2025 Annual Report of Acter Technology Integration Group Co. Ltd.

Company Code: 603163 Company Abbreviation: Acter Group

Acter Technology Integration Group Co. Ltd.

2025 Annual Report

1 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Important

I. The board of directors and senior management of the Company hereby guarantee the contents

contained in the annual report (hereinafter referred to as “this Report”) are true accurate intact

and free of any false records misleading statements or major omissions; otherwise they shall bear

the individual and joint legal liabilities arising therefrom.II. All directors of the Company attended the board meeting.III. ShineWing Certified Public Accountants LLP (special general partnership) has issued a

standard unqualified audit report for the Company.IV. Liang Jinli the director of the Company Zhu Qihua the person in charge of accounting and

Xiao Jingxia the director of the accounting firm (accounting director) hereby declare that the

financial statements set out in this Report are true accurate and intact.V. Proposals for profit distribution or conversion of provident fund to capital stock during the

reporting period ratified in the form of board resolution

The Company held the 5th Meeting of the 3rd Board of Directors on March 27 2026 which reviewed

and approved the Proposal on the Profit Distribution Plan for the Year 2025. The 2025 profit distribution

pre-plan is as follows: Based on the total share capital registered on the equity distribution record date a

cash dividend of RMB 6.5 (tax-inclusive) per 10 shares will be distributed to all shareholders. As of

December 31 2025 the Company’s total share capital was 100000000 shares resulting in a proposed

total cash dividend of RMB 65000000 (tax-inclusive).Furthermore the 2nd Meeting of the 3rd Board of Directors held on August 7 2025 reviewed and

approved the Proposal on the Profit Distribution Plan for the First Half of Year 2025. The 2025 semi-

annual profit distribution plan was: Based on the total share capital registered on the equity distribution

record date a cash dividend of RMB 1.5 (tax-inclusive) per 10 shares will be distributed to all

shareholders. This interim dividend was distributed on September 5 2025 with a total distribution amount

of RMB 15000000 (tax-inclusive).In summary the Company’s estimated total cash dividend distribution for 2025 is RMB 80000000

(tax-inclusive) accounting for 51.76% of the Company’s net profit attributable to shareholders of the

listed company for 2025.As of the end of the reporting period relevant information regarding the existence of undistributed

losses in the parent company and their impact on matters such as the Company’s profit distribution.□ Applicable ? N/A

VI. Risk Disclosure of Forward-Looking Statements

? Applicable □ N/A

2 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

The forward-looking statements in this Report including future plans development strategies etc.do not constitute the Company’s substantial commitments to investors who are kindly reminded of the

investment risks.VII. Whether there is non-operational appropriation of funds by controlled shareholders and other

related parties

No

VIII. Whether there is any violation of the required decision-making procedures for the provision

of external guarantees

No

IX. Whether more than half of the total directors are unable to guarantee the truthfulness accuracy

and intactness of the annual report disclosed by the Company

No

X. Significant Risk Warning

The Company has elaborated the possible relevant risks in this Report. For details please refer to thepossible risks mentioned in “(IV) Possible Risks in VI. Discussion and Analysis of the Company’s FutureDevelopment of Section III: Management Discussion and Analysis”.XI. Others

□ Applicable ? N/A

3 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Table of Contents

Section I Definitions ............................... 5

Section II Company Profile and Key Financial Indic... 8

Section III Management Discussion and Analysis ..... 14

Section IV Corporate Governance Environment and So.. 45

Section V Milestone Events ......................... 66

Section VI Changes in Shares and Information about.. 91

Section VII Relevant Information of Bonds .......... 99

Section XIII Financial Statements .................. 99

The full text and abstract of this Report signed by the present legal

representative and sealed by the Company

The financial statements signed and stamped by the director of the Company

the person in charge of accounting and the director of the accounting firm

Catalog of Reference (accounting director)

Documents The original audit report sealed by the accounting firm and signed and sealed

by the certified public accountants;

The originals of all the Company’s documents and the original manuscript of

the announcements publicly disclosed in the newspapers designated by the

CSRC during the reporting period

4 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section I Definitions

I. Definitions

In this Report unless the context otherwise requires the following terms shall have the meanings set out

below:

