Small public offering conditions

1. According to Baidu's legal information query, the conditions for issuing small public offerings are that the limited net assets of shares are not less than 30 million, and the net assets of limited liability companies are not less than 60 million.

2. The accumulated balance of bonds that have been publicly issued for more than one year shall not exceed 40% of the net assets, including publicly issued corporate bonds, corporate bonds and related bonds of the issuer's subsidiaries.

3. Excluding other debt financing instruments and private debts.

4. (According to the feedback from the Exchange, 40% of the public bonds that have been approved but not yet issued should be included. ) The average distributable profit in the past three years is enough to pay the interest of corporate bonds for one year. The distributable profit refers to the net profit attributable to the parent company in the consolidated statements.

5. The funds raised cannot be used to cover losses and unproductive expenditures.