Goertek Inc.

Annual Report 2025

Goertek

April 2026

Annual Report 2025

Section I Important Notes, Contents and Interpretations

The Board of Directors, directors, and senior management of the Company guarantee that the information presented in this report is true, accurate, and complete,free from false statements, misrepresentations and material omissions, and shall together be wholly liable for the truthfulness, accuracy and completeness of its contents.

Mr. Jiang Bin, the person in charge of the Company, and Mr. Li Yongzhi, the person in charge of accounting and the head of accounting department (accounting supervisor) guarantee that the financial report in this annual report is true, accurate, and complete.

All directors have attended the board meeting to review the annual report.

The future plans and some forward-looking statements in this report shall not be considered as commitments to investors. Investors and relevant persons should maintain sufficient risk awareness and understand the differences between plans, forecasts and commitments. Investors are kindly reminded to pay attention to investment risks.

The Company faces the risks in market, operation and management. For details, please refer to "Section III Management Discussion and Analysis, XI. Outlook for the Future Development of the Company" in this report.

The profit distribution proposal approved by the Board of Directors is: based on the total share capital registered on the record date minus the repurchased shares in the Company's specific securities repurchase account, the Company will distribute a cash dividend of RMB 2.00 (tax inclusive) for every 10 shares to all the shareholders, with no bonus shares and no conversion of capital surplus into share capital.

Contents

Section I Important Notes, Contents and Interpretations....... .. 2

Section Ⅱ Company Profile and Key Financial Indicators ...

Section III Management Discussion and Analysis..... 11

Section IV Corporate Governance, Environment and Society . . 33

Section V Important Matters .... ... 61

Section VI Changes in Shares and Shareholder Information ..... . 73

Section VII Bonds ..... .... 82

Section VIII Financial Report .... .. 85

Documents Available for Reference

1. Financial statements signed and sealed by the Company's person in charge, the chief accountant, and the person in charge of accounting department (accounting supervisor);

2. The originals of the 2025 annual report and its abstract signed by the Company's person in charge; 3. The originals of the auditor's report with the seal of Zhongxi CPAs (Special General Partnership) and the signature and seal of the certified public accountants; 4. The originals of all documents and announcements publicly disclosed on the media designated by the China Securities Regulatory Commission (CSRC) during the reporting period.

Interpretations

Notes:

1. In this report, any discrepancies between the total and the sum of individual items are due to rounding.

2. This report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.

Section Ⅱ Company Profile and Key Financial Indicators

I. Company Information

II. Contacts and Contact Information

III. Information Disclosure and Placement Location

IV. Changes in Registration

V. Other Relevant Information

Accounting firm engaged by the company

Sponsor institution performing continuous supervision duties during the reporting period engaged by the company

 Applicable  Not applicable

Financial Advisor performing continuous supervision duties during the reporting period engaged by the company

 Applicable  Not applicable

Ⅵ. Key Accounting Data and Financial Indicators

Whether the company performed a retrospective adjustment or restatement of previous accounting data

Yes No

The lower of the net profit before and after deducting non-recurring gains and losses of the company in the latest three fiscal years is negative, and the audit report of the latest year shows that the company's going concern ability is uncertain.

 Yes  No

The lower of the audited total profit, net profit and net profit after deducting non-recurring gains and losses of the company during the reporting period is negative.

 Yes  No

Companies with equity incentives or employee stock ownership plans may disclose the net profit after deducting the impact of sharebased payments

VII. Differences in Accounting Data under Domestic and Foreign Accounting Standards

1. Differences in net profit and net assets between financial reports disclosed in accordance with International Accounting Standards and Chinese Accounting Standards

 Applicable  Not applicable During the reporting period, there are no differences in net profit and net assets between the financial reports disclosed in accordance with International Accounting Standards and Chinese Accounting Standards.

2. Differences in net profit and net assets between financial reports disclosed in accordance with overseas accounting standards and Chinese Accounting Standards

 Applicable  Not applicable During the reporting period, there are no differences in net profit and net assets between the financial reports disclosed in accordance with overseas accounting standards and Chinese Accounting Standards.

Ⅷ. Key Quarterly Financial Indicators

Unit: RMB

Whether there are significant differences between the above financial indicators and that of what disclosed in the quarterly reports and semi-annual report

 Yes  No

IX. Non-Recurring Gains and Losses

 Applicable  Not applicable

Unit: RMB

Details of other gains and losses that meet the definition of non-recurring gains and losses：

 Applicable  Not applicable

This item mainly includes gains from remeasuring the remaining equity of Goertek Optics at fair value due to losing control of Goertek Optics.

Explanation if the Company classified non-recurring gains and losses set out in the Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring Gains and Losses, as recurring gains and losses.

 Applicable  Not applicable

The Company did not classify any item of the non-recurring gains and losses listed in the Explanatory Announcement No. 1 on Information Disclosure by Companies Offering Securities to the Public - Non-recurring Gains and Losses, as recurring gains and losses in the reporting period.

Section III Management Discussion and Analysis

I. The Company's Main Business during the Reporting Period

During the reporting period, the Company serves the global leading clients in the technology and consumer electronics industry with vertically integrated product solutions of precision components and smart hardware, as well as R&D and manufacturing services.

The Company's main business includes three segments: precision components business, smart audio device business and smart hardware business. The precision components business focuses on product directions such as acoustics, optics, microelectronics, structural components, etc. The related products include micro speaker/receiver, speaker module, haptic component (actuator), wireless charging device, antenna, MR optical devices and modules, AR optical devices and modules, micro-nano optical devices, 3D structured light modules, AR HUD modules, MEMS acoustic sensors, other MEMS sensors, SiP, precision structural parts, etc. The abovementioned precision components are widely applied in devices such as smartphones, tablets, AI smart glasses, MR, AR, smart wearable devices, smart wireless earphones, smart home devices, and automotive electronics devices. Smart audio device business focuses on providing products related to intelligent noise reduction, AI interaction, and spatial audio. The main products include smart wireless earphones, smart speakers, etc. Smart hardware business focuses on providing products related to leisure and entertainment, smart assistant, sports and health, and home security. The main products include AI smart glasses, MR, AR, smart wearable devices, gaming consoles and accessories, smart home devices, etc.

The Company has innovative competitive advantages in the fields of acoustics, optics, MEMS microelectronics and precision manufacturing, and owns many intellectual property rights in the field of precision parts and components. In addition, the Company has accumulated rich experience in product projects by cooperating with industry-leading clients in the field of smart hardware through "ODM", "JDM" and other business modes. During the reporting period, the Company continued to strengthen its long-term cooperative relationships with leading clients in the global technology and consumer electronics industry. As a result, the Company has been highly recognized by clients for its product solutions and services, and occupies a leading market position in the fields of micro speakers, MEMS microphones, AI smart glasses, MR, smart wearable devices, smart wireless earphones, gaming consoles and accessories, etc.

During the reporting period, the Company won multiple honors, including being ranked the 6th in the 2025 Top 100 Backbone Electronic Components Enterprises of China, 16th in the 2025 Top 100 Competitive Enterprises in China's Electronics Information Industry, 10 2 mathrm n d in the 2025 Top 500 Private Enterprises in China, 71st in the 2025 Top 500 Private Manufacturing Enterprises in China and 13 5 mathrm t h in the 2025 Top 500 Chinese Brands. The company was named to Fortune China's Tech 50 in 2025, and received several honors including the First Prize for Scientific and Technological Progress of the China Electronic Components Industry Association in 2025, as well as the Red Dot Product Design Award from Germany.

II. The Situation of the Industry during the Reporting Period

In 2025, AI technology made remarkable progress, with continuous improvements in model inference and multimodal capabilities. AI agents have progressively matured and continued to evolve toward intelligent assistants. AI technology has been widely applied across both the industrial and consumer sectors. In the industrial sector, AI has been progressively deeply embedded throughout the entire chain of enterprise decision-making, R&D, production and sales, becoming a key productivity driver for improving quality and efficiency. In the consumer sector, AI technology and AI agents have been progressively integrated into consumers' daily lives, work, learning and content creation, continuously building new application scenarios and consumption habits.

The integration of AI technology with smart hardware products has opened up new development space for the consumer electronics industry, bringing a new round of growth opportunities for industry players. On one hand, leading manufacturers have continuously launched smartphones featuring richer AI functionalities, delivering efficient and convenient intelligent experiences for consumers, while also driving continuous upgrades in the technical specifications of precision components related to edge-side AI features, including chips, MEMS sensors, acoustic components and image sensors, with the market scale steadily growing. On the other hand, AI technology urgently needs to be deployed on terminal devices to continuously acquire natural data for model advancement, build consumer stickiness and complete the business model innovation loop. Supported by improved model inference, enhanced multimodal capabilities and the development of AI agents, industry players have been actively advancing the development of emerging AI-powered smart hardware products such as AI smart glasses and smart wearable devices. In addition, text-to-video generative AI technology made significant strides in 2025, deeply empowering the film and television, gaming, short video and advertising content industries, substantially improving content creation efficiency and reducing production costs, and bringing broader future development prospects for smart hardware products with high content dependency such as MR and smart gaming consoles.

According to IDC, a renowned consulting firm, global smartphone shipments reached approximately 1.26 billion units in 2025, a YoY increase of approximately 2.1% . Global smart wearable product shipments reached approximately 210 million units, a YoY increase of approximately 8.7% . The global smartphone market showed a moderate recovery as a whole, driving a rebound in the related precision components market. In particular, products such as acoustic sensors related to AI voice interaction continued to show a technology upgrade trend, and the market scale of high-performance sensors increased. The market scale of smart wearable products, represented by smart watches, smart bands and smart rings, continued to maintain steady growth.

According to IDC, a renowned consulting firm, global AI smart glasses shipments grew 24 1% YoY in 2025, reaching a market scale in the tens of millions of units, making it one of the fastest-growing emerging hardware products in the consumer electronics industry. AI smart glasses products have unique advantages in human-computer interaction and natural data acquisition, and are expected to become an important carrier for the edge-side deployment of large AI models, attracting continuous attention and investment from industry-leading enterprises. On the other hand, driven by active promotion from industry-leading enterprises, AR products equipped with more complex optical display systems and capable of overlaying and integrating virtual content with real-world environmental information are also accelerating their maturity. Related technologies in optics, display, communication and new materials are iterating at an accelerating pace, which is expected to drive the rapid development of AR products in the coming years. In addition, with the rapid development and application of generative AI technology, the MR industry has also seen promising new variables. The substantial improvement in content creation efficiency and the rapid decline in content costs are expected to gradually reverse the constraint on industry development caused by content shortage in the coming years, providing strong support for the long-term development of related hardware products.

Facing the new trend of AI technology integration with smart hardware products and the new opportunities in the consumer electronics industry, the Company will go all out and respond proactively. Building on its existing advantages, the Company will actively invest in R&D and explore emerging product and technology directions, continuously consolidate its core competitiveness, deepen long-term strategic cooperation with industry-leading clients, and actively expand emerging smart hardware and related precision components businesses, promoting the sustained, healthy development of the Company.

Ⅲ. Analysis of Core Competitiveness

1. Industry-leading precision and intelligent manufacturing capabilities

In the fields of technology and consumer electronics, the Company has well-recognized precision manufacturing capabilities and a strong industry reputation. Relying on its core competencies and long-term experience accumulation in precision manufacturing, the Company continuously enhances the processing precision, production efficiency and quality standards of precision components and smart hardware products, achieving self-developed and self-manufactured core raw materials. Through the comprehensive application of ultra-high-precision molds, high-precision metal/non-metal processing, ultrasonic technology, laser technology and various other advanced process technologies, the Company has built industry-leading precision manufacturing capabilities in areas such as micro acoustic components, precision optical components, MEMS sensors, SiP and precision structural components, ensuring high-precision, high-efficiency and high-quality product delivery.

Relying on its advanced equipment development capabilities and flexible automated production advantages, the Company promotes the upgrading of intelligent manufacturing models and continuously improves the GPS. In the fields of automation, machine vision and artificial intelligence related to intelligent manufacturing, the Company continuously invests in independent R&D, while drawing on international leading practices to introduce world-class advanced technologies and core equipment for systematic integration. Through deep application of new-generation AI technologies such as large AI models, digital twins, intelligent sensing and decision optimization, the Company continuously optimizes key processes including warehousing and logistics, production scheduling, process testing, assembly and packaging, quality control, equipment operation and maintenance, as well as energy management, promoting the transformation of its manufacturing model toward digitalization, networking, intelligentization and servitization, and continuously building core intelligent manufacturing capabilities for the future.

2. Multi-technologies integration platform and strong team of R&D personnel

The Company has established a product R&D and manufacturing platform that integrates multiple technologies including materials, structures, electronic circuits, software algorithms, wireless communication, advanced processes, testing and automation. Through cross-domain technology integration, the Company provides clients with advanced, systematic precision components and smart hardware product solutions. The Company has globally assembled and cultivated outstanding talents in disciplines including acoustics, optics, microelectronics, wireless communication, precision manufacturing and automation, building a technical talent team with deep technical strength and extensive product project experience. The Company has also established industry-academia-research cooperation with renowned universities and research institutions including Stanford University, MIT, Tsinghua University, Zhejiang University, Shandong University, Nanjing University and the Chinese Academy of Sciences, forming an open, comprehensive technology R&D platform that supports continuous innovation in technology and product R&D.

During the reporting period, the Company and its subsidiaries applied for 2,677 patents, including 2,295 invention patents. A total of 1,769 patents have been granted, including 1,390 invention patents. As of December 31, 2025, the Company and its subsidiaries have totally applied for 37,549 patents (4,706 foreign patent applications), including 22,427 invention patent applications. A total of 23,504 patents have been granted, including 9,586 invention patents.

3. Continuous strategic innovation and transformation, and stable high-value client resources

Facing complex domestic and international macroeconomic conditions and the accelerating product and technology iteration in the industry, the Company's management team has taken a measured and timely approach, keeping pace with the times. While continuously consolidating core competitive advantages in traditional business areas, the Company actively pursues strategic innovation and transformation, firmly grasping the industry opportunities in emerging smart hardware and AI technology within the technology and consumer electronics sectors. Relying on global high-value client resources and stable, strong client relationships, the Company is market-driven and technology-driven, continuously expanding its consumer electronics and automotive electronics businesses including AI smart glasses, MR, AR, smart wearables, smart home, smart gaming consoles and AR HUDs.