Definitions of the common terms

The Company we Acter Group refer to Acter Technology Integration Group Co. Ltd.Sheng Huei (Suzhou) Engineering Co. Ltd. the

Sheng Huei Limited refer to

predecessor of the Company

Sheng Huei International Co. Ltd. a direct controlling

Sheng Huei International refer to

shareholder of the Company

Acter Co. Ltd. an indirect controlling shareholder of the

Acter (Taiwan) refer to

Company

Suzhou Songhuei Business Management Consulting

Suzhou Songhuei refer to Partnership (limited partnership) an employee

shareholding platform of the Company

Suzhou Shengzhan Business Management Consulting

Suzhou Shengzhan refer to Partnership (limited partnership) a platform for

shareholding by the Company’s employees

Acter (Shenzhen) refer to Shenghuei Engineering Technology (Shenzhen) Co. Ltd.Shenzhen Dingmao refer to Shenzhen Dingmao Trading Co. Ltd.Acter (Vietnam) refer to Sheng Huei Engineering Technology Company Limited

Acter (Hong Kong) refer to Acter International Limited

Acter (Singapore) refer to Acter Technology Singapore Pte. Ltd.Acter (Indonesia) refer to Pt. Acter Technology Indonesia

Acter (Malaysia) refer to Acter Technology Malaysia Sdn. Bhd.Acter (Thailand) refer to Acter Technology Company Limited

Space (Thailand) refer to Space Engineering Company Limited

New Point (Seychelles) refer to New Point Group Limited

PT ACTER INTEGRATION TECHNOLOGY

Indonesia Joint Venture refer to

INDONESIA

HER SUO (Taiwan) refer to HER SUO ENG. CO. LTD.Enrich (Taiwan) refer to Enrich Tech Co. Ltd.NOVA (Taiwan) refer to NOVA Technology Corp.Winmega (Taiwan) refer to Winmega Technology Corp.WASTE refer to WASTE Recovery Technology Inc.Winmax (Shanghai) refer to Winmax Technology Corp.Suzhou Winmax Technology Corp. which was

Winmax Technology/Winmax previously known as Suzhou Winmax Technology Co.refer to

(Suzhou) Ltd. and Suzhou Guanbo Controlling Technology Co.Ltd.Winmax (Singapore)/Novatech

refer to Novatech Engineering & Construction Pte. Ltd.(Singapore)

Rayzher Industrial refer to Rayzher Industrial Co. Ltd.Winmax (Malaysia) refer to Winmax Technology Malaysia Sdn.Bhd.Reporting period refer to The period from January 1 2025 to December 31 2025

The Articles of Association of Acter Technology

Articles of Association refer to

Integration Group Co. Ltd.Shareholders’ meeting of Acter Technology Integration

Shareholders’ meeting refer to

Group Co. Ltd.The board of directors of Acter Technology Integration

Board of directors refer to

Group Co. Ltd.CSRC refer to China Securities Regulatory Commission

Company Law refer to The Company Law of the People’s Republic of China

5 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Securities Law refer to The Securities Law of the People’s Republic of China

RMB Yuan RMB 10000 RMB Renminbi/Chinese Yuan RMB 10000 RMB 100

refer to

100 Million million

An enclosed space for high-end manufacturing industry

also known as a clean plant and dust-free room to control

airborne particles harmful gases microorganisms

temperature relative humidity spatial airflow

Clean room refer to

distribution airflow speed in all directions as well as

vibration static electricity electromagnetic interference

and noise etc. in order to satisfy the production process

of products

The concentration of dust in the air within an air

environment. Typically it refers to the quantity of

Cleanliness refer to particles equal to or exceeding a specified particle size

within a designated volume of air. High dust load means

low cleanliness and vice versa

The business of combining software hardware and

communication technology to satisfy users’ needs for

information processing. The separated parts of the

System integration refer to integration are originally independent systems and the

