Inlif Unit Ewatt Robot Equipment Enters Three-Year, $30M Framework Agreement For Product Procurement And Supply Cooperation With Jinjiang Hengsheng Toys

Beginning on the date of execution, the parties intend to advance product procurement and supply in phases, targeting approximately US$5 million in each six-month period, thereby establishing a long-term and stable product supply cooperation mechanism.

This cooperation represents an important step in the Company’s efforts to strengthen industrial collaboration, expand product distribution channels, and support sustainable business growth. By establishing a long-term cooperative relationship between its operating subsidiary and Heng Sheng Group, the Company expects to further align product supply with market demand, expand business opportunities, and create new opportunities for the development of its principal business and the growth of its overall operations.

1. US$30 Million Planned Cooperation Value Establishes a Three-Year Supply Framework

According to the framework agreement signed by both parties, the total planned cooperation value over the next three years is US$30 million, with the cooperation period commencing on the date of execution. Based on the parties’ preliminary plans, product procurement and supply are expected to be advanced in approximately US$5 million increments every six months, across six phases over the three-year period. Specific product categories, procurement quantities, order values, and delivery schedules will be further determined based on the parties’ actual business requirements. The planned cooperation value of US$30 million and the phased arrangement of approximately US$5 million per six-month period are preliminary plans based on the parties’ current business conditions and do not constitute a minimum purchase commitment by Heng Sheng Group or a minimum supply commitment by Ewatt. Specific procurement and supply will be subject to purchase orders or specific business contracts subsequently confirmed by the parties.

The cooperation will primarily focus on Ewatt’s existing products and related business operations, covering product procurement, manufacturing and supply, as well as supporting services. Ewatt will coordinate its production and supply resources in accordance with actual order requirements, manufacturing capacity, and delivery schedules, and will actively work toward implementing the planned cooperation in each phase.

2. Partnering with Heng Sheng Group to Strengthen Industrial and Market Channel Synergies

Jinjiang Hengsheng Toys Co., Ltd., the Company’s cooperation partner, is affiliated with HENG SHENG HOLDING GROUP COMPANY LIMITED (KOSDAQ: 900270), a company listed on the Korea Exchange’s KOSDAQ market. The group has established a foundation in industrial resource integration and market development.

Through this cooperation, the Company expects to expand its network of quality industrial partners and promote synergies between its operating subsidiary and its partner in product procurement, market distribution channels, and business resources. Both parties intend to leverage their respective strengths, strengthen business coordination and communication, and further expand the market applications and sales opportunities for the Company’s products, laying a foundation for a long-term and stable commercial relationship.

3. Deepening Product Supply Cooperation to Support Sustainable Business Growth

Under the three-year cooperation framework, Ewatt intends to advance product procurement and supply arrangements in approximately US$5 million increments every six months. Ewatt will progressively implement specific business activities while maintaining a focus on production planning, quality management, supply assurance, and delivery coordination. Production resources will be reasonably allocated in accordance with subsequent actual orders and arrangements agreed upon by both parties to ensure the orderly execution of the cooperation.

The Company’s management stated that the establishment of this US$30 million, three-year product supply cooperation framework between its operating subsidiary and Heng Sheng Group represents an important development in expanding market channels, deepening industrial partnerships, and advancing the Company’s principal business operations. Looking ahead, the Company will continue to strengthen business collaboration with industrial partners, actively advance procurement and supply arrangements across each phase, and continuously improve its product supply capabilities and market service standards. The Company aims to progressively implement the cooperation plan, support sustainable business development, and contribute to long-term shareholder value creation.