Nanjing Putian Telecommunications Co., Ltd.

Semi-Annual Report 2026

[August 2026]

Section I Important Notes, Contents and Interpretations

The Board of Directors, directors and senior management of the Company warrant that the content of this semi-annual report is true, accurate and complete, and that there are no false representations, misleading statements or material omissions, and they accept individual and joint legal liabilities accordingly.

Shen Xiaobing, the person in charge of the Company, Zhang Jie, the person in charge of accounting work, and Zhang Jingxia, the person in charge of the accounting department (accounting supervisor), declare that they warrant the truthfulness, accuracy and completeness of the financial report in this semi-annual report.

All directors have attended the board meeting at which this semi-annual report was considered and approved.

Any forward-looking statements in this semi-annual report, such as those concerning future plans, do not constitute substantive commitments by the Company to investors. Investors and relevant parties shall maintain sufficient awareness of the associated risks and understand the differences between plans, forecasts and commitments.

The Company has analyzed risk factors that may adversely affect the realization of its future development strategies and operating objectives in "Section III Management Discussion and Analysis" of this report. Investors are advised to refer to that section.

The Company plans not to distribute cash dividends, not to issue bonus shares, and not to capitalize capital reserves into share capital.

Table of Contents

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

Section II Company Profile and Main Financial Indicators....6

Section III Management's Discussion and Analysis....9

Section IV Corporate Governance, Environmental and Social Responsibility....20

Section V Important Matters....22

Section VI Changes in Shares and Shareholder Information....89

Section VII Matters Relating to Bonds....95

Section VIII Financial Report....96

Contents of Documents for Future Reference

(I) Financial statements containing the signatures and seals of the person in charge of the Company, the person in charge of accounting work and the person in charge of the accounting institution (accounting supervisor).

(II) The originals of all Company documents publicly disclosed during the reporting period and the manuscripts of announcements.

Interpretations

Section II Company Profile and Main Financial Indicators

I. Company Profile

II. Contact Person and Contact Information

III. Other Information

1. Company Contact Information

Whether the Company's registered address, office address and postal code, website, email address, etc. changed during the reporting period

☑Applicable □ Not Applicable

2. Information Disclosure and Location for Inspection

Whether the information disclosure and location for inspection changed during the reporting period

□Applicable ☑Not applicable

The website and media name and URL designated by the stock exchange for the Company's disclosure of the semi-annual report, and the location where the Company's semi-annual report is kept for inspection, did not change during the reporting period. For details, please refer to the 2025 annual report.

3. Other Relevant Information

Whether other relevant information changed during the reporting period

□Applicable ☑Not applicable

IV. Major Accounting Data and Financial Indicators

Whether the Company is required to make retrospective adjustments or restate prior-year accounting data □Yes ☑ No

V. Differences in Accounting Data under Domestic and Overseas Accounting Standards

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

□Applicable ☑Not applicable

There is no difference in net profit and net assets between the financial reports disclosed in accordance with International Accounting Standards and Chinese Accounting Standards during the reporting period.

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

□Applicable ☑Not applicable

There is no difference in net profit and net assets between the financial reports disclosed in accordance with overseas accounting standards and Chinese Accounting Standards during the reporting period

VI. Non-Recurring Gains and Losses Items and Amounts

☑Applicable □ Not Applicable

Unit: RMB

Specific information of other profit and loss items conforming to the definition of non-recurring profit and loss:

☑Applicable □ Not Applicable

In 2025, the Company liquidated and deregistered its associate company Nanjing Puzhu Optical Network Co., Ltd. and completed the industrial and commercial deregistration procedures. In February 2026, the Company completed the closure of the associate company's bank account, and interest income of RMB 13,074.70 was carried forward upon account closure.

Explanation on the situation where the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information Disclosure by Companies Of ering Securities to the Public - Non-recurring Profit and Loss are defined as recurring profit and loss items:

□Applicable ☑Not applicable

The Company does not have any situation where the non-recurring profit and loss items listed in the Explanatory Announcement No.1 on Information Disclosure by Companies Ofering Securities to the Public - Non-recurring Profit and Loss are defined a recurring profit and loss items.

Section III Management's Discussion and Analysis

I. Principal Business Activities of the Company during the Reporting Period

1. Main Business of the Company

As one of the important product and solution providers in China's information and communication industry, the Company has always adhered to the "Product + Solutions + Service" strategy, and continuously accelerated product innovation, industrial structure adjustment, transformation and upgrading. The Company actively integrates into the cyberspace and information technology industry segment of CETC, focusing on communication network basic products and multimedia communication products and solutions, while continuously strengthening its capabilities in smart lighting products, precision manufacturing and other businesses. The communication network basic business focuses on the development of intelligent cabling, data center rooms, MPO high-density multi-fiber optical fiber connectors and other products, striving to become a mainstream brand in high-reliability system structured cabling applications; the multimedia communication products and solutions business focuses on continuous R&D investment and intelligent application innovation in the multimedia communication field, with its business positioning gradually transitioning to "intelligent conferencing" to enable the Company to seize development opportunities in the intelligent industry; the smart lighting products business focuses on the development of IoT smart lighting systems, solar and grid-power controllers and other products; the precision manufacturing business focuses on promoting the comprehensive upgrade of manufacturing equipment and process technology to gradually enhance precision manufacturing capabilities.

The main businesses of the Company and its subsidiaries cover fields such as intelligent conference, intelligent cabling, and smart lighting, mainly including multimedia communication and application solutions, building intelligence integrated solutions, IoT solar energy and mains power street lamp control systems, etc. The products mainly serve customers in large central SOEs, government, finance, electric power, medical and other industries.

Subsidiary Nanfang Telecommunications mainly provides multimedia communication and application solutions for large and medium-sized industry customers in central SOEs, government, finance, medical and other fields. Subsidiary Putian Telege mainly provides customers with mid-to-high-end integrated cabling and building intelligence system solutions. Subsidiary Putian Datang mainly provides customers with mains power, solar street lamp controllers and IoT smart street lamp management and control solutions.

The Company mainly obtains business opportunities by participating in project bidding. It designs solutions according to project requirements, produces or purchases equipment required by customers, and is responsible for installation, commissioning and system integration, realizing profits by deducting costs from the contract price. The Company's operating performance is mainly affected by factors such as capital expenditure, information investment and bidding results of customers in central SOEs, government, finance and other industries, as well as fluctuations in raw material prices and changes in other costs.

2. Development of Main Business

In the first half of 2026, the Company, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, comprehensively implemented all decisions and arrangements of the Party Leadership Group of China Electronics Technology Group Corporation (CETC) and the Party Committee of CETC Guorui. Overcoming many unfavorable factors such as complex and changing external environment and continuous rise in raw material costs, we seized the development opportunity of domestic industrial digitization and intelligent transformation and upgrading, focused on core businesses such as intelligent cabling, intelligent conferences, and data center computer room systems, promoted technological innovation and market development, continuously consolidated the foundation of operations, activated development momentum, and maintained a stable overall business quality and efficiency.

During the reporting period, the Company achieved operating revenue of RMB 299.07 million, a year-on-year decrease of 2.36%; net profit attributable to shareholders of the listed Company was -RMB 6.56 million, representing a year-on-year reduction in losses of 8.35%.

(1) Coordinating Internal and External Synergies to Build New Advantages in Market Development

During the reporting period, the Company took precise deployment, technological breakthroughs, and internal and external coordination as core approaches to comprehensively consolidate the foundation of its business development. Focusing on the intelligent cabling, intelligent conferencing, and smart lighting businesses, the Company leveraged its mature product systems, professional supporting services, and customized and differentiated solutions to continuously optimize the quality and efficiency of project implementation and consolidate its core market share.

In the intelligent cabling business, the Company made in-depth arrangements for domestic substitution in sectors such as government affairs, healthcare, intelligent manufacturing, computing power, finance, and airports. It completed the signing of its first airport main terminal building project — the Xiaoshan International Airport project

— and continued to supply comprehensive cabling projects including the information construction project for the Shanghai-Hefei dual bases of an industry-leading enterprise, the Inner Mongolia International Conference Center, and the second phase of the new campus of the Civil Aviation University of China. Meanwhile, substantial progress was made in overseas markets, with the supply and delivery of multiple overseas projects achieved through partner channels.

In the intelligent conferencing business, on the one hand, the Company continued to secure new‑ build and renewal services for video‑ conferencing projects of leading financial‑ industry clients,implementing multimedia integration projects for multiple state-owned banks such as the Agricultural Bank of China and the Postal Savings Bank of China. On the other hand, it successfully won bids for key projects such as energy digitalization framework agreements for China Oil & Gas Pipeline Network Corporation (PipeChina), China Petroleum & Chemical Corporation (Sinopec), and China National Offshore Oil Corporation (CNOOC), as well as government conference renovation projects, achieving incremental breakthroughs in the core energy, government, and enterprise sectors. In addition, the Company launched new professional and high-end products, including the "Huicheng" immersive telepresence high-end conference system and the "Ruiling" new-generation information technology application innovation-based high-end video conferencing system. The full range of self-developed products has been applied in more than ten industry scenarios, with the competitiveness of core products continuously enhanced.

In the smart lighting business, the Company deepened its presence in professional markets such as smart lighting, smart light poles, and photovoltaic controllers, focusing on serving telecom operators, governments, and large EMC (Energy Management Contract) clients, and continued to implement municipal energy-saving projects in Huairou (Beijing), Nantong, and Longzhou (Guangxi)

(2) Deepening Self-Developed Innovation to Cultivate New Momentum for Enterprise Development

In the first half of the year, the Company regarded scientific and technological innovation as a key engine for improving overall profitability and enhancing core competitiveness. It coordinated all business units to increase research and development efforts toward professional, high-end, and intelligent products, achieving phased results in qualification review, technological breakthroughs, product iteration, and project implementation.

Intelligent cabling products successfully passed system audits including the Energy Management System (GB/T23331), Product Carbon Footprint Certification (ISO14067), and Greenhouse Gas Verification Certification (ISO14064), and completed the acceptance of the provincial enterprise technology center. Intelligent conferencing products continued to deepen self-developed innovation. The full range of Ruijing products completed the upgrade of the RK3588 hardware platform, incorporating AI large model hardware acceleration capabilities and integrating AI agent and RAG technologies, enabling the implementation of smart functions such as venue spatial awareness, unified scheduling of conference resources, intelligent minutes generation, and digital intelligent operations and maintenance. Smart lighting products deeply participated in the formulation of the national standard for Single-Lamp Controllers, achieving a transformation and upgrade from product output to standard leadership. The Company developed multi-dimensional solutions including intelligent LED energy-storage street lights, smart light poles, and PV-storage integrated lighting, laying a solid technical and industrial foundation for deep participation in new-type smart city construction and positioning in the green and low-carbon industry track.

(3) Deepening Internal Management and Control to Activate New Momentum for Company Development

During the reporting period, the company established a lean control system for the entire process and comprehensively implemented cost reduction and efficiency improvement work. Establish a management mechanism of "annual budget breakdown, monthly indicator assessment, and rigid performance linkage", to refine and decompose key financial tasks such as operating indicators, cost control, and financial pressure reduction, and ensure that they are assigned to individuals and assessed on a job basis. Comprehensively strengthen cost control, strictly control redundant expenses, optimize expense structure, and reduce expenses by 9.23 million yuan year-on-year in the first half of the year, a decrease of 14%. Simultaneously consolidating the foundation of procurement management, conducting unified registration, review, and annual evaluation of qualified supplier lists, implementing dynamic supplier management mechanisms, and building a cost control defense line from the source of procurement. Seize the favorable opportunity of overall relocation, coordinate the revitalization of idle stock properties, optimize the layout of office space leasing, and effectively improve operating income and internal management efficiency. We will coordinate and implement comprehensive security and compliance control, steadily promote key tasks such as confidentiality management, network security, safety production, and quality control, comprehensively safeguard the bottom line of enterprise operation security, and ensure the smooth and orderly development of the company's operations.

II. Analysis of Core Competitiveness

1. Marketing Capability

Adhering to a market-oriented business philosophy, the Company has established a mature and comprehensive marketing network, with long-term service for industry customers including central stateowned enterprises, government agencies, finance, power, medical care and internet enterprises, and has accumulated rich industry experience. In addition, the Company has set up offices in Beijing, Xi'an, Shanghai, Chengdu, Wuhan, Shenzhen and other regions, and established local marketing teams consisting of sales, technical and commercial teams, to provide customers with professional and customized in-depth services

2. Product Competitiveness

The Company adheres to an innovation-driven strategy, further strengthens new product R&D, identifies customer needs, provides customers with high-value scenario solutions, and continuously enhances its core competitiveness. The Company has more than 20 years of rich professional technical service experience in the intelligent conference field, attaches great importance to independent R&D capabilities, and its self-developed products have been widely recognized by industry customers including central state-owned enterprises, government agencies, finance and medical care. The Company's intelligent cabling products are positioned in the high-end market, mainly providing customers with high-quality generic cabling and building intelligence system solutions. They have strong competitive advantages in terms of market sales volume and product technical level, and have become a well-known brand for domestic independent product substitution in China. In the field of smart lighting, the Company has long been deeply engaged in the energy-saving controller system, mainly providing customers with advanced IoT-based solar and mains street lamp controllers as well as comprehensive smart street lamp solutions, and has formed a complete system integrating R&D, production and large-scale sales.

