In response to a regulatory inquiry, SWANCOR clarified that it has recently assembled a research and development (R&D) team dedicated to embodied intelligent robots. This team is primarily focused on the preliminary technological exploration and development of robotic products tailored for personal and household use. The products currently on display are all R&D prototypes. The entire business remains in the R&D phase, with no sales revenue or profits generated to date. Furthermore, there are inherent uncertainties surrounding the subsequent R&D process, commercialization efforts, and market expansion strategies.

Chairman Mr. Peng Zhihui exercises his authority in strict compliance with laws and regulations, and he does not engage in specific R&D tasks. His market promotion activities are conducted independently of R&D operations, ensuring no breach of the listed company's independence commitments. SWANCOR is committed to continually enhancing its governance framework, ensuring that directors and senior executives adhere strictly to their responsibilities, and upholding the company's independence and standardization.

Additionally, SWANCOR's new product, 'Q1,' and Zhiyuan Robotics' related offerings exhibit minimal overlap in their application domains. Consequently, they do not constitute substantial horizontal competition. Currently, there is no other cooperation or authorization between the two entities in areas such as technology or branding that necessitates disclosure.