would not be sustained by a court.

However, even if we are not subject to the above adverse consequences under Section 7874, we may be limited in using our equity to engage in future acquisitions of U.S. corporations over a 36-month period following the Business Combination. If we were to be treated as acquiring substantially all of the assets of a U.S. corporation within a 36-month period after the Business Combination, the Section 7874 Regulations would exclude certain shares of ours attributable to the Business Combination for purposes of determining the Section 7874 Percentage (as defined in "*Taxation-Certain Material U.S. Federal Income Tax Considerations - U.S. Federal Income Tax Treatment of Digital Currency X - Tax Residence of Digital Currency X for U.S. Federal Income Tax Purposes*") of that subsequent acquisition, making it more likely that Code Section 7874 will apply to such subsequent acquisition.

See "*Taxation-Certain Material U.S. Federal Income Tax Considerations - U.S. Federal Income Tax Treatment of Digital Currency X - Utilization of JWAC's Tax Attributes and Certain Other Adverse Tax Consequences to Digital Currency X and Digital Currency X's Shareholders*" for a more detailed discussion of the application of Code Section 7874 to the Business Combination. Investors in our company should consult their own advisors regarding the application of Code Section 7874 to the Business Combination.

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***We are an "emerging growth company" and it cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make its shares of common stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Additionally, as an emerging growth company, we elected to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As such, the financial statements of Digital Currency X may not be comparable to companies that comply with public company effective dates. It cannot be predicted if investors will find Class A Ordinary Shares less attractive because we may rely on these exemptions. If some investors find Class A Ordinary Shares less attractive as a result, there may be a less active trading market for Class A Ordinary Shares and its share price may be more volatile.

***Our share price may be volatile, and purchasers of our Class A Ordinary Shares could incur substantial losses.***

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Our share price has been extremely volatile in the past and may continue to be so in the future. Since our January 1<sup>st</sup> 2024, our class A ordinary shares has traded at prices ranging from $1.15 and $21.6. (After share merge) The stock market in general has experienced extreme volatility that has often been unrelated to the operating performance of particular companies. As a result of this volatility, investors may not be able to sell their class A ordinary shares at or above the price paid for such shares. The market price for our class A ordinary shares may be influenced by many factors, including, but not limited to:

● actual or anticipated variations in our quarterly or annual financial results and prospects of our company or other companies in the same industry;

● changes in economic and financial market conditions;

● the inability to obtain or maintain the listing of our Class A Ordinary Shares on Nasdaq;

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

● mergers or other business combinations involving us;

● additions and departures of key personnel and senior management;

● risks related to the growth of our business;

● the trading volume of our Class A Ordinary Shares in the public market;

● the release of lockup, escrow or other transfer restrictions on our outstanding equity securities or sales of additional equity securities;

● potential litigation or regulatory investigations;

● natural disasters, terrorist acts, acts of war or periods of civil unrest;

● the impact of epidemic and pandemic diseases, such as the COVID-19 pandemic, and governmental responses thereto, on the Company's business, financial condition and results of operations;

● changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural disasters, terrorist attacks, acts of war and responses to such events; and

● the realization of some or all of the risks described in this section.

***The Nasdaq Capital Market imposes listing standards on our Class A Ordinary Shares that we may not be able to fulfill in the future, thereby leading to a possible delisting of our Class A Ordinary Shares.***

Company was listed at Nasdaq Global Market since SPAC.

Company received the notice of delisting due on the market cap issue. Company needs to keep the market cap over 35 million dollars. Company's share price decreased to 1.15 dollar per share. After 180 days, on February 11, 2025, Company applied the hearing regarding overcome the market cap defect. Company issue new 23 million new shares to acquire Too Express. In the meantime, company issue the 20 times voting power share to keep the control right.

On April 30, 2025 Company received approval from Nasdaq to confirm that Company meet all of the criteria necessary for Nasdaq Capital Market to allow our class A ordinary shares to remain listed. Company's share started to trade on May 2, 2025 on the Nasdaq Capital Market.

Subsequently, on October 15, 2025, we were notified by Nasdaq that our ordinary shares failed to maintain a minimum bid price of $1.00 over the preceding 30 consecutive business days as required by Nasdaq Listing Rule 5550(a)(2). We successfully regained compliance with this minimum bid price requirement, as confirmed by a notice from Nasdaq on November 18, 2025, after our closing bid price remained at or above $1.00 for 10 consecutive business days.

Shortly thereafter, on December 12, 2025, we received a notification from Nasdaq indicating that we were not in compliance with the minimum Market Value of Listed Securities of US$35 million ("MVLS") requirement for continued listing on The Nasdaq Capital Market, and that we had a compliance period of 180 calendar days, or until June 10, 2026, to regain compliance pursuant to Nasdaq Listing Rule 5810(c)(3)(C). On January 23, 2026, we received a written notification from the Listing Qualifications Staff of Nasdaq stating that we had successfully regained compliance with the market value of listed securities requirement under Nasdaq Listing Rule 5550(b)(2), as the Staff determined that for the preceding 20 consecutive business days, from December 23, 2025, to January 22, 2026, our market value of listed securities had been $35,000,000 or greater. Although this specific matter is now closed and we successfully retained our Capital Market listing, as a listed company we remain subject to various ongoing listing standards, and we cannot assure you that we will continue to meet these rigorous requirements in the future.

If our Class A Ordinary Shares are ultimately delisted from the Nasdaq Capital Market the Class A Ordinary Shares would likely then trade only in the over-the-counter market and the market liquidity of the Class A Ordinary Shares would be adversely affected and their market price could decrease. If the Class A Ordinary Shares were to trade on the over-the-counter market, selling the Class A Ordinary Shares could be more difficult because smaller quantities of shares would likely be bought and sold, transactions could be delayed, and we could face significant material adverse consequences, including: a limited availability of market quotations for our securities; reduced liquidity with respect to our securities; a determination that our Class A Ordinary Shares are a "penny stock," which will require brokers trading in our securities to adhere to more stringent rules, possibly resulting in a reduced level of trading activity in the secondary trading market for our securities; a reduced amount of news and analyst coverage for our company; and a decreased ability to issue additional securities or obtain additional financing in the future. These factors could result in lower prices and larger spreads in the bid and ask prices for the Class A Ordinary Shares and would substantially impair our ability to raise additional funds and could result in a loss of investor interest and fewer development opportunities for us.

***The future sales of our Class A Ordinary Shares by our principal shareholders may adversely affect the market price of our Ordinary Shares.***

Sales of a substantial number of our Class A Ordinary Shares in the public market by our principal shareholder could occur at any time. If our principal shareholders sell, or the market perceives that they intend to sell, substantial amounts of our Class A Ordinary Shares in the public market, the market price of our Class A Ordinary Shares would likely decline.

 ****

***We may issue additional Class A Ordinary Shares or other equity or convertible debt securities without approval of our shareholders which would dilute existing ownership interests and may depress the market price of our Class A Ordinary Shares.***

We may issue additional Class A Ordinary Shares or other equity or convertible debt securities of equal or senior rank in the future without approval of our shareholders. Our issuance of additional Class A Ordinary Shares or other equity or convertible debt securities of equal or senior rank would have the following effects: (1) our existing shareholders' proportionate ownership interest may decrease; (2) the amount of cash available per share, including for payment of dividends in the future, may decrease; (3) the relative voting power of each previously outstanding Class A Ordinary Shares may be diminished; and (4) the market price of our Class A Ordinary Shares may decline.

***Anti-takeover provisions contained in our fourth amended and restated memorandum and articles of association (the "Amended and Restated Memorandum and Articles of Association"), as well as provisions of Cayman Islands law, could impair a takeover attempt and limit the price investors might be willing to pay in the future for the Class A Ordinary Shares and could entrench management.***

Our fourth amended and restated memorandum and articles of association (the "Amended and Restated Memorandum and Articles of Association") contains anti-takeover provisions under Cayman Islands law, which could delay or prevent a change of control. These provisions may discourage transactions that otherwise could involve payment of a premium over prevailing market prices for Digital Currency X's securities.

Our authorized but unissued shares are available for future issuances without shareholder approval and could be utilized for a variety of corporate purposes, including future offerings to raise additional capital, acquisitions and employee benefit plans. The existence of authorized but unissued and unreserved ordinary shares could render more difficult or discourage an attempt to obtain control of us by means of a proxy contest, tender offer, merger or otherwise.

***Concentration of ownership among our existing executive officers, directors and their affiliates may prevent new investors from influencing significant corporate decisions.***

Our executive officers, directors and their affiliates as a group beneficially own approximately 56.15% of outstanding Class A Ordinary Shares and Class B Ordinary Shares (as defined herein). As a result, these shareholders will be able to exercise a significant level of control over all matters requiring stockholder approval, including the election of directors, any amendment of our Charter and approval of significant corporate transactions. This control could have the effect of delaying or preventing a change of control or changes in management and will make the approval of certain transactions difficult or impossible without the support of these shareholders.

***We do not expect to declare any dividends in the foreseeable future.***

We do not anticipate declaring any cash dividends to holders of its common stock in the foreseeable future. Consequently, investors may need to rely on sales of their shares after price appreciation, which may never occur, as the only way to realize any future gains on their investment.

***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 United States domestic public companies.***

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

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

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

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

● the selective disclosure rules by issuers of material non-public information under Regulation FD.

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

As a Cayman Islands exempted company that is listed on Nasdaq, we are subject to Nasdaq corporate governance listing standards. However, Nasdaq rules permit a foreign private issuer like us to follow the corporate governance practices of its home country. Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from Nasdaq corporate governance listing standards, including, but not limited to, board of directors independent requirements, director nomination procedures, compensation committee matters. We are following our home country law instead of the Nasdaq listing rules that require us to obtain shareholder approval for certain dilutive events, such as certain transactions other than a public offering involving issuances of a 20% or greater interest in the company, and acquisitions of the stock or assets of another company. As a result, our shareholders may be afforded less protection than they otherwise would enjoy under Nasdaq corporate governance listing standards applicable to U.S. domestic issuers. In addition, we also follow other home country practice in lieu of the requirements under Nasdaq listing rules with respect to certain corporate governance standards with respect to the following Nasdaq requirements:

● *Executive Sessions.* We will not be required to and, in reliance on home country practice, we may not, comply with certain Nasdaq rules requiring our independent directors to meet in regularly scheduled executive sessions at which only independent directors are present. We will follow Cayman Islands practice which does not require independent directors to meet regularly in executive sessions separate from the full board of directors.

● *Proxy Statements.* We will not be required to and, in reliance on home country practice, we may not, comply with certain Nasdaq rules regarding the provision of proxy statements for general meetings of shareholders. We will follow Cayman Islands practice which does not impose a regulatory regime for the solicitation of proxies.

● *Shareholder Approval.* We will not be required to and, in reliance on home country practice, we do not intend to, comply with certain Nasdaq rules regarding shareholder approval for certain issuances of securities under Nasdaq Rule 5635. In accordance with the provisions of the Amended and Restated Memorandum and Articles of Association, our board of directors may issue securities in the Company, which may be comprised of whole or fractional shares, rights, options, warrants or convertible securities or securities of similar nature conferring the right upon the holders thereof to subscribe for, purchase or receive any class of shares or other securities in the Company, upon such terms as the directors may from time to time determine.

**ITEM 4. INFORMATION ON THE COMPANY** 

**4A. History and Development of the Company**

We are a Cayman Islands exempted company structured as a holding company. Until the disposal of our entire interest in Chijet Inc. on March 20, 2026 (the "Disposal"), as further described below under "Recent Development," we conducted our historical operations in the electric vehicle industry in China through Chijet Inc. and its subsidiaries, including Shandong Baoya. Following the Disposal, we have transitioned our strategic focus to technology and digital asset management. Our principal executive offices are located at Room 1101, 11/F., Capital Centre, 151 Gloucester Road, Wanchai, Hong Kong. Our agent for service of process in the United States is Puglisi & Associates, 850 Library Avenue, Suite 204, Newark, Delaware 19711.

We were incorporated as an exempt company with limited liability under the laws of the Cayman Islands on June 22, 2022. Our wholly owned subsidiary, Chijet Inc. was incorporated under the laws of the Cayman Islands on July 6, 2021. Until the Disposal on March 20, 2026, Chijet Inc., in turn, indirectly held an over 85% interest in Shandong Baoya. In addition, prior to the Disposal, Chijet Inc. indirectly held an over 60% interest in FAW Jilin.

Our former core operating entity, Shandong Baoya, was founded in 2009 and is one of the earliest companies in China to engage in the research and development, production and sales of new energy vehicles. Our former subsidiaries, which were disposed of as part of the Disposal, mainly included Baoya New Energy Automobile R&D Institution (Yantai) Co., Ltd., Baoya New Energy Automobile Sale (Yantai) Co., Ltd., Xiangyang Yazhi New Energy Automobile Co., Ltd. ("Xiangyang Yazhi"), Xiangyang Yazhi New Energy Automobile Sale Co. Ltd., Bijie Yabei New Energy Automobile Co., Ltd. ("Bijie Yabei"), Dezhou Yitu New Energy Automobile Co., Ltd., Dezhou Yarui New Energy Automobile Co., Ltd ("Dezhou Yarui"), Baoya New Energy Automobile R&D (Xiangyang) Co., Ltd. In 2019 we acquired our interest in FAW Jilin. Our former primary operating entities were Shandong Baoya, and Shandong Baoya's subsidiary, FAW Jilin. FAW Jilin had a subsidiary named FAW Jilin Automobile Sale Co., Ltd. and a branch named Shandong Branch of FAW Jilin.

On December 27, 2019, we acquired our interest in FAW Jilin Automobile Co., Ltd., which we refer to as "FAW Jilin." Pursuant to the Agreement and Plan of Merger relating to this acquisition the purchase price was approximately US$205.50 million (RMB 1.5 billion).

In preparation for listing our securities on the Nasdaq Stock Market through a merger with a Special Purpose Acquisition Company ("***SPAC***") traded on Nasdaq, we completed a reorganization in June 2023, which involved the following preliminary steps:

● On July 2, 2021, Chijet Inc. was established under the laws of the Cayman Islands.

● On July 12, 2021, Baoya Technology Holdings Limited was incorporated in British Virgin Islands as a wholly-owned subsidiary of Chijet Inc.

● On July 28, 2021, Baoyaev Group Limited was incorporated in Hong Kong as a wholly-owned subsidiary of Baoya Technology Holdings Limited.

● On October 21, 2021, Baoya New Energy (Shandong) Co., Ltd. ("WFOE") was established in the PRC as a wholly-owned subsidiary of Baoyaev Group Limited.

By June 3, 2022, Chijet Inc. acquired a 85.172% stake in Shandong Baoya through its wholly-owned subsidiary WFOE via the following transactions: (1) WFOE acquired 17.245% stake in Shandong Baoya from two shareholders by the issuance of 1,795,977 of our ordinary shares issued by Chijet Inc.; and (2) WFOE acquired 67.927% stake in Shandong Baoya from seven shareholders (the "Sellers"), individual and institutional, for total consideration of Renminbi ("RMB")7. Upon the Baoya New Energy (Shandong) Co., Ltd.'s transaction, all seven shareholders entered into a voting agreement to vote consensually concerning operating and development matters of Chijet Inc. and its subsidiaries. Given no change in control, the transaction was accounted for as business combination under common control.

For financial reporting purposes, the acquisition of Shandong Baoya New Energy Vehicle Co., Ltd. represented a transaction between entities under common control, resulted in a change in reporting entity and required retrospective combination of entities for all periods presented, as if the combination had been in effect since the inception of common control. Accordingly, the consolidated financial statements of Chijet Inc. and subsidiaries reflected the accounting of the combined acquired subsidiaries at historical carrying values, except that equity reflected the equity of Chijet Inc.

On July 12, 2022, we entered into a definitive business combination agreement with Deep Medicine Acquisition Corp., a blank check, special purpose acquisition company incorporated in Delaware, and a related support agreement with the company and its sponsor, Bright Vision Sponsor LLC. On September 26, 2022 this business combination agreement and related support agreement were terminated following expiration of a prescribed negotiation period in the business combination agreement. None of the parties were obligated to pay any penalties as a result of the termination, pursuant to the terms of the business combination agreement. During 2022, due to COVID-19 pandemic closures, we had approximately five months temporary suspensions of operations.

Our website is https://1957413.ir365connect.com/. The information on our website is not incorporated by reference into this annual report.

As used in this annual report, the terms "we," "us," "our," "Digital Currency X" and "the Company" refer to Digital Currency X Technology Inc. and its subsidiaries. It should be noted that following the Disposal of Chijet Inc. on March 20, 2026, Chijet Inc. and its subsidiaries ceased to be subsidiaries of the Company. Therefore, unless the context indicates otherwise, descriptions of the automotive business, its operations, assets, and liabilities relate to a business that we no longer own.

On October 25, 2022, Digital Currency X entered into a business combination agreement (the "Business Combination Agreement") with Jupiter Wellness Acquisition Corp. ("JWAC"), a Delaware corporation, Chijet Inc., certain sellers described in the Business Combination Agreement, Mu Hongwei in the capacity as the Seller Representative thereunder and Chijet Motor (USA) Company, Inc. ("Merger Sub"), a Delaware corporation and a wholly-owned subsidiary of Digital Currency X (the "Business Combination"). Pursuant to the Business Combination Agreement, among other things, (a) we acquired all of the issued and outstanding capital shares of Chijet Inc. held by the Sellers in exchange for ordinary shares of Digital Currency X., and any shares Chijet Inc. held in Digital Currency X were surrendered for no consideration, such that Digital Currency X became a wholly-owned subsidiary of Digital Currency X and the Sellers become shareholders of Digital Currency X (referred to as the Share Exchange); and immediately thereafter (b) the Merger Sub merged with and into JWAC, with JWAC continuing as the surviving entity and a wholly-owned subsidiary of Digital Currency X.

On the closing date of the Business Combination Agreement, we made the following securities issuances to JWAC's and certain specified securityholders: (i) each outstanding share of the JWAC Common Stock, which was held by JWAC's public stockholders were exchanged for (1) one Digital Currency X class A ordinary share, (totaling approximately 43,357 class A ordinary shares), and (2) one private contingent value right of Digital Currency X; (ii) each outstanding share of JWAC Class B Common Stock was converted into JWAC Common Stock and likewise exchanged for the right to receive115,000 class A ordinary shares (following which exchange all of the JWAC Common Stock JWAC Class B Common Stock were cancelled and ceased to exist); (iii) the registered holder of each outstanding right to receive one-eighth (1/8) of one share of JWAC Common Stock, which thereby provided such holder with the right to receive one share of JWAC Common Stock (the "JWAC Rights") upon holding eight of such JWAC Rights, was issued the number of full shares of JWAC Common Stock to which such holder of JWAC Rights was eligible, and which were exchanged for the equivalent number of our class A ordinary shares, (such JWAC Rights were converted into 57,500 class A ordinary shares; (iv) each share of JWAC Common Stock which was not held by JWAC's public stockholders was exchanged for one of our class A ordinary share (consisting of privately placed JWAC Common Stock and JWAC Common Stock issued for JWAC's privately placed rights) as well as shares issued privately to Chijet Inc. directors and for expenses(which consisted of 50,121 class A ordinary shares; and (v) the privately placed warrant of Greentree Financial Group Inc. ("***Greentree***") was exchanged for an equivalent warrant exercisable into 166,667 class A ordinary shares, which was partially exercised thereon for 8,333 shares. We also issued warrants (the "Representative Warrant") to I-Bankers as representative of the underwriters in connection with the JWAC's initial public offering (the "JWAC IPO"), consisting in the aggregate Representative Warrants to purchase 13,800 shares of Class A common stock of JWAC (the "JWAC Common Stock,") exercisable at $360.00 per share for five years. The Representative Warrant was exchanged for an equivalent warrant exercisable into 13,800 class A ordinary shares.

The following information regarding PRC licenses and permissions relates to our former subsidiaries, which were disposed of on March 20, 2026, and is presented for historical context only. This information is not representative of our current operations. As of the date of this annual report, we and our former PRC subsidiaries have received from PRC authorities all requisite licenses, permissions or approvals that are material for the business operations currently conducted in China, and have not been subject to any penalties or other disciplinary action from any PRC authority for the failure to obtain or the insufficiency of any license, permission or approval in connection with the conduct of our business operations. We have not been denied by any PRC authority with respect to the application of any requisite permissions by us or our former PRC subsidiaries. Apart from the business licenses held by each of our former PRC subsidiaries, the following table provides details on the material licenses and permissions held by our former PRC subsidiaries. However, if we do not receive or maintain the approvals, or we inadvertently conclude that such approvals are not required, or applicable laws, regulations, or interpretations change such that we are required to obtain approval in the future, we may be subject to investigations by competent regulators, fines or penalties, ordered to suspend our relevant operations and rectify any non-compliance, prohibited from engaging in relevant business or conducting any offering, and these risks could result in a material adverse change in our operations, 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.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Recipient** | **Governmental Permits** | **Issued by** | **Issuance Date** | **Expiration Date** |
| FAW Jilin | The Access for Road Vehicle Manufacturing | The Ministry of Industry and Information Technology ("***MIIT***") | 2004 | Long-term without an expiration date(Paused until the corrective actions are completed) |
| FAW Jilin | Pollutant Discharge Permit | Jilin City Ecological Environment Bureau | 01/12/2023 | 01/11/2028 |

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| | | | | |
|:---|:---|:---|:---|:---|
| FAW Jilin | Approval of Environmental Impact Report for the Project of Yantai Manufacturing Base of FAW Jilin on New Energy Vehicles | Branch of Yantai Ecological Environment Bureau in Economic and Technological Development Zone | 10/27/2020 | Long-term without an expiration date |
| FAW Jilin | Filing-for-Record on Hazardous Waste | Jilin City Ecological Environment Bureau | 01/06/2022 | Long-term without an expiration date |
| FAW Jilin | Record Registration of<br> Consignee and Consignor of Import and Export of Goods | Jilin Customs | 02/20/2020 | 07/31/2068 (Paused)<br>|
| Xiangyang Yazhi | Pollutant Discharge Permit | Branch of Xiangyang Municipal Ecological Environment Bureau in Xiangyang Hi-tech Industry Development Zone | 07/25/2023 | 07/24/2028 |

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The chart below summarizes our corporate structure as of the date of this annual report:

![](form20-f_001.jpg)

*Note: On March 20, 2026, the Company completed the disposal of its entire interest in Chijet Inc. and its subsidiaries. As a result, the entities previously comprising our automotive business are no longer part of our corporate structure.*

On January 10, 2025, our shareholders approved and adopted an amended and restated memorandum and articles of association, which changed the authorized issued share capital of our company from US$30,000,000.00 divided into 10,000,000,000 shares of par value of US$0.003 each, to US$30,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.003 each, consisting of (i) 9,982,000,000 class A ordinary shares of a par value of US$0.003 each and (ii) 18,000,000 class B ordinary shares of a par value of US$0.003 each. Each class A ordinary share is entitled to one (1) vote and each class B ordinary share is entitled to twenty (20) votes. In connection with this-re-designation of our authorized capital, all of the then outstanding and issued outstanding ordinary shares were converted into class A ordinary shares on a one-for-one basis.

On April 28, 2025, we closed a transaction where 23,255,814 class A ordinary shares ("Company Shares") were issued as the purchase price for our acquisition of the 80% equity interests (the "TE Shares") in Too Express Group Inc. Pursuant to a Future Rights Agreement delivered at the closing, if the shareholder equity of the Company as of June 30, 2025 is a negative number, the Company shares shall be forfeited and the TE Shares shall be returned to the original sellers of the TE Shares. Our board of directors concluded that the conditions for the forfeiture of the Company Shares under the Future Rights Agreement had been met and as such, the Company Shares were forfeited, retired and cancelled as of August 1, 2025. We entered into an agreement with the original sellers of the TE shares regarding the return of the TE shares, pursuant to the terms of the future rights agreement.

On April 30, 2025, we were notified by Nasdaq that our application to transfer the listing of our class A ordinary shares from the Nasdaq Global Market to the Nasdaq Capital Market was approved. Our securities began trading on the Nasdaq Capital Market on May 2, 2025.

On September 2, 2025, the Company entered into a placement agency agreement ("Placement Agency Agreement") with Maxim Group LLC ("Maxim" or the "Placement Agent") and securities purchase agreement with certain investor named therein in connection with the offer and sale of (i) 13,560,000 class A ordinary shares, par value US$0.003 per share of the Company and (ii) ordinary warrants (each an "Ordinary Warrant" and collectively, the "Ordinary Warrants") to purchase up to 13,560,000 class A ordinary shares at an initial exercise price of $0.59 per share, at a combined public offering price of US$0.59 per share and accompanying Ordinary Warrants. Pursuant to the Placement Agency Agreement, the Company also agreed to issue to the Placement Agent certain warrants to purchase up to 678,000 class A ordinary shares as part of the compensation payable to the Placement Agent in connection with this Offering (the "Placement Agent Warrants"). The Placement Agent Warrants are in substantially similar form to the Ordinary Warrants.

On September 5, 2025, the Company issued a total of 640,850 class A ordinary shares, par value $0.003 per share, to the holders of contingent value rights ("CVRs") on record as of July 22, 2025, on a pro rata basis. This issuance was triggered because certain earnout milestones set forth in the Business Combination Agreement, dated October 25, 2022, were not achieved for the calendar year ended December 31, 2024. Consequently, two shareholders of the Company, Euroamer Kaiwan Technology Company Limited and Chijet Holdings Limited, surrendered an aggregate of 640,850 class A ordinary shares (the "Earnout Shares") to the Company for cancellation. Pursuant to the terms of the Business Combination Agreement, the Company was required to issue an equivalent number of class A ordinary shares to be allocated among the qualifying CVR holders. Based on a total of 1,300,706 issued and outstanding CVRs at the time of the distribution, each CVR entitled its holder to receive 0.492694 class A ordinary shares. In accordance with the distribution terms, any qualifying CVR holder who would have otherwise been entitled to a fraction of a class A ordinary share (after aggregating all fractional shares issuable to such person) had their issuance rounded down in the aggregate to the nearest whole share.

On September 24, 2025, the Company's shareholders voted and approved at the annual general meeting that the Company shall undertake an up to 100 for 1 share consolidation of the issued and unissued shares of the Company (the "Range"), such that (i) every up to one hundred (100) class A ordinary shares of a par value of US$0.003 each be consolidated into one (1) class A ordinary share with a par value of not more than US$0.3 each, and (ii) every up to one hundred (100) class B ordinary shares of a par value of US$0.003 each be consolidated into one (1) class B ordinary share with a par value of not more than US$0.3 each (the "Share Consolidation"), with the exact ratio to be set at a whole number within the Range to be determined by the board of directors of the Company in its sole discretion and such Share Consolidation to be further implemented and effected by the board of directors of the Company. The board of directors of the Company has further resolved to implement a one hundred (100)-for-one (1) share consolidation of its issued and unissued ordinary shares, which became effective on November 3, 2025, and adjusted the par value per share from US$0.003 to US$0.30. Subsequently, on December 24, 2025, the Board of Directors approved a 12-for-1 share consolidation, which became effective on January 22, 2026. This further adjusted the par value per share from US$0.30 to US$3.60.

On September 24, 2025, the Company's shareholders voted and approved at the annual general meeting that subject to and conditional upon the approval of the Registrar of Companies in the Cayman Islands (the "Cayman Registrar"), the name of the Company be changed from "CHIJET MOTOR COMPANY, INC." to "Digital Currency X Technology Inc.", with effect from the date of the certificate of incorporation on change of name to be issued by the Cayman Registrar. At the opening of trading on December 10, 2025, the class A ordinary shares of CHIJET MOTOR COMPANY, INC. (NASDAQ: CJET) began trading on the Nasdaq Capital Market under the new name "Digital Currency X Technology Inc." and new ticker symbol "DCX."

On October 15, 2025, we were notified by Nasdaq that our ordinary shares failed to maintain a minimum bid price of $1.00 over the preceding 30 consecutive business days as required by Nasdaq Listing Rule 5550(a)(2). We successfully regained compliance with this minimum bid price requirement, as confirmed by a notice from Nasdaq on November 18, 2025, after our closing bid price remained at or above $1.00 for 10 consecutive business days.

On October 26, 2025, the Company entered into a Securities Purchase Agreement (the "Original Agreement") with certain investors. Under the Original Agreement, the purchasers agreed to subscribe for, and the Company agreed to issue and sell, an aggregate of US$300,000,000 of units (the "Units") with each Unit consisting of one ordinary share, par value of US$0.003 per share of the Company and three warrants (the "Warrants"), at a purchase price of US$0.1 per Unit. The Warrants have an exercise price of $0.12 per share (subject to adjustment as set forth in the Warrants), are exercisable on or after October 26, 2025 and will expire three (3) years after that date. Subsequent to the execution of the Original Agreement, on November 3, 2025, the Company completed a 100-for-1 consolidation of its issued and unissued Ordinary Shares, resulting in an increase in the par value of each Ordinary Share from US$0.003 to US$0.3. Pursuant to Cayman Islands law, shares cannot be issued at a price below their par value. Consequently, the original per Unit purchase price of $0.1 specified in the Original Agreement became invalid. To address this, on November 25, 2025, the Company and the purchasers entered into a Supplemental Agreement to Securities Purchase Agreement (the "Supplemental Agreement"), which replaced the relevant terms in the Original Agreement (the "Private Placement"). Pursuant to the Supplemental Agreement, the purchase price per Unit was increased from US$0.1 per Unit to US$1.27 per Unit, the total number of Units to be issued by the Company to purchaser was reduced from 30,000,000 Units to 23,622,047 Units, calculated as US$30,000,000 aggregate investment divided by US$1.27 per Unit, and the exercise price for each Warrant was increased from US$0.12 per ordinary share to US$1.40 per ordinary share.

On November 25, 2025, the Company entered into securities purchase agreements with certain investors for the purchase and sale of (i) 1,311,855 class A ordinary shares, par value US$0.3 per share, and (ii) Pre-Funded Warrants to purchase 7,149,675 class A ordinary shares (the "Pre-Funded Warrants" and each a "Pre-Funded Warrant"), exercisable at an initial exercise price of US$0.001 per share. Each class A ordinary share is offered at an offering price of US$1.30 per share, and each Pre-Funded Warrant is offered at an offering price of $1.299 each.

On December 12, 2025, we received a notification from Nasdaq indicating that we were not in compliance with a minimum Market Value of Listed Securities of US$35 million ("MVLS") for continued listing on The Nasdaq Capital Market (the "MVLS Requirement"), and that the Company has a compliance period of one hundred eighty (180) calendar days, or until June 10, 2026, to regain compliance with Nasdaq's MVLS Requirement pursuant to Nasdaq Listing Rule 5810(c)(3)(C).

On December 22, 2025, the Company held an extraordinary general meeting of shareholders at which our shareholders approved to increase the Company's authorized share capital from US$30,000,000.00 divided into 100,000,000 shares of a par value of US$0.3 each, comprising (a) 99,820,000 class A ordinary shares of a par value of US$0.3 each and (b) 180,000 class B ordinary shares of a par value of US$0.3 each, to US$3,000,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.3 each, comprising (a) 9,982,000,000 class A ordinary shares of a par value of US$0.3 each and (b) 18,000,000 class B ordinary shares of a par value of US$0.3 each, by the creation of additional 9,882,180,000 class A ordinary shares and 17,820,000 class B ordinary shares, with immediate effect (the "Share Capital Increase"). In conjunction with this comprehensive Share Capital Increase, the shareholders granted explicit discretionary authority to the board of directors to implement one or more share consolidations of our ordinary shares over a period of up to two years from the date of the meeting. Under this authorization, the board of directors is empowered to determine the exact timing, implementation, and specific consolidation ratios at its absolute discretion, provided that the cumulative consolidation ratio across all such actions shall not exceed 3000:1, and any fractional shares resulting from such consolidations will be rounded up to the nearest whole share to facilitate administrative efficiency.

In 2025, we expanded our digital currency information ecosystem with the launch of DexTrader (accessible at https://dextrader.ai/), an on-chain data and information service platform. DexTrader is designed to provide global cryptocurrency traders with real-time, comprehensive data insights and analytical tools pertaining to decentralized exchanges (DEXs). As of the date of this annual report, DexTrader remains in its early operational phase and has not yet generated any revenues. We are currently focused on user acquisition and product optimization, and there can be no assurance as to when, or if, the platform will become a revenue-generating business.

**Recent Development**

***Nasdaq continued listing compliance***

On January 23, 2026, we received a written notification (the "January Notice") from the Listing Qualifications (the "Staff") of The Nasdaq Stock Market LLC ("Nasdaq"), that it has regained compliance with the market value of listed securities requirement under Nasdaq Listing Rule 5550(b)(2) (the "Rule"). The Company was previously notified on December 12, 2025 by the Staff that it had failed to maintain a minimum market value of listed securities of $35,000,000 over the previous 30 consecutive business days as required by the Rule. The January Notice stated that the Staff has determined that for the last 20 consecutive business days, from December 23, 2025 to January 22, 2026, the Company's market value of listed securities has been $35,000,000 or greater. Accordingly, the Company has regained compliance with the Rule and this matter is now closed.

***Disposal of Automotive Business***

On March 18, 2026, the Company entered into a share purchase agreement (the "Share Purchase Agreement") with Drivepoint Holdings Ltd., a limited liability company incorporated in the Cayman Islands. Pursuant to the Share Purchase Agreement, the Company conditionally agreed to sell, and the purchaser conditionally agreed to acquire, Chijet Inc., through the sale and purchase of the entire issued share capital of Chijet Inc. at a consideration of US$1.00 in cash, subject to the terms and conditions of the Share Purchase Agreement (the "Disposal"). On March 20, 2026, the Company completed the disposal of Chijet Inc. The Disposal is part of the Company's strategic transition away from its legacy electric vehicle manufacturing business, which has experienced intense industry competition, supply chain challenges, and cumulative losses exceeding US$100 million. Following a comprehensive strategic review, the Company's board of directors determined that divesting Chijet Inc. would allow the Company to eliminate a loss-making operation, improve its financial position, and focus resources on its new core business in technology and digital asset management. The Company believes that the Disposal will enhance its ability to achieve sustainable profitability, support the growth of new technology-driven business lines, and facilitate ongoing compliance with Nasdaq listing requirements. The Disposal has been approved by the board of directors of the Company and the closing has occurred. Upon Closing, the Company ceased to hold any interest in Chijet Inc. Accordingly, Chijet Inc., together with its subsidiaries, have ceased to be subsidiaries of the Company and are no longer be consolidated into the financial statements of Company from the date of the Disposal onward. The historical financial results of the disposed business for the periods presented in this annual report have been classified as discontinued operations in our consolidated financial statements.

**4B. Business Overview**

***Important Note Regarding the Disposal of Automotive Business***

On March 20, 2026, subsequent to the fiscal year ended December 31, 2025, the Company completed the disposal of its entire electric vehicle business through the sale of its wholly-owned subsidiary, Chijet Inc. (the "Disposal"). Consequently, the Company is no longer engaged in the research, development, production, or sale of new energy vehicles. The following description of the automotive business, its products, operations, technologies, and market relates exclusively to the historical business conducted during the fiscal year ended December 31, 2025, and prior periods. This business is no longer part of our ongoing operations. Following the Disposal, the Company has shifted its strategic focus to technology and digital asset management.

During the fiscal year ended December 31, 2025, we were engaged in the research and development, production and sales of new energy vehicles ("NEVs"). NEVs referred to plug-in electric vehicles including battery electric vehicles, plug-in hybrid (PHEV) electric vehicles and fuel cell electric vehicles. Our mission in this former business was to produce vehicles with efficient exhaust emissions, improve air quality, and benefit users and the environment. We operated this business through our then-subsidiaries, as described below.

Our former core operating entity, Shandong Baoya New Energy Vehicle Co., Ltd., or Shandong Baoya, was founded in 2009 and was one of the earliest companies in China to engage in the research and development, production and sales of new energy vehicles. Our former subsidiaries mainly included Baoya New Energy Automobile R&D Institution (Yantai) Co., Ltd., Baoya New Energy Automobile Sale (Yantai) Co., Ltd., Xiangyang Yazhi, Xiangyang Yazhi New Energy Automobile Sale Co. Ltd., Bijie Yabei, Dezhou Yitu New Energy Automobile Co., Ltd., and Dezhou Yarui, Baoya New Energy Automobile R&D (Xiangyang) Co., Ltd. In 2019 we acquired our interest in FAW Jilin Automobile Co., Ltd., which we refer to as "FAW Jilin." Our former primary operating entities were Shandong Baoya, FAW Jilin.

Our former main business included the design and development, production, sales, after-sales service and export of new energy vehicles and vehicle parts. Our former passenger vehicles included small cars, sedans and sports utility vehicles, or SUVs, and our commercial vehicles include light trucks and vans. Our former automobile industry group provided products and services to the entire value chain for our vehicles including R&D, manufacturing, sales and product services.

Our former manufacturing process used intelligent manufacturing ecosystems, which focused on efficiency in planning, R&D, supply chain management, manufacturing, quality, and logistics.

Our two former core operating entities, Shandong Baoya and FAW Jilin produced new energy vehicles and traditional fuel vehicles. After more than 40 years of development and operations, FAW Jilin had sold millions of vehicles in China and had established its place as one of the leaders in the popularization of light and small vehicles in China.

**Our Former Vehicles**

Our former vehicle production lines included three platforms: the A-class electric car platform, referred to as FBS; the hybrid A-class SUV platform, referred to as RSS; the electric commercial vehicle platform, referred to as TVS; and the micro electric vehicle platform, referred to as FAS. We manufactured a variety of passenger vehicles (with the names R7, R8, R9), trucks (with the names T80, T90), passenger cars (the V80) and special sanitation vehicles and ambulances.

Our former vehicles included technological innovations and breakthroughs which we had made (with our development partners), and these technologies included: (1) in-wheel motors, (2) solid-state batteries, (3) smart cockpits and (4) domain controllers.

**Our Former Power Solutions**

Our former power supply solutions offered super charging mode and fast power changing mode. The super charging mode was designed to match the public fast charging pile and 4C fast charging battery system to achieve a charge of 200KM in up to 10 minutes, thus helping solve the problem of battery life anxiety. Prior to the Disposal, we were in contact with Zhongchuang Xinhang (6C scheme), Lanjun Ruipu (4C scheme), Yiwei Lithium Energy (4C scheme) and other enterprises to lay the framework for battery charging services and related components. In the electricity exchange mode we had planned to cooperate with Aodong New Energy and Xiexin New Energy to realize quick exchange in small areas through a modular platform battery system for battery exchanges. All such plans and contacts were part of the disposed business.

**Historical Sales, Advertising and Marketing**

We advertised through multimedia such as television, Internet, and print. Our marketing aimed to put the pursuit of customer satisfaction first, provide customers with a more convenient way to purchase cars through widely distributed distribution channels; narrow the distance with consumers through auto shows, road shows, and tour exhibitions, as well as through media public relations manuscript reports, WeChat public account, official website, Vlog and personal WeChat Moments spread product image and performance.

**Historical Strategic Cooperation**

We had signed strategic cooperation agreements with Ruidong New Energy Technology Co., Ltd. to develop on board equipment to carry out the integration and development of a new energy hybrid power system in order to improve product endurance and other performance indicators.

**Historical Technology Research and Development**

We cooperated with Yantai University, Hunan University Wuxi Intelligent Control Research Institute, Beijing Welion New Energy Technology Co., Ltd., CRRC Corporation Limited, Nantong Ruidong New Energy Technology Co., Ltd. and other scientific research institutes.

Prior to the Disposal, we believed the research and development capability of our automotive business was one of its principal competitive strengths. The business had invested a significant amount of resources in research and development and had built a team focused on engineering. All R&D personnel and activities described herein were part of the disposed business. As of December 31, 2025, the business had research and development engineers and R&D data processing staff. Its research and development activities were conducted at Jilin Office.

Our research and development expenses were US $0.59 million, US$1.48 million, and US$8.40 million in the years ended December 31, 2025, 2024, and 2023, respectively.

**Historical Intellectual Properties**

The former automotive business maintained and protected the intellectual property related to its vehicles. As part of the Disposal, substantially all of this intellectual property was transferred with the sale of Chijet Inc. As of the date of this annual report, the disposed business held a portfolio of 87 granted patents, including 4 invention patents, 55 utility model patents, 28 appearance patents, 0 pending patents and 0 granted trademarks in the PRC.

**Historical Customers**

The customers of our former business consisted of distributors, online car-hailing and other private market customers, supplemented by government and group procurement.

**Historical Delivery of Vehicles**

The former business sold and distributed its products through three modes: distribution (dealer sales), direct sales (factory sales and direct sales stores) and overseas agency sales. Domestic sales of commercial vehicles were mainly delivered by land (road) transportation, and international sales were mainly by maritime transportation.

A substantial portion of the former business's sales was attributable to a limited number of long-term customers. Its top customers (which each accounted for 10% or more of its sales in each period) together accounted for 54%, 22%, and 22%, respectively, of its total sales for the fiscal years ended December 31, 2025, 2024, and 2023.

The following table sets forth for the periods indicates the geographic breakdown of the former business's sales by the region where purchase orders were originated.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Regions** | **Fiscal Year 2025** | **Fiscal Year 2025** | **Fiscal Year 2024** | **Fiscal Year 2024** | **Fiscal Year 2023** | **Fiscal Year 2023** |
| In thousand USD | **Sales** | **%of<br> Total Sales** | **Sales** | **%of<br> Total Sales** | **Sales** | **%of<br> Total Sales** |
| Mainland China | $845 | 58.5% | $4804 | 69.5% | $9185 | 96.9% |
| Africa | $593 | 41.0% | $- | -% | $- | -% |
| Central Asia | $7 | 0.5% | $- | -% | $- | -% |
| Latin America | $- | -% | $1738 | 25.1% | $163 | 1.7% |
| Oceania | $- | -% | $352 | 5.1% | $78 | 0.8% |
| Europe | $- | -% | $21 | 0.3% | $57 | 0.6% |
| **Total** | $1445 | 100% | $**6915** | **100%** | $**9483** | **100%** |

---

The former business was focused on strengthening its relationships with large customers. Its customers looked to it for a reliable source of supply. For each key customer, it appointed an account manager complemented by a product development team. The former business had plans to expand its sales channels, including enlarging overseas sales.

**Historical Manufacturing, Supply Chain**

The former business had more than four hundred existing suppliers, and related contracting parties, located domestically and internationally. The majority of its supply base was located in China, which was believed to be beneficial as it enabled the business to acquire supplies more quickly and reduced the risk of delays related to shipping and importing. It had developed close relationships with several key suppliers. It obtained systems, components, raw materials, parts, manufacturing equipment and other supplies and services from suppliers which it believed to be reputable and reliable. Similar to other global major automobile manufacturers, it followed its internal process to source suppliers taking into account quality, cost and timing. It had a part quality management team which was responsible for managing and ensuring that supplies met quality standards.

The key components and materials of its vehicles included batteries, drive motors and vehicle specification chips. It sourced these components and raw materials from outside sources. It did not typically enter into binding master supply agreements with its major suppliers but it provided its suppliers quarterly forecasts which generally covered product specifications, quantities and delivery terms. These forecasts served as an indication of the size and key components of its order, and neither party was committed to supply or purchase any products until a firm purchase order was issued. It purchased its components and materials based on forecasts from its customers as well as its own assessments of its customers' needs. Its rolling forecasts were generally made three months in advance and updated monthly.

In order to reduce its component and raw material costs and its dependence on any one supplier, it generally developed compatible components and raw materials and purchased its components and raw materials from more than one source. However, it sourced the key components and raw materials from a limited group of suppliers in order to ensure timely supply and consistent quality. It performed periodic evaluations of its component and raw material suppliers based on a number of factors, including the quality and cost of the materials, delivery and response time, the quality of the services and the financial health and management of the suppliers. It maintained a strategic relationship with many of its key material suppliers, and it generally maintained a component and raw material inventory sufficient for approximately 2-8 days.

Two suppliers accounted for 22% and 6% of the former business's total purchase of raw materials for the fiscal year ended December 31, 2025. For the fiscal year ended December 31, 2024, two suppliers accounted for 75% and 4% of its total purchases of raw materials. Two suppliers accounted for 38% and 7% of its total purchases of raw materials for the fiscal year ended December 31, 2023.

**Historical Quality Control**

FAW Jilin as a production base had passed the IATF16949 quality management system audit, IATF certificate number: 0362398. Its quality control requirements were set according to IATF16949:2016 "Quality Management System Requirements for Automobile Production Parts and Service Parts Organization", "Compulsory Product Certification Implementation Rules-Automobile", "Compulsory Product Certification Implementation Rules-Automotive Interior" and other requirements to perform quality control.

The former business maintained quality control standards and documentation, including a first-level quality control document "Quality Manual", and 166 quality control standards and procedures relating to management support processes, product birth process, mass production process, and sales service process.

Its supplier quality management included carrying out quality review of its supplier access, process optimization, elimination and exit support through supplier system audit, product audit, process audit, and other functions.

**Material Contracts**

Set forth below is a summary of all material agreements to which our former subsidiaries were a party entered into within the preceding three fiscal years. These agreements were obligations of the subsidiaries that were sold as part of the Disposal. The Company believes that upon the closing of the Disposal, it was released from any direct or indirect obligations under these agreements, the liabilities of which were transferred to the purchaser. However, there can be no assurance that the Company will not be subject to future claims in connection with these historical agreements.

***Loan Agreement with Yantai Guofeng Investment Holdings Groups Co., Ltd.***

On December 9, 2019, Shandong Baoya entered into a loan agreement Yantai Guofeng Investment Holdings Group Co., LTD ("Yantai Guofeng"), an affiliate of the Company. The loan is part of a broader initiative supported by local government entities to promote new energy vehicle projects in the region. The principal of the loan is RMB1.5 billion (approximately US$205.50 million), to be paid in specific installments based on project milestones, including an initial RMB450 million (approximately US$61.65 million) to facilitate the mixed capital increase project for FAW Jilin and remaining RMB1.05 billion (approximately US$143.85 million) to be paid pursuant to the capital increase schedules. The loan has a 6.5% annual interest rate, with repayment obligations structured based on the progress and outcomes of the vehicle production project. Additionally, the agreement includes clauses for automatic termination under certain conditions, such as failure to meet certain project-related development commitments. Pursuant to the loan agreement, if Shandong Baoya meets certain development conditions, part of the loan could be waived and converted to a government subsidy, including interest on such portion. By December 31, 2021, a total of US$104.12 million (RMB760 million) of the principal amount has been converted to government subsidies because the initial conversion criteria have been satisfied. The remaining criteria include, but are not limited to, achieving the first phase of mass production and reaching the prescribed production and sales numbers of vehicles. For the year ended December 31, 2025, no principal amount has been converted to government subsidies. As of April 30, 2026, the outstanding principals and interests were US$156.00 Million. As of December 31, 2025, Shandong Baoya was notified that Yantai Guofeng has transferred its creditor's rights in Shandong Baoya to Yantai Public Transportation Co., Ltd ("Yantai Trans"). On February 10, 2025, Yantai Trans filed an application for property preservation with the Yantai Intermediate Court, which resulted in the sealing up of Shandong Baoya's land use right. The net value of the sealed up land use right was US$26.18 million as of December 31, 2025.