3. Brand Influence

The Company is an information and communication enterprise under a central SOE. Nanfang Telecom owns video conferencing product series such as Ruijing and Ruizhi, which enjoy high brand recognition in China; Putian Tianji's structured cabling products are a Jiangsu Province Famous Brand Product and a Jiangsu Province Famous Trademark, having won the "Top Ten Structured Cabling Brands" award for 21 consecutive years, and have become a renowned brand for domestic substitution; Putian Datang has strong brand influence in the energy-saving control field.

III. Analysis of Main Business

Overview

Please refer to the relevant content under "I. Main Business Engaged by the Company during the Reporting Period."

Year-on-Year Changes in Major Financial Data

Whether the Company's profit composition or profit sources underwent material changes during the reporting period □Applicable ☑Not applicable The Company's profit composition or profit sources did not undergo material changes during the reporting period. Composition of Operating Revenue Unit: RMB

Industries, products or regions accounting for more than 10% of the Company's operating revenue or operating profit ☑Applicable □ Not Applicable

Unit: RMB

Where the statistical scope of the Company's main business data was adjusted during the reporting period, the Company's main business data for the most recent period adjusted according to the scope at the end of the reporting period □Applicable ☑Not applicable

IV. Analysis of Non-Main Business

☑Applicable □ Not Applicable

Unit: RMB

V. Analysis of Assets and Liabilities

1. Major Changes in Asset Composition

Unit: RMB

2. Major Overseas Assets

□Applicable ☑Not applicable

3. Assets and Liabilities Measured at Fair Value

☑Applicable □ Not Applicable

Unit: RMB

Details of Other Changes

Whether there have been material changes in the measurement attributes of the Company's major assets during the reporting period □Yes ☑ No

4. Restrictions on Asset Rights as at the End of the Reporting Period

Except for the assets whose ownership or use rights are restricted as mentioned above, our company will pledge the 56.28% equity of Nanjing Southern Telecom Co., Ltd., corresponding to a capital contribution of 28.534 million yuan, to China Electronics Guorui Group Co., Ltd. for its entrusted finance company to issue loans to our company; Our company will pledge its 40.7% equity in Nanjing Southern Telecom Co., Ltd., corresponding to a capital contribution of 20.6349 million yuan, and its 19.21% equity in Nanjing Putian Tianji Building Intelligence Co., Ltd., corresponding to a capital contribution of 3.842 million yuan, to Industrial and Commercial Bank of China Limited for the company to borrow 70 million yuan from them; Our company will pledge 40% equity of its subsidiary Nanjing Putian Datang Information Electronics Co., Ltd., corresponding to a capital contribution of 4 million yuan, to China Electronics Technology Leasing Co., Ltd. for the purpose of handling financing leasing business with China Electronics Technology Leasing Co., Ltd. The transfer of equity in the above-mentioned subsidiaries is restricted before the release of the pledge.

VI. Analysis of Investments

1. Overview

☑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 Investments

(1) Securities Investments

□Applicable ☑Not applicable

The Company had no securities investments during the reporting period.

(2) Derivatives Investments

□Applicable ☑Not applicable

The Company had no derivatives investments during the reporting period.

5. Use of Proceeds

□Applicable ☑Not applicable

There was no use of proceeds from share offerings by the Company during the Reporting Period.

VII. Sale of Material Assets and Equity

1. Disposal of Major Assets

□Applicable ☑Not applicable

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

2. Disposal of Major Equity Interests

□Applicable ☑Not applicable

VIII. Analysis of Major Holding and Associate Companies

☑Applicable □ Not Applicable

Details of Major Subsidiaries and Participating Companies whose Impact on the Company's Net Profit Exceeds 10%

Unit: RMB

Acquisition and Disposal of Subsidiaries during the Reporting Period

□Applicable ☑Not applicable

Notes on Major Holding and Participating Companies

IX. Structured Entities Controlled by the Company

□Applicable ☑Not applicable

X. Risks Faced by the Company and Countermeasures

1. Market Competition Risks

The communications industry in which the Company operates is a fully competitive industry with a large number of enterprises. At the same time, the current slowdown in national economic growth has further intensified industry competition. Leveraging its long-term operational heritage, the Company has accumulated certain competitive advantages in brand, technology, quality and marketing. If the Company's products fail to adapt to future market changes, it may lose its existing advantages in market competition.

Countermeasures: The Company will continue to consolidate its traditional markets by leveraging its existing advantages, actively develop markets in high-quality sectors such as central SOEs, finance, government, energy and civil aviation, strengthen and expand the social industry market, accelerate industrial transformation and upgrading, and foster strategic emerging industries. The Company will continuously strengthen cost control, steadily consolidate its product manufacturing and technology R&D capabilities, and steadily enhance market competitiveness. At the same time, the Company will monitor market dynamics, stay informed of market information, adjust sales policies in a timely manner, actively respond to market changes, and maintain its market competitiveness.

2. Technology and R&D Risks

The communication industry is characterized by extremely rapid technological development and product upgrading. If the Company's existing products and technology platforms fail to be upgraded and transformed in a timely manner in response to market demand, or if the R&D results are inconsistent with market demand, it will have an adverse impact on the Company's operations.

Countermeasures: The Company will actively track industry technology development trends, vigorously promote technology innovation with a market orientation, optimize product technology through independent R&D to build differentiated competitiveness, and at the same time expand the layout of new product projects, striving to maintain a technology-leading position in the industry.

3. Procurement Cost Risk

As uncertainty in the external environment increases, the price trends and supply stability of the major raw materials used in the Company's daily production (iron, copper, steel plates, optical fiber, etc.) affect the Company's profitability. Although the Company's raw material supply channels are unobstructed and supply is relatively sufficient, the possibility cannot be entirely ruled out that changes in the supply-demand structure of relevant raw materials may lead to supply shortages or fluctuations in price and quality, thereby adversely affecting the product quality, costs and profitability of the Company.

Countermeasures: The Company will strengthen strategic cooperation with core suppliers and explore the establishment of a more resilient supply chain system to address potential supply disruption risks; through various means such as technological process innovation, product structure optimization and deeper customer cooperation, the Company will transfer or mitigate the pressure of rising raw material prices.

4. Cash Flow Strain Risks

The Company's products mainly serve customers in industries such as central SOEs and government sectors. Affected by factors such as long approval processes and long project completion cycles, the sales payment collection cycle is relatively long, resulting in relatively high cash flow pressure.

Countermeasures: The Company adheres to budget management of funds, coordinates a reasonable ratio between fund payments and recoveries to ensure a dynamic balance of cash flow; the Company conducts classified collection of long-aged accounts receivable while strengthening assessment, formulating reward and punishment measures to promote timely recovery of payments, strengthening inventory management and improving inventory liquidity; and obtains working capital financing from financial institutions as needed.

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

Has the Company formulated a market value management system?

□Yes ☑ No

Has the Company disclosed a valuation enhancement plan?

□Yes ☑ No

XII. Implementation of the "Dual Improvement of Quality and Returns" Action Plan

Has the Company disclosed the announcement on the Action Plan for "Dual Improvement of Quality and Returns"? □Yes ☑ No

Section IV Corporate Governance, Environmental and Social

Responsibility

I. Changes in Directors and Senior Management

□Applicable ☑Not applicable

The Company's directors and senior management did not change during the reporting period. For details, please refer to the 2025 annual report.

II. Profit Distribution and Capital Reserve Capitalization for the Current Reporting Period

□Applicable ☑Not applicable

The Company plans not to distribute cash dividends, not to issue bonus shares, and not to capitalize capital reserves into share capital for the half-year period.

III. Implementation of Equity Incentive Plans, Employee Stock Ownership Plans or Other Employee Incentive Measures

□Applicable ☑Not applicable

The Company has no equity incentive plan, employee stock ownership plan, other employee incentive measures or relevant implementation activities during the reporting period.

IV. Environmental Information Disclosure

Whether the listed company and its major subsidiaries are included in the list of enterprises subject to mandatory environmental information disclosure □Yes ☑ No

V. Social Responsibility

Grounded in the communications industry, the Company adheres to independent innovation, continuously promotes its own sustainable development, fulfills its due responsibilities and obligations to stakeholders, and strives to achieve harmonious and win-win development between the enterprise and its employees, society and the environment.

The Company continuously improves and optimizes its governance, earnestly fulfills its information disclosure obligations, ensures shareholders' right to know, right to participate and right to vote on material matters of the Company, and safeguards the legitimate rights and interests of all shareholders.

The Company attaches great importance to quality, environmental and occupational health and safety management, and has obtained GB/T19001-2016/ISO9001:2015 quality management system certification, GB/T24001-2016/ISO14001:2015 environmental management system certification, and GB/T45001-2020/ISO45001:2018 occupational health and safety management system certification, continuously striving to advance environmental protection and sustainable development.

The Company strictly abides by the Labor Law, the Labor Contract Law and other laws and regulations, always adheres to the people-oriented core values, attaches great importance to employee value, cares about employees' work, life, health and safety, earnestly protects all rights and interests of employees, enhances the cohesion of the Company, and is committed to realizing the vision of common development between the Company and its employees.

The Company always adheres to the principle of promoting development through responsibility, building brands through responsibility, expanding markets through responsibility, and establishing image through responsibility, dedicating itself to building a responsible enterprise and striving to achieve the harmonious unity of enterprise development and the fulfillment of social responsibility.

Based on the principles of honesty, trustworthiness and lawful operation, the Company actively builds cooperative partnerships with suppliers, customers, banks and other stakeholders, respects the legitimate rights and interests of stakeholders, achieves win-win outcomes between the Company and its stakeholders, and promotes the sustained and steady development of the Company.

To thoroughly study and implement the important instructions of General Secretary Xi Jinping and implement the decisions and arrangements of the Party Central Committee and the SASAC of the State Council on promoting comprehensive rural revitalization, the Company purchases rice and grain through the CETC Mall platform to provide procurement-based assistance and support rural revitalization.

Section V Important Matters

I. Commitments of the Actual Controller, Shareholders, Related Parties, Acquirers and Other Committing Parties of the Company that Were Fully Performed during the Reporting Period and that Remained Overdue and Unfulfilled as of the End of the Reporting Period

☑Applicable □ Not Applicable

II. Non-operational Fund Occupation of the Listed Company by the Controlling Shareholder and Other Related Parties

□Applicable ☑Not applicable

During the Reporting Period, there was no non-operational fund occupation of the Listed Company by the Controlling Shareholder and other Related Parties.

III. Non-compliant External Guarantees

□Applicable ☑Not applicable

The Company had no non-compliant external guarantees during the Reporting Period.

IV. Appointment and Dismissal of Accounting Firms

Whether the half-year financial report has been audited

□Yes ☑ No

The Company's half-year report has not been audited.

V. Board of Directors' Explanation on the "Non-Standard Audit Report" Issued by the Accounting Firm for the Current Reporting Period

□Applicable ☑Not applicable

VI. Board of Directors' Explanation on Matters Related to the Previous Year's "Non-Standard Audit Report"

□Applicable ☑Not applicable

VII. Bankruptcy Reorganization Matters

□Applicable ☑Not applicable

No matters relating to bankruptcy reorganization occurred to the Company during the Reporting Period.

VIII. Litigation Matters

Material litigation and arbitration matters

□Applicable ☑Not applicable

The Company had no material litigation or arbitration matters during the reporting period.

Other litigation matters

☑Applicable □ Not Applicable

IX. Penalties and Rectifications

□Applicable ☑Not applicable

There were no penalties and rectification matters for the Company during the Reporting Period.

X. Integrity Status of the Company, Its Controlling Shareholder and Actual Controller

□Applicable ☑Not applicable

XI. Material Related Party Transactions

1. Related Party Transactions in the Ordinary Course of Business

☑Applicable □ Not Applicable

2. Related Party Transactions Arising from the Acquisition or Sale of Assets or Equity

□Applicable ☑Not applicable

No related party transactions arising from the acquisition or sale of assets or equity occurred to the Company during the Reporting Period.