Facing the new trend of rapid development in AI technology, the Company actively explores the practical application of AI algorithms and technologies such as Large Language Model and multimodal models in production and manufacturing, operations management and decision optimization, continuously enhancing the intelligent level of production and manufacturing as well as the informatization level of management and operations, and consolidating the Company's industry position and core competitiveness. In terms of strategic path selection, the Company closely follows the strategic innovation pace of global first-tier clients, optimizes strategic resource allocation, supports strategic product and cutting-edge technology development investment, continues to consolidate and deepen its client resource advantages, and transforms high-value client needs into an inexhaustible driving force for the Company's sustained, high-quality development.

4. Outstanding core management team

While the Company's business has grown rapidly and healthily, the core management team has, as always, maintained a steady and efficient work style. Facing industry characteristics such as fast iteration of emerging smart hardware products, high quality requirements, high manufacturing precision, short delivery cycles and difficult client certifications, the core management team closely follows market changes and continuously drives reform and innovation, ensuring that the Company's strategic management capability, operations management capability, technology R&D capability, and precision manufacturing and intelligent manufacturing capabilities remain at a high level over the long term. The Company has always focused on and continuously promoted the internationalization, professionalization and rejuvenation of its core management team, actively attracting senior management talents and professional talents from numerous internationally leading enterprises to join the core management team. At the same time, the Company has strengthened talent team building, with an increasing number of young talents gradually growing into the backbone of the management team through cultivation and practice. The Company's management team possesses both experience and vitality, and continues to drive the Company's stable and rapid development in the new market environment and high-intensity industry competition.

IV. Analysis of Main Business

1. Overview

During the reporting period, the Company, by adhering to the product strategy of "Precision Components + Smart Hardware Products", focused on serving the leading enterprises in the global technology and consumer electronics industry, actively promoted the development of precision components (acoustics, optics, microelectronics, structural parts, etc.) and emerging smart hardware business (AI smart glasses, MR, AR, smart wearables, smart wireless earphones, smart gaming consoles, smart home devices, etc.). At the same time, the Company continuously strengthened its business expansion in the automotive electronics field. In the field of intelligent manufacturing, the Company is actively building the GPS, deeply applying advanced AI technology to enhance the intelligence and informatization level of production, and constructing a future-oriented intelligent manufacturing model with Goertek characteristics, thus continuously consolidating the Company's core competitiveness as a manufacturing enterprise.

During the reporting period, AI technology further integrated with hardware products such as smartphones, and smart voice interaction scenarios continued to develop, bringing a positive impact to the Company's precision components businesses such as MEMS acoustic sensors, and the Company's precision components business revenue scale grew steadily. Meanwhile, AI smart glasses products demonstrated explosive growth, and the Company possesses high-value client resources, systematic solution capabilities and firstmover advantages in this field, with related business revenue scale growing significantly. On the other hand, certain smart audio device and smart hardware projects of the Company were affected by product lifecycle and iteration rhythms, resulting in a decline in revenue scale during the reporting period. Considering the combined impact of the above factors, the Company's overall revenue scale decreased slightly compared to the same period last year.

In Q2 2025, to address trade disputes and tariff policy fluctuations, enterprises in related industries actively adjusted their overseas supply chain plans and significantly increased production capacity layout in Vietnam and other regions. This led to an unexpected labor shortage issue in Vietnam during the peak production and delivery season in Q4. To ensure client cooperation and production delivery during the peak sales season, the Company's Vietnam production base adopted various measures including increasing recruitment incentive efforts, raising onboarding bonuses and improving wages. The unexpected labor shortage, combined with the industry peak season and project labor demand peak, resulted in a significant unexpected increase in the Company's comprehensive labor costs in Q4 2025, leading to a short-term decline in single-quarter profitability. In response to the above issues, the Company has implemented various measures including optimizing commercial terms, adjusting production capacity distribution and enhancing automation levels. It is expected that the above short-term, seasonal profitability fluctuations caused by international trade situation volatility, unexpected labor shortage and peak project labor demand will be quickly alleviated and will not have a long-term impact on the Company's overall profitability.

During the reporting period, the Company promoted Goertek Optics to integrate high-quality industrial resources through capital operations, significantly enhancing Goertek Optics' competitive advantages and industry position in precision optical components and modules for products such as AI smart glasses, AR and MR. Upon completion of the above integration, the Company remains the largest shareholder of Goertek Optics, and Goertek Optics will continue to serve as an important associate company of the Company, further undertaking and deepening the Company's future business development in the precision optical field.

Looking ahead, the Company will seize the new development opportunities brought by the rapid development of AI technology to the consumer electronics industry, relying on its solid core competitiveness and industry position, actively expand related precision components and emerging smart hardware product business opportunities, and do a good job in business development, client service, project delivery, operational improvement and other important tasks, striving to continuously improve business performance and achieve the Company's long-term healthy development.

During the reporting period, the Company achieved revenue of RMB 96,550.17million, with a 4.36% YoY decline. The Company realized net profit attributable to the shareholders of the company of RMB 3,940.31million, with a 47.85% YoY increase. The Company's operating costs amounted to RMB 85,155.35million, with a 5.13% YoY decline.

During the reporting period, the total amount of the Company's selling expenses, general and administrative expenses, research and development expenses, and financial expenses was RMB 9,148.14million, with a 17.70% YoY increase.

During the reporting period, the Company invested RMB 5,026.47million in R&D, accounting for 5.21% of the revenue and 13.81% of the latest audited net assets attributable to the shareholders of listed companies.

During the reporting period, the net cash flow from operating activities of the Company was RMB 6,848.88million, with a 10.46% YoY increase.

2. Revenue and cost

(1) Composition of revenue

Unit: RMB

 Applicable  Not applicable

(2) Industries, products, regions and sales modes accounting for more than 10% of the Company's revenue or operating profit

Unit: RMB

If the statistical caliber of the Company's main business data has been adjusted in the reporting period, the adjusted statistics of main business are based on the caliber at the end of the reporting period of last year.  Applicable  Not applicable

(3) Whether the Company's revenue from physical products sales is greater than the revenue from providing services

 Yes  No

Reasons for changes in the relevant data over 30% year-on-year

 Applicable  Not applicable

During the reporting period, the company's sales volume of precision components and other products increased, leading to a corresponding increase in inventory levels.

(4) Fulfillment of major sales contracts and major procurement contracts signed by the Company as of the reporting period

 Applicable  Not applicable

(5) Composition of operating cost

Classification of industry

Unit: RMB

(6) Whether there is any change in consolidation scope during the reporting period

 Yes  No

During the reporting period, the Company established 12 subsidiaries, including Weifang Goertek Smart Technology Co., Ltd., Qingdao Goertek Starshine Smart Technology Co., Ltd., Hefei Goertek Technology Co., Ltd., Hangzhou Goertek Technology Co., Ltd., Dongguan Yili Technology Co., Ltd., Hainan Goertek Trading Co., Ltd., Shanghai Goertek IntelliReach Technology Co., Ltd., Goertek Optoelectronics Technology (Qingdao) Co., Ltd., GoerView Technology (HongKong) Co., Limited, Goertek Holdings (HongKong) Co., Limited, Yili Technology Vietnam Company Limited, Goertek Singapore Holdings Pte. Ltd.

During the reporting period, a total of 16 subsidiaries were excluded from the consolidated financial statements, including Goertek Optical Technology Co., Ltd., Goertek Optical Technology (Qingdao) Co., Ltd., Goertek Optical Technology (Shanghai) Co., Ltd., Uphoton Technology (Shaoxing) Co., Ltd., Uphoton Technology (Beijing) Co., Ltd., Jiaxing Uphoton Optoelectronics Technology Co., Ltd., Shaoxing UPhoton Precision Technology Co., Ltd., Hangzhou Uphoton Optoelectronics Technology Co., Ltd., Tianjin Uphoton Technology Co., Ltd., Nanjing Uphoton Technology Co., Ltd., Goertek Optical Technology (HongKong) Holdings Co., Limited, Goertek Optical Technology (HongKong) Co., Limited, Goertek Optoelectronics Technology (Qingdao) Co., Ltd., GoerView Technology (HongKong) Co., Limited, Qingdao Goerpixel Technology Co., Ltd., Xi'an Goerpixel Technology Co., Ltd.

(7) Significant changes or adjustments in the Company's business, products or services during the reporting period

 Applicable  Not applicable

(8) Major clients and suppliers

Major clients of the Company

Information of top five clients

Other information of major clients

 Applicable  Not applicable

Major suppliers of the Company

Information of top five suppliers

Other information of major suppliers  Applicable  Not applicable

3. Expenses

Unit: RMB

4. R&D Investment

 Applicable  Not applicable

Details of R&D personnel

The Company's investment in R&D

Reasons and impacts of significant changes in R&D personnel composition of the Company

 Applicable  Not applicable

 Applicable  Not applicable

Reasons and explanation of its reasonableness of significant changes in capitalized R&D investment

 Applicable  Not applicable

5. Cash flow

Unit: RMB

Main influencing factors of significant year-on-year changes in relevant data

 Applicable  Not applicable

The net cash flow from investing activities was RMB -13,589.88 million, a year-on-year decrease of 15 9.06% . The main reason is that the company's cash outlays rose during the reporting period, mainly due to the acquisition and construction of fixed assets and other long-term assets, subscription of wealth management products, and equity investments in Shanghai Conant Optical Co., Ltd.

The net cash flow from financing activities was RMB 8,046.44 million, a year-on-year increase of 45 1.34% . The main reason is that cash received by the company during the reporting period from borrowings and the issuance of science and technology innovation bonds has increased.

The reasons for significant difference between the net cash flow from the Company's operating activities during the reporting period and net profit in current year.

 Applicable  Not applicable

The net cash flow from operating activities exceeded the net profit for the year by 78.69% , mainly due to non-cash items such as depreciation of fixed assets and amortization of intangible assets.

V. Analysis of Non-Main Business

 Applicable  Not applicable

Unit: RMB

VI. Analysis of Assets and Liabilities

1. Major changes in asset composition

Unit: RMB

High proportion of overseas assets

 Applicable  Not applicable

2. Assets and liabilities measured at fair value

 Applicable  Not applicable

Unit: RMB Financial assets

Other changes

None

Whether the measurement attributes of major assets of the Company have changed significantly during the reporting period

 Yes  No

3. Restrictions on asset rights as of the end of the reporting period

Ⅶ. Analysis of Investment

1. Overall situation

 Applicable  Not applicable

2. Major equity investments acquired during the reporting period

 Applicable  Not applicable

3. Major non-equity investments in progress during the reporting period

 Applicable  Not applicable

4. Financial asset investment

(1) Securities investment

 Applicable  Not applicable

Unit: RMB

 Applicable  Not applicable

(2) Derivatives investment

1) Investments in derivatives for hedging during the reporting period

 Applicable  Not applicable

Unit: RMB 10,000

2) Investments in derivatives for speculation during the reporting period

 Applicable  Not applicable

The Company did not make any investment in derivatives for speculation during the reporting period.

Ⅷ. Sales of Major Assets and Equities

1. Sales of major assets

 Applicable  Not applicable

The Company did not sell any major assets during the reporting period.

2. Sales of major equity

 Applicable  Not applicable

Ⅸ. Analysis of Major Subsidiaries and Associates

 Applicable  Not applicable

Major subsidiaries and associates with an impact of more than 10% on the Company's net profit

Unit: RMB

Acquisition and disposal of subsidiaries during the reporting period

 Applicable  Not applicable

Description of major subsidiaries and associates

None

Ⅹ. Structural Entities Controlled by the Company

 Applicable  Not applicable

XI. Outlook for the Future Development of the Company

1. Industry development trends

In recent years, the consumer electronics industry has entered the post-mobile era. Influenced by factors such as global macroeconomic fluctuations and insufficient end-consumer demand, the growth of certain smart hardware products has slowed. Industry players are actively pursuing technological innovation and exploring new development opportunities. Meanwhile, with the rapid development of AI technologies such as large language models, multimodal models and AI agents, the integration of AI technology with the consumer electronics industry, especially smart hardware products, is expected to open up new industry development space and bring a new round of development opportunities for global technology and consumer electronics companies. The development of edge AI smart hardware represented by AI smartphones and AI smart glasses is expected to become a core driving force for the future development of the consumer electronics industry.

According to IDC forecast data, affected by factors such as memory chip shortages, global smartphone shipments are expected to reach approximately 1.1 billion units in 2026, representing a YOY decrease of approximately 12.9% . However, it is expected that after shortterm disruptive factors gradually fade, the global smartphone market will still achieve steady growth, with an average annual compound growth rate of approximately 3.3% from 2026 to 2029. As one of the core hardware products in the consumer electronics industry, smartphones serve as a terminal hardware platform that integrates computing, communication, display and intelligent interaction functions, and also represent one of the core edge devices for the integration of AI technology with smart hardware products. It is expected that in the coming years, the integration of AI technology and smartphone products will continue to deepen, the penetration rate of AI smartphones will continue to rise, and this will drive sustained performance upgrades and long-term market growth for related precision component products.

AI smart glasses are currently one of the most followed product innovations globally in the technology and consumer electronics industries, attracting intensive strategic deployments from leading enterprises across consumer electronics, internet, automotive, and other fields, and the industry's development prospects have gained widespread market recognition. AI smart glasses are not only an ideal hardware product form for the edge deployment of AI large models and agents to provide consumers with AI intelligent assistant experiences, but also an ideal interactive interface for AI large models to collect and process natural data, achieve self-evolution and iteration, and complete business model loops. Relying on the global consumer base of billions of glasses wearers, and accompanied by the maturation of AI large models and agents, as well as the continuous development of technologies such as voice interaction, MEMS sensors, optics, microdisplays, SiP, high-density batteries, and lightweight materials, AI smart glasses products are expected to further mature in the coming years, and the market size is also expected to usher in explosive growth.