The loan agreement remained in force and both parties continued to uphold its terms as of the date of this annual report. This agreement was an obligation of Shandong Baoya, which was sold as part of the Disposal. See "*Item 13. Defaults, Dividend Arrearages and Delinquencies*", which are included in this annual report for more details of the loan agreement.

***Loan Agreements between FAW Finance Co. Ltd., China FAW Corporation Limited and FAW Jilin Automobile Co., Ltd., dated January 29, 2019, May 20, 2019, August 29, 2019, October 29, 2019, November 27, 2019, December 13, 2019, respectively, Loan Extension Agreement, dated January 23, 2020 and the Supplementary Agreement to the Loan Agreements dated on May 20, 2020***

FAW Jilin, China FAW Corporation Limited (the minority shareholder of FAW Jilin) and its affiliate, FAW Finance Co., Ltd have entered into a series of working capital loan agreements in the amount of RMB700 million (approximately US$95.90 million) on January 29, 2019, in the amount of RMB350 million (approximately US$47.95 million) on May 20, 2019, in the amount of RMB150 million (approximately US$20.55 million) on August 29, 2019, in the amount of approximately RMB270 million (approximately US$36.95 million) on October 29, 2019, in the amount of approximately RMB188 million (approximately US$25.73 million) on November 27, 2019, in the amount of approximately RMB87.4 million (approximately US$11.98 million) on December 13, 2019, each of the loans bears an annual interest rate of 3.915% with a term of one year. On January 23, 2020, the loan in the amount of RMB 700 million was extended for 12 months. On May 20, 2020, the parties have entered into a supplement agreement to the loan agreements, pursuant to which, FAW Jilin agreed to make four installment payments of US$39.44 million (RMB 287.87 million), each for the remaining principal balance and pledged certain land use rights, buildings, machinery and equipment, mold and tooling and other logistic equipment of FAW Jilin. FAW Jilin failed to make the payments on November 1, 2022, November 1, 2023, November 1, 2024, and November 1, 2025. As of April 30, 2026, the aggregate outstanding principals and interests under such loans were US$206.97 million.

These agreements were obligations of FAW Jilin, which was sold as part of the Disposal. See "*Item 13. Defaults, Dividend Arrearages and Delinquencies*" for more details and current status of the loan agreements.

***Principal Creditor's Rights and Maximum Mortgage Contract between FAW Finance Co. Ltd. and FAW Jilin Automobile Co., Ltd., dated May 20, 2019 and Maximum Mortgage Contract between FAW Finance Co. Ltd. and FAW Jilin Automobile Co., Ltd., dated November 21, 2019***

In connection with the foregoing loan agreements among FAW Jilin, China FAW Corporation Limited (the minority shareholder of FAW Jilin), and its affiliate, FAW Finance Co., Ltd., FAW Jilin and FAW Finance Co., Ltd. entered into a principal creditor's rights and maximum mortgage contract on May 20, 2019, and a maximum mortgage contract on November 21, 2019. Pursuant to this, FAW Jilin has pledged land use rights and property to secure creditor's rights in the amount of approximately US$58.94 million, with a creditor's rights determination period from May 21, 2019 to May 21, 2024. Additionally, it pledged its equipment to secure creditor's rights in the amount of approximately US$19.29 million, with a creditor's rights determination period from June 1, 2019 to June 1, 2024.

These agreements related to obligations of FAW Jilin, which was sold as part of the Disposal. See "*Item 13. Defaults, Dividend Arrearages and Delinquencies*" for more details and current status of these agreements. Also see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Business and Industry - We are in breach of certain loan agreements and may become in breach of other loan agreements in the future. If lenders enforce the pledge on certain of our properties, our business operation may be disrupted, and our business, financial condition, results of operations and prospects could be materially and adversely affected."*

***Mortgage Guarantee Contract of Building and Land among Xiangyang Yazhi, Lender A and Lender B, dated June 20, 2023, and Mortgage Guarantee Contract of Equipment among Xiangyang Yazhi, Lender A and Lender B, dated June 20, 2023***

In connection with two loan agreements and related promissory note, commitment letter, creditor's rights investment agreement, and guarantee letters among Xiangyang Yazhi, Lender A, and Lender B, Xiangyang Yazhi, Lender A, and Lender B entered into a mortgage guarantee contract for building and land dated June 20, 2023, and a mortgage guarantee contract for equipment dated June 20, 2023, respectively. Pursuant to the mortgage agreements, Xiangyang Yazhi pledged its machinery and equipment, a building with an area, and a parcel of land use right, located in Xiangyang City, China, to the lenders to secure the loans with the principal amount of approximately US$99.33 million (RMB 694.60 million).

These agreements related to obligations of Xiangyang Yazhi, which was sold as part of the Disposal. See "*Item 13. Defaults, Dividend Arrearages and Delinquencies*" for more details and current status of these agreements. Also see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Business and Industry - We are in breach of certain loan agreements and may become in breach of other loan agreements in the future. If lenders enforce the pledge on certain of our properties, our business operation may be disrupted, and our business, financial condition, results of operations and prospects could be materially and adversely affected" and "We may face significant challenges in securing on acceptable terms for a substantial part of the government grants, loans, and other incentives for which we apply. We have not been, and may continue to be, unable to convert any existing loans into government grants and subsidies we have applied for. We have failed to meet certain conditions of our existing loans and may not be able to meet the conditions of other loans. This poses a material risk to our financial stability and may materially and adversely impact our business, financial results and future prospects."*

***Token Staking Agreement between Company and EdgeAI Foundation, dated January 6, 2026***

On January 6, 2026, the Company entered into a token staking agreement with the EdgeAI Foundation (the "Foundation"). Pursuant to the agreement, the Company staked a specified quantity of EdgeAI native tokens into a smart contract designated by the Foundation for a fixed lock-up period of 12 months. The accrual of staking rewards under this arrangement is scheduled to formally commence in April 2026. Under the terms of the agreement, the Company is entitled to receive a floating annualized yield ranging from 3.5% to 8%, payable in EdgeAI tokens on a per-block or monthly basis. The Foundation does not guarantee any fixed return; rather, actual yields are determined solely by the algorithmic, on-chain mechanics of the EdgeAI mainnet. The staked tokens are programmatically locked on the EdgeAI mainnet and will automatically unlock upon the expiration of the 12-month term, unless the parties execute a written renewal agreement. Additionally, the agreement may be terminated prior to its expiration upon mutual written consent. The Foundation also reserves the right to suspend the staking arrangement in the event the Company becomes subject to certain legal or regulatory restrictions.

The token staking agreement related to our new business. See "Item 4. Information on the Company—A. History and Development of the Company" for more details of our new business. Also see "*Item 3. Key Information-D. Risk Factors-Risks Related to Our Business and Industry - We face risks associated with our digital asset staking operations, including the risk of smart contract vulnerabilities on the EdgeAI mainnet, floating yield volatility, and potential regulatory restrictions, which could materially and adversely affect our business, financial condition, results of operations and prospects.*"

**Historical Seasonality of the Former Business**

There were certain seasonal fluctuations in China's new energy vehicle sales market. Generally, September to December was the peak sales season, and January to February was the off-season. The seasonality of our former products was in line with the situation in China's new energy vehicle market.

**Competition in the Former Automotive Business**

The automotive industry in which our former business operated was and continues to be intense and evolving. The primary competitive factors in that market included pricing, technological innovation, vehicle performance, quality and safety, among others. This competitive landscape was a significant factor in the Board's decision to approve the Disposal.

Our former business faced competition from a wide range of domestic and international auto manufacturers, including traditional car companies, joint ventures, and other NEV manufacturers such as Nio Inc., Li Auto Inc., and Xpeng Inc. Most of these competitors were better capitalized and had greater financial resources. The highly competitive nature of the auto industry could have negatively affected the market position and financial performance of our former business. The discussion of competition in the automotive industry is not relevant to our current business in technology and digital asset management.

**Data Privacy Risks Related to Former Operations**

Our former business involved collecting and retaining certain internal and customer data. It also maintained information about various aspects of its operations as well as regarding its employees. The integrity and protection of customer, employee and company data was critical to that business. Customers and employees of that business expected that their personal information would be adequately protected. The business was required by applicable PRC laws to keep such information confidential and take adequate security measures to safeguard it. While these operations have been disposed of, there can be no assurance that the Company will not face residual claims or liabilities related to the data handling practices of its former subsidiaries.

The PRC Criminal Law, as amended by its Amendment 7 (effective on February 28, 2009) and Amendment 9 (effective on November 1, 2015), prohibits institutions, companies and their employees from selling or otherwise illegally disclosing a citizen's personal information obtained in performing duties or providing services or obtaining such information through theft or other illegal ways. On November 7, 2016, the Standing Committee of the National People's Congress, or the SCNPC, issued the Cyber Security Law of the PRC, which became effective on June 1, 2017. Pursuant to the Cyber Security Law of the PRC, network operators must not, without users' consent, collect their personal information, and may only collect users' personal information necessary to provide their services. Providers are also obliged to provide security maintenance for their products and services and shall comply with provisions regarding the protection of personal information as stipulated under the relevant laws and regulations.

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

On August 20, 2021, the SCNPC promulgated the Personal Information Protection Law, which integrates the scattered rules with respect to personal information rights and privacy protection and took effect in November 2021. The Personal Information Protection Law aims at protecting the personal information rights and interests, regulating the processing of personal information, ensuring the orderly and free flow of personal information in accordance with the law and promoting the reasonable use of personal information. The Personal Information Protection Law applies to the processing of personal information within China, as well as certain personal information processing activities outside China, including those for the provision of products and services to natural persons within China or for the analysis and assessment of acts of natural persons within China. As a result, our overseas subsidiaries could potentially become subject to the Personal Information Protection Law. Processors processing personal information exceeding the threshold to be set by the relevant authorities and CIIOs are required to store, within the territory of the PRC, all personal information collected and produced within the PRC. In addition, the Personal Information Protection Law imposes pre-approval and other requirements for any cross-border data transfer by PRC entities. Given the Personal Information Protection Law is still in its infancy, there are uncertainties with respect to its interpretation and application.

The PRC regulatory requirements regarding cybersecurity are evolving. For instance, various regulatory bodies in China, including the CAC, the Ministry of Public Security and the State Administration for Market Regulation (the "***SAMR***"), have enforced data privacy and protection laws and regulations with varying and evolving standards and interpretations. The Measures for Cybersecurity Review (2021 version) issued by the CAC on November 16, 2021, which became effective on February 15, 2022, includes the following key changes:

● companies who are engaged
 in data processing are also subject to the regulatory scope;

● the CSRC is included as
 one of the regulatory authorities for purposes of jointly establishing the state cybersecurity review working mechanism;

● the operators of critical
 information infrastructure and online platform operators holding more than one million users/users' (which is to be further
 specified) individual information and seeking a listing outside China shall file for cybersecurity review with the Cybersecurity
 Review Office; and

● the risks of core data,
 material data or large amounts of personal information being stolen, leaked, destroyed, damaged, illegally used or transmitted to
 overseas parties and the risks of critical information infrastructure, core data, material data or large amounts of personal information
 being influenced, controlled or used maliciously shall be collectively taken into consideration during the cybersecurity review process.

On July 7, 2022, the CAC published the Measures for Security Assessment of Cross-border Data Transfers, which became effective on September 1, 2022 and specifies the circumstances in which data processors providing data outbound shall apply for outbound data transfer security assessment with the Cyberspace Administration, including, among others, the data processor provide important information outbound. On March 22, 2024, the CAC issued Provisions on Facilitating and Regulating Cross-border Data Flows, which provided that data handlers shall identify and declare important data in accordance with relevant rules. In accordance with these provisions, data handlers who provide data abroad, and meet any of the following conditions, are required to declare the outbound data transfer security assessment to the national cyberspace administration authority through the provincial-level cyberspace administration authority where the data handlers are located: (i) critical information infrastructure operators providing personal information or important data abroad; (ii) data handlers other than critical information infrastructure operator providing important data abroad or cumulatively providing abroad personal information without any sensitive personal information of more than one million individuals or sensitive personal information of more than 10,000 individuals since January 1 of the current year. The assessment results of the data export are valid for three years. In addition, these provisions provide certain exemptions from obligations under the circumstances of cross-border data transfer, including, among others, the obligations for declaring data security assessment, concluding a standard contract for provisions of personal information abroad or passing the certification for personal information protection. On December 16, 2022, the National Information Security Standardization Technical Committee issued the Practical Guidance on Cybersecurity Standard - the Regulations on Safety Verification in Cross-border Personal Information Processing, which stipulates personal information protection obligations of personal information processor and foreign recipient. However, there remain uncertainties as to the interpretation and application of such measures, if we are deemed to be a data processor providing important data outbound, we could be subject to the outbound data security assessment with national Cyberspace Administration as mentioned above.

On December 8, 2022, the MIIT issued the Administrative Measures for Data Security in the Field of Industry and Information Technology (Trial), or the Data Security Measures in the IT Field, which stipulates that all businesses which handle data in the field of industry and informatization in China are required to categorize such information as "ordinary," "important" or "core" and businesses processing "important" or "core" data shall comply with certain filing and reporting obligations. Data in the field of industry and informatization includes industrial data, telecoms data and radio data. Data handlers in the field of industry and informatization shall file their catalogues of important data and core data with the local industrial regulatory authorities for the record, shall follow the principles of legality and legitimacy in collecting data and shall not steal or collect data by other illegal means. On October 9, 2023, the MIIT further issued the Implementing Rules for the Risk Assessment of Data Security in the Field of Industry and Information Technology (Trial Implementation) (Draft for Comments), pursuant to which, processors of important data and core data shall complete a data security risk assessment at least once a year under the principles of timeliness, objectivity and effectiveness, produce a true, complete and accurate assessment report, and be held accountable for the assessment results. We face uncertainties as to whether any of our data will be classified as "important" or "core" data and, if so classified, whether any such data can be shared with our overseas subsidiaries.

On June 10, 2021, the SCNPC promulgated the PRC Data Security Law, which took effect in September 2021. The PRC Data Security Law imposes data security and privacy obligations on entities and individuals carrying out data activities, and introduces a data classification and hierarchical protection system based on the importance of data in economic and social development, and the degree of harm it will cause to national security, public interests, or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked, illegally acquired or used. The PRC Data Security Law also provides for a national security review procedure for data activities that may affect national security and imposes export restrictions on certain data an information.

As of the date of this annual report, we have not been involved in any investigations on cybersecurity or privacy and data security initiated by related governmental regulatory authorities, and we have not received any inquiry, notice, warning, or sanction in such respect. However, as uncertainties remain regarding the interpretation and implementation of these laws and regulations, we cannot assure you that we will comply with such regulations in all respects and we may be ordered to rectify or terminate any actions that are deemed illegal by regulatory authorities. We may also become subject to fines and/or other sanctions which may have material adverse effect on our business, operations and financial condition.

**Historical Insurance Coverage**

Our former business maintained vehicle insurance, property insurance, machinery breakdown insurance, inventory insurance, and real property insurance. We considered its insurance coverage sufficient for its business operations in China.

**Historical Environmental Matters**

The main environmental protection facilities of our former business were: two-chamber RTO thermal incineration, Venturi wet paint mist purification, low-nitrogen combustion, filter tube dust removal, bag filter dust removal, adsorption + two-chamber RTO thermal incineration, water spin wet paint mist purification, painting VOCS online monitoring, comprehensive sewage treatment station of sewage discharge unit, online monitoring of its sewage station, among other matters.

We believe that our former business was, during the periods covered by this report, in compliance with all current environmental protection requirements under PRC laws and regulations. In the event of any changes in the PRC laws and/or regulations and/or government policies on environmental protection and more stringent requirements are imposed on the Company, we may have to incur extra costs and expenses to comply with such requirements.

**Legal Proceedings**

From time to time, we may become involved in legal proceedings or be subject to claims arising in the ordinary course of our business. Our former subsidiary, FAW Jilin, had significant litigations in contractual disputes in court. The following table sets forth the current legal proceedings that we are involved, which, if determined adversely to us, would individually or in the aggregate have a material adverse effect on our business, financial condition or results of operations. It is important to distinguish between proceedings against the Company directly and proceedings against its former subsidiaries. The liabilities and obligations related to proceedings solely against the former subsidiaries (e.g., FAW Jilin, Shandong Baoya) are believed to have been transferred to the purchaser as part of the Disposal. In addition, in March 2026, the purchaser voluntarily provided an explicit undertaking to indemnify and satisfy liabilities arising from legal proceedings relating solely to the former subsidiaries. Based on such undertaking and the terms of the Disposal, management believes that the legal separation of such risks from the former parent company has been further substantiated. However, proceedings where Digital Currency X Technology Inc. is a named defendant remain our direct obligation.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Plaintiff** | **Defendant** | **Cause of Action** | **Amount in**<br> **Controversy (USD)** | **Name of the Court/Arbitration Commission** | **Current Status** |
| 1 | FAW Jilin | Jilin Honghao Renewable Resources Materials Recycling Co., Ltd., and Liu Changhong | Contractual Dispute | 307993.96 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 2 | FAW Jilin | Jiangsu Ante Zhixing New Energy Automobile Sales Co., Ltd. | Contractual Dispute | 820964.52 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 3 | FAW Mould Manufacturing Co., LTD | FAW Jilin | Contractual Dispute | 40615538.87 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 4 | Thyssenkrupp Presta Fawer(Changchun) Co., Ltd. | FAW Jilin | Contractual Dispute | 756564.90 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 5 | FAW Logistics Co. LTD | FAW Jilin | Contractual Dispute | 2850622.40 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 6 | Changchun FAW International Logistics Co. LTD | FAW Jilin | Contractual Dispute | 1025723.76 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 7 | FAW Logistics (Changchun Lushun) Storage and Transportation Co., LTD | FAW Jilin | Contractual Dispute | 2872936.45 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 8 | Changchun Jiya Warehousing Co., Ltd. | FAW Jilin | Contractual Dispute | 2243428.50 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 9 | Changchun Jinhe Transportation Equipment Co., Ltd. | FAW Jilin | Contractual Dispute | 748337.20 | Jilin High-Tech Industrial Development Zone People's Court | Under enforcement |
| 10 | Ningbo Siwei'er Industrial Co., Ltd. | FAW Jilin | Contractual Dispute | 502191.04 | Jilin High-Tech Industrial Development Zone People's Court | Trial phase |
| 11 | Jiangsu Zhongqi Boyue Vehicle Technology Co. Ltd. | Shandong Baoya | Contractual Dispute | 288856.16 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 12 | China Automotive Data (Tianjin) Co., Ltd. | Shandong Baoya | Contractual Dispute | 636195.82 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 13 | Zhejiang Mould Factory | Shandong Baoya | Contractual Dispute | 968746.19 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 14 | Xingyu Auto Parts INC. | Shandong Baoya | Contractual Dispute | 337682.86 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 15 | Changzhou Kaide Auto Parts Co., Ltd. | Shandong Baoya | Contractual Dispute | 486193.53 | Yantai Economic and Technological Development Zone People's Court | Trial phase |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 16.0 | Jiangxi Dekai Auto Lamp Co., Ltd. | Shandong Baoya | Contractual Dispute | 1113664.76 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 17.0 | Zhengzhou Dexin Automobile Parts Co. Ltd. | Shandong Baoya | Contractual Dispute | 217321.36 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 18.0 | Jiangsu Wosu Automobile Parts Co. Ltd. | Shandong Baoya | Contractual Dispute | 487909.51 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 19.0 | Qinghe County Xinlian Rubber and Plastic Products Factory | Shandong Baoya | Contractual Dispute | 208584.46 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 20.0 | Qingdao Branch of Changzhou Fusen Automobile Parts Co. Ltd. | Shandong Baoya | Contractual Dispute | 452445.98 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 21.0 | Jingtai Investment Co., Ltd., Dezhou Economic and Technological Development Zone | Dezhou Yarui New Energy Automobile Co., Ltd. | Contractual Dispute | 5386015.26 | Yantai Economic and Technological Development Zone People's Court | Under enforcement |
| 22.0 | Yantai Trans | Shandong Baoya | Contractual Dispute | 105861492.04 | Yantai Economic and Technological Development Zone People's Court | Under enforcement |
| 23.0 | Jiangsu Tonghe Intelligent Equipment Co., Ltd. | Shandong Baoya | Contractual Dispute | 395111.61 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 24.0 | Yantai Economic and Technological Development Zone Investment Promotion Bureau | Shandong Baoya | Contractual Dispute | 31656912.53 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 25.0 | Xiangyang High-Tech State-Owned Capital Investment and Operation Group Co., Ltd., Xiangyang High-Tech Technology Co., Ltd. | Xiangyang Yazhi New Energy Automobile Co., Ltd. | Security Interest | 135236978.91 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 26.0 | Xiangyang High-Tech State-Owned Capital Investment and Operation Group Co., Ltd., Xiangyang High-Tech Technology Co., Ltd. | Xiangyang Yazhi New Energy Automobile Co., Ltd.,Shandong Baoya | Contractual Dispute | 135970785.09 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 27.0 | Shandong Baoya | Hunan Taide Automobile Air Conditioning Co., Ltd., Shanxi Taide Automobile Air Conditioning Co., Ltd. | Contractual Dispute | 443387.48 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 28.0 | Shandong Baoya | Shanghai Youhang Automotive Electronics Co., Ltd., Shenzhen Youjia Innovation Technology Co., Ltd. | Contractual Dispute | 283136.23 | Yantai Economic and Technological Development Zone People's Court | Trial phase |
| 29.0 | Greentree Financial Group, inc. | Digital Currency X Technology Inc., and Equiniti Trust Company, llc, f/k/a american stock transfer & trust company, llc | Contractual Disputes | USD1,556,235.95<br> and 441,549 shares | United States District Court<br> Southern District of New York | Discovery and Counterclaim Service |
| 30.0 | Safety Shot inc. f/k/a jupiter wellness inc. | Digital Currency X Technology Inc., and Equiniti Trust Company, llc, f/k/a american stock transfer & trust company, llc | Contractual Disputes | USD559,721.74<br> and 180,382 shares | United States District Court<br> Southern District of New York | Discovery |
| 31.0 | L&H, INC. | Digital Currency X Technology Inc., and Equiniti Trust Company, llc, f/k/a american stock transfer & trust company, llc | Contractual Disputes | USD1,697,289.22<br> and 507,140 shares | United States District Court<br> Southern District of New York | Discovery |
| 32.0 | Kin Chung Wong | Digital Currency X Technology Inc., and Equiniti Trust Company, llc, f/k/a american stock transfer & trust company, llc | Contractual Disputes | USD2,055,327.97<br> and 557,849 shares | Supreme Court of the State of New York | Discovery |

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Despite the listing of status for items above, future events and outcomes may be different than currently reasonably expected by the Company. Amounts in controversy are converted into US dollar using the exchange rate as of December 31, 2025 (i.e., 1 USD = RMB 6.9931).

The Company accrued the expected amount of loss for Case No.1-7, No.9 and No.24-27.

**Regulations**

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

***Regulations and Approvals Covering the Manufacturing of New Energy Vehicles***

The National Development and Reform Commission (the "**NDRC**") promulgated the Provisions on Administration of Investment in Automobile Industry (the "**Investment Provisions**"), effective on January 10, 2019, according to which enterprises are encouraged to, through equity investment and cooperation in production capacity, enter into strategic cooperation relationships, carry out joint research and development of products, organize manufacturing activities jointly and increase industrial concentration. The advantageous resources in production, high learning, research, application and other areas shall be integrated and core enterprises in the automobile industry shall be propelled to form industrial alliance and industrial consortium.

Pursuant to the Regulations on the Administration of Newly Established Pure Electric Passenger Vehicle Enterprises (the "**New Electric Passenger Vehicle Enterprise Regulations**") effective on July 10, 2015, before a vehicle can be added to the Announcement of Vehicle Manufacturers and Products (the "**Manufacturers and Products Announcement**") issued by the Ministry of Industry and Information Technology (the "**MIIT**"), a procedure required by law for vehicles to be approved for manufacture and sale in China, the vehicle must meet the applicable requirements set forth in relevant laws and regulations. Such relevant laws and regulations include, among others, the Administrative Rules on the Admission of New Energy Vehicle Manufacturers and Products (the "**MIIT Admission Rules**"), effective on July 1, 2017 and amended on July 24, 2020, and the Administrative Rules on the Admission of Passenger Vehicles Manufacturer and Products, which became effective on January 1, 2012, and pass the review by the MIIT. NEVs that have entered into the Manufacturers and Products Announcement are required to undergo regular inspections every three (3) years by the MIIT so that the MIIT may determine whether the vehicles remain qualified to stay in the Manufacturers and Products Announcement. According to the MIIT Admission Rules, in order for vehicles to enter into the Manufacturers and Products Announcement, the vehicles must satisfy certain conditions, including, among others, meeting certain standards set out therein, meeting other safety and technical requirements specified by the MIIT, and passing inspections conducted by a state-recognized testing institution. Once such conditions for vehicles are met and the application has been approved by the MIIT, the qualified vehicles will be published in the Manufacturers and Products Announcement by the MIIT. Where any new energy vehicle manufacturer manufactures or sells any model of a new energy vehicle without the prior approval of the competent authorities, including being published in the Manufacturers and Products Announcement by the MIIT, it may be subject to penalties, including fines, forfeiture of any illegally manufactured and sold vehicles and spare parts and revocation of its business licenses.

***Regulations on Compulsory Product Certification***

Under the Administrative Regulations on Compulsory Product Certification which was promulgated by the General Administration of Quality Supervision, Inspection and Quarantine (the "**QSIQ**", which has merged into the State Administration for Market Regulation, or the SAMR) on July 3, 2009, became effective on September 1, 2009 and was amended on September 29, 2022, and the List of the First Batch of Products Subject to Compulsory Product Certification which was promulgated by the QSIQ in association with the State Certification and Accreditation Administration Committee on December 3, 2001 and became effective on May 1, 2002, SAMR, as the successor of QSIQ, is responsible for the regulation and quality certification of automobiles. Automobiles and parts and components must not be sold, exported or used in operating activities until they are certified by designated certification authorities of the PRC as qualified products and granted certification marks.

***Regulations relating to Parallel Credits Policy on Vehicle Manufacturers and Importers***

On September 27, 2017, the MIIT, the MOF, the MOFCOM, the General Administration of Customs of PRC and the SAMR jointly promulgated the Measure for the Parallel Administration of the Corporate Average Fuel Consumption and New Energy Vehicle Credits of Passenger Vehicle Enterprises (the "**Parallel Credits Measure**"), which were most recently amended on June 29, 2023 and took effect on August 1, 2023. Under the Parallel Credits Measure, each of the vehicle manufacturers and vehicle importers above a certain scale is required to, among other things, maintain its new energy vehicles credits, or the NEV credits, and corporate average fuel consumption credits, above zero, regardless of whether NEVs or ICE vehicles are manufactured or imported by it, and NEV credits can be earned only by manufacturing or importing NEVs. Therefore, NEV manufacturers will enjoy preferences in obtaining and calculating NEV credits.

NEV credits are equal to the aggregate actual scores of a vehicle manufacturer or a vehicle importer minus its aggregate targeted scores. According to the Parallel Credits Measure, the actual scores shall be calculated by multiplying the score of each new energy vehicle model, which depends on various metrics such as the driving range, battery energy efficiency and the rated power of fuel cell systems, and is calculated based on formula published by MIIT (in the case of battery electric vehicle, the NEV credit of each vehicle is equal to (0.0034×Vehicle Mileage+0.2) x Mileage Adjustment Coefficient x Battery Energy Density Adjustment Coefficient x Electricity Consumption Coefficient), by the respective production or import volume, while the targeted scores shall be calculated by multiplying the annual production or import volume of traditional ICEs of a vehicle manufacturer or importer by the NEV credit ratio set by the MIIT. The NEV credit ratios are 14%, 16% and 18% for the years of 2021, 2022 and 2023, respectively, increasing from 10% and 12% for 2019 and 2020, respectively. Excess positive NEV credits are tradable and may be sold to other enterprises through a credit management system established by the MIIT while excess positive corporate average fuel consumption credits can only be carried forward or transferred among related parties. Negative NEV credits can be offset by purchasing excess positive NEV credits from other manufacturers or importers.

According to these measures, the requirements on the NEV credits shall be considered for the entry approval of passenger vehicle manufacturers and products by the regulators. If a passenger vehicle enterprise fails to offset its negative credits, its new products, if the fuel consumption of which does not reach the target fuel consumption value for a certain vehicle models as specified in the Evaluation Methods and Indicators for the Fuel Consumption of Passenger Vehicles, will not be listed in the Announcement of the Vehicle Manufacturers and Products issued by the MIIT, or will not be granted the compulsory product certification, and the vehicle enterprises may be subject to penalties according to the relevant rules and regulations.

***Regulations on Automobile Sales***

Pursuant to the Administrative Measures on Automobile Sales promulgated by the Ministry of Commerce, or the MOFCOM, on April 5, 2017, which became effective on July 1, 2017, automobile suppliers and dealers are required to file with relevant authorities through the information system for the national automobile circulation operated by the competent commerce department within ninety (90) days after the receipt of a business license. Where there is any change to the information concerned, automobile suppliers and dealers must update such information within thirty (30) days after such change.

***Regulations on the Recall of Defective Automobiles***

On October 22, 2012, the State Council promulgated the Administrative Provisions on Defective Automotive Product Recalls, which became effective on January 1, 2013 and were amended on March 2, 2019. The product quality supervision department of the State Council is responsible for the supervision and administration of recalls of defective automotive products nationwide. Pursuant to the administrative provisions, manufacturers of automobile products are required to take measures to eliminate defects in products they sell. A manufacturer must recall all defective automobile products. Failure to recall such products may result in an order to recall the defective products from the quality supervisory authority of the State Council. If any operator conducting sales, leasing, or repair of vehicles discovers any defect in automobile products, it must cease to sell, lease or use the defective products and must assist manufacturers in the recall of those products. Manufacturers must recall their products through publicly available channels and publicly announce the defects. Manufacturers must take measures to eliminate or cure defects, including rectification, identification, modification, replacement or return of the products. Manufacturers that attempt to conceal defects or do not recall defective automobile products in accordance with relevant regulations will be subject to penalties, including fines, forfeiture of any income earned in violation of law and revocation of licenses.

Pursuant to the Implementation Rules on the Administrative Provisions on Defective Automotive Product Recalls, which became effective on January 1, 2016 and was latest amended on October 23, 2020, if a manufacturer is aware of any potential defect in its automobiles, it must investigate in a timely manner and report the results of such investigation to the SAMR. Where any defect is found during the investigations, the manufacturer must cease to manufacture, sell, or import the relevant automobile products and recall such products in accordance with applicable laws and regulations.

On November 23, 2020, SAMR issued the Circular on Further Improving the Regulation of Recall of Automobile with Over-the-Air (OTA) Technology, pursuant to which automobiles manufacturers that provide technical services through OTA are required to complete filing with the SAMR and those who have provided such services through OTA must complete such filing before December 31, 2020. In addition, if an automaker uses OTA technology to eliminate defects and recalls its defective products, it must make a recall plan and complete a filing with the SAMR.

***Regulations on Product Liability***

Pursuant to the Product Quality Law of the PRC, promulgated on February 22, 1993 and latest amended on December 29, 2018, a manufacturer is prohibited from producing or selling products that do not meet applicable standards and requirements for safeguarding human health and ensuring human and property safety. Products must be free from unreasonable dangers threatening human and property safety. Where a defective product causes physical injury to a person or property damage, the aggrieved party may make a claim for compensation from the producer or the seller of the product. Producers and sellers of non-compliant products may be ordered to cease the production or sale of the products and could be subject to confiscation of the products and/or fines. Earnings from sales in contravention of such standards or requirements may also be confiscated, and in severe cases, an offender's business license may be revoked.

***Regulations on Consumer Protection***

In October 1993, the Standing Committee of the National People's Congress (the "**SCNPC**") promulgated the Law of the PRC on the Protection of the Rights and Interests of Consumers, or the PRC Consumer Protection Law, which became effective on January 1, 1994 and was amended on March 15, 2014. Under the PRC Consumer Protection Law, a business operator providing a commodity or service to a consumer is subject to a number of requirements. Business operators may be subject to civil liabilities for failing to fulfill those obligations, including ceasing infringement, restoring the consumer's reputation, eliminating the adverse effects suffered by the consumer, and offering an apology and compensation for any losses incurred. Further, they may also be subject to penalties for the infraction of these obligations, including issuance of a warning, confiscation of any illegal income, imposition of a fine, an order to cease business operation, revocation of its business license or imposition of criminal liabilities under circumstances that are specified in laws and statutory regulations.

***Regulations on Data Security and Privacy Protection***

On 1 July 2015, the SCNPC promulgated the PRC National Security Law, which came into effect on the same day. The PRC National Security Law provides that the state shall safeguard the sovereignty, security and cyber security development interests of the state, and that the state shall establish a national security review and supervision system to review, among other things, foreign investment, key technologies, internet and information technology products and services, and other important activities that are likely to impact the national security of the PRC. In August 2015, the SCNPC promulgated the Ninth Amendment to the PRC Criminal Law, which became effective in November 2015 and amended the standards of crime of infringing citizens' personal information and reinforced the criminal culpability of unlawful collection, transaction, and provision of personal information.

In November 2016, the SCNPC promulgated the Cybersecurity Law of the PRC (the "**Cybersecurity Law**"), which became effective on June 1, 2017. The Cybersecurity Law reaffirms the basic principles and requirements specified in other existing laws and regulations on personal data protection, such as the requirements on the collection, use, processing, storage and disclosure of personal data. Any violation of the Cybersecurity Law may subject the operators to warnings, fines, confiscation of illegal gains, revocation of licenses, cancellation of filings, shutdown of websites or criminal liabilities. Further, on May 28, 2020, the National People's Congress (the "NPC") approved the PRC Civil Code, which came into effect on January 1, 2021, pursuant to which the collection, storage, use, process, transmission, provision and disclosure of personal information should follow the principles of legitimacy, properness and necessity.

The SAMR and Standardization Administration issued the Standard of Information Security Technology - Personal Information Security Specification (2020 edition), which took effect in October 2020. Pursuant to such standard, any entity or person who has the authority or right to determine the purposes for and methods of using or processing personal information is considered as a personal data controller. Such personal data controller is required to collect information in accordance with applicable laws, and prior to collecting such data, the information provider's consent is required.

On November 28, 2019, the Secretary Bureau of the CAC, the General Office of the MIIT, the General Office of the Ministry of Public Security and the General Office of the SAMR jointly issued the Measures for Determining the Illegal Collection and Use of Personal Information through Mobile Applications, which aims to provide reference for supervision and administration departments and provide guidance for mobile applications operators' self-examination and self-correction and social supervision by netizens, and further elaborates the forms of behavior constituting illegal collection and use of the personal information through mobile applications including: (i) failing to publish the rules on the collection and use of personal information; (ii) failing to explicitly explain the purposes, methods and scope of the collection and use of personal information; (iii) collecting and using personal information without the users' consent; (iv) collecting personal information unrelated to the services they provide and beyond the necessary principle; (v) providing personal information to others without the users' consent; (vi) failing to provide the function of deleting or correcting the personal information according to the laws or failing to publish information such as ways of filing complaints and reports.

On June 10, 2021, the SCNPC promulgated the PRC Data Security Law (the "**Data Security Law**"), which took effect in September 2021. The Data Security Law sets forth data security and privacy related compliance obligations on entities and individuals carrying out data related activities. The Data Security Law also introduces a data classification and layered protection system based on the importance of data and the degree of impact on national security, public interests or legitimate rights and interests of individuals or organizations when such data is tampered with, destroyed, leaked or illegally acquired or used. In addition, the Data Security Law provides a national security review procedure for those data activities that may affect national security, and imposes export restrictions on certain data and information. According to the PRC National Security Law, the state shall establish institutions and mechanisms for national security review and regulation, and conduct national security review on certain matters that affect or may affect PRC national security, such as key technologies and IT products and services. Furthermore, the Data Security Law also provides that any organization or individual within the territory of the PRC shall not provide any foreign judicial body or law enforcement body with any data without the approval of the competent PRC governmental authorities. In early July 2021, regulatory authorities in China launched cybersecurity investigations with regard to several China-based companies that are listed in the United States.

In July 2021, 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 Severely Cracking Down on Illegal Securities Activities According to Law (the "**Opinions**"), which were 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.

On July 30, 2021, the MIIT issued the Opinion on Strengthening the Access Administration of Intelligent Connected Vehicles Manufacturing Enterprises and Their Products, or the Access Administration Opinion, which provided responsibilities of intelligent connected vehicles manufacturing enterprises, and required such enterprises to strengthen the management of vehicle data security, cyber security, software updates, function safety and intended function safety. Furthermore, the Access Administration Opinion stated that vehicles manufacturing enterprises shall conduct cybersecurity reviews prior to transmitting data abroad.

On August 16, 2021, the CAC, the NDRC, the Ministry of Public Security, the MIIT and the Ministry of Transport jointly promulgated the Several Provisions on Automobile Data Security Management (For Trial Implementation) ("**Provisions on Automobile Data Security**") which took effect from October 1, 2021 and aims to regulate the collection, analysis, storage, utilization, provision, publication, and cross-border transmission of personal information and critical data generated throughout the lifecycle of automobiles by automobile designers, producers and service providers. Relevant automobile data processors including automobile manufacturers, compartment and software providers, dealers, maintenance providers are required to process personal information and critical data in accordance with applicable laws during the automobile design, manufacture, sales, operation, maintenance and management. To process personal information, automobile data processors shall obtain the consent of the individual or conform to other circumstances stipulated by laws and regulations. Pursuant to the Provisions on Automobile Data Security, personal information and critical data related to automobiles shall in principle be stored within the PRC and a cross-border data security assessment shall be conducted by the national cyberspace administration authority in concert with relevant departments under the State Council if there is a need to transmit such data overseas. To process critical data, automobile data processors shall conduct risk assessments in accordance with regulations and submit risk assessment reports to related departments at provincial levels. Furthermore, the Provisions on Automobile Data Security also prescribe the implementation of classified protection of cybersecurity, the obligations of automobile data operators to inform, anonymize and obtain individuals' consents, and the specific requirements for operating sensitive personal information, as well as the risk assessment when operating important data and the security assessment when providing data abroad.

On July 7, 2022, the CAC issued the Measures for Security Assessment of Cross-border Data Transfers, which took effect on September 1, 2022. Such measures stipulate that data processors who provide overseas the important data collected and generated during operations within the PRC and personal information that shall be subject to security assessment shall conduct a security assessment. Furthermore, if the data processor provides data overseas and meets one of the following circumstances, it shall apply for the security assessment: (i) data handlers who export important data; (ii) critical information infrastructure operators or personal information handlers who export personal information and have processed the personal information of at least 1 million individuals; (iii) data handlers who have cumulatively exported personal information of at least 100,000 individuals or sensitive personal information of at least 10,000 individuals since January 1 of the previous year; and (iv) other circumstances where an application for Security Assessment is required as prescribed by the CAC. The assessment results of the data export are valid for two years.

On July 30, 2021, the State Council promulgated the Regulations on the Protection of the Security of Critical Information Infrastructure (the "***Regulations***"), which took effect in September 2021. The Regulations supplement and specify the provisions on the security of critical information infrastructure as stated in the Cybersecurity Law. The Regulations provide, among others, that protection department of certain industries or sectors shall notify the operator of the critical information infrastructure in time after the identification of certain critical information infrastructure. According to the Regulations, operators of certain industries or sectors that may endanger national security, people's livelihood or public interest in case of damage, function loss or data leakage may be identified as critical information infrastructure operators by CAC or the respective industrial regulatory authorities once they meet the identification standards promulgated by the authorities.

On August 20, 2021, the SCNPC promulgated the Personal Information Protection Law of the PRC, or the Personal Information Protection Law, which took effect in November 2021. As the first systematic and comprehensive law specifically for the protection of personal information in the PRC, the Personal Information Protection Law provides, among others, that (i) an individual's separate consent shall be obtained before operation of such individual's sensitive personal information, e.g., biometric characteristics and individual location tracking, (ii) personal information operators operating sensitive personal information shall notify individuals of the necessity of such operations and the influence on the individuals' rights, (iii) if personal information operators reject individuals' requests to exercise their rights, individuals may file a lawsuit with a People's Court.

On December 28, 2021, the CAC and twelve other PRC regulatory agencies jointly released the Cybersecurity Review Measures, which took effect on February 15, 2022. Pursuant to the Cybersecurity Review Measures, the purchase of network products and services by critical information infrastructure operators and the data processing activities carried out by network platform operators, which affects or may affect national security, shall be subject to cybersecurity review. It further stipulates that network platform operators with personal information of over one million users shall declare cybersecurity review before listing abroad. The cybersecurity review will evaluate, among others, the risk of critical information infrastructure, core data, important data, or the risk of a large amount of personal information being influenced, controlled or maliciously used by foreign governments after going public, and cyber information security risk.

On March 22, 2024, the CAC issued Provisions on Facilitating and Regulating Cross-border Data Flows, which provided that data handlers shall identify and declare important data in accordance with relevant rules. In accordance with these provisions, data handlers who provide data abroad, and meet any of the following conditions, are required to declare the outbound data transfer security assessment to the national cyberspace administration authority through the provincial-level cyberspace administration authority where the data handlers are located: (i) critical information infrastructure operators providing personal information or important data abroad; (ii) data handlers other than critical information infrastructure operator providing important data abroad or cumulatively providing abroad personal information without any sensitive personal information of more than one million individuals or sensitive personal information of more than 10,000 individuals since January 1 of the current year. In addition, these provisions provide certain exemptions from obligations under the circumstances of cross-border data transfer, including, among others, the obligations for declaring data security assessment, concluding a standard contract for provisions of personal information abroad or passing the certification for personal information protection.

***Regulations on Environmental Protection and Work Safety***

*Environment Protection*

Pursuant to the Environmental Protection Law of the PRC promulgated by the SCNPC on December 26, 1989, amended on April 24, 2014 and effective on January 1, 2015, any entity which discharges or will discharge pollutants during the course of operations or other activities must implement effective environmental protection safeguards and procedures to control and properly treat waste gas, wastewater, waste residue, dust, malodorous gases, radioactive substances, noise, vibrations, electromagnetic radiation and other hazards produced during such activities.

Environmental protection authorities impose various administrative penalties on persons or enterprises in violation of the Environmental Protection Law. Such penalties include warnings, fines, orders to rectify within the prescribed period, orders to cease construction, orders to restrict or suspend production, orders to make recovery, orders to disclose relevant information or make an announcement, imposition of administrative action against relevant responsible persons, and orders to shut down enterprises. Any person or entity that pollutes the environment resulting in damage could also be held liable under the PRC Civil Code. In addition, environmental organizations may also bring lawsuits against any entity that discharges pollutants detrimental to the public welfare.

*Work Safety*

Under relevant work safety laws and regulations, including the Work Safety Law of the PRC which was promulgated by the SCNPC on June 29, 2002 and latest amended on June 10, 2021, production and operating business entities must establish objectives and measures for work safety and improve the working environment and conditions for workers in a planned and systematic way. A work safety protection scheme must also be set up to implement the work safety job responsibility system. In addition, production and operating business entities must arrange work safety training and provide the employees with protective equipment that meets the national standards or industrial standards. Furthermore, production and operating business entities shall report their major hazard sources and related safety and emergency measures to the emergency management department and other relevant departments for the record, and establish a safety risk grading control system and take corresponding control measures. Automobile and components manufacturers are subject to the above-mentioned environmental protection and work safety requirements.

***Regulations on Intellectual Property Rights***

*Patents*

Pursuant to the PRC Patent Law (the "***Patent Law***") which was promulgated by the SCNPC on March 12, 1984 and amended on September 4, 1992, on August 25, 2000, on December 27, 2008 and on October 17, 2020, and its implementation rules, once a patent for an invention or utility model has been granted, unless otherwise provided by the Patent Law, no entity or individual may use the patent, patented product or patented process for production or business purposes without the authorization of the patent owner. Once a patent has been granted for a design, no entity or individual may manufacture, sell or import any product containing the patented design without the permission of the patent owner. If a patent is found to have been infringed, the infringer must, in accordance with relevant regulations, cease such infringement, take remedial action and pay damages.

*Copyrights*

The PRC Copyright Law, which took effect on June 1, 1991 and was subsequently amended on October 27, 2001, on February 26, 2010 and on November 11, 2020, respectively, 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 Copyright Law extends copyright protection to Internet activities, products disseminated over the Internet and software products. In addition, the Copyright Law provides for a voluntary registration system administered by the China Copyright Protection Center. 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 be subject to fines and/or administrative or criminal liabilities in severe situations.

Pursuant to the Computer Software Protection Regulations promulgated by the State Council on June 4, 1991 and subsequently amended on December 20, 2001, on January 8, 2011 and on January 30, 2013, Chinese citizens, legal persons and other organizations shall enjoy copyright on software they develop, regardless of whether the software is released publicly. Software copyright commences from the date on which the development of the software is completed. The protection period for software copyright of a legal person or other organizations shall be 50 years, concluding on December 31 of the 50th year after the software's initial release. The software copyright owner may go through the registration formalities with a software registration authority recognized by the State Council's copyright administrative department. The software copyright owner may authorize others to exercise that copyright and is entitled to receive remuneration.

*Trademarks*

Both the Trademark Law of the PRC adopted by the SCNPC on August 23, 1982 and last amended on April 23, 2019, and the Implementation Regulation of the Trademark Law of the PRC adopted by the State Council on August 3, 2002 and revised on April 29, 2014 give protection to the holders of registered trademarks and trade names. The Trademark Office of China under the National Intellectual Property Administration handles trademark registrations. Trademarks can be registered for a term of ten years and can be extended for another ten years if requested upon expiration of any ten-year term. Trademark license agreements must be filed with the Trademark Office.

*Domain Names*

According to the Administrative Measures on Internet Domain Names promulgated by the MIIT on August 24, 2017 and took effect on November 1, 2017.The registration of domain names in PRC is on a "first-apply-first-registration" basis. A domain name applicant will become the domain name holder upon the completion of the application procedure.

***Regulations on Land and Development of Construction Projects***

Under the Interim Regulations on Assignment and Transfer of the Rights to the Use of the State-owned Urban Land of the PRC promulgated by the State Council on May 19, 1990 and latest amended on November 29, 2020, a system of assignment and transfer of the right to use state-owned land was adopted. A land user must pay land premiums to the state as consideration for the assignment of the right to use a land site within a certain term, and the land user who obtained the right to use the land may transfer, lease out, mortgage or otherwise commercially exploit the land within the term of use. Under the Interim Regulations on Assignment and Transfer of the Rights to the Use of the State-owned Urban Land of PRC and the Law of the PRC on Urban Real Estate Administration, the local land administration authority may enter into an assignment contract with the land user for the assignment of land use rights. The land user is required to pay the land premium as provided in the assignment contract. After the full payment of the land premium, the land user must register with the land administration authority and obtain a land use rights certificate which evidences the acquisition of land use rights.