3. Related Party Transactions of Joint External Investment

□Applicable ☑Not applicable

No related party transactions ofjoint external investment occurred to the Company during the Reporting Period.

4. Related Party Credits and Debts

☑Applicable □ Not Applicable

Whether There Are Non-operational Related Party Credits and Debts

□Yes ☑ No

There were no non-operational related party credits and debts of the Company during the Reporting Period.

5. Transactions with Related Finance Companies

☑Applicable □ Not Applicable

Deposit Business

Loan Business

6. Transactions between the Company's Controlled Finance Company and Related Parties

□Applicable ☑Not applicable

There are no deposit, loan, credit line or other financial businesses between the Company's controlled finance company and related parties.

7. Other Material Related Party Transactions

□Applicable ☑Not applicable

The Company had no other material related party transactions during the Reporting Period.

XII. Material Contracts and Performance Thereof

1. Custody, Contracting and Leasing Matters

(1) Custody Matters

□Applicable ☑Not applicable

There were no custody matters for the Company during the Reporting Period.

(2) Contracting Matters

□Applicable ☑Not applicable

There were no contracting matters for the Company during the Reporting Period.

(3) Leasing Matters

☑Applicable □ Not Applicable

Explanation of Leasing Matters

During the reporting period, the Company and its subsidiaries incurred leasing expenses of RMB 507,500 and leasing income of RMB 3.8589 million.

Items with Profit and Loss Accounting for More than 10% of the Company's Total Profit in the Reporting Period

☑Applicable □ Not Applicable

2. Material Guarantees

□Applicable ☑Not applicable

There were no material guarantees for the Company during the Reporting Period.

3. Entrusted Wealth Management

□Applicable ☑Not applicable

There was no entrusted wealth management for the Company during the Reporting Period.

4. Other Material Contracts

□Applicable ☑Not applicable

There were no other material contracts for the Company during the Reporting Period.

XIII. Record of Research, Communication and Interview Activities during the Reporting Period

☑Applicable □ Not Applicable

XIV. Description of Other Material Matters

☑Applicable □ Not Applicable

XV. Material Matters of the Company's Subsidiaries

☑Applicable □Not applicable

On March 20, 2026, the company disclosed the "Announcement on the Change of Address of its Holding Subsidiary" (Announcement No. 2026-006), and its holding subsidiary Nanjing Southern Telecommunications Co., Ltd. completed the change of address.

Section VI Changes in Shares and Shareholder Information

I. Changes in Shares

1. Changes in Share Capital

Unit: shares

Reasons for Changes in Shares

□Applicable ☑Not applicable

Approval of Changes in Shares

□Applicable ☑Not applicable

Transfer of Changes in Shares

□Applicable ☑Not applicable

Implementation Progress of Share Repurchase

□Applicable ☑Not applicable

Implementation Progress of Reducing Repurchased Shares through Centralized Competitive Bidding

□Applicable ☑Not applicable

Impact of Changes in Share Capital on Financial Indicators including Basic Earnings Per Share, Diluted Earnings Per Share, and Net Assets Per Share Attributable to the Company's Ordinary Shareholders for the Most Recent Fiscal Year and the Most Recent Interim Period

□Applicable ☑Not applicable

Other Contents that the Company Deems Necessary to Disclose or as Required by the Securities Regulatory Authority □Applicable ☑Not applicable

2. Changes in Restricted Shares

□Applicable ☑Not applicable

II. Securities Issuance and Listing

□Applicable ☑Not applicable

III. Number of Shareholders and Shareholding Information

Unit: shares

Information on Share Lending through Securities Refinancing by Shareholders Holding More than 5% of Shares, Top 10 Shareholders, and Top 10 Shareholders of Unrestricted Tradable Shares

□Applicable ☑Not applicable

Changes in the Top 10 Shareholders and Top 10 Shareholders of Unrestricted Tradable Shares Compared with the Previous Period Due to Lending/Return of Shares through Securities Refinancing

□Applicable ☑Not applicable

Whether the Top 10 Common Shareholders and the Top 10 Unrestricted Common Shareholders of the Company Conducted Collateralized Repurchase Transactions during the Reporting Period

□Yes ☑ No

The top 10 common shareholders and the top 10 unrestricted common shareholders of the Company did not conduct collateralized repurchase transactions during the Reporting Period.

IV. Changes in Shareholdings of Directors and Senior Management

□Applicable ☑Not applicable

The shareholdings of the Company's directors and senior management did not change during the reporting period. For details, please refer to the 2025 annual report.

V. Changes in Controlling Shareholder or Actual Controller

If the Company has previously disclosed that the actual controller is planning a change of control that has not yet been completed, please describe the progress of the change of control.

□Applicable ☑Not applicable

Change in Controlling Shareholder during the Reporting Period

□Applicable ☑Not applicable

The Company's controlling shareholder did not change during the reporting period.

Change in Actual Controller during the Reporting Period

□Applicable ☑Not applicable

The Company's actual controller did not change during the reporting period.

VI. Preferred Share Related Matters

□Applicable ☑Not applicable

There were no preference shares of the Company during the Reporting Period.

Section VII Matters Relating to Bonds

□Applicable ☑Not applicable

Section VIII Financial Report

I. Audit Report

Whether the semi-annual report has been audited

□Yes ☑ No

The Company's half-year financial report has not been audited.

II. Financial Statements

The unit of measurement in the financial statement notes is: RMB

1、Consolidated balance sheet

Preparation unit：Nanjing Putian Telecommunications Co., Ltd.

2026/6/30

Unit：RMB

Legal Representative: Shen Xiaobing Accounting Director: Zhang Jie Accounting Manager:Zhang Jingxia

2、Parent Company Balance Sheet

Unit：RMB

3、Consolidated Income Statement

Unit：RMB

4、Parent company income statement

Unit：RMB

5、Consolidated statement of cash flow

Unit：RMB

6、Statement of cash flow of Parent Co.

Unit：RMB

7、Consolidated statement of change of equity

Unit：RMB

8、Consolidated statement of change of equity of Parent Co. Unit：RMB

I. Company Overview

1、 Company registration address, organizational structure, and headquarters address

Nanjing Putian Communication Co., Ltd. (hereinafter referred to as the Company) originated from the Nanjing Communication Equipment Factory under the Ministry of Posts and Telecommunications. On March 21,1997, the State Economic System Reform Commission approved its establishment as a joint-stock company through a public offering, as documented in Document No.28 [1997]. The Company was registered with the Nanjing Administration for Industry and Commerce on May 18,1997, with its headquarters located in Nanjing,

Jiangsu Province. It holds a business license with the Unified Social Credit Code 91320000134878054G, a registered capital of RMB 215,000,000.00, and a total of 215,000,000 shares (each with a par value of RMB 1). This includes 115,000,000 state-owned legal person shares and 100,000,000 B-shares. The Company's shares were listed for trading on the Shenzhen Stock Exchange on May 22,1997.

2、 The main business activities actually engaged in by the company

Our company operates in the telecommunications equipment manufacturing sector. Our primary business activities include: research, development, manufacturing, processing, and sales of data communication, wired and wireless communication products, distribution and wiring communication products, electronic products, multimedia computers, digital television systems, automotive electronics, and high/low-voltage electrical switchgear; development, production, and distribution of new energy vehicle charging solutions and components (including EV chargers, charging modules, charging station systems, modular charging cabinets, outdoor integrated charging stations, AC/DC charging piles, and related accessories); design and provision of comprehensive new energy charging/discharging solutions; operation and maintenance of EV charging infrastructure; development and sales of software and intelligent software platforms; IT services for smart city and elderly care applications; R&D, manufacturing, sales, installation, and technical support for video equipment and video conferencing systems; agency sales of communication-modified vehicles (excluding wholesale) with corresponding after-sales services; design, system integration, and consulting services for communication networks and computer information systems; design, construction, installation, and maintenance of intelligent building systems; and leasing of owned assets such as properties and equipment.

3、 Approval and issuance of financial reports

This financial statement has been approved by the Company's Board of Directors on August 15,2026, for public release.

II. Basis for Preparing Financial Statements

1. Preparation Basis

The financial statements of our company are prepared on a going concern basis, based on actual transactions and events, in accordance with the Accounting Standards for Business Enterprises – Basic Standards issued by the Ministry of Finance, various specific accounting standards, the Application Guidelines for Accounting Standards for Business Enterprises, the Interpretations of Accounting Standards for Business Enterprises, and other relevant regulations (collectively referred to as the "Accounting Standards for Business Enterprises"), as well as the provisions of the China Securities Regulatory Commission's Rules for the Preparation and Reporting of Information Disclosure by Companies Issuing Securities Publicly No.15 – General Provisions for Financial Reports (2023 Revision).

In accordance with the relevant provisions of the Enterprise Accounting Standards, the Company's accounting practices are based on the accrual basis. With the exception of certain financial instruments, all financial statements are measured at historical cost. Where asset impairment occurs, corresponding impairment provisions are recognized in accordance with applicable regulations.

2. Continuing Operations

This financial statement is prepared on a going concern basis, and the Company has maintained its ability to continue as a going concern for at least 12 months from the end of the reporting period.

III. Key Accounting Policies and Accounting Estimates

The Company and its subsidiaries operate in the telecommunications equipment manufacturing industry. In accordance with the actual characteristics of their production and operations and the relevant accounting standards, the Company and its subsidiaries have established specific accounting policies and estimates for various transactions and events, as detailed below.

1. Statement of Compliance with Enterprise Accounting Standards

The financial statements prepared by the Company comply with the Accounting Standards for Business Enterprises, and present fairly and completely the consolidated and parent company financial position of the Company as at 30 June 2026, as well as the consolidated and parent company operating results and consolidated and parent company cash flows for the six months ended 30 June 2026.

2. Accounting Period

The Company's accounting periods are divided into annual and interim periods, with the interim period referring to a reporting period shorter than a full fiscal year. The Company adopts the Gregorian calendar year for its fiscal year, which runs from January 1 to December 31 each year.

3. Business Cycle

The company adopts a 12-month period as its operating cycle and uses it as the criterion for classifying the liquidity of its assets and liabilities.

4. Bookkeeping Currency

The Renminbi (RMB) serves as the currency used in the primary economic environment in which the Company and its domestic subsidiaries operate, and both the Company and its domestic subsidiaries adopt the RMB as their accounting currency. The currency employed by the Company in preparing these financial statements is the Renminbi.

5. Accounting treatment methods for business combinations under common control and outside common control

A business combination refers to a transaction or event in which two or more separate entities merge to form a single reporting entity. Business combinations are classified into combinations under common control and combinations not under common control.

(1) Business combinations under common control

Enterprises participating in a merger are both subject to the ultimate control of the same party or the same multiple parties before and after the merger, and such control is not temporary; thus, it constitutes a merger under common control. In a merger under common control, the party that obtains control of the other participating enterprises on the merger date is the merging party, while the other participating enterprises are the merged parties. The merger date refers to the actual date on which the merging party obtains control of the merged parties.

The assets and liabilities acquired by the enterprise in a business combination are measured at the carrying values of the acquired entity's assets and liabilities (including goodwill formed by the ultimate controlling party's acquisition of the acquired entity) as presented in the ultimate controlling party's consolidated financial statements on the combination date. The difference between the carrying value of the acquired net assets and the carrying value of the consideration paid for the combination (or the total par value of the issued shares) shall be adjusted against the share capital premium in the capital reserve; if the share capital premium in the capital reserve is insufficient to cover the reduction, the retained earnings shall be adjusted accordingly.

The direct costs incurred by the merging party in carrying out the business combination shall be recognized in profit or loss of the current period at the time of occurrence.

(2) Business combinations under different controls

A business combination is classified as a non-same-control combination if the participating enterprises are not ultimately controlled by the same party or the same group of parties before and after the combination. In a non-same-control combination, the party that obtains control of the other participating enterprises on the acquisition date is the acquirer, while the other participating enterprises are the acquirees. The acquisition date refers to the date when the acquirer actually gains control over the acquirees.

For business combinations under different controls, the combination cost includes: the fair value of assets acquired by the acquirer on the acquisition date to obtain control over the acquiree; liabilities incurred or assumed; equity securities issued; audit fees, legal services, valuation consulting fees, and other administrative expenses incurred during the combination, which are recognized in profit or loss at their occurrence; transaction costs of equity or debt securities issued by the acquirer as consideration for the combination, which are included in the initial recognition amount of such securities; contingent consideration measured at its fair value on the acquisition date and included in the combination cost; and any adjustments to contingent consideration required if new or additional evidence of conditions existing at the acquisition date emerges within 12 months postacquisition, which are reflected in the corresponding adjustment to goodwill. The combination cost incurred by the acquirer and the identifiable net assets acquired in the combination are measured at their fair values on the acquisition date. The difference between the combination cost and the acquirer's share of the fair value of the acquiree's identifiable net assets on the acquisition date is recognized as goodwill. If the combination cost is less than the acquirer's share of the fair value of the acquiree's identifiable net assets, the fair values of all

identifiable assets, liabilities, and contingent liabilities of the acquiree, along with the combination cost itself, are re-examined. Should the re-examined combination cost remain lower than the acquirer's share of the fair value of the acquiree's identifiable net assets, the difference is recognized in profit or loss.

