Company Code: 600132

Abbreviation of the Company: Chongqing Brewery

CHONGQING BREWERY CO., LTD. ANNUAL REPORT 2025

Important Notice

I. The Board of Directors, the directors, and senior management of the Company guarantee that the information of the Annual Report is true, accurate and complete and there are no false representations, misleading statements or material omissions, and assume individual and joint liabilities to the information contained herein.

II. All Directors of the Company attended the Board meeting.

III. Pan-China Certified Public Accountants LLP (Special General Partnership) has issued an auditor’s report with an unqualified opinion to the Company.

IV. João Miguel Ventura Rego Abecasis, the person-in-charge of the Company, Chin Wee Hua, the personin-charge of accounting work, and Liu Liping, the person-in-charge of the accounting department (head of the accounting department) hereby declare their guarantees for the authenticity, accuracy and completeness of the financial report in the Annual Report.

V. Plans on profit distribution or conversion of capital reserve to increase share capital in the current reporting period deliberated and approved by the Board of Directors

The Company intends to distribute cash dividends to all shareholders based on the total share capital registered at the equity registration date for the 2025 annual profit distribution. Cash dividends of RMB 1.20 (tax inclusive) per share will be distributed. As of December 31, 2025, the Company’s total share capital was 483,971,198 shares and a total of cash dividend of RMB 580,765,437.60 (tax inclusive) will be distributed on such basis. Previously, for the 2025 interim period, the Company distributed a cash dividend of RMB 1.30 (tax inclusive) per share to all shareholders, totaling RMB 629,162,557.40 (tax inclusive). Accordingly, the total cash dividend for 2025 is RMB 1,209,927,995.00 (tax inclusive), accounting for 98.30% of the net profit attributable to shareholders of the Company in 2025.

If there is any change in the Company’s total share capital before the equity registration date for the 2025 annual profit distribution, the distribution ratio per share will remain unchanged, with corresponding adjustments to the total distribution amount. The above profit distribution plan is subject to approval by the Company’s shareholders meeting before implementation.

Unrecovered losses of the parent company at the end of the reporting period and their impact on the Company’s profit distribution and other related matters

□ Applicable √ Not applicable

VI. Risk statement with respect to forward-looking statements

√ Applicable □ Not applicable

Forward-looking statements, including future plans, contained in this report do not constitute actual commitments made by the Company to investors. Investors should be aware of investment risks.

VII. Is there any fund occupied by the controlling shareholder and its related parties for nonoperational purposes?

No

VIII. Is there any external guarantee made in violation of required decision-making procedures? No

IX. Are there more than half of the directors who cannot guarantee the authenticity, accuracy and completeness of the annual report disclosed by the Company? No

X. Notice of material risks

The Company has described relevant potential risks in this report. For details, please refer to “VI. Discussion and Analysis on the Future Development of the Company” under Section III of this Report.

XI. Others

□ Applicable √ Not applicable

This report is prepared in Chinese. An English translation is provided for reference only. In case of any differences between the Chinese version and the English translation, the Chinese version shall prevail.

CONTENTS

SECTION I DEFINITIONS....5

SECTION II COMPANY PROFILE AND PRINCIPAL FINANCIAL INDICATORS....5

SECTION III MANAGEMENT DISCUSSION AND ANALYSIS....9

SECTION IV CORPORATE GOVERNANCE, ENVIRONMENTAL AND SOCIAL RESPONSIBILITY....38

SECTION V IMPORTANT MATTERS....63

SECTION VI CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS....79

SECTION VII PARTICULARS OF BONDS....86

SECTION VIII FINANCIAL REPORT....87

SECTION I DEFINITIONS

I. Definitions

In this Report, unless the context otherwise requires, the following words shall have the following meanings:

SECTION II COMPANY PROFILE AND PRINCIPAL FINANCIAL INDICATORS

I. Corporate Information

II. Contact Persons and Contact Information

2025 Annual Report of Chongqing Brewery Co., Ltd

III. Basic Information

IV. Place of Information Disclosure and Document Inspection

V. Stock Listing

VI. Other Relevant Information

VII. Key Accounting Data and Financial Indicators for the Past Three Years

(I) Key accounting data

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

(II) Key financial indicators

Remarks on key accounting data and financial indicators in the past three years

□ Applicable √ Not Applicable

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

(I) Differences in net profit and net assets attributable to shareholders of the listed company in the financial reports disclosed simultaneously in accordance with international accounting standards and Chinese accounting standards

□ Applicable √ Not applicable

(II) Differences in net profit and net assets attributable to shareholders of the listed company in the financial reports disclosed simultaneously in accordance with foreign accounting standards and Chinese accounting standards

□ Applicable √ Not applicable

(III) Explanation on the differences between domestic and foreign accounting standards:

□ Applicable √ Not applicable

IX. Key Quarterly Financial Data in 2025

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

Remarks on differences between quarterly data and data disclosed in periodic report

□ Applicable √ Not Applicable

X. Non-Recurring Profit or Loss

√ Applicable □ Not applicable

Monetary unit: RMB

Remarks on defining items not listed in “Explanatory Announcement on Information Disclosure for Companies Offering Their Securities to the Public No.1 -- Extraordinary Profit and Loss” as extraordinary profit or loss items in significant amount and on defining extraordinary profit or loss listed therein as recurring profit or loss items □ Applicable √ Not applicable

XI. Companies with equity incentive plans or employee stock ownership plans may elect to disclose net profit excluding the effect of share-based compensation.

□ Applicable √ Not applicable

XII. Items Measured at Fair Value

√ Applicable □ Not applicable

Monetary unit: RMB

XIII. Others

□ Applicable √ Not applicable

SECTION III MANAGEMENT DISCUSSION AND ANALYSIS

I. Business of the Company During the Reporting Period

The Company’s principal business is the manufacturing and sale of beer products.

In terms of operating model, the Company implements region-based management. In procurement, it adopts centralized procurement with decentralized order placement. In supply, it organizes production and manages inventory according to the “production based on sales” principle. In sales, it sells primarily through distributors, with direct sales as a supplement.

Explanation of significant non-primary business added by the Company during the reporting period.

□ Applicable √ Not applicable

II. Description of the Industry Where the Company Operated During the Reporting Period

According to the National Bureau of Statistics of China, the cumulative beer production by beer enterprises above the designated size in China totaled 35.360 million kiloliters in 2025, down 1.1% year-on-year.

III. Discussion and Analysis on Operations

In 2025, despite a complex and changing external environment, the Company maintained stable operations. It continued to optimize its product mix, deepen channel penetration, and enhance operational capabilities, achieving steady growth in sales volume, revenue, and profit. This demonstrated strong business resilience and further advanced the Company’s high-quality development.

(i) Market

The Carlsberg brand continued to strengthen its premium positioning and emotional bond with consumers. During the Spring Festival, it launched the limited-edition “Auspicious Snake Heralds Spring, Blooming Step by Step” series, conveying a sense of prosperity through artistic design. The series won three international design awards, including the iF Design Award and the Red Dot Award. In the summer of 2025, the brand’s communications reinforced its proposition of “Pursue good football, drink Carlsberg” through collaboration with Bosco Wong and Liverpool’s Premier League title. For the first time, the brand sponsored the Foshan “Xijia” League and the Guangdong Super League, boosting brand awareness and local engagement. Additionally the Company introduced the Carlsberg Signature Alchemy Brew Series and promoted it in partnership with Black Pearl-selected restaurants to expand its presence in high-end dining. The Company continued to optimize consumer experience in entertainment occasions, expand quality on-trade and off-trade channels, and accelerate the footprint of the brand in key markets.

Tuborg further strengthened its brand image as “young, cool, and with attitude.” It collaborated with GAI, Vinida, and Gali Jiang to roll out brand-themed content, reinforcing the “Tilt the Wold, WHY NOT” proposition. Throughout the year, the brand launched a series of marketing campaigns targeting younger consumers, including the April Fools’ Day “Anti-Exploitation” App, campus events during graduation season, and the “996 ‘Workhorse’ Night”. In addition, it sponsored The King of Stand-up Comedy Season 2 for the first time, boosting its national influence. In music marketing, Tuborg launched the “DROP THE BEAT” project and a brand single, and held largescale music festivals in various cities along with multiple small and medium-sized events, strengthening the “bee + music” brand association.

Kronenbourg 1664 continued to upgrade its brand image and communication approach. A new brand ambassador, Leo Wu, enhanced brand affinity and the premium image perception. The brand created the exclusive “Blue Hour” consumption occasion, collaborated with Nylon on a thematic marketing campaign to convey the French Blue aesthetic, and won the “Best Occasion-based Marketing Case” from the China Advertising Billboard. Additionally, K1664 partnered with Shanghai Fashion Week and designer XUZHI to launch limited-edition merchandise and a brand-themed show, and collaborated with French artist Walala on limited-edition packaging for Christmas and New Year, reinforcing gift-giving consumer occasions.

Wusu advanced national expansion and premiumization through a dual-track strategy of brand value enhancement and product innovation. With dual ambassadors Adam Fan and Fu Hang, the brand communicated the concept that “NONG people drink Wusu”. Combined with AI and robot interactive content, as well as variety show partnerships such as with Keep Running and Let’s Go, NONG People, Wusu significantly boosted its appeal among young consumers. On the product front, the Company continued to expand its 1L segment, accelerate the nationwide rollout of Wusu Secret Brew, and launch new products including Wusu Xinjiang Hop Craft, Wusu Da Hong Pao Craft, Wusu Original Brew, and craft series, further enhancing its premium product portfolio.

The Chongqing brand continued to deepen its presence in the local Chongqing market. It invited Jordan Chan as its brand ambassador and served as the title sponsor for his Chongqing concert, strengthening the brand’s local cultural ties. By sponsoring the Chongqing Super League and partnering with player Xiang Yuwang, the brand launched a “Chongqing locals drink Chongqing Beer” campaign, along with limited-edition cans featuring the league and the player. Its 1L all-malt craft beer, featuring Chinese-style packaging and an all-malt brewing process, is driving product mix upgrades. In the Sichuan market, the brand partnered with Jike Junyi and Shangchengshi Magazine to share the story of Daliangshan. In Guizhou, it launched the V8 products as part of its cultural tourism series.

Wind Flower Snow Moon continued to drive product innovation and brand upgrading throughout the year, focusing on the integration of culture and tourism as well as Eastern aesthetics. It launched a low-alcohol green grapeflavored beer and partnered with brand ambassador Yang Chaoyue to reach young consumers. Meanwhile, the brand created “Night” as the exclusive product for folk music scenes and introduced innovative 1L offerings such as Longjing green-tea beer and Yunnan black-tea beer. Themed campaigns, such as those for the Water-Splashing Festival and “Escape to the Grassland,” as well as limited-edition cans featuring tie-dye, an intangible cultural heritage of Yunnan, were rolled out. The brand continued to strengthen its presence in folk music consumption occasions, developed its own IP, and leveraged AIGC to refresh the expression of Eastern aesthetics for younger audiences, further enhancing its appeal among young consumers and within cultural tourism contexts.

The Dali brand pushed forward its youth-oriented transformation across four dimensions: product, channel, creativity, and technology. It launched new 1L products including Dali V8 Lord of Tartary Buckwheat Craft, Cang’er Soda, and Dali Refreshing, deepened its O2O presence, and strengthened its retail network. In partnership with Jike Junyi and local artists, the brand rolled out thematic campaigns such as the “Dianfeng Race” to reinforce local cultural ties, and enhanced brand influence through events like the Torch Festival and beer festivals. AIGC technology was applied to the “Yunnan Super League” campaign, generating significant interaction and boosting the brand’s appeal among younger consumers.

Craft beer brands focused on reaching a broader consumer base. Jing-A launched refreshed 500ml canned products, including Flying Fist, Mandarin Wheat, Hops Wonderland, and Jasmine Green Grape. It continued to enhance brand influence and industry recognition through its Taproom stores, beer festivals, and the ninth edition of the “8x8 Collaborative Brewing Project.”

(ii) Sales

In 2025, the Company saw steady progress in sales across all channels and key projects. Premium products maintained growth, overall sales performance remained stable, and product mix continued to improve.

