ZMFY Automobile Glass Services Limited recently, the Board discovered that Mr. Lu Yongmin ("Mr. Lu"), the executive director of the Company and legal representatives and directors of various subsidiaries of the Company, has entered into certain guarantees on behalf of Shangshi Kuaiche Corporate Service (Hengqin) Company Limited, an indirect wholly-owned subsidiary of the Company, as guarantor to secure certain debts owed by a company which is not a member of the Group (the "Alleged Guarantees") without proper authorization from the Group and without notifying the Group. The Group has been making enquiries on the Alleged Guarantees with Mr. Lu. In light of the unauthorised act of Mr. Lu in relation to the Alleged Guarantees, the Board has temporarily suspended Mr. Lu from all executive position, functions and duties held by Mr. Lu in the Group with effect from 12 March 2022.

Meanwhile, the Company is taking action to remove Mr. Lu as director and legal representative of various subsidiaries of the Company.