Hillhouse Frontier Holdings ^{Filed Terms, Nasdaq: HIFI}

We operate a vehicle export business, specializing in sourcing premium vehicles in the U.S. and facilitating their shipment to a client in Hong Kong, who distributes the vehicles to its clients in the PRC. In 2023 and 2024, we primarily sourced our brand-new U.S. manufactured vehicles through a network of purchasing agents who purchase the cars on our behalf from brand name authorized dealers. In the first quarter of 2025, we only sourced vehicles from independent dealers, which offered more favorable pricing than authorized dealerships. Under the authorized dealerships, we make payment directly to the authorized dealerships and arrange for third party intermodal trucking companies, which specialize in freight transportation between ports, rail terminals and inland logistics hubs, to pick up the purchased vehicles from the authorized dealerships. The titles to the vehicles are initially in the name of the purchasing agents with the understanding that the purchasing agents are acting as our proxies and that we actually own the purchased vehicles. To our knowledge, this practice has not been tested in a court proceeding, nor is it based on a formal legal opinion. In addition to our purchases from authorized dealerships, we also buy vehicles directly from independent dealers – particularly when specific models are unavailable through our typical channels due to inventory limitations, regional allocation constraints, or brand-specific distribution strategies.