Pursuant to the Regulations on Planning Administration regarding Assignment and Transfer of the Rights to Use of the State-Owned Land in Urban Area promulgated by the Ministry of Construction in December 1992 and amended in January 2011, a construction land planning permit shall be obtained from the municipal planning authority with respect to the planning and use of land. According to the Urban and Rural Planning Law of the PRC promulgated by the SCNPC on October 28, 2007 and latest amended on April 23, 2019, a construction work planning permit must be obtained from the competent urban and rural planning government authority for the construction of any structure, fixture, road, pipeline or other engineering project within an urban or rural planning area. After obtaining a construction work planning permit, subject to certain exceptions, a construction enterprise must apply for a construction work commencement permit from the construction authority under the local people's government at the county level or above in accordance with the Administrative Provisions on Construction Permit of Construction Projects promulgated by the Ministry of Housing and Urban-Rural Development ("**MOHURD**"), on June 25, 2014 and implemented on October 25, 2014 and latest amended on March 30, 2021.

Pursuant to the Administrative Measures for Reporting Details Regarding Acceptance Examination upon Completion of Buildings and Municipal Infrastructure promulgated by the Ministry of Construction on April 4, 2000 and amended on October 19, 2009 and the Provisions on Acceptance Examination upon Completion of Buildings and Municipal Infrastructure promulgated and implemented by MOHURD on December 2, 2013, upon the completion of a construction project, the construction enterprise must submit an application to the competent department in the people's government at or above county level where the project is located, for examination upon completion of building and for filing purpose; and to obtain the filing form for acceptance and examination upon completion of construction project.

***Regulations on Fire Control***

Pursuant to the Fire Safety Law of the PRC promulgated by the SCNPC on April 29, 1998 and latest amended on April 29, 2021, for special construction projects stipulated by the housing and urban-rural development authority of the State Council, the developer shall submit the fire safety design documents to the housing and urban-rural development authority for examination, while for construction projects other than those stipulated as special development projects, the developer shall, at the time of applying for the construction permit or approval for work commencement report, provide the fire safety design drawings and technical materials which satisfy the construction needs. According to Interim Regulations on Administration of Examination and Acceptance of Fire Control Design of Construction Projects promulgated on April 1, 2020 and last amended on August 21, 2023, an examination system for fire prevention design and acceptance only applies to special construction projects, and for other projects, a record-filing and spot check system would be applied.

***Regulations on Taxation***

*Enterprise Income Tax*

According to the Enterprise Income Tax Law of the PRC, or the EIT Law, which was promulgated on March 16, 2007, and came into effect on January 1, 2008 and was amended by the SCNPC on February 24, 2017 and December 29, 2018, and the Implementation Regulations on the Enterprise Income Tax Law of the PRC, which was promulgated by the State Council on December 6, 2007 and came into effect on January 1, 2008, and was amended by the State Council on April 23, 2019 and came into effect on the same date, a uniform income tax rate of 25% will be applied to domestic enterprises, foreign-invested enterprises. These enterprises are classified as either resident enterprises or non-resident enterprises. Besides enterprises established within the PRC, enterprises established in accordance with the laws of other judicial districts whose "de facto management bodies" are within the PRC are considered "resident enterprises" and subject to the uniform 25% enterprise income tax rate for their global income. A non-resident enterprise refers to an entity established under foreign law whose "de facto management bodies" are not within the PRC but which have an establishment or place of business in the PRC, or which do not have an establishment or place of business in the PRC but have income sourced within the PRC. An income tax rate of 10% will normally be applicable to dividends declared to or any other gains realized on the transfer of shares by non-PRC resident enterprise investors that do not have an establishment or place of business in the PRC, 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 the PRC.

*Value-Added Tax*

The Provisional Regulations of the PRC on Value-added Tax were promulgated by the State Council on December 13, 1993, came into effect on January 1, 1994 and were subsequently amended from time to time; and the Detailed Rules for the Implementation of the Provisional Regulations of the PRC on Value-added Tax were promulgated by the MOF on December 25, 1993 and subsequently amended on December 18, 2008 and October 28, 2011 (collectively, the "***VAT Law***"). On November 19, 2017, the State Council promulgated the Decisions on Abolishing the Provisional Regulations of the PRC on Business Tax and Amending the Provisional Regulations of the PRC on Value-added Tax. In November 2011, the MOF and the State Taxation Administration promulgated the Pilot Plan for Imposition of Value-Added Tax to Replace Business Tax. In March 2016, the MOF and the State Taxation Administration further promulgated the Notice on Fully Promoting the Pilot Plan for Replacing Business Tax by Value-Added Tax. On March 20, 2019, the MOF, the State Taxation Administration and the General Administration of Customs issued Announcement on Policies for Deepening the VAT Reform jointly, under which the VAT rates under the basic mechanism is 13% for the sectors such as operating and financial leases of equipment, 9% for sectors such as transportation, postal, basic telecommunication, and construction services as well as sales and leases of real property and real property rights, 0% for exported services and 6% for all remaining services, including financial services. Unlike business tax, a taxpayer is allowed to offset the qualified input VAT paid on taxable purchases against the output VAT chargeable on the modern services provided. Furthermore, according to the Announcement of the State Taxation Administration on Matters relating to Expanding the Scope of the Pilot Scheme for Issuance of Special VAT Invoices by Small-Scale Taxpayers issued by State Taxation Administration on February 3, 2019, the basic mechanism may not apply to small-scale taxpayers who may pay the VAT taxes at the levy rates of 3% and 5% on the basis of their sales amount. On September 1, 2023, the SCNPC promulgated the Value-added Tax Law (Draft for Second Review), which, upon its enactment, will replace the Provisional Regulations of the PRC on Value-added Tax. On December 25, 2024, the SCNPC promulgated the Value-added Tax Law, which become effective on January 1, 2026, will replace the Provisional Regulations of the PRC on Value-added Tax.

*Dividend Withholding Tax*

The EIT Law provides that since January 1, 2008, an income tax rate of 10% will normally be applicable to dividends declared to non-PRC resident investors that do not have an establishment or place of business in the PRC, 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 the PRC.

According to the Arrangement for the Avoidance of Double Taxation and the Prevention of Tax Evasion with Respect to Taxes on Income and Capital between the Mainland China and Hong Kong Special Administrative Region (the "**Double Tax Avoidance Arrangement**") entered into between the Mainland China and the Hong Kong Special Administrative Region on August 21, 2006, if the non-PRC parent company of a PRC enterprise is a Hong Kong resident which directly owns 25% or more of the equity interest of the PRC foreign-invested enterprise which pays the dividends and interests, the 10% withholding tax rate applicable under the EIT Law may be lowered to 5% for dividends and 7% for interest payments if a Hong Kong resident enterprise is determined by the competent PRC tax authority to have satisfied the relevant conditions and requirements under such Double Tax Avoidance Arrangement and other applicable laws. However, according to the Notice on the Certain Issues with Respect to the Enforcement of Dividend Provisions in Tax Treaties, which was promulgated by the State Taxation Administration or the STA on February 20, 2009 and which came into effect on the same date, if the relevant PRC tax authorities determine, in their discretion, that a company benefits unjustifiably 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; and based on the Announcement of the Certain Issues with Respect to the "Beneficial Owner" in Tax Treaties, issued by the STA on February 3, 2018 and effective on April 1, 2018, if an applicant's business activities do not constitute substantive business activities, it could result in the negative determination of the applicant's status as a "beneficial owner", and consequently, the applicant could be precluded from enjoying the abovementioned reduced income tax rate of 5% under the Double Tax Avoidance Arrangement. Such circular further provides that an applicant who intends to prove his or her status as the "beneficial owner" shall submit the relevant documents to the relevant tax bureau according to the Announcement on Issuing the Measures for the Administration of Non-Resident Taxpayers' Enjoyment of the Treatment under Agreements.

***Regulations on Employment and Social Welfare***

*Labor Contract*

The PRC Labor Contract Law promulgated by the SCNPC in 2007 and amended in December 2012, and its implementation rules issued by the State Council in 2008, require employers to provide written contracts to their employees, restrict the use of temporary workers and aim to give employees long-term job security. Violations of the PRC Labor Law and the PRC Labor Contract Law may result in fines and other administrative sanctions, and serious violations may result in criminal liabilities.

*Social Insurance and Housing Fund*

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 Social Insurance Law of the PRC implemented on July 1, 2011 and amended on December 29, 2018, employers are required to provide their employees in the PRC with welfare benefits covering pension insurance, unemployment insurance, maternity insurance, labor injury insurance and medical insurance.

In accordance with the Regulations on the Management of Housing Fund which was promulgated by the State Council in 1999 and subsequently amended in 2002 and 2019, employers must register at the designated administrative centers and open bank accounts for depositing employees' housing funds. Employer and employee 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 Foreign Exchange***

The principal regulations governing foreign currency exchange in China are the Foreign Exchange Control Regulations of the PRC promulgated by the State Council, as amended on August 5, 2008, or the Foreign Exchange Regulations. Under the Foreign Exchange Regulations, the RMB is freely convertible for current account items, including goods, services, gains and transaction items, but not for capital account items, such as capital transfers, direct investments, investment in securities, derivatives and loans, unless the prior approval of the State Administration of Foreign Exchange, or the SAFE, is obtained and prior registration with the SAFE is made.

Pursuant to the Circular of the SAFE on Further Improving and Adjusting Foreign Exchange Administration Policies for Direct Investment (the "***Circular 59***"), promulgated by SAFE on November 19, 2012, which became effective on December 17, 2012 and was further amended on May 4, 2015, October 10, 2018 and December 30, 2019, approval of SAFE is not required for opening a foreign exchange account and depositing foreign exchange into the accounts relating to the direct investments. The Circular No. 59 also simplified foreign exchange-related registration required for foreign investors to acquire the equity interests of Chinese companies and further improved the administration on foreign exchange settlement for foreign-invested enterprises.

The Circular on Further Simplifying and Improving the Foreign Currency Management Policy on Direct Investment (the "***Circular 13***"), effective from June 1, 2015, cancels the administrative approvals of foreign exchange registration of direct domestic investment and direct overseas investment and simplifies the procedure of foreign exchange-related registration. Pursuant to Circular No. 13, the investors shall register with banks for direct domestic investment and direct overseas investment.

The Circular of the SAFE on Reforming the Management Method regarding the Settlement of Foreign Exchange Capital of Foreign-invested Enterprises (the "***Circular 19***"), promulgated on March 30, 2015 and last amended on March 23, 2023, allows foreign-invested enterprises to make equity investments by using RMB funds converted from foreign exchange capital. Under the Circular 19, the foreign exchange capital in the capital account of foreign-invested enterprises upon the confirmation of rights and interests of monetary contribution by the local foreign exchange bureau (or the book-entry registration of monetary contribution by the banks) can be settled at the banks based on the actual operation needs of the enterprises. The proportion of willingness-based foreign exchange settlement of capital for foreign-invested enterprises is temporarily set at 100%. The SAFE can adjust such proportion in due time based on the circumstances of the international balance of payments. However, the Circular 19 and the Circular of the SAFE on Reforming and Regulating Policies on the Control over Foreign Exchange Settlement of Capital Accounts promulgated on June 9, 2016 by the SAFE continues to prohibit foreign-invested enterprises from, among other things, using RMB fund converted from its foreign exchange capitals for expenditure beyond its business scope, investment and financing in securities and other investments except for bank's principal-secured products, providing loans to non-affiliated enterprises or constructing or purchasing real estate not for self-use.

On October 23, 2019, the SAFE promulgated the Circular on Further Promoting the Facilitation of Cross-border Trade and Investment (the "***Circular 28***"). Pursuant to Circular 28, on the basis of allowing investment-oriented foreign-invested enterprise (including foreign-invested investment companies, foreign-invested venture capital enterprises and foreign-invested equity investment enterprises) to use capital funds for domestic equity investment in accordance with laws and regulations, non-investment foreign-invested enterprises shall be allowed to use capital funds for domestic equity investment in accordance with the laws under the premise of not violating the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Version) (the "***2021 Negative List***") and the authenticity and compliance of their domestic invested projects.

According to the Circular of the SAFE on Optimizing Administration of Foreign Exchange to Support the Development of Foreign-related Business issued by the SAFE on April 10, 2020, eligible enterprises are allowed to make domestic payments by using their capital funds, foreign credits and the income under capital accounts of overseas listing, with no need to provide the evidentiary materials concerning authenticity of such capital for banks in advance, provided that their capital use shall be authentic and in line with provisions, and conform to the prevailing administrative regulations on the use of income under capital accounts. The concerned bank shall conduct spot checking in accordance with the relevant requirements.

***Regulations on Foreign Investment***

Investments in the PRC by foreign investors and foreign-invested enterprises were regulated by the Catalogue for the Guidance of Foreign Investment Industries (the "***Foreign Investment Catalogue***"), jointly promulgated by the Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission and the NDRC on June 28, 1995 and amended from time to time. The Foreign Investment Catalogue was last repealed by the 2021 Negative List, which was jointly promulgated by the MOFCOM and the NDRC on December 27, 2021 and came into effect on January 1, 2022, and the Catalogue of Industries for Encouraging Foreign Investment (2022 Version) (the "***2022 Encouraging Catalogue***"), which was jointly promulgated by the MOFCOM and the NDRC on October 26, 2022 and became effective on January 1, 2023. The 2022 Encouraging Catalogue and the 2021 Negative List set out the industries and economic activities in which foreign investment in the PRC is encouraged, restricted or prohibited. Pursuant to the 2022 Encouraging Catalogue, the manufacture and the development of key parts and components of NEVs fall within the encouraged catalogue, and the 2021 Negative List lifts the limit on foreign ownership of automakers for ICE passenger vehicles.

The establishment, operation and management of corporate entities in the PRC is governed by the Company Law, which was latest amended on December 29, 2023 and will come into effect on July 1, 2024, to supersede the existing PRC Company Law. The PRC Company Law generally governs two types of companies - limited liability companies and joint stock limited companies. The PRC Company Law shall also apply to foreign-invested companies. Where laws on foreign investment have other stipulations, such stipulations shall prevail. The establishment procedures, approval or record-filing procedures, registered capital requirements, foreign exchange matters, accounting practices, taxation and labor matters of a wholly foreign-owned enterprise are regulated by the Foreign Investment Law of the PRC, which became effective on January 1, 2020 and replaced three 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 NPC enacted the Foreign Investment Law of the PRC on March 15, 2019 and the State Council promulgated the Implementation Regulations of Foreign Investment Law of the PRC on December 26, 2019, both of which came into force on January 1, 2020. On December 30, 2019, the MOFCOM and the SAMR jointly promulgated the Measures on Reporting of Foreign Investment Information, which also became effective on January 1, 2020. Under these laws and regulations, foreign investors or foreign-invested enterprises shall report and update investment information to the competent department for commerce through the Enterprise Registration System and the National Enterprise Credit Information Publicity System. Any foreign investor or foreign-invested company found to be non-compliant with these reporting obligations may potentially be subject to fines and legal sanctions.

The Foreign Investment Law of the PRC, together with its Implementation Regulations replaced, in their entirety, the trio of previous laws regulating foreign investment in China, namely, the Sino-foreign Equity Joint Venture Enterprise Law, the Sino-foreign Cooperative Joint Venture Enterprise Law and the Wholly Foreign-invested Enterprise Law, together with their implementation rules and ancillary regulations. Generally speaking, the Company Law of the PRC or the Partnership Law of the PRC (promulgated by the SCNPC in February 1997 and amended in August 2006) shall apply with respect to the organization of foreign-invested enterprises.

***Regulations on Dividend Distribution***

The principal regulations governing distribution of dividends of foreign-invested enterprises include the Company Law of the PRC (the "***Company Law***"). Under the Company Law, companies shall contribute 10% of the profits into their statutory surplus reserve upon distribution of their post-tax profits of the current year. A company may discontinue the contribution when the aggregate sum of the statutory surplus reserve is more than 50% of its registered capital.

***Regulations on Offshore Financing***

On July 4, 2014, the SAFE issued the Circular of the State Administration of Foreign Exchange on Relevant Issues concerning Foreign Exchange Administration of the Overseas Investment and Financing and Round-trip Investments by Domestic Residents through Special Purpose Vehicles, or Circular 37. Pursuant to Circular 37, any PRC residents, including both PRC institutions and individual residents, are required to register with the local branch of the SAFE before making a contribution to an enterprise directly established or indirectly controlled by the PRC residents outside of the PRC for the purpose of overseas investment or financing with their legally owned domestic or offshore assets or equity interests, referred to in this circular as a "special purpose vehicle". Under Circular 37, the term "PRC institutions" refers to entities with legal person status or other economic organizations established within the territory of the PRC. The term "PRC individual residents" includes all PRC citizens (also including PRC citizens abroad) and foreigners who habitually reside in the PRC for economic benefit. A registered special purpose vehicle is required to amend its SAFE registration with respect to such vehicle in connection with any change of basic information including PRC individual resident shareholder, name, term of operation, or PRC individual resident's increase or decrease of capital, transfer or exchange of shares, merger, division or other material changes. In addition, if a non-listed special purpose vehicle grants any equity incentives to directors, supervisors or employees of domestic companies under its direct or indirect control, the relevant PRC individual residents could register with the local branch of the SAFE before exercising such options.

The SAFE simultaneously issued guidance to its local branches with respect to the implementation of Circular 37. Under Circular 37, failure to comply with the foreign exchange registration procedures may result in restrictions being imposed on the foreign exchange activities of the relevant onshore company, including restrictions on the payment of dividends and other distributions to its offshore parent company and the capital inflow from the offshore entity, and may also subject the relevant PRC residents and onshore company to penalties under the PRC foreign exchange administration regulations.

***Regulations on Employee Stock Incentive Plan***

Pursuant to the Notice of Issues Related to the Foreign Exchange Administration for Domestic Individuals Participating in Stock Incentive Plan of Overseas Listed Company, which was issued by the 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 the SAFE through a qualified domestic agent, which may be a PRC subsidiary of such overseas listed company, and complete certain other procedures.

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

***Regulations on Merger and Acquisition and Overseas Listing***

On August 8, 2006, six PRC regulatory agencies, including the China Securities Regulatory Commission, or the CSRC, adopted the Regulations on Mergers of Domestic Enterprises by Foreign Investors, or the M&A Rules, which became effective on September 8, 2006 and was amended on June 22, 2009. Foreign investors shall comply with the M&A Rules when they purchase equity interests of a domestic company or subscribe the increased capital of a domestic company, and thus changing the nature of the domestic company into a foreign-invested enterprise; or when the foreign investors establish a foreign-invested enterprise in the PRC, through which to purchase the assets of a domestic company and operate the assets; or when the foreign investors purchase the asset of a domestic company, establish a foreign-invested enterprise by injecting such assets and operate the assets. The M&A Rules purport, among other things, to require offshore special purpose vehicles formed for overseas listing purposes through acquisitions of PRC domestic companies and controlled by PRC companies or individuals who also control such PRC domestic companies, to obtain the approval of CSRC prior to publicly listing their securities on an overseas stock exchange.

On February 17, 2023, the CSRC, as approved by the State Council, released the Trial Administrative Measures of Overseas Securities Offering and Listing by Domestic Companies and five supporting guidelines, or the Filing Rules. The Filing Rules took effect on March 31, 2023, when the CSRC started to accept filing applications. Under the Filing Rules, a filing-based regulatory system will apply to "indirect overseas offering and listing" of PRC domestic enterprises, which refers to such securities offering and listing in an overseas market made by an offshore entity based on the underlying equity, assets, earnings or other similar rights of a domestic enterprise which operates its main business domestically in mainland China. The Filing Rules apply to all overseas equity financing and listing activities of PRC domestic enterprises, including initial and follow-on offerings of shares, depository receipts, convertible corporate bonds, or other equity instruments and trading of securities in overseas market.

Any future capital raising activities such as follow-on equity or debt offerings, listing on other stock exchanges and going private transactions, may also be subject to the filing requirement with the CSRC. Failure to complete such filing procedures as required under the Filing Rules, or a rescission of any such filings completed by us, would subject us to sanctions by the CSRC or other PRC regulatory authorities, which could include fines and penalties on our operations in mainland China, and other forms of sanctions that may materially and adversely affect our business, financial condition and results of operations.

**Historical Licenses of the Disposed Business**

Apart from the business licenses held by each of our former PRC subsidiaries, the following table provides details on the licenses and permissions held by these subsidiaries as of December 31, 2025. These subsidiaries were sold as part of the Disposal on March 18, 2026. Accordingly, these licenses and permissions were transferred with the disposed business and are no longer held by the Company.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Recipient** | **Governmental Permits** | **Issued by** | **Issuance Date** | **Expiration Date** |
| FAW Jilin | The Access for Road Vehicle Manufacturing | The Ministry of Industry and Information Technology ("***MIIT***") | 2004 | Long-term without an expiration date (Paused until the corrective actions are completed) |
| FAW Jilin | Pollutant Discharge Permit | Jilin City Ecological Environment Bureau | 01/12/2023 | 01/11/2028 |
| FAW Jilin | Approval of Environmental Impact Report for the Project of Yantai Manufacturing Base of FAW Jilin on New Energy Vehicles | Branch of Yantai Ecological Environment Bureau in Economic and Technological Development Zone | 10/27/2020 | Long-term without an expiration date |
| FAW Jilin | Filing-for-Record on Hazardous Waste | Jilin City Ecological Environment Bureau | 01/06/2022 | Long-term without an expiration date |
| FAW Jilin | Record Registration of<br> Consignee and Consignor of Import and Export of Goods | Jilin Customs | 02/20/2020 | 07/31/2068 (Paused)<br>|
| Xiangyang Yazhi | Pollutant Discharge Permit | Branch of Xiangyang Municipal Ecological Environment Bureau in Xiangyang Hi-tech Industry Development Zone | 07/25/2023 | 07/24/2028 |

---

**4C. Organizational Structure**

For descriptions of our organizational, please see "*Item 3. Key Information - Our Holding Company Structure*." As described in the "Important Note Regarding the Disposal of Our Automotive Business" at the beginning of this Item 4B, the Company's organizational structure changed significantly on March 18, 2026, due to the sale of Chijet Inc. and its subsidiaries. The organizational structure described in Item 3 therefore reflects a historical structure and does not represent the Company's current organization following the Disposal.

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

The information below describes the material property, plants and equipment of our former automotive business as of December 31, 2025. These assets were all part of the business sold in the Disposal on March 18, 2026, and are no longer owned, leased, or used by the Company.

Under PRC law, land is owned by the state. "Land use rights" are granted to an individual or entity after payment of a land use right fee is made to the applicable state or rural collective economic organization. Land use rights allow the holder of the right to use the land for a specified long-term period.

The following table sets forth the location, registered name, approximate size, use of the property, and the term of the land use rights registered to our former subsidiaries as of December 31, 2025.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **No.** | **Located Address** | **Registered Name** | **Area (M²)** | **Nature of Property** | **Duration** | **Use of Property** |
| 1. | B-42, Kaifa District, Yantai | Shandong Baoya | 458971.9 | land-use rights | 2020.12.18-2070.12.17 | Industrial |
| 2. | East Hengshan Rd. 2, High-tech District, Jilin | FAW Jilin | 5981.30 | land-use rights | 2010.8.5-2050.7.29 | Business and Financial |
| 3. | Huanshan Street, Auto Industrial Park, Jilin | FAW Jilin | 678453.46 | land-use rights | 2011.12.15-2061.4.29\* | Industrial |
| 4 | Huanshan Street, Auto Industrial Park, Jilin | FAW Jilin | 14409.45 | land-use rights | 2014.9.26-2062.11.2\* | Industrial |
| 5. | North of 314 Avenue, East of Jingsi Road, Economic Technology Development District, Dezhou | Dezhou Yarui | 184404.4 | land-use rights | 126,636.4 m² is up to 2064.2.27, 57,768 m² is up to 2062.11.29\* | Industrial |
| 6. | Block 1 of Yedian Rd., Auto Industrial Park, High-tech District, Xiangyang | Xiangyang Yazhi | 308647.7 | land-use rights | Up to 2066.7.30\* | Industrial |

---

\* The land use rights held by the former subsidiaries listed above had been pledged to lenders of certain loan agreements. These assets, along with their associated loan obligations and pledges, were transferred as part of the Disposal. Consequently, the direct risk of pledge enforcement against these properties no longer impacts the Company's ongoing operations.

Our former subsidiary also leased **the following premises.**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Located Address** | **Lessee** | **Lessor** | **Duration of Leasehold** | **Use of Leasehold** | **Rent per year**<br> **USD** |
| Workshop No. 2, Yeda Industrial Plant West, Tianshan Rd. 3-6, Kaifa District, Yantai | Shandong Baoya | Yeda | October 1, 2025-April 20, 2026 | Headquarters of offices, temporary office, the establishment of new energy vehicle research institute, automotive laboratory and exhibition hall, | US$38,790 |

---

The facilities described above were part of the disposed automotive business. Following the Disposal, the Company is evaluating its facility needs to support its new strategic focus on technology and digital asset management.

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

Not Applicable.

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

*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 elsewhere in this annual report. This annual report 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 annual report, particularly those set forth in "Item 3. Key Information - D. Risk Factors" In this annual report. Our businesses and future actual financial performance may be materially different from what we expect.*

 

**A. Operating Results**

***Overview***

 ****

Historically, our business in China was primarily engaged in the research, development, manufacturing, sales, and service of new energy vehicles and traditional fuel vehicles, as well as the design, production, after-sales service, and export of vehicle parts. In light of intense industry competition, persistent supply chain challenges, and cumulative losses exceeding US$100 million, we conducted a comprehensive strategic review of our operations. As a result, we resolved to scale back the electric vehicle manufacturing business and to leverage our expertise in technology and asset management to transition into the digital asset sector.

On March 18, 2026, we entered into a binding share purchase agreement pursuant to which we agreed to sell our entire equity interest in the Disposal Group to an unaffiliated third-party purchaser for a total consideration of US$1.00. The Disposal Group comprises Chijet Inc. and all of its subsidiaries, which represented our legacy electric vehicle manufacturing business. The sale was completed on March 20, 2026. Following the disposal, these entities are no longer included in our consolidated financial statements. The results of operations of the Disposal Group have been presented as discontinued operations, and the related assets and liabilities have been classified as assets and liabilities of discontinued operations. Accordingly, we now focus exclusively on our digital asset initiatives.

***Recent Development***

 ****

Digital Currency X Technology Inc. ("Digital Currency X") is a Cayman Islands exempted company structured as a holding company. We completed a reorganization (the "Reorganization") in June 2023 and became a public company upon our merger with Jupiter Wellness Acquisition Corp. ("JWAC"), a Delaware corporation. We are a technology company focused on digital asset management, currently undergoing a strategic transition following the divestment of our legacy electric vehicle business. Our new core business is centered on two key initiatives: the DexTrader platform, an on-chain data and information service platform, and our digital asset treasury management, which includes staking activities to generate yield.

Our new platform, DexTrader, was launched in 2026 to provide global cryptocurrency traders with real-time, comprehensive data insights and analytical tools for decentralized exchanges (DEXs). DexTrader is positioned solely as a data and information service, similar to a financial news and data terminal, and does not facilitate or participate in any asset transactions. As of the date of this annual report, DexTrader remains in its early operational phase, focused on user acquisition and product optimization, and has not yet generated any revenues.

**Key Components of Results of Operations**

**Operating Expenses**

***Selling, general and administrative expenses***

Our selling, general and administrative expenses primarily consist of employee compensation, share-based compensation, legal and professional service fees, and other corporate overhead costs. As our continuing operations have not generated revenue, we do not incur significant selling expenses.

Following the disposal of our former automotive business, our operating expense structure has shifted significantly. Selling expenses related to logistics, transportation, and product distribution are no longer material. Our current and expected expenses are now primarily associated with corporate administration, regulatory compliance, professional services, and the development and operation of our digital asset platform.

***Other income***

Other income primarily consists of income from non-operating activities and profit or loss of disposition of non-current assets.

Our other income is primarily composed of realized gains or losses on the sale or exchange of cryptocurrencies and unrealized gains or losses from fair value changes of cryptocurrencies

 

***Taxation***

Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, Income Tax. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the consolidated financial statements and their respective tax basis, and operating loss carry forwards. 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 taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized.

***Uncertain tax positions***

An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. 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. Interest and penalties related to uncertain tax positions, if any, are recorded under accrued expenses and other current liabilities on its consolidated balance sheets and under other expenses in its consolidated statements of operations. The Company did not recognize any significant interest and penalties associated with uncertain tax positions for the years ended December 31, 2025, 2024 and 2023. As of December 31, 2025 and 2024, the Company did not have any significant unrecognized uncertain tax positions.

**Results of Operations**

The following table sets forth a summary of our consolidated results of operations for the periods indicated. This information should be read together with our consolidated financial statements and related notes included elsewhere in this annual report. The operating results in any year are not necessarily indicative of the results that may be expected for any future periods.

---

| | | | |
|:---|:---|:---|:---|
|  | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **US$'000** | **US$'000** | **US$'000** |
| Total revenues | **-** | **-** | **-** |
| Total cost of revenues | - | - | - |
| **Gross profit** |  |  |  |
| Operating expenses: |  |  |  |
| Selling, general and administrative | 8398 | 2425 | 3593 |
| **Loss from operations** | **(8398)** | **(2425)** | **(3593)** |
| Other income, net | 79061 |  |  |
| Provision for income tax | - | - | - |
| **Net income (loss) from continuing operation** | **70663** | **(2425)** | **(3593)** |
| Net loss from discontinued operations | (100737) | (66580) | (94908) |
| **Net loss** | **(30074)** | **(69005)** | **(98501)** |

---

**Year ended December 31, 2025 compared to year ended December 31, 2024**

*Selling, general and administrative*

 

Our selling, general and administrative increased from US$2.43 million in 2024 to US$8.40 million in 2025, representing a 246% increase. This increase was due to a net increase of US$5.20 million in agency fees compared to December 31, 2024, primarily attributable to agency fees paid for third-party consulting, legal, and settlement services in connection with divestiture activities for the year ended December 31, 2025.

*Other income, net*

 

Our other income is primarily composed of realized gains or losses on the sale or exchange of cryptocurrencies and unrealized gains or losses from fair value changes of cryptocurrencies. Other income increased from nil in 2024 to US$79.06 million in 2025. The increase was primarily attributable to the following cryptocurrency-related activities, which did not occur in 2024.

Gain on fair value changes of cryptocurrencies of US$83.33 million recognized in 2025, primarily arising from the fair value appreciation of EdgeAI tokens held at year-end.

Realized loss on sale/exchange of cryptocurrencies of US$4.27 million recognized in 2025, resulting from the exchange of 175.37 bitcoins contributed by a shareholder into EdgeAI tokens.

*Net income (loss) from continuing operations*

 

As a result of the foregoing, we reported net income from continuing operations of US$70.66 million in 2025, compared to a net loss from continuing operations of US$2.43 million in 2024, representing an improvement of US$73.09 million.

*Net loss from discontinued operations, net of income taxes*

 

Due to the ongoing losses from the automotive business, we disposed of the automotive business in March 2026. Accordingly, the related operating results have been reclassified as discontinued operations. The net loss from discontinued operations, net of income taxes, was approximately US$100.74 million for the year ended December 31, 2025, compared to approximately US$66.58 million for the year ended December 31, 2024. The increase was primarily driven by a US$73.73 million rise in selling, general and administrative expenses, mainly due to higher severance benefits and litigation-related provisions, and a US$5.89 million increase in impairment charges. These increases were partially offset by a US$33.04 million gain on disposal of the G4 land use right recognized in other income, a US$12.28 million reduction in gross loss, along with other net favorable variances.

**Year ended December 31, 2024 compared to year ended December 31, 2023**

*Selling, general and administrative*

 

Our selling, general and administrative decreased from US$3.59 million in 2023 to US$2.43 million in 2024, representing a 32% decrease. The decrease was primarily attributable to share-based compensation recognized in 2023 upon the closing of the business combination, with no such expense incurred in 2024.

*Net loss from continuing operations*

 

As a result of the foregoing, we incurred a net loss of US$2.43 million in 2024, representing a decrease of 32% as compared to a net loss of US$3.59 million in 2023.

*Net loss from discontinued operations, net of income taxes*

 

Due to the ongoing losses from the automotive business, we disposed of the automotive business in March 2026. Accordingly, the related operating results have been reclassified as discontinued operations. The net loss from discontinued operations, net of income taxes, was approximately US$66.58 million for the year ended December 31, 2024, compared to approximately US$94.91 million for the year ended December 31, 2023. The decrease of US$28.33 million was primarily attributable to a US$15.25 million reduction in selling, general and administrative expenses, mainly due to reverse recapitalization-related professional service fees recognized in 2023 with no such costs in 2024, as well as a US$10.79 million decrease in cost of sales—idle capacity, driven by lower machinery depreciation as certain equipment became fully depreciated by the end of 2024.

**B. Liquidity and Capital Resources**

We have been funded primarily through financing from shareholders. As of December 31, 2025, our cash and cash equivalents were US$3.94 million, and our working capital from continuing operations was approximately US$405.81 million.

The Company has incurred recurring operating losses and negative operating cash flows in recent periods. In addition, the Company has undergone a significant strategic transformation, including the disposal of its legacy automotive business and a transition to digital asset-related activities, which have limited operating history. These factors indicate that the Company is subject to certain risks and uncertainties.

In accordance with applicable accounting guidance, management has evaluated the Company's ability to continue as a going concern for a period of at least twelve months from the date of issuance of these financial statements. This evaluation included the preparation of detailed cash flow forecasts reflecting the Company's current cost structure and expected operating requirements.

Based on this assessment, management expects that the Company will maintain sufficient liquidity to meet its obligations as they fall due for at least twelve months from the issuance date of these financial statements. The forecast indicates that the Company is able to sustain its operations based primarily on existing cash resources and ongoing cost management, without reliance on uncertain inflows such as projected revenues, financing activities, or returns from digital asset-related activities.

A substantial portion of the Company's assets consists of digital assets, which are subject to price volatility and evolving market conditions. In addition, subsequent to year-end, certain digital assets have been subject to staking arrangements that may restrict their availability for short-term liquidity purposes. While these factors introduce uncertainty, they have been considered in management's assessment.

Management has undertaken various strategic initiatives to support the Company's long-term operations and financial position. These include the development of a digital asset trading platform, expansion of digital asset-related services, and access to financing arrangements that may provide additional liquidity if required. The timing and extent of benefits from these initiatives are subject to market conditions and execution risks.

**Cash flows**

The following table sets forth a summary of our cash flows for the years indicated.

---

| | | | |
|:---|:---|:---|:---|
| | **Years Ended December 31,** | **Years Ended December 31,** | **Years Ended December 31,** |
| <br>**(US$'000)** | **2025** | **2024** | **2023** |
| **Summary of Consolidated Cash Flow Data:** |  |  |  |
| Net cash used in continuing operating activities | (8629) | (2681) | (209) |
| Net cash used in discontinued operating activities | (45960) | (22783) | (39808) |
| Net cash used in continuing investing activities | (15901) |  |  |
| Net cash provided by (used in) discontinued investing activities | 17321 | (1058) | (1762) |
| Net cash provided by continuing financing activities | 30849 | 2820 | 350 |
| Net cash provided by (used in) discontinued financing activities | (8384) | 10818 | 4875 |
| Effects of currency translation on cash, cash equivalents, and restricted cash | 31813 | 4546 | (1360) |
| Net decrease in cash, cash equivalents and restricted cash | **(30704)** | **(12884)** | **(36554)** |

---

**Operating activities**

For the year ended December 31, 2025, net cash used in continuing operating activities was US$8.63 million. This cash outflow was primarily the result of reconciling our net income from continuing operations to cash flow. Our net income from continuing operations of US$70.66 million included a significant non-cash gain of US$83.33 million from the fair value change of cryptocurrencies. After adjusting for this large non-cash gain, a non-cash realized loss on the exchange of cryptocurrencies of US$4.27 million, and net changes in operating assets and liabilities, the result was a net cash usage from continuing operations.

For the year ended December 31, 2024, net cash used in continuing operating activities was US$2.68 million. The net cash used in continuing operating activities primarily resulted from a net loss from continuing operations of US$2.43 million.

For the year ended December 31, 2023, net cash used in continuing operating activities was US$0.2 million. The net cash used in continuing operating activities primarily resulted from a net loss from continuing operations of US$3.59 million. The net cash used in continuing operating activities was mainly offset by share-based compensation expenses of US$3.17 million.

**Investing Activities**

For the year ended December 31, 2025, net cash used in continuing investing activities was US$15.90 million, primarily attributable to the purchase of cryptocurrencies.

For the year ended December 31, 2024, we did not have any continuing investing activities.

For the year ended December 31, 2023, we did not have any continuing investing activities.

**Financing Activities**

For the year ended December 31, 2025, net cash generated from continuing financing activities was US$30.85 million. This was primarily attributable to proceeds from private placements from third parties and related parties of US$30.85 million.

For the year ended December 31, 2024, net cash generated from continuing financing activities was US$2.82 million. This primarily resulted from proceeds from private placement received in advance of US$1.12 million, proceeds from private placement received in advance from related parties of US$1.70 million.

For the year ended December 31, 2023, net cash generated from continuing financing activities was US$0.35 million. This was primarily attributable to proceeds from exercise of warrants of US$0.60 million, partially offset by payments for reverse recapitalization and ordinary share issuance costs of US$0.25 million.

**Material Cash Requirements**

Our material cash requirements primarily include expenditures for software development, cloud infrastructure, and system architecture to support our DexTrade platform and digital asset initiatives.

Our continuing operations had no material capital expenditures during the years ended December 31, 2025, 2024 and 2023. Capital expenditures incurred during these periods were associated with the automotive business, which was disposed of in March 2026 and has been presented as discontinued operations. We expect our capital expenditures to be minimal in the foreseeable future. Our new business initiative, the Edge AI-powered visual inspection platform, operates on an asset-light model that does not require significant investment in property, plant, or equipment.

**Holding Company Structure**

See "*Item 3. Key Information—Our Holding Company Structure*."

**C. Research and Development, Patents and Licenses, etc.**

See "*Item 4. Information on the Company—B. Business Overview— Technology Research and Development*" and "*Item 4. Information on the Company—B. Business Overview—Intellectual Property*."

**D. Trend information**

Other than as disclosed elsewhere in this annual report, we are not aware of any trends, uncertainties, demands, commitments or events for the period from January 1, 2025 to December 31, 2025 that are reasonably likely to have a material effect on our net revenues, income, profitability, liquidity or capital resources, or that would cause the disclosed financial information to be not necessarily indicative of future operating results or financial conditions.

**E. Critical Accounting Estimates**

Our discussion and analysis of our financial condition and results of operations relates to our consolidated financial statements, which have been prepared in accordance with the generally accepted accounting principles in the United States. ("U.S. GAAP.") The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs and expenses, and related disclosures. On an on-going basis, we evaluate our estimates based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

We consider an accounting estimate to be critical if:

-the accounting estimate requires us to make assumptions about matters that were highly uncertain at the time the accounting estimate was made; and

-changes in the estimate that are reasonably likely to occur from period to period, or use of different estimates that we reasonably could have used in the current period, would have a material impact on our financial condition or results of operations.

There are other items within our financial statements that require estimation but are not deemed critical, as defined above. Changes in estimates used in these and other items could have a material impact on our financial statements.

For a detailed discussion of our significant accounting policies and related judgments, please see "Note 2 - Summary of Significant Accounting Policies." You should read the following description of critical accounting estimates in conjunction with our consolidated financial statements and other disclosures included in this annual report.

***Valuation of Cryptocurrencies***

 ****

Under U.S. GAAP, cryptocurrencies that meet certain criteria are accounted for as indefinite-lived intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other. Effective for fiscal years beginning after December 15, 2024, the FASB issued ASU 2023-08, Accounting for and Disclosure of Crypto Assets, which requires entities to subsequently measure in-scope crypto assets at fair value, with changes in fair value recognized in net income each reporting period. We adopted this guidance effective January 1, 2025.

We measure our cryptocurrency holdings at fair value on a recurring basis, with gains and losses from changes in fair value recognized in our consolidated statement of operations. The digital assets consist of tokens that are not actively traded on public cryptocurrency exchanges. Accordingly, fair value is determined using valuation techniques based on observable and unobservable inputs. Key inputs include the most recent transaction prices from private placements or secondary transactions, valuations performed by independent third-party valuation specialists, and consideration of any liquidity restrictions such as lock-up periods. These valuations are classified as Level 3 inputs within the fair value hierarchy due to the use of significant unobservable inputs.

**F. Recent Accounting Pronouncements**

See "Note 3—Recent Accounting Pronouncement" in the accompanying Consolidated Financial Statements for details.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**6. A. Directors, Executive Officers and Key Employees**

The following table sets forth information regarding our executive officers and directors as of the date of this annual report. Unless otherwise stated, the business address for our directors and executive officers is that of our principal executive offices at Room 1101, 11/F., Capital Centre, 151 Gloucester Road, Wanchai, Hong Kong.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| ***Executive Officers*** |  |  |
| Dongchun Fan | 56 | Chief Financial Officer |
| Melissa Chen<sup>(5)</sup> | 37 | Chief Executive Officer and Director |
| ***Non-Employee Directors*** |  |  |
| Wanli Wang <sup>(2)(3)(4)</sup> | 56 | Independent Director |
| Wenbo Wang<sup>(1)(2)</sup> | 45 | Independent Director |
| Jonathan Zhang<sup>(1)(3)(5)</sup> | 64 | Independent Director |
| Huijie Gao<sup>(1)(2)(3)(5)</sup> | 45 | Independent Director |

---

(1) Member of the audit committee.

(2) Member of the compensation
 committee.

(3) Member of the nominating
 and corporate governance committee.

(4) Appointed on January 27,
 2025.

(5) Appointed on September
 10, 2025.

**Ms. Melissa Chen** has served as a Director of our board since September 2025. She previously served as director of HR and operation in Singularity Future Technology Ltd. from February 2021 to January 2025. From May 2016 to January 2017, Ms. Chen served as an accountant in Century 21. From June 2011 to February 2012, Ms. Chen served as an executive assistant to chief executive director in Shuntiantong Real Estate Group. Ms. Chen received bachelor's degree in economics from Hebei University of Economics and Business in 2011, and received master of science in Financial and Organizational Management from KEDGE Business School in 2016.

**Mr. Dongchun Fan** has served as the CFO and Vice President of Shandong Baoya since 2023. He is an accomplished financial leader with a distinguished career spanning multiple industries. From November 2021 to December 2022, he served as the CFO of Chiso Automotive (Chongqing) Co., Ltd., overseeing financial strategy, system establishment, and capital operations. Prior to this, as the Group Director/Vice President and Finance Director of Liaoning Shuguang Automotive Group Co., Ltd., a China A-share listed company from August 2020 to August 2021, Mr. Fan enhanced financial operations, managed capital initiatives, and directed strategic financing. From May 2018 to October 2019, he held the position of CFO at Shenyang Zhongtai Equipment Manufacturing Co., Ltd., focusing on financial controls, investment management, and budget administration. Mr. Fan has also held leadership roles at entities including Jiangsu Muyang Group Co. Ltd., and Impro Precision Industries Limited, where he led projects of initial public offerings, risk control, and internal systems. He earned a master's degree in business administration (MBA) from Tsinghua University in 2004 and a bachelor's degree in mechanical manufacturing from Shenyang Aerospace University in 1992. Mr. Fan holds certifications including Certified Public Accountant (CPA) in China, Certificate of Intermediate Accountant and National Certificate of Legal Profession.

**Mr Wenbo Wang** has served as a member of our Board since May 2024. He has over 20 years of experience in financial analysis, operations finance and. From 2019 to 2022 he served as the CEO of Centurygalaxy Group Co., Ltd... From 2013 to 2018 he served as General Manager of Internal Control Center for Bybo Group Co., Ltd., Prior thereto he served as the Deputy General Manager of the Group Finance Department of Tsinghua Unigroup LTD., Director of Internal Audit at Synutra International,Inc, a Nasdaq traded company engaged in in the production, distribution and sale of dairy based nutritional products.

**Ms. Jing Zhang** has served as a Director of our board since January 2025. Ms. Zhang has been engaged in freelance professional activities since January 2023, demonstrating adaptability and strategic expertise across diverse projects. She holds a diploma in Property Management (2005-2008) from Shandong Youth Management Cadre College, where she acquired foundational skills in operational coordination and resource management. Her professional background reflects a commitment to organizational efficiency and innovative problem-solving, qualities that align with the company's governance priorities. Ms. Zhang brings a balanced perspective to the board, informed by her academic training and hands-on experience in dynamic work environments.

**Mr. Wang Wanli** has served as a Director of our board since January 2025. A seasoned legal professional with over 25 years of experience, Mr. Wang has been a Lawyer at Beijing Gaotong Law Firm since 2002, specializing in corporate restructuring, mergers & acquisitions (M&A), and cross-sector investment financing. He holds a Master Degree of Law (2003-2005) from China University of Political Science and Law and a Bachelor of Engineering (1989-1993) from Nanjing University of Finance and Economics, blending technical acumen with legal rigor.

Mr. Wang's career began in public service at the Beijing Fengtai District Grain Bureau (1993-1999), where he developed operational oversight skills as Deputy Chief of the Operations Section. Transitioning to private practice in 1999, he has since led high-stakes M&A and restructuring matters across industries including aviation, energy, securities, and finance. Notable engagements include serving as Lead Counsel for:

- The restructuring of Huaxia Securities into China Securities (now CITIC Construction Securities);

- Corporate reorganizations under China National Aviation Holding Corporation;

- Liaoning Securities' restructuring into a state-controlled entity.

His advisory work extends to multinational corporations and state-owned enterprises, including Caterpillar China, Sinopec Group, China Construction Bank, and Franklin Templeton Investments, where he has advised on compliance frameworks, risk mitigation, and strategic transactions. Mr. Wang's dual expertise in engineering and law enables him to contribute uniquely to the Board's oversight of complex technical, regulatory, and governance matters.

**Mr. Jonathan Zhang** has served as a Director of our board since September 2025. He is the chief executive officer of 5CGroup International Asset Management Co., Ltd. and strategic development consultant of SG & CO PRC Lawyers, positions he has held since 2015. Mr. Zhang has served as master's thesis supervisor of Zhejiang Sci-Tech University and visiting professor of Zhejiang NDRC Training Center since 2015. Mr. Zhang is also acting as a director of SOS Ltd (Nasdaq: SOS). Mr. Zhang previously served as the department chief of Commercial Bureau of HEDA between 2003 and 2015 and as chief of investment, Bureau of Ningbo Free Trade Zone between 2000 and 2003. Mr. Zhang received bachelor of English literature in June 1987 and master in law in June 1989 from Hubei University.

**Mr. Huijie Gao** has served as a Director of our board since September 2025. He is the chief financial officer of Jiuzi Holdings, Inc. (Nasdaq: JZXN). From January 2024 to August 2024, Mr. Gao served as the vice president of finance of Jiuzi Holdings, Inc.. From May 2020 to August 2023, Mr. Gao served as the chief financial officer of Xilianwang Automotive Industry Chain Co., Ltd. in Shenzhen, in charge of strategic development, financial operations management, and capital operations. From February 2016 to April 2020, Mr. Gao worked as the general manager at Qixin (Shenzhen) Financial Consulting Co., Ltd., providing professional advice and services for clients in domestic and international listings, restructuring, and mergers and acquisitions. From June 2008 to December 2015, Mr. Gao was a project manager at Lianda Accounting Firm's Shenzhen office. Mr. Gao received his bachelor's degree in financial management from Hubei University of Automotive Technology in 2005 and an EMBA from Wuhan University. Mr. Gao is also a certified tax agent in China.

