Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Stock Code: 601231 Abbreviated Name: USI
Universal Scientific Industrial (Shanghai) Co. Ltd.
2025 Annual Report
Note: This Report has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions the Chinese version shall prevail.
1 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Important Notice
I. The Board of Directors directors and senior management of the Company hereby assure that
the content set out in the annual report is truthful accurate and complete and contains no
misrepresentations misleading statements or material omissions and are individually and
collectively responsible for the content set out therein.II. All directors of the Company attended the meeting of the Board of Directors.III. Deloitte Touche Tohmatsu Certified Public Accountants LLP has issued a standard unqualified
audit report for the Company.IV. Jeffrey Chen person in charge of the Company Xinyu Wu person in charge of accounting and
Fangzhi Huang person in charge of the accounting firm (accountant in charge) declare that the
financial report in the annual report is truthful accurate and complete.V. The proposal of profit distribution for the reporting period deliberated and approved by the
Board of Directors
USI intends to distribute a dividend of RMB 4.30 yuan (tax included) for every 10 shares on the basis of
the total share capital on the registration date of equity distribution minus the number of shares in its
special repurchase account without giving bonus shares or capitalizing capital reserves.? If there are
changes in the Company’s total share capital or in the number of shares held in the Company’s designated
repurchase account prior to the equity registration date for the implementation of the profit distribution
the cash dividend per share to be distributed shall remain unchanged and the total distribution amount
shall be adjusted accordingly.The Company's Profit Distribution Plan for 2025 was deliberated and approved at the Twenty-third
Meeting of the Sixth Session of the Board of Directors of the Company and it still needs to be deliberated
at the Company's 2025 Annual General Meeting of Shareholders.Information on the parent company’s unrecouped losses as of the end of the reporting period and
their impact on the Company’s dividend distribution and other related matters
□Applicable√ Not Applicable
VI. Risk disclosure for forward-looking statements
√Applicable □ Not Applicable
This report involves forward-looking statements such as future plans and does not constitute any
substantive commitment by the Company to investors. Investors are requested to pay attention to
investment risks.
2 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
VII. Are there any funds occupied by controlling shareholder or other related parties for non-
operational purposes
No
VIII. Is there any external guarantee in violation of the prescribed decision-making process
No
IX. Are more than half of the directors unable to guarantee the truthfulness accuracy and
completeness of the annual report disclosed by the Company
No
X. Major risk disclosure
The major risks facing the Company are described in “Possible Risks” of “Discussion and Analysis ofCorporate Development in the Future” in this report.XI. Others
□Applicable√ Not Applicable
3 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Contents
Section I Definitions ............................... 5
Section II Company Profile and Key Financial Indic... 7
Section III Management Discussion and Analysis ..... 12
Section IV Corporate Governance Environmental and .. 55
Section V Major Events ............................. 80
Section VI Changes in Shares and Information of Sh.. 94
Section VII Information on Bonds .................. 103
Section VIII Financial Statements ................. 107
Accounting statements signed and sealed by the person in charge of the Company
the person in charge of accounting and the person in charge of the accounting firm
Catalog of files Original audit report sealed by the accounting firm and signed and sealed by
for reference certified public accountants
Original copies of all documents and announcements of the Company publicly
disclosed in newspapers designated by CSRC during the reporting period
4 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section I Definitions
I. Definitions
In this report the following terms shall have the following meanings unless the context otherwise requires:
The Company the Group
USI USISH or the listed Universal Scientific Industrial (Shanghai) Co. Ltd.company
SSE Shanghai Stock Exchange
USI Enterprise Limited the controlling shareholder of the Company
USIE
registered in Hong Kong
Universal Scientific Industrial Co. Ltd. a company listed on the
Universal Scientific
Taiwan Stock Exchange with the stock code 2350 which terminated
Industrial Co. Ltd.its listing on June 17 2010
ASE Technology Holding Co. Ltd. a company listed on the Taiwan
ASE Technology Holding
Stock Exchange with the stock code 3711
Advanced Semiconductor Engineering Inc. formerly listed on the
ASE Inc. Taiwan Stock Exchange with the stock code 2311 and delisted in
2018.
ASE (Shanghai) Inc. a subsidiary of ASE Inc. in which it holds 100%
ASE Shanghai
shares
Universal Global Technology Co. Limited a subsidiary of the
UGT Company in which the Company holds 100% shares registered in
Hong Kong
UGT Shanghai Jinqiao Universal Global Technology (Shanghai) Co. Ltd. a subsidiary of the
Subsidiary Jinqiao Factory Company in which the Company holds 100% shares
USI Shenzhen Shenzhen USI Electronics (Shenzhen) Co. Ltd. a subsidiary of the Company in
Subsidiary Shenzhen Factory which the Company holds 100% shares
UGT Kunshan Kunshan Universal Global Technology (Kunshan) Co. Ltd. a wholly-owned
Subsidiary Kunshan Factory subsidiary of the Company
Universal Global Electronics Co. Ltd. a subsidiary of the Company
UGE
in which the Company holds 100% shares
UGT Huizhou Huizhou Universal Global Technology (Huizhou) Co. Ltd. a subsidiary of the
Subsidiary Huizhou Factory Company in which the Company holds 100% shares
Universal Global Scientific Industrial Co. Ltd. registered in Taiwan
UGSI a subsidiary of the Company in which the Company holds 100%
shares
USI Vietnam Vietnam Universal Scientific Industrial Vietnam Company Limited a
Subsidiary Vietnam Factory subsidiary of the Company in which the Company holds 100% shares
Financière AFG a simplified joint stock company established and
FAFG validly existing under the laws of France and a subsidiary of the
Company in which the Company holds 100% shares
Asteelflash Group a simplified joint stock company established and
validly existing under the Laws of France. It is a subsidiary of FAFG
AFG
in which FAFG holds 100% shares. Since January 1 2022 it has been
merged into its parent company FAFG.FAFG Suzhou Suzhou Asteelflash (Suzhou) Co. Ltd. a subsidiary of FAFG in which FAFG
Factory holds 100% shares
Formerly known as Chung Hong Electronics Poland SP.Z. O.O; the
USI Poland Poland Factory Company completed the acquisition of 100% of its equity on June 22
2020 and it was renamed USI Asteelflash Sp.z o.o.
Memtech International Ltd. which was listed on the Singapore Stock
Memtech Exchange in 2004 and was delisted on August 22 2019. The
Company indirectly holds 42.23% of its equity.Hirschmann Car Communication Holding S.a.r.l. a limited liability
Hirschmann
company established in Luxembourg is headquartered in Germany
5 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
and has production sites in Germany Hungary and China. USI and
Ample Trading completed the acquisition of 100% of its shares in
October 2023 and USI completed the sale of this company to its
indirect controlling shareholder in September 2025.EugenLight Technologies is a high?tech enterprise specializing in the
research and development manufacturing and sales of high?speed
EugenLight optoelectronic integrated components and optical engine products.The Company obtained control of EugenLight Technologies in
January 2026.EMEA Abbreviation for Europe the Middle East and Africa
APAC Abbreviation for the Asia-Pacific region
Americas North and South America
Electronic Manufacturing Services the services provided by
EMS manufacturers for electronic brand owners such as manufacturing
procurement partial design and logistics
ODM Original Design Manufacturer
DMS Design and Manufacturing Services
D(MS)2 An acronym for DMS integrated with Miniaturization and Solution
Surface Mount Technology a new generation of electronic assembly
technology which compresses traditional electronic components into
components that are tens of times smaller than their original volume
and realizes high-density highly reliable miniaturized and low-cost
SMT
assembly of electronic products as well as automated production. The
process for assembling components onto printed (or other) substrates
is called SMT process and the associated assembly equipment is
called SMT equipment.Printed Circuit Board known as the “cornerstone” of electronic
products. A large number of electronic parts used in electronic
PCB products are embedded on PCBs of different sizes. In addition to
fixing parts the main function of PCBs is to provide circuit
connections between various parts.System in Package; multiple functional wafers including processors
and memory wafers are integrated into a package according to the
SiP application scenarios the number of package substrate layers and
other factors so as to achieve a basic package scheme with complete
functions
CAGR Compound Annual Growth Rate
YoY Year Over Year
The reporting period or
January 1 2025 to December 31 2025
current period
6 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section II Company Profile and Key Financial Indicators
I. Company profile
Name in Chinese 环旭电子股份有限公司
Abbreviation in Chinese 环旭电子
Name in English Universal Scientific Industrial (Shanghai) Co. Ltd.Abbreviation in English USISH
Legal representative Jeffrey Chen
II. Contact
Board Secretary Securities Affairs Representative
Name Jinpeng Shi Chao Feng
F/5 Building B 169 Shengxia Road F/5 Building B 169 Shengxia Road
Address
Pudong New Area Shanghai Pudong New Area Shanghai
Tel. 021-58968418 021-58968418
Fax 021-58968415 021-58968415
Email Public@usiglobal.com Public@usiglobal.com
III. Basic information
1558 Zhangdong Road Integrated Circuit Industrial
Registered address
Zone Zhangjiang Hi-tech Park Shanghai
Change record of registered address None
F/5 Building B 169 Shengxia Road Pudong New Area
Office address
Shanghai
Zip code of office address 201203
Website www.usiglobal.com
Email Public@usiglobal.com
IV. Information disclosure and place at which the report is available
Names and websites of press media on which Shanghai Securities News China Securities Journal
the Company discloses its annual report and Securities Times
Website of the stock exchange on which the
www.sse.com.cn
Company discloses its annual report
Annual report available at Securities Affairs Department of the Company
V. The Company's stocks
The Company's Stocks
Stock class Listed on Abbreviated Name Stock Code Former Abbreviated Name
A-share Shanghai Stock Exchange USI 601231 None
VI. Other related information
Deloitte Touche Tohmatsu Certified Public
Name
Domestic accounting Accountants LLP
firm hired by the Office address F/30 222 East Yan’an Road Shanghai
Company Names of accountants who
Yuan Shouqing and Hu Ke
give their signatures
Sponsor organization Name Guotai Haitong Securities Co. Ltd.that performs the Office address 888 South Zhongshan Road Shanghai
duty of continuous Names of sponsor
Liu Saihui and Chen Hengrui
supervision during representatives who give
7 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
the reporting period their signatures
Period of continuous
April 2 2021 to December 31 2022
supervision
VII. Key accounting data and financial indicators in the past three years
(I) Key accounting data
Unit: yuan Currency: RMB
Key accounting 2024 YoY
20252023
data (%)
Before Adjustment After Adjustment
Revenue 59195055821.58 60690651098.10 60690651098.10 -2.46 60791909537.87
Total profit 2139493055.52 1853816573.41 1853816573.41 15.41 2189687856.20
Net profits
attributable to
shareholders of 1853439277.28 1652482815.41 1652482815.41 12.16 1947846866.12
the listed
company
Net profit
attributable to
shareholders of
the listed
1550325051.301450740530.121450740530.126.861779078630.35
company after
deducting non-
recurring gains
and losses
Net cash flows
from operating 2403926963.26 4210266611.54 4210266611.54 -42.90 6823435492.62
activities
End of 2024 YoY
End of 2025 End of 2023
(%)
Before Adjustment After Adjustment
Net assets
attributable to
shareholders of 20721402493.02 17934523876.88 17934523876.88 15.54 16993068434.84
the listed
company
Total assets 40486483250.56 39998030835.37 39998030835.37 1.22 39404295828.93
(II) Key financial indicators
2024
Key financial indicators 2025 Before After YoY (%) 2023
Adjustment Adjustment
Basic EPS (yuan/share) 0.85 0.76 0.76 11.84 0.89
Diluted EPS (yuan/share) 0.84 0.75 0.75 12.00 0.87
Basic EPS net of non-recurring
0.710.660.667.580.81
gains/losses (yuan/share)
Weighted average ROE (%) 9.98 9.52 9.52 Up 0.46 pct. 12.02
Weighted average ROE net of
8.35 8.36 8.36 Down 0.01 pct. 10.98
non-recurring gains/losses (%)
Explanation of the Company’s key accounting data and financial indicators in the past three years at the
end of the reporting period
□Applicable √Not Applicable
8 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
VIII. Accounting data differences under domestic and overseas accounting standards
(I) Differences in net profits and net assets attributable to shareholders of the listed company in the
financial report disclosed under international accounting standards and Chinese accounting
standards
□Applicable √Not Applicable
(II) Differences in net profits and net assets attributable to shareholders of the listed company in the
financial report disclosed under overseas accounting standards and Chinese accounting
standards
□Applicable √Not Applicable
(III) Explanation of differences between Chinese accounting standards and overseas accounting
standards
□Applicable √Not Applicable
IX. Key financial data by quarter for 2025
Unit: yuan Currency: RMB
Q1 Q2 Q3 Q4
(Jan – Mar) (Apr – Jun) (Jul – Sep) (Oct – Dec)
Revenue 13648634687.74 13565066605.86 16427474248.20 15553880279.78
Net profits attributable
to shareholders of the 334959613.24 303088844.95 625163771.02 590227048.07
listed company
Net profits attributable
to shareholders of the
listed company net of 279903960.88 298269541.13 552503187.31 419648361.98
non-recurring
gains/losses
Net cash flows from
890234791.94553236640.19381890932.27578564598.86
operating activities
Explanation for differences between the quarterly data and formerly disclosed data in periodic reports
□Applicable √Not Applicable
X. Non-recurring profit or loss
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Notes (if
Items of non-recurring gains/losses 2025 applicabl 2024 2023
e)
Gains and losses on disposal of non- See Note
current assets including the write- 203325038.86 (VII) 68 5101711.12 5463221.02
off of asset impairment provisions 73 75
Government grants recognized in
profit or loss (other than grants
which are closely related to the
Company's business have a lasting
See Note
impact on the Company's profits 30997721.69 39593697.06 71813784.39
(XI) 3
and losses and are either in fixed
amounts or determined under
quantitative methods in accordance
with the national standard)
Profit or loss on changes in the fair See Note
155340141.68177139794.65106839747.09
value of financial assets and (VII) 68
9 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
financial liabilities and investment 70
income on disposal of financial
assets and financial liabilities held
by non-financial companies other
than those used in the effective
hedging activities relating to normal
operating business
Write-back of provisions for
receivables impairment subject to 3658249.59 6111269.30 -
separate impairment tests
One-time costs incurred by
enterprises due to the fact that the
relevant business activities are no -109627486.97 -708810.03 -3701028.03
longer sustainable such as expenses
for relocating employees
The impact of one-time adjustment
of current profit and loss in
-19128013.42--
accordance with tax accounting and
other laws and regulations
See Note
Other non-operating income or
63381721.25 (VII) 74 -16235503.49 12916711.91
expenses other than the above
75
Less: tax effects 24785695.23 9611574.91 24950729.58
Effects attributable to minority
47451.47-351701.59-386528.97
interests (After tax)
Total 303114225.98 201742285.29 168768235.77
Explanations for significant amount of extraordinary gain or loss items identified by the Company but notlisted in the “Explanatory Announcement No.1 for Public Company Information Disclosures –Extraordinary Gains or Losses” and recurring gain or loss items identified by the Company which arelisted as extraordinary gain or loss items in the “Explanatory Announcement No.1 for Public CompanyInformation Disclosures – Extraordinary Gains or Losses”.□Applicable √Not Applicable
XI. Companies implementing equity incentive schemes or employee stock ownership plans may elect
to disclose net profit excluding the impact of share-based payment expenses.□Applicable √Not Applicable
XII. Items measured at fair value
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Change in the Impact on profit of
Item Opening amount Closing balance
current period the current period
Financial assets held
42291303.919800747.96-32490555.95146719077.80
for trading
Other equity
22769795.6213587010.31-9182785.31-
instruments
Other non-current
201093233.84186517853.51-14575380.336596517.52
financial assets
Derivative financial
-4775306.67-2750760.312024546.362024546.36
liabilities
Total 261379026.70 207154851.47 -54224175.23 155340141.68
10 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
XIII. Others
□Applicable √Not Applicable
11 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section III Management Discussion and Analysis
I. Core Business during the Reporting Period
(I) Key Products and Solutions
As a world-leading electronic DMS manufacturer by providing brand customers with more value-added
design manufacturing and related services the Company participates more in developing industry-wide
application solutions and enhances the manufacturing value added of products and overall services. In the
future following the core concept of creating value for customers the Company will attach more
importance to Solutions Design and Services strive to expand the base of high-quality customers and
strengthen partnership with them gradually transform the Company from a manufacturing service
provider to a total solution provider and comprehensive service provider.
1. Wireless communication products
In the field of wireless communication the Company with a strong design and manufacturing team
provides customers with design verification manufacturing and related services for enterprise-class
wireless interconnection products and highly competitive wireless module products by collaborating with
the world's leading wireless communication chip companies. From product concept prototype design
testing and verification to mass production the company’s R&D team and management system offer
customers a suitable R&D schedule and reliable quality assurance to meet customer needs achieve rapid
product launches and enhance customers' competitive advantages.Wireless communication products mainly include wireless communication System-in-Package (SiP)
modules system-level Internet of Things (IoT) modules wireless routers etc.
12 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
2. Consumer electronics
The Company is the industry's leading manufacturer of smart wearable SiP modules. As smart wearables
tend to be "lighter thinner smaller and more compact" the system in package (SiP) technology has
become the key to providing highly integrated and miniaturized designs. Since 2013 the Company has
been committed to the miniaturization and highly integrated development of SiP modules related to
wearables including new advanced packaging technologies such as partition shielding selective plastic
packaging film plastic packaging selective sputtering shape cutting dry ice cleaning and SMT 3D screen
printing. At present the Company’s SiP module products for smart wearables cover SiP modules for
smartwatches smart glasses true wireless stereo (TWS) Bluetooth earphones and optical heart rate
modules. For smart head?mounted devices such as XR (VR/AR/MR) and smart glasses the Company’s
offerings include Wi?Fi modules system integration mainboard modules as well as multi?functional
integrated or application?specific SiP modules.In addition to smart wearable SiP modules consumer electronics products also involve SiPlet modules
video devices connection devices mainly including X-Y bar control board miniLED display control
timing control board smart stylus smart tablet electromagnetic sensing board etc.
3. Industrial products
With sophisticated professionals in product R&D and design project management manufacturing and
logistics support the Company is committed to the industrial product market such as Point of Sale (POS)
Smart Handheld Device (SHD) smart fleet dash cam factory automation control module etc. The
Company provides customers with the most cost-effective optimized design and a full package of
solutions with a strict quality control process meeting their needs from mass production diversified
production to customized production. With the development of global carbon neutrality the Company
has increased its green energy products serving energy storage and photovoltaics.
13 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
4. Cloud and storage products
The Company’s motherboard products include motherboards for servers/computing card and workstations
and CPU modules for laptops etc. The Company’s computer peripheral products are mainly devices that
connect laptops to peripherals such as docking station and dongle. The server related products
manufactured by the Company are widely used in cloud computing data centers edge computing and
other fields. The Company continues to introduce new generation technologies such as DDR5 and PCIe-
G5 with the service model of Join Design Manufacturing (JDM) in producing Standard Rackmount Server
and Edge Server.Storage and interconnection products include solid-state drives (SSD) and high-speed switches and
network adapters. The Company has industry-leading R&D capabilities for new technologies such as
fibre channel SAS SATA 10G ethernet Rapid I/O and wireless broadband etc. The Company is a
leading SSD design and manufacturing partner providing customers with services in manufacturing
hardware design product verification and customized design of test platform. The Company currently
provides motherboard and complete machine manufacturing services of high-speed switch to customers.The Company has actively expanded in the optical communications sector. Through collaboration with
upstream and downstream partners across the industry chain the Company has established comprehensive
capabilities covering product design and mass?production manufacturing. Leveraging industry integration
14 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
the Company acquired a controlling interest in EugenLight thereby further expanding its optical
communications product portfolio and building three major product lines: data center high?speed
telecommunications and industrial optoelectronics.The data center product line primarily includes 400G/800G/1.6T single?mode silicon photonics engines
DCI Lite & DCI (Data Center Interconnect) products and ELSFP light source products. The high?speed
telecommunications product line mainly comprises optical transport network products fixed?network
access products and wireless fronthaul products. The industrial optoelectronics product line primarily
includes Narrow Linewidth Laser (NLL) / Tunable NLL laser light sources and modules as well as
multi?chip RGB integrated MCL laser light source modules.
5. Automotive electronics
With over four decades of experience in the automotive industry the Company is a leading DMS provider
in automotive electronics.The Company’s automotive electronic products mainly include power modules traction inverter Battery
Management System (BMS) On-Board Charger(OBC) electronic pumps intelligent cabin ADAS related
controllers domain controllers vehicle NAD modules car antenna LED lights and other body controllers.
15 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Following the development trend of "electrification intelligence and connectivity" in automotive
electronics the Company focuses on "electrification" and invests heavily in research and development of
power modules traction inverter BMS OBC and other automotive power products to serve power chip
manufacturers Tier 1 suppliers and OEMs; at the same time the Company takes into account
"intelligence" and "connectivity" and expands new products and businesses in the fields of intelligent
cabin ADAS and vehicle communications.
6. Medical electronics
Medical electronic products are mainly home care and hospital analytical equipment including vitamin K
antagonist therapy equipment medical wireless glucometer continuous positive airway pressure device
hematology analyzer and glucose metering device.(II) Miniaturization design and products
USI has a leading position in SiP miniaturization technology. SiP module is based on heterogeneous
integration technology which integrates chips and passive components into one module effectively
reducing the area of functional modules improving the efficiency of circuit system and ensuring the
effectiveness of electromagnetic interference shielding. Through miniaturization technology most
electronic systems especially for mobile devices AIoT devices and wearables can be reduced in size to
meet market demands.
16 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
With the continuous breakthroughs in AI technologies and the enhancement of on?device computing
capabilities a wide range of AI models and applications are being deployed on end devices and iterating
rapidly driving smart wearable devices into a new cycle of transformation. Leading global technology
companies are accelerating the development of AI?powered edge products to build a new ecosystem
characterized by deep integration interconnected scenarios and proactive services. Smart wearables are
evolving beyond simple data collection and notification functions and are increasingly emerging as
“personal intelligent companions” driven by AI. While traditional categories such as smartwatches
wristbands and TWS earphones continue to iterate emerging products including AI glasses XR devices
and smart rings are gaining popularity due to their unique interaction modes and convenience. This trend
is driving an increasingly urgent demand for compact lightweight and highly integrated SiP modules.Looking ahead these devices are expected to integrate more powerful and diversified functionalities
deeply combining health monitoring voice interaction motion tracking spatial computing interaction
and AI?enabled assistance thereby elevating the pursuit of “lighter thinner smaller and more compact”.The Company insists on deepening the research and development field of SiP modules to maintain industry
leadership. At the end of 2020 the Company set up a Miniaturization Competence Center (MCC)
advancing the application and adoption of miniaturization technology and SiP Modules and serving the
needs of domestic and foreign customers for miniaturized and modular products and providing "one-stop
service" from design to manufacturing.The Company continuously breaks through technical challenges in all aspects of the SiP process to meet
the requirements of high stability and high integration.
(1) Horizontally the minimum device size has been reduced to 0.25 mm * 0.125 mm the minimum
center?to?center spacing between components is designed at 20 microns and the designed
distance to the board edge is 45 microns. These specifications place higher requirements on
components production equipment and process control.
(2) Vertically to achieve a design value of 40 microns for the top clearance of the molding and 40
microns for the bottom clearance of the plastic seal there are also extremely high requirements
for the selection of plastic sealing materials process parameters and process control.
17 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(3) Technologies developed around Vacuum Printing Encapsulation (VPE) including selective
molding and the use of copper columns instead of BGA balls to achieve high-density connection
interfaces provide diverse support for SiP interconnection and subsequent processes.The design and manufacturing ability of miniaturized products is one of the core competitiveness of the
Company and the Company will strive to expand the application and market of miniaturized modules. In
terms of single-sided molding the Company currently supports full molding or selective molding and
can also be selective multi-step molding. In the future the Company plans to develop sandwich biscuit-
type multi-board stacking packaging and chip-embedded substrate combination gold wire/wafer bonding
packaging. In terms of double-sided plastic sealing the Company has introduced plug-in interconnection
and will develop 3D structure and soft and hard board combination to further reduce product size. The
Company will introduce the front-end process of wafer manufacturing including wafer thinning scribing
and tape packaging. In combination with the current SiP process Wafer-In-Module-Out can be realized.It has also successfully developed its own double-sided molding module for wafer combination gold wire
bonding.The MCC Miniaturization Innovation R&D Center has launched a ground-breaking SiP dual-engine
technology platform which meets the needs of large-scale highly integrated and ultra-miniaturized
modules through high-density integration technology based on Transfer Molding. At the same time the
highly elastic technology centered on Vacuum Printing Encapsulation provides an innovative method for
module packaging. Through liquid sealing printing in a vacuum chamber without the need for custom
molds the development cycle can be greatly shortened. Therefore this innovative solution can be quickly
modular designed for different market applications.
18 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
The SiP dual-engine technology platform can provide highly flexible system packaging solutions such as
small sample and large quantity or large sample and small quantity. The platform can provide the most
suitable solutions based on customer needs to improve product quality.The capabilities of the MCC Miniaturization Innovation R&D Center are not limited to the SiP dual-
engine technology platform but also cover the integration of various heterogeneous components into
complex modules. The Company's development team has a full range of design services and dedicated
production equipment which can provide customers with seamless services from product concept to mass
production ensuring mass production in complex system integration Items and providing a solid
guarantee for the final performance and reliability of the product.Explanation of Significant Newly Added Non?principal Businesses During the Reporting Period
□Applicable √Not Applicable
II. Industry of the Company during the Reporting Period
During the reporting period the Company's industry was the electronics manufacturing service industry
and its products were mainly used in consumer electronics cloud storage industrial automotive
electronics and medical industries. The Company's service products business layout and operations are
characterized by modularization diversification and globalization.(I) Basic situation of the industry
The EMS industry mainly provides overall electronic products and devices solutions such as design
engineering development raw material procurement manufacturing logistics testing and after-sales
service for various electronic products and equipment.Electronic manufacturing services mainly include 3C (Computer Communication Consumer Electronics)
products industrial automobile medical transportation energy aerospace and other fields among which
consumer electronics occupies an important position. The growing demand for smart phones smart
wearable devices AR/VR devices computers and cloud smart home and other products has driven the
rapid development and continuous upgrading of chips storage electronic components modules and smart
manufacturing.China has the largest market share and the most competitive supply chain in the global electronics
manufacturing services industry. The rapidly increasing demand for nearshoring and friendly shoring in
the global supply chain has significantly stimulated investment and capacity expansion in Mexico South
East Asia India Eastern Europe and other regions and has also affected the transfer of capacity in the
upstream supply chain thus forming a new capacity scale and industrial chain cluster in the future. In
addition the impact of the US tariffs will prompt the supply chain to invest in new production capacity in
regions with geographical advantages policy advantages and cost advantages reducing the business risks
caused by the imposition of tariffs in specific regions. It will also prompt enterprises to increase investment
in research and development promote technological innovation and increase the added value of products
reduce dependence on low-value-added manufacturing links and enhance their competitiveness in a high-
tariff environment.(II) Industry characteristics and development trends
1. The industry has a large overall scale with high industry concentration
In 2025 the industrial scale of the global EMS industry exceeded USD 682.7 billion with high industry
concentration. The top 10 manufacturers in the world accounted for more than 70% of the total revenue.Leading enterprises in the industry have accumulated rich customer resources and industry experience
with large assets and revenues and maintained a relatively stable leading position.In 2025 the inventory levels of electronic products are gradually returning to a reasonable range. Inflation
levels in major economies around the world showed a moderate trend. Monetary policy has shifted and
the world has entered an interest rate cut cycle. The U.S. has begun an interest rate easing cycle which
has had a certain positive impact on industry demand. Meanwhile accelerated capital investment in AI
by leading cloud service providers has driven rapid technological iteration and fostered strong growth in
19 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
demand for related manufacturing services. In addition the acceleration of AI applications on end devices
is expected to further support a recovery in demand for electronic products by 2026.
2. The business and competitive environment is becoming increasingly complex and electronic
manufacturing service providers are facing transformation
The trend of geopolitics and global economic and trade regionalization affects the reconstruction of the
global supply chain. In order to achieve the risk management needs of supply chain diversification some
offshore outsourcing is turned to near-shore or friend-shoring and demand and order adjustments change
rapidly. At present the US’s imposition of tariffs on multiple regions increases the cost of the electronic
manufacturing service industry and the operating environment and competitive environment becomes
more complex. Electronic manufacturing service providers are also actively transforming and upgrading
striving to play a more important role in the supply chain.
(1) Deepened cooperation and integration between downstream customers and upstream electronics
manufacturing service providers
End consumer electronics brand owners cloud service provider and other brand manufacturers no longer
solely place their orders but become more deeply involved in the production process of electronic
manufacturing service providers including technology research and development production planning
quality control and other stages. Similarly electronic manufacturing service providers are no longer just
passively following orders but actively participate in the brand's product planning and design providing
professional technical and process advice thus forming a closer partnership between the two parties.
(2) Transformation to comprehensive service provider
Technological progress continues to promote the upgrading and iteration of electronic products and
equipment and the large-scale application of AI will promote the continuous development of electronic
products towards intelligence miniaturization and high performance. This makes enterprises in the
industry under greater operating pressure for a long time and needs to continuously invest in R&D to
launch new products that meet market demand; in terms of quality improvement improve product yield
and quality; in terms of cost reduction and efficiency by introducing intelligent and automated capacity
to reduce production costs and improve production efficiency. Enterprises in the industry need to actively
expand new products and customer incremental demand improve process intelligent manufacturing and
new product R&D so as to increase product added value.Upstream electronics manufacturing service providers will shift from simple product manufacturing to
providing comprehensive services. In addition to manufacturing hardware products they will also provide
full life cycle services including product design testing maintenance and after-sales services to stand out
in the fierce market competition.
(3) Data-driven collaborative decision-making
With the application of big data AI and other technologies brand manufacturers and electronic
manufacturing service providers increasingly rely on data to make decisions. By sharing data on
production sales marketing and other aspects both parties can more accurately predict market demand
optimize inventory management develop production plans and achieve intensive supply chain
management.
(4) Global layout and advantages in localized services
In order to reduce risk and improve the flexibility of the supply chain brand manufacturers tend to
cooperate with electronic manufacturing service enterprises with global layout capabilities to form a
diverse supplier system. Electronic manufacturing service providers will also actively expand into the
global market establish cooperative relationships with customers in different countries and regions and
achieve the optimal allocation of resources and the integration of global supply chains.
(5) Sustainable development and green transformation
In the context of the growing global emphasis on environmental protection and sustainable development
electronic manufacturing service providers will also take responsibilities. From product design raw
material procurement energy consumption and waste disposal in the production process to product
20 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
recycling and reuse promote the green transformation of products to reduce the negative impact of product
lifecycle on the environment.
3. Surging demand for AI computing power and data exchange
In 2025 generative AI models continued to accelerate their iteration leading to rapidly rising demand for
training and inference. As a result GPUs and AI servers remained in short supply while demand for
hardware products related to data transmission and data exchange increased significantly. Through
continuous iteration more LLMs have demonstrated lower costs and higher performance substantially
lowering the application threshold of AI technologies. Looking ahead this trend is expected to enable
more enterprises and developers to participate in the AI ecosystem thereby driving AI?enabled
transformation across a wide range of industries.Investment in AI computing power not only increases demand for hardware such as GPUs ASICs
switches and storage but also drives growth in demand for edge servers and AI accelerator cards. LLMs
require high efficiency low latency data transmission and exchange which is accelerating upgrades to
network infrastructure. Consequently demand for hardware products including high?speed optical fiber
networks high?speed optical modules HBM high?speed network interface cards switches thermal
management and server cooling systems is growing rapidly.The rapid development of AI has also led to a substantial increase in power consumption. Server power
supplies built on different chip architectures are undergoing upgrades in power capacity and as a
fundamental component of high?performance computing and data center infrastructure demand for power
supply systems has grown rapidly. At the same time against the backdrop of sharply rising electricity
consumption the high?efficiency server power supplies has become increasingly prominent in reducing
losses during the power conversion process and meeting the higher power?density requirements driven
by ongoing GPU advancements.
4. On-Device AI Implementation promotes the intelligent upgrade of consumer electronics
At present AI has been widely considered to be another groundbreaking milestone of scientific and
technological progress after steam engines internal combustion engines electricity semiconductors and
information technology and it has become a consensus that AI can empower all walks of life. Through
AI empowerment or AI+ consumer electronics products are expected to achieve new breakthroughs in
interaction patterns convenient operation enhanced original functions intelligent services and ecological
innovation. In addition driven by the need for data security and cost reduction the deployment of AI
models has also begun to move from the cloud to mobile endpoints and edge endpoints.With continuous breakthroughs in AI technologies and the enhancement of on?device computing
capabilities a wide range of AI models and applications are being deployed on end devices and iterating
rapidly fostering smart wearable devices into a new cycle of transformation. Leading global technology
companies are accelerating the rollout of AI?enabled edge products to build a new ecosystem characterized
by deep integration interconnected scenarios and proactive services. As a result smart wearables are
moving beyond simple data collection and notification functions and are gradually evolving into AI?driven
personal intelligent companions. Taking smart glasses as an example the deployment of AI at the device
level is driving their transition from “conceptual capture tools” to “all?day intelligent interactive terminals.”
By running generative AI models locally these devices are able to provide users with real?time translation
navigation payment functions multimodal contextual understanding and intelligent prompts.In the future people will use AI-empowered core endpoint devices such as mobile phones computers
smart glasses edge servers etc. in life scenarios such as home work and travel. With the help of high-
bandwidth low-latency and easy-to-access new generation communication technologies such as Wi-Fi
7 UWB mmWave etc. to achieve seamless connection and data interoperability with smart wearable
devices (such as Smart Watch TWS headphones XR devices etc.) and smart Internet of Things devices
such as home appliances office equipment etc. Based on the AI Internet of Things (AIoT) and large-scale
AI models AI is integrated with various electronic devices through active perception intelligent analysis
and real-time interaction to provide users with intelligent efficient and convenient services.
5. Global economic soft landing providing support for industrial products demand
In 2025 the global economy achieved moderate growth and demonstrated resilience beyond expectations
despite challenges such as geopolitical conflicts and frequent international trade frictions. According to
21 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
forecasts by the International Monetary Fund (IMF) the World Bank and the Organization for Economic
Co?operation and Development (OECD) global economic growth is expected to remain moderate in 2026
with a growth rate broadly comparable to that of 2025 .The moderate growth of the global economy will provide some support for demand for industrial products
but demand growth may be slow and regionally differentiated. The demand for industrial products in the
manufacturing infrastructure and new energy sectors is expected to continue to grow while the demand
in the traditional manufacturing and consumer goods sectors may be affected by economic restructuring
and the policy environment.
6. Electric vehicle penetration continued to expand while European and U.S. automakers faced
ongoing industry transformation.The growth rate of the global automobile market has slowed down significantly while new energy vehicles
still maintain a high growth rate. In the field of new energy vehicles Chinese automakers have gradually
gained an important share in the global market by virtue of their cost-effectiveness advanced battery
technology and rapidly developing intelligent networking capabilities. However European and American
automakers with their advantages in branding technology market and policy still hold a certain position
in the global automotive market. In the future they will accelerate technological innovation optimize
market layout strengthen supply chain management strengthen branding and use environmental
protection regulations subsidy policies and trade protection measures to compete with Chinese
automakers in all aspects.In the European and American automotive markets carbon emission regulations and subsidy policies will
continue to promote the popularity of electric vehicles. The market share of battery electric vehicles (BEVs)
and hybrid electric vehicles (HEVs) will further expand autonomous driving functions and intelligent
connected services will go mainstream and the competition between traditional automakers and Chinese
automakers and new power automakers will become more intense. European automakers will continue to
diversify their supply chains and reduce their reliance on a single supplier especially for battery and chip
supplies. The US government will continue to promote the return of auto parts production to North
America and reduce their reliance on China's supply chain.
7. Potential business opportunities for the development of robotics and embodied intelligence
The application of industrial robots and Industry 4.0 technologies in the electronics manufacturing
industry has become very common helping to achieve production efficiency improvement quality control
optimization intelligent logistics management human-machine collaboration equipment maintenance
and safety risk management. The development of service robots such as household cleaning robots and
logistics distribution robots is also on the rise. The release and continuous update iterations of Optimus
have led the rapid development of the entire robotics industry. Humanoid Robots and Embodied
Intelligence have become the cutting-edge fields of artificial intelligence and robotics with very broad
development potential and far-reaching impact.Robots need to integrate and use a wide variety of electronic devices ranging from microcontrollers
sensors motor drivers power management modules communication modules to machine vision artificial
intelligence and machine learning accelerators. Together these components form the core system of the
robot enabling it to perform complex motion control environmental awareness data processing and
human-machine interaction functions. The development of robotics is inseparable from the foundation
support of high-performance low-power and intelligent electronic devices which will also create a huge
increase in demand in the future.(III) Periodic regional and seasonal characteristics of the industry
1. Periodicity of industry development
The development of the EMS industry has a great cyclical relationship with downstream industries and
the electronic products industry is closely related to the macroeconomic situation. The demand for
electronic products is influenced by factors such as the macroeconomic environment economic cycles
consumer preferences and technological innovation. When the economy is booming the market demand
for electronic products is large and the growth rate is high which drives the production and sales of the
EMS industry; when the economy is in a downturn the purchasing power of consumers and enterprises
declines the demand for products decreases and the production and sales volume of industries decreases.
22 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
2. Regional characteristics of industry
The global EMS industry rose in Europe and America and then gradually shifted to Southeast Asia
Taiwan and Chinese mainland. At present China Southeast Asia India Mexico Eastern Europe have
become the regional centers of low-cost manufacturing in the EMS industry. The current trend of
"economic and trade regionalization" and "localization" manufacturing is conducive to the development
of low-cost manufacturing centers in the region but the Asia-Pacific supply chain represented by the
Chinese mainland still has the advantages of "industrial clusters" and "low cost".
3. Seasonal characteristics of industry operation
Affected by traditional consumption patterns orders from consumer electronics brand customers tend to
concentrate in the second half of the year resulting in certain degree of seasonality in the shipment and
revenue of the EMS industry. The first and second quarters of each year are the traditional off-season and
the second half of the year begins to enter the peak sales season. After climbing to the peak of shipments
month by month it normally declines.(IV) Competitive position of the Company in the industry
The Company is a world-renowned manufacturer in the EMS industry. In 2024 USI ranked 13th among
global EMS providers with its annual revenue growth rate and net operating margin ranking among the
top in the industry and net operating margin in the industry. The Company is an industry leader in SiP
miniaturization technology leading the industry in many business segments.III. Discussion and Analysis of Corporate Operations
USI is a global leader in electronic design and manufacturing services as well as a leader in the field of
SiP (System-in-Package) technology. The Company has 28 production and service locations across four
continents of Asia Europe Americas and Africa and offers customer diversified electronic products with
D(MS)2 product services: Design Manufacturing Miniaturization Industrial Software and Hardware
Solutions and Material Procurement Logistics and Maintenance Services.(I) An overview of the Company's performance in 2025
In 2025 AI technology and computing power investment continued to be the focus of global scientific
and technological development. The intelligent upgrade of consumer electronic products had a relatively
mild driving effect on market demand. The demand for industrial products gradually picked up. The
European and American automotive industries were facing a complex business environment in transition.Factors such as US dollar interest rates geopolitics and supply chain restructuring deeply affected the
global and regional supply and demand conditions and the economic boom required a longer recovery
period.In 2025 in response to the restructuring of the global supply chain and customers’ demand for localized
manufacturing the Company continued to expand its overseas production capacity. At the same time the
Company faced pricing pressure from customers seeking supply chain cost reductions which led to an
increase in operating costs. Nevertheless through continued investment in innovative businesses and
ongoing cost control measures the Company achieved certain positive results. The Company’s operating
revenue decreased by 2.46% YoY in 2025. Operating profit reached RMB 2.105 billion representing a
YoY increase of 12.39% which in turn contributed to corresponding growth in total profit and net profit
attributable to shareholders of the Company.(II) Changes in revenue
In 2025 the Company achieved operating revenue of RMB 59.195 billion representing a YoY decrease
of 2.46%. By product category revenue from consumer electronics products increased by 10.92% YoY
industrial products increased by 2.48% and medical electronics products increased by 12.79%. Revenue
from cloud and storage products decreased by 0.23% YoY revenue from communication products
decreased by 11.53% and revenue from automotive electronics products decreased by 24.45%.Changes in revenue by product category reflect changes in the global economy and end-market demand.Consumer electronics products recorded growth due to the recovery in end?market demand.Communication products experienced a decline in revenue as lower material procurement costs for major
customers led to reduced product selling prices. Automotive electronics products experienced a notable
23 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
decrease in revenue mainly due to some customers reducing outsourced manufacturing orders weakened
demand and changes in the scope of consolidated financial statements.(III) Changes in expenses and profits
In 2025 the Company’s gross profit margin was 9.49% remaining flat YoY. Benefiting from continued
cost control measures as well as gains on asset disposals arising from the sale of land by overseas
subsidiaries to indirectly controlled entities the Company’s operating profit margin increased to 3.56%
representing a YoY increase of 0.47 percentage points. In 2025 the Company achieved operating profit
of RMB 2.105 billion up 12.39% YoY.In 2025 the Company’s total selling expenses administrative expenses R&D expenses and financial
expenses amounted to RMB 3.866 billion representing a YoY decrease of RMB 134 million or 3.35%.Specifically administrative expenses decreased by RMB 78 million down 5.71% YoY; R&D expenses
decreased by RMB 6 million down 0.33% YoY; selling expenses decreased by RMB 5 million down
1.25% YoY; and financial expenses decreased by RMB 44 million down 14.16% YoY mainly
attributable to lower interest expenses in 2025. The Company’s selling administrative and R&D expenses
all declined to varying degrees primarily due to continued cost control measures and changes in the scope
of consolidation.Driven by the YoY growth in operating profit the Company achieved total profit of RMB 2.139 billion in
2025 representing a 15.41% YoY increase. Net profit attributable to shareholders of the Company
amounted to RMB 1.853 billion up 12.16% YoY.(IV) Key results of work in 2025
1. Focus on innovative businesses
Rapid growth in global investment in computing infrastructure is driving accelerated technological
upgrades and service iteration across the AI industry and its supply chain. North American CSP customers
are no longer seeking solely manufacturing services; instead they increasingly emphasize early?stage
collaborative R&D expecting supply?chain partners to jointly provide integrated solutions in order to
accelerate time to market.In 2025 the Company actively expanded its data?center?related businesses focusing on server boards
optical communications and AI server power supply solutions and accelerating the development of
products and production capacity.In the server board segment the Company strengthened collaboration with CSP customers achieving
revenue growth of over 200% in its AI accelerator card business. The Company plans to expand capacity
and enhance its smart manufacturing capabilities to maintain growth momentum and further increase
market share.In the optical communications segment the Company completed an investment to acquire a controlling
stake in EugenLight completing the product portfolio and establishing a comprehensive presence in
optical communications. The Company has launched 1.6T silicon photonics modules and has planned
investments at its Vietnam facility to build production capacity of 100000 units per month for 800G/1.6T
silicon photonics modules covering the full production flow including optical engines module assembly
and final testing.In the AI server power supply segment the Company is working closely with its parent company ASE to
develop vertical power delivery system solutions with HVDC input targeting future SoW process?based
server architectures.At the same time the Company plans to further expand its investment in Haiphong Vietnam and has
formally signed a memorandum of understanding with SHP (Sai Gon-Hai Phong Industrial Park
Corporation) for the expansion of its second Vietnam factory at Trang Due Industrial Park.
2. Strengthen the supply chain serving global manufacturing
The Company has developed local suppliers in each region to increase the proportion of localized supply
reduce transportation time and costs and enhance supply flexibility and response speed; proactively
cultivated domestic suppliers with competitive advantages in raw materials as well as equipment suppliers
for production testing and automation; leveraged scale and efficiency advantages to serve clients with
24 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
sizable demand; and additionally continuously improved global supply chain operations inventory
management process and system optimization and sustainability management.
3. Advance smart manufacturing capabilities
The Company’s global manufacturing facilities increased their smart manufacturing rating by 0.33 stars
to reach 3.37 stars. Over the year automation initiatives reduced costs by millions of dollars with the
development of 6 new universal automation platforms and the completion of 61 digital automation
modules (including 6 AI modules). Moving forward the Company’s automation enhancements will focus
on new projects for key clients aiming to lower automation equipment costs and deployment timelines
through centralized procurement and improved internal assembly capabilities.
4. Accelerate digital transformation
By addressing digital needs in R&D and management the Company leveraged technologies such as AI
applications to continuously refine workflows and employee performance. For instance the Digital
Transformation Center (DTC) brings together talent from diverse professional backgrounds within the
Company. Focusing on critical operational pain points identified through internal assessments the DTC
collaborates with internal and external experts to evaluate and deploy tailored digital tools. Partnering with
the corporate IT department it optimizes workflows and establishes cross-departmental communication
platforms via dedicated projects driving measurable efficiency gains.
5. ESG performance hits another milestone
For a long time the Company has been adhering to the concept of sustainable management practicing the
four strategic axes of "low-carbon mission recycling social integration and value co-creation" and
integrating the concept of sustainable development into the Company's strategy.The Company has been included in the S&P Global Sustainability Yearbook 2026 for four consecutive
years achieving outstanding performance in the Electronic Equipment Instruments & Componentsindustry group. With an overall score of 90 the Company has been honored as “Top 1% S&P Global ESGScore (China) ” for three consecutive years .IV. Analysis of core competitiveness during the reporting period
√Applicable □ Not Applicable
As a large design and manufacturing service provider in the field of electronic products the Company has
the following core competitive advantages:
(I) Prominent position in the industry and standardized corporate governance
The Company is a world-renowned manufacturer in the EMS industry. In the global ranking of EMS
providers the Company ranked 13th in revenue scale in 2024 with its annual revenue growth rate and net
operating margin of main business ranking top in the industry. The Company is a leading manufacturer in
many business segments and an industry leader in SiP miniaturization technology with a prominent
position in the industry.The Company attaches great importance to internal control and corporate governance strictly abides by
the requirements of laws and regulations and follows the relevant regulatory requirements of the Shanghai
Stock Exchange as well as the Taiwan Stock Exchange and the New York Stock Exchange where its parent
company ASE Technology Holding Co. Ltd is listed. The Company has been awarded the A-level rating
on information disclosure by the Shanghai Stock Exchange for 10 times and has won a series of honors
in the field of business operation and corporate governance.
25 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(II) Advantages of New Business Deployment under the Group’s Vertical Technological Integration
Rapid growth in global investment in computing infrastructure is driving accelerated technological
upgrades and service iteration across the AI industry and its supply chain. North American CSP customers
are no longer seeking pure manufacturing services; instead they increasingly require earlier?stage
collaborative research and development expecting supply?chain partners to provide integrated solutions
to accelerate time to market.The Company’s parent company ASE occupies a critical position in the global semiconductor
manufacturing ecosystem particularly in packaging testing and back?end manufacturing. In recent years
ASE has continued to increase investment in advanced packaging and has strengthened collaboration with
leading players across the industry chain through strategic alliances further consolidating and enhancing
its competitive position. Against this backdrop the Company is well positioned to play an increasingly
important strategic role in future enabling both parties to achieve synergistic effects improve integration
efficiency and cost competitiveness and potentially secure a leading position.The Company has actively expanded into AIDC related innovative business including computing boards
optical communications and server power supply solutions while deepening business collaboration and
vertical technological integration with ASE to deliver higher value?added solutions to leading customers.The Company’s innovative business portfolio is closely aligned with AI data center infrastructure
26 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
development representing a key component within the “energy–chip–infrastructure–model–application”
architecture. Over the past year the continuous iteration of AI models has enabled large?scale applications
to deliver tangible economic value further driving demand for underlying infrastructure investment. As a
result the Company’s innovative business lines are expected to benefit from the next cycle of capital
investment and to establish distinctive growth advantages in the AIDC sector.(III) Global layout and advantages in localized services
The trend of global economic and trade regionalization affects the reconstruction of the global supply
chain. In order to achieve the risk management needs of supply chain diversification some offshore
outsourcing turns to near-shore or friendly outsourcing. Facing the trend of the industrial supply chain the
Company has launched a glocalization strategic landscape: in 2018 USI acquired the Polish facility; in
2020 the Company acquired FAFG the second largest EMS company in Europe and has ever since
continued to integrate; in 2021 the Vietnam Facility started mass production; by 2022 the Company's
second factory in Nangang started production by 2024 the Company's second factory in Guadalajara
Mexico and the second building of the Poland factory were successively put into production. In recent
years the proportion of the Company's overseas factories' revenue to the total revenue has been
continuously increasing. By adopting a new operating model of "global platform localized service" the
Company promotes sustainable and sound growth.Through its global layout the Company not only globalizes its business cooperation and production bases
but also focuses on the global market and integrates global resources to become a more international
company. At present the Company has 28 manufacturing sites in 12 countries or regions including
Chinese mainland Taiwan Vietnam the United States Mexico France Germany the United Kingdom
the Czech Republic Poland and Tunisia. To meet customers' differentiated needs the Company provides
global customers with diversified manufacturing service solutions based on localized operating systems
in North America Europe Asia Pacific and North Africa and forms a competitive advantage in global
operations and differentiated services.(IV) Diversified business areas and rich product portfolio
The Company not only has the comprehensive strength of professional design and manufacture of
electronic products (covering electronic components spare parts and complete machines) and system
assembly but also has the advantages of strategic selection of sub-sectors and integration of products. The
Company has a diversified and balanced product portfolio covering five major fields of communication
electronics consumption electronics cloud and storage products industrial and medical electronics and
automotive electronics.At the same time the Company closely monitors and assesses industry development trends and flexibly
adjusts its business layout in response to market dynamics and customer needs with a strategic focus on
achieving breakthroughs in AIDC?related innovative business lines including computing boards optical
communications and server power supply solutions as well as in the edge AI segment.(V) Focus on automation and intelligent manufacturing
As a global leader in electronic design and manufacturing the Company has been taking "intelligent
manufacturing" as one of its important business strategies. The Company uses Industry 4.0 automation
27 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
technology to realize the intelligent manufacturing roadmap. At present technologies that have been
introduced include internal automation equipment communication network supporting 4G and 5G
Automatic Material Handling Systems (AMHS) fully automated manipulator testing unmanned workshop
and real-time production equipment status monitoring platform with remote access dashboard; AI
technology has been applied to the management of key production equipment production systems product
inspection systems and Digital Twin System. The Company will continue to comprehensively enhance
the intelligent manufacturing capacity and automation level of its regional manufacturing sites in Asia
Europe and North America. It plans to upgrade all factories that have been introduced into Industry 4.0
by an average of 0.22 star by 2026 and to have five lights-out factories by 2028 to achieve fully automated
production.(VI) Product innovation driven by R&D
The Company always attaches great importance to technology research and development and continues
to increase investment in research and development. From 2023 to 2025 the Company's R&D investment
was RMB 1.81 billion 1.91 billion and 1.90 billion respectively. As of the end of 2025 the Company had
an R&D team of 3030 employees and obtained 620 patents and 244 potential patents under application.For details of the Company’s R&D plan please refer to “Section VI Discussion and Analysis on theCompany’s Future Development - Business Plan.”
(VII) Long-term adherence to sustainable management
In face of a complex and ever-changing business environment corporate resilience has increasingly
become a part of the core competitiveness for a company to achieve sustainable operations. Highly
resilient companies can cope with a variety of unpredictable dynamic changes recover quickly from crises
and survive and thrive in adversity. USI not only focuses on risk control and crisis management but also
pays attention to forging resilience in corporate strategy organizational system operating system cultural
development and technological innovation.The Company always takes "be the most reliable provider for electronic design and manufacturing service"
as its vision and according to the United Nations Sustainable Development Goals (SDGs) it focuses on
the four dimensions of its Sustainability Strategy i.e. Low Carbon Circular Collaborative and Inclusive
strengthens employees' awareness of SDGs and cooperates with partners and communities to promote
economic growth and enhance productivity through sustainable development.The Company has been constantly improving the career planning performance appraisal and incentive
mechanism of employees providing a platform for the development of talents a channel for more
28 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
outstanding talents to join and a powerful talent guarantee for the Company to achieve its development
goals. The Company has established a long-term and effective employee incentive mechanism to improve
the cohesion of employees and enterprise competitiveness and ensure its long-term and stable
development. Since 2019 the Company has launched employee stock ownership plans and stock option
incentive plans according to operational needs. As of the end of 2025 the Company has launched three
stock option incentive plans granting a total of 59.45 million stock options with 34424615 shares
exercised by employees and six employee stock ownership plans transferring a total of 11576197 shares
from treasury shares to the plans.While operating steadily the Company takes the mission of "creating value for shareholders and sharing
growth with shareholders". In order to fully protect the interests of shareholders and enhance investor
confidence the Company has continuously launched share repurchase plans repurchasing 13037477
16042278 9356317 6740400 and 6321100 shares in 2019 2021 2022 2024 and 2025 respectively.
As of the end of 2025 the Company has achieved a cumulative net profit of RMB 19.26 billion and a
cumulative cash dividend (including the 2025 dividend plan) of RMB 6.9 billion since listing with an
average cash payout ratio of 35.83%.V. Main business operations during the reporting period
In 2025 the Company achieved operating revenue of RMB 59.195 billion representing a YoY decrease
of 2.46% compared to RMB 60.691 billion in 2024. The primary reasons for the change in operating
revenue were as follows: (1) Revenue from communication products decreased by 11.53% YoY mainly
due to product price reductions resulting from lower procurement costs of key materials; (2) Revenue from
consumer electronics products increased by 10.92% YoY primarily driven by higher sales volumes
resulting from market promotions by major customers; and (3) Revenue from automotive electronics
products decreased by 24.45% YoY mainly attributable to certain key customers reducing outsourced
manufacturing orders weaker customer demand and changes in the scope of consolidation.In 2025 the Company’s total selling expenses administrative expenses R&D expenses and financial
expenses amounted to RMB 3.866 billion representing a YoY decrease of RMB 134 million or 3.35%
compared with RMB 4 billion in 2024.In 2025 the Company achieved operating profit of RMB 2.105 billion representing a 12.39% increase
compared with RMB 1.872 billion in 2024. Total profit amounted to RMB 2.139 billion up 15.41% YoY
from RMB 1.854 billion in 2024. Net profit attributable to shareholders of the Company reached RMB
1.853 billion representing a 12.16% YoY increase compared with RMB 1.652 billion in 2024.
(I) Main business analysis
1. Analysis of changes in related items in income statement and cash flow statement
Unit: yuan Currency: RMB
Change
Item 2025 2024
(%)
Revenue 59195055821.58 60690651098.10 -2.46
Operating costs 53579581679.30 54929613226.02 -2.46
Sales expenses 404219301.75 409346671.29 -1.25
Administrative expenses 1292285437.01 1370514447.54 -5.71
R&D expenses 1901272779.33 1907549706.46 -0.33
Financial expenses 268387800.59 312651073.77 -14.16
Net cash flows from operating activities 2403926963.26 4210266611.54 -42.90
Net cash flow from investment activities -714520948.17 -1195865276.84 N/A
Net cash flow from financing activities -916900787.07 -1762974531.62 N/A
Explanation for the change in net cash flows from operating activities: During the current period accounts
receivable collections proceeded normally and the Company continued to strengthen inventory
management thereby maintaining stable cash inflows from operating activities.Detailed explanation of the major changes in the business type profit composition or profit source of the
Company in the current period
29 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
□Applicable √Not Applicable
2. Revenue and cost analysis
√Applicable □ Not Applicable
In the current period the Company's revenue from its main businesses decreased by 2.48% over the same
period last year and costs incurred by its main business decreased by 2.46% over the same period last
year. The specific analysis is as follows:
(1). Main business by sector product region and by sales mode
Unit: yuan Currency: RMB
Main business by product
Gross
Operating
profit Revenue Gross profit
Product Revenue Operating costs cost YoY
margin YoY (%) margin YoY (%)
(%)
(%)
Communication
18386356833.82 16999812185.28 7.54 -11.53 -11.48 Down 0.05 pct.
electronics
Consumer electronics 21299651643.18 19743335613.05 7.31 10.92 12.06 Down 0.94 pct.Industrial products 7585176551.35 6543063561.07 13.74 2.48 0.01 Up 2.13 pct.Cloud and storage
6082419829.05 4899742133.73 19.44 -0.23 -2.24 Up 1.66 pct.
products
Automotive
4511451062.52 4113513480.64 8.82 -24.45 -25.17 Up 0.87 pct.
electronics
Medical electronics 376589267.21 359518329.07 4.53 12.79 12.77 Up 0.02 pct.Others 871599334.38 920106086.66 -5.57 5.58 25.44 Down 16.72 pct.Total 59113244521.51 53579091389.50 9.36 -2.48 -2.46 Down 0.02 pct.Main business by region
Gross
Operating
profit Revenue Gross profit
Region Revenue Operating costs cost YoY
margin YoY (%) margin YoY (%)
(%)
(%)
Chinese Mainland 34762917485.81 31292441206.69 9.98 -7.28 -7.67 Up 0.38 pct.Other regions in
19813275302.72 18211477822.30 8.08 5.44 6.49 Down 0.90 pct.
APAC
Europe 5028859660.83 4640593791.25 7.72 -3.46 1.04 Down 4.12 pct.Others 5053134851.94 4700063172.01 6.99 -1.18 -6.28 Up 5.06 pct.Inter-segment
-5544942779.79 -5265484602.75 5.04 -7.44 -7.17 Down 0.28 pct.offsetting
Total 59113244521.51 53579091389.50 9.36 -2.48 -2.46 Down 0.02 pct.Explanation of the main business by sector product region and sales mode
As the Company adjusted its product classification prior?period figures were restated to ensure
comparability of period?on?period data.
(2). Analysis of production and sales volume
√Applicable □ Not Applicable
Sales
Production Inventory
Main products Production volume Sales volume Inventory volume
YoY(%) YoY (%)
YoY (%)
Communication
441171275.00441331838.0025110810.00-10.76%-10.72%-0.64%
electronics
Consumer
523884319.00517423291.0016027193.0017.50%16.75%67.54%
electronics
Industrial products 18106348.00 17859631.00 811440.00 -10.61% -12.00% 43.69%
Cloud and storage
18989634.0018669878.001200001.0023.51%21.21%36.33%
products
Automotive
69577597.0070800507.006841967.00-27.05%-25.40%-15.16%
electronics
Medical electronics 1150557.00 1128382.00 37651.00 28.86% 24.87% 143.29%
Others 6853201.00 6878414.00 66404.00 -14.75% -14.47% -27.52%
30 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Total 1079732931.00 1074091941.00 50095466.00 -0.04% -0.28% 12.69%
Explanation of production and sales volume
1. Growth in sales volume of consumer electronics products was primarily driven by promotional activities
of major customers.
2. Growth in sales volume of cloud and storage products was supported by robust demand for AI?related
products.
(3). Performance of major procurement contracts and major sales contracts
□Applicable √Not Applicable
(4). Cost analysis
Unit: yuan Currency: RMB
Cost analysis by product
Percentage Amount in the Percentage
YoY
Product Cost item 2025 in total cost same period last in total cost Note
(%)
(%) year (%)
Communication Raw materials 15720477976.48 92.47 17964667546.66 92.31 -12.49
electronics Labor and others 1279334208.80 7.53 1496613347.64 7.69 -14.52
Consumer Raw materials 18138807777.70 91.87 16411791453.95 93.15 10.52
electronics Labor and others 1604527835.35 8.13 1207380563.98 6.85 32.89
Cloud and storage Raw materials 4189130722.24 85.50 4310088572.15 85.99 -2.81
products Labor and others 710611411.49 14.50 702058048.78 14.01 1.22
Raw materials 5130384383.52 78.41 4964292613.31 78.97 3.35
Industrial products
Labor and others 1412679177.55 21.59 1321895531.84 21.03 6.87
Automotive Raw materials 2932312484.95 71.28 4174217256.15 75.94 -29.75
electronics Labor and others 1181200995.69 28.72 1322663834.04 24.06 -10.70
Raw materials 247257339.38 68.77 230364256.39 72.26 7.33
Medical electronics
Labor and others 112260989.68 31.23 88441171.99 27.74 26.93
Raw materials 530446431.37 57.65 541613669.73 73.84 -2.06
Others
Labor and others 389659655.29 42.35 191864959.29 26.16 103.09
Raw materials 46888817115.65 87.51 48597035368.34 88.47 -3.52
Total
Labor and others 6690274273.85 12.49 6330917457.56 11.53 5.68
Explanation of other aspects of cost analysis
None
(5). Changes in the consolidation scope due to equity changes of major subsidiaries during the
reporting period
√ Applicable □Not Applicable
On April 25 2025 the Company entered into an equity transfer agreement with its indirect controlling
shareholder Real Tech Holdings Limited to sell its indirectly held 75.1% equity interest in its controlling
subsidiary UNIVERSAL AMPLE TECHNOLOGY Co. LIMITED for a consideration of USD
49783000. The transaction was completed on September 1 2025.
(6). Major changes or adjustments in the business products or services of the Company during
the reporting period
□Applicable √Not Applicable
(7). Major customers and major suppliers
Explanation of the presentation of the following customer and supplier information calculated and
disclosed on a consolidated basis under the same control principle:
Customers or suppliers under the control of the same controlling party are regarded as the same customer
or supplier and are presented on a consolidated basis except for those ultimately controlled by the same
state?owned assets supervision and administration authority which are not aggregated.
