Alibaba's promotion fees are not calculated on an annual basis. The promotion fee is calculated as follows: "Promotion fee base × promotion fee ratio applicable to the product".

(1) The "promotion fee base" is based on the actual transaction price when the product promoted by the merchant through Ali Tuike is successfully purchased (referring to the Alipay payment amount under the transaction order involving the corresponding promoted product, excluding shipping costs).

(2) The promotion fee ratio applicable to the product is the commission ratio corresponding to the promoted product when the buyer places an order.

(3) Alibaba will, in accordance with the provisions of the "Ali Tuike (Pin Promotion) Software Product License Agreement", directly deduct the corresponding promotion fee from the transaction amount collected by the merchant for the corresponding promoted product transaction order when the transaction is successful based on the merchant's entrustment.