The share of off-trade channel further increased. Emerging channels such as O2O instant delivery, e-commerce, and convenience stores performed well. Traditional channels achieved growth through distribution expansion and digita promotion. Modern channels, with a focus on on new retail formats such as warehouse club stores and discoun snack stores, made positive progress. New 1L-pack products became a key growth driver for off-trade channel.

On-trade channel focused on key accounts, driving product innovation and adaptability to consumer occasions, with growth achieved in segments such as non-alcoholic beverages and 1L craft beer.

The markets under the “Big City” program maintained rapid growth. By optimizing product mix, strengthening distributor network, and empowering with digital tools, the Company continuously improved execution and resource allocation efficiency.

Digital and intelligent innovation was widely applied across traditional and dinning channels, steadily enhancing operational efficiency and sales promotion synergy.

(iii) Supply chain

Safety: Through dual-theme safety campaigns, the Company strengthened risk prevention and control, recording a company-wide low in lost-time injury alongside steady enhancements in employee safety awareness and risk prevention capabilities. The Company received two top awards from the Carlsberg Group, i.e., “Best Safety Market” and “Best Safety Factory.”

Quality: The Company leveraged monthly quality-themed activities as a key lever, with a focus on end-to-end food safety control. It conducted risk assessments across the entire process, from raw material control to finished product transportation and point-of-sale management, thereby effectively preventing potential risks.

Taste evaluation: The Company further strengthened fermentation process control, yeast management, and team tasting capabilities. It received 15 awards at the China International Beer Challenge. In the once-every-five-year national certification for beer taster, six employees were certified as National Beer Tasters, and one as Nationa Beer Tasting Supervisor — further evidence of continuous professional improvement.

Production Capacity: The 1L production line was successfully commissioned and ramped up quickly. Within two weeks of startup, line efficiency exceeded 80%, setting a new record for vertical start-up efficiency.

The Carlsberg Excellence Program progressed steadily as planned, strengthening capabilities in regional management, performance management, and organizational management, while continuously improving on-site management standards and production efficiency. The remote audit model effectively eased the shortage of auditor resources and expanded audit coverage by more than ten times.

Labor productivity continued high single-digit growth, effectively offsetting rising labor costs.

(iv) ESG

In 2025, guided by the “Accelerate SAIL” strategy, the Company fully advanced the “Together Towards Zero and Beyond” ESG program. Its environmental, social and governance performance continued to improve. The Company retained its MSCI ESG AA rating—the highest among A-share food-and-beverage companies, a level that only two listed companies have achieved.

In 2025, the Company received more than ten accolades from industry associations and other accredited organizations, including first place in Extel’s “Best ESG” ranking, inclusion in Fortune China’s “ESG Impact List”, recognition as a “Best Practice Case for Sustainable Development” from the China Association for Public Companies (CAPCO), selection for the “2025 ESG Model Enterprise List” from the China Alcoholic Drinks Association (CADA), and the annual “ESG Low-Carbon Practice” award from Southern Weekend. In addition, five of the Company’s breweries were recognized as “National Green Factories” by the Ministry of Industry and Information Technology. Dali Brewery was named a “National Water Efficiency Leader”, while Tianmu Lake, Ningxia and Yinchuan breweries were rated as provincial-level advanced smart factories. Urumqi Brewery became one of the city’s first “zero-waste enterprises”. Several other brewery projects were recognized as provincial-level exemplary cases in water conservation, fire safety and other areas—further cementing the Company’s leading position in ESG.

ZERO Carbon Footprint: The Company accelerated its energy-mix shift, achieving 100% green electricity and a fully electric forklift fleet. In 2025, the Company used 164,477.64 MWh of green electricity, cutting carbon emissions by 87,271.84 tons, equivalent to planting 3.79 million trees. Meanwhile, continuous upgrades to energy-efficient equipment and the use of heat-recovery technology helped reduce thermal energy consumption per hectoliter of beer from 15.274 kWh in 2024 to 13.967 kWh. Compared with 2015, carbon emissions per hectoliter of beer fell by 78.47%, with cumulative reductions reaching 1,940,421 tons, equivalent to taking 713,000 cars off the road for a year. Low-carbon operating capabilities have steadily improved on the production-side.

ZERO Farming Footprint: The Company further enhanced its by-product recycling system, recovering 1.62 million tons of waste yeast liquid and 308,000 tons of spent grains throughout the year. In addition, the Company strengthened the local sourcing of raw materials, achieving 100% local procurement of key adjuncts and raising the share of locally sourced hops and malt to 35% and 55% respectively, thereby enhancing supply chain stability and reducing transport emissions.

ZERO Packaging Waste: The Company continued to push for green, lightweight packaging, widely adopting reusable or degradable materials and launching dedicated lightweighting initiatives for key packaging items. In 2025, the Company cut its use of corrugated paper by approximately 2,300 tons, plastic film by 336 tons, glass by 1,900 tons and aluminium by 350 tons. It improved the bottle-return system, with the return rate rising by 4.3 percentage points from 2022, saving around RMB 7.5 million in recyclable packaging costs. Concurrently, it recycled 30,000 tons of cullet (equivalent to 120 million 330ml beer bottles), reducing CO₂ emissions by 23,900 tons and boosting its resource recycling performance.

ZERO Water Waste: The Company further analyzed its water-consumption structure with the Loss Cost Tree too and rolled out best practices from benchmark breweries across its system. In 2025, water savings reached 159,800 tons, and unit water consumption fell to 2.03 hl/hl, a year-on-year drop of 2.67%. The Company made steady progress towards its 2030 target of 2.0 hl/hl, with seven breweries already hitting it. Chongqing Dazhulin Brewery, for instance, lowered its unit water consumption to 1.70 hl/hl, meeting the 2030 goal for high water-risk areas ahead of schedule. Since 2024, the Company has been running water replenishment projects in Chongqing, Yunnan and Jiangsu. In 2025, a total of 1.21 million cubic meters of water were replenished cumulatively, and more than 30,600 square meters of wetlands were restored or created.

ZERO Irresponsible Drinking: The Company put warning labels on all its alcoholic beverage packaging, including “Not for Pregnant Women”, “Underage Drinking Prohibited” and “Do Not Drink and Drive”. It took part in the National Responsible Drinking Week for the tenth consecutive year, generating more than 2 million online impressions through partnerships with platforms such as Taobao, JD.com, Douyin, Meituan and Ele.me. In addition, the Company wove responsible drinking messages into sporting events such as the Chongqing Super League and the Urumqi International Marathon, and ran interactive campaigns on responsible drinking at food and beverage outlets. Through initiatives like “Brewery Open Day”, it communicated the concept of responsible drinking to the general public, further expanding its social influence.

ZERO Accidents Culture: the Company has steadily strengthened its company-wide safety responsibility system. It built a safety training system covering 30 core modules, including hazardous waste management, chemical storage and machine guarding, and standardized and digitized the content. In 2025, 302 managers and supervising engineers were certified as trainers, and 39 employees as defensive driving trainers. The Company has cumulatively held 15 annual safety days, consistently raising employee awareness. Eight breweries have gone more than a decade without a lost-time injury, and 26 for two years running. Compared with 2018, the Company’s lost-time injuries (including those involving supply chain and sales administrative staff, as well as contractors) fell by 94%, demonstrating steady improvement in safety management.

(v) Talent and Cultural Development

The Company is committed to the shared growth of its employees and the business. Guided by the principles of Growth Culture: “empower, support and grow our people”, the Company continued to refine its talent development system.

With diverse training resources and development platforms in place, the Company gave its employees full support to build capabilities and pursue career growth, ensuring that personal growth and organizational development go hand in hand.

Talent selection adhered to the principles of fairness, impartiality and openness, with comprehensive assessment of value fit, competence and performance contribution. Through regular talent reviews, the Company identified development gaps and formulated Individual Development Plans (IDPs). Initiatives such as job rotations and crossdepartmental projects promoted internal talent mobility. IDPs were implemented at different levels and across categories, while various talent programs continued to strengthen the talent pipeline. A range of tools, including mentorship, challenging projects and short-term secondments, were integrated throughout the employee journey, embedding the principles of “empower, support and grow our people” into daily practice.

The Company continued to develop an integrated online-offline learning model, providing employees with systematic skill-building opportunities and driving improvement in personal growth and business performance. In 2025, total employee training hours reached nearly 280,000, achieving 100% coverage across the workforce. The Carlsberg E-learning platform offered a cumulative 3,704 courses covering professional skills, general competencies and leadership. During the year, the platform recorded 41,526 learning hours, with an 88% participation rate. Offline training focused on job-specific and collaborative skills, strengthening business capabilities through professional skills training, cross-departmental workshops and thematic programs. Leadership development was delivered in a tiered manner for senior, middle and front-line managers, leveraging both internal and external expertise. The Company also cultivated a team of internal trainers to facilitate the transfer of management experience.

Culture in action: 2025 marked the year of the Company’s full-scale rollout of its “Growth Culture”. More than 150 “growth-culture ambassadors” captured and spread real-life examples of the culture through story-gathering, behaviour cards and short videos. Activities such as employee co-creation workshops, birthday events and cultural content generation have carried the message further. Quarterly management meetings have included a dedicated “cultural exchange” session, aligning understanding from the top down. The Growth cultural elements have been embedded into recruitment questions, performance reviews and internal training, strengthening the cultura foundation at every stage of talent selection and hiring.

Diversity, equity and inclusion: The Company continued to advance relevant practices and upgraded its “Women Can Special Brew” public welfare initiative for women. A limited-edition product for International Women’s Day was launched, alongside a RMB200,000 donation to the Dali Women’s Federation, earmarked for female employment and entrepreneurship. Women now hold 34.4% of management roles, and the Company has won consecutive awards for “Diversity, Equity and Inclusion” and “Best DEI Project”. In 2025 the “My Voice” employee survey reached over 6,300 staff, with a 99% participation rate. The results have been turned into concrete action plans to keep raising engagement.

Attracting talent: The Company views talent as fundamental to sustainable growth and social responsibility. An intelligent recruitment system improved hiring efficiency, while an open, diverse and dynamic employer brand was built. Programs such as “Headquarters Open Day” and Carlsberg China Internship Program strengthened early ties with university talent, systematically preparing a future pipeline. The Company also tied its employer branding to social responsibility and timely topics. A “Women’s Recruitment Month”, for instance, promoted workplace gender equality, and a variety of communication approaches helped connect with younger candidates.

Talent is an essential foundation for the Company’s long-term development. The Company will continue to attract, develop and retain outstanding people, providing lasting momentum for both the Company and society through sound talent systems and responsible corporate practice.

(vi) Investor Relations Management

In 2025, the Company held an innovative results briefing for 2024 and Q1 2025 at its Foshan brewery. Conducted as a live webcast, the event combined a brewery tour, discussions with senior executives, a Q&A session on financia results, and a new-product tasting with the Company’s chief brewmaster. This allowed investors to see the production process and product quality up close, engage in in-depth conversations with management, and deepen their understanding of the Company’s strategy and operations. The event attracted over 205,000 views, up 15% year-on-year. For the third consecutive year, the Company was recognised by the CAPCO as a “Best Practice Case for Annual Results Presentation”.

According to the 2025 Asia’s Best Management Team Ranking released by Extel, the Company ranked first overall among small- and mid-cap companies (market value below US\$10 billion) in the “Asia’s Most Respected Companies – Consumer Goods: Daily Necessities” category. This marked its third consecutive year on the list.

Concurrently, the Company received multiple honors from the CAPCO, including “Best Practice Case for Investor Relations Management”, “Best Practice Case for Board of Directors”, and “Best Practice Case for Internal Control”. It also won the Securities Times Tianma Award for “Outstanding Team in Investor Relations Management”, the China Securities Journal’s “2024 Golden Bull Award for Most Investment Value”, and Corporate Governance Asia’s 15th “Asian Excellence Award”. Moreover, it earned an A-grade rating for information disclosure from the Shanghai Stock Exchange for three years in a row, a testament to the market’s recognition of its corporate governance and investor relations management strengths.

Lee Chee Kong, the Company’s president, received the “2024 Golden Bull Entrepreneur Innovation Award” for his strategic vision and operational performance. He was the only entrepreneur in the A-share food and beverage sector to win this honour. In the same year, he received the “Golden Top Award” from CNR News.