31 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
A. The Company’s Principal Customers and Major Suppliers
√Applicable □ Not Applicable
The sales to the top five customers amounted to RMB 33.41 billion accounting for 56.45% of the total
annual sales; among the top five customers the sales to related parties amounted to 0 RMB accounting
for 0% of the total annual sales.The purchase amount from the top five suppliers was RMB 25.07 billion accounting for 50.57% of the
total purchase amount; among the top five suppliers the purchase amount from related parties was 0 yuan
accounting for 0% of the total purchase amount.B. During the reporting period the proportion of sales to a single customer exceeded 50% of the
total and there were new customers among the top 5 customers or heavy dependence on a few
customers.□Applicable √Not Applicable
During the reporting period the proportion of purchases from a single supplier exceeded 50% of
the total and there were new suppliers among the top 5 suppliers or heavy dependence on a few
suppliers.□Applicable √Not Applicable
C. Whether the Company’s shares were subject to delisting risk warning or other risk warnings
during the reporting period
Top five customers
□Applicable √Not Applicable
Top five suppliers
□Applicable √Not Applicable
D. Existence of trade business revenue during the reporting period
□Applicable √Not Applicable
Other explanations
The sales to the Company's top five customers are as follows:
Unit: 10000 yuan Currency: RMB
No. Customer name Amount Proportion (%)
1 Customer A 2343103.59 39.58
2 Customer B 354397.99 5.99
3 Customer C 247480.12 4.18
4 Customer D 210075.07 3.55
5 Customer E 186277.34 3.15
Total 3341334.11 56.45
The purchase amount of the Company's top five suppliers is as follows:
Unit: 10000 yuan Currency: RMB
No. Supplier name Amount Proportion (%)
1 Supplier A 1367658.02 27.58
2 Supplier B 867261.78 17.49
3 Supplier C 101958.96 2.06
4 Supplier D 95677.07 1.93
5 Supplier E 74687.14 1.51
Total 2507242.97 50.57
3. Expenses
√Applicable □ Not Applicable
32 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Unit: yuan Currency: RMB
Current Period Prior Period
Item Change YoY Remark
Amount Amount
Sales expenses 404219301.75 409346671.29 -5127369.54 -1.25
Administrative expenses 1292285437.01 1370514447.54 -78229010.53 -5.71
R&D expenses 1901272779.33 1907549706.46 -6276927.13 -0.33
Financial expenses 268387800.59 312651073.77 -44263273.18 -14.16
4. R&D investment
(1). Particulars of R&D investment
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Expensed R&D investment in the current period 1901272779.33
Capitalized R&D investment in the current period -
Total R&D investment 1901272779.33
Proportion of total R&D investment to revenue (%) 3.21
Proportion of capitalized R&D investment (%) 0
(2). Table of R&D personnel
√Applicable □ Not Applicable
Number of R&D personnel in the Company 3030
Proportion of R&D personnel in the total number of employees of the
13.95
Company (%)
Breakdown by educational background
Educational background Number of personnel
Doctor’s degree 17
Master’s degree 1167
Bachelor’s degree 1536
Junior college 277
Senior high school and below 33
Breakdown by age
Age Number of personnel
Under 30 years old (excluding 30 years old) 348
30-40 years old (including 30 years old and excluding 40 years old) 1038
40-50 years old (including 40 years old and excluding 50 years old) 1137
50-60 years old (including 50 years old and excluding 60 years old) 493
60 years old and above 14
(3).Remark
□Applicable √Not Applicable
(4).Reasons for major changes in the composition of R&D personnel and its impact on the future
development of the Company
□Applicable √Not Applicable
5. Cash flow
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Current Period Prior Period
Items Reasons for changes
Amount Amount
33 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Mainly due to normal collection of receivables during the
Net cash flows from
2403926963.26 4210266611.54 current period and the Company’s continued strengthening
operating activities
of inventory management.Primarily attributable to the disposal of land by
subsidiaries during the current period as well as the
Net cash flow from
-714520948.17 -1195865276.84 payment of the remaining consideration for the
investment activities
acquisition of the HCC in the corresponding period of
the previous year.Mainly due to the exercise of employee stock options
Net cash flow from during the current period as well as a higher amount of
-916900787.07-1762974531.62
financing activities short?term borrowings repaid in the corresponding
period of the previous year.(II) Explanation of significant changes in profit caused by non-essential business
□Applicable √Not Applicable
(III) Analysis of assets and liabilities
√Applicable □ Not Applicable
1. Assets and Liabilities
Unit: yuan Currency: RMB
Propor Propor
tion to tion to
Ending Balance Ending Balance
Items total total YoY Remark
(Current Period) (Prior Period)
assets assets
(%)(%)
Mainly due to a decrease in
Trading outstanding unsettled forward foreign
9800747.960.0242291303.910.11-76.83
Financial Assets exchange contracts at the end of the
current period.Mainly due to the receipt of a higher
Notes receivable 109607255.52 0.27 79450682.42 0.20 37.96 amount of notes at the end of the
current period.Mainly due to an increase in advance
Prepayments 92620111.45 0.23 53561714.38 0.13 72.92 payments for raw materials during the
current period.Non?current
- Mainly due to the collection of lease
assets due within 0.00 0.00 130008.72 0.00
100.00 receivables during the current period.
one year
Mainly due to cash capital reduction
Investments in
in industrial investment funds and
Other Equity 13587010.31 0.03 22769795.62 0.06 -40.33
changes in fair value during the
Instruments
current period.Mainly due to the completion of
acceptance of factory buildings by
Construction in
185146576.52 0.46 364667733.73 0.91 -49.23 overseas subsidiaries and their transfer
progress
to fixed assets during the current
period.Derivative Mainly due to changes in the fair
financial 2750760.31 0.01 4775306.67 0.01 -42.40 value of derivative financial
liabilities instruments during the current period.Mainly due to the netting of input and
Taxes payable 220849106.91 0.55 390100700.18 0.98 -43.39 output VAT of overseas subsidiaries
during the current period.Non-current Mainly due to the reclassification of
liabilities due 344241485.07 0.85 193691444.57 0.48 77.73 long?term borrowings payable within
within one year one year to current liabilities.Mainly due to subsidiaries’ payment
Other current
7067308.83 0.02 11106077.85 0.03 -36.37 of employee costs related to relocation
liabilities
during the current period.Long-term Mainly due to an increase in long?term
125534368.000.3129872115.040.07320.24
Borrowings borrowings by overseas subsidiaries.
34 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Mainly due to the conversion of bonds
Bond payable 2107520109.67 5.21 3467944609.76 8.67 -39.23
payable into equity.Mainly due to an increase in income
Long?term
27115905.87 0.07 18348682.49 0.05 47.78 tax provisions related to Pillar Two
payables
during the current period.Mainly due to the reversal of
Estimated
49702177.15 0.12 74187068.91 0.19 -33.00 previously accrued product quality
Liabilities
assurance provisions by subsidiaries.Other
Mainly due to an increase in factory
non?current 1799639.99 0.00 1317464.14 0.00 36.60
lease deposits paid by subsidiaries.liabilities
Other equity Mainly due to the conversion of bonds
205965039.670.51409888096.261.02-49.75
instruments payable into equity.Mainly due to the conversion of bonds
Capital reserve 3769132106.24 9.31 2049016598.82 5.12 83.95
payable into equity.Mainly due to share repurchases
Treasury Stock 233565519.89 0.58 100052846.15 0.25 133.44
conducted during the current period.Mainly due to the disposal of equity
Minority interests in overseas subsidiaries
495721.370.00124007588.440.31-99.60
interests during the current period resulting in
changes in the scope of consolidation.Other explanations
None
2. Overseas assets
√Applicable □ Not Applicable
(1) Asset size
Including: overseas assets 20099760316.86 (unit: yuan; currency: RMB) accounting for 49.65% of the
total assets.
(2) Relevant explanations on the relatively high proportion of overseas assets
√Applicable □ Not Applicable
Unit: RMB 10000 yuan
Operating Operating Revenue Net Profit
Overseas assets Causes
model (Reporting Period) (Reporting Period)
Universal Global Scientific Independent
Establishment 1123704 38369
Industrial Co. Ltd. operation
Universal Global Technology Independent
Establishment 2335 -5567
Co. Limited operation
Universal Global Industrial Co. Independent
Establishment 659 1088
Limited operation
UNIVERSAL SCIENTIFIC
INDUSTRIAL Independent
Establishment 579665 9909
VIETNAM COMPANY operation
LIMITED
Universal Scientific Industrial Independent
Establishment 562 -308
(France) operation
Universal Scientific Industrial Business combination Independent
432884-2497
De México S.A. De C.V. under common control operation
Universal Scientific Industrial Business combination Independent
2750625173
Co. Ltd. under common control operation
3. Restrictions on major assets as at the end of the reporting period
□Applicable √Not Applicable
4. Other explanations
□Applicable √Not Applicable
35 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(IV) Analysis of industry business information
√Applicable □ Not Applicable
1. In terms of communication products Apple smart phones accounted for 19% of the global smart phone
market in 2025 with sales volume reaching 231 million units an increase of 1% over that of 2024.WW Smart Phone Estimated Market Share
2024202524'25
Shipments Market Shipments Market YoY
(M units) Share% (M units) Share% Growth%
Worldwide Total 1194 1221 2.3%
Samsung 224 19% 235 19% 7%
Apple 219 18% 231 19% 3%
Xiaomi 160 13% 168 14% 5%
OPPO 140 12% 141 12% 0%
Transsion 99 8% 99 8% 0%
Others 351 29% 403 33% 15%
Source: USI compilation February 2026
2. In terms of consumer electronics products in 2024 the wearable product shipments grew by 6.1%
overall 5.6% for earphones 9% for watches and augmented reality/virtual reality (AR/VR) represented
by Glasses AR HMD VR HMD is expected to have a high CAGR in the future.WW Wearable Market Forecast
24/25 24-28 2024 2025F 2026F 2027F 2028F
Growth CAGR
Total Shipment (M Units) 545 587 617 645 666 5.3% 5.1%
Earwear 341 363 380 398 411 6.5% 4.8%
Smartwatch 153 162 166 169 171 5.9% 2.8%
Wrist Band 39 45 44 43 42 15.4% 1.9%
Glasses 3.0 9.0 15.0 17.0 19.0 200% 58.6%
AR HMD 7.0 4.0 7.0 10.0 12.0 -43% 14.4%
VR HMD 1.0 1.0 2.0 6.0 7.0 0% 62.7%
Others 1.0 1.0 1.0 1.0 1.0 0.0% 0.0%
Source: USI compilation February 2026
3. In the cloud and storage products segment driven by the continued surge in global computing power
demand shipments of optical modules are expected to continue to grow significantly while the compound
annual growth rate (CAGR) of AI servers is projected to be markedly higher than that of the overall server
industry. By strengthening collaboration with key customers the Company is seeking to secure a greater
share of the market and orders related to AI hardware.
3.1 WW Server Shipment Forecast
Server 2024 2025 2026 2027 2028 2029
CAGR
Shipments
1488815636160581721517834182985.1%
(K Units)
YoY% 1.8% 5.0% 2.7% 7.2% 3.6% 2.6%
Source: USI compilation February 2026
3.2 AI Server Shipment Forecast
AI Server 2024 2025 2026 2027 2028 24-28 CAGR
Shipments
1434179020952324251715.1%
(K Units)
36 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Source: USI compilation February 2026
3.3 Switches Shipment Forecast
Switch 2024 2025 2026 2027 2028 2029
CAGR
Revenue
38.542.446.349.251.152.95.7%
($ Billion)
YoY% 11.9% 10.1% 9.2% 6.3% 3.9% 3.5%
Source: USI compilation February 2026
3.4 SSD Shipment Forecast
24’2525-29
SSD 2024 2025 2026 2027 2028
YoY CAGR
Total SSD Revenue
54.070.098.6138.9195.729.5%40.9%
($ Billion)
Source: USI compilation February 2026
3.5 Optical Transceiver Shipment Forecast
Optical Transceiver 2024 2025F 2026F 2027F 2028F
CAGR
Shipments
951324200637008516711386886.0%
(thousand units)
Source: USI compilation February 2026
4. In terms of industrial products the market of smart handheld devices and POS grew by 10% in
2025 due to the recovery of logistics and warehousing demand and the recovery of retail industry.
24'25 24-28 20 24 20 25 20 26 20 27 20 28 YoY CAGR
Total POS Revenue
11012113114215310%8%
($ Billion)
Source: USI compilation February 2026
5. In terms of the automotive products 2025 automotive electronics market grew by 11% and the
CAGR from 2025 to 2028 is expected to be 11%.
5.1 Global Automotive Electronics Market Forecast
24'25 25-28 20 24 20 25 20 26 20 27 20 28 YoY CAGR
Total AE Revenue
28131235738841111%9.6%
($ Billion)
Source: USI compilation February 2026
5.2 Global Electric Vehicle Market Forecast
Electric 24'25 25-28
2024202520
Vehicle
26 20 27 20 28 YoY CAGR
Total
2210020430228002570028800-8%12%
(K units)
Source: USI compilation February 2026
5.3 Total Auto Power Module
24'25 25-28 202 4 20 25 202 6 202 7 20 28 YoY CAGR
Auto Power Module
34733340355737884035-4%7%
($ Million)
Source: USI compilation February 2026
37 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
6. In terms of medical electronic products the market demand for outsourced electronic
manufacturing services has been growing steadily.Medical Product 24'25 25-28
Assembly Value 2024 2025 2026 2027 2028
($ Million) YoY CAGR
Total 63891 67865 72043 76605 81632 6.2% 6.4%
Medical Diagnostics 25564 27200 28913 30764 32702 6.4% 6.3%
Therapeutic 14491 15302 16144 17129 18208 5.6% 6.0%
Monitoring &
23837253622698628713307236.4%6.6%
Surgical
Source: USI compilation February 2026
38 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(V) Analysis of investment
Overall analysis of foreign equity investment
√Applicable □ Not Applicable
As of the end of the reporting period the Company's long-term equity investment was RMB 528 million an increase of RMB 12 million or 2.28% from the beginning
of the year. The primary reason is the recognition of investment gains or losses under the equity method during the current period.
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
Unit: yuan Currency: RMB
Gain or loss from Cumulative Impairment
Sales/redemption
change in fair changes in fair provision in Purchase amount in
Category of assets Opening balance amount in the current Other changes Ending balance
value in the current value included in the current the current period
period
period equity period
Stocks 84985163.62 -21669554.00 -3063043.91 - 6909500.00 -7085303.75 771123.35 60847885.31
Private equity funds 138877865.84 28266071.52 - - - -25796085.44 -2090873.41 139256978.51
Derivatives 37515997.24 -32507770.89 - - - -114384239.37 116426000.67 7049987.65
Wealth management
----10014000000.00-10046317623.4932317623.49-
products
Total 261379026.70 -25911253.37 -3063043.91 - 10020909500.00 -10193583252.06 147423874.10 207154851.47
39 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Investment in securities
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Gains and
Gain or loss from Cumulative
Purchase Sales amount in losses on
Type of Initial cost of Source Beginning book change in fair changes in fair Ending book Accounting
Stock code Stock abbreviation amount in the the current investments in
security investment of fund value value in the value included value items
current period period the current
current period in equity
period
Self- Investments in
TriKnight Capital
Stocks 19020375.77 owned 22769795.62 - -3063043.91 - -7085303.75 965562.35 13587010.31 other equity
Corporation
funds instruments
Senscomm Self- Other non-
Stocks Semiconductor Co. 20000000.00 owned 17838568.00 -8838568.00 - - - - 9000000.00 current
Ltd. funds financial assets
Self- Other non-
Stocks PI Semiconductor 30000000.00 owned 30000000.00 1351375.00 - - - - 31351375.00 current
funds financial assets
Self- Other non-
Stocks Questyle 6909500.00 owned - - - 6909500.00 - - 6909500.00 current
funds financial assets
Self- Other non-
Stocks NeuroBlade Ltd 14224800.00 owned 14376800.00 -14182361.00 - - - -194439.00 - current
funds financial assets
Total / / 90154675.77 / 84985163.62 -21669554.00 -3063043.91 6909500.00 -7085303.75 771123.35 60847885.31 /
Investment in securities
√Applicable □ Not Applicable
The increase during the current period was mainly attributable to the purchase of Questyle which resulted from the reclassification of the equity?accounted long?term
equity investment to other non?current financial assets.Investment in private equity funds
√Applicable □ Not Applicable
1. Glory Ventures
The Company signed the Suzhou Glory Ventures Equity Investment Partnership (Limited Partnership) Agreement with Shanghai Glory Ventures Investment
Management Co.LTD and 21 other limited partners (LP). USI invested in Suzhou Glory Ventures Equity Investment Partnership (Limited Partnership) as an LP. The
total subscription amount payable by the Company was RMB 30000000.00. As of December 31 2024 the Group had fully paid RMB 30000000.00 in aggregate
with no outstanding unpaid subscription amount (full capital contribution completed).
2. Tianjin Haihe Yaozhong Equity Investment Partnership (Limited Partnership)
40 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
On January 9 2026 the Company entered into the Partnership Agreement of Tianjin Haihe Yaozhong Equity Investment Partnership (Limited Partnership) with
Tianjin Wenzhong Investment Management Co. Ltd. and 12 other partners. As a limited partner the Company committed to invest in Tianjin Haihe Yaozhong Equity
Investment Partnership (Limited Partnership) with a capital contribution of RMB 30 million. As of the date of this report the Company has completed its initial capital
contribution of RMB 12 million in accordance with the aforesaid partnership agreement.Investment in derivatives
√Applicable □ Not Applicable
(1). Derivative investments for hedging purposes during the reporting period
□Applicable √Not Applicable
(2). Derivative investments for speculative purposes during the reporting period
□Applicable √Not Applicable
Other explanations
The Seventeenth Meeting of the Sixth Session of the Board of Directors and the 2024 Annual General Meeting of Shareholders of the Company reviewed and approved
the Proposal on the Amount of Financial Derivatives Transactions agreeing that the Company may carry out financial derivatives transactions. The Company expected
that the total amount of foreign exchange hedging transactions from April 1 2025 to March 31 2026 would be limited to USD 1 billion (or the equivalent of other
currencies) and that such amount could be utilized on a rolling basis within the approved limit. Subsequently the Twentieth Meeting of the Sixth Session of the Board
of Directors and the First Extraordinary General Meeting of Shareholders in 2025 reviewed and approved the Proposal on Increasing the Amount of Financial
Derivatives Transactions and Extending the Authorization Period pursuant to which the transaction limit was increased to USD 1.9 billion and the authorization
period was extended in its entirety to April 30 2026. In 2025 the Company’s cumulative transaction amount in financial derivatives reached USD 10.869 billion. As
of December 31 2025 USD 10.202 billion of the transactions had been settled while USD 0.667 billion remained unsettled. The Company recorded realized gains
of RMB 148933771.56 and unrealized losses of RMB 32507770.89 during the year.
41 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
4. Specific progress of material asset restructuring and integration during the reporting period
□Applicable √Not Applicable
(VI) Sale of material assets and equity
□Applicable √ Not Applicable
Analysis of major holding and joint stock companies
√Applicable □ Not Applicable
1. Holding subsidiaries
Unit: RMB 10000 yuan
Company Registered capital Total Net
Company Name Main business Net profit
type (RMB) assets assets
Production and sales
Universal Global Scientific Holding NTD
product design and 664126 330278 38369
Industrial Co. Ltd. subsidiary 1980000000
R&D
UNIVERSAL GLOBAL
Holding
TECHNOLOGY(KUNSHA Production and sales RMB 550000000 314298 167649 38766
subsidiary
N)CO. LTD.Universal Global Holding
Trade and Investment USD 524803000 806298 517207 -5567
Technology Co. Limited subsidiary
Universal Global Production and sales
Holding RMB
Technology (Shanghai) Co. product design and 255581 159169 7792
subsidiary 1330000000
Ltd. R&D
Universal Global
Holding
Technology (Huizhou) Co. Production and sales RMB 800000000 203579 121686 22295
subsidiary
Ltd
Universal Global Industrial Holding
Trade and Investment USD 51000000 275164 41749 1088
Co. Limited subsidiary
Contract
Universal Scientific Industri Holding manufacturing Mexico MXN
40847768387-2497
al De México S.A. De C.V. subsidiary product repair and 2293299926
related services
UNIVERSAL SCIENTIFIC Production and sales
Holding
INDUSTRIAL VIETNAM product design and USD 115000000 294068 115776 9909
subsidiary
COMPANY LIMITED R&D
Universal Scientific Industri Holding
Investment EUR 321374822 290282 270083 -308
al (France) subsidiary
Asteelflash (Suzhou) Holding
Production and sales USD 18000000 143503 100590 8844
Co.Ltd. subsidiary
Note 1: the registered capital includes the amount of re-investment to other subsidiaries and the amount
of total assets net assets and net profit is from standalone financial statements not including subsidiaries.Note 2: the above are subsidiaries within the scope of the consolidated statements that meet the conditions
that one of the indicators of total assets operating income and net profit accounts for more than 5% of the
corresponding amount in the consolidated statements.
2. Affiliates
Unit: RMB 10000 yuan
Currency of Registered
Total Net Net
Company Name % registered capital
assets assets profit
capital (RMB)
M-Universe Investments
42.23 USD 138969126 173063 125099 7880
PTE.LTD.Note: the above are affiliates that meet the conditions that one of their indicators of net assets and net
profit accounts for more than 1% of the corresponding amount in the consolidated statement.
3. Subsidiaries or affiliates that contributed over 10% to the net profit of the Company
Unit: RMB 10000 yuan
Operating Contribution
Company Name Revenue Net profit
profit to
42 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
consolidated
net profit
UNIVERSAL GLOBAL
TECHNOLOGY(KUNSHAN)CO. 490789 44755 38766 21.20%
LTD.Universal Global Scientific
1123704437723836920.98%
Industrial Co. Ltd.Universal Global Technology
291090246202229512.19%
(Huizhou) Co. Ltd
(VII) Structured entities controlled by the Company
□Applicable √Not Applicable
VI. Discussion and analysis of corporate development in the future
(I) Industry landscape and trends
√Applicable □ Not Applicable
1. Global market capacity of the industry
According to the reports by professional market research institutions compiled by the Company the global
electronic manufacturing service (EMS) revenue exceeded USD 682.7 billion in 2025 and is expected to
reach USD 820 billion in 2029 growing at an average CAGR of 4.7% from 2025 to 2029. The overall
market shows a steady growth trend and the Asia-Pacific region will maintain a leading growth rate.Source: USI compilation February 2026
The Worldwide CM EMS and ODM Market by Region 2023-2028 unit: USD 1 million
The Worldwide CM EMS and ODM Market by Region 2024-2029
CAG
202420252026202720282029
R
CM Revenue
Americas 125780 130922 136592 142725 149275 156221 4.4%
EMEA 98108 102223 106409 110659 114972 119341 4.0%
APAC 434588 449528 469850 492387 516549 547643 4.7%
Total 658476 682673 712851 745770 780796 823205 4.6%
EMS Revenue
Americas 123188 128239 133804 139825 146257 153058 4.4%
EMEA 95431 99439 103516 107656 111855 116106 4.0%
APAC 308913 319246 333961 350329 367971 391104 4.8%
Total 527531 546923 571281 597811 626084 660268 4.6%
43 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
ODM Revenue
Americas 2592 2683 2788 2899 3018 3163 4.1%
EMEA 2677 2784 2893 3003 3117 3235 3.9%
APAC 125675 130283 135889 142057 148578 156539 4.5%
Total 130945 135750 141569 147959 154712 162937 4.5%
Source: USI compilation February 2026
2. Global competitive landscape and industry ranking
According to the latest ranking of global EMS providers (2024) USI ranked 13th.Unit: USD 100 million
Name of Annual Net operating
Revenue Revenue
Rank manufacturer growth rate margin
Year 2023 2024 23'24 2024
1 Honghai 1978 2140 8.2% 2.5%
2 BYD 848 1091 28.5% 5.4%
3 Quanta 349 440 26.1% 4.3%
4 Lixun 294 394 34.0% 3.5%
5 PEGATRON 404 351 -13.2% 1.7%
6 Wistron 304 327 7.3% 2.9%
7 COMPAL 345 284 -17.7% 1.3%
8 Jabil 335 275 -17.8% 5.1%
9 Flextronics 280 256 -8.6% 4.0%
10 INVENTEC 166 201 20.9% 1.1%
11 Delta 129 131 1.9% 9.6%
12 Celestica 80 96 21.2% 4.4%
13 USI 86 85 -1.1% 2.7%
Whole Industry 6412 7110 10.9% 2.6%
Source: USI compilation February 2026
3. Industry trend of profit level and analysis of net profit margin
The Company's net profit margin in 2024 was 2.7% higher than the average of the world's top ten
electronics manufacturing service providers. In 2025 the Company's net profit margin was 3.1% an
increase of 0.4 percentage points compared to 2024. This was mainly attributable to the Company’s
continued enhancement of operational efficiency and strengthened control over costs and expenses
throughout 2025.Overall supported by technological innovation and market demand profit margins in the global EMS
industry are expected to remain stable or improve slightly. AI hardware and smart wearables are among
the fastest?growing demand segments. However rising raw material costs tight labor markets and
increasing logistics expenses have exerted pressure on margins. In response companies are enhancing
operational efficiency through the adoption of intelligent manufacturing technologies and optimizing
supply chains to reduce costs and improve supply chain resilience. Nevertheless global economic risks
stemming from geopolitical factors rising energy prices as well as fluctuations in interest rates and
exchange rates have inevitably imposed additional costs and risks on enterprises.
4. Industry landscape
44 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(I) Basic situation of the industry
Since 2023 generative AI and large models have attracted much attention and major Cloud Service
Providers manufacturers have continued to ramp up AI related investment driving the continuous
expansion and upgrading of server optical communication power supply and related hardware industries.Consumer demand for alternative consumer products has not yet been fully released but as AI technology
empowers and accelerates the application of major endpoint brands it is expected to break the lack of
innovation in consumer electronics products. AI Phone AI PC smart glasses and other "AI +" consumer
electronics products will continue to attract more attention and products with better demand for hardware
performance will also promote the demand for electronic manufacturing services. In addition to consumer
electronics the application of AI technology will also drive innovation in areas such as intelligent driving
and humanoid robots and create new market demand.
(2) Production capacity supply
Global trade protectionism and geopolitical factors continue to escalate. In order to reduce the uncertainty
and risks of the supply chain European and American companies have paid more attention to
strengthening the supply chain in the region resulting in the transfer of the electronic manufacturing
service industry to Southeast Asia India Mexico and Eastern Europe. The impact of tariffs on the supply
chain may further exacerbate the process of industrial transfer which requires comprehensive
consideration of potential tariffs transportation costs localized supply chain resources and technical
talent resources. Enterprises need to make capacity layout and resource allocation between different
regions to cope with the uncertainty of trade policy. In order to improve production efficiency and quality
the electronic manufacturing service industry will increase investment in automation and intelligent
manufacturing reduce the use of direct labor and improve the flexibility and responsiveness of production
capacity.
(3) Supply chain trends
Under the pressure of customers to reduce costs electronic manufacturing service enterprises are
accelerating the optimization of the supply chain and improving the manufacturing sites' localized supply
chain. Customers are also placing greater emphasis on supply chain resilience and tend to strengthen
cooperation with supply chain partners in order to achieve resource sharing and risk sharing.
(4) Technological development
With the continuous development of integrated circuit technology the electronic manufacturing service
industry will develop towards high integration and miniaturization and the miniaturization of components
will place better demands on process technology manufacturing process innovation processing
equipment and testing equipment. In order to better meet the diverse needs of the market the electronic
manufacturing service industry will place greater emphasis on the development of flexible manufacturing
technologies in the future enabling high-mix low-volume manufacturing production patterns. Artificial
intelligence big data and the Internet of Things will be more widely used in the production process to
achieve intelligent production scheduling quality control and equipment maintenance. Artificial
intelligence will enable the production system to have self-awareness self-decision-making and self-
evolution capabilities and promote manufacturing activities from experience-driven to data-driven. The
industry will also strengthen the digital management of the supply chain improve the transparency and
efficiency of the supply chain through blockchain cloud computing and other technologies and realize
the visualization and collaborative management of the supply chain. With the improvement of
environmental protection and carbon reduction electronics manufacturing enterprises will place greater
emphasis on the development and application of green manufacturing technologies reducing energy
consumption and environmental pollution.
(5) Changes in Client Server Requirements
In order to reduce supply chain risk well-known brand manufacturers tend to cooperate with electronic
manufacturing service enterprises with global layout capabilities requiring manufacturing service
enterprises to have the ability to respond quickly to changes in market demand. In order to maintain cost
competitiveness customers expect manufacturing service companies to provide more technological
innovation solutions including hardware design and software design and to establish closer R&D
partnerships with customers. In addition due to consumers' growing awareness of environmental
45 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
protection and sustainable development manufacturing service companies are also paying increasing
attention to energy conservation and carbon reduction issues and sustainable development.
5. Industrial barriers
(1) Barriers of R&D and manufacturing capacity
The technological innovation of electronic products is changing with each passing day and the product
upgrade cycle is shortened requiring manufacturing service providers to continuously enhance their
product design and process research and development capabilities. The manufacturing service industry is
transforming and upgrading to intelligent manufacturing through automated production and Industry 4.0
technology to improve product quality process stability and on-time delivery. There is a very high
threshold for manufacturing service providers to have high-level product R&D and intelligent
manufacturing capabilities capacity economies of scale and quality control systems.
(2) Barriers to entering brand owners' supply chain
The electronic manufacturing services industry is highly competitive. To establish partnerships with major
brand manufacturers and integrate into their global supply chains companies must undergo rigorous
quality management system audits and obtain product performance certifications. Therefore strict vendor
qualifications are the barrier for new entrants.Due to the rapid development of technological innovation the product market has undergone rapid
changes and industry competition has intensified compounded by trade protection factors such as
geopolitics and tariffs. In order to cope with cost increases and enhance supply chain competitiveness
leading brand manufacturers expect to choose suitable electronic manufacturing service providers deepen
business and investment cooperation in manufacturing services cooperative research and development
product planning and design and supply chain strategies and develop closer long-term partnerships.
(3) Barriers of sufficient capital investment
The EMS providers must have the manufacturing capacity matched with the business scale of their large-
scale brand customers which requires sufficient investment in fixed assets such as equipment plants
supporting facilities etc. which requires high initial investment and subsequent investments in
technologies and equipment renewal along with constant product upgrades; on the other hand mass
production needs large-scale complete procurement system for which a large amount of working capital
is required.
(4) Barriers of global business footprint
Large brand manufacturers hope that long-term cooperative electronic manufacturing service providers
can provide a package of solutions from R&D design manufacturing after-sales etc. with intelligent
manufacturing and global manufacturing service capabilities and can provide customers with global
localized manufacturing services and delivery solutions to meet the needs of customer supply chain
diversification and risk management. In addition the increasing demand for nearshoring and friend-
shoring is conducive to large brand manufacturers facing risks such as trade policy changes and
geopolitical conflicts reducing the degree of impact on the supply chain ensuring stable production and
delivery of products and having a global business layout is essential for top-tier clients in the service
industry.(II) Corporate Development Strategy
√Applicable □ Not Applicable
1. Challenges ahead
(1) Demand from European and U.S. customers for overseas production capacity has increased
particularly for technology?intensive products. To meet customer requirements the Company needs to
make additional capacity investments while optimizing the allocation of capacity across its global
manufacturing sites. Meanwhile declines in capacity utilization at certain facilities together with costs
related to business restructuring have directly affected the Company’s profitability.
46 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(2) The continued impact of factors such as geopolitics tariff increases and trade protection has led to
higher costs in serving customers. In addition responding to unforeseen events may require incremental
expenditures and could adversely affect normal operations.
(3) Customers have put forward more service requirements for supply chain cost reduction intelligent
manufacturing cooperative R&D and selection of manufacturing service bases. The Company needs to
adapt to new trends and accelerate transformation and development.
(4) The Company’s newly invested production capacity and newly deployed business initiatives require
ongoing and increased investment as well as the integration of additional resources to drive business
growth.
(5) The Company has become a global operating enterprise facing a multi-cultural multi-lingual multi-
ethnic and multi-time zone operating environment. It needs to establish a more complete system in terms
of strategy implementation operation management internal collaboration team building and incentive
mechanisms.
2. Corresponding strategies
(1) The Company has clearly defined its business development priorities. In the AI data center sector it
focuses on the development of AI computing boards optical communications and server power supply
businesses. By integrating its modular business resources and strengthening technological collaboration
and vertical integration with its parent company the Company aims to cultivate future core business
segments and build differentiated competitive advantages.
(2) Aligning with the "global demand localized service" trend the Company will strategically allocate
global production capacity. Through advanced manufacturing processes flexible production capabilities
and localized services we will deliver additional value by introducing new technologies developing
innovative products and shortening the timeline from conceptual design to mass production for customers.
(3) Optimizing production capacity and business layout the Company will accelerate capacity investment
in Southeast Asia to meet customer demands improve operational efficiency and profitability of the
Mexico plant and prioritize overall capacity utilization across global manufacturing facilities.
(4) Enhancing supply chain resilience and flexibility the Company will develop regional local suppliers
continuously upgrade smart manufacturing capabilities worldwide and actively cultivate competitive
domestic suppliers for raw materials production equipment testing instruments and automation systems.The Company’s scale and efficiency advantages will better serve clients with substantial demand.
(5) Increasing R&D investment in critical technologies and application fields the Company will enhance
design capabilities and JDM/ODM services. Through resource integration across the group technology
sharing and independent innovation The Company will strengthen vertical integration and industrial
collaboration across the supply chain to boost competitiveness.
(6) The Company proactively undertakes M&A as well as strategic investments in priority business sectors
to foster innovation?driven growth advance product upgrades and generate new sources of revenue. By
leveraging CVC in industry funds and potential strategic partners the Company supports collaborative
innovation and enhances its industry ecosystem.
(7) Supporting corporate development strategy the Company will establish more competitive
compensation and incentive systems intensify employee skills training improve internal talent
development mechanisms as well as cultivate and recruit global operation professionals.
(8) Maintaining a robust financial structure to meet capital requirements for global operations and M&A
investments while ensuring financial stability.(III) Business plan
√Applicable □ Not Applicable
1. Growth plan
The Company will adhere to the development strategy of "modularization diversification and
globalization" enhance vertical integration and intelligent manufacturing capabilities improve the global
production and operation system and promote endogenous growth. At the same time the Company will
47 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
continue to invest in M&A activities and continuously drive the growth and development of innovative
businesses.The Company will more prudently arrange human resources and capital expenditure balance the annual
financial goals and long-term investment plans and expand digital management according to the needs of
business development and global operations to contribute to the intelligent and automatic production.The Company's growth plan mainly includes:
(1) Strive to maintain market share in core clients’ SiP module business strengthen the promotion of
miniaturization technology and SiP module applications accelerate new product R&D and client
expansion continue expanding module business revenue scale and intensify efforts in developing new
products and applications such as smart wearables and smart home devices.
(2) The Company is accelerating the development of new business opportunities by focusing on computing
boards optical communications and server power supply. By proactively addressing customer
requirements and overcoming key bottlenecks the Company seeks to improve customer satisfaction and
capture incremental orders.
(3) Expand production capacity in Southeast Asia optimize operational efficiency of local manufacturing
services around the world and actively develop local suppliers to improve supply chain resilience and
flexibility.
(4) Enhance software design and solution capabilities continuously develop AI-driven software
application services and seek new collaboration opportunities through hardware-software integration with
existing clients and new markets.
(5) Prudently control workforce expansion expense budgets and capital expenditures by evaluating the
ratio between budget allocations and processing fee income to strictly manage cost outflows.
(6) Strengthen digital transformation initiatives advance smart manufacturing across all facilities upgrade
operations using AI&IT technology platforms focus on re-optimizing operational processes and drive
continuous digital optimization of internal workflows to improve operational performance and
competitiveness.
2. Supply chain plan
The global EMS industry continues to face persistent and diverse challenges including escalating
geopolitical tensions the evolving landscape of tariffs and trade restrictions a surge in product demand
driven by the rapid expansion of AI computing power and application development as well as cost
pressures resulting from significant increases in prices of key raw materials. In response the majority of
customers are placing greater emphasis on supply chain flexibility resilience and diversified deployment.Aligned with the Company’s global operating requirements and accelerating market changes the supply
chain department is actively building a more agile and resilient supply chain system to deliver stable
efficient and competitive services while advancing the short? medium? and long?term objectives of a
sustainable supply chain. The key strategies are as follows:
(1) Enhance supply chain resilience:
The Company increase the proportion of local supply and develop local suppliers in various regions to
reduce transportation time and costs while improving supply elasticity and response speed. From the
product design stage the Company evaluates material supply risks during mass production and adjust
order allocation and stocking strategies in real time according to market conditions. In response to the
surge in demand for AI?related materials the Company has proactively assessed potential supply tightness
of key materials and where appropriate secured advance inventory or adopted alternative solutions to
ensure that customer orders are not disrupted by market shortages. Regarding tariff uncertainties and
geopolitical risks the Company has also maintained flexibility in its supply chain design enabling rapid
adjustments in supply configurations to accommodate changes in customer demand.
(2) Strengthen the overall competitiveness of the supply chain:
The Company continuously invests in the training of supply chain talents and the improvement of
professional technology establish long-term partnerships with major suppliers and obtain the best support
in terms of price product quality technology delivery time and service; actively develop domestic
48 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
competitive raw material suppliers and equipment suppliers for production testing automation etc. and
use the advantages of scale and efficiency to serve customers with certain scale needs to further strengthen
the overall competitiveness. Amid sustained increases in metal raw material prices the Company closely
tracked cost impacts and worked in close coordination with its business units to evaluate changes in cost
structures and their effects on product positioning and pricing strategies in order to maintain stable
operating performance.
(3) Global operations management:
In response to the globalization of manufacturing sites and the impact of geopolitics on the relocation of
production sites the Company continues to optimize its global transportation strategies to reduce costs
and lead times while enhancing logistics tracking capabilities and real time cross regional management.
(4) Inventory management:
The Company proactively manages inventory turnover days and takes measures to address risk?prone
inventory. By increasing the proportion of localized sourcing and optimizing logistics routing in
conjunction with global supply chain planning the Company effectively reduces in?transit inventory and
mitigates risks associated with excess capital occupation.
(5) Ensure regulatory compliance:
The Company ensures compliance with the latest local government regulations on trade tariffs imports
and exports and develop response strategies in advance for possible scenarios to mitigate the impact of
sudden policy changes on operations.
(6) Optimize processes and systems:
The Company optimizes and digitalizes end?to?end supply chain processes promotes the sharing of best
practices across manufacturing sites and deploys digital tools to enhance decision?making quality
accelerate responsiveness and improve overall operational efficiency.
(7) Promote sustainable supply chain management:
The Company continuously advances supply chain standards risk investigations audits and improvement
initiatives enhancing supplier capabilities in conflict minerals governance carbon management supplier
assessments and information security with the aim of gradually achieving its sustainability management
milestones.
3. Global manufacturing site plan
So far the Company has 28 manufacturing sites in 12 countries (including regions) around the world and
overseas factory revenue accounts for about 41% of total revenue.In early 2025 the Company completed the construction and commenced operations of Phase II of Vietnam
facility. The newly added capacity is intended to serve customers in the consumer electronics and
industrial sectors. Toward the end of 2025 the Company plans to further expand its investment in
Haiphong Vietnam. It has formally signed a MOU with SHP (Sai Gon-Hai Phong Industrial Park
Corporation) for the expansion of its second Vietnam manufacturing site at Trang Due Industrial Park.
4. Human resources plan
According to the glocalization development strategy the Company formulates a global human resource
plan which is a prediction and plan for its future manpower demand talent recruitment and employee
training in order to deal with challenges brought by various cultural backgrounds languages ethnicities
and time zones of the multinational operations. The Company will continue to improve the people-oriented
corporate culture create growth opportunities for employees establish a career development performance
evaluation and incentive mechanism for employees and reduce employee turnover so as to provide a
strong talent foundation for the Company to achieve its development goals.
5. R&D plan
(1) SiP and Miniaturization
Currently the Company’s products are evolving toward being lighter thinner smaller and more compact
with lower power consumption enhanced connectivity and AI?enabled intelligence. In 2026 the
49 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Company will continue to research the functional integration of SiP system modules and communication
antennas into a single SiP device to realize AiP modules. By introducing additional advanced
manufacturing technologies such as 3D stacked packaging into SiP module design the Company aims to
further expand the application scope and functionality of SiP modules. The Company plans to develop
new double?sided molded lead?interconnection technologies new materials and more diverse component
applications as well as 3D SiP modules to further reduce size while enabling broader functionalities. In
addition the Company will develop 3D printing technologies for application in antenna fabrication and
EMI shielding functions. The following R&D directions are planned as the Company’s core focus areas
going forward:
(a) The Company’s development of the design capability of wireless communication modules and
5G new radio frequency identification products continues to focus on the development of Qualcomm’s
latest 5G IoT platform upgrade product specifications B5G(Beyond 5 Generation) in line with the
mainstream trend of the market and take into account the product life cycle. Beyond the ongoing
maturation of Wi-Fi7 and tri?band solutions in terms of chipset and process capabilities the Company is
progressing toward Wi-Fi8 technologies to offer customers more comprehensive and advanced solution
options.(b) Functional modules derived from wearable products are becoming increasingly diversified. In
addition to existing Wi-Fi modules and mainboard modules the continuous expansion of customer needs
has driven the development of a broader range of offerings including display modules power management
modules audio modules biosensing modules various multifunctional integrated modules as well as
complete system?level modules.
(C) Continuously expand the application areas of miniaturized products. In addition to existing
products it also extends to the applications of Internet of Things (IoT) products and continuous process
improvements are carried out.
(2) Optical Communications
In January 2026 the Company completed an acquisition and obtained a controlling interest in EugenLight.EugenLight focuses on the research and development of high?speed optoelectronic integrated components
and optical engine products and has established strategic partnerships with several leading global optical
module manufacturers. Its key R&D focus areas are as follows:
(a) Develop high?speed optical engine products for AIDC transmission. Among these 1.6T
single?mode optical engines are primarily targeted at next?generation AI accelerator cards (such as
NVIDIA GB300 and subsequent platforms) as well as core?layer interconnections in hyperscale data
centers. These products are designed to ensure signal integrity under 1.6T high?speed transmission
meeting the real?time massive data exchange requirements generated by AI training workloads. The
Company will continue to invest in the R&D of 1.6T optical engines while concurrently making
forward?looking investments in 3.2T technologies to address the continued increase in future computing
density.(b) Develop technologies related to CPO. NPO/CPO technologies are intended to address the
challenges of sharply rising power consumption and signal loss faced by traditional pluggable optical
modules in the era of 3.2T and higher data rates. The Company will focus on advancing high?level
integration of optical engines with main switching chips (ASICs/GPUs) through Chiplet?based
architectures with the objective of overcoming key challenges in 3D integration including thermal
management coupling reliability and mass?production yield. This approach enables short range
interconnection between optical engines and electrical chips. Practical applications will primarily target
core switching nodes in hyperscale AIDC where CPO integrate optical engines directly onto the package
substrate of switching chips.(c) Develop core components for coherent optical communications. As GPU clusters expand from
single data centers toward geographically distributed deployments DCI has become a critical enabler for
scaling AI computing capacity. The Company’s R&D efforts focus on ITLA (Integrated Tunable Laser
Assembly) and Coherent Lite optical components designed for DCI applications. As the core of coherent
optical modules ITLAs are essential for achieving high?precision wavelength tuning and long?term
stability. Coherent Lite devices are optimized for medium?reach data center interconnection scenarios
(within approximately 80 kilometers) simplifying the complexity of traditional long?haul coherent optical
50 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
modules. The Company’s R&D priorities include enhancing ITLA output power linewidth performance
and reliability while simultaneously developing highly integrated optical engines compatible with
Coherent Lite architectures. These efforts are intended to capture the significant market opportunities
arising from the evolution of AI computing from centralized architectures to distributed and clustered
deployments and to support service providers in building next?generation elastic networks based on the
capacity?as?a?service model.
(3) Server Power Supply
The Company continues to invest in the R&D of silicon carbide modules for 800V electric vehicle
platforms with a focus on next?generation packaging technologies including chip?embedded structures
three?dimensional stacking and double?sided liquid cooling while simultaneously strengthening its patent
portfolio. The Company is advancing the development of internally insulated discrete power devices to
rapidly enter high?voltage high?current HVDC 800V fields. In the area of low?voltage high?current
voltage regulator modules (VRMs) the Company integrates surface?mount technology with module?level
packaging processes in response to the specific requirements of CSP customers addressing the market’s
growing demand for miniaturized VRM solutions.
(4) Other Products and Technology R&D Plans
(a) Develop an intelligent optical recognition system which is applied in fields such as automated
inspection intelligent manufacturing and industrial AI vision to improve production efficiency and
quality control capabilities. Optimize image processing technology in combination with AI deep learning
to enhance the accuracy of industrial automation systems and apply it in scenarios such as automated
production lines robot navigation and intelligent inspection.(b) Focus on miniaturization and automation and develop automated design tools. Use a combination
of grinding and laser grooving to reduce the thickness of double-sided molded modules. Develop an
automatic material feeding robot to replace manual material feeding and material change. Continuously
improve production automation to increase production efficiency and reduce labor costs.(c) In response to the development of AI and the demand characteristics of customers for software
and hardware especially considering the wide application of edge AI image recognition technology in
various industries the Company collaborates with major customers in product performance energy
efficiency ratio heat dissipation design and application scenario optimization.
(5) Environmental Protection and Sustainability
The importance of environmental protection and sustainability issues has continued to increase year by
year. In the electronics industry plastic enclosures for electronic products are increasingly incorporating
recycled plastics and recycled aluminum materials (PCR Post?Consumer Recycled Plastics and
Aluminum) with carbon footprint assessments being taken into consideration during material selection.The Company will continue to develop Green Design products to reduce material usage and energy
consumption thereby supporting environmental protection and sustainable development goals.
6. Sustainable business plan
The Company integrates the corporate core values of "Realizing IDEAS Together" into the Company's
business strategy and management pursues sustainable development in environment(E) society(S) and
governance(G): in terms of the Environment(E) the Company works to reduce environmental impacts
promote resource recycling and actively seek solutions to climate change governance; In terms of
Social(S) the Company continues to care for employees and promote social participation activities to
fulfill corporate responsibility realizing global partnerships; In terms of Governance(G) the Company
protects the rights and interests of investors strengthen operational risk management and ensure
information security to achieve a sound corporate governance structure.The Company established the group sustainability committee in 2020 to jointly promote and achieve the
specific implementation of various sustainable development goals and actions through five sustainability
task forces: "Corporate Governance Green Products and Innovation Value Chain Management
Employee and Society Environmental Protection and Workplace Safety". In March 2022 the board of
directors of the Company reviewed and approved the "ESG Code of Practice" which clearly implements
51 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
relevant requirements such as corporate governance developing a sustainable environment safeguarding
social welfare and strengthening information disclosure on corporate sustainable development.USI continues to strengthen its resilience in the face of climate change and carries out climate-related
financial disclosure (TCFD) with the "low-carbon mission" as the main axis. Construct climate change
management based on the four core elements of TCFD "Governance Strategy Risk Management
Indicators and Objectives" evaluate the risks and opportunities posed by climate change disclose the
Company's strategies and measures to face the risks and opportunities posed by climate change and
allocate capital more rationally and effectively in order to achieve the low-carbon economic transition and
the goal of net zero carbon emissions by 2040.(IV) Possible risks
√Applicable □ Not Applicable
1. The risk of weak macroeconomic recovery and insufficient demand
The EMS industry chain has shifted from supply chain-driven to demand-driven and has a strong
correlation with the macroeconomic environment. The Russian-Ukrainian war the Israel-Iran conflict and
other geopolitical factors geopolitics inflation the high interest rate environment and many other
unfavorable factors affect global economic growth and endpoint demand. The continued development of
AI technology is expected to drive further growth in demand in consumer electronics computing power
data exchange and other industries. The Company will continue to pay attention to the trend of the
industrial chain structure maintain close interaction with customers to grasp customer needs and
strengthen the collection and analysis of market information to reduce the impact of changes in product
demand on the Company.
2. Industry competition risks
EMS industry is a fully competitive industry with numerous global manufacturers but its overall
concentration is on the rise. Under the trend of supply chain reconstruction and economic and trade
regionalization in the international market the electronic manufacturing service industry and upstream
supply chain in mainland China are facing more severe competitive pressure. The Company's new business
model of "global platform localized service" combines its own advantages to compete with peers but if
the Company cannot maintain cost competitiveness and product technology advantages market share and
profit margins will be squeezed.
3. Risk of high customer concentration
During the reporting period the Company’s revenue from its top five customers accounted for 56.45% of
the total revenue showing high customer concentration. Such customers are internationally-renowned
electronic brands and have established a long-term and stable cooperative relationship with USI to ensure
sufficient business order. In spite of this if the customer demand declines or the Company fails to timely
meet the customer requirements in product R&D and design product quality control qualified supplier
certification delivery date etc. it may cause certain fluctuations in customer orders thus adversely
affecting the Company's business scale and operating performance. Therefore the Company faces the risk
of high customer concentration to a certain extent.
4. New product development and R&D investment risk
Technological progress continues to promote the upgrading and iteration of electronic products and
equipment and enterprises in the electronic manufacturing service industry have been under great
operating pressure for a long time such as product innovation quality improvement cost reduction
continuous investment etc. Only by insisting on R&D investment and technological innovation can
enterprises cope with the rapid changes in the market and competitive pressure. In the context of the
restructuring of the supply chain customers are also demanding higher standards for hardware R&D
software development intelligent manufacturing and low-carbon environmental protection. The company
must accelerate its R&D capabilities and strengthen their shortcomings in order to explore new business
opportunities. The Company faces the risk of insufficient R&D and innovation.
5. Transnational operation risk
52 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
To better serve major customers the Company has arranged production sales and logistics worldwide to
quickly respond to the product delivery needs of major customers. As a result the Company has 30
production bases in 10 countries and regions. Overseas companies need to abide by the laws and
regulations of the country and region where they are located when conducting business or establishing
institutions abroad. If the laws regulations industrial policies or political and economic environment of
the countries and regions where overseas business is located have undergone major changes or there are
unpredictable factors such as international tensions wars trade sanctions or other force majeure it may
have potential adverse effects on the normal business operation and sustainable development of overseas
companies. In addition there are differences between operating sites located in various countries or
regions in terms of accounting and taxation systems business practices company management systems
and corporate culture. If the relevant integration plan is not effectively implemented there may be risks
such as a lack of synergy from mergers and acquisitions or newly established companies loss of core
personnel and decline in financial performance.
6. Exchange rate risk
The Company is a global electronic design and manufacturing service provider most production facilities
are located overseas as well as the main clients and suppliers are all overseas companies. The purchase of
materials sales and shipments are mainly settled in foreign currencies (mainly USD). Companies usually
use foreign exchange hedging operations to deal with exchange rate fluctuations but in the case of
sustained large fluctuations in exchange rates large amounts of exchange gains and losses will still be
generated. In the face of the complex political and economic landscape and business environment across
the world the Company will pay close attention to the changes in the foreign exchange market according
to its own operational needs adequately carry out foreign exchange hedging and minimize exchange rate
risks.
7. Emerging risks
The Company has a group risk management committee to identify internal and external risk factors that
may affect the achievement of the Company's sustainable business objectives evaluate the effectiveness
of each risk level and related control activities and implement appropriate measures and responses based
on the results of threat and risk assessment to ensure that risks can be effectively monitored.
(1) Geopolitical and regional conflict risks
The current global economy is still facing multiple challenges with profound adjustments in the world
landscape. Geopolitical and regional conflicts have brought more uncertainties to the macroeconomy and
supply chain such as tariff increases technological blockades export controls investment restrictions
technical barriers and discriminatory subsidy policies. There are various restrictive policy measures that
may lead to supply chain decoupling. The Company will conform to the development trend of "global
demand localized service" rationally layout global production capacity and provide customers with
diverse manufacturing solutions with a global operation service system; at the same time through
continuous strengthening of digital transformation promoting the process of intelligent manufacturing in
the Company's global manufacturing service base increasing R&D investment in key technologies and
application fields integrating internal resources of the group technology mutual sharing and other ways
to enhance product competitiveness and cost competitiveness in manufacturing services cooperative
research and development product planning and design supply chain strategy and other aspects of
deepening business and investment cooperation and developing closer long-term partnerships with
customers.
(2) Policy risks
The current global economic situation and trade pattern are facing many uncertainties and changes in
regulations and policies in the places where companies operate may lead to increased business decision-
making risks faced by enterprises. The Company will strengthen the monitoring of local regulations tax
policies labor policies and other laws and regulations objectively judge their impact on the Company's
operations formulate response strategies and take timely action plans taking into account cost efficiency
and local policies and regulations and strive to achieve the Company's business goals.
53 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(V) Others
□Applicable √Not Applicable
VII. The circumstances and reasons for the Company’s failure to disclose according to the
standards due to special reasons such as non-applicability of the standards or state secrets and
trade secrets
□Applicable √Not Applicable
54 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section IV Corporate Governance Environmental and Social
Responsibility
I. Particulars on corporate governance
√Applicable □ Not Applicable
During the reporting period the Company in strict accordance with the relevant requirements of the
Company Law the Securities Law and the Code of Corporate Governance for Listed Companies China
Securities Regulatory Commission and Shanghai Stock Exchange strengthened information disclosure
efforts continuously optimized the corporate legal person governance structure established the sound
internal control system and standardized the business operation to effectively guarantee the interests of
the Company and its all shareholders. The Company's General Meeting of Shareholders Board of
Directors and all operation levels had clear responsibilities. All directors and members of the senior
management were diligent and responsible. Directors actively participated in the Company's general
meetings of shareholders meetings of the Board of Directors and earnestly performed their
responsibilities. Related directors voluntarily abstained from voting on relevant related transactions to
ensure the safe stable healthy and sustainable development of the Company.(I) Shareholders and general meetings of shareholders: The Company convened and held general meetings
of shareholders in accordance with the requirements of the Company Law the Articles of Association
and the Rules of Procedure for the General Meeting of Shareholders. The general meetings of shareholders
complied with the relevant provisions in aspects of preparations proposals procedures voting and
resolutions resolution execution and information disclosure and ensured that all shareholders especially
minority shareholders fully exercised their voting rights and maintained equal status. and ensured that all
shareholders especially minority shareholders fully exercised their voting rights and maintained equal
status. The Company also invited lawyers to attend the general meetings of shareholders to confirm and
witness the convening procedures deliberation matters and identities of attendees and issue legal
opinions to ensure the legality and validity of the general meeting of shareholders.(II) Relationship between the controlling shareholder and the listed company: The Company and its
controlling shareholder were independent of each other. The Company's board of directors and internal
institutions could operate independently. The Company established a long-term mechanism to prevent the
controlling shareholder and its affiliated companies from occupying the listed company's funds and
infringing on the listed company's interests and no major shareholders occupied the listed company's
funds and assets.(III) Directors and the Board of Directors: The Company elected directors in strict accordance with the
selection and appointment procedures stipulated in the Company Law and the Articles of Association. The
Company's Board of Directors met the requirements of laws and rules in terms of number and composition
of members. The Company's directors could seriously attend the meetings of the Board of Directors in
accordance with the Procedure Rules of the Board of Directors and other regulations. The Board of
Directors set up four special committees namely the Audit Committee the Strategy and Sustainability
Committee the Nomination Committee and the Remuneration Committee of which the membership is
reasonable. Since their establishment the special committees have been operating in strict accordance
with the corresponding work regulations and fully playing its professional role in the Company's operation
and management. The independent directors of the Company in strict compliance with the Guidelines on
the Performance of Duties by Independent Directors performed their responsibilities in a conscientious
and responsible diligent and honest manner and put forward valuable opinions and suggestions in the
process of reviewing related transactions and internal control norms.(IV) Supervisors and the Board of Supervisors: In accordance with the relevant provisions other
applicable laws regulations and normative documents the Company officially ceased to maintain a Board
of Supervisors in accordance with applicable laws and regulations in September 2025. Concurrently the
Company revised its Articles of Association and other supporting governance policies including the Rules
of Procedure for the Board of Directors thereby establishing a more streamlined and efficient governance
structure.(V) Performance evaluation and incentive and restraint mechanisms: The Company established fair and
transparent performance evaluation standards and incentive and restraint mechanism for members of the
55 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
senior management; the members of the senior management of the Company were appointed in an open
and transparent manner and in compliance with the provisions of relevant laws and regulations.(VI) Information disclosure and transparency: The Company truthfully accurately completely and timely
disclosed relevant information through Shanghai Securities News China Securities Journal Securities
Times and the website of Shanghai Stock Exchange in strict accordance with relevant laws and
regulations and the requirements of the Information Disclosure Management Regulations formulated by
the Company and did a good job in confidentiality before information disclosure and earnestly fulfilled
the obligation of information disclosure as a listed company to ensure the openness fairness and
impartiality of information disclosure by the Company and actively safeguard the legitimate rights and
interests of the Company and its investors especially minority shareholders. During the reporting period
the Company was not criticized condemned or punished by regulatory agencies for information disclosure
violations.(VII) Investor relations and related stakeholders: The Company in accordance with the relevant
requirements of the Self-disciplinary Rules Listed Companies No. 3 - Cash Dividends of Listed
Companies by China Securities Regulatory Commission and the Guidelines for the Self-supervision of
Listed Companies No. 1 - Standardized Operation of Shanghai Stock Exchange firmly established the
awareness of rewarding shareholders improved the cash dividend regulations maintained the consistency
rationality and stability of the cash dividend policy and ensured the authenticity of cash dividend
information disclosure. The Company actively received all kinds of investors and set up an investor
relations section on the Company's website and established the official “USI Board Office” WeChat public
account which further strengthened investors' understanding and recognition of the Company promoted
the benign interaction between the Company and investors and was conducive to effectively protecting
the interests of investors. The Company could fully respect and safeguard the legitimate rights and interests
of its employees suppliers customers banks and other stakeholders and achieved mutual benefits in
economic exchanges to promote the sustainable and healthy development of the Company.(VIII) Establishment and improvement of the internal control system: The Company continuously
improved the internal control system and strengthened the execution and implementation of internal
control norms in strict accordance with the regulatory requirements and performed the self-inspection and
self-evaluation over the effectiveness of internal control of the Company's key business processes and key
control links on the basis of strengthening daily supervision and special inspections.(IX) Registration and management of insiders: The Company strictly implemented the Administrative
Regulations for Registration of Information Insiders in accordance with the requirements of regulatory
agencies.Whether there are significant differences between the Company’s corporate governance and laws
administrative regulations and the requirements of China Securities Regulatory Commission on corporate
governance of listed companies; if there are significant differences the reasons shall be explained
□Applicable √Not Applicable
II. Specific measures taken by the Company's controlling shareholder and actual controller to
ensure the independence of the Company's assets personnel finance organization and business
and solutions work progress and subsequent work plans adopted by them to affect the
Company's independence
√Applicable □ Not Applicable
For details see the "Commitment to Guarantee the Independence of the Listed Company" in "Section V
Major Events".Situation that the Company's controlling shareholder actual controller and other units under their control
are engaged in the same or similar business as or with the Company impact of horizontal competition or
major changes in horizontal competition on the Company settlement measures taken settlement progress
and subsequent settlement plans
□Applicable √Not Applicable
56 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
III. Directors and members of the senior management
(I) Changes in shareholding and remuneration of current directors and senior management and those who left the position during the reporting period
√Applicable □ Not Applicable
Unit: Share
Whether
Total pre-tax
received
Number of remuneration
Number of Change in remunerat
shares held Reasons from the
A Start of End of shares held shareholdi ion from
Name Position Gender at the for Company during
ge tenure tenure at the end ng during related
beginning change the reporting
of the year the year parties of
of the year period (RMB
the
10000)
Company
Chairman of
2018-06-282026-04-23196
Jeffrey Chen the Board Male 62 233000 233000 0 N/A Yes
Director 2016-04-19 2026-04-23 30
Employee
30
Chen-Yen Wei Director Male 72 2008-06-20 2026-04-23 200000 200000 0 N/A No
President 414
Dtuang Wang Director Male 67 2018-07-16 2026-04-23 0 0 0 N/A 30 Yes
Chang Dan Yao
Director Female 55 2025-04-23 2026-04-23 0 0 0 N/A 20 Yes
Danielle
Former
Rutherford Chang Male 46 2010-03-10 2025-02-07 0 0 0 N/A 0 Yes
Director
Neng Chao Chang Director Male 48 2017-04-17 2026-04-23 0 0 0 N/A 30 Yes
Andrew Robert
Director Male 51 2024-04-23 2026-04-23 0 0 0 N/A 30 Yes
Tang
Yifan Li Director Male 59 2023-04-24 2026-04-23 0 0 0 N/A 30 No
Independent
Yongtao Cang Male 49 2023-04-24 2026-04-23 0 0 0 N/A 36 No
director
Independent
Jiangdong Huang Male 47 2023-04-24 2026-04-23 0 0 0 N/A 36 No
director
Independent
Wei Guo Female 44 2023-04-24 2026-04-23 0 0 0 N/A 36 No
director
Li Zhang Independent Female 48 2024-04-23 2026-04-23 0 0 0 N/A 36 No
57 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
director
Purchase
Vice in the
Ta-I Lin Male 63 2011-02-09 2026-04-23 193700 194900 1200 168 No
President secondar
y market
Vice
Feng-Ta Chen Male 64 2008-06-20 2026-04-23 121100 121100 0 N/A 156 No
President
Former Vice
Jing Cao Male 67 2017-04-27 2025-09-30 0 0 0 N/A 365 No
President
Vice
Chen-Lung Wei Male 63 2017-04-27 2026-04-23 0 0 0 N/A 151 No
President
Vice
President
Jinpeng Shi Male 50 2018-06-28 2026-04-23 130000 130000 0 N/A 286 No
and Board
Secretary
Vice
President
Xinyu Wu and Chief Male 59 2024-10-28 2026-04-23 0 0 0 N/A 271 No
Financial
Officer
Total / / / / / 877800 879000 1200 / 2352 /
Note: The fixed allowances received by the directors (including independent directors) of the Sixth Session of the Board of Directors have been considered and
approved at the 2022 Annual General Meeting of the Company. Based on the data of professional surveys on the remuneration of senior executives of companies in
the same industry in Chinese mainland Taiwan and the United States the remuneration level of the Company's senior executives is at the 50th to 75th percentile of
the remuneration of senior executives of companies in the same industry.In 2025 the remuneration of Jing Cao Vice President of the Company was higher than that of other executives of the same rank mainly due to the fact that the
revenue generated by the business unit under his leadership accounted for more than 50% of the Company's consolidated revenue for the current year and the level
of profit was in line with expectation; the remuneration of Chen-Yen Wei President of the Company was higher than that of the remuneration level for the rank of
Vice President which was in compliance with the Company's employee performance evaluation and management system; and Jeffrey Chen Chairman of the Board
of Directors in addition to receiving remuneration from the Company also served as director of ASE Technology Holding and its affiliates and received the
remuneration for the directorship and his remuneration arrangement was in compliance with the relevant rules of ASE Technology Holding.Name Work Experience
Mr. Jeffrey Chen from Taiwan China graduated from the University of British Columbia with a master’s degree in business administration. Mr.Jeffrey Chen
Chen previously worked for Citibank Taiwan as the general manager assistant and Bankers Trust Taipei Branch as the deputy general manager. He
58 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
joined the predecessor of ASE Technology Holding Co. Ltd. in 1994 serving successively as the assistant to the central staff office special
assistant to the chairman and chief of staff of the Group as well as CFO and director of ASE Test Limited a subsidiary of the Group and a listed
company on NASDAQ. In addition to serving as Chairman of the Board of the Company he serves as director(representative) of ASE Technology
Holding Co. Ltd. general manager of Shanghai headquarter of Advanced Semiconductor Engineering Inc.Mr. Chen-Yen Wei from Taiwan China holds a bachelor’s degree from National Chiao Tung University. Mr. Wei joined Universal Scientific
Chen-Yen Industrial Co. Ltd in 1979 where he served successively as engineering manager vice president of finished product business group senior vice
Wei president of communication product business group senior vice president of corporate service unit and president of the company. Currently he
serves as director and president of the Company.Mr. Dtuang Wang from Taiwan China holds a bachelor’s degree in laws from National Taiwan University a master’s degree in laws from
National Chung Hsing University and a doctorate in law from National Chengchi University. He was the CEO of ASE Cultural and Education
Foundation a director of Dinggu Holdings Co. Ltd. a director of Hongjing Construction Co. Ltd. an independent executive director of First
Dtuang Wang
Commercial Bank Co. Ltd. professor and dean of School of Law Ming Chuan University. Currently he serves as Group Chief Executive and
Corporate Governance Director of ASE Technology Holding Co. Ltd. and a member of the company’s Risk Management Committee a director
of ASE Semiconductor Manufacturing Co. Ltd. and the honorary professor of Ming Chuan University Law School.Ms. Chang Dan Yao Danielle American holds a bachelor's and master's degree from Columbia University. She has previously held positions at
Chang Dan The New York Times Goldman Sachs and ASE (US) Inc. She serves as a director of Advanced Semiconductor Engineering Inc. a director
Yao Danielle (representative) of ASE Test Inc. and a director (representative) of USI Inc. Ms. Chang Dan Yao Danielle has served as a director of USI since
April 2025.Rutherford
Chang Mr. Rutherford Chang American holds a bachelor’s degree in Psychology from Wesleyan University. Mr. Chang served as the special assistant to
(former the chairman of J&R Holding and the special assistant to the chairman of Advanced Semiconductor Engineering Inc.director)
Mr. Neng Chao Chang British with a bachelor’s degree in economics from Williams University is a former analyst at Morgan Stanley. He
Neng Chao
currently serves as general manager of ASE Global Sales director of ASE Test Inc. director of USI Inc. and director of Advanced Semiconductor
Chang
Engineering Inc.Mr. Andrew Robert Tang American graduated from Yale University. Mr. Tang previously worked for Morgan Stanley and joined Advanced
Andrew Semiconductor Engineering Inc. in 2014 where he currently assumes director (representative) Vice Chairman and deputy CEO and he also
Robert Tang serves as the chief procurement officer of ASE Technology Holding Co. Ltd. Mr. Andrew Robert Tang has served as a director of USI since April
2024.
Mr. Yifan Li American holds a bachelor’s degree in World Economy from Fudan University an MBA degree from the University of Chicago
master’s degree in Accounting from the University of Texas. Mr. Li is qualified as the United States Certified Public Accountant Chartered
Global Management Accountant and member of the American Institute of Certified Public Accountants and the Texas Society of CPAs. He
Yifan Li
worked as Executive Vice President and CFO of Zhengxing Wheel Group Co.Ltd. Vice President and CFO of Sanpower Group Co.Ltd.director Vice President and CFO of Zhejiang Geely Holding Group Co.Ltd. founding partner and CFO of Human Horizons. In addition to
serving as a director of USI he also serves as an independent director of Shanghai Jinqiao Export Processing Zone Development Co. Ltd.