According to IDC forecast data, global AR device shipments are expected to reach 9.4 million units by 2029, with a CAGR (Compound Annual Growth Rate) of approximately 57.6% from 2026 to 2029. Driven by active investment and efforts from industry leading companies, AR product hardware technologies continue to advance toward large-scale commercial implementation, with accelerated breakthroughs in key areas such as optics, displays, computing power and packaging. Technology solution routes have become clearer, and product maturity has continuously improved, with AR products expected to embrace rapid development in the coming years. Meanwhile, according to IDC forecast data, the CAGR of global MR (VR) device shipments from 2026 to 2029 is expected to reach approximately 22.3% . The rapid development of generative AI technology is expected to significantly reduce the production cost of MR related content, reverse the current situation where the lack of high-quality content limits industry development, and provide strong support for the long-term development of related hardware products.

According to IDC forecast data, global smart wearable device shipments are expected to reach 220 million units in 2026, representing a YOY increase of approximately 1.9% , with a CAGR of approximately 0.8% from 2026 to 2029. Accompanied by breakthroughs and maturation of high-precision vital sign monitoring technologies such as electrocardiogram (ECG), blood pressure and non-invasive blood glucose, as well as the integration of AI technology with smart wearable products, related products are expected to embrace new development opportunities in the coming years. According to IDC forecast data, global TWS product shipments are expected to reach

330 million units in 2026, representing a YOY increase of approximately 4.9% , with a CAGR of approximately 3.4% from 2026 to 2029. Driven by AI voice interaction scenarios, along with product form innovation and continuous optimization of features such as spatial audio, health monitoring, and sports monitoring for smart wireless earphone products, the market size is expected to continue steady growth in the future.

Overall, the rapid development of AI technology will inject new vitality into the development of emerging smart hardware products. The edge deployment of AI technology on terminal devices will also give rise to richer emerging smart hardware product forms and usage scenarios. Driven by the entire industry, edge AI smart hardware products are expected to achieve sustained and healthy development in the future, and drive performance upgrades and market demand growth for related products such as acoustics, sensors, SiP, haptic devices and precision structural components, thereby bringing new development opportunities to the Company.

2. Strategy for future development

Looking ahead, the Company will actively seize the new opportunities brought by AI technology for the consumer electronics industry, track technology directions such as AI large models, AI agents, 6G, advanced sensing, microdisplays, lightweight materials and SiP, and continue to deepen its layout in the emerging smart hardware and precision component fields. The Company will consistently strengthen its strategic cooperation with world-class clients, conscientiously fulfill its economic and social responsibilities, and maximize corporate value and shareholder returns through stable and healthy growth.

(1) Actively seize new opportunities in the AI industry and deepen the implementation of the Company's "Precision Components + Smart Hardware Products" strategy. Based on the Company's existing competitive advantages in the precision components and smart hardware fields, actively pursue business opportunities in edge AI smart hardware products and develop emerging smart hardware products and related precision components businesses. Fully leverage the synergies between components business and smart hardware products business, continuously strengthen the Company's core capabilities in precision manufacturing and smart manufacturing, build GPS for the future smart manufacturing era, and provide customers with industry-leading vertically integrated product solutions and "one-stop" R&D and manufacturing services.

(2) Continue to implement the key account strategy and adhere to client orientation. Focus on serving leading clients in the global technology and consumer electronics industries, continuously consolidate long-term strategic cooperation with clients, closely follow the future strategic development directions of world-class clients, build a global layout of R&D, manufacturing and sales services, and make customers consistently satisfied from multiple perspectives including business, technology, engineering and process, and operational delivery over the long term, so as to achieve win-win cooperation and joint growth with world-class clients.

(3) Adhere to independent R&D and technological innovation, and continue to invest in R&D. Continuously improve the Company's technical capabilities in areas such as acoustics, microelectronics, precision manufacturing, automation, IT technology, software and algorithms, so as to build core technological competitiveness for the Company's future development. Firmly implement the talent strategy, integrate excellent management and technical talents globally, build first-class talent teams, and provide effective long-term incentives for core and key employees, so as to provide strong talent support for the Company's future development.

(4) Continuously improve corporate governance and management levels, and promote standardized and efficient internal operations. Oriented toward market development and client needs, continuously promote internal reform and innovation, and build core competitiveness with leading change capabilities. Continuously enhance the digitalization and informatization levels of the Company's internal operational management, and actively explore the application of big data and AI technologies in enterprise operational management. Build an excellent corporate culture, practice the Company's core values of "Client Orientation, Employee Development, Trustworthy, Cooperation and Mutual Benefits", and strive to be a great company.

3. Business operation during the reporting period and business plan for next year

During the reporting period, the Company adhered to client-orientation and the key account strategy, leveraged synergies between components business and integrated products business, and successfully completed various important tasks including business expansion, project delivery and operational improvement. The Company's core competitiveness and industry competitive position were further consolidated. The Company's precision components business achieved steady growth and emerging businesses represented by AI smart glasses showed significant revenue growth. However, certain smart audio device and smart hardware projects experienced revenue declines due to product lifecycle and iteration rhythm factors, resulting in a slight YOY decrease in the Company's overall revenue scale.

During the reporting period, affected by international trade disputes, tariff policy fluctuations and concentrated adjustments in overseas supply chain layouts by related industry enterprises, the Company's Vietnam production base encountered unexpected labor shortages during the peak staffing period in Q4. To ensure customer cooperation and production delivery during the sales peak season, the Company adopted various temporary measures to secure labor, leading to a significant unexpected increase in comprehensive labor costs in Q4, with short-term fluctuations in quarterly profitability. In response to the above issues, the Company has taken various measures including optimizing business terms, adjusting production capacity distribution and enhancing automation levels. It is expected that the above short-term and seasonal profitability fluctuations will be quickly alleviated. During the reporting period, the Company promoted Goertek Optical to integrate high-quality industry resources through capital operations, significantly enhancing Goertek Optical's competitive advantages and industry position in the precision optics field, while also generating considerable investment returns.

Looking ahead to 2026, the Company will continue to implement its future development strategy, focus on its core business, continuously consolidate its competitive advantages in precision components and smart hardware product fields, closely track the latest progress of technologies such as AI large models and AI agents, actively expand into the edge AI smart hardware sector, deepen client relationships, comprehensively enhance automation levels and lean operations levels, and support the Company in achieving sustainable high-quality development.

(1) Maintain strategic focus and grasp development opportunities

The Company will continue to uphold its "Precision Components + Smart Hardware Products" strategy, fully leverage synergies between components business and smart hardware product business, and seize new opportunities arising from the integration of AI technology and emerging smart hardware products. On one hand, the Company will continue to strengthen technology R&D in areas such as acoustics, microelectronics and precision structural components, and continue to enhance its future core competitiveness in the precision components field. On the other hand, the Company will actively pursue emerging smart hardware project opportunities and expand the application of the Company's self-developed precision components such as acoustics, sensors, SiP modules and precision structural components in related projects. The Company will combine its vertically integrated product solutions with its core capabilities in precision manufacturing and smart manufacturing, and continuously enhance its solution capabilities and profitability. Meanwhile, as an important associated enterprise of the Company, Goertek Optical will continue to undertake and deepen the Company's future business development in the precision optics field.

(2) Adhere to the client-orientation philosophy, and deepen engagement with strategic clients

Based on the development plans of strategic clients, the Company will carry out corresponding business deployment, technology R&D, product planning, and capacity planning. Focusing on the future product needs of strategic clients, the Company will conduct forwardlooking technology and product research and development, and build capabilities for future-oriented overall solutions. The Company aligns with the business pace of strategic clients and provides industry-leading full-process R&D and manufacturing services. The Company will continuously enhance its ability to serve strategic clients, strengthen client loyalty through high-level service, consolidate strategic partnerships, and achieve mutual benefit and win-win cooperation with clients.

(3) Strengthen business expansion and create new growth points

Facing new opportunities brought by AI technology in industry development, the Company will continuously explore new product directions and business opportunities. The Company will actively seize new opportunities in areas such as acoustic components, haptic devices, MEMS sensors, SiP, AI smart glasses, MR, AR, smart wearables, smart wireless earphones, smart gaming consoles and smart home devices, continuously expand the application of the Company's precision components products in the automotive electronics field, and create new business growth points around the needs of leading clients in the consumer electronics and automotive electronics industries.

(4) Strengthen lean operation and complete successful delivery of key projects

The Company will constantly promote the idea of lean operation, effectively improve the level of lean operation, and derive benefits from operations. The Company will actively build a GPS and establish a new intelligent manufacturing model that meets future market needs. The Company will make thorough planning of its resources, ensure the delivery of key projects that are closely related to the strategy and the business objectives, and to support the achievement of the Company's performance goals.

(5) Continue to invest in independent R&D and technological innovation, strengthen core competitiveness with talent strategy

The Company will continue to invest in R&D and technological innovations centered on future strategic directions, and strengthen its technical capabilities in the fields of acoustics, microelectronics, precision manufacturing, and intelligent manufacturing. The Company will integrate the management and technical talents globally, keep bringing in high-level talents, carry out solid efforts in the selection, cultivation, utilization and retention of talents, and to support the Company's strategic implementation and business development with a high-quality talent echelon.

(6) Effectively control risks and maintain healthy operation

The Company will continue to maintain a sound business strategy, strengthen risk awareness, pay close attention to changes in the external environment, perform effective control on various risk indicators in the Company's production and operation, take the initiative to identify and resolve potential risks, and ensure healthy and sustainable development of production and operation activities.

4. Fund demand and usage plan

The Company maintains a healthy asset and liability structure, and maintains a good long-term cooperative relationship with banks and other major financial institutions. In 2026, the Company will continue to improve the management of cash, optimize payment terms, control capital expenditure, and enhance the efficiency of funds. The Company will fully evaluate various financing tools to reasonably manage and control the asset-liability ratio and debt structure. The Company will conduct financial derivatives trading activities in a standardized manner, to actively avoid liquidity risks, foreign exchange risks, and interest rate risks, and with all the measures above, to thus provide stable and sufficient financial support to the development of the Company.

5. Future risks (1) Risk of macroeconomic

The global economy still awaiting recovery, and unfavorable factors suppressing investment and consumption activities continue to exist, which may affect the development of the global technology and consumer electronics industries in the short term. Some smart hardware products, such as smartphones, have experienced slower growth, and the development speed of certain emerging smart hardware product markets may fall short of expectations, which may affect the market demand or sales prices of the Company's related products, thereby impacting the Company's business performance. At the same time, the international political and economic landscape has become increasingly complex and severe, and international trade frictions and geopolitical conflicts have intensified. As the Company's products are supplied to global technology and consumer electronics brand clients, such risks may affect the global industrial chain layout of related customers, thereby bringing potential impact on the Company's production and operations.

(2) Risk of client concentration

The competitive landscape of the global technology and consumer electronics industry, along with the Company's business model and key account strategy, determines a relatively concentrated client structure. As a result, the business income from a few core clients accounts for a large proportion of the Company's overall revenue. Although the aforementioned clients are all leading global industry enterprises with significant competitive advantages and market positions, and have maintained long-term stable cooperative relationships with the Company, if major clients experience fluctuations in their business activities due to various factors, or if the cooperative relationship between the clients and the Company changes, it may bring corresponding fluctuations and risks to the Company's business.

(3) Risk of exchange rate fluctuation

The export business accounts for a high proportion of the Company's overall revenue. At the same time, the Company also imports a considerable amount of raw materials, equipments and other items from overseas. These import and export businesses are primarily settled in US dollars. Although the Company has adopted appropriate risk hedging tools, the significant fluctuation of foreign exchange rates may still bring certain exchange rate risks to the Company.

(4) Risk of loss of core talents

The technology and consumer electronics industry is a talent-intensive industry. Therefore, the demand for core technical and management talents is strong, and the competition for talent is very fierce. Core talents are the key strategic resources for the Company to consolidate its competitive advantages and drive long-term stable development. For this reason, the Company will continue to improve various incentive and restraint mechanisms in order to do a good job in the "selection, cultivation, utilization and retention" of the Company's core talents. Under fierce industry competition, there may still be the loss of core talents, which may weaken the Company's competitiveness and adversely affect the sustainable development of its business.

(5) Risk of patent and technology infringement

The Company has been deeply engaged in technology R&D and innovation, and has mastered a number of independently developed core intellectual property technologies relying on long-term stable resource investment. Although the Company attaches great importance to intellectual property protection, has established full-process patent protection management measures, equipped with dedicated personnel to handle patent application and protection related matters, and signed non-compete agreements and confidentiality agreements with key technical and management personnel to ensure the maximum protection of various patent rights and interests against infringement, with the intensification of industry competition, the Company still faces the risk of its patents and other intellectual property being infringed by others.

Ⅻ. Reception of Research, Communication, Interview and Other Activities during the Reporting Period

 Applicable  Not applicable

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

Whether the Company has established a market value management system.

 Yes  No

Whether the Company has disclosed the valuation enhancement plan.

 Yes  No

To further strengthen the Company's market value management, standardize the Company's market value management conduct, and protect the legitimate rights and interests of the Company, investors, and other stakeholders, taking into account its own actual circumstances, the Company has formulated the Market Value Management Rules of Goertek in accordance with relevant laws, regulations, normative documents such as the Company Law, the Securities Law, Regulatory Guidelines for Listed Companies No. 10 - Market Value Management, Rules Governing the Listing of Stocks on Shenzhen Stock Exchange, Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange - Normative Operation of Listed Companies on the Main Board, as well as the provisions of the Articles of Association, which was deliberated and approved at the 22nd meeting of the 6th board of directors held on December 27, 2024.

