CHANGHONG MEILING CO., LTD.

MELING美菱

Annual Report 2025

Section I Important Notice, Contents and Interpretation

Board of directors, all directors and senior executives of Changhong Meiling Co., Ltd. (hereinafter referred to as the Company) hereby confirm that there are no any fictitious statements, misleading statements, or important omissions carried in this report, and shall take all responsibilities, individual and/or joint, for the reality, accuracy and completion of the whole contents.

Mr. Li Xiaodong, Chairman of the Company, Mr. Yang Bing, person in charge of accounting work and Mr. Hu Xiangfei, person in charge of accounting organ (accountant in charge) hereby confirm that the Financial Report of 2025 Annual Report is authentic, accurate and complete.

The Company did not have directors and senior executives of the Company could not guarantee the reality, accuracy and completion of the whole contents or have objections.

All the directors attended the board meeting to deliberating the Report.

Modified audit opinions notes

□ Applicable √ Not applicable

Pan-China Certified Public Accountants LLP issued a standard unqualified audit opinion for the Company’s 2025 annual financial report.

Significant internal control deficiency notes

□ Applicable √ Not applicable

During the reporting period, the Company had no significant internal control deficiencies.

Risk warning of concerning the forward-looking statements with future planning involved in the annual report

√ Applicable □ Not applicable

Concerning the forward-looking statements with future planning involved in the Report, they do not constitute a substantial commitment for investors, investors and the person concerned should maintain adequate risk awareness, furthermore, differences between the plans, forecast and commitments should be comprehended. Investors are advised to exercise caution of investment risks.

Investors are advised to read the full text of the annual report, and pay particular attention to the following risk factors:

More details about the possible risks and countermeasures in the operation of the Company are described in the Report “XI. Outlook for the Company’s Future Development” of “Section III

Management Discussion and Analysis”. Investors are advised to read the relevant content.

Securities Times, China Securities Journal and Juchao Website (www.cninfo.com.cn) are the media for information disclosure for year of 2026 that appointed by the Company. All public information under the name of the Company disclosed on the above said media and website shall prevail, and investors are advised to exercise caution.

Does the Company need to comply with disclosure requirements of the special industry: No

Profit distribution pre-plan or capital reserve capitalization pre-plan deliberated by the board of directors in the reporting period

√ Applicable □ Not applicable

Is the statutory reserve capitalized into share capital?

□ Yes √ No

The profit distribution proposal approved by the 28th meeting of the 11th Board of Directors is as follows: Based on the total share capital of the Company, which is 1,029,923,715 shares, less the number of shares held in the dedicated securities account for share repurchase, a cash dividend of RMB 2.10 (including tax) will be distributed to all shareholders for every 10 shares. No bonus shares will be issued, and no capital reserves will be converted into share capital.

As of the end of the reporting period, the parent company had unabsorbed losses.

□ Applicable √ Not applicable

Contents

Section I Important Notice, Contents and Interpretation....2

Section II Company Profile and Main Financial Indexes....8

Section III Management Discussion & Analysis....15

Section IV Corporate Governance, Environmental and Social Responsibility....57

Section V Important Events....92

Section VI Changes in Shares and Shareholders....184

Section VII Bond Related Situation....195

Section VIII Financial reporting....196

Documents Available for Reference

I. Financial statement carrying the signatures and seals of the Chairman, principal of the accounting works and person in charge of accounting organ;

II. The original audit report stamped by the accounting firm and signed and stamped by the certified public accountant.

III. Original documents of the Company and manuscripts of public notices that disclosed in the website designated by CSRC in the reporting period.

Definition

Section II Company Profile and Main Financial Indexes

I. Company Profile

II. Person/Way to Contact

III. Information Disclosure and Storage Location

IV. Changes in Registration

V. Other Relevant Information

(I) Accounting firm engaged by the Company

(II) Sponsor engaged by the Company for continuous supervision during the reporting period

□ Applicable √ Not applicable

(III) Financial advisor engaged by the Company for continuous supervision during the reporting period

□ Applicable √ Not applicable

VI. Main Accounting Data and Financial Indexes

Does it have retroactive adjustment or re-statement on previous accounting data?

□ Yes √ No

Retroactive adjustment or re-statement

The Company's net profit before and after deducting non-recurring gains and losses for the last three accounting years has been negative, and the most recent audit report indicates uncertainty regarding the Company’s ability to continue as a going concern

□ Yes √ No

During the reporting period, the lowest of the audited total profit, net profit, and net profit after deducting non-recurring gains and losses was negative.

□ Yes √ No

VII. Accounting Data Difference under Domestic and Foreign Accounting Standards

(I) Difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable

The Company has no difference of the net profit and net assets disclosed in financial report, under both IAS (International Accounting Standards) and Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.

(II) Difference of the net profit and net assets disclosed in financial report, under both foreign accounting rules and Chinese GAAP (Generally Accepted Accounting Principles)

□ Applicable √ Not applicable

The Company had no difference of the net profit or net assets disclosed in financial report, under either foreign accounting rules or Chinese GAAP (Generally Accepted Accounting Principles) in the reporting period.

(III) Reasons for the differences of accounting data under accounting rules in and out of China

□ Applicable √ Not applicable

VIII. Key Financial Indicators by Quarter

Unit: RMB

Do the above financial indicators or their totals differ significantly from the relevant financial indicators disclosed in the Company’s quarterly or semi-annual reports?

□ Yes √ No

IX. Items and Amounts of Non-recurring Gains and Losses

√ Applicable □ Not applicable

Unit: RMB

Details of other gains/losses items that meets the definition of non-recurring gains and losses:

□ Applicable √ Not applicable

There are no other gains/losses items that meet the definition of non-recurring gains and losses in the Company.

Explain the items defined as recurring gains and losses according to the lists of non-recurring gains and losses in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Gains and Losses

□ Applicable √ Not applicable

There are no items defined as recurring profit (gain)/loss according to the lists of nonrecurring gains and losses in Q&A Announcement No.1 on Information Disclosure for Companies Offering Their Securities to the Public --- Non-recurring Gains and Losses.

Section III Management Discussion & Analysis

I. Principal Business of the Company During the Reporting Period

The Company is one of the important electrical appliance manufacturers in China, with four domestic manufacturing bases in Hefei, Mianyang, Jingdezhen, and Zhongshan, as well as overseas manufacturing bases in countries such as Indonesia. After more than 40 years of development, the Company has evolved from a single refrigerator product line to a new multicategory collaborative ecosystem encompassing refrigerators (freezers), air conditioners, washing machines, major kitchen appliances, small home appliances, and biomedical cryogenic storage equipment.

The Company is a national level benchmark enterprise for technological innovation, carefully building its core competitiveness through technological and product innovation. With the advanced R&D team and advanced technology accumulation, Meiling has made continuous breakthroughs in key technological fields, such as intelligence, preservation, thin wall, odourlessness, energy saving, air cooling, deep cooling, simulation, ultra-thin, cleaning and clothing care. The Company has a comprehensive system for technological innovation and quality control. Based on international management system certifications such as ISO9001 and ISO14001, and relying on multiple national core platforms and qualifications, the Company continues to strengthen its R&D and manufacturing capabilities. The Company possesses a National-level Enterprise Technology Center, a National-level Industrial Design Center, and holds titles including National Technology Innovation Demonstration Enterprise, National Industrial Product Green Design Demonstration Enterprise, and National Postdoctoral Research Workstation. It has also established a 5G Industrial Internet Innovation Application Lab and founded Anhui Province's first RoHS Public Testing Center, Anhui Green & Energy-Efficient Refrigerator Engineering Technology Research Center, Anhui Energy-Saving & Freshness-Preserving Green Refrigerator Engineering Research Center, and Anhui Smart Home Appliance Manufacturing Innovation Center, ensuring full-chain quality assurance in R&D and manufacturing. In addition, the Company also operates provincial-level innovation platforms such as the Anhui Green & Energy-Efficient Refrigerator Engineering Technology Research Center. In addition, the Company also operates provincial-level innovation platforms such as the Anhui Green & Energy-Efficient Refrigerator Engineering Technology Research Center. It has also obtained industry-leading certifications, including AAA-Level Excellence in the Upgraded Integration of Informatization and Industrialization Management System and a spot among China's Top 50 Industrial Digitalization Leading Enterprises, further strengthening its technological leadership, R&D efficiency, and smart manufacturing capabilities.

In recent years, the Company has won multiple national honors such as the "Smart

Refrigerator Intelligent Manufacturing Pilot Demonstration Project", "National Green Factory", "National Quality Leader in Home Appliances", "National Technology Innovation Demonstration Enterprise", and "China Industry-University-Research Collaborative Innovation Demonstration Enterprise". In 2025, the Ministry of Industry and Information Technology (MIIT) announced the first batch of "China Consumer Premium Brands", and Changhong Meiling was successfully selected. At the same time, with its strong innovation, product strength, and brand power, the Company received multiple honors for technological and product innovation, continuously showcasing its capabilities in smart innovation technology. At the 2025 Digital Ecosystem Conference, the Company won two prestigious "Top Cloud Connect Awards" for its outstanding performance in technological breakthroughs and product innovation, namely "2025 Ecosystem Brand" and "2024-2025 Trending Product." At the 2025 Refrigerator Industry Development Conference, the National Household Appliance Industry Information Center officially awarded the Company the title of "Healthy and Smart Manufacturing Brand," further highlighting the Company’s comprehensive brand development strength.

Since 2025, the Company's M-Fresh Premium Five-Door Refrigerator (511WQ6F) featuring industry-leading "Fresh-Lock" Technology (Water Molecule Activation Preservation) has won the AWE Innovation Award for its groundbreaking innovation that extends rose preservation to 33 days, driving industry upgrades in fresh-keeping technology; the Company's newly launched Slim Zero-Embed Refrigerator (BCD-507WPU9CDZX/BCD-503WPU9CDZX) received the prestigious iF Design Award; Meiling 10KG Flush-Embedded As Hand Washing Drum Washer (RS21H100D/RS11H100D) was certified as a "Good Product" by China Household Electric Appliance Research Institute (CHEARI); Its Living Room Pro Shared Air Conditioner achieved "Annual Energy-Saving & Low-Carbon Product" recognition from Chinese Association of Refrigeration (CAR) for its ultra-grade-I efficiency (APF 5.20) and AI cloud energy-saving technology, saving 759kWh/year and reducing 757kg carbon emissions per unit, and setting the new "Smart Cooling & Low-Carbon" industry benchmark with its green design; Meiling's Gas Water Heater (JSQ30-MR-BS16A3) won two 2025 FT Quality Awards for "Energy Efficiency Benchmark" and "Usage Comfort"; Meiling Range Hood (CXW-188-MY-KD615Pro) secured two 2025 FT Quality Awards for "Low-Noise Benchmark" and "Power-Saving Benchmark".

The Company has continuously achieved breakthrough results in the fields of refrigerators, freezers, air conditioners, washing machines, major kitchen appliances, small home appliances and biomedicine, progressively establishing a dominant industrial matrix centered on large white goods. Looking ahead, the Company will adhere to the business policy of "innovation-driven development, resource integration, industrial synergy, marketing transformation and digital transformation" to continuously lead industry upgrading and strengthen market foundations.

During the reporting period, the Company's revenue was primarily generated from its refrigerator (freezer), air conditioner, washing machine, major kitchen appliance, small home appliance, and biomedical equipment businesses, with a total revenue reaching RMB 30.133 billion, accounting for 99.09% of the Company's total operating revenue.

II. Industry Overview During the Reporting Period

(I) Refrigerator industry

In the domestic market, the home appliance sector entered a deep consolidation period in 2025, impacted by both policy adjustments and industry transformation. Although national subsidy policies have driven an upgrade in demand for replacements, the overall market continues to face pressure as the policy benefits gradually decline. According to data from AVC, the total retail sales of refrigerators across all channels in 2025 amounted to RMB 127.1 billion, a decrease of 11.5% year-on-year. Against this backdrop, corporate strategies are rapidly shifting towards long-termism and structural restructuring. The core of competition has evolved from a price battle on hardware to a deeper alignment with user emotions and value recognition. In the face of channel fragmentation and consumer transformation, achieving precise reach through new retail models and adapting to the full range of consumer needs has become a critical path for companies to reshape the industry landscape and build a sustainable business logic.

In terms of exports, according to ChinaIOL data, the export volume of refrigerators in 2025 was 54.04 million units, a year-on-year increase of 4.2%. Global demand shows a polarization: Demand in Europe and the U.S. has weakened due to high inflation, while emerging markets maintain strong growth momentum. Among them, South America saw stable growth due to easing inflation, though there are policy uncertainties in 2026; Africa's growth rate has slowed; Southeast Asia’s demand continues to increase, but competition from local manufacturers and Chinese exports is intensifying. Meanwhile, the industry structure continues to move upwards, with global new standards accelerating the adoption of energy-saving and variable-frequency technologies. Trends toward product upgrades and larger capacities are ongoing, and AI smart applications and China’s flush-embedded design philosophy are gaining traction globally. Overall, the export market faces multiple competitive pressures but also presents new opportunities for growth in emerging markets and industry upgrades.