59 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Mr. Yongtao Cang Chinese holds a doctorate degree in accounting from Shanghai University of Finance and Economics. Mr. Cang is a non-
practicing member of the Chinese Institute of CPA and a member of CPA Australia. He worked as lecturer assistant dean associate professor of
Yongtao Cang accounting and deputy dean successively at the School of Economics and Finance Shanghai International Studies University (SISU). Currently
he serves as professor of accounting at the School of Economics and Finance SISU. Additionally he served as an independent director of
Zhejiang Qinglian Food Co.Ltd.Mr. Jiangdong Huang Chinese has a doctorate degree in law from East China University of Political Science and Law and qualifications to
practice law in China. Mr. Huang worked as deputy director director and deputy researcher of the Second Division of the China Securities
Jiangdong Regulatory Commission (CSRC) Shanghai Office deputy researcher of the CSRC Legal Affairs Department deputy researcher of the Review
Huang Division of the CSRC Shanghai Commissioner Office director of the Third Division of Investigation of the CSRC Shanghai Commissioner
Office. He currently serves as partner of Grandall Law Firm and independent director of Changjiang Pension Insurance Co.Ltd. Sinopec
Shanghai Petrochemical Company Limited and Fuanda Fund Management Co.Ltd. and outside director of Cosco Shipping Technology Co. Ltd.Ms.Wei Guo from Hong Kong China holds a doctorate degree in strategic management from the University of Maryland an MBA degree from
Marshall University and a bachelor's degree in business from Auckland University of Technology. Ms. Guo used to work as assistant professor of
Wei Guo
strategy at Hong Kong Polytechnic University and currently serves as associate professor of strategy and entrepreneurship at China Europe
International Business School.Ms. Li Zhang Chinese with permanent residency in Hong Kong holds a bachelor’s degree in economics and law from Nanjing University and a
master's degree in business administration from Tsinghua University. Ms. Zhang used to be a first-class partner of Beijing Grandway Kaiwen Law
Li Zhang
Firm and is now a first-class partner of Zhong Lun Law Firm Shanghai Office. Ms. Li Zhang has served as an independent director of USI since
April 2024.Mr. Chen-Lung Wei from Taiwan China holds an MBA's degree from Tunghai University. In July 1987 Mr. Wei joined in Universal Scientific
Chen-Lung Industrial Co. Ltd. where he served as the manager of the engineering department the director of the development unit the vice president of the
Wei business unit the senior vice general manager of the business group and the general manager of the Company. Currently he serves as the vice
president of the Company.Mr. Ta-I Lin from Taiwan China has a bachelor's degree in Electrical Engineering from National Cheng Kung University and a master's degree
of EMBA from Peking University. After graduation Mr. Lin joined in Universal Scientific Industrial Co. Ltd. where he served successively as
Ta-I Lin head of engineering production and business divisions the general manager of information products business group president of Universal
Global Technology (Kunshan) Co. Ltd. and manager of Universal Scientific Industrial Co. Ltd. Taiwan Factory. Currently he serves as the Vice
President of the Company.Mr. Feng-Ta Chen from Taiwan China once served as deputy manager of SAMPO CORP. manager of wireless network card operation
management of Universal Scientific Industrial Co. Ltd. associate manager of ERP project management associate manager of global human
Feng-Ta Chen resources administration and general manager of Shanghai Zhangjiang Factory Jinqiao Factory and Shengxia Factory of USI. Currently he
serves as head of global business and after-sales service global operations development North American operations General Manager of the
Mexico Site special application products and green energy products business group and vice president of the Company.Jing Cao Mr. Jing Cao American holds a double master's degree in engineering from Arizona State University. Once served as the senior Vice President of
(former Vice Mindspeed the vice president of TE Connectivity and the senior Vice President of UTAC Semiconductor Co. Ltd.
60 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
President)
Mr. Jinpeng Shi Chinese holds a bachelor's degree from the School of Economics and Management of Tongji University and an EMBA degree
from China Europe International Business School. Mr. Shi worked as the project manager of International Business Department of Guotai Junan
Jinpeng Shi Securities the director of the Shanghai Investment Banking Department of Southwest Securities and the vice president of Investment Banking
Department the president of No.3 Business Department and the managing director of China Great Wall Securities. Currently he serves as vice
president and the Board Secretary.Mr. Xinyu Wu Canadian holds a Master of Business Administration (MBA) from Bryant University in the United States and is a Canadian
Chartered Accountant (CA) and Certified Management Accountant (CMA). He previously served as Vice President of Finance at Celestica
International Group in Canada where his responsibilities encompassed financial management for the Asia-Pacific region global operational
Xinyu Wu
financial management for the group and international financial integration. Earlier in his career he held roles including Cost Management
Manager at IBM Asia-Pacific Financial Analysis Manager in Canada and positions at KPMG Singapore. Mr. Xinyu Wu joined USI in June 2020
and currently serves as CFO of the Company.Particulars on other information
□Applicable √Not Applicable
61 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(II) Employment of current directors and senior management and those who left the position during
the reporting period
1. Employment in shareholders’ companies
√Applicable □ Not Applicable
Name of Position held in
Name of shareholder’s Start of End of
person shareholder’s
company tenure tenure
employed company
Director
2018-04-30
(representative)
ASE Technology Holding Co. Member of the
Ltd. Sustainability and
2024-11-06
Information Security
Committee
General Manager of
Advanced Semiconductor
Shanghai 2016-05-01
Engineering Inc.headquarters
Director
ASE Test Inc. 1998-06-30
(representative)
ASE (Shanghai) Inc. Supervisor 2018-06-19
ASE (Korea) Inc. Supervisor 2021-03-30
Wuxi Tongzhi Microelectronics
Director 2022-05-27
Co.Ltd.ASE Test Limited Director 1998-03-31
ASE Test Holdings Ltd. Director 1999-04-12
Omniquest Industrial Ltd. Director 2001-06-01
Jeffrey Chen
ASE Assembly & Test
Director 2023-06-05
(Shanghai) Limited
Director
ASE Electronics Inc. 2006-03-14
(representative)
Advanced Semiconductor
Director 2008-05-05
Engineering (HK) Limited
Super Zone Holdings Ltd. Director 2008-12-04
Chairman of the
USI Inc. 2018-06-26
Board of Directors
Huntington Holdings
Director 2012-06-30
International Co. Ltd.Real Tech Holdings Limited Director 2012-06-30
ASE Environmental Protection
Director 2020-09-14
and Sustainability Foundation
ASE Cultural and Educational
Director 2020-06-10
Foundation
ASE Enterprise Service
Supervisor 2023-11-01
(Shanghai) Co. Ltd
Director
USI Inc. 2015-04-01 2028-06-29
(representative)
HUNTINGTON HOLDINGS
Director 2012-06-30
Chen-Yen INTERNATIONAL CO. LTD.Wei UNITECH HOLDINGS
Director 2012-06-30
INTERNATIONAL CO. LTD.Real Tech Holdings Limited Director 2012-06-30
USI Enterprise Limited Director 2012-12-28 2026-06-23
Chief executive and
ASE Technology Holding Co. corporate governance
Dtuang Wang 2018-04-30
Ltd. director member of
the Risk
62 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Management
Committee and chief
risk officer chief
information security
officer
Director
Advanced Semiconductor
(representative) and 2018-04-30
Engineering Inc.chief executive
Chairman of the
Advanced Semiconductor Board of Directors
2018-07-05
Engineering (China) Ltd. and General
Manager
ASE Assembly & Test Director and
2021-07-29
(Shanghai) Limited President
Sino Horizon Holdings Limited Director 2014-06-18
Hung Ching Development &
Director 2011-07-13
Construction Co. Ltd.Director and
Hung Chin Hsin Co. Ltd. 2011-08-08
President
Director and
ASE Social Enterprise Co. Ltd. 2022-04-21
President
ASE Environmental Protection
Director and CEO 2020-09-14
and Sustainability Foundation
ASE Technology Holding Co. Director
2025-06-25
Ltd. (representative)
Advanced Semiconductor Director
2025-02-18
Chang Dan Engineering Inc. (representative)
Yao Danielle Director
ASE Test Inc. 2025-02-18
(representative)
Director
USI Inc. 2025-02-18
(representative)
Advanced Semiconductor Director
2018-04-30
Engineering Inc. (representative)
Neng Chao Director
ASE Test Inc. 2015-08-06
Chang (representative)
Director
USI Inc. 2015-04-01
(representative)
Director
2024-06-27
Advanced Semiconductor (representative)
Engineering Inc. Group Chief
2023-09-01
Procurement Officer
ASE Global Integrated
Chairman 2023-08-22
Solutions Co.Ltd.Director
2018-04-30
Advanced Semiconductor (representative)
Engineering Inc. Vice Chairman 2022-12-15
Andrew
Vice CEO 2023-01-01
Robert Tang
Supervisor
ASE Test Inc. 2018-05-30
(representative)
Shanghai Ding Hui Real Estate
Director 2018-08-29
Development Co. Ltd.Shanghai Ding Wei Real Estate
Director 2018-10-31
Development Co. Ltd.Shanghai Ding Yu Real Estate
Director 2018-10-17
Development Co. Ltd.USI Inc. Supervisor 2018-06-26
63 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(representative)
ASE Cultural and Educational
Director 2020-06-10
Foundation
ASE Environmental Protection
Director 2020-09-14
and Sustainability Foundation
USI Inc. Director 2015-04-01 2028-06-29
HUNTINGTON HOLDINGS
Chen-Lung Director 2012-06-30
INTERNATIONAL CO. LTD.Wei
Universal ABIT Holding
Director 2008-12-31
Co.Ltd.Particulars on
employment
in None
shareholders’
companies
2. Employment in other companies
√Applicable □ Not Applicable
Name of person Position held in
Name of other companies Start of tenure End of tenure
employed other companies
MUtek Electronics
Director 2022-05-12 2028-05-18
Co.Ltd. etc
Chen-Yen Wei
Independent
Lelon Electronics Corp. 2022-06-29 2028-06-24
director
Chang Yao Hong-Ying
Social Welfare & Charity Director and CEO 2020-07-25
Foundation
Bank of Kaohsiung Co. Independent
2023-05-25
Ltd. Director
School of Law of Ming
Dtuang Wang Honorary Professor 2020-08-06
Chuan University etc.Taiwan Smart Electricity
Director 2025-08-15
& Energy Co. Ltd.Xiongying Zhixin Director 2025-11-28
HydroTron Power Co. Chairman of the
2025-10-17
Ltd. Board
Chang Dan Yao LUCKYRICE LLC Founder CEO 2009-08-01
Danielle Lucky Chow Inc. Host Producer 2015-01-01
Shanghai Jinqiao Export
Independent
Yifan Li Processing Zone 2019-06-25 2025-12-30
director
Development Co. Ltd.School of Economics and
Finance Shanghai Professor of
2021-12-31
International Studies accounting
Yongtao Cang University
Zhejiang Qinglian Food Independent
2018-07-19
Co.Ltd. (non?listed) director
Grandall Law Firm Partner 2019-05-10
Sinopec Shanghai
Petrochemical Company
Jiangdong Huang Limited and Fuanda Fund Independent
2023-06-28
Management Co.Ltd. director
and outside director of
China Shipping
64 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Environment Technology
(Shanghai) Co.Ltd.Changjiang Pension Independent
2021-09-16
Insurance Co.Ltd. director
Fuanda Fund Independent
2023-07-25
Management Co.Ltd. director
Cosco Shipping
Outside director 2023-05-30
Technology Co. Ltd.China Europe Associate professor
International Business of strategy and 2020-06-01
School entrepreneurship
Wei Guo INNOTRON MEMORY Independent
2025-06-24
CO.LTD. director
Guanyan Zhixin Legal
2025-11-18
Consulting Management Representative
Zhong Lun Law Firm
Li Zhang First-class Partner 2014-06-01
Shanghai Office
GJS Capital Co. Ltd. Director 2023-05-28 2026-05-27
Jinpeng Shi Questyle Audio
Director 2022-11-29 2025-12-08
Technology Co.Ltd
Particulars on
employment in None
other companies
(III) Remuneration of directors and members of the senior management
√Applicable □ Not Applicable
The Proposal on the Remuneration of Directors of the Sixth Session
of the Board of Directors was considered and approved at the
Twenty-second Meeting of the Fifth Session of the Board of
Decision-making procedures Directors and the 2022 Annual General Meeting of Shareholders; the
for the remuneration of proposal on the annual remuneration of directors and senior
directors and members of the management for 2025 was reviewed and approved at the Thirteenth
senior management Meeting of the Remuneration and Appraisal Committee of the Sixth
Session of the Board of Directors and was subsequently submitted
to the Twenty?third Meeting of the Sixth Session of the Board of
Directors for deliberation and confirmation.Whether a director abstained
from voting in discussion of
Yes
his or her own remuneration
issues
The Company held the Twenty-second Meeting of the Fifth Session
of the Board of Directors on March 31 2023 at which the
Independent Directors verified the remuneration of the directors of
the Sixth Session of the Board of Directors of the Company and
commented that: the remuneration of the directors drawn up by the
Opinion of the Remuneration Board of Directors of the Company was determined after taking into
Committee or the Special account the characteristics of the industry in which the Company is
Meeting of Independent operating the scale of operation of the Company the level of
Directors on matters relating to corporate governance the backgrounds and professional qualities of
the remuneration of directors the directors and in the light of the actual circumstances of the
and senior management Company which is conducive to the enhancement of scientific
decision-making by the Board of Directors of the Company and
ensures the realization of the Company's development strategy
objectives and is in line with the interests of investors. We approve
the Proposal on the Remuneration of Directors of the Sixth Session
of the Board of Directors and agree to submit the proposal to
65 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
shareholders' meeting for deliberation.On April 1 2026 the Company convened the Thirteenth Meeting of
the Remuneration Committee. Upon review the Committee
concluded that the assessment and payment of remuneration for
directors and senior management for fiscal year 2025 as well as the
proposed remuneration plans for fiscal year 2026 are in compliance
with the Company’s operational management and remuneration
assessment policies and do not adversely affect the interests of the
Company or its shareholders.The remuneration of the Company’s directors consists of fixed
allowances basic remuneration performance?based remuneration
and medium? to long?term incentive income.
(1) The fixed allowances for independent directors and
non?independent directors are determined with reference to industry
remuneration levels taking into account factors such as the
Determination basis for the
Company’s operating scale and the actual operation of the Board of
remuneration of directors and
Directors and are subject to approval by the Company’s general
members of the senior
meeting of shareholders.management
(2) Where senior management personnel and non?independent
directors concurrently hold other positions within the Company in
addition to directors’ allowances the composition determination
and payment of their remuneration shall be governed by Articles 10
11 12 and 13 of the Remuneration Management Policy for
Directors and Senior Management.Actual payment of the
For details see Section IV- III (I) Changes in shareholding and
remuneration of directors and
remuneration of current directors and senior management and those
members of the senior
who left the position during the reporting period.management
Total remuneration actually
received by all directors and
members of the senior RMB 23.52 million
management at the end of the
reporting period
Assessment Basis:
The remuneration assessment was based on the directors’
remuneration plan of the Sixth Session of the Board of Directors as
approved at the 2022 Annual General Meeting of Shareholders; the
remuneration plan for senior management for fiscal year 2025 as
approved at the Seventeenth Meeting of the Sixth Session of the
Board of Directors; the remuneration plan for the Chairman for fiscal
Basis and Performance of the
year 2025 as approved at the 2024 Annual General Meeting of
Assessment for Remuneration
Shareholders; and the Rules of Procedure of the Remuneration
Actually Received by Directors
Committee of the Board of Directors.and Senior Management as at
Assessment Performance:
the End of the Reporting
In accordance with the prescribed performance evaluation standards
Period
and procedures the Remuneration Committee conducted
performance evaluations of directors and senior management. Based
on the evaluation results and remuneration distribution policies the
Committee proposed remuneration amounts for directors and senior
management which were reviewed and approved by the
Remuneration Committee and subsequently submitted to the Board
of Directors for deliberation.Deferred Payment Pursuant to the Company’s Remuneration Management Policy for
Arrangements for Directors and Senior Management the Company conducts
Remuneration Actually performance evaluations based on audited financial data and
Received by Directors and determines that a certain proportion of performance?based
Senior Management as at the remuneration shall be paid after the disclosure of the annual report
66 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
End of the Reporting Period and completion of the performance evaluation.Clawback or Withholding of
Remuneration for Directors
There were no clawback or withholding arrangements implemented
and Senior Management as at
during the reporting period.the End of the Reporting
Period
(IV) Changes in directors and members of the senior management of the Company
√Applicable □ Not Applicable
Name Position Change Reason for change
Rutherford Chang Director Position Vacated Personal reason
Chang Dan Yao Danielle Director Election
Chen-Yen Wei Employee Director Election
Jing Cao Vice President Resignation Retirement
(V) Particulars on punishments by securities regulatory authorities in the past three years
□Applicable √Not Applicable
(VI) Others
□Applicable √Not Applicable
IV. Performance of functions and duties by directors
(I) Attendance of directors at meetings of the Board of Directors and General Meetings of
Shareholders
Attendanc
e at the
Attendance at the Board of Directors meetings sharehold
Indepe ers'
ndent meetings
Director
direct Numbe
Name Number of Number Numb Absence
or or r of Number
Number of attendance of er of for two
not meetin of
attendance by attendan absen consecuti
gs held attendanc
in person telecommu ce by ce ve
this e
nication proxy meetings
year
Jeffrey Chen No 6 6 2 0 0 No 2
Chen-Yen
No 6 6 2 0 0 No 2
Wei
Dtuang
No 6 6 2 0 0 No 2
Wang
Chang Dan
No 6 6 2 0 0 No 2
Yao Danielle
Rutherford
No 0 0 0 0 0 No 0
Chang
Neng Chao
No 6 6 2 0 0 No 2
Chang
Andrew
No 6 6 2 0 0 No 2
Robert Tang
Yifan Li No 6 6 2 0 0 No 2
Yongtao
Yes 6 6 2 0 0 No 2
Cang
Jiangdong
Yes 6 5 2 1 0 No 2
Huang
67 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Wei Guo Yes 6 6 2 0 0 No 2
Li Zhang Yes 6 6 2 0 0 No 2
Particulars on absence of two consecutive meetings of the Board of Directors
□Applicable √Not Applicable
Number of meetings of the Board of Directors
6
held during the report period
Including: on site meetings 4
Meetings held by telecommunication 2
Number of meetings held both on site and by
0
telecommunication
(II) Objection raised by directors to relevant issues of the Company
□Applicable √Not Applicable
(III) Others
□Applicable √Not Applicable
V. Special committees under the Board of Directors
√Applicable □ Not Applicable
(I) Members of special committees under the Board of Directors
Type of special committees Name of members of special committees
Audit Committee Yongtao Cang Jiangdong Huang Wei Guo Jeffrey Chen Yifan Li
Nomination Committee Wei Guo Jiangdong Huang Yongtao Cang Jeffrey Chen Chen-Yen Wei
Remuneration Committee Jiangdong Huang Yongtao Cang Wei Guo Li Zhang Chen-Yen Wei
Strategy and Sustainability Jeffrey Chen. Chen-Yen Wei Neng Chao Chang Andrew Robert Tang
Committee Yifan Li Wei Guo Li Zhang
(II) 5 meetings held by the Audit Committee during the reporting period
Other
Important comments information on
Date Contents
and suggestions performance of
duties
The following proposals were deliberated The Company's
and adopted: financial report was
1. Proposal on the 2024 Financial true complete and
Statements and Audit Report accurate with no
2. Proposal on the 2024 Financial Final related cheating fraud
Accounts Report and material
3. Proposal on the Special Report on the misstatement and the Communicated
Deposit and Actual Use of Proceeds Raised Company had no with the
in 2024 significant accounting management
March 28
4. Proposal on the Implementation of Daily error adjustments no on the
2025
Related?Party Transactions in 2024 and the changes in significant Company's
Estimated Daily Related?Party accounting policies and operations and
Transactions for 2025 estimates no matters development.
5. Proposal on the Company Entering into involving important
a Framework Agreement for Daily accounting judgments
Related?Party Transactions and no matters resulting
6. Proposal on the Investment in Wealth other type of audit
Management Products Using Idle report than standard
Self?Owned Funds unqualified audit report.
68 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
7. Proposal on the Reappointment of the After the internal audit
Financial Audit Firm for 2025 work report was
8. Proposal on the Reappointment of the reviewed no major
Internal Control Audit Firm for 2025 problems were found in
9. Proposal on the 2024 Internal Control the internal audit work.
Evaluation Report The Company used the
10. Proposal on the Company’s Internal raised funds in
Audit Work Report for the Fourth Quarter accordance with the
of 2024 provisions and
11. Proposal on the Formulation of the requirements of
2025 Internal Audit Plan relevant laws
12. Proposal on the 2024 Performance regulations and
Evaluation Report of the Accounting Firm regulatory documents
and the Report of the Audit Committee of and disclosed the
the Board of Directors on Its Oversight of relevant information of
the Accounting Firm the raised funds in a
13. Proposal on the 2024 Performance timely true accurate
Report of the Audit Committee of the and complete manner
Board of Directors with no violation of the
use and management of
the raised funds.The following proposals were deliberated The Company operates
and adopted: strictly in accordance
1. Proposal on the First Quarterly Report of with the standard
Communicated
2025 financial rules for the
with the
2. Proposal on the Internal Audit Work listed companies and
management
April 25 Report for the First Quarter of 2025 the Company's
on the
2025 3. Proposal on the Proposed Disposal of a Quarterly Report for Q1
Company's
Controlling Subsidiary and Related?Party 2025 fully and fairly
operations and
Transaction reflected the financial
development.condition and operating
results for the reporting
period.The following proposals were deliberated The Company operates
and adopted: strictly in accordance
1. Proposal on the 2025 Semi?annual with the standard
Report and Its Summary financial rules for the
Communicated
2. Proposal on the Special Report on the listed companies and
with the
Deposit Management and Actual Use of the Company's
management
August 25 Proceeds Raised for the First Half of 2025 Quarterly Report for
on the
2025 3. Proposal on the Increase of the Quota for 2025 Semi-Annual fully
Company's
Financial Derivatives Transactions and and fairly reflected the
operations and
Extension of the Authorization Period financial condition and
development.
4. Proposal on the Pre?approval Matters operating results for the
and Authorization Period for reporting period.Non?assurance Services Provided by the
Auditor
The following proposals were deliberated The Company operates
and adopted: strictly in accordance
Communicated
1. Proposal on the Third Quarterly Report with the standard
with the
of 2025 financial rules for the
management
October 27 2. Proposal on the Internal Audit Work listed companies and
on the
2025 Report for the Third Quarter of 2025 the Company's
Company's
3. Proposal on the Increase of Pre?approved Quarterly Report for Q3
operations and
Non?assurance Services to Be Provided by 2025 fully and fairly
development.the Auditor reflected the financial
condition and operating
69 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
results for the reporting
period.The following proposals were deliberated
and adopted:
December
Proposal on the Increase of Pre?approved None None
182025
Non?assurance Services to Be Provided by
the Auditor
(III) 1 meetings held by the Nomination Committee during the reporting period
Other
Important comments and information on
Date Contents
suggestions performance
of duties
The following proposals were The nominated non-independent
deliberated and adopted: director candidates have the
Proposal on Nominating qualifications and ability to serve as
Candidate for the Sixth Session directors of the Company and have
March 28
of the Board of Directors not been found to have any None
2025
circumstances prohibiting them
from serving as directors of the
Company as stipulated by laws and
regulations.(IV) 3 meetings held by the Remuneration Committee during the reporting period
Other
Important comments and information on
Date Contents
suggestions performance
of duties
The following proposals were The purchase of Directors and
deliberated and adopted: Senior Management Liability
1. Proposal on the Actual Insurance by the company
Remuneration of Chairman of the safeguards the legitimate rights
Board in 2024 and the Remuneration and interests of its directors
Plan in 2025 supervisors and senior
2. Proposal on Actual Remuneration management (including those
March 28 of the Company's Senior Management of subsidiaries). It supports
None
2025 in 2024 and the Remuneration Plan in their fulfillment of duties and
2025 lawful exercise of rights and
3. Proposal on Purchasing Liability obligations thereby enhancing
Insurance for Directors Supervisors corporate governance
and Senior Executives standards.
4. Proposal on Performance
Evaluation of the Company's Board of
Directors
The following proposals were This cancellation complies
deliberated and adopted: with the relevant provisions of
1. Proposal on the Confirmation that the Company’s 2023 Stock
the Second Lock?up Period of the Option Incentive Plan and the
2023 Employee Stock Ownership Plan Implementation and
April 25 Failed to Meet the Performance Performance Assessment
None
2025 Assessment Criteria Measures for the 2023 Stock
2. Proposal on the Failure to Fulfill the Option Incentive Plan. The
Exercise Conditions for the Second second lock?up period of the
Exercise Period of the 2023 Stock employee stock ownership plan
Option Incentive Plan and the failed to meet the performance
assessment criteria and the
70 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Proposed Cancellation of the exercise conditions of the
Corresponding Stock Options incentive plan were not
satisfied.The following proposals were This cancellation complies
deliberated and adopted: with the relevant provisions of
Proposal on the adjustment of the Company’s 2023 Stock
October participants and cancellation of part of Option Incentive Plan and the
None
27 2025 the options in the Incentive Stock Implementation and
Option Plan 2015 Performance Assessment
Measures for the 2023 Stock
Option Incentive Plan.(V) 2 meetings held by the Strategy and Sustainability Committee during the reporting period
Other
Important comments and information on
Date Contents
suggestions performance
of duties
The following proposals were
March 28 deliberated and adopted:
None None
2025 Proposal on the 2024 Sustainability
Report (including Materiality Topics).The following proposals were
deliberated and adopted:
1. Proposal on the Plan for Share Buy-
back by Centralized Bidding This share repurchase is
Transactions in 2025 conducive to safeguarding
April 25
2. Proposal on the Revision of the shareholder interests and None
2025
Environmental Health and Safety and reinforcing investor
Energy & Resource Policy. confidence.
3. Proposal on the Revision of the
Charter of the Group Sustainability
Committee.(VI) Specific particulars on matters of objection
□Applicable √Not Applicable
VI. Particulars on risks in the Company identified by the Audit Committee
□Applicable √Not Applicable
The Audit Committee had no objection to the supervision during the reporting period.VII. Employees of the parent company and major subsidiaries at the end of the period
(I) Employees
Number of on-the-job employees of the parent company 1848
Number of on-the-job employees of the main
19878
subsidiaries
Total number of on-the-job employees 21726
Number of retirees of whom the parent company and
30
major subsidiaries are responsible for the expenses
Breakdown by function
Function Number
Production 15752
Sales 773
Technical 3189
Financial 172
71 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Administrative 1840
Total 21726
Breakdown by education background
Education background Number
Doctor’s degree 26
Master’s degree 1546
Bachelor’s degree 7444
Junior college 2644
Senior high school and below 10066
Total 21726
(II) Remuneration policy
√Applicable □ Not Applicable
According to the needs of the Company's development strategy combined with industrial characteristics
talent market supply and demand employment areas and other factors the Company applied a market-
following strategy for the remuneration of ordinary position personnel while gave key position personnel
and outstanding talents competitive remuneration and provided them with equity incentives such as stock
options or employee stock ownership plan.(III) Training program
√Applicable □ Not Applicable
In order to enhance the effectiveness of organizational learning and create a learning corporate culture
the Company has set up the "USI University" (USIU) which continuously improves and develops the
professional knowledge skills and abilities of employees through the USIU online and offline courses so
as to achieve the strategic goals of the Company. USIU offers internal training courses in different
categories designed systematically and arranged by five colleges so that employees can take required
courses join training sessions held by internal lecturers as well as workshops organized by external
professional lecturers. The Company also promotes the Individual Development Program so as to ensure
the depth and breadth of employees' career development and contribute to the Company's sustainable
development.(IV) Labor outsourcing
√Applicable □ Not Applicable
Total working hours of labor outsourcing 3508263
Total remuneration paid for labor outsourcing (10000 yuan) 10961.24
VIII. Plan for profit distribution or conversion of capital reserve into share capital
(I) Formulation implementation or adjustment of the cash dividend policy
√Applicable □ Not Applicable
1.Formulation of the cash dividend policy
In order to improve and perfect the Company's scientific sustainable stable and active dividend
distribution and monitoring mechanism and to actively reward investors the Company has formulated a
clear cash dividend policy and its decision-making and adjustment mechanism in the Articles of
Association in accordance with the Listed Companies Regulatory Guidance No. 3 – Cash Dividends
Distribution of Listed Companies and other relevant policies.
2. Implementation of the cash dividend policy
During the reporting period the Company formulated the profit distribution plan for 2024 in accordance
with the relevant regulations the cash expenditure needs of the Company and the relevant provisions of
the Articles of Association and taking into account the actual operation of the Company as the following:
Regarding its profit distribution plan for 2024 USI is going to distribute a cash dividend of RMB 2.30
(tax included) for every 10 shares on the basis of the total share capital on the record date for implementing
72 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
the plan after deducting the number of shares in its special buy-back securities account without bonus
share or transfer of capital reserve into share capital and all the remaining undistributed profits shall be
carried forward for distribution in the following years. The total share capital of the Company on the
record date for implementing the plan for 2024 was 2196252041 shares. USI paid out the cash dividends
on the basis of 2189511641 shares excluding 6740400 shares in its special buy-back securities account.
2024 profit distribution was completed on June 6 2025.
3. Adjustment of cash dividend policy
During the reporting period the Company did not adjust its cash dividend policy.(II) Special description of the cash dividend policy
√Applicable □ Not Applicable
Whether in compliance with provisions of the Articles of Association or
√Yes □ No
requirements of the resolution of the general meeting of shareholders
Whether the dividend standard and ratio are definite and clear √Yes □ No
Whether the related procedures and mechanisms for decision-making are
√Yes □ No
complete
Whether independent directors performed their duties responsibly and played
√Yes □ No
their due roles
Whether minority shareholders were given the opportunity to fully express
their opinions and demands and whether their legitimate rights and interests √Yes □ No
were fully protected
(III) If the profits of the Company and the parent company's profits distributable to shareholders
are positive during the reporting period but there is no profit distribution plan the Company
shall disclose the reasons the usage and the utilization plan of the undistributed profits in detail
□Applicable √Not Applicable
(IV) Plan of profit distribution and conversion of capital reserve into share capital in the reporting
period
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Number of bonus shares distributed for every 10 shares held 0
Dividend for every 10 shares held (RMB yuan) (tax included) 4.30
Number of shares transferred from capital reserve for every 10
0
shares held
Amount of cash dividend (tax included) 1021445511.54
Net profits attributable to common shareholders of the listed
1853439277.28
company in 2023
Proportion of cash dividend to net profits attributable to
55.11
common shareholders of the listed company (%)
Amount of share repurchase included in the cash dividend
133486624.26
distribution
Total amount of dividend (tax included) 1154932135.80
Proportion of total dividend distributed to net profits
62.31
attributable to common shareholders of the listed company (%)
(V) Cash dividends for the last three fiscal years
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Cumulative cash dividend amount for the last three
2115318421.54
fiscal years (including tax)(1)
73 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Cumulative amount of repurchase and write-off in the
432147608.76
last three fiscal years(2)
Cumulative amount of cash dividends and repurchase
2547466030.30
and write-off in the last three fiscal years(3)=(1)+(2)
Average annual net income for the last three fiscal
1817922986.27
years(4)
Proportion of cash dividends in the last three fiscal years
140.13
(%)(5)=(3)/(4)
Net profit attributable to common shareholders of the
listed company in the consolidated statement of income 1853439277.28
for the most recent fiscal year
Undistributed profit at the end of the year in the parent
12159024853.45
company's statement for the most recent fiscal year
IX. Equity incentive plan employee stock ownership plan or other employee incentive measures of
the Company and their impacts
(I) Incentive matters disclosed in temporary announcements and without further progress or
change in subsequent implementation
√Applicable □ Not Applicable
Overview Index
Termination upon Completion of the Third Core Employee Stock For details see the
Ownership Plan: announcement (No.: 2025-
On February 27 2025 the Company convened the Sixteenth Meeting 014) disclosed by the
of the Sixth Session of the Board of Directors at which the Proposal Company on the website of
on the Termination upon Completion of the Third Core Employee Shanghai Stock Exchange
Stock Ownership Plan was reviewed and approved. The Board agreed (www.sse.com.cn) on March
to terminate the Third Core Employee Stock Ownership Plan. 1 2025
Failure to Meet the Performance Assessment Criteria for the Second
Lock?up Period of the 2023 Employee Stock Ownership Plan: For details see the
Based on the audited results the Company’s return on equity (ROE) announcement (No.: 2025-
for 2024 was 9.52% which failed to meet the requirements of the 043) disclosed by the
Company’s performance assessment criteria for the second lock?up Company on the website of
period. The Board of Directors has authorized the management to Shanghai Stock Exchange
dispose of the stock interests involved in the second lock?up period in (www.sse.com.cn) on April
accordance with the procedures and handling measures stipulated in 26 2025
the 2023 Employee Stock Ownership Plan.Failure to Meet the Exercise Conditions for the Second Exercise
Period of the 2023 Stock Option Incentive Plan and Proposed For details see the
Cancellation of the Corresponding Stock Options: announcement (No.: 2025-
Based on the audited results the Company’s return on equity (ROE) 044) disclosed by the
for 2024 was 9.52% which failed to meet the Company?level Company on the website of
performance assessment requirements. Accordingly the Company Shanghai Stock Exchange
proposes to cancel all stock options corresponding to the second (www.sse.com.cn) on April
exercise period under this incentive plan totaling 6.991 million 26 2025
options.For details see the
Adjustment of the Exercise Price of the 2023 Stock Option Incentive announcement (No.: 2025-
Plan: 045) disclosed by the
Due to the implementation of the annual equity distribution the Company on the website of
exercise price of the 2023 Stock Option Incentive Plan was adjusted Shanghai Stock Exchange
from RMB 14.27 per share to RMB 14.04 per share. (www.sse.com.cn) on April
262025
Cancellation of Stock Options under the 2023 Stock Option Incentive For details see the
Plan for the First Exercise Period upon Expiration: announcement (No.: 2025-
Under the 2023 Stock Option Incentive Plan the first exercise period 092) disclosed by the
was from October 13 2024 to October 12 2025. As of the expiration Company on the website of
74 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
of the exercise period a total of 1008860 stock options held by 62 Shanghai Stock Exchange
incentive recipients remained unexercised and had expired. The (www.sse.com.cn) on
Company proposes to cancel the above expired and unexercised stock October 29 2025
options.(II) Incentive matters not disclosed in temporary announcements or with further progress
Equity incentive
□Applicable √Not Applicable
Other explanations
□Applicable √Not Applicable
Employee stock ownership plan
□Applicable √Not Applicable
Other incentive measures
□Applicable √Not Applicable
(III) Equity incentives granted to directors and members of the senior management during the
reporting period
□Applicable √Not Applicable
(IV) Establishment and implementation of appraisal mechanism and the incentive mechanism for
senior management during the reporting period
√Applicable □ Not Applicable
The Company had an appraisal and incentive mechanism. The Remuneration Committee evaluated
directors and members of the senior management and formulated an annual remuneration plan based on
the profit completion and the Company's operational indicators of the year. The plan comprehensively
considered the average annual salary level of related industries and the current situation of the Company
and linked the annual salary of the Company's operators with the Company's financial position
profitability and completion of annual business goals to fully mobilize the enthusiasm of operators further
improve the work performance appraisal and the survival of the fittest mechanism for the Company's
members of the senior management and strengthen the restraint of responsibility objectives.X. Construction and implementation of internal control system during the reporting period
√Applicable □ Not Applicable
In accordance with the requirements of the Company Law the Basic Standards for Enterprise Internal
Control and their supporting guidelines as well as other relevant laws and regulations the company has
established internal control systems for various business operations and strictly implemented them. At the
same time the Company continues to carry out the construction optimization and improvement of
internal controls. During the reporting period the company revised a total of 28 rules including the
Articles of Association and the Rules of Procedure for the Board of Directors and formulated 2 new
systems including the Market Value Management System and the Management System for the Departure
of Directors and Senior Management among others. The Company also guided its subsidiaries to
conscientiously implement internal control systems improve relevant business processes and effectively
ensure the effectiveness of internal controls.The Company maintained effective internal control over all material aspects of financial and non-financial
reporting during the reporting period as detailed in the 2025 Internal Control Evaluation Report disclosed
on the website of the Shanghai Stock Exchange (www.sse.com.cn) at the same time as this report.Particulars on major defects in the internal control during the reporting period
□Applicable √Not Applicable
75 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
XI. Management and control on subsidiaries during the reporting period
√Applicable □ Not Applicable
During the reporting period subject to the requirements of the Company's internal control system the
Company carried out effective management in terms of operation organization structure human resources
finance capital guarantee and information disclosure of its subsidiaries in accordance with the
Administration Regulations for Subsidiaries. In order to strengthen the compliance management of
subsidiaries and enhance management efficiency and convenience the Company developed and put on
line a software platform of corporate governance system which integrates a series of functions such as
entity management meeting management and reporting of major issues which enhances the digitalization
of the compliance management of subsidiaries. Subsidiaries operated in accordance with the
administration regulations formulated by the Company and established corresponding decision-making
execution monitoring and feedback systems. Their organizational structures were with clear division of
labor and sound and clear functions.Risk of Abnormal Management and Control over Subsidiaries
□Applicable √Not Applicable
XII. Particulars on the internal control audit report
√Applicable □ Not Applicable
The internal control audit report is available on the website of the Shanghai Stock Exchange at
www.sse.com.cn.Whether disclosed the internal control audit report: Yes
Type of internal control audit report opinion: standard unqualified opinion
Whether a non-standard audit opinion on internal control was issued during the reporting period or the
preceding year
□Applicable √Not Applicable
XIII. Rectification of problems identified in self-examination of governance special actions by the
listed company
Not Applicable
XIV. Environmental Information of Listed Companies Included in the Mandatory Environmental
Information Disclosure Entity List and Their Principal Subsidiaries
√Applicable □Not Applicable
Number of Enterprises Included in the List
of Entities Subject to Mandatory 1
Environmental Information Disclosure
No. Query Index for Environmental Information Disclosure
Enterprise Name
Reports:
Enterprise Environmental Information Disclosure
1 USISH System (Shanghai)
https://e2.sthj.sh.gov.cn:8081/jsp/view/hjpl/index.jsp
Other Remarks
□Applicable √Not Applicable
XV. Work on corporate social responsibility
(I) Whether social responsibility report sustainability report or ESG report is disclosed separately
√Applicable □ Not Applicable
76 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Since 2013 the Company has regularly published Sustainability Reports which have been publicly
disclosed in the Sustainability section of the Company’s official website:(https://www.usiglobal.com/csr).(II) Specific situation of corporate social responsibility
√Applicable □ Not Applicable
Donations public welfare projects Quantity/Content Remark
Total investment (Unit: RMB 10000 yuan) 847.4
Including: funds (Unit: RMB 10000 yuan) 791.8
Materials (Unit: RMB 10000 yuan) 55.6
Number of beneficiaries 9130
Detailed introductions
√Applicable □ Not Applicable
USI has been adhering to the concept of “Realizing IDEAS Together” actively fulfilling corporate socialresponsibilities by participating in social welfare and practicing its commitment of “actively investing inpublic welfare activities that promote social well-being and encouraging employees to participate in socialwelfare activities” in its “Sustainability Policy” hoping to become an excellent example of corporate
citizenship. The Company gathered internal resources and manpower and invested RMB 8474421 yuan
in support of social welfare projects in 2025 and promoted social engagement in the four aspects of
“Education Contributing to Society Promoting Arts & Culture and External Participation” to make a
positive impact on surrounding communities.In addition to expanding educational initiatives to alleviate poverty and actively promoting rural education
and rural revitalization through public welfare actions the company has sponsored various projects acrossits facilities in the fields of education society environment and culture. These include the “The 6thCross?Strait Student Baseball League” “Cross?Strait (Nanjing) Youth Street Dance Exchange Program”
“China Weiqi League” “Library of Love” “Million Tree Planting Project” “Beach Cleanup Campaign”
“Campus LED Project” and cultural performances. By combining corporate efforts with the power of the
community the company aims to bring more positive energy and warmth to society and the environment
creating greater value for humanity.XVI. Efforts in consolidating the achievements in poverty alleviation and rural revitalization
√Applicable □ Not Applicable
Poverty Alleviation and Rural Revitalization Projects Quantity/Content Remark
Total investment (Unit: RMB 10000 yuan) 55.6
Including: Funds (Unit: RMB 10000 yuan) 40.0
Materials (Unit: RMB 10000 yuan) 15.6
Number of beneficiaries 2913
Forms of assistance (such as poverty alleviation by industrial
Poverty alleviation by
development poverty alleviation by job creation poverty
educational support
alleviation by educational support etc.)
Detailed introductions
√Applicable □ Not Applicable
In response to SDG 4 Quality Education and to promote balanced educational development the company
has focused on expanding achievements in poverty alleviation through education. It actively engages in
public welfare initiatives such as rural education support and rural revitalization providing children in
remote areas with access to better educational resources. The Company is committed to consolidating
poverty alleviation outcomes helping more students achieve their dreams and fostering harmonious social
development. In 2025 the Company launched initiatives including the "Rural Science and Technology
Education Program" "Industry-University Collaboration with Shanghai University of Engineering
Science" "Pearl Retrieval Project" "Micro Light Love Reading Room" "Western Student Aid Program"
"Charity Concert" and the "Lucheng Great Love Charity Day Donation" through the Charity Federation
investing a total of RMB 556000 and benefiting 2913 underprivileged students.
1. Rural Science and Technology Education Program
77 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Guided by the belief in technology for good the company places great emphasis on education in
impoverished areas. By donating computers and building computer classrooms it helps children in remote
regions access better educational resources aiming to bridge the urban-rural education gap. In 2025 the
program provided customized supportive technology empowerment to teachers in 7 schools. Through
instructional videos and teaching materials it revitalized computer education in these schools. To enhance
students' enthusiasm for computer skills the company organized fun typing competitions to reinforce
learning outcomes fostering a more positive and innovative technology education environment. This not
only improved students' technological proficiency but also shaped confident and creative future citizens
in the digital age promoting the sustainable development of rural education. A total of 2073 students
benefited from this initiative.
2. Industry-University Collaboration with Shanghai University of Engineering Science
To cultivate high-tech talent the company established a deep industry-university collaboration with
Shanghai University of Engineering Science adopting a "Four Synergies" model: collaborative education
talent development innovation and employment. The company donated equipment such as ultrasonic
aluminum wire bonders and gold ball bonders to the university’s laboratories for student practice. It
organized a one-day factory visit and seminar for 64 sophomore students and invited 10 students for a
three-month internship. These industry-academia integration activities ensured seamless alignment
between the university’s talent development and the company’s talent needs creating a win-win situation.Additionally the company established the "USI Electronics Excellence Scholarship" to support 12
outstanding underprivileged students encouraging their academic pursuits.
3. Pearl Retrieval Project
The company’s Huizhou and Kunshan facilities actively participated in the "Pearl Retrieval Project"
supporting academically excellent students from impoverished families for nine consecutive years. In
2025 the Kunshan facility organized the “99 Charity Sale” event through which agricultural products
from 12 underprivileged farming households were purchased. By engaging employees in the charity sale
of these agricultural products the Company raised funds and donated RMB 100000 to ZhuanglangCounty No. 1 High School in Gansu Province supporting 50 underprivileged students in the “USI WaterPearl Class of the Class of 2024” to complete their education. In addition customized learning supplies
were provided to encourage and support their studies. Furthermore the Kunshan facility invited 36 Pearl
students to visit the factory where they participated in on?site tours and interactive exchanges. Employees
shared insights on career development and life experience addressing the students’ questions regarding
academic choices learning methods daily life and trends in the manufacturing industry. Through these
warm and engaging study?tour activities the students broadened their understanding of enterprises and
were inspired to envision and pursue their future aspirations..
4. Micro Light Love Reading Room
Reading is the foundation for cultivating innovative R&D capabilities. To implement the "Promote
Education" initiative the company established its fourth Love Reading Room in Hongdian Primary School
Hongdian Township Wenshan City Yunnan Province a key area for rural revitalization support and
continued to maintain the reading room at Malipu Central Primary School.. During the construction phasethe Company encouraged employees to participate in the initiative under the theme “Donate a Book Fulfilla Dream” thereby rallying collective efforts to donate books. Through this initiative 670 children in
remote areas gained access to higher?quality educational resources. Upon the completion of the reading
room the Company and its employees jointly donated 3190 books and 20 speakers preloaded with 600
audiobooks significantly enriching the school’s teaching resources. The Company hopes that the reading
room will provide tangible support narrow the urban-rural education gap and promote balanced
educational development. It sincerely wishes for students to gain knowledge and energy from books
enabling them to keep pace with technological advancements and develop holistically just like their urban
counterparts.
5. Western Student Aid Program
"Ten years to grow trees a hundred years to nurture people." Investing in education benefits the present
and future generations. Through the Cihui Foundation the company implemented the Western Student
Aid Program in rural areas of Yunnan and Sichuan providing RMB 48000 in scholarships to 12 college
students. This financial support ensures their access to education helping outstanding students from
78 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
remote villages continue their studies and complete their education. The company aims to safeguard their
growth and enable them to use their knowledge to help others in the future.
6. Kunshan Charity Federation’s "Lucheng Great Love Charity Day Donation" Project
With a spirit of great love the company participated in the "Lucheng Great Love Charity Day Donation"
project donating materials worth RMB 10000 to support 20 individuals including critically ill patients
disabled persons underprivileged children and special-needs groups. This initiative contributes to rural
revitalization and demonstrates the company’s commitment to compassion and social responsibility.
7. Charity Concert
The Company’s Kunshan facility in collaboration with the Kunshan Charity Federation hosted the
“Emotions Connecting Kunshan and Taiwan Music Spreading Love” 2025 Kunshan Charity Choral
Concert. Through the power of music the event promoted cross?strait integration demonstrated care for
underprivileged groups and fostered the flow of goodwill across the Taiwan Strait helping to create a
strong culture of compassion and philanthropy in society. As a lead donor the Company contributed RMB
100000 to the event inspiring further charitable participation. By the conclusion of the concert
approximately RMB 8.4 million was raised in total with the funds designated to support children of
Taiwan compatriots and underprivileged groups in Kunshan City.XVII. Others
□Applicable √Not Applicable
79 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section V Major Events
I. Performance of commitments
(I) Commitments by the Company's actual controllers shareholders affiliates acquirers the Company and other relevant commitment parties during or
subsisted during the reporting period
√Applicable □ Not Applicable
If not
If not
Whether performed
Whether there performed
Party making strictly in a timely
Commitment Commitment Commitment Commitment is a deadline Commitment in a timely
the performed manner
background Type content time for duration manner
commitment in a timely describe the
performance describe the
manner specific
next step
reasons
USI
Enterprise
Limited and December 12
Others Note 1 No Long term Yes
actual 2019
controllers of
USI
USI
Commitments Enterprise
Settlement of
related to major Limited and December 12
horizontal Note 2 No Long term Yes
asset actual 2019
competition
restructuring controllers of
USI
USI
Enterprise
Settlement of
Limited and December 12
related Note 3 No Long term Yes
actual 2019
transactions
controllers of
USI
Settlement of
Commitments USI
horizontal Note 4 May 3 2010 No Long term Yes
related to IPO Enterprise
competition
80 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Limited and
ASE Inc.Settlement of Actual
horizontal controller of Note 5 May 3 2010 No Long term Yes
competition USI
Others USIE Note 6 June 17 2010 No Long term Yes
Others ASE Shanghai Note 7 June 25 2010 No Long term Yes
Actual
Others controller of Note 8 June 17 2010 No Long term Yes
USI
Note 1: Commitment to Guarantee the Independence of the Listed Company:
(1) Guarantee that the listed company's personnel are independent
1) Guarantee that the general manager vice president and other members of the senior management of the listed company hold full-time positions in the listed company
and receive remuneration from the listed company and no other administrative positions other than directors and supervisors in the party making the commitment and
its related parties; and that the personnel of the listed company continue maintaining independent;
2) Guarantee that the listed company has an independent and complete labor personnel and remuneration management system and that such system is completely
independent of the party making the commitment and its related parties;
3) Guarantee that the directors supervisors and members of the senior managers of the listed company are elected and perform the corresponding procedures in strict
accordance with the relevant provisions of the Company Law and the articles of association of the listed company and no directors supervisors and members of the
senior managers exceed the power or authority of the Board of Directors or the general meeting of the listed company to make personnel appointment and removal
decisions or interfere with personnel appointment and removal decisions.
(2) Guarantee that the listed company's assets are independent
1) Guarantee that the listed company has independent and complete assets and all of its assets are under the control of the listed company and are independently
owned and operated by the listed company;
2) Guarantee that the party making the commitment and its related parties did not and will not illegally occupy the funds and assets of the listed company in any way
before and after the completion of this transaction.
(3) Guarantee that the listed company's finance is independent
1) Guarantee that the listed company has an independent financial department and an independent financial accounting system is equipped with specialized financial
personnel and establishes an independent and complete financial accounting system. Guarantee that the listed company has a standardized and independent financial
accounting system and a financial management system for branches and subsidiaries;
81 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
2) Guarantee that the listed company opens a bank account independently and does not share a bank account with the party making the commitment and its related
parties;
3) Guarantee that the listed company can make financial decisions independently and there is no interference in the use of funds of the listed company;
4) Guarantee that the financial personnel of the listed company are independent and do not take part-time jobs at or receive remuneration from the party making the
commitment and its related parties;
5) Guarantee that the listed company pays taxes independently in accordance with the law.
(4) Guarantee that the listed company's organization is independent
1) Guarantee that the listed company has a sound corporate governance structure as a joint-stock company and has an independent and complete organizational
structure;
2) Guarantee that the general meeting of shareholders the Board of Directors independent directors the Board of Supervisors and the general manager of the listed
company exercise their functions and powers independently in accordance with laws regulations and the articles of association of the listed company.
(5) Guarantee that the listed company's business is independent
1) Guarantee that the listed company has the assets personnel qualifications and capabilities to carry out business activities independently and has the ability to
operate independently and continuously in the market;
2) Guarantee not to interfere in the business activities of the listed company except through the exercise of shareholder rights;
3) Guarantee that the party making the commitment and its related parties do not engage in the same or similar business as or with that of the listed company and take
effective measures to avoid horizontal competition.
(6) This letter of commitment shall have legal effect upon signature by the party making the commitment. The party making the commitment shall strictly fulfill all
the commitments in this letter of commitment and if its violation of any of such commitments causes any losses to the listed company the party making the
commitment shall bear the corresponding legal liabilities.Note 2: Commitment to avoid horizontal competition
(1) The party making the commitment guarantees that after the completion of this transaction it shall not directly or indirectly engage in the same or similar business
or projects as or with that in the business scope of the Company so as to avoid direct or indirect competition with the Company's production and operation.
(2) The controlling shareholder of the Company guarantees that it shall not use its share-controlling relationship with the Company to conduct business activities that
damage or may damage the interests of the Company and its other shareholders; and that it shall not use the information it understands or knows about the Company
to assist third parties to engage in participate in or invest in a business or project that competes with the Company.
82 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(3) The actual controller guarantees that it shall make efforts to cause the family members in close relation with it not to directly or indirectly engage in participate in
or invest in any business activities that compete with the production and operation of the Company. The actual controller guarantees that it shall not use its relationship
with the Company to conduct business activities that damage or may damage the interests of the Company and its other shareholders; and that it shall not use the
information it understands or knows about the Company to assist third parties to engage in participate in or invest in a business or project that competes with the
Company.
(4) In case of any losses caused to the Company due to the violation of the above commitments by the party making the commitment the party making the commitment
shall be liable for compensation and bear corresponding legal liabilities. The above commitments shall take effect from the date of this letter of commitment and shall
continue to be effective throughout the period in which the party making the commitment is the controlling shareholder and the actual controller of the Company and
cannot be changed or revoked.Note 3: Commitment to reduce and regulate related transactions:
(1) The party making the commitment and the enterprises controlled or influenced by the party making the commitment shall try their best to avoid and reduce related
transactions with the listed company and its subsidiaries.As far as the commitment of the listed company to reduce and regulate related transactions the transactions between the listed company and its subsidiaries and
independent third parties through the market shall be conducted by the listed company and its subsidiaries and independent third parties. Other companies controlled
or influenced by the committing party will strictly refrain from lending to the listed company and its subsidiaries occupying the funds of the listed company and its
subsidiaries or encroaching on the listed company and its subsidiaries by making advances and repaying debts. Listed company funds;
(2) All transactions required between the party making the commitment and the enterprises controlled or influenced by the party making the commitment and the
listed company and its subsidiaries shall be conducted in strict with the market principal and in a fair and reasonable manner based on the general principles of equality
mutual benefit and valuable consideration. If there is a government price for the transaction the government price shall prevail; if not the market fair price shall
prevail; if there is neither a government price nor a market reference price the cost price shall be determined according to the cost plus a comparable and reasonable
profit level;
(3) Related transactions between the party making the commitment and the listed company and its subsidiaries shall be subject to necessary legal procedures and
information disclosure obligations in strict accordance with the listed company's articles of association and related transaction management system. The party making
the commitment shall take the initiative to perform the obligation of avoidance according to the law when the listed company's authority deliberates related transactions;
related transactions subject to deliberation by the authority can only be executed after the deliberation and approval by the authority;
(4) The party making the commitment guarantees that it shall not obtain any illegitimate benefits through related transactions or make the listed company and its
subsidiaries undertake any undue obligations. If the listed company or its subsidiaries or other shareholders suffer losses due to the violation of the above commitments
by the party making the commitment or the listed company or its subsidiaries or other shareholders' interests are misappropriated due to the use of related relationship
by the party making the commitment the party making the commitment shall be liable for compensation to the losses caused therefrom of the listed company its
subsidiaries and other shareholders;
83 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(5) The above commitments shall continue to be valid during the period when the party making the commitment and the enterprises controlled or influenced by the
party making the commitment constitute the related parties of the listed company and cannot be changed or revoked.Note 4:
(1) The commitment person (including other enterprises controlled by the party making the commitment the same below) currently does not engage in the same or
similar business as or to that of Universal Scientific Industrial (Shanghai) Co. Ltd. ("USI") which constitute horizontal competition with USI or other business that
may adversely affect USI. (2) The person making the commitment shall not directly or indirectly engage in or participate in any business or activity that competes
with USI in any way (including but not limited to independent operation joint venture operation or owning equity and other interests in another company or enterprise)
inside or outside China or engage in any business activities that are the same as similar to or may replace USI's business in any way. (3) If the business opportunity
obtained by the person making the commitment from any third party does or may constitute competition with the business operated by USI the person making the
commitment shall notify USI immediately and cause the business opportunity to be transferred to USI. (4) Where USI further expands its business scope on the basis
of its existing business if the Company has already carried out production and operation of such expanded business the person making the commitment agrees that
USI has the right of first refusal to purchase the relevant business under the same commercial conditions; If the Company has not yet produced or operated such
expanded business it shall not engage in new business that competes with USI. (5) The person making the commitment shall in future business operations avoid
operating business that constitutes horizontal competition with USI. If the new business that the person making the commitment intends to carry out may constitute
horizontal competition with USI the person making the commitment shall obliged to notify USI of the new business. If USI objects to this the person making the
commitment shall unconditionally give up the development of the new business. If USI believes that the new business is beneficial to its development the person
making the commitment shall not only unconditionally give up the development of the new business but also promote the new business to be carried out by USI. If
USI determines that a certain business the person making the commitment has already conducted is in competition with USI the person making the commitment shall
transfer the business to a third party or terminate the business on its own in a timely manner after USI raises an objection. If USI makes a transfer request the person
making the commitment shall unconditionally transfer the above-mentioned business and assets to USI in priority at a fair price assessed by an intermediary with
qualifications for securities business.Note 5:
(1) Other enterprises excluding USI (including enterprises controlled by USI the same below) controlled by the person making the commitment currently do not
engage in the same or similar business as or to that of Universal Scientific Industrial (Shanghai) Co. Ltd.("USI") which constitute horizontal competition with USI
or other business that may adversely affect USI. 2) The person making the commitment shall not during the period of being confirmed as the actual controller of USI
according to Chinese laws and regulations directly or indirectly engage in or participate in any business or activity that competes with USI in any way (including but
not limited to independent operation joint venture operation or owning equity and other interests in anothercompany or enterprise) inside or outside China or engage
in any business activities that are the same as similar to or may replace USI's business in any way. (3) If the business opportunity obtained by the person making the
commitment from any third party does or may constitute competition with the business operated by USI the person making the commitment shall notify USI
immediately and cause the business opportunity to be transferred to USI. (4) Where USI further expands its business scope on the basis of its existing business if
other enterprises controlled by the person making the commitment have already carried out production and operation of such expanded business the person making
84 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
the commitment agrees that USI has the right of first refusal to purchase the relevant business under the same commercial conditions; If other enterprises controlled
by the person making the commitment have not yet produced or operated such expanded business the person making the commitment shall ensure that the enterprise
under their control does not engage in new business that competes with USI. (5) Other enterprises controlled by the person making the commitment shall in future
business operations avoid operating business that constitutes horizontal competition with USI. If the new business that other enterprises controlled by the person
making the commitment intend to carry out may constitute horizontal competition with USI such other enterprises shall be obliged to notify USI of the new business.If USI objects to this such other enterprises shall unconditionally give up the development of the new business. If USI believes that the new business is beneficial to
its development such other enterprises shall not only unconditionally give up the development of the new business but also promote the new business to be carried
out by USI. If USI determines that a certain business such other enterprises has already conducted is in competition with USI such other enterprises controlled by the
person making the commitment shall transfer the business to a third party or terminate the business on its own in a timely manner after USI raises an objection. If USI
makes a transfer request such other enterprises shall unconditionally transfer the above-mentioned business and assets to USI in priority at a fair price assessed by an
intermediary with qualifications for securities business. (5) Other enterprises controlled by the person making the commitment shall not engage in business or activities
that do or may adversely affect the operation and development of USI in any way. Such way includes but is not limited to: utilizing the social resources and customer
resources of the person making the commitment to hinder or limit the independent development of USI; spreading news or information that is unfavorable to USI in
the society and among customers; using the control position of the person making the commitment to exert influence resulting in abnormal changes or fluctuations of
USI's management personnel and R&D technicians which are not conducive to the development of USI.Note 6:
(1) For the situation that USI currently has or is about to have some patent rights and patent application rights in common with Universal Scientific Industrial Co.
Ltd. in order to protect the interests of USI and its minority shareholders the person making the commitment hereby commits that: if Universal Scientific Industrial
Co. Ltd. (including other enterprises controlled by Universal Scientific Industrial Co. Ltd. except USI and enterprises controlled by USI) causes any right infringement
and economic losses to USI and enterprises controlled by USI when exercising its patent application co-ownership and patent co-ownership the person making the
commitment shall be legally liable for the losses suffered by USI and enterprises controlled by USI and shall also pay full compensation. (2) Before the IPO of USI
if USI must be jointly and severally liable for damages to the dispatched personnel due to the fact that the labor dispatch unit is in arrears with the dispatched
personnel’s wages the person making the commitment agrees to compensate USI for the entire economic loss. (3) If USI and its subsidiaries need to pay social
insurance premiums or housing provident fund for employees as required or decided by the competent department or USI and its subsidiaries are fined or suffer losses
for failure to pay social insurance premiums or housing provident funds for employees in accordance with the law the person making the commitment shall be willing
to assume such liability without the consideration of USI and its subsidiaries.Note 7
USI is currently leasing part of the property of ASE (Shanghai) Inc. (hereinafter referred to as the "person making the commitment") for staff dormitory purposes. The
person making the commitment hereby makes the following commitments: If USI cannot continue using the leased property or suffers a claim from a third party due
to the defect of the property right of the person making the commitment to the leased property the person making the commitment shall bear the corresponding legal
liabilities and shall also fully compensate USI for any losses fines and relocation expenses incurred thereby.
85 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Note 8:
The person making the commitment and enterprises controlled by the person making the commitment (except ASE Technology Holding Co. Ltd. and enterprises
controlled by ASE Technology Holding Co. Ltd.) do not own any patents patent application rights or non-profit patented technology. (2) For the situation that USI
currently has or is about to have some patent rights and patent application rights in common with Universal Scientific Industrial Co. Ltd. in order to protect the
interests of USI and its minority shareholders the person making the commitment hereby commits that: if Universal Scientific Industrial Co. Ltd. (including other
enterprises controlled by Universal Scientific Industrial Co. Ltd. except USI and enterprises controlled by USI) causes any right infringement and economic losses to
USI and enterprises controlled by USI when exercising its patent application co-ownership and patent co-ownership the person making the commitment shall be
legally liable for the losses suffered by USI and enterprises controlled by USI and shall also pay full compensation. (3) Before the IPO of USI if USI must be jointly
and severally liable for damages to the dispatched personnel due to the fact that the labor dispatch unit is in arrears with the dispatched personnel’s wages the person
making the commitment agrees to compensate USI for the entire economic loss. (4) If USI and its subsidiaries need to pay social insurance premiums or housing
provident fund for employees as required or decided by the competent department or USI and its subsidiaries are fined or suffer losses for failure to pay social
insurance premiums or housing provident funds for employees in accordance with the law the person making the commitment shall be willing to assume such liability
without the consideration of USI and its subsidiaries.
86 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(II) Where the Company has profit forecasts on assets or projects and the reporting period was
within the term of profit forecasts the Company has to state whether such profit forecasts on
assets or projects are fulfilled and the reasons therefor
□Fulfilled □Unfulfilled √Not Applicable
(III) Execution of the performance commitments and its impact on the goodwill impairment testing
□Applicable √Not Applicable
II. Non-operating misappropriation of funds by controlling shareholders and other related parties
during the reporting period
□Applicable √Not Applicable
III. Illegal guarantees
□Applicable √Not Applicable
IV. Explanation by the Board of Directors of the Company on other type of audit report than
standard unqualified audit report issued by the accounting firm
□Applicable √Not Applicable
V. Analysis by the Company on reasons for and impacts of changes in accounting policies and
accounting estimates or corrections of significant accounting errors
(I) Analysis by the Company on reasons for and impacts of changes in accounting policies and
accounting estimates
□Applicable √Not Applicable
(II) Analysis by the Company on reasons and impacts of the correction of significant accounting
errors
□Applicable √Not Applicable
(III) Communication with the previous accounting firm
□Applicable √Not Applicable
(IV) Approval process and other explanations
□Applicable √Not Applicable
VI. Appointment and dismissal of the accounting firm
Unit: 10000yuan Currency: RMB
Current accounting firm
Deloitte Touche Tohmatsu Certified Public
Name of domestic accounting firm
Accountants LLP
Remuneration of domestic accounting firm 464
Number of years of audit services by the
15
domestic accounting firm
Name of CPAs from domestic accounting Yuan Shouqing and Hu Ke
Number of consecutive years of audit services
15
of CPAs in domestic accounting firms
Name Remuneration
Deloitte Touche Tohmatsu Certified
Internal control audit accounting firm 133.9
Public Accountants LLP
Sponsor Guotai Haitong Securities Co. Ltd. 0
87 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Particulars on appointment and dismissal of the accounting firm
√Applicable □ Not Applicable
The Company's 2024 annual general meeting of shareholders was held on April 23 2025 and this meeting
deliberated and approved the appointment of Deloitte Touche Tohmatsu Certified Public Accountants LLP
as the Company's 2025 financial audit institution and internal control audit institution.Particulars on the change of accounting firm during the auditing period
□Applicable √Not Applicable
Explanation of the decrease of 20% or more (including 20%) in audit fees compared to the previous
year
□Applicable √Not Applicable
VII. Risk of suspension of listing
(I) Reasons for the suspension of listing risk warning
□Applicable √Not Applicable
(II) Measures to be taken by the Company
□Applicable √Not Applicable
(III) Circumstances and reasons for termination of listing
□Applicable √Not Applicable
VIII. Matters related to bankruptcy and reorganisation
□Applicable √Not Applicable
IX. Material litigation and arbitration
□Applicable √Not Applicable
X. The listed company directors senior management controlling shareholders and actual
controllers suspected of violating laws and regulations penalized and relevant rectifications
□Applicable √Not Applicable
XI. Particulars on credibility status of the Company its controlling shareholders and actual
controllers during the reporting period
√Applicable □ Not Applicable
During the reporting period the Company's controlling shareholders and actual controllers did not fail to
perform the obligations determined by the effective legal documents of the court and had no bad faith
situation such as a large amount of debts due and unpaid.XII. Major related transactions
(I) Related transactions in relation to daily operation
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
√Applicable □ Not Applicable
Overview Index
Announcement on Actual Regular Related Party For details please refer to the announcement
Transactions in 2023 and Predicted Regular disclosed on the website of the SSE
Related Party Transactions in 2024 (www.sse.com.cn) (No.: 2025?022).Announcement on the Company Entering into a For details please refer to the announcement
88 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Framework Agreement for Daily Related?Party disclosed on the website of the SSE
Transactions (www.sse.com.cn) (No.: 2025?023).Supplementary Announcement on the For details please refer to the announcement
Implementation of Daily Related?Party disclosed on the website of the SSE
Transactions for 2024 and the Estimated Daily (www.sse.com.cn) (No.: 2025?032).Related?Party Transactions for 2025
Announcement on the Increase in the Estimated For details please refer to the announcement
Amount of Daily Related?Party Transactions for disclosed on the website of the SSE
2025 (www.sse.com.cn) (No.: 2025?093).
