/Huafeng Chemical: Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets, including the asset evaluation report on the value evaluation project of all shareholders of Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.

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Huafeng Chemical: Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets, including the asset evaluation report on the value evaluation project of all shareholders of Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.

Shenzhen Stock Exchange

2026/09/03

This asset valuation report is prepared in accordance with China’s Asset Valuation Standards

Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets, including the asset evaluation report of the value evaluation project of all shareholders of Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.

Kunyuan Review [2026] No. 890

(A total of one volume, Volume 1)

Kunyuan Assets Appraisal Co., Ltd.

September 2, 2026

1. The client, the appraised unit and other users of the asset appraisal report

The client of this asset appraisal is Huafon Chemical Co., Ltd. (hereinafter referred to as Huafon Chemical), and the appraised unit of this asset appraisal is Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. (hereinafter referred to as Huafon Thermoplastic). According to the "Asset Appraisal Entrustment Contract", other users of this asset appraisal report are users of the asset appraisal report stipulated in national laws and regulations.

2. Evaluation purpose

Huafon Chemical plans to issue shares and pay cash to purchase the equity of Huafon Thermoplastic. To this end, it is necessary to evaluate the value of all equity interests of Huafon Thermoplastic.

The purpose of this evaluation is to provide a reference basis for the value of all equity interests of Huafon Thermoplastic shareholders for this economic behavior.

3. Assessment objects and assessment scope

The object of evaluation is the entire equity of Huafeng Thermoplastic’s shareholders involved in the above-mentioned economic activities.

The scope of the assessment is all the company’s assets and related liabilities as of June 30, 2026, as reported by Huafon Thermoplastic and audited by Beijing Dehao International Accounting Firm (Special General Partnership). According to the audited financial statements provided by Huafeng Thermoplastic on June 30, 2026 (parent company's financial statement caliber), the book values of assets, liabilities and shareholders' equity are 2,576,484,920.23 yuan, 2,068,277,590.19 yuan and 508,207,330.04 respectively.

2 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report Yuan; According to the audited financial statements (consolidated financial statement caliber) provided by Huafeng Thermoplastic on June 30, 2026, the book values of assets, liabilities and shareholders' equity are 2,590,541,476.82 yuan, 2,081,784,229.38 yuan and 2,081,784,229.38 yuan respectively. 508,757,247.44 yuan, of which the total equity attributable to the parent company is 508,757,247.44 yuan. In addition, Huafon Thermoplastic has included intangible assets not recorded in the books within the scope of its assessment, including 31 patent rights (including 29 invention patents and 2 utility model patents), 1 trademark licensing right and 1 domain name.

4. Value type

The value type of this assessment is market value.

5. Evaluation base date

The evaluation base date is June 30, 2026.

6. Evaluation method

Based on relevant conditions such as the evaluation object, value type, data collection, etc., the asset-based method and the income method are used for evaluation this time.

7. Evaluation Conclusion

After comprehensive analysis, this evaluation finally uses the income method evaluation results as the assessed value of all the equity of Huafon Thermoplastic shareholders. The assessed value of all the equity of Huafon Thermoplastic shareholders is 2.707 billion yuan. Compared with the book value of equity attributable to shareholders of the parent company of 508.7572 million yuan in the consolidated statement, the estimated value added is 2.1982428 million yuan, with a value-added rate of 432.08%.

8. Validity period of evaluation conclusion

This assessment conclusion is only valid for the economic behavior of Huafon Chemical's proposed issuance of shares and payment of cash to purchase the equity of Huafon Thermoplastic. The validity period of this evaluation conclusion is one year, that is, from June 30, 2026, the base date of evaluation, to June 29, 2027.

Please read the text of the asset appraisal report for special matters and usage restrictions in the asset appraisal report.

3 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets involving Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.

Equity valuation project for all shareholders

Asset Valuation Report

Kunyuan Review [2026] No. 890

Huafeng Chemical Co., Ltd.:

Kunyuan Asset Appraisal Co., Ltd. accepted your company's entrustment and, in accordance with the provisions of relevant laws, administrative regulations and asset appraisal standards, adhered to the principles of independence, objectivity and impartiality, adopted the asset-based method and the income method respectively, and in accordance with the necessary evaluation procedures, evaluated the market value of all the shareholders' equity of Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. on June 30, 2026, which was involved in your company's proposed issuance of shares and payment of cash to purchase assets. The asset assessment status is now reported as follows:

1. The client, the appraised unit and other users of the asset valuation report

The client of this asset appraisal is Huafeng Chemical Co., Ltd., and the evaluated unit is Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.

(1) Profile of the client

Name: Huafeng Chemical Co., Ltd. (hereinafter referred to as Huafeng Chemical)
Address: No. 1788, Development Zone Avenue, Ruian Economic Development Zone, Ruian City, Wenzhou City, Zhejiang Province
Legal representative: You Feihuang
Registered capital: RMB 400,000,000,000,200,000,000,000,000
Type: joint stock limited company (listed, natural person investment or holding)
Unified social credit code: 913300007176139983
Registration authority: Zhejiang Provincial Administration for Market Regulation
Business scope: General items: synthetic fiber manufacturing; synthetic fiber sales; synthetic material manufacturing (excluding hazardous chemicals); synthetic material sales; basic chemical raw material manufacturing (excluding hazardous chemicals and other licensed chemicals)

4 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.’s equity value assessment project for all shareholders (manufacturing of asset assessment reports); chemical product sales (excluding licensed chemical products); new material technology research and development; bio-based material technology research and development; engineering and technology research and experimental development (except for projects that require approval in accordance with the law, independently carry out business activities with a business license and in accordance with the law). Licensed items: import and export of goods; import and export of technology (items that require approval according to law can only be carried out with the approval of relevant departments, and specific business items are subject to the approval results).

(2) Overview of the assessed unit

Company name, type and organizational form

Name: Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. (hereinafter referred to as Huafeng Thermoplastic)
Address: No. 1199, Linhu Road, Shangwang Street, Ruian City, Wenzhou City, Zhejiang Province
Legal representative: You Feihuang
Registered capital: 80 million yuan
Type: Limited liability company (a sole proprietorship of a legal person that is not invested or controlled by a natural person)
Unified social credit code: 913303816795546236
Registration authority: Ruian Municipal Administration for Market Regulation
Business scope: R&D, manufacturing and sales of thermoplastic polyurethane series products, hot melt adhesive series products, and plastic products; sales of plastics and chemical raw materials (excluding hazardous chemicals); import and export of goods, and technology import and export (projects that require approval according to law can only be carried out with the approval of relevant departments)

Corporate history

1． Situation when the company was established

Huafeng Thermoplastic was established on August 15, 2008, with an initial registered capital of 10 million yuan and a paid-in capital of 10 million yuan. It is a wholly-owned subsidiary of Huafeng Group Co., Ltd.

The company’s previous equity changes

In August 2011, according to the company's shareholders' decision, Huafeng Group Co., Ltd. increased its registered capital in currency by RMB 20 million. On September 1, 2011, Huafon Thermoplastic completed the industrial and commercial change registration procedures at the Ruian Municipal Administration for Industry and Commerce.

In March 2017, according to the company's shareholders' decision, Huafeng Group Co., Ltd. increased its registered capital in currency by RMB 50 million. On March 14, 2017, Huafon Thermoplastic completed the industrial and commercial change registration procedures at Ruian Municipal Administration for Market Regulation.

After the above equity capital increase, as of the evaluation base date, Huafon Thermoplastic's registered capital is 80 million yuan and its paid-in capital is 80 million yuan. It is a wholly-owned subsidiary of Huafon Group Co., Ltd.

5 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report 3) The assets, liabilities and operating performance of the assessed unit as of the assessment base date and the previous two years are shown in the table below: Consolidated financial statement caliber

Unit: RMB

Project name December 31, 2024 December 31, 2025 Assets on June 30, 2026 2,293,951,649.44 2,437,054,227.21 2,590,541,476.82 Liabilities 1,954,578,696.87 2,083,428,010.51 2,081,784,229.38 Total shareholders’ equity 339,372,952.57 353,626,216.70 508,757,247.44 Total shareholders’ equity attributable to the parent company 339,372,952.57 353,626,216.70 508,757,247.44

Project name 2024 2025 Operating income from January to June 2026 3,180,860,455.59 3,371,845,659.26 1,895,576,086.50 Operating cost 2,841,457,292.43 2,932,778,468.06 1,615,226,346.67Total profit 171,957,415.63 239,327,409.57 181,107,145.92Net profit 162,820,651.51 214,253,264.13 155,131,030.74 Net profit attributable to shareholders of the parent company 162,820,651.51 214,253,264.13 155,131,030.74 Financial statements of the parent company

Unit: RMB

Project name December 31, 2024 December 31, 2025 Assets on June 30, 2026 2,291,990,548.02 2,436,390,185.08 2,576,484,920.23 Liabilities 1,953,094,065.30 2,083,538,087.32 2,068,277,590.19 Total shareholders’ equity 338,896,482.72 352,852,097.76 508,207,330.04

Project name 2024 2025 Operating income from January to June 2026 3,178,086,745.37 3,369,071,269.77 1,894,223,269.24 Operating cost 2,839,744,541.82 2,931,399,942.95 1,614,230,805.98Total profit 172,214,800.50 238,997,524.89 181,362,940.46Net profit 163,077,232.01 213,955,615.04 155,355,232.28 The above financial statements have all been audited by certified public accountants, and all have issued unqualified audit reports. 4) Business conditions of the assessed unit, etc.