XIV. Implementation of the Action Plan of Quality and Return Improvement

Whether the Company has disclosed the Action Plan for Improving Quality and Investor Returns

 Yes  No

To implement the guiding ideology proposed by the Political Bureau of the CPC Central Committee to "activate the capital market and boost investor confidence" and by the Executive Meeting of the State Council to "vigorously improve the quality and investment value of listed companies, take more forceful and effective measures to stabilize the market and boost confidence", and to protect the interests of all shareholders, the Company formulated the Action Plan of Quality and Return Improvement on February 27, 2024. For details, please refer to the Company's Announcement on "the Action Plan of Quality and Return Improvement" disclosed on designated media. During the reporting period, the Company actively promoted the implementation of the Action Plan, deepened the implementation of various measures, continuously improved corporate governance, focused on its core business, and strengthened scientific and technological innovation capabilities, achieving good progress in multiple areas. For details, please refer to the Company's Announcement on "the Progress of the Action Plan of Quality and Return Improvement" disclosed on April 24, 2026.

Section IV Corporate Governance, Environment and Society

Ⅰ. Corporate Governance in Practice

The Company continuously improved the corporate governance structure, optimized the internal management and control system, and steadily carried out corporate governance activities in strict accordance with the requirements of relevant laws, regulations and normative documents such as the Company Law, the Securities Law, Basic Standard for Enterprise Internal Control, Guidelines for Articles of Association of Listed Companies, Code of Corporate Governance for Listed Companies, Rules Governing the Listing of Stocks on Shenzhen Stock Exchange as well as the requirements of the China Securities Regulatory Commission, so as to further standardize the Company's operation and improve the level of corporate governance.

During the reporting period, the Company comprehensively reviewed its relevant governance systems. Furthermore, based on its actual conditions and business development needs, the Company revised 23 related rules including the Articles of Association, Rules of Procedure for the Shareholder Meetings, Rules of Procedure of the Board of Directors, Independent Director Working System and External Guarantee Management System. The Company also established the Administrative System for Suspension and Exemption of Information Disclosure, Implementation Rules for the Nomination Committee, Internal Review System for Information Release and Reply on the Interactive Platforms of the Shenzhen Stock Exchange and Public Opinion Management System.

By the end of the reporting period, the company's practice of corporate governance complied with the relevant requirements of the aforesaid laws, administrative regulations, departmental rules and normative documents, as detailed below:

1. Shareholders and Shareholders' General Meetings: The Company standardizes the procedures for convening, holding and voting at shareholders' general meetings in strict compliance with the Rules on Shareholders' General Meetings of Listed Companies, the Articles of Association and the Rules of Procedure for the Shareholder Meetings. The Company enhances the convenience for small and medium-sized shareholders to participate in shareholders' general meetings by offering a combination of on-site and online voting, thus ensuring that small and medium-sized shareholders can fully exercise their rights. Meanwhile, the Company appoints lawyers to witness the shareholders' general meetings on site and ensure that the convening, holding and voting procedures of each meeting are legal and compliant, thereby effectively safeguarding the legitimate rights and interests of the Company and all shareholders.

2. The Company and the Controlling Shareholder: The Company, with independent operation capacity, is independent of the controlling shareholder in business, personnel, assets, institutions and finance. The Board of Directors and internal institutions of the Company operate independently. The controlling shareholder strictly regulates its own conduct and does not interfere directly or indirectly in the Company's decision-making and business operations beyond the authority of the shareholders' general meeting.

3. Directors and the Board of Directors: The Company elects directors in strict accordance with the procedures stipulated in the Company Law and the Articles of Association. The Company currently has nine directors in total, including three independent directors, accounting for no less than one-third of the total number of directors. The size and composition of the Board of Directors meet the requirements of relevant laws, regulations and the Articles of Association. The Board of Directors convenes and holds board meetings and implements resolutions of shareholders' general meetings in strict accordance with the Rules of Procedure of the Board of Directors. All directors of the Company perform their duties in accordance with relevant laws and regulations, diligently attend board meetings and shareholders' general meetings, actively participate in professional training, and earnestly fulfill their obligations of honesty, integrity, due diligence and responsibility.

The Board of Directors has established three specialized committees, namely the Audit Committee, the Remuneration and Assessment Committee and the Nomination Committee. In accordance with the Articles of Association and the authorization of the Board of Directors, each committee is respectively responsible for key functions such as financial audit and internal control supervision, formulation of remuneration and performance assessment for directors and senior management, and qualification review for appointment of directors and senior management. The committees conduct comprehensive supervision and guidance over the Company's operation and management to ensure compliance and efficiency in relevant matters.

4. Performance evaluation and incentive-restraint mechanisms: The Company has established a relatively robust performance evaluation and incentive-restraint mechanism, linking operational performance, sustainable development and other indicators to the performance of senior management. The shareholders' general meeting exercises its statutory authority to determine the remuneration of directors. The Remuneration and Assessment Committee is responsible for formulating and implementing assessment standards for directors and senior management in accordance with the Implementation Rules of the Remuneration and Assessment Committee.

During the reporting period, the Company continued to promote the implementation of employee stock ownership plans and stock option incentive plans, fully mobilizing the initiative and enthusiasm of senior management, core business personnel and key technical personnel, and effectively achieving the close integration of the interests of shareholders, the Company and employees.

5. Stakeholders: The Company fully respects and protects the legitimate rights and interests of stakeholders, actively communicates with stakeholders to balance the interests of the Company, shareholders, employees, customers, the public and other parties, and jointly promotes the sound and sustainable development of the Company.

6. Information disclosure: In strict compliance with the Measures for the Administration of Information Disclosure of Listed Companies, the Rules Governing the Listing of Stocks on Shenzhen Stock Exchange and the Articles of Association, the Company has set up a dedicated department equipped with a professional team to fulfill its information disclosure obligations in accordance with the law. The Company ensures that the information disclosed is true, accurate, complete, timely, fair, concise, clear, easy to understand, free from false statements, misrepresentations and material omissions, and safeguards the right of all shareholders to obtain information on an equal basis. The Company strictly implements the Insider Information Management Rules, strengthens the confidentiality of insider information, maintains the fairness of information disclosure, and effectively protects the legitimate rights and interests of investors.

The Company has designated Securities Times, China Securities Journal, Shanghai Securities News, Securities Daily and CNINFO (http://www.cninfo.com.cn) as the information disclosure media. During the reporting period, the Company disclosed a total of 214 announcements, publishing its financial statements, operating information and other significant matters to shareholders and the public in a timely manner so as to ensure the transparency of information.

7. Investor relations: To better serve investors, the Company has designated the Board Secretary as the person in charge of investor relations management and has assembled a professional team to handle related matters, including investor reception, holding annual performance briefings and providing online voting platforms. The Company has launched a special column for investor relations on its official website and promptly responds to investors' inquiries through interactive platforms of the Shenzhen Stock Exchange (http://irm.cninfo.com.cn), the investor hotline and other various channels, ensuring smooth communication channels and establishing a fair and efficient communication bridge between the Company, investors and the public.

During the reporting period, details regarding directors' meeting attendance and investor reception arrangements can be found in the relevant sections of this annual report.

Whether there is any significant difference between the actual situation of corporate governance and laws, administrative regulations and the provisions on governance of listed companies issued by CSRC

 Yes  No

There is no significant difference between the actual situation of corporate governance and the laws, administrative regulations and the provisions on governance of listed companies issued by CSRC.

Ⅱ. Particulars about the independence of the Company from controlling shareholder and actual controller in terms of the assets, personnel, finance, institutions and business

The Company carries out independent production, operation, procurement and sales, and has no dependence on controlling shareholder or its related parties. The Company has independent assets and clear property rights and ownership, with no mixed operation with its controlling shareholder. The Company is completely separated from its controlling shareholder in terms of business, personnel, assets, institutions and finance, and maintains an independent and complete business as well as independent operational capacity.

1. Business independence: The Company independently conducts production and business operations and has no reliance on its controlling shareholder or other related parties. The company possesses its own raw material procurement, product production and sales systems, and its major raw material procurement, product production and sales do not depend on the controlling shareholder or other related parties.

2. Separation of Personnel: The Company has established dedicated departments responsible for labor, human resources and payroll management, and has formulated relevant rules and regulations for employee performance appraisal. The senior management of the Company do not hold concurrent positions in the Company and its controlling shareholder entity or its branches and subsidiaries.

3. Institutional independence: The Company's internal organizational structure is completely independent from the controlling shareholder, and there is no subordinate relationship between the Company and the controlling shareholder. The office institutions and production and business premises of the Company are fully separated from those of the controlling shareholder and its related parties, with no mixed operation or co-located office arrangement.

4. Asset independence: The Company has an independent and complete production system, auxiliary production system and supporting facilities, as well as assets including land use rights, building ownership and intellectual property rights.

5. Financial independence: The Company has set up an independent finance department as its financial management authority, established a separate accounting system and financial management rules and made financial decisions independently in compliance with the accounting requirements applicable to listed companies. The Company implements vertical financial management over its subsidiaries. It maintains independent bank accounts and independently fulfills its tax obligations in accordance with the law.

Ⅲ. Horizontal Competition

 Applicable  Not applicable

Ⅳ. Directors and Senior Management

1. Basic Information

Whether there is any resignation of directors and senior management during their term of office in the reporting period  Yes  No

Changes in directors and senior management

 Applicable  Not applicable

2. Biographical Information

Professional backgrounds, main working experience and current duties of the directors and the senior management

(1) Members of the Board of Directors of the Company

Jiang Bin, male, a Chinese citizen with no foreign permanent residency, was born in September 1966 and holds a master's degree in business administration from Tsinghua University and a bachelor's degree in electronic engineering from Beihang University. Mr. Jiang is currently the board chairman of the Company. He has more than 30 years of experience in the electro-acoustic industry. He also serves as the chairman of Goertek Group Co., Ltd. Mr. Jiang serves as a deputy to the 14th National People's Congress and a standing member of the 13th Executive Committee of the All-China Federation of Industry and Commerce. He has been honored with numerous awards, including National Model Worker, Model Worker in Shandong Province, National Leading Entrepreneur in the Electronic Information Industry, Industry Leader in Shandong Province, the Highest Award in Science and Technology in Shandong Province and Qilu Talent.

Jiang Long, male, a Chinese citizen with no foreign permanent residency, was born in February 1974 and holds a Ph.D. in strategic management from the University of Maryland, a master's degree in management science from Renmin University of China, and a bachelor's degree in materials science and engineering from Tsinghua University. Mr. Jiang currently serves as vice chairman of the Board and president of the Company. He joined the Company in 2004 and previously served as vice president and president of the Company. He is currently the vice chairman of Goertek Group Co., Ltd. He also serves as the chairman of China Electronic Components Association-Electroacoustic Chapter. Mr. Jiang has extensive experience in marketing, sales, strategy and management.

Li Youbo, male, a Chinese citizen with no foreign permanent residency, was born in December 1977 and holds a bachelor's degree in automation from Dalian University of Technology. Mr. Li currently serves as the director and vice president of the Company. He joined the Company in 2003 and has successively held the positions of engineer, technical manager, head of the business unit, vice president and president. He has over 20 years of experience in R&D and manufacturing of electro-acoustic components/complete machines.

Duan Huilu, male, a Chinese citizen with no foreign permanent residency, was born in February 1976 and holds a bachelor's degree in accounting from Shandong University of Finance and Economics. Mr. Duan currently serves as the director and vice president of the Company, and he also serves as director of Goertek Group Co., Ltd. He joined the Company in 2001 and has successively held various positions of accountant, manager of the finance department, and chief financial officer. He has more than 20 years of experience in enterprise finance.

Liu Yaocheng, male, a Chinese citizen with permanent residency in the United States, was born in October 1973 and holds a Ph.D. in materials science and engineering and a master's degree in electronic engineering from Stanford University, and a master's degree and bachelor's degree in materials science and engineering from Tsinghua University. Mr. Liu currently serves as director of the Company. He joined the Company in 2019 and has successively held various positions of head of the Company's Strategy and Investment Department, head of the Company's Central Research Institute and vice president. Mr. Liu has worked at IBM semiconductor R&D center, McKinsey & Company, and Silex Microsystems AB, gaining extensive experience in technology R&D, strategic planning, investment and M&A.

Dong Haixia, female, a Chinese citizen with no foreign permanent residency, was born in June 1979 and holds a master's degree in management from Renmin University of China. Ms. Dong currently serves as employee representative director and is head of Business Performance Management Department. She joined the Company in 2003 and has successively served as manager of Business Performance Development Department, manager of Audit Department, and head of Operations Management Center. Ms. Dong has extensive experience in business management.

Huang Yidong, female, a Chinese citizen with permanent residency in Japan, was born in March 1965 and holds a Ph.D. in electronic engineering from Tsinghua University. She is currently a professor in the Department of Electronic Engineering at Tsinghua University, International Member of the United States National Academy of Engineering, and fellow of the OSA. She is also the executive director of the Chinese Optical Society, vice chairman of the China Education Society of Electronics, vice president of the Higher Education Branch, deputy editor-in-chief of ACS Photonics, and independent director of the Company and Advanced Fiber Resources (Zhuhai), Ltd. She formerly served as a distinguished researcher at the NEC Institute of Optical-Wireless Devices, deputy director of the academic committee at Tsinghua University, deputy dean and head of the Department of Electronic Engineering of Tsinghua University, and dean of the Tianjin Institute of Electronic Information of Tsinghua University.

Jiang Fuxiu, male, a Chinese citizen with no foreign permanent residency, was born in June 1969. Mr. Jiang completed his postdoctoral research in accounting at Guanghua School of Management, Peking University, and holds a Ph.D. in economics from Nanjing University. He is currently a professor and doctoral supervisor in the Department of Finance, Business School of Renmin University of China, and a director of the Environmental, Social and Governance (ESG) Research Center of the National Academy of Development and Strategy of Renmin University of China. He also serves as an independent director of the Company and Bank of China Wealth Management Co., Ltd. He has previously served as independent director of Datang International Power Generation Co., Ltd.and other companies.