IV. Analysis on Core Competitiveness During the Reporting Period

√ Applicable □ Not applicable

The Company is the operation platform of Carlsberg Group in China. Carlsberg Group, headquartered in Denmark, is one of the world’s three largest beer companies. China is the largest market for Carlsberg Group globally. In the Group’s Accelerate SAIL strategy, Keep Winning in China has been identified as a strategic priority, with the goal of becoming a successful, professional and attractive brewer in the country.

Market channels: The Company has established an extensive sales network covering various provinces, autonomous regions, and municipalities across China. In its key market regions, the Company enjoys high-quality customer resources, strong brand advantages, and stable sales channels.

Brand portfolio: Through its powerful “Local Power Brands + International Premium Brands” brand portfolio, the Company has attained high-quality growth by fulfilling consumers’ diversified needs across various consumption scenarios. Its international brands include Carlsberg, Tuborg, K1664, Brooklyn, and Somersby; local brands include Wusu, Chongqing, Shancheng,Wind Flower Snow Moon, Xixia, Dali, and Jing A. Built on this brand portfolio, the Company continues to drive product innovation to meet consumer demand for high-quality beer products. Meanwhile, during the reporting period, the Company also launched products such as Snow Mountain Juice soda and Battery energy drink, accelerating its expansion into the beyond-beer categories.

Supply network: The Company owns 27 breweries, which enable extensive cross-regional coordination across procurement, production, and logistics, thereby creating synergies and ensuring efficient operations.

Marketing and promotion: Through integrated operations and complementary branding, the Company enhances its marketing and promotion efficiency with heightened brand distinctiveness and diversified marketing approaches.

V. Main Business Operation During the Reporting Period

In 2025, the Company recorded beer sales volume of 2,995.2 million kiloliters,an increase of 0.68% year-on-year; operating revenue of RMB 14.722 billion, with an increase of 0.53% year-on-year; and net profit attributable to shareholders of the listed company of RMB 1.231 billion, with an increase of 10.43% year-on-year.

(I) Analysis of principal business

1. Analysis on changes in related items in income statement and cash flow statement

Monetary unit: RMB

Remarks:

Changes in financial expenses are mainly due to the decrease of deposit interest rates during the current period, resulting in a decrease in interest income from bank deposits compared to the prior period.

Changes in net cash flows from financing activities are mainly due to different timing of profit distribution in the two years, resulting in a decrease in cash paid for dividend distribution in the current period as compared with the prior period.

Explanation of significant changes in business type, profit composition or profit sources in the current period.

□ Applicable √ Not Applicable

2. Revenue and cost analysis

√ Applicable □ Not applicable

(1) . Analysis of principal business by industry, product, region and sales model

Monetary unit: RMB

Explanation of principal business by industry, product, region and sales model:

Not applicable.

(2). Analysis on production and sales volume

Explanation of production and sales volume: Not applicable.

(3). Performance of major purchase and sales contracts

□ Applicable √ Not applicable

(4). Cost analysis

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

Other information relating to cost analysis:

None.

(5). Changes in the consolidation scope due to equity changes in major subsidiaries during the reporting period

□ Applicable √ Not applicable

(6). Significant changes or adjustments in the Company’s business, products, or services during the reporting period

□ Applicable √ Not applicable

(7). Information on major customers and suppliers

Explanation of the presentation of the following customer and supplier information aggregated under com mon control Not applicable.

A. Major sales customers and suppliers of the Company

√ Applicable □ Not applicable

Sales to the top five customers amounted to RMB 702.6528 million, accounting for 4.78% of the total annual sales. Of the aforementioned amount, sales to related parties was RMB 0, accounting for 0% of the total annual sales.

Purchase from the top five suppliers amounted to RMB 1,307.174 million, accounting for 14.31% of the total annual purchase. Of the aforementioned amount, purchase from related parties was RMB 0, accounting for 0% of the total annual purchase.

B. During the Reporting Period, the proportion of sales to a single customer exceeded 50% of the total, there were new customers in the top five customers or the Company was heavily dependent on a few customers. □ Applicable √ Not applicable

During the Reporting Period, the proportion of the purchase amount from a single supplier exceeded 50% of the total, there were new suppliers in the top five suppliers or the Company was heavily dependent on a few suppliers.

□ Applicable √ Not applicable

Monetary unit: RMB

C. During the reporting period, the company’s stocks were subject to delisting risk warning or other risk warnings.

Top five sales customers

□ Applicable √ Not applicable

Top five suppliers

□ Applicable √ Not applicable

D. Revenue from trading business during the reporting period

□ Applicable √ Not applicable

Top 5 sales customers with trading business accounting for more than 10% of operating revenue

□ Applicable √ Not applicable

Top 5 suppliers with trading business accounting for more than 10% of operating revenue

□ Applicable √ Not applicable

Other remarks:

None.

3. Expenses

√ Applicable □ Not applicable

The decrease in financial expenses is mainly due to the decrease of deposit interest rates during the current period, resulting in a decrease in interest income from bank deposits compared to the prior period.

4. R&D input

(1). Details on R&D input

√ Applicable □ Not applicable

(2). R&D personnel

√ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

(3). Remarks

√ Applicable □ Not applicable

During the reporting period, the Company continued to advance the specialized and centralized management of its R&D activities, optimize and standardize the criteria for counting R&D personnel, and focus on full-time R&D teams and core R&D man-hours.

(4). Reasons for significant changes in the composition of R&D personnel and the impact on the future development of the Company

□ Applicable √ Not applicable

5. Cash flows

√ Applicable □ Not applicable

Increase in net cash inflows from operating activities of RMB 82.1436 million is mainly due to the decrease in cash outflows from purchase of goods and receiving of services in the current period.

Increase in net cash outflows from investing activities of RMB 154.0577 million is mainly due to the increase in cash payments for investing in money market funds.

Decrease in net cash outflows from financing activities of RMB 1,356.039 million is mainly due to different timing of profit distribution in the two years, resulting in a decrease in cash paid for dividend distribution in the current period as compared with the prior period.

(II) Explanation of significant changes in profit caused by non-operating activities

□ Applicable √ Not applicable

(III) Analysis of assets and liabilities

√ Applicable □ Not applicable

1. Assets and liabilities

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

Other remarks:

None.

2. Overseas assets

□ Applicable √ Not applicable

3. Restriction on major assets as of the end of the Reporting Period

√ Applicable □ Not applicable

Monetary unit: RMB

4. Other remarks

□ Applicable √ Not applicable

(IV) Analysis of operating information in the industry

√ Applicable □ Not applicable

For details, please refers to the analysis of the operating information in the beer manufacturing industry.

Analysis on Operating Information of Beer Manufacturing Industry

1. Industry profile

√ Applicable □ Not applicable

According to the National Bureau of Statistics of China, the cumulative beer production by beer enterprises above the designated size in China totaled 35.360 million kiloliters in 2025, down 1.1% year-on-year.

2. Production capacity

Existing capacity

√ Applicable □ Not applicable

Unit: 10,000 kl

Capacity under construction

√ Applicable □ Not applicable

Monetary unit: RMB10,000

Production capacity calculation standards

√ Applicable □ Not applicable

The capacity is calculated according to the time requirements of the beer production process, and the allocation of the brewery’s fixed assets.

3. Inventory at the end of the Reporting Period

√ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

Inventory impairment risk warning

□ Applicable √ Not applicable

4. Product profile

√ Applicable □ Not applicable

Monetary unit: RMB 10,000

Product grading standards

√ Applicable □ Not applicable

The Company’s products are classified into three segments based on consumer price, i.e., premium (priced at RMB 8 and above), mainstream (priced between RMB 4 and RMB 8, including 4 and excluding 8), and economy (priced below RMB 4).

Changes in product structure and business strategy

√ Applicable □ Not applicable

The Company proactively responds to intensifying market competition. Guided by the “Accelerate SAIL” strategy, the Company strengthened its focus on the “Big City” program to seize new growth opportunities. It has continuously optimized its brand and product mix, resulting in a steady increase in the proportion of premium beer sales. Additionally, the Company has accelerated the expansion of off-trade channel and advanced canning upgrades, precisely adapting to evolving consumption occasions and changing consumer habits.

5. Raw material purchase

(1). Purchase model

√ Applicable □ Not applicable

The Company adopts an approach of centralized procurement and decentralized order placement.

(2). Purchase amount

√ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

6. Sales

(1). Sales model

√ Applicable □ Not applicable

The Company’s sales model is primarily wholesale distribution, complemented by direct sales.

(2). Sales channel

√ Applicable □ Not applicable

Monetary unit: RMB 10,000

(3). Region

√ Applicable □ Not applicable

Monetary unit: RMB 10,000

Region division standards

√ Applicable □ Not applicable

The company divides its management region into three, i.e., Northwest, Central, and South.

(4). Information on distributors

√ Applicable □ Not applicable

Unit: Nr.

Remarks

□ Applicable √ Not applicable

Management of distributors

√ Applicable □ Not applicable

The Company places strong emphasis on continuously enhancing distributor capabilities through a tiered and dynamic management system. By integrating local resources based on market maturity, competitive landscape, and customer characteristics across different regions, the Company empowers distributors via systematic training programs to strengthen their marketing, operations, and management capabilities, thereby improving channel coverage and terminal control to drive regional business growth. For key accounts in major cities, the Company deepens collaboration models to reinforce market coordination. Together with these key distributors, the Company jointly formulates market development plans, integrating manpower, digital tools, product portfolios, and marketing resources to ensure synergy in major projects and achieve mutually beneficial outcomes.

(5). Information relating to online sales

□ Applicable √ Not applicable

Future online business strategy

√ Applicable □ Not applicable

The Company will further increase investments in instant delivery and continue to advance O2O models covering both home delivery and in-store services. Efforts will be made to deepen collaborations with core platforms and liquor specialty stores to sustain high-speed growth.

Douyin E-commerce will be positioned as a launchpad for new products. Through enhanced social media conten marketing and management of key opinion leader (KOL) networks, the Company will develop premium new products and bestsellers. Strategic partnerships with traditional e-commerce platforms will be upgraded to improve consumer experience through joint new product development, achieving resilient growth in this channel. The Company will also promptly expand into fresh food e-commerce platforms with upgraded management to capture high-speed growth. Furthermore, support for EB2B and RKA will continue to unlock business opportunities in lower-tier markets, refine the omni-channel network, and strengthen coverage in non-strongholds.

7. Analysis of the Company’s revenue and costs

(1). Disclosure of the compositions of the Company’s principal business by class

√ Applicable □ Not applicable

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

Remarks

√ Applicable □ Not applicable

The Company’s products are classified into three segments based on consumer price, i.e., premium (priced at RMB 8 and above), mainstream (priced between RMB 4 and RMB 8, including 4 and excluding 8), and economy (priced below RMB 4).

(2). Information on cost

√ Applicable □ Not applicable

Monetary unit: RMB

Remarks

□ Applicable √ Not applicable

8. Others

□ Applicable √ Not applicable

(V) Investment analysis

General analysis of external equity investment

□ Applicable √ Not applicable

1. Significant equity investment

□ Applicable √ Not applicable

2. Significant non-equity investment

□ Applicable √ Not applicable

3. Financial assets measured at fair value

√ Applicable □ Not applicable

Monetary unit: RMB

Note: Please refer to item XIII (III) of Section V for details.

Financial assets measured at fair value mainly include held-for-trading financial assets, derivative financial instruments (derivative financial assets and liabilities), and equit investment instruments of the Company. Please refer to item VII 2, 3, 18 and 34 of Section VIII for details.

Securities investment □ Applicable √ Not applicable

Explanation of securities investment □ Applicable √ Not applicable

Private equity investment □ Applicable √ Not applicable

Derivative investment √ Applicable □ Not applicable

(1). Derivative investments for hedging purposes during the reporting period

√ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

2025 Annual Report of Chongqing Brewery Co., Ltd

(2). Derivative investments for speculative purposes during the reporting period

□ Applicable √ Not applicable

Other remarks:

None.