(II) Air conditioning industry

In 2025, the domestic air conditioning industry experienced significant fluctuations, characterized by a "high first and low later trend with rapid changes in both cooling and heating demands". In the first half of the year, high temperatures and strong subsidy policies for replacing old units drove a strong market growth. However, starting from March 15, a price war erupted in the industry and continued to intensify, reaching unprecedented levels by June 18. In the second half of the year, demand was severely depleted, and with weaker subsidies, the market situation deteriorated rapidly. Despite large-scale promotions during the Double Eleven Shopping Festival, consumer sentiment showed signs of fatigue, and the year overall exhibited a clear "high first and low later" pattern. According to AVC data, the total retail sales of air conditioners across all channels in 2025 amounted to RMB 235.7 billion, a slight decrease of 0.4% year-on-year.

In terms of exports, China’s air conditioning export market showed a "high first, low later" trend in 2025. In the first half of the year, influenced by the expected increase in U.S. tariffs, companies rushed to ship goods in advance to avoid risks, creating a peak in export activity. This temporarily boosted export figures but also exhausted future demand, leading to a sharp increase in inventory levels across major overseas markets. As tariffs were fully implemented, and with inventory levels in key markets such as Europe and Latin America at high levels, export growth slowed sharply in the second half of the year, resulting in a prolonged year-on-year decline. According to ChinaIOL data, the total export volume of air conditioners in 2025 was 82.28 million units, a decrease of 3.2% year-on-year.

(III) Washing machine industry

In 2025, the home appliance industry accelerated its restructuring. Adjustments in national subsidy policies had a significant impact on the domestic market, leading to a "high first, low later" trend in washing machine sales. According to AVC data, the total retail sales of washing machines in 2025 amounted to RMB 96.3 billion, a decrease of 4.6% year-on-year. In terms of exports, the washing machine industry faced significant pressure from factors such as global economic downturn, U.S. tariff hikes, and geopolitical conflicts, leading to a slowdown in export order growth. According to ChinaIOL data, the total export volume of washing machines in 2025 was 51.21 million units, an increase of 13.5% year-on-year.

III. Core Competitiveness Analysis

(I) Brand influence

The Company is one of the well-known electrical appliance manufacturers in China, with a comprehensive industrial portfolio covering refrigerators, freezers, air conditioners, washing machines, major kitchen appliances, small home appliances, and biomedical equipment. In 2025, the Company continued to deepen its "Brand Revitalization" strategy, focusing on the brand proposition of "Beautiful China, Fresh Meiling," adhering to the principle of prioritizing product excellence and leveraging innovation to shape the image, promoting steady progress in brand recognition.

1. Deepening the Brand Proposition and Planting the Seed of “Freshness" in Consumers' Minds

In 2025, by developing the freshest products, it will aim to plant the seed of "freshness" in consumers' minds, continuously molding the brand association of "Meiling = Fresh." In its brand communication, the Company consistently implemented the brand mission "Meiling, Bringing Goodness to Life," continuously enhancing brand awareness, reputation, and loyalty, making the brand a bridge connecting users with a better life.

2. Expanding Communication Channels and Enhancing Brand Influence

In 2025, the Company continued to increase its brand promotion efforts, expanding diverse communication channels, and innovating brand marketing methods to improve the quality of brand operations. CCTV featured a special report on Meiling's product innovations, enhancing the brand's authoritative image. The Company implemented targeted brand advertising in subways, light rails and airports to enhance brand awareness, conducted nationwide agricultural support initiatives through social welfare programs to boost brand reputation. On the new media front, the Company deepened content operations and precise promotion capabilities. Meiling accelerated its localized service offerings on the Douyin platform and collaborated with influencers for targeted campaigns; on the Xiaohongshu platform, multi-dimensional content engagement was employed to boost user interaction and brand penetration, achieving a multi-dimensional leap in brand influence.

3. Maintaining a Focus on Technological Leadership While Accelerating Product Innovation

In 2025, the Company remained focused on user-centered design and technology leadership, accelerating the transformation of innovation results. This year, the Company launched several differentiated innovative products with competitive advantages, including the M-Fresh Ultra570S Refrigerator, the As Hand Washing Great Whale Drum Washer, the Landscape View Series air conditioners, the Fresh Water 3.0 Tea Dispenser, and the Ice Lined Refrigerator YC-125EW, among others. The product line continued to expand, and the structure was optimized, further enhancing the brand's core competitiveness and providing continuous brand momentum for the Company’s high-quality development.

(II) Product capability

The Company adheres to the product planning philosophy of "captivating with aesthetics, earning respect through quality, winning with value-for-money, and securing loyalty via experience," with the development goal of "making good products and doing products well," and builds a whole-chain innovation system of "Technical route + Product route + Promotion route." It has established an integrated collaborative mechanism for the entire chain of "sales, research, production, and supply” and continuously optimized its SKU structure, which enhances the success rate of product launch and the value contribution within the product lifecycle. On this basis, the Company focuses on enhancing product bundling capabilities, shifting from singleproduct sales to bundled product combinations and scene-based solutions. Simultaneously, the Company actively explores the empowerment of product innovation through AI technology, integrating artificial intelligence into key areas such as technological research and development, interactive experiences, and intelligent services, continuously enhancing the product's

differentiated competitiveness and user value.

Refrigerator (Freezer) Products: By establishing a comprehensive product platform matrix, upgrading exterior/interior designs, and implementing tiered freshness/odor-removal solutions, the Company meets diverse consumer needs, enhances product portfolio competitiveness, and expands market coverage to drive sales growth. In 2025, the Company completed the layout of 7 platform refrigerator bodies ranging from 600mm to 900mm in width, and launch 5 M-Fresh models, including 570S. It innovated defrosting technology, comprehensively upgraded allscenario freshness preservation, and introduced differentiated products such as the FrozenFresh Songya 551S and the 70cm Little Certainty 505/420 French style. MNC+PRO active sterilization and deodorization technology were comprehensively upgraded. The e-commerce platform was the first to apply the "AI Smart Assistant" function, further, comprehensively consolidating its industry leadership in "fresh, thin, narrow, and embedded design". The freezer has undergone fullscale inverter and air cooling upgrades, launching new products such as the inverter frost-free master and energy-saving master, while establishing high-end brand recognition through products like the M-Fresh Bar Freezer, establishing a high-end brand image. Additionally, the Company is introducing the industry's first inverter commercial kitchen cabinet.

Air Conditioner Products: We focused on user scenarios and create three flagship products: "All Dust-Free," "Kitchen and Dining Cabinets," and "Panda Lazy." In 2025, we launched new products such as the "Landscape View" high-end wall-mounted unit and "Giant Energy Saving PRO" floor-standing series, deeply integrating AI algorithms and fresh air technology to achieve a value upgrade from temperature control to air management.

Washing Machine Products: The Company focused on core mid-tier products and created a "star series" matrix. All drum washing machines were upgraded to flush-embedded designs. The Company launched the As Hand Washing Flush-Embedded series and the As Hand Washing Great Whale series, both featuring 3x washing technology. The product line has expanded to include a 12kg capacity and energy efficiency has been improved across the entire range. Additionally, the Company innovated with compact high-capacity products, optimizing the product structure.

Kitchen and Small Home Appliances: In major kitchen appliances, the Company deepened its research into the fields of gas water heating and water purification, introducing its 3.0 Honeycomb Sealed Stable-Combustion Energy Chamber technology and creating "AI Healthy Kitchen", "Fresh Kitchen”, "Whole-house Water Supply” and other scenario-based solutions. In the small home appliance sector, the Company expanded its cooperation with academia and research institutes, developing second-generation strontium-rich mineral filter. The Fresh Water series became a benchmark for tea drink products, and the Company’s mini kitchen appliances ranked among the top three in the industry, further elevating its brand influence.

Biomedical Products: Focusing on low-temperature storage, laboratory equipment, and automation applications, the Company drives product upgrades through technological innovation. In the field of cryogenic storage, the Company made in-depth advances focusing on "intelligence, energy efficiency, safety, and scalability". The YC-125EW Ice Lined Refrigerator introduced in 2025, became the first product globally to be certified by the mathrm W H O circ s latest standards, providing crucial support for expanding the global public health market. The Company also launched intelligent inverter refrigerators, bf -40 circ C frost-free cryogenic storage units and other products, significantly enhancing storage efficiency and safety. In the laboratory equipment sector, the Company expanded its product matrix with biosafety cabinets and centrifuges, creating new growth points. In the automation applications field, the Company focused on developing fullyautomated ultra-low temperature storage systems and biobank solutions, creating a closed loop for the accurate storage of samples and smart management throughout the process, addressing traditional efficiency pain points and providing high-standard technical support for precision medicine.

(III) Operational capability

The Company continues to improve its operational management system guided by strategy and centered on value creation, and effectively drives the achievement of business objectives and operational quality improvement through deep linkage of objective management, value chain collaboration, comprehensive budget and performance management. In terms of objective management, the Company strictly aligns with strategic and business policies, establishing a closed-loop mechanism of "target setting-process monitoring-deviation correction-result evaluation" following SMART principles to drive continuous improvement in operational quality; for value chain coordination, it clarifies authority-responsibility-benefit boundaries across business units to activate internal vitality while strengthening collaboration throughout the industrial chain, building an integrated, efficient operating mechanism with aligned objectives, streamlined processes, and co-created value; in budget management, it implements comprehensive closed-loop control throughout the budgeting process, adopting dynamic budget adjustments and rolling forecast mechanisms to provide precise, timely financial support and decision-making basis for resource allocation optimization, risk prevention, and strategic goal achievement; in terms of performance management, it advances whole-process performance management, enhances communication and feedback to effectively align employee growth with corporate development, fully stimulate value creation momentum, and drive business unit performance fulfillment.

(IV) Marketing capability

The Company has established a nationwide marketing network and service system that promotes online and offline collaborative development. It drives scalable expansion through four strategic pillars of "innovative super-product development, precision channel operations, tiered regional upgrades, and focused brand-building". In terms of products, the Company focuses on introducing differentiated trend products, amplifying product mindshare through integrated online-offline campaigns to promote premium offerings. In terms of channels, it adheres to a tiered high-quality operation approach, increasing investment in KT channels and scaling up those channels with positive marginal contributions. It accelerates the integration of refrigerator and kitchen appliances, builds and operates exclusive stores, and enhances operator quality in basic channels. Online, the Company strengthens the operation of mainstream channels, expands emerging channels, and strengthens the entry of large stores and underdeveloped regional markets in the sinking channels. In terms of the traffic and user operation front, it implements a useroriented approach, strengthening brand building and content operations. In terms of organization, it resolutely drives marketing transformation and accelerates new retail capability enhancement. At the same time, the Company continues to advance its B2B business system transformation with a strong focus on 'customer-centricity,' focusing on improving product quality and delivery capabilities, and continuously pushing for the internationalization of domestic marketing capabilities. It also strengthens information technology construction and AI applications, building an agile mechanism capable of quickly responding to market changes.

IV. Main Business Analysis

(I) Overview

In 2025, facing the challenges of intensified competition in the home appliance industry, the company adhered to the business philosophy of 'innovation-driven, internal and external integration, industrial synergy, marketing transformation, and digital and intelligent transformation,' achieving steady progress. During the reporting period, the company's operating revenue reached 30.408 billion yuan, an increase of 6.32% year-on-year; affected by multiple factors such as intensified domestic market competition, the decline of national subsidy policies leading to weak terminal demand, and fluctuations in bulk material prices, net profit was 410 million yuan, a year-on-year decrease of 41.31%, with overall operations remaining stable.

1. Refrigerator (Freezer) industry

In the domestic market, the Company focused on "users and traffic" by transitioning from business customers to business users, acquiring users through "digital platforms, grassroots and omnichannel scenario marketing", while driving conversion via "premium product evaluation, flagship model promotion, and precision operations" to achieve integrated online/offline traffic convergence. On the channel front, the Company is focusing on integrated refrigerator-kitchen solutions, transitioning from standalone appliance operations to complete white goods suite offerings. On the product front, it adheres to an emotion-driven marketing approach that guides product design, adhering to the user-centric approach, to build a differentiated product portfolio, such as M-Fresh, FrozenFresh, and Little Certainty as three major IP products for both online and offline channels. The Company’s strategic channel layout of differentiated products, coupled with exceptional product experiences, has garnered market recognition. Additionally, the Company is further leveraging its industrial synergy to achieve a "dual-engine drive" in the refrigeratorwasher industry, accelerating brand business growth and strengthening internal and external collaboration. With a user-centric approach, the Company is not only driving product scale growth but also accelerating the transformation towards high-end products. By strengthening customer support and achieving breakthroughs with key clients in core markets, the Company aims for sustained and stable growth in scale.

During the reporting period, the Company's refrigerator (freezer) business realized an income of about RMB 8.946 billion, with a year-on-year decrease of 6.42%.

2. Air conditioning industry

In terms of domestic market, the Company consistently implements its core business strategy of "product excellence, brand prioritization, channel co-creation, and direct-to-consumer", staying user-centered while continuously enhancing product strength. Key new products such as the "Landscape View"-EA wall-mounted unit, "Living/Dinning Room Pro"-BFB floor-standing unit, and "Giant Energy Saving PRO"-BEW/BGW floor-standing unit, and "Panda Lazy" XS-ULTRA unit were successfully launched. These products deeply integrated AI and health technologies, reinforcing the product brands of "Dust-Free, Kitchen and Dining Cabinets, and Panda Lazy" and supporting market competition through differentiated innovation. In terms of branding, the Company strengthened its brand influence through public relations activities, self-media operations, macro advertising, and new media marketing campaigns. For channel operations, the Company adhered to an integrated online and offline approach, advancing channel expansion and refining operations. At the same time, it optimized service experiences and reinforced its operational foundation to maintain business stability and growth amid industry fluctuations. In terms of overseas markets, the Company maintained its five-pillar business strategy of "quality foundation strengthening, brand momentum building, production capacity synergy, operational efficiency enhancement, and talent excellence cultivation", to continuously drive sustainable business growth. In terms of brand building, the Company concentrated on deep cultivation of its Indonesian market to achieve steady growth in brand business scale. In market expansion, the Company strengthened its service capabilities for key large customers, breaking revenue records with the TOP10 customers of the year. It also increased efforts to expand core regional markets, steadily boosting sales and providing strong support for overall business growth.