**Family Relationships**

There are no family relationships, or other arrangements or understandings between or among any of the directors, executive officers or other person pursuant to which such person was selected to serve as a director or officer.

**6. B. Compensation**

During the fiscal year ended December 31, 2025, we paid an aggregate of $309,155 to our executive officers and directors. Additionally, for our executive officers, we paid $8,629 for the fiscal year ended December 31, 2025 in social insurance, provident fund and other social benefits. Our former 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. We have not set aside or accrued any amount to provide pension, retirement or other similar benefits to our directors.

***Employment Agreements***

We have entered into employment agreements with each of our executive officers. Under these agreements, each of our executive officers is employed for a specified time period. We may terminate employment for cause, at any time, without advance notice or remuneration, for certain acts of the executive officer, such as conviction or plea of guilty to a felony or any crime involving moral turpitude, negligent or dishonest acts to our detriment, or misconduct or a failure to perform agreed duties. We may also terminate an executive officer's employment without cause upon three-month advance written notice. In such case of termination by us, we will provide severance payments to the executive officer as expressly required by applicable law of the jurisdiction where the executive officer is based. The executive officer may resign at any time with a one-month advance written notice.

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. The executive officers have also agreed to disclose in confidence to us all inventions, designs and trade secrets which they conceive, develop or reduce to practice during the executive officer's employment with us and to assign all right, title and interest in them to us, and assist us in obtaining and enforcing patents, copyrights and other legal rights for these inventions, designs and trade secrets.

***Clawback Policy***

On November 29, 2023, our board of directors adopted an executive compensation recovery policy (the "Clawback Policy"), providing for the recovery of certain incentive-based compensation from current and former executive officers of the Company in the event the Company is required to restate any of its financial statements filed with the SEC under the Exchange Act in order to correct an error that is material to the previously-issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period. Adoption of the Clawback Policy was mandated by new Nasdaq listing standards introduced pursuant to Exchange Act Rule 10D-1. The Clawback Policy is in addition to Section 304 of the Sarbanes-Oxley Act of 2002 which permits the SEC to order the disgorgement of bonuses and incentive-based compensation earned by a registrant issuer's chief executive officer and chief financial officer in the year following the filing of any financial statement that the issuer is required to restate because of misconduct, and the reimbursement of those funds to the issuer. A copy of the Clawback Policy has been filed herewith as Exhibit 97.1.

**2023 Share Incentive Plan** 

In May 2023, we adopted the 2023 Share Inventive plan (the "Incentive Plan"). The following is a summary of the material features of the Incentive Plan.

Eligibility

Persons eligible to participate in the Incentive Plan are officers, employees, non-employee directors, and consultants of the Company and its subsidiaries as selected from time to time by the plan administrator in its discretion, including prospective officers, employees, non-employee directors, and consultants. Any awards granted to such a prospect before the individual's start date may not become vested or exercisable, and no ordinary shares may be issued to such individual, before the date the individual first commences performance of services with the Company or any of its subsidiaries.

*Administration*

The Incentive Plan will be administered by the Company's compensation committee, the Board, or such other similar committee pursuant to the terms of the Incentive Plan. The plan administrator, which initially will be the Company's compensation committee, will have full power to select, from among the individuals eligible for awards, the individuals to whom awards will be granted, to make any combination of awards to participants, and to determine the specific terms and conditions of each award, subject to the provisions of the Incentive Plan. The plan administrator may delegate to one or more officers of the Company, the authority to grant awards to eligible individuals.

*Share Reserve*

The number of Class A Ordinary Shares that may be issued under the Incentive Plan is equal to 5% of the aggregate number of ordinary shares issued and outstanding immediately after the Closing. All of the Class A Ordinary Shares initially available under the Incentive Plan may be issued upon the exercise of incentive stock options. The ordinary shares issuable under the Incentive Plan may be authorized, but unissued, or reacquired shares.

The Class A Ordinary Shares underlying any awards under the Incentive Plan that are forfeited, cancelled, held back upon exercise of a share option or settlement of an award to cover the exercise price or tax withholding, satisfied without the issuance of the ordinary shares or otherwise terminated (other than by exercise) will be added back to the Class A Ordinary Shares available for issuance under the Incentive Plan.

*Types of Awards*

The Incentive Plan provides for the grant of share options, share appreciation rights, restricted shares, restricted share units, and other-share based awards, or collectively, awards. Unless otherwise set forth in an individual award agreement, each award shall vest over a four (4) year period, with one-quarter (1/4) of the award vesting on the first annual anniversary of the date of grant, with the remainder of the award vesting monthly thereafter.

*Share Options*. The Incentive Plan permits the granting of both share options to purchase the Class A Ordinary Shares intended to qualify as incentive stock options under Section 422 of the Code and share options that do not so qualify. Share options granted under the Incentive Plan will be nonstatutory options if they fail to qualify as incentive stock options or exceed the annual limit on incentive stock options. Incentive stock options may only be granted to employees of the Company and its subsidiaries. Nonstatutory options may be granted to any persons eligible to receive awards under the Incentive Plan.

The exercise price of each share option will be determined by the plan administrator. The exercise price for an incentive stock option may not be less than 100% of the fair market value of one ordinary share on the date of grant or, in the case of an incentive stock option granted to a 10% stockholder, 110% of such share's fair market value. The term of each share option will be fixed by the plan administrator and may not exceed 10 years from the date of grant (or five years for an incentive stock option granted to a 10% stockholder). The plan administrator will determine at what time or times each share option may be exercised, including the ability to accelerate the vesting of such share options.

Upon exercise of share options, the exercise price must be paid in full either in cash, check, or, with approval of the plan administrator, by delivery (or attestation to the ownership) of the Class A Ordinary Shares that are beneficially owned by the optionee free of restrictions or were purchased in the open market. Subject to applicable law and approval of the plan administrator, the exercise price may also be made by means of a broker-assisted cashless exercise. In addition, the plan administrator may permit nonstatutory options to be exercised using a "net exercise" arrangement that reduces the number of shares issued to the optionee by the largest whole number of shares with fair market value that does not exceed the aggregate exercise price.

*Share Appreciation Rights*. The plan administrator may award share appreciation rights subject to such conditions and restrictions as it may determine. Share appreciation rights entitle the recipient to the Class A Ordinary Shares, or cash, equal to the value of the appreciation in the Company's share price over the exercise price, as set by the plan administrator. The term of each share appreciation right will be fixed by the plan administrator and may not exceed 10 years from the date of grant. The plan administrator will determine at what time or times each share appreciation right may be exercised, including the ability to accelerate the vesting of such share appreciation rights.

*Restricted Shares*. A restricted share award is an award of the Class A Ordinary Shares that vests in accordance with the terms and conditions established by the plan administrator. The plan administrator will determine the persons to whom grants of restricted shares are made, the number of restricted shares to be awarded, the price (if any) to be paid for the restricted shares, the time or times within which restricted shares may be subject to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of restricted share awards. Unless otherwise provided in the applicable award agreement, a participant generally will not have the rights and privileges of a stockholder as to such restricted shares, including without limitation the right to vote such restricted shares and the right to receive dividends, if applicable.

*Restricted Share Units*. Restricted share units are the right to receive the Class A Ordinary Shares at a future date in accordance with the terms of such grant upon the attainment of certain conditions specified by the plan administrator. Restrictions or conditions could include, but are not limited to, the attainment of performance goals, continuous service with the Company or any of its subsidiaries, the passage of time or other restrictions or conditions. The plan administrator determines the persons to whom grants of restricted share units are made, the number of restricted share units to be awarded, the time or times within which restricted share units may be subject to forfeiture, the vesting schedule, and rights to acceleration thereof, and all other terms and conditions of the restricted share unit awards. The value of the restricted share units may be paid in Class A Ordinary Shares, cash, other securities, other property, or a combination of the foregoing, as determined by the plan administrator.

The holders of restricted share units will have no voting rights. Prior to settlement or forfeiture, restricted share units awarded under the Incentive Plan may, at the plan administrator's discretion, provide for a right to dividend equivalents. Such right entitles the holder to be credited with an amount equal to all dividends paid on one ordinary share while each restricted share unit is outstanding. Dividend equivalents may be converted into additional restricted share units. Settlement of dividend equivalents may be made in the form of cash, the ordinary shares, other securities, other property, or a combination of the foregoing. Prior to distribution, any dividend equivalents shall be subject to the same conditions and restrictions as the restricted share units to which they are payable.

*Other Share-Based Awards*. Other share-based awards may be granted either alone, in addition to, or in tandem with, other awards granted under the Incentive Plan and/or cash awards made outside of the Incentive Plan. The plan administrator shall have authority to determine the persons to whom and the time or times at which other share-based awards will be made, the amount of such other share-based awards, and all other conditions, including any dividend and/or voting rights.

*Prohibition on Repricing*

Except for an adjustment pursuant to the terms of the Incentive Plan or a repricing approved by stockholders, in no case may the plan administrator (i) amend an outstanding share option or share appreciation right to reduce the exercise price of the award, (ii) cancel, exchange, or surrender an outstanding share option or share appreciation right in exchange for cash or other awards for the purpose of repricing the award, or (iii) cancel, exchange, or surrender an outstanding share option or share appreciation right in exchange for a share option or share appreciation right with an exercise price that is less than the exercise price of the original award.

*Equitable Adjustments*

In the event of a merger, consolidation, recapitalization, share split, reverse share split, reorganization, split-up, spin-off, combination, repurchase or other change in corporate structure affecting the ordinary shares, the maximum number and kind of shares reserved for issuance or with respect to which awards may be granted under the Incentive Plan will be adjusted to reflect such event, and the plan administrator will make such adjustments as it deems appropriate and equitable in the number, kind, and exercise price of the ordinary shares covered by outstanding awards made under the Incentive Plan.

*Change in Control*

In the event of any proposed change in control (as defined in the Incentive Plan), the plan administrator will take any action as it deems appropriate, which action may include, without limitation, the following: (i) the continuation of any award, if the Company is the surviving corporation; (ii) the assumption of any award by the surviving corporation or its parent or subsidiary; (iii) the substitution by the surviving corporation or its parent or subsidiary of equivalent awards; (iv) accelerated vesting of the award, with all performance objectives and other vesting criteria deemed achieved at targeted levels, and a limited period during which to exercise the award prior to closing of the change in control, or (v) settlement of any award for the change in control price (less, to the extent applicable, the per share exercise price). Unless determined otherwise by the plan administrator, in the event that the successor corporation refuses to assume or substitute for the award, a participant shall fully vest in and have the right to exercise the award as to all of the Class A Ordinary Shares, including those as to which it would not otherwise be vested or exercisable, all applicable restrictions will lapse, and all performance objectives and other vesting criteria will be deemed achieved at targeted levels.

*Transferability of Awards*

Unless determined otherwise by the plan administrator, an award may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner, except to a participant's estate or legal representative, and may be exercised, during the lifetime of the participant, only by the participant. If the plan administrator makes an award transferable, such award will contain such additional terms and conditions as the plan administrator deems appropriate.

*Term*

The Incentive Plan will continue in effect for a term of ten (10) years.

*Amendment and Termination*

The Board may amend or terminate the Incentive Plan at any time. Any such termination will not affect outstanding awards. No amendment, alteration, suspension, or termination of the Incentive Plan will materially impair the rights of any participant, unless mutually agreed otherwise between the participant and the Company. Approval of the shareholders shall be required for any amendment, where required by applicable law.

No awards have been granted under the Incentive Plan as of December 31, 2025.

**6. C. Board Practices**

Our board of directors consists of seven directors, including three executive directors and four independent directors. We have also established an Audit Committee, a Nominating and Corporate Governance Committee and a Compensation Committee. We have adopted a charter for each of the three committees. A description of the composition and responsibilities of each committee follows below.

*Audit Committee*

**Jonathan Zhang, Huijie Gao**, and Wenbo Wang, serve as members of our Audit Committee with Mr. Gao serving as the chairman of the Audit Committee. Each of our Audit Committee members satisfies the "independence" requirements of the Nasdaq listing rules and meets the independence standards under Rule 10A-3 under the Exchange Act. Our board of directors has determined that Mr. Wang possesses accounting or related financial management experience that qualifies her as an "audit committee financial expert" as defined by the rules and regulations of the SEC. Our Audit Committee oversees our accounting and financial reporting processes and the audits of our financial statements. Our Audit Committee performs several functions, including:

● evaluating the independence
 and performance of, and assesses the qualifications of, our independent auditor, and engages such independent auditor;

● approving the plan and
 fees for the annual audit, quarterly reviews, tax and other audit-related services, and approves in advance any non-audit service
 to be provided by the independent auditor;

● monitoring the independence
 of the independent auditor and the rotation of partners of the independent auditor on our engagement team as required by law;

● reviewing the financial
 statements to be included in our Annual Report on Form 20-F and Current Reports on Form 6-K and reviews with management and the independent
 auditors the results of the annual audit and reviews of our quarterly financial statements;

● overseeing all aspects
 of our systems of internal accounting control and corporate governance functions on behalf of the board;

● advising the Board and
 any other Board Committee if the clawback provisions of the Clawback Policy are triggered based upon a financial statement restatement
 or other financial statement change;

● reviewing and approving
 in advance any proposed related-party transactions and report to the full board on any approved transactions; and

● providing oversight assistance
 in connection with legal, ethical and risk management compliance programs established by management and our board of directors, including
 Sarbanes-Oxley Act implementation, and makes recommendations to our board of directors regarding corporate governance issues and
 policy decisions.

*Compensation Committee*

**Wanli Wang, Huijie Gao**, and Wenbo Wang serve as members of our Compensation Committee. Our Compensation Committee is responsible for overseeing and making recommendations to our board of our directors regarding the salaries and other compensation of our executive officers and general employees and providing assistance and recommendations with respect to our compensation policies and practices.

*Nominating and Corporate Governance Committee*

**Wanli Wang, Jonathan Zhang and Huijie Gao** serve as members of our Nominating and Corporate Governance Committee. Our Nominating and Corporate Governance Committee is responsible for identifying and proposing new potential director nominees to the board of directors for consideration and reviewing our corporate governance policies.

**Duties of Directors**

Under Cayman Islands law, the directors and officers both owe statutory duties under the Companies Act, common law duties and fiduciary duties to our company. Under common law, our directors and officers have a duty to exercise the care, diligence and skills that a reasonably prudent person would exercise in comparable circumstances. The fiduciary duties which our directors and officers owe to our company are summarized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(i) duty to act bona fide in
 what the director or officer believes to be in the best interests of the company as a whole;

(ii) duty to exercise powers
 for the purposes for which those powers were conferred and not for a collateral purpose;

(iii) directors should not properly
 fetter the discretion to act in the best interest of the Company; and

(iv) 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 addition to the above, directors also owe a duty of care which is not fiduciary in nature. This duty has been defined as a requirement to act as a reasonably diligent person having both the general knowledge, skill and experience that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company and the general knowledge skill and experience which that director has.

As set out above, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing, or to otherwise benefit as a result of their position. This obligation, however, is varied by our Charter, by permitting the director to vote on a matter in which he has an interest provided that he has disclosed the nature of this interest to the board at the earliest opportunity. This can be done by way of permission granted in the Amended and Restated Memorandum and Articles of Association or alternatively by shareholder approval at general meetings.

Accordingly, as a result of multiple business affiliations, our officers and directors may have similar legal obligations relating to presenting business opportunities meeting the above-listed criteria to multiple entities. In addition, conflicts of interest may arise when our board evaluates a particular business opportunity with respect to the above-listed criteria. We cannot assure you that any of the afore-mentioned conflicts will be resolved in our favor. Furthermore, each of our officers and directors has pre-existing fiduciary obligations to other businesses of which they are officers or directors. Our company has the right to seek damages if a duty owed by our directors is breached. A shareholder may in certain limited exceptional circumstances have the right to seek damages in our name if a duty owed by our directors is breached. You should refer to "*Item 10. Additional Information - B. Memorandum and Articles of Association - Comparison of Cayman Islands Corporate Law and U.S. Corporate Law*" for additional information on our standard of corporate governance under Cayman Islands law.

**Terms of Directors and Officers**

Our officers are appointed by and serve at the discretion of our board of directors. Our directors are not subject to a set term of office and hold office until the next general meeting of shareholders called for the election of directors and until their successor is duly appointed or such time as they die, resign or are removed from office by a shareholders' ordinary resolution. The office of a director will be vacated automatically if, among other things, the directors resigns in writing, becomes bankrupt or makes any arrangement or composition with hi or/her creditors generally or is found to be or becomes of unsound mind.

**6. D. Employees** 

As of December 31, 2025, 2024, and 2023, we had 75, 1,389, and 1,439 full-time employees, respectively, of which Nil, 11, and 11 were outsourced workers, respectively, accounting for Nil, 0.79%, and 0.76%, of our total workforce.

As required by the laws of the PRC, we participate in various employee social security plans that are organized by municipal and provincial governments for our PRC-based full-time employees, including pension, unemployment insurance, childbirth insurance, work-related injury insurance and medical insurance. We are required under PRC law to make contributions monthly at specified percentages of the salaries, bonuses and certain allowances of our PRC-based full-time employees, up to maximum amounts specified by applicable local governments.

We enter into labor contracts and standard confidentiality agreements with our key employees. We believe that maintaining good working relationships with our employees is essential, and we have not experienced any material labor disputes.

**6. E. Share Ownership**

The following table sets forth information regarding the beneficial ownership of our ordinary shares as of April 21, 2026 by our officers, directors and 10% or greater beneficial owners of ordinary shares.

We have determined beneficial ownership in accordance with the rules of the SEC. These rules generally attribute beneficial ownership of securities to persons who possess sole or shared voting power or investment power with respect to those securities. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Unless otherwise indicated, the person identified in this table has sole voting and investment power with respect to all shares shown as beneficially owned by him, subject to applicable community property laws.

---

| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner <sup>(1)</sup>** | **Amount and Nature of Beneficial Ownership** | **Voting Right of Outstanding Shares<sup>(2)</sup>** |
| **10% or Greater Shareholders** |  |  |
| Ada Strategic Ventures Ltd | 1968504 | 10% |
| Bnb Digital Currency Technology Inc | 1968504 | 10% |
| Recaso Co Ltd | 1968504 | 10% |
| Ripple Strategy Holding Ltd | 1968504 | 10% |
| Royal Tc Group Inc | 1968504 | 10% |
| Sequoia Digital Capital Inc | 1968504 | 10% |
| Vinstory Management Limited | 1968504 | 10% |
| Wisken International Trade Limited | 1968504 | 10% |
| Yzi Labst Inc | 1968504 | 10% |
| **Executive Officers and Directors** |  |  |
| Melissa Chen\* | 0 | 0% |
| Wanli Wang\* | 0 | 0% |
| Wenbo Wang\* | 0 | 0% |
| Dongchun Fan\* | 0 | 0% |
| Jonathan Zhang\* | 0 | 0% |
| Huijie Gao\* | 0 | 0% |
| **All directors and executive officers as a group (eleven individuals)**<br>| 0 | 0% |

---

\* Less than one percent

(1) Except
 as otherwise indicated below, the business address of our directors and officers is Room 1101, 11/F., Capital Centre, 151 Gloucester
 Road, Wanchai, Hong Kong.

(2) Applicable
 percentage of ownership is based on 19,823,627 Class A Ordinary Shares voting right and 1,334 Class B Ordinary Shares at 20 times voting rights
 outstanding as of April 20, 2026.

**6. F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation.**

Not applicable.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**7. A. Major Shareholders**

See "*Item 6. Directors, Senior Management and Employees - E. Share Ownership*" for a description of our major shareholders.

**7. B. Related Party Transactions**

Employment Agreement and Compensation Agreement

*Please refer to "Item 6. Directors, Senior Management and Employees - B. Compensation - Employment Agreements".*

**7. C. Interests of Experts and Counsel**

Not applicable.

**ITEM 8. FINANCIAL INFORMATION**

**Consolidated Statements and Other Financial Information**

The financial statements required by this item may be found at the end of this annual report, beginning on page F-1.

**Legal Proceedings**

See "*Item 4.B. Business Overview - Legal Proceedings*" for a description of our currently involved legal proceedings.

**Dividends**

We have never declared or paid any dividend on our Class A Ordinary Shares and we do not anticipate paying any dividends in the future.

**No Significant Changes**

Except as disclosed in this annual report, no significant changes to our financial condition have occurred since the date of the annual financial statements contained herein. However, we have experienced several significant events subsequent to December 31, 2025.

On March 20, 2026, the Company completed the disposal of its entire legacy electric vehicle manufacturing business. This disposal represents a complete strategic shift for the Company, which is now focused exclusively on the digital asset sector. As a result of the disposal, the significant assets and liabilities associated with the discontinued operations as of December 31, 2025, are no longer part of the Company.

On January 6, 2026, the Company entered into a 12-month staking agreement for all of its 157,453,325 EDGEAI tokens. During this period, the tokens are locked and illiquid, though they are expected to generate a floating annualized yield.

Effective January 22, 2026, the Company completed a 12-for-1 share consolidation, which reduced the number of its issued and outstanding shares and adjusted the par value accordingly.

**ITEM 9. THE OFFER AND LISTING**

**9. A. Offer and Listing Details**

Our Class A Ordinary Shares are listed for trading on the Nasdaq Capital Market under the symbol "DCX" The shares began trading on June 1, 2023 on the Nasdaq Capital Market.

**9. B. Plan of Distribution**

Not Applicable.

**9. C. Markets**

Our ordinary shares are currently traded on the Nasdaq Capital Market under the symbol "DCX"

**9. D. Selling Shareholders**

Not Applicable.

**9. E. Dilution**

Not Applicable.

**9. F. Expenses of the Issuer**

Not Applicable.

**ITEM 10. ADDITIONAL INFORMATION**

**10. A. Share Capital**

Not Applicable.

**10. B. Memorandum and Articles of Association** 

We are a Cayman Islands exempted company and our affairs are governed by our memorandum and articles of association, as amended and restated from time to time, and the Companies Act (Revised) of the Cayman Islands, which we refer to as the Companies Act below. Our authorized share capital is US$3,000,000,000.00 divided into 833,333,333.33̅ shares of a par value of US$3.6 each, comprising (a) 831,833,333.33̅ class A ordinary shares of a par value of US$3.6 each (the "Class A Ordinary Shares") and (b) 1,500,000 class B ordinary shares of a par value of US$3.6 each (the "Class B Ordinary Shares"). As of December 31, 2025, 19,560,823 class A ordinary shares issued and 19,560,821 class A ordinary shares outstanding. As of April 20, 2026, 19,823,627 Class A ordinary shares were issued and outstanding, 1,334 Class B Ordinary Shares were issued and outstanding. Each Class A Ordinary Share shall entitle the holder thereof to one vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall entitle the holder thereof to 20 votes on all matters subject to vote at general meetings of the Company.

**Ordinary Shares**

*General*

On January 10, 2025, the shareholders of the Company approved and adopted an amended and restated memorandum and articles of association, which changed the authorized issued share capital of the Company from US$30,000,000.00 divided into 10,000,000,000 shares of par value of US$0.003 each, to US$30,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.003 each, consisting of (i) 9,982,000,000 class A ordinary shares and (ii) 18,000,000 class B ordinary shares each. Each class A ordinary share is entitled to one (1) vote and each class B ordinary share is entitled to twenty (20) votes. In connection with the re-designation of our authorized capital, all of the then outstanding and issued outstanding ordinary shares were converted into class A ordinary shares on a one-for-one basis.

On September 24, 2025, the Company's shareholders voted and approved at the annual general meeting that the Company shall undertake an up to 100 for 1 share consolidation of the issued and unissued shares of the Company (the "Range"), such that (i) every up to one hundred (100) class A ordinary shares of a par value of US$0.003 each be consolidated into one (1) class A ordinary share with a par value of not more than US$0.3 each, and (ii) every up to one hundred (100) class B ordinary shares of a par value of US$0.003 each be consolidated into one (1) class B ordinary share with a par value of not more than US$0.3 each (the "Share Consolidation"), with the exact ratio to be set at a whole number within the Range to be determined by the board of directors of the Company in its sole discretion and such Share Consolidation to be further implemented and effected by the board of directors of the Company. The board of directors of the Company has further resolved to implement a one hundred (100)-for-one (1) share consolidation of its issued and unissued ordinary shares, par value US$0.3 per share.

On December 22, 2025, the Company held an extraordinary general meeting of shareholders at which our shareholders approved to increase the Company's authorized share capital from US$30,000,000.00 divided into 100,000,000 shares of a par value of US$0.3 each, comprising (a) 99,820,000 class A ordinary shares of a par value of US$0.3 each and (b) 180,000 class B ordinary shares of a par value of US$0.3 each, to US$3,000,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.3 each, comprising (a) 9,982,000,000 class A ordinary shares of a par value of US$0.3 each and (b) 18,000,000 class B ordinary shares of a par value of US$0.3 each, by the creation of additional 9,882,180,000 class A ordinary shares and 17,820,000 class B ordinary shares, with immediate effect (the "Share Capital Increase"). In conjunction with this comprehensive Share Capital Increase, the shareholders granted explicit discretionary authority to the board of directors to implement one or more share consolidations of our ordinary shares over a period of up to two years from the date of the meeting. Under this authorization, the board of directors is empowered to determine the exact timing, implementation, and specific consolidation ratios at its absolute discretion, provided that the cumulative consolidation ratio across all such actions shall not exceed 3000:1, and any fractional shares resulting from such consolidations will be rounded up to the nearest whole share to facilitate administrative efficiency.

On December 24, 2025, the board implemented a share consolidation with the exact ratio as twelve (12)-for-one (1) whereby every twelve (12) class A ordinary shares of a par value of US$0.3 each be consolidated into one (1) class A ordinary share of a par value of US$3.6 of the Company and every twelve (12) class B ordinary shares of a par value of US$0.3 each be consolidated into one (1) class B ordinary share of a par value of US$3.6 of the Company.

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.

*Dividends*

The holders of our ordinary shares, are entitled to such dividends as may be declared by our board of directors, subject to Cayman Islands law, the Companies Act and the Amended and Restated Memorandum and Articles of Association. Under Cayman Islands law, a Cayman Islands company may pay a dividend either out of profit or share premium account, provided that in no circumstances may a dividend be paid if the dividend payment would result in the company being unable to pay its debts as they fall due in the ordinary course of business.

*Register of Members*

Under Cayman Islands law, we must keep a register of members and there will be entered therein:

- the names and addresses of our members, a statement of the shares held by each member, and of the amount paid or agreed to be considered as paid, on the shares of each member and the voting rights of shares of each member;

- whether voting rights are attached to the share in issue;

- the date on which the name of any person was entered on the register as a member; and

- the date on which any person ceased to be a member.

Under Cayman Islands law, the register of members of our company is prima facie evidence of the matters set out therein (i.e., the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a member registered in the register of members will be deemed as a matter of Cayman Islands law to have legal title to the shares as set against their name in the register of members. The shareholders recorded in the register of members will be deemed to have legal title to the shares set against their name. However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be rectified where it considers that the register of members does not reflect the correct legal position. If an application for an order for rectification of the register of members was made in respect of our ordinary shares, then the validity of such shares may be subject to re-examination by a Cayman Islands court.

*Voting Rights*

Each Class A Ordinary Share shall entitle the holder thereof to one vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall entitle the holder thereof to 20 votes on all matters subject to vote at general meetings of the Company. A resolution put to the vote of the meeting shall be decided on a poll. A poll shall be taken as the chairperson directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded.

If at any time the share capital of the Company is divided into different classes of shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two-thirds of the issued Shares of that class, or with the approval of a resolution passed by a majority of not less than two-thirds of the votes cast at a separate meeting of the holders of the shares of that class. For the avoidance of doubt, the Directors reserve the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of Shares of the relevant class. To any such meeting all the provisions of the Amended and Restated Memorandum and Articles of Association relating to general meetings shall apply mutatis mutandis, except that the necessary quorum shall be one person holding or representing by proxy at least 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.

If a quorum is not present within half an hour from the time appointed for the meeting to commence or if during such a meeting a quorum ceases to be present, the meeting, if convened upon a members' requisition, shall be dissolved and in any other case it shall stand adjourned to the same day in the next week at the same time and/or place or to such other day, time and/or 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 to commence, the members present shall be a quorum.

Although not required by the Companies Act or the Amended and Restated Memorandum and Articles of Association, we expect to hold general meetings annually and such meetings may be convened by our board of directors on its own initiative or upon a request to the directors by shareholders holding in aggregate at least 1/3 in par value of our issued shares that carry the right to vote at general meetings. If there are no Directors as at the date of the deposit of the Shareholders' requisition or if the Directors do not within 21 days from the date of the deposit of the Shareholders' requisition duly proceed to convene a general meeting to be held within a further 21 days, the requisitionists, or any of them representing more than one-half of the total voting rights of all of the requisitionists, may themselves convene a general meeting, but any meeting so convened shall be held no later than the day which falls three months after the expiration of the said 21 day period. Advance notice of at least 10 days is required for the convening of our annual general meeting and other general meetings.

An ordinary resolution to be passed by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast by those shareholders entitled to vote who are present in person or by proxy in a general meeting, while a special resolution requires the affirmative vote of no less than two-thirds of the votes attaching to the ordinary shares cast by those shareholders entitled to vote who are present in person or by proxy in a general meeting. Both ordinary resolutions and special resolutions may also be passed by a unanimous written resolution signed by all the shareholders of our company, as permitted by the Companies Act and the Amended and Restated Memorandum and Articles of Association. A special resolution will be required for important matters such as change of name or making further changes to the memorandum and articles of association of our company.

*Transmission of ordinary shares*

If a member dies the survivor or survivors (where they were a joint holder) or their legal personal representatives (where they were a sole holder), shall be the only persons recognized by the Company as having any title to the deceased member's shares. The estate of a deceased member is not thereby released from any liability in respect of any share, for which the member was a joint or sole holder.

Any person becoming entitled to a share in consequence of the death or bankruptcy or liquidation or dissolution of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by that person to the Company, either to become the holder of such share or to have some person nominated by them registered as the holder of such share. If they elect to have another person registered as the holder of such share they shall sign an instrument of transfer of that share to that person. 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 their death or bankruptcy or liquidation or dissolution, as the case may be.

A person becoming entitled to a share by reason of the death or bankruptcy or liquidation or dissolution of a member (or in any other case than by transfer) shall be entitled to the same dividends, other distributions and other advantages to which they would be entitled if they were the holder of such share. However, they shall not, before becoming a member in respect of a share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the directors may at any time give notice requiring any such person to elect either to be registered or to have some person nominated by them registered as 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 their death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within 90 days of being received or deemed to be received (as determined pursuant to the Amended and Restated Memorandum and Articles of Association) the directors may thereafter withhold payment of all dividends, other distributions, bonuses or other monies payable in respect of the share until the requirements of the notice have been complied with.

*Liquidation*

If the Company shall be wound up, the liquidator shall apply the assets of the Company in satisfaction of creditors ' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any shares, in a winding up: (a) if the assets available for distribution amongst the members shall be insufficient to repay the whole of the Company's issued 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; or (b) if the assets available for distribution amongst the members shall be more than sufficient to repay the whole of the Company's issued 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.

*Calls on ordinary shares and Forfeiture of Ordinary Shares*

Subject to the terms of the allotment and issue of any shares, the directors may make calls upon the members in respect of any monies unpaid on their shares (whether in respect of par value or premium), and each member shall (subject to receiving at least 14 clear days' notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on the shares. If a call or instalment of a call remains unpaid after it has become due and payable the directors may give to the person from whom it is due not less than 14 clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the shares in respect of which the call was made will be liable to be forfeited.

*Redemption, Repurchase and Surrender of Ordinary Shares*

Subject to the provisions of the Companies Act, and, where applicable, the rules and regulations of the Nasdaq, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under applicable law, the Company may issue shares that are to be redeemed or are liable to be redeemed at the option of the member or the Company. The redemption of such shares shall be effected in such manner and upon such other terms as may be determined by the directors before the issue of the shares. We may also our own shares (including any redeemable shares) in such manner and on such other terms as the directors may agree with the relevant member. Under the Companies Act, the redemption or repurchase of any share may be paid out of our profits or out of the proceeds of a fresh issue of shares made for the purpose of such redemption or repurchase, or out of capital (including share premium account and capital redemption reserve) if we can, immediately following such payment, pay its debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding, or (c) if the company has commenced liquidation. In addition, we may accept the surrender of any fully paid share for no consideration.

*Variations of Rights of Shares*

If at any time the share capital of the Company is divided into different classes of shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued shares of that class where such variation is considered by the directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the approval of a resolution passed by a majority of not less than two-thirds of the votes cast at a separate meeting of the holders of the shares of that class.

*Inspection of Books and Records*

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (save for the memorandum and articles of association, register of mortgages and charges, and the special resolutions passed by shareholders) or to obtain copies of the register of members of these companies. Under Cayman Islands law, the names of current directors of our Company can be obtained from a search conducted at the Registrar of Companies in the Cayman Islands. See "*Where You Can Find Additional Information*."

*Changes in Capital*

We may from time to time by ordinary resolution:

● increase its share capital by such sum as the ordinary resolution shall prescribe and with such rights, priorities and privileges annexed thereto, as the Company in general meeting may determine;

● consolidate and divide all or any of its share capital into shares of a larger amount than its existing shares;

● convert all or any of its paid up shares into stock and reconvert that stock into paid up shares of any denomination;

● by subdivision of its existing shares or any of them divide the whole or any part of its share capital into shares of smaller amount than is fixed by the Amended and Restated Memorandum and Articles of Association or into shares without par value; and

● cancel any shares which, at the date of the passing of the ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of its share capital by the amount of the shares so cancelled.

We may by special resolution reduce its share capital and any capital redemption reserve in any manner authorized by law.

**Preferred Shares**

Subject to the provisions, if any, in the Amended and Restated Memorandum and Articles of Association (and to any direction that may be given by the Company in general meeting) and, where applicable, the rules and regulations of the Nasdaq, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under applicable law, and without prejudice to any rights attached to any existing shares, the directors may allot, issue, grant options over or otherwise dispose of shares (including fractions of a share) with or without preferred, deferred or other rights or restrictions, whether in regard to dividend or other distribution, voting, return of capital or otherwise and to such persons, at such times and on such other terms as they think proper, and may also (subject to the Companies Act and the Amended and Restated Memorandum and Articles of Association) vary such right.

Our board of directors may issue preferred shares without action by our shareholders to the extent authorized but unissued. In addition, the issuance of preferred shares may be used as an anti-takeover device without further action on the part of the shareholders. Issuance of these shares may dilute the voting power of holders of ordinary shares.

**Reverse stock split**

On July 8 2024, we implemented a reserve stock split at the ratio of 30:1.

On November 3, 2025, we implemented a one hundred (100)-for-one (1) share consolidation of its issued and unissued ordinary shares, par value US$0.3 per share.

On December 24, 2025, the board implemented a share consolidation with the exact ratio as twelve (12)-for-one (1) whereby every twelve (12) class A ordinary shares of a par value of US$0.3 each be consolidated into one (1) class A ordinary share of a par value of US$3.6 of the Company and every twelve (12) class B ordinary shares of a par value of US$0.3 each be consolidated into one (1) class B ordinary share of a par value of US$3.6 of the Company.

**Contingent Value Rights**

In connection with the Business Combination, holders of JWAC Common Stock who did not redeem their shares received a contingent value right ("CVR") for each share of JWAC Common Stock that was not redeemed. In the event that the Earnout criteria (as described below) are not met by the Company, the Sellers shall forfeit a portion of their ordinary shares, representing an adjustment to the consideration provided to the Sellers, and the Company will issue an equal amount of ordinary shares to the CVR holders on a pro rata basis. Holders of privately placed JWAC Common Stock and Class B Common Stock have waived their rights to receive CVRs for those privately placed shares. At the closing, holders holding 12,499,295 shares of JWAC Common Stock exercised their redemption right and 1,300,705 shares of JWAC Common Stock were held by public shareholders. As a result, a total of 1,300,705 CVRs were issued.

Pursuant to the terms of the Business Combination Agreement, the issuance of 64,084,889 class A ordinary shares to certain Sellers who were earnout participants (the "Earnout Participants"), was subject to an Earnout equal in value to $674,000,000) (such ordinary shares, subject to equitable adjustment for share splits, share dividends, combinations, recapitalizations and the like after the Closing, including to account for any equity securities into which such shares are exchanged or converted, and together with the earnings thereof, the "Earnout Shares").

The Earnout Shares were to vest based on either meeting the criteria relating to (i) consolidated gross revenues or (ii) the closing price of the Company's ordinary shares, and vest in three tranches consisting of up to 30% for 2023, 30% for 2024, and any remaining unvested amount for 2025 (in each case without giving effect to any prior surrenders of Earnout Shares and together with any Earnings as defined in the Business Combination Agreement), as described as follows:

● The first tranche was to (i) vest proportionately based on the consolidated gross revenues of the Company (including the period prior to Closing) as set forth in the audited annual financial statements included in our Form 20-F for the calendar year ended December 31, 2023 (as adjusted for a fixed 6.5-to-1 Chinese yuan renminbi to U.S. dollar exchange rate) in excess of $528,000,000, up to a maximum of 100% of the first tranche at $801,000,000 in consolidated gross revenues, or alternatively (ii) vest for 100% of the first tranche if the Company's class A ordinary shares on Nasdaq trade at least at the price of $13.00 per share (as equitably adjusted for share splits, share capitalizations, share consolidations, subdivisions, share dividends, reorganizations, recapitalizations and the like) for at least twenty (20) out of thirty (30) trading days, through and including the thirtieth (30th) trading day after the date on which we filed our annual report on Form 20-F (such trading criteria being collectively the "Trading Criteria").

● The second tranche was to either (i) vest proportionately based on the consolidated gross revenues of the Company (including the period prior to Closing) as set forth in the audited annual financial statements included in this Form 20-F (as adjusted for a fixed 6.5-to-1 Chinese yuan renminbi to U.S. dollar exchange rate) in excess of $870,000,000, up to a maximum of 100% of the second tranche at $2,206,000,000 in consolidated gross revenues, or alternatively (ii) vest for 100% of the second tranche based on meeting the Trading Criteria during the applicable period for the year ended December 31, 2024.

● Any remaining Earnout Shares not vested in the first or second tranches are eligible either to (i) vest proportionately based on the consolidated gross revenues of the Company (including the period prior to Closing) as set forth in the audited annual financial statements included in Form 20-F filed with the SEC for the calendar year ended December 31, 2025 (as adjusted for a fixed 6.5-to-1 Chinese yuan renminbi to U.S. dollar exchange rate) in excess of $1,616,000,000, up to a maximum of 100% of the final tranche at $3,215,000,000 in consolidated gross revenues, or alternatively (ii) vest for 100% of the final tranche based on meeting the Trading Criteria during the applicable period for the year ended December 31, 2025.

Any Earnout Shares (and earnings thereon) that are surrendered by the Earnout Participants in accordance with the Business Combination Agreement will be, with respect to ordinary shares, cancelled by the Company and returned to the authorized but unissued share capital (with any other securities or property included within the surrendered Earnout Shares or earnings being held in reserve by the Company). These will then be promptly reissued by the Company as newly issued ordinary shares, and other securities or property included within the surrendered Earnout Shares will be delivered to the CVR rights agent American Stock Transfer & Trust Company, the rights agent designed under the Rights Agreement (the "rights agent") for distribution to the holders of CVRs in accordance with the terms of the Business Combination Agreement and the CVR Agreement. Such newly reissued ordinary shares and other securities or property included within the surrendered Earnout Shares that are delivered to the CVR rights agent are referred to as the "CVR Property". Pursuant to the BCA and CVR Agreement, the CVR Property will be distributed by the CVR rights agent to the holders of CVRs promptly after the CVR rights agent's receipt of the CVR Property. The CVR Property (including each type of security or property included in the CVR Property) will be allocated among all holders of CVRs pro rata, based on their respective number of CVRs held.

The CVRs do not have any voting or dividend rights, and interest will not accrue on any amounts payable in respect of the CVRs. The CVRs do not represent any equity or ownership interest in the Company.

After the reverse stock split of July 8, 2024, the 64,084,889 class A ordinary shares that certain Sellers were entitled to became 2,136,163 class A ordinary shares, 30% of which were allocated to such Seller as of October 17, 2024 as the first tranche of Earnout Shares.

**Exempted Company**

We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except for the exemptions and privileges listed below:

● an exempted company does not have to file an annual return of its shareholders with the Cayman Registrar;

● an exempted company's register of members is not open to inspection;

● an exempted company does not have to hold an annual general meeting;

● an exempted company may issue shares with no par value;

● an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

● an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● an exempted company may register as a limited duration company; and

● an exempted company 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 the 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).

**Anti-Money Laundering - Cayman Islands**

If any person resident in the Cayman Islands knows or suspects or has reasonable grounds for knowing or suspecting that another person is engaged in criminal conduct or money laundering or is involved with terrorism or terrorist financing and property and the information for that knowledge or suspicion came to their attention in the course of business in the regulated sector, or other trade, profession, business or employment, the person will be required to report such knowledge or suspicion to (i) a nominated officer (appointed in accordance with the Proceeds of Crime Act (Revised) of the Cayman Islands) or the Financial Reporting Authority of the Cayman Islands, pursuant to the Proceeds of Crime Act (Revised) of the Cayman Islands if the disclosure relates to criminal conduct or money laundering, or (ii) a police officer of the rank of constable or higher, or the Financial Reporting Authority, pursuant to the Terrorism Act (Revised) of the Cayman Islands, if the disclosure relates to involvement with terrorism or terrorist financing and property. Such a report shall not be treated as a breach of confidence or of any restriction upon the disclosure of information imposed by any enactment or otherwise.

**Data Protection - Cayman Islands**

We have certain duties under the Data Protection Act (Revised) of the Cayman Islands (the "Data Protection Act") based on internationally accepted principles of data privacy.

**Privacy Notice**

*Introduction*

This privacy notice puts our shareholders on notice that through your investment in the Company, you will provide us with certain personal information which constitutes personal data within the meaning of the Data Protection Act ("personal data"). In the following discussion, the "company" refers to us and our affiliates and/or delegates, except where the context requires otherwise.

*Investor Data*

We will collect, use, disclose, retain and secure personal data to the extent reasonably required only and within the parameters that could be reasonably expected during the normal course of business. We will only process, disclose, transfer or retain personal data to the extent legitimately required to conduct our activities of on an ongoing basis or to comply with legal and regulatory obligations to which we are subject. We will only transfer personal data in accordance with the requirements of the Data Protection Act, and will apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of the personal data and against the accidental loss, destruction or damage to the personal data.

In our use of this personal data, we will be characterized as a "data controller" for the purposes of the Data Protection Act, while our affiliates and service providers who may receive this personal data from us in the conduct of our activities may either act as our "data processors" for the purposes of the Data Protection Act or may process personal information for their own lawful purposes in connection with services provided to us.

We may also obtain personal data from other public sources. Personal data includes, without limitation, the following information relating to a shareholder and/or any individuals connected with a shareholder as an investor: name, residential address, email address, contact details, corporate contact information, signature, nationality, place of birth, date of birth, tax identification, credit history, correspondence records, passport number, bank account details, source of funds details and details relating to the shareholder's investment activity.

*Who this Affects*

If you are a natural person, this will affect you directly. If you are a corporate investor (including, for these purposes, legal arrangements such as trusts or exempted limited partnerships) that provides us with personal data on individuals connected to you for any reason in relation your investment in the company, this will be relevant for those individuals and you should transmit the content of this Privacy Notice to such individuals or otherwise advise them of its content.

*How We May Use a Shareholder's Personal Data*

As the data controller, we may collect, store, and use personal data for lawful purposes, including, in particular:

a) where this is necessary for the performance of our rights and obligations under any purchase agreements;

b) where this is necessary for compliance with a legal and regulatory obligation to which we are subject (such as compliance with anti-money laundering and FATCA/CRS requirements); and/or

c) where this is necessary for the purposes of our legitimate interests and such interests are not overridden by your interests, fundamental rights, or freedoms.

Should we wish to use personal data for other specific purposes (including, if applicable, any purpose that requires your consent), we will contact you.

*Why We May Transfer Your Personal Data*

In certain circumstances, we may be legally obliged to share personal data and other information with respect to your shareholding with the relevant regulatory authorities such as the Cayman Islands Monetary Authority or the Tax Information Authority. They, in turn, may exchange this information with foreign authorities, including tax authorities.

We anticipate disclosing personal data to persons who provide services to us and their respective affiliates (which may include certain entities located outside the United States, the Cayman Islands, or the European Economic Area), who will process your personal data on our behalf.

*The Data Protection Measures We Take*

Any transfer of personal data by us or our duly authorized affiliates and/or delegates outside of the Cayman Islands shall be in accordance with the requirements of the Data Protection Act.

We and our duly authorized affiliates and/or delegates shall apply appropriate technical and organizational information security measures designed to protect against unauthorized or unlawful processing of personal data, and against accidental loss or destruction of, or damage to, personal data.

We shall notify you of any personal data breach that is reasonably likely to result in a factor to your interests, fundamental rights, or freedoms or those data subjects to whom the relevant personal data relates.

**Anti-Takeover Provisions**

Some provisions of Cayman Islands law and our Amended and Restated Memorandum and Articles of Association may have the effect of delaying, deterring, or discouraging another party from acquiring control of our company. Our Amended and Restated Memorandum and Articles of Association provide for restrictions requiring the holders of shares together carrying at least one-third of the rights to vote at a shareholder meeting to be able to requisition a general meeting of shareholders. As a matter of Cayman Islands law, any resolutions in writing must be passed unanimously.

These provisions of our Amended and Restated Memorandum and Articles of Association and Cayman Islands law could delay the ability of shareholders to change the membership of a majority of our board, force shareholder action to be taken at an annual general meeting or an extraordinary general meeting called by our board of directors or on the requisition of the holders of shares carrying at least one-third of the rights to vote at a shareholder meeting of our company, and in turn delay the ability of shareholders to force consideration of a proposal or take action.

Our Amended and Restated Memorandum and Articles of Association require an ordinary resolution to remove any director. Our Amended and Restated Memorandum and Articles of Association and Cayman Islands law also require a special resolution to amend the Amended and Restated Memorandum and Articles of Association. Such requirements may prevent our existing shareholders from effecting a change of management of our company and removing the provisions in our constitutional documents that may have an anti-takeover effect.

**Representative Warrant**

Upon the closing of the JWAC IPO, JWAC issued to I-Bankers Securities, Inc. ("I-Bankers" or "Representative"), the representative of the underwriters in the JWAC IPO, a five-year warrant to purchase shares of JWAC Common Stock, equal to 3.0% of the shares issued in the JWAC IPO ("Representative Warrants"). The exercise price of Representative Warrants was $12.00 per share and were exercisable, in whole or in part, for cash or on a cashless basis until December 9, 2026.