2. Events disclosed in temporary announcements and with further progress or change in subsequent
implementation
□Applicable √Not Applicable
3. Events not disclosed in temporary announcements
□Applicable √Not Applicable
(II) Related transactions as a result of acquisition and disposal of assets or equity
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
√Applicable □Not Applicable
Overview Index
Announcement on the Proposed Disposal of a For details please refer to the announcement
Controlling Subsidiary and Related?Party disclosed on the website of the Shanghai Stock
Transaction Exchange (www.sse.com.cn) (No.: 2025?042).Announcement on the Proposed Disposal of Land For details please refer to the announcement
of a Controlling Subsidiary and Related?Party disclosed on the website of the Shanghai Stock
Transaction Exchange (www.sse.com.cn) (No.: 2025?061).Announcement on the Completion of the For details please refer to the announcement
Transaction and Settlement for the Disposal of a disclosed on the website of the Shanghai Stock
Controlling Subsidiary Exchange (www.sse.com.cn) (No.: 2025?079).
2. Events disclosed in temporary announcements and with further progress or change in subsequent
implementation
□Applicable √Not Applicable
3. Events not disclosed in temporary announcements
□Applicable √Not Applicable
4. Disclosable performance achievements during the reporting period when involved with agreed-
upon performance
□Applicable √Not Applicable
(III) Major related transactions in joint external investment
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□Applicable √Not Applicable
2. Events disclosed in temporary announcements and with further progress or change in subsequent
implementation
□Applicable √Not Applicable
89 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
3. Events not disclosed in temporary announcements
□Applicable √Not Applicable
(IV) Creditor's rights and debts with affiliates
1. Events disclosed in temporary announcements and without further progress or change in
subsequent implementation
□Applicable √Not Applicable
2. Events disclosed in temporary announcements and with further progress or change in subsequent
implementation
3. □Applicable √Not Applicable
4. Events not disclosed in temporary announcements
□Applicable √Not Applicable
(V) Financial business between the Company and the financial company with a related relationship
with the Company the Company's holding financial company and the related party
□Applicable √Not Applicable
(VI) Others
□Applicable √Not Applicable
XIII. Material contracts and their performance
(I) Trusteeship contracting and leasing matters
1. Trusteeship
□Applicable √Not Applicable
2. Contracting
□Applicable √Not Applicable
3. Leasing
□Applicable √Not Applicable
90 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(II) Guarantees
√Applicable □ Not Applicable
Unit: 10000 Currency: EUR
The Company's external guarantees (excluding guarantees to subsidiaries)
Guarantee
Relationship Counter
date (date Guarante Guarante Whether
between the Guarante Collater - Related
Guarant Guarantee Guarante of signing e Guarante Whether Whether e for
guarantor and e al (if guarante relationshi
or d party e amount the expiry e type fulfilled overdue overdue related
the listed start date any) e p
agreement date amount parties
company situation
)
////////
Total amount of guarantees during the reporting period (excluding
0
guarantees to subsidiaries)
Total balance of guarantees at the end of the reporting period (A)
0
(excluding guarantees to subsidiaries)
Guarantee of the Company and its subsidiaries to subsidiaries
Total amount of guarantees to subsidiaries during the reporting period 2100
Total balance of guarantees to subsidiaries at the end of the reporting
2100
period (B)
Total amount of the Company's guarantees (including guarantees to subsidiaries)
Total amount of guarantees (A+B) 2100
Proportion of the total amount of guarantees in the Company's net
0.83
assets (%)
Including:
Amount of guarantee provided to shareholders actual controllers and
0
related parties (C)
Amount of debt guarantee provided directly or indirectly for the
2100
guaranteed party whose asset-liability ratio exceeds 70% (D)
Amount of the total guarantee exceeding 50% of the net assets (E) 0
Total amount of the above three guarantees (C+D+E) 2100
Particulars on the situation that unexpired guarantees may bear joint
None
liability for repayment
91 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Particulars on guarantees
(III) Entrusting others to manage cash assets
1. Entrusted wealth management
(1) Overall condition of entrusted wealth management
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Type Risk Profile Undue balance Overdue uncollected amount
Bank wealth management products Low Risk 0 0
Others
√Applicable □Not Applicable
On March 28 2025 the Company convened the Seventeenth Meeting of the Sixth Session of the Board of Directors at which the Proposal on the Use of Idle
Self?Owned Funds for Investment in Wealth Management Products was reviewed and approved. The Board agreed that the Company may invest in wealth management
products using idle self?owned funds with a maximum total investment limit of RMB 50 billion which may be utilized on a rolling basis within the approved quota.
(2) Individual entrusted wealth management
□Applicable √Not Applicable
Others
□Applicable √Not Applicable
(3) Provision for the impairment of entrusted wealth management
□Applicable √Not Applicable
2. Entrusted loans
(1) Overall condition of entrusted loans
□Applicable √Not Applicable
Others
□Applicable √Not Applicable
92 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(2) Individual entrusted loans
□Applicable √Not Applicable
Others
□Applicable √Not Applicable
(3) Provision for the impairment of entrusted loans
□Applicable √Not Applicable
3. Others
□Applicable √Not Applicable
(IV) Other material contracts
□Applicable √Not Applicable
XIV. Progress of the use of raised funds
□Applicable √Not Applicable
XV. Particulars on other major events that have great influence on investors' value judgments and investment decisions
□Applicable √Not Applicable
93 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section VI Changes in Shares and Information of Shareholders
I. Changes in share capital
(I) Table of changes in shares
1. Table of changes in shares
Unit: Share
Before the change Change After the change
Shares
Bon O
converte
us th
Number % New Issue d from Subtotal Number %
Issu er
capital
e s
reserve
II. Tradable
shares held
not subject 2190556466 100 88787564 0 0 0 88787564 2279344030 100
to selling
restrictions
1. RMB
ordinary 2190556466 100 88787564 0 0 0 88787564 2279344030 100
shares
III. Total
number of 2190556466 100 88787564 0 0 0 88787564 2279344030 100
shares
2. Particulars on changes in ordinary shares
√Applicable □ Not Applicable
During the reporting period the Company’s total share capital increased from 2190556466 shares
to 2279344030 shares. The increase was attributable to the issuance of 13096907 new shares
resulting from the exercise of equity incentives and 75690657 new shares resulting from the
conversion of convertible bonds.
3. Impact of changes in shares on the earnings per share net asset value per share and other
financial indicators in the last year and period (if any)
√Applicable □ Not Applicable
During the reporting period the Company’s total share capital increased by 88787564 shares as a
result of equity incentive exercises and the conversion of convertible bonds accounting for 3.90%
of the Company’s total share capital after the change. From the end of the reporting period up to the
date of disclosure of this annual report the Company’s total share capital further increased by
109761048 shares due to the conversion of convertible bonds. While such conversions had a
dilutive effect on earnings per share in the short term they have strengthened the Company’s capital
base over the medium to long term reduced the asset?liability ratio lowered future interest expense
and enhanced the Company’s risk?resilience thereby supporting the Company’s achievement of
high?quality and sustainable development.
4. Other contents that must be disclosed in the opinion of the Company or according to
requirements of the securities regulatory institution
□Applicable √Not Applicable
94 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
(II) Changes in shares subject to selling restrictions
□Applicable √Not Applicable
Unit: share
II. Issuance and listing of securities
(I) Issuance of securities during the reporting period
□Applicable √Not Applicable
Particulars on issuance of securities during the reporting period (please explain separately the bonds
with different interest rates during their duration):
□Applicable √Not Applicable
(II) Changes in the total number of shares and shareholder structure of the Company and
changes in the structure of assets and liabilities of the Company
√Applicable □ Not Applicable
1. Changes in Total Share Capital
During the reporting period the Company’s total share capital increased by an aggregate of
88787564 shares as a result of equity incentive exercises and the conversion of convertible bonds.
From the end of the reporting period up to the date of disclosure of this annual report the Company’s
total share capital further increased by 109761048 shares due to the conversion of convertible
bonds.
2. Changes in Shareholder Structure
The Company's controlling shareholder and actual controller remained unchanged. The controlling
shareholder is still USI Enterprise Limited whose shareholding ratio decreased from 76.86% to
70.48%. Apart from the controlling shareholder there are no other shareholders holding more than
5% of the company's shares. The actual controllers remain Mr. Jason C.S. Chang and Mr. Richard
H.P. Chang .
3. Changes in the Company's Asset and Liability Structure
At the beginning of the reporting period the company's total assets were RMB 39.998 billion and
total liabilities were RMB 21.939 billion with a debt-to-asset ratio of 54.85%. At the end of the
reporting period total assets were RMB 40.486 billion and total liabilities were RMB 19.765 billion
with a debt-to-asset ratio of 48.82%. The Company's debt-to-asset ratio decreased by 6.03
percentage compared to the same period last year.(III) Existing internal employee shares
□Applicable √Not Applicable
III. Shareholders and actual controllers
(I) Total number of shareholders
Total number of shareholders of ordinary shares at the end of the reporting 55118
period
Total number of shareholders of ordinary shares at the end of previous
54741
month prior to the disclosure date of this annual report
Total number of preferred shareholders whose voting rights have been 0
95 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
restored as of the end of the reporting period
Total number of preferred shareholders at the end of the previous month
0
prior to the disclosure date of the annual report
(II) Table of shareholdings of the top ten shareholders and the top ten shareholders of shares
in circulation (or shareholders not subject to selling restrictions) at the end of the
reporting period
Unit: share
Shareholdings of the top ten shareholders (Excluding share lending through refinancing business)
Change Shares held by Restrict Pledge marking or Nature
Name of shareholder during the the end of the ed freezing of
%
(full name) reporting reporting shares Share Numb sharehol
period period held status er der
Foreign
USI Enterprise
0 1683749126 73.87 0 None legal
Limited
person
Hong Kong Securities Foreign
Clearing Company -28900979 54329049 2.38 0 Unknow legal
Ltd. person
Domesti
c non-
state-
ASE (Shanghai) Inc. 0 18098476 0.79 0 None
owned
legal
person
Invesco Great Wall
Fund – China Life
Insurance Company
Limited – Dividend
Insurance – Invesco 17286206 0.76 0 Unknow Others
Great Wall China Life
Equity Growth Stock
Portfolio Single Asset
Management Plan
(Available for Sale)
Bank of China
Limited – Huashang
Selected Return 11146516 0.49 0 Unknow Others
Hybrid Securities
Investment Fund
Agricultural Bank of
China Limited – CSI
500 Exchange?Traded
531884 9667686 0.42 0 Unknow Others
Open?End Index
Securities Investment
Fund
National Social
Security Fund 9500044 0.42 0 Unknow Others
Portfolio No. 503
Bank of China
Limited – Morgan
Stanley Digital
4519425 7928125 0.35 0 Unknow Others
Economy Hybrid
Securities Investment
Fund
96 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Shanghai Pudong
Development Bank
Co. Ltd. – Invesco
Individu
Great Wall Electronic 5887288 0.26 0 Unknow
al
Information Industry
Equity Securities
Investment Fund
China Merchants
Bank Co. Ltd. –
Zhongou Sci?Tech
Innovation Theme
5503619 0.24 0 Unknow Others
3?Year Closed?End
Flexible Allocation
Hybrid Securities
Investment Fund
Shareholding of top 10 shareholders subject to no selling restrictions
Number of tradable shares held Type and number of shares
Name of shareholder
not subject to selling restrictions Species Number
RMB
USI Enterprise Limited 1683749126 ordinary 1683749126
shares
RMB
Hong Kong Securities Clearing
54329049 ordinary 54329049
Company Ltd.shares
RMB
ASE (Shanghai) Inc. 18098476 ordinary 18098476
shares
Invesco Great Wall Fund – China
Life Insurance Company Limited –
RMB
Dividend Insurance – Invesco Great 17286206 ordinary 17286206
Wall China Life Equity Growth Stock shares
Portfolio Single Asset Management
Plan (Available for Sale)
Bank of China Limited – Huashang RMB
Selected Return Hybrid Securities 11146516 ordinary 11146516
Investment Fund shares
Agricultural Bank of China Limited – RMB
CSI 500 Exchange?Traded Open?End 9667686 ordinary 9667686
Index Securities Investment Fund shares
RMB
National Social Security Fund
9500044 ordinary 9500044
Portfolio No. 503
shares
Bank of China Limited – Morgan RMB
Stanley Digital Economy Hybrid 7928125 ordinary 7928125
Securities Investment Fund shares
Shanghai Pudong Development Bank
RMB
Co. Ltd. – Invesco Great Wall
5887288 ordinary 5887288
Electronic Information Industry
shares
Equity Securities Investment Fund
China Merchants Bank Co. Ltd. –
Zhongou Sci?Tech Innovation Theme RMB
3?Year Closed?End Flexible 5503619 ordinary 5503619
Allocation Hybrid Securities shares
Investment Fund
97 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
As of the beginning of the reporting period the Company’s
special share repurchase account held 6740400 unrestricted
Particulars on the special buy-back
tradable shares. By the end of the reporting period the account
securities account of the top ten
held 13061500 unrestricted tradable shares. During the
shareholders
reporting period the Company repurchased a total of 6321100
shares.Particulars on the above-mentioned
shareholders' entrusting voting
None
rights entrusted voting rights and
abstention from voting rights
The actual controllers of the Company are Mr. Jason C.S.Chang and Mr. Richard H.P. Chang who are brothers and
ultimately control the Company through indirect shareholding
Related or concert parties among the
by controlling USI Enterprise Limited and ASE (Shanghai)
shareholders above
Inc. two of the Company’s shareholders. The Company does
not know whether there are related relationships and concerted
actions among other shareholders.Particulars on the preference
shareholders with voting rights None
restored and their shareholdings
Top ten shareholders participating in share lending through refinancing business
□Applicable √Not Applicable
The top ten shareholders and the top ten shareholders with unrestricted tradable shares have
experienced changes compared to the previous period due to the lending/returning of shares through
the securities lending mechanism.□Applicable √Not Applicable
Number of shares held by the top ten shareholders subject to selling restrictions and description of
the selling restrictions
□Applicable √Not Applicable
(III) Strategic investors or general legal persons becoming the top ten shareholders because
of placing of new shares
□Applicable √Not Applicable
IV. Controlling shareholder and actual controllers
(I) Controlling shareholder
1 Legal person
√Applicable □ Not Applicable
Name USI Enterprise Limited
Person in charge of the Company or legal
Chen-Yen Wei
representative
Establishment date November 13 2007
Investment consulting services and
Main businesses
warehouse management services
Equity of other domestic and overseas listed
None
companies controlled or invested during the reporting
98 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
period
Particulars on other information None
2 Natural person
□Applicable √Not Applicable
3 Special particulars on the Company not having controlling shareholder
□Applicable √Not Applicable
4 Changes in controlling shareholders during the reporting period
□Applicable √Not Applicable
5 The ownership structure of USI and its controlling shareholder
√Applicable □ Not Applicable
(II) Actual controller
1 Legal person
□Applicable √Not Applicable
2 Natural person
√Applicable □ Not Applicable
Name Jason C.S. Chang
Nationality Singapore
Acquire right of residence in other
No
countries or regions or not
Since 2018 Mr. Chang has served as the chairman and
group CEO of ASE Technology Holding Co. Ltd.; since
Main job and title
1984 he has served as the chairman of Advanced
Semiconductor Engineering Inc.Mr. Chang currently controls 21.51% equity in ASE
Investment Holding Co. Ltd. (a company listed in Taiwan
with the stock code of 3711) holds 32.23% equity in Hung
Ching Development & Construction Co. (a company listed
Shareholdings in other domestic or
in Taiwan with the stock code of 2527) including 26.22%
overseas listed companies over the
through ASE Investment Holding Co. Ltd. and controls
past 10 years
48.69% equity in SINO HORIZON (a company listed in
Taiwan with the stock code of 2923). He once controlled
Advanced Semiconductor Engineering Inc. a company
listed on the Taiwan Stock Exchange with the stock code
99 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
of 2311 which was terminated from listing on April 30
2018.
Name Richard H.P. Chang
Nationality Hong Kong China
Acquire right of residence in other
Yes
countries or regions or not
Since 2018 has been serving as vice chairman and
Main job and title
president of ASE Technology Holding Co. Ltd.As a brother of Jason C.S. Chang holds 2.81% equity in
ASE Investment Holding Co. Ltd. (a company listed in
Taiwan with the stock code of 3711) and 12.90% equity in
Hung Ching Development & Construction Co. (a company
Shareholdings in other domestic or
listed in Taiwan with the stock code of 2527) and controls
overseas listed companies over the
48.69% equity in SINO HORIZON (a company listed in
past 10 years
Taiwan with the stock code of 2923). Once held the equity
of ASE Co. Ltd. a company listed on the Taiwan Stock
Exchange with a stock code of 2311 which was
terminated from listing on April 30 2018.
3 Special particulars on the Company not having actual controllers
□Applicable √Not Applicable
4 Particulars on changes in the Company's control during the reporting period
□Applicable √Not Applicable
5 The ownership Structure of USI and its Actual Controller
√Applicable □ Not Applicable
100 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
6 Control of the Company by actual controllers by way of trust or other means of asset
management
□Applicable √Not Applicable
(III) Other particulars regarding the controlling shareholders and the actual controllers
□Applicable √Not Applicable
V. Shares accumulatively pledged by the Company's controlling shareholder or largest
shareholder and its persons acting in concert account for more than 80% of their
shareholding in the Company
□Applicable √Not Applicable
VI. Other legal person shareholders with more than 10% shareholdings
□Applicable √Not Applicable
VII. Particulars on restrictions on reduction of shareholding
□Applicable √Not Applicable
VIII. Specific implementation of share repurchase during the reporting period
√Applicable □Not Applicable
101 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Unit: 100 million yuan Currency: RMB
2025 Share Repurchase Plan via Centralized Bidding
Share Repurchase Plan Name
Transactions
Disclosure Time of the Share
April 26 2025
Repurchase Plan
Proposed Number of Shares to be 7.5 million shares~15 million shares (Estimated based
Repurchased and Percentage of Total on the upper limit of the repurchase price)
Share Capital (%) 0.34%~0.68%
Proposed Repurchase Amount 1.5~3
Proposed Repurchase Period April 25 2025 to April 24 2026
Employee Stock Ownership Plan or Equity Incentive
Purpose of the Repurchase
Plan
Number of Shares Already
6321100
Repurchased (Shares)
Percentage of Shares Already
Repurchased Relative to the Target
Not Applicable
Shares Involved in the Equity
Incentive Plan (if applicable)
Progress of the Company's
Reduction of Repurchased Shares
Not Applicable
Through Centralized Bidding
Transactions
IX. Matters Relating to Preference Shares
□Applicable √Not Applicable
102 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section VII Information on Bonds
I. Corporate bonds and debt financing instruments issued by non-financial entities
□Applicable √Not Applicable
II. Convertible corporate bonds
√Applicable □ Not Applicable
(I) Issuance of convertible bonds
√Applicable □ Not Applicable
After being approved by the China Securities Regulatory Commission with a document (Z.J.X.K.[2021] No. 167) the Company publicly issued 34.5 million convertible corporate bonds on March
4 2021 each with a face value of RMB 100 amounting to RMB 3.45 billion in total. After being
approved by the Shanghai Stock Exchange with the Self-Regulatory Supervision Decision Letter
([2021] No. 133) the convertible corporate bonds were listed and traded on the Shanghai Stock
Exchange on April 2 2021. The bonds are abbreviated as "USI Convertible Bonds" with the bond
code of 113045.(II) Convertible bond holders and guarantors during the reporting period
√Applicable □ Not Applicable
Convertible corporate bonds publicly issued
Name of convertible corporate bonds by Universal Scientific Industrial
(Shanghai) Co. Ltd. in 2021
Number of convertible bond holders at the end of
4344
the period
Guarantor of the Company's convertible bonds None
Top ten convertible bond holders:
Amount of bonds held at
Holding ratio
Name of holders of convertible corporate bonds the end of the period
(%)
(RMB)
China Merchants Bank Co. Ltd. – Bosera CSI
Convertible Bond and Exchangeable Bond
23911600011.7
Exchange?Traded Open?End Index Securities
Investment Fund
China Construction Bank Corporation –
Huashang Credit Enhancement Bond Securities 187496000 9.18
Investment Fund
CITIC Securities Co. Ltd. – HFT SSE
Investment?Grade Convertible Bond and
863770004.23
Exchangeable Bond Exchange?Traded Open?End
Index Securities Investment Fund
Bank of Communications Co. Ltd. – Golden
Eagle Dividend Value Flexible Allocation Hybrid 49775000 2.44
Securities Investment Fund
China Foreign Economy and Trade Trust Co.Ltd. – Foreign Economic and Trade Trust – 46622000 2.28
Yongxin No. 8 Collective Capital Trust Plan
103 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Industrial and Commercial Bank of China
Limited – China Universal Convertible Bond 40369000 1.98
Securities Investment Fund
Guosen Securities Co. Ltd. 29959000 1.47
Basic Pension Insurance Fund Portfolio No. 111 27768000 1.36
Bank of China Limited – Ping An Strategy
247650001.21
Pioneer Hybrid Securities Investment Fund
CITIC Securities Co. Ltd. 24347000 1.19
(III) Changes in convertible bonds during the reporting period
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Change
Name of convertible Before the After the
Converted into
corporate bonds change Redeemed Put change
shares
Convertible corporate
bonds publicly issued
by Universal Scientific 3449856000 1406387000 0 0 2043469000
Industrial (Shanghai)
Co. Ltd. in 2021
Cumulative conversion of convertible bonds during the reporting period
√Applicable □ Not Applicable
Convertible corporate bonds publicly issued
Name of convertible corporate bonds by Universal Scientific Industrial (Shanghai)
Co. Ltd. in 2021
Conversion amount (RMB) during the
1406387000
reporting period
Number of shares converted during the
75690657
reporting period
Cumulative number of converted shares 75698035
Proportion of cumulative number of converted
shares to the total number of shares of the 3.4255
Company issued before the conversion (%)
Unconverted amount (RMB) 2043469000
Proportion of unconverted convertible bonds to
59.2310
the total convertible bonds issued (%)
(IV) Historical adjustments of conversion price
√Applicable □ Not Applicable
Unit: yuan Currency: RMB
Name of convertible Convertible corporate bonds publicly issued by Universal
corporate bonds Scientific Industrial (Shanghai) Co. Ltd. in 2021
Conversion
Adjusted Particulars on conversion
price Disclosure
conversion Disclosure time price adjustment
adjustment media
price Note
date
June 3 2021 19.75 June 1 2021 Shanghai 2020 profit distribution
June 13 2022 19.49 June 7 2022 Securities 2021 profit distribution
News China Cancellation of repurchased
July 21 2022 19.52 July 20 2022
Securities shares
December 9 19.50 December 8 Journal and The accumulative exercise of
104 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
2022 2022 Securities stock options reached the
Times degree of adjusting the
conversion price
May 30 2023 19.07 May 24 2023 2022 profit distribution
The accumulative exercise of
November 29 November 28 stock options reached the
19.06
2023 2023 degree of adjusting the
conversion price
June 5 2024 18.79 May 30 2024 2023 profit distribution
Cancellation of repurchased
shares and The accumulative
November 7 November 6
18.84 exercise of stock options
20242024
reached the degree of
adjusting the conversion price
The accumulative exercise of
January 6 stock options reached the
18.83 January 3 2025
2025 degree of adjusting the
conversion price
June 6 2025 18.60 May 30 2025 2024 profit distribution
The accumulative exercise of
September 2 stock options reached the
18.59 August 30 2025
2025 degree of adjusting the
conversion price
The accumulative exercise of
November 17 November 14 stock options reached the
18.58
2025 2025 degree of adjusting the
conversion price
The latest conversion price
as of the end of the 18.58
reporting period
(V) The Company's liabilities changes in credit and cash arrangements for debt repayment
in future years
√Applicable □ Not Applicable
At the beginning of the reporting period the Company’s total assets amounted to RMB 39.998
billion total liabilities amounted to RMB 21.939 billion and the asset?liability ratio was 54.85%.By the end of the reporting period the Company’s total assets increased to RMB 40.486 billion
total liabilities decreased to RMB 19.765 billion and the asset?liability ratio declined to 48.82%.Compared with the same period of the previous year the Company’s asset?liability ratio decreased
by 6.03 percentage points.On May 12 2025 China Chengxin Credit Rating Group issued the "2025 Follow-up Rating Report
for USI". The Company's entity credit rating remained at AA+ and the credit rating for "USI
Convertible Bonds" also remained at AA+ with a stable outlook. No adjustments were made to this
rating result.The Company adopts an annual interest payment method with the principal and the interest for the
final accrual year to be repaid upon maturity.(VI) Particulars on other information of convertible bonds
√Applicable □Not Applicable
On January 7 2026 the Company convened the Twenty?second Meeting of the Sixth Session of the
Board of Directors at which the Proposal on the Early Redemption of “USI Convertible Bonds”
105 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Reportwas reviewed and approved. The Board resolved to exercise the early redemption right of the “USIConvertible Bonds” and to redeem all outstanding bonds registered as of the redemption registration
date at a price equal to the bond’s par value plus accrued interest for the current period. For further
details please refer to the Announcement on the Early Redemption of “USI Convertible Bonds”
(No.: 2026?003) disclosed on January 8 2026.On January 21 2026 the Company further disclosed the Announcement on the Implementation of
the Redemption and Delisting of “USI Convertible Bonds” (No.: 2026?006) which specified the
redemption procedures redemption price payment method and schedule. Between January 22 2026
and January 28 2026 the Company disclosed five reminder announcements regarding the
implementation of the redemption and delisting of the “USI Convertible Bonds”.As of the close of trading on January 28 2026 (the redemption registration date) the outstanding
balance of the “USI Convertible Bonds” amounted to RMB 4072000 (equivalent to 40720 bonds)representing 0.1180% of the total issuance amount of the bonds. Cumulatively “USI ConvertibleBonds” with a total amount of RMB 3445928000 had been converted into the Company’s A?share
ordinary shares resulting in an aggregate conversion of 185459083 shares accounting for 8.3925%
of the Company’s total issued share capital prior to the conversion. According to the data provided
by China Securities Depository and Clearing Corporation Limited Shanghai Branch a total of
40720 bonds were redeemed in this redemption with a total redemption payment of RMB
4138466.01 (including accrued interest). The redemption payment date was January 29 2026. As
of January 29 2026 the publicly issued convertible bonds “USI Convertible Bonds” were delisted
from the Shanghai Stock Exchange. For further details please refer to the Announcement on the
Redemption Results of “USI Convertible Bonds” and Changes in Share Capital (No.: 2026?012)
disclosed by the Company on January 30 2026.
106 / 253Universal Scientific Industrial (Shanghai) Co. Ltd. 2025 Annual Report
Section VIII Financial Statements
I. Auditor’s report
The Company's annual financial report has been audited and given a standard unqualified opinion
by Chinese Certified Public Accountant Yuan Shouqing and Hu Ke of Deloitte Touche Tohmatsu
Certified Public Accountants LLP.II. Financial statements and notes
Please refer to the attached financial statements and auditor’s reportfor more details.
107 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL
(SHANGHAI) CO. LTD.Financial Statements and Auditor's Report
For the year ended 31 December 2025
108 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
CONTENTS PAGE(S)
AUDITOR'S REPORT 1 - 4
THE CONSOLIDATED BALANCE SHEET 5 - 6
THE COMPANY'S BALANCE SHEET 7 - 8
THE CONSOLIDATED INCOME STATEMENT 9
THE COMPANY'S INCOME STATEMENT 10
THE CONSOLIDATED CASH FLOW STATEMENT 11
THE COMPANY'S CASH FLOW STATEMENT 12
THE CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 13 - 14
THE COMPANY'S STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY 15 - 16
NOTES TO THE FINANCIAL STATEMENTS 17 - 148
109 / 253AUDITOR'S REPORT
De Shi Bao (Shen) Zi (26) No. P03863
(Page 1 of 4)
To the Shareholders of Universal Scientific Industrial (Shanghai) Co. Ltd.I. Opinion
We have audited the financial statements of Universal Scientific Industrial (Shanghai) Co. Ltd.("USI" or the "Company") which comprise the consolidated and the Company's balance sheets as
at 31 December 2025 and the consolidated and the Company's income statements the consolidated
and the Company's cash flow statements and the consolidated and the Company's statements of
changes in shareholders' equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements are prepared in all material respects in
accordance with the Accounting Standards for Business Enterprises and present fairly the
consolidated and the Company's financial position as at 31 December 2025 and the consolidated
and the Company's results of operations and cash flows for the year then ended.II. Basis for Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under
those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial
Statements" section of our report. We are independent of the Company in accordance with the
Independence Standards for Chinese Certified Public Accountants No. 1 - Independence
Requirements for Financial Statement Audit and Review Engagements and the Code of Ethics for
Chinese Certified Public Accountants (the "Code") and we have fulfilled our other ethical
responsibilities in accordance with the Code. We have complied with the independence requirements
for audits of public interest entities during our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgement 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 provide a separate opinion on these matters. We determine the followings are key audit
matters that need to be addressed in our report.Cut-off of Revenue Recognition
Description of the matter
As set out in Notes (V) 48 to the financial statements the operating income in 2025 in the
consolidated financial statements of USI is RMB59195055821.58 which is significant. The
revenue of USI mainly includes revenue from sales of goods and the revenue is recognised at the
time point when the customer obtains the control over the goods. Under different terms of sales
contracts and trades the time point of the transfer of goods control is different. As revenue is one of
the key performance indicators of USI and the time point for the transfer of control is different for
various transaction modes in relation to revenue recognition there is a risk that revenue is not
recognised in the appropriate accounting period. Therefore we consider whether revenue is recorded
in the appropriate accounting period as a key audit matter.
110 / 253AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (26) No. P03863
(Page 2 of 4)
III. Key Audit Matters - continued
Cut-off of Revenue Recognition - continued
Audit responses
1. Understand the accounting policies for revenue recognition and key internal controls related
to the cut-off of revenue recognition of USI evaluate the design and implementation of
relevant internal controls and test the effectiveness of its operation;
2. Check the material sales contracts identify the contract terms and trade conditions related to
the time point of goods control transfer and evaluate whether the time point of revenue
recognition of USI meets the provisions of the Accounting Standards For Business
Enterprises;
3. Select samples for the sales transactions recorded before and after the balance sheet date and
check the accounting records delivery orders cargo right transfer documents and other
supporting documents related to revenue recognition so as to evaluate whether the revenue
is recorded in the appropriate accounting period;
4. Review sales records after the balance sheet date for material sales returns and check relevant
supporting documentation to assess whether the related revenue was recorded in the correct
accounting period;
5. Analyse the fluctuation of revenue and gross margin before and after the year-end and pay
attention to whether there is any abnormal change.IV. Other Information
The management of USI is responsible for other information. The other information comprises the
information included in USI's annual report of 2025 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 audit work performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.
111 / 253AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (26) No. P03863
(Page 3 of 4)
V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The management of USI is responsible for the preparation and fair presentation of the financial
statements in accordance with the Accounting Standards for Business Enterprises and designing
implementing and maintaining internal control that is necessary to enable that the financial
statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing USI'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 USI or to
cease operations or has no realistic alternative but to do so.Those charged with governance is responsible for supervising the financial reporting process of USI.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement 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.As part of an audit in accordance with China Standards on Auditing we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
(1) 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.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Conclude on the appropriateness of the management's use of the going concern assumption
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 by China
Standards on Auditing 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.
112 / 253AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (26) No. P03863
(Page 4 of 4)
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
(5) Evaluate the overall presentation (including the disclosures) 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.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within USI to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We
remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with
relevant ethical requirements regarding independence and communicate with them all relationships
and other matters that may reasonably be thought to bear on our independence and where applicable
related safeguards.From the matters communicated with those charged with governance we determine those matters
that are 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 addressed in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.Deloitte Touche Tohmatsu CPA LLP Chinese Certified Public Accountant:
(Engagement partner)
Shanghai China
Chinese Certified Public Accountant:
2 April 2026
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report
and statutory financial statements prepared under accounting principles and practices generally accepted in the People's
Republic of China. These financial statements are not intended to present the financial position and results of operations
and cash flows in accordance with accounting principles and practices generally accepted in other countries and
jurisdictions. In case the English version does not conform to the Chinese version the Chinese version prevails.
113 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
AT 31 DECEMBER 2025
THE CONSOLIDATED BALANCE SHEET
RMB
Items Notes 31/12/2025 31/12/2024
Current Assets:
Cash and bank balances (V) 1 13240893883.02 12487357842.47
Held-for-trading financial assets (V) 2 9800747.96 42291303.91
Notes receivable (V) 3 109607255.52 79450682.42
Accounts receivable (V) 4 10029923095.52 10255502444.64
Prepayments (V) 5 92620111.45 53561714.38
Other receivables (V) 6 123820937.01 134298737.44
Inventories (V) 7 7977390848.76 7750208908.58
Non-current assets due within one year (V) 8 - 130008.72
Other current assets (V) 9 559117230.85 793813622.28
Total Current Assets 32143174110.09 31596615264.84
Non-current Assets:
Long-term receivables (V) 10 14158877.21 13787074.59
Long-term equity investments (V) 11 528293549.97 516492474.11
Other equity instrument investments (V) 12 13587010.31 22769795.62
Other non-current financial assets (V) 13 186517853.51 201093233.84
Investment properties (V) 14 3764530.53 4044288.01
Fixed assets (V) 15 5245813183.74 5120055058.11
Construction in progress (V) 16 185146576.52 364667733.73
Right-of-use assets (V) 17 399746943.70 467197344.08
Intangible assets (V) 18 313254551.42 311389637.91
Goodwill (V) 19 638281192.99 585220427.80
Long-term prepaid expenses (V) 20 158261375.43 175639403.30
Deferred tax assets (V) 21 450986471.59 434071460.33
Other non-current assets (V) 22 205497023.55 184987639.10
Total Non-current Assets 8343309140.47 8401415570.53
TOTAL ASSETS 40486483250.56 39998030835.37
114 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
AT 31 DECEMBER 2025
THE CONSOLIDATED BALANCE SHEET - continued
RMB
Items Notes 31/12/2025 31/12/2024
Current Liabilities:
Short-term borrowings (V) 24 2970280883.63 3676702163.10
Derivative financial liabilities (V) 25 2750760.31 4775306.67
Accounts payable (V) 26 10985186371.23 11055392929.15
Contract liabilities (V) 27 466578303.40 542457418.46
Employee benefits payable (V) 28 1011779389.14 904910191.47
Taxes payable (V) 29 220849106.91 390100700.18
Other payables (V) 30 790134442.66 805175805.23
Non-current liabilities due within one year (V) 31 344241485.07 193691444.57
Other current liabilities (V) 32 7067308.83 11106077.85
Total Current Liabilities 16798868051.18 17584312036.68
Non-current Liabilities:
Long-term borrowings (V) 33 125534368.00 29872115.04
Bonds payable (V) 34 2107520109.67 3467944609.76
Lease liabilities (V) 35 328026282.07 377309333.43
Long-term payables (V) 36 27115905.87 18348682.49
Long-term employee benefits payable (V) 37 183393709.83 230871543.86
Provisions (V) 38 49702177.15 74187068.91
Deferred income (V) 39 76135477.71 72457875.12
Deferred tax liabilities (V) 21 66489314.70 82878640.62
Other non-current liabilities (V) 40 1799639.99 1317464.14
Total Non-current Liabilities 2965716984.99 4355187333.37
TOTAL LIABILITIES 19764585036.17 21939499370.05
SHAREHOLDERS' EQUITY:
Share capital (V) 41 2279344030.00 2190556466.00
Other equity instruments (V) 42 205965039.67 409888096.26
Capital reserve (V) 43 3769132106.24 2049016598.82
Less: Treasury shares (V) 44 233565519.89 100052846.15
Other comprehensive income (V) 45 145039905.14 176365826.20
Surplus reserve (V) 46 1356456502.63 1049724882.30
Retained profits (V) 47 13199030429.23 12159024853.45
Total equity attributable to shareholders of the 20721402493.02 17934523876.88
Company
Minority interests 495721.37 124007588.44
TOTAL SHAREHOLDERS' EQUITY 20721898214.39 18058531465.32
TOTAL LIABILITIES AND 40486483250.56 39998030835.37
SHAREHOLDERS' EQUITY
The accompanying notes form part of the financial statements.The financial statements on pages 5 to 148 were signed by the following:
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
115 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
AT 31 DECEMBER 2025
THE COMPANY'S BALANCE SHEET
RMB
Items Notes 31/12/2025 31/12/2024
Current Assets:
Cash and bank balances 5668414466.99 3175577806.90
Held-for-trading financial assets 3276064.23 -
Notes receivable (XVI) 1 93702359.76 66017318.26
Accounts receivable (XVI) 2 2860071874.63 3434505018.46
Prepayments 4694119.55 6206791.81
Other receivables (XVI) 3 307186667.44 643273134.04
Inventories 1631700057.63 1764715535.20
Other current assets 63238209.68 52820691.60
Total Current Assets 10632283819.91 9143116296.27
Non-current Assets:
Long-term equity investments (XVI) 4 7107117260.51 7051019621.05
Other non-current financial assets 82559472.00 80819941.58
Fixed assets 1116689888.33 1094606101.11
Construction in progress 17838665.90 23564795.30
Right-of-use assets 27984650.99 25787662.19
Intangible assets 22545427.47 12625793.70
Long-term prepaid expenses 29070921.40 36046864.86
Deferred tax assets 62560818.30 65684705.63
Other non-current assets 3304980.79 11593335.74
Total Non-current Assets 8469672085.69 8401748821.16
TOTAL ASSETS 19101955905.60 17544865117.43
116 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
AT 31 DECEMBER 2025
THE COMPANY'S BALANCE SHEET - continued
RMB
Items Notes 31/12/2025 31/12/2024
Current Liabilities:
Short-term borrowings 17442331.61 21581521.53
Accounts payable 3145438903.28 4195865246.89
Contract liabilities 2899708.51 71514490.87
Employee benefits payable 110431762.67 127828187.55
Taxes payable 32204715.11 28274390.73
Other payables 72537096.30 49142457.37
Non-current liabilities due within one year 44412404.01 51411112.20
Total Current Liabilities 3425366921.49 4545617407.14
Non-current Liabilities:
Bonds payable 2107520109.67 3467944609.76
Lease liabilities 18507203.04 18452945.56
Deferred income 55039296.94 52523647.44
Other non-current liabilities 6000.00 6000.00
Total Non-current Liabilities 2181072609.65 3538927202.76
TOTAL LIABILITIES 5606439531.14 8084544609.90
SHAREHOLDERS' EQUITY:
Share capital (V) 41 2279344030.00 2190556466.00
Other equity instruments (V) 42 205965039.67 409888096.26
Capital reserve 3829033503.52 2108917996.10
Less: Treasury shares (V) 44 233565519.89 100052846.15
Surplus reserve (V) 46 1356456502.63 1049724882.30
Retained profits 6058282818.53 3801285913.02
TOTAL SHAREHOLDERS' EQUITY 13495516374.46 9460320507.53
TOTAL LIABILITIES AND 19101955905.60 17544865117.43
SHAREHOLDERS' EQUITY
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
117 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE CONSOLIDATED INCOME STATEMENT
RMB
Amount incurred in Amount incurred in
Items Notes
2025 2024 (restated)
I. Operating income (V) 48 59195055821.58 60690651098.10
Less: Operating costs (V) 48 53579581679.30 54929613226.02
Taxes and levies (V) 49 71456455.35 137973117.73
Selling expenses (V) 50 404219301.75 409346671.29
Administrative expenses (V) 51 1292285437.01 1370514447.54
Research and development expenses (V) 52 1901272779.33 1907549706.46
Financial expenses (V) 53 268387800.59 312651073.77
Including: Interest expenses 347417604.83 391009108.71
Interest income 327615870.61 304283941.12
Add: Other income (V) 54 58661980.70 63432650.72
Investment income (V) 55 266302817.24 213463202.51
Including: Income from investments in associates and
36224873.9233862787.66
joint ventures
Losses on changes in fair values (V) 56 (25911253.37) (2460620.20)
Losses on impairment of credit (V) 57 (43359041.99) (32800121.83)
Gains on impairment of assets (V) 58 10646619.51 312399.29
Gains on disposal of assets (V) 59 160377165.26 7531285.09
II. Operating profit 2104570655.60 1872481650.87
Add: Non-operating income (V) 60 65852952.18 25287666.76
Less: Non-operating expenses (V) 61 30930552.26 43952744.22
III. Total profit 2139493055.52 1853816573.41
Less: Income tax expenses (V) 62 310523233.88 209647374.75
IV. Net profit 1828969821.64 1644169198.66
(I) Categorised by the nature of continuing operation
1. Net profit from continuing operations 1878628653.64 1677603081.15
2. Net loss from discontinued operations (49658832.00) (33433882.49)
(II) Categorised by ownership:
1. Net profit attributable to shareholders of the Company 1853439277.28 1652482815.41
2. Profit or loss (net loss) attributable to minority interests (24469455.64) (8313616.75)
V. Other comprehensive income net of tax (V) 45 (20249303.65) (94946218.21)
(I) Other comprehensive income attributable to shareholders of
(34440324.80)(88021640.42)
the Company net of tax
1. Other comprehensive income that cannot be subsequently
7959738.7113484045.36
reclassified to profit or loss
(1) Changes from re-measurement of defined benefit plan 11022782.62 6887026.91
(2) Changes in fair values of other equity instrument
(3063043.91)6597018.45
investments
2. Other comprehensive income that will be reclassified to
(42400063.51)(101505685.78)
profit or loss
(1) Other comprehensive income that can be reclassified to
9343710.34(6856487.42)
profit or loss under the equity method
(2) Translation differences of financial statements
199458751.74(220145754.73)
denominated in foreign currencies
(3) Hedging reserve of net investment in foreign operations (251202525.59) 125496556.37
(II) Other comprehensive income attributable to minority
14191021.15(6924577.79)
interests net of tax
VI. Total comprehensive income 1808720517.99 1549222980.45
(I) Total comprehensive income attributable to shareholders of
1818998952.481564461174.99
the Company
(II) Total comprehensive income attributable to minority
(10278434.49)(15238194.54)
interests
VII. Earnings per share
(I) Basic earnings per share (RMB/share) (XVII) 2 0.85 0.76
(II) Diluted earnings per share (RMB/share) (XVII) 2 0.84 0.75
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
118 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE COMPANY'S INCOME STATEMENT
RMB
Amount incurred in Amount incurred in
Items Notes
20252024
I. Operating income (XVI) 5 20862332357.28 21949264518.64
Less: Operating costs (XVI) 5 19036886964.57 20016518726.72
Taxes and levies 22928562.96 58505199.33
Selling expenses 88389131.62 89214417.22
Administrative expenses 199886806.08 194076182.74
Research and development expenses 722772411.19 718909310.11
Financial expenses 154582708.71 11072834.38
Including: Interest expenses 177084636.68 161447593.54
Interest income 136466354.27 125653147.34
Add: Other income 31903367.48 28034470.97
Investment income (XVI) 6 2485100018.66 12915726.69
Including: Income (losses) from investments
3007139.46(3459733.12)
in associates and joint ventures
Losses on changes in fair values (1893905.35) (5988719.20)
Gains (losses) on impairment of credit 395979.21 (765483.93)
Losses on impairment of assets (8428589.65) (15060813.56)
Gains on disposal of assets 5732557.48 692982.05
II. Operating profit 3149695199.98 880796011.16
Add: Non-operating income 1614689.00 1476699.06
Less: Non-operating expenses 20730417.28 1086232.04
III. Total profit 3130579471.70 881186478.18
Less: Income tax expenses 63263268.43 51955199.14
IV. Net profit 3067316203.27 829231279.04
(I) Net profit from continuing operations 3067316203.27 829231279.04
(II) Net profit from discontinued operations - -
V. Other comprehensive income net of tax - -
VI. Total comprehensive income 3067316203.27 829231279.04
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
119 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE CONSOLIDATED CASH FLOW STATEMENT
RMB
Amount incurred in Amount incurred in
Items Notes
20252024
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the 59660284385.44 61750716937.26
rendering of services
Receipts of tax refunds 576669652.21 558900621.53
Other cash receipts relating to operating activities (V) 63(1) 430258720.88 521859456.50
Sub-total of cash inflows from operating 60667212758.53 62831477015.29
activities
Cash payments for goods purchased and services 52464329993.19 52626999310.02
received
Cash payments to and on behalf of employees 4535152124.19 4548139402.46
Payments of various types of taxes 761256661.75 814158824.01
Other cash payments relating to operating activities (V) 63(1) 502547016.14 631912867.26
Sub-total of cash outflows from operating 58263285795.27 58621210403.75
activities
Net Cash Flow from Operating Activities (V) 64(1) 2403926963.26 4210266611.54
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of
(V) 63(2) 10047475996.83 14236609027.28
investments
Cash receipts from investment income 193653643.79 185687208.00
Net cash receipts from disposals of fixed assets 212298639.25 68504500.64
intangible assets and other long-term assets
Net cash receipts from disposals of subsidiaries and
(V) 64(2) 140915365.12 -
other business units
Sub-total of cash inflows from investing activities 10594343644.99 14490800735.92
Cash payments to acquire or construct fixed assets 1294864593.16 1261962209.69
intangible assets and other long-term assets
Cash payments to acquire investments (V) 63(2) 10014000000.00 14209224800.00
Net cash payments for acquisitions of subsidiaries
-215479003.07
and other business units
Sub-total of cash outflows from investing 11308864593.16 15686666012.76
activities
Net Cash Flow from Investing Activities (714520948.17) (1195865276.84)
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 196760088.86 88509406.27
Including: Cash receipts from capital contributions
-38942006.40
from minority shareholders of subsidiaries
Cash receipts from borrowings 8904669570.74 10402853293.23
Sub-total of cash inflows from financing 9101429659.60 10491362699.50
activities
Cash repayments of borrowings 9021901729.67 11147070897.24
Cash payments for distribution of dividends or
722895162.41829073975.05
profits or settlement of interest expenses
Other cash payments relating to financing activities (V) 63(3) 273533554.59 278192358.83
Sub-total of cash outflows from financing 10018330446.67 12254337231.12
activities
Net Cash Flow from Financing Activities (916900787.07) (1762974531.62)
IV. Effect of Foreign Exchange Rate Changes on Cash (28552239.01) 26573176.36
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 743952989.01 1277999979.44
Add: Opening balance of cash and cash equivalents (V) 64(2) 12462292758.14 11184292778.70
VI. Closing Balance of Cash and Cash Equivalents (V) 64(2) 13206245747.15 12462292758.14
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
120 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE COMPANY'S CASH FLOW STATEMENT
RMB
Amount incurred in Amount incurred in
Items Notes
20252024
I. Cash Flows from Operating Activities:
Cash receipts from the sale of goods and the 21351363251.04 21490324283.88
rendering of services
Receipts of tax refunds 138081064.43 117340133.07
Other cash receipts relating to operating activities 153358010.36 178802198.22
Sub-total of cash inflows from operating 21642802325.83 21786466615.17
activities
Cash payments for goods purchased and services
19974129791.7019550062914.78
received
Cash payments to and on behalf of employees 632292642.03 616276076.27
Payments of various types of taxes 210865385.40 181670342.07
Other cash payments relating to operating activities 210930994.95 185171636.39
Sub-total of cash outflows from operating 21028218814.08 20533180969.51
activities
Net Cash Flow from Operating Activities (XVI) 7 614583511.75 1253285645.66
II. Cash Flows from Investing Activities:
Cash receipts from disposals and recovery of 3231569895.38 4406180000.00
investments
Cash receipts from investment income 2482092879.20 16063975.03
Net cash receipts from disposals of fixed assets 18895616.08 15615218.91
intangible assets and other long-term assets
Sub-total of cash inflows from investing 5732558390.66 4437859193.94
activities
Cash payments to acquire or construct fixed assets 344502046.13 240995233.42
intangible assets and other long-term assets
Cash payments to acquire investments 2951478400.00 4689524200.00
Sub-total of cash outflows from investing 3295980446.13 4930519433.42
activities
Net Cash Flow from Investing Activities 2436577944.53 (492660239.48)
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 196760088.86 49567399.87
Cash receipts from borrowings 1207592884.60 1148465800.00
Sub-total of cash inflows from financing 1404352973.46 1198033199.87
activities
Cash repayments of borrowings 1223019411.78 1236520276.30
Cash payments for distribution of dividends or 512399506.76 627438082.56
profits or settlement of interest expenses
Other cash payments relating to financing activities 194961107.45 115164986.67
Sub-total of cash outflows from financing 1930380025.99 1979123345.53
activities
Net Cash Flow from Financing Activities (526027052.53) (781090145.66)
IV. Effect of Foreign Exchange Rate Changes on (38083965.17) 25197378.34
Cash and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 2487050438.58 4732638.86
Add: Opening balance of cash and cash equivalents 3171249867.11 3166517228.25
VI. Closing Balance of Cash and Cash Equivalents 5658300305.69 3171249867.11
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of
the Accounting Body
121 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
RMB
2025
Equity attributable to shareholders of the Company
Items Other Minority Total shareholders'
Other equity Less: Treasury
Share capital Capital reserve comprehensive Surplus reserve Retained profits interests equity
instruments shares
income
I. Opening balance of the year 2190556466.00 409888096.26 2049016598.82 (100052846.15) 176365826.20 1049724882.30 12159024853.45 124007588.44 18058531465.32
II. Changes for the year
(I) Total comprehensive income - - - - (34440324.80) - 1853439277.28 (10278434.49) 1808720517.99
(II) Shareholders' contributions and
reduction in capital
1. Ordinary shares contributed by
13096907.00-183663181.86-----196760088.86
shareholders (Note V 41)
2. Capital contribution from holders of
75690657.00(142030056.59)1536452325.56-----1470112925.97
other equity instruments (Note V 42)
3 Disposal of a controlling subsidiary
-------(113233432.58)(113233432.58)
(Note VI 1)
4. Others (Note V 42 and 44) - (61893000.00) - (133512673.74) - - - - (195405673.74)
(III) Profit distribution
1. Transfer to surplus reserve - - - - - 306731620.33 (306731620.33) - -
2. Distribution to shareholders - - - - - (503587677.43) - (503587677.43)
(IV) Transfers within shareholders' equity
1. Transfer changes in defined benefit
----3114403.74-(3114403.74)--
plans to retained earnings
III. Closing balance of the year 2279344030.00 205965039.67 3769132106.24 (233565519.89) 145039905.14 1356456502.63 13199030429.23 495721.37 20721898214.39
122 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - continued
RMB
2024
Equity attributable to shareholders of the Company
Items Other Minority Total shareholders'
Other equity Less: Treasury
Share capital Capital reserve comprehensive Surplus reserve Retained profits interests equity
instruments shares
income
I. Closing balance of the prior year 2209991580.00 409890710.14 2283965543.00 (321730995.54) 261726655.45 966801754.40 11179762376.22 99421563.54 17089829187.21
Add: Adjustment to the provisional value of
business combination not involving enterprises - - - - 2660811.17 - - 882213.04 3543024.21
under common control (Note V 19)
II. Opening balance of the year (restated) 2209991580.00 409890710.14 2283965543.00 (321730995.54) 264387466.62 966801754.40 11179762376.22 100303776.58 17093372211.42
III. Changes for the year
(I) Total comprehensive income - - - - (88021640.42) - 1652482815.41 (15238194.54) 1549222980.45
(II) Shareholders' contributions and
reduction in capital
1. Ordinary shares contributed by
3909268.00-45658131.87----38942006.4088509406.27
shareholders (Note V 41)
2. Capital contribution from holders
of other equity instruments (Note V 1163.00 (2613.88) 23374.49 - - - - - 21923.61
42)
3. Share-based payment recognised in
--17755000.00-----17755000.00
shareholders' equity (Note V 43)
4. Cancellation of treasury shares
(23345545.00)-(298385450.54)321730995.54-----
(Note V 44)
5. Others (Note V 44) - - - (100052846.15) - - - - (100052846.15)
(III) Profit distribution
1. Transfer to surplus reserve - - - - - 82923127.90 (82923127.90) - -
2. Distribution to shareholders - - - - - - (590297210.28) - (590297210.28)
IV. Closing balance of the year 2190556466.00 409888096.26 2049016598.82 (100052846.15) 176365826.20 1049724882.30 12159024853.45 124007588.44 18058531465.32
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of the Accounting Body
123 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE COMPANY'S STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
RMB
2025
Total
Item Other equity Less: Treasury
Share capital Capital reserve Surplus reserve Retained profits shareholders'
instruments shares
equity
I. Opening balance of the year 2190556466.00 409888096.26 2108917996.10 (100052846.15) 1049724882.30 3801285913.02 9460320507.53
II. Changes for the year
(I) Total comprehensive income - - - - - 3067316203.27 3067316203.27
(II) Shareholders' contributions and
--
reduction in capital
1. Ordinary shares contributed by
13096907.00183663181.86---196760088.86
shareholders
2. Capital contribution from holders
75690657.00(142030056.59)1536452325.56---1470112925.97
of other equity instruments
3. Others - (61893000.00) - (133512673.74) - - (195405673.74)
(III) Profit distribution
1. Transfer to surplus reserve - - - - 306731620.33 (306731620.33) -
2. Distribution to shareholders - - - - - (503587677.43) (503587677.43)
III. Closing balance of the year 2279344030.00 205965039.67 3829033503.52 -233565519.89 1356456502.63 6058282818.53 13495516374.46
124 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
THE COMPANY'S STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY - continued
RMB
2024
Total
Item Other equity Less: Treasury
Share capital Capital reserve Surplus reserve Retained profits shareholders'
instruments shares
equity
I. Opening balance of the year 2209991580.00 409890710.14 2343866940.28 (321730995.54) 966801754.40 3645274972.16 9254094961.44
II. Changes for the year
(I) Total comprehensive income - - - - - 829231279.04 829231279.04
(II) Shareholders' contributions and
reduction in capital
1. Ordinary shares contributed by
3909268.00-45658131.87---49567399.87
shareholders
2. Capital contribution from holders
1163.00(2613.88)23374.49---21923.61
of other equity instruments
3. Share-based payment recognised
--17755000.00---17755000.00
in shareholders' equity
4. Cancellation of treasury shares (23345545.00) - (298385450.54) 321730995.54 - - -
5. Others - - - (100052846.15) - - (100052846.15)
(III) Profit distribution
1. Transfer to surplus reserve - - - - 82923127.90 (82923127.90) -
2. Distribution to shareholders - - - - - (590297210.28) (590297210.28)
III. Closing balance of the year 2190556466.00 409888096.26 2108917996.10 (100052846.15) 1049724882.30 3801285913.02 9460320507.53
____________________________________________________________
Head of the Company Chief Financial Officer Person in Charge of the Accounting Body
125 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(I) BASIC INFORMATION
1. General
Universal Scientific Industrial (Shanghai) Co. Ltd. ("Company" or "the Company") is a joint-stock limited
company changed from Universal Scientific Industrial (Shanghai) Co. Ltd. (the "Limited Company") on an
overall basis.The Limited Company is a foreign-funded enterprise invested and established in Zhangjiang Integrated Circuit
Port Pudong New Area Shanghai on 2 January 2003.On 17 June 2008 the Limited Company was approved to be changed into a foreign-invested joint-stock company
and renamed as Universal Scientific Industrial (Shanghai) Co. Ltd. in accordance with the Official Reply (Shang
Zi Pi No. [2008] 654) of the Ministry of Commerce of the People's Republic of China. The Company's registered
capital totals RMB2279344030.00 as at 31 December 2025.The Company was listed on the Shanghai Stock Exchange in February 2012 and publicly issued Class A Ordinary
shares in RMB in China.The Company is headquartered in Shanghai the People's Republic of China. The Company and its subsidiaries
("the Group") are engaged in design and manufacturing services (DMS) for electronic products; design
production and processing of communication products consumer electronic products industrial products cloud
and storage products automotive electronic products and medical products and provision of relevant technical
consulting services and relevant supporting services.
2. Date of approval for issue of the financial statements
The Company's and consolidated financial statements were approved by the board of directors of the Company
and authorised for issue on 2 April 2026.(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. Basis of preparation
The Group has implemented the Accounting Standards for Business Enterprises and relevant provisions issued
by the Ministry of Finance. In addition the Group has disclosed relevant financial information in accordance with
Compilation Rules for Information Disclosure by Companies Offering Securities to the Public No. 15 - General
Provisions on Financial Reports (Revised in 2023).
2. Going concern
The Group assessed its ability to continue as a going concern for the 12 months from 31 December 2025 and did
not notice any events or circumstances that may cast significant doubt upon its ability to continue as a going
concern. Therefore the financial statements have been prepared on a going concern basis.
3. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are
measured at fair value the Group adopts the historical cost as the principle of measurement in the financial
statements. Where assets are impaired provisions for asset impairment are made in accordance with relevant
requirements.
126 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continued
3. Basis of accounting and principle of measurement - continued
Where the historical cost is adopted as the measurement basis assets are measured at the amount of cash or cash
equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition.Liabilities are measured at the amount of proceeds or assets received or the contractual amounts for assuming the
present obligation or at the amounts of cash or cash equivalents expected to be paid to settle the liabilities in the
normal course of business.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Regardless of whether that price is directly observable or
estimated using another valuation technique fair values measured and disclosed in these financial statements are
determined on such a basis.When measuring non-financial assets at fair value consideration is given to the ability of a market participant to
generate economic benefits by using the asset in its highest and best use or by selling it to another market
participant that would use the asset in its highest and best use.For financial assets of which the transaction price is used as the fair value at initial recognition and for which a
valuation technique involving unobservable inputs is used in the subsequent measurement of fair value the
valuation technique is corrected during the valuation process so that the initial recognition result determined by
the valuation technique is equal to the transaction price.Fair value measurements are categorised into Level 1 2 or 3 based on the degree to which the inputs to the fair
value measurements are observable and the significance of the inputs to the fair value measurement in its entirety
which are described as follows:
* Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the
entity can access at the measurement date;
* Level 2 inputs are inputs other than inputs included within Level 1 that are observable for the asset or
liability either directly or indirectly;
* Level 3 inputs are unobservable inputs for the asset or liability.(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Statement of compliance with the Accounting Standards for Business Enterprises ("ASBEs")
The financial statements of the Company have been prepared in accordance with ASBEs and present truly and
completely the Company's and consolidated financial position As at 31 December 2025 and the Company's and
consolidated results of operations changes in the shareholders' equity and cash flows for the year then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year i.e. from 1 January to 31 December.
3. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing purpose till the
realisation of those assets in cash or cash equivalents. The Group's operating cycle is less than 12 months and the
Group takes 12 months as the criteria for determining liquidity of assets and liabilities.
127 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its domestic
subsidiaries operate. Therefore the functional currency of the Company is RMB. The Company's domestic
subsidiaries choose RMB as their functional currency except those adopt USD as their functional currency as
their sales of goods purchase of raw materials and other expenses are settled in USD and their financing is made
in USD. The Company's foreign subsidiary chooses USD JYP TWD GBP or EUR as its functional currency on
the basis of the primary economic environment in which it operates. The Group adopts RMB to prepare its
financial statements.
5. Determining method and selecting basis of significance criterion
Item Significance criterion
Significant construction
The investment budget of a single item is more than RMB70 million
in progress
Significant non-wholly- The investment amount of a single non-wholly-owned subsidiary is
owned subsidiaries more than RMB70 million
Significant joint ventures or The investment amount of a single investee is more than RMB70
associates million
Cash receipts from/payments to Cash inflow or outflow from a single investing activity is more than
significant investing activities RMB70 million
Accounts payable aged over one year that individually account for
Significant accounts payable aged
more than 10% of total accounts payable and amount to more than
over one year
RMB70 million
Other payables aged over one year that individually account for more
Significant other payables aged over
than 10% of total other payables and amount to more than RMB70
one year
million
6. Accounting treatment of business combinations not involving enterprises under common control
6.1 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which all
of the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets given liabilities
incurred or assumed and equity securities issued by the acquirer in exchange for control of the acquiree. The
intermediary expenses incurred by the acquirer in respect of auditing legal services valuation and consultancy
services etc. and other associated administrative expenses attributable to the business combination are recognised
in profit or loss when they are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a business
combination that meet the recognition criteria are measured at fair value at the acquisition date.Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net
assets the difference is treated as an asset and recognised as goodwill which is measured at cost on initial
recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets the acquirer firstly reassesses the measurement of the fair values of the acquiree's
identifiable assets liabilities and contingent liabilities and measurement of the cost of combination. If after that
reassessment the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets the acquirer recognises the remaining difference immediately in profit or loss for the current
period.
128 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Accounting treatment of business combinations not involving enterprises under common control
- continued
6.1 Business combinations not involving enterprises under common control and goodwill - continued
If either the fair values of identifiable assets liabilities and contingent liabilities acquired in a combination or the
cost of business combination can be determined only provisionally by the end of the year in which the business
combination was effected the acquirer recognises and measures the combination using those provisional values.Any adjustments to those provisional values within twelve months after the acquisition date are treated as if they
had been recognised and measured on the acquisition date.Goodwill arising on a business combination is measured at cost less accumulated impairment losses and is
presented separately in the consolidated financial statements.
7. Determination criteria of control and preparation method of consolidated financial statements
7.1 Determination criteria of control
Control is the power over the investee exposures or rights to variable returns from its involvement with the
investee and the ability to use its power over the investee to affect the amount of the investor's returns. The Group
reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes in the
above elements of the definition of control.
7.2 Preparation method of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the
Group loses control over the subsidiary.For a subsidiary disposed of by the Group the operating results and cash flows before the date of disposal (the
date when control is lost) are included in the consolidated income statement and consolidated cash flow statement
as appropriate.For a subsidiary acquired through a business combination not involving enterprises under common control the
operating results and cash flows from the acquisition date (the date when control is obtained) are included in the
consolidated income statement and consolidated cash flow statement as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on
the uniform accounting policies and accounting periods set out by the Company.The effects of all intra-group transactions on the consolidated financial statements are eliminated on consolidation.The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and
presented as "minority interests" under shareholders' equity in the consolidated balance sheet. The portion of net
profit or loss of subsidiaries for the period attributable to minority interests is presented as "profit or loss
attributable to minority interests" under "net profit" in the consolidated income statement.When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders' portion of the opening balance of owners' equity of the subsidiary the excess amount is
still allocated against minority interests.
129 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Determination criteria of control and preparation method of consolidated financial statements - continued
7.2 Preparation method of consolidated financial statements - continued
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control
over the subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and
minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference
between the amount by which the minority interests are adjusted and the fair value of the consideration paid or
received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the
difference the excess is adjusted against retained earnings.
8. Classification of joint arrangements and accounting treatments of joint operations
A joint arrangement is classified into joint operation and joint venture depending on the rights and obligations of
the parties to the arrangement which is assessed by considering the structure and the legal form of the arrangement
the terms agreed by the parties in the contractual arrangement and when relevant other facts and circumstances.A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the assets and obligations for the liabilities relating to the arrangement. A joint venture is a joint arrangement
whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.The Group accounts for investments in joint ventures using equity method. Refer to Note (III) 17.3.2 "Long-term
equity investments accounted for using the equity method" for details.
9. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily available for payments. Cash equivalents are the
Group's short-term (generally due within three months from the acquisition date) highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
10. Translation of transactions and financial statements denominated in foreign currencies
10.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded on initial recognition by applying an exchange rate that approximates
the actual spot exchange rate on the date of the transaction. The exchange rate that approximates the actual spot
exchange rate on the date of the transaction is calculated and determined according to the middle price of the
market exchange rate on the day before the period in which the transaction occurs (each month is divided into
three time periods: the first ten-day period of the month the middle ten-day period of the month and the last ten-
day period of the month). The Group updates the exchange rate that approximates the actual spot exchange rate
every period.At the balance sheet date foreign currency monetary items are translated into functional currency using the spot
exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot
exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet
date are recognised in profit or loss for the period except that (1) exchange differences related to a specific-
purpose borrowing denominated in foreign currency that qualify for capitalisation are capitalised as part of the
cost of the qualifying asset during the capitalisation period; (2) exchange differences related to hedging
instruments for the purpose of hedging against foreign currency risks are accounted for using hedge accounting;
(3) exchange differences arising from changes in the gross carrying amounts (other than the amortised cost) of
monetary items at fair value through other comprehensive income are recognised as other comprehensive income.
130 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Translation of transactions and financial statements denominated in foreign currencies - continued
10.1 Transactions denominated in foreign currencies - continued
When the consolidated financial statements include foreign operation(s) if there is foreign currency monetary
item constituting a net investment in a foreign operation exchange difference arising from changes in exchange
rates are recognised as "translation differences of financial statements denominated in foreign currencies " in other
comprehensive income and in profit or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional
currency at the spot exchange rates on the dates of the transactions. Foreign currency non-monetary items
measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined.Difference between the re-translated functional currency amount and the original functional currency amount is
treated as changes in fair value (including changes of exchange rate) and is recognised in profit or loss for the
period or as other comprehensive income.
10.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a foreign operation are
translated from the foreign currency into RMB using the following method: assets and liabilities on the balance
sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items are
translated at the spot exchange rates at the dates on which such items arose; all items in the income statement as
well as items reflecting the distribution of profits are translated at exchange rates that approximate the actual spot
exchange rates on the dates of the transactions; The difference between the translated assets and the aggregate of
liabilities and shareholders' equity items is recognised as other comprehensive income and included in
shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated
at an exchange rate that approximates the spot exchange rate on the date of the cash flows. The effect of foreign
exchange rate changes on cash and cash equivalents is regarded as a reconciling item and presented separately in
the cash flow statement as "Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents".The closing balances and the actual figures of previous year are presented at the translated amounts in the previous
year's financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a foreign operation
due to disposal of certain equity investments or other reasons the Group transfers the accumulated translation
differences of financial statements of this foreign operation attributable to the owners' equity of the Company and
presented under owners' equity to profit or loss for the period in which the disposal occurs.When the disposal of part of the equity investments or other reason results in decrease in proportion of equity in
a foreign operation but does not result in loss of control over the foreign operation the translation differences of
financial statements denominated in foreign currency relating to the partial disposal of the foreign operation are
attributable to minority interests and are not transferred to profit or loss for the period. When the disposal of
foreign operation is partial disposal of equity in associate or joint venture the translation differences of financial
statements denominated in foreign currency relating to the foreign operation is transferred to profit or loss in
proportion to the foreign operation disposed.
131 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual
provisions of the instrument.For financial assets purchased or sold in a regular way the Group recognises assets acquired and liabilities
assumed on a trade date basis or derecognises the assets sold on a trade date basis.Financial assets and financial liabilities are initially measured at fair value. The method for determining the fair
value of financial assets and financial liabilities is set out in the relevant disclosures of basis of accounting and
principle of measurement as described in Note (II). For financial assets and financial liabilities at fair value
through profit or loss transaction costs are immediately recognised in profit or loss for the period. For other
financial assets and financial liabilities transaction costs are included in their initially recognised amounts. When
initially recognising accounts receivable that do not contain significant financing components or of which the
financing components in the contract with a term of no more than one year are not taken into consideration in
accordance with the Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue Standards") the
Group adopts transaction price as defined in the Revenue Standards for initial measurement.The effective interest method is a method of calculating the amortised cost of a financial asset or a financial
liability and of allocating the interest income or interest expenses over the relevant accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life
of the financial asset or financial liability to the gross carrying amount of the financial asset or to the amortised
cost of the financial liability. When determining the effective interest rate the Group estimates future cash flows
considering all contractual terms of the financial assets or financial liabilities (such as repayment in advance
extension call options or other similar options) without considering the expected credit losses.The amortised cost of a financial asset or a financial liability is the initially recognised amount net of principal
repaid plus or less the cumulative amortised amount arising from amortisation of the difference between the
initially recognised amount and the amount at the maturity date using the effective interest method and then net
of cumulative loss allowance (only applicable to financial assets).
11.1 Classification recognition and measurement of financial assets
After initial recognition the Group's financial assets of various types are subsequently measured at amortised cost
at fair value through other comprehensive income ("FVTOCI") or at fair value through profit or loss ("FVTPL")
respectively.If contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding and the financial asset is held within a business model
whose objective is to hold financial assets in order to collect contractual cash flows such asset is classified into
financial assets at amortised cost which include cash and bank balances notes receivable accounts receivable
other receivables non-current assets due within one year and long-term receivables and etc.Upon initial recognition the Group may irrevocably designate the non-held-for-trading equity instrument
investments other than contingent considerations recognised in business combination not involving enterprises
under common control as financial assets at FVTOCI on an individual asset basis. Such type of financial assets
are presented as other equity instrument investments.
132 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
A financial asset is classified as held for trading if one of the following conditions is satisfied:
* It has been acquired principally for the purpose of selling it in the near term.* On initial recognition it is part of a portfolio of identifiable financial instruments that the Group manages
together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking.* It is a derivative that is neither a financial guarantee contract nor designated as an effective hedging
instrument.Financial assets at FVTPL include financial assets classified as at FVTPL and those designated as at FVTPL:
* Financial assets not satisfying the criteria of classification as financial assets at amortised cost and financial
assets at FVTOCI are classified as financial assets at FVTPL.* Upon initial recognition the Group may irrevocably designate the financial assets as at FVTPL if doing so
eliminates or significantly reduces accounting mismatch.Financial assets at FVTPL are presented as held-for-trading financial assets. Financial assets with a maturity over
one year since the balance sheet date (or without a fixed maturity) and expected to be held for over one year are
presented under other non-current financial assets.
11.1.1 Financial assets measured at amortised cost
Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method.Any gains or losses arising from impairment or derecognition are included in profit or loss.For financial assets at amortised cost the Group recognises interest income using effective interest method.Interest income is determined by applying an effective interest rate to the gross carrying amount of the financial
asset except for the following circumstances:
* For a purchased or originated credit-impaired financial asset the Group calculates and determines the
interest income by applying the credit-adjusted effective interest rate to the amortised cost of the financial
asset since initial recognition.* For a purchased or originated financial asset that is not credit-impaired but subsequently becomes credit-
impaired the Group calculates and determines the interest income by applying the effective interest rate to
the amortised cost of the financial asset in subsequent period. If the financial instrument is no longer credit-
impaired due to improvement of credit risk and the improvement is linked with an event occurred after
application of above provisions the Group will calculate and determine the interest income by applying
effective interest rate to the gross carrying amount of the financial asset.
11.1.2 Financial assets at FVTOCI
Changes in fair value of non-held-for-trading equity instrument investments designated as financial assets at
FVTOCI are recognised in other comprehensive income. When the financial asset is derecognised the cumulative
gains or losses previously recognised in other comprehensive income are transferred and included in retained
earnings. During the period in which the Group holds the non-held-for-trading equity instrument revenue from
dividends is recognised in profit or loss for the period when (1) the Group has established the right of collecting
dividends; (2) it is probable that the associated economic benefits will flow to the Group; and (3) the amount of
dividends can be measured reliably.
133 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
11.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in
the fair value and any dividend or interest income earned on the financial assets are recognised in profit or loss
for the period.
11.2 Impairment of financial instruments
The Group makes accounting treatment on impairment and recognises loss allowance for expected credit losses
("ECLs") on financial assets measured at amortised cost and lease receivables.The Group makes a loss allowance against amount of lifetime ECL of all accounts receivable arising from
transactions adopting the Revenue Standard as well as lease receivables arising from transactions adopting the
Accounting Standards for Business Enterprises No. 21- Leases.For other financial instruments (other than purchased or originated credit-impaired financial assets) the Group
assesses the changes of credit risk since initial recognition of relevant financial instruments at each balance sheet
date. If the credit risk has increased significantly since initial recognition of the financial instruments the Group
recognises the loss allowance at an amount equivalent to lifetime ECL; if the credit risk has not increased
significantly since initial recognition of the financial instruments the Group recognises the loss allowance at an
amount equivalent to 12-month ECL. The increase or reversal of credit loss allowance for financial assets other
than those classified as at FVTOCI is recognised as an impairment loss or gain and included in profit or loss for
the period. For financial assets classified as at FVTOCI the credit loss allowance is recognised in other
comprehensive income and the impairment loss or gain is included in profit or loss for the period without reducing
the carrying amount of the financial assets in the balance sheet.Where the Group has measured the loss allowance at an amount equivalent to lifetime ECL of a financial
instrument in prior accounting period but the financial instrument no longer satisfies the criteria of significant
increase in credit risk since initial recognition at the current balance sheet date the Group recognises the loss
allowance of the financial instrument at an amount equivalent to 12-month ECL at the current balance sheet date
with any resulting reversal of loss allowance recognised as impairment gains in profit or loss for the period.
11.2.1 Significant increase in credit risk
In assessing whether the credit risk has increased significantly since initial recognition the Group 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 with available reasonable and supportable
forward-looking information.
134 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase in credit risk - continued
The following factors are taken into account when assessing whether credit risk has increased significantly:
(1) Significant changes in internal price indicators as a result of a change in credit risk;
(2) An actual or expected significant change in the financial instrument's external credit rating;
(3) An actual or expected decrease in the internal credit rating for the debtor;
(4) Adverse changes in business financial or economic conditions that are expected to cause a significant
decrease in the debtor's ability to meet its debt obligations;
(5) An actual or expected significant change in the operating results of the debtor;
(6) Significant adverse changes in regulatory economic or technological environment of the debtor;
(7) Significant change in the debtor's economic motives to repay within the time limit specified in contract;
(8) Significant changes in expected performance and repayment of the debtor;
(9) Changes in the Group's credit management approach in relation to the financial instrument;
No matter whether credit risk has increased significantly or not subsequent to aforementioned assessment the
Group considers credit risk of financial instruments has increased significantly when contractual payments of
financial instruments past due over 30 days (inclusive).At the balance sheet date if the Group determines that a financial instrument has only lower credit risk the Group
assumes that the credit risk of the financial instrument has not increased significantly since initial recognition.The financial instrument is deemed as having lower credit risk if (i) it has a low risk of default; (ii) the borrower
has a strong capacity to meet its contractual cash flow obligations in the near term; and (iii) adverse changes in
economic and business conditions in the longer term may but will not necessarily reduce the ability of the
borrower to fulfil its contractual cash obligations.
11.2.2 Credit-impaired financial assets
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of that financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable information:
(1) Significant financial difficulty of the issuer or debtor;
(2) Breach of contract by the debtor such as a default or delinquency in interest or principal payments;
(3) The creditor(s) of the debtor for economic or contractual reasons relating to the debtor's financial difficulty
having granted to the debtor a concession(s) that the creditor(s) would not otherwise consider;
(4) It is probable that the debtor will enter bankruptcy or other financial reorganisations;
(5) Purchase or origination of a financial asset at a significant discount that reflects the fact of credit loss.
Irrespective of the outcome of the above assessment the Group presumes that an event of default on the financial
instrument has occurred if the contractual payment of the financial instrument has been more than 90 days
(inclusive) past due.
135 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.3 Determination of ECL
The Group determines the ECL of relevant financial instruments using the following methods:
* For financial assets and lease receivables the credit loss represents the present value of the difference
between the contractual cash flows receivable by the Group and the cash flows expected to be received by
the Group;
* For financial assets that are not purchased or originated credit-impaired financial assets but have become
credit-impaired at the balance sheet date the credit loss is the difference between the gross carrying amount
of the financial assets and the present value of expected future cash flows discounted at original effective
interest rate.The Group's measurement of ECL of financial instruments reflects factors including unbiased probability
weighted average amount recognised by assessing a series of possible results time value of money reasonable
and supportable information related to historical events current condition and forecast of future economic position
that is available without undue cost or effort at the balance sheet date.
11.2.4 Write-down of financial assets
The Group shall directly reduce the gross carrying amount of a financial asset when the Group has no reasonable
expectations of recovering a financial asset in its entirety or a portion thereof. A write-off constitutes a
derecognition event.
11.3 Transfer of financial assets
The Group derecognises a financial asset if one of the following conditions is satisfied: (1) the contractual rights
to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially
all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the
financial asset has been transferred the Group neither transfers nor retains substantially all the risks and rewards
of ownership of the financial asset but has not retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset
and it retains control of the financial asset it recognises the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognises an associated liability. Relevant liabilities are
measured using the following methods:
* For transferred financial assets carried at amortised cost the carrying amount of relevant liabilities is the
carrying amount of financial assets transferred with continuing involvement less amortised cost of the
Group's retained rights (if the Group retains relevant rights upon transfer of financial assets) with addition
of amortised cost of obligations assumed by the Group (if the Group assumes relevant obligations upon
transfer of financial assets). Relevant liabilities are not designated as financial liabilities at FVTPL.* For transferred financial assets carried at fair value the carrying amount of relevant financial liabilities is
the carrying amount of financial assets transferred with continuing involvement less fair value of the
Group's retained rights (if the Group retains relevant rights upon transfer of financial assets) with addition
of fair value of obligations assumed by the Group (if the Group assumes relevant obligations upon transfer
of financial assets). Accordingly the fair value of relevant rights and obligations shall be measured on an
individual basis.
136 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets - continued
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria the difference between (1)
the carrying amount of the financial asset transferred at the derecognition date; and (2) the sum of the
consideration received from the transfer of financial assets and any cumulative gain or loss allocated to the part
derecognised which has been previously recognised in other comprehensive income is recognised in profit or
loss. If the financial assets transferred by the Group are designated as equity instrument investments at fair value
through other comprehensive income that are not held for trading the cumulative gains or losses previously
recognised in other comprehensive income are transferred out and included in retained earnings.If a part of the transferred financial asset qualifies for derecognition the overall carrying amount of the financial
asset prior to transfer is allocated between the part that continues to be recognised and the part that is derecognised
based on the respective fair value of those parts at the date of transfer. The difference between (1) the carrying
amount allocated to the part derecognised on the date of derecognition; and (2) the sum of the consideration
received for the part derecognised and any cumulative gain or loss allocated to the part derecognised which has
been previously recognised in other comprehensive income is recognised in profit or loss. Where the transferred
assets are non-held-for-trading equity instrument investments designated as at FVTOCI cumulative gains or
losses previously recognised in other comprehensive income are transferred out and included in retained earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the Group continues
to recognise the transferred financial asset in its entirety and includes the consideration received in liability.
11.4 Classification of financial liabilities and equity instruments
Financial instruments issued by the Group or their components are classified into financial liabilities or equity
instruments on the basis of not only the legal form but also the contractual terms and their economic substance
together with the definition of financial liability and equity instrument.
11.4.1 Classification recognition and measurement of financial liabilities
On initial recognition financial liabilities are classified into financial liabilities at fair value through profit or loss
and other financial liabilities.
11.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL include held-for-trading financial liabilities (including derivative financial
liabilities) and financial liabilities designated as at FVTPL. Except for derivative financial liabilities which are
presented separately financial liabilities at FVTPL are presented as held-for-trading financial liabilities.A financial liability is classified as held-for-trading if any of the following criteria is satisfied:
* It has been incurred principally for the purpose of repurchasing it in the near term.* On initial recognition it is part of a portfolio of identifiable financial instruments that the Group manages
together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking.* It is a derivative that is neither a financial guarantee contract nor designated as an effective hedging
instrument.
137 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification recognition and measurement of financial liabilities - continued
A financial liability may be designated as at FVTPL upon initial recognition if: (1) such designation eliminates
or significantly reduces accounting mismatch; (2) the Group makes management and performance evaluation on
a fair value basis for a portfolio of financial liabilities or a portfolio of financial assets and financial liabilities in
accordance with the Group's formally documented risk management or investment strategy and reports to key
management personnel on that basis; (3) the qualified hybrid contract that contains embedded derivatives.Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses arising from
changes in the fair value and any dividend or interest expenses paid on the financial liabilities are recognised in
profit or loss for the period.For a financial liability designated as at FVTPL the amount of changes in the fair value of the financial liability
that are attributable to changes in the credit risk of that liability shall be presented in other comprehensive income
while other changes in fair values are included in profit or loss for the current period. Upon the derecognition of
such financial liability the accumulated amount of changes in fair value that are attributable to changes in the
credit risk of that liability which was recognised in other comprehensive income is transferred to retained
earnings. Any dividend or interest expense on the financial liabilities is recognised in profit or loss. If the
accounting treatment for the impact of the change in credit risk of such financial liability in the above ways would
create or enlarge an accounting mismatch in profit or loss the Group shall present all gains or losses on that
liability (including the effects of changes in the credit risk of that liability) in profit or loss for the period.
11.4.1.2 Other financial liabilities
Except for financial liabilities arising from transfer of financial assets that do not meet the derecognition criteria
or those arising from continuing involvement in the transferred financial assets other financial liabilities are
subsequently measured at amortised cost with gain or loss arising from derecognition or amortisation recognised
in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not result in
derecognition of a financial liability subsequently measured at amortised cost but the changes in contractual cash
flows the Group will recalculate the carrying amount of the financial liability with relevant gain or loss
recognised in profit or loss. The Group will determine the carrying amount of the financial liability based on the
present value of renegotiated or modified contractual cash flows discounted at the original effective interest rate
of the financial liability. For all costs or expenses arising from modification or renegotiation of the contract the
Group will adjust the modified carrying amount of the financial liability and make amortisation during the
remaining term of the modified financial liability.
11.4.2 Derecognition of financial liabilities
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of
it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the
original financial liability with a new financial liability with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.When the Group derecognises a financial liability or a part of it it recognises the difference between the carrying
amount of the financial liability (or part of the financial liability) derecognised and the consideration paid
(including any non-cash assets transferred or new financial liabilities assumed) in profit or loss for the period.
138 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting
all of its liabilities. Equity instruments issued (including refinanced) repurchased sold and cancelled by the
Group are recognised as changes of equity. Change of fair value of equity instruments is not recognised by the
Group. Transaction costs related to equity transactions are deducted from equity.The Group treats allocations to equity instrument holders as profit distribution and the distributed dividends do
not affect the total amount of shareholders' equity.
11.5 Derivatives and embedded derivatives
Derivatives include forward exchange contracts resale option and early redemption option for convertible bonds
etc. Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and
are subsequently re-measured at fair value.For hybrid contract constituted by embedded derivatives and host contract if the host contract is a financial asset
the embedded derivative is not separated from the hybrid contract and the hybrid contract shall be taken as a
whole to apply to the accounting standards for the classification of financial assets.If the host contract included in the hybrid contract is not a financial asset and satisfies all the following criteria
the embedded derivative shall be separated from the hybrid contract by the Group and treated as a stand-alone
derivative.
(1) The economic characteristics and risks of the embedded derivative are not closely related to those of the
host contract.
(2) A separate instrument with the same terms as the embedded derivative would meet the definition of a
derivative.
(3) The hybrid contract is not measured at FVTPL.
For the embedded derivative separated from the host contracts the Group accounts for the host contracts in the
hybrid contracts with applicable accounting standards. When the embedded derivatives whose fair value cannot
be measured reliably by the Group according to the terms and conditions of the embedded derivatives the fair
value of such derivatives are measured at the difference between the fair value of the hybrid contracts and the fair
value of the host contracts. By adopting the above method if the embedded derivative cannot be measured on a
stand-alone basis at the time when it is acquired or at subsequent balance sheet dates the hybrid instrument is
designated as financial instruments at FVTPL as a whole.
11.6 Offsetting financial assets and financial liabilities
When the Group has a legal right that is currently enforceable to set off the recognised financial assets and
financial liabilities and intends either to settle on a net basis or to realise the financial assets and settle the
financial liabilities simultaneously the financial assets and financial liabilities are offset with the net amount
presented in the balance sheet. Except for the above circumstances financial assets and financial liabilities shall
be presented separately in the balance sheet without offsetting.
139 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.7 Compound instruments
Convertible bonds issued by the Group that contain both the liability the conversion option the resale option and
early redemption option are classified separately into respective items on initial recognition. Conversion option
that is settled by the exchange of a fixed amount of cash or another financial asset for a fixed number of the
Group's own equity instruments is an equity instrument.At the date of issue the liability resale option derivatives and early redemption option derivatives are initially
measured at fair value. The difference between the gross proceeds of the issue of the convertible bonds and the
fair value assigned to the liability resale option derivatives and early redemption option derivatives representing
the conversion option for the holder to convert the bonds into equity instrument is included in other equity
instruments.In subsequent periods the liability component of the convertible bonds is carried at amortised cost using the
effective interest method. The resale option derivatives and early redemption option derivatives are measured at
fair value with changes in fair value recognised in profit or loss. The conversion option classified as equity
instruments remains in equity instruments. No gain or loss is recognised in profit or loss upon conversion or
expiration of the option.Transaction costs incurred for the issue of the convertible bonds are allocated to the liability equity instruments
resale option derivative components and early redemption option derivative components in proportion to their
respective fair values. Transaction costs relating to the resale option derivative components and early redemption
option are charged to profit or loss. Transaction costs relating to the liability component are included in the
carrying amount of the liability component and amortised over the period of the convertible loan notes using the
effective interest method. Transaction costs relating to the equity instruments component are charged directly to
equity instruments.
12. Notes receivable
12.1 Categories of portfolios for which loss allowance is assessed on a portfolio basis according to credit risk
characteristics and the basis for determination
The Group believes that the credit risk of the bank acceptances held by the Group was insignificant due to the
high credit rating of the accepting banks. Therefore no allowances for credit loss were made.
13. Accounts receivable
13.1 Categories of portfolios for which bad debt allowance is assessed on a portfolio basis according to credit risk
characteristics and the basis for determination
The Group classifies accounts receivable into different portfolios based on common risk characteristics. Common
credit risk characteristics include the aging of accounts receivable.
13.2 Aging calculation method for portfolio of credit risk characteristics recognised based on aging
The Group uses the aging of accounts receivable as a credit risk characteristic to determine its credit loss using
an impairment matrix. The aging is calculated from the date of obtaining the right to collect the contractual
payment.
13.3 Judgement criteria for loss allowance assessed on an individual basis
The Group assesses the credit risk of the accounts receivable from the debtor with significant financial difficulties
on an individual basis based on the risk assessment and judgement of the management.
140 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Other receivables
14.1 Determination method of and accounting treatment for ECLs of other receivables
The Group determines credit losses on other receivables on an individual asset basis.
15. Inventories
15.1 Categories of inventories valuation method of inventories upon delivery inventory count system and
amortisation method for reusable materials
15.1.1 Categories of inventories
The Group's inventories mainly include raw materials work in progress finished goods reusable materials etc.Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
15.1.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
15.1.3 Inventory count system
The perpetual inventory system is maintained for stock system.
15.1.4 Amortisation method for reusable materials
Reusable materials are amortised using the multiple-stage amortisation method.
15.2 Recognition criteria and provision methods for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realisable value. If the net realisable
value is below the cost of inventories provision for decline in value of inventories is made.Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion the estimated costs necessary to make the sale and relevant taxes. Net realisable value is determined
on the basis of clear evidence obtained and takes into consideration the purposes of holding inventories and effect
of events subsequent to the balance sheet date.After the provision for decline in value of inventories is made if the circumstances that previously caused
inventories to be written down below cost no longer exist so that the net realisable value of inventories is higher
than their carrying amount the original provision for decline in value is reversed and the reversal is included in
profit or loss for the period.The Group makes provision for decline in value of inventories on an individual basis (differentiated by product
and material model) please refer to Note (V) 7 for the basis of determining the net realisable value of each type
of inventories.
141 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Held-for-sale non-current assets and disposal groups
16.1 Determination basis and presentation of discontinued operations
A discontinued operation is a component of an entity that can be clearly distinguished and satisfies one of the
following conditions and such component has been disposed of or is classified as held for sale:
- Such component represents a separate major line of business or geographical area of operations;
- Such component is part of the separate major line of business or geographical area of operations to be disposed
of based on the associated plan;
- Such component is a subsidiary acquired exclusively for the purpose of resale.The profit or loss from discontinued operations are listed separately from the profit or loss from continued
operations in the income statement and the operating profit or loss such as impairment loss and reversal amount
from discontinued operations and disposal profit or loss are presented as profit or loss from discontinued
operations. For profit or loss from discontinued operations presented for the current period the Group restated
the information originally presented as profit or loss from continued operations as the profit or loss from
discontinued operations in comparable accounting periods in the financial statements for the period.
17. Long-term equity investments
17.1 Determination criteria of joint control and significant influence
Control is the power over the investee exposures or rights to variable returns from its involvement with the
investee and the ability to use its power over the investee to affect the amount of the investor's returns. Joint
control is the contractually agreed sharing of control over an economic activity and exists only when the strategic
financial and operating policy decisions relating to the activity require the unanimous consent of the parties
sharing control. Significant influence is the power to participate in the financial and operating policy decisions of
the investee but is not control or joint control over those policies. When determining whether an investing
enterprise is able to exercise control or significant influence over an investee the effect of potential voting rights
of the investee (for example warrants and convertible debts) held by the investing enterprises or other parties that
are currently exercisable or convertible shall be considered.
17.2 Determination of initial investment cost
For a long-term equity investment acquired through business combination not involving enterprises under
common control the initial investment cost of the long-term equity investment is the cost of acquisition at the
date of combination.The intermediary expenses incurred by the combining party or acquirer in respect of auditing legal services
valuation and consultancy services etc. and other associated administrative expenses attributable to the business
combination are recognised in profit or loss when they are incurred.Long-term equity investment acquired otherwise than through a business combination is initially measured at its
cost.
17.3 Subsequent measurement and recognition of profit or loss
17.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate
financial statements. A subsidiary is an investee that is controlled by the Group.Under the cost method a long-term equity investment is measured at initial investment cost. When additional
investment is made or the investment is recouped the cost of the long-term equity investment is adjusted
accordingly. Investment income is recognised in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee.
142 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
17. Long-term equity investments - continued
17.3 Subsequent measurement and recognition of profit or loss - continued
17.3.2 Long-term equity investments accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an
entity over which the Group has significant influence; a joint venture is a joint arrangement whereby the Group
has rights to the net assets of the arrangement.Under the equity method where the initial investment cost of a long-term equity investment exceeds the Group's
share of the fair value of the investee's identifiable net assets at the time of acquisition no adjustment is made to
the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the
investee's identifiable net assets at the time of acquisition the difference is recognised in profit or loss for the
period and the cost of the long-term equity investment is adjusted accordingly.Under the equity method the Group recognises its share of the net profit or loss and other comprehensive income
of the investee for the period as investment income and other comprehensive income for the period. Meanwhile
carrying amount of long-term equity investment is adjusted: the carrying amount of long-term equity investment
is decreased in accordance with its share of the investee's declared profit or cash dividends; Other changes in
owners' equity of the investee other than net profit or loss and other comprehensive income are correspondingly
adjusted to the carrying amount of the long-term equity investment and recognised in the capital reserve. The
Group recognises its share of the investee's net profit or loss based on the fair value of the investee's individual
identifiable assets etc. at the acquisition date after making appropriate adjustments. When the investors'
accounting policies and accounting period are inconsistent with those of the Company the Company recognises
investment income and other comprehensive income after making appropriate adjustments to conform to the
Company's accounting policies and accounting period. However unrealised gains or losses resulting from the
Group's transactions with its associates and joint ventures which do not constitute a business are eliminated
based on the proportion attributable to the Group and then investment gains or losses or is recognised. However
unrealised losses are not eliminated if they result from the Group's transactions with its associates and joint
ventures which represent impairment losses on the transferred assets.The Group discontinues recognising its share of net loss of the investee after the carrying amount of the long-
term equity investment together with any long-term interests that in substance form part of its net investment in
the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee
a provision is recognised according to the expected obligation and recorded as investment loss for the period.Where net profits are subsequently made by the investee the Group resumes recognising its share of those profits
only after its share of the profits exceeds the share of losses previously not recognised.
17.4 Disposal of long-term equity investments
On disposal of a long-term equity investment the difference between the proceeds actually received and
receivable and the carrying amount is recognised in profit or loss for the period.
18. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both including buildings leased
out.An investment property is measured initially at cost. Subsequent expenditures incurred for such investment
property are included in the cost of the investment property if it is probable that economic benefits associated
with an investment property will flow to the Group and the subsequent expenditures can be measured reliably.Other subsequent expenditures are recognised in profit or loss for the period in which they are incurred.
143 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Investment properties - continued
The Group uses the cost model for subsequent measurement of investment property and adopts the straight-line
method for depreciation over its useful life. The depreciation method depreciation period estimated residual
value rate and annual depreciation rate of each category of investment properties are as follows:
Depreciation Annual
Residual value
Category Depreciation method period (years) depreciation rate
rate (%)
(%)
Buildings Straight-line method 35 years - 2.86
When an investment property is sold or retired from its use and economic benefits are not expected to be
recovered from disposal the investment property should be de-recognised.When an investment property is sold transferred retired or damaged the Group recognises the amount of any
proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
19. Fixed assets
19.1 Recognition criteria
Fixed assets are tangible assets that are held for use in the production or supply of goods or services for rental to
others or for administrative purposes and have useful lives of more than one accounting year. A fixed asset is
recognised only when it is probable that economic benefits associated with the asset will flow to the Group and
the cost of the asset can be measured reliably. Fixed assets are initially measured at cost.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it is probable that
economic benefits associated with the asset will flow to the Group and the cost can be measured reliably.Meanwhile the carrying amount of the replaced part is derecognised. Other subsequent expenditures are
recognised in profit or loss for the period in which they are incurred.
19.2 Depreciation method
A fixed asset other than land operated overseas is depreciated over its useful life using the straight-line method
since the month subsequent to the one in which it is ready for intended use.Land operated overseas is not depreciated. The depreciation method depreciation period estimated residual value
rate and annual depreciation rate of other categories of fixed assets are as follows:
Depreciation period Annual depreciation
Category Residual value rate (%)
(years) rate (%)
Buildings 12-35 years - 2.86-8.33
Machinery and equipment 3-8 years - 12.50-33.33
Transportation vehicles 2-6 years - 16.67-50.00
Electronic equipment
3-10 years - 10.00-33.33
fixtures and furniture
Renovation costs 3-10 years - 10.00-33.33
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from
disposal of the asset after deducting the estimated costs of disposal if the asset was already of the age and in the
condition expected at the end of its useful life.
144 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
19. Fixed assets - continued
19.3 Other descriptions
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or
disposal the fixed asset is derecognised. When a fixed asset is sold transferred retired or damaged the amount
of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognised in profit or loss
for the period.The Group reviews the useful life and the estimated net residual value of a fixed asset and the depreciation method
applied at least once at each financial year-end and accounts for any change as a change in an accounting estimate.
20. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures
during the construction period borrowing costs capitalised before it is ready for intended use and other relevant
costs. Construction in progress is not depreciated.Construction in progress is transferred to a fixed asset when it is ready for intended use. The criteria and time
points for the transfer of various types of construction in progress to fixed assets are as follows:
Time point of transfer to
Category Criteria of transfer to fixed assets
fixed assets
Construction work is completed meets
When acceptance criteria are
Buildings intended design requirements and satisfies
met
acceptance quality criteria
(1) Relevant equipment and other
When the asset utilisation
Machinery and equipment supporting facilities have been
notice is obtained or when
electronic equipment fixtures installed; or
acceptance criteria are met
and furniture transportation (2) The equipment can maintain normal
When acceptance criteria are
vehicles etc. to be installed and stable operation for a period of time
met
after commissioning.
21. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying asset are
capitalised when expenditures for such asset and borrowing costs are incurred and activities relating to the
acquisition construction or production of the asset that are necessary to prepare the asset for its intended use or
sale have commenced. Capitalisation of borrowing costs ceases when the qualifying asset being acquired
constructed or produced becomes ready for its intended use or sale. Other borrowing costs are recognised as an
expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be capitalised is the
actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing
the borrowed funds before being used on the asset or any investment income on the temporary investment of those
funds. Where funds are borrowed under general-purpose borrowings the Group determines the amount of interest
to be capitalised on such borrowings by applying a capitalisation rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalisation rate is
the weighted average of the interest rates applicable to the general-purpose borrowings.
145 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Intangible assets
22.1 Useful life and its determination basis estimation amortisation method or review procedures
Intangible assets include software patents trademarks land use rights and customer relations etc.An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for
use its original cost less any accumulated impairment losses is amortised over its estimated useful life using the
straight-line method. An intangible asset with an indefinite useful life is not amortised.The amortisation method useful life and residual value rate of each class of intangible assets are as follows:
Category Amortisation method Useful life (Years) Residual value rate (%)
Land use rights Straight-line method 50 years -
Software Straight-line method 3-10 years -
Patents Straight-line method 3-20 years -
Trademark rights Straight-line method 10 years -
Customer relations Straight-line method 16 years -
For an intangible asset with a finite useful life the Group reviews the useful life and amortisation method at the
end of the year and makes adjustments when necessary.
22.2 Scope and related accounting treatment of research and development expenditure
All of the Group's research and development expenditures do not meet the conditions for capitalisation and are
charged to profit or loss for the period when incurred.Attribution scope of research and development expenditure includes the salaries wages and welfare expenses of
the personnel directly engaged in research and development activities material expenses directly consumed in
research and development activities depreciation expenses of apparatus and equipment relevant to research and
development activities rental and maintenance expenses of research and development sites travel transportation
and communication expenses necessary for research and experimental development etc.
23. Impairment of long-term assets
The Group reviews the long-term equity investments investment properties measured using the cost model fixed
assets construction in progress right-of-use assets and intangible assets with a finite useful life at each balance
sheet date to determine whether there is any indication that they have suffered an impairment loss. If an
impairment indication exists the recoverable amount is estimated. Intangible assets with an indefinite useful life
and not yet available for use are tested for impairment annually irrespective of whether there is any indication
that the assets may be impaired.Recoverable amount is estimated on an individual asset basis. If it is not practical to estimate the recoverable
amount of an individual asset the recoverable amount of the asset group to which the asset belongs will be
estimated. The recoverable amount of an asset or asset group is the higher of its fair value less costs of disposal
and the present value of the future cash flows expected to be derived from the asset or asset group.If such recoverable amount is less than its carrying amount a provision for impairment losses in respect of the
deficit is recognised in profit or loss for the period.
146 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
23. Impairment of long-term assets - continued
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment testing goodwill
is considered together with the related assets group(s) i.e. goodwill is reasonably allocated to the related assets
group(s) or each of assets group(s) expected to benefit from the synergies of the combination. An impairment loss
is recognised if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less
than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill
allocated to such assets group or sets of assets groups and then to the other assets of the group on the pro-rata
basis of the carrying amount of each asset (other than goodwill) in the group.Once an impairment loss of the above-mentioned assets is recognised it will not be reversed in any subsequent
period.
24. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortised over the current and
subsequent periods (together with more than one year) including the decoration works of the leased assets etc.Long-term prepaid expenses are amortised using the straight-line method over the expected periods in which
benefits are derived.
25. Contract liabilities
Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for consideration
received or receivable from the customer.
26. Employee benefits
26.1 Accounting treatment of short-term employee benefits
In an accounting period in which an employee has rendered services to the Group the Group recognises the short-
term employee benefits for that service as a liability and the related expenditures are charged to profit or loss for
the period or in costs of relevant assets. Employee welfare incurred by the Group is recognised in profit or loss
for the period or the costs of relevant assets based on the actual amount when incurred. Non-monetary employee
welfare is measured at fair value.Payment made by the Group of social security contributions for employees such as premiums or contributions on
medical insurance work injury insurance and maternity insurance etc. and payments of housing funds as well
as union running costs and employee education costs provided in accordance with relevant requirements are
calculated according to prescribed bases and percentages in determining the amount of employee benefits and
recognised as relevant liabilities with a corresponding charge to the profit or loss for the period or the costs of
relevant assets in the accounting period in which employees provide services.
26.2 Accounting treatment of post-employment benefits
Post-employment benefits are classified into defined contribution plan and defined benefit plan.In an accounting period in which an employee has rendered service to the Group the amount payable calculated
in accordance with the defined contribution plan is recognised as a liability by the Group and charged to profit or
loss for the period or included in cost of related assets.
147 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Employee benefits - continued
26.2 Accounting treatment of post-employment benefits - continued
For defined benefit plans the Group assigns the welfare obligation generated from the defined benefit plans to
the period of rendering services using the formula determined by the projected unit credit method and includes it
in the current profit or loss or related asset costs. Employee benefit costs generated from the defined benefit plans
are categorised as follows:
* service cost (including current service cost past service cost as well as gains and losses on settlements);
* net interest of net liabilities or assets of defined benefit plan (including interest income of planned assets
interest expenses of defined benefit plan liabilities and effect of asset ceiling); and
* changes arising from remeasurement of net liabilities or net assets of defined benefit plans.Service costs and net interest of net liabilities or net assets of defined benefit plans are recognised in profit or loss
for the period or costs of related assets. Changes arising from remeasurement of the net defined benefit liability
(asset) (including actuarial gains or losses the return on plan assets excluding amounts included in net interest
on the net defined benefit liability (asset) and any change in the effect of the asset ceiling excluding amounts
included in net interest on the net defined benefit liability (asset)) are recognised in other comprehensive income.Deficit or surplus generated from the present value of the obligation of defined benefit plan less the fair value of
defined benefit plan asset is recognised as a net liability or a net asset of defined benefit plan.
26.3 Accounting treatment of termination benefits
A liability for a termination benefit is recognised in profit or loss for the period at the earlier of when the Group
cannot unilaterally withdraw from the termination plan or the redundancy offer and when the Group recognises
any related restructuring costs or expenses.
27. Provisions
Provisions are recognised when the Group has a present obligation related to a contingency such as product quality
assurance it is probable that an outflow of economic benefits will be required to settle the obligation and the
amount of the obligation can be measured reliably.The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the balance sheet date taking into account factors pertaining to a contingency such as the risks
uncertainties and time value of money. Where the effect of the time value of money is material the amount of the
provision is determined by discounting the related future cash outflows.
28. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments or incurs liabilities for amounts
that are determined based on the price of equity instruments in return for services rendered by employees. The
Group's share-based payments are equity-settled share-based payments.
28.1 Equity-settled share-based payments
Equity-settled share-based payments granted to employees
Equity-settled share-based payments in exchange for services rendered by employees are measured at the fair
value of the equity instruments granted to employees at the grant date. Such an amount is recognised as related
costs or expenses on a straight-line basis over the vesting period based on the best estimate of the number of
equity instruments expected to be exercised with a corresponding increase in capital reserve.
148 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Share-based payments - continued
28.1 Equity-settled share-based payments - continued
At each balance sheet date during the vesting period the Group makes the best estimate according to the
subsequent latest information of changes in the number of employees who are granted options that may be
exercised etc. and revises the number of equity instruments expected to be exercised. The effect of the above
estimate is recognised as related costs or expenses with a corresponding adjustment to capital reserve. When the
employee can choose whether to meet the non-exercisable condition but the condition is not met during the
vesting period the Group treats it as a cancellation of the equity instruments granted.
29. Revenue
29.1 Accounting policies for revenue recognition and measurement disclosed by business types
The Group recognises revenue based on the transaction price allocated to the performance obligation when the
Group satisfies a performance obligation in the contract namely when the customer obtains control over relevant
goods or services. A performance obligation is a commitment that the Group transfers distinct goods or services
to a customer in the contract.The Group assesses a contract at contract inception identifies each individual performance obligation included in
the contract and determines whether the performance obligation is satisfied over time or at a point in time. It is a
performance obligation satisfied over time and the Group recognises revenue over time according to the progress
of performance if one of the following conditions is met: (1) the customer simultaneously receives and consumes
the economic benefits provided by the Group's performance as the Group performs; (2) the customer is able to
control goods under construction as the Group performs; (3) the goods generated from the Group's performance
have irreplaceable utilisation and the Group is entitled to collect payment for performance completed to date
throughout the contract period. Otherwise revenue is recognised at a point in time when the customer obtains
control over the relevant goods or services. The Group's revenue is mainly derived from the sale of goods etc.all of which are performance obligations satisfied at a point in time and revenue is recognised at the point in time
when the customer obtains control of the related goods (or services) and the specific accounting policies are set
out below:
(1) Sales of goods
The Group sells customers consumer electronic products communication products industrial products cloud and
storage products automotive electronic products and medical products. Usually there is only one performance
obligation in the relevant contract or order for selling goods and the consideration of selling goods is recognised
according to the price agreed in the sales contract or order. For domestic sales the Group recognises revenue after
the products are delivered to the carrier designated by the customer or the products are delivered to the agreed
delivery place according to the agreement or contract and received by the customer and the control of goods is
transferred to the customer. For overseas sales the Group recognises revenue after the products are delivered to
the carrier designated by the customer processed with customs clearing procedure for export and loaded on board
the ship delivered to the designated delivery place or picked up by the customer from the warehouse respectively
according to the different international trade terms stipulated in the sales contracts or orders and the control of
goods is transferred to the customer.
149 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Revenue - continued
29.1 Accounting policies for revenue recognition and measurement disclosed by business types - continued
(1) Sales of goods - continued
The Group provides product quality assurance for the goods sold according to legal regulations and contractual
agreements i.e. assuring the customers that the goods sold comply with the established standards. The Group
accounts for the quality warranty liabilities in accordance with the Accounting Standard for Business Enterprises
No. 13 - Contingencies please refer to Note (III) 27 for details.The Group determines whether it is a principal or an agent at the time of the transaction based on whether it owns
the "control" of the goods before the transfer of such goods to the customer. The Group assumes the primary
responsibility for the transfer of goods to customers assumes the inventory risk of the goods before the transfer
has the right to determine the price of the traded goods at its own discretion and assumes the major risks and
rewards associated with the ownership of the traded goods during the sales process therefore the Group is a
principal and the revenue shall be recognised based on the total consideration received or receivable.Where payment is received in advance from customers for the sale of goods the advance payment received shall
be recorded as a liability and recognised as revenue when the relevant performance obligation is satisfied.
(2) Other revenue
Other revenue mainly comes from sales of scrap to customers. Usually there is only one performance obligation
(i.e. delivery of goods) in the relevant contract for sales of products. Relevant revenue is recognised at the time
point when the control of the relevant products is transferred to the customer. The consideration for the sales of
products is determined according to the fixed price agreed in the sales contract.
30. Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at
no consideration. A government grant is recognised only when the Group can comply with the conditions
attaching to the grant and the Group will receive the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount received or
receivable. If a government grant is in the form of a non-monetary asset it is measured at fair value; If the fair
value cannot be reliably determined it is measured at a nominal amount. A government grant measured at a
nominal amount is recognised immediately in profit or loss for the period.
30.1 Determination basis and accounting treatment of government grants related to assets
The Group's government grants such as the technology reform item for ultra-thin communication module deep
intelligent production line are government grants related to assets as they are directly related to the investment
and construction of fixed assets. See Notes (VIII) 1 for details of the Group's government grants related to assets.A government grant related to an asset is recognised as deferred income and included in profit or loss over the
useful life of the related asset with the straight-line method.
150 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Government grants - continued
30.2 Determination basis and accounting treatment of government grants related to income
Government grants other than those related to assets are classified as government grants related to income. See
Notes (VIII) 2 for details of the Group's government grants related to income. The Group classifies government
grants that are difficult to be distinguished as government grants related to income aggregately.For a government grant related to income if the grant is a compensation for related expenses or losses to be
incurred in subsequent periods the grant is recognised as deferred income over the periods in which the related
costs or losses are recognised; If the grant is a compensation for related expenses or losses already incurred the
grant is recognised immediately in profit or loss.A government grant related to the Group's daily activities is recognised in other income based on the nature of
economic activities. A government grant not related to the Group's daily activities is recognised in non-operating
income.For the repayment of a government grant already recognised if there is any related deferred income the
repayment is offset against the carrying amount of the deferred income with any excess recognised in profit or
loss for the period.
31. Deferred tax assets/deferred tax liabilities
Income tax expenses include current income tax and deferred income tax.
31.1 Current income tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods are measured
at the amount expected to be paid (or recovered) according to the requirements of tax laws.
31.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base or
between the nil carrying amount of those items that are not recognised as assets or liabilities and their tax base
that can be determined according to tax laws deferred tax assets and liabilities are recognised using the balance
sheet liability method.Deferred tax is generally recognised for all temporary differences. Deferred tax assets for deductible temporary
differences are recognised to the extent that it is probable that taxable income will be available against which the
deductible temporary differences can be utilised. However for temporary differences associated with the initial
recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business
combination) that affects neither the accounting profit nor taxable income (or deductible losses) and does not give
rise to equal taxable temporary differences and deductible temporary differences at the time of transaction no
deferred tax asset or liability is recognised.For deductible losses and tax credits that can be carried forward deferred tax assets are recognised to the extent
that it is probable that future taxable profits will be available against which the deductible losses and tax credits
can be utilised.Deferred tax liabilities are recognised for taxable temporary differences associated with investments in
subsidiaries and associates and interests in joint ventures except where the Group is able to control the timing of
the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognised to the extent that it is probable that there will be taxable profits
against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
151 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Deferred tax assets/ deferred tax liabilities - continued
31.2 Deferred tax assets and deferred tax liabilities - continued
At the balance sheet date deferred tax assets and liabilities are measured at the tax rates according to tax laws
that are expected to apply in the period in which the asset is realised or the liability is settled.Current and deferred tax expenses or benefits are recognised in profit or loss for the period except when they
arise from transactions or events that are directly recognised in other comprehensive income or in shareholders'
equity in which case they are recognised in other comprehensive income or in shareholders' equity; and when
they arise from business combinations in which case they adjust the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it is no longer
probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to
be utilised. Such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be
available.
31.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realise the
assets and settle the liabilities simultaneously current tax assets and current tax liabilities are offset and presented
on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable
entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to
realise the assets and liabilities simultaneously in each future period in which significant amounts of deferred tax
assets or liabilities are expected to be reversed deferred tax assets and deferred tax liabilities are offset and
presented on a net basis.
32. Leases
A lease is a contract whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time
in return for a consideration.The Group assesses whether a contract is or contains a lease at inception date. Such contract will not be
reassessed unless the terms and conditions of the contract are subsequently changed.
32.1 The Group as lessee
32.1.1 Separating components of a contract
If the contract contains one or more lease and non-lease components the Group will separate the individual lease
and non-lease components and allocate contract consideration according to the relative proportion of the sum of
the stand-alone prices of the lease components and the stand-alone prices of the non-lease components.
32.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets at the commencement date of the lease the Group
recognises a right-of-use assets. The commencement date of the lease is the date on which a lessor makes an
underlying asset available for use by the Group. The Group measures the right-of-use assets at cost. The cost of
the right-of-use assets comprises:
* the amount of the initial measurement of the lease liabilities;
* any lease payments made at or before the commencement date less any lease incentives received.
152 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.2 Right-of-use assets - continued
The Group depreciates right-of-use assets by reference to the relevant depreciation provisions of the Accounting
Standards for Business Enterprises No. 4 - Fixed Assets. The right-of-use assets are depreciated over the
remaining useful lives of the leased assets where the Group is reasonably certain to obtain ownership of the
underlying assets at the end of the lease term. Otherwise right-of-use assets are depreciated over the shorter of
the lease term and the remaining useful lives of the leased assets.The Group applies the Accounting Standards for Business Enterprises - No. 8 Impairment of Assets to determine
whether the right-of-use assets are impaired and perform accounting treatment to identified impairment loss.
32.1.3 Lease liabilities
Except for short-term leases and leases of low-value assets the Group initially measures lease liabilities at the
present value of the outstanding lease payments at the commencement date. In calculating the present value of
the lease payments the Group uses the implicit interest rate of the lease as the discount rate. If it is not possible
to determine the implicit interest rate of the lease the incremental borrowing rate shall be applied.The lease payments are payments to the lessor for the right to use the underlying asset during the lease term made
by the Group including fixed payments and in-substance fixed payments less any lease incentives receivable if
applicable.After the commencement date of the lease the Group calculates interest expenses of lease liabilities for each
period of the lease term based on a fixed periodic rate and recognises such expenses in profit or loss or costs of
related assets.After the commencement date the lease term has changed or there is a change in the assessment of exercise of a
purchase option the Group remeasures the related lease liability by discounting the revised lease payments using
a revised discount rate and adjusts the corresponding right-of-use asset. If the carrying amount of the right-of-use
asset has been reduced to zero but the lease liability still needs to be further reduced the difference is recognised
in the profit or loss for the current period.
32.1.4 Determination basis and accounting treatment of short-term leases and leases of low-value assets treated
under a simplified method as lessee
For short-term leases of machinery and equipment and leases of low-value assets to which the recognition
exemption is applied by the Group right-of-use assets and lease liabilities are not recognised. A short-term lease
refers to a lease that at the commencement date has a lease term of 12 months or less and do not contain a
purchase option. A lease of low value asset refers to a single lease asset when new is no more than USD5000.Lease payments on short-term leases and leases of low-value assets are recognised in profit or loss or the cost of
underlying assets on a straight-line basis over the lease term.
32.1.5 Lease modifications
The Group accounts for a lease modification as a separate lease if:
* the modification increases the scope of the lease by adding the right to use one or more underlying assets;
and
* the consideration for the leases increases by an amount commensurate with the stand-alone price for the
increase in scope which is adjusted based on circumstances of the particular contract.
153 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.5 Lease modifications - continued
If the lease modification is not accounted for as an individual lease on the effective date of the lease modification
the Group reallocates the consideration of the contract after the change re-determines the lease term and
remeasures the lease liabilities at the present value of revised lease payment discounted at revised discount rate.If the lease modification results in a reduction in the lease scope or lease term the carrying amount of the right-
of-use assets will be reduced and the gains or losses relevant to the lease partially of fully terminated will be
included in profit or loss for the period; for other lease modifications resulting in the remeasurement of lease
liabilities the carrying amount of right-of-use assets is adjusted accordingly.
32.2 The Group as lessor
32.2.1 Classification criteria and accounting treatment of leases as the lessor
Leases are classified as finance leases whenever the terms of the leased assets transfer substantially all the risks
and rewards of ownership to the lessee. All other leases are classified as operating leases.
32.2.1.1 The Group as lessor under operating leases
Receipts of lease under operating leases are recognised as rental income on a straight-line basis over the term of
the relevant lease. Initial direct costs related to operating leases incurred by the Group are capitalised when
incurred and are recognised in profit or loss for the period on the same basis as recognition of rental income over
the lease term.
32.2.2 Subleases
As the lessor of a sublease the Group accounts for the original lease contract and the sublease contract as two
separate contracts. The Group classifies the subleases based on the right-of-use assets generating from the original
lease rather than the underlying assets of the original lease.
33. Hedge accounting
33.1. Basis for using hedge accounting and accounting treatment method
Certain financial instruments are used as hedging instruments by the Group for the purpose of managing the risk
exposure arising from specific risk such as exchange rate risk etc. The Group applies hedging accounting for a
hedge that satisfies the prescribed conditions. Hedging activities of the Group include hedges of net investment
in foreign operations.At the inception of hedging the Group officially designated hedging instruments and hedged items and prepared
written documents recording the nature of hedging instruments hedged items hedged risks and hedging
effectiveness evaluation methods (including the analysis of the causes of invalid hedging and methods to
determine the hedging ratio).
154 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
33. Hedge accounting - continued
33.1. Basis for using hedge accounting and accounting treatment method - continued
The Group will discontinue hedge accounting when one of the following conditions occurs:
* the risk management objective is changed so that the hedging relationship no longer meets the risk
management objective.* the hedging instrument expires or is sold terminated or exercised.* There is no longer an economic relationship between the hedged items and the hedging instruments or in
the value changes arising from the economic relationship between the hedged items and the hedging
instruments the impact of credit risk begins to dominate.* The hedging relationship no longer meets other conditions for using the hedge accounting methods.Hedges for net investments in foreign operations
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss
on the hedging instrument relating to the effective portion of the hedge is recognised in other comprehensive
income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.When disposing of all or part of foreign operations the profits or losses of the above hedging instruments included
in other comprehensive income shall be reclassified in the current profits and losses.
33.2 Methods of assessing effectiveness of hedges
The Group continuously evaluates whether the hedging relationship meets the requirements of hedging
effectiveness on and after the inception date of hedging. If the hedging meets the following conditions at the same
time the Group will determine that the hedging relationship meets the requirements for hedging effectiveness:
* An economic relationship exists between the hedged items and the hedging instruments.* Among the value changes caused by the economic relationship between hedged items and hedging
instruments the impact of credit risk does not dominate.* The hedge ratio of the hedging relationship will be equal to the ratio of the actual number of the Group's
hedged items to the actual number of hedging instruments.If the hedging relationship no longer meets the requirement of hedging effectiveness due to the hedge ratio but
the risk management objectives of the hedging relationship have not changed the Group will rebalance the
hedging relationship. The number of hedged items or hedging instruments in the hedging relationship is adjusted
so that the hedge ratio meets the requirements of hedging effectiveness again.
34. Accounting treatment in relation to the repurchase of equity instruments
The consideration and transaction costs paid to repurchase shares are deducted from equity. No gain or loss is
recognised in profit or loss on the repurchase sale or cancellation of the Company's shares.
35. Critical judgements in applying accounting policies and key assumptions and uncertainties in accounting
estimates
In the application of the Group's accounting policies which are described in Note (III) the Group is required to
make judgments estimates and assumptions about the carrying amounts of items in the financial statements that
cannot be measured accurately due to the internal uncertainty of the operating activities. These judgments
estimates and assumptions are based on historical experiences of the Group's management as well as other factors
that are considered to be relevant. Actual results may differ from these estimates.
155 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
35. Critical judgements in applying accounting policies and key assumptions and uncertainties in accounting
estimates - continued
The aforementioned judgements estimates and assumptions are reviewed regularly on a going concern basis. The
effect of a change in accounting estimate is recognised in the period of the change if the change affects that period
only; or recognised in the period of the change and future periods if the change affects both.- Key assumptions and uncertainties in accounting estimates
At the balance sheet date the key assumptions and uncertainties in accounting estimates that are probable to cause
significant adjustments to the carrying amounts of assets and liabilities in future periods include:
Impairment of accounts receivable
The management considers reasonable and supportable information and makes significant accounting estimates
in assessing the ECL on accounts receivable. The Group estimates the ECL rate of accounts receivable based on
factors such as historical bad debt loss records customer defaults or delayed payments and the aging of accounts
receivable as well as forward-looking information. When considering forward-looking information the Group
takes into account the impact of macroeconomic conditions industry conditions etc. The amount of ECL will
change according to the Group's estimates and judgments. As at 31 December 2025 the balance of the Group's
allowance for credit losses of accounts receivable was RMB65189016.79 (31 December 2024:
RMB56773852.18).Inventories
The Group makes provision for the decline in the value of inventory according to the difference between the
inventory costs beyond its net realisable value. The recognition of the net realisable value of inventories requires
the estimation of the expected sales in the future and the estimation of the costs expenses and taxes to be incurred.The differences (if any) between the re-estimated value and the current estimate will impact the carrying amount
of the inventories over the period in which the estimate is changed. As at 31 December 2025 the balance of the
Group's provision for the decline in the value of inventories was RMB333628227.41 (31 December 2024:
RMB296531721.64).Deferred tax assets
The recognition of deferred tax assets requires estimates of taxable income and applicable tax rates for each future
year. Deferred tax assets are recognised to the extent that it is probable that taxable income will be available
against which the deductible temporary differences can be utilised. The timing of the reversal of temporary
differences and changes in future tax rates would affect income tax expenses (benefits) and the amount of deferred
tax recognised. Changes in the Group's estimates of the timing of reversal of temporary differences and the tax
rates as well as the judgment on whether it is probable that sufficient taxable income will be timely obtained may
result in a material adjustment to deferred income taxes. As at 31 December 2025 the Group had recognised the
deferred tax assets of RMB526681778.16 (31 December 2024: RMB515829271.42).Impairment of goodwill
The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of
the future recoverable amount from the asset groups or set of asset groups to which the goodwill is allocated.Estimating the future recoverable amount requires the Group to make an estimate of the expected future cash
flows from the asset groups or set of asset groups and also choose a suitable discount rate in order to calculate the
present value of those cash flows. When considering the present value of future cash flow changes in key
assumptions such as revenue growth rate of the projection period long-term growth rate profit margin and
discount rate adopted by the Group may have significant impacts on the present value of the future cash flow used
in impairment testing.
156 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
35. Critical judgements in applying accounting policies and key assumptions and uncertainties in accounting
estimates - continued
Useful lives and estimated net residual values of fixed assets
As disclosed in Note (III) 19 the Group reviews the useful life and estimated net residual value of a fixed asset
at least once at each financial year-end. Both scientific and technological innovation and intense competition
within the industry significantly impact the estimation of useful life. The Group's management did not find
anything that might shorten or extend the useful life of fixed assets of the Group or require changing the estimated
net residual value.
36. Changes in significant accounting policies and accounting estimates
36.1 Changes in significant accounting policies
During the reporting period the Group has no changes in significant accounting policies.
36.2 Changes in significant accounting estimates
During the reporting period the Group has no changes in significant accounting estimates.(IV) TAXATION
1. Major categories of taxes and tax rates
Category of taxes Tax basis Tax rate
VAT payable is calculated and paid based on the balance of output
tax less deductible input tax in the current period of taxable income
Value-added tax 13% 9% 6%
such as product sales income service income interest income and
("VAT")-Chinese 5% and 3%
lease income. The Company and its domestic subsidiaries are
(Note 1)
general VAT taxpayers
Non-resident enterprises obtain commission income within China 6%
VAT payable is the balance of output tax less deductible input tax
VAT-French 20%
of taxable income such as product sales income service income
VAT payable is the balance of output tax less deductible input tax
VAT-German 19%
of taxable income such as product sales income service income
VAT payable is the balance of output tax less deductible input tax
VAT-Tunisian 19%
of taxable income such as product sales income service income
Taxable income Note 2
Enterprise income tax Non-resident enterprises obtain investment income and property
10%
transfer income from within China
Residual value after deducting 30% from the original value of the
1.2%
Property tax property at one time
Rental income 12%
China urban
maintenance and Turnover tax actually paid 7% and 5%
construction tax
China education
Turnover tax actually paid 3%
surcharge
China local education
Turnover tax actually paid 2%
surcharge
157 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IV) TAXATION - continued
1. Major categories of taxes and tax rates - continued
Note 1: The Company and its subsidiaries in China shall apply the measures for the administration of VAT
exemption credit and tax refund for the export of self-produced goods. The export tax refund rate is
different according to the scope of export goods.Note 2: Description of enterprise income tax rate of main companies of the Group:
Name of the taxpayer Income tax rate
Universal Scientific Industrial (Shanghai) Co. Ltd. 15%(Note 1)
USI Electronics (Shenzhen) Co. Ltd. 25%
Universal Global Technology (Kunshan) Co. Ltd. 15%(Note 2)
Universal Global Technology (Shanghai) Co. Ltd. 15%(Note 3)
Universal Global Electronics (Shanghai) Co. Ltd. 25%
Universal Global Technology (Huizhou) Co. Ltd. 15%(Note 4)
Universal Global Technology Co. Limited 16.5% (Note 5)
Universal Global Industrial Co. Ltd. 16.5% (Note 5)
Universal Global Electronics Co. Ltd. 16.5% (Note 5)
Universal Global Scientific Industrial Co. Ltd. Note 6
Universal Scientific Industrial Co. Ltd. Note 6
USI Japan Co. Ltd. 23.2% (Note 7)
USI America. Inc. 21% (Note 8)
Universal Scientific Industrial De México S.A. De C.V. 30% (Note 9)
Universal Scientific Industrial (France) 25%(Note 10)
Universal Scientific Industrial Vietnam Company Limited 15%(Note 11)
Asteelflash Suzhou Co. Ltd. 15%(Note 12)
FINANCIèRE AFG S.A.S. ("FAFG") 25%(Note 13)
USI Science and Technology (Shenzhen) Co. Ltd. 20%(Note 14)
Hirschmann Car Communication Holding S.a.r.l. ("Hirschmann") 24.94%(Note 15)
Universal Optoeletronics Co. Ltd. 25%
Note 1: The Company was approved as a high-tech enterprise by Science and Technology Commission of
Shanghai Municipality Shanghai Municipal Finance Bureau Shanghai Municipal Office of the State
Administration of Taxation and Shanghai Municipal Bureau of Local Taxation in 2023 and obtained the
High-tech Enterprise Certificate (Certificate No. is GR202331006257) which was valid for 3 years. The
Company applies the enterprise income tax rate of 15% from 2023 to 2025.Note 2: Universal Global Technology (Kunshan) Co. Ltd. was approved as a high-tech enterprise by Jiangsu
Provincial Department of Science and Technology Department of Finance of Jiangsu Province Jiangsu
Provincial Office of State Administration of Taxation and Jiangsu Provincial Bureau Local Taxation in
2025 and obtained the High-tech Enterprise Certificate (Certificate No.: GR202532015654) which was
valid for 3 years. Universal Global Technology (Kunshan) Co. Ltd. applies the enterprise income tax
rate of 15% from 2025 to 2028.Note 3: Universal Global Technology (Shanghai) Co. Ltd. was approved as a high-tech enterprise by Science
and Technology Commission of Shanghai Municipality Shanghai Municipal Finance Bureau Shanghai
Municipal Office of the State Administration of Taxation and Shanghai Municipal Bureau of Local
Taxation in 2025 and obtained the High-tech Enterprise Certificate (Certificate No.: GR202531002842)
which was valid for 3 years. Universal Global Technology (Shanghai) Co. Ltd. applies the enterprise
income tax rate of 15% from 2025 to 2028.Note 4: Universal Global Technology (Huizhou) Co. Ltd. was approved as a high-tech enterprise by Department
of Science and Technology of Guangdong Province Department of Finance of Guangdong Province
Guangdong Provincial Tax Service State Taxation Administration in 2025 and obtained the High-tech
Enterprise Certificate (Certificate No.: GR202544006303) which is valid for 3 years. Universal Global
Technology (Huizhou) Co. Ltd. applies the enterprise income tax rate of 15% from 2025 to 2028.
158 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IV) TAXATION - continued
1. Major categories of taxes and tax rates - continued
Note 5: Universal Global Technology Co. Limited Universal Global Industrial Co. Ltd. and Universal Global
Electronics Co. Ltd. ("UGE") are companies in Hong Kong China. The applicable enterprise income
tax rate is 8.25% for the part with operating profits not exceeding HKD2 million; and 16.5% for the part
with operating profits exceeding HKD2 million.Note 6: Universal Global Scientific Industrial Co. Ltd. ("UGSI") and the Universal Scientific Industrial Co. Ltd.("USI") are registered and established in Taiwan China. According to the income tax regulations in
Taiwan China (1) the enterprises with profit taxable income less than TWD120000 is exempt from
profit tax; (2) the enterprises with the annual taxable income more than TWD120000 shall be levied at
20% of its total taxable income. But its taxable amount shall not exceed half of the taxable income of a
profit-making enterprise exceeding TWD120000. At the same time the income tax law in Taiwan China
stipulates that an additional 10% income tax shall be levied on the undistributed surplus of the current
year which shall be listed as the income tax expense of the year decided by the board of directors.Note 7: USI Japan Co. Ltd. is established and registered in Japan and is subject to the national tax law of Japan.According to the provisions of Japan's national tax law the statutory tax rate is 23.2% for the enterprise
taking the taxable income as the tax base and the enterprise shall pay local income tax according to the
regulations of the city where the enterprise is located. If the taxable income of an enterprise is negative
and is reported with a cyan E-Tax return (i.e. self-accounting self-reporting and self-taxation) the
accumulated deductible loss can be deducted within 9 years after the year in which the loss occurs (2024:
23.2%).