4. Progress of major asset restructuring during the reporting period

□ Applicable √ Not applicable

(VI) Sales of major assets and equity interests

□ Applicable √ Not applicable

(VII) Analysis on major controlled subsidiaries and associate companies

√ Applicable □ Not applicable

Information on principal subsidiaries and associates whose impact on the company’s net profit exceeds 10%

√ Applicable □ Not applicable

Monetary unit: RMB

Acquisitions and disposals of subsidiaries during the reporting period √ Applicable □ Not applicable

Other remarks

□ Applicable √ Not applicable

(VIII) Structured entities controlled by the Company

□ Applicable √ Not applicable

VI. Discussion and Analysis on the Future Development of the Company

(I) Landscape and trend of the industry

√ Applicable □ Not applicable

After reaching peak production in 2013, China’s beer industry has been on the decline. By 2025, total industry output has declined by 30.1% compared to 2013. The industry has now entered a mature market phase,

characterized by the following:

1. Continued competition: The five largest beer companies in China now hold a combined market share exceeding 90%. While they continue to develop business in their respective strongholds, these major players face fierce competition in localized markets. Niche brands and imported beers also directly compete with the five major players in specific market niches.

2. Cost volatility: Various cost factors, including raw materials, packaging, energy, and labor, may fluctuate due to climate change, geopolitics and supply-demand dynamics, imposing higher requirements on operational efficiency.

3. Diversification: Consumer demand has expanded beyond traditional mainstream beers, leading to a greater emphasis on diversified products. Craft beer, specialty beer,fruit-flavored beer, alcohol-free and low-alcohol beer are gaining increasing attention from major beer companies.

4. High-quality development: Despite the significant decline in industry output, major players have achieved high quality development, demonstrating the resilience of China’s beer industry.

Regarding industry trends, the Company’s management remains steadfast in their belief that achieving high-quality development is both the objective and the path forward for China’s beer industry. Only by pursuing the path of high-quality development can beer companies achieve stable and sustained growth in the new normal of economic development.

(II) Development strategy of the Company

√ Applicable □ Not applicable

As a member of Carlsberg Group, the Company conducts business in alignment with the group’s overall strategy, aiming to become a successful, professional, and attractive brewing company in its respective market.

Carlsberg Group, with the Accelerate SAIL as its strategy, has set higher growth ambitions by increasing investments in and support for key growth drivers. These focus areas cover portfolio, geographies and capabilities, aimed at improving supply chain efficiency, developing a growth culture and continuing the well-embedded cost focus.

Accelerate SAIL focuses on five strategic levers:

1. Product portfolio: boosting premium growth; accelerating the Beyond Beer category.

2. Geographic focuses: driving growth in emerging markets; promoting profitable growth in stronghold markets.

3. Excellent execution: stepping up capacity building; promoting digital transformation.

4. Winning culture: building a growth culture; dedicated to Together Towards ZERO and Beyond.

5. Funding the journey: enhancing supply chain efficiency.

(III) Business plan

√ Applicable □ Not applicable

As of the date of disclosure of this report, the Company maintains a cautiously optimistic outlook on the macro economy and the beer industry in 2026. The Chinese beer industry is expected to benefit from a more favorable environment as the macro environment gradually improves and policies for stabilizing growth continue to be rolled out. However, challenges remain due to uncertainties such as intensified competition, cost volatility, and slowerthan-anticipated consumption recovery.

In 2026, the Company will continue to advance strategic projects under Accelerate SAIL. Leveraging its brand portfolio “International Premium Brands + Local Power Brands”, the Company will continue to drive product innovation, enhance operational efficiency, and strengthen organizational capabilities to achieve high-quality development.

(i) Market

In 2026, Carlsberg will continue to drive brand value through a combination of strategic marketing initiatives and product innovation. During the Spring Festival, the brand launched an integrated campaign with rapper SKAI IS YOUR GOD under the theme “Ushering a Smooth and Prosperous Year”, featuring a brand-specific jingle based on the song Grand Ambition. During the football season of 2026, the brand will continue its “Pursue good football, drink Carlsberg” campaign theme, reinforcing its association with football consumption occasions through integrated marketing. On the product front, Carlsberg will introduce its first 1-litre premium craft beer globally, alongside further market expansion of the Carlsberg Signature Alchemy Brew Series.

Tuborg will undergo a brand refresh in 2026, anchored by its “You Don't Have To” core proposition, which is designed to strengthen engagement with younger consumers. The brand will update its visual identity and packaging, and will appoint international brand ambassadors to enhance brand influence. While continuing to feature rap, its music marketing will expand into broader genres including K-pop, with music festivals and themed events to reach target audiences. On the product front, the brand will continue to focus on flavor innovation and packaging upgrades.

K1664 will continue to deepen its presence in the super premium market, further expand its “Blue Hour” consumption occasion, and, explore new lifestyle settings, including human-pet interaction, with the launch of innovative products such as pet wellness water. New product series will be introduced to address growing consumer demand for health, flavor and quality. The brand will also experiment with emerging communication formats, including micro-variety shows and AIGC-generated content, while enhancing entertainment channel experience through events such as the “1664 Blue Hour Bistro.”

Wusu will build its annual brand communication around the “NONG” IP. For the Spring Festival, the brand launched an “NONG People, NONG Luck” campaign featuring brand ambassador Adam Fan, together with an 8.88-litre limited-edition product. The brand’s 40th anniversary will serve as a platform to reinforce consumer awareness of its “Xinjiang DNA”. On the product front, Wusu will continue to introduce strategic new products, further refining its premium and differentiated product portfolio.

The Chongqing brand will continue to deepen its hold on the local market through a mix of product innovation and brand-driven consumer engagement. It will expand its 1-litre craft-beer line, with product upgrades focused on quality and experience. During the Spring Festival, the brand collaborated with Xu Jinjiang to launch brand communication content. Throughout the year, it will partner with Jordan Chan and Xiang Yuwang on localised communication campaigns, while continuing to roll out various consumer activities.

Wind Flower Snow Moon will strengthen its presence across a wider range of leisure occasions under the “Care-Free” brand philosophy. It will improve the on-trade experience while expanding the off-trade channel. Building on its Four Seasons Craft series and tea-flavored beers, the brand will keep introducing new products. It will also use

AIGC for content distribution and draw on intangible cultural heritage and the traditional 24 solar terms to sharpen its cultural identity.

The Dali brand aims to strengthen its local market presence across four dimensions: products, channels, creativity and technology. On the product front, V8 will serve as the core SKU, while the 1L product line will be used to rol out specialty flavors and enrich consumption occasions. The brand plans to tie its communication campaigns to local events, including the Water-Splashing Festival, the Torch Festival and the Yunnan Super League, and will continue to deploy AIGC in content communication.

The craft-beer business will continue to target a broader consumer base, expand its off-trade presence through canned-product innovation and partnerships with key accounts, and raise brand awareness via media partnerships, social-media campaigns and beer festivals.

(ii) Sales

In 2026, the Company will continue to pursue its strategy of channel deepening and innovation-driven growth.

Off-trade will remain a key focus. Both traditional and modern trade channels will advance with broader distribution, product mix optimization and digital and intelligent solutions. Emerging channels will keep growing faster. The 1-litre format will be the main lever for premiumization, with a wider range of flavors to cater to different drinking occasions.

On-trade will continue to focus on key accounts, push deeper into dining occasions, strengthen O2O integration and engage younger consumers, with non-alcoholic beverages and craft beers serving as key growth priorities.

The Big City program will further strengthen channel control and network coverage, while improving the efficiency of resource allocation.

Digital and intelligent solutions will reach more points of sale and consumers, steadily improving operationa efficiency and the effectiveness of resource investment, thereby supporting steady business growth.

(iii) Supply chain

In 2026, the Company’s supply-chain agenda will focus on a range of areas: capacity, flexible manufacturing, safety management, taste assessment, low carbon, and operational excellence.

In terms of capacity, the Company will ramp up production of 1L products, easing bottlenecks and trimming logistics costs. It will complete the initial planning of the flexible supply chain, lowering the minimum batch size and effectively controlling costs for small-batch production.

On the safety front, the Company will continue to build a zero-accident culture, with an emphasis on caring leadership to further raise employee safety awareness and drive towards the goal of zero accidents.

The company will continue to build its taste assessment capabilities, further improving assessment skills and process control across all breweries.

A pilot zero-carbon brewery will be launched, leveraging energy storage, PV, electric boilers, heat pumps and biomass boilers to drive lower carbon transition.

The Carlsberg Excellence Program will continue to extend across the end-to-end value chain, boosting overall operational efficiency.

(iv) ESG

In 2026, Carlsberg Group launched “Brewing Tomorrow”, its updated Environmental, Social and Governance (ESG) programme, for a new phase in its business development. Centred on four pillars: Cutting Carbon, Protecting Nature, Inspiring Choice and Empowering People, the ESG program focuses on the issues that matter most to business and to society, promoting responsible business practices and high-quality growth.

Compared with its previous ESG programme, Together Towards Zero and Beyond, the new “Brewing Tomorrow” programme has set and updated a series of interim targets towards 2032, while maintaining the 2040 target of a net zero value chain. These include: 90% reduction in emissions from own operations by 2032, 100% recyclable, reusable or renewable packaging, all global alcohol brands carrying e-labels, and 42% women in senior leadership roles.

As a member of Carlsberg Group, Chongqing Brewery will take the Brewing Tomorrow ESG program as its guide and, building on its existing practices, work with stakeholders to translate those targets into Chinese reality, thereby underpinning steady long-term operations and sustainable growth, and living up to its own purpose of “brewing for a better today and tomorrow”.

(v) Talent and cultural development

In 2026, the Company will continue to strengthen its organizational capabilities and talent pipelines by systematically advancing three priorities in line with its business strategy and organizational development: improving organizational effectiveness, developing talent, and transforming the HR function.

Organizational effectiveness. The Company will continue to build organizational capabilities to ensure alignment with strategic goals. The “Growth Culture” will be further embedded in performance management, talent selection and talent development, while performance communication mechanisms will be steadily enhanced to foster a high-performance culture. At the same time, the Company will step up AI training and application to improve operational efficiency and cross-functional collaboration.

Talent development. The Company will focus on attracting and cultivating young talent. It will build a talent pipeline for critical roles through the Tiger Project and leadership programs for mid-level and frontline managers, and will support the growth of high-potential employees through cross-functional learning and practical assignments.

HR function. The Company will continue to transform its HR function into strategic business partners, strengthening the business support capabilities of its BP teams. AI technologies will be used to further digitize employee services and operational processes, improving efficiency at shared service centers. The Company will also advance digital recruitment to enhance the efficiency and quality of talent acquisition.

HR management in 2026 will stay focused on organizational development and people. The talent development system will be further refined to support steady, long-term growth of the Company.

(vi) Investor relations management

In 2026, the Company will engage with investors regularly through earnings briefings, broker meetings, reverse roadshows and brewery visits, to enhance disclosure transparency, strengthen investors’ understanding of its strategy and operations, and further cement its credibility in the capital markets.

(IV) Possible risks exposure

√ Applicable □ Not applicable

1. The consumer market is still in a recovery phase and faces uncertainties.

2. Raw materials, packaging materials, energy, and labor, may experience significant volatility due to climate change, geopolitical tensions, supply and demand dynamics, etc.

3. In the Company’s market areas, increased investment by some national beer enterprises is intensifying market competition. Meanwhile, emerging niche beer brands may accelerate their penetration and expansion, making the mid-to-high-end beer market even more competitive.

4. Any changes in national tax policies could result in adjustments to the Company’s applicable corporate income tax rate, creating uncertainty for its operating performance.

(V) Others

□ Applicable √ Not applicable

1. Explanation for the Company’s failure to disclose as per guidelines due to inapplicable guidelines, state or business secrets or other special reasons

□ Applicable √ Not applicable

SECTION IV CORPORATE GOVERNANCE, ENVIRONMENTAL AND SOCIAL RESPONSIBILITY

I. Information on Corporate Governance

√ Applicable □ Not applicable

In strict accordance with the Company Law, the Securities Law, the Code of Corporate Governance for Listed Companies, the Guidelines for Articles of Association of Listed Companies, the Rules for Listing of Stocks on Shanghai Stock Exchange and other applicable laws and regulations, the Company amended its Articles of Association, Rules of Procedure for the General Meeting of Shareholders, Rules of Procedure for the Board of Directors, Implementation Rules for the Audit Committee and other internal governance documents, and decided to no longer have a Board of Supervisors or supervisors, with the Audit Committee of the Board exercising the functions of the Board of Supervisors as stipulated in the Company Law, continuously improving the company's corporate governance structure. It also formulated the Market Value Management System and the Public Opinion Management Measures, further improved its internal management and control systems, consistently conducted corporate governance initiatives, and promoted standardized operation to improve its corporate governance during the reporting period.