When the purchasing party acquires the deductible temporary differences of the purchased party that were not recognized on the acquisition date due to non-compliance with the recognition criteria for deferred tax assets, if new or additional information obtained within 12 months after the acquisition date indicates that the relevant circumstances existed on the acquisition date and that the economic benefits arising from the deductible temporary differences are expected to materialize, the relevant deferred tax assets shall be recognized while reducing goodwill. If goodwill is insufficient to cover the reduction, the difference shall be recognized in profit or loss for the period. In all other cases, deferred tax assets related to business combinations shall be recognized and recognized in profit or loss for the period.

For business combinations under different controls that are implemented through multiple transactions in stages and classified as "package transactions," accounting treatment shall be conducted in accordance with the descriptions in the preceding paragraphs of this section and Note 3, Section 13, "Long-term Equity Investments." For combinations not classified as "package transactions," separate accounting treatments shall be applied to the individual financial statements and the consolidated financial statements.

In specific financial statements, the initial investment cost of an investment is determined by the sum of the carrying amount of the equity investment held in the acquiree prior to the acquisition date and the additional investment cost incurred on that date. If the equity held in the acquiree prior to the acquisition date involves other comprehensive income, the related other comprehensive income shall be accounted for upon disposal of the investment using the same basis as would be applied when the acquiree directly disposes of its assets or liabilities (i.e., except for the corresponding share of changes resulting from the re-measurement of the defined benefit plan's net liability or net asset under the equity method, the remainder is recognized in current period investment income).

In the consolidated financial statements, equity held in the acquiree prior to the acquisition date shall be remeasured at its fair value on that date, with the difference between the fair value and the carrying amount recognized in current period investment income. Where such equity involves other comprehensive income, the corresponding other comprehensive income shall be accounted for using the same basis as would apply to the acquiree's direct disposal of related assets or liabilities (i.e., except for the corresponding share of changes in the net liability or net asset of the defined benefit plan resulting from its remeasurement under the equity method, the remainder shall be recognized in current period investment income attributable to the acquisition date).

6. Criteria for Control Assessment and Methods for Preparing Consolidated Financial Statements

(1) Criteria for Control Determination

The consolidation scope for financial statements is determined on a control basis. Control is defined as the

Company's possession of authority over the investee, enjoyment of variable returns through participation in the investee's relevant activities, and the ability to influence the amount of such returns through the exercise of such authority. This typically includes investee entities in which the parent company holds more than half of the voting rights, and cases where the Company, although holding less than half of the voting rights, through agreements with other investors of the investee, holds more than half of the voting rights; the Company's authority under its articles of association or agreements to make financial and operational decisions for the investee; its right to appoint or remove a majority of the members of the investee's board of directors; and its control over the majority of voting rights in the investee's board of directors.

(2) Methodology for preparing consolidated financial statements

From the date when the Company obtains actual control over the net assets and operational decisionmaking rights of a subsidiary, it begins to include the subsidiary within its consolidated financial statements; the inclusion ceases upon loss of actual control. For subsidiaries disposed of, the operating results and cash flows prior to the disposal date have been appropriately reflected in the consolidated income statement and consolidated cash flow statement; for subsidiaries disposed of during the current period, no adjustments are made to the opening balances of the consolidated balance sheet. For subsidiaries acquired in business combinations under different controls, their operating results and cash flows after the acquisition date have been properly included in the consolidated income statement and consolidated cash flow statement, with no adjustments required to the opening balances or comparative figures of the consolidated financial statements. For subsidiaries acquired in business combinations under common control, their operating results and cash flows from the beginning of the period prior to the merger to the merger date have been appropriately reflected in the consolidated income statement and consolidated cash flow statement, with corresponding adjustments made to the comparative figures of the consolidated financial statements.

When preparing consolidated financial statements, if the accounting policies or accounting periods used by the subsidiary differ from those of the parent company, the subsidiary's financial statements shall be adjusted in accordance with the parent company's accounting policies and periods. For subsidiaries acquired through business combinations under different controls, their financial statements shall be adjusted based on the fair value of the identifiable net assets on the acquisition date.

All significant intercompany balances, transactions, and unrealized profits are offset when preparing the consolidated financial statements.

The portion of the subsidiary's shareholders' equity and current net profit/loss not attributable to the parent company is separately presented as minority interest and minority interest income under shareholders 'equity and net profit in the consolidated financial statements. The share of the subsidiary's current net profit/loss attributable to minority interests is disclosed under the "minority interest income" item within the net profit line item of the consolidated income statement. If the loss attributable to minority interests exceeds their share of the subsidiary's beginning shareholders' equity, this difference is still recorded as a reduction in minority interest.

When control over an original subsidiary is lost due to the disposal of partial equity investments or other reasons, the remaining equity interests shall be remeasured at their fair value on the date of loss of control. The difference between the consideration received from the equity disposal and the fair value of the remaining equity interests, minus the share of the subsidiary's net assets accumulated continuously from the acquisition date calculated based on the original equity ratio, shall be recognized as investment income for the period of loss of control. Other comprehensive income related to the original equity investment shall be accounted for at the same basis as the direct disposal of the acquired party's assets or liabilities (i.e., all amounts except those arising from changes in the net liability or net assets of the original beneficial plan upon remeasurement) shall be transferred to current investment income. Subsequently, the remaining equity interests shall be measured in accordance with applicable accounting standards such as Accounting Standard for Business Enterprises No.2 – Long-term Equity Investments or Accounting Standard for Business Enterprises No.22 – Recognition and Measurement of Financial Instruments, as detailed in Note 3, Section 13 "Long-term Equity Investments" or Note 3, Section 10 "Financial Instruments."

When a company gradually disposes of its equity investments in subsidiaries through multiple transactions until losing control, it must determine whether each transaction constitutes a package transaction. The terms, conditions, and economic impacts of these individual transactions typically meet one or more of the following criteria, indicating that they should be accounted for as a package transaction: ① The transactions were executed simultaneously or with mutual consideration; ② The transactions collectively achieve a complete commercial outcome; ③ The occurrence of one transaction depends on the occurrence of at least one other transaction; ④ An individual transaction is uneconomical but becomes economical when considered collectively with other transactions. For transactions not constituting a package transaction, each transaction shall be accounted for separately using the principles applicable to "partial disposal of long-term equity investments in subsidiaries without loss of control" or "loss of control over an original subsidiary due to partia equity disposal or other reasons." When the transactions constitute a package transaction, they shall be accounted for as a single transaction involving subsidiary disposal and loss of control. However, any difference between the transaction price at each disposal stage prior to loss of control and the investor's share of the subsidiary's net assets shall be recognized as other comprehensive income in the consolidated financial statements and transferred to the profit or loss at the time of loss of control.

7. Classification of Joint Venture Arrangements and Accounting Treatment for Joint Operations

A joint venture arrangement refers to an arrangement jointly controlled by two or more parties. Based on the rights and obligations it enjoys within such an arrangement, the Company classifies joint venture arrangements into joint operation arrangements and joint venture enterprises. A joint operation arrangement refers to one in which the Company holds the relevant assets and assumes the relevant liabilities; a joint venture enterprise refers to one in which the Company holds only the rights to the net assets of the arrangement.

The Company accounts for its investment in the joint venture using the equity method, in accordance with the accounting policy specified in Note 3, Section 13(2)(ii), "Long-term Equity Investments accounted for under the Equity Method."

As a joint venture partner in the joint operation, the Company recognizes the assets and liabilities solely held or borne by the Company, as well as the jointly held assets and jointly borne liabilities based on the Company's respective shares; recognizes the revenue generated from the sale of the Company's share of the joint operation's output; recognizes the revenue arising from the sale of output under the joint operation based on the Company's share; and recognizes the expenses incurred solely by the Company, as well as the expenses incurred under the joint operation based on the Company's respective shares.

When the Company contributes or sells assets to the joint venture (such assets do not constitute business operations, the same applies hereinafter), or purchases assets from the joint venture, prior to the sale of such assets to a third party, the Company recognizes only the portion of the gains or losses arising from such transaction attributable to the other participating parties in the joint venture. If such assets incur asset impairment losses in accordance with the provisions of Accounting Standard for Business Enterprises No.8 – Asset Impairment, the Company recognizes the full amount of such loss for contributions or sales made by the Company to the joint venture, and recognizes the loss proportionally based on its share for purchases made from the joint venture.

8. Criteria for Determining Cash and Cash Equivalents

The Company's cash and cash equivalents consist of cash on hand, deposits readily available for payment, and investments held by the Company that are short-term (typically maturing within three months from the purchase date), highly liquid, easily convertible into a known amount of cash, and carry minimal value fluctuation risk.

9. Foreign Currency Transactions

(1) Conversion method for foreign currency transactions

Foreign currency transactions conducted by the Company are converted into the local currency amount at the spot exchange rate prevailing on the transaction date upon initial recognition. However, foreign currency exchange operations or transactions involving foreign currency exchange are converted into the local currency amount using the actual exchange rate applied.

(2) Conversion methods for foreign currency monetary items and foreign currency non-monetary items On the balance sheet date, foreign currency monetary items are converted using the spot exchange rate prevailing at that date. The resulting exchange differences shall be recognized in profit or loss of the current period, except for: ① exchange differences arising from foreign currency special borrowings related to the acquisition or construction of assets meeting capitalization criteria, which are treated in accordance with the principle of capitalizing borrowing costs; ② exchange differences arising from changes in the carrying amounts of foreign currency monetary items available for sale (excluding the amortized cost), which are recognized in other comprehensive income.

Non-monetary foreign currency items measured at historical cost are measured in the accounting currency amount converted using the spot exchange rate on the transaction date. Non-monetary foreign currency items measured at fair value are converted using the spot exchange rate on the fair value determination date; the difference between the converted accounting currency amount and the original accounting currency amount is recognized as fair value changes (including exchange rate fluctuations), which are recorded in current period profit or loss or recognized as other comprehensive income.

10. Financial Instruments

A financial asset or financial liability is recognized when the company becomes a party to a financial instrument contract.

(1) Classification, Recognition and Measurement of Financial Assets

Based on its business model for managing financial assets and the contractual cash flow characteristics of these assets, the Company categorizes financial assets into: financial assets measured at amortized cost; financial assets measured at fair value with changes recognized in other comprehensive income; and financial assets measured at fair value with changes recognized in profit or loss.

Financial assets are measured at fair value upon initial recognition. For financial assets measured at fair value with their changes recognized in profit or loss, related transaction costs are directly recognized in profit or loss; for other categories of financial assets, related transaction costs are included in the initial recognition amount. For accounts receivable or notes receivable arising from the sale of products or provision of services that do not contain or involve significant financing components, the Company recognizes the expected amount receivable as the initial recognition amount.

① Financial assets measured at amortized cost

The Company's business model for measuring financial assets at amortized cost is aimed at generating contractual cash flows. The cash flow characteristics of such financial assets align with standard lending arrangements, meaning that cash flows occurring on specific dates consist solely of principal payments and interest calculated on the outstanding principal amount. For these financial assets, the Company applies the effective interest method and subsequently measures them at amortized cost. Any gains or losses arising from amortization or impairment are recognized in profit or loss for the period.

② Financial assets measured at fair value with changes recognized in other comprehensive income

The Company's business model for managing such financial assets combines both the objective of collecting contractual cash flows and the objective of selling them, with the contractual cash flow characteristics of these financial assets aligning with those of the underlying loan arrangements. The Company measures such financial assets at fair value, with their changes recognized in other comprehensive income; however, impairment losses or gains, exchange gains or losses, and interest income calculated using the effective interest method are recognized in profit or loss for the period.

Furthermore, the Company classifies certain non-trading equity instrument investments as financial assets measured at fair value with their changes recognized in other comprehensive income. Dividend income from such financial assets is recognized in current period profit or loss, while fair value changes are recognized in other comprehensive income. Upon derecognition of these financial assets, any cumulative gains or losses previously recognized in other comprehensive income are transferred to retained earnings and are no longer included in current period profit or loss.