Gao Yonggang, male, a Chinese citizen with no foreign permanent residency, was born in March 1965 and holds a Ph.D. in corporate financial management from Nankai University. Mr. Gao currently serves as founding director of the Hong Kong Independent Non-Executive Director Association, executive member of the 8th Council of the Accounting Society of China, doctoral supervisor at Hong Kong Graduate School of Business, industry mentor for Ph.D. candidates of School of Accountancy at Shanghai University of Finance and Economics, and honorary president of Shandong Integrated Circuit Industry Association. Mr. Gao is presently the board chairman and chief partner of China Fortune-Tech Capital Co., Ltd. And he also serves as independent director of the Company, iRay Group, and Shanghai Zhangjiang Hi-Tech Park Development Co., Ltd, as well as honorary chairman of Jiangcheng Industrial Investment Fund (Wuhan) Co., Ltd. His previous roles include the board chairman and executive director of Semiconductor Manufacturing International Corporation, board chairman of JCET Group Co., Ltd., the first Science and Technology Innovation Board Listing Committee member of the Shanghai Stock Exchange, chief accountant of the China Academy of Telecommunications Technology (Datang Telecom Technology & Industry Group), senior vice president of Datang Telecom Technology & Industry Holdings Co., Ltd., board chairman of Datang Telecom Group Finance Company Limited, and independent director of Beijing Easpring Material Technology Co., Ltd. He also served as the board chairman of several related parties. With over 40 years of experience in corporate management, Mr. Gao possesses extensive expertise and deep insight in high-tech enterprise management, corporate governance, investment, and financing.

(2) Senior management of the Company

Please refer to the above for the biographies of Li Youbo and Duan Huilu.

Liu Chunfa, male, a Chinese citizen with no foreign permanent residency, was born in October 1976 and graduated from Lanzhou Jiaotong University, majoring in mechatronics. He is currently vice president of the Company. Mr. Liu joined the Company in 2001. He successively served as engineer and assistant manager of the R&D department, technical manager of the technical engineering department, senior product manager, head of the manufacturing department, senior manager of the R&D department, head of the business unit, etc. Mr. Liu has over 20 years of experience in the field of electroacoustic components, especially in miniature micro speakers and receivers.

Jiang Hongzhai, male, a Chinese citizen with no foreign permanent residency, was born in December 1970 and graduated from Shandong College of Information Technology, majoring in computer application. He is currently the vice president of the Company. Mr. Jiang used to serve as factory director of Yuefeng Electronic Technology (Dongguan) Co., Ltd., and engineer of Weifang Radio Eighth Factory. He joined the Company in 2006 and successively served as deputy general manager of the equipment department, head of the employee management department, etc. Mr. Jiang has more than 20 years of experience in the field of precision machining and has rich experience in administration and infrastructure, etc.

Yu Dachao, male, a Chinese citizen with no foreign permanent residency, was born in May 1978 and holds a bachelor's degree in computer science and engineering from Tianjin University of Technology. He is currently vice president of the Company. Mr. Yu joined the Company in 2005 and successively served as the manager of R&D department, product manager, deputy general manager of R&D, head of business unit, and head of the supply chain management department. He has extensive experience in smart electronics development and supply chain management.

Gao Xiaoguang, male, a Chinese citizen with no foreign permanent residency, was born in March 1976 and holds a master's degree in business administration from Southern Cross University, Australia. He is currently vice president of the Company. Mr. Gao joined the Company in 2001, and successively served as manager, deputy general manager of the marketing department, deputy general manager of the electroacoustic device business unit, and head of the marketing system. He has rich experience in market expansion, key account operation and maintenance and human resources management, etc.

Rao Yi, male, a Chinese citizen with no foreign permanent residency, was born in June 1983 and holds a bachelor's degree in electronic science and technology from Tsinghua University, and economics from Peking University, and a master's degree in electronic science and technology from Tsinghua University. He has a Ph.D. in optoelectronics from the University of California, Berkeley. He is currently the vice president of the Company. Mr. Rao joined the Company in 2019. He used to work for Bandwidth 10 Corporation and Rokid US in the United States. He has received several honorary titles, including the Science and Technology Youth Award of Shandong Province, the Special Prize of Tianjin Science and Technology Invention and Taishan Industrial Leading Talent of Shandong Province. He has rich experience in the field of virtual reality/augmented reality optics.

Li Yongzhi, male, a Chinese citizen with no foreign permanent residency, was born in November 1978 and holds a master's degree in business management and a bachelor's degree in management from Hefei University of Technology. He is currently the chief financial officer and head of the accounting department of the Company. Mr. Li joined the Company in 2005 and successively served as accountant and financial manager of the financial department. Mr. Li is a senior accountant and certified management accountant (CMA), with over 20 years of experience in corporate finance.

mathrm X u Dapeng, male, a Chinese citizen with no foreign permanent residency, was born in November 1984. He holds a master's degree in management from Renmin University of China and a bachelor's degree in economics from Hunan University. He is currently the board secretary of the Company and possesses the Board Secretary Qualification Certificate. Mr. Xu joined the Company in 2015 and successively worked in the Company's marketing system and securities department. He successively held the positions of marketing director, securities affairs representative, etc. He has rich experience in the fields of marketing, securities finance, investor relations management, etc.

The situation where the controlling shareholder and the actual controller simultaneously serve as chairman and president of the listed company

Applicable  Not applicable

Positions held in shareholder's entities  Applicable  Not applicable  Applicable  Not applicable

Positions held in other entities

Penalties imposed by securities regulatory authorities on current and outgoing directors and senior management of the company in the past three years  Applicable  Not applicable

3. Remuneration of Directors and Senior Management

The decision-making procedure, basis and actual payment of the remuneration of directors and senior management

The remuneration for the directors and senior management of the Company shall be proposed to the Board of Directors by the Remuneration and Assessment Committee; The remuneration for the senior management shall be deliberated and determined by the Board of Directors; The remuneration for directors shall be deliberated by the Board of Directors before being submitted to the general meeting of shareholders for determination.

Proposal on the remuneration for directors and senior management approved by the above-mentioned approval authority of the Company is as follows:

Proposal on the remuneration of directors:

Non-independent directors who hold concurrent senior management or other positions in the Company will be compensated according to the approved remuneration proposal for senior management determined by the Board of Directors or the employment contract signed with the Company. They will not be additionally compensated as directors. The remuneration standard of the Chairman of the Board is RMB 1.8 million per year before tax and paid on a monthly basis.

The pre-tax allowance for independent directors of the 6th Board of Directors is RMB 180,000 per person per year, and for independent directors of the 7th Board of Directors is RMB 210,000 per person per year, paid on a monthly basis.

Proposal on the remuneration of senior management of the Company:

The remuneration for the Company's senior management is based on the remuneration standard for their respective positions or the provisions of their employment contracts. The remuneration for senior management consists of basic remuneration and performancebased remuneration. Among them, the basic remuneration shall be determined by the Company with reference to the market or industry remuneration standards in combination with their positions, responsibilities, abilities and other factors, and will be paid on a monthly basis. The performance-based remuneration shall be determined on the basis of factors such as the score of the performance appraisal period and the position weight of each senior management with reference to the Company's relevant performance appraisal management regulations. The remuneration will then be submitted to the Company's Remuneration and Assessment Committee for approval.

Additional explanation of the above proposal:

Normal working expenses incurred by the directors and senior management in the course of the Company's business shall be borne by the Company. When directors and senior management leave their positions due to a change in the term of office, re-election, resignation during their term or for any other reason, their remuneration will be calculated and paid based on their actual term of service.

Remuneration of directors and senior management during reporting period

Unit: RMB 10,000

Note: The total remuneration for directors and senior management who departed during the reporting period refers to the total pre-tax compensation received from the Company from the beginning of the reporting period to the date of their departure. The total remuneration for newly appointed directors and senior management refers to the total pre-tax remuneration received from the Company from the date of their appointment to the end of the reporting period.

Other circumstances  Applicable  Not applicable

V. Performance of Directors' Duties during the Reporting Period

1. Directors' attendance at the meetings of Board of Directors and general meeting of shareholders

Statement on absence from two consecutive meetings of the Board

None

2. Objections raised by directors to relevant matters of the Company

Whether directors raise any objection to relevant matters of the Company

 Yes  No

No objection was raised to relevant matters of the Company during the reporting period.

3. Other details on the performance of duties by directors

Whether proposals made by directors were adopted by the Company

 Yes  No

Statement on the adoption or non-adoption of proposals made by the directors

During the reporting period, the directors of the Company carried out work in strict accordance with the provisions of the Company Law, the Securities Law, Code ofCorporate Governance for Listed Companies, Rules Governing the Listing of Stocks on Shenzhen Stock Exchange, Self-Regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange - Normative Operation of Listed Companies on the Main Board, Articles of Association and Rules of Procedure of the Board of Directors. They fulfilled their duty of due diligence through full discussion on major governance and business matters of the Company, ensured the decision-making process being scientific, timely, and efficient, and resolutely supervised and drove the implementation of the relevant resolutions, so as to play a positive role in the sustainable, healthy and stable development of the Company, and effectively safeguard the legitimate rights and interests of the Company and all shareholders.

During the reporting period, the Company's independent directors carried out their work in strict accordance with the Measures for the Administration of Independent Directors of Listed Companies, Articles of Association, Rules of Procedure of the Board of Directors, and Independent Director Working System. They maintained communication with other directors, senior management, and relevant personnel through on-site and remote methods to actively understand the Company's production and operating conditions as well as its financial status. Based on their professional expertise, they made positive suggestions for improving corporate governance. These suggestions effectively ensured the fairness and objectivity of board decisions, and played a positive role in perfecting the Company's supervision mechanism and governance structure, thereby safeguarding the legitimate rights and interests of the Company and all shareholders.

VI. Performance of Special Committees under the Board of Directors during the Reporting Period

VII. Performance of the Audit Committee

Whether the audit committee found out any risk of the Company in its supervision activities during the reporting period.

 Yes  No

The audit committee has no objection to the matters supervised during the reporting period.

VIII. Personnel of the Company

1. Number of staff, specialty composition and educational background

2. Remuneration policy

The Company always adheres to the cultural philosophy of "We Make, We Share, We Thrive". It is committed to continuously building a distinctive compensation and incentive system with competitiveness and differentiation, while improving all-round welfare guarantees. Covering basic guarantees and targeted care services, the Company fully enhances employees' sense of gain and happiness.

The Company integrates remuneration incentives with employees' joint value creation, and strives to build a remuneration system with market competitiveness. It continuously carries out remuneration benchmarking and optimizes the remuneration distribution mechanism for all employees, ensuring that the remuneration strategy is tilted toward strategic businesses and key positions to reflect value differences. In 2025, the Company formulated all-round compensation policies including competitive salaries and retention incentives for outstanding fresh graduates from top universities, so as to strengthen the attraction and reserve of high-quality talents. For talents in core businesses and key positions, the Company has implemented robust special salary adjustments as well as incentive measures such as the incentive project of "Moat" and retention incentives, to realize targeted talent retention and motivation.

The Company continues to deepen the construction of incentive mechanisms and adheres to the guidance of "high performance and high incentives". Resource allocation is inclined to employees with outstanding contributions and key positions, ensuring that outstanding talents can obtain more competitive returns. At the same time, the Company attaches importance to the traction of longterm incentives and sets up equity incentive plans for employees. In 2025, the Company launched the "Home No. 8" Employee Stock Ownership Plan and the 2025 Stock Option Incentive Plan, covering more than 6,000 core key employees, which further strengthens the joint value creation between employees and the Company.

The Company strictly abides by national and local laws and regulations to protect the basic welfare rights and interests of all employees in terms of five social insurances and one housing fund, medical insurance and other aspects, and builds a compliant, comprehensive and caring employee security system. Always adhering to the people-oriented concept and taking employees' needs as the orientation, the Company has established an all-round and multi-level "eight major welfare categories" system. It covers more than 50 segmented welfare items including catering, comfortable accommodation, education, health care, thoughtful care, delightful entertainment, considerate life services and pleasant vacation arrangements. It comprehensively covers employees' work and life scenarios ranging from daily life, clothing, food, housing and transportation to physical and mental health, as well as family protection and personal growth, making intimate care within easy reach for all employees.

3. Training programs

In 2025, the Company deeply integrated major strategic projects and business development needs into its talent development system. While continuously consolidating foundational programs in leadership, professional competencies, and cultural values, the Company achieved innovative breakthroughs in key areas.The Company systematically advanced scenario-based practical training for core business personnel, effectively enhancing their versatile expertise and collaborative capabilities. It fully launched the development of an AI talent echelon, promoting the application and innovation of AI technologies in business scenarios through specialized training and tool enablement. Additionally, the Company successfully upgraded its intelligent learning platform to create personalized, immersive online learning experiences, providing robust support for the construction of a global talent echelon.

mathrm I n 20 26 , the Company will further advance the in-depth integration of talent development and business strategies to realize systematic upgrading and model innovation. The Company will systematically build a school-enterprise joint training mechanism to facilitate the integration of industry-university-research resources and establish an early-stage talent pipeline. It will scale up international talent development to broaden employees' global vision and strengthen their cross-cultural leadership.Furthermore, the Company will deepen the integration of AI and knowledge management, exploring the development of an enterprise-level knowledge base to foster AI capabilities that drive business transformation. It will continuously optimize the intelligent learning ecosystem, leveraging data and AI technologies to achieve precise competency diagnostics and development planning. Ultimately, the Company aims to build an agile, efficient, and future-oriented talent development system that steadily underpins its global strategic layout and sustainable development.

4. Labor outsourcing

 Applicable  Not applicable

IX. Profit Distribution and Conversion of Capital Surplus into Share Capital

Formulation, execution or adjustment of profit distribution policy, especially the cash dividend during the reporting period

 Applicable  Not applicable

The Company is strictly implementing the Shareholder Return Plan for the Next Three Years (2025-2027). It has clearly specified the standards, ratios, and decision-making procedures for the distribution policy, thereby ensuring the continuity and stability of profit distribution and fully protecting the legitimate rights and interests of minority investors. During the reporting period, the Company made no changes to its profit distribution policy.

The Company was profitable during the reporting period and the parent company had positive distributable profits to shareholders, but no cash dividend distribution plan was proposed.

 Applicable  Not applicable

Profit distribution and conversion of capital surplus into share capital during the reporting period.