1. About shareholders and the General Meeting of Shareholders

During the reporting period, the Company convened one annual general meeting of shareholders, and three extraordinary general meetings of shareholders. In strict accordance with the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders, the Company adjusted and standardized the organizational conduct of the General Meeting of Shareholders and enhanced the efficiency of the meetings, to ensure that all shareholders, minority shareholders in particular, could fully exercise their own rights.

2. About the directors and the Board

During the reporting period, the Company convened eight meetings of the Board, seven meetings of the Audit Committee, one meeting of the Strategy and Development Committee, two meetings of the Remuneration and Appraisal Committee, two meetings of the Nomination Committee, and eight specialized meetings of independent directors. The Board of Directors carried out necessary deliberation and decision-making procedures for significant matters within the scope of its authority, and carefully implemented all resolutions passed at the General Meeting of Shareholders in strict accordance with the Articles of Association, the Rules of Procedure for the Board of Directors, and the Independent Director System. Each special committee, with clear responsibilities, has effectively facilitated the standard operation and informed decision-making of the Board of Directors, fully leveraging the role of independent directors within these committees. Specialized meetings of independent directors reviewed and granted pre-approval of the Company’s major matters before submitting to the Board of deliberation and maintained continuous attention to and follow-up on these matters, significantly enhancing the effectiveness of independent directors’ performance of duties. During the reporting period, the Company completed the reelection of its Board of Directors. The members of the Board of Directors possess extensive expertise in the beer industry, along with knowledge in areas such as accounting, finance, and law. Their diverse backgrounds enable them to offer professional and constructive advice for significant decisions of the Company. Moreover, they have diligently fulfilled their responsibilities to safeguard the interests of the Company and all shareholders. During the reporting period, the Company was awarded with the “Best Practice Case for Boards of Directors of Listed Companies” and the “Best Practice Case for Internal Control of Listed Companies” by the China Association for Public Companies, reflecting strong capital market recognition for its standardized governance, compliance and value creation.

3. About relationship between the controlling shareholder and the listed company:

Throughout the reporting period, there were no instances of non-operating fund occupation by the controlling shareholder of the Company, nor did the listed company provide any external guarantees to the controlling shareholder.

4. About stakeholders

The Company fully respected and safeguarded the legitimate rights and interests of the stakeholders, including banks and other creditors, employees, consumers, and suppliers. It actively engaged in cooperative efforts, while ensuring a balance among the stakeholders in the principle of mutual benefit, honesty and good faith, so as to jointly promote the sustainable, sound and harmonious development of the Company.

5. About related party transactions

During the reporting period, the Company, in strict compliance with applicable laws, regulations, and regulatory documents, improved its internal control system, standardized related-party transactions, and urged the controlling shareholder and actual controller to honor their commitments. The Company followed necessary decision-making procedures for its related-party transactions which were submitted to the Board for deliberation only after obtaining the approval of the independent directors. The equity and fairness of related party transactions were ensured, with no damage to the interests of investors, minority investors in particular.

6. About information disclosure and transparency

During the reporting period, the Company actively strengthened communication with CSRC and the stock exchange, and disclosed its periodic reports and interim announcements in a true, accurate, complete and timely manner in strict accordance with the requirements of CSRC and SSE, and the Management System for Information Disclosure of the Company, ensuring that all shareholders, minority shareholders in particular, could equally and timely access the information of the Company and assess risks. The Company received an A-rating for its information disclosure from Shanghai Stock Exchange for the 2024-2025 period.

7. About management of investor relations

During the reporting period, the Company maintained an open communication channel with investors by addressing investor hotline, hosting investor research visits, and attending investor conference calls, brokerage strategy meetings, and reverse roadshows, so that investors can have accurate and timely access to the Company’s information and can exercise their legal rights. The Company established a regular practice of holding performance briefings. Throughout the year, four performance briefings were held regarding periodic reports, which greatly enhanced the communication with investors. The Company’s 2024 Annual Results Presentation was recognized as the “Best Practice for 2024 Annual Results Presentations of Listed Companies” by the China Association of Public Companies.

8. About sustainable development

During the reporting period, the Company disclosed its latest ESG report. Since launching its ESG program— “Together Towards ZERO and Beyond” in 2022, the Company has consistently delivered remarkable results in carbon reduction, water conservation, responsible drinking, and community engagement. These efforts have contributed to a steady progression towards high-quality and sustainable development. During the reporting period, the Company maintained its ESG rating of AA from MSCI, a leading international rating agency.

9. About management of inside information

The Company implemented the registration and filing of insiders with inside information in strict accordance with the requirements of the CSRC and the SSE, and its Registration and Management of Insiders with Access to Inside Information and Rules for Internal Reporting of Key Information. In addition, the Company conducted relevant training to effectively prevent insider trading and other securities violations.

Where there is any material difference between the requirements of the Company’s governance and laws, administrative regulations and CSRC requirements on the governance of listed companies, the reasons for such difference shall be provided

□ Applicable √ Not applicable

II. Specific measures by the controlling shareholder and actual controller of the Company to ensure the independence of the Company’s assets, personnel, finance, organization and business, as well as the solutions, work progress and follow-up work plans adopted where the Company’s independence is affected

□ Applicable √ Not applicable

Same or similar business conducted by controlling shareholder, actual controller and other entities under their control as conducted by the Company, as well as the impact of intra-industry competition or major changes in intraindustry competition on the Company, the measures adopted, the progress of the resolution and the follow-up plans √ Applicable □ Not applicable

The Company completed the major asset restructuring at the end of 2020. All beer assets and businesses in Mainland China (excluding the listed company and the subsidiaries controlled by the listed company) previously controlled by Carlsberg was injected into the listed company. Carlsberg no longer retains control over any beer assets or businesses (excluding the listed company and the subsidiaries controlled by the listed company) in the Chinese

Mainland, nor does it directly or indirectly engage in businesses that compete with the listed company through entities under its control.

During the restructuring, Carlsberg and Carlsberg Breweries had respectively made commitments to prevent intraindustry competition: (I) They have reaffirmed their obligations to avoid inter-industry competition as the actua controller and controlling shareholder of the listed company. (II) To comprehensively prevent potential future interindustry competition, Carlsberg and Carlsberg Breweries have voluntarily made additional arrangements concerning the equity interests of non-controlling subsidiaries of Carlsberg that were not included in the restructuring and are involved in beer assets and businesses in Mainland China. For details, please refer to “(I) Commitments by relevant parties such as actual controllers, shareholders, related parties, acquirers and the Company during or subsisting to the reporting period” under Section V.

III. Particulars of Directors, and Senior Management

√ Applicable □ Not applicable

Unit: Share

2025 Annual Report of Chongqing Brewery Co., Ltd

2025 Annual Report of Chongqing Brewery Co., Ltd

Other remarks

□ Applicable √ Not applicable

(II) Positions of directors and senior management in office and resigned during the reporting period 1. Positions in shareholder’s entity

2025 Annual Report of Chongqing Brewery Co., Ltd

2. Positions in other entities

√ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

(III) Remuneration of directors and senior management √ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

2025 Annual Report of Chongqing Brewery Co., Ltd

(IV) Changes of directors and senior management of the Company

√ Applicable □ Not applicable

(V) Explanation on penalties by securities regulators in the past three years □ Applicable √ Not applicable

(VI) Others

□ Applicable √ Not applicable

IV. Performance of Duties by Directors

(I) Attendance of Board meetings and General Meetings of Shareholders by directors

2025 Annual Report of Chongqing Brewery Co., Ltd

□ Applicable √ Not applicable

(II) Objections raised by directors on relevant matters of the Company

□ Applicable √ Not applicable

(III) Others

□ Applicable √ Not applicable

V. Special Committees under the Board of Directors

√ Applicable □ Not applicable

(1). Members of special committees under the Board of Directors

Note: In May 2025, the Company underwent a term renewal and formed the specialized committees of the 11th Board of Directors. Prior to this, the members of the Audit Committee of the 10th Board were Yuan Yinghong (Chairperson), Sheng Xuejun, Zhu Qianyu, Gavin Stuart Brockett, and Lyu Yandong. The composition of the other specialized committees remained the same as that of the 10th Board.

(2). Seven meetings convened by the Audit Committee during the reporting period

(3). Two meetings convened by the Nomination Committee

2025 Annual Report of Chongqing Brewery Co., Ltd

(4). Two meetings convened by the Remuneration and Appraisal Committee during the reporting period

2025 Annual Report of Chongqing Brewery Co., Ltd

(5). One meeting convened by the Strategy and Development Committee during the reporting period

(6). Particulars of objections

□ Applicable √ Not applicable

VI. Explanation on the Risks of the Company Found by the Audit Committee

□ Applicable √ Not applicable

The Audit Committee had no objections to the matters subject to supervision during the reporting period.

VII. Employees of the Parent Company and Major Subsidiaries as at the End of the Reporting Period

(I) Employees

(II) Remuneration policy

√ Applicable □ Not applicable

During the reporting period, the beer industry continued to face challenges from sustained market headwinds and weak consumer sentiment. In response, the Company formulated a competitive remuneration policy by reference to comparable market-based remuneration mechanisms, with a view to attracting talent, nurturing and maintaining the core workforce, and continuing to motivate all employees to weather the difficult period together. By promoting a growth culture and strengthening result orientation, the Company ensured efficient execution, continuously improved operational efficiency, and reinforced its core competitive advantages.

The Company’s employee remuneration policy is based on the Company’s economic performance and business results. The salary growth ratio for all employees is determined based on the achievement of the Company’s annua beer production volume, sales volume and profit targets, as well as market salary conditions. Management personnel at the middle level and above are subject to a year-end incentive assessment linked to the Company’s performance. Production workshops are subject to Key Performance Indicator (KPI) assessments that take into account product quality, various consumption indicators and production efficiency. Employee salaries consist of base salary, performance-based salary and year-end bonus.

(III) Training programs

√ Applicable □ Not applicable

In 2025, the Company’s employee training totaled nearly 280,000 hours, with a coverage rate of 100%, achieving full employee empowerment.

In terms of online learning, the Calsberg E-learning Platform continued to serve as a key learning channel, recording a total of 41,526 learning hours throughout the year, with a participation rate of 88%. The platform now hosts 3,704 courses covering areas such as professional competencies, general skills, and leadership, leveraging digital learning to accelerate employee development.

On-site training focused on enhancing job-related competencies, with activities such as professional skills training sessions, cross-departmental workshops, and thematic training camps designed to strengthen business execution and cross-functional collaboration. Leadership development programs were carried out in a tiered manner for senior, middle, and frontline management, integrating internal and external expert resources to establish a systematic development framework. In addition, an internal trainer team was cultivated to facilitate the sharing of managemen experience.

Through initiatives such as mentorship, challenging projects, and short-term dispatches, the principles of “empower, support and grow our people” were integrated throughout the employee development journey, motivating employees to push boundaries and create value in real-world settings.

(IV) Labor outsourcing

√ Applicable □ Not applicable

VIII. Proposal on Profit Distribution or Conversion of Capital Reserve into Capital Stock

(I) Formulation, implementation or adjustment of cash dividend policy

√ Applicable □ Not applicable

In accordance with the provisions of the Company Law of the People’s Republic of China, the China Accounting Standards for Business Enterprises, and the Articles of Association, and taking into account the needs of business development and the interests of shareholders, the following distribution plan is proposed:

The Company intends to distribute cash dividends to all shareholders based on the total share capital registered at the equity registration date for the 2025 annual profit distribution. Cash dividends of RMB 1.20 (tax inclusive) per share will be distributed. As of December 31, 2025, the Company’s total share capital was 483,971,198 shares and a total of cash dividend of RMB 580,765,437.60 (tax inclusive) will be distributed on such basis. Previously, for the 2025 interim period, the Company distributed a cash dividend of RMB 1.30 (tax inclusive) per share to all shareholders, totaling RMB 629,162,557.40 (tax inclusive). Accordingly, the total cash dividend for 2025 is RMB 1,209,927,995.00 (tax inclusive), accounting for 98.30% of the net profit attributable to shareholders of the Company in 2025.