Huafeng Thermoplastic was established in August 2008. It is a company specializing in thermoplastic polyurethane elastomer (TPU) products.

6 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. is a new environmentally friendly enterprise that develops, produces and sells asset valuation reports. Since the establishment of the company, with the continuous increase of production lines, the production capacity has increased year by year, and now it can produce 300,000 tons of TPU annually. The company's products have excellent physical properties, mechanical properties and environmental protection properties. They are wear-resistant and non-slip, have good low-temperature flexibility, excellent processability and good fluidity. They are widely used in personal consumer goods and industrial fields such as shoe materials, electronics, sports equipment, mechanical equipment and auto parts, pipes, wires and cables, and films. The product sales area covers more than 20 provinces and cities across the country, including Zhejiang, Jiangsu, Guangdong, Fujian, and Taiwan, and is also sold to many countries and regions such as South Korea, India, the Middle East, and Central and South America. The company has passed ISO 9001:2015, ISO 14001:2015 and ISO 45001:2018 certification systems. As of the assessment base date, the equity control relationship structure diagram of Huafeng Thermoplastic is as follows:

As of the assessment base date, Huafeng Thermoplastic has a wholly-owned subsidiary, Dongguan Yifeng Polyurethane Materials Co., Ltd. (hereinafter referred to as Dongguan Yifeng), located in Dongguan, Guangdong, mainly engaged in warehousing and auxiliary transportation business.

(3) The relationship between the client and the assessed unit

The client intends to acquire the equity of the assessed unit.

(4) Other users of asset valuation reports

According to the "Asset Appraisal Entrustment Contract", other users of this asset appraisal report are the users of the appraisal report specified by national laws and regulations.

2. Evaluation purpose

Huafon Chemical plans to issue shares and pay cash to purchase the equity of Huafon Thermoplastic. To this end, it is necessary to evaluate the value of all equity interests of Huafon Thermoplastic.

7 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholders' Equity Value Assessment Project Asset Valuation Report The purpose of this assessment is to provide a reference basis for the economic behavior of the value of all shareholders' equity of Huafeng Thermoplastic.

3. Assessment objects and assessment scope

The object of evaluation is the entire equity of Huafeng Thermoplastic’s shareholders involved in the above-mentioned economic activities.

The scope of the assessment is all assets and related liabilities of Huafon Thermoplastic as of June 30, 2026, as reported by Huafon Thermoplastic and audited by Beijing Dehao International Accounting Firm (Special General Partnership), including current assets, non-current assets, current liabilities, and non-current liabilities. According to the audited financial statements of June 30, 2026 provided by Huafon Thermoplastic (parent company's financial statement caliber), the book values of assets, liabilities and shareholders' equity are 2,576,484,920.23 yuan, 2,068,277,590.19 yuan and 508,207,330.04 yuan respectively; according to the 2026 financial statements provided by Huafon Thermoplastic The audited financial statements (consolidated financial statement standard) on June 30, 2018 reflected that the book values of assets, liabilities and shareholders' equity were 2,590,541,476.82 yuan, 2,081,784,229.38 yuan and 508,757,247.44 yuan respectively, of which the total equity attributable to the parent company was 508,757,247.44 yuan. The specific content (parent company’s financial statement caliber) is as follows:

Unit: RMB

Item Original book value Book value

Current assets 2,025,001,803.65
Non-current assets 551,483,116.58 Including: Long-term equity investment 2,000,000.00 Fixed assets 900,552,691.76 480,414,589.09 Construction in progress 33,305,111.61 Intangible assets 20,199,181.79 Including: Intangible assets - land use rights 18,341,987.14 Intangible assets - other intangible assets 1,857,194.65 Other non-current assets 15,564,234.09

Total assets 2,576,484,920.23

Current liabilities 2,006,376,725.25
Non-current liabilities 61,900,864.94 Total liabilities 2,068,277,590.19 Total shareholders’ equity 508,207,330.04 The entrusted valuation objects and scope are consistent with those involved in the above-mentioned economic behaviors.

8 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

(1) Major assets within the scope of assessment

Monetary funds

Monetary funds include cash on hand, bank deposits and other monetary funds.

Trading financial assets

Trading financial assets include financial products and forward (swap) gains and losses from changes in fair value of foreign exchange settlement and sales.

Accounts receivable and bad debt provisions

Accounts receivable are all payments receivable.

Receivables Financing

Financing of receivables is all interest-free bank acceptance bills.

5.Advance payment

Prepayments include advance payment for goods, expenses, etc.

6.Inventory

Inventory includes raw materials, goods in stock and circulating materials in storage. The raw materials mainly include main materials such as MDI and aliphatic polyester polyols, and auxiliary materials such as ethylene glycol; the inventory products mainly include various types of aromatic polyester TPU, aromatic polyether TPU and other products that are in the warehouse and have been shipped but have not yet confirmed revenue; the turnover materials in the warehouse mainly include various spare parts materials such as metal gaskets, ball valves, blades and dies in the warehouse. The above inventory is mainly stored in the company's factory and warehouse at No. 1199 Linhu Road, Shangwang Street, Ruian City and No. 1116 Linhu Road, Shangwang Street, Ruian City. 7. Long-term equity investment

The long-term equity investment is an investment in Dongguan Yifeng, a wholly-owned subsidiary.

Building fixed assets

Building fixed assets include 6 buildings, with a total construction area of 80,280.51 square meters, mainly including three-dimensional warehouses, auxiliary buildings, factories and Class C warehouses and other industrial plants and auxiliary buildings; 2 structures and auxiliary facilities, mainly including tank farms and factory outdoor projects. The fixed assets of buildings are mainly distributed in the company's factory area at No. 1199 Linhu Road, Shangwang Street, Ruian City and No. 1116 Linhu Road, Shangwang Street, Ruian City. We have obtained Zhejiang (2021) Ruian City Real Estate Rights No. 0053073 and Zhejiang (2025) Ruian City Real Estate Rights No. 0026137 "Real Estate Rights Certificate".

Equipment fixed assets

There are a total of 5,062 equipment fixed assets (sets, vehicles, items), mainly including production equipment such as polymerization reactors, underwater granulators, co-rotating twin-screw extruders, and public engineering equipment such as power distribution, water supply, and gas supply systems.

9 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Valuation Project Asset Assessment Report Computers, air conditioners and other office equipment and vehicles are mainly distributed in the company's factory at No. 1199 Linhu Road, Shangwang Street, Ruian City, No. 1116 Linhu Road, Shangwang Street, Ruian City, and the company's office space at No. 1688 Development Zone Avenue, Ruian Economic Development Zone.

10.Construction in progress

Projects under construction include equipment installation projects and engineering materials. The equipment installation projects mainly include three-dimensional warehouse technical renovation projects, new TPU digital workshop technical renovation projects with an annual output of 75,000 tons, and other sporadic engineering projects. Engineering materials mainly include flanges, bellows stop valves and other accessories. Mainly distributed in the company's factory area at No. 1199 Linhu Road, Shangwang Street, Ruian City and No. 1116 Linhu Road, Shangwang Street, Ruian City.

(2) The accounting records declared by the enterprise or the type, quantity, legal ownership status, etc. of unrecorded intangible assets

Intangible assets recorded in books

The intangible assets recorded in Huafon Thermoplastic's books include intangible assets - land use rights and intangible assets - other intangible assets.

(1) Intangible assets—land use rights

Intangible assets - land use rights include 2 transferred industrial lands located at No. 1199 Linhu Road, Shangwang Street, Ruian City and No. 1116 Linhu Road, Shangwang Street, Ruian City, with a total land area of 71,548.31 square meters. Zhejiang (2021) Ruian City Real Estate Rights No. 0053073 and Zhejiang (2025) Ruian City Real Estate Rights No. 0026137 "Real Estate Rights Certificates" have been obtained.

(2) Intangible assets - other intangible assets

Intangible assets - other intangible assets include the amortized balance of various management software, application software, etc. purchased by the company.

Intangible assets not recorded in the books

As of the assessment base date, the unrecorded intangible assets declared by Huafon Thermoplastic include 31 patent rights (including 29 invention patents and 2 utility model patents), 1 trademark licensing right and 1 domain name.