 Applicable  Not applicable

In accordance with the relevant provisions of the Company Law and the Articles of Association, the Company's proposed 2025 annual profit distribution plan is as follows: Based on the total share capital registered on the record date of equity distribution minus the repurchased shares in the Company's specific securities repurchase account and adhering to the principle of unchanged distribution ratio, the Company will distribute a cash dividend of RMB 2.00 (tax inclusive) per 10 shares to all shareholders. No bonus shares will be issued, and no capital surplus shall be converted into share capital.

If the Company's total share capital changes due to share buybacks, the exercise of stock options by incentive recipients, material asset restructuring, cancellation of repurchased shares, new shares issued for refinancing and other circumstances between the disclosure date of the Company's 2025 annual profit distribution plan and the record date of equity distribution, the Company will adjust the total distribution amount accordingly while keeping the distribution ratio unchanged.

In accordance with the relevant provisions of the Rules for Share Repurchase of Listed Companies, the shares held in the Company's specific securities repurchase account are not entitled to participate in profit distribution and the conversion of capital surplus into share capital.

Up to now, the Company holds 46,011,092 shares in its specific securities repurchase account. Based on the Company's current total share capital of 3,549,771,109 shares, after deducting the repurchased shares, the adjusted share base of 3,503,760,017 shares is adopted for the calculation. The total amount of cash dividend is RMB 700,752,003.40 (tax inclusive).

X. Stock Option Incentive Plan, Employee Stock Ownership Plan or Other Employee Incentives

 Applicable  Not applicable

1. Stock option incentive plan

(1) The 2021 Stock Option Incentive Plan (hereinafter referred to as the "2021 Incentive Plan")

On April 16, 2021, the Company convened the 19th meeting of the 5th Board of Directors and the 14th meeting of the 5th Board of Supervisors, at which the Proposal on the 2021 Stock Option Incentive Plan (Draft) and Its Abstract of Goertek Inc. and other related proposals were approved. The incentive participants of the 2021 Incentive Plan were the key management and key business personnel serving in the Company and its wholly-owned and controlled subsidiaries. On May 7, 2021, the Company held the 2020 Annual General Shareholders' Meeting and approved the aforesaid relevant proposals. The 2021 Incentive Plan was approved, and the 2020 Annual General Shareholders' Meeting authorized the Board of Directors to handle matters related to the 2021 Incentive Plan.

On April 21, 2025, the Company convened the 25th meeting of the 6th Board of Directors and the 20th meeting of the 6th Board of Supervisors, at which the Proposal on Cancellation of Stock Options Granted and Unexercised at the Expiration of the Second Exercise Period of the Reserved Portion under the Company's 2021 Stock Option Incentive Plan was reviewed and approved. In accordance with the above resolution and the authorization granted by the 2020 Annual General Shareholders' Meeting, the Company cancelled a total of 937,895 stock options granted to incentive participants of the reserved grant portion under the 2021 Incentive Plan, which had been granted but had expired without being exercised. Relevant cancellation procedures were completed on April 24, 2025. Upon completion of the cancellation, the 2021 Incentive Plan of the Company has been fully implemented and concluded.

(2) The 2022 Stock Option Incentive Plan (hereinafter referred to as the "2022 Incentive Plan")

On July 8, 2022, the Company convened the 31st meeting of the 5th Board of Directors and the 25th meeting of the 5th Board of Supervisors, at which the Proposal on the 2022 Stock Option Incentive Plan (Draft) and Its Abstract of Goertek Inc. and other related proposals were approved. The incentive participants of the 2022 Incentive Plan were the key management and key business personnel serving in the Company and its wholly-owned and controlled subsidiaries. On July 26, 2022, the Company held the First Extraordinary General Shareholders' Meeting of 2022 and approved the aforesaid relevant proposals. The 2022 Incentive Plan was approved, and the First Extraordinary General Shareholders' Meeting of 2022 authorized the Board of Directors to handle matters related to the 2022 Incentive Plan.

On March 26, 2025, the Company convened the 23rd meeting of the 6th Board of Directors and the 19th meeting of the 6th Board of Supervisors, at which the Proposal on Cancellation of Stock Options for the First Granted Portion under the Company's 2022 Stock Option Incentive Plan Due to Failure to Meet the Exercise Conditions for the Second Exercise Period was reviewed and approved. In accordance with the above resolution and the authorization granted by the First Extraordinary General Shareholders' Meeting of 2022, the Company cancelled a total of 23,994,510 stock options of the initially granted portion under the 2022 Incentive Plan, which failed to satisfy the exercise conditions due to the Company's failure to meet the performance assessment targets for the second exercise period. The relevant cancellation procedures have been completed, and the 2022 Incentive Plan of the Company has been fully implemented.

(3) The 2023 Stock Option Incentive Plan (hereinafter referred to as the "2023 Incentive Plan")

On July 19, 2023, the Company convened the 7th meeting of the 6th Board of Directors and the 6th meeting of the 6th Board of Supervisors, at which the Proposal on the 2023 Stock Option Incentive Plan (Draft) and Its Abstract of Goertek Inc. and other related proposals were approved. The incentive participants of the 2023 Incentive Plan were the key management and business personnel of the Company and its subsidiaries. On August 8, 2023, the Company held the First Extraordinary General Shareholders' Meeting of 2023 and approved the aforesaid relevant proposals. The 2023 Incentive Plan was approved, and the First Extraordinary General Shareholders' Meeting of 2023 authorized the Board of Directors to handle matters related to the 2023 Incentive Plan.

On June 4, 2025, the Company convened the 27th meeting of the 6th Board of Directors and the 22nd meeting of the 6th Board of Supervisors, at which the Proposal on the Adjustment of the Exercise Price under the 2023 Stock Option Incentive Plan, the Proposal on the Adjustment of the List of Incentive Recipients and Grant Sizes for the Reserved Granted Portion under the 2023 Stock Option Incentive Plan and the Cancellation of Certain Stock Options, and the Proposal on the Achievement of the Exercise Conditions for the First Exercise Period of the Reserved Granted Portion under the 2023 Stock Option Incentive Plan were approved. In accordance with the above resolutions and the authorization granted by the First Extraordinary General Shareholders' Meeting of 2023, the Company adjusted the exercise price of the initially granted portion and the reserved granted portion under the 2023 Incentive Plan from RMB 18.12 per share to RMB 17.97 per share. The total number of incentive recipients for the reserved granted portion was adjusted from 945 to 905, and a total of 1,127,600 granted stock options that failed to meet the exercise conditions were cancelled. The relevant cancellation procedures were completed on June 12, 2025. After the cancellation, the number of stock options under the reserved grant portion was adjusted from 15,025,900 to 13,898,300. The Board of Directors holds that the exercise conditions for the first exercise period of the reserved grant portion under the 2023 Incentive Plan have been met, and incentive recipients may exercise their rights in accordance with the relevant provisions of the 2023 Incentive Plan.

On August 21, 2025, the Company convened the 30th meeting of the 6th Board of Directors and the 25th meeting of the 6th Board of Supervisors, at which the Proposal on the Adjustment of the List of Incentive Recipients and Grant Sizes for the Initial Grant under the Company's 2023 Stock Option Incentive Plan and the Cancellation of Certain Stock Options, the Proposal on the Achievement of the

Exercise Conditions for the Second Exercise Period of the Initial Grant under the Company's 2023 Stock Option Incentive Plan were approved.The Company adjusted the total number of incentive recipients for the initially granted portion under the 2023 Incentive Plan from 5,002 to 4,735. The number of stock options of the initially granted portion (excluding the vested and unexercised portion of the first exercise period of the initially granted portion) was adjusted from 116,266,320 to 110,142,661, and a total of 6,123,659 granted stock options that failed to meet the exercise conditions were cancelled. The relevant cancellation procedures were completed on August 25, 2025. The Board of Directors holds that the exercise conditions for the second exercise period of the initially granted portion under the 2023 Incentive Plan have been met, and incentive participants may exercise their rights in accordance with the relevant provisions of the 2023 Incentive Plan.

On August 27, 2025, the Company convened the 31st meeting of the 6th Board of Directors and the 26th meeting of the 6th Board of Supervisors, at which the Proposal on Cancellation of Unexercised Stock Options upon Expiration of the First Exercise Period of the Initial Grant under the Company's 2023 Stock Option Incentive Plan was approved.The Company cancelled a total of 69,000 stock options granted to incentive participants of the initially granted portion under the 2023 Incentive Plan, which had been granted but expired without being exercised.The relevant cancellation procedures were completed on August 28, 2025.

On October 24, 2025, the Company convened the 35th meeting of the 6th Board of Directors and the 29th meeting of the 6th Board of Supervisors, at which the Proposal on the Adjustment of the Exercise Price under the Company's Stock Option Incentive Plan was approved. The Company adjusted the exercise price under the 2023 Incentive Plan from RMB 17.97 per share to RMB 17.82 per share. As of the end of the reporting period, the initially granted portion of the 2023 Incentive Plan is within the second exercise period, and the reserved grant portion is within the first exercise period.

(4) The 2025 Stock Option Incentive Plan (hereinafter referred to as the "2025 Incentive Plan")

On May 8, 2025, the Company convened the 26th meeting of the 6th Board of Directors and the 21st meeting of the 6th Board of Supervisors, at which the Proposal on the 2025 Stock Option Incentive Plan (Draft) and Its Abstract of Goertek Inc. and other related proposals were approved. The incentive participants of the 2025 Incentive Plan were the key management and core business personnel of the Company and its subsidiaries.On September 30, 2025, the Company held the First Extraordinary General Shareholders' Meeting of 2025, approved the aforesaid related proposals, and authorized the Board of Directors to handle matters in connection with the 2025 Incentive Plan.

On October 20, 2025, the Company convened the 34th meeting of the 6th Board of Directors and the 28th meeting of the 6th Board of Supervisors, at which the Proposal on the Adjustment of Incentive Recipients and Grant Sizes under the Company's 2025 Stock Option Incentive Plan, and the Proposal on the Grant of Stock Options to Incentive Recipients were approved.The Company adjusted the total number of incentive participants under the 2025 Incentive Plan from 6,302 to 5,972, and revised the total number of stock options granted to incentive participants from 68,060,000 to 59,716,520. The Company designated October 20, 2025 as the grant date for the stock options under the 2025 Incentive Plan.

On October 24, 2025, the Company convened the 35th meeting of the 6th Board of Directors and the 29th meeting of the 6th Board of Supervisors, at which the Proposal on the Adjustment of the Exercise Price under the Company's Stock Option Incentive Plan was approved. The Company adjusted the exercise price under the 2025 Incentive Plan from RMB 22.21 per share to RMB 22.06 per share.

On November 19, 2025, the Company completed the grant and registration procedures of the 2025 Incentive Plan, and granted a total of 58,068,320 stock options to 5,943 incentive participants who met the grant conditions. As of the end of the reporting period, the 2025 Incentive Plan is within the vesting period.

For details, please refer to the relevant announcements published in CNINFO (http://www.cninfo.com.cn), Securities Times, China Securities Journal, Shanghai Securities News, and Securities Daily.

Stock options granted to Directors and senior management  Applicable  Not applicable

Unit: share

The Appraisal and incentive mechanism for senior management

The remuneration standard for senior management shall be formulated by the remuneration and assessment committee, and implemented after approval by the Board of Directors.

2. Implementation of employee stock ownership plan

 Applicable  Not applicable

All valid employee stock ownership plans during the reporting period al shares held by directors, and senior management in employee stock ownership plans during the reporting pe

Changes of asset management agency during the reporting period  Applicable  Not applicable Changes in equity resulting from participants' disposal of holdings and other factors during the reporting period  Applicable  Not applicable

During the reporting period, upon the expiration of the applicable lock-up period, the Company's "Home No. 6" Employee Stock Ownership Plan disposed of a portion of its holdings in accordance with relevant provisions. As of the end of the reporting period, the Company's "Home No. 6" Employee Stock Ownership Plan held 30,179,120 shares of the Company, accounting for 0.85% of the total share capital.

Exercise of shareholders' rights during the reporting period

During the reporting period, the Company's Employee Stock Ownership Plan exercised shareholders' rights to received in cash dividends for the fiscal year 2024, and for the first three quarters of 2025.

Other relevant situations and descriptions related to employee stock ownership plans during the reporting period

 Applicable  Not applicable

During the reporting period, 1,893,274 shares held by participants of the "Home No. 6" Employee Stock Ownership Plan were withdrawn due to resignation and other reasons, and 72,677 shares held by participants of the "Home No. 7" Employee Stock Ownership Plan were withdrawn due to resignation and other reasons.

Changes in members of the Management Committee of the Employee Stock Ownership Plans

 Applicable  Not applicable

Financial impacts of the employee stock ownership plans during the reporting period and relevant accounting treatment

 Applicable  Not applicable

In accordance with the provisions of Accounting Standard for Business Enterprises No. 11 — Share-based Payment:For equity-settled share-based payment transactions in exchange for employee services, which vest only upon completion of service during the vesting period or satisfaction of specified performance conditions, at each balance sheet date within the vesting period, the services received in the current period shall be recognized in the relevant costs or expenses and capital reserve, based on the best estimate of the number of exercisable equity instruments and at the fair value of the equity instruments on the grant date.The expense amortization of the Company's "Home No. 6" and "Home No. 7" Employee Stock Ownership Plans for 2025 amounted to RMB 105.1407 million and RMB 6.1767 million respectively.

Termination of employee stock ownership plan during the reporting period

 Applicable  Not applicable

Explanation of other matters:

None

3. Other employee incentive measures

 Applicable  Not applicable

XI. Establishment and Implementation of the Company's Internal Control System during the Reporting Period

1. Establishment and implementation of internal control system

The Company has implemented a rigorous and effective internal control system that is tailored to its specific needs in strict compliance with the Basic Standard for Enterprise Internal Control, as well as relevant laws, regulations, and normative documents. The internal audit department is responsible for overseeing and assessing the implementation of this system. The Board of Directors conducts an annual self-evaluation of the Company's internal controls and discloses the Internal Control Evaluation Report. Simultaneously, the Company engages an accounting firm to conduct an internal control audit of the Company.