③ Financial assets measured at fair value with changes recognized in profit or loss

The Company classifies the aforementioned financial assets measured at amortized cost and those financial assets measured at fair value with their changes recognized in other comprehensive income as financial assets measured at fair value with their changes recognized in current profit or loss. Furthermore, at initial recognition, to eliminate or significantly reduce accounting mismatches, the Company designates certain financial assets as financial assets measured at fair value with their changes recognized in current profit or loss. For such financial assets, the Company subsequently measures them at fair value, with fair value changes recognized in current profit or loss.

(2) Classification, Recognition and Measurement of Financial Liabilities

At initial recognition, financial liabilities are classified into financial liabilities measured at fair value through profit or loss and other financial liabilities. For financial liabilities measured at fair value through profit or loss, related transaction costs are directly recognized in profit or loss; for other financial liabilities, related transaction costs are included in their initial recognition amount.

① Financial liabilities measured at fair value with changes recognized in profit or loss

Financial liabilities measured at fair value with changes recognized in profit or loss include trading financial liabilities (including derivative instruments classified as financial liabilities) and those designated at initial recognition to be measured at fair value with changes recognized in profit or loss.

Subsequent measurement of transactional financial liabilities (including derivatives classified as financial liabilities) adopts fair value; except for portions related to hedge accounting, changes in fair value are recognized in current profit or loss.

Designated as financial liabilities measured at fair value with changes recognized in profit or loss, the fair value changes arising from the Company's own credit risk are recognized in other comprehensive income. Upon derecognition of such liabilities, the cumulative fair value changes attributable to the Company's own credit risk are transferred to retained earnings, while the remaining fair value changes are recognized in profit or loss. If applying this treatment would create or exacerbate accounting mismatches in the profit or loss, the Company

shall recognize all gains or losses on these financial liabilities (including the impact of the Company's own credit risk changes) in profit or loss.

②Other financial liabilities

Other financial liabilities—excluding those arising from financial asset transfers that do not meet the criteria for derecognition or from continued involvement in the transferred financial assets, as well as financial guarantee contracts—are classified as financial liabilities measured at amortized cost. Such liabilities are subsequently measured at amortized cost, and any gains or losses resulting from derecognition or amortization are recognized in profit or loss for the period.

(3) Basis for Recognition and Measurement Methods of Financial Asset Transfers

A financial asset shall be derecognized if any of the following conditions is met: ① The contractual right to receive cash flows from the financial asset has terminated; ② The financial asset has been transferred, with nearly all risks and rewards associated with its ownership transferred to the transferee; ③ The financial asset has been transferred, and although the enterprise has neither transferred nor retained nearly all risks and rewards associated with its ownership, it has relinquished control over the financial asset.

If an enterprise neither transfers nor retains nearly all the risks and rewards associated with the ownership of a financial asset, nor relinquishes its control over that financial asset, then the relevant financial asset shall be recognized based on the extent of its continued involvement with the transferred financial asset, and the corresponding liability shall be recognized accordingly. The extent of continued involvement refers to the level of risk faced by the enterprise due to fluctuations in the value of the financial asset.

When the overall transfer of financial assets meets the conditions for derecognition, the difference between the carrying amount of the transferred financial assets and the consideration received from the transfer, and the cumulative fair value change previously recognized in other comprehensive income, shall be recognized in profit or loss for the period.

When partial transfer of financial assets meets the conditions for derecognition, the carrying amount of the transferred financial assets shall be allocated between the derecognized portion and the remaining portion based on their respective fair values. The difference between the consideration received from the transfer and the cumulative fair value changes originally recognized in other comprehensive income that are allocated to the derecognized portion, minus the allocated carrying amounts, shall be recognized in profit or loss for the period.

For financial assets sold with recourse or transferred by endorsement, the company must determine whether nearly all risks and rewards associated with ownership of the financial asset have been transferred. If nearly all risks and rewards associated with ownership have been transferred to the transferee, the recognition of the financial asset shall be terminated; if nearly all risks and rewards remain retained, the recognition shall not be terminated; if neither transfer nor retention of nearly all risks and rewards has occurred, the company shall continue to assess whether it retains control over the asset and apply the accounting treatment principles

outlined in the preceding paragraphs.

(4) Termination of Recognition of Financial Liabilities

When the current obligation under a financial liability (or a portion thereof) has been discharged, the Company derecognizes that financial liability (or that portion thereof). If the Company (the borrower) enters into an agreement with the lender to replace the original financial liability with a new one, and the contractual terms of the new financial liability are substantially different from those of the original, the Company derecognizes the original financial liability and simultaneously recognizes a new financial liability. If the Company makes substantial modifications to the contractual terms of the original financial liability (or a portion thereof), the Company derecognizes the original financial liability and recognizes a new financial liability under the modified terms.

When financial liabilities (or a portion thereof) are derecognized, the Company recognizes the difference between their carrying amount and the consideration paid (including transferred non-cash assets or assumed liabilities) in profit or loss for the period.

(5) Offsetting of financial assets and financial liabilities

When the Company has a statutory right to offset recognized amounts of financial assets and financial liabilities, and such statutory right is currently enforceable, and the Company plans to settle the financial assets and settle the financial liabilities simultaneously at net value, the financial assets and financial liabilities shall be presented on the balance sheet at their net amount after mutual offset. Otherwise, financial assets and financial liabilities shall be presented separately on the balance sheet without mutual offset.

(6) Methods for determining the fair value of financial assets and financial liabilities

Fair value refers to the price that market participants would receive from selling an asset or pay to transfer a liability in an orderly transaction on the measurement date. Where financial instruments have active markets, the Company determines their fair value using quotes from such markets. Active market quotes are prices readily available periodically from exchanges, brokers, industry associations, and pricing service providers, reflecting actual market transactions conducted in fair dealing. For financial instruments without active markets, the Company employs valuation techniques to determine fair value. These techniques include referencing prices from recent market transactions conducted by knowledgeable and voluntary parties, referencing the current fair values of substantially similar financial instruments, applying the discounted cash flow method, and using option pricing models. In conducting valuations, the Company selects valuation techniques applicable under current circumstances and supported by sufficient available data and information, choosing input values consistent with those considered by market participants in transactions involving the relevant assets or liabilities, with priority given to observable inputs whenever possible. When observable inputs are unavailable or impractical to obtain, non-observable inputs are utilized.

11. Impairment of financial assets

1. Method for determining expected credit losses

The Company applies impairment accounting treatment and recognizes loss provisions for financial assets measured at amortized cost (including receivables), financial assets classified as measured at fair value with changes recognized in other comprehensive income (including receivables financing), and lease receivables, based on expected credit losses.

At each balance sheet date, the Company assesses whether the credit risk of relevant financial instruments has increased significantly since initial recognition. The process of credit impairment for financial instruments is divided into three stages, with distinct accounting treatment applied to impairments at each stage: (1) Stage 1: If the credit risk of a financial instrument has not increased significantly since initial recognition, the Company measures the loss provision based on the expected credit loss over the next 12 months and calculates interest income using its carrying amount (i.e., before impairment provision) and the actual interest rate; (2) Stage 2: If the credit risk has increased significantly since initial recognition but no credit impairment has occurred, the Company measures the loss provision based on the expected credit loss over the entire life of the financial instrument and calculates interest income using its carrying amount and the actual interest rate; (3) Stage 3: If credit impairment occurs after initial recognition, the Company measures the loss provision based on the expected credit loss over the entire life of the financial instrument and calculates interest income using its amortized cost (carrying amount minus the accrued impairment provision) and the actual interest rate.

(1) Method for measuring loss provisions for financial instruments with lower credit risk

For financial instruments with low credit risk at the balance sheet date, the Company may refrain from comparing them with their credit risk at initial recognition and instead directly assume that the credit risk of such instruments has not increased significantly since initial recognition.

If a financial instrument carries low default risk, the debtor demonstrates strong short-term capacity to meet its contractual cash flow obligations, and even adverse economic or operational conditions over an extended period do not necessarily impair the borrower's ability to fulfill these obligations, the instrument is considered to have low credit risk.

(2) Method for measuring loss provisions for accounts receivable and lease receivables

① Receivables without significant financing components. For receivables arising from transactions governed by Accounting Standard for Business Enterprises No.14 – Revenue that do not contain significant financing components, the Company adopts a simplified approach, measuring loss provisions consistently based on expected credit losses over the entire life cycle.

Based on the nature of financial instruments, the Company assesses whether credit risk has increased significantly by evaluating individual financial assets or portfolios thereof. Receivable notes and accounts receivable are categorized into specific portfolios according to their credit risk characteristics, and expected credit losses are calculated on a portfolio basis. The criteria for portfolio determination are as follows: accounts receivable portfolio 1: Portfolio of related parties within the consolidated scope Accounts Receivable Portfolio 2: Age Group Portfolio receivables bill portfolio 1: receivable bank acceptance bills receivables bill portfolio 2: Commercial acceptance bills receivable

For accounts receivable classified as portfolios, the Company refers to historical credit loss experience, combined with the current situation and forecasts for future economic conditions, to prepare a comparison table between the aging of accounts receivable and the expected credit loss rate over their entire life cycle, thereby calculating the expected credit loss. For accounts receivable notes classified as portfolios, the Company also utilizes historical credit loss experience, along with the current situation and forecasts for future economic conditions, to calculate the expected credit loss based on default risk exposure and the expected credit loss rate over their entire life cycle.

Accounts Receivable – Comparison Table of Age Groups and the Expected Credit Loss Rate Over Their Full Life Cycle

② Receivables and lease receivables containing significant financing components.

For receivables involving significant financing components and lease receivables governed by Accounting Standard for Business Enterprises No.21 – Leasing, the Company measures loss provisions using the general method, namely the "three-stage" model.

(3) Methods for measuring loss provisions on other financial assets

For financial assets other than those mentioned above—such as debt investments, other debt investments, other receivables, and long-term receivables excluding lease receivables—the Company measures loss provisions using the general method, namely the "three-stage" model.

When measuring credit impairment on financial instruments, our company considers the following factors to determine whether credit risk has increased significantly:

The Company categorizes other receivables into several portfolios based on the nature of the amounts, and calculates expected credit losses on a portfolio basis. The criteria for portfolio determination are as follows:

Other Receivables Portfolio 1: Portfolio of Related Parties within the Consolidated Scope

Other Receivables Portfolio 2: Financing Margin Portfolio

Other Receivables Portfolio 3: Export Tax Refund Receivables Portfolio

2. Accounting Treatment Method for Expected Credit Losses

To reflect changes in the credit risk of financial instruments after initial recognition, the Company remeasures expected credit losses at each balance sheet date. The resulting increases or reversals in loss provisions shall be recognized as impairment losses or gains in the current period's profit or loss. Depending on the type of financial instrument, these amounts shall either reduce the carrying amount of the financial asset on the balance sheet or be recognized as estimated liabilities or as other comprehensive income (for debt investments measured at fair value with changes recognized in other comprehensive income).

12. Inventory

(1) Classification of Inventory

Inventories refer to the finished goods or commodities held by the Company for sale in its daily operations, work-in-progress items, and materials consumed during production or service delivery. These primarily include raw materials, consumables (such as packaging materials and low-value consumables), materials processed under contract, work-in-progress, self-manufactured semi-finished products, and finished goods (merchandise inventory).

(2) Pricing Method Used for Issuance

When inventory is issued, the actual cost is determined using the weighted average method at the end of the month.

(3) The inventory counting system adopts the perpetual inventory method.

(4) Amortization method for low-value consumables and packaging materials

Low-value consumables are amortized using the straight-line method upon requisition; packaging materials are also amortized using the straight-line method upon requisition.

(3) Criteria for Recognition and Provision Method for Inventory Impairment Losses

On the balance sheet date, inventory is measured at the lower of cost and net realizable value, with impairment provisions calculated for each individual inventory item. For inventories that are numerous and have low unit prices, impairment provisions are calculated based on inventory category.

On the balance sheet date, inventory is measured at the lower of cost and net realizable value, with inventory impairment provisions recognized based on the difference between the cost and net realizable value for each inventory category. For inventory directly intended for sale, its net realizable value is determined during normal operations as the estimated selling price minus estimated selling expenses and relevant taxes. For inventory requiring processing, its net realizable value is determined during normal operations as the estimated selling price of the finished products minus estimated costs, selling expenses, and relevant taxes incurred until completion. On the balance sheet date, for each component of the same inventory that has a contract price and those without a contract price, their respective net realizable values are determined and compared with their corresponding costs to calculate the amount of inventory impairment provisions to be recognized or reversed.

13. Long-term equity investment

The term "long-term equity investments" referred to in this section denotes those in which the Company holds controlling, jointly controlling, or significant influence over the investee entity. Long-term equity investments in which the Company does not hold controlling, jointly controlling, or significant influence are accounted for as financial assets measured at fair value with changes recognized in profit or loss. For nontrading investments, the Company may, at initial recognition, choose to classify them as financial assets measured at fair value with changes recognized in other comprehensive income. The accounting policy is detailed in Note 3, Section 10, "Financial Instruments."

