Common use of Financial Independence Clause in Contracts

Financial Independence. During the Track Record Period and up to the Latest Practicable Date, we have established our own finance department with a team of financial staff, who are responsible for financial control, accounting, reporting, group credit and internal control functions of our Company, independent from our Single Largest Shareholders Group. We can make financial decisions independently and our Single Largest Shareholders Group do not intervene with our use of funds. We have also established an independent audit system, a standardized financial and accounting system and a complete financial management system. During the Track Record Period and up to the Latest Practicable Date, we entered into various facility agreements and loan agreements with certain banks (“Lending Banks”), pursuant to which we obtained loans from the Lending Banks which were secured by personal guarantees provided by some of our members of the Single Largest Shareholders Group and/or their spouses, namely ▇▇. ▇▇▇▇, ▇▇. ▇▇ (the spouse of ▇▇. ▇▇▇▇), Mr. ▇▇▇ and his spouse. These loans were generally used for supplementing the working capital of the Group, payment of procurement costs and/or other financial needs in the ordinary and usual course of our business operation. As of the Latest Practicable Date, (i) the guarantees provided by the members of our Single Largest Shareholders Group and/or their spouses with respect to credit facilities in the aggregate amount of approximately RMB300.0 million granted by the relevant Lending Banks will be released prior to the [REDACTED] as agreed by the relevant banks; and (ii) the remaining loans in the aggregate amount of approximately RMB38.0 million secured by the guarantees provided by the members of our Single Largest Shareholders Group and/or their spouses will be fully repaid prior to the [REDACTED]. In addition, we had been capable of obtaining financing from third parties without relying on any guarantee or security provided by the members of our Single Largest Shareholders Group or their respective associates. Based on the above, our Directors are of the view that we will be able to maintain financial independence from our Single Largest Shareholders Group and its close associates after the [REDACTED]. Our Directors recognize the importance of good corporate governance in protecting our Shareholders’ interests. We have adopted the following measures to safeguard good corporate governance standards and to avoid potential conflict of interests between our Group and our Single Largest Shareholders Group:

Financial Independence. During the Track Record Period and up to the Latest Practicable Date, we have established our own finance department with a team of financial staff, who are responsible for financial control, accounting, reporting, group credit and internal control functions of our Company, independent from our Single Largest Shareholders GroupControlling Shareholders. We can make financial decisions independently and our Single Largest Controlling Shareholders Group do not intervene with our use of funds. We have also established an independent audit system, a standardized financial and accounting system and a complete financial management system. During the Track Record Period and up to the Latest Practicable Date, we entered into various facility agreements and loan agreements with certain banks (“Lending Banks”), pursuant to which we obtained loans from the Lending Banks which were secured by personal guarantees provided by some of our members of the Single Largest Controlling Shareholders Group and/or their spouses, namely ▇▇. ▇▇▇▇, ▇▇. ▇▇ (the spouse of ▇▇. ▇▇▇▇), Mr. ▇▇▇ and his spouse. These loans were generally used for supplementing the working capital of the Group, payment of procurement costs and/or other financial needs in the ordinary and usual course of our business operation. As of the Latest Practicable Date, (i) the guarantees provided by the members some of our Single Largest Controlling Shareholders Group and/or their spouses with respect to credit facilities in the aggregate amount of approximately RMB300.0 million granted by the relevant Lending Banks ▇▇▇▇▇▇▇ ▇▇▇▇▇ will be released prior to the [REDACTED] as agreed by the relevant banks; and (ii) the remaining loans in the aggregate amount of approximately RMB38.0 million secured by the guarantees provided by the members of our Single Largest Controlling Shareholders Group and/or their spouses will be have been fully repaid prior to the [REDACTED]repaid. In addition, we had been capable of obtaining financing from third parties without relying on any guarantee or security provided by the members of our Single Largest Controlling Shareholders Group or their respective associates. Based on the above, our Directors are of the view that we will be able to maintain financial independence from our Single Largest Controlling Shareholders Group and its their respective close associates after the [REDACTED]. Our Directors recognize the importance of good corporate governance in protecting our Shareholders’ interests. We have adopted the following measures to safeguard good corporate governance standards and to avoid potential conflict of interests between our Group and our Single Largest Shareholders GroupControlling Shareholders:

Financial Independence. During the Track Record Period and up to the Latest Practicable Date, we have established our own finance department with a team of financial staff, who are responsible for financial control, accounting, reporting, group credit and internal control functions of our Company, independent from our Single Largest Shareholders Group. We can make financial decisions independently and our Single Largest Shareholders Group do not intervene with our use of funds. We have also established an independent audit system, a standardized financial and accounting system and a complete financial management system. During the Track Record Period and up to the Latest Practicable Date, we entered into various facility agreements and loan agreements with certain banks (“Lending Banks”), pursuant to which we obtained loans from the Lending Banks which were secured by personal guarantees provided by some of our members of the Single Largest Shareholders Group and/or their spouses, namely ▇▇. ▇▇▇▇, ▇▇. ▇▇ (the spouse of ▇▇. ▇▇▇▇), Mr. ▇▇▇ and his spouse. These loans were generally used for supplementing the working capital of the Group, payment of procurement costs and/or other financial needs in the ordinary and usual course of our business operation. As of the Latest Practicable Date, (i) the guarantees provided by the members of our Single Largest Shareholders Group and/or their spouses with respect to credit facilities in the aggregate amount of approximately RMB300.0 million granted by the relevant Lending Banks ▇▇▇▇▇▇▇ ▇▇▇▇▇ will be released prior to the [REDACTED] as agreed by the relevant banks; and (ii) the remaining loans in the aggregate amount of approximately RMB38.0 million secured by the guarantees provided by the members of our Single Largest Shareholders Group and/or their spouses will be have been fully repaid prior to the [REDACTED]repaid. In addition, we had been capable of obtaining financing from third parties without relying on any guarantee or security provided by the members of our Single Largest Shareholders Group or their respective associates. Based on the above, our Directors are of the view that we will be able to maintain financial independence from our Single Largest Shareholders Group and its close associates after the [REDACTED]. Our Directors recognize the importance of good corporate governance in protecting our Shareholders’ interests. We have adopted the following measures to safeguard good corporate governance standards and to avoid potential conflict of interests between our Group and our Single Largest Shareholders Group: