Official Statement on Large Project Financing and Cooperation Policy

Dear Clients and Partners,

To ensure the long-term stability and healthy development of large-scale project cooperation, and to guarantee the security and efficiency of all stages within the supply chain, our company hereby issues the following formal statement and clarification regarding our cooperation policy for business involving large-value orders or project-based contracts.

1. Core Financial and Risk Control Principle

Our company consistently prioritizes financial security and risk management in our business development. As resolved by the company's management, the following policy is hereby formally established:

For all cooperation involving large project-based orders, major equipment supply, or long-term supply contracts, our company will strictly adhere to the principle of "Open Account Terms Subject to Guarantee."

This means that prior to engaging in such business with a client, the client must have obtained a verified, sufficient, and valid credit insurance limit from China Export & Credit Insurance Corporation (Sinosure), and must list our company as the insured party under this policy (or provide coverage through an effective, endorsable policy form).​ This is a mandatory prerequisite​ for our company to undertake such projects and offer open account terms (credit sales). If this condition cannot be met, and in order to control risk, our company will be unable to provide any form of open account support.

2. Explanation of Project Operation Model

Given that large projects typically involve significant amounts, long delivery cycles, and high capital occupancy, while our company's operational strategy focuses on product R&D, quality control, and technical services, we adopt the following established cooperation model for projects meeting the aforementioned Sinosure requirements. This is to optimize resource allocation and ensure absolute security and efficient operation of project capital flow:

• Project Entity Transfer:​ Subject to the client's完备 Sinosure coverage, our company will not directly assume the project's financial risk and accounts receivable management in its own name. The specific project contract, financial settlement, and risk management will be transferred to and executed by a large holding company (or a designated supply chain platform) with strong financial strength, with which we have a long-term strategic partnership.

• Our Company's Role:​ Under this model, our company will act as the core Product and Technical Service Provider, committed to supplying the project with LED plant lighting systems and other related products that meet standards and boast excellent quality. Our core responsibility and commitment lie in the technical advancement of our products, their reliability, and the professionalism of our after-sales service.

• Complete Risk Isolation:​ Through the above arrangement, our company is able to completely isolate various financial and credit risks arising from project advances, payment collection, and exchange rate fluctuations. This allows us to focus entirely on enhancing product strength and customer service experience.

3. Cooperation Process and Client Notification

To initiate cooperation smoothly, prospective clients and partners are kindly requested to note and follow the process below:

1. Initial Engagement:​ Both parties conduct preliminary discussions regarding the project's technical solution, product requirements, and commercial framework.

2. Qualification Review:​ The client is required to provide documentation of their company's Sinosure credit limit​ for our company and our partner's access assessment. We will verify the limit amount, validity period, and operational feasibility.

3. Model Confirmation:​ Upon successful qualification review, our company will formally introduce and engage the Designated Partner Holding Company​ responsible for financial and commercial execution. Subsequent matters regarding commercial contracts, payment terms, logistics, and delivery will be directly negotiated and signed between the client and this partner company.

4. Execution and Delivery:​ Our company fulfills its core obligations of manufacturing, quality control, and technical support in accordance with the purchase order and technical agreement confirmed by all three parties: our company, the partner company, and the client.

4. Shared Goals and Commitment

The establishment of this policy is not intended to create barriers to cooperation but to build a safer, more transparent, and more sustainable​ cooperative ecosystem. It serves to:

• Safeguard Project Funding:​ Ensure sufficient capital flow for the project, preventing delivery disruptions due to funding issues.

• Mitigate Mutual Risk:​ Utilize national-level financial instruments to minimize commercial credit risk to the greatest extent possible, protecting the fundamental interests of all cooperating parties.

• Focus on Core Value:​ Enable our company to concentrate wholeheartedly on continuous technological innovation and quality improvement, creating greater long-term value for our clients.

We firmly believe that clear rules form the foundation of long-term trust. Our company looks forward to joining hands with quality clients and partners who understand and agree with this philosophy. Under a sound risk mitigation framework, we are committed to working together to successfully implement each project for mutual benefit and win-win outcomes.

Thank you for your understanding and support.

HIGROWSIR LTD

January 22, 2026