On November 29, 2024, the subsidiary company of Zhejiang Hu Hang Ning signed two important contracts with the Institute of Digital Economy and other partners. The first contract involves road infrastructure improvement, aiming to upgrade the infrastructure of highways, with a total service fee of RMB 20,306,867. The second contract is for the construction of distributed photovoltaic power stations, with an expected service fee of RMB 23,392,880. These contracts are related-party transactions because the Institute of Digital Economy is a subsidiary of Transportation Group, a major shareholder. According to listing rules, these transactions need to be combined to calculate the relevant percentage rates. As the applicable percentage rates exceed 0.1% but are less than 5%, compliance with reporting and disclosure requirements is needed, but exempted...Show More

On November 29, 2024, the subsidiary company of Zhejiang Hu Hang Ning signed two important contracts with the Institute of Digital Economy and other partners. The first contract involves road infrastructure improvement, aiming to upgrade the infrastructure of highways, with a total service fee of RMB 20,306,867. The second contract is for the construction of distributed photovoltaic power stations, with an expected service fee of RMB 23,392,880. These contracts are related-party transactions because the Institute of Digital Economy is a subsidiary of Transportation Group, a major shareholder. According to listing rules, these transactions need to be combined to calculate the relevant percentage rates. As the applicable percentage rates exceed 0.1% but are less than 5%, compliance with reporting and disclosure requirements is needed, but exempted from independent shareholder approval. The road infrastructure improvement project includes the construction of recovery stations and congestion management at toll stations, with a service period of 3 months and a liability period of 24 months. The photovoltaic power station project focuses on green energy self-sufficiency, aiming to improve energy efficiency and reduce emissions. The signing of these contracts is in line with the daily business processes of Zhejiang Hu Hang Ning, established under general commercial terms that are fair and reasonable, and align with the overall interests of the company and shareholders. As a non-wholly-owned subsidiary, Zhoushan Company will be responsible for the construction of the photovoltaic power station and will pay the service fee upon completion and acceptance.