The Company continuously improves its internal control level in compliance with applicable laws, regulations, normative documents and the Articles of Association of the Company. During the reporting period, all operational activities of the Company were conducted in compliance with relevant systems and provisions. The Company manages major internal control businesses and matters in a strict, adequate and effective manner, including governance structure, organizational structure, social responsibility, corporate culture, human resources, procurement business, sales business, asset management, capital activities, research and development, engineering projects, financial reporting, related party transactions, external guarantees, investment management, financing management, information disclosure, internal supervision, and integrity construction.

During the reporting period, the Company did not have any material or significant deficiencies in its internal control of financial and non-financial reports. The Company has maintained effective internal control in all material respects in accordance with the requirements of the corporate internal control standard system and relevant regulations.

2. Details of material deficiency of internal control detected during the reporting period

 Yes  No

XII. Management and Controls of Subsidiaries during the Reporting Period

Not applicable

XIII. Internal Control Evaluation Report or Internal Control Audit Report

1. Internal control evaluation report

2. Internal control audit report

 Applicable  Not applicable

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

 Yes  No

Whether the opinion expressed in the internal control audit report issued by the accounting firm and the self-evaluation report of the Board of Directors are consistent

 Yes  No

Whether a non-standard audit opinion on internal control was issued for the reporting period or the previous year  Yes  No

XIV. Rectification of Issues Identified in the Special Action on Listed Company Governance

Not applicable

XV. Environmental Information Disclosure

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

 Yes  No

XVI. Performance of Social Responsibility

During the reporting period, while achieving its own development, the Company implemented work regarding the protection of the rights and interests of shareholders, creditors, employees, suppliers, customers, and consumers, environmental protection and sustainable development, as well as public relations and public welfare undertakings. For further details, please refer to the 2025 Sustainability Report of Goertek Inc. disclosed on CNINFO on April 24, 2026.

XVII. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural Revitalization

For further details, please refer to the 2025 Sustainability Report of Goertek Inc. disclosed on CNINFO on April 24, 2026.

Section V Important Matters

I. Fulfilment of Commitments

1. The commitments of the Company's actual controllers, shareholders, related parties, acquires and companies that have been completely fulfilled during the reporting period or remain valid by the end of the reporting period.

 Applicable  Not applicable

2. If the Company's assets or projects have profit forecasts and the reporting period is still in the profit forecasting period, the Company shall make statement on whether the assets or projects reach the original profit forecast and provide relevant reasons

 Applicable  Not applicable

3. The company is involved in performance commitments.

 Applicable  Not applicable

II. Non-operational Occupation of Funds by Controlling Shareholders and Other Related Parties to Listed Companies

 Applicable  Not applicable During the reporting period of the Company, there is no non-operational occupation of funds by controlling shareholders or other related parties to the Company.

III. External Guarantee in Violation of Regulations

 Applicable  Not applicable

The Company has no violation of external guarantee during the reporting period.

IV. Explanation made by the Board of Directors about the modified audit opinion for the latest period

 Applicable  Not applicable

V. Explanation of the Accounting Firm's "Modified Auditor's Report" by the Board of Directors and Independent Directors (if Any) During the Reporting Period

 Applicable  Not applicable

VI. Explanation of Changes in Accounting Policies, Accounting Estimates or Correction of Major Accounting Errors Compared with the Financial Report of Previous Year

 Applicable  Not applicable There were no changes in accounting policies, accounting estimates, or corrections of material accounting errors during the reporting period.

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

 Applicable  Not applicable

During the reporting period, the Company established 12 subsidiaries, including Weifang Goertek Smart Technology Co., Ltd., Qingdao Goertek Starshine Smart Technology Co., Ltd., Hefei Goertek Technology Co., Ltd., Hangzhou Goertek Technology Co., Ltd., Dongguan Yili Technology Co., Ltd., Hainan Goertek Trading Co., Ltd., Shanghai Goertek IntelliReach Technology Co., Ltd., Goertek Optoelectronics Technology (Qingdao) Co., Ltd., GoerView Technology (HongKong) Co., Limited,Goertek Holdings (HongKong) Co., Limited, Yili Technology Vietnam Company Limited, Goertek Singapore Holdings Pte. Ltd.

During the reporting period, a total of 16 subsidiaries were excluded from the consolidated financial statements, including Goertek Optical Technology Co., Ltd., Goertek Optical Technology (Qingdao) Co., Ltd., Goertek Optical Technology (Shanghai) Co., Ltd., Uphoton Technology (Shaoxing) Co., Ltd., Uphoton Technology (Beijing) Co., Ltd., Jiaxing Uphoton Optoelectronics Technology Co., Ltd., Shaoxing UPhoton Precision Technology Co., Ltd., Hangzhou Uphoton Optoelectronics Technology Co., Ltd., Tianjin

Uphoton Technology Co., Ltd., Nanjing Uphoton Technology Co., Ltd., Goertek Optical Technology (HongKong) Holdings Co., Limited, Goertek Optical Technology (HongKong) Co., Limited, Goertek Optoelectronics Technology (Qingdao) Co., Ltd., GoerView Technology (HongKong) Co., Limited, Qingdao Goerpixel Technology Co., Ltd., Xi'an Goerpixel Technology Co., Ltd.

VIII. Appointment and Dismissal of Accounting Firms

Accounting firm currently appointed

Whether to reappoint accounting firm in current period

 Yes  No

Employment of internal control audit accounting firms, financial consultants or sponsor

 Applicable  Not applicable

During the reporting period, the Company engaged Zhongxi CPAs (Special General Partnership) as the internal control audit accounting firm and paid the internal control audit fee of RMB 800,000 that has been included in the total compensation of RMB 3 million (taxinclusive) paid to Zhongxi CPAs (Special General Partnership).

IX. Delisting After the Disclosure of Annual Report

 Applicable  Not applicable

X. Bankruptcy or Reorganization Related Events

 Applicable  Not applicable No bankruptcy or reorganization related events occurred during the reporting period.

XI. Significant Lawsuit and Arbitration Events

 Applicable  Not applicable No significant litigation or arbitration events occurred during the reporting period.

XII. Punishment and Rectification

 Applicable  Not applicable No punishment or rectification occurred during the reporting period.

XIII. Integrity Issues of the Company, Controlling Shareholders and Actual Controllers

 Applicable  Not applicable

XIV. Significant Related Party Transactions

1. Related party transactions related to daily operations

 Applicable  Not applicable

No significant related party transactions related to daily operations occurred during the reporting period.

2. Related party transactions involving the acquisition or sale of assets or equity

 Applicable  Not applicable

significant related party transactions involving the acquisition or sale of assets or equity occurred during the reporting

3. Related party transactions of joint external investment

 Applicable  Not applicable

No significant related party transactions of joint external investment occurred during the reporting period.

4. Related party transactions of credits and liabilities

 Applicable  Not applicable

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

 Yes  No

Creditor's rights receivable from related parties

None

Debt due to related parties

5. Business with affiliated financial company

 Applicable  Not applicable

There is no finance company that has a related party relationship with the Company.

6. Business between the related parties and the financial company controlled by the Company

 Applicable  Not applicable

There was no financial company controlled by the Company.

7. Other significant related party transactions

 Applicable  Not applicable No other significant related party transactions occurred during the reporting period.

XV. Significant Contracts and Executions

1. Trusteeship, contracting and leasing

(1) Trusteeship

 Applicable  Not applicable

No significant trusteeship occurred during the reporting period.

(2) Contracting

 Applicable  Not applicable

No significant contracting occurred during the reporting period.

(3) Leasing

 Applicable  Not applicable

No significant leasing occurred during the reporting period.

2. Significant guarantees

 Applicable  Not applicable

The Company's guarantee to its subsidiaries

Specific description of complex guarantees

None

3. Entrusted management of cash assets

(1) Entrusted wealth management

 Applicable  Not applicable

Entrusted wealth management during the reporting period

The company, as the sole entrusting party, entrusts financial institutions with asset management, or invests in high-risk entrusted wealth management products with low safety and poor liquidity, and shall specify the actual circumstances.

 Applicable  Not applicable

(2) Entrusted loans

 Applicable  Not applicable

No entrusted loans occurred during the reporting period.

4. Other significant contracts

 Applicable  Not applicable

No other significant contracts occurred during the reporting period.

XVI. Use of Raised Funds

 Applicable  Not applicable

No use of raised funds occurred during the reporting period.

XVII. Explanation of Other Significant Matters

 Applicable  Not applicable

On September 12, 2025, the Company convened the 32nd meeting of the 6th Board of Directors, at which it reviewed and approved the Proposal on the Subsidiary Equity Transaction and the Proposal on the Capital Increase of Goertek Optical Technology Co., Ltd. and Related Party Transactions. The Board resolved that the Company and Goertek Optical would enter into relevant agreements with the transaction counterparties. Under the agreed terms, Goertek Optical would acquire 10 0% equity interests in Sunny OmniLight NanoOptics Co., Ltd. and Sunny OmniLight NanoOptics Information Technology Co., Ltd. (collectively the "Share Exchange Transaction") by issuing new registered capital of RMB 529,511,488 to Sunny OmniLight Technology Co., Ltd. ("Ningbo OmniLight") and the counterparty's employee shareholding platform.

Upon completion of the Share Exchange Transaction, the Company and Ningbo OmniLight each made a capital contribution of RMB 200 million to subscribe for the newly issued registered capital of RMB 55,640,600 of Goertek Optical. As of the end of the reporting period, the Company had fully completed the aforesaid transactions and capital increases. As a result, the Company's shareholding in Goertek Optical dropped from 56.65 60% to 38.57 13% . In accordance with Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, Goertek Optical was no longer included in the Company's scope of consolidation.

In accordance with the requirements of laws and regulations, the Company has disclosed the significant matters that should be disclosed and occurred during the reporting period on http://www.cninfo.com.cn, Securities Times, China Securities Journal, Shanghai Securities News and Securities Daily. Other than that, no other significant matters occurred.

XVIII. Significant Events of Subsidiaries of the Company

 Applicable  Not applicable

On September 13, 2024, the Company held the 19th meeting of the 6th Board of Directors, which approved the Proposal of Planning on the Spin-off of Goertek Microelectronics Inc. and Listing on the Main Board of the Hong Kong Stock Exchange and other related proposals. The above-mentioned proposals were reviewed and approved at the Company's third extraordinary general meeting of shareholders held in 2024.

On January 20, 2025, Goertek Microelectronics submitted an application for the initial public offering of overseas listed foreign shares (H shares) and their listing on the main board of the Hong Kong Stock Exchange to the Stock Exchange of Hong Kong Limited (hereinafter referred to as "HKEX"), and published the application materials for such offering and listing on the website of HKEX (www.hkexnews.hk).

On March 4, 2025, Goertek Microelectronics submitted the filing documents regarding this issuance and listing to the China Securities Regulatory Commission (CSRC) in accordance with relevant regulations, and the CSRC has acknowledged receipt of the materials.

For details, please refer to the relevant announcements published in CNINFO (http://www.cninfo.com.cn), Securities Times, China Securities Journal, Shanghai Securities News, and Securities Daily.

Section VI Changes in Shares and Shareholders' Information

I. Changes in Shares

1. Changes in shares

Unit: share

Reasons for changes in shares  Applicable  Not applicable

Exercise of the Reserved Granted Portion of the 2021 Stock Option Incentive Plan is in the second exercise period. During the reporting period, the exercise of rights by eligible incentive recipients led to an increase in the Company's share capital by 216,555 shares.

Exercise of the Initial Granted Portion of the 2023 Stock Option Incentive Plan is in the first and second exercise period. During the reporting period, the exercise of rights by eligible incentive recipients led to an increase in the Company's share capital by 54,207,679 shares.

Exercise of the Reserved Granted Portion of the 2023 Stock Option Incentive Plan is in the first exercise period. During the reporting period, the exercise of rights by eligible incentive recipients led to an increase in the Company's share capital by 6,664,410 shares.

Approval of changes in shares  Applicable  Not applicable

On March 27, 2024, the Company convened the 14th meeting of the 6th Board of Directors, which approved the Proposal on the Achievement of the Exercise Conditions for the Second Exercise Period of the Reserved Granted Portion in the 2021 Stock Option Incentive Plan, among others. The Board of Directors approved that the exercise conditions had been met. 147 incentive recipients with reserved grants can exercise stock options during the second exercise period by means of voluntary exercise.

On August 14, 2024, the Company convened the 18th meeting of the 6th Board of Directors, which approved the Proposal on the Achievement of the Exercise Conditions for the First Exercise Period of the Initial Granted Portion in the 2023 Stock Option Incentive Plan, among others. The Board of Directors approved that the exercise conditions had been met. 5,001 incentive recipients can exercise stock options during the first exercise period by means of voluntary exercise.

On June 4, 2025, the Company convened the 27th meeting of the 6th Board of Directors, which approved the Proposal on the Achievement of the Exercise Conditions for the First Exercise Period of the Reserved Granted Portion in the 2023 Stock Option Incentive Plan, among others. The Board of Directors approved that the exercise conditions had been met. 905 incentive recipients can exercise stock options during the first exercise period by means of voluntary exercise.

On August 21, 2025, the Company convened the 30th meeting of the 6th Board of Directors, which approved the Proposal on the Achievement of the Exercise Conditions for the Second Exercise Period of the Initial Granted Portion in the 2023 Stock Option Incentive Plan, among others. The Board of Directors approved that the exercise conditions had been met. 4,735 incentive recipients can exercise stock options during the second exercise period by means of voluntary exercise.

Ownership transfer of changes in shares  Applicable  Not applicable

According to the 2021 Stock Option Incentive Plan of Goertek Inc. (Draft), the second exercise period of the Reserved Granted Portion of the 2021 Stock Option Incentive Plan is from April 20, 2024, to April 19, 2025. China Securities Depository and Clearing Co., Ltd. will handle the corresponding stock registration in conjunction with the incentive recipients exercising their rights during the aforementioned exercise period.