Note 8: USI America. Inc. is incorporated and registered in the United States and the applicable enterprise
income tax rate is 21%. According to the tax law of California where the enterprise is registered even if
there is no profit in establishing or engaging in commercial activities in the state it is required to pay
California Regional Income Tax of USD800 per year according to the Alternative Minimum Tax.Note 9: Universal Scientific Industrial De México S.A. De C.V. is registered and established in Mexico and the
applicable enterprise income tax rate is 30%.Note 10: Universal Scientific Industrial (France) ("USI France") is established and registered in France and the
applicable enterprise income tax rate is 25%.Note 11: Universal Scientific Industrial Vietnam Company Limited is established and registered in Vietnam and
the applicable enterprise income tax rate is 20%. The Company is established in the economic
development zone and enjoys a preferential policy of an income tax rate of 0% for 4 years since the
profitable year and half tax rate for the subsequent 9 years. On 1 January 2024 Vietnam officially
implemented the Resolution on the Collection of Additional Enterprise Income Tax for Global Anti-base
Erosion. Under this resolution multinational enterprise groups with consolidated revenue of EUR750
million or more in at least two of four consecutive fiscal years are subject to an enterprise income tax
rate of at least 15%. In 2025 the applicable enterprise income tax rate is 15%.Note 12: Asteelflash Suzhou Co. Ltd. was approved as a high-tech enterprise by Jiangsu Provincial Department
of Science and Technology Department of Finance of Jiangsu Province Jiangsu Provincial Office of
State Administration of Taxation and Jiangsu Provincial Bureau Local Taxation in 2023 and obtained
the High-tech Enterprise Certificate (Certificate No.: GR202332016930) which was valid for 3 years.Asteelflash Suzhou Co. Ltd. applies the enterprise income tax rate of 15% from 2023 to 2025.
159 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IV) TAXATION - continued
1. Major categories of taxes and tax rates - continued
Note 13: FINANCIèRE AFG S.A.S. ("FAFG") is established and registered in France and the applicable
enterprise income tax rate is 25%. The enterprise income tax rate applicable to German subsidiary is 30%.The enterprise income tax rate applicable to the Tunisian subsidiary is 20% (2024: 20%). The enterprise
income tax rate applicable to its U.S. subsidiaries is 21%. The enterprise income tax rate applicable to
the Polish subsidiary is 19%. The enterprise income tax rate applicable to the Czech subsidiary is 21%
(2024:21%).
Note 14: According to the Announcement of the Ministry of Finance and the State Taxation Administration on
the Relevant Tax and Fee Policies for Further Supporting the Development of Micro and Small
Enterprises and Individual Industrial and Commercial Households (Announcement [2023] No. 12 of the
Ministry of Finance and the State Taxation Administration) micro and small low-profit enterprises are
given a reduced rate of 25% in calculating the taxable income and are subject to an enterprise income
tax at a tax rate of 20%. USI Science and Technology (Shenzhen) Co. Ltd. is a qualified micro and small
low-profit enterprise in 2025 which calculates taxable income at a reduced rate of 25% and pays
enterprise income tax at a rate of 20%.Note 15: Hirschmann is established and registered in Luxembourg and the applicable enterprise income tax rate
is 24.94%.(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
31/12/202531/12/2024
Item Exchange Exchange
Foreign currency RMB Foreign currency RMB
rate rate
Cash:
RMB - 7202.97
USD 2025.29 7.0288 14235.36 2119.55 7.1884 15236.17
EUR 4363.30 8.2588 36035.62 9655.69 7.4680 72108.69
HKD 29.00 0.9032 26.19 269.00 0.9260 249.09
JPY - 0.0448 - 37000.00 0.0462 1709.40
GBP 370.60 9.4379 3497.69 576.83 9.0761 5235.37
MXN - 0.3912 - 30000.00 0.3547 10641.00
PLN 4714.92 1.9497 9192.68 5100.15 1.7597 8974.73
TND 12061.79 2.4459 29501.93 3094.12 2.2471 6952.80
CZK 22304.00 0.3408 7601.20 4952.00 0.2965 1468.27
Bank balances:
RMB 5671388581.23 4332930647.22
USD 780791620.12 7.0288 5488028139.50 817888919.28 7.1884 5879312707.35
EUR 62408849.20 8.2588 515422203.77 70731788.77 7.4680 528224998.53
HKD 1234502.03 0.9032 1115002.23 1323438.00 0.9260 1225503.59
JPY 141354064.55 0.0448 6332662.09 123210679.78 0.0462 5692333.41
GBP 1887788.28 9.4379 17816757.01 2997042.94 9.0761 27201461.43
MXN 22556569.51 0.3912 8824129.99 150563803.58 0.3547 53404981.13
TWD 6532800526.37 0.2236 1460734197.70 7033826682.08 0.2193 1542518191.38
SGD - 5.4586 - 26186.34 5.3214 139347.99
TND 11908588.67 2.4459 29127217.03 7123331.44 2.2471 16006838.08
CZK 641861.65 0.3408 218746.45 73898.77 0.2965 21910.99
PLN 61483.56 1.9497 119874.50 23820298.35 1.7597 41916579.01
VND 93845956624.33 0.0003 28153786.99 154056665921.99 0.0003 46216999.78
Other cash and bank balances:
RMB 3672619.86 2502688.09
TWD 44000000.00 0.2236 9839874.00 45000000.00 0.2193 9866646.00
JPY - 0.0448 - 1000000.00 0.0462 46230.00
Total 13240893883.02 12487357842.47
Including: Balances deposited
3249942364.483253261118.22
overseas
160 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Cash and bank balances - continued
As at 31 December 2025 the Group's restricted cash and bank balances included in other cash and bank balances
equivalent to RMB11868874.00 were the customs deposits and RMB1643619.86 were frozen funds due to
litigation (31 December 2024: equivalent to RMB11912876.00 were the customs deposits and RMB502688.09
were frozen funds due to litigation).
2. Held-for-trading financial assets
Unit: RMB
Item 31/12/2025 31/12/2024
Financial assets at FVTPL 9800747.96 42291303.91
Including: Derivative financial instruments (Note 1) 9800747.96 42291303.91
Note 1: The derivative financial instruments held by the Group are foreign exchange forward contracts which
are not accounted for as hedging instruments and are measured at fair value through profit or loss.
3. Notes receivable
(1) Categories of notes receivable
Unit: RMB
Category 31/12/2025 31/12/2024
Bank acceptances 109607255.52 79450682.42
(2) As at 31 December 2025 the Group had no pledged notes receivable.
(3) As at 31 December 2025 the Group had notes receivable that had been endorsed or discounted and were
not yet matured at the balance sheet date.Unit: RMB
Amount derecognised at Amount not derecognised at
Category
31/12/202531/12/2025
Bank acceptances 15709174.64 -
(4) As at 31 December 2025 the Group considered made no allowance for credit loss since the Group
considered that the accepting banks of the bank acceptances held by it were of high ratings and no
significant credit risk was expected to exist.
(5) For the year ended 31 December 2025 the Group had no notes receivable that were actually written off.
4. Accounts receivable
(1) Disclosures by aging:
Unit: RMB
Aging 31/12/2025 31/12/2024
Within the credit period 8984659730.38 9343453773.95
1-30 days overdue 991215928.51 778869895.84
31-60 days overdue 47040958.17 99373557.48
61-90 days overdue 15099055.97 31891507.16
91-180 days overdue 26311252.47 15902652.98
More than 180 days overdue 30785186.81 42784909.41
Total 10095112112.31 10312276296.82
161 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(2) Disclosure by category of loss provision method
Unit: RMB
31/12/202531/12/2024
Gross carrying amount Allowance for bad debts Gross carrying amount Allowance for bad debts
Category
Proporti Proportion of Carrying amount Proportion Proportion of Carrying amount
Amount Amount Amount Amount
on (%) provision (%) (%) provision (%)
Allowance for bad
debts provided on an 7008179.08 0.07 7008179.08 100.00 - 6213504.41 0.06 6213504.41 100.00 -
individual basis
Allowance for bad
debts provided on a 10088103933.23 99.93 58180837.71 0.58 10029923095.52 10306062792.41 99.94 50560347.77 0.49 10255502444.64
portfolio basis:
Total 10095112112.31 100.00 65189016.79 0.65 10029923095.52 10312276296.82 100.00 56773852.18 0.55 10255502444.64
Allowance for bad debts provided on an individual basis
Unit: RMB
31/12/2025
Name Gross carrying Allowance for Proportion of Reason for provision
amount bad debts provision (%)
Due to the customer's financial difficulties
and poor realisation of assets the specific
Company A 7008179.08 7008179.08 100 provision is made based on the risk
assessment and judgement of the
management.Allowance for bad debts provided on a portfolio basis:
Unit: RMB
Allowance for bad debts Lifetime ECL
At 1 January 2025 50560347.77
ECL provided for the year 40171291.30
Write-off (14869431.76)
Decrease due to the disposal of a subsidiary (17360791.68)
Effect of changes in exchange rate (320577.92)
At 31 December 2025 58180837.71
As part of the Group's credit risk management the ECLs on accounts receivable are assessed using the aging
analysis approach. According to the Group's assessment of credit risk the aging reflects the solvency of customers
when the accounts receivable are due.At 31 December 2025 the credit risk and ECLs on accounts receivable were as follows:
Unit: RMB
31/12/2025
Aging Expected average loss rate
Gross carrying amount Allowance for bad debts Carrying amount
(%)
Within the credit period 0.05 8984659730.39 4319666.21 8980340064.18
1-30 days overdue 0.77 991215928.51 7639464.17 983576464.34
31-60 days overdue 7.31 47040958.17 3439428.37 43601529.80
61-90 days overdue 12.32 9353503.54 1152753.23 8200750.31
91-180 days overdue 43.29 25048625.81 10844338.92 14204286.89
More than 180 days overdue 100.00 30785186.81 30785186.81 -
Total 0.58 10088103933.23 58180837.71 10029923095.52
162 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(2) Disclosure by category of loss provision method - continued
At 31 December 2024 the credit risk and ECLs on accounts receivable were as follows:
Unit: RMB
31/12/2024
Aging Expected average loss rate
Gross carrying amount Allowance for bad debts Carrying amount
(%)
Within the credit period 0.02 9343453773.95 2006381.32 9341447392.63
1-30 days overdue 0.35 778869895.84 2717123.08 776152772.76
31-60 days overdue 2.29 99373557.48 2271038.49 97102518.99
61-90 days overdue 9.70 31891507.16 3092825.63 28798681.53
91-180 days overdue 24.53 15902652.98 3901574.25 12001078.73
More than 180 days overdue 100.00 36571405.00 36571405.00 -
Total 0.49 10306062792.41 50560347.77 10255502444.64
The expected average loss rate mentioned above is based on the historical actual credit loss rates and the current
conditions as well as the forecast of future economic conditions. In 2025 the Group's valuation method remains
unchanged.
(3) Changes in allowances for bad debts
Unit: RMB
Changes for the year
Translation
Decrease due to differences of
Category 31/12/2024 Provision for the Collection or 31/12/2025
Write-off the disposal of a financial statements
year reversal
subsidiary denominated in
foreign currencies
Allowance for bad debts
provided on an individual 6213504.41 6846000.28 (3658249.59) (3494211.81) - 1101135.79 7008179.08
basis
Allowance for bad debts by
50560347.7740171291.30-(14869431.76)(17360791.68)(320577.92)58180837.71
aging matrix
Total 56773852.18 47017291.58 (3658249.59) (18363643.57) (17360791.68) 780557.87 65189016.79
(4) Accounts receivable actually written off in the current year
Unit: RMB
Item Write-off amount
Company B 14738786.28
Company C 3494211.81
Company D 130645.48
Total 18363643.57
(5) Top five closing balances of accounts receivable categorised by debtor
Unit: RMB
Proportion to the total Allowance for bad
Accounts receivable at 31 December
Name accounts receivable at debts at 31 December
2025
31 December 2025 (%) 2025
Company E 3766562271.45 37.31 1883281.14
Company F 983281910.32 9.74 491640.96
Company G 627525620.47 6.22 313762.81
Company H 500580518.60 4.96 250290.26
Company I 288065540.31 2.85 144032.77
Total 6166015861.15 61.08 3083007.94
163 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Prepayments
(1) Aging analysis of prepayments
Unit: RMB
31/12/202531/12/2024
Aging Proportio Proportio
Amount Amount
n (%) n (%)
Within 1 year (inclusive) 82998846.87 89.61 47189783.80 88.10
1-2 years 5065955.49 5.47 6371930.58 11.90
2-3 years 4555309.09 4.92 - -
Total 92620111.45 100.00 53561714.38 100.00
(2) Top five closing balances of prepayments categorised by receivers
Unit: RMB
Proportion to the
Relationship with Gross carrying total prepayments
Name
the Company amount at 31 December
2025(%)
Company J Third party 15415001.15 16.64
Company K Third party 6292432.55 6.79
Company L Third party 5096500.39 5.50
Company M Third party 5040363.44 5.44
Company N Third party 4710895.69 5.09
Total 36555193.22 39.46
6. Other receivables
(1) Disclosures by aging:
Unit: RMB
Aging 31/12/2025 31/12/2024
Within 1 year (inclusive) 120149780.29 108433848.28
1-2 years 3671156.72 25864889.16
Total 123820937.01 134298737.44
(2) Classification by nature
Unit: RMB
Gross carrying Gross carrying
Nature of other receivables amount at 31 amount at 31
December 2025 December 2024
Services and purchase rebates receivable 75906790.22 38570029.70
Advances for third parties 43744141.63 81135294.31
Advance payments for employees 3562608.34 6390152.64
Receivables from equipment transfers 565888.69 6864778.23
Principal of investment receivable - 594607.64
Others 41508.13 743874.92
Total 123820937.01 134298737.44
(3) The Company recognises credit losses on its other receivables on an individual asset basis. As at 31
December 2025 no allowance for ECLs has been made and no allowance for ECLs has been reversed
or collected due to the low probability that the Company's other receivables will not be collected.
164 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables - continued
(4) Top five closing balances of other receivables categorised by debtor
Unit: RMB
Proportion to the
total other Allowance for bad debts
Name 31/12/2025 Nature of the amount Aging
receivables at 31 at 31 December 2025
December 2025 (%)
Services and
Company O 20117928.31 16.25 purchase rebates Within 1 year -
receivable
Company P 10171093.97 8.21 Advances Within 1 year -
Company F 9084170.62 7.34 Advances Within 1 year -
Company Q 6049422.89 4.89 Advances Within 1 year -
Company R 4230822.64 3.42 Advances Within 1 year -
Total 49653438.43 40.11 -
(5) As at 31 December 2025 there were no other receivables presented for centralised management of funds.
7. Inventories
(1) Categories of inventories
Unit: RMB
31/12/202531/12/2024
Item Gross carrying Provision for Gross carrying Provision for
Carrying amount Carrying amount
amount decline in value amount decline in value
Raw
4674779954.99277364274.094397415680.904704209891.60255166248.294449043643.31
materials
Work in
1527030353.44-1527030353.441158555723.48-1158555723.48
progress
Finished
1983039908.3256263953.321926775955.002072505327.7741365473.352031139854.42
goods
Reusable
126168859.42-126168859.42111469687.37-111469687.37
materials
Total 8311019076.17 333628227.41 7977390848.76 8046740630.22 296531721.64 7750208908.58
(2) Provision for decline in value of inventories
Unit: RMB
Decrease Translation
differences of
Decrease due to financial
Item 31/12/2024 Provision the disposal of a statements 31/12/2025
Reversal Write-off
subsidiary denominated in
foreign
currencies
Raw
255166248.29166709700.66207705979.5321567761.7175046218.699715847.69277364274.09
materials
Finished
41365473.3556484220.5235198277.467805837.26-1418374.1756263953.32
goods
Total 296531721.64 223193921.18 242904256.99 29373598.97 75046218.69 11134221.86 333628227.41
Reasons for reversal/write-off
Item Specific determination basis of net realisable value of the provision for decline in
value of inventories
The higher of the estimated selling price of raw materials less estimated
costs of sales and related taxes and the estimated selling price of finished Sold or net realisable value
Raw materials
goods less estimated costs of completion and estimated costs necessary to recovered
make the sale as well as related taxes
Work in Value of estimated selling price less estimated costs of completion and Sold or net realisable value
progress estimated costs necessary to make the sale as well as related taxes recovered
Finished Value of estimated selling price less estimated costs necessary to make the Sold or net realisable value
goods sale as well as related taxes recovered
165 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Non-current assets due within one year
Unit: RMB
Item 31/12/2025 31/12/2024
Lease receivables - 130008.72
9. Other current assets
Unit: RMB
Item 31/12/2025 31/12/2024
Input VAT to be deducted 264673402.76 332326929.82
FPC expenses to be amortised 161720106.18 163891084.27
Tax refunds receivable 85667069.84 220524523.09
Prepaid income tax 27206977.66 56817571.71
Mold costs to be amortised 11647727.44 14031803.36
Net asset of defined benefit plan 719260.94 -
Others 7482686.03 6221710.03
Total 559117230.85 793813622.28
10. Long-term receivables
(1) Long-term receivables
Unit: RMB
Item 31/12/2025 31/12/2024
Employee borrowings for house purchasing 14158877.21 13787074.59
Total 14158877.21 13787074.59
(2) As at 31 December 2025 no allowance for bad debts has been made as the Group's long-term receivables
are less likely to be uncollectable.
(3) As at 31 December 2025 there are no long-term receivables that have been actually written off by the
Group.-
166 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments
(1) Long-term equity investments
Unit: RMB
Changes for the year
Translation
differences of
Additi Investment Other Impairment
Other Cash dividends financial
Name of the investee 1/1/2025 onal Reduction in income (loss) comprehensive Impairment 31/12/2025 allowance at 31
equity or profit statements
invest investment recognised under income allowance December 2025
changes declared denominated
ment equity method adjustments
in foreign
currencies
I. Joint venture
MUtek Electronics Co. Ltd. (Note 1) 2709233.30 - - (58092.32) - - - (2730227.27) 79086.29 - (2730227.27)
II. Associates
M-Universe Investments Pte. Ltd. (Note
509880880.27--33275826.789343710.34-(12402248.74)-(11804618.68)528293549.97-
2)
Questyle Audio Technology Co. Ltd.
3902360.54-(3456866.76)(445493.78)-------
(Note 3)
Total 516492474.11 - (3456866.76) 32772240.68 9343710.34 - (12402248.74) (2730227.27) (11725532.39) 528293549.97 (2730227.27)
Note 1: In April 2022 UGSI the Company's wholly-owned subsidiary established a joint venture MUtek Electronics Co. Ltd. ("MUtek Electronics") with Merry Electronics
Co. Ltd. ("Merry Electronics"). Under the Joint Investment Contract UGSI intends to contribute TWD191100000.00 (equivalent to RMB43338816.67) with a capital
contribution of 49%. As at 31 December 2025 the accumulated capital contribution paid up by UGSI totalled TWD29400000.00 (equivalent to RMB7044079.28)
with a capital contribution of 49% while the capital subscription of TWD161700000.00 (31 December 2024: TWD161700000.00) (equivalent to RMB36161532.29
(31 December 2024: RMB35454149.15)) was unpaid. It is stipulated in the Joint Investment Contract that the financial and operating plans of MUtek Electronics shall
be submitted to the Board of Directors for approval only when a joint resolution by UGSI and Merry Electronics is achieved. According to the articles of association of
MUtek Electronics the board of directors is composed of 4 directors 2 of whom are appointed by UGSI. Therefore MUtek Electronics is a joint venture of UGSI and
the Group accounts for this long-term equity investment under the equity method.Note 2: In July 2019 Universal Global Technology Co. Limited the Company's wholly-owned subsidiary made an additional contribution of SGD 79862500 to M-Universe
Investments Pte. Ltd. ("M-Universe") a sub-subsidiary of it established in Singapore to publicly acquire the ordinary shares of Memtech International Ltd. ("Memtech")
a company listed in Singapore. Pursuant to the Equity Acquisition Agreement M-Universe acquired 42.23% of Memtech's equity interest at the market price of SGD
1.35 per share on 30 June 2019 meanwhile M-Universe issued new shares at the same subscription price to Keytech Investment Pte. Ltd. ("Keytech") the original
shareholder of Memtech i.e. M-Universe exchanged its 57.77% equity interest in Memtech for the same percentage of shares held by Keytech. As a result Universal
Global Technology Co. Limited's shareholding in M-Universe was reduced from 100 % to 42.23%. According to the Shareholders' Agreement of M-Universe the board
of directors is composed of 3 directors 2 of which are appointed by Keytech and 1 by Universal Global Technology Co. Limited and the resolutions need to be approved
by the majority of the directors attending the board meeting so the Group accounts for this long-term equity investment under the equity method.
167 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments - continued
(1) Long-term equity investments - continued
Note 3: In November 2022 the Company made an additional contribution of RMB 20000000.00 to Questyle Audio Technology Co. Ltd. ("Questyle Audio Technology") to
acquire 6.6667% of equity interests of Questyle Audio Technology upon the capital contribution according to the Capital Increase Agreement. As at 29 November 2022
the additional capital contribution has been paid up. According to the Shareholders' Agreement of Questyle Audio Technology the board of directors is composed of 3
directors 1 of which is appointed by the Company being responsible to develop its annual budget and resolutions in relation to substantial modifications of corporate
accounting policy or fiscal year need to be approved by the majority of the directors attending the board meeting. The meeting of shareholders is allowed to be held when
attended by shareholders representing more than a half of the voting rights involving investors of previous and current rounds. Ordinary resolution requires the approval
of shareholders representing more than a half of the voting rights which mainly includes the approvals of corporate management principle and investment plan annual
financial budget plan and final accounts plan and plans of profit distribution and losses recovery. The Company has significant influence on Questyle Audio Technology
so it is an associate of the Company and the Group accounts for it under the equity method.On 3 December 2025 the shareholders' meeting of Questyle Audio Technology resolved to approve the Company's resignation from its directorship and to no longer
nominate the Company as a director of Questyle Audio Technology. The relevant business registration changes were completed in 2025. As a result the Company no
longer has influence over Questyle Audio Technology and has reclassified its investment in Questyle Audio Technology from long-term equity investments to other non-
current financial assets.
(2) Impairment testing of long-term equity investments
The recoverable amount is determined based on the present value of expected future cash flows
Unit: RMB
Basis to determine
Carrying Recoverable Impairment Projection Key parameters for Key parameters for
Item the key parameters
amount amount amount period projection period steady period
for steady period
Revenue growth rate of
the projection period:
(100%)-(5%)
MUtek Electronics 2730227.27 - 2730227.27 5 years N/A N/A
Profit margin of the
projection period:
(15%)-0%
168 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Other equity instrument investments
(1) Other equity instrument investments
Unit: RMB
Changes for the year Reasons for
Translation Accumulated designation as
Losses
differences of Dividend gains at fair value
Addit recognised in
financial income recognised in through other
Item 31/12/2024 ional Reduction in other 31/12/2025
statements recognised in other comprehensive
inves investment comprehensive
denominated in the year comprehensive income
tment income in the
foreign income
year
currencies
Non-trading
equity
investments
TriKnight that the Group
Capital does not
22769795.62-7085303.75(3063043.91)965562.3513587010.31-5461751.30
Corporation expect to
(Note) dispose of in
the
foreseeable
future
Note: The Group invested in TriKnight Capital Corporation in 2016 accounting for 5% of the equity interests
in the investee.
(2) There was no other equity instrument investment derecognised in the year.
13. Other non-current financial assets
Unit: RMB
Item 31/12/2025 31/12/2024
PHI FUND L.P.(Note X 4) 103958381.51 105896492.26
Suzhou Yaotu Equity Investment Partnership (Note X 4) 35298597.00 32981373.58
PI Semiconductor (Shenzhen) Co. Ltd. (Note X 4) 31351375.00 30000000.00
Senscomm Semiconductor Co. Ltd. (Note X 4) 9000000.00 17838568.00
Questyle Audio Technology Co. Ltd. (Note X 4) 6909500.00 -
NeuroBlade Ltd. (Note X 4) - 14376800.00
Total 186517853.51 201093233.84
169 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Investment properties
(1) Investment properties measured using cost model
Unit: RMB
Item Buildings
I. Cost
1. 1 January 2025 11507908.40
2. Increase in the year -
3. Decrease in the year -
4. Translation differences arising from translation
-
denominated in foreign currencies
5. 31 December 2025 11507908.40
II. Accumulated depreciation
1. 1 January 2025 7463620.39
2. Increase in the year 279757.48
(1) Provision 279757.48
3. Decrease in the year -
4. Translation differences arising from translation
-
denominated in foreign currencies
5. 31 December 2025 7743377.87
III. Provision for impairment losses
1. 1 January 2025 -
2. Increase in the year -
3. Decrease in the year -
4. Translation differences arising from translation
-
denominated in foreign currencies
5. 31 December 2025 -
IV. Carrying amount
1. 31 December 2025 3764530.53
2. 1 January 2025 4044288.01
(2) As at 31 December 2025 the Group had no investment properties for which certificates of title have not
been obtained.
(3) As lessor under operating leases
Unit: RMB
Including: Income
related to variable
Item Lease income lease payments not
included in lease
receipts
Investment properties 4052151.00 -
Income relating to operating leases for the year amounted to RMB4052151.00 (2024: RMB3714471.75) and
there was no income related to variable lease payments not included in the lease receipts.
170 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Fixed assets
(1) Details of fixed assets
Unit: RMB
Machinery and Electronic equipment
Item Land operated overseas Buildings Transportation vehicles Renovation costs Total
equipment fixtures and furniture
I. Cost
1. 1 January 2025 242896453.85 2496057624.67 7894189857.66 23074614.58 654681036.25 408853646.55 11719753233.56
2. Increase in the year 118848367.48 97041691.75 871641355.69 605010.40 101828393.31 169058624.79 1359023443.42
(1) Purchase - - 62601912.81 222413.87 10976404.15 - 73800730.83
(2) Transfer from
118848367.4897041691.75809039442.88382596.5390851989.16169058624.791285222712.59
construction in progress
3. Decrease in the year 33639137.54 89392736.93 483263673.01 2885372.22 80017884.85 2019862.96 691218667.51
(1) Disposal or retirement 33639137.54 89392736.93 483263673.01 2885372.22 80017884.85 2019862.96 691218667.51
4. Translation differences
arising from translation
3918847.97(17016454.80)40639062.53660251.233476532.13(6576089.09)25102149.97
denominated in foreign
currencies
5. 31 December 2025 332024531.76 2486690124.69 8323206602.87 21454503.99 679968076.84 569316319.29 12412660159.44
II. Accumulated depreciation
1. 1 January 2025 - 588804230.96 5309609854.06 14868673.73 422161428.49 214604875.19 6550049062.43
2. Increase in the year - 75341761.95 843948351.92 1903981.09 86556695.73 50418093.23 1058168883.92
(1) Provision - 75341761.95 843948351.92 1903981.09 86556695.73 50418093.23 1058168883.92
3. Decrease in the year - 54218188.54 386864538.85 2566722.13 60034222.26 2018456.00 505702127.78
(1) Disposal or retirement - 54218188.54 386864538.85 2566722.13 60034222.26 2018456.00 505702127.78
4. Translation differences
arising from translation
-(3257237.32)18914193.80361885.842948261.48(1529464.79)17437639.01
denominated in foreign
currencies
5. 31 December 2025 - 606670567.05 5785607860.93 14567818.53 451632163.44 261475047.63 7119953457.58
III. Provision for impairment
losses
1. 1 January 2025 - 49649113.02 - - - - 49649113.02
2. Increase in the year - - 2805304.33 - - - 2805304.33
(1) Provision - - 2805304.33 - - - 2805304.33
3. Decrease in the year - 5791922.18 - - - - 5791922.18
(1) Disposal or retirement - 5791922.18 - - - - 5791922.18
4. Translation differences
arising from translation
-233362.79(2339.84)---231022.95
denominated in foreign
currencies
5. 31 December 2025 - 44090553.63 2802964.49 - - - 46893518.12
IV. Carrying amount
1. 31 December 2025 332024531.76 1835929004.01 2534795777.45 6886685.46 228335913.40 307841271.66 5245813183.74
2. 1 January 2025 242896453.85 1857604280.69 2584580003.60 8205940.85 232519607.76 194248771.36 5120055058.11
171 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Fixed assets - continued
(2) As at 31 December 2025 the Group had no significant temporarily idle fixed asset.
(3) As at 31 December 2025 the Group had no fixed assets of which certificates of title have not been
obtained.
(4) As at 31 December 2025 the Group had no fixed assets that have been pledged.
(5) As at 31 December 2025 Asteelflash Germany GmbH and ASTEELFLASH FRANCE subsidiaries of
the Group in light of future business plans intend to shut down certain factories; accordingly the Group
has recognised an impairment loss of RMB2805304.33 on its machinery and equipment.
16. Construction in progress
(1) Construction in progress:
Unit: RMB
31/12/202531/12/2024
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Veitnam factory-Wearable device
2457551.67-2457551.67159925813.30-159925813.30
production project
Other construction decoration and
182689024.85-182689024.85204741920.43-204741920.43
uninstalled equipment
Total 185146576.52 - 185146576.52 364667733.73 - 364667733.73
172 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Construction in progress - continued
(2) Changes in construction in progress
Unit: RMB
Translation Proporti
Amount
differences of on of Interest
Transferred to of Including:
Decrease due to financial amount capitalisati Source
Increase in the Transfer to fixed long-term accumulat Capitalised
Item Budget 31/12/2024 the disposal of a statements 31/12/2025 injected on rate for of
year assets prepaid ed interest for
subsidiary denominated in to the year funds
expenses capitalise the year
foreign budget (%)
d interest
currencies amount
Self-
Veitnam factory- owned
Wearable device 1400000000.00 159925813.30 253614130.34 -- (410054312.76) - (1028079.21) 2457551.67 85% - - - funds/
production project Raised
funds
Other construction
Self-
decoration and
N/A 204741920.43 907782857.41 (48629526.92) (875168399.83) (12595811.50) 6557985.26 182689024.85 N/A - - - owned
uninstalled
funds
equipment
Total 364667733.73 1161396987.75 (48629526.92) (1285222712.59) (12595811.50) 5529906.05 185146576.52
(3) As at 31 December 2025 the Group had no construction in progress that requires provision for impairment losses.
173 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Right-of-use assets
(1) Details of right-of-use assets
Unit: RMB
Machinery and Transportation
Item Buildings Others Total
equipment equipment
I. Cost
1. 1 January 2025 1014565398.63 2275442.48 16102037.16 1805012.20 1034747890.47
2. Increase in the
87655751.5573617.947848565.90-95577935.39
year
(1) Increase 87655751.55 73617.94 7848565.90 - 95577935.39
3. Decrease in the
121302187.23501129.878086749.82435505.24130325572.16
year
(1) Disposal 121302187.23 501129.87 8086749.82 435505.24 130325572.16
4. Translation
differences arising
from translation 20144646.02 101191.75 1638423.33 43775.59 21928036.69
denominated in
foreign currencies
5. 31 December
1001063608.971949122.3017502276.571413282.551021928290.39
2025
II. Accumulated
depreciation
1. 1 January 2025 555899052.98 1260067.34 9914847.39 476578.68 567550546.39
2. Increase in the
124176918.76458147.335100395.86654481.90130389943.85
year
(1) Provision 124176918.76 458147.33 5100395.86 654481.90 130389943.85
3. Decrease in the
82068169.69297328.656635674.38435505.2489436677.96
year
(1) Disposal 82068169.69 297328.65 6635674.38 435505.24 89436677.96
4. Translation
differences arising
from translation 9577803.65 33047.76 996027.56 2908.90 10609787.87
denominated in
foreign currencies
5. 31 December
607585605.701453933.789375596.43698464.24619113600.15
2025
III. Provision for
impairment losses
1. 1 January 2025 - - - - -
2. Increase in the
3070307.42---3070307.42
year
3. Decrease in the
-----
year
4. Translation
differences arising
from translation (2560.88) - - - (2560.88)
denominated in
foreign currencies
5. 31 December
3067746.54---3067746.54
2025
IV. Carrying amount
1. 31 December
390410256.73495188.528126680.14714818.31399746943.70
2025
2. 1 January 2025 458666345.65 1015375.14 6187189.77 1328433.52 467197344.08
The Group has leased a number of assets including offices plants dormitories machinery equipment and
transportation equipment with a lease term ranging from 2 to 10 years. The related right-of-use assets may not
be used for purposes such as security for borrowings.In 2025 the total short-term lease and leases of low-value assets expenses included in the profit or loss for the
current period and treated under a simplified method is RMB47937039.43 (2024: RMB57618528.16).
174 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Right-of-use assets - continued
(1) Details of right-of-use assets - continued
The cash outflows related to leases are RMB187909264.65 (2024: RMB235612311.91).The assets leased in shall not be used as collateral for borrowings.The Group's potential future cash flows not included in the measurement of lease liabilities are mainly derived
from the rentals that will be adjusted to the market levels upon renewal of the lease contracts relating to buildings.As at 31 December 2025 the Group had no leases committed but not yet commenced.As at 31 December 2025 Asteelflash Germany GmbH and ASTEELFLASH FRANCE subsidiaries of the Group
in light of future business plans intend to shut down certain factories; accordingly the Group has recognised an
impairment loss of RMB3070307.42 on its buildings.
175 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Intangible assets
(1) Details of intangible assets
Unit: RMB
Item Software Patents Trademark rights Land use rights Customer relations Total
I. Cost
1. 1 January 2025 517671579.91 74255.00 402708.44 132314014.99 167845045.97 818307604.31
2. Increase in the year 45102406.24 - - 155406.00 - 45257812.24
(1) Purchase 45102406.24 - - 155406.00 - 45257812.24
3. Decrease in the year 10250704.96 - - - - 10250704.96
(1) Disposal or retirement 10250704.96 - - - - 10250704.96
4. Translation differences
arising from translation
5594461.91-4317.811628252.1617773599.0825000630.96
denominated in foreign
currencies
5. 31 December 2025 558117743.10 74255.00 407026.25 134097673.15 185618645.05 878315342.55
II. Accumulated amortisation
1. 1 January 2025 436728178.19 74255.00 402708.44 27015623.16 42697201.61 506917966.40
2. Increase in the year 44525969.88 - - 3077945.67 11345230.16 58949145.71
(1) Provision 44525969.88 - - 3077945.67 11345230.16 58949145.71
3. Decrease in the year 9470237.77 - - - - 9470237.77
(1) Disposal or retirement 9470237.77 - - - - 9470237.77
4. Translation differences
arising from translation
3229079.77-4317.81182926.114790097.718206421.40
denominated in foreign
currencies
5. 31 December 2025 475012990.07 74255.00 407026.25 30276494.94 58832529.48 564603295.74
III. Provision for impairment
losses
1. 1 January 2025 - - - - - -
2. Increase in the year 457877.28 - - - - 457877.28
(1) Provision 457877.28 - - - - 457877.28
3. Decrease in the year - - - - - -
4. Translation differences
arising from translation
(381.89)----(381.89)
denominated in foreign
currencies
5. 31 December 2025 457495.39 - - - - 457495.39
IV. Carrying amount
1. 31 December 2025 82647257.64 - - 103821178.21 126786115.57 313254551.42
2. 1 January 2025 80943401.72 - - 105298391.83 125147844.36 311389637.91
176 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Intangible assets - continued
(2) As at 31 December 2025 the Group had no land use rights of which certificates of title have not been
obtained.
(3) As at 31 December 2025 Asteelflash Germany GmbH and ASTEELFLASH FRANCE subsidiaries of
the Group in light of future business plans intend to shut down certain factories; accordingly the Group
has recognised an impairment loss of RMB457877.28 on its software.
19. Goodwill
(1) Original carrying amount of goodwill
Unit: RMB
Changes for the year
Translation
Investee 31/12/2024 Decrease due to the differences of 31/12/2025
disposal of a financial statements
subsidiary denominated in
foreign currencies
USI Asteelflash Poland Sp. z
29367344.30-(652026.62)28715317.68
o.o. ("USI Poland")
FAFG 551197927.06 - 58367948.25 609565875.31
Hirschmann 4655156.44 (4655156.44 ) - -
Total 585220427.80 (4655156.44 ) 57715921.63 638281192.99
(2) Provision for impairment of goodwill
As at 31 December 2025 there is no impairment provision of goodwill.
(3) Information of the asset group or portfolio of asset groups with goodwill
Composition of the asset
Consistent with prior years or
Name group or a portfolio of asset Operating segment and its basis
not
groups and its basis
FAFG - Company in Chinese
mainland Chinese mainland
FAFG China Yes
Cash flow generated Manufacturing location
independently
FAFG - Company in Europe
European region
FAFG Europe Cash flow generated Yes
Manufacturing location
independently
USI Poland
European region
USI Poland Cash flow generated Yes
Manufacturing location
independently
177 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Goodwill - continued
(4) Specific method of determining the recoverable amount
The recoverable amount is determined based on the present value of expected future cash flows
Unit: RMB
Basis to Key Basis to
Impai Proje
determine the parameter determine the
Recoverable rment ction Key parameters for
Item Carrying amount parameters for s for key
amount amou perio projection period
projection steady parameters for
nt d
period period steady period
Post-tax
discount
Revenue growth rate of Long-term
Growth forecast rate:
the projection period: discount rate
FAFG 5 based on itself 14.47%
1374225640.87 1846952979.88 - 5.90%-17.21% and average
China years and relevant Long-
Profit margin: growth rate of
industries term
7.64%-8.65% the industry
growth
rate: 3%
Post-tax
discount
Revenue growth rate of Long-term
Growth forecast rate:
the projection period: discount rate
FAFG 5 based on itself 14.42%
1695280747.17 2226418863.43 - 2.47%-16.70% and average
Europe years and relevant Long-
Profit margin: growth rate of
industries term
2.98%-5.02% the industry
growth
rate: 3%
Post-tax
discount
Revenue growth rate of Long-term
Growth forecast rate:
the projection period: discount rate
5 based on itself 11.79%
USI Poland 396148079.09 593784322.53 - 11.08%-40.11% and average
years and relevant Long-
Profit margin: growth rate of
industries term
0.82%-7.46% the industry
growth
rate: 3%
Total 3465654467.13 4667156165.84
20. Long-term prepaid expenses
Unit: RMB
Translation of
Transfer from Amortisation for the financial statements
Item 31/12/2024 31/12/2025
construction in progress year denominated in
foreign currencies
Leased-in plant
175639403.3012595811.5035248719.015274879.64158261375.43
decoration works
21. Deferred tax assets/deferred tax liabilities
(1) Deferred tax assets before offsetting
Unit: RMB
31/12/202531/12/2024
Deductible Deductible
Item
temporary Deferred tax assets temporary Deferred tax assets
differences differences
Provision for impairment of
383031050.4989193109.10350484017.6571617189.10
assets
Credit loss allowance 62883275.37 17094223.60 48216478.38 9982247.67
Deferred income 74431099.63 11164664.95 70500832.93 10575124.94
Employee benefits payable 228191058.20 36668625.71 274314423.18 46341508.77
Defined benefit plan 85373864.55 21659076.93 109155597.67 28863045.33
Depreciation differences 21227094.78 2745749.00 6679490.15 1485153.02
Provisions 19143553.72 4785888.43 37717040.00 9429260.00
Unrealised profit 49247521.40 8240484.55 37049520.25 6192275.96
Deductible losses 271416402.00 71614749.17 279910895.00 82385697.72
Sales discount 624919078.83 122236733.80 527373474.77 100677265.97
Lease liabilities 385572521.66 73643350.67 394834647.49 74678048.88
Others 291352109.51 67635122.25 268005483.58 73602454.06
Total 2496788630.14 526681778.16 2404241901.05 515829271.42
178 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Deferred tax assets/ deferred tax liabilities - continued
(2) Deferred tax liabilities before offsetting
Unit: RMB
31/12/202531/12/2024
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Depreciation differences in
research and development 15443990.48 2333850.77 21284927.28 3224822.43
equipment tax credits
Right-of-use assets 342361377.74 66890914.31 366223014.38 69143633.50
Business combinations not
involving enterprises under
257357058.1866489314.70311914199.6182878640.62
common control
Asset valuation appreciation
Others 21568471.66 6470541.49 31297825.42 9389355.16
Total 636730898.06 142184621.27 730719966.69 164636451.71
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Unit: RMB
31/12/202531/12/2024
Offset amount Offset amount
Item Deferred tax assets or Deferred tax assets or
between deferred tax between deferred tax
liabilities after offset liabilities after offset
assets and liabilities assets and liabilities
Deferred tax assets (75695306.57) 450986471.59 (81757811.09) 434071460.33
Deferred tax liabilities 75695306.57 66489314.70 81757811.09 82878640.62
Deferred tax assets are recognised for deductible temporary differences and deductible losses as the Group
believes that it is probable that sufficient taxable profits will be available in the future.
(4) Details of deferred tax assets not recognised
Unit: RMB
Item 31/12/2025 31/12/2024
Deductible temporary differences 4024584.60 5529613.34
Deductible losses 718808431.19 667567244.01
Total 722833015.79 673096857.35
(5) Deductible losses for which no deferred tax assets are recognised will expire in the following years:
Unit: RMB
Year 31/12/2025 31/12/2024
Indefinite 718808431.19 667567244.01
No deferred tax assets are recognised for deductible temporary differences and deductible losses due to the
uncertainty in certain subsidiaries whether sufficient taxable profits will be available in the future.
22. Other non-current assets
Unit: RMB
Item 31/12/2025 31/12/2024
Prepayments for equipment and projects 176224373.55 156514600.51
Guarantees and deposits 25865976.22 21740962.14
Prepayments for enterprise income tax 2632729.26 1314465.29
Prepayments for platform fees 773944.52 5417611.16
Total 205497023.55 184987639.10
179 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
23. Assets with restrictions on ownership or use rights
Unit: RMB
31 December 2025 31 December 2024
Item Gross carrying Gross carrying
Carrying amount Restriction case Carrying amount Restriction case
amount amount
Other cash and
11868874.00 11868874.00 Customs deposits 11912876.00 11912876.00 Customs deposits
bank balances
Other cash and Frozen funds due to Frozen funds due to
1643619.861643619.86502688.09502688.09
bank balances litigation litigation
Total 13512493.86 13512493.86 12415564.09 12415564.09
24. Short-term borrowings
(1) Categories of short-term borrowings:
Unit: RMB
Item 31/12/2025 31/12/2024
Credit loans 2970280883.63 3676702163.10
As at 31 December 2025 the Group's short-term borrowings are all composed of credit loans with no pledged
mortgaged or guaranteed borrowings. As at 31 December 2025 the credit loan of EUR228500000.00 equivalent
to RMB1887144940.00 is a hedge instrument as detailed in Note (V) 66.
(2) As at 31 December 2025 the Group has no short-term borrowings overdue but not yet repaid.
25. Derivative financial liabilities
Unit: RMB
Item 31/12/2025 31/12/2024
Financial liabilities at FVTPL 2750760.31 4775306.67
Including: Derivative financial instruments (Note) 2750760.31 4775306.67
Note: The derivative financial liabilities held by the Group are foreign exchange forward contracts which are
not accounted for as hedging instruments and are measured at fair value through profit or loss.
26. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item 31/12/2025 31/12/2024
Payable for materials 10358319149.35 10458137573.11
Payable for assets 284186599.91 313707505.97
Expenses payable 342680621.97 283547850.07
Total 10985186371.23 11055392929.15
Including: Accounts payable under supplier financing
88695346.66231644532.10
arrangements (Note)
Amounts already received by suppliers from financing
88694521.98229360838.17
providers
Note: Some suppliers have engaged in factoring businesses with banks to obtain financing support. Under the
reverse factoring arrangements banks provide the suppliers with factoring financing with an amount
equal to the purchase orders. The Group will repay the full invoice amounts to the banks on the agreed
payment due date. The Group considers that the amount owed to the banks should be classified as
accounts payable as the arrangement does not allow the Group to obtain financing from the banks by
extending the original payment period to repay the banks. The aforesaid reverse factoring arrangement
allows the suppliers to settle invoice amounts in advance every six months with a limit of
USD73000000.00 equivalent to RMB513102400.00.
(2) As at 31 December 2025 the Group has no significant accounts payable aged more than one year.
180 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
27. Contract liabilities
(1) Details of contract liabilities
Unit: RMB
Item 31/12/2025 31/12/2024
Receipts in advance 466578303.40 542457418.46
The Group's revenue from sales of goods is recognised when the control over related goods is transferred to the
customer. A contract liability is recognised at the time of the transaction for goods paid for in advance by the
customer until control of the goods is transferred to the customer.The carrying amount of contract liabilities of RMB484544362.80 at the beginning of the year has been
recognised as revenue in the current year while that of RMB466578303.40 at the end of the year is expected to
be recognised as revenue in 2026.
28. Employee benefits payable
(1) Details of employee benefits payable
Unit: RMB
Translation
differences of
financial
Item 31/12/2024 Increase Decrease statements 31/12/2025
denominated in
foreign
currencies
1. Short-term employee benefits 861827804.04 4226710773.90 4130726001.38 23174601.67 980987178.23
2. Post-employment benefits-defined
32852487.73278720672.29283003842.121883407.7830452725.68
contribution plan
3. Long-term employee benefits
543174.0111617007.7911837023.3916326.82339485.23
payable due within one year
4. Termination benefits 9686725.69 5538828.88 15165723.37 (59831.20) -
Total 904910191.47 4522587282.86 4440732590.26 25014505.07 1011779389.14
(2) Details of short-term employee benefits
Unit: RMB
Translation
differences of
Item 31/12/2024 Increase Decrease financial statements 31/12/2025
denominated in
foreign currencies
1. Wages or salaries bonuses
788447662.423548143064.063452696198.4317963393.55901857921.60
allowances and subsidies
2. Staff welfare 16903528.55 280228341.21 277990102.33 1727393.94 20869161.37
3. Social security contributions 50132458.65 301117763.60 302885896.00 3368564.79 51732891.04
Including: Medical insurance 41830891.81 201500618.77 204133397.49 2871986.70 42070099.79
Work injury insurance 7058235.85 52698451.63 51720274.92 236563.85 8272976.41
Maternity insurance 47835.35 2701270.18 2699773.64 (1085.35) 48246.54
Overseas comprehensive
1195495.6444217423.0244332449.95261099.591341568.30
insurance expenses
4. Housing funds 5120639.33 83566363.45 83307780.53 95325.91 5474548.16
5. Union running costs and
1223515.0913655241.5813846024.0919923.481052656.06
employee education costs
Total 861827804.04 4226710773.90 4130726001.38 23174601.67 980987178.23
(3) Defined contribution plan (Note)
Unit: RMB
Translation
differences of
financial
Item 31/12/2024 Increase Decrease 31/12/2025
statements
denominated in
foreign currencies
1. Basic pension insurance 32427859.96 261029835.81 265315631.01 1864276.36 30006341.12
2. Unemployment insurance 424627.77 17690836.48 17688211.11 19131.42 446384.56
Total 32852487.73 278720672.29 283003842.12 1883407.78 30452725.68
181 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28. Employee benefits payable - continued
(3) Defined contribution plan - continued
Note: The Group participates as required in the pension insurance and unemployment insurance plans
established by Chinese government authorities Mexican authorities and French authorities. According
to such plans the Group contributes monthly to such plans based on corresponding percentages of
contribution base. Except for above monthly contributions the Group does not assume further payment
obligations. The related expenditures are either included in cost of related assets or charged to profit or
loss in the period when they are incurred.In this year the Group should contribute pension insurance and unemployment insurance plans
amounting to RMB261029835.81 and RMB17690836.48(2024: RMB 257070315.83 and
RMB17226015.55). As at 31 December 2025 the Group has outstanding contributions to pension
insurance and unemployment insurance plans that are accrued but not yet paid in the current reporting
period amounting to RMB30006341.12 and RMB446384.56 (31 December 2024: RMB32427859.96
and RMB424627.77). The outstanding contributions have been paid after the reporting period.
29. Taxes payable
Unit: RMB
Item 31/12/2025 31/12/2024
Enterprise income tax 136132543.17 164689764.66
VAT 51357583.46 54670173.86
Individual income tax 11985714.66 9602342.80
Withholding of income tax 5680985.73 130081236.21
Stamp duty 4997888.22 5590250.40
Surcharges 4524497.06 19598431.46
Others 6169894.61 5868500.79
Total 220849106.91 390100700.18
30. Other payables
(1) Other payables by nature:
Unit: RMB
Item 31/12/2025 31/12/2024
Customer deposits 321694651.81 284758340.56
Collection on behalf of third parties 273038273.98 297469296.00
Accrued expenses 109254224.50 113892240.27
Professional service fees 35905792.57 28829046.07
Utilities storage and transportation costs 21057025.69 18934955.70
Miscellaneous fees 11348310.40 12478053.65
Procurement of non-raw materials 4396932.89 1007400.40
Others 13439230.82 47806472.58
Total 790134442.66 805175805.23
As at 31 December 2025 the Group has no significant other payables aged more than one year.
182 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Non-current liabilities due within one year
Unit: RMB
Item 31/12/2025 31/12/2024
Long-term borrowings due within one year (Note (V) 33) 180192609.95 15058490.64
Lease liabilities due within one year (Note (V) 35) 122527409.57 141402864.11
Bonds payable due within one year (Note (V) 34) 30534465.55 37230089.82
Provisions due within one year (Note (V) 38) 10987000.00 -
Total 344241485.07 193691444.57
32. Other current liabilities
Unit: RMB
Item 31/12/2025 31/12/2024
Products quality assurance within one year 7067308.83 7544004.96
Relocation expenses of Shenzhen plant - 3562072.89
Total 7067308.83 11106077.85
33. Long-term borrowings
Categories of long-term borrowings
Unit: RMB
Item 31/12/2025 31/12/2024
Credit loans (Note) 305726977.95 44930605.68
Less: Long-term borrowings due within one year
180192609.9515058490.64
(Note (V) 31)
Total 125534368.00 29872115.04
Note 1: In November 2022 FAFG a subsidiary of the Group borrowed EUR10000000.00 from the bank
equivalent to RMB74284423.60. Repayments are scheduled to begin in February 2023 with quarterly
instalments of EUR500000.00 and the final repayment date is in November 2027. The borrowing carries
a fixed interest rate of 3.9%. As at 31 December 2025 the balance of the above borrowings of
EUR2000000.00 (equivalent to RMB16517680.00) is included in the non-current liabilities due within
one year.Note 2: As of December 2025 the principal amount of the bank loan held by the Group's subsidiary Universal
Global Technology Co. Limited was EUR33000000.00 equivalent to RMB274087180.86. The loan
term is from 16 December 2025 to 16 December 2027. Repayments are made on a quarterly basis.According to the repayment schedule stipulated in the loan agreement EUR3300000.00 is due on 16
June 2026 EUR16500000.00 on 16 December 2026 EUR6600000.00 on 16 June 2027 and
EUR6600000.00 on 16 December 2027. The loan carries a fixed interest rate of 1.8%. As at 31
December 2025 the outstanding balance of the aforementioned loan totalling EUR19818150.00
(equivalent to RMB163674929.95) is included in non-current liabilities due within one year.As at 31 December 2025 the Group had no long-term borrowings that were due but not yet repaid.
183 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Bonds payable
(1) Bonds payable
Unit: RMB
Item 31/12/2025 31/12/2024
Convertible corporate bonds 2107520109.67 3467944609.76
(2) Movements in bonds payable
Unit: RMB
Transfer from Interest Included non-
Issued Amortisation
Name of the Par non-current accrued as current liabilities Default
Issue date Term Issue amount 31/12/2024 in the of premiums Repayment Swap to equity 31/12/2025
bond value liabilities due per par due within one or not
year or discounts
within one year value yea
Universal
Global
4 March
Convertible 100 6 years 3450000000.00 3467944609.76 37230089.82 - 58636641.08 89252528.16 44847712.00 1470161581.60 30534465.55 2107520109.67 No
2021
Bonds
(SH:113045)
(3) Description on issuing conversion condition and conversion time of convertible corporate bonds
As approved by CSRC with "Zheng Jian Xu Ke [2021] No. 167" the Company issued 34500000 convertible
bonds at nominal value of RMB100 with annual coupon rate of 0.1% 0.2% 0.6% 1.3% 1.8% and 2.0%
respectively for the 1st year 2nd year 3rd year 4th year 5th year and 6th year and the annual interest is payable
at the date of each full year from the first date of issue of the convertible bonds in this issue. The initial conversion
price is RMB20.25 with provisions for adjustment and downward revision of the conversion price redemption
provisions and resale provisions. The convertible bonds in this issue is allowed to swap to equity from the first
trading date in the 10th month subsequent to the closing date of this issue (namely 10 March 2021) to the expiry
date of convertible bonds. Within five trading days after the expiration of the convertible bonds issued the
Company will redeem the convertible bonds not converted into shares at the price of 108.00% (including the last
interest) of the par value of the bonds.During the conversion period of this issuance of convertible bonds if the closing price of the Company's shares
on at least 20 trading days in any 30 consecutive trading days is not less than 130% (including 130%) of the
current conversion price with the approval of relevant regulatory authorities (if necessary) the Company has the
right to redeem all or part of the convertible bonds that have not been converted according to the par value of the
bonds plus the accrued interest in the current period. If the Company's share conversion price is adjusted due to
ex rights and ex dividend on the above trading days it shall be calculated according to the share conversion price
and closing price before the adjustment on the trading day before the adjustment and according to the adjusted
share conversion price and closing price on the trading day after the adjustment. In addition when the total par
value of the convertible bonds not converted into shares issued is less than RMB30 million the Company has the
right to redeem all the convertible bonds not converted into shares at the price of par value plus accrued interest
in the current period.When the convertible corporate bonds issued by the Company are initially measured the amount of the fair value
of the corresponding liability component after deducting the issuance expenses to be apportioned is
RMB3010541240.32 which is included in the bonds payable; The corresponding amount of redemption right
and put back right is RMB6900000.00 which is included in derivative financial liabilities; The amount of
issuance expenses to be apportioned for the derivative financial liabilities is RMB45397.90 which is included in
the current profit or loss; The fair value of the corresponding equity part after deducting the apportioned issuance
expenses is RMB409905205.31 which is included in other equity instruments. The amortised cost of the
adjusted liability is RMB89252528.16 withdrawn according to the effective interest rate method in the current
period.As at 31 December 2025 the Company has convertible bonds with par value of RMB1406531000.00 (carrying
amount of RMB1470296822.97) converted into A-share ordinary shares and the number of shares converted is
75698035 shares. Among them in 2025 convertible bonds with a par value of RMB1406387000.00 (carrying
amount of RMB1470161581.60) were converted into A-share ordinary shares the number of shares converted
was 75690657 shares.
184 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Lease liabilities
(1) Details of lease liabilities
Unit: RMB
Item 31/12/2025 31/12/2024
Lease liabilities 450553691.64 518712197.54
Less: Lease liabilities included in non-current liabilities due within
122527409.57141402864.11
one year (Note (V) 31)
Total 328026282.07 377309333.43
The following is the maturity analysis for lease liabilities held by the Group which is based on undiscounted
remaining contractual obligations:
Unit: RMB
Within 1 year 1-5 years Over 5 years Total
31 December 2025 138553675.90 302770852.63 66998097.28 508322625.81
31 December 2024 147775048.87 257814920.38 159558930.01 565148899.26
36. Long-term payables
Unit: RMB
Item 31/12/2025 31/12/2024
Software licensing fees (Note) 18714776.37 24263594.23
Enterprise income tax subject to Pillar Two 14535580.78 -
Less: Long-term payables due within one year 6134451.28 5914911.74
Total 27115905.87 18348682.49
Note 1: It refers to software licensing fees payable by the Group of which the portion due within one year is
recognised in accounts payable as detailed in Note (XI) 6.Note 2: The Group falls within the scope of application of the Global Anti-Base Erosion (GloBE) Rules legislative
framework (hereinafter referred to as "Pillar Two"). In 2025 the European and Vietnamese regions in
which the Group operates have implemented Pillar Two rules. Based on currently available information
the Group has assessed the potential exposure related to its financial performance for the year. However
the results of the assessment may not fully reflect future actual conditions. Based on the assessment results
due to specific tax incentives the effective tax rate under Pillar Two is below 15%. Consequently the
Group has recognised a Pillar Two tax provision of RMB14535580.78.
37. Long-term employee benefits payable
(1) Long-term employee benefits payable
Unit: RMB
Item 31/12/2025 31/12/2024
1. Post-employment benefits- net liability of defined benefit plan 173198822.51 222112153.76
2. Termination benefits 10194887.32 8759390.10
Total 183393709.83 230871543.86
185 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term employee benefits payable - continued
(2) Changes in the defined benefit plan
Net liability of the defined benefit plan
Unit: RMB
Item 2025 2024
I. Opening balance 222655327.77 266922765.59
II. Decrease due to the disposal of a subsidiary (54242788.28) -
III. Defined benefits costs recognised in profit or loss for the year 8884973.61 13160720.78
IV. Defined benefits costs recognised in other comprehensive
(15407586.23)(6670754.08)
income
V. Amount contributed and paid during the year (11837023.39) (38802695.95)
VI. Exchange differences arising on translation of foreign
22766143.32(11954708.57)
currencies
VII. Closing balance 172819046.80 222655327.77
Less: Long-term employee benefits payable due within one year 339485.23 543174.01
Planned assets reclassified to other current assets (719260.94) -
Long-term employee benefits payable paid after one year 173198822.51 222112153.76
Contents of defined benefit plans and related risks and its impact over the Group's future cash flows timing and
uncertainty:
UGSI and USI the Group's subsidiaries provide retirement benefit plan for full-time regular employees hired
before 1 July 2005. The Group acquired FAFG in 2020. FAFG provides retirement benefit plan for its employees.FAFG provides a pension for some employees who have worked for more than 10 years according to the working
years and certain rate of their salaries in recent 10 years and a pension for some employees who have worked for
more than 2 years according to the working years and certain rate of their salaries in recent 12 months. USI France
a subsidiary of the Group provides retirement benefit plan for its employees. USI France provides a pension for
some employees who have worked for more than 10 years according to the working years and certain rate of their
salaries in recent 10 years and a pension for some employees who have worked for more than 2 years according
to the working years and certain rate of their salaries in recent 12 months.The defined benefit plans expose the Group to actuarial risks such as discount rate future salary growth rate etc.The Group hired Towers Watson Business Management Consulting Co. Ltd. to estimate the present value of
retirement benefit plan of UGSI and USI by actuary in accordance with the projected unit credit method. Future
salary growth rate and mortality rate are used to estimate the future cash outflows to recognise the present value
of the plan at a discounted rate which is determined in accordance with the market interest rate of high-quality
corporate bonds at the balance sheet date. In countries where there is no market for such bonds the market interest
rate for government bonds (at the balance sheet date) shall be used. Since the Group's post-employment benefit
obligations remain effective for 9 to 10 years the discount rate is determined by reference to the bonds with a
similar duration to the post-employment benefit obligations. Therefore the average interest rate for government
bonds with a duration of 9 years or more is referenced. The Group recognises liabilities based on the actuarial
result with gains or losses arising from actuary recognised in other comprehensive income and not to be reversed
to profit or loss in subsequent accounting periods. Past service cost is included in profit or loss for the period
when the modification to the plan is made. And net interest is recognised as the amount of net liabilities or assets
of the defined benefit plan multiplying by an appropriate discount rate.
186 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term employee benefits payable - continued
(2) Changes in defined benefit plan - continued
The following table lists the significant actuarial assumptions used by UGSI and USI in determining the present
value of the defined benefit plan obligations:
31/12/202531/12/2024
Discount rate 1.40% 1.60%
Future salary growth rate 2.50% 2.25%
Assumptions made Assumptions made
based on the sixth based on the sixth
Mortality
Mortality Table in Mortality Table in
Taiwan Taiwan
Sensitive analysis as below is based on reasonable changes of corresponding assumptions at the end of the reporting
period (all other assumptions remain unchanged):
* When the discount rate is up (down) 0.5% the present value of defined benefit plan obligations of UGSI
and USI will be decreased by RMB4950350.52 (increased by RMB5225196.05) and RMB251811.29
(increased by RMB262992.96) respectively.* When the future salary growth rate is up (down) 0.5% the present value of defined benefit plan obligations
of UGSI and USI will be increased by RMB5145582.54 (decreased by RMB4925079.94) and RMB
259191.19 (decreased by RMB250469.49) respectively.
The Group hired Confera to estimate the present value of retirement benefit plan obligation of FAFG by actuary
in accordance with the projected unit credit method. Future salary growth rate is used to estimate the future cash
outflows to recognise the present value of the plan at a discounted rate.The following table lists the significant actuarial assumptions used by FAFG in determining the present value of
the defined benefit plan obligations:
31/12/202531/12/2024
Discount rate 3.5%~4.2% 3.1%~3.2%
Future salary growth rate 2.25%~2.6% 2.25%~3.5%
Life expectancy table Life expectancy table
Mortality of local National of local National
Bureau of Statistics Bureau of Statistics
Sensitive analysis as below is based on reasonable changes of corresponding assumptions at the end of the
reporting period (all other assumptions remain unchanged):
* When the discount rate is up (down) 0.5% the present value of defined benefit plan obligations of FAFG
will be decreased by RMB6735414.37 (increased by RMB7255688.26).* When the future salary growth rate is up (down) 0.5% the present value of defined benefit plan obligations
of FAFG will be increased by RMB2108770.91 (decreased by RMB2007278.03).The Group hired spac actuaires to estimate the present value of retirement benefit plan of USI France by actuary
in accordance with the projected unit credit method. Future pension payment growth rate is used to estimate the
future cash outflows to recognise the present value of the plan at a discounted rate.
187 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term employee benefits payable - continued
(2) Changes in defined benefit plan - continued
The following table lists the significant actuarial assumptions used by USI France in determining the present
value of the defined benefit plan obligations:
31/12/202531/12/2024
Discount rate 3.5% N/A
Future pension payment growth rate 2.6% N/A
Life expectancy table
Mortality of local National N/A
Bureau of Statistics
Sensitive analysis as below is based on reasonable changes of corresponding assumptions at the end of the
reporting period (all other assumptions remain unchanged):
* When the discount rate is up (down) 0.5% the present value of defined benefit plan obligations of USI
France will be decreased by RMB18499.80 (increased by RMB20325.01).* When the future pension payment rate is up (down) 0.5% the present value of defined benefit plan
obligations of USI France will be increased by RMB19234.84 (decreased by RMB17748.25).As it is unlikely that an assumption can change in an isolated manner due to correlations among certain
assumptions the sensitivity analysis above may not reflect actual changes in present value of defined benefit
plans.In the sensitivity analysis above the method used to calculate net liabilities of defined benefit plans at the end of
the period is the same with that used to recognise related liabilities in the balance sheet.Compared with previous years methods and assumptions adopted to analyse sensitivity remain unchanged.
38. Provisions
Unit: RMB
Item 31/12/2025 31/12/2024
Product warranties 49702177.15 63200068.91
Funds allocated by the government department to be
-10987000.00
refunded (Note)
Total 49702177.15 74187068.91
Note: Universal Global Technology (Huizhou) Co. Ltd. a wholly-owned subsidiary of the Company is
expected to refund the funds already allocated by the relevant government department. The refund is
expected to occur following the project's acceptance in 2026 and will be reclassified to non-current
liabilities due within one year (Notes (V) 31).
188 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Deferred income
(1) Details of deferred income
Unit: RMB
Translation
differences of
financial
Item 31/12/2024 Increase Decrease 31/12/2025 Reason
statements
denominated in
foreign currencies
Government grants 72329075.88 29550000.00 25904307.98 160709.81 76135477.71 Note (VIII) 1
Subsidies for purchase
128799.2476643.33205442.57--
of fixed assets
Total 72457875.12 29626643.33 26109750.55 160709.81 76135477.71
40. Other non-current liabilities
Other non-current liabilities refer to guarantee deposits and margins received from suppliers.
41. Share capital
Unit: RMB
Changes for the year
31/12/2024 Convertible bond to 31/12/2025
New shares issued (Note 1)
equity swap (Note 2)
Total shares 2190556466.00 13096907.00 75690657.00 2279344030.00
Note 1: In November 2015 the Company implemented the Stock Option Incentive Plan of Universal Scientific
Industrial (Shanghai) Co. Ltd. granting qualified employees a certain number of stock options to
subscribe for the Company's ordinary shares. In 2025 8130660 common shares were exercised at a
price of RMB15.54 per share. In October 2023 the Company implemented the 2023 Stock Option
Incentive Plan of Universal Scientific Industrial (Shanghai) Co. Ltd. to grant eligible employees a
certain number of stock options to subscribe for shares of the Company's common stock. In 2025
2971846 ordinary shares and 1994401 ordinary shares granted by the Company were exercised at
RMB14.27 per share and RMB14.04 per share respectively registered with the Shanghai Branch of
China Securities Depositories and Clearing Co. LTD. The total increase in share capital is
RMB13096907.00 and capital reserve is RMB183663181.86.Note 2: See Note (V) 34 for convertible bond to equity swap.