If there is any change in the Company’s total share capital before the equity registration date for the 2025 annual profit distribution, the distribution ratio per share will remain unchanged, with corresponding adjustments to th total distribution amount. The above profit distribution plan is subject to approval by the Company’s shareholders meeting before implementation.

(II) Special description on cash dividend policy

√ Applicable □ Not applicable

(III) Where the parent company has a positive profit available for distribution to shareholders with no cash profit distribution plan proposed during the reporting period, the Company shall disclose the reasons therefor and the purpose and utilization plan of such undistributed profit in detail □ Applicable √ Not applicable

(IV) Plans on profit distribution or conversion of capital reserve to increase share capital in the current reporting period

√ Applicable □ Not applicable

Monetary unit: RMB

2025 Annual Report of Chongqing Brewery Co., Ltd

(V) Cash dividend distribution in the last three accounting years

√ Applicable □ Not applicable

Monetary unit: RMB

IX. The Company’s Equity Incentive Scheme, Employee Stock Ownership Plan or Other Employee Incentive Measures and Their Impact

(I) Relevant incentive matters disclosed in interim announcements without progress or change in

□ Applicable √ Not applicable

(II) Incentives not disclosed in interim announcements or with subsequent development

Equity incentives

□ Applicable √ Not applicable

Other remarks □ Applicable √ Not applicable

Employee stock ownership plan □ Applicable √ Not applicable

Other incentive measures

□ Applicable √ Not applicable

(III) Equity incentives granted to directors and senior management during the reporting period

□ Applicable √ Not applicable

(IV) Establishment and implementation of evaluation mechanism and incentive mechanism for senior management during the reporting period

√ Applicable □ Not applicable

According to the needs of establishing a modern enterprise system, the Company implements the appointment system for senior executives and has established a fair and transparent performance evaluation and incentive mechanism, urging senior executives to fulfill their obligations of integrity and diligence, clarifying their rights and responsibilities, and giving full play to their enthusiasm and creativity. The Audit Committee of the Company supervises the daily performance of senior executives in accordance with the Articles of Association and the Implementation Rules of the Audit Committee. The Remuneration and Appraisal Committee of the Company conducts year-end evaluation of senior executives. Performance bonuses are determined based on the evaluation against the assessment targets approved by the Remuneration and Appraisal Committee and the Board of Directors, and are paid after approval by the Board.

X. Development and Implementation of Internal Control Systems during the Reporting Period √ Applicable □ Not applicable

The Company evaluated and revised its business-related control processes and provided training on risk management and internal control policies to its key internal control personnel and relevant process owners.

The internal audit department continuously monitored the effectiveness of internal controls through the internal control self-assessment process. In accordance with the annual audit plan, it conducted specialized audits on the following processes: the procure-to-pay and travel expense processes; the engineering and maintenance management processes; the post-implementation processes of Phase 2 of the ERP system (covering th international brands and Central China business units); the sales and marketing expense processes; the business outsourcing (finance and information systems) processes ; and the financial archive management processes.

Description of significant defects in the internal control during the reporting period

□ Applicable √ Not applicable

XI. Management and Control of Subsidiaries During the Reporting Period

√ Applicable □ Not applicable

The Company consistently performed self-assessment of the internal control effectiveness within its subsidiaries, in accordance with the corporate internal control system. Additionally, the Company ensured internal control oversight of its subsidiaries by conducting specialized process audits.

The Yongzhou Branch of Hunan Chongqing Brewery Guoren Co., Ltd. ceased operations. Accordingly, the Company no longer included this branch within the scope of its internal control self-assessment for supervision and management in 2025.

Risk alert regarding abnormalities in the management and control of subsidiaries

□ Applicable √ Not applicable

XII. Explanation on the Audit Report on Internal Control

√ Applicable □ Not applicable

Pan-China Certified Public Accountants LLP (Special General Partnership), the accounting firm engaged by the Company, has conducted an audit on the effectiveness of internal control related to the Company’s financial

XIII. Rectification of Issues Found in Self-Inspections as per the Special Campaign on Governance of Listed Companies

report and issued an unqualified audit report. For details, please refer to the 2025 Internal Control Audit Report of Chongqing Brewery Co., Ltd., which was published on the Shanghai Stock Exchange website (www.sse.com.cn) on the same day.

Disclosure of internal control audit report: Yes.

Type of opinion: Unqualified opinion.

Not applicable

XIV. Environmental information of listed companies and their major subsidiaries that are included in the list of enterprises required to disclose environmental information in accordance with the law √ Applicable □ Not applicable

2025 Annual Report of Chongqing Brewery Co., Ltd

2025 Annual Report of Chongqing Brewery Co., Ltd

Other remarks

√ Applicable □ Not applicable

Yongzhou Branch of Hunan Chongqing Beer Guoren Co., Ltd., Carlsberg Brewery (Foshan) Co., Ltd., and Xinjiang Wusu Brewery (Korla) Co., Ltd. have not yet been included in the list of enterprises required to disclose environmental information in accordance with the law.

XV. Work on Social Responsibility

(I) Disclosure of the social responsibility report, sustainable development report or ESG report separately √ Applicable □ Not applicable

For details, please refer to the 2025 ESG Report of Chongqing Brewery Co., Ltd. disclosed by the Company on the website of Shanghai Stock Exchange (www.sse.com.cn) on the very day.

(II) Specific work on social responsibility √ Applicable □ Not applicable

Specific description

□ Applicable √ Not applicable

XVI. Specific Work on Consolidating and Expanding the Achievements of Poverty Alleviation and Rural Revitalization

√ Applicable □ Not applicable

Specific description

□ Applicable √ Not applicable

XVII. Others

□ Applicable √ Not applicable

SECTION V IMPORTANT MATTERS

I. Performance of Commitments

(I) Commitments by relevant parties such as actual controllers, shareholders, related parties, acquirers and the Company during or subsisting to the reporting period

√ Applicable □ Not applicable

(II) Explanation of whether the Company has fulfilled its original profit forecast in relation to assets or projects, where there is a profit forecast for such assets or projects of the Company and the reporting period falls within the profit forecast period, and the reasons thereof

□ Fulfilled □ Not Fulfilled √ Not Applicable

(III) Fulfillment of performance commitment

□ Applicable √ Not applicable

Changes in performance commitment

□ Applicable √ Not applicable

Others

□ Applicable √ Not applicable

II. Funds Occupied by Controlling Shareholder and Other Related Parties for Nonoperational Purposes

During the Reporting Period

□ Applicable √ Not applicable

III. Guarantees in Violation of Laws and Regulations

□ Applicable √ Not applicable

IV. Explanation of the Board of the Company on the “Non-standard Audit Report” Prepared by the Accounting Firm

□ Applicable √ Not applicable

V. Analysis and Explanation of the Company on the Reasons and Impacts of Changes in Accounting Policies and Estimates or Correction of Material Accounting Errors

(I) Analysis and explanation of the Company on the reasons and impacts of changes in accounting policies and estimates

□ Applicable √ Not applicable

(II) Analysis and explanation of the Company on the reasons and impacts of correction of material accounting errors

□ Applicable √ Not applicable

(III) Communication with previous accounting firm

□ Applicable √ Not applicable

(IV) Approval procedures and other information

□ Applicable √ Not applicable

VI. Engagement and Dismissal of Accounting Firm

Monetary unit: RMB 10,000

Remarks on engagement and dismissal of accounting firms

√ Applicable □ Not applicable

Pursuant to the “Proposal on Engagement of Auditor for 2025 Annual Audit and Internal Control Audit” deliberated and approved by the Company’s shareholders’ meeting of 2024, the Company intends to pay remuneration of RMB 1.90 million for annual audit and remuneration of RMB 1.30 million for internal control audit, totaling RMB 3.20 million, to Pan-China Certified Public Accountants LLP.

Explanation of the change in accounting firms during the audit period

□ Applicable √ Not applicable

Explanation of the decrease in audit fees by more than 20% (inclusive) compared with the preceding period

□ Applicable √ Not Applicable

VII. Risk of Delisting

(I) Causes of warning of delisting

□ Applicable √ Not applicable

(II) Corresponding measures intended by the Company

□ Applicable √ Not applicable

(III) Circumstances and reasons for termination of listing

□ Applicable √ Not applicable

VIII. Matters Relating to Bankruptcy and Restructuring

□ Applicable √ Not applicable

IX. Material Litigation and Arbitration

√ The Company had material litigation and arbitration during the year.

□ The Company did not have material litigation and arbitration during the year.

(I) Litigation and arbitration disclosed in interim announcements without subsequent development

√ Applicable □ Not applicable

(II) Litigation and arbitration not disclosed in interim announcements or with subsequent development □ Applicable √ Not applicable

(III) Other remarks

□ Applicable √ Not applicable

X. Suspected Violation of Laws and Regulations, Punishment and Rectification of the Listed Company and its Directors , Senior Management, Controlling Shareholder and Actual Controller □ Applicable √ Not applicable

XI. Explanation on the Credibility of the Company and its Controlling Shareholder and Actual Controller During the Reporting Period

□ Applicable √ Not applicable

XII. Material Related Transactions

(I) Related transactions in relation to daily operations

1. Matters disclosed in interim announcements without progress or changes in subsequent implementation

√ Applicable □ Not applicable

2. Matters disclosed in interim announcements with development or changes in subsequent implementation □ Applicable √ Not applicable

3. Matters not disclosed in interim announcements □ Applicable √ Not applicable

(II) Related transactions in relation to the acquisition and disposal of assets or equity 1. Matters disclosed in interim announcements without progress or changes in subsequent implementation □ Applicable √ Not applicable

1. Matters disclosed in interim announcements without progress or changes in subsequent implementation □ Applicable √ Not applicable

2. Matters disclosed in interim announcements with development or changes in subsequent implementation □ Applicable √ Not applicable

3. Matters not disclosed in interim announcements □ Applicable √ Not applicable

4. Where an agreement on performance is involved, the performance achievements during the reporting period shall be disclosed □ Applicable √ Not applicable

(III) Material related-party transactions in relation to joint external investment 1. Matters disclosed in interim announcements without progress or changes in subsequent implementation □ Applicable √ Not applicable

1. Matters disclosed in interim announcements without progress or changes in subsequent implementation □ Applicable √ Not applicable

2. Matters disclosed in interim announcements with development or changes in subsequent implementation □ Applicable √ Not applicable

3. Matters not disclosed in interim announcements □ Applicable √ Not applicable

(IV) Balances due to or from related parties

1. Matters disclosed in interim announcements without progress or changes in subsequent implementation □ Applicable √ Not applicable

2. Matters disclosed in interim announcements with development or changes in subsequent implementation □ Applicable √ Not applicable

3. Matters not disclosed in interim announcements

□ Applicable √ Not applicable

(V) Financial business between the Company and related financial institutions, the Company’s controlled financial institutions or related parties □ Applicable √ Not applicable

(VI) Others

□ Applicable √ Not applicable

XIII. Material Contracts and the Performance thereof

(I) Custody, contracting and leasing

1. Custody

□ Applicable √ Not applicable

2. Contracting □ Applicable √ Not applicable

3. Leasing □ Applicable √ Not applicable

(II) Guarantee □ Applicable √ Not applicable

(III) Entrusted management of cash assets

1. Entrusted financial management

(1) Overview of entrusted financial management

√ Applicable □ Not applicable

Monetary unit: RMB

Others

□ Applicable √ Not applicable

(2) Entrusted financial management on an individual basis

√ Applicable □ Not applicable

Monetary unit: RMB

Others

□ Applicable √ Not applicable

(3) Provision for impairment of entrusted financial management □ Applicable √ Not applicable

2. Entrusted loans

(1) Overview of entrusted loans □ Applicable √ Not applicable

Others □ Applicable √ Not applicable

(2) Entrusted loans on an individual basis □ Applicable √ Not applicable

Others □ Applicable √ Not applicable

(3) Provision for impairment of entrusted loans □ Applicable √ Not applicable

3. Others □ Applicable √ Not applicable

(IV) Other material contracts □ Applicable √ Not applicable

XIV. Description of the Usage of the Funds Raised □ Applicable √ Not applicable

XV. Description of Other Significant Matters with a Material Impact on the Value Judgments and Investment Decisions by Investors □ Applicable √ Not applicable

SECTION VI CHANGES IN SHARES AND PARTICULARS OF SHAREHOLDERS

I. Changes in Share Capital

(I) Table of changes in shares

1. Table of changes in shares

There was no charge in the total number of shares and share capital structure of the Company during the reporting period.