During the reporting period, the Company's air-conditioning business realized an income of about RMB 17.381 billion , with a year-on-year increase of 12.81%.

3. Washing machine industry

The washing machine industry adhered to a differentiated competition strategy, staying usercentered and focusing on products to build core industry competitiveness. In the domestic market, the Company deepened channel transformation, driving continuous optimization of product structure through both product and technology advancements. With trends such as flushembedded and large-capacity models, the Company further solidified its mid-range product offerings, emphasizing the competitive advantages of "BlueOxygen As Hand Washing," "As Hand Washing," and "Hercules." New products like the "As Hand Washing Flush-Embedded" and "As Hand Washing Great Whale" were launched, and the Company built a series of washing and drying product bundles based on core mid-tier models, further strengthening its market share and influence in the mid-to-high-end market. The Company also focused on key regions and core customers, collaborating on the development of new appearance drum washers to enhance market share. Breakthroughs were achieved in dryer control technology and energy efficiency, accelerating market expansion. The Company initiated dual-basis layouts in Hefei and Mianyang, with the Mianyang factory focusing on creating a digital, intelligent, and green manufacturing park. The integration of "AI + manufacturing" helped build a lean and flexible factory, filling gaps in the western high-end laundry industry and empowering regional manufacturing upgrades.

During the reporting period, the Company's washing machine business realized an income of about RMB 2.207 billion , with a year-on-year increase of 26.33%.

4. Major kitchen appliance and small home appliance industry

In the major kitchen appliance and small home appliance sector, the Company executes a three-pronged strategy of transformation, focus, and efficiency enhancement, yielding substantial improvements. In terms of strategy, the Company continues to drive industrial convergence, while in terms of market, it reinforces strategic home market development to solidify regional market competitiveness. The Company accelerates its omnichannel integration strategy, enhancing online experiences through digital marketing and deep platform collaborations while establishing scenario-based offline experiential stores to optimize consumer experiences, achieving synchronized cross-channel inventory sharing and consumer mode convergence. In terms of product innovation, technological advancements have driven the successful launch of the Fresh Water Series, which received widespread praise from users, and the small kitchen appliances category saw record sales. In terms of market services, the Company maintains its user-centric approach, relied on an efficient management platform to quickly respond to user needs, enhanced the professionalism of after-sales teams, and steadily improved user service experiences and satisfaction.

During the reporting period, the Company's major kitchen appliance and small home appliance business realized an income of about RMB 1.444 billion, with a year-on-year decrease of 3.19%.

5. Biomedical industry

In the domestic market, staying user-centered, the Company continued to drive channel organization reforms and deepened its "market segmentation + scenario-based engagement" approach to accurately identify user needs. The Company continuously improved the channel system in the life sciences field, optimizing regional layouts and partner structures, significantly enhancing its user coverage and penetration in key markets. It also launched "LingXin Service" nationwide maintenance campaign and after-sales skills enhancement initiative to elevate customer satisfaction and brand trust through professional and standardized services. The Company enhanced its brand influence in scientific research and industry by establishing university scholarships, organizing industry strategy alliance meetings, and actively promoting the construction of an industry talent ecosystem, fostering industry chain collaboration and highquality, win-win development. In the overseas market, the Company focused on both quality and quantity to solidify its channel foundation, building a more comprehensive channel network. By focusing on developed markets and breaking into emerging markets, and utilizing international exhibitions and on-site visits for diversified promotion, the Company expanded the market influence of its core products. Simultaneously, it gradually strengthened its localized layout, continuously improving market response capabilities and delivery efficiency. The Company worked to create a competitive edge across the entire product lifecycle, from promotion to aftersales service, ultimately forming a global channel system based on customer loyalty and win-win cooperation.

During the reporting period, the Company's biomedical business realized an income of about RMB 305 million , with a year-on-year increase of 15.61%.

(II) Revenue and cost

1. Constitute of operating revenue

Unit: RMB

2. The industries, products, regions or sales models that accounting for over 10% of the Company’s operating revenue or operating profit

√ Applicable □ Not applicable

Unit: RMB

Under circumstances of adjustment in reporting period for statistic scope of main business data, adjusted main business based on latest one year’s scope at the end of the reporting period

□ Applicable √ Not applicable

3. Does the Company’s Revenue from Physical Sales Exceed Service Revenue?

√ Yes □ No

Reason for more than 30% year-on-year change in relevant data

□ Applicable √ Not applicable

4. Performance of Major Sales and Procurement Contracts Signed by the Company as of the Reporting Period

□ Applicable √ Not applicable

5. Composition of operating costs

Industry classification

Unit: RMB

Note: None

6. Changes in the Scope of Consolidation During the Reporting Period

√ Yes □ No

For detailed information, please refer to "Section VIII Financial Report" of the Report, specifically “7. Changes in the Consolidation Scope" and “8. Equity in Other Entities".

7. Significant Changes or Adjustments in Business, Products, or Services During the Reporting Period

□ Applicable √ Not applicable

8. Major sales customers and suppliers

(1) Major sales customers

Top 5 major customers

Other remarks on major customers

□ Applicable √ Not applicable

Major suppliers

Top 5 major suppliers

Other remarks on major suppliers

□ Applicable √ Not applicable

Proportion of trade business revenue in total operating revenue exceeding 10% during the reporting period

□ Yes □ No √ Not applicable

(III) Expenses

Unit: RMB

(IV) R&D investment

√ Applicable □ Not applicable

The Company’s R&D Personnel

The Company’s R&D Investment Reasons and Impacts of Significant Changes in R&D Personnel Composition

□ Applicable √ Not applicable

Reasons for Significant Changes in the Proportion of Total R&D Investment in Operating

Revenue Compared to the Previous Year

□ Applicable √ Not applicable

Explanation for the Large Fluctuation in R&D Investment Capitalization Rate and Its Reasonableness

□ Applicable √ Not applicable

(V) Cash flow

Unit: RMB

Explanation of Major Influencing Factors for Significant Year-on-Year Changes in Related Data

√ Applicable □ Not applicable

The significant change in net cash flows from operating activities is primarily due to an increase in the cash paid by the Company for purchasing goods and receiving services compared to the same period last year.

The significant change in the net increase in cash and cash equivalents is mainly due to an increase in cash outflows from operating activities compared to the same period last year.

Explanation of reasons for significant discrepancies during the reporting period between net

cash flow from operating activities and net profit for the year

√ Applicable □ Not applicable

Mainly due to an increase in operating payables at the end of the reporting period compared to the beginning of the period.

V. Analysis of Non-main Business

√ Applicable □ Not applicable

Unit: RMB

VI. Analysis of Assets and Liabilities

(I) Major changes of assets composition

Unit: RMB

A relatively high proportion of foreign assets

□ Applicable √ Not applicable

(II) Assets and liability measured by fair value

√ Applicable □ Not applicable

Unit: RMB

Other changes

Other changes in receivables financing are due to the decrease in notes receivable with the objective of both collecting contractual cash flow (collections) and selling (endorsement or discounting).

Other changes in other non-current financial assets are caused by the recovery of the cost of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership

Enterprise (Limited Partnership) and Changhong Group Sichuan Shenwan Hongyuan Strategic New Industrial Parent Fund Partnership (Limited Partnership).

Are there major changes in measurement attributes for main assets of the Company in the reporting period?

□ Yes √ No

3. Assets right restricted at the end of the reporting period

At the end of the reporting period, the Company has no major assets that were seized, detained, frozen, mortgaged or pledged. As for other assets with restricted rights, see more in relevant content of “24. Assets with Restricted Ownership or Use Rights” in “VII. Notes to Major Items of Consolidate Financial Statement” under “Section VIII Financial Report” in the Report.

VII. Investment Analysis

(I) Overall situation

√ Applicable □ Not applicable

(II) The major equity investment obtained during the reporting period

√ Applicable □ Not applicable

Unit: RMB

3. The material non-equity investment during the reporting period

√ Applicable □ Not applicable

On June 18, 2025 and November 24, 2025, the Company held the 18th meeting of the 11th Board of Directors and the second extraordinary shareholders’ meeting for 2025. During these meetings, the Proposal on the Investment and Construction of the Smart Home Appliances Industrial Park Project by Subsidiaries was reviewed and approved. The Company agreed to allow its subsidiary Hefei Industrial to invest in and build the Smart Home Appliances Industrial Park Project with a total investment of RMB 877.05 million. The details were disclosed by the Company on June 19, 2025, and November 25, 2025, in the designated information disclosure media Securities Times, China Securities Journal, and Juchao Website (www.cninfo.com.cn) through announcements (No. 2025-045, No. 2025-046, and No. 2025-082).

Details of the Company's production capacity expansion project can be found in Section V “XVII. Explanation of Other Significant Matters" and “XVIII. Significant Matters of the

Company's Subsidiaries."

As of the end of the reporting period, the project construction was still in progress and had not yet been completed or transferred, with the related project contract amount exceeding RMB 200 million.

□ Yes □ No √ Not applicable

(IV) Financial assets investment

1. Securities investment

□ Applicable √ Not applicable

The Company had no securities investment in the reporting period.

2. Derivative investment

√ Applicable □ Not applicable

(1) Derivatives investment for hedging purposes during the reporting period

√ Applicable □ Not applicable

Unit: RMB 10,000

(2) Derivative investments for speculation during the reporting period

□ Applicable √ Not applicable

The Company had no derivative investment in the reporting period.

VIII. Sales of Major Assets and Equity

(I) Sales of major assets

□ Applicable √ Not applicable

No major assets were sold in the reporting period.

(II) Sales of major equity

□ Applicable √ Not applicable

IX. Analysis of Main Holding and Participating Companies

√ Applicable □ Not applicable

(I) Particular about main subsidiaries and participating companies with net profit over 10% Unit: RMB

(II) Subsidiary obtained and disposed in the reporting period

√ Applicable □ Not applicable

(III) Description of holding and participating companies

□ Applicable √ Not applicable

X. Structured Entities Controlled by the Company

□ Applicable √ Not applicable

XI. Outlook for the Company's Future Development

(I) Macro environment analysis

In 2026, the complexity of the macro environment will further intensify, with global economic growth diverging and regional geopolitical conflicts intertwining, leading to significant fluctuations in the prices of key raw materials like copper, further increasing cost pressures in the manufacturing sector. At the same time, the international foreign exchange market will experience more volatility, posing higher demands on businesses' overseas operations and exchange rate risk management. Domestically, under the policy support, the market is entering a "consolidation period." The "trade-in" policy, which was previously concentrated, is losing momentum, and the new demand generated by the real estate market adjustment is weak. The overall market is

shifting from total expansion to structural upgrading. Against this backdrop, the accelerated popularization of artificial intelligence (AI) is profoundly transforming the industrial landscape. From upgrading end-user intelligent experiences and personalized scenario customization to reshaping manufacturing and supply chain efficiency, AI technology is being fully integrated into product innovation and operational processes. It has become a core driving force for the home appliance industry to explore new growth points, navigate economic cycles, and achieve highquality development amidst a competitive landscape.

(II) Industry environment analysis

1. Refrigerator (Freezer) industry

The refrigerator industry is undergoing profound transformation. In the domestic market, the demand for both essential and premium products is expected to remain weak. Amid rising prices of raw materials such as copper and aluminum, pressure on enterprises is increasing. The market has fully shifted to a replacement-driven model, with the proportion of high-end models increasing against the trend. Driven by both policy and technological advancements, the industry is transforming towards "green, intelligent, and high-end" features, and market share is accelerating toward leading, ecosystem-oriented enterprises. At the same time, the global influence of Chinese home appliance brands and the expansion of Chinese channels worldwide provide new opportunities for business expansion. On the technological front, the rapid development of inverter technologies, driven by global standard upgrades, has led to the accelerated popularization of inverter products. AI applications are driving the rapid acceleration of home appliance intelligence and the rise of smart and connected products, further upgrading the industrial structure.

2. Air conditioning industry

The domestic market is expected to enter a period of deep adjustment and consolidation. Due to macroeconomic factors, consumer confidence, and the real estate sector, market demand faces significant pressure. The industry will simultaneously face challenges of "high inventory, high costs, and weak demand." In this context, industry reshuffling may intensify, and market competition will comprehensively shift towards technical value, supply chain efficiency, and brand resilience. Market share is expected to further concentrate on leading enterprises. In the overseas market, global energy efficiency and environmental protection standards are continuously upgraded, while trade barriers and high costs have become significant features. Market demand shows clear regional differentiation and structural growth trends, with consumers increasingly focusing on energy-saving, smart connectivity, and customized solutions for specific usage scenarios. From a competitive standpoint, the core focus has shifted from capacity and price competition to global battles centered on brand power, localized operations, and comprehensive technical solutions.