The Representative Warrants granted to its holders demand and "piggy-back" registration rights for periods of five and seven years from December 9, 2021.

At the Closing of the Business Combination, all of the Representative Warrants have been exchanged for a substantially similar warrant to purchase of our class A ordinary shares on the same terms and conditions as the original warrant.

**GT Warrant**

Pursuant to a warrant purchase agreement (the "GT Warrant Agreement") by and among Greentree Financial Group Inc. and Shandong Baoya dated as of February 15, 2022, a warrant (the "GT Warrant") was issued on February 15, 2022 to Greentree Financial Group Inc. by Shandong Baoya, for services rendered, to purchase 166,667 shares of Shandong Baoya's common stock, exercisable at $60.00 per share for five years. The GT Warrant was replaced with an equivalent warrant exercisable into our class A ordinary shares.

**10. C. Material Contracts**

We have not entered into any material contracts other than in the ordinary course of business and other than those described in "*Item 4. Information on the Company*" or elsewhere in this annual report.

**10. D. Exchange Controls**

***Cayman Islands***

There are currently no exchange control regulations in the Cayman Islands applicable to us or our shareholders.

***The PRC***

China regulates foreign currency exchanges primarily through the following rules and regulations:

● Foreign
 Currency Administration Rules of 1996, as amended; and

● Administrative
 Rules of the Settlement, Sale and Payment of Foreign Exchange of 1996.

As we disclosed in the risk factors above, Renminbi is not a freely convertible currency at present. Under the current PRC regulations, conversion of Renminbi is permitted in China for routine current-account foreign exchange transactions, including trade and service-related foreign exchange transactions, payment of dividends and service of foreign debts. Conversion of Renminbi for most capital-account items, such as direct investments, investments in PRC securities markets and repatriation of investments, however, is still subject to the approval of SAFE.

Pursuant to the above-mentioned administrative rules, foreign-invested enterprises may buy, sell and/or remit foreign currencies for current account transactions at banks in China with authority to conduct foreign exchange business by complying with certain procedural requirements, such as presentment of valid commercial documents. For capital-account transactions involving foreign direct investment, foreign debts and outbound investment in securities and derivatives, approval from SAFE is a pre-condition. Capital investments by foreign-invested enterprises outside China are subject to limitations and requirements in China, such as prior approvals from the PRC Ministry of Commerce or SAFE.

**10. E. Taxation**

The following discussion of material Cayman Islands, PRC and United States federal income tax consequences of an investment in our ordinary shares is based upon laws and relevant interpretations thereof in effect as of the date of this annual report, all of which are subject to change. This discussion does not deal with all possible tax consequences relating to an investment in our ordinary shares, such as the tax consequences under state, local and other tax laws.

***Cayman Islands Tax Considerations***

The following is a discussion on certain Cayman Islands income tax consequences of an investment in our Ordinary Shares. The discussion is a general summary of present law, which is subject to prospective and retroactive change. It is not intended as tax advice, does not consider any investor's particular circumstances, and does not consider tax consequences other than those arising under Cayman Islands law.

*Under Existing Cayman Islands Laws*

Payments of dividends and capital in respect of our Ordinary Shares will not be subject to taxation in the Cayman Islands and no withholding will be required on the payment of a dividend or capital to any holder of our Ordinary Shares nor will gains derived from the disposal of the securities be subject to Cayman Islands income or corporate tax. The Cayman Islands currently has no income, corporate or capital gains tax and no estate duty, inheritance tax or gift tax.

No stamp duty is payable in respect of the issue of our Ordinary Shares or on an instrument of transfer in respect of such shares.

***People's Republic of China Taxation***

Under the Enterprise Income Tax Law, an enterprise established outside the PRC with a "de facto management body" within the PRC is considered a PRC resident enterprise for PRC enterprise income tax purposes and is generally subject to a uniform 25% enterprise income tax rate on its worldwide income as well as tax reporting obligations. Under the Implementation Rules, a "de facto management body" is defined as a body that has material and overall management and control over the manufacturing and business operations, personnel and human resources, finances and properties of an enterprise.

In addition, State Administration of Taxation (SAT) Circular 82 issued in April 2009 specifies that certain offshore-incorporated enterprises controlled by PRC enterprises or PRC enterprise groups will be classified as PRC resident enterprises if all of the following conditions are met: (a) senior management personnel and core management departments in charge of the daily operations of the enterprises have their presence mainly in the PRC; (b) their financial and human resources decisions are subject to determination or approval by persons or bodies in the PRC; (c) major assets, accounting books and company seals of the enterprises, and minutes and files of their board's and shareholders' meetings are located or kept in the PRC; and (d) half or more of the enterprises' directors or senior management personnel with voting rights habitually reside in the PRC. Further to SAT Circular 82, the SAT issued Announcement of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Income Tax on Chinese-controlled Resident Enterprises Incorporated Overseas (Trial Implementation) (the "SAT Bulletin 45") on July 27, 2011, which took effect on September 1, 2011, to provide more guidance on the implementation of SAT Circular 82. SAT Bulletin 45 provides for procedures and administration details of determination on PRC resident enterprise status and administration on post-determination matters. If the PRC tax authorities determine that Digital Currency X Technology Inc. is a PRC resident enterprise for PRC enterprise income tax purposes, a number of unfavorable PRC tax consequences could follow. For example, Digital Currency X Technology Inc. may be subject to enterprise income tax at a rate of 25% with respect to its worldwide taxable income. Also, a 10% withholding tax would be imposed on dividends we pay to our non-PRC enterprise shareholders and with respect to gains derived by our non-PRC enterprise shareholders from transferring our shares or ordinary shares and potentially a 20% of withholding tax would be imposed on dividends we pay to our non-PRC individual shareholders and with respect to gains derived by our non-PRC individual shareholders from transferring our shares or ordinary shares.

It is unclear whether, if we are considered a PRC resident enterprise, holders of our shares or ordinary shares would be able to claim the benefit of income tax treaties or agreements entered into between China and other countries or areas. See "*Risk Factors - Risk Factors Related to Doing Business in China - Under the PRC Enterprise Income Tax Law, we may be classified as a PRC "resident enterprise" for PRC enterprise income tax purposes. Such classification would likely result in unfavorable tax consequences to us and our non-PRC enterprise shareholders and has a material adverse effect on our results of operations and the value of your investment income tax consequences*."

The SAT and the Ministry of Finance issued the Notice of Ministry of Finance and State Administration of Taxation on Several Issues relating to Treatment of Corporate Income Tax Pertaining to Restructured Business Operations of Enterprises (the "SAT Circular 59") in April 2009, which took effect on January 1, 2008. On October 17, 2017, the SAT issued the Announcement of the State Administration of Taxation on Issues Relating to Withholding at Source of Income Tax of Non-resident Enterprises, which took effect on December 1, 2017 and was amended on June 15, 2018 (the "SAT Circular 37"). By promulgating and implementing the SAT Circular 59 and the SAT Circular 37, the PRC tax authorities have enhanced their scrutiny over the direct or indirect transfer of equity interests in a PRC resident enterprise by a non-PRC resident enterprise.

Pursuant to the Arrangement between the mainland China and the Hong Kong Special Administrative Region for the Avoidance of Double Taxation and Tax Evasion on Income, or the Tax Arrangement, where a Hong Kong resident enterprise which is considered a non-PRC tax resident enterprise directly holds at least 25% of a PRC enterprise, the withholding tax rate in respect of the payment of dividends by such PRC enterprise to such Hong Kong resident enterprise is reduced to 5% from a standard rate of 10%, subject to approval of the PRC local tax authority.

Pursuant to the Circular of the State Administration of Taxation on the Issues concerning the Application of the Dividend Clauses of Tax Agreements ("Circular 81"), a resident enterprise of the counter-party to such Tax Arrangement should meet all of the following conditions, among others, in order to enjoy the reduced withholding tax under the Tax Arrangement: (i) it must take the form of a company; (ii) it must directly own the required percentage of equity interests and voting rights in such PRC resident enterprise; and (iii) it should directly own such percentage of capital in the PRC resident enterprise anytime in the 12 consecutive months prior to receiving the dividends. Furthermore, the Administrative Measures for Non-Resident Taxpayers to Enjoy Treatments under Tax Treaties, or the Administrative Measures, which took effect in November 2015, requires that the non-resident taxpayer shall determine whether it may enjoy the treatments under relevant tax treaties and file the tax return or withholding declaration subject to further monitoring and oversight by the tax authorities. Accordingly, Digital Currency X Technology Inc. may be able to enjoy the 5% withholding tax rate for the dividends it receives from WFOE, if it satisfies the conditions prescribed under Circular 81 and other relevant tax rules and regulations. However, according to Circular 81, if the relevant tax authorities consider the transactions or arrangements, we have are for the primary purpose of enjoying a favorable tax treatment, the relevant tax authorities may adjust the favorable withholding tax in the future.

***Certain Material U.S. Federal Income Tax Considerations***

Subject to the limitations and qualifications set forth herein, the following is a summary of the material U.S. federal income tax consequences relating to the ownership and disposition of our ordinary shares by a U.S. Holder, as defined below, that acquires our ordinary shares as "capital assets" (generally, property held for investment) under the Code. This summary is general in nature and does not constitute tax advice. This summary does not discuss all aspects of U.S. federal income taxation that might be relevant to a particular holder of our ordinary shares in light of such holder's individual circumstances or status, nor does it address tax consequences applicable to holders of our ordinary shares subject to special rules, such as:

● dealers in securities or foreign currency;

● broker-dealers;

● traders in securities that elect to use a mark-to-market method of accounting;

● tax-exempt organizations;

● financial institutions, banks or trusts;

● mutual funds;

● life insurance companies, real estate investment trusts and regulated investment companies;

● holders that actually or constructively own 10% or more of our voting stock;

● holders that hold Class A Ordinary Shares as part of a hedge, straddle, constructive sale, conversion transaction or other integrated investment;

● holders that have a functional currency other than the U.S. dollar;

● holders that received Class A Ordinary Shares through the exercise of employee stock options, through a tax-qualified retirement plan or otherwise as compensation;

● U.S. expatriates;

● controlled foreign corporations;

● persons subject to special tax accounting rules as a result of any item of gross income with respect to Class A Ordinary Shares being taken into account in an applicable financial statement;

● passive foreign investment companies; or

● pass-through entities or investors in pass-through entities.

This summary is based on the Code, applicable Treasury regulations thereunder, and judicial and administrative interpretations thereof, all as in effect as of the date of this annual report, and all of which may change, possibly with retroactive effect. Any such change could impact the conclusions discussed below. This summary does not address U.S. federal taxes other than those pertaining to U.S. federal income taxation (such as estate or gift taxes, the alternative minimum tax or the Medicare tax on investment income), nor does it address any aspects of U.S. state or local or non-U.S. taxation. The discussion set forth below is addressed only to U.S. Holders of our ordinary shares.

Digital Currency X has not and does not intend to seek any rulings from the U.S. Internal Revenue Service (the "IRS") regarding the subjects addressed in this summary. There can be no assurance that the IRS will not take positions inconsistent with the consequences discussed below or that any such positions would not be sustained by a court.

If a partnership (or any entity or arrangement characterized as a partnership for U.S. federal income tax purposes) holds Class A Ordinary Shares, the tax treatment of such partnership and any person treated as a partner of such partnership will generally depend on the status of the partner and the activities of the partnership. Partnerships that hold Class A Ordinary Shares and persons that are treated as partners of such partnerships should consult their own tax advisors as to the particular U.S. federal income tax consequences to them of the ownership and disposition of our ordinary shares.

**THE U.S. FEDERAL INCOME TAX TREATMENT OF THE OWNERSHIP AND DISPOSITION OF ORDINARY SHARES TO ANY PARTICULAR HOLDER WILL DEPEND ON THE HOLDER'S PARTICULAR TAX CIRCUMSTANCES. YOU ARE URGED TO CONSULT YOUR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL, STATE, LOCAL, AND NON-U.S. INCOME AND OTHER TAX CONSEQUENCES TO YOU, IN LIGHT OF YOUR PARTICULAR INVESTMENT OR TAX CIRCUMSTANCES, OF THE OWNERSHIP AND DISPOSITION OF ORDINARY SHARES.**

For purposes of this summary, a U.S. Holder means a beneficial owner of Class A Ordinary Shares that is, for U.S. federal income tax purposes:

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| |
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| an individual who is a citizen or resident of the United States; |
| a corporation (or other entity that is treated as a corporation for U.S. federal income tax purposes) organized in or under the laws of the United States or any state therein or the District of Columbia; |
| an estate the income of which is includible in gross income for U.S. federal income tax purposes regardless of its source; or |
| a trust (i) that is subject to the primary supervision of a court within the United States and all substantial decisions of which are controlled by one or more U.S. persons or (ii) that has a valid election in effect under applicable Treasury regulations to be treated as a U.S. person. |

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*U.S. Federal Income Tax Treatment of Digital Currency X*

*Tax Residence of Digital Currency X for U.S. Federal Income Tax Purposes*

Although Digital Currency X is incorporated in the Cayman Islands, the IRS may assert that it should be treated as a U.S. corporation for U.S. federal income tax purposes pursuant to Section 7874 of the Code. For U.S. federal income tax purposes, a corporation is generally considered a U.S. "domestic" corporation if it is created or organized in or under the laws of the U.S., any state thereof, or the District of Columbia. Because Digital Currency X is not so created or organized (but is instead incorporated only in the Cayman Islands), it would generally be classified as a foreign corporation (that is, a corporation other than a U.S. "domestic" corporation) under these rules. Section 7874 of the Code provides an exception under which a corporation created or organized only under foreign law may, in certain circumstances, be treated as a U.S. corporation for U.S. federal income tax purposes. The Section 7874 rules are complex and require analysis of all relevant facts, and there is limited guidance and significant uncertainties as to their application.

Under Code Section 7874, a corporation created or organized outside the U.S. (i.e., a foreign corporation) will nevertheless be treated as a U.S. corporation for U.S. federal income tax purposes when (i) the foreign corporation directly or indirectly acquires substantially all of the assets held directly or indirectly by a U.S. corporation (including the indirect acquisition of assets of the U.S. corporation by acquiring the outstanding shares of the U.S. corporation), (ii) the shareholders of the acquired U.S. corporation hold, by vote or value, at least 80% of the shares of the foreign acquiring corporation after the acquisition by reason of holding shares in the U.S. acquired corporation (the "Section 7874 Percentage"), and (iii) the foreign corporation's "expanded affiliated group" does not have substantial business activities in the foreign corporation's country of creation or organization relative to such expanded affiliated group's worldwide activities (the "***Substantial Business Activities Exception***"). In order to satisfy the Substantial Business Activities Exception, at least 25% of the employees (by headcount and compensation), real and tangible assets, and gross income of the foreign acquiring corporation's "expanded affiliated group" must be based, incurred, located, and derived, respectively, in the country in which the foreign acquiring corporation is created or organized. The Section 7874 Regulations further provide for a number of special rules that aggregate multiple acquisitions of U.S. corporations for purposes of Code Section 7874 that are made as part of a plan or made over a 36-month period, making it more likely that Code Section 7874 will apply to a foreign acquiring corporation.

Digital Currency X has indirectly acquired substantially all of the assets of JWAC through the Business Combination. As a result, Section 7874 of the Code may apply to cause Digital Currency X to be treated as a U.S. corporation for U.S. federal income tax purposes following the Business Combination depending on whether the Section 7874 Percentage equals or exceeds 80%, subject to the applicability of the Substantial Business Activities Exception.

Based upon the terms of the Business Combination, the rules for determining share ownership under Code Section 7874 and the Section 7874 Regulations, and certain factual assumptions, we currently expect that the Section 7874 Percentage of JWAC stockholders in Digital Currency X were less than 80% after the Business Combination. Accordingly, Digital Currency X is not expected to be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code. The calculation of the Section 7874 Percentage is complex, is subject to detailed regulations (the application of which is uncertain in various respects and could be impacted by changes in U.S. tax laws and regulations with possible retroactive effect), and is subject to certain factual uncertainties. Accordingly, there can be no assurance that the IRS will not challenge the status of Digital Currency X as a foreign corporation under Code Section 7874 or that such challenge would not be sustained by a court.

If the IRS were to successfully challenge under Code Section 7874 Digital Currency X's status as a foreign corporation for U.S. federal income tax purposes, Digital Currency X and certain Digital Currency X shareholders could be subject to significant adverse tax consequences, including a higher effective corporate income tax rate on Digital Currency X and future withholding taxes on certain Digital Currency X shareholders. In particular, holders of Class A Ordinary Shares would be treated as holders of stock of a U.S. corporation.

However, even if the Section 7874 Percentage was such that Digital Currency X were still respected as a foreign corporation under Code Section 7874, Digital Currency X may be limited in using its equity to engage in future acquisitions of U.S. corporations over a 36-month period following the Business Combination. If Digital Currency X were to be treated as acquiring substantially all of the assets of a U.S. corporation within a 36-month period after the Business Combination, the Section 7874 Regulations would exclude certain shares of Digital Currency X attributable to the Business Combination for purposes of determining the Section 7874 Percentage of that subsequent acquisition, making it more likely that Code Section 7874 would apply to such subsequent acquisition.

The remainder of this discussion assumes that Digital Currency X will not be treated as a U.S. corporation for U.S. federal income tax purposes under Section 7874 of the Code.

*Utilization of JWAC's Tax Attributes and Certain Other Adverse Tax Consequences to Digital Currency X and Digital Currency X's Shareholders*

Following the acquisition of a U.S. corporation by a foreign corporation, Code Section 7874 can limit the ability of the acquired U.S. corporation and its U.S. affiliates to use U.S. tax attributes (including net operating losses and certain tax credits) to offset U.S. taxable income resulting from certain transactions, as well as result in certain other adverse tax consequences, even if the acquiring foreign corporation is respected as a foreign corporation for purposes of Code Section 7874. Specifically, Code Section 7874 can apply in this manner if (i) the foreign corporation acquires, directly or indirectly, substantially all of the properties held directly or indirectly by a U.S. corporation, (ii) after the acquisition, the former shareholders of the acquired U.S. corporation hold at least 60% (by either vote or value) but less than 80% (by vote and value) of the shares of the foreign acquiring corporation by reason of holding shares in the acquired U.S. corporation, and (iii) the foreign corporation's "expanded affiliated group" does not meet the Substantial Business Activities Exception.

Based upon the terms of the Business Combination, the rules for determining share ownership under Section 7874 of the Code and the Section 7874 Regulations, and certain factual assumptions, we currently expect that the Section 7874 Percentage of JWAC stockholders in Digital Currency X were less than 60% after the Business Combination. Accordingly, the limitations and other rules described above do not apply to Digital Currency X or JWAC after the Business Combination.

If the Section 7874 Percentage applicable to the Business Combination is at least 60% but less than 80%, Digital Currency X and certain of Digital Currency X's shareholders may be subject to adverse tax consequences including, but not limited to, restrictions on the use of tax attributes with respect to "inversion gain" recognized over a 10-year period following the transaction, disqualification of dividends paid from preferential "qualified dividend income" rates, and the requirement that any U.S. corporation owned by Digital Currency X include as "base erosion payments" that may be subject to a minimum U.S. federal income tax any amounts treated as reductions in gross income paid to certain related foreign persons. Furthermore, certain "disqualified individuals" (including officers and directors of a U.S. corporation) may be subject to an excise tax on certain stock-based compensation at a rate of 20%.

The determination that the Section 7874 Percentage should be less than 60% after the Business Combination is subject to detailed regulations (the application of which is uncertain in various respects and would be impacted by future changes in tax laws and regulations, with possible retroactive effect) and is subject to certain factual uncertainties. There can be no assurance that the IRS will not challenge whether Digital Currency X is subject to the above rules or that such a challenge would not be sustained by a court. If the IRS successfully applied these rules to Digital Currency X, significant adverse tax consequences could result for Digital Currency X and for certain Digital Currency X shareholders, including a higher effective corporate tax rate on Digital Currency X U.S. Holders.

*Taxation of Dividends and Other Distributions on our Ordinary Shares*

Subject to the discussion above under "- *Utilization of JWAC's Tax Attributes and Certain Other Adverse Tax Consequences to Digital Currency X and Digital Currency X's Shareholders"* and below under "- *Passive Foreign Investment Company Rules*," a U.S. Holder generally will be required to include in gross income as dividends the amount of any distribution (except certain distributions of ordinary shares or rights to acquire ordinary shares) paid on the Class A Ordinary Shares. A distribution on such shares generally will be treated as a dividend for U.S. federal income tax purposes to the extent the distribution is paid out of Digital Currency X's current and/or accumulated earnings and profits (as determined under U.S. federal income tax principles). A portion of any such dividends paid to corporate U.S. Holders generally will qualify for the dividends received deduction if the requisite holding period is satisfied. Dividends paid to a non-corporate U.S. Holder generally will constitute "qualified dividend income" within the meaning of Section 1(h)(11) of the Code, and provided certain requirements are met, such dividend will be subject to tax at the maximum tax rate accorded to long-term capital gains.

Non-corporate U.S. Holders that do not meet a minimum holding period requirement or that elect to treat the dividend income as "investment income" pursuant to Section 163(d)(4) of the Code (dealing with the deduction for investment interest expense) will not be eligible for the reduced rates of taxation applicable to qualified dividend income. In addition, the rate reduction will not apply to dividends if the recipient of a dividend is obligated to make related payments with respect to positions in substantially similar or related property. This disallowance applies even if the minimum holding period has been met.

Distributions in excess of Digital Currency X's current and accumulated earnings and profits generally will be applied against and reduce the U.S. Holder's basis in its shares of Digital Currency X (but not below zero), and any excess will be treated as gain from the sale or exchange of such shares as described below under "*Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of our Ordinary Shares*."

*Gain or Loss on Sale, Taxable Exchange or Other Taxable Disposition of our Ordinary Shares*

Subject to the discussion below under "- *Passive Foreign Investment Company Rules*," upon a sale or other taxable disposition of Class A Ordinary Shares, a U.S. Holder generally will recognize capital gain or loss in an amount equal to the difference between the amount realized and the U.S. Holder's adjusted tax basis in the ordinary shares.

Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder's holding period in the Class A Ordinary Shares exceeds one year. Long-term capital gains recognized by non-corporate U.S. Holders will be eligible to be taxed at reduced rates. The deductibility of capital losses realized by a U.S. Holder on a sale or other taxable disposition of Class A Ordinary Shares is subject to certain limitations.

Generally, the amount of gain or loss recognized by a U.S. Holder on a sale or other taxable disposition of the Class A Ordinary Shares is an amount equal to the difference between (i) the sum of the amount of cash and the fair market value of any property received in such sale or disposition and (ii) the U.S. Holder's adjusted tax basis in the applicable Class A Ordinary Shares so sold or disposed. A U.S. Holder's adjusted tax basis in the Class A Ordinary Shares generally will equal the U.S. Holder's acquisition cost of such shares.

*Passive Foreign Investment Company Rules*

The treatment of U.S. Holders of Class A Ordinary Shares could be materially different from that described above, if Digital Currency X is treated as a "passive foreign investment company," or PFIC, for U.S. federal income tax purposes. An entity treated as a foreign corporation for U.S. federal income tax purposes generally will be a PFIC for U.S. federal income tax purposes for any taxable year if either:

● at least 75% of its gross income for such year is passive income (such as interest, dividends, rents and royalties (other than rents or royalties derived from the active conduct of a trade or business) and gains from the disposition of assets giving rise to passive income); or

● at least 50% of the value of its assets (based on an average of the quarterly values of the assets) during such year is attributable to assets that produce passive income or are held for the production of passive income.

For this purpose, Digital Currency X will be treated as owning its proportionate share of the assets and earning its proportionate share of the income of any other entity treated as a corporation for U.S. federal income tax purposes in which Digital Currency X own, directly or indirectly, 25% or more (by value) of the stock.

Based on the current and anticipated composition of the income, assets and operations of Digital Currency X and its subsidiaries, Digital Currency X does not believe it will be treated as a PFIC for U.S. federal income tax purposes for its current taxable year, and does not expect to become one for U.S. federal income tax purposes in the near future,

Nevertheless, whether Digital Currency X is treated as a PFIC is determined on an annual basis. The determination of whether a non-U.S. corporation is a PFIC is a factual determination that depends on, among other things, the composition of Digital Currency X's income and assets, and the market value of its shares and assets, including the composition of income and assets and the market value of shares and assets of its subsidiaries, from time to time, and thus the determination can only be made annually after the close of each taxable year. Thus, no assurance can be given as to whether Digital Currency X will be a PFIC in 2023 or for any future taxable year.

Under the PFIC rules, if Digital Currency X were considered a PFIC at any time that a U.S. Holder owns Class A Ordinary Shares, Digital Currency X would generally continue to be treated as a PFIC with respect to such holder in a particular year unless (i) Digital Currency X has ceased to be a PFIC and (ii) (a) the U.S. Holder has made a valid "QEF election" (as described below) for the first taxable year in which the holder owned such holder's Class A Ordinary Shares in which Digital Currency X was a PFIC, (b) a valid mark-to-market election (as described below) is in effect for the particular year, or (c) the U.S. Holder has made a "deemed sale" election under the PFIC rules. If such a "deemed sale" election is made, a U.S. Holder will be deemed to have sold its Class A Ordinary Shares at their fair market value on the last day of the last taxable year in which Digital Currency X is classified as a PFIC, and any gain from such deemed sale would be subject to the consequences described below. After the "deemed sale" election, the Class A Ordinary Shares with respect to which the "deemed sale" election was made will not be treated as shares in a PFIC unless Digital Currency X subsequently becomes a PFIC.

For each taxable year that Digital Currency X is treated as a PFIC with respect to a U.S. Holder's Class A Ordinary Shares, the U.S. Holder will be subject to special tax rules with respect to any "excess distribution" (as defined below) received and any gain realized from a sale or disposition (including a pledge of Class A Ordinary Shares and under proposed regulations certain transfers of Class A Ordinary Shares that would otherwise qualify as nonrecognition transactions for U.S. federal income tax purposes) of its Class A Ordinary Shares (collectively the "*excess distribution rules*"), unless, with respect to the Class A Ordinary Shares, the U.S. Holder makes a valid QEF or mark-to-market election as discussed below. Generally, distributions received by a U.S. Holder in a taxable year that are greater than 125% of the average annual distributions received by such U.S. Holder during the shorter of the three preceding taxable years or the portion of such U.S. Holder's holding period for the Class A Ordinary Shares that preceded the taxable year of the distribution will be treated as excess distributions. Under these special tax rules:

● the excess distribution or gain will be allocated ratably over the U.S. Holder's holding period for the Class A Ordinary Shares;

● the amount allocated to the U.S. Holder's taxable year in which the U.S. Holder recognized the gain or received the excess distribution or to the period in the U.S. Holder's holding period before the first day of Digital Currency X's first taxable year in which Digital Currency X is a PFIC, will be treated as ordinary income; and

● the amount allocated to each other taxable year (or portions thereof) of the U.S. Holder and included in such holder's holding period will be subject to the highest tax rate in effect for individuals or corporations, as applicable, for each such year without regard to the U.S. Holder's other items of income and loss for such year; and

● the interest charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with respect to the resulting tax attributable to each such year.

Under the excess distribution rules, the tax liability for amounts allocated to taxable years prior to the year of disposition or excess distribution cannot be offset by any net operating losses, and gains (but not losses) realized on the sale of the Class A Ordinary Shares cannot be treated as capital gains, even though the U.S. Holder holds the Class A Ordinary Shares as capital assets.

Certain of the PFIC rules may impact U.S. Holders with respect to equity interests in subsidiaries and other entities which Digital Currency X may hold, directly or indirectly, that are PFICs (collectively, "*Lower-Tier PFICs*"). There can be no assurance, however, that Digital Currency X does not own, or will not in the future acquire, an interest in a subsidiary or other entity that is or would be treated as a Lower-Tier PFIC. U.S. Holders should consult their tax advisors regarding the application of the PFIC rules to any of Digital Currency X's subsidiaries.

If Digital Currency X is a PFIC, a U.S. Holder of shares in Digital Currency X may avoid taxation under the excess distribution rules described above in respect to the Class A Ordinary Shares by making a timely and valid "qualified electing fund" ("*QEF*") election (if eligible to do so). However, a U.S. Holder may make a QEF election with respect to its Class A Ordinary Shares only if Digital Currency X provides U.S. Holders on an annual basis with certain financial information specified under applicable U.S. Treasury regulations, including the information provided in a PFIC Annual Information Statement. There can be no assurance, however, that Digital Currency X will have timely knowledge of its status as a PFIC in the future or that Digital Currency X will timely provide such information for such years. The failure to provide such information on an annual basis could prevent a U.S. Holder from making a QEF election or result in the invalidation or termination of a U.S. Holder's prior QEF election.

A U.S. Holder that makes a QEF election with respect to its Class A Ordinary Shares would generally be required to include in income for each year that Digital Currency X is treated as a PFIC the U.S. Holder's pro rata share of Digital Currency X's ordinary earnings for the year (which would be subject to tax as ordinary income) and net capital gains for the year (which would be subject to tax at the rates applicable to long-term capital gains), without regard to the amount of any distributions made in respect of the Class A Ordinary Shares. Any net deficits or net capital losses of Digital Currency X for a taxable year, however, would not be passed through and included on the tax return of the U.S. Holder. A U.S. Holder's basis in the Class A Ordinary Shares would be increased by the amount of income inclusions under the QEF rules. Dividends actually paid on the Class A Ordinary Shares generally would not be subject to U.S. federal income tax to the extent of prior income inclusions and would reduce the U.S. Holder's basis in the Class A Ordinary Shares by a corresponding amount. If Digital Currency X owns any interests in a Lower-Tier PFIC, a U.S. Holder generally must make a separate QEF election for each Lower-Tier PFIC, subject to Digital Currency X's providing the relevant tax information for each Lower-Tier PFIC on an annual basis. There can be no assurance that Digital Currency X will have timely knowledge of the status of any such Lower-Tier PFIC. In addition, Digital Currency X may not hold a controlling interest in any such Lower-Tier PFIC and thus there can be no assurance Digital Currency X will be able to cause the Lower-Tier PFIC to provide such required information.

If a U.S. Holder does not make a QEF election effective from the first taxable year of a U.S. Holder's holding period for the Class A Ordinary Shares in which Digital Currency X is a PFIC (or a mark-to-market election, as discussed below), then the U.S. Holder generally will remain subject to the excess distribution rules. A U.S. Holder that first makes a QEF election in a later year may avoid the continued application of the excess distribution rules to its Class A Ordinary Shares by making a "deemed sale" election. In that case, the U.S. Holder will be deemed to have sold the Class A Ordinary Shares at their fair market value on the first day of the taxable year in which the QEF election becomes effective, and any gain from such deemed sale would be subject to the excess distribution rules described above. As a result of the "deemed sale" election, the U.S. Holder will have additional basis (to the extent of any gain recognized on the deemed sale) and, solely for purposes of the PFIC rules, a new holding period in the Class A Ordinary Shares.

The QEF election is made on a shareholder-by-shareholder basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder that is eligible to make a QEF election with respect to its Class A Ordinary Shares generally may do so by providing the appropriate information to the IRS in the U.S. Holder's timely filed tax return for the year in which the election becomes effective. Retroactive QEF elections generally may be made only by filing a protective statement with such return and if certain other conditions are met or with the consent of the IRS. U.S. Holders should consult their tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

Alternatively, if Digital Currency X is a PFIC and Class A Ordinary Shares constitute "marketable stock" (as defined below), a U.S. Holder may make a mark-to-market election for such holder's Class A Ordinary Shares with respect to such shares for the first taxable year in which it holds (or is deemed to hold) Class A Ordinary Shares and each subsequent taxable year to elect out of the excess distribution rules discussed above. If a U.S. Holder makes a mark-to-market election with respect to its Class A Ordinary Shares, such U.S. Holder generally will include in income for each year that Digital Currency X is treated as a PFIC with respect to such Class A Ordinary Shares an amount equal to the excess, if any, of the fair market value of the Class A Ordinary Shares as of the close of the U.S. Holder's taxable year over the adjusted basis in the Class A Ordinary Shares as of the beginning of such taxable year. A U.S. Holder will be allowed a deduction for the excess, if any, of the adjusted basis of the Class A Ordinary Shares over their fair market value as of the close of the taxable year. However, deductions will be allowed only to the extent of any net mark-to-market gains on the Class A Ordinary Shares included in the U.S. Holder's income for prior taxable years. Amounts included in income under a mark-to-market election, as well as gain on the actual sale or other disposition of the Class A Ordinary Shares, will be treated as ordinary income. Ordinary loss treatment will also apply to the deductible portion of any mark-to-market loss on the Class A Ordinary Shares, as well as to any loss realized on the actual sale or disposition of the Class A Ordinary Shares, to the extent the amount of such loss does not exceed the net mark-to-market gains for such Class A Ordinary Shares previously included in income. A U.S. Holder's basis in the Class A Ordinary Shares will be adjusted to reflect any mark-to-market gain or loss. If a U.S. Holder makes a mark-to-market election, any distributions Digital Currency X makes would generally be subject to the rules discussed above under "*Taxation of Dividends and Other Distributions on our Ordinary Shares*," except the lower rates applicable to qualified dividend income would not apply.

The mark-to-market election is available only for "marketable stock," which is stock that is regularly traded on a qualified exchange or other market, as defined in applicable U.S. Treasury regulations. The Class A Ordinary Shares, which are listed on Nasdaq, are expected to qualify as marketable stock for purposes of the PFIC rules, but there can be no assurance that Class A Ordinary Shares will be "regularly traded" for purposes of these rules. If made, a mark-to-market election would be effective for the taxable year for which the election was made and for all subsequent taxable years unless Class A Ordinary Shares cease to qualify as "marketable stock" for purposes of the PFIC rules or the IRS consents to the revocation of the election. Because a mark-to-market election cannot be made for equity interests in any Lower-Tier PFICs, a U.S. Holder that does not make the applicable QEF elections generally will continue to be subject to the excess distribution rules with respect to its indirect interest in any Lower-Tier PFICs as described above, even if a mark-to-market election is made for Class A Ordinary Shares.

If a U.S. Holder does not make a mark-to-market election (or a QEF election, as discussed above) effective from the first taxable year of a U.S. Holder's holding period for the Class A Ordinary Shares in which Digital Currency X is a PFIC, then the U.S. Holder generally will remain subject to the excess distribution rules. A U.S. Holder that first makes a mark-to-market election with respect to the Class A Ordinary Shares in a later year will continue to be subject to the excess distribution rules during the taxable year for which the mark-to-market election becomes effective, including with respect to any mark-to-market gain recognized at the end of that year. In subsequent years for which a valid mark-to-mark election remains in effect, the excess distribution rules generally will not apply. A U.S. Holder that is eligible to make a mark-to-market with respect to such holder's Class A Ordinary Shares may do so by providing the appropriate information on IRS Form 8621 and timely filing that form with the U.S. Holder's tax return for the year in which the election becomes effective.

U.S. Holders should consult their tax advisors as to the availability and desirability of a mark-to-market election, as well as the impact of such election on interests in any Lower-Tier PFICs.

A U.S. Holder of a PFIC may be required to file an IRS Form 8621 on an annual basis and to provide such other information as may be required by the U.S. Treasury Department. Failure to do so, if required, will extend the statute of limitations applicable to such U.S. Holder until such required information is furnished to the IRS. U.S. Holders should consult their tax advisors regarding any reporting requirements that may apply to them if Digital Currency X is a PFIC.

The rules dealing with PFICs and with the QEF, "deemed sale," and mark-to-market elections are very complex and are affected by various factors in addition to those described above. U.S. Holders are strongly encouraged to consult their tax advisors regarding the application of the PFIC rules to their particular circumstances.

**Information Reporting Requirements and Backup Withholding**

Information reporting requirements may apply to dividends received by U.S. Holders of ordinary shares, and the proceeds received on the disposition of ordinary shares effected within the U.S. (and, in certain cases, outside the U.S.), in each case other than U.S. Holders that are exempt recipients (such as corporations). Backup withholding may apply to such amounts if the U.S. Holder fails to provide an accurate taxpayer identification number (generally on an IRS Form W-9 provided to the paying agent of the U.S. Holder's broker) or is otherwise subject to backup withholding. Any redemptions treated as dividend payments with respect to ordinary shares and proceeds from the sale, exchange, redemption or other disposition of ordinary shares may be subject to information reporting to the IRS and possible U.S. backup withholding. U.S. Holders should consult their tax advisors regarding the application of the U.S. information reporting and backup withholding rules.

Backup withholding is not an additional tax. Amounts withheld as backup withholding may be credited against the taxpayer's U.S. federal income tax liability, and a taxpayer may obtain a refund of any excess amounts withheld under the backup withholding rules by timely filing the appropriate claim for a refund with the IRS and furnishing any required information.

Under the Hiring Incentives to Restore Employment Act of 2010, certain U.S. Holders are required to report information relating to our ordinary shares, subject to certain exceptions (including an exception for ordinary shares held in accounts maintained by certain financial institutions), by attaching a complete IRS Form 8938, Statement of Specified Foreign Financial Assets, with their tax return for each year in which they hold ordinary shares.

**10. F. Dividends and Paying Agents**

Not Applicable.

**10. G. Statement by Experts**

Not Applicable.

**10. H. Documents on Display**

The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and will file reports, registration statements and other information with the SEC. The Company's reports, registration statements and other information can be found on the SEC's website at www.sec.gov. You may also visit us on website at https://1957413.ir365connect.com/. However, information contained on our website does not constitute a part of this annual report.

**10. I. Subsidiary Information**

Not Applicable.

**10. J. Annual Report to Security Holders**

Not Applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

***Cryptocurrency Risk***

 ****

As of December 31, 2025, we held approximately US$401.96 million in cryptocurrencies, which we classify as current assets. These cryptocurrencies are subject to significant price volatility, and their market values can fluctuate substantially within short periods due to factors beyond our control, including regulatory developments, market sentiment, technological changes, and macroeconomic conditions.

There can be no assurance that we will be able to liquidate our cryptocurrency holdings at the values recorded in our financial statements, or in a timely manner to meet our cash requirements. A significant decline in cryptocurrency prices could materially adversely affect our liquidity, working capital position, and ability to fund our operations.

We continuously monitor our cryptocurrency holdings and market conditions. To optimize the utilization of our digital assets, we have entered into custody arrangements with qualified third-party institutions, through which we seek to generate investment returns while maintaining our ability to access our assets as needed.

***Interest Rate Risk***

We are not significantly exposed to risks from changes in market interest rates and have not used any derivative financial instruments to manage our interest rate exposure. However, we cannot guarantee that we will not face significant risks due to future changes in market interest rates. Our exposure to interest rate risk mainly relates to floating interest rate non-bank short-term and long-term loans. We may incur additional loans or other financing instruments in the future. The goal of managing interest rate risk is to minimize the financial costs and uncertainties associated with interest rate fluctuations. We manage interest rate risk effectively by regularly monitoring and promptly addressing risk factors, improving the structure of short-term and long-term borrowings, and maintaining an appropriate balance between floating and fixed-rate loans.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

**12. A. Debt Securities**

Not applicable.

**12. B. Warrants and Rights**

***Warrants***

For a description of the various warrants to purchase our Class A Ordinary Shares, see the following exhibits filed with this annual report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exhibit
 4.2 — I-Bankers Securities, Inc.'s Warrant, dated December 9, 2021

• Exhibit
 4.3 — Warrant agreement by and among Greentree and Shandong Baoya and dated February
 15, 2022

• Exhibit
 4.4 — Warrant Assignment, Assumption, Exchange and Amendment, dated June 1, 2023, among
 the Company, Greentree Financial, and Baoya New Energy

• Exhibit
 4.5 — Warrant Assignment, Assumption, Exchange and Amendment, dated June 1, 2023, among
 the Company, JWAC, and I-Bankers Securities, Inc.

• Exhibit
 4.8 — Form of Warrants, dated January 5, 2025, among the Company, and certain purchasers

• Exhibit
 4.9 — Form of Amendment and Acknowledgment to No. 1 to Ordinary Share Purchase Warrant,
 dated February 11, 2025, among the Company, and certain purchasers

• Exhibit
 4.13 — Form of Ordinary Warrants, dated September 2, 2025, among the Company, and certain
 investor

• Exhibit
 4.16 — Form of the Pre-Funded Warrants, dated October 1, 2025, by and among the Company
 and the purchasers thereto

• Exhibit
 4.20 — Form of Pre-funded Warrant, dated November 24, 2025 by and among the Company
 and certain purchasers thereto

• Exhibit
 4.21 — Form of Placement Agent Warrant, dated November 24, 2025 by and among the Company
 and certain purchasers thereto

• Exhibit
 4.24 — Form of Warrant dated October 26, 2025

***Rights***

 ****

For a description of the Contingent Value Rights issued in connection with our business combination, see Exhibit 4.1 — Contingent Value Rights Agreement, dated June 1, 2023, by and between the Company and American Stock Transfer & Trust Company, as rights agent.

**12. C. Other Securities**

Not applicable.

**12. D. American Depositary Shares**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

The following defaults relate to liabilities of our discontinued operations, which were disposed of in March 2026. As of December 31, 2025, these liabilities are classified as "Liabilities of discontinued operations" on our consolidated balance sheet.

● In May 2016, one of our former subsidiaries obtained two non-interest-bearing loans from non-financial institutions dedicated to the development of the electric vehicle industry in Xiangyang, PRC. The loans contained certain financial performance covenants and became repayable in full when the Company failed to meet conditions due to the Covid-19 pandemic, missing the July 2022 repayment deadline for US$95.16 million (RMB694.60 million). As a result, the loans were reclassified as current liabilities from 2022 through 2024, with an additional penalty of US$716,781 (RMB5.23 million) due. The lender gained rights to significant financial recourse, including property repurchase and recovery of unmet government subsidies. By December 2025, no subsidies had been received. The outstanding principal was reported as US$95.16 million (RMB 694.60 million) and US$99.33 million (RMB 694.60 million) for the years ended December 31, 2024, and 2025 respectively, adjusted for exchange rate fluctuations. In June 2023, the Company pledged assets totaling US$37.74 million (RMB275.50 million) to secure the loan obligations. The court is currently conducting an auction of the mortgaged buildings, land, and machinery.

● FAW Jilin, a former subsidiary, China FAW Corporation Limited (the minority shareholder of FAW Jilin) and its affiliate, FAW Finance Co., Ltd have entered into a series of working capital loan agreements in the amount of RMB700 million (approximately US$95.90 million) on January 29, 2019, in the amount of RMB350 million (approximately US$47.95) on May 20, 2019, in the amount of RMB150 million (approximately US$20.55 million) on August 29, 2019, in the amount of approximately RMB270 million (approximately US$36.95 million) on October 29, 2019, in the amount of approximately RMB188 million (approximately US$25.73 million) on November 27, 2019, in the amount of approximately RMB87.4 million (approximately US$11.98 million) on December 13, 2019, each of the loans bears an annual interest rate of 3.915% with a term of one year. On January 23, 2020, the loan in the amount of RMB 700 million was extended for 12 months. On May 20, 2020, the parties have entered into a supplement agreement to the loan agreements, pursuant to which, FAW Jilin agreed to make four installment payments of US$39.44 million (RMB 287,867,500), each for the remaining principal balance and pledged certain land use rights, buildings, machinery and equipment, mold and tooling and other logistic equipment of FAW Jilin. FAW Jilin failed to make the payments on November 1, 2022, November 1, 2023, November 1, 2024 and November 1, 2025. As of April 30, 2026, the aggregate outstanding principals and interests under such loans were US$206.97 million

● On December 9, 2019, Shandong Baoya, a former subsidiary, entered into a loan agreement Yantai Guofeng Investment Holdings Group Co., LTD ("Yantai Guofeng"), an affiliate of the Company. The loan is part of a broader initiative supported by local government entities to promote new energy vehicle projects in the region. The principal of the loan is RMB1.5 billion (approximately US$205.50 million), to be paid in specific installments based on project milestones, including an initial RMB450 million (approximately US$61.65 million) to facilitate the mixed capital increase project for FAW Jilin and remaining RMB1.05 billion (approximately US$143.85 million) to be paid pursuant to the capital increase schedules. The loan has a 6.5% annual interest rate, with repayment obligations structured based on the progress and outcomes of the vehicle production project. Additionally, the agreement includes clauses for automatic termination under certain conditions, such as failure to meet certain project-related development commitments. Pursuant to the loan agreement, if Shandong Baoya meets certain development conditions, part of the loan could be waived and converted to a government subsidy, including interest on such portion. By December 31, 2021, a total of US$104.12 million (RMB760 million) of the principal amount has been converted to government subsidies because the initial conversion criteria have been satisfied. The remaining criteria include, but are not limited to, achieving the first phase of mass production and reaching the prescribed production and sales numbers of vehicles. For the year ended December 31, 2025, no principal amount has been converted to government subsidies. As of April 30, 2026, the outstanding principals and interests were US$156.00 million. As of December 31, 2025, Shandong Baoya was notified that Yantai Guofeng has transferred its creditor's rights in Shandong Baoya to Yantai Public Transportation Co., Ltd ("Yantai Trans"). On February 10, 2025, Yantai Trans filed an application for property preservation with the Yantai Intermediate Court, which resulted in the freezing of Shandong Baoya's land use right. The net value of the seized land use right was US$26.18 million as of December 31, 2025.

As of December 31, 2025, the total liabilities of our discontinued operations, which include the indebtedness described above, amounted to approximately US$709.2 million.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS** 

**14. A - D. Material Modifications to the Rights of Security Holders**

On January 10, 2025, the Company held an Extraordinary General Meeting of Shareholders where it received approval to amend its Memorandum and Articles of Association and introduce a dual-class share structure. As a result of the approval, the Company's authorized share capital was changed to US$30,000,000, divided into 9,982,000,000 Class A ordinary shares and 18,000,000 Class B ordinary shares. The primary material modification to the rights of security holders is the difference in voting power: each Class A ordinary share is entitled to one vote, whereas each Class B ordinary share is entitled to twenty votes on all matters submitted to a shareholder vote. The Company's Amended and Restated Memorandum and Articles of Association reflecting these changes are attached as Exhibit 3.1.

Subsequently, pursuant to a Share Exchange Agreement dated March 16, 2025, the Company executed a share exchange with two existing shareholders, Chijet Holdings Limited and Euroamer Kaiwan Technology Company Limited. On March 24, 2025, the Company issued an aggregate of 1,600,000 Class B ordinary shares to these shareholders. In exchange, the two shareholders returned an aggregate of 1,624,910 Class A ordinary shares to the Company, which were subsequently canceled, retired, and reverted to authorized but unissued Class A ordinary shares.

**14. E. Use of Proceeds**

Not applicable.

**ITEM 15. CONTROLS AND PROCEDURES**

(a) *Disclosure Controls and Procedures*

Under the supervision and with the participation of our management, including our principal executive officer and our principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures were effective as of the end of the period covered by this annual report (December 31, 2025).

(b) *Management's Report on Internal Control Over Financial Reporting*

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act. Our management conducted an assessment of the effectiveness of our internal control over financial reporting based on the criteria set forth in "Internal Control - Integrated Framework (2013)" issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was not effective as of December 31, 2025.