(3) Type and quantity of off-balance sheet assets declared by the enterprise

Except for the above-mentioned intangible assets not recorded in the books, Huafeng Thermoplastic has not declared other off-balance sheet assets.

(4) Quoting the types, quantities and book amounts of assets involved in report conclusions issued by other institutions

This assessment report does not cite reports from other institutions.

4. Value type

Value types and their selection: Asset assessment value types include market value and values other than market value

10 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. shareholders’ equity value assessment project has two types of asset assessment reports (investment value, value in use, liquidation value, residual value, etc.). After full communication between the appraiser and the client, and based on factors such as the purpose of this appraisal, market conditions, and the conditions of the appraisal object, market value is finally selected as the value type for the appraisal conclusion of this appraisal report.

Definition of market value: Market value refers to the estimated amount of the value of a normal and fair transaction between a willing buyer and a willing seller on the valuation base date, when each is acting rationally and without any coercion.

5. Evaluation base date

In order to make the valuation base date close to the planned economic activities and valuation working days, the client determined the valuation base date as June 30, 2026, and made corresponding stipulations in the asset valuation entrustment contract.

The selection of the valuation base date is determined by the client based on the actual situation of the project, the valuation base date being as close as possible to the realization date of the economic behavior, and minimizing adjustments after the valuation base date and other factors. At the same time, in line with the principle of ensuring that the evaluation results effectively serve the purpose of evaluation, accurately delineating the scope of evaluation, inventorying and verifying assets accurately and efficiently, and rationally selecting the basis for evaluation and pricing, a date closer to the implementation date of the relevant economic action plan is selected as the evaluation base date.

6. Basis of evaluation

(1) Legal and regulatory basis

"Asset Appraisal Law";
"Company Law", "Civil Code", "Securities Law", etc.;
"Measures for the Administration of Major Asset Reorganization of Listed Companies";
Other laws and regulations related to asset valuation.

(2) Basis of evaluation criteria

"Basic Criteria for Asset Valuation";
"Professional Code of Ethics for Asset Valuation";
"Asset Appraisal Practice Guidelines - Asset Appraisal Procedures";
"Asset Appraisal Practice Guidelines - Asset Appraisal Report";
"Asset Appraisal Practice Guidelines - Asset Appraisal Entrustment Contract";
"Asset Appraisal Practice Guidelines - Asset Appraisal Files";
"Asset Appraisal Practice Guidelines - Utilization of Expert Work and Related Reports";
"Practical Guidelines for Asset Valuation—Enterprise Value";

11 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report 9. "Asset Assessment Practice Standards - Asset Assessment Method";

"Asset Valuation Practice Guidelines - Intangible Assets";
"Asset Appraisal Practice Guidelines - Intellectual Property Rights";
"Asset Appraisal Practice Guidelines - Machinery and Equipment";
"Asset Appraisal Practice Guidelines - Real Estate";
"Guiding Opinions on Asset Appraisal Value Types";
"Guiding Opinions on the Legal Ownership of Asset Appraisal Objects";
"Guiding Opinions on Patent Asset Valuation".

(3) Basis of ownership

The "Business License", Articles of Association and Capital Verification Report provided by Huafeng Thermoplastic;
Contracts, agreements, fund allocation certificates (vouchers), financial statements and other accounting information related to the acquisition and use of assets and rights;
State-owned construction land use right transfer contract, real estate certificate, construction land planning permit, construction project planning permit, motor vehicle driving license, invoice and other ownership certificates;
Patent certificate, trademark license contract and other relevant ownership certificates;
Other property rights certification documents.

(4) Basis for pricing

Assessment declaration form provided by the unit being assessed;
The audit report and relevant financial statements of the assessed unit as of the assessment base date; 3. "Zhejiang Province Construction Project Price Information";
"Notice of the National Development and Reform Commission on Further Liberalizing Professional Service Prices for Construction Projects"; 5. "Notice of Issuing the "Construction Cost Management Regulations for Capital Construction Projects";
Original data about the project, final accounting data, project contract, business contract, inquiry records, etc.;
Survey data on real estate market prices where the assets are located;
"Mechanical and Electrical Product Quotation Inquiry System" and other market price data and inquiry records; 9. Purchase contracts, invoices, payment vouchers for major equipment; technical files, test reports, operation records and other information on relevant equipment;
"Customs Import and Export Tariffs"; relevant national regulations on adjusting tax policies for imported equipment;

12 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report 11. "Asset Assessment Common Data and Parameters Manual", "Capital Construction Financial Rules", "Engineering Survey and Design Charge Standards" and other assessment parameter value reference materials;

Relevant policies, regulations, implementation measures and other regulatory documents promulgated by the people's government and relevant government departments where the main assets are located;
Market price information of main raw materials and survey data on market sales prices of inventory commodities;
The historical production and operation data, business plan and income forecast data of the assessed unit;
Industry statistical data, related industries and market capacity, market prospects, market development and trend analysis data, pricing strategies and future marketing methods, and relevant data of companies with similar businesses;
Relevant data queried from Wind information terminal or Flush iFinD financial data terminal;
The foreign exchange exchange rate table and loan market quoted interest rate (LPR) published by the People's Bank of China on the base date of assessment; 18. Accounting standards for enterprises and other accounting regulations and systems, departmental regulations, etc.;
Supporting information collected by appraisal professionals for asset verification, survey, testing, analysis, etc.;
Other information.

7. Evaluation method

(1) Selection of assessment methods

According to the current asset evaluation standards and relevant regulations, the basic methods of enterprise value evaluation include the asset-based method, the market method and the income method.

According to the characteristics of the enterprise in this evaluation, it is difficult for the evaluator to collect comparable listed companies in the open market that are similar to the unit being evaluated, and it is also impossible to collect and obtain the same or similar transaction cases in the open market, so the market approach is not suitable.

The asset-based method is an evaluation method that uses the balance sheet as the basis to reasonably evaluate the value of the company's on-balance sheet and off-balance sheet assets and liabilities, and determine the value of the evaluation object. Based on the situation of this appraisal, the appraised unit can provide, and the appraiser can also collect from outside, the information required to meet the asset-based method, and can perform necessary verification procedures on the assets and liabilities of the appraised unit. Therefore, the asset-based method is applicable to this appraisal.

Huafeng Thermoplastic's business model has gradually matured. While continuing the existing business content and scope, future earnings can be reasonably predicted, and the discount rate corresponding to the risk level of the company's future earnings can also be reasonably estimated. Therefore, the income method is suitable for this evaluation.

Combined with the object of this asset appraisal, the purpose of the appraisal and the information collected by the appraiser, determine the methods of using the assets respectively.

13 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.'s shareholder's equity value assessment project The asset appraisal report evaluates the value of all shareholders' equity of Huafeng Thermoplastic entrusted with the asset-based method and the income method.

On the basis of the above assessment, the various assessment results formed are fully and comprehensively analyzed based on the actual situation, and after comprehensive consideration of the rationality of different assessment methods and assessment results, the assessment conclusion using the income method as the assessment object is determined.

(2) Introduction to asset-based approach

The asset-based method refers to an evaluation method that uses the balance sheet of the evaluated unit as the base date of evaluation to reasonably evaluate the value of the company's on-balance sheet and identifiable off-balance sheet assets and liabilities, and determine the value of the evaluation object. It is based on the premise of resetting various production factors. According to the specific conditions of the sub-assets entrusted to be appraised, appropriate methods are selected to assess and estimate the value of each sub-asset respectively and then summed up. Then the evaluation value of the relevant liabilities is deducted to obtain the evaluation value of all shareholders' equity. The calculation formula is:

Appraisal value of all shareholders’ equity = ∑ Appraisal value of each sub-asset – ∑ Appraisal value of each sub-liability The evaluation method of major assets is as follows:

Current assets

Monetary funds

For RMB cash and bank deposits, the verified book value is the assessed value; for foreign currency bank deposits, the assessed value is based on the verified number of foreign currency deposits and the RMB amount converted from the central parity rate of the RMB exchange rate announced by the People's Bank of China on the base date; for other monetary funds, the verified book value is recognized as the assessed value. 2. Trading financial assets

For gains and losses from changes in the fair value of financial products and forward (swap) foreign exchange settlements and sales, the verified book value shall be the assessed value.

Debt-type current assets

Debt-type current assets include accounts receivable, receivable financing, prepayments, other receivables, etc. For debt-type current assets, on the basis of analyzing the age of accounts and verifying equity, the estimated value is determined based on the amount that is expected to be recoverable or the corresponding equity that is expected to be realized. At the same time, the bad debt provisions accrued by the company in accordance with regulations are evaluated to zero. 4.Inventory

Inventories include raw materials, inventory goods and in-stock turnover materials, etc., and are evaluated using appropriate evaluation methods based on the characteristics of each type of inventory.