2. Description of changes in shares □ Applicable √ Not applicable

3. Impact of changes in shares on financial indicators such as earnings per share and net assets per share for the latest year and the latest period (if any) □ Applicable √ Not applicable

4. Other information deemed necessary for disclosure by the Company or required so by securities regulators □ Applicable √ Not applicable

(II) Changes in shares subject to trading restrictions □ Applicable √ Not applicable

II. Issuance and Listing of Securities

(I) Issuance of securities during the reporting period

□ Applicable √ Not applicable

Description of the issuance of securities during the reporting period (please specify the respective bonds with different interest rates in the duration): □ Applicable √ Not applicable

(II) Changes in the total number of shares, shareholding structure and the structure of assets and liabilities of the Company □ Applicable √ Not applicable

(III) Existing internal employee shares

□ Applicable √ Not applicable

III. Shareholders and Actual Controller

(I) Total number of shareholders

(II) Table of shareholding of top ten shareholders and top ten holders of outstanding shares (or shareholders not subject to trading restrictions) as at the end of the reporting period

Unit: Share

2025 Annual Report of Chongqing Brewery Co., Ltd.

Shareholders with shareholding of over 5%, top ten shareholders, and top ten shareholders not subject to trading restrictions participating in share lending and refinancing

□ Applicable √ Not applicable

Changes in top ten shareholders and top ten shareholders not subject to trading restrictions due to securities lending/return compared to the previous period

□ Applicable √ Not applicable

Number of shares held by top ten shareholders subject to trading restrictions and the trading restrictions □ Applicable √ Not applicable

(III) Strategic investors or ordinary legal persons who became top ten shareholders due to placing of new shares

□ Applicable √ Not applicable

IV. Controlling Shareholder and Actual Controller

(I) Controlling shareholder

1. Legal person

√ Applicable □ Not applicable

2. Natural person

□ Applicable √ Not applicable

3. Special explanation on the absence of controlling shareholders in the Company

□ Applicable √ Not applicable

4. Explanation on the changes in controlling shareholders during the reporting period

□ Applicable √ Not applicable

5. Block diagram of ownership and control relationship between the Company and its controlling shareholder

√ Applicable □ Not applicable

(II) Actual controller

1. Legal person

√ Applicable □ Not applicable

2. Natural person

□ Applicable √ Not applicable

3. Special explanation on the absence of actual shareholders in the Company

□ Applicable √ Not applicable

4. Explanation on the changes in control of the Company during the reporting period

□ Applicable √ Not applicable

5. Block diagram of ownership and control relationship between the Company and its actual controller

√ Applicable □ Not applicable

6. Control over the Company by actual controller by way of trust or other means of asset management

□ Applicable √ Not applicable

(III) Other description of controlling shareholder and actual controller □ Applicable √ Not applicable

V. Number of Shares Pledged by the Company’s Controlling Shareholder or Largest Shareholder and its Persons Acting in Concert Exceeding 80% of their Shareholding in the Company □ Applicable √ Not applicable

VI. Other Corporate Shareholders with Shareholding of Over 10%

√ Applicable □ Not applicable

VII. Description of Restrictions on Shareholding Reduction □ Applicable √ Not applicable

VIII. Implementation of Share Repurchase During the Reporting Period

□ Applicable √ Not applicable

IX. Information On Preferred Shares

□ Applicable √ Not applicable

SECTION VII PARTICULARS OF BONDS

I. Corporate Bonds (Including Enterprise Bonds) and Debt Financing Instruments for Nonfinancial Enterprises □ Applicable √ Not applicable

II. Convertible Bonds of the Company

□ Applicable √ Not applicable

SECTION VIII FINANCIAL REPORT

I. Auditor’s Report

√ Applicable □ Not Applicable

Auditor’s Report

PCCPAAR [2026] No. 8-19

To the Shareholders of Chongqing Brewery Co., Ltd.:

I. Audit Opinion

We have audited the financial statements of Chongqing Brewery Co., Ltd. (the “Company”), which comprise the consolidated and parent company balance sheets as at December 31, 2025, the consolidated and parent company income statements, consolidated and parent company cash flow statements, and consolidated and parent company statements of changes in equity for the year then ended, as well as notes to financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2025, and its financial performance and its cash flows for the year then ended in accordance with China Accounting Standards for Business Enterprises.

II. Basis for Audit Opinion

We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under those standards are further described in the Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the “Chinese Certified Public Accountant Independence Standard No. 1 – Independence Requirements for Financial Statement Audit and Review Engagements” and China Code of Ethics for Certified Public Accountants, and we have fulfilled other ethical responsibilities. In conducting our audit, we have complied with the independence requirements applicable to audits of public interest entities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

III. Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not express a separate opinion on these matters.

(I) Revenue recognition

1. Key audit matters

Please refer to item V 34 and VII 61 of this section for details. The Company’s operating revenue is mainly from beer business. In 2025, the operating revenue of the Company amounted to 14,721,871,107.45 yuan, of which, 14,297,811,488.03 yuan was from beer business, accounting for 97.12% of operating revenue. As operating revenue is one of the key performance indicators of the Company, there might be inherent risks that the Company’s management (the “Management”) adopts inappropriate revenue recognition to achieve specific goals or expectations, we have identified revenue recognition as a key audit matter.

2. Responsive audit procedures

Our main audit procedures for revenue recognition are as follows:

(1) We obtained understandings of key internal controls related to revenue recognition and sales rebate, assessed the design of these controls, determined whether they had been executed, and tested the effectiveness of the operation;

(2) We checked sales contracts by sampling method, identified terms related to the point in time when the customer obtained the control over relevant goods, and assessed whether the revenue recognition policy was in compliance with regulations of China Accounting Standards for Business Enterprises;

(3) We performed analysis procedure on operating revenue and gross margin, so as to identify whether there are significant or abnormal fluctuations and find out the reason of fluctuations;

(4) We selected items to check supporting documents related to revenue recognition, including sales contracts, orders, delivery lists, discount record and approval sheets, sales invoices, client acceptance records, etc.;

(5) We selected items and performed confirmation procedures on current sales amount in combination with confirmation procedure of accounts receivable and contract liabilities;

(6) We performed cut-off tests on the revenue recognized around the balance sheet date, and checked whether the revenue was recognized in the appropriate period; and

(7) We checked whether information related to operating revenue had been presented appropriately in the financial statements.

(II) Impairment of goodwill

1. Key audit matters

Please refer to item V 27 and VII 27 of this section for details. As of December 31, 2025, the cost of goodwill amounted to 718,230,066.13 yuan, with provision for impairment of 19,037,610.07 yuan, and the carrying amount amounted to 699,192,456.06 yuan.

For asset group or asset group portfolio related to goodwill, the Management performs impairment test on goodwill together with related asset group or asset group portfolio, and the recoverable amount of related asset group or asset group portfolio is determined based on the present value of estimated future cash flows. As the amount of goodwill is significant and impairment test involves significant judgment of the Management, we have identified impairment of goodwill as a key audit matter.

2. Responsive audit procedures

Our main audit procedures for impairment of goodwill are as follows:

(1) We obtained understandings of key internal controls related to impairment of goodwill, assessed the design of these controls, determined whether they had been executed, and tested the effectiveness of the operation;

(2) We reviewed the outcome of the Management’s previous estimates on the present value of future cash flows or their subsequent re-estimations;

(3) We assessed the competency, professional quality and objectivity of external appraisers engaged by the Management;

(4) We assessed the appropriateness and consistency of impairment test method adopted by the Management;

(5) We assessed the appropriateness of significant assumptions used in impairment test and reviewed whether relevant assumptions were consistent with overall economy environment, industry condition, management situation, historical experience, operation plan, assumptions used in approved budget and related assumptions used in other areas of business activities;

(6) We assessed the appropriateness, relevance and reliability of data used by the Management in the impairment test and reviewed the consistency of related information in the impairment test;

(7) We tested whether the Management’s calculation of present value of estimated future cash flows was accurate; and

(8) We checked whether information related to impairment of goodwill had been presented appropriately in the financial statements.

IV. Other Information

The Management is responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard.

V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements

The Management is responsible for preparing and presenting fairly the financial statements in accordance with China Accounting Standards for Business Enterprises, as well as designing, implementing and maintaining internal control relevant to the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

VI. Certified Public Accountant’s Responsibilities for the Audit of the Financial Statements

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

We exercise professional judgment and maintain professional skepticism throughout the audit performed in accordance with China Standards on Auditing. We also:

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

(II) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances.

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

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

(V) Evaluate the overall presentation, structure and content of the financial statements, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

(VI) Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain sole responsibility for our audit opinion.

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

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

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

Pan-China Certified Public Accountants LLP Chinese Certified Public Accountant: Zhang Kai (Engagement Partner)

Hangzhou · China Chinese Certified Public Accountant: Xiang Qing

Date of Report: March 9, 2026

II. Financial Statements

Consolidated balance sheet

As at December 31, 2025

Prepared by: Chongqing Brewery Co., Ltd.

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping

Parent company balance sheet

As at December 31, 2025

Prepared by: Chongqing Brewery Co., Ltd.

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping Consolidated income statement

For the year ended December 31, 2025 Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping Parent company income statement For the year ended December 31, 2025

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping

Consolidated cash flow statement

For the year ended December 31, 2025

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping

Parent company cash flow statement

For the year ended December 31, 2025

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping

Consolidated statement of changes in equity

For the year ended December 31, 2025

Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Head of accounting department: Liu Liping

Officer in charge of accounting: Chin Wee Hua

Parent company statement of changes in equity For the year ended December 31, 2025 Monetary unit: RMB Yuan

Legal representative: João Miguel Ventura Rego Abecasis Officer in charge of accounting: Chin Wee Hua Head of accounting department: Liu Liping

III. Company profile

1. Overview

√ Applicable □ Not Applicable

Chongqing Brewery Co., Ltd. (the “Company”) was a limited liability company by shares transformed from Chongqing Brewery Plant and established by the sole initiator Chongqing Beer (Group) Co., Ltd. through private placement under the approval of Chongqing Economic System Reform Commission. The Company currently holds a business license with unified social credit code of 915000002028235667, with registered capital of 483.97 million yuan, total share of 483.97 million shares (each with par value of one yuan), all of which are unrestricted outstanding shares. The Company’s shares were listed on the Shanghai Stock Exchange in October 1997.

The Company belongs to the wine, beverage and refined tea manufacturing industry and is mainly engaged in production and sales of beer.

The financial statements were approved and authorized for issue by the seventh meeting of the eleventh session of the Board of Directors dated March 9, 2026.

IV. Preparation basis of the financial statements

1. Preparation basis

The financial statements have been prepared on the basis of going concern.

2. Going concern

√ Applicable □ Not Applicable

The Company has no events or conditions that may cast significant doubts upon the Company’s ability to continue as a going concern within the 12 months after the balance sheet date.

V. Significant accounting policies and estimates

Notes to specific accounting policies and estimates:

√ Applicable □ Not Applicable

Important note: The Company has set up accounting policies and estimates on transactions or events such as impairment of financial instruments, inventories, depreciation of fixed assets, construction in progress, depreciation of right-of-use assets, intangible assets, revenue recognition, etc., based on the Company’s actual production and operation features.

1. Statement of compliance

The financial statements have been prepared in accordance with the requirements of China Accounting Standards for Business Enterprises (CASBEs), and present truly and completely the financial position, financial performance, changes in equity, and cash flows of the Company.