3. Washing machine industry

The domestic market is expected to enter a deep consolidation phase under policy support and a competitive landscape, with growth momentum shifting from total expansion to structural upgrades. Policy-wise, the new round of "trade-in" policies focuses on grade-I energy-efficient products, forcing enterprises to accelerate their transition to greener and higher-end products. In terms of products, AI technology is evolving from "passive operation" to "active intelligence." Intelligent washing machines with visual recognition and self-learning algorithms have become mainstream, enabling automatic identification of fabric materials and dynamic optimization of washing programs. Meanwhile, multi-tub washing models continue to penetrate, responding to specific scenarios such as pet care and maternal and child needs. On the market side, simple price wars are no longer sustainable. Solution sets are gradually replacing single-function products. Enterprises must explore new growth spaces in the stock market through green and intelligent upgrades and deep engagement with different scenarios. Globally, energy efficiency upgrades and the rapid development of smart technologies are driving structural upgrades. After three years of rapid growth, export volumes are at a high point, and growth has slowed due to overseas tariffs and geopolitical friction.

4. Major kitchen appliance and small home appliance industry

In 2025, the industry faces demand exhaustion and a shift in momentum. The future direction will focus on personalization, scenario-based solutions, and health upgrades, with smart and green innovations at the core.

The kitchen and bathroom markets are generally weak, with both volume and value declining across multiple categories. Replacement and structural upgrades are becoming the core focus. On the demand side, the replacement rate exceeds 50%, and users are increasingly segmented, with offline channels being the main purchase scene. On the product side, the industry is shifting from parameter competition to value competition. The implementation of new national standards across categories will drive energy efficiency and safety upgrades. The competitive environment is intensifying, with the "Matthew effect" making survival space for small and medium brands increasingly squeezed.

The small home appliance market is seeing slower growth in traditional categories, with emerging categories such as tea dispensers and small health appliances becoming the core growth drivers. The fusion of the Internet of Things (IoT) and AI chips is enabling small home appliances to achieve precise connectivity and proactive intelligence. Emerging e-commerce remains the growth engine, with leading brands accelerating their omnichannel layout. Brand competition is fierce, with concentration among top brands increasing, and small and medium brands focusing on niche markets for breakthroughs.

5. Biomedical industry

Under the national strategies of "Healthy China 2030" and "Developing New Quality Productive Forces," the biomedical industry is at a key stage of advancing domestic replacement. Policies have not only provided legal guarantees and tax incentives for technological innovation in domestic equipment but have also optimized the review and approval mechanisms, creating unprecedented market opportunities for leading enterprises with core technologies. Currently, the core of industry competition has shifted from simple price wars to comprehensive strength competitions based on independent innovation, reliable quality, and full-lifecycle service.

(III) 2026 Business Plan

1. Business strategy

In 2026, the Company will continue to focus on five core initiatives—innovation-driven development, resource integration, industrial synergy, marketing transformation and digital transformation—to accelerate high-quality development. The goal for the year is to achieve both scale and profit growth.

(1) Innovation-driven industry capability building

The Company will focus on four key dimensions—technology innovation, product innovation, manufacturing innovation, and management innovation—to continually enhance core industrial competitiveness. The Company will stay committed to the core business, avoiding merely following trends, and instead lead with innovation to build differentiated competitive advantages. It will strengthen its core business foundation, foster innovation ecosystems, and ensure a symbiotic relationship between innovation and the main business to jointly build competitive advantages.

(2) Resource integration for industrial ecosystem

The Company will continue to advance the dual circulation strategy (domestic and international), fostering synergy between domestic and international operations. In the overseas market, it will leverage its strong overseas customer base to accelerate the expansion of its industrial matrix and cultivate a solid second growth curve. In the domestic market, it will convert the innovation and efficiency capabilities honed in the domestic market into a powerful support for international expansion. Looking to the future, in the face of ecological competition, the Company will build on its foundation in the refrigerator-washer industry, promote the collaborative development of new product categories, establish a sustainable industry ecosystem, and continuously strengthen its global competitive capabilities.

(3) Industrial synergy to accelerate industrial development

The Company will focus on technological and R&D collaboration, lean manufacturing, supply chain management, and quality improvement to achieve coordinated breakthroughs and system integration. By sharing methodologies and reusing platform capabilities, the Company will break down industry boundaries and optimize resource allocation. The Company will enhance organizational efficiency through system collaboration and accelerate development by promoting integration and mutual growth among different business segments.

(4) Marketing transformation to create a user-centric ecosystem

The Company will steadily build a user-centered ecosystem driven by dual efforts in refrigerator-washer integration, kitchen-refrigerator integration, and retail transformation. Starting from product differentiation, the Company will enhance user connection and traffic management through differentiated IP strategies, accumulating brand momentum. The Company will pursue a dual approach: B2B with a focus on customer needs, and B2C with a focus on user needs, collaborating to drive user-centric marketing across all channels, continually improving user engagement and operational effectiveness.

(5) Digital transformation to enhance operational efficiency

The Company will view efficiency as a strategic advantage and utilize digital transformation to improve quality and efficiency across the entire value chain. The Company will focus on its core business, reduce SKUs, and optimize resource allocation. It will strengthen human resource management and organizational effectiveness, adopting a "simplification" approach to redesign processes and improve operational efficiency. Through digital tools, the Company will create a seamless end-to-end operation system, injecting strong momentum for sustainable development.

3. Market strategy

(1) Refrigerator (Freezer) industry

The Company will implement the "1+3+4" core strategy, focusing on "user-centric" and integrating the three key elements of "people, product, and place." The Company will execute four key actions: "digital platforms, grassroots, value creation, and flagship model promotion." The goal is to move from managing customers to managing users. The Company will focus on integrating online and offline channels, expanding the multi-dimensional approach to "people, product, and place" from a singular focus. This will involve transitioning from passive traffic to asset-driven customer engagement, from a single channel to a full-scenario experience, and upgrading from functional value to emotional value. In terms of channels, the Company will promote the refrigerator-washer product integration, deepen efforts in key home markets, and build up brands through investment and exclusive store development. The Company will strengthen online operations on platforms like Douyin, Xiaohongshu, and live streaming, focusing on creating private user pools. It will integrate content-driven and business-driven strategies to optimize brand image, focusing on the "freshness" proposition and emphasizing high-end market positioning. Product-wise, the Company will focus on trends such as "large capacity, inverter, and AI," with mid-range products highlighting differentiation and low-end products optimizing costs.

It will continue to deepen mature markets while expanding emerging markets and strengthening the online and R&D capabilities to drive user-oriented transformation across the entire supply chain.

(2) Air conditioning industry

In the domestic market, the Company will adhere to the business strategy of "product excellence, brand prioritization, channel co-creation, and direct-to-consumer". On the product side, the Company will focus on user needs and drive product iteration and upgrades through technological innovation, enhancing the smart product label. On the channel side, the Company will maintain diversified and collaborative development, strengthen online and offline integration, and continue improving channel efficiency and coverage quality. On the user side, the Company will steadily promote marketing transformation, enhance user direct access, and service experience while increasing brand influence. In the overseas market, the Company will implement the "Three Increases and One Strengthening" strategy to expand market growth potential. This includes increasing the product lineup with window and mobile air conditioners, implementing targeted marketing strategies based on the characteristics of different regional markets, expanding market share in key customer segments, solidifying existing partnerships, seeking further breakthroughs, and acquiring orders from new markets and clients, with an emphasis on engaging mainstream customers in potential markets. Additionally, the Company will strengthen support for mid-tier customers and stabilize order volumes from this group, consolidating the overall business foundation.

(3) Washing machine industry

In the domestic market, the focus for drum washing machines will be on expanding the 12KG large-capacity series around the “As Hand Washing” and “BlueOxygen As Hand Washing” models to enhance the competitiveness of mid-tier products. High-end products will rely on ultrathin flush-embedded technology to expand fully flat flush-embedded designs, AI laundry care, and integrated product solutions. The Company will develop products and technologies for niche markets, such as multi-drum washing, heat pump washing and drying integration, and integrated partition washing, to expand the high-end product lineup and enhance brand value. For the pulsator washing machines, the Company will rely on the Hercules technology to advance the Hercules PRO line, creating a competitive edge. The Company will focus on key home markets such as Anhui and Sichuan-Chongqing, and build retail capabilities around core stores to increase market share. The Company will continue to focus on key regions, target key customers, enhance product competitiveness, and expand product categories by increasing product supply and upgrading energy efficiency to meet differentiated needs, aiming to build a leading global brand for drum washing machines.

(4) Major kitchen appliance and small home appliance industry

The Company remained user-centric, focusing on kitchen and lifestyle scenarios, and promote multi-category, all-channel integrated operations to steadily build industrial capabilities and inject continuous power for high-quality industry development. Technological innovation will drive product upgrades, with AI technology deeply integrated, while fresh water technology will undergo iterative upgrades to strengthen the product lineup. The Company will reinforce product labels focused on “freshness,” “health,” and “intelligence.” Category collaboration will deepen, and dual-line integration will create a full-channel matrix to enhance ecological cooperation and strengthen brand influence. The Company will continue to leverage digitalization to improve quality and efficiency, continuously optimize the supply chain and after-sales service system, and build a closed-loop service process, creating user trust and enhancing brand reputation with professional services.

(5) Biomedical industry

The Company will focus on opportunities in the field of life sciences, continuing to deepen its business philosophy of "technology-based, product-based, market-oriented and customercentered development”, relying on the product strategy of “vertically expanding sample banks and horizontally expanding laboratories” to promote the simultaneous scaling and quality development of various services. In terms of market expansion, the Company will continue to strengthen service capabilities and channel system development, optimizing domestic market channels to enhance user coverage and penetration in key areas. For the overseas market, the Company will focus on both developed and emerging markets, advancing a strategy of “scaling up old customers and strengthening new customer outreach.” The Company will further build a clear, comprehensive distribution network, significantly enhancing overall market competitiveness.

(IV) Potential risks and countermeasures

In 2026, facing intensified competition and rising uncertainty in the external environment, the Company may face the following key risks:

1. Industry competition and demand fluctuation risk

The domestic home appliance industry is experiencing increased competition with a high degree of product homogeneity. With the diminishing marginal effect of the “trade-in” policy and the shift in consumption towards quality and scenario-based upgrades, the Company will continue to strengthen its technology-driven innovation, use AI to empower product iteration and enhance user experience, and plan ahead with product development and all-channel operations to strive for increased market share in the midst of competition.

2. Exchange rate fluctuation risk

Potential significant exchange rate fluctuations may arise from evolving global dynamics.

The Company adheres to a prudent business approach, with ongoing close monitoring of exchange rate fluctuations and cautious exchange rate operations to minimize adverse impacts of exchange rate fluctuations.

3. Risk of fluctuations in bulk material prices

The main raw materials of the Company's products include steel, copper, aluminum, plastics and chemical materials, etc. If the prices of the said bulk raw materials fluctuate greatly, it will have a certain impact on the related costs and operating performance of the Company. The Company will continue to strengthen monitoring of bulk materials and take timely measures to control cost fluctuations.

4. Trade frictions and geopolitical impacts

The Company pays close attention to the impact of international trade frictions and geopolitical uncertainties on its global business. It makes relevant plans in advance, takes various risk response measures, responds quickly, and mitigates the impact.

In 2026, the Company will focus on the business philosophy of "innovation-driven development, resource integration, industrial synergy, marketing transformation and digital transformation" to actively respond to market changes. Through early product, technology, and market positioning, the Company aims to drive its transformation toward high-end, intelligent products, continually optimize its product structure, enhance operational efficiency, and improve overall competitiveness, striving to provide better products and services for consumers and create greater value for shareholders.

XII. Research, Communication, Interviews, and Other Activities During the Reporting Period

√ Applicable □ Not applicable

XIII. Formulation and Implementation of Market Value Management System and Valuation Boost Plan

Has the Company established a market value management system?

□ Yes √ No

Has the Company disclosed plans for valuation increase?

√ Yes □ No

From February 27, 2025, to February 27, 2026, Changhong Meiling's B-share stock has closed below the most recent audited net assets per share attributable to the shareholders of the listed company for each trading day over the past 12 months. According to the Listed Company Supervision Guidelines No. 10 – Market Value Management, this situation requires the formulation of a valuation enhancement plan. The 28th meeting of the 11th Board of Directors of the Company approved the Proposal on the B-Share Valuation Enhancement Plan.

For the year 2026, the Company plans to enhance its investment value through improving its operational capabilities, establishing a sound medium- and long-term incentive mechanism, cash dividends, strengthening investor relations management, and ensuring the quality of information disclosure.

For specific details, please refer to the Announcement of Changhong Meiling Co., Ltd. on Bshare Valuation Enhancement Plan (Announcement No.: 2026-022) disclosed on April 3, 2026, on

XIV. The Implementation of the Action Plan of "Double Improvement of Quality and Return"

Has the Company disclosed the action plan of "double improvement of quality and return”?

□ Yes √ No

Section IV Corporate Governance, Environmental and Social

Responsibility

I. Overview of Corporate Governance

(I) Corporate governance overview

The Company strictly adheres to the Company Law, Securities Law, the CSRC’s Guidelines on Listed Company Governance, the Listing Rules of Stocks on the Shenzhen Stock Exchange and the Self-Regulation Guidelines of the Shenzhen Stock Exchange for Listed Companies No. 1 – Standard Operations for Companies Listed on the Main Board, along with other relevant laws and regulations. The Company continuously improves its corporate governance structure, enhances its internal control system, and elevates the standardization of its operations, forming a decision-making and management structure led by the board of shareholders, the board of directors, and management team. The Company's board of shareholders, board of directors, and management team each have clear responsibilities, ensuring scientific decision-making and coordinated operations, laying a solid foundation for the Company's continued, stable, and healthy development.