Joint control refers to the Company's shared control over a specific arrangement under relevant agreements, where decisions regarding activities under such arrangement require unanimous consent from all parties sharing control rights. Significant influence means the Company has the authority to participate in decision-making regarding the financial and operational policies of the investee entity, but lacks either sole control or joint control with other parties over the formulation of these policies.

(1) Determination of Investment Costs

For long-term equity investments acquired through business combinations under common control, the initial investment cost shall be determined on the combination date based on the share of the acquirer's equity book value in the ultimate controlling party's consolidated financial statements. The difference between the initial investment cost and the sum of cash payments, transferred non-cash assets, and assumed debt book values shall be allocated to capital reserves; if capital reserves are insufficient, the difference shall be adjusted against retained earnings. Where equity securities are issued as consideration for the combination, the initial investment cost shall be calculated based on the acquirer's equity share in the ultimate controlling party's consolidated financial statements, with the total par value of issued shares recognized as share capital. The

difference between the initial investment cost and the total par value of issued shares shall be allocated to capital reserves; if capital reserves are insufficient, the difference shall be adjusted against retained earnings.

For long-term equity investments acquired through business combinations under different controls, the acquisition cost shall be recognized as the initial investment cost on the acquisition date. The consolidation cost comprises the sum of assets contributed by the acquirer, liabilities incurred or assumed, and the fair value of issued equity securities.

The intermediary fees incurred during business combinations—such as audit services, legal services, valuation consulting, and other related administrative expenses—along with those of the merging entity or purchaser, shall be recognized in profit or loss at the time of occurrence.

For other equity investments other than those arising from business combinations, the initial measurement is made at cost. This cost is determined based on the method of acquisition of the long-term equity investment, using either the actual cash payment made by the Company, the fair value of equity securities issued by the Company, the value specified in the investment contract or agreement, the fair value or original carrying amount of the assets exchanged in non-monetary asset transactions, or the fair value of the long-term equity investment itself. Expenses, taxes, and other necessary expenditures directly related to the acquisition of the long-term equity investment are also included in the investment cost.

(2) Subsequent Measurement and Profit/Loss Recognition Method

Long-term equity investments in investee entities that are jointly controlled (excluding cases where they constitute joint operators) or significantly influenced shall be accounted for using the equity method. Additionally, long-term equity investments in which the company exercises control over the investee entity may be accounted for using the cost method in its financial statements.

① Long-term equity investments accounted for using the cost method

When using the cost method for accounting, long-term equity investments are valued at their initial investment cost, with adjustments made to the cost upon additional investments or investment withdrawals. Excluding cash dividends or profits declared but not yet distributed included in the actual payment or consideration received upon investment acquisition, current investment income is recognized based on the cash dividends or profits declared and distributed by the investee entity.

② Long-term equity investments accounted for using the equity method

When using the equity method for accounting, if the initial investment cost of a long-term equity investment exceeds the investor's share of the fair value of the investee's identifiable net assets at the time of investment, the initial investment cost shall not be adjusted; if the initial investment cost is less than the investor's share of the fair value of the investee's identifiable net assets at the time of investment, the difference shall be recognized in profit or loss for the period, and the cost of the long-term equity investment shall be adjusted accordingly.

When applying the equity method of accounting, investment income and other comprehensive income are recognized separately based on the investor's share of the investee's net profit or loss and other comprehensive income, while simultaneously adjusting the carrying amount of long-term equity investments. The investor's share of profits or cash dividends declared by the investee reduces the carrying amount of long-term equity investments accordingly. For all other changes in the investee's owners 'equity excluding net profit/loss, other comprehensive income, and profit distribution, the carrying amount of long-term equity investments is adjusted and recorded in capital reserves. The recognition of the investor's share of the investee's net profit/loss is based on the fair value of identifiable assets at the time of investment, adjusted against the investee's net profit. Where the investee adopts accounting policies or fiscal periods differing from those of the parent company, the investee's financial statements are adjusted in accordance with the parent company's policies and periods, and investment income ,comprehensive income are determined accordingly. For transactions between the parent company and associates or joint ventures, if the assets disposed of do not constitute business operations, unrealized internal transaction gains or losses are offset by the parent company's share calculated proportionally, upon which investment income and other comprehensive income are recognized. However, unrealized internal transaction losses between the parent company and the investee that constitute impairment losses on transferred assets are not offset.

When recognizing the shareable portion of the net loss incurred by the investee, the recognition shall be limited to the book value of the long-term equity investment and the reduction of other long-term interests that substantially constitute a net investment in the investee to zero. Furthermore, if the Company has an obligation to bear additional losses for the investee, an estimated liability shall be recognized and recorded as an investment loss for the current period. If the investee generates net profit in subsequent periods, the Company shall resume recognizing the share of profit after offsetting the unconfirmed loss-sharing amount against the share of profit.

③ Acquisition of minority equity

When preparing consolidated financial statements, the difference between the newly added long-term equity investment resulting from the acquisition of minority interests and the subsidiary's net asset share calculated based on the new shareholding ratio, which is continuously accrued from the acquisition date (or consolidation date), shall be adjusted against the capital reserve. If the capital reserve is insufficient, the difference shall be offset against retained earnings.

④ Disposal of long-term equity investments

In consolidated financial statements, when the parent company partially disposes of its long-term equity investments in subsidiaries without losing control, the difference between the disposal proceeds and the subsidiary's net assets corresponding to the disposed long-term equity investment is recognized in shareholders equity. If the partial disposal results in the parent company losing control over the subsidiary, the transaction

shall be accounted for in accordance with the relevant accounting policies specified in Note 3, Section 6, Subparagraph (2) of this document, "Method of Preparation of Consolidated Financial Statements."

For the disposal of long-term equity investments under other circumstances, the difference between the carrying value of the disposed equity and the actual consideration received shall be recognized in profit or loss for the period.

For long-term equity investments accounted for using the equity method, if the remaining equity interests after disposal continue to be accounted for using the equity method, the portion of other comprehensive income originally recorded in shareholders 'equity shall be accounted for at the corresponding ratio using the same basis as that applied when the investee directly disposed of related assets or liabilities at the time of disposal. All changes in owners' equity attributable to the investee's owner's equity other than net profit or loss, other comprehensive income, and profit distribution shall be transferred to the current period profit or loss in proportion.

For long-term equity investments accounted for using the cost method, if the remaining equity after disposal continues to be accounted for using the cost method, the other comprehensive income recognized prior to obtaining control over the investee—whether from the equity method or from the financial instruments recognition and measurement standards—shall be accounted for using the same basis as the direct disposal of related assets or liabilities of the investee and transferred proportionally to current period profit or loss; all othe changes in owners 'equity within the investee's net assets recognized under the equity method, excluding net profit or loss, other comprehensive income, and profit distribution, shall also be transferred proportionally to current period profit or loss.

When a company loses control over an investee due to the disposal of a portion of its equity investments, and the remaining equity after disposal can exercise joint control or significant influence over the investee during the preparation of individual financial statements, the equity method shall be applied, with the remaining equity adjusted as if it had been accounted for using the equity method from acquisition. If the remaining equity after disposal cannot exercise joint control or significant influence over the investee, accounting treatment shall comply with the relevant provisions of the Financial Instruments Recognition and Measurement Standards, and the difference between the fair value and book value of the equity at the date of loss of control shall be recognized in profit or loss for the period. For other comprehensive income recognized prior to the company obtaining control over the investee under either the equity method or the Financial Instruments Recognition and Measurement Standards, the accounting treatment shall follow the same basis as the direct disposal of related assets or liabilities by the investee upon loss of control. All changes in owners 'equity attributable to the equity method—excluding net profit/loss, other comprehensive income, and profit distribution—shall be transferred to profit or loss upon loss of control. Specifically: if the remaining equity after disposal is accounted for using the equity method, other comprehensive income and other owners' equity are transferred proportionally; if the

remaining equity is accounted for under the Financial Instruments Recognition and Measurement Standards, both other comprehensive income and other owners' equity are fully transferred.

When a company loses joint control or significant influence over an investee due to the disposal of a portion of its equity investment, the remaining equity interest after disposal shall be accounted for in accordance with the Financial Instruments Recognition and Measurement Standards. The difference between the fair value and the carrying value of the equity interest on the date of loss ofjoint control or significant influence shall be recognized in profit or loss for the period. Other comprehensive income recognized from the original equity investment under the equity method shall be accounted for under the same basis as the direct disposal of related assets or liabilities by the investee upon termination of the equity method. All changes in owners 'equity attributable to the investee's own equity other than net profit or loss, other comprehensive income, and profit distribution shall be fully transferred to investment income for the period upon termination of the equity method.

14. Investment property

Investment property refers to real estate held for the purpose of generating rental income, capital appreciation, or both. This includes leased land use rights, land use rights held with plans for appreciation and subsequent transfer, and leased buildings.

Investment property is initially measured at cost. Subsequent expenditures related to investment property shall be included in the cost of the asset if the economic benefits associated with the asset are likely to flow and the cost can be reliably measured. Other subsequent expenditures shall be recognized in profit or loss at the time they occur.

When an investment property is disposed of, permanently withdrawn from use, and it is expected that no economic benefits will be derived from its disposal, the recognition of such investment property is terminated. The proceeds from the disposal of an investment property—whether through sale, transfer, scrapping, or damage—after deducting its carrying amount and relevant taxes and fees shall be recognized in the current period's profit or loss.

15. Fixed Assets

(1) Conditions for recognizing fixed assets

Fixed assets refer to tangible assets held for the purpose of producing goods, providing services, leasing, or operating and managing, with a useful life exceeding one accounting year. Fixed assets are recognized only when it is probable that the economic benefits associated with them will flow to the company and their costs can be reliably measured. Fixed assets are initially measured at cost, taking into account the impact of estimated disposal costs.

(2) Depreciation methods for various types of fixed assets

For fixed assets, depreciation is calculated using the straight-line method over their service life, starting from the month following the achievement of the intended usable condition. The service life, estimated residual

value, and annual depreciation rate for various types of fixed assets are as follows:

The estimated residual value refers to the amount obtained by the Company from the disposal of an asset after deducting estimated disposal costs, assuming the fixed asset has reached the end of its estimated useful life and is in its expected condition at that point.

(3) Methods for impairment testing of fixed assets and methods for making impairment provisions For details on the impairment testing methods for fixed assets and the impairment provision calculation methods, refer to Note 3, Section 19 "Impairment of Long-term Assets".

(4) Other Notes

Subsequent expenditures related to fixed assets shall be recognized in the cost of the fixed asset if the economic benefits associated with the asset are likely to flow and their costs can be reliably measured, thereby eliminating the carrying amount of the replaced portion. All other subsequent expenditures shall be recognized in profit or loss at the time they occur.

When a fixed asset is being disposed of or is expected to generate no economic benefits through use or disposal, its recognition is terminated. The difference between the disposal proceeds from the sale, transfer, scrapping, or damage of the fixed asset and its carrying amount, after deducting relevant taxes and fees, is recognized in profit or loss for the period.

The Company shall review the service life, estimated net residual value, and depreciation method of fixed assets at least once at the end of each fiscal year. Any changes made shall be treated as adjustments to accounting estimates.

16. Projects under construction

The Company's construction-in-progress projects are categorized into two types: self-construction and contracted construction. Upon completion of the projects and attainment of their intended usable condition, they are recognized as fixed assets. The determination of the intended usable condition shall meet one of the following criteria: (1) The physical construction (including installation) of the fixed asset has been fully completed or substantially completed; (2) The asset has undergone trial production or trial operation, with results demonstrating its ability to operate normally or produce qualified products stably; or (3) The trial operation results indicate its capability for normal operation or business activities; (4) Expenditures on the fixed asset under construction are minimal or virtually non-existent; or (5) The acquired fixed asset meets the design or contractual requirements, or is substantially consistent with such requirements.

When the construction-in-progress reaches its intended usable condition, it is transferred to fixed assets at the project's actual cost. For projects that have reached the intended usable condition but have not yet completed final accounting, they are initially recorded as fixed assets at estimated value; the original provisional estimate is adjusted to reflect the actual cost after final accounting is completed, while previously accrued depreciation remains unchanged.

For details on the impairment testing methodology and impairment provision calculation method for construction in progress, refer to Note 3, Section 19 "Impairment of Long-term Assets."

17. Loan costs

Loan costs comprise borrowing interest, amortization of discounts or premiums, ancillary expenses, and exchange differences arising from foreign currency borrowings. Loan costs directly attributable to the acquisition, construction, or production of assets meeting capitalization criteria shall be capitalized when asset expenditures have been incurred, borrowing costs have been recognized, and the necessary acquisition, construction, or production activities to bring the asset to its intended usable or saleable state have commenced; capitalization shall cease when such assets reach their intended usable or saleable state. Other borrowing costs are recognized as expenses in the period in which they are incurred.