For raw materials, the verified book value is the assessed value.

For inventory goods, the reverse subtraction method is used to evaluate the inventory goods whose sales price is higher than the book cost, that is, based on

14 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. shareholder's equity value assessment project: Asset assessment report: its selling price excluding value-added tax, minus sales expenses and sales tax and income tax, and then deducting appropriate after-tax profits to calculate and determine the assessed value. For inventory goods whose sales price is lower than their book cost, the assessed value is determined based on the balance of their sales price excluding VAT minus sales expenses and sales tax. For cleaning materials for self-use, which are not sold to external parties, the assessed value is based on the verified book balance. The company's provision for inventory depreciation accrued in accordance with regulations was assessed to be zero.

For the turnover materials in storage that are sold after the period, the appraisal value will be determined based on the actual transfer price after the period; for the remaining turnover materials in storage, the verified book balance will be the appraisal value. The company's provision for inventory depreciation accrued in accordance with regulations was assessed to be zero.

Other current assets

For other current assets, the accrued and uncollected deposit interest as of the valuation base date has been fully included in this account. The risk level of this time deposit is low, and the recovery of corresponding interest income should be guaranteed. The verified book value shall be the valuation value. 2) Non-current assets

Long-term equity investment

For equity investments in wholly-owned subsidiaries, this time the invested unit will be verified and evaluated on-site according to the same standards and on the same base date. The assessed value of the long-term equity investment will be determined based on the assessed shareholder equity value of the subsidiary and the investment ratio of the assessed unit. The calculation formula is:

Appraisal value of long-term equity investment = Appraised shareholders’ equity of the investee × Equity ratio

Building fixed assets

For industrial buildings such as industrial plants, warehouses, and auxiliary buildings included in the assessment scope, due to the inactive similar transaction and leasing markets, transaction cases and fair income are difficult to obtain, this assessment adopts the cost method. The assessed value of such buildings does not include the assessed value of the corresponding land use rights.

The cost method is a method of evaluating the estimated value by subtracting the depreciation that has occurred on the building to be valued from all the costs required to repurchase or build a brand new building under current conditions. This evaluation uses the new discount method to determine the various depreciations that have occurred on the building to be valued. The calculation formula is:

Appraisal value = replacement cost × newness rate

(1) Determination of replacement cost

The replacement cost generally consists of construction and installation project costs, preliminary and other costs, construction fees, and capital costs (including accrued interest and development profits), with slight selections based on the specific circumstances of the evaluation object.

(2) Determination of newness rate

15 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

For complex, large, unique, and expensive buildings, the newness rate is determined based on the age method and the damage grade scoring method respectively, and then the comprehensive newness rate is determined through a weighted average.

The formula for calculating the newness rate using the age method is:

Newness rate (K1) = remaining useful life/economic durability × 100%

The calculation formula using the intactness grade scoring method is:

Integrity grade evaluation coefficient (K2) = proportion of structural part × integrity factor of structural part + proportion of decorative part × integrity factor of decorative part + proportion of equipment part × integrity factor of equipment part

Take the weighted average of the calculation results of the above two methods to determine the comprehensive newness rate. The calculation formula is:

K＝A1×K1+A2×K2

Among them, A1 and A2 are weighting coefficients respectively. In this evaluation, A1 and A2 are each taken as 0.5.

The newness rate of other buildings is based on the age method and is comprehensively evaluated based on its actual use, repair and maintenance conditions, and the experience and judgment of assessment professionals during on-site inspections.

Equipment fixed assets

Based on the specific purpose of this asset assessment, relevant conditions, characteristics of the equipment to be assessed, and data collection, the cost method is mainly used for assessment.

The cost method refers to an assessment method that uses the reconstruction or replacement cost of the assessed object as the basis for determining the asset value and deducts relevant depreciation (including physical depreciation, functional depreciation, and economic depreciation) to determine the value of the asset. This evaluation uses the new discount method to determine the physical depreciation that has occurred on the equipment to be valued. The calculation formula is:

Appraisal value = replacement cost – physical depreciation – functional depreciation – economic depreciation

= Replacement cost × Newness rate – Functional depreciation – Economic depreciation

(1) Determination of replacement cost

Replacement cost refers to the current re-acquisition cost of the asset, which consists of the current purchase price of the equipment, transportation and miscellaneous expenses, installation and commissioning fees, basic expenses, upfront and other expenses, capital costs, etc.

(2) Determination of newness rate

Determine the equipment's newness rate based on factors such as the characteristics, usage, importance and other factors of the commissioned equipment.

A. For equipment with large value and important importance, the comprehensive analysis coefficient adjustment method is used to determine the newness rate.

The comprehensive analysis coefficient adjustment method is based on the age method. It first comprehensively determines the economic durability N based on the composition, functional characteristics, and economical use of the equipment to be evaluated, and based on this, initially determines the remaining service life n of the equipment; then press

16 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.’s shareholder equity value assessment project. The asset evaluation report analyzes the technical status of the equipment at the time of the on-site investigation, analyzes its technical status, utilization rate, workload, working environment, maintenance status and other factors, determines the adjustment coefficients for each newness rate, and comprehensively evaluates the newness rate of the equipment.

B. For equipment with small value, as well as office equipment such as computers and air conditioners, the newness rate is determined mainly based on the age method and combined with the maintenance status and appearance status of the equipment.

C. For vehicles, first calculate the theoretical newness rate according to the age method and mileage method respectively, and use the lower method to determine the theoretical newness rate. Based on this, combined with the vehicle's maintenance status and appearance status, determine the newness rate.

(3) Determination of functional depreciation

This time, the updated replacement cost is used for the commissioned equipment, so functional depreciation is not considered.

(4) Determination of economic devaluation

It is understood that the equipment utilization rate is normal and the production line has not experienced any decline in output or shortened service life due to external economic factors, so economic depreciation is not considered.

In addition, the expenses incurred during the installation, modification, and repair of the overall equipment that are listed separately in the detailed list shall be considered in the evaluation of the corresponding equipment; for electronic equipment that is still in use after its economic useful life has exceeded its economic useful life on the evaluation base date, its estimated net realizable value shall be the evaluation value; for equipment that is temporarily out of use, this evaluation shall be appropriately considered in the newness rate.

Construction in progress

Projects under construction include equipment installation projects and engineering materials.

Projects under construction - equipment installation projects mainly include three-dimensional warehouse technical renovation projects, new TPU digital workshop technical renovation projects with an annual output of 75,000 tons, and other sporadic engineering projects. After verification, the expenditures of each project are reasonable. Since the relevant equipment was purchased recently and the market price has not changed much, the verified book value is used as the assessed value.

Since the construction materials were purchased recently and the market prices have not changed much, the verified book value is used as the assessed value.

Intangible assets—land use rights

(1) The value connotation of land use rights

The land price for this evaluation is set as mature land with a degree of land development, that is, the price of land use rights for industrial land within the remaining useful life of the industrial land on June 30, 2026, the base date of evaluation, under the conditions of "five connections" outside the parcel's red line (i.e. access, power supply, water supply, drainage, communications) and "site leveling" within the parcel's red line.

(2) Selection of evaluation methods

According to the "Asset Valuation Standards - Real Estate", the popular valuation methods include cost method, market method, income method, hypothetical development method, benchmark land price coefficient correction method, etc. Because transaction cases in the area where the parcel to be valued are located are relatively easy to obtain,

17 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.’s Equity Valuation Project of All Shareholders Assets Valuation Report This valuation adopts the market method.

(3) Introduction to the selected evaluation methods and parameter selection route

The market method is a method that, when determining the price of a piece of land to be appraised, uses the principle of substitution to compare the land to be appraised with examples of similar land transactions that have occurred in a relatively recent period, and based on the known price of the latter, with reference to the transaction situation, date, region, individual factors, useful life, floor area ratio and other differences of the land, a modified method is used to derive the land price on the valuation base date of the land to be appraised. The calculation formula is:

V＝VB×A×B×C×D×E×F

In the formula: V - the value of the land use right to be estimated

VB - compare case prices

A——Transaction status index of parcels to be estimated/transaction status index of comparative cases

B——The future land price index of the parcel to be valued/the future land price index of the comparison case

C——Regional factor condition index of parcel to be valued/regional factor condition index of comparison case

D——Individual factor condition index of the parcel to be valued/individual factor condition index of the comparative case

E——Use life index of the parcel to be valued/use life index of the comparison case

F——Floor area ratio index of the parcel to be estimated/Floor area ratio index of the comparison case

The assessed value of the land use rights this time is determined based on the value of the land use rights excluding deed taxes obtained under the market method and adding the corresponding deed taxes.