During the reporting period, the Company revised and issued documents such as the Articles of Association, the Rules of Procedure for the Board of Shareholders, and the Rules of Procedure for the Board of Directors. Overall, the Company's governance complies with the relevant national laws and regulations, as well as the guidelines issued by the CSRC and the Shenzhen Stock Exchange concerning listed company governance.

1. Shareholders and the Board of Shareholders

The Board of Shareholders is the highest authority of the Company. The Company is committed to safeguarding the legitimate rights and interests of shareholders, and shareholders exercise their powers through the shareholders' meeting. The Company strictly adheres to the provisions of the Articles of Association, the Rules of Procedure for the Board of Shareholders, and other systems regarding the convening, holding, and voting procedures of shareholders meetings. It treats all shareholders, especially minority shareholders, equally and ensures that all shareholders have an equal standing and can fully exercise their rights. The Company highly values shareholder returns and strictly follows the Guidelines for Listed Company Supervision Guidelines No. 3 – Cash Dividends of Listed Companies and other relevant provisions. The Company has established and implemented a consistent and reasonable profit distribution plan, maintaining the consistency and rationality of its dividend policy. During the reporting period, the Company held four shareholders' meetings. In addition to physical meetings, the Company also provided a secure, economical, and convenient online voting method to facilitate shareholders participation. The shareholders' meetings were held in compliance with relevant laws and regulations, and all matters submitted for the approval of the board of shareholders were separately counted for minority investors' votes. The results of the vote counting were promptly disclosed, effectively protecting the rights of minority shareholders and ensuring that all shareholders, especially minority shareholders, could fully exercise their shareholder rights.

2. The Company and Controlling Shareholder

The Company has independent and complete business and autonomous operational capabilities, and operates independently from the controlling shareholder in terms of business, personnel, assets, organization, and finances. During the reporting period, the Company's controlling shareholder adhered to the Guidelines on Listed Company Governance, the Company's Articles of Association, and the Company's Related Party Transaction Management System. The controlling shareholder strictly regulated its actions and exercised its rights through the shareholders' meetings in accordance with the law. There were no instances of the controlling shareholder or its affiliates intervening directly or indirectly in the Company's decision-making or operations. Additionally, there were no instances of the controlling shareholder or its affiliates occupying the Company's funds or assets.

3. Directors and board of directors

The Company strictly follows the provisions of the Articles of Association and the Rules of Procedure for the Board of Directors to convene and hold board meetings. The procedures for board decision-making and information disclosure comply with the relevant provisions. All of the Company’s directors are able to carry out their work in accordance with the Rules of Procedure for the Board of Shareholders and the Independent Director System. They diligently attend board and shareholder meetings, exercise their powers in accordance with the law, and perform their duties responsibly. The Company’s independent directors strictly adhere to the Management Measures for Independent Directors of Listed Companies of the China Securities Regulatory Commission ("CSRC") and the Company’s Independent Director System and Independent Director Special Meeting Working System. They maintain full independence in their work and, with a diligent, conscientious, and loyal work attitude, actively participate in the Company's decision-making. Independent directors engage in various forms of participation, including attending meetings, on-site investigations, reviewing documents, and listening to reports and discussions. They thoroughly review various proposals, such as related party transactions and cash dividends, and convene special meetings to deliberate on these matters. Independent directors fully exercise their supervisory and check-and-balance roles, safeguarding the interests of the Company and all shareholders, especially minority shareholders. The board of directors has established five specialized committees: the Strategy Committee, Compensation and Appraisal Committee, Audit Committee, Nomination Committee, and ESG Management Committee. Each committee is responsible for discussing, making decisions on, supervising, and evaluating significant company matters, based on the corresponding implementation guidelines. These committees play a crucial role in supporting the board in making scientific decisions, enhancing decision-making efficiency and quality.

4. Performance Evaluation and Incentive Mechanism

According to the Articles of Association, the Company’s board of directors decides on the appointment or dismissal of the Company’s president, vice presidents, CFO, board secretary and other senior executives, as well as on their remuneration and reward/punishment matters. The board, based on the president's nominations, decides on the appointment or dismissal of the Company's vice presidents, CFO, board secretary and other senior executives, and determines their compensation and reward/punishment matters. The performance evaluations of directors and senior executives are conducted by the Company’s Human Resources Department on a daily basis. At the end of the year, the Company’s Compensation and Appraisal Committee assesses and evaluates their performance. In accordance with the Corporate Governance Code for Listed Companies (Revised in October 2025), the performance-based remuneration for directors and senior executives should account for no less than 50% of the total of their base salary and performance-based compensation. The Company has established and continually improved fair and transparent performance evaluation standards for directors and senior executives, along with an incentive and restraint mechanism.

5. Stakeholder Interests

The Company fully respects and protects the legitimate rights and interests of relevant stakeholders, strengthening communication and dialogue with all parties to achieve a balanced coordination of interests among society, shareholders, the Company, and employees, thereby promoting the Company’s sustained, stable, and harmonious development. In safeguarding shareholders' interests, the Company strictly adheres to the relevant regulations, treating all shareholders equally, especially minority shareholders. By standardizing the convening, holding, and voting procedures of the shareholders’ meetings, the Company ensures that all shareholders have equal rights and the opportunity to fully exercise their rights. In safeguarding employee rights and interests, the Company, based on its strategic and business development needs, continuously advances and refines talent mechanisms, including talent pipeline development, learning and development, career pathways, end-to-end performance management, and compensation and incentive systems. It regularly evaluates and monitors employee engagement, satisfaction levels, and corporate culture indices, continuously improves areas of employee concern, fully leverages employee capabilities, and stimulates employee vitality, thereby achieving organizational objectives while supporting employees in realizing their personal development goals. For the protection of consumers' rights and interests, the Company has enhanced the functionality of official channel service platforms such as 4008 service hotline, brand official website, WeChat official account, to ensure timely response to user needs and issues. Additionally, the Company has launched services like the M-Fresh preservation commitment for refrigerators to improve consumer satisfaction. In safeguarding supplier rights and interests, the Company has established a comprehensive procurement management system, regularly optimized and updated procedural documents, standardized digital system tools, and exercised strict control over every stage of the procurement process. It cultivates core and strategic suppliers, implements a high-end supply chain development program, and fosters a collaborative, cooperative, and mutually beneficial relationship with suppliers. In safeguarding the interests of stakeholders, the Company, based on the principle of equality and mutual benefit, promotes two-way communication and information sharing, striving to establish a win-win cooperation model of shared development and growth with its stakeholders.

6. Information Disclosure and Transparency

During the reporting period, the Company strictly adhered to the Listing Rules of Stocks on the Shenzhen Stock Exchange and its Information Disclosure Management System, strengthening the management of information disclosure matters and actively fulfilling its information disclosure obligations. The Company used Securities Times, China Securities Journal, and the Juchao Website (www.cninfo.com.cn) as its designated media for information disclosure. During the reporting period, the Company implemented the Insider Information Registration System, Insider Information Confidentiality System, and External Information Reporting and Usage Management System. The Company maintained strict confidentiality procedures for significant unpublished insider information, controlling the scope of individuals with access to such information. The Company diligently fulfills its obligations to provide true, accurate, timely, and complete information disclosure, ensuring that all investors have equal access to information and other legal rights.

7. Investor Relations Management

The Company continuously improves its investor communication mechanisms, deepens its engagement with investors, and enhances their understanding and recognition of the Company, thereby effectively protecting the legitimate rights and interests of investors. During the reporting period, the Company strengthened its interactions with investors in various forms, actively responding to their concerns and ensuring smooth communication channels. This helped establish an efficient and fair communication bridge between the Company, investors, and the public.

The Company engaged with investors via the Shenzhen Stock Exchange's "Easy Interaction" platform (irm.cninfo.com.cn), carefully listening to their opinions and suggestions, and ensuring that the interests of minority shareholders were well-protected. The Company also standardized the reception of investor visits, telephone inquiries, and responses to faxes and emails. Additionally, the Company prudently handled media reports and treated all investors and institutional research visits and consultations in a fair, just, and transparent manner. All communications related to investor interactions were promptly disclosed, ensuring that all investors enjoyed equal access to information and other legal rights. Moreover, the Company maintained regular communication with investors through telephone conferences, participation in investment strategy meetings, and other channels. These efforts further increased investors' understanding of the Company and continuously improved transparency in the Company's operations.

To help investors gain a better understanding of the Company's performance, financial status, and other key aspects, the Company organized the 2024 annual online performance briefing. This provided investors with a more comprehensive understanding of the listed company, enhanced transparency, and helped safeguard investors' legal rights. The Company remains committed to maintaining shareholders' equity, upholding the principle of returning value to shareholders, and providing long-term, steadily increasing dividend returns. During the reporting period, the Company referred to the Return Plan for Shareholders for the Next Three Years (2024-2026) and implemented the 2024 profit distribution plan, sharing the development achievements with its shareholders.

(II) Actual corporate governance status and compliance with legal, administrative regulations, and CSRC requirements

□ Yes √ No

There are no significant discrepancies between the Company’s governance practices and the relevant laws, administrative regulations, and the governance standards issued by the CSRC.

II. Independence of the Company from the controlling shareholder and actual controllers in assets, personnel, finances, organizational structure, and business operations

The Company and its controlling shareholder and actual controller are completely separated in terms of business, personnel, assets, organizational structure, and finances, each maintaining independent accounting, assuming their own responsibilities and risks, and possessing fully independent business operations and self-sufficient management capabilities.

1. Business independence: The Company possesses independent and complete business operations as well as self-sufficient management capabilities. It has dedicated departments for procurement, production, technology, sales, and human resources, managing its operations autonomously, with production and operational personnel operating independently from the controlling shareholder and their affiliated entities. The Company's business operations are not influenced by or dependent on the controlling shareholder or its affiliates.

2. Personnel independence: The Company's personnel, labor, human resources, and payroll are entirely independent. The President, Vice Presidents, CFO, Board Secretary ad other senior executives work exclusively for the Company and receive compensation directly from it. They do not hold any non-directorial administrative positions in the controlling shareholder or its affiliated entities and do not receive compensation from them.

3. Asset independence: The Company owns independent production and operational facilities from the controlling shareholder, with a complete asset structure, including production systems, auxiliary production systems, supporting facilities, land use rights, and property ownership. The Company also has independent procurement and sales systems, and there are no instances of assets or funds being occupied by the controlling shareholder or its affiliates.

4. Organizational independence: The Company has established an organizational structure that is fully independent of the controlling shareholder. The board of shareholders, board of directors, and internal departments operate independently without interference from the controlling shareholder in the Company's operational decisions. The Company has strengthened its power-checking mechanism through the board of shareholders, board of directors, independent directors, and various specialized committees, ensuring an effective corporate governance structure.

5. Financial independence: The Company has an independent financial management department, with its own accounting system and financial management policies. It operates separate bank accounts and files tax returns independently. The Company does not share bank accounts with the controlling shareholder or any other entity controlled by them. As an independent taxpayer, the Company fulfills all tax reporting and payment obligations as required by law.

III. Same-Industry Competition

□ Applicable √ Not applicable

IV. Board of Directors and Senior Executives

(I) Basic information

Note: In accordance with the Company Law and Guidelines for Listed Companies, the Company will implement a reform of the board of supervisors by eliminating the board and supervisory roles starting from September 2025.

1. Resignation of Directors and Senior Executives During the Reporting Period

√ Yes □ No

(1) On June 17, 2025, Mr. Pang Haitao resigned from his position as CFO and any other positions due to a job transfer. Currently holds a position in an entity related to the controlling shareholder.

(2) On October 21, 2025, Ms. Li Xia resigned from her position as the Board Secretary due to job adjustments, but she continued to serve as the Vice President, Chief Compliance Officer, and General Counsel. On January 21, 2026, Ms. Li Xia resigned from her position as the Vice President, Chief Compliance Officer, General Counsel, and all other positions due to a job transfer. Currently holds a position in an entity related to the controlling shareholder.

(3) On November 25, 2025, Mr. Zhong Ming resigned from his position as Director, Member of the Strategy Committee, Nomination Committee, ESG Management Committee, and all other positions of the 11th Board of Directors due to a job transfer.,Still holding a position in a related party entity.

(4) On January 26, 2026, Mr. Wu Dinggang resigned from his positions as Director, Chairman, Chair of the Strategy Committee, Member of the Audit Committee, Member of the Nomination Committee, Member of the Compensation and Appraisal Committee, Chair of the ESG Management Committee, and all other positions of the 11th Board of Directors due to a job transfer, Still holds a position in the controlling shareholder's entity.

(5) On April 1, 2026, due to the restructuring of the Company's governance, Mr. Cheng Ping no longer serves as a Director of the 11th Board of Directors, Member of the Strategy Committee,

Member of the ESG Management Committee, or holds any other position in the Company. He still holds a position at the controlling shareholder’s related entity.

(6) On April 1, 2026, Mr. Hu Zhaogui resigned from his position as Vice President due to a job transfer but continued to serve as the Chairman of the Company's subsidiary, Sichuan Changhong Air Conditioner Co., Ltd.

(7) On April 1, 2026, Mr. Kou Huameng resigned from his position as Vice President and all other positions due to a job transfer. Currently serving in related positions at affiliated units.

(8) On April 1, 2026, Mr. Wang Xiaocheng resigned from his position as Vice President due to a job transfer. Continued to hold a position at the company afterward.