For special loans, the actual interest expenses incurred during the period shall be capitalized after deducting the interest income generated from depositing unused loan funds in banks or the investment returns obtained from temporary investments. For general loans, the capitalizable amount is determined by multiplying the weighted average of cumulative asset expenditures exceeding those of special loans by the capitalization rate applicable to the utilized general loans. The capitalization rate is calculated based on the weighted average interest rate of general loans.

During the capitalization period, all exchange differences on foreign currency special loans are capitalized; exchange differences on foreign currency general loans are recognized in profit or loss for the period.

Assets meeting capitalization criteria refer to fixed assets, investment properties, and inventories that require a considerable period of acquisition, construction, or operational activities to reach their intended usable or saleable state.

If an asset meeting capitalization criteria experiences an abnormal interruption during its acquisition, construction, or production process, and the interruption lasts continuously for more than three months, the capitalization of borrowing costs shall be suspended until the asset's acquisition, construction, or production activities resume.

Assets meeting capitalization criteria refer to fixed assets, investment properties, and inventories that require a considerable period of acquisition, construction, or operational activities to reach their intended usable or saleable state.

18. Intangible Assets

(1) Intangible Assets

Intangible assets refer to identifiable non-monetary assets owned or controlled by the Company that lack physical form.

Intangible assets are initially measured at cost. Expenditures related to intangible assets are recognized in the cost of the intangible assets if the associated economic benefits are likely to flow to the company and their costs can be reliably measured. Expenditures on other items are recognized in profit or loss at the time they occur.

The acquired land use rights are typically accounted for as intangible assets. When a company independently develops and constructs buildings such as factory facilities, the related land use right expenditures and building construction costs are accounted for separately as intangible assets and fixed assets, respectively. For purchased buildings and structures, the corresponding purchase price is allocated between the land use rights and the buildings; if an equitable allocation is not feasible, the entire amount is treated as fixed assets.

For intangible assets with a finite useful life, the amortization base is calculated as the original cost minus the estimated net residual value and the cumulative amount of impairment provisions accumulated, and amortization is performed on an average basis over the estimated useful life using the straight-line method from the point when the asset becomes available for use. Intangible assets with an indefinite useful life are not amortized.

The useful life, determination basis, and amortization method for intangible assets with finite useful lives are as follows:

At the end of the period, the useful life and amortization method of intangible assets with a finite useful life are reviewed; any changes are treated as adjustments to accounting estimates. Additionally, the useful life of intangible assets with an indefinite useful life is reviewed. If evidence indicates that the period during which the intangible asset generates economic benefits is foreseeable, its useful life is estimated and amortized using the amortization method applicable to intangible assets with a finite useful life.

(2) Research and Development Expenses

The expenditures for our company's internal research and development projects are categorized into research phase expenditures and development phase expenditures.

Expenses incurred during the research phase are recognized in profit or loss for the period in which they occur.

The scope of R&D expenditure aggregation for our company includes materials consumed for R&D, intermediate trial costs, travel expenses, design fees, depreciation and amortization, employee compensation, and other items.

The company's specific criteria for distinguishing between research phase expenditures and development phase expenditures in internal R&D projects:

The research phase refers to the stage of conducting original, planned investigations and research activities aimed at acquiring and understanding new scientific or technological knowledge; the development phase involves applying research findings or other knowledge to specific plans or designs prior to commercial production or application, resulting in the creation of new or substantially improved materials, devices, or products.

Expenses incurred during the development phase shall be recognized as intangible assets if all the following conditions are met; otherwise, such expenses shall be recognized in profit or loss for the current period.

① It is technically feasible to complete the intangible asset so that it can be used or sold;

② Intends to complete the acquisition of the intangible asset and use or sell it;

③ The ways in which intangible assets generate economic benefits include: demonstrating that products manufactured using such assets have a market, or that the intangible assets themselves have a market; or, when the assets are used internally, proving their utility

④ Possess sufficient technical, financial, and other resources to complete the development of the intangible asset, and have the capability to utilize or sell it;

⑤ The expenditures incurred during the development stage of this intangible asset can be reliably measured.

Where it is impossible to distinguish between expenditures incurred during the research phase and those during the development phase, all research and development expenditures shall be included in the current period's profit or loss.

(3) Methods for testing impairment of intangible assets and for recognizing impairment losses

For details on the impairment testing methods for intangible assets and the impairment provision

calculation methods, refer to Note 3, Section 19 "Impairment of Long-term Assets".

19. Impairment of long-term assets

For non-current non-financial assets—including fixed assets, construction in progress, intangible assets with finite useful lives, right-of-use assets, investment properties measured at cost, and long-term equity investments in subsidiaries, joint ventures, and associates—the Company assesses for impairment indications on the balance sheet date. Where impairment indications exist, the recoverable amount is estimated and an impairment test is conducted. Goodwill, intangible assets with indefinite useful lives, and intangible assets that have not yet reached their usable state undergo annual impairment testing regardless of the presence of impairment indications.

The impairment assessment results indicate that when an asset's recoverable amount falls below its carrying value, an impairment loss is recognized based on the difference. The recoverable amount is defined as the higher of: the net amount of the asset's fair value less disposal costs, or the present value of the asset's estimated future cash flows. The fair value of an asset is determined by the transaction price in a fair market transaction; where no transaction agreement exists but the asset has an active market, the fair value is determined by the highest bid price; where neither a transaction agreement nor an active market exists, the fair value is estimated using the best available information. Disposal costs include legal fees, applicable taxes, handling charges, and direct expenses incurred to prepare the asset for sale. The present value of future cash flows is calculated by discounting the projected cash flows generated during the asset's useful life and upon final disposal using an appropriate discount rate. Impairment provisions are calculated and recognized on an individual asset basis; when estimating the recoverable amount of an individual asset is difficult, the recoverable amount is determined for the asset group to which the asset belongs—the smallest identifiable group of assets capable of generating independent cash flows.

Goodwill separately presented in financial statements shall, during impairment testing, have its carrying amount allocated to the asset groups or combinations of asset groups expected to benefit from the synergies arising from the business combination. If the test results indicate that the recoverable amount of the asset group or combination of asset groups containing the allocated goodwill is lower than its carrying amount, the corresponding impairment loss shall be recognized. The impairment loss amount shall first be deducted from the carrying amount of the goodwill allocated to that asset group or combination, and then proportionally deducted from the carrying amounts of the other assets within the asset group or combination based on their respective share of the total carrying amount excluding goodwill.

Once the aforementioned asset impairment loss is recognized, the portion of value recovered cannot be reversed in subsequent periods.

20. Long-term prepaid expenses

Long-term prepaid expenses refer to various costs that have already been incurred but should be allocated over the reporting period and subsequent periods, with an amortization period exceeding one year. The Company's long-term prepaid expenses primarily consist of renovation costs. These expenses are amortized using the straight-line method over their estimated benefit period.

21. Contract Liabilities

Contract liabilities refer to the obligation of the Company to deliver goods to customers for which the Company has received or is due to receive consideration from them. If the customer has paid the contract consideration or the Company has acquired an unconditional right to receive payment prior to the delivery of goods, the Company recognizes such received or receivable amounts as contract liabilities at the earlier of the customer's actual payment date or the due payment date. Contract assets and contract liabilities under the same contract are presented on a net basis; those under different contracts are not offset against each other.

22. Employee Compensation

The company's employee compensation primarily consists of short-term employee compensation, postemployment benefits, termination benefits, and other long-term employee benefits. Specifically:

Short-term compensation primarily includes wages, bonuses, allowances and subsidies, employee welfare expenses, medical insurance premiums, maternity insurance premiums, work-related injury insurance premiums, housing provident fund contributions, trade union funds, employee education funds, and non-monetary benefits. During the accounting period in which employees provide services to the company, the actual short-term employee compensation incurred is recognized as a liability and recorded in the current period's profit or loss or the cost of related assets. Non-monetary benefits are measured at fair value.

Post-employment benefits primarily include basic pension insurance, unemployment insurance, and annuities. Post-employment benefit plans consist of defined contribution plans and defined benefit plans. For defined contribution plans, the corresponding contribution amounts are recognized either as part of the asset cost or recorded in the current period's profit or loss upon occurrence.

When terminating the employment relationship with an employee before the expiration of the labor contract, or when proposing compensation to encourage voluntary workforce reduction, the employee compensation liability arising from such termination shall be recognized and recognized in profit or loss at the earlier of: (1) the date on which the company cannot unilaterally withdraw the termination benefits provided under the employment termination plan or reduction proposal; or (2) the date on which the company confirms the costs associated with the restructuring involving the payment of such termination benefits. However, if the termination benefits are not expected to be fully paid within twelve months following the end of the annua reporting period, they shall be treated as other long-term employee benefits.

The internal employee retirement plan follows the same principles as the aforementioned severance benefits. For employees who opt for early retirement, the company will recognize the wages payable and social insurance contributions accrued from the date of service termination until the normal retirement date as current period expenses (severance benefits) when the conditions for recognizing estimated liabilities are met.

Other long-term employee benefits provided by the Company shall be accounted for under the defined contribution plan where applicable, and otherwise under the defined benefit plan.

23. Provision for Liabilities

When obligations arising from contingent matters such as external guarantees, litigation matters, product quality guarantees, or loss contracts become current obligations assumed by the Company, and the fulfillment of such obligations is likely to result in an outflow of economic benefits from the Company, with the amount of these obligations being reliably measurable, the Company recognizes such obligations as estimated liabilities.

The Company initially measures its estimated liabilities based on the best estimate of expenditures required to fulfill relevant current obligations and reviews the carrying amount of these liabilities at the balance sheet date.

If the entire or partial expenditure required to settle an estimated liability is expected to be compensated by a third party, the compensation amount shall be recognized separately as an asset when it is essentially certain that it will be received, provided that the recognized compensation amount does not exceed the carrying amount of the estimated liability.

24. Income

The Company recognizes revenue when fulfilling its performance obligations under the contract—that is, upon the customer obtaining control of the relevant goods or services—in accordance with the transaction price allocated to such performance obligation. Acquisition of control of the relevant goods refers to the ability to dominate their use and derive nearly all economic benefits therefrom. A performance obligation denotes the Company's commitment under the contract to transfer clearly identifiable goods to the customer. The transaction price represents the amount of consideration the Company expects to receive for transferring the goods to the customer, excluding payments received on behalf of a third party and amounts the Company expects to refund to the customer.

Whether a performance obligation is fulfilled over a specific period or at a specific point in time depends on the contract terms and relevant legal provisions. If the obligation is fulfilled over a period, the Company recognizes revenue based on the progress of performance. Otherwise, the Company recognizes revenue at the point when the customer obtains control of the relevant assets.

For performance obligations stipulated in sales contracts for engineering construction and maintenance services that meet the condition of "performance within a specified period," revenue is recognized based on the progress of performance, unless the progress cannot be reasonably determined. The Company uses the input method to determine the contract performance progress as the ratio of the cumulative contract costs incurred to the contract target cost. If the progress cannot be reasonably determined but the incurred costs are expected to be fully recovered, the Company recognizes revenue based on the amount of incurred costs until the progress can be reasonably determined.

The sales of video conferencing products, integrated wiring products, intelligent electrical products, communication infrastructure products, and other products constitute performance obligations fulfilled at a specific point in time. Revenue recognition for these products requires the following conditions: the company has delivered the products to the buyer as stipulated in the contract and obtained the buyer's acceptance; the product sales revenue amount has been determined; payment has been received or payment vouchers have been obtained; it is probable that the related economic benefits will materialize; and the costs associated with the products can be reliably measured.

25. Contract Cost

Contract costs are divided into contract performance costs and contract acquisition costs.

The costs incurred by the Company in fulfilling the contract shall be recognized as an asset for contract performance costs only when the following conditions are simultaneously met:

(1) This cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing overhead (or similar expenses), costs explicitly borne by the client, and other costs incurred solely for that contract;

(2) This cost increases the resources the enterprise will allocate in the future to fulfill its performance obligations;

(3) This cost is expected to be recovered.

When the incremental costs incurred by the Company to obtain a contract are expected to be recovered, they shall be recognized as part of the contract acquisition cost and classified as an asset; however, if the amortization period of such asset does not exceed one year, the cost may be recognized in profit or loss at the time of occurrence.

Assets related to contract costs are amortized using the same basis as the revenue recognition from goods or services associated with those assets.