Intangible assets - other intangible assets

(1) Overview

Intangible assets - other intangible assets include the amortized balance of various management software, application software, etc. purchased by the company, as well as 31 patent rights (including 29 invention patents and 2 utility model patents) owned by Huafon Thermoplastic that are not recorded in the books, 1 trademark license and 1 domain name.

(2) Selection of evaluation methods

Regarding the amortized balance of various management software, application software, etc. purchased by the company, it was verified that the original amount was correct, the amortization was reasonable, and there was still a corresponding value after the period. After investigation, it was found that the market price was not significantly different from the amount that should be amortized during the remaining benefit period, so the verified book value was used as the assessed value.

For the 31 patent rights (including 29 invention patents and 2 utility model patents), 1 trademark license and 1 domain name that are not recorded in the company's accounts, this evaluation will treat them as a whole intangible asset portfolio and use the income method to evaluate them because they will play a joint role in the company's future operations.

18 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

The income method is a method that uses a certain discount rate to convert the net income into its present value and accumulate it to determine the estimated value on the basis of estimating the expected annual net income of intangible assets in the future. The calculation formula is:

n A

V i

(1+r)i

i1

In the formula: V - value of intangible assets to be estimated

A—net income from intangible assets in year i

r—discount rate

n—income years

Based on the purpose of this evaluation and the specific circumstances of the evaluation object, the evaluator uses the income sharing method to determine the contribution of intangible assets and then determine the evaluation value of the evaluation object. The income sharing method is based on the contribution rate of intangible assets to income, and uses an appropriate sharing ratio to determine the future expected income of the assets being evaluated based on income. This evaluation determines the income life by analyzing the technical performance and economic performance of the intangible assets, combined with the legal life of the intangible assets and other factors; the risk accumulation method is used to analyze and determine the discount rate.

Other non-current assets

Other non-current assets are prepaid long-term asset purchases. Since each asset will have corresponding value or rights after the period, the verified book value is used as the assessed value.

Liabilities

Liabilities include current liabilities and non-current liabilities, including current liabilities such as short-term borrowings, notes payable, accounts payable, contract liabilities, employee compensation payable, taxes payable, other payables and other current liabilities, and non-current liabilities such as deferred income and deferred income tax liabilities. Verification is carried out by checking the consistency between the subsidiary ledger and the general ledger, issuing confirmations for the balances of short-term loans and notes payable, understanding the audit agency's confirmation of balances on the same base date, and reviewing original vouchers and other relevant information.

After verification, for deferred income tax assets caused by deductible temporary differences arising from the provision of bad debt provisions for receivables, this assessment is based on the assessment of the impairment amount of the above-mentioned account balances and the future applicable income tax rate of the enterprise to determine the assessed value of this type of deferred income tax assets; for deferred income tax assets caused by deductible temporary differences arising from the provision for inventory depreciation provisions, this assessment will be carried out on the deposits. For inventories that are assessed for impairment, the assessed value of such deferred income tax assets is determined based on the actual assessed impairment amount combined with the enterprise's future applicable income tax rate. For deferred income tax assets caused by deductible temporary differences arising from government subsidies in deferred income, the assessed value of such deferred income tax assets is determined based on the appraised value of the corresponding subsidies combined with the enterprise's applicable income tax rate.

19 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholders' Equity Value Assessment Project The asset valuation report has been verified. The deferred income is the balance of government subsidies. For some completed projects, there is no need to pay after the period, and they will be assessed as zero; for projects that have not yet been completed, the verified book value will be the assessed value.

Except for the above items, all other liabilities are actual debts that should be borne, and the verified book value is the assessed value.

(2) Introduction to income method

The income method refers to an appraisal method that determines the value of the appraisal object by capitalizing or discounting the expected income of the appraised unit.

Prerequisites for the application of the income method

1． The price investors pay when investing in a certain enterprise will not exceed the present value of the future expected earnings of the enterprise (or a similar enterprise that is equivalent to the enterprise and has the same level of risk).

Be able to make reasonable predictions about the company's future earnings.
Able to reasonably estimate the discount rate corresponding to the risk level of the company's future earnings.

Model of income approach

Combined with the purpose and object of this evaluation, the company's free cash flow discount model is used to determine the company's free cash flow value, and the value of the company's surplus assets and non-operating assets (liabilities) is analyzed to determine the company's overall value, and the company's interest-paying debt value is deducted to determine the company's full shareholder equity value. The calculation formula is: value of all shareholders’ equity = overall value of the enterprise – value of interest-paying debt

The overall value of the enterprise = the estimated free cash flow of the enterprise + the value of surplus assets + the value of non-operating assets - the value of non-operating liabilities

n CFF

Enterprise free cash flow evaluation value  t P (1r )n

(1r)t n n

t1 t

In the formula: n——clear prediction period

CFF - corporate cash flow in year t

r——weighted average cost of capital

t——the tth year in the future

P - value after nth year

Determination of profit period and forecast period

This evaluation assumes that the company's existence period is a perpetual period, so the income period is indefinite. Use the segmentation method to forecast the company's earnings, that is, divide the company's future earnings into clear earnings during the forecast period and clear forecasts

20 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Income after the reporting period. The determination of the clear forecast period takes into account the cyclicality of industry products and the company's own development. Based on the market survey and forecast of the evaluator, it is more appropriate to take 2030 as the dividing point. 4) Amount of income - determination of cash flow

In this evaluation, the expected income caliber adopts the enterprise's free cash flow, and the calculation formula is as follows: Enterprise's free cash flow = profit before interest and tax + depreciation and amortization - capital expenditure - increase in working capital Profit before interest and tax = operating income - operating cost - taxes and surcharges - Selling expenses - Administrative expenses - R&D expenses - Financial expenses (excluding interest expenses) + Other income + Investment income + Gains and losses from changes in fair value + Asset (credit) impairment losses + Asset disposal income + Non-operating income - Non-operating expenses - Income tax expenses 5) Determination of discount rate

1． Discount rate calculation model

The free cash flow evaluation value of the enterprise corresponds to the equity value of the enterprise owners and the equity value of the creditors, and the corresponding discount rate is the weighted average cost of capital (WACC) of the enterprise's capital.

E D

WACC  K  K  1TNX

e ED d ED

In the formula: WACC - weighted average cost of capital

K——Cost of equity capital

K——cost of debt capital

T - income tax rate

D/E——Capital structure

The debt capital cost K uses the one-year loan market quoted interest rate (LPR) on the base date, and the weight uses the enterprise

Obtained by calculating the average debt composition of listed companies in the same industry.

The cost of equity capital is calculated according to the CAPM model commonly used internationally, and the calculation formula is as follows: K R Beta×ERPR

f c

In the formula: K——cost of equity capital

R——Risk-free rate of return

Beta - the systematic risk coefficient of equity

ERP - market risk premium

R——Enterprise-specific risk adjustment coefficient

Calculation process of relevant parameters in the model

21 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

(1) Determination of risk-free rate of return

Treasury yields are generally considered risk-free. The evaluators consulted the Chinese government bond yield curve as of the evaluation base date published by the China National Debt Depository and Clearing Corporation (CCDC) on the website of the China Appraisal Association, obtained the annual yields to maturity of government bonds with remaining years of 10 years and 30 years in the government bond market, and averaged them as the risk-free rate of return. The Chinese government bond yield curve is a curve compiled based on the market interest rate of RMB government bonds issued in mainland China.

(2) Capital structure

Through the Flush iFinD financial data terminal query, the capital structure of relevant listed companies in Shanghai and Shenzhen stock exchanges as of the assessment base date.

There is no significant difference in financing capabilities, financing costs, etc. between the enterprise being evaluated and comparable companies. This time, the average capital structure of listed companies is used as the target capital structure of the enterprise being evaluated.

(3) Equity risk coefficient Beta

Use the Flush iFinD financial data terminal to query the beta coefficients of listed companies in the same industry in my country's securities market, excluding weighted financial leverage adjustments. Through the formula β'=β × 1+1-tD/E



, calculate the financial leverage of Huafeng Thermoplastic Belt

l u

Beta coefficient.

(4) Calculate market rate of return and market risk premium ERP

Selection of ERP index to measure the stock market: To estimate the return on investment in the stock market, you first need to determine an index that measures changes in stock market fluctuations. China currently has many indexes in the Shanghai and Shenzhen stock markets. The evaluators selected the CSI 300 Index as an indicator of investment returns in the A-share market. The time interval selected for the specific index this time is from 2016 to 2025.

After calculating the arithmetic average and geometric average rate of return in each year, and then comparing it with the risk-free rate of return in each year, the ERP of the stock market in each year is obtained.

Since the geometric mean return can better reflect the long-term trend of stock market returns, the arithmetic mean of ERP estimated using the geometric mean return is used as the current risk-return rate of the domestic stock market.