2. Changes in directors and senior executives

√ Applicable □ Not applicable

(II) Employment information

1. Professional Background, Key Work Experience, and Current Responsibilities of the Company’s Current Directors and Senior Executives

(1) Li Xiaodong, male, Tibetan, born in April 1984 in Pingwu, Sichuan, a member of the Communist Party of China, with a graduate degree in Business Administration from the University of Electronic Science and Technology of China, holding a Master's degree in Business Administration. Mr. Li has held various positions including Business Manager at Sichuan Changhong Air Conditioner Co., Ltd.; Office Supervisor at Sichuan Changhong Electronics Holding Group Co., Ltd.; Head of Operations Management Department at Mianyang Science & Technology City Big Data Technology Co., Ltd.; Director of the Mass Organization Office and Secretary of the Youth League Committee at Sichuan Changhong Electronics Holding Group Co., Ltd.; Director of the Corporate Planning Department at Sichuan Changhong Electric Co., Ltd.; and Senior Expert and Convener of the Thought Laboratory, Director of the Party Committee Organization Department, Director of the Talent Development Department, and Director of the Changhong Training Center at Sichuan Changhong Electronics Holding Group Co., Ltd. He currently serves as a Member of the Party Committee of Sichuan Changhong Electronics Holding Group Co., Ltd. and Chairman of the Company.

(2) Tang Youdao, male, Han, born in July 1970 in Xuancheng, Anhui, a member of the Communist Party of China, with a Bachelor's degree in Industrial Management Engineering from Wuhan University of Technology. Mr. Tang has held various positions including Overseas Marketing Manager, Marketing Department Head, Overseas Marketing Department Head, General Manager of the Overseas Business Division, General Manager of the Refrigerator-washer Division Headquarters, and General Manager and Vice President of the International Refrigeratorwasher Division. He currently serves as a director and president of the Company, and Chairman of Zhongke Meiling Cryogenic Technology Co., Ltd.

(3) Zhao Qilin, male, Han, born in September 1975 in Nanjiang, Sichuan, a member of the Communist Party of China, with a Bachelor's degree in Rural Finance from Southwest University of Finance and Economics. He has held various positions, including Accountant and Investment Project Manager in the Finance Department, Manager of the Asset Management Division and Investment Management Division, Securities Affairs Representative, and Director of the Asset Management Department at Sichuan Changhong Electric Co., Ltd.; Financial Manager at Sichuan Changhong Innovation Investment Co., Ltd.; Chief Financial Officer of Sichuan Broadcasting & Television Starry Sky Changhong Digital Mobile TV Co., Ltd.;and Financial Director and Joint

Company Secretary at Changhong Jiahua Holdings Co., Ltd. He currently serves as the Board Secretary, Chief Compliance Officer, General Counsel, Director of the Board Office, ESG Management Office Director, and Comprehensive Management Department Head at Sichuan Changhong Electric Co., Ltd., Chairman of Sichuan Changhong Minsheng Logistics Co., Ltd. and Director of the Company.

(4) Yi Suqin, female, Han, born in August 1978 in Xiantao, Hubei, a member of the Communist Party of China. She holds a master’s degree in Business Administration (MBA) from the University of Electronic Science and Technology of China and a bachelor’s degree in International Accounting from Zhongnan University of Economics and Law. She is a senior accountant. She has held various positions at Sichuan Changhong Electric Co., Ltd., including Supervisor Accountant at the Jining Sales Branch and Shijiazhuang Sales Branch, Marketing and Financial Supervisor, and Cost and Expense Manager at the Multimedia Company, Tax Manager and Head of the Tax Department at the Finance Department, Senior Manager of Tax and Comprehensive Affairs, and Deputy Director of the Financial Management Department. She currently serves as Financial Department Director at Sichuan Changhong Electronics Holding Group Co., Ltd., Director of Sichuan Changhong Group Finance Co., Ltd., Director of Mianyang Investment Holding (Group) Co., Ltd., and Director of the Company.

(5) Lu Haiyang, male, Han, born in October 1984 in Ji'an, Jiangxi, a member of the Communist Party of China, with a Bachelor's degree from Zhejiang University of Technology. Mr. Lu has served as the Head of the Economic Audit Section at the Mianyang Audit Bureau and Deputy Director of the Audit Department at Sichuan Changhong Electronics Holding Group Co., Ltd. He currently serves as the Employee Director and Union Chairman of the Company.

(6) Fang Wei, male, Han, born in September 1969 in Wuhu, Anhui, a member of the Communist Party of China, a Senior Accountant with a diploma. Mr. Fang has held various positions including Section Chief of the Finance Department at Hefei Sifang Chemical Group Co., Ltd.; Deputy Director and Director of the Financial Planning Department at Hefei Industrial Investment Holding Co., Ltd.; and General Manager of the Financial Planning Department at Hefei Industry Investment Holding (Group) Co., Ltd. He currently serves as the Chief Economist at Hefei Industrial Investment Holding Co., Ltd. and as a director of the Company.

(7) Mou Wen, female, Han, born in September 1965 in Hengshan, Hunan, with a Master's degree in Business Administration from Sichuan University. She has held positions as a Lecturer and Associate Professor in Accounting at the Business School, Sichuan University. She has also served as an Independent Director at companies including Tibet Mining Development Co., Ltd., Sichuan Jinlu Group Co., Ltd., Changhong Huayi Compressor Co., Ltd., Jinhui Liquor Co., Ltd., Sichuan Teway Food Group Co., Ltd., Hebei Baoli Engineering Equipment Group Co., Ltd., Fulin Precision Machining Co., Ltd., and Chengdu Silicon Treasure Technology Co., Ltd. Additionally, she has been an Independent Director at Sichuan Joyou Digital Technology Co., Ltd., a member of the Investment Decision-Making Advisory Committee at Sichuan Chuanjiao Road & Bridge Co., Ltd., and a Financial Advisor to Sichuan Daka Electric Co., Ltd. She is currently an Associate Professor of Accounting and a Master's Supervisor at the Business School, Sichuan University. She also serves as an Independent Director at Tibet Mining Development Co., Ltd., Chengdu Ruixue Fengtai Precision Electronics Co., Ltd., and as an Independent Director at the Company.

(8) Hong Yuanjia, male, Han, born in February 1975 in Shantou, Guangdong, with a Master's degree, graduated from Shanghai University of Finance and Economics with a major in International Business Management, and a Master's degree in MPAcc (Master of Professional Accounting) from Fudan University. He is a Certified Public Accountant, International Accountant (AIA), Intermediate Accountant, and Intermediate Economist. Mr. Hong has held various positions including Foreign Currency Payable Supervisor and Investment Supervisor at China Eastern Airlines Corporation Limited, Deputy Manager of the Finance Department at Sancheng Hongji (Hong Kong) Co., Ltd. Shanghai Representative Office, Accounting Manager at GE Lighting Co., Ltd., Accounting Manager at G&E Industrial Supplies Co., Ltd., and Financial Director at Lineage Power. He currently serves as the APAC Financial Director at Elo Touch Solutions (Shanghai) Co., Ltd. and as an Independent Director of the Company.

(9) Cheng Wenlong, male, Han, born in September 1969 in Ningguo, Anhui, with a Doctoral degree, graduated from the University of Science and Technology of China with a Ph.D. in Engineering Thermophysics. Mr. Cheng has held various academic positions at the University of Science and Technology of China, including Assistant Professor, Lecturer, Associate Professor, and Professor. He has also served as an Independent Director at Beijing Jones Tech Co., Ltd. He currently serves as a Professor and Doctoral Supervisor at the School of Engineering Science, University of Science and Technology of China, and as the Vice President of the Anhui Association of Refrigeration, in addition to being an Independent Director of the Company.

(10) Huang Herong, male, Han, born in October 1975 in Lichuan, Jiangxi, a member of the Communist Party of China, graduated from Zhejiang University with a major in Refrigeration and Cryogenic Technology and earned an MBA from Sun Yat-sen University. Mr. Huang has held positions such as Head of the Technical Development Department, General Manager of the Marketing Company, Vice General Manager, and General Manager at Zhongshan Changhong Electric Co., Ltd. He has also served as Vice General Manager and General Manager of the Central Air Conditioning Division of Sichuan Changhong Air Conditioner Co., Ltd., Vice General Manager of the International Division at Changhong Meiling. Currently, he serves as the Vice President of the Company and General Manager of Sichuan Changhong Air Conditioner Co., Ltd.

(11) Tang Shenjie, male, Han, born in October 1987 in Lu'an, Anhui, with a Bachelor's degree from Anhui University of Engineering, a Senior Engineer. Mr. Tang has held various positions including Product Manager at Changhong Meiling User and Product Center, Director of the Standardized Operations Platform, Director of the Product Competitiveness Platform, and

Assistant General Manager. He currently serves as the Vice President of the Company and General Manager of the Refrigerator (Freezer) Division.

(12) Zhang Hao, male, Han, born in February 1987 in Xuancheng, Anhui, with a Bachelor's degree from Hefei University of Technology. Mr. Zhang has held various positions including Product Planning Manager of the Washing Machine Division, General Manager of the User and Product Center, and Vice General Manager of the Washing Machine Division at Changhong Meiling Co., Ltd.. He currently serves as the Vice President of the Company and General Manager of the Washing Machine Division.

(13) Yang Bing, male, Han, born in December 1974 in Xichong, Sichuan, a member of the Communist Party of China, a Senior Accountant with a Bachelor's degree, graduated from Shanxi University of Finance and Economics. Mr. Yang has held various positions including Financial Supervisor at the Marketing Department, Audit Accountant, Manager of the Internal Control Department, Manager of the General Ledger Department, General Manager of the Capital Management Center at Sichuan Changhong Electric Co., Ltd., CFO at Zhongshan Changhong Electric Co., Ltd., Vice General Manager and Financial Director at Sichuan Changhong Air Conditioner Co., Ltd., and CFO at Sichuan Zhiyijia Network Technology Co., Ltd. He currently serves as the CFO of the Company and as a Director of Zhongke Meiling Cryogenic Technology Co., Ltd.

(14) Yang Liuxu, female, Han, born in January 1985 in Qingyang, Gansu, with a Bachelor's degree in Accounting from Northeast Agricultural University, and a Mid-level Accountant. Ms. Yang has held positions such as Accountant in the Finance Department at Sichuan Huafeng Enterprise Group Co., Ltd., Asset Management Project Manager, Financing and Mergers & Acquisitions Manager, Restructuring and Reform Manager, Supervisor of the Board Office, and Securities Affairs Representative at Sichuan Changhong Electric Co., Ltd. She currently serves as the Board Secretary of the Company and a Director of Zhongke Meiling Cryogenic Technology Co., Ltd.

2. Situation where the controlling shareholder and actual controller concurrently serve as the chairman and CEO of the listed company

□ Applicable √ Not applicable

3. Employment status at shareholder units

√ Applicable □ Not applicable

4. Employment status at other units

√ Applicable □ Not applicable

In addition to their positions at the Company and its subsidiaries, the current directors and senior executives of the Company hold the following positions in other units:

5. Penalties imposed by securities regulatory authorities on current and past directors and senior executives in the last three years

□ Applicable √ Not applicable

(III) Compensation of directors and senior executives

1. Decision-making process, basis, and actual payment of compensation for directors and senior executives

The Company’s board of directors has set up a Compensation and Appraisal Committee, which is responsible for formulating the evaluation criteria for directors and senior executives, and conducting the evaluations. The committee is also responsible for formulating and reviewing the compensation policies and plans for directors and senior executives and reports to the board of directors. The Compensation and Appraisal Committee proposes the compensation amount and reward methods for directors and senior executives based on their performance evaluations and the Company’s senior executives incentive plans. The Company determines the compensation based on operational performance and other factors.

2. Compensation of directors and senior executives during the reporting period

Unit: RMB 10,000

Note: 1. During the reporting period, the total pre-tax remuneration received by directors and senio management from the company decreased by approximately 31.88% year-on-year compared with 2024.

2. In the table above, the total pre-tax compensation received by Mr. Tang Youdao, Mr. Hu Zhaogui, Mr. Kou Huameng, Ms. Li Xia, and Mr. Pang Haitao from the company includes the salary already paid in 2025, as well as deferred 2024 performance incentives and part of the performance annual salary. Mr. Tang Youdao: RMB 622,600; Mr. Hu Zhaogui: RMB 636,500; Mr. Kou Huameng: RMB 358,700; Ms. Li Xia: RMB 222,700； and Mr. Pang Haitao: RMB 272,400.

3.Mr. Yang Bing has served as CFO since June 18, 2025.

4. Ms. Yang Liuxu has served as the Board Secretary since October 22, 2025.

5. Mr. Pang Haitao served as CFO from January 1, 2025, to June 17, 2025.

6. Mr. Wang Xiaocheng has served as the Vice President of our company since May 28, 2025. Evaluation basis for actual compensation received by all The compensation for directors and senior executives is subject

Explanation of other information

□ Applicable √ Not applicable

V. The Performance of Directors' Duties During the Reporting Period

(I) Attendance of directors at Board and shareholders’ meetings

Explanation for Not Attending Two Consecutive Board Meetings in Person

During the reporting period, no director of the Company failed to attend two consecutive board meetings in person.

(II) Objections raised by directors on the Company’s matters

Did directors raise objections to the Company’s relevant matters?

□ Yes √ No

During the reporting period, no objections were raised by the directors regarding the Company’s matters.

(III) Other explanations regarding the performance of directors' duties

Were directors' suggestions accepted by the Company?