2. Accounting period

The accounting year of the Company runs from January 1 to December 31 under the Gregorian calendar.

3. Operating cycle

√ Applicable □ Not Applicable

The Company has a relatively short operating cycle for its business, an asset or a liability is classified as current if it is expected to be realized or due within 12 months.

4. Functional currency

The Company’s functional currency is Renminbi (RMB) Yuan.

5. Determination method and basis for selection of materiality

√ Applicable □ Not Applicable

6. Accounting treatments of business combination under and not under common control √ Applicable □ Not Applicable

1. Accounting treatment of business combination under common control

Assets and liabilities arising from business combination are measured at carrying amount of the combined party included in the consolidated financial statements of the ultimate controlling party at the combination date. Difference between carrying amount of the equity of the combined party included in the consolidated financial statements of the ultimate controlling party and that of the combination consideration or total par value of shares issued is adjusted to capital reserve, if the balance of capital reserve is insufficient to offset, any excess is adjusted to retained earnings.

2. Accounting treatment of business combination not under common control

When combination cost is in excess of the fair value of identifiable net assets obtained from the acquiree at the acquisition date, the excess is recognized as goodwill; otherwise, the fair value of identifiable assets, liabilities and contingent liabilities, and the measurement of the combination cost are reviewed, then the difference is recognized in profit or loss.

6. Accounting treatments of business combination under and not under common control √ Applicable □ Not Applicable

7. Judgement criteria for control and compilation method of consolidated financial statements √ Applicable □ Not Applicable

(1) Judgement of control

An investor controls an investee if and only if the investor has all the following: 1) power over the investee; 2) exposure, or rights, to variable returns from its involvement with the investee; and 3) the ability to use its power over the investee to affect the amount of the investor’s returns.

(2) Compilation method of consolidated financial statements

The parent company brings all its controlled subsidiaries into the consolidation scope. The consolidated financial statements are compiled by the parent company according to “CASBE 33 – Consolidated Financial Statements”, based on relevant information and the financial statements of the parent company and its subsidiaries.

8. Classification of joint arrangements and accounting treatment of joint operations □ Applicable √ Not Applicable

9. Recognition criteria of cash and cash equivalents

Cash as presented in cash flow statement refers to cash on hand and deposit on demand for payment. Cash equivalents refer to short-term, highly liquid investments that can be readily converted to cash and that are subject to an insignificant risk of changes in value.

10. Foreign currency translation

√ Applicable □ Not Applicable

Transactions denominated in foreign currency are translated into RMB yuan at the spot exchange rate at the transaction date at initial recognition. At the balance sheet date, monetary items denominated in foreign currency are translated at the spot exchange rate at the balance sheet date with difference, except for those arising from the principal and interest of exclusive borrowings eligible for capitalization, included in profit or loss; non-cash items carried at historical costs are translated at the spot exchange rate at the transaction date, with the RMB amounts unchanged; non-cash items carried at fair value in foreign currency are translated at the spot exchange rate at the date when the fair value was determined, with difference included in profit or loss or other comprehensive income.

11. Financial instruments

√ Applicable □ Not Applicable

1. Classification of financial assets and financial liabilities

Financial assets are classified into the following three categories when initially recognized: (1) financial assets at amortized cost; (2) financial assets at fair value through other comprehensive income; (3) financial assets at fair value through profit or loss.

Financial liabilities are classified into the following four categories when initially recognized: (1) financial liabilities at fair value through profit or loss; (2) financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies; (3) financial guarantee contracts not fall within the above categories (1) and (2), and commitments to provide a loan at a below-market interest rate, which do not fall within the above category (1); (4) financial liabilities at amortized cost.

2. Recognition criteria, measurement method and derecognition of financial assets and financial liabilities

(1) Recognition criteria and measurement method of financial assets and financial liabilities

When the Company becomes a party to a financial instrument, it is recognized as a financial asset or financial liability. The financial assets and financial liabilities initially recognized by the Company are measured at fair value; for the financial assets and liabilities at fair value through profit or loss, the transaction expenses thereof are directly included in profit or loss; for other categories of financial assets and financial liabilities, the transaction expenses thereof are included into the initially recognized amount. However, at initial recognition, for accounts receivable that do not contain a significant financing component or in circumstances where the Company does not consider the financing components in contracts within one year, they are measured at the transaction price in accordance with “CASBE 14 – Revenues”.

(2) Subsequent measurement of financial assets

1) Financial assets measured at amortized cost

The Company measures its financial assets at the amortized costs using effective interest method. Gains or losses on financial assets that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial assets are derecognized, reclassified, amortized using effective interest method or recognized with impairment loss.

2) Debt instrument investments at fair value through other comprehensive income

The Company measures its debt instrument investments at fair value. Interests, impairment gains or losses, and gains and losses on foreign exchange that calculated using effective interest method shall be included into profit or loss, while other gains or losses are included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into profit or loss when the financial assets are derecognized.

3) Equity instrument investments at fair value through other comprehensive income

The Company measures its equity instrument investments at fair value. Dividends obtained (other than those as part of investment cost recovery) shall be included into profit or loss, while other gains or losses are included into other comprehensive income. Accumulated gains or losses that initially recognized as other comprehensive income should be transferred out into retained earnings when the financial assets are derecognized.

4) Financial assets at fair value through profit or loss

The Company measures its financial assets at fair value. Gains or losses arising from changes in fair value (including interests and dividends) shall be included into profit or loss, except for financial assets that are part of hedging relationships.

(3) Subsequent measurement of financial liabilities

1) Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include held-for-trading financial liabilities (including derivatives that are liabilities) and financial liabilities designated as at fair value through profit or loss. The Company measures such kind of liabilities at fair value. The amount of changes in the fair value of the financial liabilities that are attributable to changes in the Company’s own credit risk shall be included into other comprehensive income, unless such treatment would create or enlarge accounting mismatches in profit or loss. Other gains or losses on those financial liabilities (including interests, changes in fair value that are attributable to reasons other than changes in the Company’s own credit risk) shall be included into profit or loss, except for financial liabilities that are part of hedging relationships. Accumulated gains or losses that originally recognized as other comprehensive income should be transferred out into retained earnings when the financial liabilities are derecognized.

2) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies The Company measures its financial liabilities in accordance with “CASBE 23 – Transfer of Financial Assets”.

3) Financial guarantee contracts not fall within the above categories 1) and 2), and commitments to provide a loan at a below-market interest rate, which do not fall within the above category 1)

The Company measures its financial liabilities at the higher of: a. the amount of loss allowances in accordance with impairment requirements of financial instruments; b. the amount initially recognized less the amount of accumulated amortization recognized in accordance with “CASBE 14 – Revenues”.

4) Financial liabilities at amortized cost

The Company measures its financial liabilities at amortized cost using effective interest method. Gains or losses on financial liabilities that are measured at amortized cost and are not part of hedging relationships shall be included into profit or loss when the financial liabilities are derecognized and amortized using effective interest method.

(4) Derecognition of financial assets and financial liabilities 1) Financial assets are derecognized when: a. the contractual rights to the cash flows from the financial assets expire; or

b. the financial assets have been transferred and the transfer qualifies for derecognition in accordance with “CASBE 23 – Transfer of Financial Assets”.

2) Only when the underlying present obligations of a financial liability are relieved totally or partly may the financial liability be derecognized accordingly.

3. Recognition criteria and measurement method of financial assets transfer

Where the Company has transferred substantially all of the risks and rewards related to the ownership of the financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or a liability. If it retained substantially all of the risks and rewards related to the ownership of the financial asset, it continues recognizing the financial asset. Where the Company does not transfer or retain substantially all of the risks and rewards related to the ownership of a financial asset, it is dealt with according to the circumstances as follows respectively: (1) if the Company does not retain its control over the financial asset, it derecognizes the financial asset, and any right or liability arising from such transfer is recognized independently as an asset or a liability; (2) if the Company retains its control over the financial asset, according to the extent of its continuing involvement in the transferred financial asset, it recognizes the related financial asset and recognizes the relevant liability accordingly.

If the transfer of an entire financial asset satisfies the conditions for derecognition, the difference between the amounts of the following two items is included in profit or loss: (1) the carrying amount of the transferred financial asset as of the date of derecognition; (2) the sum of consideration received from the transfer of the financial asset, and the accumulative amount of the changes of the fair value originally included in other comprehensive income proportionate to the transferred financial asset (financial assets transferred refer to debt instrument investments at fair value through other comprehensive income). If the transfer of financial asset partially satisfies the conditions for derecognition, the entire carrying amount of the transferred financial asset is, between the portion which is derecognized and the portion which is not, apportioned according to their respective relative fair value, and the difference between the amounts of the following two items is included into profit or loss: (1) the carrying amount of the portion which is derecognized; (2) the sum of consideration of the portion which is derecognized, and the portion of the accumulative amount of the changes in the fair value originally included in other comprehensive income which is corresponding to the portion which is derecognized (financial assets transferred refer to debt instrument investments at fair value through other comprehensive income).

4. Fair value determination method of financial assets and liabilities

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data and information are available to measure fair value. The inputs to valuation techniques used to measure fair value are arranged in the following hierarchy and used accordingly:

(1) Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company can access at the measurement date;

(2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability, for example, interest rates and yield curves observable at commonly quoted intervals; market-corroborated inputs;

(3) Level 3 inputs are unobservable inputs for the asset or liability. Level 3 inputs include interest rate that is not observable and cannot be corroborated by observable market data at commonly quoted intervals, historical volatility, future cash flows to be paid to fulfill the disposal obligation assumed in business combination, financial forecast developed using the Company’s own data, etc.

5. Impairment of financial instruments

The Company, on the basis of expected credit loss, recognizes loss allowances of financial assets at amortized cost, debt instrument investments at fair value through other comprehensive income, leases receivable, loan commitments other than financial liabilities at fair value through profit or loss, financial guarantee contracts not belong to financial liabilities at fair value through profit or loss or financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the continuing involvement approach applies.

Expected credit losses refer to the weighted average of credit losses with the respective risks of a default occurring as the weights. Credit loss refers to the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the original effective interest rate. Among which, purchased or originated credit-impaired financial assets are discounted at the credit-adjusted effective interest rate.

At the balance sheet date, the Company shall only recognize the cumulative changes in the lifetime expected credit losses since initial recognition as a loss allowance for purchased or originated creditimpaired financial assets.

For accounts receivable and contract assets resulting from transactions regulated in “CASBE 14 – Revenues”, the Company chooses simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses.

For financial assets other than the above, on each balance sheet date, the Company shall assess whether the credit risk on the financial instrument has increased significantly since initial recognition. The Company shall measure the loss allowance for the financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition; otherwise, the Company shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected credit loss.

Considering reasonable and supportable forward-looking information, the Company compares the risk of a default occurring on the financial instrument as at the balance sheet date with the risk of a default occurring on the financial instrument as at the date of initial recognition, so as to assess whether the credit risk on the financial instrument has increased significantly since initial recognition.

The Company may assume that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have relatively low credit risk at the balance sheet date.

The Company shall estimate expected credit risk and measure expected credit losses on an individual or a collective basis. When the Company adopts the collective basis, financial instruments are grouped with similar credit risk features.

The Company shall remeasure expected credit loss on each balance sheet date, and increased or reversed amounts of loss allowance arising therefrom shall be included into profit or loss as impairment losses or gains. For a financial asset measured at amortized cost, the loss allowance reduces the carrying amount of such financial asset presented in the balance sheet; for a debt investment measured at fair value through other comprehensive income, the loss allowance shall be recognized in other comprehensive income and shall not reduce the carrying amount of such financial asset.

6. Offsetting financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and are not offset. However, the Company offsets a financial asset and a financial liability and presents the net amount in the balance sheet when, and only when, the Company: (1) currently has a legally enforceable right to set off the recognized amounts; and (2) intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

For a transfer of a financial asset that does not qualify for derecognition, the Company does not offset the transferred asset and the associated liability.

12. Notes receivable

□ Applicable √ Not Applicable

13. Accounts receivable

√ Applicable □ Not Applicable

Categories and determination basis of portfolios with provision for bad debts made on a collective basis using similar credit risk features

√ Applicable □ Not Applicable