In preparing our consolidated financial statements for the year ended December 31, 2025, we identified the following material weaknesses and significant deficiencies: (1) we lack standardized processes and review mechanisms to properly identify, evaluate, account for and disclose complex and non-routine transactions under U.S. GAAP and SEC requirements, especially for legacy business disposal and discontinued operations presentation; (2) we have not established complete policies and procedures for digital asset custody, wallet management, private key security, transaction authorization and independent book-to-blockchain reconciliation. Our management is evaluating remediation measures, such as (i) formalizing processes for complex transactions, reinforcing internal review and adopting supporting accounting policies, and engaging external professionals for complex accounting matters when needed; and (ii) finalizing standardized digital asset management policies, establishing periodic independent reconciliation and enhancing daily monitoring of digital assets.

However, we cannot assure timely remediation of these control deficiencies. Maintaining an effective financial reporting control system requires ongoing resources and adaptation to business and regulatory changes. Weak controls over complex transactions and digital assets could lead to financial statement misstatements, non-compliance with U.S. GAAP and SEC rules, as well as elevated asset security and reconciliation risks. See "Item 3. Key Information-D. Risk Factors" for relevant disclosure regarding internal control deficiencies. Additionally, we cannot assure that we have identified all existing or future internal control weaknesses and deficiencies.

**ITEM 16. RESERVED**

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT** 

Our board of directors has determined that Mr. Wenbo Wang, who serves as the chairman of our Audit Committee, possesses accounting or related financial management experience that qualifies him as an "audit committee financial expert" as defined by the rules and regulations of the SEC.

**ITEM 16B. CODE OF ETHICS**

We have adopted a code of ethics that applies to all of our executive officers, directors and employees in accordance with the rules of the Nasdaq and the SEC. The code of ethics codifies the business and ethical principles that govern all aspects of our business. Any amendment to or waivers of the code of ethics for members of our board of directors and our executive officers that are required to be disclosed by the rules of the SEC or Nasdaq will be disclosed on our website at https://1957413.ir365connect.com/, within four business days following the amendment or waiver. During fiscal year 2025, no amendments to or waivers from the code were made or given to any of our executive officers.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

The following table sets forth the aggregate fees by categories specified below in connection with certain professional services rendered by Assentsure PAC, our independent registered public accounting firm and our principal auditors, and UHY, LLP an independent registered public accounting firm and our predecessor auditors, for the periods indicated. We did not pay any other fees to our independent registered public accounting firm during the periods indicated below.

---

| | | |
|:---|:---|:---|
|  | **Fiscal Year Ended<br>December 31,<br> 2025** | **Fiscal Year Ended<br>December 31,<br> 2024** |
| Audit fees<sup>(1)</sup> | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; | $— |
| &nbsp;&nbsp;&nbsp;Assentsure PAC | $310000 | $670000 |
| &nbsp;&nbsp;&nbsp;UHY, LLP<sup>(2)</sup> | $- | $- |
| All other fees<sup>(3)</sup> | $- | $20000 |

---

(1) "Audit
 fees" means the aggregate fees billed for professional services rendered by our principal auditors for the audit of our annual
 financial statements and the review of our comparative interim financial statements.

(2) On
 December 29, 2023, our board approved the termination of UHY, LLP ("UHY") and on January 28, 2024 we engaged Assentsure
 PAC ("Assentsure") as our independent registered public accounting firm. See also "*Item 16F. Change in Registrant's Certifying Accountant.* "

(3) "All
 other fees" means the aggregate fees billed for professional services rendered by our predecessor auditors other than the professional
 services reported under "audit fees".

The policy of our audit committee and our board of directors is to pre-approve all audit and non-audit services provided by our principal auditors, including audit services, audit-related services, and other services as described above, other than those for de minimis services which are approved by the audit committee or our board of directors prior to the completion of the services. All services provided by the principal auditors for the year ended December 31, 2025 were approved by the audit committee pursuant to the pre-approval policy.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not Applicable.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

On February 21, 2025, the Company entered into a stock purchase agreement to acquire an 80% equity interest in Too Express Group Inc. ("Too Express"). The transaction closed on April 28, 2025, at which time the Company issued 23,255,814 Class A Ordinary Shares as the purchase price, with the parties agreeing to a value of $40,000,000 for these shares.

However, the transaction was subject to a Future Rights Agreement which stipulated that if the Company's shareholder equity as of June 30, 2025, was a negative number, the issued shares would be forfeited. The Company's Board of Directors later concluded that this condition for forfeiture had been met.

Consequently, on August 1, 2025, the 23,255,814 Class A Ordinary Shares that had been issued to the sellers of Too Express were forfeited, retired, and cancelled. The Company is now proceeding with negotiations to return the 80% equity interest in Too Express to the original sellers, in accordance with the terms of the Future Rights Agreement.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

On January 28, 2024, we engaged Assentsure as our independent registered public accounting firm, to replace UHY, LLP. The change of independent registered public accounting firm was approved by the audit committee of the board of directors and the board of directors of our company on December 29, 2023.

UHY's reports on the Company's financial statements for the fiscal year ended December 31, 2022 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope, or accounting principles, except that UHY's report for the fiscal year ended December 31, 2022 included a paragraph indicating there was substantial doubt about the Company's ability to continue as a going concern. Furthermore, during the Company's two most recent fiscal years and in the subsequent interim period through December 29, 2023, there have been no disagreements with UHY on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to UHY's satisfaction, would have caused UHY to make reference to the subject matter of the disagreement in connection with its reports on the Company's financial statements for such periods.

For the fiscal year ended December 31, 2022 and in the subsequent interim period through December 29, 2023, except for the material weaknesses in internal control over financial reporting reported by management in Management's Discussion and Analysis of Financial Condition and Results of Operations of the Company's Form F-4/A filed with the U.S. Securities and Exchange Commission (the "Commission") on March 24, 2023, there were no other "reportable events" as that term is described in Item 16F (a)(1)(v) of Form 20-F.

During the fiscal years ended December 31, 2022 and 2023 and in the subsequent interim period prior to our engagement of Assentsure, neither we nor anyone on behalf of us has consulted with Assentsure regarding (i) the application of accounting principles to a specific transaction, either completed or proposed, or the type of audit opinion that might be rendered on our consolidated financial statements, and neither a written report nor oral advice was provided to us that Marcum Asia concluded was an important factor considered by us in reaching a decision as to any accounting, audit, or financial reporting issue, (ii) any matter that was the subject of a disagreement pursuant to Item 16F(a)(1)(iv) of the instructions to Form 20-F, or (iii) any reportable event pursuant to Item 16F(a)(1)(v) of the instructions to Form 20-F.

**ITEM 16G. CORPORATE GOVERNANCE**

Our Class A Ordinary Shares are listed on the Nasdaq Capital Market. As such, we are subject to corporate governance requirements imposed by Nasdaq. Under Nasdaq rules, listed non-US companies such as ourselves may, in general, follow their home country corporate governance practices in lieu of some of the Nasdaq corporate governance requirements.

Certain corporate governance practices in the Cayman Islands, which is our home country, may differ significantly from the Nasdaq corporate governance listing standards. We currently intend to follow some, but not all, of the corporate governance requirements of Nasdaq. With respect to the corporate governance requirements of Digital Currency X that we do follow, we cannot give assurances that we will continue to follow such corporate governance requirements in the future, and may therefore in the future, rely on available Nasdaq exemptions that would allow us to follow our home country practice. Unlike the requirements of Nasdaq, we are not required, under the corporate governance practice and requirements in the Cayman Islands, to:

● obtain shareholder approval prior to an issuance of securities in connection with: (i) the acquisition of the stock or assets of another company; (ii) equity-based compensation of officers, directors, employees or consultants; (iii) a change of control; and (iv) private placements;

● to have a formal written compensation committee charter specifying the Nasdaq required items, or that the compensation committee will review and reassess the adequacy of the written compensation committee charter on an annual basis;

● nor are we required to have a compensation committee consisting of at least two independent directors, a nominating or a corporate governance committee consisting entirely of independent directors or a majority of the independent directors of the board, or to have regularly scheduled executive sessions with only independent directors each year. Such Cayman Islands home country practices may afford less protection to holders of our Ordinary Shares.

We also intend to rely on this "foreign private issuer exemption" with respect to the quorum requirement for shareholder meetings and with respect to Nasdaq shareholder approval rules. Whereas under the corporate governance rules of Nasdaq, a quorum requires the presence, in person or by proxy, of holders of at least 33 1/3% of the total issued and outstanding voting power of our shares at each general meeting, pursuant to our Amended and Restated Memorandum and Articles of Association, the quorum required for a general meeting will consist of holders of a majority of the Ordinary Shares being individuals present in person or by proxy, or if a corporation or other non-natural person by its duly authorized representative or proxy, except if (i) any such general meeting was initiated by and convened pursuant to a resolution adopted by the board of directors and (ii) at the time of such general meeting, we qualify as a "foreign private issuer," then in such case, the requisite quorum will consist of holders of a majority of the Ordinary Shares being individuals present in person or by proxy, or if a corporation or other non-natural person by its duly authorized representative or proxy (and if the meeting is adjourned for a lack of quorum, the quorum for such adjourned meeting will be, subject to certain exceptions, any number of shareholders).

Except for the foregoing, we endeavor to comply with the Nasdaq corporate governance practices and except for the foregoing, there is no significant difference between our corporate governance practices and what the Nasdaq requires of domestic U.S. companies. However, if we choose to follow other home country practice in the future, our shareholders may be afforded less protection than they otherwise would under the Nasdaq Capital Market corporate governance listing standards applicable to U.S. domestic issuers.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**ITEM 16J. INSIDER TRADING POLICIES**

The Board adopted the Insider Trading Policy on June 16, 2023, and a copy of the Insider Trading Policy is filed as Exhibit 11.2 to this annual report.

**ITEM 16K. CYBERSECURITY**

Risk Management and Strategy

We have implemented comprehensive cybersecurity risk assessment procedures to ensure effectiveness in cybersecurity management, strategy and governance and reporting cybersecurity risks. We have also integrated cybersecurity risk management into our overall enterprise risk management system.

We have developed a comprehensive cybersecurity threat defense system to address both internal and external threats. This system encompasses various levels, including network, host and application security and incorporates systematic security capabilities for threat defense, monitoring, analysis, response, deception and countermeasures. We strive to manage cybersecurity risks and protect sensitive information through various methods, including technical safeguards, procedural requirements, an intensive monitoring program on our corporate network, continuous testing of our security posture internally and with outside vendors, a robust incident response program and regular cybersecurity awareness training for employees. Our cybersecurity-related departments regularly monitor the performance of our platforms and infrastructure to enable us to respond quickly to potential problems, including potential cybersecurity threats.

As of the date of this annual report, we have not experienced any material cybersecurity incidents or identified any material cybersecurity threats that have affected or are reasonably likely to materially affect us, our business strategy, results of operations or financial condition.

Governance

Our board of directors is responsible for overseeing risks related to cybersecurity. Our board of directors shall (i) maintain oversight of the disclosure related to cybersecurity matters in current reports or periodic reports of our company, (ii) review updates to the status of any material cybersecurity incidents or material risks from cybersecurity threats to our company, and the disclosure issues, if any, presented by our management on a quarterly basis, and (iii) review disclosure concerning cybersecurity matters in our annual report on Form 20-F presented by our management.

At the management level, our CEO, CFO and the head of the departments in connection with cybersecurity-related matters are responsible for assessing, identifying and managing cybersecurity risks and monitoring the prevention, detection, mitigation, and remediation of cybersecurity incidents. Our CEO and CFO report to our board of directors (i) timely updates to the status of any material cybersecurity incidents or material risks from cybersecurity threats to our company, and the disclosure issues, if any, and (ii) in connection with disclosure concerning cybersecurity matters in our annual report on Form 20-F.

If a cybersecurity incident occurs, our cybersecurity-related departments will promptly organize personnel for internal assessment. If it is further determined that the incident could potentially be a material cybersecurity event, the cybersecurity-related departments will promptly report the incident and assessment results to our CEO and CFO, and, to the extent appropriate, seek advice from external experts and legal counsels. If it is determined that the incident could potentially be a material cybersecurity event, our CEO and CFO will decide on relevant response measures and management shall promptly prepare disclosure material on the cybersecurity incident for review and approval by our board of directors before it is disseminated to the public.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS**

Not applicable.

**ITEM 18. FINANCIAL STATEMENTS**

The consolidated financial statements and related notes required by this item are contained on pages F-1 through F-29.

**ITEM 19. EXHIBITS** 

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Documents** |
| 1.1 | [Fifth Amended and Restated Memorandum and Articles of Association<sup>(15)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315226018236/ex3-1.htm) |
| 1.2 | [Fourth Amended and Restated Memorandum and Articles of Association<sup>(5)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225028943/ex3-1.htm) |
| 2.1 | [Description of Securities\*](ex2-1.htm) |
| 4.1 | [Contingent Value Rights Agreement, dated June 1, 2023, by and between Pubco and American Stock Transfer & Trust Company, as rights agent<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223020432/ex4-1.htm) |
| 4.2 | [I-Bankers Securities, Inc.'s Warrant, dated December 9, 2021<sup>(2)</sup>](https://www.sec.gov/Archives/edgar/data/1883799/000126493121000257/ex4_2.htm) |
| 4.3 | [Warrant agreement by and among Greentree and Shandong Baoya and dated February 15, 2022](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex4-3.htm) |
| 4.4 | [Warrant Assignment, Assumption, Exchange and Amendment, dated June 1, 2023, among the Company, Greentree Financial, and Baoya New Energy<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223020432/ex10-1.htm) |
| 4.5 | [Warrant Assignment, Assumption, Exchange and Amendment, dated June 1, 2023, among the Company, JWAC, and I-Bankers Securities, Inc.<sup>(1)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223020432/ex10-2.htm) |
| 4.6 | [Form of Non-Redemption Agreement dated May 1, 2023, among the Company, JWAC, Chijet Holdings Limited, and certain stockholders of JWAC therein](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex4-6.htm) |
| 4.7 | [Form of Securities Purchase Agreement, dated January 5, 2025, among the Company, and certain purchasers<sup>(6)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225001719/ex10-1.htm) |
| 4.8 | [Form of Warrants, dated January 5, 2025, among the Company, and certain purchasers<sup>(6)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225001719/ex4-1.htm) |
| 4.9 | [Form of Amendment and Acknowledgment to No. 1 to Ordinary Share Purchase Warrant, dated February 11, 2025, among the Company, and certain purchasers<sup>(7)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225006934/ex10-1.htm) |
| 4.10 | [Form of Stock Purchase Agreement, dated February 21, 2025, among the Company, Too Express Group Inc. and each of the holders of Too Express's outstanding capital shares<sup>(8)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225008146/ex4-1.htm) |
| 4.11 | [Form of Share Exchange Agreement, dated March 16, 2025, among the Company, and two of its existing shareholders<sup>(9)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000164117225001311/ex10-1.htm) |
| 4.12 | [Form of Securities Purchase Agreement, dated September 2, 2025, among the Company, and certain investor <sup>(10)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000164117225026642/ex99-1.htm) |
| 4.13 | [Form of Ordinary Warrants, dated September 2, 2025, among the Company, and certain investor<sup>(10)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000164117225026642/ex99-2.htm) |
| 4.14 | [Form of Lock-up Agreements, dated September 2, 2025, among the Company, the officers and directors of the Company and shareholders of the Company holding 5% or more of the Company's Class A Ordinary Shares<sup>(10)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000164117225026642/ex99-3.htm) |
| 4.15 | [Form of Placement Agency Agreement, dated September 2, 2025, among the Company, and Maxim Group LLC<sup>(10)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000164117225026642/ex99-4.htm) |
| 4.16 | [Form of the Pre-Funded Warrants, dated October 1, 2025, by and among the Company and the purchasers thereto<sup>(11)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225017086/ex4-1.htm) |
| 4.17 | [Placement Agency Agreement, dated October 1, 2025, by and between the Company and Univest Securities, LLC<sup>(11)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225017086/ex10-1.htm) |
| 4.18 | [Form of Securities Purchase Agreement, dated October 1, 2025, by and among the Company and the purchasers thereto<sup>(11)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225017086/ex10-2.htm) |
| 4.19 | [Form of Securities Purchase Agreement, dated November 24, 2025 by and among the Company and certain purchasers thereto<sup>(12)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225025090/ex99-1.htm) |
| 4.20 | [Form of Pre-funded Warrant, dated November 24, 2025 by and among the Company and certain purchasers thereto<sup>(12)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225025090/ex99-2.htm) |
| 4.21 | [Form of Placement Agent Warrant, dated November 24, 2025 by and among the Company and certain purchasers thereto<sup>(12)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225025090/ex99-3.htm) |
| 4.22 | [Form of Lock-up Agreements,dated November 24, 2025 by and among the Company, the officers and directors of the Company and shareholders of the Company holding 10% or more of the Company's Class A Ordinary Shares<sup>(12)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225025090/ex99-4.htm) |
| 4.23 | [Form of Placement Agency Agreement, dated November 24, 2025 by and between Chijet Motor Company, Inc. and Maxim Group LLC<sup>(12)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315225025090/ex99-5.htm) |
| 4.24 | [Form of Warrant dated October 26, 2025<sup>(13)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315226004140/ex4-1.htm) |
| 4.25 | [Form of Securities Purchase Agreement dated October 26, 2025 between the Company and Purchasers<sup>(13)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315226004140/ex10-1.htm) |
| 4.26 | [Form of Supplemental Agreement to Securities Purchase Agreement dated November 25, 2025 between the Company and Purchasers<sup>(13)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315226004140/ex10-2.htm) |
| 4.27 | [Share Purchase Agreement dated March 18, 2026, by and between the Company and Drivepoint Holdings Ltd.<sup>(14)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315226011859/ex99-1.htm) |

---

---

| | |
|:---|:---|
| 4.28 | [English Translation of Loan Agreement between Yantai Guofeng Investment Holdings Groups Co., Ltd. and Shandong Baoya New Energy Vehicle Co., Ltd., dated December 10, 2019<sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223007090/ex10-7.htm) |
| 4.29 | [English Translation of Loan Agreements between FAW Finance Co. Ltd. and FAW Jilin Automobile Co., Ltd., dated January 29, 2019, May 20, 2019, August 29, 2019, October 29, 2019, November 27, 2019, December 13, 2019, respectively, Loan Extension Agreement, dated January 23, 2020 and the Supplementary Agreement to the Loan Agreements dated on May 20, 2020.<sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223007090/ex10-8.htm) |
| 4.30 | [English Translation of Principal Creditor's Rights and Maximum Mortgage Contract between FAW Finance Co. Ltd. and FAW Jilin Automobile Co., Ltd., dated May 20, 2019](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex10-2_1.htm) |
| 4.31 | [English Translation of Maximum Mortgage Contract between FAW Finance Co. Ltd. and FAW Jilin Automobile Co., Ltd., dated November 21, 2019](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex10-2_2.htm) |
| 4.32 | [English Translation of Business Contract of EP Car Body-in-White Trial Production between Rizhengsheng Auto Technology (Changzhou) Co. Ltd. and Shandong Baoya New Energy Vehicle Co., Ltd. dated April 18, 2022. <sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223007090/ex10-9.htm) |
| 4.33 | [English Translation of Development Agreement between Jiangxi Dekai Carlight Co. Ltd. and Shandong Baoya New Energy Vehicle Co., Ltd. dated May 8, 2021<sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223007090/ex10-10.htm) |
| 4.34 | [English Translation of Construction Agreement between Shandong Sanjian Construction Engineering Management Co. Ltd. and Shandong Baoya New Energy Vehicle Co., Ltd. dated February 26, 2021<sup>(3)</sup>](https://www.sec.gov/Archives/edgar/data/1957413/000149315223007090/ex10-11.htm) |
| 4.35 | [English Translation of Mortgage Guarantee Contract of Building and Land among Lender A, Lender B and Xiangyang Yazhi New Energy Automobile Co., Ltd. dated June 20, 2023](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex10-6.htm) |
| 4.36 | [English Translation of Mortgage Guarantee Contract of Equipment among Lender A, Lender B and Xiangyang Yazhi New Energy Automobile Co., Ltd. dated June 20, 2023](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex10-7.htm) |
| 8.1 | [List of Subsidiaries](ex8-1.htm) |
| 11.1 | [Code of Business Conduct and Ethics](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex11-1.htm) |
| 11.2 | [Insider Trading Policy](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex19-1.htm) |
| 12.1 | [Certificate of Principal Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act\*](ex12-1.htm) |
| 12.2 | [Certificate of Principal Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act\*](ex12-2.htm) |
| 13.1 | [Certificate of Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\*\*](ex13-1.htm) |
| 13.2 | [Certificate of Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002\*\*](ex13-2.htm) |
| 15.1 | [Consent Letter of Assentsure PAC\*](ex15-1.htm) |
| 15.2 | [Consent Letter of King & Wood\*](ex15-2.htm) |
| 15.3 | [Consent Letter of Harney Westwood & Riegels\*](ex15-3.htm) |
| 16.1 | [Letter of UHY LLP to the U.S. Securities and Exchange Commission dated January 4, 2024(4)](https://www.sec.gov/Archives/edgar/data/1957413/000149315224001094/ex99-1.htm) |
| 97.1 | [Compensation Recovery Policy](https://www.sec.gov/Archives/edgar/data/1957413/000149315224017246/ex97-1.htm) |
| 101.INS | Inline XBRL Instance Document\* |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document\* |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document\* |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document\* |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document\* |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document\* |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)\* |
| \* | Filed herewith. |
| \*\* | Furnished herewith. |

---

(1) Filed
 as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on June 7, 2023, and incorporated herein by
 reference.

(2) Filed
 as an exhibit to the Current Report on Form 8-K, filed by Jupiter Wellness Acquisition Corp. with the SEC on December 9, 2021, and
 incorporated herein by reference.

(3) Filed
 as an exhibit to the Company's registration statement on Form F-4/A, File No. 333-270390 and incorporated herein by reference.

(4) Filed
 as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on January 4, 2024, and incorporated herein by reference.

(5) Filed
 as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on December 23, 2025, and incorporated herein by reference.

(6) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on January 10, 2025, and incorporated herein by reference.

(7) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on February 14, 2025, and incorporated herein by reference.

(8) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on February 25, 2025, and incorporated herein by reference.

(9) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on March 28, 2025, and incorporated herein by reference.

(10) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on September 5, 2025, and incorporated herein by reference.

(11) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on October 6, 2025, and incorporated herein by reference.

(12) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on November 26, 2025, and incorporated herein by reference.

(13) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on January 29, 2026, and incorporated herein by reference.

(14) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on March 20, 2026, and incorporated herein by reference.

(15) Filed as an exhibit to the Report on Form 6-K, filed by the Company with the SEC on April 21, 2026, and incorporated herein by reference.

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | |
|:---|:---|
|  | **Digital Currency X Technology Inc.** |
|  | */s/ Melissa Chen* |
| Name: | Melissa Chen |

---

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES** 

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| **CONTENTS** | **PAGE(S)** |
| [REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMS](#SSS_001) (PCAOB ID 6783) | F-2 |
| [CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2024 AND 2025](#SSS_002) | F-3 |
| [CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025](#SSS_003) | F-4 |
| [CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025](#SSS_004) | F-5 |
| [CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2023, 2024 AND 2025](#SSS_005) | F-6 |
| [NOTES TO CONSOLIDATED FINANCIAL STATEMENTS](#SSS_006) | F-7 |

---

---

| | |
|:---|:---|
| ![](report_001.jpg) | **Assentsure PAC**<br> **UEN – 201816648N**<br> 180B Bencoolen Street #03-01<br> The Bencoolen Singapore 189648<br> http://www.assentsure.com.sg<br>|

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Shareholders and the Board of Directors of Digital Currency X Technology Inc.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Digital Currency X Technology Inc. and its subsidiaries (formerly known as Chijet Motor Company, Inc., collectively, the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations and comprehensive loss, changes in shareholders' equity (deficit), and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the consolidated financial positions of the Company as of December 31, 2025 and 2024, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (the "PCAOB") and are required to be independent with respect to the Company in accordance with the United States federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ Assentsure PAC

Assentsure PAC

We have served as the Company's auditor since 2024

Singapore

April 30, 2026

PCAOB ID number: 6783

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**CONSOLIDATED BALANCE SHEETS**

**(Amounts in thousands of US$, except for number of shares and per share data)**

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
|  | **US$'000** | **US$'000** |
| ASSETS |  |  |
| Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $3942 | $1682 |
| &nbsp;&nbsp;&nbsp;Cryptocurrencies | 401963 |  |
| &nbsp;&nbsp;&nbsp;Current assets of discontinued operations | 460779 | 468899 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 866684 | 470581 |
| Non-Current Assets |  |  |
| &nbsp;&nbsp;&nbsp;Other assets | - | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-current assets | - | 204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets | 866684 | 470785 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
| Current Liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accruals and other current liabilities | 14 | 1333 |
| &nbsp;&nbsp;&nbsp;Accruals and other current liabilities, related parties | 82 | 1788 |
| &nbsp;&nbsp;&nbsp;Current liabilities of discontinued operations | 709102 | 613150 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 709198 | 616271 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total non-current liability | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities | 709198 | 616271 |
| Commitments and Contingencies |  |  |
| Shareholders' Equity |  |  |
| &nbsp;&nbsp;&nbsp;Ordinary Shares (US$3.6 per share, 833,333,333 shares authorized; 4,560 shares issued, 4,558 shares outstanding as of December 31, 2024)\* |  | 16 |
| &nbsp;&nbsp;&nbsp;Class A Ordinary Shares (US$3.6 per share, 831,833,333 shares authorized; 19,560,823 shares issued, 19,560,821 shares outstanding as of December 31, 2025)\* | 70419 |  |
| &nbsp;&nbsp;&nbsp;Class B Ordinary Shares (US$3.6 per share, 1,500,000 shares authorized; 1,334 shares issued and outstanding as of December 31, 2025)\* | 5 |  |
| &nbsp;&nbsp;&nbsp;Treasury Shares (2 ordinary shares as of December 31, 2025 and 2024） | (500) | (500) |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 445411 | 169129 |
| &nbsp;&nbsp;&nbsp;Statutory reserve | 6656 | 6656 |
| &nbsp;&nbsp;&nbsp;Accumulated deficits | (370995) | (361130) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive (loss) income | (30) | 6562 |
| &nbsp;&nbsp;&nbsp;Total Digital Currency X Technology Inc. Shareholders' Equity (Deficit) | 150966 | (179267) |
| &nbsp;&nbsp;&nbsp;Non-controlling interests | 6520 | 33781 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Equity (Deficit) | 157486 | (145486) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities and Shareholders' Equity | $866684 | $470785 |

---

\* Retrospectively restated for the effect of share consolidation

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS**

**(Amounts in thousands of US$, except for number of shares and per share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **USD'000** | **USD'000** | **USD'000** |
| Revenues | $- | $- | $- |
| Cost of revenues | - | - | - |
| Gross profit | - | - | - |
| Operating Expenses |  |  |  |
| Selling, general and administrative | 8398 | 2425 | 3593 |
| Total Operating Expenses | 8398 | 2425 | 3593 |
| Loss from Operations | (8398) | (2425) | (3593) |
| Other income (expense): |  |  |  |
| Realized loss on sale/exchange of cryptocurrencies | (4268) |  |  |
| Gain on fair value changes of cryptocurrencies | 83330 |  |  |
| Other expenses | (1) | - | - |
| Total other income, net | 79061 | - | - |
| Income (loss) before income taxes | 70663 | (2425) | (3593) |
| Provision for income tax | - | - | - |
| Net income (loss) from continuing operation | 70663 | (2425) | (3593) |
| Net loss from discontinued operations, net of income taxes | (100737) | (66580) | (94908) |
| Net loss | (30074) | (69005) | (98501) |
| Less: Net loss attributable to noncontrolling interests | (26460) | (22110) | (30390) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deemed dividend attributable to down round feature of warrants | 6251 | - | - |
| Net loss attributable to Digital Currency X Technology Inc. | $(9865) | $(46895) | $(68111) |
| Net loss | $(30074) | $(69005) | $(98501) |
| Changes in post-employment and termination benefits | 794 | (742) | (1216) |
| Foreign currency adjustment | (8187) | 3135 | (104) |
| Total comprehensive loss | (37467) | (66612) | (99821) |
| Less: Total comprehensive loss attributable to non-controlling interests | (27261) | (20179) | (30747) |
| Total comprehensive loss attributable to Digital Currency X Technology Inc. | $(10206) | $(46433) | $(69074) |
| Weighted average number of ordinary shares |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted weighted average ordinary shares outstanding | 2337678 | 4511 | 4401 |
| Loss per share |  |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted net loss per share attributable to Digital Currency X Technology Inc. | $(4.22) | $(10396.74) | $(15476.19) |

---

\* :Retrospectively restated for the effect of share consolidation

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)**

**(Amounts in thousands of US$, except for number of shares and per share data)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Class A | Class A | Class B | Class B | | | | | | | | |
|  | Ordinary Shares\* | Ordinary Shares\* | Ordinary Shares\* | Ordinary Shares\* | Ordinary Shares\* | Ordinary Shares\* | <br> Ordinary Shares<br>in Treasury | <br> Ordinary Shares<br>in Treasury | | | | | | |
|  | Shares\* | Amount | Shares\* | Amount | Shares\* | Amount | Shares\* | Amount |<br>Additional<br> Paid-in<br>Capital |<br>Statutory<br>Reserve |<br>Accumulated<br>Deficit | Accumulated<br>Other<br> Comprehensive<br>Income (Loss) |<br>Non-controlling<br>Interest |<br>Total<br> Shareholders'<br>Equity (Deficit) |
| Balance, January 1, 2023 | 4226 | $15 |  | $- |  | $- |  | $- | $163738 | $6656 | $(246051) | $7063 | $84707 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16128 |
| Impact from adoption of ASU 2016-13 |  |  |  |  |  |  |  |  |  |  | (73) |  |  | (73) |
| Effect of reverse recapitalization, net of costs | 158 | 1 |  |  |  |  |  |  | 70 |  |  |  |  | 71 |
| Conversion of rights to ordinary shares upon the reverse recapitalization | 50 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Treasury share purchase |  |  |  |  |  |  | (2) | (500) |  |  |  |  |  | (500) |
| Shares issued to JWAC officers and directors | 8 |  |  |  |  |  |  |  | 3021 |  |  |  |  | 3021 |
| Shares issued to Greentree | 6 |  |  |  |  |  |  |  | 1000 |  |  |  |  | 1000 |
| Shares issued to Chijet Motor directors | 1 |  |  |  |  |  |  |  | 200 |  |  |  |  | 200 |
| Exercise of warrants | 15 |  |  |  |  |  |  |  | 1100 |  |  |  |  | 1100 |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  |  |  |  | (233) | 129 | (104) |
| Changes in post-employment and termination benefits |  |  |  |  |  |  |  |  |  |  |  | (730) | (486) | (1216) |
| Net loss | - | - | - | - | - | - | - | - | - | - | (68111) | - | (30390) | (98501) |
| Balance, December 31, 2023 | 4464 | $16 |  | $- |  | $- | (2) | $(500) | $169129 | $6656 | $(314235) | $6100 | $53960 | $(78874) |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  |  |  |  | 908 | 2227 | 3135 |
| Changes in post-employment and termination benefits |  |  |  |  |  |  |  |  |  |  |  | (446) | (296) | (742) |
| Effects of rounding fractional shares into whole shares upon Reverse Share Split | 96 |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Net loss | - | - | - | - | - | - | - | - | - | - | (46895) | - | (22110) | (69005) |
| Balance, December 31, 2024 | 4560 | $16 |  | $- |  | $- | (2) | $(500) | $169129 | $6656 | $(361130) | $6562 | $33781 | $(145486) |
| Re-designation of authorized ordinary shares | (4560) | (16) | 4560 | 16 |  |  |  |  |  |  |  |  |  |  |
| Issuance of ordinary shares |  |  | 19077131 | 68678 | 1334 | 5 |  |  | 271756 |  |  |  |  | 340439 |
| Exercises of warrants |  |  | 476750 | 1716 |  |  |  |  | (1716) |  |  |  |  |  |
| Effects of rounding fractional shares into whole shares upon Reverse Share Split |  |  | 2382 | 9 |  |  |  |  | (9) |  |  |  |  |  |
| Deemed dividend attributable to down round feature of warrants |  |  |  |  |  |  |  |  | 6251 |  | (6251) |  |  |  |
| Foreign currency translation adjustment |  |  |  |  |  |  |  |  |  |  |  | (7069) | (1118) | (8187) |
| Changes in post-employment and termination benefits |  |  |  |  |  |  |  |  |  |  |  | 477 | 317 | 794 |
| Net loss | - | - | - | - | - | - | - | - | - | - | (3614) | - | (26460) | (30074) |
| Balance, December 31, 2025 | - | $- | 19560823 | $70419 | 1334 | $5 | (2) | $(500) | $445411 | $6656 | $(370995) | $(30) | $6520 | $157486 |

---

\* *Retrospectively restated for the effect of the Reverse Share Split*

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Expressed in U.S. dollar, except for the number of shares)**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the Years Ended** | **For the Years Ended** | **For the Years Ended** |
|  | **December 31,** | **December 31,** | **December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **US$'000** | **US$'000** | **US$'000** |
| **Cash Flows from Operating Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Net loss | $(30074) | $(69005) | $(98501) |
| &nbsp;&nbsp;&nbsp;Net loss from discontinued operations | (100737) | (66580) | (94908) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) from continuing operations | 70663 | (2425) | (3593) |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash used in by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expenses |  | 92 | 3171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of cryptocurrencies | 4268 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on fair value changes of cryptocurrencies | (83330) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest (income) expenses | (14) | 5 |  |
| &nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets from related parties |  | 60 | (60) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 204 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals and other current liabilities | 1286 | (136) | 140 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals and other current liabilities to related parties | (1706) | 38 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | - | (315) | 83 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in continuing operating activities | (8629) | (2681) | (209) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in discontinued operating activities | (45960) | (22783) | (39808) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (54589) | (25464) | (40017) |
| **Cash Flows from Investing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of cryptocurrencies | (15901) | - | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in continuing investing activities | (15901) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) discontinued investing activities | 17321 | (1058) | (1762) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities | 1420 | (1058) | (1762) |
| **Cash Flows from Financing Activities:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants |  |  | 600 |
| &nbsp;&nbsp;&nbsp;Proceeds from private placement | 30849 | 1120 |  |
| &nbsp;&nbsp;&nbsp;Proceeds from private placement-related parties |  | 1700 |  |
| &nbsp;&nbsp;&nbsp;Payments for reverse recapitalization and ordinary shares issuance costs | - | - | (250) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by continuing financing activities | 30849 | 2820 | 350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by discontinued financing activities | (8384) | 10818 | 4875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 22465 | 13638 | 5225 |
| Net change in cash, cash equivalents, and restricted cash | (30704) | (12884) | (36554) |
| Effects of currency translation on cash, cash equivalents, and restricted cash | 31813 | 4546 | (1360) |
| Cash, cash equivalents, and restricted cash, beginning of year | 3771 | 12109 | 50023 |
| Cash, cash equivalents, and restricted cash, end of year | 4880 | 3771 | 12109 |
| Less: Cash, cash equivalents and restricted cash of discontinued operations at end of year | (938) | (2089) | (12059) |
| Total cash, cash equivalents and restricted cash of continuing operations at end of year | $3942 | $1682 | $50 |
| Non-cash investing and financing activities: |  |  |  |
| Issuance of Class A ordinary shares to offset other current liabilities to related parties | $2590 | $- | $- |
| Issuance of Class A ordinary shares for Bitcoins | $307000 | $- | $- |
| Unpaid deferred offering cost related to reverse recapitalization | $- | $- | $379 |
| Deferred offering cost settled with ordinary shares | $- | $- | $1000 |
| Deferred offering costs reclassified to additional paid-in capital | $- | $- | $4500 |
| Repurchase of treasury shares | $- | $- | $500 |

---

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

**1. ORGANIZATION**

***(a) Principal activities***

Digital Currency X Technology Inc. ("Digital Currency X" or the "Company"), formerly known as Chijet Motor Company, Inc. ("Chijet Motor"), was incorporated on June 22, 2022 as a Cayman Islands exempted company. Digital Currency X, collectively with its subsidiaries ("the Group", "we", "us" or "our") was engaged in the development, manufacture, sales, and service of new energy vehicles, hybrid vehicles and traditional fuel vehicles in China. In November 2025, the Company commenced a strategic transformation toward the digital asset sector. As the core of its new business, the Company has launched DexTrader, an on-chain derivatives aggregation trading platform that provides a unified trading gateway, data analytics, and execution capabilities for digital assets and on-chain mapped traditional financial assets. The platform is scheduled to commence trial operations in June 2026 and has currently integrated Hyperliquid contract trading, with plans to add more DEXs, together with copy trading and quantitative strategy features. As part of its digital asset management strategy, the Company stakes EdgeAI native tokens for a fixed 12-month term to earn a floating annualized return, with returns distributed in EdgeAI tokens as determined by the on-chain mechanism. Meanwhile, the disposal of its former principal operating entities was completed on March 20, 2026 (as discussed in Note 5 — Discontinued Operations).

***(b) Reclassification of ordinary shares and share exchange***

 ****

On January 10, 2025, the shareholders of the Company approved at the 2025 Extraordinary General Meeting, the redesignation of authorized share capital from one class of ordinary shares to two classes of ordinary shares (the "Reclassification"). Upon the Reclassification, the authorized 10,000,000,000 shares of the Company consist of 9,982,000,000 class A ordinary shares ("Class A Ordinary Shares"), par value of US$0.003 each and 18,000,000 class B ordinary shares ("Class B Ordinary Shares"), par value of US$0.003 each.

Each Class A Ordinary Share entitles the holder thereof to one vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share entitles the holder thereof to 20 votes on all matters subject to vote at general meetings of the Company. Each Class B Ordinary Share is convertible into one Class A Ordinary Share at any time at the option of the holder thereof. In no event shall Class A Ordinary Shares be convertible into Class B Ordinary Shares. Save and except for voting rights and conversion rights, the Class A Ordinary Shares and the Class B Ordinary Shares rank par passu with one another and have the same rights, preferences, privileges and restrictions.

In March 2025, the Company issued an aggregate of 1,600,000 Class B Ordinary Shares to two of its existing shareholders, Chijet Holdings Limited and Euroamer Kaiwan Technology Company Limited, pursuant to a Share Exchange Agreement dated as of March 16, 2025 among the Company and two shareholders. In exchange for the Class B Ordinary Shares, the two shareholders returned an aggregate of 1,624,910 Class A Ordinary Shares of the Company to the Company, which were subsequently canceled, retired and reverted to authorized but unissued Class A Ordinary Shares.

 ****

***(c) Share consolidations***

On June 28, 2024, the Company declared a 1-for-30 share consolidation of its issued and unissued ordinary shares (the "2024 Share Consolidation") that became effective on July 8, 2024. Upon effectiveness of the 2024 Share Consolidation, every 30 of the Company's issued and unissued ordinary shares were automatically converted into one ordinary share with a par value of $0.003 per share.

On September 24, 2025, the Company's shareholders approved, at the Annual General Meeting, a share consolidation of up to 100-for-1 (the "2025 Share Consolidation") that became effective on November 3, 2025. Upon effectiveness of the 2025 Share Consolidation, every 100 of the Company's issued and unissued ordinary shares were automatically converted into one ordinary share, and the par value per share was adjusted from US$0.003 to US$0.30.

On December 24, 2025, the Company's Board of Directors approved a 12-for-1 share consolidation (the "2026 Share Consolidation"), which became effective on January 22, 2026. Upon effectiveness of the 2026 Share Consolidation, every 12 of the Company's issued and unissued ordinary shares were automatically converted into one ordinary share, and the par value per share was adjusted from US$0.30 to US$3.60.

No fractional shares were issued in connection with the above Share Consolidations. Any resulting fractional shares were rounded up by the Company. As of the effective date of January 22, 2026, the total amount of authorized share capital remained at US$3,000,000,000.00, while the total number of authorized shares was adjusted to 833,333,333.33, comprising (a) 831,833,333.33 Class A ordinary shares with a par value of US$3.60 each, and (b) 1,500,000 Class B ordinary shares with a par value of US$3.60 each. The total issued and outstanding Class A ordinary shares were reduced from 234,729,854 shares to approximately 19,560,821 shares, and the total issued and outstanding Class B ordinary shares were reduced from 16,001 shares to approximately 1,334 shares.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Unless otherwise indicated, all share and share-related information presented in these financial statements, including all shares, treasury stock, warrants, per share data and share prices set forth in the consolidated financial statements and notes, have been retroactively adjusted to reflect the decreased number of shares and the increased price per share resulting from the Share Consolidations.

***(d) Reverse recapitalization***

On June 1, 2023 ("Closing Date"), the Company consummated the business combination described further below. A Business Combination Agreement ("BCA") dated as of October 25, 2022, was entered into by and among Jupiter Wellness Acquisition Corp. ("JWAC"), a special purpose acquisition company, Chijet Inc., incorporated under the Combination laws of the Cayman Islands on July 2, 2021, Digital Currency X, a wholly-owned subsidiary of Chijet Inc., and Chijet Motor (USA) Company, Inc. ("Merger Sub"), a Delaware corporation and a wholly-owned subsidiary of Digital Currency X, and each of the holders of Chijet Inc.'s outstanding ordinary shares (collectively, the "Sellers").

Pursuant to the BCA, the business combination was affected through the merger of the Merger Sub with and into JWAC, with JWAC as the surviving entity and wholly-owned subsidiary of Digital Currency X. On the Closing Date, Digital Currency X acquired all of the issued and outstanding capital shares of Chijet Inc. held by the Sellers in exchange for ordinary shares of Digital Currency X, and any shares Chijet Inc. held in Digital Currency X were surrendered for no consideration, such that Chijet Inc. becomes a wholly-owned subsidiary of Digital Currency X and the Sellers became shareholders of Digital Currency X and its subsidiaries ("Share Exchange").

On the Closing Date, the Sellers holding 8,870,095 ordinary shares of DCX Inc. received 5,071,010 of ordinary shares after giving effect to the exchange ratio of 0.5717 ("Exchange Ratio") in the Share Exchange that had an aggregate value equal to US$1.6 billion, each valued at the Redemption Price at Closing of approximately US$31.552, subject to certain Sellers having an earnout ("Earnout") which would adjust downwards the consideration to applicable Sellers by up to Six Hundred Seventy Four Million Dollars (US$674 million) in the aggregate based on certain post-Closing financial performance and stock price metrics of the Company (Note 2(s)).

Following completion of the transactions contemplated by the BCA, there were an aggregate of 5,345,321 ordinary shares issued and outstanding which include those shares issued to the Sellers, 43,353 shares issued to JWAC's public shareholders with one contingent value right (a "CVR") of the Company for each share outstanding, 115,000 shares issued to JWAC's Class B Common Stock holders, 57,500 shares issued to holders with JWAC's right to receive (1/8) of ordinary shares, 58,458 shares issued to (i) privately placed JWAC Common Stock holders of 16,434 shares, (ii) holders with JWAC's privately placed right to receive (1/8) of ordinary shares, equivalent of 2,055 shares, (iii) I-banker privately placed 4,534 shares, (iv) I-banker with privately place right to receive (1/8) of ordinary shares, equivalent of 567 shares, (v) I-banker representative shares of 9,200, (vi) JWAC officers and directors of 10,000 shares, (vii) DCX independent directors compensation of 668 shares, (viii) Greentree Financial Group Inc. ("Greentree") of 6,667 shares due to the conversion of Shandong Baoya's accrued expenses of US$1 million pursuant to the financial consulting agreements with Greentree, and 8,333 shares issued for exercise of Greentree's warrants.

After giving the aforementioned effect, the number of ordinary shares issued and outstanding immediately following the consummation of the Business Combination was as follows:

SCHEDULE OF BUSINESS COMBINATION

---

| | |
|:---|:---|
|  | **Shares** |
| Legacy DCX Shares | 5071010 |
| JWAC's public shares, net of redemption | 43353 |
| JWAC public shares converted from (1/8) JWAC rights at closing | 57500 |
| JWAC sponsor shares | 115000 |
| Shares issued to private placed shareholders and rights, and share-based compensation | 50125 |
| Exercise of Greentree warrants | 8333 |
| Total shares of ordinary shares outstanding immediately after the Business Combination | 5345321 |

---

The Business Combination was accounted for as a "reverse recapitalization" in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). Under this method of accounting, although JWAC is the public entity as the legal acquirer, it was treated as the "accounting acquiree". And Digital Currency X as the legal acquiree, was treated as the acquirer for financial reporting purposes. This determination was primarily based on the following factors: (i) Digital Currency X's shareholders have a majority of the voting power of the Company after the consummation of the Business Combination; (ii) Digital Currency X and its subsidiaries represent the ongoing operations and a majority of the governing body of the Company, and (iii) Digital Currency X's senior management is comprised of the senior management of the Company. Accordingly, for accounting purposes, the business combination was treated as the equivalent of Digital Currency X issuing stock for the net assets of JWAC, accompanied by a recapitalization. The net assets of JWAC were stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the Business Combination were those of Digital Currency X and its subsidiaries. Accordingly, the consolidated assets, liabilities and results of operations prior to the reverse recapitalization were those of Digital Currency X and its subsidiaries, and JWAC's assets, liabilities and results of operations were consolidated with the Company beginning on June 1, 2023. Share data has been retroactively restated by the Exchange Ratio to give effect to the reverse recapitalization.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Upon the consummation of the reverse recapitalization, the assets and liabilities of JWAC were recognized at fair value. The fair value of cash and short-term liabilities acquired approximates their historical costs attributable to their short maturity. After the redemption of common stocks of JWAC before the closing of the business combination, the net assets acquired by the Company were in the amount of US$4.49 million which were recorded as an increase in additional paid-in capital. Assets and liabilities of JWAC upon the consummation of the reverse recapitalization were as follows:

SCHEDULE OF CONSUMMATION OF REVERSE RECAPITALIZATION

---

| | |
|:---|:---|
|  | **June 1, 2023** |
|  | **US$'000** |
| Cash | $13680 |
| Including repayment of extension note to Chijet Inc. | (2060) |
| Accrued expenses | (7129) |
| Bank charges | (1) |
| Net assets acquired by Digital Currency X as of June 1, 2023 | $4490 |

---

For the year ended December 31, 2023, the Company incurred approximately US$1.5 million of transaction costs for legal, accounting and consulting services directly associated with the reverse recapitalization. In accordance with SEC reporting guidance with regards to an operating company's reverse acquisition with a non-operating company having some cash, transaction costs incurred for the reverse acquisition, such as legal fees, investment banking fees and the like, may be charged directly to equity to the extent of the cash received, while all costs in excess of cash received should be charged to expense. Accordingly, the Company charged transaction costs of approximately US$1.5 million in 2023 and deferred cost US$3.0 million from previous years to additional paid-in capital in the consolidated financial statements.

***(e) History of the Company and Reorganization***

Prior to the incorporation of the Company and starting in April 2009, the business was carried out under Shandong Baoya and its subsidiaries. Shandong Baoya and its subsidiaries were controlled by a group of individual and institutional shareholders, with voting agreements to vote consensually concerning operating and development matters.