(5) Rc—Determination of enterprise-specific risk adjustment coefficient

The firm-specific risk adjustment coefficient represents unsystematic risk and is the risk return required due to firm-specific factors. It reflects the competitive environment in which the company operates, including external industry factors and internal corporate factors, to reveal the company's industry status, as well as its strengths and weaknesses.

This assessment comprehensively considers operating risks, market risks, management risks and financial risks, and then calculates the enterprise-specific risk adjustment coefficient.

22 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report 3. Calculation of weighted average cost

(1) Calculation of equity capital cost K

K R BetaERPR

f c

In the formula: K——cost of equity capital

R——Risk-free rate of return

Beta - the systematic risk coefficient of equity

ERP - market risk premium

R——Enterprise-specific risk adjustment coefficient

(2) Calculation of debt capital cost K

The debt capital cost K adopts the one-year loan prime rate (LPR) on the base date.

(3) Weighted capital cost calculation

E D

WACC  K  K  1TNX

e ED d ED

Value of non-operating assets (liabilities) and surplus assets

Non-operating assets (liabilities) refer to assets (liabilities) that have nothing to do with the company's operating income. Surplus assets refer to the portion of operating assets that exceed the asset scale required by the company's normal operations, including excess cash and cash equivalents, marketable securities, etc.

The assessed unit has no surplus assets. Non-operating assets include trading financial assets and revolving materials that have been sold after the period. Non-operating liabilities include trading financial liabilities, deferred income and deferred income tax liabilities. The value of the above-mentioned non-operating assets and non-operating liabilities shall be determined based on the appraised value of the corresponding assets in the asset-based method.

Value of interest-bearing debt

As of the valuation base date, the company's interest-paying debt consists of short-term borrowings and their interest. The value is determined based on the assessed value of the corresponding liability in the asset-based method.

8. Implementation process and situation of evaluation procedures

The entire evaluation process includes accepting the entrustment, verifying assets and verification data, evaluating estimates, writing asset evaluation reports, internal audits and formally issuing reports. The specific process is as follows:

(1) Accepting the commission stage

1． Project investigation and risk assessment, clarify the basic matters of assessment business, determine the purpose of assessment, assessment objects and

23 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. shareholders’ equity value assessment project, asset assessment report scope, assessment base date;

Accept the client's entrustment and sign an asset appraisal entrustment contract;
Prepare asset appraisal plan;
Form a project team and provide training to project team members.

(2) Asset verification stage

1． Based on the needs of asset evaluation work, the evaluation agency provides asset evaluation declaration form samples to the evaluated unit and assists it in asset inventory work;

Understand the basic situation of the unit being assessed and the status of the assets to be assessed, and collect relevant information;
Review and verify the asset valuation declaration form and relevant calculation data provided by the assessed unit;
Conduct on-site verification and investigation according to the contents of the asset assessment declaration form, collect and organize relevant information such as asset purchase, construction, operation and maintenance, and conduct investigation and record of asset status;
Collect and sort out the property rights certificates, contracts, invoices and other property certification materials of the assets to be assessed, and verify the ownership of the assets;
Collect and organize industry information to understand the competitive advantages and risks of the evaluated unit;
Obtain the historical income, costs, expenses and other information of the assessed unit, and understand its existing production capacity and development plan;

8． Collect and verify other relevant information required for asset valuation.

(3) Assessment and estimation stage

1． Develop specific assessment methods for various types of assets based on the actual status and characteristics of the assets to be assessed; 2. Gather market information;

Evaluate entrusted assets and calculate their estimated value;
Based on the future income forecast information provided by the assessed unit, combined with the actual situation of the assessed unit, the relevant information is reviewed, the assessment assumptions are reasonably determined, and a future income forecast is formed. Then analyze and compare various parameters, select specific calculation methods, and determine the evaluation results.

(4) Preparation of asset valuation report and internal review stage

1． Analyze and summarize the evaluation results of sub-assets to form evaluation conclusions;

Analyze and compare the calculation results formed by various evaluation methods to determine the evaluation conclusion; 3. Prepare preliminary asset appraisal report;
Conduct internal review of preliminary asset appraisal reports;

24 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report 5. Seek opinions from all parties involved.

(5) Report issuance stage

After soliciting opinions, a formal asset appraisal report will be issued.

9. Evaluate assumptions

1.Basic assumptions

(1) This assessment is premised on changes in the property rights interests of the assets to be assessed. Changes in the property rights interests include all changes and partial changes in the interests.

(2) This evaluation is based on the assumption of open market transactions.

(3) This evaluation is based on the premise that the assessed unit continues to operate according to the predetermined business objectives, that is, all the assets of the assessed unit are still used according to the current purpose and method, and no changes in planning and usage are considered to change the current purpose or the purpose remains unchanged.

(4) This evaluation is based on the premise that the relevant legal documents, various accounting vouchers, account books and other information provided by the evaluated unit are true, complete, legal and reliable.

(5) This assessment is based on the assumption that the macro-environment is relatively stable, that is, there are no major changes in the country's existing macro-economy, politics, policies, and industrial policies in the industry in which the assessed unit is located, and the social economy continues to develop in a healthy and stable manner; the national monetary and financial policies remain current and will not cause major fluctuations in the social economy; national taxation maintains current regulations, and there are no major changes in tax types and tax rates; there are no major changes in the country's current interest rates, exchange rates, etc.; there are no major changes in the current international trade policy environment, and there are no major changes in tax rates in various countries.

(6) This evaluation is based on the assumption that the business environment of the assessed unit is relatively stable, that is, there are no major changes in the social, political, legal, economic and other business environments of the assessed unit's main business locations and business-related areas; the assessed unit can carry out business activities within the established business scope without any policy, legal or man-made obstacles. 2. Specific assumptions

(1) The income forecast in this assessment is based on the development plan and profit forecast provided by the assessed unit while maintaining the current business scope and continuing operations.

(2) It is assumed that the management of the assessed unit is diligent and conscientious, has sufficient management skills and good professional ethics, conducts various businesses legally and compliantly, and the management and main business of the assessed unit remain relatively stable.

(3) It is assumed that the assessed unit’s annual operating income, costs, expenses, updates and renovations, etc., are all incurred evenly within the year.

25 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

(4) It is assumed that the accounting policies adopted by the assessed unit during the earnings forecast period are consistent in all material respects with the accounting policies adopted on the assessment base date.

(5) It is assumed that there are no other force majeure factors and unforeseen factors that will cause significant adverse effects on the assessed unit.

3.Special assumptions

Assuming that the company's income tax policy remains unchanged in future years, that is, Huafon Thermoplastic will continue to enjoy a 15% tax rate in future years, and its wholly-owned subsidiary Dongguan Yifeng will continue to enjoy a 20% tax rate in future years.

According to the requirements of asset valuation, the appraiser determines that these prerequisites are established on the valuation base date. When the above valuation prerequisites and assumptions change, the valuation conclusion will be invalid.

10. Evaluation Conclusion

Asset-based method valuation results

Based on the valuation assumptions disclosed in this report, the valuation results of Huafon Thermoplastic’s assets, liabilities and all shareholders’ equity using the asset-based method are:

The asset book value is 2,576,484,920.23 yuan, the appraised value is 2,892,823,436.44 yuan, the appraised value added is 316,338,516.21 yuan, and the value added rate is 12.28%;

The book value of the liability is RMB 2,068,277,590.19, the assessed value is RMB 2,036,884,214.91, the assessed impairment is RMB 31,393,375.28, and the impairment rate is 1.52%;

The book value of all shareholders' equity is 508,207,330.04 yuan, the appraised value is 855,939,221.53 yuan, the appraised value added is 347,731,891.49 yuan, and the value added rate is 68.42%.

The asset evaluation results are summarized in the following table:

Unit: RMB Book value Appraisal value Increase or decrease Value-added rate % item

A B C=B-A D=C/A*100

Current assets 2,025,001,803.65 2,043,387,866.15 18,386,062.50 0.91
Non-current assets 551,483,116.58 849,435,570.29 297,952,453.71 54.03 Among them: long-term equity investment 2,000,000.00 2,634,589.94 634,589.94 31.73 Fixed assets 480,414,589.09 586,858,940.00 106,444,350.91 22.16 Construction in progress 33,305,111.61 33,305,111.61

26 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. shareholders’ equity value assessment project Asset valuation report Book value Appraisal value Increase or decrease value Value-added rate % project

A B C=B-A D=C/A*100 Intangible assets 20,199,181.79 211,072,694.65 190,873,512.86 944.96 Among them: intangible assets -

18,341,987.14 74,446,900.00 56,104,912.86 305.88 —Land use rights

Intangible assets—

1,857,194.65 136,625,794.65 134,768,600.00 7,256.57 —Other intangible assets

Other non-current assets 15,564,234.09 15,564,234.09

Total assets 2,576,484,920.23 2,892,823,436.44 316,338,516.21 12.28

3. Current liabilities 2,006,376,725.25 2,006,376,725.25

Non-current liabilities 61,900,864.94 30,507,489.66 -31,393,375.28 -50.72 Total liabilities 2,068,277,590.19 2,036,884,214.91 -31,393,375.28 -1.52 Total shareholders’ equity 508,207,330.04 855,939,221.53 347,731,891.49 68.42 The evaluation results are obtained based on the above evaluation work. For details, see the evaluation schedule.
Income method evaluation results

Based on the valuation assumptions disclosed in this report, the value of all equity interests of Huafeng Thermoplastics shareholders using the income method was valued at RMB 2.707 billion.