√ Yes □ No

During the reporting period, the Company’s directors strictly followed the requirements of relevant laws and regulations, such as the Company Law, Securities Law, the Listing Rules of Stocks on the Shenzhen Stock Exchange and the Self-Regulation Guidelines of the Shenzhen Stock Exchange for Listed Companies No. 1 – Standard Operations for Companies Listed on the Main Board, actively attended board meetings, and participated in shareholders’ meetings. They diligently and conscientiously fulfilled their duties, made prudent and scientific decisions on various matters discussed by the board of directors, and proposed relevant opinions and suggestions. All the opinions and suggestions raised by the directors on the Company’s major decisions have been adopted.

VI. Activities of the Board’s Special Committees During the Reporting Period

VII. Work of the Audit Committee

During the reporting period, the Audit Committee examined whether the Company faced any risks

□ Yes √ No

The Audit Committee has no objections regarding the supervisory matters during the reporting period.

VIII. Company Employees

(I) Number of employees, professional composition, and education level

(II) Compensation policy

The Company strictly complies with relevant national laws and regulations, and, in line with its strategic development needs, continuously builds a compensation management system that ensures internal equity and external competitiveness, providing strong support for the Company’s sustainable development.

1. Establishing a scientific compensation system to strengthen value orientation

The Company has established a comprehensive compensation management system and performance management framework, clearly defining directions for employee performance improvement. This effectively guides employees to proactively identify gaps, address weaknesses, and continuously enhance their professional skills and work efficiency. Regarding job value assessment, the Company has developed evaluation models covering key positions, scientifically measuring them across dimensions such as job responsibilities, required competencies, and level of contribution. Based on these assessments, fair and reasonable compensation standards are determined. At the same time, a salary adjustment mechanism aligned with employee growth levels has been established, reinforcing the compensation management philosophy of “value-based on position and performance-oriented”, ensuring the internal fairness and external competitiveness of the compensation system.

2. Implementing differentiated incentives to stimulate organizational vitality

To promote the achievement of performance targets across business units, the Company designs differentiated reward programs tailored to the characteristics of each business, balancing systemic fairness while ensuring the effectiveness of positive guidance, thereby effectively stimulating operational vitality. At the same time, a diversified incentive system has been established, focusing on four core dimensions: growth incentives, welfare incentives, recognition incentives, and emotional incentives, comprehensively enhancing employee motivation and sense of belonging.

3. Opening career development pathways to promote talent growth

During the reporting period, the Company further optimized its position promotion and evaluation mechanisms, refining the position system and hierarchical promotion channels. Through mechanisms such as point-based evaluations and competency growth frameworks, aligned with dynamic salary adjustments, team vitality is effectively stimulated. The Company continues to advance full-process performance management, enhancing digital tools for performance communication and feedback, and implements performance assessments, communication, and feedback at different cycles according to business characteristics. Performance evaluation methods are continuously optimized, enforcing rigid performance standards and “survival of the fittest” management models, and strengthening the application of performance results in areas such as position promotion and demotion, talent selection, talent mobility, salary adjustment, and annual awards. These measures promote an optimized talent structure and facilitate the joint development of employees and the Company.

(III) Training plan

Aiming to build a learning-oriented organization, the Company has systematically developed a talent development system that covers all employees and spans the entire employment lifecycle. Based on the annual talent development and training framework, the Company has further refined the standards and competency models for each talent stream, launched the Meiling Learning Map, and continuously extracted and consolidated internal experience and professional capabilities, promoting close integration of training with employee growth and career development.

1. Strengthening the construction of the talent succession pipeline to consolidate the foundation for sustainable development

The Company has established a clear talent standard evaluation model and completed the development of talent standards for management positions, supervisory positions, and professional positions across all streams. A talent succession map has been created for key positions, systematically reviewing the current capabilities of existing talent and clarifying future succession paths. Special attention has been given to optimizing the structure of the “Yongquan Program” talent reserve pipeline. Through the selection of young reserve cadres and regular review and assessment of the talent pool, the Company dynamically adjusts the reserve database for mid-to-senior management, the A-level successor pool, the A-level growth pool, the B-level supervisory pool, and the pool of outstanding university graduates, forming a well-structured and adequately stocked talent pipeline. Simultaneously, a readiness assessment model for the talent succession pipeline has been developed, comprehensively evaluating candidates across multiple dimensions, including values, performance, career experience, competency for target positions, and leadership. This allows precise measurement of talent readiness and the targeted assignment of development plans aligned with their career paths.

2. Implementing targeted development programs to enhance training effectiveness

Closely aligned with business development needs, the Company has built a multi-level, multi-category talent development system. Training engagement and professional horizons are stimulated through project-based exercises, industry exchanges, and similar activities. To address common team deficiencies and individual skill gaps, targeted development programs are formulated using methods such as external course enrollment, internal course development, corporate visits, and internalization of expert experience. For critical positions, a promotionoriented learning map has been established to clarify growth pathways and professional development trajectories.

A training organizational support system has been established, forming a classified and hierarchical talent training framework. Mechanisms such as career planning analysis, targeted course recommendations, milestone monitoring, project reviews, and effectiveness evaluations effectively guide employees in both vertical promotions and horizontal rotations (e.g., multiskilled development), resulting in comprehensive employee development. Training outcomes and the number of promoted talents have steadily increased.

3. Enriching knowledge asset management to promote experience transfer and professional development

The Company continuously optimizes its knowledge asset management system, redefining knowledge asset standards and organizational support frameworks. Efforts are made to enrich and update the educational materials within knowledge asset libraries such as the Meiling Technical Academy, Management Academy, Manufacturing Academy, Quality Academy, Safety and Environmental Academy, and Party Building Academy. Building on the “Internal Trainer Certification System” and the “Benchmark Position Knowledge Extraction Project”, professional live-stream courses are optimized and internalized to form a standardized talent knowledge repository, facilitating the transfer and sharing of experience. In parallel, the Company plans and implements the Learning Map Project, systematically designing sequences for areas such as process, structure, and finance, closely linking job qualifications with learning pathways. This creates an integrated connection between talent development and learning growth, promoting the scientific, systematic, and efficient cultivation of professionals across all sequences. Focusing on key position sequences, a phased micro-course resource library for learning maps is developed to support the deepening professionalization of the talent pipeline.

4. Labor outsourcing

□ Applicable √ Not applicable

IX. Company Profit Distribution and Capital Reserve-to-Share Capital Conversion

(I) Profit distribution policy during the reporting period, particularly the formulation, implementation, or adjustment of cash dividend policy

√ Applicable □ Not applicable

During the reporting period, the Company strictly implemented its profit distribution policy in accordance with the Articles of Association and the Return Plan for Shareholders for the Next Three Years (2024 -2026). The formulation and execution of the Company’s cash dividend policy complied with the provisions of the Articles of Association, the Three-Year Shareholder Return Plan (2024–2026), and the resolutions of the Board of Shareholders. Dividend standards and ratios were clearly defined, relevant decision-making procedures and mechanisms were wellestablished, and the responsibilities of independent directors were clearly defined and effectively fulfilled. Minority shareholders had sufficient opportunities to express opinions and make requests, ensuring that their legitimate rights and interests were protected.

During the reporting period, the Company implemented the 2024 annual profit distribution plan. Based on the total share capital of 1,029,923,715 shares as of the record date for the 2024 equity distribution plan (comprising 881,733,881 A shares and 148,189,834 B shares), a cash dividend of RMB 3.30 per 10 shares (inclusive of tax) was distributed to all shareholders, totaling RMB 339,874,825.95. The dividend accounted for 48.60% of the net profit attributable to shareholders of the listed company in 2024.

(II) Whether the company was profitable during the reporting period with positive distributable profit of the parent company but did not propose a cash dividend plan

□ Applicable √ Not applicable

(III) Profit distribution and capital reserve-to-share capital conversion during the reporting period

√ Applicable □ Not applicable

the Articles of Association, taking into account the interests of shareholders and the Company’s long-term development needs, it is proposed that: The Company based the distribution on the total share capital of 1,029,923,715 shares, excluding shares held in the special securities account for repurchase. A cash dividend of RMB 2.10 per 10 shares (inclusive of tax) was distributed to all shareholders. No bonus shares were issued, and no shares were converted from the capital reserve. The total cash dividend is expected not to exceed RMB 211,831,650.45 (inclusive of tax, based on the estimated number of shares repurchased as of March 31, 2026). After this distribution, the remaining undistributed profits of the parent company will be carried forward for distribution in subsequent years.

If the total share capital of the company changes or the number of shares in the repurchase special securities account changes between the announcement of the company's profit distribution plan and the record date for the implementation of the equity distribution, the total distribution amount shall be adjusted accordingly according to the principle of 'unchanged per-share distribution ratio'.

X. Implementation of the Company’s Equity Incentive Plans, Employee Stock Ownership Plans, or Other Employee Incentive Measures

□ Applicable √ Not applicable

During the reporting period, the Company had no equity incentive plans, employee stock ownership plans, or other employee incentive measures, nor any implementation thereof.

XI. Construction and Implementation of Internal Control Systems during the Reporting Period

(I) Construction and implementation of internal control

In accordance with the Basic Standards for Enterprise Internal Control and its supporting guidelines, as well as relevant regulations such as the CSRC and Ministry of Finance jointly issued Rules for the Compilation and Disclosure of Information by Companies Publicly Issuing Securities No. 21—General Provisions on Annual Internal Control Evaluation Reports, and based on the Company’s internal control system and internal control evaluation methods, the Company has organized and carried out internal control work, effectively implementing internal controls. The Company continuously improves and optimizes its internal control system to adapt to the evolving requirements and changes of internal and external environments.

The Company’s 2025 Annual Internal Control Self-Evaluation Report fully, truthfully, and accurately reflects the actual status of the Company’s internal controls. The units, business activities, and matters included within the scope of the evaluation, as well as high-risk areas, cover the main aspects of the Company’s operations and management. The Company has maintained effective internal controls in high-risk areas and across all material aspects. During the reporting period, no material or significant deficiencies in internal control were identified.

(II) Specific instances of material deficiencies in internal control identified during the reporting period

□ Yes √ No

XII. Management and Control of Subsidiaries during the Reporting Period

Abnormalities in the management and control of subsidiaries

□ Yes √ No

XIII. Internal Control Evaluation Report or Internal Control Audit Report

(I) Internal control evaluation report

(II) Internal control audit report

√ Applicable □ Not applicable

Whether the accounting firm issued a non-standard opinion on the internal control audit report

□ Yes √ No

Consistency between the accounting firm’s internal control audit report and the board’s selfevaluation report

Whether a non-standard internal control audit opinion was issued in the reporting period or the previous year

□ Yes √ No

XIV. Rectification Status of Issues Identified in the Special Self-Inspection on Listed Company Governance

√ Yes □ No

For details, please refer to Item 15 of Chapter 4, Rectification of Issues Identified in the Special Self-Inspection on Listed Company Governance, in the Company’s 2022 Annual Report. As of now, the following issues identified during the Company’s self-inspection and review process have not yet been fully rectified:

(I) Subsidiaries’ holdings of the Company’s shares and rectification status

1. The Company’s wholly-owned subsidiary, Meiling Group, holds 1,141,053 restricted shares of the Company. These restricted shares held by Meiling Group represent the equity consideration it advanced on behalf of other non-tradable shareholders under the Company’s Share Reform Plan. In March 2016, pursuant to the approval of the SASAC, 49,477,513 stateowned shares of the Company originally held by the former shareholder Hefei Xingtai Holding Group Co., Ltd. (including 47,823,401 shares already held and 1,654,112 shares advanced on behalf of other non-tradable shareholders under the Share Reform Plan, along with related rights to the equity consideration) were transferred free of charge to Industry Investment Group. Therefore, the restricted shares of the Company held by Meiling Group should be transferred to Industry Investment Group free of charge.

2. According to the approval of the SASAC and relevant regulations, Meiling Group is required, after recovering all 1,654,112 shares of equity consideration advanced on behalf of other shareholders, to transfer the advanced shares and related rights it holds to Industry Investment Group free of charge in a single transaction. Currently, Meiling Group has only recovered 1,141,053 shares, while the holders of the remaining equity consideration shares have been repeatedly and unsuccessfully unreachable over the years, making the timeline for full recovery of the advanced shares highly uncertain. Nevertheless, the Company will continue to actively promote the recovery of the advanced shares by Meiling Group and, upon full recovery of all equity consideration shares, will promptly complete the relevant free transfer procedures. Until then, the restricted shares of the Company held by Meiling Group will not confer any shareholder rights during the holding period, including voting rights, dividend rights, or other entitlements.

XV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises legally required to disclose environmental information

√ Yes □ No

XVI. Social Responsibility

For detailed information in this section, please refer to the 2025 Environmental, Social and Corporate Governance (ESG) Report of Changhong Meiling Co., Ltd. disclosed by the Company on the same day on the Juchao website.

XVII. Efforts to Consolidate and Expand Poverty Alleviation Achievements and Promote Rural Revitalization

The Company has consistently and resolutely implemented the decisions and deployments of the CPC Central Committee and the State Council regarding rural revitalization, actively responding to national calls and contributing corporate strength to rural development. During the reporting period, the Company’s initiatives to support farmers extended to eight provinces and municipalities in China, focusing on local specialty agriculture and the real needs of farmers. These efforts assisted over 1,000 farmers in addressing the challenges of unsold local fruits and vegetables, bringing fresh and sweet produce from remote areas to consumers’ tables. The Company’s farmer-support initiatives not only continuously enhance brand value and fulfill corporate social responsibility but also serve as an important emotional bridge connecting the brand with its users, strengthening public recognition and trust in Changhong Meiling. At the same time, these initiatives help local specialty products reach a national market, showcasing the diversity and cultural charm of China’s rural areas and reinforcing cultural confidence. Looking ahead, the Company will continue to expand the scope of its farmer-support initiatives to help more farmers overcome the challenges of unsold agricultural products.

