Sinomach Precision Industry Co.Ltd(002046) : special description of deposit, loan and other financial businesses involving related party transactions of financial companies

About Sinomach Precision Industry Co.Ltd(002046) 2021

Special instructions on deposits, loans and other financial businesses involving related party transactions of financial companies Xin Kuai Shi Bao Zi [2022] No. zg10878 Sinomach Precision Industry Co.Ltd(002046) all shareholders:

We have audited the financial statements of Sinomach Precision Industry Co.Ltd(002046) (hereinafter referred to as “the company”) in 2021, including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement, the consolidated and parent company’s cash flow statement, the consolidated and parent company’s statement of changes in owner’s equity and the notes to relevant financial statements, And issued an unqualified audit report with the report number of xksbz [2022] No. zg10836 on April 11, 2022.

The management of your company has prepared the attached summary sheet of your company’s deposits, loans and other financial businesses involving the related party transactions of the financial company in 2021 (hereinafter referred to as the “summary sheet of related party transactions of the financial company”) in accordance with the relevant provisions of the self regulatory guidelines for listed companies of Shenzhen Stock Exchange No. 7 – transactions and related party transactions.

It is the responsibility of the management of your company to prepare the summary of related party transactions of the financial company and ensure its authenticity, legitimacy and integrity. We checked the information contained in the summary of related party transactions of the financial company with the accounting data we reviewed when we audited the financial statements of your company in 2021 and the relevant contents disclosed in the audited financial statements, and found no inconsistency in major aspects.

In order to better understand the situation of your company’s deposits, loans and other financial businesses involving the related party transactions of the financial company in 2021, the summary of related party transactions of the financial company should be read together with the audited financial statements.

This report is only for the purpose of disclosing the 2021 annual report of your company, and shall not be used for any other purpose. China Certified Public Accountants of Lixin Certified Public Accountants (special general partnership):

Shanghai, China Certified Public Accountant:

April 11, 2002

Sinomach Precision Industry Co.Ltd(002046) 2021

Summary of deposits, loans and other financial businesses involving related party transactions of financial companies

Financial companies associated with the company: Guoji Finance Co., Ltd

Unit: Yuan

The beginning balance of the project in 2021 is increased in the current period and decreased in the current period. The interest and handling fee paid by the interest charged by the ending balance in 2021

1、 Deposit in Guoji Finance Co., Ltd. 516110364191480848595930148075302315151706609198278362193

2、 Loan from Guoji Finance Co., Ltd. 580000 China Vanke Co.Ltd(000002) 80000 Shenzhen Guohua Network Security Technology Co.Ltd(000004) 900000 Shenzhen Nanshan Power Co.Ltd(000037) 0000 Ping An Bank Co.Ltd(000001) 408733334

3、 Other financial business with Guoji Finance Co., Ltd

(I) notes payable 2630204 Hefei Fengle Seed Co.Ltd(000713) 2804993537138774443916212491538759

(I) lease liabilities 31058574485165319362589325512113635241

Less: lease liabilities due within one year 516531831536973110516531831536973110

Note: in addition, China Machinery Industry Group Co., Ltd. entrusted Guoji Finance Co., Ltd. to issue a loan of 150 million yuan to the company, resulting in interest expense of 17645833 yuan.

This summary has been approved by the board of directors on April 11, 2022.

Legal representative: person in charge of Accounting: person in charge of accounting organization (person in charge of Accounting):

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