Comparative analysis of the evaluation results of the two methods and determination of the evaluation value

The value of all equity interests of Huafon Thermoplastics shareholders using the asset-based method is RMB 855.9392 million, and the value using the income method is RMB 2.707 million. The difference between the two is RMB 1.8510608 million, with a difference rate of 68.38%.

After analysis, the evaluators believed that the implementation of the above two evaluation methods was normal and the parameter selection was reasonable. The asset-based method is based on the ongoing operation and assumes the replacement of various production factors. It uses appropriate methods to assess and estimate the value of each factor asset of the enterprise based on the specific circumstances of the factor assets, and then adds them up, and then deducts the evaluation value of the relevant liabilities to obtain the evaluation value of all shareholders' equity under the asset-based method, which reflects the replacement value of the enterprise based on the existing assets. Due to the inherent characteristics of the asset-based method, this method is used to determine the value of all shareholders' equity of the company by evaluating the assets and liabilities declared by the evaluated unit, and for the company's undeclared operating qualifications, industry competitiveness, human resources, customer resources, management efficiency, goodwill and other intangible assets Or resources, because it is difficult to separate the contribution of the above-mentioned intangible assets or resources to future income, they are not evaluated separately. The asset-based method evaluation results cannot cover the value of all the assets of the enterprise, which leads to differences in the evaluation results under the asset-based method and the income method.

The income method is to reasonably predict the future income of the enterprise and its corresponding risks from the perspective of the future development of the enterprise.

27 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholders' Equity Value Assessment Project The asset appraisal report comprehensively assesses the value of all shareholders' equity. During the assessment, it not only considers the impact of factors such as whether each sub-asset is reasonably and fully utilized in the enterprise and whether it makes its due contribution when combined together, but also considers the impact of factors such as business qualifications, industry competitiveness, human resources, customer resources, management efficiency, goodwill and other factors that cannot be considered by the asset-based method on the value of all shareholders' equity. The value obtained by using the income method to evaluate is a quantification of the profitability of the company's overall assets, and using the income method to evaluate can truly reflect the value of the company's overall assets. The income method can make up for the shortcomings of the asset-based method, which only evaluates from the perspective of the sum of the values of individual assets and fails to fully consider the overall profitability generated by the overall assets of the enterprise. It avoids the shortcomings of the asset-based method of underestimating the value of enterprises with good benefits or good development prospects, and overestimating the value of enterprises with poor benefits or poor development prospects. The appraisal value derived from the income method can more scientifically and reasonably reflect the value of all equity interests of the company's shareholders.

Therefore, this evaluation ultimately adopts the income method evaluation result of RMB 2,707,000,000 as the evaluation value of all equity interests of Huafeng Thermoplastic shareholders.

11. Special Notes

The following matters are beyond the professional level and ability of our company's appraisers to evaluate and estimate, but these matters may indeed affect the appraisal conclusion. Users of this asset appraisal report are reminded to pay special attention to this:

In the evaluation of the value of all equity interests of Huafon Thermoplastics shareholders, the evaluators conducted necessary checks on the legal ownership information and sources of the evaluation objects and related assets provided by Huafon Thermoplastics, and found no flaws in the ownership data of the evaluation objects and related assets. It is the responsibility of Huafon Thermoplastic to provide true, legal and complete legal ownership information of relevant assets. It is the responsibility of the evaluator to make necessary checks on the information provided by Huafon Thermoplastic. The asset evaluation report cannot be used as a confirmation and guarantee of the legal ownership of the evaluation object and related assets. If the assessed unit does not own the ownership or other relevant rights of the aforementioned assets, or there are partial restrictions on the ownership or other relevant rights of the aforementioned assets, the evaluation results of the aforementioned assets and the conclusion of the evaluation of the value of all equity interests of Huafon Thermoplastic shareholders will be affected.
This evaluation uses the audit report No. Dehao Shenzi [2026] 00004791 issued by Beijing Dehao International Accounting Firm (Special General Partnership) on September 2, 2026. According to Article 12 of the "Asset Appraisal Practice Standards - Enterprise Value": Asset appraisal professionals have analyzed and judged the use requirements of financial statements based on the appraisal method adopted, but it is not the responsibility of asset appraisal professionals to express professional opinions on whether the relevant financial statements fairly reflect the financial status, operating results and cash flows of the current period on the appraisal base date.

28 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

As of the assessment base date, the assessed unit has the following asset pledges, asset leases and other matters, which may have an impact on related assets, but it is difficult to fully consider them in this assessment:

(1) Asset pledge matters

Base Day Guarantee Procedures

Pledgee Pledgee Name of the pledged property Pledge term The company’s remaining financing number

Time Deposits (Accounted to Bank Deposit Section

1 Huafeng Thermoplastic Project, book value 53,000,000.00 December 2024

Zheshang Bank Co., Ltd.

Yuan) From 27th to 2026, the balance of notes payable is Wenzhou Co., Ltd.

December 27, 2018 Ruian Branch [Note] 287,639,081.66 yuan bank acceptance bill (account receivable

day

2 Huafeng Thermoplastic financing items, total book value

306,606,328.40 yuan)

China Construction Bank Bank Acceptance Bill Margin (Account List

The balance of notes payable is 3 Huafeng Thermoplastic Co., Ltd. Other monetary funds, book value /

Ruian Branch 379,265,258.56 yuan 37,926,525.86 yuan)

Bank of China Co., Ltd. Bank Acceptance Bill Margin (Account List

The balance of notes payable is 4 Huafeng Thermoplastic Co., Ltd. Ruian Other monetary funds, book value /

133,663,388.75 yuan city branch 13,366,338.88 yuan)

Agricultural Bank of China Bank Acceptance Bill Margin (Account List

The balance of notes payable is 5 Huafeng Thermoplastic Co., Ltd. Other monetary funds, book value /

109,349,037.36 yuan Ruian City Sub-branch 10,934,903.73 yuan)

China Merchants Bank Bank Acceptance Bill Margin (Account List

The balance of notes payable is 6 Huafon Thermoplastic Co., Ltd. Wenzhou Other monetary funds, book value /

Ruian Sub-branch 30,000,000.00 yuan 3,000,000.00 yuan)

Forward (swap) settlement and sales of China Construction Bank Foreign currency swap business margin (account

Changes in fair value of foreign exchange 7 Huafeng Thermoplastic Co., Ltd. Other monetary funds, book value /

The balance of profit and loss is Ruian Branch 62,160,000.00 Hong Kong dollars)

2,376,802.82 yuan Note: According to the "Asset Pool Pledge Guarantee Contract" signed between Huafon Thermoplastic and Zheshang Bank Co., Ltd. Wenzhou Ruian Branch, Huafon Thermoplastic uses the pledged assets in the asset pledge pool and the asset pool guarantee The margin in the security deposit account provides a guarantee for the debts incurred by Huafeng Thermoplastic in handling various businesses with the bank from December 27, 2024 to December 27, 2026, with a maximum financing limit of no more than 400 million yuan.

(2) Asset leasing matters

House rental

Order area (square

Lessee Lessor Lease address Purpose Lease term

No. square meters)

Huafon Group has Economic Development of Ruian City, Zhejiang Province January 1 to 1, 2025 Huafeng Thermoplastic 1,443.38 Office

Co., Ltd. No. 1688, Development Zone Avenue, Zhejiang Huafenghe on December 31, 2026 Ruian Economy, Ruian City, Zhejiang Province

January 1 to 2, 2026 Huafeng Thermoplastic Resin Co., Ltd. 6,846.09 3788 Development Zone Avenue, Development Zone Warehousing

Company No. Building on December 31, 2026

29 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report Preface Area (Sq.