Section V Important Events

I. Fulfillment of Commitment Matters

(I) Commitment matters fulfilled during the reporting period and those not yet fulfilled as of the end of the reporting period by the Company’s actual controller, shareholders, related parties, acquirers, and other relevant parties

√ Applicable □ Not applicable

Note: Commitments that have been fully fulfilled will no longer be disclosed in the next periodic report.

(II) The Company has profit forecasts for certain assets or projects, and the reporting period is still within the forecast period; the Company shall provide an explanation of whether the original profit forecasts have been achieved and the reasons thereof

□ Applicable √ Not applicable

(III) The Company is involved in performance commitments

□ Applicable √ Not applicable

II. Non-Operational Fund Occupation from Controlling Shareholders and Its Related Party

□ Applicable √ Not applicable

No non-operational fund occupation from controlling shareholders and its related party in the reporting period.

III. External Guarantee out of the Regulations

□ Applicable √ Not applicable

No external guarantee out of the regulations occurred in the reporting period.

IV. Board of Directors’ Explanation Regarding the Most Recent “Non-Standard Audit Report”

□ Applicable √ Not applicable

V. Explanation by the Board of Directors and Independent Directors (If Any) on the Accounting Firm’s “Non-Standard Audit Report” for the Current Reporting Period

□ Applicable √ Not applicable

VI. Explanation of Changes in Accounting Policies, Accounting Estimates, or Corrections of Material Accounting Errors Compared with the Previous Year’s Financial Report

□ Applicable √ Not applicable

The Company had no changes in accounting policies or estimates, nor any corrections of material accounting errors during the reporting period.

VII. Explanation of Changes in the Scope of Consolidated Financial Statements Compared with the Previous Year’s Financial Report

√ Applicable □ Not applicable

The Company’s consolidated financial statements cover 25 subsidiaries, including Sichuan Changhong Air Conditioner Co., Ltd., Zhongshan Changhong Electric Co., Ltd., and Zhongke Meiling Cryogenic Technology Co., Ltd. Compared with the previous year, during the reporting period, one new subsidiary, Mianyang Changhong Smart Home Appliances Co., Ltd., was added to the scope of consolidation, and 1 subsidiary, Hefei IoT Technology Co., Ltd., was deregistered. For detailed information, please refer to Section VIII "Financial Report" of this report, specifically “IX. Changes in the Consolidation Scope" and “X. Equity in Other Entities".

VIII. Appointment and Dismissal of Accounting Firms

(I) Currently appointed accounting firm

(II) Change of accounting firm during the period

□ Yes √ No

Engagement of internal control audit firm, financial advisor, or sponsor

√ Applicable □ Not applicable

During the reporting period, the Company engaged Pan-China Certified Public Accountants LLP as its internal control audit firm, paying RMB 300,000 for internal control audit services.

IX. Risk of Delisting After the Annual Report Disclosure

□ Applicable √ Not applicable

X. Matters Related to Bankruptcy Reorganization

□ Applicable √ Not applicable

The Company did not experience any matters related to bankruptcy reorganization during the reporting period.

XI. Major Litigation and Arbitration Matters

√ Applicable □ Not applicable

Note: An estimated liability of RMB 33,463,900 was recognized in 2025. For details, please refer to “Section VIII Financial Report”, “V. Notes to Major Items of Consolidate Financial Statement”, specifically “40. Estimated liabilities” in this report.

Note: The Company's shareholding in Zhiyijia is 50%, and the products are sold through Zhiyijia's smart trading platform. The customers, channels and sales transactions corresponding to the products sold are controlled and docked by the company itself, and the external transaction object is Zhiyijia, and related party transactions are formed between the Company and Zhiyijia. In terms of payment settlement, the Company and Zhiyijia follow the principle of "external customer account period is Zhiyijia's account period to the Company, and external customer payment is Zhiyijia's payment to the Company, which is not allowed to be remained or transited at Zhiyijia". The amounts involved in this case are all accounts receivable and liquidated damages for overdue payment caused by the Company's sales through the smart trading platform of Zhiyijia, but the subject of the agreement is Zhiyijia, and this lawsuit will be filed by Zhiyijia. The Company and its associate Zhiyijia will claim their legitimate rights and interests according to law and actively take relevant measures to safeguard the legitimate rights and interests of the Company, Zhiyijia and the investors.

XII. Penalty and Rectification

□ Applicable √ Not applicable

XIII. Integrity of the Company and Its Controlling Shareholders and Actual Controllers

√ Applicable □ Not applicable

During the reporting period, the Company and its controlling shareholders and actual controllers maintained a good integrity status, with no instances of failing to comply with effective court judgments or defaulting on significant debts upon maturity.

XIV. Major Related Party Transaction

(I) Related party transaction with routine operation concerned

√ Applicable □ Not applicable

(II) Related party transactions arising from asset or equity acquisitions and disposals

□ Applicable √ Not applicable

No related party transactions involving asset or equity acquisitions or disposals occurred during the reporting period.

(III) Related party transactions involving joint external investments

□ Applicable √ Not applicable

No related party transactions involving joint external investments occurred during the reporting period.

(IV) Related party creditor’s rights and debts

√ Applicable □ Not applicable

Whether there are non-operating related party creditor’s rights and debts

□ Yes √ No

There were no non-operating related party creditor’s rights and debts during the reporting period.

(V) Transactions with financial companies with related party relationships

√ Applicable □ Not applicable

Deposit business

Credit facilities or other financial services

Note 1: Zhongke Meiling, a subsidiary of the Company, is a company listed on the Beijing Stock Exchange. For its transactions with related financial companies, please refer to Zhongke Meiling’s 2025 Annual Report.

Note 2: As of the end of the reporting period, Changhong Finance Company had a registered capital of RMB 2,693,938,365.84. The Company and Changhong Huayi each held 14.96% equity interests in Changhong Finance Company, while the Company’s controlling shareholder, Sichuan Changhong Electric Co., Ltd., and its controlling shareholder, Sichuan Changhong Electronics Holding Group Co., Ltd., each held 35.04% equity interests in Changhong Finance Company.

Note 3: On October 16 and November 3, 2023, the Company convened the 35th meeting of the 10th Board of Directors and the 2nd extraordinary general meeting of shareholders of 2023, respectively, and approved the continuation of financial service cooperation with Changhong Finance Company and the renewal of the Financial Services Agreement for a term of three years. Within its business scope, Changhong Finance Company provides a series of financial services, including deposit and loan services, to the Company and its subsidiaries (excluding Zhongke Meiling and its subsidiaries) in accordance with their requirements.

(VI) Transactions between the Company’s controlled financial company and related parties

□ Applicable √ Not applicable

There were no deposit, loan, credit, or other financial service transactions between the Company’s controlled financial company and related parties.

(VII) Other significant related party transactions

√ Applicable □ Not applicable

1. On May 23, 2025, upon deliberation and approval at the 16th meeting of the 11th Board of Directors and the 10th meeting of the 11th Board of Supervisors, it was agreed to increase the estimated amount of routine related party transactions for the Company to sell goods to Sichuan Changhong in 2025 by no more than RMB 12.5 million (excluding tax). After this increase, it is estimated that the total amount of routine related party transactions between the Company and its subsidiaries and Sichuan Changhong in 2025 for the sale of goods and provision of fuel and power will not exceed RMB 17.5 million (excluding tax).

2. On May 23, 2025, upon deliberation and approval at the 16th meeting of the 11th Board of Directors and the 10th meeting of the 11th Board of Supervisors, in accordance with the Company’s strategic development plan and the operational needs of its subsidiary Zhongshan Changhong, and in order to meet the production capacity demand for overseas air-conditioning sales, the Board of Directors approved that Zhongshan Changhong invest approximately RMB 296.42 million of self-raised funds to construct an air-conditioning project with an annual output of 4 million units per single shift (hereinafter referred to as the “Air-Conditioning Project”). To meet the site requirements for the implementation of the Zhongshan Changhong Air Conditioner Project, following on-site investigation, repeated demonstration and evaluation, and with the support of the Company’s controlling shareholder, Zhongshan Changhong intends to enter into an Industrial Plant Lease Intention Agreement with Guangdong Changhong Electronics Co., Ltd. (hereinafter referred to as “Guangdong Changhong”), a subsidiary of Sichuan Changhong. Guangdong Changhong will construct new plant facilities to be leased by Zhongshan Changhong for the implementation of the Air-Conditioning Project. The intended lease term is five years (from January 1, 2027 to December 31, 2031). Upon expiration of the lease term, both parties will negotiate subsequent leasing arrangements. The lease price shall be determined with reference to market prices. The preliminary intended monthly rent is set at RMB 20 per square meter (excluding tax, inclusive of rent and security fees, etc.). Based on this, the total rent for 5 years is estimated not to exceed RMB 212.30 million. The actual amount will be determined based on market conditions after completion of the plant.

3. On November 5 and November 24, 2025, upon deliberation and approval at the 23rd meeting of the 11th Board of Directors and the 2nd extraordinary meeting of Board of Shareholders of 2025, it was agreed to increase the estimated related party transaction limits for 2025 as follows: transactions for the Company and its subsidiaries to purchase goods from Sichuan Aichuang Technology Co., Ltd. shall not exceed RMB 140 million (excluding tax); transactions to purchase goods from Sichuan Changhong Jijia Fine Co., Ltd. shall not exceed RMB 50 million (excluding tax); transactions to sell goods to CHANGHONG (HK) TRADING LIMITED shall not exceed RMB 195 million (excluding tax); and transactions involving leasing and lease-in with Sichuan Changhong Electric Co., Ltd. and its subsidiaries shall not exceed RMB 12 million (excluding tax). After this increase, it is estimated that in 2025 the total amount of routine related-party transactions between the Company and its subsidiaries and Changhong Group and its subsidiaries (excluding Sichuan Changhong Electric Co., Ltd.) will not exceed RMB 4,200 million, and the total amount of routine related party transactions with Sichuan Changhong and its subsidiaries (excluding Changhong Huayi Compressor Co., Ltd.) will not

exceed RMB 21,575.50 million.

4. On November 28 and December 16, 2025, upon deliberation and approval at the 24th meeting of the 11th Board of Directors and the 3rd extraordinary meeting of Board of Shareholders of 2025, it was agreed that the total amount of routine related party transactions between the Company and its subsidiaries and related parties in 2026 shall not exceed RMB 27,514 million (excluding tax); it was also agreed that the Company will continue to carry out related party financial service transactions such as deposits and loans with Sichuan Changhong Group Finance Co., Ltd. in 2026.

5. On December 19, 2025, upon deliberation and approval at the 25th meeting of the 11th Board of Directors, it was agreed to extend the operating term of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership) (hereinafter referred to as the “Hongyun Fund”) by one year, bringing the cumulative operating term to 11 years (i.e., extended to October 18, 2026), and to execute the Amendment to the Partnership Agreement of Sichuan Hongyun New Generation Information Technology Venture Capital Fund Partnership Enterprise (Limited Partnership) to revise the operating term of the Hongyun Fund.

Relevant inquiry on websites for disclosure of interim reports on significant related party transactions

XV. Significant Contracts and Their Performance

(I) Custody, contracting, and leasing

1. Custody

□ Applicable √ Not applicable

The Company had no custody arrangements during the reporting period.

2. Contracting

□ Applicable √ Not applicable

The Company had no contracting arrangements during the reporting period.

3. Leasing

√ Applicable □ Not applicable

Description of leasing arrangements

For the Company’s operating lease arrangements, please refer to the relevant contents under “Investment Property”, “Fixed Assets”, “Right-of-Use Assets”, “Leases to Related Parties”, and “Leases from Related Parties” in the notes to the financial statements.

Projects generating profit or loss accounting for more than 10% of the Company’s total profit during the reporting period

□ Applicable √ Not applicable

The Company had no leasing projects generating profit or loss accounting for more than 10% of its total profit during the reporting period.

(II) Significant guarantees

√ Applicable □ Not applicable

Unit: RMB 10,000

Note: For the purpose of currency consolidation, the exchange rate used herein is USD to RMB at 7.0288 as of December 31, 2025.

The above guaranteed parties are wholly-owned and controlled subsidiaries of the Company. These subsidiaries are operating normally, with no overdue loan repayments, and the guarantee risks are controllable. During the reporting period, the Company and its subsidiaries did not provide any external guarantees; however, there were guarantees provided by the Company to its subsidiaries and by subsidiaries to their respective subsidiaries.

As of the end of the reporting period, the total approved guarantee limit for guarantees provided by the Company to its subsidiaries and by subsidiaries to their subsidiaries amounted to RMB 1,830.00 million; the total actual amount incurred was RMB 1,954.7514 million; and the total actual guarantee balance was RMB 915.7514 million, representing 15.05% of the Company’s net assets at the end of the latest reporting period.

Explanation of guarantees provided in composite forms: N/A

(III) Entrusted cash asset management

(1) Entrusted wealth management

√ Applicable □ Not applicable

Overview of entrusted wealth management during the reporting period

Unit: RMB 10,000

Specific circumstances where the Company, as a single principal, entrusts financial institutions to conduct asset management, or invests in high-risk entrusted wealth management products with lower safety and liquidity

√ Applicable □ Not applicable

Unit: RMB 10,000