According to the 2023 Stock Option Incentive Plan of Goertek Inc. (Draft) (Revised), the first exercise period of the Initial Granted Portion of the 2023 Stock Option Incentive Plan is from August 28, 2024, to August 27, 2025, the second exercise period is from August 28, 2025, to August 27, 2026, and the first exercise period of the Reserved Granted Portion of the 2023 Stock Option Incentive Plan is from June 27, 2025, to June 26, 2026. China Securities Depository and Clearing Co., Ltd. will handle the corresponding stock registration in conjunction with the incentive recipients exercising their rights during the aforementioned exercise period.

The impact of share changes on the financial indicators such as basic earnings per share, diluted earnings per share and net assets per share attributable to the Company's common shareholders in the latest year and period

 Applicable  Not applicable

During the reporting period, as the 2021 and 2023 stock option incentive plans were in their exercise periods, the changes in shares resulting from the exercise of options correspondingly affected financial indicators such as basic earnings per share, diluted earnings per share, and net assets per share attributable to ordinary shareholders of the Company, but did not have a material impact.

Other content that the Company considers necessary or that the securities regulator requires to be disclosed

 Applicable  Not applicable

2. Changes in restricted shares

 Applicable  Not applicable

Unit: share

II. Issuance and Listing of Securities

1. Securities issuance (excluding preferred stocks) during the reporting period

 Applicable  Not applicable

Description of the issuance of securities (excluding preferred stocks) during the reporting period

(1) The Reserved Granted Portion of the 2021 Stock Option Incentive Plan for the Second Exercise Period was approved by the Company's Board of Directors, and the exercise conditions have been satisfied. During the reporting period, the Company's share capital increased by 216,555 shares due to exercise by certain incentive recipients.

(2) The Initial Granted Portion of the 2023 Stock Option Incentive Plan for the First and the Second Exercise Period was approved by the Company's Board of Directors, and the exercise conditions for the First and the Second Exercise Period have been satisfied. During the reporting period, the Company's share capital increased by 54,207,679 shares due to exercise by certain incentive recipients.

(3) The Reserved Granted Portion of the 2023 Stock Option Incentive Plan for the First Exercise Period was approved by the Company's Board of Directors, and the exercise conditions have been satisfied. During the reporting period, the Company's share capital increased by 6,664,410 shares due to exercise by certain incentive recipients.

2. Description of changes in the total number of shares, the structure of shareholders, and the structure of assets and liabilities

 Applicable  Not applicable

In 2025, the Company's share capital increased by 61,088,644 shares due to the exercise of options by incentive recipients, resulting in an increase of RMB 1.101 billion in the Company's cash. See Section VI (I), Item 1 "Changes in Shares" of this report for details.

3. Internal employee shares

 Applicable  Not applicable

III. Shareholders and Actual Controllers

1. Number of shareholders and corresponding shareholding

Unit: share

Whether shareholders holding more than 5% , the top 10 shareholders, and the top 10 unrestricted public shareholders participating in the lending of shares through refinancing business Applicable  Not applicable

Any change in the top 10 shareholders and the top 10 unrestricted public shareholders compared to the previous period due to reasons related to the lending/returning of shares through refinancing business

 Applicable  Not applicable

Whether the Company's top 10 common shareholders and top 10 common shareholders without share sales restrictions agreed on any repurchase transaction in the reporting perio  Yes  No

one of the Company's top 10 common shareholders and top 10 common shareholders without share sales restrictions agreed on any repurchase in the reporting period.

2. Particulars about the controlling shareholder

Nature of the controlling shareholder: Natural person controlling

Type of the controlling shareholder: Legal entity

Change of the controlling shareholders in the reporting period

 Applicable  Not applicable

No change on the controlling shareholder of the Company in the reporting period.

3. Actual controllers of the Company and persons acting in concert with the actual controller

Nature of the actual controllers: Domestic individual

Type of the actual controllers: Individual

Change on the actual controllers in the reporting period

 Applicable  Not applicable

No change on the actual controllers of the Company in the reporting period.

Block Diagram for Equity Right and Control Relationship between the Company and its Actual Controllers

The actual controller controls the Company via trust or other ways of asset management

 Applicable  Not applicable

4. All the pledged shares account for 80% of the total shares held by the controlling shareholder or No.1 shareholder of the Company and their persons acting in concert

 Applicable  Not applicable

5. Particulars about other corporate shareholders with over 10% shares of the Company

 Applicable  Not applicable

6. Particulars on share sales restrictions for controlling shareholders, actual controllers, or other parties involved in the reorganization of the Company or in any commitments related to the sales of shares

 Applicable  Not applicable

IV. Specific Implementation of Share Repurchase in the Reporting Period

Progress of share repurchase

 Applicable  Not applicable

The progress of repurchased shares reduction through centralized trading at competitive price  Applicable  Not applicable

V. Preference Shares

 Applicable  Not applicable

There are no preference stocks in the reporting period.

Section VII Bonds

 Applicable  Not applicable

I. Enterprise Bonds

 Applicable  Not applicable The Company had no enterprise bonds during the reporting period.

II. Corporate Bonds

 Applicable  Not applicable

The Company had no corporate bonds during the reporting period.

III. Non-Financial Corporate Debt Financing Instruments

 Applicable  Not applicable

1. Basic information of non-financial corporate debt financing instruments

Unit: RMB 10,000

Bonds overdue but not yet repaid  Applicable  Not applicable

2. Trigger and execution of issuer or investor option clauses and investor protection clauses

 Applicable  Not applicable

3. The situation of intermediary agencies

Whether the above institutions have changed during the reporting period

□Yes  No

4. Use of funds raised

Funds raised for construction projects

 Applicable  Not applicable

The company changed the intended use of the aforementioned bond proceeds during the reporting period

 Applicable  Not applicable

5. Credit rating adjustments during the reporting period

 Applicable  Not applicable

6. Guarantee status, debt repayment plans, and other debt service safeguard measures: implementation, changes, and impact on bond investors' rights and interests during the reporting period

 Applicable  Not applicable

IV. Convertible Corporate Bonds

 Applicable  Not applicable

The Company had no convertible bonds during the reporting period.

V. Loss in the Consolidated Financial Statements during the Reporting Period Exceeded 10% of the Net Assets at the End of the Previous Reporting Period

 Applicable  Not applicable

VI. Overdue Interest-Bearing Debts Other Than Bonds at the End of the Reporting Period

 Applicable  Not applicable

VII. Whether There Were Any Violations of Rules and Regulations during the Reporting Period

□Yes  No

VIII. Main Accounting Data and Financial Indicators of the Company for the Most Recent Two Years as of the End of the Reporting Period

Unit: RMB 10,000

Section VIII Financial Report

I. Auditor's Report

Auditor's Report

Zhong Xi Cai Shen No. 2026S02024

To all the shareholders of Goertek Inc.,

I. Opinion

We have audited the accompanying financial statements of Goertek Inc. (hereinafter referred to as "Goertek"), including the consolidated and Company's balance sheets as of December 31, 2025, the consolidated and Company's income statements, the consolidated and Company's cash flow statements, the consolidated and Company's statements of changes in shareholders' equity, and notes to the financial statements for the year then ended.

In our opinion, the accompanying financial statements have been prepared in all material aspects in accordance with the Accounting Standards for Business Enterprises, fairly presenting the consolidated and Company's financial position as of December 31, 2025, and the consolidated and Company's financial performance and cash flows for the year then ended.

II. Basis for Opinion

We conducted our audit in accordance with the Auditing Standards for Certified Public Accountants of China. Our responsibilities under those standards are further described in the "Certified Public Accountants' Responsibilities for the Audit of the Financial Statements" section of the auditor's report. We are independent of Goertek Inc. in accordance with the independence requirements for audits of public interest entities under the Independence Standards for Certified Public Accountants of China and the Code of Ethics for Certified Public Accountants of China ("Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditor's opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, are of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We determine that the following matters are key audit matters that need to be communicated in the audit report.

(I) Revenue recognition

1. Description of the matter

Goertek Inc. is mainly in the business of producing and selling electronic components, and for the accounting policy of revenue recognition, please refer to ''27. Revenue '' in ''III. Significant Accounting Policies and Accounting Estimates'' of notes to the financial statements. In 2025, the revenue in the consolidated financial statements of Goertek Inc. is RMB 96,550.1696 million.

Revenue is one of the key performance indicators of Goertek Inc. and is the major source of profit of the Company, and the accuracy and completeness of revenue recognition has a significant impact on the profits of the Company. Therefore, we identified the recognition of Goertek Inc.'s revenue as a key audit matter.

2. Audit procedures

We performed the following audit procedures in recognition of the revenue:

(1) Understood, evaluated and tested the design and effectiveness of the internal control related to revenue recognition;

(2) Performed analytical review procedure to analyze the rationality of changes in the revenue and gross profits;

(3) Identified the contractual terms related to the transfer of risks and rewards of ownership of goods, evaluated whether the accounting policies for revenue recognition in different modes were appropriate, and evaluated whether the time point for revenue recognition of the Company was consistent with the requirements in the Accounting Standards for Business Enterprises by audit procedures such as checking the major sales contracts or orders, understanding the policies for receipt and return of goods, communicating with the management;

(4) Selected samples to check the supporting documents related to revenue recognition, and executed external confirmation procedures on a sampling basis;

(5) Selected samples of revenue recognized before and after the balance sheet date to evaluate whether the revenue was recognized in the appropriate accounting period by verifying relevant supporting documents.

(II) Disposal of Subsidiaries

1. Description of the matter

For the accounting policy for the disposal of long-term equity investments, please refer to"14. Long-term Equity Investments'' in ''III. Significant Accounting Policies and Accounting Estimates'' of notes to the financial statements. In 2025, Goertek disposed the equity of three subsidiaries: namely Goertek Optical Technology Co., Ltd., Qingdao Goerpixel Technology Co., Ltd., and Xi'an Goerpixel Technology Co., Ltd., respectively, resulting in a total disposal gain of RMB 2,132.6263 million. This includes: a loss of RMB 7.5729 million recognized from the disposal of equity, and a remeasurement gain of RMB 2,140.1992 million due to the remaining equity remeasured at fair value after losing control.

Due to the critical accounting judgments involved in equity disposal transactions regarding the assessment of control transfer, the nature of transaction, the fairness of transaction price, and disclosure of the disposal transactions, and the significant impact of the related investment income on the financial statements, we have identified the disposal of subsidiary equity transactions as a key audit matter.

2. Audit procedures

We performed the following audit procedures for the disposal transaction of subsidiary equity:

(1) Understood, evaluated, and tested the design and the effectiveness of the internal control related to equity dis

(2) Understood the reasons for the equity disposal transactions, and obtained relevant supporting documentation for the disposal of long-term equity investments, analyzed the rationality of the equity disposal transaction, and evaluated whether the measurement method for the remaining equity after disposal was appropriate;

(3) Reviewed agreements for equity disposal transactions, such as board resolutions, shareholder meeting resolutions, announcement documents, handover procedures, etc.and verified whether the relevant decision-making procedures were appropriate and whether the transactions had commercial substance;

(4) Evaluated the capability, professionalism and objectivity of external valuers engaged by the management, obtained and reviewed the valuation results of the external valuers, assessed whether the valuation models, assumptions, and key parameters used were appropriate to evaluate whether the transaction price was fair;

(5) Performed analysis and recalculation procedures to verify the accuracy of the accounting treatment related to equity disposa transactions;

(6) Reviewed the adequacy and appropriateness of the disclosure of the equity disposal transactions in the financial statements.

IV. Other Information

The Management of Goertek Inc. (the Management) is responsible for Other Information. Other Information includes information covered in the 2025 Annual Report of Goertek Inc. but excludes financial statements and auditor's reports.

Our auditor's opinions on financial statements do not cover Other Information. We also do not express any kind of verification conclusion on Other Information.

In combination with our audit of the financial statements, we're obliged to read the Other Information. In the process, we consider whether the Other Information is materially inconsistent with the financial statements or the information we learned during the audit, or whether there is a material misstatement.

Based on the work that we have already done, if we determine that the Other Information contains material misstatements, we should report the fact. In this regard, we have nothing to report.

V. Responsibilities of Management and Governance for the Financial Statements

The Management of Goertek Inc. is responsible for the preparation and fair presentation of the financial statements in accordance with the Accounting Standards for Business Enterprises, and for the design, implementation and maintenance of such internal control necessary to ensure that the financial statements are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, Management is responsible for assessing the ability of Goertek Inc. to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management intends to liquidate Goertek Inc. or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the financial reporting process of Goertek Inc.

VI. Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users made on the basis of these financial statements.

As part of an audit in accordance with the Auditing Standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the financial statements due to fraud or error, design and perform audit procedures to address those risks, and obtain audit evidence that is sufficient and appropriate as the basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit to design appropriate audit procedures.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

4. Conclude on the appropriateness of Management's use of the going concern basis of accounting. And, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on Goertek Inc.'s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to express a modified opinion. Our conclusions are based on the information obtained up to the date of our auditor's report. However, future events or conditions may cause Goertek Inc. to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements fairly represent the underlying transactions and events.

6. Obtain sufficient and appropriate audit evidence on the financial information of entities or business activities within Goertek Inc. to express an opinion on the financial statements. We are responsible for the instruction, supervision and execution of the Group's audit, and assume full responsibility for the auditor's opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence and communicate with them all relationships and other matters that may reasonably be thought to affect our independence and, where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Beijing China

Certified Public Accountant in China

Zhang Shuli

II. Financial Statements

The currency in the notes to the financial statements is: RMB

1. Consolidated balance sheet

Prepared by: Goertek Inc.

December 31, 2025

Legal representative: Jiang Bin Principal in charge of accounting: Li Yongzhi Head of the accounting department: Li Yongzhi

2. Parent company balance sheet

3. Consolidated income statement

Unit: RMB

In case of combination of enterprises under common control during current period, the net profit before combination realized by acquiree is RMB 0.00. The net profit realized by the acquiree in the previous period is RMB 0.00.

Legal representative: Jiang Bin Principal in charge of accounting: Li Yongzhi Head of the accounting department: Li Yongzhi

4. Parent company income statement

Unit: RMB

5. Consolidated statement of cash flow

Unit: RMB

6. Parent company cash flow statement

Unit: RMB

7. Consolidated statement of changes in shareholders' equity

Amount of current period

Unit: RMB