Lessee Lessor Lease address Purpose Lease term

No. square meters)

Luo, Jinjiang City, Quanzhou City, Fujian Province

Shanlanpu Lanfeng City Garden 7

April 1 to 3, 2020 Huafeng Thermoplastic Dai Linghai Building 39.9, Apartment B, Apartment C Commercial Office, Warehousing

No. C-2-03, second floor, Room C-2-03, July 31, 2028

storefront

Luo, Jinjiang City, Quanzhou City, Fujian Province

Shanfupu Lanfeng City Garden 7 April 1 to 4, 2020 Huafeng Thermoplastic Zhang Lifen 134.8 Office, warehousing

Building, Apartment B, Apartment C Business Store in Room C-2-02 on July 31, 2028

Fupu Comprehensive Building, Jinjiang City, Fujian Province

September 1 to 5, 2025 Huafeng Thermoplastic Xia Chengwang 249.4 Building 5, Lanfeng City Garden, Development Zone, Residential

August 31, 2026 Room 1-2C

From August 10, 2025 to Economic Development of Dezhou City, Shandong Province

August 9, 2026 (has been 6 Huafeng Thermoplastic Zhang Qian 192 District Xingkai International Building 6 Unit 2 Residential

Lease renewal until August 9, 2027)

July 5, 2025 to 666 Chuangye Road, Kunshan City, Jiangsu Province

July 4, 2026 (7 Huafeng Thermoplastic Wang Yong No. 180 Yoshida International Plaza Building 4 Building 1 Residential

Renewed lease to July 2027, Unit 1901

4th)

666 Chuangchuang Road, Kunshan City, Jiangsu Province

May 1 to 8, 2026 Huafeng Thermoplastic Liu Hanlin No. 180.99 Yoshida International Plaza Building 4 Residential

April 30, 2027 Room 701

Run, Keqiao District, Shaoxing City, Zhejiang Province March 15 to 9, 2026 Huafeng Thermoplastic Sun Linchong 180.5 Residential

Room 1102, Building 20, Ze Courtyard, Guangming District, Shenzhen City, Guangdong Province on March 14, 2027

August 5 to 10, 2025 Huafeng Thermoplastic Zhong Baoling 135.8 Street Tianhu 1st Road No. 39 Fengjing Residential

August 4, 2026 [Note] Room 3302, Building A, Building 1, Ruifu

Fupu Comprehensive Building, Jinjiang City, Fujian Province

April 7 to 11, 2026 Huafeng Thermoplastic Ke Yanyu 150.8 Building 3, Lanfeng City Garden, Development Zone, Residential

April 6, 2027 3D Room

Nanhai District, Foshan City, Guangdong Province

February 12 to 12, 2026 Huafeng Thermoplastic Kuang Huifeng 396.17 Li Zhen Nanhai Country Garden Sunshine Flower Residential

No. 110, Hai 11th Street, February 28, 2028

Dalingshan Town, Dongguan City, Guangdong Province

Dongguan Kesuijin

Building 10, No. 52 Jianshe Road, Jinjue Village March 1 to 13, 2026 Dongguan Yifeng Valley Industrial Park Management 5,600 Industrial

Area C (formerly Taisheng Furniture Production D Co., Ltd. on April 30, 2033

workshops) and 15 dormitories in 20 buildings

Note: The lease was not renewed after expiration, and Huafeng Thermoplastic has re-signed a house lease contract: the lessor is Yuan Fengjian, and the lease address is Jinhong Mingzhu 4502, northeast of the intersection of Dongchang Road and Guangqiao Road, Jiazitang Community, Fenghuang Street, Guangming District, Shenzhen, Guangdong Province. The area is 128.22 square meters, and the purpose is residential. The lease period is from August 8, 2026 to August 7, 2027.

30 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

Equipment rental

Serial number Lessor Lessee Lease asset Lease term

Zhejiang Huafeng Synthetic Resin Co., Ltd. January 1, 2026 to December 2026 1 Huafeng Thermoplastic Storage Tank

Company Month 31

Regarding the above-mentioned pledge matter, the impact of this matter was not considered in this assessment; as for item 13 of the above-mentioned house lease, since it has been reflected in Dongguan Yifeng's "right-of-use assets", "non-current liabilities due within one year" and "lease liabilities" items, it has been appropriately considered in this asset-based method assessment, and other lease matters have not been considered in the asset-based method; the above-mentioned house and equipment leasing matters have been appropriately considered in the income method assessment.

The assessed unit and its subsidiaries promise that, as of the assessment base date, except for the above matters, there are no other contingencies and leasing matters such as asset mortgages, pledges, external guarantees, pending litigation, major financial commitments, etc.

In this evaluation, the evaluators did not conduct technical testing on the technical parameters and performance of various equipment on the evaluation base date. The evaluators made judgments through on-site surveys on the premise that the relevant technical information and operation records provided by the evaluated unit are true and valid.
In this evaluation, the evaluators did not perform technical inspections on the hidden engineering and internal structures (parts that cannot be observed with the naked eye) of various buildings and structures. The evaluators made their judgments through on-site surveys without the use of any testing instruments, assuming that the relevant engineering information provided by the evaluated unit is true and valid.
In this evaluation, the identified bad and bad debts, liabilities that do not need to be paid, etc. will be evaluated for increased or decreased value. If the enterprise needs accounting treatment, it should be submitted for approval according to the prescribed procedures.
During the asset-based method assessment, except for inventory goods and in-stock turnover materials, the relevant tax effects are not considered for the increases or decreases in the assessment of other assets.
This valuation result is based on the purpose of this valuation and the current market value of all shareholders’ equity determined based on the assumptions disclosed in the report. It does not take into account the impact of special transaction methods that may increase or decrease the price paid on the valuation value, nor does it take into account changes in the macroeconomic environment and the occurrence of natural forces. and other force majeure effects on asset prices; the value of the same asset in different markets may differ; the object of this evaluation is the value of all shareholders' equity, and the value of some shareholders' equity is not necessarily equal to the product of the value of all shareholders' equity and the equity ratio. There may be a premium for control rights or a discount for lack of control rights.
When evaluating the value of all shareholders’ equity this time, the appraiser made assumptions that the appraiser deemed necessary and reasonable based on the current actual situation, and listed them in the asset appraisal report. These assumptions are the prerequisites for appraisers to conduct asset appraisals. When the future economic environment and the above assumptions change significantly, the evaluator will not be responsible for

31 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd.’s shareholder’s equity value assessment project is responsible for the asset assessment report deriving different asset assessment conclusions due to changes in prerequisites.

This appraisal agency and appraisers are not responsible for the legality, completeness, and authenticity of the business license, capital verification report, audit report, warrants, accounting vouchers and other evidence provided by the asset appraisal client and the appraised unit.
The appraisal agency and appraisers do not bear relevant responsibilities for other defects that may exist in this appraisal that may affect the appraisal conclusion. If the appraised unit does not make special instructions when conducting asset appraisals and the appraisers generally cannot learn about them based on their professional experience, the appraisal agency and appraisers do not bear relevant responsibilities.

Users of asset appraisal reports should pay attention to the impact of the above special matters on the appraisal conclusion.

12. Restrictions on the use of asset evaluation reports

This asset valuation report can only be used for the valuation purposes and purposes stated in the asset valuation report.
If the client or other user of the asset appraisal report fails to use the asset appraisal report in accordance with the provisions of laws, administrative regulations and the scope of use stated in the asset appraisal report, the asset appraisal agency and the asset appraiser shall not be held responsible.
Except for the client, other users of the asset valuation report stipulated in the asset valuation entrustment contract, and users of the asset valuation report stipulated in laws and administrative regulations, no other institution or individual can become the user of the asset valuation report.
Users of asset valuation reports should correctly understand the valuation conclusions. The appraisal conclusion is not equivalent to the achievable price of the appraisal object, and the appraisal conclusion should not be considered as a guarantee for the achievable price of the appraisal object.
The validity period of this assessment conclusion is one year from the assessment base date (inclusive). When the valuation purpose is achieved within one year after the valuation base date, the valuation conclusion can be used as a reference for the transaction price. If it exceeds one year, the valuation conclusion needs to be re-determined.
If there are major events after the date of the asset valuation report and within the validity period, this valuation conclusion cannot be used directly. If the quantity of assets changes, the value of the assets should be adjusted accordingly based on the original valuation method; if the asset price standards change significantly and have a significant impact on the valuation of the assets, the client should promptly hire an valuation agency to re-determine the valuation results.
When policy adjustments have a significant impact on the assessment conclusion, the assessment base date should be re-determined for assessment.
If all or part of the content of the appraisal report is excerpted, quoted or disclosed to the public media, the appraisal agency must review the relevant content, unless otherwise stipulated by laws, regulations or otherwise agreed by the relevant parties.

32 Kunyuan Asset Appraisal Co., Ltd. Huafeng Chemical Co., Ltd. plans to issue shares and pay cash to purchase assets.

Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd. Shareholder Equity Value Assessment Project Asset Assessment Report

13. Asset Assessment Report Day

The date of this asset evaluation report is September 2, 2026.

Asset appraiser of Kunyuan Asset Appraisal Co., Ltd.: Wang Chuanjun

Asset Appraiser: Zhou Min

Asset Appraiser: Wu Xiong

33 Kunyuan Assets Appraisal Co., Ltd.