Prior to the business combination, Chijet Inc. completed a reorganization ("Reorganization"), which involved the following steps:

● On July 6, 2021, Chijet Inc. was established under the laws of the Cayman Islands.

● On July 12, 2021, Baoya Technology Holdings Limited was incorporated in the British Virgin Islands ("BVI") as a wholly-owned subsidiary of Chijet Inc.

● On July 28, 2021, Baoyaev Group Limited was incorporated in Hong Kong as a wholly-owned subsidiary of Baoya Technology Holdings Limited.

● On October 21, 2021, Baoya New Energy (Shandong) Co., Ltd. ("WFOE") was established in the People's Republic of China ("PRC") as a wholly-owned subsidiary of Baoyaev Group Limited.

By June 3, 2022, Chijet Inc. gradually acquired a 85.172% stake in Shandong Baoya through its wholly-owned subsidiary WFOE via the following transactions: (1) WFOE acquired 17.245% stake in Shandong Baoya from two shareholders through 1,795,977 ordinary shares issued by Chijet Inc.; and (2) WFOE acquired 67.927% stake in Shandong Baoya from seven shareholders, individual and institutional, for total consideration of Renminbi ("RMB") 7. Upon those transactions, all seven shareholders entered into a voting agreement to vote consensually concerning operation and development matters of the Chijet Inc. and its subsidiaries. Given that there was no change in control, the transaction is accounted for as business combination under common control.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

As of December 31, 2025, the subsidiaries of Digital Currency X were:

SCHEDULE OF CONSOLIDATION OF SUBSIDIARIES

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Date of**<br> **incorporation** | **Place of**<br> **incorporation** | **Percentage of**<br> **ownership** | **Principal**<br> **activities** |
| Subsidiaries |  |  |  |  |
| Baoya New Energy (Shandong) Co., Ltd.\* | October 21, 2021 | The PRC | 100.00% | Investment holding |
| Baoya New Energy Automobile Sale (Yantai) Co., Ltd.\* | November 29, 2019 | The PRC | 93.92% | New energy vehicle sales |
| Baoya New Energy Automobile R&D (Xiangyang) Co., Ltd.\* | May 25, 2022 | The PRC | 85.17% | Research and development of new energy vehicles |
| Baoya New Energy Automobile R&D Institution (Yantai) Co., Ltd.\* | November 29, 2019 | The PRC | 85.17% | Research and development of new energy vehicles |
| Baoya Technology Holdings Limited\* | July 12, 2021 | BVI | 100.00% | Investment holding |
| Baoyaev Group Limited\* | July 28, 2021 | Hong Kong | 100.00% | Investment holding |
| Chijet Inc.\* | July 6, 2021 | Cayman Islands | 100.00% | Investment holding |
| Dezhou Yarui New Energy Automobile Co., Ltd.\* | February 1, 2016 | The PRC | 65.23% | R&D and manufacturing of new energy vehicles |
| Dezhou Yitu New Energy Automobile Co., Ltd.\* | April 23, 2011 | The PRC | 86.43% | R&D and manufacturing of special electric vehicles |
| Faw Jilin Automobile Co., Ltd.\* | June 20, 1984 | The PRC | 60.05% | Commercial vehicles, passenger vehicles manufacturing |
| Faw Jilin Automobile Sale Co., Ltd.\* | June 23, 2021 | The PRC | 60.05% | Vehicle sales |
| Jupiter Wellness Acquisition Corp. | September 14, 2021 | Delaware, US | 100.00% | Investment holding |
| Shandong Baoya New Energy Vehicle Co., Ltd.\* | April 14, 2009 | The PRC | 85.17% | New energy vehicle production and manufacturing |
| Xiangyang Yazhi New Energy Automobile Co., Ltd.\* | May 16, 2016 | The PRC | 85.17% | R&D and manufacturing of small new energy vehicles |
| Xiangyang Yazhi New Energy Automobile Sale Co., Ltd.\* | July 22, 2016 | The PRC | 85.17% | Sales of small new energy vehicles |
| NexFi Inc | October 22, 2025 | Wyoming, US | 100.00% | Digital asset financial services |

---

\* The above subsidiaries was disposed on March 20, 2026. For further details, see Note 5 – Discontinued Operations.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***(f) Liquidity and going concern***

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities in the normal course of business.

The Company has incurred recurring operating losses and negative operating cash flows in recent periods. In addition, the Company has undergone a significant strategic transformation, including the disposal of its legacy automotive business and a transition to digital asset-related activities, which have limited operating history. These factors indicate that the Company is subject to certain risks and uncertainties.

In accordance with applicable accounting guidance, management has evaluated the Company's ability to continue as a going concern for a period of at least twelve months from the date of issuance of these financial statements. This evaluation included the preparation of detailed cash flow forecasts reflecting the Company's current cost structure and expected operating requirements.

Based on this assessment, management expects that the Company will maintain sufficient liquidity to meet its obligations as they fall due for at least twelve months from the issuance date of these financial statements. The forecast indicates that the Company is able to sustain its operations based primarily on existing cash resources and ongoing cost management, without reliance on uncertain inflows such as projected revenues, financing activities, or returns from digital asset-related activities.

A substantial portion of the Company's assets consists of digital assets, which are subject to price volatility and evolving market conditions. In addition, subsequent to year-end, certain digital assets have been subject to staking arrangements that may restrict their availability for short-term liquidity purposes. While these factors introduce uncertainty, they have been considered in management's assessment.

Management has undertaken various strategic initiatives to support the Company's long-term operations and financial position. These include the development of a digital asset trading platform, expansion of digital asset-related services, and access to financing arrangements that may provide additional liquidity if required. The timing and extent of benefits from these initiatives are subject to market conditions and execution risks.

Based on the foregoing, management believes that it is not probable that the Company will be unable to meet its obligations as they fall due within one year from the issuance date of these financial statements. Accordingly, the consolidated financial statements have been prepared on a going concern basis.

**2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

***(a) Basis of presentation***

The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP to reflect the financial position and results of operations of the Company.

Significant accounting policies followed by the Company in the preparation of its accompanying consolidated financial statements are summarized below.

**Emerging Growth Company Status**

The Company is an "emerging growth company" as defined in Section 2(a) of the Securities Act of 1933, as amended, ("Securities Act"), as modified by the Jumpstart our Business Startups Act of 2012, ("JOBS Act"), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

***(b) Principles of consolidation***

The accompanying consolidated financial statements include the financial statements of Digital Currency X and its subsidiaries. A subsidiary is an entity in which Digital Currency X, directly or indirectly, controls more than one half of the voting power (a) to appoint or remove the majority of the members of the board of directors ("Board"), (b) to cast majority of votes at the meeting of the Board or to govern the financial and operating policies of the investee under a statute or agreement among the shareholders or equity holders.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. All inter-company transactions and balances between Digital Currency X and its subsidiaries have been eliminated in consolidation.

***(c) Use of estimates***

The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the balance sheet date, and the reported amounts of revenues and expenses during the reporting period in the consolidated financial statements and accompanying notes.

Following the classification of the Company's legacy automotive business as discontinued operations and the subsequent disposal, the nature of the Company's critical accounting estimates has changed. The Company's critical accounting estimates primarily relate to the following areas:

● Measurement of the disposal group classified as held for sale — including the determination of fair value less costs to sell under ASC 360, which involves consideration of the disposal structure, expected assumption of liabilities by the buyer, and available market information;

● Recoverability of receivables, prepayments, and other assets — based on factors such as aging, counterparty credit risk, subsequent collections, and the impact of the disposal of the underlying business;

● Net realizable value of inventory — particularly where inventory is no longer expected to be sold in the ordinary course of business and is instead assessed based on estimated recoverable;

● Contingent liabilities and legal matters — including the evaluation of the likelihood and measurement of potential losses arising from legal and regulatory matters in accordance with ASC 450.

These estimates are based on information available as of the reporting date and involve inherent uncertainty, particularly in light of the disposal of the underlying business and related settlement activities. Management believes that the assumptions and estimates applied are reasonable and supportable. Actual results could differ from these estimates, and such differences may be material to the consolidated financial statements.

 *<u>Significant estimates related to the discontinued operations and the disposal group</u>*

The Company's legacy automotive business was classified as a disposal group held for sale and subsequently disposed of (see Note 5 — Discontinued Operations). As a result, management applied significant judgment and estimation in determining the measurement and recoverability of assets and liabilities associated with the disposal group.

 *<u>Impairment and measurement of the disposal group</u>*

The disposal group is measured at the lower of its carrying amount or fair value less costs to sell in accordance with ASC 360. The determination of fair value less costs to sell involves judgment, including consideration of:

● the agreed disposal structure, including the transfer of assets and assumption of liabilities by the buyer;

● observable and unobservable inputs relevant to the underlying assets;

● market participant assumptions; and

● costs directly attributable to the disposal.

Management considered available information, including the terms of the subsequent sale agreement and other corroborative evidence, in estimating fair value less costs to sell. Based on this assessment, no impairment loss was recognized.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

*<u>Recoverability of receivables, prepayments, and other assets</u>*

The Company evaluates the recoverability of receivables and other assets based on aging, counterparty credit risk, subsequent collections, and the impact of the disposal of the underlying business.

Given the cessation of operations and the disposal of the business, management applied judgment in assessing the expected realization of these balances. Where appropriate, adjustments have been made to reflect estimated recoverable amounts.

 *<u>Net realizable value of inventory</u>*

Inventory is measured at the lower of cost or net realizable value. Following the classification of the disposal group, inventory is no longer expected to be sold in the ordinary course of business and is instead assessed based on estimated recoverable, determined with reference to available information at the reporting date. Management considered available evidence, including expected disposal outcomes and prevailing market conditions, in determining net realizable value.

 *<u>Contingent liabilities and legal matters</u>*

The Company is subject to various legal and regulatory matters, including claims and enforcement-related actions. The recognition and measurement of contingent liabilities require judgment in assessing the likelihood of loss and the ability to estimate potential outcomes in accordance with ASC 450.

 *<u>Estimation uncertainty</u>*

These estimates involve inherent uncertainty due to:

● the disposal of the underlying business;

● ongoing enforcement and settlement processes; and

● the limited availability of observable inputs for certain assets and liabilities.

Management believes that the assumptions and estimates applied are reasonable and supportable based on information available as of the reporting date.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***(d) Functional currency and foreign currency translation***

The Company's reporting currency is the United States dollar ("US$"). The functional currency of the Company and its subsidiaries which is incorporated in places other than Chinese Mainland is the United States dollar. The functional currencies of the other subsidiaries are the RMB, the legal currency of Mainland China. The determination of the functional currency is based on the criteria set out by Accounting Standards Codification ("ASC") 830, Foreign Currency Matters.

Transactions denominated in foreign currencies other than the functional currency are translated into the functional currency using the exchange rates prevailing at the transaction dates. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency using the applicable exchange rates at the balance sheet date. Non-monetary items that are measured in terms of historical cost in foreign currency are measured using the exchange rates at the dates of the initial transactions. Exchange gains or losses arising from foreign currency transactions are included in the consolidated statements of comprehensive loss.

The financial statements of the Company's subsidiaries whose functional currency is not the US$ are translated from their respective functional currency into US$. Assets and liabilities denominated in foreign currencies are translated into US$ at the exchange rates at the balance sheet date. Equity accounts other than earnings generated in current period are translated into US$ at the appropriate historical rates. Income and expense items are translated into US$ using the periodic average exchange rates. The resulting foreign currency translation adjustments are recorded in other comprehensive income or loss in the consolidated statements of comprehensive loss, and the accumulated currency translation adjustments are presented as a component of accumulated other comprehensive income or loss in the consolidated statements of changes in shareholders' deficit.

***(e) Fair value of financial instruments***

Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Company considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability.

The Company applies a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. This guidance specifies a hierarchy of valuation techniques, which is based on whether the inputs into the valuation technique are observable or unobservable. The hierarchy is as follows:

Level I — Valuation techniques in which all significant inputs are unadjusted quoted prices from active markets for assets or liabilities that are identical to the assets or liabilities being measured.

Level II — Valuation techniques in which significant inputs include quoted prices from active markets for assets or liabilities that are similar to the assets or liabilities being measured and/or quoted prices for assets or liabilities that are identical or similar to the assets or liabilities being measured from markets that are not active. Also, model-derived valuations in which all significant inputs and significant value drivers are observable in active markets are Level II valuation techniques.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Level III — Valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are valuation technique inputs that reflect the Company's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The fair value guidance describes three main approaches to measure the fair value of assets and liabilities: (1) market approach; (2) income approach and (3) cost approach. The market approach uses prices and other relevant information generated from market transactions involving identical or comparable assets or liabilities. The income approach uses valuation techniques to convert future amounts to a single present value amount. The measurement is based on the value indicated by current market expectations about those future amounts. The cost approach is based on the amount that would currently be required to replace an asset.

When available, the Company uses quoted market prices to determine the fair value of an asset or liability. If quoted market prices are not available, the Company will measure fair value using valuation techniques that use, when possible, current market-based or independently sourced market parameters, such as interest rates and currency rates.

Financial assets and liabilities of the Company primarily consist of cash and cash equivalents, other assets, and accruals and other current liabilities. As of December 31, 2025 and 2024, the carrying values of these financial instruments approximated their respective fair values because of the short-term nature of these instruments. Cryptocurrencies valuated by valuation technique inputs that reflect the Company's own assumptions are classified as level 3 investment and are measured at fair value as of December 31, 2025.

***(f) Discontinued operations and assets held for sale***

*<u>Discontinued Operations</u>*

In accordance with ASC 205-20, the Company classifies a component as discontinued operations when it has been disposed of or is classified as held for sale, and the disposal represents a strategic shift with a major effect on the Company's operations and financial results. A component comprises operations and cash flows clearly distinguishable from the rest of the Company. When a component is classified as discontinued operations, its results of operations are presented separately in the consolidated statements of operations for all periods presented, and its assets and liabilities are presented separately in the consolidated balance sheets.

*<u>Assets Held for Sale</u>*

In accordance with ASC 360-10-45-9, the Company classifies a long-lived asset or disposal group as held for sale when all of the following criteria are met: (i) management commits to a plan to sell; (ii) the asset is available for immediate sale; (iii) an active program to locate a buyer has been initiated; (iv) the sale is probable within one year; (v) the asset is actively marketed at a reasonable price relative to its fair value; and (vi) significant changes to the plan are unlikely. The determination requires significant judgment, particularly in assessing the timing of management's commitment and whether an active disposal program has been initiated. In evaluating these criteria, the Company considers both internally initiated strategic actions and externally imposed conditions, including legally binding enforcement or disposal processes affecting significant assets within a disposal group, where applicable. Assets held for sale are measured at the lower of carrying amount or fair value less costs to sell. Depreciation and amortization cease upon classification. If carrying amount exceeds fair value less costs to sell, an impairment loss is recognized. Subsequent increases in fair value less costs to sell are recognized as gains, but not exceeding cumulative impairment losses previously recognized.

*<u>Disposal Groups</u>*

When a disposal group includes both assets and liabilities, the Company evaluates the held-for-sale criteria and measurement at the disposal group level. Fair value less costs to sell reflects the value of the disposal group as a whole, considering the economic substance of the transaction. The classification and measurement of disposal groups require significant estimates and assumptions, including the determination of fair value less costs to sell and the assessment of whether the held-for-sale criteria are met as of the reporting date.

Events occurring after the reporting date but before the financial statements are issued may be considered in assessing conditions that existed at the reporting date. Such events may provide additional evidence in evaluating whether the held-for-sale criteria were met, but are not, in isolation, determinative of classification.

***(g) Cash and cash equivalents***

Cash and cash equivalents primarily consist of cash and demand deposits which are highly liquid. The Company considers highly liquid investments that are readily convertible to known amounts of cash and with original maturities from the date of purchase of three months or less to be cash equivalents. All cash and cash equivalents are unrestricted as to withdrawal and use.

***(h) Cryptocurrencies***

 ****

The Company accounts for crypto assets that meet the scope criteria of Accounting Standards Codification ("ASC") Topic 350-60, Intangibles—Goodwill and Other—Crypto Assets (ASU 2023-08), at fair value in accordance with this guidance. Crypto assets are presented separately from other intangible assets on the Consolidated Balance Sheets. Crypto assets are classified as current assets based on the Company's intent and ability to realize them within one year.

Crypto assets are initially measured at fair value at the transaction date. When acquired through the issuance of ordinary shares or through exchange for other crypto assets, the Company measures the assets received at their fair value on the transaction date.

Subsequent to acquisition, crypto assets are remeasured at fair value at each reporting date. For cryptocurrencies traded in active markets without restrictions, fair value is determined using quoted prices in the Company's principal market and is classified within Level 1 of the fair value hierarchy. Where adjustments to quoted prices are required (e.g., due to lack of marketability or transfer restrictions), fair value incorporates unobservable inputs and is classified within Level 3 of the fair value hierarchy. The Company determines the principal market based on the exchange with the greatest volume and level of activity and considers the reliability and consistency of pricing sources.

Changes in fair value between reporting dates are recognized immediately in the consolidated statements of operations within "Other income (expenses) – Gain (loss) on fair value changes of cryptocurrencies." Upon disposal of crypto assets, including when one cryptocurrency is used to acquire another, the Company derecognizes the crypto asset transferred and recognizes a gain or loss equal to the difference between its carrying value and its fair value at the transaction date. The acquired crypto asset is initially recorded at its fair value at the transaction date.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Cash flows from the purchase and sale of crypto assets are classified as investing activities in the consolidated statements of cash flows. Non-cash transactions involving crypto assets, including acquisitions using other digital assets or issuance of shares, are excluded from the consolidated statements of cash flows and disclosed separately as non-cash investing and financing activities.

When the Company acquires cryptocurrencies in exchange for its ordinary shares, the transaction is accounted for as a non-cash financing activity. The cryptocurrencies received are initially measured at fair value at the transaction date. The ordinary shares issued are recorded at par value, with any excess of the fair value of the cryptocurrencies received over the par value of the shares issued recognized in additional paid-in capital.

The Company maintains its crypto assets in digital wallets and performs procedures to verify existence and ownership, including reconciliation to blockchain records and, where applicable, confirmations with custodians.

***(i) Investments***

On February 21, 2025, the Company entered into a stock purchase agreement with Too Express Group Inc. ("Too Express") to acquire an aggregate of 80% of the equity interests (the "TE Shares") in Too Express. The Company issued 23,255,814 Class A Ordinary Shares (the "Company Shares"), valued at US$40,000,000, or US$1.72 per share, as consideration. The transaction cost was US$261,225. The remaining 20% of the equity interest is held individually by the original 10 individual shareholders of Too Express. The transaction closed on April 28, 2025.

Pursuant to a Future Rights Agreement delivered at the closing, the transaction was terminated as the shareholder equity of the Company as of June 30, 2025 was a negative number. The Company Shares shall be forfeited and the TE Shares shall be returned to the original sellers of the TE Shares. As such, 23,255,814 of the Company Shares were forfeited, retired and cancelled as of August 1, 2025, resulting in neither cash inflows nor cash outflows.

As the above investment was disposed of on August 1, 2025, there was no balance related to this investment in short-term investments as of December 31, 2025.

The Company records short-term investments that are not subject to equity method of accounting at fair value, with gains and losses recorded through net earnings. In accordance with ASC 321, the Company elects the measurement alternative and records certain equity investments without readily determinable fair value at cost, less impairments, plus or minus observable price changes.

Equity investments the Company elects to use measurement alternative are evaluated for impairment qualitatively at each reporting date based on various factors, including projected and historical financial performance, cash flow forecasts and financing needs, the regulatory and economic environment of the investee and overall health of the investee's industry.

As of December 31, 2025, there were no observable impairment indicators for the investments.

***(j) Income taxes***

Current income taxes are recorded in accordance with the regulations of the relevant tax jurisdiction. The Company accounts for income taxes under the asset and liability method in accordance with ASC 740, *Income Tax*. Under this method, deferred tax assets and liabilities are recognized for the tax consequences attributable to differences between carrying amounts of existing assets and liabilities in the consolidated financial statements and their respective tax basis, and operating loss carry forwards. 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 taxes of a change in tax rates is recognized in the consolidated statements of operations in the period of change. Valuation allowances are established when necessary to reduce the amount of deferred tax assets if it is considered more likely than not that amount of the deferred tax assets will not be realized.

*<u>Uncertain tax positions</u>*

The Company evaluates its tax positions in accordance with ASC 740 using a more-likely-than-not recognition threshold. An uncertain tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. 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. Interest and penalties related to uncertain tax positions, if any, are recorded under accrued expenses and other current liabilities on the consolidated balance sheets and under other expenses in the consolidated statements of operations.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

In performing this assessment, the Company considered significant transactions during the year, including the unwind of the Too Express acquisition, the disposal of subsidiaries, and cryptocurrency-related activities. Based on this evaluation, management concluded that there are no material uncertain tax positions that require recognition in the consolidated financial statements as of December 31, 2025 and 2024. Accordingly, the Company did not accrue any liability, interest or penalties related to uncertain tax positions in its provision for income taxes line of its consolidated statements of income.

***(k) Warrants***

The Company classifies as equity any contracts that (i) require physical settlement or net-share settlement (ASC 815-40-25-4), or (ii) give the Company a choice of net-cash settlement or settlement in its own shares, provided that all criteria for equity classification are met. The Company classifies as liabilities any contracts that (i) require net-cash settlement, including a requirement to net-cash settle the contract if an event occurs and that event is outside the control of the Company (ASC 480-10-25-8), or (ii) give the counterparty a choice of net-cash settlement or settlement in shares (ASC 815-40-25-4).

The assessment considers whether the warrants are freestanding financial instruments, meeting the definition of a liability under ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815. This includes determining whether the warrants are indexed to the Company's own ordinary share and whether the warrant holders could potentially require net cash settlement in a circumstance outside of the Company's control. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and is reassessed at each subsequent reporting date while the warrants are outstanding.

Warrants that meet all of the criteria for equity classification are recorded as a component of equity at fair value at the time of issuance and not subsequently remeasured. Warrants that do not meet the criteria for equity classification are recorded as liabilities, measured at fair value at issuance and subsequently remeasured to fair value at each reporting period, with changes in fair value recognized in earnings.

The Company recognizes on a prospective basis the value of the effect of the down round feature in the warrants when the feature is triggered (i.e., when the exercise price is adjusted downward). This value is measured as the difference between (1) the financial instrument's fair value (without the down round feature) using the pre-trigger exercise price and (2) the financial instrument's fair value (with the down round feature) using the reduced exercise price. The value of the effect of the down round feature will be treated as a deemed dividend and a reduction to income available to ordinary shareholders in the basic earnings per share ("EPS") calculation.

Certain warrants issued during the year include features that adjust the exercise price and number of shares issuable upon exercise. The Company evaluated these features in determining whether the warrants are indexed to its own stock and concluded that equity classification is appropriate.

During the year 2025, the Company recognized a deemed dividend of $6,251 related to the down-round feature of warrants.

***(l) Statutory reserves***

The Company's subsidiaries established in the PRC are required to make appropriations to certain non-distributable reserve funds.

In accordance with the laws applicable to PRC's Foreign Investment Enterprises, the Company's subsidiaries registered as wholly-owned foreign enterprises have to make appropriations from their after-tax profits (as determined under the Accounting Standards for Business Enterprises as promulgated by the Ministry of Finance of the People's Republic of China ("PRC GAAP") to reserve funds including the general reserve fund, and staff bonus and welfare fund. The appropriation to the general reserve fund must be at least 10% of the after-tax profits calculated in accordance with PRC GAAP. Appropriation is not required if the reserve fund has reached 50% of the registered capital of the Company. Appropriation to the staff bonus and welfare fund is at the Company's discretion.

The use of the general reserve fund, statutory surplus fund and discretionary surplus fund is restricted to the offsetting of losses or increasing capital of the respective company. The staff bonus and welfare fund is a liability in nature and is restricted to fund payments of special bonuses to staff and for the collective welfare of employees. No reserves are allowed to be transferred to the Company in terms of cash dividends, loans or advances, nor can they be distributed except under liquidation.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***(m) Comprehensive income (loss)***

The Company applies ASC 220, *Comprehensive Income*, with respect to reporting and presentation of comprehensive loss and its components in a full set of financial statements. Comprehensive loss is defined to include all changes in equity of the Company during a period arising from transactions and other events and circumstances except those resulting from investments by shareholders and distributions to shareholders. For the periods presented, the Company's comprehensive loss includes net loss and other comprehensive loss, which primarily consists of the foreign currency translation adjustments and actuarial loss arising from changes in financial assumptions on the Company's defined contribution plan that has been excluded from the determination of net loss.

***(n) Loss per share***

Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares by the weighted-average ordinary shares outstanding for the period. Potentially dilutive shares, which are based on the weighted-average ordinary shares underlying outstanding stock-based awards, warrants, or options using the treasury stock method or the if-converted method, if applicable, are included when calculating diluted net loss per share attributable to holders of ordinary shares when their effect is dilutive.

Since the Company has incurred losses for each of the years ended December 31, 2025, 2024 and 2023, the potential shares issuable related to outstanding warrants have been excluded from the calculation of diluted loss per share as the effect of such shares is anti-dilutive. Therefore, basic and diluted loss per share amounts are the same for each period presented.

Earnout/Contingent Value Rights

Pursuant to the BCA, 2,136,163 ordinary shares (valued as US$674 million of the Exchange Consideration based on the Redemption Price for purposes of the BCA) were issued to certain Chijet Inc. Sellers at the Closing (the "Earnout Shares"). Such shares were subject to vesting and potential surrender if they did not vest, with transfer restrictions during the vesting period. Any earnings on the Earnout Shares prior to vesting was to be set aside in escrow to satisfy the vesting criteria prescribed in the BCA relating to (i) consolidated gross revenue or (ii) closing price of the Company's ordinary shares, and vested in three tranches consisting of 30% for 2023, 30% for 2024 and any unvested amount for 2025 as described as follows:

(i) The
 first tranche (along with earnings thereon) were to (i) vest proportionately based on the consolidated gross revenues of Digital Currency X
 (including the period prior to the Closing) as set forth in Digital Currency X 's audited annual financial statements included in Form
 20-F filed with the SEC for the calendar year ended December 31, 2023 (as adjusted for a fixed 6.5-to-1 RMB to U.S. dollar exchange
 rate) in excess of US$528 million, up to a maximum of 100% of the first tranche at US$801 million in consolidated gross revenues,
 or alternatively (ii) vest for 100% of the first tranche if the Digital Currency X ordinary shares on Nasdaq were at least US$390.00 per share
 (as equitably adjusted for share splits, share capitalizations, share consolidations, subdivisions, share dividends, reorganizations,
 recapitalizations and the like) for at least twenty (20) out of thirty (30) trading days, through and including the thirtieth (30th)
 trading day after the date on which Digital Currency X filed its annual report on Form 20-F with the SEC (such trading criteria being collectively
 the "Trading Criteria"), for the fiscal year ended December 31, 2023, and any shares in the tranche that do not so vest
 were surrendered to DCX and cancelled.

(ii) The
 second tranche (along with earnings thereon) will likewise either (i) vest proportionately based on the consolidated gross revenues
 of Digital Currency X (including the period prior to Closing) as set forth in Digital Currency X's audited annual financial statements included
 in its Form 20-F filed with the SEC for the calendar year ended December 31, 2024 (as adjusted for a fixed 6.5-to-1 RMB to U.S. dollar
 exchange rate) in excess of US$870 million, up to a maximum of 100% of the second tranche at US$2,206 million in consolidated gross
 revenues, or alternatively (ii) vest for 100% of the second tranche based on meeting the Trading Criteria during the applicable period
 for the year ended December 31, 2024, and any shares in the tranche that do not so vest will be surrendered to DCX and cancelled.

(iii) Any
 remaining Earnout Shares (along with earnings thereon) not vested or surrendered in the first or second tranches are eligible either
 to (i) vest proportionately based on the consolidated gross revenues of Digital Currency X (including the period prior to Closing) as set
 forth in Digital Currency X's audited annual financial statements included in Form 20-F for the calendar year ending December 31, 2025
 (as adjusted for affixed 6.5-to-1 RMB to U.S. dollar exchange rate) in excess of US$1,616 million, up to a maximum of 100% of the
 final tranche at US$3,215 million in consolidated gross revenues, or alternatively (ii) vest for 100% of the final tranche based
 on meeting the Trading Criteria during the applicable period for the year ending December 31, 2025, and any shares in the tranche
 that do not so vest will be surrendered to DCX (along with earnings thereon) and cancelled.

Any Earnout Shares and earnings thereon that are surrendered to DCX will be promptly reissued and delivered by DCX to the CVR rights agent on behalf of the holders of the CVRs, to be reissued pro rata among the holders of the CVRs.

The accounting for the Earnout Shares was first evaluated under ASC 718 to determine if the arrangement represents a share-based payment. Considering that the Earnout Shares were issued to the Chijet Inc. Sellers, and there are no service conditions nor any requirement of the participants to provide goods or services, the Company determined that the Earnout Shares are not within the scope of ASC 718. In reaching this conclusion, the Company focused on the fact that the Earnout Shares are not provided to any holder of options or unvested stock but rather the arrangement is provided only to vested equity holders.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Next, the Company determined that the Earnout Shares represent a freestanding equity-linked financial instrument to be evaluated under ASC 480. Based upon the analysis, the Company concluded that the Earnout Shares should not be classified as a liability under ASC 480.

The Company next considered the conditions in ASC 815-10-15-74 and ASC 815-40 and concluded that the Earnout Shares are not within the scope of ASC 815. Therefore, the Earnout Share arrangement is appropriately classified in equity. As the business combination was accounted for as a reverse recapitalization, the fair value of the Earnout Share arrangement as of the Closing Date was accounted for as an equity transaction. Therefore, contingent value rights did not give any effect in calculation of the earnings per share as of December 31, 2025.

In evaluating the Earnout Shares under ASC 815-40, the Company considered the impact of both market-based and performance-based vesting conditions. The Company concluded that these conditions do not affect the settlement amount of the arrangement, but rather determine whether the shares vest, and therefore do not preclude equity classification. This assessment involves significant judgment.

The Company's accounting treatment is consistent with prior periods.

***(o) Segment reporting***

 ****

In accordance with ASC 280, Segment Reporting, the Company's chief operating decision maker ("CODM") has been identified as the Chief Executive Officer, who reviews consolidated financial information when making decisions about resource allocation and performance assessment.

Following the strategic transformation and classification of the legacy automotive business as discontinued operations (see Note 5), the Company's continuing operations consist primarily of digital asset-related activities. The CODM evaluates the Company's performance on a consolidated basis and does not distinguish between components of the business for internal reporting purposes. Accordingly, the Company operates as a single reportable segment.

The measure of segment profit or loss reviewed by the CODM is net loss, consistent with the consolidated statements of operations. Significant segment expenses reviewed by the CODM include cost of revenues, research and development expenses, and general and administrative expenses, which are presented in the consolidated statements of operations. The measure of segment assets is total consolidated assets as presented in the consolidated balance sheets.

The Company generates revenues from a global customer base and does not have significant geographic concentrations. Substantially all of the Company's long-lived assets, including its operating infrastructure and personnel, are located in China.

As the Company operates as a single reportable segment and does not distinguish between different products, services, or geographic areas in its internal reporting, no further segment information is presented.

The Company adopted ASU 2023-07, Improvements to Reportable Segment Disclosures, effective January 1, 2024, and applied the amendments retrospectively to all periods presented. The adoption did not impact the Company's determination of its reportable segments.

***(p) Reclassification***

Certain prior period amounts have been reclassified to conform to the current year presentation of discontinued operations in accordance with applicable accounting guidance. These reclassifications impacted the presentation of results of operations and cash flows between continuing and discontinued operations but had no effect on previously reported net loss, total assets, total liabilities, or cash flows. The prior period financial statements have been recast to reflect the classification of the disposed business as discontinued operations.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

**3. RECENT ACCOUNTING PRONOUNCEMENTS**

***Recently adopted accounting pronouncements***

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which requires enhanced disclosures regarding significant segment expenses and the information reviewed by the chief operating decision maker. The Company adopted ASU 2023-07 on January 1, 2024 and applied the amendments retrospectively to all prior periods presented. The adoption did not impact the Company's determination of its reportable segments but resulted in expanded segment disclosures in the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company's annual reporting periods beginning after December 15, 2024. Adoption is either with a prospective method or a fully retrospective method of transition. Early adoption is permitted. The Company adopted ASU No. 2023-09 on January 1, 2025, which did not have a material impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-08, "Intangibles — Goodwill and Other — Crypto Assets (Topic 350-60): Accounting for and Disclosure of Crypto Assets" ("ASU 2023-08"), which requires entities to measure crypto assets that meet specific criteria at fair value with changes recognized in net income each reporting period. Additionally, ASU 2023-08 requires an entity to present crypto assets measured at fair value separately from other intangible assets in the balance sheets and record changes from remeasurement of crypto assets separately from changes in the carrying amounts of other intangible assets in the income statement. The amendments also require that an entity provide disclosures about significant holdings, contractual sale restrictions, and changes during the reporting period. The objectives of the amendments are to provide investors and other capital allocators with more decision-useful information that better reflects the underlying economics of crypto assets within the scope and an entity's financial position while reducing cost and complexity associated with applying cost-less-impairment accounting. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. Early adoption is permitted for both interim and annual financial statements that have not yet been issued (or made available for issuance). The Company adopted ASU 2023-08 on January 1, 2025, and applied the amendments retrospectively to all prior periods presented in these consolidated financial statements. As the Company did not hold crypto assets in prior periods, the adoption did not result in any adjustments to previously reported financial statements. Beginning in 2025, the Company measures its crypto assets at fair value, with changes in fair value recognized in net income.

***Recently issued accounting pronouncements not yet adopted***

In October 2023, the Financial Accounting Standards Board ("FASB") issued ASU No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). ASU 2023-06 adds interim and annual disclosure requirements to GAAP at the request of the Securities and Exchange Commission. The guidance in ASU 2023-06 is required to be applied prospectively and the GAAP requirements will be effective when the removal of the related SEC disclosure requirements is effective. If the SEC does not act to remove its related requirements by June 30, 2027, any related FASB amendments will be removed from the Accounting Standards Codification and will not be effective. The Company does not anticipate that the adoption of ASU 2023-06 will have a material impact on the consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40) Disaggregation of Income Statement Expenses (or ASU 2024-03). This ASU improves the disclosures about a public business entity's expenses and addresses requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and development). This ASU is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027. The amendments in this ASU are applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this ASU or (2) retrospectively to any or all prior periods presented in the financial statements. The Company does not expect that adoption of ASU 2024-03 will have a material impact on the Company's consolidated financial statements.

In July 2025, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 amends ASC 326, Financial Instruments—Credit Losses, and introduces a practical expedient available for all entities and an accounting policy election available for all entities, other than public business entities, that elect the practical expedient. These changes apply to the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASC 606, Revenue Recognition. Under the practical expedient, entities may assume that current conditions as of the balance sheet date remain unchanged for the remaining life of the asset when developing reasonable and supportable forecasts. This simplifies the estimation process for short-term financial assets. ASU 2025-05 is effective for the Company's annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods, with early adoption permitted. ASU 2025-05 should be applied on a prospective basis. The Company is currently assessing the impact this standard will have on the Company's Consolidated Financial Statements.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

**4. CONCENTRATION OF RISK**

***(a) Credit risk***

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents, and restricted cash. The maximum exposure of such financial instruments to credit risk is their carrying amounts as of the balance sheet dates. As of December 31, 2025 and 2024, the substantial majority of the Company's deposits (representing over 80% of the Group's total deposits) were held with banking institutions outside of the PRC. A portion of the Company's funds was also held with banking institutions in the PRC (these assets and the related entities were subsequently disposed of in 2026 and have been presented as discontinued operations in these consolidated financial statements). For deposits held with U.S. banking institutions, the standard FDIC insurance coverage is $250,000 per depositor, per insured bank. Deposit balances in excess of this coverage are subject to uninsured risk. Management selects institutions based on their reputation, track record of stability, and known capital reserves, and periodically reviews these institutions' standing. Management expects that any additional institutions used by the Company for its cash and bank deposits will be selected using similar criteria.

***(b) Foreign currency exchange rate risk***

The revenues and expenses of the Company's entities in the PRC (which have been presented as discontinued operations in these consolidated financial statements) are generally denominated in RMB and their assets and liabilities are denominated in RMB. The Company's overseas financing activities are denominated in U.S. dollars. The RMB is not freely convertible into foreign currencies. Remittances of foreign currencies into the PRC or remittances of RMB out of the PRC as well as exchange between RMB and foreign currencies require approval by foreign exchange administrative authorities and certain supporting documentation. The State Administration for Foreign Exchange, under the authority of the People's Bank of China, controls the conversion of RMB into other currencies. These PRC entities were subsequently disposed of in 2026.

**5. DISCONTINUED OPERATIONS**

*Disposal of Chijet Inc. and its subsidiaries*

 

On March 18, 2026, the Group entered into an agreement to dispose its interests in Chijet Inc. and its subsidiaries (the "Disposed Group") to an unrelated third party for a cash consideration of US$1. The disposal was completed on March 20, 2026.

The Disposed Group represented the Company's new energy vehicle business and constituted a strategic shift that had a major effect on the Company's operations and financial results, as it generated substantially all of the Company's historical revenues.

*<u>Classification Judgment</u>*

 

The classification of the Disposed Group as discontinued operations for the year ended December 31, 2025 required significant management judgment.

Under ASC 205-20 and ASC 360, a disposal group is classified as held for sale when specific criteria are met as of the reporting date, including that management is committed to a plan to sell, the asset group is available for immediate sale, and the sale is probable within one year.

As of December 31, 2025, although a binding sale agreement had not yet been executed and formal board approval was obtained subsequent to year-end, management evaluated all available evidence to determine whether the held-for-sale criteria were met.

In making this determination, management considered:

- strategic decisions made during 2025 to exit the electric vehicle business;

- active efforts undertaken during the year to identify potential buyers and pursue disposal alternatives;

- the financial condition and operational challenges of the business; and

- ongoing enforcement and asset disposal actions affecting key assets within the disposal group.

While certain assets were subject to court-ordered enforcement proceedings prior to year-end, these actions were considered together with broader strategic actions and management's commitment to exit the business.

Subsequent to year end, the Company entered into a binding agreement to dispose of the business, and the transaction was completed in March 2026. In accordance with ASC 855, these subsequent events were considered as additional evidence supporting management's assessment of conditions that existed as of the reporting date. Based on the totality of evidence available as of December 31, 2025, management concluded that the Disposed Group met the criteria for classification as held for sale and discontinued operations.

Accordingly, in accordance with ASC 205-20, the Disposed Group has been classified as discontinued operations. The assets and liabilities of the Disposed Group have been presented as assets and liabilities of discontinued operations in the consolidated balance sheets as of December 31, 2025 and 2024, and the results of operations have been reported separately in the consolidated statements of operations for all periods presented.

*<u>Measurement Uncertainty</u>*

Management also exercised judgment in measuring the Disposed Group at the lower of carrying amount and fair value less costs to sell.

As of December 31, 2025:

● the determination of fair value less costs to sell involves estimation uncertainty;

● certain assets are subject to distressed market conditions; and

● the measurement of liabilities involves judgment, particularly in light of ongoing enforcement and settlement processes.

Management believes that the amounts recognized represent its best estimate based on information available at the reporting date. The Company expects to recognize a significant loss upon disposal in 2026, representing the difference between the carrying amount of the Disposed Group and the nominal consideration received of US$1.

*<u>Sensitivity to Judgment</u>*

If management had concluded that the held-for-sale criteria were not met as of December 31, 2025:

● the business would have been presented as continuing operations; and

● the timing and measurement of impairment and disposal-related impacts may have differed.

Given the significance of the Disposed Group, changes in these judgments could have a material impact on the Company's financial position and results of operations.

The results of discontinued operations for the years ended December 31, 2025, 2024 and 2023 consisted of:

SCHEDULE OF DISCONTINUED OPERATIONS OF INCOME STATEMENT

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Revenues | $1445 | $6915 | $9483 |
| Less: Cost of revenues | (13988) | (31741) | (42246) |
| Gross loss | (12543) | (24826) | (32763) |
| Total operating expenses | 108762 | 30029 | 52369 |
| Loss from discontinued operations | (121305) | (54855) | (85132) |
| Total other income, net | 20568 | (11725) | (9776) |
| Loss from discontinued operation before income taxes | (100737) | (66580) | (94908) |
| Income tax expenses from operations | - | - | - |
| Net loss from discontinued operations | $(100737) | $(66580) | $(94908) |

---

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Assets and liabilities of discontinued operations as of December 31, 2025 and 2024 consisted of:

SCHEDULE OF ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS

---

| | | |
|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2024** |
|  | **US$'000** | **US$'000** |
| Cash and cash equivalents | $799 | $2025 |
| Restricted cash | 139 | 64 |
| Accounts and notes receivable, net | 584 | 157 |
| Accounts and notes receivable from related parties, net | 92 | 114 |
| Inventory, net | 4713 | 11145 |
| Amounts due from related parties | 32087 | 38665 |
| Other current assets | 49511 | 7337 |
| Other current assets from related parties | 34 | 764 |
| Current assets held for sale | 34821 | 466 |
| Property, plant and equipment, net | 120843 | 155818 |
| Intangible assets, net | 129323 | 123903 |
| Land-use-right, net | 78365 | 119636 |
| Long-term investments | 3483 | 3248 |
| Goodwill | 2736 | 2621 |
| Other assets | 3249 | 2936 |
| **Total assets of discontinued operations** | 460779 | 468899 |
| Accounts and notes payable | 18661 | 14382 |
| Accounts and notes payable to related parties | 45304 | 45410 |
| Loans attributable to related parties | 277302 | 268425 |
| Contract liabilities | 2473 | 2804 |
| Contract liabilities to related parties | 922 | 961 |
| Long-term payables, current | 99326 | 95160 |
| Accruals and other current liabilities | 83835 | 50196 |
| Accruals and other current liabilities to related parties | 113081 | 92298 |
| Current liabilities held for sale |  | 552 |
| Accrued post-employment and termination benefits | 64366 | 37434 |
| Other liabilities | 3832 | 5528 |
| **Total liabilities of discontinued operations** | 709102 | 613150 |
| Total net assets | $(248323) | $(144251) |

---

Net cash flows attributable to discontinued operations were as follows:

SCHEDULE OF CASH FLOW ATTRIBUTABLE TO DISCONTINUED OPERATIONS

---

| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** | **2023** |
|  | **US$'000** | **US$'000** | **US$'000** |
| Net cash used in operating activities | $(45960) | $(22783) | $(39808) |
| Net cash provided by (used in) investing activities | 17321 | (1058) | (1762) |
| Net cash (used in) provided by financing activities | (8384) | 10818 | 4875 |
| Net decrease in cash and cash equivalents | $(37023) | $(13023) | $(36695) |

---

**6. Cryptocurrencies**

The following table presents the Company's significant digital assets holdings as of December 31, 2025:

**** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Quantity** | **Cost Basis** | **Fair Value** |
|  | | **US$'000** | **US$'000** |
| EDGEAI tokens ("EDGEAI") | 157453325 | $318633 | $401963 |
| Total digital assets held as of December 31, 2025 | 157453325 | $318633 | $401963 |

---

The following table presents a roll-forward of Bitcoin ("BTC") for the year ended December 31, 2025:

SCHEDULE OF ROLL FORWARD OF BITCOIN

---

| | |
|:---|:---|
|  | **December 31, 2025** |
|  | **US$'000** |
| Balance on January 1, 2025 | $- |
| &nbsp;&nbsp;&nbsp;Additions: |  |
| &nbsp;&nbsp;&nbsp;Issuance of Class A Ordinary Shares for BTC <sup>[1]</sup> | 20000 |
| &nbsp;&nbsp;&nbsp;Deductions: |  |
| &nbsp;&nbsp;&nbsp;Exchange of BTC for EDGEAI acquisition <sup>[2]</sup> | (15732) |
| &nbsp;&nbsp;&nbsp;Realized loss on sale/exchange of BTC <sup>[2]</sup> | (4268) |
| Balance on December 31, 2025 | $- |

---

---

| | |
|:---|:---|
| [1] | On October 6, 2025, the Company announced the completion of a private placement with certain non-U.S. institutional investors. The Company issued Class A ordinary shares, and the investors paid with BTC, with an aggregate value of US$20 million. |

---

---

| | |
|:---|:---|
| [2] | In November 2025, the Company used BTC to pay a portion of the consideration for the purchase of EDGEAI under an agreement signed on October 27, 2025. The fair value of BTC was lower than its carrying amount, resulting in a loss on disposal of approximately US$4.3 million, which was recognized in the consolidated statements of operations. |

---

The following table presents a roll-forward of EDGEAI for the year ended December 31, 2025:

SCHEDULE OF ROLL FORWARD OF EDGEAI

---

| | |
|:---|:---|
|  | **December 31, 2025** |
|  | **US$'000** |
| Balance on January 1, 2025 | $**-** |
| &nbsp;&nbsp;&nbsp;Additions: |  |
| &nbsp;&nbsp;&nbsp;Acquisition of EDGEAI with BTC | 318633 |
| &nbsp;&nbsp;&nbsp;Gain on fair value changes of cryptocurrencies <sup>[3]</sup> | 83330 |
| Balance on December 31, 2025 | $401963 |

---

---

| | |
|:---|:---|
| [3] | Cryptocurrencies (consisting solely of EDGEAI on December 31, 2025) are measured at fair value at the reporting date. EDGEAI are native tokens operating on the EDGEAI Mainnet. The fair value of EDGEAI is determined using the quoted closing median price of the cryptocurrency on the Company's principal market as of December 31, 2025, adjusted for a lack of marketability discount, which is a significant unobservable input estimated based on historical transaction data. Accordingly, this fair value measurement is classified as Level 3 under the fair value hierarchy. Changes in fair value between reporting dates are recognized immediately in the consolidated statements of operations within "Other income (expenses) – Gain on fair value changes of cryptocurrencies." |

---

***Custody and risks***

 ****

Cryptocurrencies are held in digital wallets and are subject to risks related to loss, theft, or unauthorized access, including risks arising from the loss of private keys or vulnerabilities in custody arrangements.

In addition, cryptocurrency markets are highly volatile and may be subject to significant price fluctuations. The Company's valuation is therefore sensitive to changes in market prices, liquidity conditions, and the application of valuation adjustments such as the lack of marketability discount.

***Concentration***

 ****

As of December 31, 2025, the Company's cryptocurrency holdings consist entirely of EDGEAI tokens, resulting in concentration risk in a single digital asset.

**7. ORDINARY SHARES AND STATUTORY RESERVE**

***(a) Ordinary Shares & Restricted Shares***

(i) Ordinary Shares

In January and February 2025, the Company had issued 1,399 and 1,757 Class A Ordinary Shares, par value US$3.6 per share, in connection with the Private Placement and the cashless exercise of the accompanying warrants. The gross proceeds to the Company from the Private Placement, amounting to approximately US$2.82 million, or US$2.51 million after deducting estimated offering expenses.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

On March 15, 2025, the Company had issued 19,380 Class A Ordinary Shares to purchase the equity interest in Too Express. Then, 19,380 shares of the Company were forfeited, retired and cancelled as of August 1, 2025. This event is discussed in Notes 2(i). As a result, no shares remained outstanding in connection with this transaction as of December 31, 2025.

