Ann: Response to ASX Price Query, page-78

Question to ChatGPT: Elaborate your translation about "After completing the first-stage placement and the reorganization of the Board of Directors and management, AEV will become a subsidiary controlled by the Company."

Answer by ChatGPT:

Key Points about "Control" in the Announcement:

1. Achieving Control Through Increased Shareholdings:

   • Original Chinese: “实现对 AEV 控股”
   • Translation: “Achieve control over AEV”
   • Context: This indicates that Hebang Hong Kong aims to increase its shareholdings in AEV to gain significant influence or a controlling stake. The term "控股" here refers to increasing shareholdings to a level where Hebang Hong Kong can influence key decisions at AEV.

2. AEV Becoming a Controlled Subsidiary:

   • Original Chinese: “AEV 将成为公司控股子公司”
   • Translation: “AEV will become a controlled subsidiary of the Company”
   • Context: This means that after the investment, AEV will be a subsidiary where Hebang Hong Kong has significant shareholdings, leading to substantial influence over AEV’s management and decisions. "Controlled subsidiary" means Hebang Hong Kong will hold a significant portion of shares, providing considerable control over AEV, though not necessarily absolute control.

3. Reorganization of the Board and Management:

   • Original Chinese: “在第一阶段配售完成后，和邦香港将对 AEV 董事会进行改组，获得三个董事席位”
   • Translation: “After the first stage of placement is completed, Hebang Hong Kong will reorganize the AEV Board of Directors, obtaining three board seats”
   • Context: This reflects that Hebang Hong Kong will have the power to influence AEV’s governance structure by appointing directors and key executives, further solidifying its controlling shareholdings.

Explanation of "Control" in the Context:

• "控股" (Kònggǔ) generally refers to holding a significant or majority shareholding that allows for substantial influence over a company’s decisions and management.
• "Controlled Subsidiary" means the company (AEV) will be a subsidiary where Hebang Hong Kong has enough shareholding to exercise significant influence, but it does not imply complete or absolute control over every aspect of AEV’s operations.

In Summary:

• "控股" refers to achieving a significant level of shareholding that provides substantial influence, not necessarily absolute control.
• "Controlled subsidiary" indicates that Hebang Hong Kong will have significant influence over AEV’s operations and decisions due to its shareholding, but it doesn’t imply total control.

Thus, the term "control" used in the translation aligns with the notion of substantial influence through increased shareholdings and reorganization of the board, rather than implying complete ownership or unilateral control.