For assets related to contract costs, if their carrying value exceeds the sum of the following two amounts, the Company shall recognize an impairment loss on the excess amount and record it as an asset impairment loss:

(1) The remaining consideration expected to be received from the transfer of goods or services related to the asset;

(2) The estimated costs incurred for transferring the relevant goods or services.

Where the aforementioned asset impairment provision is subsequently reversed, the revised book value of the asset shall not exceed its book value on the reversal date under the assumption that no impairment provision

was recognized.

26. Government Subsidy

Government grants refer to monetary and non-monetary assets obtained by the Company from the government without compensation, excluding capital invested by the government as an investor with corresponding owner's equity. Government grants are categorized into asset-related grants and revenue-related grants. When government grants consist of monetary assets, they are measured at the amount received or receivable. For non-monetary assets, they are measured at fair value; if fair value cannot be reliably determined, they are measured at nominal amount. Government grants measured at nominal amount are directly recognized in profit or loss for the period.

Government grants related to assets are recognized as deferred income and are allocated to current period earnings over the useful life of the relevant assets using a reasonable and systematic method. Government grants related to income that are intended to compensate for future costs, expenses, or losses are recognized as deferred income and are recognized in current period earnings when the corresponding costs, expenses, or losses are recognized; those intended to compensate for incurred costs, expenses, or losses are recognized directly in current period earnings.

Government grants that encompass both asset-related components and revenue-related components should be accounted for separately; where differentiation is difficult, they should be collectively classified as revenue related government grants.

Government grants related to the company's daily operations shall be recognized as other income or deducted from relevant costs and expenses based on the substance of the economic transactions; government grants unrelated to daily operations shall be recorded as non-operating income or expenses.

When confirmed government grants need to be refunded, if there is a relevant deferred income balance, the corresponding deferred income balance shall be offset; any excess amount shall be recognized in current period profit or loss. In other cases, the amount shall be directly recognized in current period profit or loss.

27. Deferred income tax assets/deferred income tax liabilities

The deferred income tax asset or liability is recognized based on the difference between the carrying amount of assets and liabilities and their tax basis (for items not recognized as assets or liabilities, where their tax basis can be determined in accordance with tax laws, the difference between the tax basis and the carrying amount), calculated using the applicable tax rate during the period when the asset is expected to be recovered or the liability settled.

Deferred tax assets shall be recognized only to the extent that it is probable that sufficient taxable income will be available to offset deductible temporary differences. At the balance sheet date, if there is conclusive evidence that sufficient taxable income is likely to be available in future periods to offset such differences, deferred tax assets previously unrecognized in prior accounting periods shall be recognized.

On the balance sheet date, review the carrying amount of deferred tax assets. If it is probable that sufficient taxable income will not be available in future periods to realize the benefits of these deferred tax assets, reduce their carrying amount. When sufficient taxable income is likely to be obtained, reverse the reduction amount.

The Company's current income tax and deferred income tax are recognized as income tax expenses or income in the current period's profit or loss, excluding income tax arising from the following transactions: business combinations; or transactions or events recognized directly in owners' equity.

When the company holds statutory rights for net settlement and intends to conduct both net settlement or acquisition of assets and settlement of liabilities simultaneously, its current income tax assets and liabilities shall be reported at the net amount after offsetting.

28. Lease

（1） Our company acts as the lessee.

The leased assets of our company are primarily mechanical equipment.

On the lease commencement date, the Company recognizes right-of-use assets and lease liabilities for leases other than short-term leases and low-value asset leases, and recognizes depreciation expenses and interest expenses separately over the lease term.

During the lease term, our company applies the straight-line method, recognizing the lease payments for short-term leases and low-value asset leases as current period expenses.

① Right-to-use asset

Right-of-use assets refer to the rights granted to the lessee to use the leased asset during the lease term. At the commencement date of the lease term, right-of-use assets are initially measured at cost. This cost includes: ① the initial measurement amount of the lease liability; ② lease payments made on or before the lease commencement date; if lease incentives are applicable, the amount of such incentives already received shall be deducted; ③ the lessee's initial direct costs; ④ the costs expected to be incurred by the lessee for dismantling and removing the leased asset, restoring the premises where the asset is located, or returning the asset to the condition specified in the lease terms.

The Company uses the straight-line method for the classification and calculation of depreciation on its right-of-use assets. For leases where it is reasonably certain that ownership of the leased asset will be acquired upon lease expiration, depreciation is calculated over the asset's estimated remaining useful life; for leases where this certainty is lacking, depreciation is calculated over the shorter of the lease term and the asset's remaining useful life.

The Company determines whether right-of-use assets have experienced impairment and performs the corresponding accounting treatment in accordance with the relevant provisions of Accounting Standard for Business Enterprises No.8 – Asset Impairment.

② lease obligation

Lease liabilities are initially measured at the present value of the outstanding lease payments as of the lease commencement date. Lease payments include: ① fixed payments (including substantially fixed payments); where lease incentives exist, the amount related to such incentives is deducted; ② variable lease payments dependent on indices or ratios; ③ amounts payable based on the residual value of guarantees provided by the lessee; ④ the exercise price of a purchase option, provided the lessee reasonably determines to exercise such option; ⑤ amounts payable for exercising the lease termination option, provided the lease term reflects the lessee's intention to exercise such option.

The Company uses the lease embedded interest rate as the discount rate; if the lease embedded interest rate cannot be reasonably determined, the Company's incremental borrowing interest rate is used as the discount rate. The Company calculates the interest expense on lease liabilities for each period of the lease term using a fixed periodic interest rate and records it as financial expense. This periodic interest rate refers to the discount rate or the revised discount rate adopted by the Company.

Variable lease payments not included in the measurement of lease liabilities are recognized in profit or loss at the actual occurrence.

When the valuation results for the lease renewal option, lease termination option, or purchase option change, the lease liability shall be remeasured using the present value calculated based on the revised lease payments and the updated discount rate, with the carrying amount of the right-of-use asset adjusted accordingly. If there are changes in material lease payments, the estimated payable amount of the residual value of the guarantee, or variable lease payments dependent on indices or ratios, the lease liability shall be remeasured using the present value calculated based on the revised lease payments and the original discount rate, and the carrying amount of the right-of-use asset shall be adjusted accordingly.

③ Short-term leasing and leasing of low-value assets

For short-term leases (those with a lease term not exceeding 12 months on the lease commencement date)

and low-value assets (valued below RMB 2,000), the Company adopts a simplified approach: it does not recognize right-of-use assets or lease liabilities, but instead allocates lease payments over each period of the lease term using the straight-line method or another systematic and reasonable method to the cost of the relevant assets or to the current period's profit or loss.

（2） Our company acts as the lessor.

1 operation lease

The Company uses the straight-line method to recognize lease receivables from operating leases as rental income for each period of the lease term. Variable lease payments related to operating leases that have not been included in the lease receivables are recognized in profit or loss when actually incurred.

2 finance lease

On the lease commencement date, the Company recognizes the receivable from the financial lease and derecognizes the financial lease asset. The receivable from the financial lease is initially measured at the net lease investment amount (the sum of the unguaranteed residual value and the present value of lease receivables not yet received at the lease commencement date, discounted at the lease's effective rate), and interest income for the lease term is recognized at a fixed periodic rate. Variable lease payments received by the Company that are not included in the net lease investment amount are recognized in profit or loss when actually incurred.

29. Methodology and Selection Criteria for Determining Importance Standards

30. Changes to significant accounting policies and accounting estimates

(1) Change in Accounting Policies

The Company had no significant changes to accounting policies during the reporting period.

(2) Change in Accounting Estimates

The Company had no significant changes to accounting estimates during the reporting period.

IV. Taxes

1. Main Tax Types and Rates

2. Tax incentives and approval documents

1. Nanjing Putiantianji Building Intelligence Co., Ltd. obtained the High-Tech Enterprise Certificate in December 2024, valid for three years, and will pay corporate income tax at a reduced rate of 15% for the 2024– 2026 fiscal year.

2. Nanjing Putian Datang Information Electronics Co., Ltd. obtained its High-Tech Enterprise Certificate in November 2024, valid for three years, and will pay corporate income tax at a reduced rate of 15% for the 2024– 2026 fiscal year.

3. Nanjing Putian Datang Information Electronics Co., Ltd. has been recognized as a software enterprise. Certain software products from Nanjing Putian Tianji Building Intelligence Co., Ltd. and Nanjing Southern Telecommunications Co., Ltd. comply with the provisions of Document Cai Shui [2011] No.100 and are eligible for the value-added tax refund policy upon collection.

V. Notes to the Consolidated Financial Statements Items

Unless otherwise specified in the following notes (including notes to major items of the Company’s financial statements), “End of Period” refers to June 30, 2026; “End of Prior Year” refers to December 31, 2025; “Current Period” refers to the six months ended June 30, 2026; “Prior Period” refers to the six months ended June 30, 2025.

1. Cash and cash equivalents

Note: Other Monetary Funds (Restricted Monetary Funds): Bank acceptance bill deposits RMB 551,072.55; performance bond deposits RMB 72,606.72; CPC special account funds RMB 341,290.07.

2.Notes Receivable

(1) Classification and presentation of notes receivable

(2) Receivable notes that have been endorsed or discounted at the end of the period and have not yet matured as of the balance sheet date

(3) Classified presentation according to the bad debt provisioning method

① In the combination, accounts receivable notes are provided for bad debts based on the aging group.

(4) Status of bad debt provisions

3. Accounts Receivable

(1) Disclosure by aging of accounts

(2) Classified presentation according to the bad debt provisioning method

（ continuous ）

① Accounts receivable for which a separate bad debt provision is made at the end of the period

② Accounts receivable for which bad debt provisions are calculated based on the aging group within the combination

(3) Status of bad debt provisions Among these: The amount of bad debt provisions recovered or reversed in this period is significant.

(5) Details of the top five accounts receivable by the debtor's end-of-period balances

4. Contract Assets

4. Contract Assets Project Ending balance Year-end balance Carrying Amount Allowance for Bad Debts Carrying Value Carrying Amount Allowance for Bad Debts Carrying Value Contract Assets 0.00 0.00 0.00 0.00

5、Receivables Financing

6. Advance Payment

(1) Advance payments are presented by aging.

(2) Prepayment details for the top five accounts by end-of-period balance, categorized by prepayment recipient

7. Other Receivables

(1) Other Receivables

① Disclosure by aging of accounts

② Classification by nature of funds

③ Provision for bad debts

④ Status of bad debt provisions

⑤ Details of the top five other receivables by the debtor's accumulated ending balances

8. Inventory

(1) Inventory Classification

(2) Inventory impairment provision/Contract performance cost impairment provision

9. Other current assets

10. Investments in Other Equity Instruments

(1) Investment in other equity instruments

The company's equity investments in Nanjing Yuhua Electroplating Factory, Hangzhou Hongyan Electric Appliance Co., Ltd., and Beijing Likang General Information Equipment Co., Ltd. constitute non-trading equity instrument investments. Consequently, the company classifies these investments as equity instruments measured at fair value with changes recognized in other comprehensive income.

11. Investment property

(1) Investment property measured at cost

12. Fixed Assets

(1) Fixed Assets

① Fixed Assets Status

② Status of temporarily idle fixed assets

③ Fixed assets leased out through operating leases

④Status of fixed assets for which the property ownership certificate has not been obtained

13. Right-to-Use Assets

14. Intangible Assets

(1) Information on Intangible Assets

15. Long-term prepaid expenses

15. Long-term prepaid expenses project Year-end balance Increase amount for this period Amortization amount for this period Other reduction amount ending balance Renovation Expenditures 3,054,632.19 378,958.84 2,675,673.35

16. Deferred income tax assets/deferred income tax liabilities

(1) Details of unconfirmed deferred tax assets

(2) The deductible losses of unconfirmed deferred tax assets shall mature in the following years.

17. Assets with restricted ownership or usage rights

Note: For details on the mortgage status of fixed assets and intangible assets, refer to Note 17; for short-term loans, see the relevant section.

17. Assets with restricted ownership or usage rights project End-of-period book value Limitation Reason monetary resources 964,969.34 Bank acceptance bill margin, performance bond and special account funds of the Party Committee fixed assets 49,825,840.00 mortgage immaterial assets 4,822,918.56 mortgage amount to 55,613,727.90 Note: For details on the mortgage status of fixed assets and intangible assets, refer to Note 17; for short-term loans, see the relevant section.

18. Short-term loan

(1) Classification of Short-Term Loans

Note: The Company pledged the capital contribution corresponding to its 56.28% equity interest in Nanjing Southern Telecom mathrm C o., Ltd. (amounting to RMB 28.5340 million) to its parent company, CETC Guorui Group Co., Ltd., to obtain borrowings of RMB 66.80 million.

19. Payable Notes