Zhongbei Telecom Signs a RMB 511 Million Electric Motorcycle Battery Unit Procurement and Supply Framework Agreement

Recently, Zhongbei Communication Group Co., Ltd. (hereinafter referred to as "the Company" and "Party B") signed an electric motorcycle battery system procurement and supply framework agreement with Hangzhou Qiji Technology Co., Ltd., Guangdong Xiaobin Network Technology Co., Ltd., Zhejiang Quxuan Technology Co., Ltd., Guangdong Gongsheng Network Technology Co., Ltd., and Yunnan Guoguo Network Technology Co., Ltd. (hereinafter referred to as "Party A"). Party A plans to purchase 48V23AH series of lithium iron phosphate batteries from the Company as battery units for electric motorcycle energy system solutions, with a total of 350,000 sets of 48V23AH battery packs to be purchased, of which Hangzhou Qiji Technology Co., Ltd. will purchase 150,000 sets, Guangdong Xiaobin Network Technology Co., Ltd. will purchase 80,000 sets, Zhejiang Quxuan Technology Co., Ltd. will purchase 50,000 sets, Guangdong Gongsheng Network Technology Co., Ltd. will purchase 40,000 sets, and Yunnan Guoguo Network Technology Co., Ltd. will purchase 30,000 sets.

Main contents of the agreement

Party A:

Hangzhou Qiji Technology Co., Ltd.

Guangdong Xiaobin Network Technology Co., Ltd.

Zhejiang Quxuan Technology Co., Ltd.

Guangdong Gongsheng Network Technology Co., Ltd.

Yunnan Guoguo Network Technology Co., Ltd.

Party B:

Zhongbei Telecommunications Group Co., Ltd.

1. Validity period of the agreement

1.1 This Framework Agreement is valid from July 3, 2023 to December 31, 2025. The performance of the effective orders shall be fully subject to the provisions of this Agreement on the rights and obligations of both parties;

1.2 During the validity period of this Framework Agreement, Party B shall supply goods strictly in accordance with Party A's requirements and ensure product quality; Party B shall produce and supply goods in accordance with the product models, technical specifications, quality requirements, etc. agreed upon by both parties, and comply with relevant national or industry technical specifications.

2. Battery pack model, quantity and price

2.1 Party A purchases Party B's 48V23AH series of lithium iron phosphate batteries as battery units for the electric motorcycle energy system solution, with a total purchase of 350,000 sets of 48V23AH battery packs, as detailed below:

2.2 Party B promises that the price of the battery pack supplied to Party A has a market competitive advantage. The framework agreement stipulates that the purchase price including tax is approximately: RMB 1,460/set, the value-added tax rate is 13%, and the total amount is RMB 511 million (in words: five hundred and ten million yuan);

2.3 The battery price is linked quarterly with the market raw material price. The actual settlement amount of the agreement is determined according to the order plan and the actual number of receipts for each batch, and Party A and Party B shall handle the settlement procedures based on the actual situation. The agreed price includes the product (including freight), technical documents, taxes, after-sales service and other expenses.

3. Battery manufacturing

Party B entrusts Party B's subsidiary Guizhou Zhejiang Storage System Technology Co., Ltd. (hereinafter referred to as "Zhejiang Storage System Company") to manufacture the battery pack. Zhejiang Storage System Company is mainly engaged in the design, integration and manufacturing of power battery systems and energy storage systems. The self-developed CSC system is an upgraded product of the battery management system BMS. It is a joint venture battery cell manufacturing partner of JAC Motors and BYD (Fudi).