In March 2025, the Company had cancelled 1,354 Class A Ordinary Shares and issued 1,334 Class B Ordinary Shares that are discussed in Notes 1(b).

On September 4, 2025, the Company issued 11,300 Class A Ordinary Shares in a private placement, raising approximately $8 million. In connection with the offering, the Company also issued ordinary warrants and placement agent warrants to purchase Class A Ordinary Shares. During the month, both the ordinary warrants and the placement agent warrants were fully exercised. Upon exercise of the ordinary warrants, 44,984 Class A Ordinary Shares were issued.

On October 2, 2025, the Company issued 13,333 Class A Ordinary Shares in a private placement, raising approximately $15 million. Concurrently, the Company also issued pre-funded warrants to purchase Class A Ordinary Shares. All pre-funded warrants were fully exercised by October 6, 2025, resulting in the issuance of 70,000 Class A Ordinary Shares.

On November 25, 2025, the Company issued 109,321 Class A Ordinary Shares in a private placement, raising approximately $11 million. Concurrently, the Company also issued 7,149,675 pre-funded warrants to purchase Class A Ordinary Shares. As of December 31, 2025, 4,320,107 of such warrants had been exercised, resulting in the issuance of 360,009 Class A Ordinary Shares. The remaining 2,829,568 pre-funded warrants were outstanding as of year-end.

(ii) Restricted Shares

On October 6, 2025, the Company completed a private placement of units, issuing 111,111 Class A Ordinary Shares, which were subscribed by investors with BTC as consideration at a fair value of approximately $20 million. The shares are restricted and may not be resold to U.S. persons or within the United States within six months following the closing date, except pursuant to an effective registration statement or an applicable exemption.

On November 26, 2025, the company raised $300 million through a private placement of units, each consisting of one restricted ordinary share and three warrants, with 18,832,021 Class A shares issued. As of December 31, 2025, the warrants remained unexercised. The shares are restricted and may not be resold to U.S. persons or within the United States within six months following the closing date, except pursuant to an effective registration statement or an applicable exemption.

As of December 31, 2025, the Company issued a total of 18,943,132 shares of restricted Class A Ordinary Shares.

(iii) Summary

As of December 31, 2025 and 2024, Digital Currency X had issued 19,560,823 and 4,560 Class A ordinary shares, of which outstanding Class A ordinary shares of 19,560,821 and 4,558, respectively. Included in the issued Class A ordinary shares as of December 31, 2025 were 18,943,132 restricted shares. Digital Currency X had 1,334 and nil issued and outstanding Class B ordinary shares as of December 31, 2025 and 2024. Share data as of December 31, 2025 and December 31, 2024 have been retroactively restated to give effect to: i) the 1-for-30 share consolidation on June 28, 2024, ii) the 100-for-1 share consolidation effective November 3, 2025, and iii) the 12-for-1 share consolidation effective January 22, 2026. Additionally, the reclassification of ordinary shares on June 28, 2024, has been reflected. These events are discussed in Notes 1(b) and 1(c).

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***(b) Outstanding Warrants***

The summary of warrant activity is as follows giving retroactive effect to all reverse share splits:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Warrants**<br> **Outstanding**<br> **Number** | **Exercisable**<br> **Shares**<br> **Number** | **Weighted**<br> **average unit**<br> **price** | **Average**<br> **Remaining**<br> **Contractual Life** |
| Balance of warrants - December 31, 2024 | 150 | 150 | $99787 | 2.1 |
| Granted/Acquired<sup>[1]</sup> | 1615418 | 1615418 | $641 | 3 |
| Adjustment on down round feature<sup>[2]</sup> | 33119 | 33119 | $- |  |
| Forfeited | (150) | (150) | $(99787) |  |
| Exercised | (479190) | 476750 | $- |  |
| Balance of warrants – December 31, 2025 | 1169347 | 1169347 | $874 | 2.8 |

---

[1] In accordance with ASC 815-40, these warrants are classified as equity instruments as their terms meet the "fixed-for-fixed" criterion.

---

| | |
|:---|:---|
| [2] | The warrants issued on September 4, 2025 contain an exercise price reset mechanism that provides for an adjustment to the number of exercisable shares when the exercise price is reduced, such that the aggregate exercise price remains unchanged. During the year ended December 31, 2025, this reset mechanism was triggered, resulting in an adjustment of the exercise price to $0.413 and $0.295 per share, respectively, and a corresponding increase in the number of exercisable shares. In accordance with ASC 260-10-55-13 and ASC 480-10-55-12, this economic benefit was treated as a deemed dividend, recognized as a reclassification between retained earnings and additional paid-in capital, with no impact on net income for the period. The deemed dividend reduces income available to ordinary shareholders in the EPS calculation. During the year ended December 31, 2025, all warrants subject to the reset feature were exercised. |

---

Due to the cashless (net share) exercise feature, the number of shares issued upon exercise is lower than the number of warrants exercised, as only the intrinsic value of the warrants is settled in shares. All share and per share amounts have been retrospectively adjusted to reflect the share consolidations and reverse recapitalization. These warrants are not subsequently remeasured as they are classified within equity.

***(c) Treasury Shares***

Chijet Inc. entered into unsecured promissory notes ("Promissory Notes") in the principal amount of US$1.38 million and US$1.18 million with JWAC on December 5, 2022 and March 6, 2023, respectively. The Promissory Notes were non-interest bearing and payable in cash upon the earlier of the closing of the Business Combination and the date of liquidation of JWAC. According to the letter signed by JWAC and Chijet Inc. on June 1, 2023, JWAC repaid US$500,000 by delivering 1.32 shares of its Class A ordinary shares ("JWAC Ordinary Shares"), par value US$0.003 per share, each share valued at the Redemption Price and US$2.06 million in cash to Chijet Inc. As a result of the Share Exchange, Chijet Inc.'s investment in JWAC was changed to the investment in Digital Currency X, Chijet Inc.'s parent company. The effect in essence is that a subsidiary, Chijet Inc., holds an investment in its parent company's (Digital Currency X) ordinary shares. According to presentation guidance in ASC 810-10-45-5, these 1,585 shares have been transferred to treasury shares of the Company.

***(d) Statutory Reserves and Restricted Net Asset***

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 PRC.

The Company is required to make appropriations to certain reserve funds, comprising the statutory surplus reserve and the discretionary surplus reserve, based on after-tax net income determined in accordance with PRC GAAP. Appropriations to the statutory surplus reserve are required to be at least 10% of the after-tax net income determined in accordance with PRC GAAP until the reserve is equal to 50% of the entity's registered capital. Appropriations to the discretionary surplus reserve are made at the discretion of the Board of Directors. The statutory reserve may be applied against prior year losses, if any, and may be used for general business expansion, production, or increase in registered capital but are not distributable as cash dividends.

For the years ended December 31, 2025 and 2024, the Company's PRC subsidiaries did not make any appropriations to their statutory reserves. As of December 31, 2025 and 2024, the accumulated balance of the statutory reserves was US$6.66 million.

In accordance with the safety production regulations, the Company's subsidiaries in China have to make appropriations as a special reserve which will only be used for the enhancement of safety production environment and improvement of facilities. As of December 31, 2025 and 2024, the accumulated balance of special reserves, which is presented as a separate component within equity, was approximately US$588,333 and US$585,240, respectively.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

Because the Company's PRC subsidiaries can only pay dividends out of distributable profits reported in accordance with PRC accounting standards, the Company's PRC subsidiaries are restricted from transferring a portion of their net assets to the Company. The restricted amounts include the paid-in capital, statutory reserves, special reserve and additional paid-in capital of the Company's PRC subsidiaries. The aggregate amount of paid-in capital and additional paid-in capital, which is the amount of net assets of the Company's PRC subsidiaries not available for distribution, were US$148.31 million, as of December 31, 2025 and 2024, respectively.

***(e) loss per share***

Basic net loss per share is computed by dividing net loss attributable to the Company's ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.

Net loss attributable to ordinary shareholders reflects net loss attributable to the Company, adjusted for the impact of deemed dividends arising from the down-round feature of warrants, which are treated as a reduction to income available to ordinary shareholders.

Diluted net loss per share is the same as basic net loss per share for all periods presented, as the inclusion of potential common shares would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share (Amounts in thousands of US$, except for number of shares and per share data):

SCHEDULE OF COMPUTATION OF BASIC AND DILUTED NET LOSS PER SHARE

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| | | | |
|:---|:---|:---|:---|
|  | **For the years ended December 31,** | **For the years ended December 31,** | **For the years ended December 31,** |
|  | **2025** | **2024** | **2023** |
| Income (loss) from continuing operations attributable to shareholders | $70663 | $(2425) | $(3593) |
| Less: Deemed dividend | 6251 | - | - |
| Income (loss) from continuing operations available to shareholders | 64412 | (2425) | (3593) |
| Income (loss) from discontinued operations, net of tax | (74277) | (44470) | (64518) |
| Net loss available to shareholders | $(9865) | $(46895) | $(68111) |
| Weighted average shares outstanding | 2337678 | 4511 | 4401 |
| Basic and diluted income (loss) per share from continuing operations | $30.23 | $(537.63) | $(816.40) |
| Basic and diluted loss per share from discontinued operations | $(31.77) | $(9859.11) | $(14659.78) |
| Basic and diluted loss per share | $(4.22) | $(10396.74) | $(15476.19) |

---

Potential common shares, including warrants and other share-based instruments, were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.

All share and per share amounts have been retrospectively adjusted to reflect the share consolidations and reverse recapitalization.

**8. INCOME TAXES**

***Enterprise income tax***

*Cayman Islands*

Under the current laws of the Cayman Islands, Digital Currency X is not subject to tax on income or capital gain. Additionally, upon payments of dividends to shareholders, no Cayman Islands withholding tax will be imposed.

*United States*

 

Under the current laws of the United States, Jupiter Wellness Acquisition Corp., incorporated in the State of Delaware, is subject to U.S. federal corporate income tax at a rate of 21% on its worldwide income. In addition, the Company may be subject to state income taxes, including in the State of Delaware, which imposes a corporate income tax rate of approximately 8.7% on taxable income allocated to the state. No withholding tax is generally imposed on dividend payments made by U.S. corporations to non-U.S. shareholders, unless certain exceptions apply under U.S. tax rules. For the year ended December 31, 2025, JWAC incurred net operating losses ("NOLs") in the United States.These losses generate deferred tax assets ("DTA") measured using the U.S. federal and state statutory tax rates.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

*Valuation Allowance for United States Deferred Tax Assets*

 

In assessing the realizability of deferred tax assets attributable to United States NOLs generated by JWAC,management considers whether it is more-likely-than-not that such assets will be realized. The ability to realize the United States NOLs is dependent solely on the generation of future taxable income by United States subsidiaries within the carryforward periods. Profits of the Parent Company in the Cayman Islands are not subject to United States income tax and cannot be used to offset United States taxable income or United States NOLs. As of December 31, 2025, the Company has recorded a full valuation allowance againstits United States DTA because management has concluded that it is more-likely-than-notthat the Company will not generate sufficient future taxable income in the United States to utilize the NOLs. This assessment is based on the Company's history of operating losses and uncertainty regarding future taxable income.

Composition of income tax benefits for the periods are as follow:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2025**<br> **US$'000** | **December 31, 2024**<br> **US$'000** | **December 31, 2023**<br> **US$'000** |
| Current income tax expenses (benefits) |  |  |  |
| Deferred income tax expenses (benefits) |  |  |  |
| Income tax expenses |  |  |  |

---

The Company did not record income tax expense for the periods presented primarily due to operating losses in jurisdictions where no tax benefit was recognized as a result of valuation allowances, as well as income generated in non-taxable jurisdictions.

The following table reconciles to the Group's effective tax rate for the years ended December 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** | **December 31,**<br>**2023** |
| United States federal statutory tax rate | 21% | 21% | 21% |
| State income taxes, net of federal benefit | -% | -% | -% |
| Foreign tax rate differences | (21)% | (21)% | (21)% |
| Change in valuation allowance on United States DTA | -% | -% | -% |

---

Significant components of deferred tax assets were as follows:

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2025** | **December 31,**<br>**2024** |
| Deferred tax assets |  |  |
| &nbsp;&nbsp;&nbsp;Net operating loss carryforward in the United States | 261 | 53 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (261) | (53) |
| Net deferred tax asset |  |  |

---

**9. RELATED PARTIES**

The principal related parties of which the Company as of December 31, 2025 are as follows:

***(a) Relationship:***

---

| | |
|:---|:---|
| **Name of Entity or Individual** | **Relationship with the Company** |
| Melissa Chen | Director |
| Simon Pang | Shareholder |
| Ying Liu | Shareholder |
| Wenbo Wang | Independent Director |
| Huimin Li | Independent Director |
| Na Wang | Independent Director |
| Wanli Wang | Independent Director |
| Jing Zhang | Independent Director |
| Jonathan Zhang | Independent Director |
| Huijie Gao | Independent Director |

---

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***(b) The following tables indicate the transactions that have been entered into with related parties:***

SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES

*Balance Sheets*

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** | **As of December 31, 2025** |
| | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** |
| | **Accounts and notes<br> receivable from related parties** | **Other<br> current<br> assets from related parties** | **Amounts<br> due from<br> related<br> parties** | **Accounts<br> and notes payable to related parties** | **Contract<br> liabilities to related parties** | **Accruals<br> and other<br> current<br> liabilities<br> to related<br> parties** | **Loans<br> attributable<br> to related<br> parties** |
| <br>**Independent Directors** | | | | | | | |
| Wang Wenbo |  |  |  |  |  | 10 |  |
| Wang Na |  |  |  |  |  | 31 |  |
| Wang Wanli |  |  |  |  |  | 10 |  |
| Zhang Jing |  |  |  |  |  | 31 |  |
| **Total** |  |  |  |  |  | 82 |  |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** | **As of December 31, 2024** |
| | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** | **US$'000** |
| | **Accounts and notes<br> receivable from related parties** | **Other<br> current<br> assets from related parties** | **Amounts<br> due from<br> related<br> parties** | **Accounts<br> and notes payable to related parties** | **Contract<br> liabilities to related parties** | **Accruals<br> and other<br> current<br> liabilities<br> to related<br> parties** | **Loans<br> attributable<br> to related<br> parties** |
| <br>**Shareholders** | | | | | | | |
| Euroamer Kaiwan Technology Company Limited |  |  |  |  |  | 1130 |  |
| Chijet Holdings Limited |  |  |  |  |  | 570 |  |
| Ying Liu |  |  |  |  |  | 13 |  |
| **<u>Independent Directors</u>** |  |  |  |  |  |  |  |
| Wang Wenbo |  |  |  |  |  | 63 |  |
| Huimin Li |  |  |  |  |  | 13 |  |
| **Total** |  |  |  |  |  | 1788 |  |

---

***(c) Compensation to independent directors***

The following table consists of the number of shares and the total amount of compensation to independent directors:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2025** | **December 31, 2025** | **December 31, 2024** | **December 31, 2024** |
|  | **Issued shares** | **Cash** | **Issued shares** | **Cash** |
|  | | **US$'000** | | **US$'000** |
| John Chiang |  | $- |  | $12.5 |
| Simon Pang |  | $- |  | $12.5 |
| Li Wen |  | $- |  | $12.5 |
| Liu Ying |  | $- |  | $50 |
| Li Huimin |  | $- |  | $37.5 |
| Wang Wenbo |  | $45 |  | $31.25 |
| Wang Wanli |  | $40.83 |  | $- |
| Zhang Jing |  | $37.5 |  | $- |
| Wang Na |  | $37.5 |  | $- |
| Jonathan Zhang |  | $10 |  | $- |
| Huijie Gao |  | $10 |  | $- |
| Total |  | $180.83 |  | $156.25 |

---

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

The Company appointed four independent directors in 2023 and offered each of the director compensation amounting to US$100,000 for one year. US$50,000 of the compensation was payable in cash and US$50,000 was payable by the issuance of the Company's ordinary shares. On March 31, 2023, the offer letter ("2023 Contract") took effect. The compensation is payable in arrears on a semi-annual basis, with the payment of US$25,000 in cash and ordinary shares of the Company valued at US$25,000. On June 1, 2023, the Company issued to each independent director 167 ordinary shares of DCX under the offer letter, with each share valued at US$300. The contract ended as of March 31, 2024 and the total US$200,000 of compensation costs were fully paid.

Three independent directors resigned following the expiration of 2023 Contract, and the remaining director renewed her contract on April 8, 2024. The Company subsequently appointed two additional independent directors on April 8, 2024, and May 14, 2024, respectively. The new contract ("2024 Contract") maintains the 2023 Contract terms. As of December 31, 2025, the Company has not yet issued shares but paid US$106,250 of compensation costs under the 2024 Contract.

On January 13, 2025, Ying Liu and Huimin Li resigned as independent directors of the Company. The Company subsequently appointed three independent directors, Wanli Wang, Na Wang, and Jing Zhang, on January 27, 2025. The terms of the 2025 Contract were updated to an annual compensation of US$30,000, payable in cash or ordinary shares. On September 10, 2025, Na Wang and Jing Zhang resigned, and the Company appointed Jonathan Zhang and Huijie Gao as independent directors. As of December 31, 2025, the Company has not yet issued any ordinary shares under the 2025 Contract. Cash compensation of US$66,438 has been paid, and an accrual has been recognized for the remaining unpaid compensation.

**10. SEGMENT INFORMATION**

The Company operates as a single reportable segment. The Chief Executive Officer, as the chief operating decision maker ("CODM"), reviews consolidated financial information to make operating decisions, allocate resources, and evaluate performance.

Following the strategic transformation and classification of the legacy automotive business as discontinued operations (see Note 5), the Company's continuing operations consist primarily of digital asset-related activities.

Segment profit or loss is measured as consolidated net income (loss), and segment assets are measured as total consolidated assets. As the Company does not distinguish between different products, services, or geographic areas in its internal reporting, no further segment information is presented.

**11. COMMITMENTS AND CONTINGENCIES**

The following commitments and contingencies all relate to the subsidiaries that were disposed of in March 2026.

***Commitments***

 ****

(a) Capital commitments

As of December 31, 2025, the Company's PRC subsidiaries had several capital commitments with a total contract amount of US$45.21 million, of which US$85,799 is due within one year. The capital commitment includes but is not limited to construction, equipment, and molds and tooling.

(b) Parts purchase commitment

During the year ended December 31, 2025, the Company's PRC subsidiaries did not enter into new trial production and development agreements.

As of December 31, 2025, the Company's PRC subsidiaries had various agreements with various suppliers for production and development. The balance of the contractual commitments was approximately US$1.12 million and US$2.27 million as of December 31, 2025 and 2024, respectively. The Company's PRC subsidiaries expects to meet the commitment. However, the fulfillment of commitment cannot be guaranteed. If the Company's PRC subsidiaries cannot fulfill the commitment before the due date, a loss must be recognized. However, the loss amount, if any, cannot be reasonably estimated as of December 31, 2025.

**DIGITAL CURRENCY X TECHNOLOGY INC. AND SUBSIDIARIES**

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**FOR THE YEARS ENDED DECEMBER 31, 2025, 2024 and 2023**

**(Amounts in thousands of US$, except for number of shares and per share data)**

***Contingencies***

Legal proceedings

As of December 31, 2025, a significant portion of the Company's PRC subsidiaries' legal proceedings relate to contractual disputes with ongoing enforcement actions, including asset seizures and bank account restrictions.

For cases with final judgments, liabilities have been recognized based on outstanding principal and accrued interest. For other pending cases, provisions are recognized only when losses are probable and reasonably estimable; otherwise, they are disclosed as contingencies.

Subsequently, in March 2026, the acquirer agreed under the SPA to assume certain liabilities of the disposed subsidiaries. As this event occurred after the reporting date and does not legally extinguish the Company's obligations as of December 31, 2025, no derecognition has been recorded. The arrangement has been considered in subsequent event evaluation and may affect the ultimate settlement of these obligations. The Company will reassess the accounting impact, including any extinguishment or modification of liabilities, in the period when the legal transfer becomes effective.

**12. SUBSEQUENT EVENTS**

Management performed an evaluation of the Company's activity through the date the financial statements were issued April 30, 2026, noting the following subsequent events:

***(a) Exercise of Warrants***

Subsequent to December 31, 2025, in January 2026, certain pre-funded warrants issued in November 2025 were exercised, resulting in the issuance of 262,806 Class A ordinary shares. The exercise of these warrants did not have a material impact on the Company's financial position as of December 31, 2025.

***(b) Execution of 1-Year Staking Agreement for EDGEAI***

 ****

The Company entered into the EDGEAI Staking Agreement (the "Staking Agreement") with EDGEAI Foundation (the "Foundation") on January 6, 2026. Pursuant to the Staking Agreement, the Company agrees to stake 157,453,325 EDGEAI to the mainnet smart contract designated by the Foundation, with a staking term of twelve months from the date of successful staking of the Tokens.

During the staking term, the EDGEAI will be locked in the smart contract, and the Company is prohibited from selling, transferring, pledging, or otherwise encumbering such Tokens. Upon maturity, the Tokens will automatically unlock and be returned to DCX's designated address, unless the Parties agree to renew the Staking Agreement in writing. In consideration for the staking, DCX will receive a floating annualized yield of 3.5%–8% in accordance with the EDGEAI Mainnet rules, with rewards distributed automatically in the form of EDGEAI by block cycle or monthly. The Foundation provides no fixed-income guarantee.

***(c) Disposal of Chijet Inc. and its subsidiaries***

 ****

On March 18, 2026, the Group entered into an agreement to dispose its interests in Chijet Inc. and its subsidiaries (the "Disposed Group") to an unrelated third party for a cash consideration of US$1. The disposal was completed on March 20, 2026. The Company expects to recognize a significant loss upon disposal in 2026, representing the difference between the carrying amount of the Disposed Group and the nominal consideration received of US$1. For further details, see Note 5 – Discontinued Operations.

## Exhibit 2.1

**Exhibit 2.1**

**DESCRIPTION OF SECURITIES**

**Authorized Share Capital**

Our authorized share capital is US$3,000,000,000.00 divided into 833,333,333.33 shares of a par value of US$3.6 each, comprising (a) 831,833,333.33 class A ordinary shares of a par value of US$3.6 each (the "Class A Ordinary Shares") and (b) 1,500,000 class B ordinary shares of a par value of US$3.6 each (the "Class B Ordinary Shares"). As of April 20, 2026, 19,823,627 Class A Ordinary Shares and 1,334 Class B Ordinary Shares were issued and outstanding.

The following is a summary of material provisions of our second amended and restated memorandum and articles of association currently in effect (the "Amended and Restated Memorandum and Articles of Association"), as well as the Companies Act (Revised) of the Cayman Islands (the "Companies Act") insofar as they relate to the material terms of our ordinary shares. Notwithstanding this, because it is a summary, it may not contain all the information that you may otherwise deem important. For more complete information, you should read the entirety of our fourth amended and restated memorandum and articles of association, which is being filed with the U.S. Securities and Exchange Commission (the "SEC") as Exhibit 2.1 to our annual report on Form 20-F for the fiscal year ended December 31, 2025.

**Ordinary Shares**

*General*

On January 10, 2025, the shareholders of the Company approved and adopted an amended and restated memorandum and articles of association, which changed the authorized issued share capital of the Company from US$30,000,000.00 divided into 10,000,000,000 shares of par value of US$0.003 each, to US$30,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.003 each, consisting of (i) 9,982,000,000 class A ordinary shares and (ii) 18,000,000 class B ordinary shares each. Each class A ordinary share is entitled to one (1) vote and each class B ordinary share is entitled to twenty (20) votes. In connection with the re-designation of our authorized capital, all of the then outstanding and issued outstanding ordinary shares were converted into class A ordinary shares on a one-for-one basis.

On September 24, 2025, the Company's shareholders voted and approved at the annual general meeting that the Company shall undertake an up to 100 for 1 share consolidation of the issued and unissued shares of the Company (the "Range"), such that (i) every up to one hundred (100) class A ordinary shares of a par value of US$0.003 each be consolidated into one (1) class A ordinary share with a par value of not more than US$0.3 each, and (ii) every up to one hundred (100) class B ordinary shares of a par value of US$0.003 each be consolidated into one (1) class B ordinary share with a par value of not more than US$0.3 each (the "Share Consolidation"), with the exact ratio to be set at a whole number within the Range to be determined by the board of directors of the Company in its sole discretion and such Share Consolidation to be further implemented and effected by the board of directors of the Company. The board of directors of the Company has further resolved to implement a one hundred (100)-for-one (1) share consolidation of its issued and unissued ordinary shares, par value US$0.3 per share.

On December 22, 2025, the Company held an extraordinary general meeting of shareholders at which our shareholders approved to increase the Company's authorized share capital from US$30,000,000.00 divided into 100,000,000 shares of a par value of US$0.3 each, comprising (a) 99,820,000 class A ordinary shares of a par value of US$0.3 each and (b) 180,000 class B ordinary shares of a par value of US$0.3 each, to US$3,000,000,000.00 divided into 10,000,000,000 shares of a par value of US$0.3 each, comprising (a) 9,982,000,000 class A ordinary shares of a par value of US$0.3 each and (b) 18,000,000 class B ordinary shares of a par value of US$0.3 each, by the creation of additional 9,882,180,000 class A ordinary shares and 17,820,000 class B ordinary shares, with immediate effect (the "Share Capital Increase"). In conjunction with this comprehensive Share Capital Increase, the shareholders granted explicit discretionary authority to the board of directors to implement one or more share consolidations of our ordinary shares over a period of up to two years from the date of the meeting. Under this authorization, the board of directors is empowered to determine the exact timing, implementation, and specific consolidation ratios at its absolute discretion, provided that the cumulative consolidation ratio across all such actions shall not exceed 3000:1, and any fractional shares resulting from such consolidations will be rounded up to the nearest whole share to facilitate administrative efficiency.

On December 24, 2025, the board implemented a share consolidation with the exact ratio as twelve (12)-for-one (1) whereby every twelve (12) class A ordinary shares of a par value of US$0.3 each be consolidated into one (1) class A ordinary share of a par value of US$3.6 of the Company and every twelve (12) class B ordinary shares of a par value of US$0.3 each be consolidated into one (1) class B ordinary share of a par value of US$3.6 of the Company.

All of our issued and outstanding ordinary shares are issued credited as fully paid and non-assessable. Our ordinary shares are issued in registered form, and are issued when registered in our register of members.

*Dividends*

The holders of our ordinary shares, are entitled to such dividends as may be declared by our board of directors, subject to Cayman Islands law, the Companies Act and the Amended and Restated Memorandum and Articles of Association. Under Cayman Islands law, a Cayman Islands company may pay a dividend either out of profit or share premium account, provided that in no circumstances may a dividend be paid if the dividend payment would result in the company being unable to pay its debts as they fall due in the ordinary course of business.

*Register of Members*

Under Cayman Islands law, we must keep a register of members and there will be entered therein:

- the names and addresses of our members, a statement of the shares held by each member, and of the amount paid or agreed to be considered as paid, on the shares of each member and the voting rights of shares of each member;

- whether voting rights are attached to the share in issue;

- the date on which the name of any person was entered on the register as a member; and

- the date on which any person ceased to be a member.

Under Cayman Islands law, the register of members of our company is prima facie evidence of the matters set out therein (i.e., the register of members will raise a presumption of fact on the matters referred to above unless rebutted) and a member registered in the register of members will be deemed as a matter of Cayman Islands law to have legal title to the shares as set against their name in the register of members. The shareholders recorded in the register of members will be deemed to have legal title to the shares set against their name. However, there are certain limited circumstances where an application may be made to a Cayman Islands court for a determination on whether the register of members reflects the correct legal position. Further, the Cayman Islands court has the power to order that the register of members maintained by a company should be rectified where it considers that the register of members does not reflect the correct legal position. If an application for an order for rectification of the register of members was made in respect of our ordinary shares, then the validity of such shares may be subject to re-examination by a Cayman Islands court.

*Voting Rights*

Each Class A Ordinary Share shall entitle the holder thereof to one vote on all matters subject to vote at general meetings of the Company, and each Class B Ordinary Share shall entitle the holder thereof to 20 votes on all matters subject to vote at general meetings of the Company. A resolution put to the vote of the meeting shall be decided on a poll. A poll shall be taken as the chairperson directs, and the result of the poll shall be deemed to be the resolution of the general meeting at which the poll was demanded.

If at any time the share capital of the Company is divided into different classes of shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued shares of that class where such variation is considered by the Directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two-thirds of the issued Shares of that class, or with the approval of a resolution passed by a majority of not less than two-thirds of the votes cast at a separate meeting of the holders of the shares of that class. For the avoidance of doubt, the directors reserve the right, notwithstanding that any such variation may not have a material adverse effect, to obtain consent from the holders of shares of the relevant class. To any such meeting all the provisions of the Amended and Restated Memorandum and Articles of Association relating to general meetings shall apply mutatis mutandis, except that the necessary quorum shall be one person holding or representing by proxy at least 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.

If a quorum is not present within half an hour from the time appointed for the meeting to commence or if during such a meeting a quorum ceases to be present, the meeting, if convened upon a members' requisition, shall be dissolved and in any other case it shall stand adjourned to the same day in the next week at the same time and/or place or to such other day, time and/or 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 to commence, the members present shall be a quorum.

Although not required by the Companies Act or the Amended and Restated Memorandum and Articles of Association, we expect to hold general meetings annually and such meetings may be convened by our board of directors on its own initiative or upon a request to the directors by shareholders holding in aggregate at least 1/3 in par value of our issued shares that carry the right to vote at general meetings. If there are no directors as at the date of the deposit of the shareholders' requisition or if the directors do not within 21 days from the date of the deposit of the Shareholders' requisition duly proceed to convene a general meeting to be held within a further 21 days, the requisitionists, or any of them representing more than one-half of the total voting rights of all of the requisitionists, may themselves convene a general meeting, but any meeting so convened shall be held no later than the day which falls three months after the expiration of the said 21 day period. Advance notice of at least 10 days is required for the convening of our annual general meeting and other general meetings.

An ordinary resolution to be passed by the shareholders requires the affirmative vote of a simple majority of the votes attaching to the ordinary shares cast by those shareholders entitled to vote who are present in person or by proxy in a general meeting, while a special resolution requires the affirmative vote of no less than two-thirds of the votes attaching to the ordinary shares cast by those shareholders entitled to vote who are present in person or by proxy in a general meeting. Both ordinary resolutions and special resolutions may also be passed by a unanimous written resolution signed by all the shareholders of our company, as permitted by the Companies Act and the Amended and Restated Memorandum and Articles of Association. A special resolution will be required for important matters such as change of name or making further changes to the memorandum and articles of association of our company.

*Transmission of ordinary shares*

If a member dies the survivor or survivors (where they were a joint holder) or their legal personal representatives (where they were a sole holder), shall be the only persons recognized by the Company as having any title to the deceased member's shares. The estate of a deceased member is not thereby released from any liability in respect of any share, for which the member was a joint or sole holder.

Any person becoming entitled to a share in consequence of the death or bankruptcy or liquidation or dissolution of a Member (or in any other way than by transfer) may, upon such evidence being produced as may be required by the Directors, elect, by a notice in writing sent by that person to the Company, either to become the holder of such share or to have some person nominated by them registered as the holder of such share. If they elect to have another person registered as the holder of such share they shall sign an instrument of transfer of that share to that person. 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 their death or bankruptcy or liquidation or dissolution, as the case may be.

A person becoming entitled to a share by reason of the death or bankruptcy or liquidation or dissolution of a member (or in any other case than by transfer) shall be entitled to the same dividends, other distributions and other advantages to which they would be entitled if they were the holder of such share. However, they shall not, before becoming a member in respect of a share, be entitled in respect of it to exercise any right conferred by membership in relation to general meetings of the Company and the directors may at any time give notice requiring any such person to elect either to be registered or to have some person nominated by them registered as 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 their death or bankruptcy or liquidation or dissolution or any other case than by transfer, as the case may be). If the notice is not complied with within 90 days of being received or deemed to be received (as determined pursuant to the Amended and Restated Memorandum and Articles of Association) the directors may thereafter withhold payment of all dividends, other distributions, bonuses or other monies payable in respect of the share until the requirements of the notice have been complied with.

*Liquidation*

If the Company shall be wound up, the liquidator shall apply the assets of the Company in satisfaction of creditors' claims in such manner and order as such liquidator thinks fit. Subject to the rights attaching to any shares, in a winding up: (a) if the assets available for distribution amongst the members shall be insufficient to repay the whole of the Company's issued 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; or (b) if the assets available for distribution amongst the members shall be more than sufficient to repay the whole of the Company's issued 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.

*Calls on ordinary shares and Forfeiture of Ordinary Shares*

Subject to the terms of the allotment and issue of any shares, the directors may make calls upon the members in respect of any monies unpaid on their shares (whether in respect of par value or premium), and each member shall (subject to receiving at least 14 clear days' notice specifying the time or times of payment) pay to the Company at the time or times so specified the amount called on the shares. If a call or instalment of a call remains unpaid after it has become due and payable the directors may give to the person from whom it is due not less than 14 clear days' notice requiring payment of the amount unpaid together with any interest which may have accrued and any expenses incurred by the Company by reason of such non-payment. The notice shall specify where payment is to be made and shall state that if the notice is not complied with the shares in respect of which the call was made will be liable to be forfeited.

*Redemption, Repurchase and Surrender of Ordinary Shares*

Subject to the provisions of the Companies Act, and, where applicable, the rules and regulations of the Nasdaq, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under applicable law, the Company may issue shares that are to be redeemed or are liable to be redeemed at the option of the member or the Company. The redemption of such shares shall be effected in such manner and upon such other terms as may be determined by the directors before the issue of the shares. We may also our own shares (including any redeemable shares) in such manner and on such other terms as the directors may agree with the relevant member. Under the Companies Act, the redemption or repurchase of any share may be paid out of our profits or out of the proceeds of a fresh issue of shares made for the purpose of such redemption or repurchase, or out of capital (including share premium account and capital redemption reserve) if we can, immediately following such payment, pay its debts as they fall due in the ordinary course of business. In addition, under the Companies Act no such share may be redeemed or repurchased (a) unless it is fully paid up, (b) if such redemption or repurchase would result in there being no shares outstanding, or (c) if the company has commenced liquidation. In addition, we may accept the surrender of any fully paid share for no consideration.

*Variations of Rights of Shares*

If at any time the share capital of the Company is divided into different classes of shares, all or any of the rights attached to any class (unless otherwise provided by the terms of issue of the shares of that class) may, whether or not the Company is being wound up, be varied without the consent of the holders of the issued shares of that class where such variation is considered by the directors not to have a material adverse effect upon such rights; otherwise, any such variation shall be made only with the consent in writing of the holders of not less than two-thirds of the issued shares of that class, or with the approval of a resolution passed by a majority of not less than two-thirds of the votes cast at a separate meeting of the holders of the shares of that class.

*Inspection of Books and Records*

Shareholders of Cayman Islands exempted companies like us have no general rights under Cayman Islands law to inspect corporate records (save for the memorandum and articles of association, register of mortgages and charges, and the special resolutions passed by shareholders) or to obtain copies of the register of members of these companies. Under Cayman Islands law, the names of current directors of our Company can be obtained from a search conducted at the Registrar of Companies in the Cayman Islands. See "*Where You Can Find Additional Information*."

*Changes in Capital*

We may from time to time by ordinary resolution:

● increase its share capital by such sum as the ordinary resolution shall prescribe and with such rights, priorities and privileges annexed thereto, as the Company in general meeting may determine;

● consolidate and divide all or any of its share capital into shares of a larger amount than its existing shares;

● convert all or any of its paid up shares into stock and reconvert that stock into paid up shares of any denomination;

● by subdivision of its existing shares or any of them divide the whole or any part of its share capital into shares of smaller amount than is fixed by the Amended and Restated Memorandum and Articles of Association or into shares without par value; and

● cancel any shares which, at the date of the passing of the ordinary resolution, have not been taken or agreed to be taken by any person and diminish the amount of its share capital by the amount of the shares so cancelled.

We may by special resolution reduce its share capital and any capital redemption reserve in any manner authorized by law.

**Preferred Shares**

Subject to the provisions, if any, in the Amended and Restated Memorandum and Articles of Association (and to any direction that may be given by the Company in general meeting) and, where applicable, the rules and regulations of the Nasdaq, the Securities and Exchange Commission and/or any other competent regulatory authority or otherwise under applicable law, and without prejudice to any rights attached to any existing shares, the directors may allot, issue, grant options over or otherwise dispose of shares (including fractions of a share) with or without preferred, deferred or other rights or restrictions, whether in regard to dividend or other distribution, voting, return of capital or otherwise and to such persons, at such times and on such other terms as they think proper, and may also (subject to the Companies Act and the Amended and Restated Memorandum and Articles of Association) vary such right.

**Exempted Company**

We are an exempted company with limited liability under the Companies Act. The Companies Act distinguishes between ordinary resident companies and exempted companies. Any company that is registered in the Cayman Islands but conducts business mainly outside of the Cayman Islands may apply to be registered as an exempted company. The requirements for an exempted company are essentially the same as for an ordinary company except for the exemptions and privileges listed below:

● an exempted company does not have to file an annual return of its shareholders with the Registrar of Companies;

● an exempted company's register of members is not open to inspection;

● an exempted company does not have to hold an annual general meeting;

● an exempted company may issue shares with no par value;

● an exempted company may obtain an undertaking against the imposition of any future taxation (such undertakings are usually given for 20 years in the first instance);

● an exempted company may register by way of continuation in another jurisdiction and be deregistered in the Cayman Islands;

● an exempted company may register as a limited duration company; and

● an exempted company 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 the 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).

**Anti-Takeover Provisions**

Some provisions of our Amended and Restated Memorandum and Articles of Association may discourage, delay, or prevent a change in control of our company or management that shareholders may consider favorable, including provisions that authorize our board of directors to issue shares at such times and on such terms and conditions as the board of directors may decide without any further vote or action by our shareholders.

Under the Companies Act, our directors may only exercise the rights and powers granted to them under our Amended and Restated Memorandum and Articles of Association for what they believe in good faith to be in the best interests of our company and for a proper purpose.

**Representative Warrant**

Upon the closing of the JWAC IPO, JWAC issued to I-Bankers a five-year warrant to purchase shares of JWAC Common Stock, equal to 3.0% of the shares issued in the JWAC IPO ("Representative Warrants"). The exercise price of Representative Warrants is $12.00 per share. The Representative Warrants shall be exercisable, in whole 414,000 or in part, for cash or on a cashless basis, commencing the later of December 9, 2022, and the Closing of the Business Combination and terminating on December 9, 2026.

The Representative Warrants grant to its holders demand and "piggy-back" registration rights for periods of five and seven years from December 9, 2021. JWAC will bear all fees and expenses attendant to registering the securities, other than underwriting commissions which will be paid for by the holders themselves. The exercise price and number of shares issuable upon exercise of the Representative Warrants may be adjusted in certain circumstances including in the event of a stock dividend, or JWAC's recapitalization, reorganization, merger, or consolidation.

At the Closing of the Business Combination, all of the Representative Warrants have been exchanged for a substantially similar warrant to purchase an equal number of our Class A Ordinary Shares on the same terms and conditions as the original warrant.

**GT Warrant**

At the Closing of the Business Combination, all of GT Warrants have been exchanged for a substantially similar warrant to purchase an equal number of our Class A Ordinary Shares on the same terms and conditions as the original warrant, exercisable at $2.00 per share for five years.

## Exhibit 8.1

**Exhibit 8.1**

List of Subsidiaries of Digital Currency X Technology Inc.

---

| | |
|:---|:---|
| **Subsidiaries** | **Place of incorporation** |
| NexFi Inc. | Wyoming, US |
| Jupiter Wellness Acquisition Corp. | Delaware, US |

---

## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER<br> PURSUANT TO EXCHANGE ACT RULE 13A-14(A)/15D-14(A) AS ADOPTED PURSUANT TO SECTION 302<br> OF THE SARBANES-OXLEY ACT OF 2002**

I, Melissa Chen, certify that:

1. I have reviewed this annual
 report on Form 20-F of Digital Currency X Technology Inc.;

2. Based on my knowledge,
 this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements
 made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this
 report;

3. Based on my knowledge,
 the financial statements, and other financial information included in this report, fairly present in all material respects the financial
 condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's
 other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
 Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)
 and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure
 controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
 information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
 particularly during the period in which this report is being prepared;

(b) Designed such internal
 control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision,
 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for
 external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness
 of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness
 of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report
 any change in the registrant's internal control over financial reporting that occurred during the period covered by the annual
 report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial
 reporting; and

5. The registrant's
 other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
 to the registrant's auditors and the audit committee of the registrant's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies
 and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
 affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not
 material, that involves management or other employees who have a significant role in the registrant's internal control over
 financial reporting.

---

| | |
|:---|:---|
| Date: April 30, 2026 |  |
|  | */s/ Melissa Chen* |
|  | Melissa Chen |
|  | Chief Executive Officer |
|  | (Principal Executive Officer) |

---

## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO EXCHANGE ACT RULE 13A-14(A)/15D-14(A) AS ADOPTED PURSUANT TO SECTION 302**

**OF THE SARBANES-OXLEY ACT OF 2002**

I, Dongchun Fan, certify that:

1. I
 have reviewed this annual report on Form 20-F of Digital Currency X Technology Inc.;

2. Based
 on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
 to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to
 the period covered by this report;

3. Based
 on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material
 respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in
 this report;

4. The
 registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures
 (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange
 Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed
 such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
 to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others
 within those entities, particularly during the period in which this report is being prepared;

(b) Designed
 such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
 supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
 for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated
 the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about
 the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation;
 and

(d) Disclosed
 in this report any change in the registrant's internal control over financial reporting that occurred during the period covered
 by the annual report that has materially affected, or is reasonably likely to materially affect, the registrant's internal
 control over financial reporting; and

5. The
 registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial
 reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
 reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
 and

(b) Any
 fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
 internal control over financial reporting.

---

| | |
|:---|:---|
| Date: April 30, 2026 |  |
|  | */s/ Dongchun Fan* |
|  | Dongchun Fan |
|  | Chief Financial Officer |
|  | (Principal Accounting Officer) |

---

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER<br> PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906<br> OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Digital Currency X Technology Inc.(the "Registrant") on Form 20-F for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned certifies pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: April 30, 2026

---

| |
|:---|
| */s/ Melissa Chen* |
| Melissa Chen |
| Chief Executive Officer |
| (Principal Executive Officer) |

---

## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906**

**OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report of Digital Currency X Technology Inc. (the "Registrant") on Form 20-F for the year ended December 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned certifies pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report, fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| Date: April 30, 2026 |  |
|  | */s/ Dongchun Fan* |
|  | Dongchun Fan |
|  | Chief Financial Officer |
|  | (Principal Accounting Officer) |

---

## Exhibit 15.1

**Exhibit 15.1**

---

| | |
|:---|:---|
| ![](ex15_001.jpg) | **Assentsure PAC**<br> **UEN – 201816648N**<br> 180B Bencoolen Street #03-01<br> The Bencoolen Singapore 189648<br> http://www.assentsure.com.sg<br>|

---

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the incorporation by reference in the Registration Statement on Form F-3 (file no. 333-281314) of our report dated April 30, 2026, with respect to the consolidated financial statements of Digital Currency X Technology Inc. and its subsidiaries (formerly known as Chijet Motor Company, Inc.) , appearing in this Annual Report on Form 20-F for the year ended December 31, 2025.

/s/ Assentsure PAC

Singapore

April 30, 2026

## Exhibit 15.2

**Exhibit 15.2**

---

| | |
|:---|:---|
| ![](ex15-2_001.jpg) | ![](ex15-2_003.jpg) |

---

April 30, 2026

**Digital Currency X Technology Inc.**

Room 1101, 11/F., Capital Centre, 151 Gloucester Road,

Wanchai, Hong Kong

**Re: Consent of People's Republic of China Counsel**

Dear Sirs,

We consent to the reference to our firm under the headings "Item 3. Key Information – 3.D. Risk Factors - Risks Related to Doing Business in China - Increases in labor costs and enforcement of stricter labor laws and regulations in China may adversely affect our business and our financial condition.", "Item 4. Information on the Company - 4B. Business Overview - Regulations", "Item 10. Additional Information - 10.D. Exchange Controls - The PRC" and "Item 10. Additional Information - 10.E. Taxation - People's Republic of China Taxation" in the annual report of Digital Currency X Technology Inc. on Form 20-F for the year ended December 31, 2025 (the "**Annual Report**"), which is filed with the U.S. Securities and Exchange Commission on the date hereof. We also consent to the filing of this consent letter with the U.S. Securities and Exchange Commission as an exhibit to the Annual Report.

In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.

Very truly yours,

---

| |
|:---|
| */s/ King & Wood* |
| **King & Wood** |

---

## Exhibit 15.3

**Exhibit 15.3**

---

| | |
|:---|:---|
| ![](ex15-3_001.jpg) | Harney Westwood & Riegels<br> 14th Floor, Alexandra House<br> 18 Chater Road<br> Central<br> Hong Kong<br> Tel: +852 5806 7800<br> Fax: +852 5806 7810 |

---

April 30, 2026

068089.0006 Digital Currency X Technology Inc.

Room 1101, 11/F., Capital Centre, 151 Gloucester Road,

Wanchai, Hong Kong

Dear Sir or Madam

**Digital Currency X Technology Inc.** (the ***Company***) – Annual Report on Form 20-F

We are attorneys-at-law qualified to practice in the Cayman Islands and have acted as Cayman Islands legal advisers to the Company in connection with the filing by the Company with the United States Securities and Exchange Commission (the ***SEC***) of an annual report on Form 20-F for the year ended 31 December 2025 (the ***Form 20-F***).

We consent to the filing with the SEC of this consent letter as an exhibit to the Company's annual report on Form 20-F. In giving such consent, we do not thereby admit that we come within the category of persons whose consent is required under Section 7 of the Securities Act of 1933, or under the Securities Exchange Act of 1934, in each case, as amended, or the regulations promulgated thereunder.

---

| |
|:---|
| Yours faithfully |
| */s/ Harney Westwood & Riegels* |
| **Harney Westwood & Riegels** |

---

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| | |
|:---|:---|
| The British Virgin Islands is Harneys Hong Kong office's main jurisdiction of practice.<br> Jersey legal services are provided through a referral arrangement with Harneys (Jersey) which is an independently owned and controlled Jersey law firm.<br> Resident Partners: M Chu \| Y Fan \| SG Gray \| IC Groark \| SO Karolczuk \| PM Kay \| MW Kwok<br> WPT Lee \| IN Mann \| BP McCosker \| R Ng \| PJ Sephton | <br> Anguilla \| Bermuda \| British Virgin Islands<br> Cayman Islands \| Cyprus \| Dubai \| Hong Kong \| Jersey<br> London \| Luxembourg \| Shanghai \| Singapore<br> harneys.com |

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