Statement on the Usage Restrictions of Non-Automotive Grade Products

To: All Valued Customers and Partners

Nanjing Sunlord Electronics Corporation Ltd. and its subsidiaries (hereinafter collectively referred to as the “Company”) are distributors of electronic components, providing customers with a variety of products and related services. In order to safeguard the long-term cooperative relationship between the parties and protect the legitimate rights and interests of both sides, the Company hereby issues this formal statement regarding the intended use of the products you procure and the associated risks.

I. Important Notice

Product Classification and Standards

Unless explicitly specified in the manufacturer’s product specifications that the electronic component is an automotive-grade component (“Automotive Grade Product”) qualified for use in automotive equipment and applications, the product shall be deemed a Non-Automotive Grade Product (“Non-Automotive Product”).

Restricted Applications

Non-automotive products shall not be used in any automobiles, motorcycles, rail transit vehicles, or other equipment and applications that are required to comply with automotive electronic standards.

Potential Risks

Non-Automotive Products differ substantially from Automotive Grade Products in terms of product design, raw material control, and process management. Forcibly applying Non-Automotive Products in automotive environments may result in, inter alia:

- Product performance degradation, malfunction, or failure;

- Malfunction of vehicle parts or system functions in which such products are embedded;

- Vehicle breakdowns, property damage, and even personal injury or safety incidents;

- Consequential losses, costs, claims, reputational damage, and other adverse outcomes.

II. Disclaimer of Liability

In light of the foregoing notice, the Company hereby expressly states as follows:

1. The Company has duly provided clear and adequate notice to your organization regarding the non-automotive nature of the products, their restricted applications, and the risks involved.

2. Your organization undertakes and warrants that the Non-Automotive Products procured shall not be applied in any of the restricted applications set forth herein. As the final user or integrator of the products, your organization bears the sole responsibility for investigating, verifying, and determining the ultimate application scenarios of the products, and for notifying any downstream customers or end-users of the associated risks.

3. Should your organization or its downstream customers nevertheless utilize Non-Automotive Products in restricted applications:

 - All consequences directly or indirectly arising therefrom (including but not limited to product failure, property damage, personal injury, claims, expenses, disputes, legal liabilities, recalls, etc.) shall be borne solely by your organization;

   - Except in cases where a competent court or arbitral tribunal issues a final and binding judgment confirming that the product itself contains inherent defects unrelated to the application scenario, the Company shall not assume any liability whatsoever, whether contractual, tortious, statutory, or otherwise;

   - Your organization shall be responsible for resolving any disputes arising therefrom and shall indemnify and hold harmless the Company against any losses thereby incurred (including, without limitation, attorneys’ fees and litigation expenses).

III. Customer Acknowledgment and Undertaking

By continuing to place orders, or accept delivery of products from the Company, your organization shall be deemed to have received, reviewed, and fully understood the entirety of this Statement, and to have undertaken to comply with its terms.

This Statement shall constitute an integral part of any existing or future contracts and purchase orders executed between the parties and shall apply thereto unless otherwise expressly agreed in writing by both parties. In the event of any inconsistency between this Statement and any contract or purchase order, this Statement shall prevail unless the parties have otherwise agreed in writing.

Nanjing Sunlord Electronics Corporation Ltd.

Date: September 8, 2025