42. Other equity instruments
Unit: RMB
31/12/2024 Increase Decrease 31/12/2025
Outstanding financial
Carrying Quant Carrying Carrying Carrying
instruments Quantity Quantity Quantity
amount ity amount amount amount
Convertible corporate
34498560.00409888096.26--14063870.00203923056.5920434690.00205965039.67
bonds
Note: Other equity instruments are formed by the equity part of convertible corporate bonds issued. The
decrease for the current period includes deferred tax liabilities recognised of RMB61893000.00. For
the details see Note (V) 34.
189 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Capital reserve
Unit: RMB
Item 31/12/2024 Increase Decrease 31/12/2025
Share premium 1908714271.80 1792302355.22 - 3701016627.02
Including: Share capital invested by investors
3241483825.32183663181.86-3425147007.18
(Note V (41))
Purchase of minority interests (4405590.07) - - (4405590.07)
Differences resulting from combination
involving enterprise under common (5621108.53) - - (5621108.53)
control
Transfer of capital reserve to share
(1087961790.00)--(1087961790.00)
capital
Share-based payment exercise included
172726687.0872186847.80-244913534.88
in shareholders' equity
Cancellation of treasury shares (407652192.60) - - (407652192.60)
Exercise of convertible bonds (Note (V)
144440.601536452325.56-1536596766.16
34)
Other capital reserve 140302327.02 - 72186847.80 68115479.22
Total 2049016598.82 1792302355.22 72186847.80 3769132106.24
44. Treasury shares
Unit: RMB
Item 31/12/2024 Increase (Note 1) Decrease 31/12/2025
Employee stock ownership plan 100052846.15 133512673.74 - 233565519.89
Note 1: According to the Proposal on the Plan of Repurchase of Shares by Way of Centralised Competitive
Bidding in 2025 adopted at the Eighteenth Meeting of the Sixth Session of the Board of Directors the
Thirteenth Meeting of the Sixth Session of Supervisory Board the Company has cumulatively
repurchased 6321100 shares of the Company in the form of centralised competitive bidding from 25
April 2025 to 31 December 2025 totalling RMB133512673.74.
45. Other comprehensive income
Unit: RMB
Amount incurred in 2025
Less: Amount
previously included in Attributable
Amount Less: Attributable to
Item 31/12/2024 other comprehensive to minority 31/12/2025
incurred for the Income tax the Company
income and transferred interests
year before tax expenses after tax
to retained earnings for after tax
the period
I. Other comprehensive income that cannot be
(1343480.83)12344542.32(3114403.74)4383635.4811074142.451168.139730661.62
reclassified subsequently to profit or loss
Including: Recalculation of the changes in
(9868276.04)15407586.23(3114403.74)4383635.4814137186.361168.134268910.32
defined benefit plan
Fair value changes in other equity
8524795.21(3063043.91)--(3063043.91)-5461751.30
instrument investments
II. Other comprehensive income that will be
177709307.03(28210210.49)--(42400063.51)14189853.02135309243.52
reclassified to profit or loss
Including: Other comprehensive income that
can be reclassified to profit or loss under (28984530.01) 9343710.34 - - 9343710.34 - (19640819.67)
equity method
Translation differences of financial
statements denominated in foreign 2766388.26 213648604.76 - - 199458751.74 14189853.02 202225140.00
currencies
Hedges for net investments in
203927448.78(251202525.59)--(251202525.59)-(47275076.81)
foreign operations
Total other comprehensive income 176365826.20 (15865668.17) (3114403.74) 4383635.48 (31325921.06) 14191021.15 145039905.14
46. Surplus reserve
Unit: RMB
Item 31/12/2024 Increase Decrease 31/12/2025
Statutory surplus reserve
1049724882.30306731620.33-1356456502.63
(Note)
Note: According to the Articles of Association Universal Scientific Industrial (Shanghai) Co. Ltd. is required
to transfer 10% of its net profit in 2025 to the statutory surplus reserve. Statutory surplus reserve can be
used to cover the Company's losses expand the Company's production and operation or increase the
Company's capital.
190 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Retained profits
Unit: RMB
Item 2025 2024
Retained profits at the end of the prior year 12159024853.45 11179762376.22
Add: Net profit attributable to shareholders of the Company
1853439277.281652482815.41
for the year
Transfer changes in defined benefit plans to retained
(3114403.74)
earnings
Less: Appropriation to statutory surplus reserve (Note 1) 306731620.33 82923127.90
Dividends on ordinary shares payable (Note 2) 503587677.43 590297210.28
Retained profits at the end of the year (Note 3) 13199030429.23 12159024853.45
(1) Transfer to statutory surplus reserve
According to the Articles of Association the Company is required to transfer 10% of its net profit to the statutory
surplus reserve. The transfer may be ceased if the balance of the statutory surplus reserve has reached 50% of the
Company's registered capital.
(2) Profit distribution approved in the shareholders' meeting during the year
As proposed by the resolution of the Seventeenth Meeting of the Sixth Session of the Board of Directors of the
Company held on 28 March 2025 and approved by the Annual Shareholders' Meeting on 22 April 2025 a cash
dividend of RMB2.30 (including tax) per 10 shares will be distributed on the basis of the total share capital
registered at the equity registration date less the number of the shares repurchased by the Company from special
accounts with no bonus issue and no increase in share capital.
(3) Profit distribution based on resolutions after the balance sheet date
As proposed by the resolution of the 23rd Meeting of the 6th Session of the Board of Directors of the Company
held on 2 April 2026 a cash dividend of RMB4.30 (including tax) per 10 shares will be distributed on the basis
of the total share capital at the equity registration date less the number of the shares repurchased by the Company
from special accounts with no bonus issue and no increase in share capital. The above proposal regarding
dividends distribution is yet to be approved in a shareholders' meeting.
(4) Surplus reserve appropriated by subsidiaries
As at 31 December 2025 the balance of the Group's retained profits include appropriation to surplus reserve by
subsidiaries amounting to RMB1524004392.39 (31 December 2024: RMB1426611703.45).
48. Operating income and operating costs
(1) Details of operating income and operating costs
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024
Item
Income Costs Income Costs
Principal operating
59113244521.5153579091389.5060614675278.7254927952825.90
activities
Other operating
81811300.07490289.8075975819.381660400.12
activities
Total 59195055821.58 53579581679.30 60690651098.10 54929613226.02
191 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(2) Analysis of principal operating income and principal operating costs by product categories:
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024 (restated)
Item Principal operating Principal operating Principal operating Principal operating
income costs income costs
Consumer electronic
21299651643.1819743335613.0519202788679.8117619172017.93
products
Communication
18386356833.8216999812185.2820782446606.3119204947775.67
products
Industrial products 7585176551.35 6543063561.07 7401918253.99 6542521263.79
Cloud and storage
6082419829.054899742133.736096580972.155012146620.93
products
Automotive
4511451062.524113513480.645971513470.615496881090.19
electronic products
Medical products 376589267.21 359518329.07 333877608.87 318805428.38
Others 871599334.38 920106086.66 825549686.98 733478629.01
Total 59113244521.51 53579091389.50 60614675278.72 54927952825.90
Note: The Group has restated prior-period data due to changes in the composition of reportable segments
resulting from changes in the Group's internal product categories in 2025.
(3) Other operating income and other operating costs:
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024
Item Other operating Other operating
Other operating costs Other operating costs
income income
Scrap income 69133391.54 - 65972922.49 -
Others 12677908.53 490289.80 10002896.89 1660400.12
Total 81811300.07 490289.80 75975819.38 1660400.12
(4) Fulfilment of contractual obligations:
The Group's sales include domestic sales and export sales. The Group's performance obligation is to provide
goods to customers including consumer electronic products communication products industrial products cloud
and storage products automotive electronic products medical products and other products.The Group recognises revenue at the time when the customer obtains control of the goods. The Group recognises
sales revenue from domestic sales at the time when the goods are delivered to the warehouse designated by the
customer and the customer signs for them on the receipt while that from export sales is recognised when the
goods leave the factory when the goods are delivered to the carrier when the goods are delivered to the port
when the goods are loaded onto an aircraft or ship when the goods are delivered to the customer or to a location
designated by the customer respectively according to the specific trading terms agreed in the contract. The Group
provides product quality assurance for goods sold in accordance with legal requirements and contractual
agreements. The Group as the principal recognises revenue based on the total consideration received or
receivable.
192 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
49. Taxes and levies
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Stamp duty 20711130.58 21048478.39
Property tax 17718943.75 17518442.52
Urban maintenance and construction tax 11549336.96 46164488.17
Education surcharge 11190768.66 43631816.82
Urban land use tax 993423.14 868329.08
Others 9292852.26 8741562.75
Total 71456455.35 137973117.73
50. Selling expenses
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Staff costs 299844446.32 306108452.94
Labour costs 23081584.30 22279147.80
Insurance premiums 22173747.67 12202127.97
Depreciation and amortisation 17574655.16 18060153.77
Travel expenses 12654007.90 11247867.56
Entertainment expenses 5732437.76 4355534.88
Material consumption 4779571.95 4343527.49
Utilities 2553296.77 2209008.12
Royalty fees 106911.68 168116.77
Share-based payments - 2435273.50
Others 15718642.24 25937460.49
Total 404219301.75 409346671.29
51. Administrative expenses
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Staff costs 799126936.77 847069509.53
Labour costs and professional services fees 186026196.12 184492002.89
Depreciation and amortisation 103623753.09 130161204.37
Software costs 41958985.84 44647077.16
Renovation costs 39879702.86 39668414.38
Insurance premiums 24071172.14 21620642.77
Travel expenses 20741601.59 24387765.01
Utilities 17130823.30 15656341.07
Material consumption 8117256.78 6919108.73
Share-based payments - 4537893.13
Others 51609008.52 51354488.50
Total 1292285437.01 1370514447.54
193 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
52. Research and development expenses
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Staff costs 993598479.57 982398963.63
Material and sample costs 539675918.94 549301124.62
Depreciation and amortisation 170490661.06 173331810.22
Renovation costs 29920166.98 32115490.59
Utilities 26610622.22 19024825.87
Software costs 24770601.38 22174359.19
Labour costs 20155732.76 24042992.99
Travel expenses 19226484.46 13731691.25
Mold costs 16772364.50 23519659.33
Consumables and miscellaneous 16253459.30 12401892.28
Share-based payments - 7893689.70
Others 43798288.16 47613206.79
Total 1901272779.33 1907549706.46
53. Financial expenses
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Interest expenses 347417604.83 391009108.71
Including: Interest expenses on lease liabilities 19741101.55 21696686.25
Interest expenses on issue of convertible bonds 147889169.24 144617560.96
Less: Interest income 327615870.61 304283941.12
Exchange differences 242223315.12 215822333.26
Others 6362751.25 10103572.92
Total 268387800.59 312651073.77
54. Other income
Unit: RMB
Amount included in
Amount incurred in Amount incurred in
Classified by nature non-recurring profit or
20252024
loss for the period
Government grants 56902029.67 59889514.85 30997721.69
Additional VAT credit 1759951.03 3543135.87 -
Total 58661980.70 63432650.72 30997721.69
194 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
55. Investment income
(1) Details of investment income
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Income from long-term equity investments under equity
32772240.6833862787.66
method
Investment income of other non-current financial assets
-3124318.92
during the hold period
Investment income on disposal of long-term equity
3452633.24-
investments
Investment income on disposal of a subsidiary 48826548.27 -
Investment income on disposal of held-for-trading financial
181251395.05175989542.23
assets
Investment income on disposal of other non-current
-486553.70
financial assets
Total 266302817.24 213463202.51
56. Losses on changes in fair values
Unit: RMB
Amount incurred in Amount incurred in
Sources of gains (losses) on fair value changes
20252024
Held-for-trading financial assets (34532317.25) 19726794.19
Including: Derivative financial instruments (34532317.25) 19726794.19
Derivative financial liabilities 2024546.36 (4601434.03)
Other non-current financial assets 6596517.52 (17585980.36)
Total (25911253.37) (2460620.20)
57. Losses on impairment of credit
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Bad debt losses of accounts receivable (43359041.99) (32800121.83)
Total (43359041.99) (32800121.83)
58. Gains on impairment of assets
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Gains on decline in value of inventories 19710335.81 9655578.11
Losses on impairment of long-term equity investments (2730227.27) (9343178.82)
Losses on impairment of fixed assets (2805304.33) -
Losses on impairment of right-of-use assets (3070307.42) -
Losses on impairment of intangible assets (457877.28) -
Total 10646619.51 312399.29
59. Gains on disposal of assets
Unit: RMB
Amount included in
Amount incurred in Amount incurred in
Item non-recurring profit or
20252024
loss for the period
Gains on disposal of non-current
162693514.888335633.43162693514.88
assets
Less: Losses on disposal of non-
2316349.62804348.342316349.62
current assets
Total 160377165.26 7531285.09 160377165.26
195 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
60. Non-operating income
Unit: RMB
Amount included in
Amount incurred in Amount incurred in
Item non-recurring profit or
20252024
loss for the period
Insurance claims 29066499.68 - 29066499.68
Sporadic income 36786452.50 25287666.76 36786452.50
Total 65852952.18 25287666.76 65852952.18
61. Non-operating expenses
Unit: RMB
Amount included in
Amount incurred in Amount incurred in
Item non-recurring profit or
20252024
loss for the period
Late fees arising from tax
19128013.42-19128013.42
adjustments for prior periods
Losses on retirement of non-
9331307.912429573.979331307.91
current assets
Others 2471230.93 41523170.25 2471230.93
Total 30930552.26 43952744.22 30930552.26
62. Income tax expenses
(1) Statement of income tax expenses
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Current tax expenses 402768210.20 327027432.67
Annual filing differences of income tax (15665556.78) (24220221.26)
Deferred tax expenses (76579419.54) (93159836.66)
Total 310523233.88 209647374.75
(2) Reconciliation of income tax expenses to the accounting profit
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Total profit 2139493055.52 1853816573.41
Applicable tax rate 15% 15%
Income tax expenses calculated at an applicable tax rate 320923958.33 278072486.01
Effect of non-deductible costs expenses and losses 39248677.80 23957218.76
Effect of non-taxable income (27701066.14) (9975565.89)
Tax effect of additional deductible expenses (120863793.03) (109330481.25)
Effect of deductible temporary difference or deductible loss
14192127.1258819396.28
not recognised for deferred tax assets for the year
Effect of utilising deductible temporary differences or
deductible loss not recognised for deferred tax assets for (6731703.36) (988362.81)
prior period
Additional levy on undistributed surplus of subsidiaries 25545256.37 8148356.59
Annual filing differences of income tax (15665556.78) (24220221.26)
Effect of different tax rates applied by subsidiaries 81946180.39 (9731565.63)
Effect of changes in income tax rates of subsidiaries on the
-(5685309.76)
opening balance of deferred tax assets
Others (370846.82) 581423.71
Income tax expenses 310523233.88 209647374.75
196 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Items in the cash flow statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Interest income 319174548.84 302079461.47
Subsidy income 40874365.02 80006553.03
Advanced payment 37391152.68 13375646.14
Receivable from former shareholders of Hirschmann - 64411136.21
Service and purchase rebates received - 15510867.66
Customs deposit received 46230.00 497311.91
Others (Note) 32772424.34 45978480.08
Total 430258720.88 521859456.50
Note: It mainly refers to sporadic income.Other cash payments relating to operating activities
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Other expenses paid 478115994.12 563810586.52
Payment of advances 24431022.02 60340884.31
Customer deposits returned - 7761396.43
Total 502547016.14 631912867.26
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Principal of financial products 10014000000.00 14156000000.00
Cash payments relating to significant investing activities
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Principal of financial products 10014000000.00 14156000000.00
197 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Items in the cash flow statement - continued
(3) Cash relating to financing activities
Other cash payments relating to financing activities
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Payment of lease principal and interest 139972225.22 177993783.75
Repurchase of treasury shares 133512673.74 100052846.15
Others 48655.63 145728.93
Total 273533554.59 278192358.83
Movements in various liabilities arising from financing activities
Unit: RMB
Increase Decrease
Item 31/12/2024 Non-cash Non-cash 31/12/2025
Cash movement Cash movement
movement movement
Short-term
3676702163.108630582389.88111789957.579168537765.90280255861.022970280883.63
borrowings
Dividends
--503587677.43503587677.43--
payable
Long-term
borrowings
(including
44930605.68274087180.864675719.1517966527.74-305726977.95
those due
within one
year)
Bonds
payable
(including
3505174699.58-147889169.2444847712.001470161581.602138054575.22
those due
within one
year)
Lease
liabilities
(including
518712197.54-71813719.32139972225.22-450553691.64
those due
within one
year)
Total 7745519665.90 8904669570.74 839756242.71 9874911908.29 1750417442.62 5864616128.44
(4) Description of cash flow presented on a net basis
Unit: RMB
Basis for presenting on a
Item Relevant facts Financial impact
net basis
Accounting Standards for
Other cash receipts relating Business Enterprises No.31
Cash received or The net cash flow presented
to operating activities / - Cash Flow Statements
paid by the Group on a net basis in the year is
other cash payments stipulates that cash
on behalf of a payment of
relating to operating received or paid on behalf
customers RMB12960130.66.activities of customers can be
presented on a net basis.
198 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information 2025 2024
1. Reconciliation of net profit to cash flows from
operating activities:
Net profit 1828969821.64 1644169198.66
Add: Gains on impairment of assets (10646619.51) (312399.29)
Losses on impairment of credit 43359041.99 32800121.83
Depreciation of investment properties 279757.48 279757.50
Depreciation of fixed assets 1058168883.92 989675478.31
Depreciation of right-of-use assets 130389943.85 159978006.20
Amortisation of intangible assets 58949145.71 84853846.65
Amortisation of long-term prepaid expenses 35248719.01 89259727.65
Amortisation of deferred income (26109750.55) (21920554.72)
Gains on disposal of fixed assets intangible assets
(160377165.26)(7531285.09)
and other long-term assets
Losses on retirement of fixed assets 9331307.91 2429573.97
Losses on changes in fair values 25911253.37 2460620.20
Financial expenses 444463446.31 269039772.55
Investment income (266302817.24) (213463202.51)
Equity-settled share-based payments - 17755000.00
Increase in deferred tax assets (16915011.26) (68514575.31)
Decrease in deferred tax liabilities (22547756.40) (23125324.81)
Increase (decrease) in inventories (505491486.67) 601814740.23
Increase (decrease) in operating receivables (81788394.07) 117948421.46
Decrease (increase) in operating payables (140965356.97) 532669688.07
Net cash flow from operating activities 2403926963.26 4210266611.54
2. Significant investing and financing activities that do
not involve cash receipts and payments:
Acquisition of long-term assets with debts 284186599.91 313707505.97
Increase in right-of-use assets 95577935.39 56887011.64
Convertible corporate bonds due within one year 30534465.55 37230089.82
3. Net changes in cash and cash equivalents:
Closing balance of cash 13206245747.15 12462292758.14
Less: Opening balance of cash 12462292758.14 11184292778.70
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 743952989.01 1277999979.44
199 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Supplementary information to the cash flow statement - continued
(2) Net cash receipts from disposal of subsidiaries for the period
Unit: RMB
Amount
Cash and cash equivalents received from disposal of subsidiaries for the period 353733106.47
Less: Cash and cash equivalents held by the Company on the date of loss of control 212817741.35
Net cash receipts from disposal of subsidiaries 140915365.12
(3) Composition of cash and cash equivalents
Unit: RMB
Item 31/12/2025 31/12/2024
I. Cash 13206245747.15 12462292758.14
Including: Cash on hand 100090.67 129778.49
Bank deposits that are readily available for
13206145656.4812462162979.65
payment
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 13206245747.15 12462292758.14
(4) Cash and bank balances not included in cash and cash equivalents
Unit: RMB
Item 31/12/2025 31/12/2024 Reason
Interest receivable on
Cash and bank balances 21090842.01 12649520.24
demand bank deposits
Bank deposits 44800.00 - Time deposits
Other cash and bank
11868874.00 11912876.00 Customs deposits
balances
Other cash and bank Frozen funds due to
1643619.86502688.09
balances litigation
The consolidated 34648135.87 25065084.33
200 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing balance of Closing balance of
Item Exchange rate
foreign currency RMB equivalent
Cash and bank balances
Including: RMB 293912372.19 1.0000 293912372.19
USD 606612247.00 7.0288 4263756161.71
EUR 4301376.86 8.2588 35524211.21
HKD 1234531.03 0.9032 1115028.42
JPY 12200155.00 0.0448 546566.94
MXN 22556569.51 0.3912 8824129.99
TND 8201748.12 2.4459 20060655.73
PLN 66198.48 1.9497 129067.18
VND 93845956624.33 0.0003 28153786.99
Accounts receivable
Including: RMB 122439635.76 1.0000 122439635.76
USD 853545907.21 7.0288 5999403472.60
EUR 7775565.27 8.2588 64216838.45
MXN 830664.06 0.3912 324955.78
TND 10989.62 2.4459 26879.51
PLN 749081.09 1.9497 1460483.40
Other receivables
Including: RMB 300000.00 1.0000 300000.00
USD 2810620.29 7.0288 19755287.89
EUR 76466.04 8.2588 631517.73
HKD 28297.09 0.9032 25557.93
MXN 4940086.41 0.3912 1932561.80
VND 11693250858.00 0.0003 3507975.26
GBP 5013.00 9.4379 47312.19
CZK 103058.70 0.3408 35122.40
PLN 897651.65 1.9497 1750151.42
TND 2133069.07 2.4459 5217273.64
Short-term borrowings
Including: EUR 240404744.89 8.2588 1985454707.10
201 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Foreign currency monetary items - continued
(1) Foreign currency monetary items - continued
Unit: RMB
Closing balance of Closing balance of
Item Exchange rate
foreign currency RMB equivalent
Accounts payable
Including: RMB 150012687.94 1.0000 150012687.94
USD 891136857.74 7.0288 6263622745.68
EUR 2371884.55 8.2588 19588920.12
HKD 792633.88 0.9032 715906.92
JPY 286195391.00 0.0448 12821553.52
MXN 403231547.25 0.3912 157744181.28
VND 168043227925.00 0.0003 50412968.38
GBP 1685893.30 9.4379 15911292.38
PLN 53851991.58 1.9497 104995227.98
TND 480595.49 2.4459 1175488.51
CZK 2241449.58 0.3408 763886.02
Other payables
Including: RMB - 1.0000 -
USD 33033847.00 7.0288 232188303.79
EUR 225612.43 8.2588 1863287.94
HKD 120350.00 0.9032 108700.12
MXN 55946963.19 0.3912 21886452.00
VND 39782542589.00 0.0003 11934762.78
PLN 3680077.11 1.9497 7175046.34
TND 2242290.06 2.4459 5484417.26
CZK 1243597.42 0.3408 423818.00
Non-current liabilities due within
one year
Including: EUR 19818150.00 8.2588 163674137.22
Long-term borrowings
Including: EUR 13181850.00 8.2588 108866262.78
202 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Foreign currency monetary items - continued
(2) Description of overseas operating entities
Principal
Functional
Full name of the subsidiary operation Basis of selection
currency
place
Universal Global Technology Co. Limited Major currencies used in operating and
Hong Kong USD
("UGT") financing activities
Universal Global Electronics Co. Limited Major currencies used in operating
Hong Kong USD
("UGE") activities
Universal Scientific Industrial Vietnam Major currencies used in operating and
Vietnam USD
Company Limited financing activities
Universal Global Scientific Industrial Co. Ltd. Taiwan TWD Currency in major economic environment
Universal Scientific Industrial Co. Ltd. Taiwan TWD Currency in major economic environment
Universal Scientific Industrial De México S.A. Major currencies used in operating and
Mexico USD
De C.V. financing activities
Universal Global Industrial Co. Limited Major currencies used in operating
Hong Kong USD
("UGI") activities
USI America Inc. USA USD Currency in major economic environment
USI Japan Co. Ltd. Japan JPY Currency in major economic environment
Universal Scientific Industrial (France) France EUR Currency in major economic environment
Major currencies used in operating and
ASTEELFLASH MEXICO S.A. de C.V. Mexico USD
financing activities
ASTEELFLASH FRANCE France EUR Currency in major economic environment
ASTEELFLASH (BEDFORD) LIMITED England GBP Currency in major economic environment
ASTEELFLASH GERMANY GmbH Germany EUR Currency in major economic environment
ASTEELFLASH HERSFELD GmbH Germany EUR Currency in major economic environment
Major currencies used in operating
USI Asteelflash Poland Sp. z o.o. Poland USD
activities
Hirschmann Car Communication Holding
Luxembourg EUR Currency in major economic environment
S.a.r.l.(Note 1)
Major currencies used in operating
ASTEELFLASH TUNISIE S.A. Tunisia EUR
activities
Czech
ASTEELFLASH PLZEN S.R.O. EUR Currency in major economic environment
Republic
ASTEELFLASH TECHNOLOGIE France EUR Currency in major economic environment
ASTEELFLASH BRETAGNE France EUR Currency in major economic environment
ASTEELFLASH DESIGN SOLUTIONS
Germany EUR Currency in major economic environment
HAMBOURG GmbH
ASTEELFLASH USA CORP. USA USD Currency in major economic environment
Note 1: On 25 April 2025 the Group entered into a share transfer agreement with Real Tech Holdings Limited
an indirect controlling shareholder of the Group to transfer the Group's 75.1% equity interest in its
subsidiary Universal Ample Technology Co. Limited ("Universal Ample Technology") for a
consideration of USD49783000. On 1 September 2025 the aforementioned equity transfer was
completed resulting in the loss of control over Universal Ample Technology and its subsidiary
Hirschmann Car Communication Holding S.a.r.l. For further details please refer to Note (VI).
66. Hedge
Disclose by category the following information of hedge items and related hedging instruments the qualitative
and quantitative information of hedged risks:
203 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Hedge - continued
The Group acquired FAFG through USI France under Universal Global Technology Co. Limited its wholly-
owned subsidiary in order to expand its global operations and market layout in electronic design and
manufacturing. The Group's net investment in FAFG's foreign operations with EUR as the functional currency is
exposed to risks of exchange rate changes in EUR. The Group uses loan contracts in EUR to manage the foreign
exchange risk of the net investment in FAFG's foreign operations. The Group's foreign borrowings are in EUR
which is also the functional currency of FAFG. The exchange rate of EUR is the basic variable for both the
hedging instrument (short-term borrowings) and the hedged item (the Group's net investment in foreign operations
of FAFG). The Group designates the overall foreign exchange risk component of short-term as the hedging
instrument and designates a portion of the Group's net investment in foreign operations of FAFG as the hedged
item which are equal in quantity. The Group uses hedges for net investment in foreign operations.Hedging instrument
A summary of hedging instrument:
Unit: EUR
31/12/2025
Hedging instrument After 12
Within 6 months 6 to 12 months
months
Hedges for net investment in foreign operations (Note (V) 24)
Nominal
Currency risk -Short-term borrowings in EUR 228500000.00 - -
amount
Unit: RMB
31/12/202531/12/20252025
Items presented for
Carrying amount of the hedging Changes in fair
assets and liabilities
Nominal amount of the instrument value of the
that include hedging
hedging instrument invalid part of
Assets Liabilities instruments
hedge
Hedges for net investments in
foreign operations
Currency risk -Short-term Short-term
1887144940.00-1887144940.00-
borrowings in EUR borrowings
Details of hedged items:
Unit: RMB
Carrying amount of hedged items Changes in fair
Items presented in the Hedge reserve for
at 31/12/2024 value of the
Balance Sheet that net investment in
invalid part of
include hedged foreign operations
Assets Liabilities hedged items
instruments at 31/12/2025
in 2025
Hedges for net investments in
foreign operations
Net investment in
Currency risk - Long-term equity
1887144940.00 - FAFG's foreign - (47275076.81)
investments
operations
Hedge effect
Unit: RMB
2025 2025 Amount
Changes in hedge The invalid reclassified from Items listed in Items listed in the
reserves for net part of hedge hedge reserves for the Income income statement
Hedges for net investments in investment in foreign included in net investment in Statement including invalid
foreign operations operations of hedging profit or loss foreign operations including part of hedge
instruments included for the to profit or loss for reclassification recognised
in other current the current period adjustment
comprehensive income period in 2025
Currency risk -Short-term
(251202525.59) - N/A N/A N/A
borrowings in EUR
204 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VI) CHANGES IN SCOPE OF CONSOLIDATION
1. Disposal of a subsidiary
Loss of control over a subsidiary
Unit: RMB
Carrying
The difference amount of
Gains or Methodology and The amount of
between the the Fair value of
losses key assumptions other
disposal remaining the remaining
Disposal Disposal Percentage arising for determining comprehensive
Basis for proceeds and the equity equity interest
ratio (%) method (%) of from the the fair value of income related to
Consideration for determination share of the interest in in the
The point in time at (the point in (the point remaining remeasure the remaining equity investments
Name of the disposal (the point (the point in subsidiary's net the consolidated
which the control is time at in time at equity as of ment of equity interest in in the former
subsidiary in time at which time at which assets at the consolidated financial
lost which the which the the date of the the consolidated subsidiary
the control is lost) the control is consolidated financial statement
control is control is loss of remaining financial transferred to
lost) financial statement level as of the
lost) lost) control equity statement level as investment income
statement level level as of date of loss of
interest at of the date of loss or loss or retained
corresponding to the date of control
fair value of control earnings
the investment loss of
control
Upon
completion of
the
registration of
the change in
Universal equity
Ample ownership and
Transfer
Technology when no
pursuant
Co. Limited 1 September 2025 353733106.47 75.10 longer 12216032.38 - - - - N/A 33496112.15
to the
("Universal participating
agreement
Ample in the
Technology") Universal
Ample
Technology's
decision-
making and
management
205 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
1. Disposal of a subsidiary - continued
Other explanations:
On 25 April 2025 the Group entered into an equity transfer agreement with Real Tech Holdings Limited an indirect controlling shareholder of the Group to transfer the Group's
75.1% equity interest in its subsidiary Universal Ample Technology for a consideration of USD49783000 equivalent to RMB353733106.47. On 1 September 2025 the Group
lost control of its subsidiary Universal Ample Technology and other comprehensive income related to the defined benefit plan of the former subsidiary was transferred to
retained earnings in the amount of RMB-3114403.74.
2. Other reasons for changes in scope of consolidation
Principal Currency of Shareholding
Full name of the Registered Nature of
place of registered Place of registration ratio (%) Acquisition method
subsidiary capital business
operation capital Direct Indirect
The Group acquired
Room 101 Building 2 No. 1558 the subsidiary
Universal Optoeletronics
Shanghai RMB 60000000.00 Zhangdong Road China Investment 100 - through an
Co. Ltd.(Shanghai) Pilot Free Trade Zone investment in
October 2025
206 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VII) INTERESTS IN OTHER ENTITIES
1. Equity in major subsidiaries
(1) Composition of the Group
Principal Currency of Proportion of
Registered Acquisition
Full name of subsidiary operation registered Place of incorporation Nature of business shareholding (%)
capital method
place capital Direct Indirect
Production and
Acquisition
Universal Global Electronics No.501 Long Gui Road China (Shanghai) sales product
Shanghai RMB 1330000000.00 100 - through
(Shanghai) Co. Ltd. Pilot Free Trade Zone design and research
establishment
development
Acquisition
Universal Global Technology No.497 Huangpujiang Road Qiandeng
Kunshan RMB 550000000.00 Production and sales 100 - through
(Kunshan) Co. Ltd. Town Kunshan City Jiangsu Province
establishment
Production and
Acquisition
Universal Global Scientific No. 141 Lane 351 Sec. 1 Taiping Road sales product
Taiwan TWD 1980000000.00 - 100 through
Industrial Co. Ltd Caotun Town Nantou County Taiwan design and research
establishment
development
Acquisition
through business
Production and
Universal Scientific Industrial No. 141 Lane 351 Sec. 1 Taiping Road combinations
Taiwan TWD 1399727400.00 sales product - 100
Co. Ltd Caotun Town Nantou County Taiwan involving
maintenance
enterprises under
common control
Room A 7th Floor Yuen Long Hi-Tech Acquisition
Universal Global Technology Trade and
Hong Kong USD 524803000.00 Centre No. 11Wang Yip Street West 100 - through
Co. Limited investment
Yuen Long New Territories Hong Kong establishment
Room 2702-3 27th Floor Bank of East Acquisition
Universal Global Industrial Trade and
Hong Kong USD 51000000.00 Asia Harbour Centre No. 56 Gloucester - 100 through
Co. Limited investment
Road Wanchai Hong Kong establishment
Acquisition
through business
Huanxu Electronics Park North of Hi-Tech
USI Electronics (Shenzhen) combinations
Shenzhen USD 75000000.00 Park Nanshan District Shenzhen City Production and sales 50 50
Co. Ltd. involving
Guangdong Province
enterprises under
common control
Acquisition
through business
Sumitomo Fudosan Shin-yokohama Bldg. Product
combinations
USI Japan Co. Ltd. Japan JPY 95000000.00 10F 2-5-5. Shin-yokohama maintenance and - 100
involving
Kouhoku-ku Yokohama Japan related services
enterprises under
common control
Acquisition
Contractual
through business
Anillo Periferico Manuel Gomez Morin No. manufacturing
Universal Scientific Industrial combinations
Mexico MXN 2293299926.00 656 Jardines de Santa Isabel CP44300 product - 100
De México S.A. De C.V. involving
Guadalajara Jalisco México maintenance and
enterprises under
related services
common control
Acquisition
Universal Global Technology
Huizhou RMB 800000000.00 No.369 Xinhe Avenue Daya Wan Huizhou Production and sales 100 - through
(Huizhou) Co. Ltd.establishment
Acquisition
Universal Scientific Industrial
France EUR 321374822.00 1 Rue Royale 92210 Saint-Cloud Investment - 100 through
(France)
establishment
Land Plot CN4.1H Dinh Vu Industrial Production and
Acquisition
Universal Scientific Industrial Zone Dinh Vu – Cat Hai Economic sales product
Vietnam USD 115000000.00 - 100 through
Vietnam Company Limited Zone Dong Hai 2 Ward Hai An design and research
establishment
District Hai Phong City Vietnam development
Product design and
101 USI Electronics Factory Gaoxin North
research Acquisition
USI Science and Technology District Songpingshan North Ring Road
Shenzhen RMB 15000000.00 development Real - 100 through
(Shenzhen) Co. Ltd. Songpingshan Community Xili Street
estate development establishment
Nanshan District Shenzhen
and operation
Acquisition
through business
combinations not
FINANCIèRE AFG S.A.S. France EUR 183649562.80 1 Rue Royale 92210 Saint-Cloud Production and sales 10.42 89.58
involving
enterprises under
common control
Acquisition
through business
8 Gutang Road Wujiang Economic and combinations not
Asteelflash Suzhou Co. Ltd. Suzhou USD 18000000.00 Production and sales - 100
Technological Development Zone involving
enterprises under
common control
Acquisition
through business
Product
5201 GREAT AMERICA PARKWAY combinations
USI America.Inc. USA USD 9500000.00 maintenance and - 100
SUITE 450 SANTA CLARA CA 95054 involving
related services
enterprises under
common control
207 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VII) INTERESTS IN OTHER ENTITIES - continued
2. Equity in joint ventures or associates
(1) Significant associate
Shareholding Accounting
Principal ratio (%) treatments for
Name of joint
operation Place of registration Nature of business investments in
venture Indirec
place Direct joint ventures or
t
associates
I. Associate
1 Marina Boulevard #28-00
M-Universe Singapore Production and sales - 42.23 Equity method
Singapore
(2) Key financial information of the significant associate
Unit: RMB
M-Universe
31/12/2025/Amount 31/12/2024/Amount
incurred in 2025 incurred in 2024
Current assets 1213677195.77 1220705334.40
Including: Cash and cash equivalent 244588182.40 194122742.00
Non-current assets 516952058.62 523399712.56
Total Assets 1730629254.39 1744105046.96
Current liabilities 436017550.40 485224188.40
Non-current liabilities 43620584.00 51490661.38
Total Liabilities 479638134.40 536714849.78
Minority interests - -
Equity attributable to shareholders of the Company 1250991119.99 1207390197.18
Share of net assets calculated based on shareholding proportion 528293549.97 509880880.27
Carrying amount of equity investments in associates 528293549.97 509880880.27
Fair value of equity investments in joint ventures where there is a
N/A N/A
quoted price
Operating income 1395016024.00 1510123066.10
Net profit 78796653.52 89992799.83
Net profit attributable to owners of the Company 78796653.52 89992799.83
Other comprehensive income attributable to owners of the
22125764.48(16236058.30)
Company net of tax
Total comprehensive income attributable to owners of the
100922418.0073756741.53
Company
Dividends declared from associates in the period (Note (V) 11) 12402248.74 6884831.63
208 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VII) INTERESTS IN OTHER ENTITIES - continued
2. Equity in joint ventures or associates - continued
(3) Summary financial information of insignificant joint ventures and associates
Unit: RMB
31/12/2025/Amount 31/12/2024/Amount
Joint venture: MUtek Electronics
incurred in 2025 incurred in 2024
Total carrying amount of investments - 2709233.30
Total of the followings in proportion to shareholdings (58092.32) (681438.59)
Net losses (58092.32) (681438.59)
Other comprehensive income - -
Total comprehensive income (58092.32) (681438.59)
Associate: Questyle Audio Technology Co. Ltd.Total carrying amount of investments N/A 3902360.54
Total of the followings in proportion to shareholdings (445493.78) (3459733.12)
Net losses (445493.78) (3459733.12)
Other comprehensive income - -
Total comprehensive income (445493.78) (3459733.12)
(4) There are no significant limitations over the ability of joint ventures or associates to transfer funds to the
Group.
(5) According to the Joint Investment Contract signed by UGSI and Merry Electronics UGSI proposed to
contribute TWD191100000.00 to MUtek Electronics. As at 31 December 2025 the capital subscription
of TWD161700000.00 (31 December 2024: TWD161700000.00) equivalent to RMB36161532.29
(31 December 2024: RMB35454149.15)) was unpaid.
(6) The Group has no contingent liabilities relating to investments in joint ventures and associates.
209 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VIII) Government grants
1. Liabilities items involving government grants
Unit: RMB
Translation
differences of
Amount of
Amount financial
grants newly Other Related to
Item 31/12/2024 recognised in other statements 31/12/2025
increased in the changes assets/income
income in the year denominated in
year
foreign
currencies
Deferred income
Update and reform item for testing
equipment for miniaturised - 19750000.00 705357.21 - - 19044642.79 Asset-related
communication components
Ultra-high resolution TWS earphone chip
module technology research and
19510624.45 - 5822738.56 - - 13687885.89 Asset-related
development and industrialisation
projects
Technology reform item for ultra-thin
communication module deep intelligent 17644445.99 - 6726870.91 - - 10917575.08 Asset-related
production line
Government grants for the twelfth batch of
high quality special projects 1053969.95 7640000.00 748034.56 - - 7945935.39 Asset-related
(technological transformation)
Suzhou industrial enterprises effective
5097645.75 2160000.00 1716984.59 - - 5540661.16 Asset-related
investment award projects
Display and touch chip module
technology research and development 5432929.32 - 1588403.42 - - 3844525.90 Asset-related
and industrialisation projects
Special development fund for the project
on improvement of mobile module of
3809843.23 - 701445.80 - - 3108397.43 Asset-related
UWB spatial perception technology in
the Free Trade Zone in 2024
High-speed Wi-Fi technical improvement
3390533.49 - 1152786.12 - - 2237747.37 Asset-related
projects
Intelligent transformation projects of the
2735270.96 - 536748.48 - - 2198522.48 Asset-related
production line of USI
Government grants for the sixth batch of
high quality special projects 4738390.37 - 2547142.20 - - 2191248.17 Asset-related
(technological transformation)
Government grant income from matching
funds for key transformation projects
3825000.00 - 2063250.00 - - 1761750.00 Asset-related
for the automation of the production of
smart wearable products
Tunisia investment subsidy projects 1907309.83 - 363641.56 - 160709.81 1704378.08 Asset-related
2022 Provincial Special project fund for
Intelligent Manufacturing 2672692.95 - 1033401.37 - - 1639291.58 Asset-related
Demonstration Plant
Kunshan Bureau of Industry and
Information Technology Suzhou Smart 510419.59 - 197503.20 - - 312916.39 Asset-related
Factory government subsidy
Total 72329075.88 29550000.00 25904307.98 - 160709.81 76135477.71
210 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(VIII) Government grants - continued
2. Government grants included in profit or loss for the period
Unit: RMB
Grant items Amount incurred in 2025 Amount incurred in 2024
Other income
Economic grants for the headquarters of Zhangjiang Science
9750000.0013000000.00
City Construction Management Office
French government grants for science and technology research 4035419.68 3549267.78
Jiangsu Province's interest subsidy program to support major
2000000.00-
exporters to the United States
Training allowance for workers in Kunshan 1901300.00 1300700.00
Special fund for the first demonstration and promotion of the
new generation telecommunications industry in Pudong New 1898407.08 -
Area
Social insurance subsidies 1560381.37 3137473.71
VAT deduction for enterprises employing poor people with
1469000.00-
established cards
Guangdong Provincial fund for cultivating key foreign trade
1300000.00-
enterprises
Refund of services charges for individual income tax 1068501.07 1601613.80
Subsidy for named class of Kunshan 984000.00 1006000.00
Job stabilisation subsidies 844605.00 1002860.21
Special subsidies for business development 560365.00 64333.00
Supporting funds for securing and nurturing businesses 100000.00 2500000.00
Government grants for 2023 Free Trade Zone projects - 3989580.00
Special subsidies for local education surcharge in Pudong New
-1028880.00
Area
Awards for first breakthrough in energy level upgrade project in
-1000000.00
smart factory and awards for smart factory
Financial subsidies for employee training - 928560.00
Special development fund for National Independent Innovation
-531000.00
Demonstration Zone
Compliance assessment project on maturity standard of
-500000.00
intelligent manufacturing capability in 2023
Municipal energy saving technical improvement supporting
-240000.00
funds
Others 3525742.49 4213428.56
Subtotal 30997721.69 39593697.06
Amortisation of government grants related to assets (Note (VIII)
25904307.9820295817.79
1)
Total 56902029.67 59889514.85
211 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IX) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances held-for-trading financial assets notes
receivable accounts receivable other receivables non-current assets due within one year long-term receivables
other equity instrument investments other non-current financial assets certain other non-current assets
borrowings derivative financial liabilities accounts payable other payables certain non-current liabilities due
within one year bonds payable certain long-term payables and other non-current liabilities etc. Details of these
financial instruments are disclosed in Note (V). Risks associated with these financial instruments and the policies
on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure
the risks are monitored at a certain level.Unit: RMB
31/12/202531/12/2024
Financial assets
Measured at FVTPL
Held-for-trading financial assets 9800747.96 42291303.91
Other non-current financial assets 186517853.51 201093233.84
Subtotal 196318601.47 243384537.75
Measured at FVTOCI
Other equity instrument investments 13587010.31 22769795.62
Subtotal 13587010.31 22769795.62
Measured at amortised cost
Cash and bank balances 13240893883.02 12487357842.47
Notes receivable 109607255.52 79450682.42
Accounts receivable 10029923095.52 10255502444.64
Other receivables 123820937.01 134298737.44
Non-current assets due within one year - 130008.72
Long-term receivables 14158877.21 13787074.59
Other non-current assets 25865976.22 21740962.14
Subtotal 23544270024.50 22992267752.42
Total financial assets 23754175636.28 23258422085.79
Financial liabilities
Measured at FVTPL
Derivative financial liabilities 2750760.31 4775306.67
Measured at amortised cost
Short-term borrowings 2970280883.63 3676702163.10
Accounts payable 10985186371.23 11055392929.15
Other payables 680880218.16 691283564.96
Non-current liabilities due within one year 221714075.50 52288580.46
Long-term borrowings 125534368.00 29872115.04
Bonds payable 2107520109.67 3467944609.76
Long-term payables 27115905.87 18348682.49
Other non-current liabilities 1799639.99 1317464.14
Subtotal 17120031572.05 18993150109.10
Total financial liabilities 17122782332.36 18997925415.77
212 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IX) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
The Group adopts sensitivity analysis techniques to analyse how the profit or loss for the period and shareholders'
equity would have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely
that risk variables will change in an isolated manner and the interdependence among risk variables will have a
significant effect on the amount ultimately influenced by the changes in a single risk variable the following are
based on the assumption that the change in each risk variable is on a stand-alone basis.
1. Risk management objectives and policies
The Group's risk management objectives are to achieve a proper balance between risks and yield minimise the
adverse impacts of risks on the Group's operation performance and maximise the benefits of the shareholders and
other equity investors. Based on these risk management objectives the Group's basic risk management strategy
is to identify and analyse the Group's exposure to various risks establish an appropriate maximum tolerance to
risk implement risk management and monitor regularly and effectively these exposures to ensure the risks are
monitored at a certain level.
1.1. Market risk
1.1.1. Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure
to the currency risk is primarily associated with USD and EUR. The Group's subsidiaries located in China have
some purchases sales and financing activities denominated in USD and EUR while other principal activities are
denominated and settled in RMB. The Group's subsidiaries located in Taiwan have some purchases and sales
denominated in USD and EUR while other principal activities are denominated and settled in TWD; The Group's
subsidiaries located in Japan have some purchases and sales denominated in USD while other principal activities
are denominated and settled in JPY; The Group's subsidiaries located in Hong Kong have some financing
activities denominated in EUR while other principal activities are denominated and settled in USD; The Group's
subsidiary USI Poland located in Europe has some purchases and sales denominated in USD and EUR while
other principal activities are denominated and settled in USD; The Group's other subsidiaries located in Europe
have principal activities denominated and settled in EUR; The Group's subsidiaries located in America and
Mexico have activities denominated and settled in USD. As at 31 December 2025 and 31 December 2024 the
balance of the Group's significant assets and liabilities set out below are both denominated in foreign currencies
(non-functional currency and translated to RMB). Currency risk arising from the assets and liabilities denominated
in foreign currencies may have an impact on the Group's performance.Unit: RMB'000
Item 31/12/2025 31/12/2024
USD
Cash and bank balances 4263756 4923918
Accounts receivable 5999403 6740319
Other receivables 19755 14416
Short-term borrowings - (124018)
Accounts payable (6263623) (7439111)
Other payables (232188) (200319)
Subtotal 3787103 3915205
213 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IX) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.1. Currency risk - continued
Unit: RMB'000
Item 31/12/2025 31/12/2024
EUR
Cash and bank balances 35524 25083
Accounts receivable 64217 31934
Other receivables 632 188
Short-term borrowings (1985455) (2546076)
Accounts payable (19589) (386)
Other payables (1863) (1492)
Non-current liabilities due within one year (163674)
Long-term borrowings (108866) -
Subtotal (2179074) (2490749)
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk
exposures and uses foreign currency forward contracts and hedges for net investment in foreign operations to
reduce part of the currency exposures.Sensitivity analysis on currency risk
On the basis of the assumption that all hedges for net investments in foreign operations are highly effective where
all other variables are held constant reasonably possible changes in the foreign exchange rate may have the
following pre-tax effect on the profit or loss for the year and shareholders' equity:
Unit: RMB'000
20252024
Effect on Effect on
Item Changes in exchange rate
Effect on profit shareholders' Effect on profit shareholders'
equity equity
USD 5% appreciation against RMB 94759 94759 105541 105541
USD 5% depreciation against RMB (94759) (94759) (105541) (105541)
USD 5% appreciation against TWD 94518 94518 95650 95650
USD 5% depreciation against TWD (94518) (94518) (95650) (95650)
USD 5% appreciation against EUR 14748 14748 21112 21112
USD 5% depreciation against EUR (14748) (14748) (21112) (21112)
USD 5% appreciation against JPY 2 2 2 2
USD 5% depreciation against JPY (2) (2) (2) (2)
USD 5% appreciation against GBP 411 411 160 160
USD 5% depreciation against GBP (411) (411) (160) (160)
EUR 5% appreciation against RMB 698 698 457 457
EUR 5% depreciation against RMB (698) (698) (457) (457)
EUR 5% appreciation against TWD (92) (92) (187) (187)
EUR 5% depreciation against TWD 92 92 187 187
EUR 5% appreciation against GBP (120) (120) (85) (85)
EUR 5% depreciation against GBP 120 120 85 85
214 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IX) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.2. Interest rate risk - risk of changes in cash flows
The Group's cash flow interest rate risk of financial instruments relates primarily to variable-rate bank borrowings
(see Note (V) 24 for details). The Group closely monitors the effects of changes in interest rates on the Group's
interest rate risk exposures. It is the Group's policy to keep its borrowings at variable-rate of interests with no
other arrangements such as interest rate swaps.Sensitivity analysis on interest rate risk
Where all other variables are held constant reasonably possible changes in the interest rate may have the following
pre-tax effect on the profit or loss for the year and shareholders' equity:
Unit: RMB'000
20252024
Changes in
Item Effect on Effect on
interest rate Effect on profit Effect on profit
shareholders' equity shareholders' equity
Financial instruments Increase by 100
(10715)(10715)(13712)(13712)
at variable interest rate basis points
Financial instruments Decrease by
10715107151371213712
at variable interest rate 100 basis points
1.1.3. Other price risk
The price risk of the Group mainly arises from trading equity instrument investments and other equity instrument
investments. The Group reduces the price risk of equity instrument investments by holding a variety of equity
securities portfolios. As at the end of the year the Group's investments in equity instruments held by the Group
included listed companies; therefore the Group is directly or indirectly exposed to the risk of fluctuations in
market prices of securities. If the market prices of the securities of the Group's investments in equity instruments
held directly and indirectly by the Group at the end of the year had increased or decreased by 5% while all other
variables remained unchanged the Group's shareholders' equity and profit or loss at the end of the year would
have been increased or decreased by RMB679350.52 (without taking into account of the effect of income tax)
(2024: RMB1138489.78).
1.2 Credit risk
As at 31 December 2025 the Group's maximum exposure to credit risk which will cause a financial loss to the
Group due to failure to discharge an obligation by the counterparties is arising from: cash and bank balances (Note
(V) 1) held-for-trading financial assets (Note (V) 2) notes receivable (Note (V) 3) accounts receivable (Note
(V) 4) other receivables (Note (V) 6) non-current assets due within one year (Note (V) 8) long-term
receivables (Note (V) 10) other non-current assets (Note (V) 22) and non-current financial assets at FVTPL that
are not included in the impairment assessment (Note (V) 13). As at the balance sheet date the carrying amount
of the Group's financial assets is its maximum exposure to credit risk.In order to minimise the credit risk the Group has delegated a team responsible for the determination of credit
limits credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover
overdue debts. In addition the Group reviews the recoverable amount of financial assets at each balance sheet
date to ensure that adequate allowance for credit loss is made for relevant financial assets. In this regard the
management of the Group considers that the Group's credit risk is significantly reduced.The credit risk on cash and bank balances is limited because they are deposited with banks with high credit ratings.
215 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(IX) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives and policies - continued
1.2 Credit risk - continued
As at 31 December 2025 the balance of bank acceptances held by the Group was RMB109607255.52 of which
all accepting banks were banks with high credit ratings. Therefore the management of the Group believes that
the credit risk of relevant bank acceptances is low.As at 31 December 2025 the balance of accounts receivable of the Group's top 5 customers was
RMB6166015861.15 (31 December 2024: RMB5475109550.83) accounting for 61.08% (31 December 2024:
53.09%) of the Group's accounts receivable. Except for that the Group has no other significant credit risk
exposures concentrated on a single financial asset or a portfolio of financial assets with similar characteristics.
1.3. Liquidity risk
In the management of liquidity risk the Group monitors and maintains a level of cash and cash equivalents
deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in
cash flows. The management monitors the utilisation of bank borrowings and ensures compliance with loan
covenants.The following is the maturity analysis for financial liabilities and lease liabilities held by the Group which is
based on undiscounted remaining contractual obligations:
Unit: RMB
Within 1 year 1-5 years Over 5 years Total
Short-term
2987363639.91--2987363639.91
borrowings
Accounts payable 10979051919.95 - - 10979051919.95
Other payables 790134442.66 - - 790134442.66
Long-term
186094184.58128087175.44-314181360.02
borrowings
Long-term payables 6351481.08 12702962.16 - 19054443.24
Bonds payable 36782442.00 2206946520.00 - 2243728962.00
Lease liabilities 138553675.90 302770852.63 66998097.28 508322625.81
Other non-current
-1799639.99-1799639.99
liabilities
Derivative financial
2750760.31--2750760.31
liabilities
(X) DISCLOSURE OF FAIR VALUE
1. Closing fair value of assets and liabilities measured at fair value
Unit: RMB
Fair value at the end of the year
Item
Level 1 Level 2 Level 3 Total
I. Continuous fair value measurement
(I) Financial assets at FVTPL
1. Derivative financial assets - 9800747.96 - 9800747.96
2. Fund investments - - 139256978.51 139256978.51
3. Equity instrument investments - - 47260875.00 47260875.00
(II) Financial assets at FVTOCI
1. Equity instrument investments - - 13587010.31 13587010.31
Total assets measured continuously at fair value - 9800747.96 200104863.82 209905611.78
(III) Financial liabilities at FVTPL
1. Derivative financial liabilities - 2750760.31 - 2750760.31
Total liabilities measured continuously at fair value - 2750760.31 - 2750760.31
216 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(X) DISCLOSURE OF FAIR VALUE - continued
2. Valuation techniques and qualitative and quantitative information of key parameters adopted for items
under level 2 fair value measurement
Unit: RMB
Fair value at 31
Valuation techniques Inputs
December 2025
Forward exchange rate discounted
Derivative financial assets (Note (V) 2) 9800747.96 Discounted cash flow method
rate
Derivative financial liabilities (Note (V) Forward exchange rate discounted
2750760.31 Discounted cash flow method
25) rate
3. Valuation techniques and qualitative and quantitative information of key parameters adopted for items
under level 3 fair value measurement
Unit: RMB
Fair value at 31
Valuation techniques Significant unobservable inputs
December 2025
Asset-based approach Market
Fund investments (Note (V) 13) 139256978.51 Liquidity discount PER PBR
approach
Equity instrument investments (Note (V) Asset-based approach Market
60847885.31 Liquidity discount PER PBR
12&13) approach
4. Reconciliation between opening and closing carrying amounts for items under continuous level 3 fair value
measurement
Unit: RMB
Translation of Changes in
Recognised in
financial unrealised gains or
Recognised in other
Item 1/1/2025 statements Purchase/Increase Settlement 31/12/2025 losses for assets held
profit or loss comprehensive
denominated in at the end of the
income
foreign currencies reporting period
(I) Financial assets at
FVTPL
1. Financial
-32317623.49--10014000000.0010046317623.49--
products
2. Fund investments 138877865.84 28266071.52 - (2090873.41) - 25796085.44 139256978.51 28266071.52
3. Equity instrument
62215368.00(21669554.00)-(194439.00)6909500.00-47260875.00(21669554.00)
investments
(II) Financial assets at
FVTOCI
Other equity
22769795.62-(3063043.91)965562.35-7085303.7513587010.31-
instruments
5. There are no changes in valuation techniques in the year.
6. Fair value of financial assets and financial liabilities not measured at fair value
The Group's management has assessed cash and bank balances notes receivable accounts receivable other
receivables other current assets non-current assets due within one year long-term receivables short-term
borrowings accounts payable other payables non-current liabilities due within one year long-term borrowings
bonds payable long-term payables other non-current liabilities etc. and considers that their carrying amount
approximates to the fair value of these assets and liabilities.(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of the
Proportion of the
Company's
Nature of Company's ownership
Name of the parent company Place of registration Registered capital voting power
business interest held by the
held by the
parent (%)
parent (%)
Room A 7/F Yuen
Long Technology
Centre No. 11 Wang
Investmen
USI Enterprise Limited Yip Street West USD 210900000.00 73.87 74.30
t holding
Yuen Long New
Territories Hong
Kong
217 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
218 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
1. Parent of the Company - continued
The ultimate controlling party of the Company is ASE Investment Holding Limited which is listed on the Taiwan
Stock Exchange with the listing code as 3711. It is also listed on the New York Stock Exchange in the United
States with the listing code as ASX.
2. Subsidiaries of the Company
Details of subsidiaries of the Company are set out in Note (VII) 1.
3. Associates and joint ventures of the Company
The details of the associates and joint ventures of the Company are set out in Note (VI) 2.
4. Other related parties of the Company
Other related parties Relationship between other related parties and the Company
USI Inc. Indirect holding company
ASE (Shanghai) Inc. Under common control of the ultimate holding company
ASE Inc. Under common control of the ultimate holding company
ASE Assembly & Test (Shanghai) Limited Under common control of the ultimate holding company
ASE (US) Inc. Under common control of the ultimate holding company
ASE Electronics Inc. Under common control of the ultimate holding company
ISE Labs Inc. Under common control of the ultimate holding company
Advanced Semiconductor Engineering (China) Ltd. Under common control of the ultimate holding company
ASE Corporate Services (Shanghai) Limited Under common control of the ultimate holding company
ASE Marketing & Service Japan Co. Ltd. Under common control of the ultimate holding company
Shanghai Dingxu Property Management Co. Ltd. Under common control of the ultimate holding company
Wuxi Tongzhi Microelectronics Co. Ltd. Under common control of the ultimate holding company
ISE labs China. Ltd. Under common control of the ultimate holding company
Siliconware Precision Industries Co. Ltd. Under common control of the ultimate holding company
Hirschmann Car Communication GmbH (Note) Under common control of the ultimate holding company
Hirschmann Car Communication Kft (Note) Under common control of the ultimate holding company
Hirschmann Car Communication S.A.S. (Note) Under common control of the ultimate holding company
Hirschmann Car Communication Inc (Note) Under common control of the ultimate holding company
Hirschmann Car Communication (Shanghai) Co. Ltd. (Note) Under common control of the ultimate holding company
Hirschmann Mobility Holding GmbH (Note) Under common control of the ultimate holding company
USI Enterprise Limited Under common control of the ultimate holding company
ASE KOREA Inc. Under common control of the ultimate holding company
ASE Cultural & Educational Foundation A Company with key management serving as the director
Taitech Precision Electronic (Kunshan) Co. Ltd. A subsidiary of an associate
Memtech Development (H.K.) Co. Limited A subsidiary of an associate
Dongguan Memtech Electronic Product Co. Ltd. A subsidiary of an associate
Nantong Memtech Technologies Co. Ltd. A subsidiary of an associate
Jian Memtech Precision Electronic Co. Ltd. A subsidiary of an associate
Memtech (Viet Nam) Technology Co. Ltd A subsidiary of an associate
Note: On 25 April 2025 the Group entered into a share transfer agreement with Real Tech Holdings Limited an indirect
controlling shareholder of the Group to transfer the Group's 75.1% equity interest in its subsidiary Universal
Ample Technology Co. Limited ("Universal Ample Technology") for a consideration of USD49783000. On 1
September 2025 the aforementioned equity transfer was completed. Consequently the amounts of related-party
transactions for 2025 with the following subsidiaries of Universal Ample Technology: Hirschmann Car
Communication (Shanghai) Co. Ltd. Hirschmann Car Communication GmbH Hirschmann Car Communication
Kft. Hirschmann Car Communication S.A.S. Hirschmann Car Communication Inc. and Hirschmann Mobility
Holding GmbH represent the transactions occurring from 1 September 2025 to 31 December 2025.
219 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Purchase and sales of goods rendering and receipt of services
Purchase of goods/receipt of services
Unit: RMB
Detail of the related Amount incurred Amount incurred in
Related party
party transaction in 2025 2024
Taitech Precision Electronic (Kunshan) Co.Purchase of materials 74503872.82 52745156.28
Ltd.ASE Electronics Inc. Purchase of materials 28044541.93 28130881.94
Jian Memtech Precision Electronic Co. Ltd. Purchase of materials 16596050.74 8030790.35
Memtech Development (H.K.) Co. Limited Purchase of materials 13347044.15 15677562.47
Dongguan Memtech Electronic Product Co.Purchase of materials 3469635.81 3023688.84
Ltd.Hirschmann Car Communication GmbH Purchase of materials 2923511.54 N/A
ASE Inc. Purchase of materials 2390253.66 444856.23
Memtech (Viet Nam) Technology Co. Ltd Purchase of materials 1123968.72 178939.85
Nantong Memtech Technologies Co. Ltd. Purchase of materials 492486.28 876598.37
Hirschmann Car Communication (Shanghai)
Purchase of materials 41200.00 N/A
Co. Ltd.Total 142932565.65 109108474.33
ASE Inc. Receipt of services 774606117.01 899714198.56
ASE Corporate Services (Shanghai) Limited Receipt of services 37613116.92 36024692.21
USI Inc. Receipt of services 25651383.99 14616069.52
Siliconware Precision Industries Co. Ltd. Receipt of services 8074595.62 7678215.44
USI Enterprise Limited Receipt of services 3947810.90 3833948.30
Shanghai Dingxu Property Management
Receipt of services 2054052.99 1995231.21
Co. Ltd.ASE Marketing & Service Japan Co. Ltd. Receipt of services 1192545.96 1047162.37
ASE Assembly & Test (Shanghai) Limited Receipt of services 1169823.00 -
ASE Cultural & Educational Foundation Receipt of services 1093118.58 549463.76
Hirschmann Car Communication GmbH Receipt of services 463982.58 N/A
ASE KOREA Inc. Receipt of services 50542.96 -
Jian Memtech Precision Electronic Co. Ltd. Receipt of services - 172798.21
Dongguan Memtech Electronic Product Co.Receipt of services - 28451.39
Ltd.ASE(US) Inc. Receipt of services - 2478.59
Taitech Precision Electronic (Kunshan) Co.Receipt of services - 495.00
Ltd.Total 855917090.51 965663204.56
The above transactions are executed at the prices agreed on by both parties.
220 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Purchase and sales of goods rendering and receipt of services - continued
Sales of goods/Rendering of services:
Unit: RMB
Detail of the related Amount incurred Amount incurred in
Related party
party transaction in 2025 2024
ASE Inc. Sales of goods 418135710.81 266809005.50
Hirschmann Car Communication (Shanghai)
Sales of goods 6930230.25 N/A
Co. Ltd.Hirschmann Car Communication Kft. Sales of goods 82596.27 N/A
Taitech Precision Electronic (Kunshan) Co.Sales of goods 47160.66 -
Ltd.Dongguan Memtech Electronic Product Co.Sales of goods 2717.55 -
Ltd.Total 425198415.54 266809005.50
ASE Inc. Rendering of services 19939200.10 22237941.09
Hirschmann Car Communication GmbH Rendering of services 6582271.58 N/A
Hirschmann Car Communication Kft. Rendering of services 3221260.30 N/A
Hirschmann Car Communication Inc. Rendering of services 1849760.19 N/A
Hirschmann Car Communication (Shanghai)
Rendering of services 1336939.66 N/A
Co. Ltd.Hirschmann Car Communication S.A.S. Rendering of services 238607.90 N/A
Hirschmann Mobility Holding GmbH. Rendering of services 26417.95 N/A
USI Inc. Rendering of services 13583.84 4875345.20
ISE labs China. Ltd. Rendering of services - 1008545.54
Total 33208041.52 28121831.83
The above transactions are executed at the prices agreed on by both parties.
(2) Leases with related parties
The Group as a lessor:
Unit: RMB
Lease income Lease income
Name of the lessee Type of leased assets
recognised in 2025 recognised in 2024
ASE Inc. Plant 344591.26 1393881.61
Hirschmann Car Communication (Shanghai) Leasing of business
240179.39 N/A
Co. Ltd. premises
Leasing of business
ISE Labs Inc. - 675576.14
premises
Total 584770.65 2069457.75
The above transactions are executed at the prices agreed on by both parties.
221 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as lessee:
Unit: RMB
Interest expenses on lease Increase in right-of-use
Rent paid
liabilities assets
Type of leased
Name of the lessor Amount Amount Amount
assets Amount incurred Amount incurred Amount incurred
incurred in incurred in incurred in
in 2025 in 2024 in 2025
202420252024
ASE Assembly &
Leasing of
Test (Shanghai) 17301640.00 14531859.72 1327823.05 1711886.60 - -
business premises
Limited
Advanced
Semiconductor Leasing of
19781481.7216148148.36672178.68442734.61--
Engineering business premises
(China) Ltd.
Leasing of
USI Inc. 17074325.80 31503647.01 410372.00 1260177.62 - -
business premises
Leasing of
ISE Labs Inc. 416978.89 389065.04 16417.69 26850.95 - -
business premises
Total 54574426.41 62572720.13 2426791.42 3441649.78 - -
The above transactions are executed at the prices agreed on by both parties.
(3) Assets transfer with related parties
Unit: RMB
Detail of the related Amount incurred in Amount incurred in
Related party
party transaction 2025 2024
Disposal of equity
Real Tech Holdings Limited 353733106.47
interests in subsidiaries
合计353733106.47
USI Inc. Sales of fixed assets 165902129.34 -
Siliconware Precision Industries Co.Sales of fixed assets - 6768750.00
Ltd.ISE labs China. Ltd. Sales of fixed assets - 920532.11
Total 165902129.34 7689282.11
ISE labs China. Ltd. Purchase of fixed assets 8691164.34 -
Taitech Precision Electronic
Purchase of fixed assets 7202011.00 14882333.00
(Kunshan) Co. Ltd.Jian Memtech Precision Electronic
Purchase of fixed assets 3154090.00 896907.00
Co. Ltd.Dongguan Memtech Electronic
Purchase of fixed assets - 97912.80
Product Co. Ltd.Total 19047265.34 15877152.80
The above transactions are executed at the prices agreed on by both parties. For details of disposal of equity
interests in subsidiaries please refer to Note (VI) 1.
(4) Interest expenses with related parties
Unit: RMB
Detail of the related Amount incurred in Amount incurred in
Related party
party transaction 2025 2024
Interest expenses on
USI Enterprise Limited 417636.08 38777856.86
convertible bonds
222 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(5) Compensation for key management personnel
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Compensation for key management personnel 23521163.36 28248523.85
6. Amounts due from/to related parties
(1) Amounts due from related parties
Unit: RMB
31/12/202531/12/2024
Item Related party Gross carrying Loss Gross carrying Loss
amount allowance amount allowance
Accounts
ASE Inc. 106341466.64 - 148092697.66 -
receivable
Accounts Hirschmann Car Communication
6552186.09 - N/A N/A
receivable (Shanghai) Co. Ltd.Accounts
Hirschmann Car Communication GmbH 2880065.30 - N/A N/A
receivable
Accounts
Hirschmann Car Communication Inc. 1787361.63 - N/A N/A
receivable
Accounts
Hirschmann Car Communication Kft. 297920.18 - N/A N/A
receivable
Accounts
Hirschmann Car Communication S.A.S. 68930.71 - N/A N/A
receivable
Accounts
Hirschmann Mobility Holding GmbH 26303.17 - N/A N/A
receivable
Total 117954233.72 - 148092697.66 -
Unit: RMB
31/12/202531/12/2024
Gross
Item Related party Gross carrying Loss
carrying Loss allowance
amount allowance
amount
Siliconware Precision Industries Co.Prepayments - 331656.13 -
Ltd.Unit: RMB
31/12/202531/12/2024
Item Related party Gross carrying Loss Gross carrying
Loss allowance
amount allowance amount
Other
Hirschmann Car Communication GmbH 3828072.81 - N/A N/A
receivables
Other
Hirschmann Car Communication Kft. 2924171.00 - N/A N/A
receivables
Other Hirschmann Car Communication
1497535.32 - N/A N/A
receivables (Shanghai) Co. Ltd.Other
USI Inc. 948564.18 - 37571.53 -
receivables
Other
Hirschmann Car Communication Inc. 463534.68 - N/A N/A
receivables
Other
ASE Inc. 274920.90 - 20958.07 -
receivables
Other
Hirschmann Car Communication S.A.S. 20982.51 - N/A N/A
receivables
Other
Siliconware Precision Industries Co. Ltd. - - 6828980.00 -
receivables
Other
ISE labs China. Ltd. - - 252051.29 -
receivables
Total 9957781.40 7139560.89 -
223 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Unit: RMB
31/12/202531/12/2024
Gross
Item Related party Gross carrying Loss
carrying Loss allowance
amount allowance
amount
Other non-current Advanced Semiconductor Engineering
1395074.66-1371575.33-
assets (China) Ltd.Other non-current ASE Assembly & Test (Shanghai)
396980.57-409781.71-
assets Limited
Other non-current
ISE Labs Inc. 23846.47 - 24399.16 -
assets
Total 1815901.70 - 1805756.20 -
(2) Amounts due to related parties
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Accounts payable ASE Inc. 214086376.95 250339086.91
Accounts payable Taitech Precision Electronic (Kunshan) Co. Ltd. 39630248.83 39346125.44
Accounts payable USI Inc. 15059124.83 11346994.32
Accounts payable Jian Memtech Precision Electronic Co. Ltd. 9602248.71 4505391.07
Accounts payable Memtech Development (H.K.) Co. Limited 4017088.51 9272367.23
Accounts payable ASE Electronics Inc. 3761806.28 5094908.56
Accounts payable Hirschmann Car Communication GmbH 3364987.94 N/A
Accounts payable Siliconware Precision Industries Co. Ltd. 1815474.41 611824.82
Accounts payable Dongguan Memtech Electronic Product Co. Ltd. 1029810.86 2375791.10
Accounts payable Memtech (Viet Nam) Technology Co. Ltd 765033.33 126748.90
Accounts payable Nantong Memtech Technologies Co. Ltd. 297101.38 169210.54
Accounts payable USI Enterprise Limited 276416.14 337587.84
Accounts payable ASE KOREA Inc. 50143.46 -
Accounts payable Hirschmann Car Communication (Shanghai) Co. Ltd. 46556.00 N/A
Total 293802417.63 323526036.73
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Other payables ASE Corporate Services (Shanghai) Limited 3094555.53 54148.15
Other payables Jian Memtech Precision Electronic Co. Ltd. 624778.13 282768.00
Other payables ASE Inc. 514667.83 -
Other payables Memtech Development (H.K.) Co. Limited 432736.36 2660949.05
Other payables ASE Assembly & Test (Shanghai) Limited 320134.25 -
Other payables USI Inc. 267991.62 -
Other payables Shanghai Dingxu Property Management Co. Ltd. 230735.98 182208.25
Other payables Advanced Semiconductor Engineering (China) Ltd. 67283.95 768975.50
Other payables Memtech (Viet Nam) Technology Co. Ltd 15856.96 5744.58
Total 5568740.61 3954793.53
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Long-term
USI Inc. 12580325.09 18348682.49
payables
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Bonds payable USI Enterprise Limited - 785428252.70
224 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Lease liabilities ASE Assembly & Test (Shanghai) Limited 31764489.15 31669194.59
Advanced Semiconductor Engineering (China) 13291945.81 31648619.22
Lease liabilities
Ltd.Lease liabilities USI Inc. 13134828.75 51263696.49
Lease liabilities ISE Labs Inc. 375192.28 -
Total 58566455.99 114581510.30
7. Related party commitments
As at 31 December 2025 there are no related party commitments.
225 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XII) SHARE-BASED PAYMENTS
1. Summary of share-based payments
Unit: Share
Stock Option Incentive Plan of Employee Share Ownership Plan
Stock Option Incentive Plan of
Universal Scientific Industrial of Universal Scientific Industrial
2025 Universal Scientific Industrial
(Shanghai) Co. Ltd. in 2015 (Note (Shanghai) Co. Ltd. in 2023 (Note
(Shanghai) Co. Ltd. in 2023 (Note 4)
1)3)
Total number of the Company's equity instruments
1106092559396072918588
outstanding at the beginning of the year
Total number of the Company's equity instruments
---
granted during the year
Total number of the Company's equity instruments
813066049662472906624
exercised during the period
Total number of the Company's equity instruments
293026597336011964
lapsed during the period
Total number of the Company's equity instruments
---
outstanding at the end of the year
Total number of equity instruments exercisable at
---
the end of the year
Range of exercise prices Exercise prices of stock RMB 14.54 (granted in 2023)
RMB15.54 RMB14.04
and remaining options RMB 14.35 (granted in 2024)
contractual life of the
Company's stock
Remaining contractual life N/A N/A N/A
options outstanding at
the end of the year
Note 1: In November 2015 in order to further improve the corporate governance structure of the Company to
promote the Company to establish and improve the incentive and restraint mechanism to fully mobilise
the enthusiasm of the Company's middle-level managers and employees effectively combine the
interests of shareholders the Company and the personal interests of operators and to make all parties
jointly focus on the long-term development of the Company the Company formulated the "Stock Option
Incentive Plan of Universal Scientific Industrial (Shanghai) Co. Ltd." to grant qualified employees a
certain number of stock options to subscribe for the Company's general shares. During the service period
of the employees granted stock options for the Group the fair value of the corresponding equity
instruments shall be included in the costs or expenses of the Group on a straight-line basis during the
vesting period and the capital reserve shall be increased accordingly.Plan No. Granted by Grant date Vesting period Exercise period
Universal
Stock Option Incentive
Scientific From 25 November From 25 November
Plan of Universal
Industrial 25 November 2015 2015 to 24 November 2017 to 24 November
Scientific Industrial
(Shanghai) Co. 2020 2025
(Shanghai) Co. Ltd.Ltd.The optionee of the stock options can exercise the right in proportions according to the following time
points after being granted the stock options for two years and meeting the performance assessment at the
Company and individual level.Accumulated
maximum exercised
proportion
2 years after the grant date 40%
3 years after the grant date 60%
4 years after the grant date 80%
5 years after the grant date 100%
If the stock options are not exercised 10 years after the grant date the options will lapse. If the incentive
recipient leaves the Company due to resignation or layoffs the stock options that have been approved to
exercise but have not been exercised by the incentive recipient shall be terminated and the unapproved
options will be null and void on the date thereof. If the incentive recipient leaves the Company due to
retirement the incentive recipient shall continue to retain the exercise right for the stock options that
have been approved to exercise but have not been exercised and the options that have not been approved
to exercise shall be invalidated on the date thereof.
226 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XII) SHARE-BASED PAYMENTS - continued
1. Summary of share-based payments - continued
Note 2: In October 2023 in order to establish and improve the Company's long-term incentive assessment and
restraint mechanism to attract and retain excellent talents to fully mobilise the enthusiasm of the
Company's middle-level managers and core business and technical staff and to effectively combine the
interests of shareholders the Company and the personal interests of the core team as well as to make all
parties jointly focus on the long-term development of the Company the Company formulated the Stock
Option Incentive Plan of Universal Scientific Industrial (Shanghai) Co. Ltd. to grant qualified employees
a certain number of stock options to subscribe for the Company's general shares. During the service
period of the employees granted stock options for the Group the fair value of the corresponding equity
instruments shall be included in the costs or expenses of the Group on a straight-line basis during the
vesting period and the capital reserve shall be increased accordingly.According to the 2023 Stock Option Incentive Plan of Universal Scientific Industrial (Shanghai) Co. Ltd.from the date of announcement of the draft incentive plan to the date when the incentive object completes
the exercise of stock options if the Company converts capital reserve into share capital distributes stock
dividends allotments dividends and other matters the exercise price of stock options will be adjusted
accordingly. The Eighteenth Meeting of the Sixth Session of the Board of Directors held on 25 April
2025 approved the Proposal to Adjust the Exercise Price of the 2023 Stock Option Incentive Plan
Following the Annual Dividend Distribution and the exercise price was adjusted from RMB14.27 per
share to RMB14.04 per share.Plan No. Granted by Grant date Vesting period Exercise period
Stock Option Incentive Universal Scientific
Plan of Universal Industrial 13 October 2023 to 13 14 October 2024 to 13
13 October 2023
Scientific Industrial (Shanghai) Co. October 2025 October 2026
(Shanghai) Co. Ltd. Ltd.The optionee of the stock options can exercise the right in proportions according to the following time
points after being granted the stock options for 12 months and meeting the performance assessment at
the Company and individual level.Accumulated
maximum exercised
proportion
12 months after the grant date 50%
24 months after the grant date 100%
The stock options that fail to be exercised by the incentive recipient will be lapsed after the end of each
exercise period of the stock options. If the incentive recipient leaves the Company due to resignation
downsizing non-renewal of employment contract termination of employment contract or employment
agreement by negotiation or dismissal by the Company the stock options that have been approved to
exercise but have not been exercised by the incentive recipient shall be terminated and the unapproved
options will be invalidated on the date thereof. If the incentive recipient retires normally in accordance
with national laws and regulations and the Company's regulations the incentive recipient shall continue
to retain the exercise right for the stock options that have been approved to exercise but have not been
exercised and the options that have not been approved to exercise shall be invalidated on the date thereof.
227 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XII) SHARE-BASED PAYMENTS - continued
1. Summary of share-based payments - continued
Note 3: In November 2023 in order to enrich the salary system of employees establish and improve the benefit
sharing mechanism between workers and owners realise the consistency of the interests of the Company
shareholders and employees and promote all parties to jointly focus on the long-term development of
the Company so as to bring more efficient and lasting returns to shareholders; to further improve the
corporate governance structure improve the Company's long-term and effective incentive and restraint
mechanism and ensure the long-term and stable development of the Company; to implement the
development strategies of the Company effectively mobilise the enthusiasm of employees and retain
excellent key management technical and business talents and motivate employees to create value for
the Company and enhance the competitiveness of the Company in the industry the Company formulated
the "Employee Share Ownership Plan of Universal Scientific Industrial (Shanghai) Co. Ltd. in 2023" to
grant the qualified core talents with a certain number of stock options to subscribe for the general shares
of the Company. During the service period of the employees granted stock options for the Group the fair
value of the corresponding equity instruments shall be included in the costs or expenses of the Group on
a straight-line basis during the vesting period and the capital reserve shall be increased accordingly.Plan No. Granted by Grant date Vesting period Exercise period
Universal
Employee Share Ownership
Scientific
Plan of Universal Scientific 23 November 2023 to 23 23 November 2024 to
Industrial 23 November 2023
Industrial (Shanghai) Co. November 2025 23 November 2026
(Shanghai) Co.Ltd. - Granted in 2023 Ltd.Universal
Employee Share Ownership
Scientific
Plan of Universal Scientific 16 January 2024 to 16 16 January 2025 to 16
Industrial 16 January 2024
Industrial (Shanghai) Co. January 2026 January 2027
(Shanghai) Co.Ltd. - Granted in 2024 Ltd.The optionee of the stock options can exercise the right in proportions according to the following time
points after being granted the stock options for 12 months and meeting the performance assessment at
the Company and individual level.Accumulated
maximum exercised
proportion
12 months after the grant date 50%
24 months after the grant date 100%
Incentive recipients who are disqualified from participation due to material violation of laws and
regulations non-competition behaviour voluntary resignation layoffs by the Company non-renewal of
labour contracts and employment agreements upon expiration negotiated termination of labour contracts
or employment agreements or dismissal from the Company shall have their corresponding shares
withdrawn by the Management Committee and the shares corresponding to their withdrawn shares shall
be sold in the secondary market and the Management Committee shall distribute the shares to the holders
according to the lower of the amount obtained after the sale of such shares and the consideration paid for
the underlying shares corresponding to the shares held by the holders under the Employee Stock
Ownership Plan and the Management Committee shall be responsible for determining the principles of
distribution of the excess portion if any and shall further distribute the same to the holders. The
Management Committee shall be responsible for determining the principles of allocation and further
distribution of the excess portion if any. If a holder retires in accordance with the Company's regulations
its rights and interests in the Employee Stock Ownership Plan shall remain unchanged.
228 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XII) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments
Unit: RMB
Employee Share Ownership Plan Employee Share Ownership Plan
Stock Option Incentive Plan of Stock Option Incentive Plan of
of Universal Scientific Industrial of Universal Scientific Industrial
Universal Scientific Industrial Universal Scientific Industrial
(Shanghai) Co. Ltd. in 2023 - (Shanghai) Co. Ltd. in 2023 -
(Shanghai) Co. Ltd. in 2015 (Shanghai) Co. Ltd. in 2023
Granted in 2023 Granted in 2024
When the optionee reaches the When the optionee reaches the When the optionee reaches the When the optionee reaches the
exercise period in the stock exercise period in the stock exercise period in the stock exercise period in the stock
options plan and meets the options plan and meets the options plan and meets the options plan and meets the
The basis of determining the
performance assessment in the performance assessment in the performance assessment in the performance assessment in the
number of equity instruments
Company and individual level Company and individual level and Company and individual level and Company and individual level and
expected to be exercised
and the corresponding equity the corresponding equity the corresponding equity the corresponding equity
instrument is that expected to instrument is that expected to be instrument is that expected to be instrument is that expected to be
be exercised exercised exercised exercised
When the optionee reaches the When the optionee reaches the When the optionee reaches the When the optionee reaches the
exercise period in the stock exercise period in the stock exercise period in the stock exercise period in the stock
Reasons for the significant options plan and meets the options plan and meets the options plan and meets the options plan and meets the
difference between the estimate performance assessment in the performance assessment in the performance assessment in the performance assessment in the
in the current year and that in the Company and individual level Company and individual level and Company and individual level and Company and individual level and
prior year and the corresponding equity the corresponding equity the corresponding equity the corresponding equity
instrument is that expected to instrument is that expected to be instrument is that expected to be instrument is that expected to be
be exercised exercised exercised exercised
Cumulative amount of equity-
settled share-based payments 139923402.85 26135000.00 - -
included in capital reserve
Total expenses recognised arising
from equity-settled share-based - - - -
payments
Method of determining the fair value of equity instruments: Fair values are calculated by using Black-Scholes
Model Binomial Tree Model and etc. the inputs to the model at the grant date are as follows:
Employee Share Ownership Plan Employee Share Ownership Plan
Stock Option Incentive Plan of Stock Option Incentive Plan of
of Universal Scientific Industrial of Universal Scientific Industrial
Universal Scientific Industrial Universal Scientific Industrial
(Shanghai) Co. Ltd. in 2023 - (Shanghai) Co. Ltd. in 2023 -
(Shanghai) Co. Ltd. in 2015 (Shanghai) Co. Ltd. in 2023
Granted in 2023 Granted in 2024
Weighted average share price RMB15.54 RMB14.54 RMB14.54 RMB14.35
Weighted average exercise price RMB15.54 RMB14.54 RMB14.54 RMB14.35
Expected volatility 40.33%~45.00% 38.51%~39.09% 36.56%~38.77% 35.02%~37.02%
Expected life 6 years - 7.5 years 1 year ~ 2 years 1 year ~ 2 years 1 year ~ 2 years
Risk-free interest rate 3.06%~3.13% 2.35%-2.45% 2.33%-2.44% 2.11%-2.27%
Expected dividend yield 0.87% 0.00% 0.00% 0.00%
Expected volatility is calculated based on the volatility of the share prices of similar companies during the past
few years. Expected life used in the model is based on the best estimate of management after the adjustments of
the effects of inconvertibility exercise restriction and exercise pattern.
3. In this year the Group has no cash-settled share-based payments.
4. In this year the Group has no modification to or termination of share-based payments.
(XIII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
(1) Capital commitments
Unit: RMB'000
31/12/202531/12/2024
Capital commitments that have been entered into but have
not been recognised in the financial statements:
- Commitment for acquisition and construction of long-term
640976601228
assets
- External investment commitment (Note (VI) 2) 36162 35454
Total 677138 636682
229 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XIII) COMMITMENTS AND CONTINGENCIES - continued
1. Significant commitments - continued
(1) Capital commitments - continued
Note: For the commitment of external investment according to the Joint Investment Contract signed UGSI and
Merry Electronics UGSI needs to pay a total subscription amount of TWD191100000.00. As at 31
December 2025 the capital subscription of TWD161700000.00 (31 December 2024:
TWD161700000.00) equivalent to RMB36161532.29 (31 December 2024: RMB35454149.15)) was
unpaid.
2. Contingencies
The Group has no significant contingencies to be disclosed.(XIV) EVENTS AFTER THE BALANCE SHEET DATE
1. Profit appropriation
As proposed by the resolution of the 23rd Meeting of the 6th Session of the Board of Directors of the Company
held on 2 April 2026 a cash dividend of RMB4.30 (including tax) per 10 shares will be distributed on the basis
of the total share capital at the equity registration date less the number of the shares repurchased by the Company
from special accounts with no bonus issue and no increase in share capital. The above proposal regarding
dividend distribution is yet to be approved in a shareholders' meeting.
2. Early redemption of convertible corporate bonds
During the period from 8 December 2025 to 7 January 2026 the Company's shares met the condition that the
closing price of the shares on at least 20 trading days in any 30 consecutive trading days is not less than 130%
(including 130%) of the current conversion price thereby triggering the conditional redemption clause of the
convertible bonds. On 7 January 2026 the Twenty-second Meeting of the Sixth Session of the Board of Directors
reviewed and approved the "Proposal on the Early Redemption of Universal Global Convertible Bonds" resolving
to exercise the early redemption rights of the "Universal Global Convertible Bonds" and to redeem all "Universal
Global Convertible Bonds" registered on the redemption record date which was 28 January 2026. As at 28
January 2026 a total of RMB3445928000.00 in convertible bonds converted into the Company's Class A
common stock with a cumulative conversion of 185459083 shares. The remaining RMB4072000.00 in
unconverted convertible bonds was fully redeemed in January 2026.
3. Share acquisition
On 15 January 2026 Universal Optoeletronics Co. Ltd. ("Universal Optoeletronics") convened board meeting
at which it made the resolution of the Acquisition of Chengdu EugenLight Technologies Co. Ltd ("EugenLight
Technologies"). Pursuant to the Share Transfer Agreement executed on 15 January 2026 Universal
Optoeletronics would acquire 59.428% equity interest in EugenLight Technologies for a cash consideration of
RMB256692361.37. Concurrently Universal Optoeletronics subscribed to RMB70000000.00 in convertible
corporate bonds issued by EugenLight Technologies which was assessed and determined to be a "package deal".Universal Optoeletronics holds 65.4707% equity interest in EugenLight Technologies after this transaction.Furthermore Universal Optoeletronics has the right to acquire additional equity in EugenLight Technologies up
to an amount corresponding to RMB471691.00 of EugenLight Technologies' registered capital within 30 days
of receiving EugenLight Technologies' audited financial statements for the 2025 fiscal year.On 31 March 2026 the Company converted convertible bonds with a par value of RMB70000000.00 into equity
and pursuant to the equity transfer agreement acquired the equity corresponding to RMB471691.00 of registered
capital held by the former shareholders of EugenLight Technologies for RMB12158290.00. Following this
transaction Universal Optoeletronics holds 67.6688% equity interest in EugenLight Technologies.
230 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XIV) EVENTS AFTER THE BALANCE SHEET DATE - continued
4. External investment
On 9 January 2026 the Company signed the "Partnership Agreement of Tianjin Haihe Yaozhong Equity
Investment Partnership (Limited Partnership)" and contributed RMB30000000.00 as a limited partner to invest
in Tianjin Haihe Yaozhong Equity Investment Partnership (Limited Partnership) representing 4.90% equity
interest. On 23 March 2026 the filing with the Asset Management Association of China was completed. This
investment does not constitute a related-party transaction or a major asset restructuring.(XV) OTHER SIGNIFICANT EVENTS
1. Discontinued operations
Unit: RMB
(Losses) from
discontinued
Total profit Income tax Net profit operations
Item Revenue Expenses
(loss) expenses (loss) attributable to
shareholders of
the Company
Universal Ample
Technology Co.Limited ("Universal 861253301.30 269011337.81 (100966763.72) (2835181.27) (98131582.45) (73696818.42)
Ample
Technology")
Other explanations:
Universal Ample Technology was engaged in the automotive antenna business which constituted a major
independent business segment of the Group; however it was disposed of during the current year. For details
regarding the disposal of the subsidiary please refer to Note (VI.).
(1) Gains or losses from discontinued operations
The Group has classified Universal Ample Technology as a discontinued operation in the Consolidated Income
Statement and has restated the comparative figures accordingly. The results of operations for Universal Ample
Technology as a discontinued operation are as follows:
Unit: RMB
For the period from 1 January
2024
2025 to 31 August 2025
Operating income 861253301.30 1300617484.36
Less: Operating costs 696521578.84 1015254106.38
Taxes and levies 164218.41 545404.89
Selling expenses 45002801.52 68358824.75
Administrative expenses 110660330.92 134208741.61
Research and development
113348205.37153890026.39
expenses
Financial expenses 3561677.86 (1597495.76)
Add: Other income - 1677.56
Gains (losses) on impairment of
(21774396.48)2582830.41
credit
Gains on impairment of assets 28589779.98 46050822.63
Losses on disposal of assets (3136.25) (3301.48)
Operating profit (loss) (101193264.37) (21410094.78)
Add: Non-operating income 346936.33 2468144.53
Less: Non-operating expenses 120435.68 1977429.05
Total profit (loss) (100966763.72) (20919379.30)
Less: Income tax expenses (2835181.27) 12514503.19
Net profit (loss) (98131582.45) (33433882.49)
Net gains on disposal 48472750.45 -
Gains or losses from discontinued
(49658832.00)(33433882.49)
operations
231 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
1. Discontinued operations - continued
(1) Gains or losses from discontinued operations - continued
Note: The above disposal of equity generates investment income of RMB48826548.27 the net gains or losses
on disposal is RMB48472750.45 net of transaction tax.
(2) Losses on impairment of assets from discontinued operations
Unit: RMB
For the period from 1 January
2024
2025 to 31 August 2025
Impairment loss recognised (reversed)
6815383.5048633653.04
during the period
(3) Net cash flow from discontinued operations
Unit: RMB
For the period from 1 January
2024
2025 to 31 August 2025
Net cash flow from operating activities (184560638.57) (174436777.86)
Net cash flow from investment activities (7050416.31) 132575115.68
Net cash flow from financing activities 187424819.18 (111392462.86)
Effect of foreign exchange rate changes
20678225.58(9262149.20)
on cash
Net cash flow 16491989.88 (162516274.24)
(4) Gains or losses from continuing operations and gains or losses from discontinued operations attributable
to shareholders of the Company
Unit: RMB
For the period from 1 January
2024
2025 to 31 August 2025
Gains or losses from continuing
operations attributable to shareholders of 1878663345.25 1677591661.16
the Company
Gains or losses from discontinued
operations attributable to shareholders of (25224067.97) (25108845.75)
the Company
Net profit attributable to shareholders of
1853439277.281652482815.41
the Company
232 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
2. Segment information
(1) Determination basis and accounting policies of reporting segments
Based on the Group's internal organisation structure management requirements and internal reporting system the
operations of the Group are classified into 4 reporting segments according to the manufacturing location which
are Chinese mainland APAC (exclude Chinese mainland) Europe and other countries/regions. At the same time
the products are divided into communication products consumer electronics products cloud and storage products
industrial products automotive electronics products and other products according to categories in each region.These report segments are recognised on the basis of manufacturing location and product category. The Group's
management periodically evaluates the operating results of these reporting segments to make decisions about
resources to be allocated to the segments and assess their performance. The operating segment related to Universal
Ample Technology's business was discontinued during the current year. The segment reporting below does not
include the discontinued operations. For details regarding the discontinued operations please refer to Note (XV)
1.
Segment information is disclosed in accordance with the accounting policies and measurement criteria adopted
by each segment when reporting to management. The measurement criteria are consistent with the accounting
and measurement criteria in the preparation of the financial statements. The Group has restated prior-period data
due to changes in the scope of consolidation resulting from the disposal of its subsidiary Universal Ample
Technology and due to changes in the composition of reportable segments resulting from changes in the Group's
internal product categories in 2025.
233 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
2. Segment information - continued
(2) Financial information of reporting segments
2025:
Unit: RMB'000
Chinese mainland APAC European region Other countries/regions Inter-segment offsetting Total
Item Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Total of the
income costs the segment income costs the segment income costs the segment income costs the segment income costs the segment income costs segment
Consumer electronic
154648981424266712222316061345579592826541787508580269272393188798188697101(1290474)(1286648)(3826)21299652197433361556316
products
Communication products 13413433 12259917 1153516 4984658 4805142 179516 - - - - - - (11734) (65247) 53513 18386357 16999812 1386545
Cloud and storage products 2095441 1577578 517863 4088437 3613752 474685 18667 16732 1935 1306312 1118222 188090 (1426437) (1426542) 105 6082420 4899742 1182678
Industrial products 2385808 1988767 397041 3536649 3200530 336119 1584790 1409200 175590 2298954 2159950 139004 (2221024) (2215383) (5641) 7585177 6543064 1042113
Automotive electronic
99401787933311468457031050948060830891896848320435761213783119929614487(19808)(19392)(416)36501983417037233161
products
Medical products 68417 53608 14809 - - - 310005 303448 6557 - 2926 (2926) (1833) (464) (1369) 376589 359518 17071
Others 340903 290571 50332 571876 286646 285230 487164 563726 (76562) 45288 30972 14316 (573632) (251809) (321823) 871599 920106 (48507)
Segment principal
34762917312924413470476198132751821147816017974167607394411822348950531354700063353072(5544942)(5265485)(279457)58251992528826155369377
operating income/costs
Other operating
income/cost of the 82689 760 81929 7034 165 6869 36873 - 36873 35973 - 35973 (80758) (480) (80278) 81811 445 81366
Segment
Total operating
income/cost of the 34845606 31293201 3552405 19820309 18211643 1608666 4204480 3944118 260362 5089108 4700063 389045 (5625700) (5265965) (359735) 58333803 52883060 5450743
segment
Less: Taxes and levies 50789 3589 14814 2100 - 71292
Selling expenses 214688 118504 36559 84866 (95400) 359217
Administrative
432176470051222277167589(110468)1181625
expenses
Research and
development 1252914 636514 4232 46554 (152289) 1787925
expenses
Financial expenses 160628 33763 (61647) 132607 (525) 264826
Including: Interest
18511812970135942135912(145084)341589
expenses
Interest
2265961546051048133328(163734)325608
income
Add: Other income 53555 - 5107 - - 58662
Investment income 180188 38924 (1282) - - 217830
Including: Income
from
investments
in 3007 33218 - - - 36225
associates
and joint
ventures
Gains (losses) on
changes in fair (5971) (18152) (1788) - - (25911)
values
Gains (losses) on
(10318)11691950(14386)-(21585)
impairment of credit
Gains (losses) from
(25088)62370(46105)(9120)-(17943)
assets impairment
Gains (Losses) on
110771468982727(322)-160380
disposal of assets
Operating profit 1644653 577454 4736 (68499) (1053) 2157291
Net profit 1466686 486485 80061 (153446) (1157) 1878629
234 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
2. Segment information - continued
(2) Reporting segment's financial information - continued
2024 (restated):
Unit: RMB'000
Chinese mainland APAC European region Other countries/regions Inter-segment offsetting Total
Item Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Sub-total of Operating Operating Total of the
income costs the segment income costs the segment income costs the segment income costs the segment income costs the segment income costs segment
Consumer electronic
158253451442307214022734394659412471226994710568883195224931121611095702591(1235064)(1121376)(113688)19202789176191731583616
products
Communication products 14926891 13738506 1188385 6193192 5969700 223492 6679 11940 (5261) 15939 16395 (456) (76376) (275260) 198884 21066325 19461281 1605044
Cloud and storage products 2767723 2239819 527904 3803217 3379444 423773 235246 206695 28551 907572 807720 99852 (1617177) (1621531) 4354 6096581 5012147 1084434
Industrial products 2579368 2262239 317129 3322535 2983104 339431 2001417 1851622 149795 1646407 1602570 43837 (2431687) (2413347) (18340) 7118040 6286188 831852
Automotive electronic
1095671971121124550521724426858948668367097409669574322304012376691(146290)(13609)(33842)2023346708964481794189102
products
Medical products 8500 7145 1355 - - - 324418 310618 13800 959 1042 (83) - - - 333877 318805 15072
Others 272858 235793 37065 555497 218275 337222 536661 491481 45180 77403 12724 64679 (616869) (224794) (392075) 825550 733479 92071
Segment principal
3747635633877695359866118790824171020931688731404681836965173503014990842492671264130(5990782)(5690150)(300632)59314058539128675401191
operating income/costs
Other operating
income/cost of the 81062 1413 79649 5705 1213 4492 44696 - 44696 5070 - 5070 (60557) (1134) (59423) 75976 1492 74484
Segment
Total operating
income/cost of the 37557418 33879108 3678310 18796529 17103306 1693223 4091514 3696517 394997 4995912 4926712 69200 (6051339) (5691284) (360055) 59390034 53914359 5475675
segment
Less: Taxes and levies 122642 1423 (4663) 18026 - 137428
Selling expenses 198798 101780 59758 51432 (70781) 340987
Administrative
414888569938230875180060(159455)1236306
expenses
Research and
development 1247885 567356 46482 28365 (136428) 1753660
expenses
Financial expenses (85387) 195091 25544 185827 (6826) 314249
Including: Interest
18499115482361014150251(160070)391009
expenses
Interest
243161167722413485101(153048)304284
income
Add: Other income 50271 1 13159 - - 63431
Investment income 57235 152285 3943 - - 213463
Including: Income
from
investments
in (3460) 37323 - - - 33863
associates
and joint
ventures
Gains (losses) on
changes in fair (4176) 4516 (2801) - - (2461)
values
Gains (losses) on
(12372)(612)(8647)(13752)-(35383)
impairment of credit
Gains (losses) from
(45837)4420516462(60568)-(45738)
assets impairment
Gains (Losses) on
22084483844--7535
disposal of assets
Operating profit 1826813 462513 59961 (468830) 13435 1893892
Net profit 1660294 376235 53056 (412044) 62 1677603
235 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
2. Segment information - continued
(2) Reporting segment's financial information - continued
31/12/2025
Unit: RMB'000
Other
Chinese European Inter-segment
Item APAC countries/regio Total
mainland region offsetting
ns
Total assets of the
218953781527907539739054493461(5806427)39835392
segment (Note)
Total liabilities of
93365071081443422490483963835(6665728)19698096
segment
31/12/2024 (restated)
Unit: RMB'000
Other
Chinese European Inter-segment
Item APAC countries/regio Total
mainland region offsetting
ns
Total assets of the
238241661045409139727494232453(3981615)38501844
segment (Note)
Total liabilities of
12790772665925218442873821773(3585210)21530874
segment
Note: The assets of the aforementioned segments do not include other equity instrument investments other
non-current financial assets and deferred tax assets. The liabilities of the aforementioned segments
do not include deferred tax liabilities. The above assets of segment and liabilities of segment exclude
assets and liabilities related to discontinued operations.Amount incurred in the current period
Unit: RMB'000
Other
Chinese European Inter-segment
Item APAC countries/regio Total
mainland region offsetting
ns
Depreciation and
638509293482146081164667-1242739
amortisation
Income tax
1648818852592045067672313358
expenses
Amount incurred in the prior period (restated)
Unit: RMB'000
Other
Chinese European Inter-segment
Item APAC countries/regio Total
mainland region offsetting
ns
Depreciation and
64445729702224343196682-1281593
amortisation
Income tax
1747729507227455(111002)10836197133
expenses
External revenue by geographical region of source and non-current assets by geographical location
Unit: RMB
Amount incurred in Amount incurred in
Item
2025 2024 (restated)
External revenue from Chinese mainland 2033021712.39 1574155855.45
External revenue outside Chinese mainland 56300780807.89 57815877758.29
Total 58333802520.28 59390033613.74
236 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XV) OTHER SIGNIFICANT EVENTS - continued
2. Segment information - continued
(2) Reporting segment's financial information - continued
External revenue by geographical region of source and non-current assets by geographical location - continued
Unit: RMB
Item (Note) 31/12/2025 31/12/2024(restated)
Non-current assets located in Chinese mainland 2840637901.25 2937949867.88
Non-current assets located in Mexico 1385750809.57 1435328170.09
Non-current assets located in Taiwan China 905231812.35 795449320.67
Non-current assets located in France 538982612.60 532723321.04
Non-current assets located in the Vietnam 771345749.86 634784543.25
Non-current assets located in Hong Kong 531620648.79 514709593.87
Non-current assets located in Germany 204057170.09 156206074.98
Non-current assets located in Poland 265440205.80 277240390.09
Non-current assets located in the United States 117613170.33 125890659.03
Non-current assets located in Tunisia 85962223.71 71773990.72
Non-current assets located in the United Kingdom 25364386.90 26208078.91
Non-current assets located in the Czech Republic 19698993.76 19991281.42
Non-current assets located in Japan 512120.05 510673.32
Total 7692217805.06 7528765965.27
Note: The above non-current assets exclude other equity instrument investments other non-current financial
assets deferred tax assets and non-current assets related to discontinued operations.Degree of reliance on major customers
Information of major customers whose revenue accounts for 10% or more of the total revenue
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024 (restated)
Proportion to the Proportion to the
Customer name Total operating Total operating
total operating total operating
income income
income (%) income (%)
Company E 23431035895.42 40.17 19433583828.36 32.72
Total 23431035895.42 40.17 19433583828.36 32.72
Inter-segment transfers are measured on the basis of actual transaction prices. Segment revenue and segment
expenses are determined on the basis of the actual revenue and expenses of each segment. Segment assets and
liabilities are allocated according to the attributable assets employed by a segment in its operating activities and
the attributable liabilities resulting from the operating activities of a segment.
237 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO MAJOR ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Notes receivable
(1) Categories of notes receivable
Unit: RMB
Category 31/12/2025 31/12/2024
Bank acceptances 93702359.76 66017318.26
(2) As at 31 December 2025 the Company had no pledged notes receivable.
(3) As at 31 December 2025 the Company had no notes receivable that had been endorsed or discounted
and were not yet matured at the balance sheet date.
(4) As at 31 December 2025 the Company made no allowance for credit loss since the Company considered
that the accepting banks of the bank acceptances held by it were of high ratings and no significant credit
risk was expected to exist.
(5) As at 31 December 2025 the Company had no notes receivable that have been actually written off.
2. Accounts receivable
(1) Disclosure by methods for determining credit loss
As part of the Company's credit risk management the ECLs on accounts receivable are assessed using the aging
analysis approach. According to the Company's assessment of credit risk there is no significant difference in the
losses among different customer groups and the aging reflects the solvency of customers when the accounts
receivable are due.At 31 December 2025 the credit risk and ECLs on accounts receivable were as follows:
Unit: RMB
31/12/2025
Aging Expected average loss rate
Gross carrying amount Allowance for bad debts Carrying amount
(%)
Within the credit
0.002566971142.1121907.492566949234.62
period
1-30 days overdue 0.02 291908417.70 49125.53 291859292.17
31-60 days
0.781248867.719783.361239084.35
overdue
61-90 days
9.4126783.652520.1624263.49
overdue
91-180 days
100.00324390.68324390.68-
overdue
More than 180
----
days overdue
Total 0.01 2860479601.85 407727.22 2860071874.63
238 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Accounts receivable - continued
At 31 December 2024 the credit risk and ECLs on accounts receivable were as follows:
Unit: RMB
31/12/2024
Aging Expected average loss rate
Gross carrying amount Allowance for bad debts Carrying amount
(%)
Within the credit
0.013219723890.88207306.163219516584.72
period
1-30 days overdue 0.13 207614212.98 276778.59 207337434.39
31-60 days
3.997966685.56318008.397648677.17
overdue
61-90 days
40.993935.471613.292322.18
overdue
91-180 days
----
overdue
More than 180
----
days overdue
Total 0.02 3435308724.89 803706.43 3434505018.46
The expected average loss rate mentioned above is based on the historical actual credit loss rates and the current
conditions as well as the forecast of future economic conditions. In 2025 the Company's valuation method and
significant assumptions remain unchanged.
(2) Changes in allowances for bad debts
Unit: RMB
Changes for the year
Category 31/12/2024 31/12/2025
Reversal Write-off
Allowance for bad debts by
803706.43(395979.21)-407727.22
aging matrix
(3) There are no accounts receivable that have been actually written off in the year.
(4) Top five closing balances of accounts receivable categorised by debtor
Unit: RMB
Proportion to the total Allowance for bad
Accounts receivable at 31 December
Name accounts receivable at debts at 31 December
2025
31 December 2025 (%) 2025
Company E 2168470710.28 75.81 18506.54
UGI 224830150.95 7.86 -
Company T 104973156.14 3.67 895.88
ASE Inc. 102184368.87 3.57 -
Company O 88572669.60 3.10 755.91
Total 2689031055.84 94.01 20158.33
239 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
3. Other receivables
(1) Disclosures by aging:
Unit: RMB
31/12/2025
Aging Allowance for bad Proportion of
Amount
debts provision (%)
Within 1 year 307186667.44 - -
(2) Classification by nature
Unit: RMB
Gross carrying Gross carrying
Nature of other receivables amount at 31 amount at 31
December 2025 December 2024
Cash pooling receivables from related- party 281152000.00 627536000.00
Services and purchase rebates receivable 20117928.31 -
Advances for third parties 2837107.88 5848753.72
Advance payments for employees 1231372.70 764515.41
Amounts due from related parties 1083384.95 1175641.72
Receivables from third parties for equipment transfers 565888.69 35798.23
Receivables from related parties for equipment transfers 188034.91 6866692.14
Principal of investment receivable - 594607.64
Others 10950.00 451125.18
Total 307186667.44 643273134.04
(3) The Company recognises credit losses on its other receivables on an individual asset basis. As at 31
December 2025 no allowance for ECLs has been made and no allowance for ECLs has been reversed
or collected due to the low probability that the Company's other receivables will not be collected.
(4) Top five closing balances of other receivables categorised by debtor
Unit: RMB
Proportion to the
total other Allowance for bad
Nature of the
Name 31/12/2025 receivables at 31 Aging debts at 31
amount
December 2025 December 2025
(%)
Universal Scientific
Industrial
281152000.00 91.52 Fund allocations Within 1 year -
De México S.A. De
C.V.Company O 20117928.31 6.55 Advances Within 1 year -
Amounts due
FINANCIèRE AFG
938766.54 0.31 from related
S.A.S. Within 1 year
parties
Company E 565888.69 0.18 Advances Within 1 year -
Company T 450877.50 0.15 Advances Within 1 year -
Total 303225461.04 98.71 -
240 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Long-term equity investments
Details of long-term equity investments:
Unit: RMB
Changes for the year Explanation of the
Accountin Proportion of the Proportion of the
Increase inconsistency between the
g Gains or losses ownership voting power Cash dividends
Name of the investee 31/12/2024 Increase in the Decrease in from stock Impairment 31/12/2025 proportions of the
methodolo arising from interest held in held in investee for this year
year the yea option allowance ownership interest and the
gy investments investee (%) (%)
grants voting power in the investee
Universal Global Technology Cost
3623769178.88 - - - - - 3623769178.88 100 100 N/A -
Co. Limited method
The remaining 50% equity
interest is held by Universal
USI Electronics (Shenzhen) Cost
397355784.61 - - - - - 397355784.61 50 100 Global Technology Co. -
Co. Ltd. method
Limited the Company's
wholly-owned subsidiary.Universal Global Technology Cost
270481856.76 - - - - - 270481856.76 100 100 N/A 1200000000.00
(Kunshan) Co. Ltd. method
Universal Global Technology Cost
1352592905.24 - - - - - 1352592905.24 100 100 N/A 900000000.00
(Shanghai) Co. Ltd. method
Universal Global Electronics Cost
50000000.00 - - - - - 50000000.00 100 100 N/A -
(Shanghai) Co. Ltd. method
The 100% equity interest is
held by Universal Global
Universal Global Scientific
N/A 162885607.67 - - - - - 162885607.67 N/A N/A Technology Co. Limited -
Industrial Co. Ltd.the Company's wholly-
owned subsidiary.Universal Global Technology Cost
796689605.53 - - - - - 796689605.53 100 100 N/A 300000000.00
(Huizhou) Co. Ltd. method
The remaining 89.58%
equity interest is held by
Cost Universal Global
FAFG 393342321.82 - - - - - 393342321.82 10.42 100 -
method Technology Co. Limited
the Company's wholly-
owned subsidiary.Universal Optoeletronics Co. Cost
- 60000000.00 - - - - 60000000.00 100 100 N/A -
Ltd. method
Questyle Audio Technology Equity
3902360.54 - (3456866.76) (445493.78) - - - N/A N/A See Note (V) 11 for details -
Co. Ltd. method
Total 7051019621.05 60000000.00 (3456866.76) (445493.78) - - 7107117260.51 2400000000.00
Note: As at 31 December 2025 the ability of the investee in which the Company holds long-term equity investments to transfer funds to the Company is not restricted.
241 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
5. Operating income and operating costs
(1) Details of operating income and operating costs
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024
Item
Revenue Cost Revenue Cost
Principal operating
20855938185.6619036814071.4821942023457.2520016489569.49
activities
Other operating
6394171.6272893.097241061.3929157.23
activities
Total 20862332357.28 19036886964.57 21949264518.64 20016518726.72
(2) Analysis of principal operating income and principal operating costs by product categories:
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024
Item Principal operating Principal operating Principal operating Principal operating
income costs income costs
Communication
12898929035.7811842981832.1814156689612.8713085836678.43
products
Consumer
6908072270.526397495447.936758838013.066136975843.09
electronic products
Cloud and storage
511056265.84302099904.36414378292.45256736818.92
products
Automotive
480080495.43441437743.47561998219.44493564463.58
electronic products
Others 57800118.09 52799143.54 50119319.43 43375765.47
Total 20855938185.66 19036814071.48 21942023457.25 20016489569.49
(3) Other operating income and other operating costs:
Unit: RMB
Amount incurred in 2025 Amount incurred in 2024
Item Other operating Other operating
Other operating costs Other operating costs
income income
Scrap income 6269626.15 - 7095918.45 -
Others 124545.47 72893.09 145142.94 29157.23
Total 6394171.62 72893.09 7241061.39 29157.23
6. Investment income
Details of investment income
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Cash dividends from subsidiaries 2400000000.00 -
Investment income on disposal of held-for-trading financial
82092879.2016375459.81
assets
Investment income on disposal of long-term equity investments 3452633.24 -
Losses on long-term equity investments accounted for under
(445493.78)(3459733.12)
the equity method
Total 2485100018.66 12915726.69
242 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
7. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary information 2025 2024
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 3067316203.27 829231279.04
Add: Losses on impairment of assets 8428589.65 15060813.56
Gains (losses) on impairment of credit (395979.21) 765483.93
Depreciation of fixed assets 366647564.74 339825221.52
Depreciation of right-of-use assets 12466226.28 12232069.48
Amortisation of intangible assets 3010713.05 1685448.26
Amortisation of long-term prepaid expenses 7507931.46 10230256.93
Amortisation of deferred income (17234350.50) (7126104.37)
Gains on disposal of fixed assets intangible assets and
(5732557.48)(692982.05)
other long-term assets
Losses on retirement of fixed assets 1362219.05 77111.11
Losses on changes in fair values 1893905.35 5988719.20
Financial expenses 190646367.23 125710411.77
Investment income (2485100018.66) (12915726.69)
Equity-settled share-based payments - 3197618.64
Decrease (increase) in deferred tax assets 3123887.33 (4879069.74)
Decrease (increase) in inventories 124586887.92 (116260380.26)
Decrease (Increase) in operating receivables 521720544.99 (565177174.84)
Increase (decrease) in operating payables (1185664622.72) 616332650.17
Net cash flow from operating activities 614583511.75 1253285645.66
2. Significant investing and financing activities that do not
involve cash receipts and payments:
Acquisition of long-term assets with debts 115397333.14 63545966.35
Increase in right-of-use assets 14948176.42 1198052.08
Convertible corporate bonds due within one year 30534465.55 37230089.82
3. Net changes in cash and cash equivalents:
Closing balance of cash 5658300305.69 3171249867.11
Less: Opening balance of cash 3171249867.11 3166517228.25
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 2487050438.58 4732638.86
243 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
7. Supplementary information to the cash flow statement - continued
(2) Composition of cash and cash equivalents
Unit: RMB
Item 31/12/2025 31/12/2024
I. Cash 5658300305.69 3171249867.11
Including: Cash on hand - -
Bank deposits that are readily available for
5658300305.693171249867.11
payment
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 5658300305.69 3171249867.11
(3) Cash and bank balances not included in cash and cash equivalents
Unit: RMB
Item 31/12/2025 31/12/2024 Reason
Interest receivable on
Cash and bank balances 10114161.30 4327939.79
demand bank deposits
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
(1) Related parties of the Company
The details of the subsidiaries of the Company are set out in Note (VII) 1. The details of the associates and joint
ventures of the Company are set out in Note (VII) 2. The details of other related parties are set out in Note (XI).
4.
244 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Related party transactions
(2.1) Purchase and sales of goods rendering and receipt of services
Purchase of goods/receipt of services
Unit: RMB
Detail of the related Amount incurred in
Related party Amount incurred in 2024
party transaction 2025
Purchase of
Universal Global Industrial Co. Ltd. 516705068.94 61260754.83
materials
Purchase of
ASE Electronics Inc. 2110335.65 4144954.49
materials
Universal Global Technology Purchase of
248381.501557780.80
(Kunshan) Co. Ltd. materials
Universal Global Technology Purchase of
133496.5646770.31
(Shanghai) Co. Ltd. materials
Universal Global Technology Purchase of
9051.8518180.37
(Huizhou) Co. Ltd. materials
Universal Global Technology Co. Purchase of
-489774135.11
Limited materials
Universal Scientific Industrial Purchase of
-2039941.52
De México S.A. De C.V. materials
Purchase of
FINANCIèRE AFG S.A.S. - 44068.05
materials
Taitech Precision Electronic Purchase of
-21910.86
(Kunshan) Co. Ltd. materials
Purchase of
ASE Inc. - 42.60
materials
Total 519206334.50 558908538.94
Universal Global Scientific Industrial
Commissions 51706465.18 56325128.17
Co. Ltd.Universal Global Scientific Industrial
Test service fee 50080024.08 49808155.80
Co. Ltd.ASE Corporate Services (Shanghai)
Receipt of services 27380378.89 26070229.17
Limited
Universal Global Technology Co.Receipt of services 21482596.80 20257669.80
Limited
USI America. Inc. Receipt of services 14219807.49 -
Universal Scientific Industrial (France) Receipt of services 5620647.38 -
Asteelflash Suzhou Co. Ltd. Receipt of services 3564932.63 1412023.16
USI Science and Technology
Receipt of services 2264151.00 6037735.90
(Shenzhen) Co. Ltd.Shanghai Dingxu Property
Receipt of services 2067404.64 1995231.21
Management Co. Ltd.ASE Assembly & Test (Shanghai)
Receipt of services 1169823.00
Limited
Universal Global Technology
Receipt of services 583728.60 4880882.50
(Shanghai) Co. Ltd.Total 180139959.69 166787055.71
The above transactions are executed at the prices agreed on by both parties.
245 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Related party transactions - continued
(2.1) Purchase and sales of goods rendering and receipt of services - continued
Sales of goods/Rendering of services:
Unit: RMB
Detail of the related Amount incurred in
Related party Amount incurred in 2024
party transaction 2025
Universal Global Industrial Co. Ltd. Sales of goods 1008568809.63 1254570561.89
ASE Inc. Sales of goods 412991272.69 258806405.49
Universal Global Technology
Sales of goods 76143914.83 87612481.93
(Shanghai) Co. Ltd.Universal Scientific Industrial Vietnam
Sales of goods 18563591.27 862502.52
Company Limited
Universal Global Technology
Sales of goods 3911917.28 2834399.38
(Kunshan) Co. Ltd.Universal Global Technology
Sales of goods 25549.82 1216186.48
(Huizhou) Co. Ltd.Universal Scientific Industrial De
Sales of goods 20942.89 53066.20
México S.A. De C.V.Asteelflash Suzhou Co. Ltd. Sales of goods - 145749.20
Total 1520225998.41 1606101353.09
ASE Inc. Rendering of services 6765392.09 7380813.02
FINANCIèRE AFG S.A.S. Rendering of services 3616587.47 3232221.45
Universal Global Technology Rendering of
1244652.06-
(Shanghai) Co. Ltd. services
Hischmann Car Communication
Rendering of services 1192693.82 N/A
GmbH
ISE labs China. Ltd. Rendering of services 316031.46 1008545.54
Universal Scientific Industrial De
Rendering of services 232187.17 557439.06
México S.A. De C.V.Hirschmann Car Communication Inc. Rendering of services 191391.71 N/A
Hirschmann Car Communication
Rendering of services 185077.00 N/A
(Shanghai) Co. Ltd.Hischmann Car Communication S.A.S. Rendering of services 45141.77 N/A
Universal Global Technology
Rendering of services 15533.02 -
(Huizhou) Co. Ltd.Universal Global Technology
Rendering of services 9309.24 10586337.21
(Kunshan) Co. Ltd.Universal Global Scientific Industrial
Rendering of services 7137.62 -
Co. Ltd.Universal Scientific Industrial Vietnam
Rendering of services - 56798.10
Company Limited
Universal Global Industrial Co. Ltd. Rendering of services - 4327.00
Total 13821134.43 22826481.38
The above transactions are executed at the prices agreed on by both parties.
246 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Related party transactions - continued
(2.2) Leases with related parties
The Company as a lessor:
Unit: RMB
Type of leased Lease income Lease income
Name of the lessee
assets recognised in 2025 recognised in 2024
Universal Global Technology (Shanghai) Machinery and
72893.0929157.23
Co. Ltd. equipment
Total 72893.09 29157.23
The above transactions are executed at the prices agreed on by both parties.The Company as lessee:
Unit: RMB
Right-of-use asset
Type of leased Interest expenses on
Name of the lessor leases added in
assets leases for 2025
2025
Leasing of
ASE Assembly & Test (Shanghai) Limited - 1327823.06
business premises
The above transactions are executed at the prices agreed on by both parties.Unit: RMB
Right-of-use asset
Type of leased Interest expenses on
Name of the lessor leases added in
assets leases for 2024
2024
Leasing of
ASE Assembly & Test (Shanghai) Limited - 1711886.60
business premises
The above transactions are executed at the prices agreed on by both parties.
247 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Related party transactions - continued
(2.3) Financing with related parties
Unit: RMB
Amount incurred in 2025 31/12/2025
Amount
Related party Annual interest rate
Amount lent collected Amount
(Note)
Lent to - Cash pool trading (Note)
One month Term
Universal Scientific Industrial De México
SOFR +40 base 284120000.00 290504000.00 281152000.00
S.A. De C.V.points
USD: One month
Universal Global Technology Co. TERM SOFR +40
57358400.00397358400.00-
Limited base points
RMB: 2.20%
Note: The amount recovered from cash pool trading for the year include exchange differences at the period end.Unit: RMB
Amount incurred in 2024 31/12/2024
Amount
Related party Annual interest rate
Amount lent collected Amount
(Note)
Lent to - Cash pool trading (Note)
One month Term
Universal Scientific Industrial De México
SOFR +40 base 284496000.00 280268000.00 287536000.00
S.A. De C.V.points
Universal Global Technology Co.
2.20%510000000.00524135000.00340000000.00
Limited
Universal Global Technology (Huizhou)
2.20%150000000.00200000000.00-
Co. Ltd.Note: The amount recovered from cash pool trading for the year include exchange differences at the period end.The interest income for 2025 is RMB17847682.75 (2024: RMB28140093.18) and the interest not received at
the end of the year is nil (31 December 2024: nil).Note: The Company entered into a cash pool entrustment loan agreement with the bank for entrusted loans in
which the Company is the leading party and Universal Global Technology (Shanghai) Co. Ltd. USI
Electronics (Shenzhen) Co. Ltd. Universal Global Technology Co. Limited Universal Global
Technology (Kunshan) Co. Ltd. Universal Global Technology (Huizhou) Co. Ltd. Universal Scientific
Industrial Vietnam Company Limited and Universal Scientific Industrial De México S.A. De C.V. are
participants.
248 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Related party transactions - continued
(2.4) Assets transfer with related parties
Unit: RMB
Detail of the
Amount incurred in Amount incurred in
Related party related party
20252024
transaction
Universal Global Technology (Shanghai) Purchase of fixed
11600805.8412504933.30
Co. Ltd. assets
Purchase of fixed
ISE labs China. Ltd. 8691164.34 -
assets
Universal Scientific Industrial Vietnam Purchase of fixed
5662072.02-
Company Limited assets
Purchase of fixed
Universal Global Industrial Co. Ltd. 5031071.24 23556749.46
assets
Universal Global Technology (Kunshan) Purchase of fixed
13988.0927470.30
Co. Ltd. assets
Taitech Precision Electronic (Kunshan) Co. Purchase of fixed
-276000.00
Ltd. assets
Universal Global Technology (Huizhou) Purchase of fixed
-6183.33
Co. Ltd. assets
Total 30999101.53 36371336.39
Universal Scientific Industrial Vietnam Sales of fixed
2510521.79751711.69
Company Limited assets
Universal Global Technology (Shanghai) Sales of fixed
465851.534038012.27
Co. Ltd. assets
Universal Global Technology Sales of fixed
430964.721449656.00
(Kunshan) Co. Ltd. assets
Universal Global Scientific Industrial Sales of fixed
574.132195754.46
Co. Ltd. (Note) assets
Siliconware Precision Industries Co. Sales of fixed
-6768750.00
Ltd. assets
Sales of fixed
ISE labs China. Ltd. - 920532.11
assets
Total 3407912.17 16124416.53
Note: Purchase fixed assets on behalf of Universal Global Industrial Co. Limited.The above transactions are executed at the prices agreed on by both parties.
(2.5) Interest expenses with related parties
Unit: RMB
Detail of the related Amount incurred in Amount incurred in
Related party
party transaction 2025 2024
Interest expenses on
USI Enterprise Limited 417636.08 38777856.86
convertible bonds
(2.6) Compensation for key management personnel
Unit: RMB
Amount incurred in Amount incurred in
Item
20252024
Compensation for key management personnel 23521163.36 28248523.85
249 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(3) Amounts due from/to related parties
(3.1) Amounts due from related parties
Unit: RMB
31/12/202531/12/2024
Item Related party
Gross carrying amount Gross carrying amount
Accounts
Universal Global Industrial Co. Ltd. 224830150.95 282730277.61
receivable
Accounts
ASE Inc. 102184368.87 140550057.87
receivable
Accounts Universal Global Technology
16155960.9715554304.92
receivable (Shanghai) Co. Ltd.Accounts Universal Scientific Industrial Vietnam
5720461.98827.61
receivable Company Limited
Accounts
Hirschmann Mobility Holding GmbH 1259560.38 -
receivable
Accounts Universal Global Technology
355750.67297440.49
receivable (Kunshan) Co. Ltd.Accounts Universal Scientific Industrial De
247413.76445371.70
receivable México S.A. De C.V.Accounts
Hirschmann Car Communication Inc. 202121.79 -
receivable
Accounts Hirschmann Car Communication
196181.62-
receivable (Shanghai) Co. Ltd.Accounts Hischmann Car Communication
47672.48-
receivable S.A.S.Accounts Universal Global Technology
901.294133.96
receivable (Huizhou) Co. Ltd.Total 351200544.76 439582414.16
Unit: RMB
31/12/202531/12/2024
Item Related party
Gross carrying amount Gross carrying amount
Universal Scientific Industrial De
Other receivables 281152000.00 287536000.00
México S.A. De C.V. (Note)
Other receivables FINANCIèRE AFG S.A.S. 938766.54 890642.76
Universal Global Technology
Other receivables 128153.41 32947.67
(Shanghai) Co. Ltd.Universal Global Technology
Other receivables 128066.67
(Kunshan) Co. Ltd.Universal Scientific Industrial Vietnam
Other receivables 52320.91 37712.14
Company Limited
Universal Global Technology
Other receivables 16465.00
(Huizhou) Co. Ltd.Other receivables Universal Global Industrial Co. Ltd. 7647.33
Universal Global Technology Co.Other receivables 340000000.00
Limited (Note)
Siliconware Precision Industries Co.Other receivables 6828980.00
Ltd.Other receivables ISE labs China. Ltd. 252051.29
Total 282423419.86 635578333.86
250 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(3) Amounts due from/to related parties - continued
(3.1) Amounts due from related parties - continued
Note: The Company entered into a cash pool entrustment loan agreement with the bank for entrusted loans in
which the Company is the leading party and Universal Global Technology (Shanghai) Co. Ltd. USI
Electronics (Shenzhen) Co. Ltd. Universal Global Technology Co. Limited Universal Global
Technology (Kunshan) Co. Ltd. Universal Global Technology (Huizhou) Co. Ltd. Universal Scientific
Industrial Vietnam Company Limited and Universal Scientific Industrial De México S.A. De C.V. are
participants.Unit: RMB
31/12/202531/12/2024
Item Related party
Gross carrying amount Gross carrying amount
Other non-current ASE Assembly & Test (Shanghai)
396980.57409781.71
assets Limited
(3.2) Amounts due to related parties
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Accounts payable Universal Global Industrial Co. Ltd. 140154796.41 59663412.30
Universal Global Scientific Industrial
Accounts payable 15568349.19 -
Co. Ltd.Accounts payable Universal Scientific Industrial (France) 5040825.92 -
Accounts payable USI America. Inc. 3232182.69 -
Accounts payable Asteelflash Suzhou Co. Ltd. 851920.97 -
Universal Global Technology
Accounts payable 345869.71 836.20
(Shanghai) Co. Ltd.Accounts payable ASE Electronics Inc. 66570.89 847261.43
Universal Global Technology
Accounts payable 54712.71 231113.49
(Kunshan) Co. Ltd.Universal Scientific Industrial De
Accounts payable 7211.55 1268524.85
México S.A. De C.V.Universal Global Technology (Huizhou)
Accounts payable 3885.28 1704.91
Co. Ltd.Universal Global Technology Co.Accounts payable - 117692013.37
Limited
Accounts payable FINANCIèRE AFG S.A.S. - 826.67
Total 165326325.32 179705693.22
251 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVI) NOTES TO ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(3) Amounts due from/to related parties - continued
(3.2) Amounts due to related parties - continued
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Universal Global Scientific Industrial 14172735.70
Other payables 11756553.63
Co. Ltd.ASE Corporate Services (Shanghai) 1922413.32
Other payables 2240789.35
Limited
Universal Global Technology Co. 1703650.80
Other payables 1855603.20
Limited
Shanghai Dingxu Property 182208.25
Other payables 230735.98
Management Co. Ltd.ASE Assembly & Test (Shanghai) -
Other payables 320134.25
Limited
USI Science and Technology 200000.00 4200000.00
Other payables
(Shenzhen) Co. Ltd.Universal Global Technology 16769.20 -
Other payables
(Shanghai) Co. Ltd.Other payables Asteelflash Suzhou Co. Ltd. - 553145.65
Total 16620585.61 22734153.72
Unit: RMB
Item Related party 31/12/2025 31/12/2024
ASE Assembly & Test (Shanghai)
Lease liabilities 31764489.15 31669194.59
Limited
Unit: RMB
Item Related party 31/12/2025 31/12/2024
Bonds payable USI Enterprise Limited - 785428252.70
252 / 253UNIVERSAL SCIENTIFIC INDUSTRIAL (SHANGHAI) CO. LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(XVII) SUPPLEMENTARY INFORMATION
1. Breakdown of non-recurring profit or loss for the current period
Unit: RMB
Item Amount Description
Gains or losses on disposal of non-current assets including
See Notes (V) 55 59
those charged off for which provision for impairment of 203325038.86
and 61 for details
assets has been made
Government grants recognised in profit or loss (other than
those closely related to the Company's business in line
See Notes (V) 54 for
with the national regulations available under established 30997721.69
details
standards and having a continuous impact on the
Company's profit or loss)
Gains or losses on changes in the fair value of financial
assets and financial liabilities held by non-financial
enterprises and gains or losses on disposal of financial See Notes (V) 55 and 56
155340141.68
assets and financial liabilities other than those used in for details
the effective hedging activities relating to the Company's
normal businesses
Reversal of allowance for impairment on receivables See Notes (V) 4 for
3658249.59
subject to impairment testing on an individual basis details
One-time costs incurred by enterprises due to the fact that
the relevant business activities are no longer sustainable (109627486.97)
such as expenses for relocating employees
Effects on profit or loss of one-off adjustment to profit or
loss for the period according to the requirements of tax (19128013.42)
laws and accounting laws and regulations
Other non-operating income and expenses other than the See Notes (V) 60 and 61
63381721.25
above for details
Less: Income tax effects 24785695.23
Effects attributable to minority interests 47451.47
Total 303114225.98
2. Return on net assets and earnings per share ("EPS")
The return on net assets and EPS has been prepared by Universal Scientific Industrial (Shanghai) Co. Ltd. in
accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering of
Securities No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised 2010)
issued by China Securities Regulatory Commission.Unit: RMB
Weighted average Earnings per share
Profit for the reporting year return on net assets Basic earnings per Diluted earnings
(%) share per share
Net profit attributable to ordinary shareholders of the
9.98%0.850.84
Company
Net profit after deduction of non-recurring profits or losses
8.35%0.710.71
attributable to ordinary shareholders of the Company
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