parts of the integrated whole can work organically and

with each other to bring out the overall effect and achieve

the purpose of overall optimization

The connection from the main system piping to the

process equipment. The scope includes electricity water

Hook-up refer to

supply and drainage pipes process piping exhaust

systems etc.A semiconductor manufacturing process in which a

number of parts and components such as transistors

resistors capacitors etc. are fabricated on a small

IC semiconductor refer to

monocrystalline silicon wafer and assembled into a

complete electronic circuit using multi-layer wiring or

tunnel wiring

The shell in which a semiconductor integrated circuit chip

is mounted which not only plays the role of placing

Package refer to fixing sealing protecting the chip and enhancing the

electrical and thermal properties but also serves as a

bridge between the internal and external circuits of chips

refer to The general contracting of the integrated whole process

including the design procurement construction

EPCO operation etc. of engineering construction projects

entrusted by the owner in accordance with the contract

agreement

refer to The Building Information Modeling in short which is a

new tool for architecture engineering and civil

BIM engineering and is a computer-aided design tool based

on three-dimensional graphics object orientation and

architecture

refer to The Printed Circuit Board in short which is an important

electronic component the support body of electronic

PCB

components and the carrier for the electrical

interconnection of electronic components

refer to The Surface Mounted Technology in short which is a

new generation of electronic assembly technology duly

SMT

developed from the hybrid integrated circuit technology;

applied with is the surface mounting technology of parts

6 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

and components and backflow welding technology it has

become a new generation of assembly technology in

electronic product manufacturing

AMC refer to Airborne molecular contaminants

refer to Computational Fluid Dynamics in short namely

Computational Fluid Dynamics. CFD is a product of the

combination of modern fluid mechanics numerical

mathematics and computer science. It approximates the

integral and differential terms in the governing equations

CFD

of fluid mechanics into discrete algebraic forms

converting them into algebraic equation sets. These

discrete algebraic equation sets are then solved by

computers to obtain numerical solutions at discrete

time/space points.

7 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section II Company Profile and Key Financial Indicators

I. Company Information

Full Legal Name in Chinese 圣晖系统集成集团股份有限公司

Short Legal Name in Chinese 圣晖集成

Full Legal Name in English ACTER TECHNOLOGY INTEGRATION GROUP CO.LTD.Short Legal Name in English ACTER GROUP

Legal Representative Liang Jinli

II. Contacts

Board Secretary Securities Representative

Name Chen Zhihao Gao Jiejie

Address No. 189 Shilin Road Xushuguan No. 189 Shilin Road Xushuguan

Economic Development Zone Suzhou Economic Development Zone

Hi-Tech Zone Jiangsu Province China Suzhou Hi-Tech Zone Jiangsu

Province China

Tel. 0512-85186368 0512-85186368

Fax 0512-87773169 0512-87773169

E-mail acter.china@acter.com.cn 603163@acter.com.cn

III. Basic Information

Registered Address No. 189 Shilin Road Xushuguan Economic Development

Zone Suzhou Hi-Tech Zone Jiangsu Province China

Historical Changes in Registered Address N/A

Office Address No. 189 Shilin Road Xushuguan Economic Development

Zone Suzhou Hi-Tech Zone Jiangsu Province China

Zip Code of the Office Address 215151

The Company’s Official Website www.acter.com.cn

E-mail acter.china@acter.com.cn

IV. Information Disclosure and Retention Site

Name and website of the media for the STCN (http://www.stcn.com/)

Company’s disclosure of annual report

Website of the stock exchange for www.sse.com.cn

publishing the Company’s annual report

Retention site of the Company’s annual The Company’s board office at No. 189 Shilin Road

report Xushuguan Economic Development Zone Suzhou Hi-

Tech Zone Jiangsu Province China

V. Corporate Stock

Corporate Stock

Stock Type Stock Exchange Stock Abbreviation Stock Code Stock Abbreviation

Before Change

A-share Shanghai Stock Acter Group 603163 N/A

Exchange

8 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

VI. Other Relevant Information

ShineWing Certified Public Accountants LLP

Firm Name

(special general partnership)

8/F Block A Fuhua Mansion No. 8

Accounting firm hired by the Office Address Chaoyangmen North Street Dongcheng

Company (domestic) District Beijing China

Name of the

Signatory Liu Yuehua Wang Ping

Accountants

Firm Name Soochow Securities Co. Ltd.Office Address No. 5 Xingyang Street Suzhou Industrial Park

Name of Signatory

Sponsor Xia Jianyang Zhang Boxiong

Sponsor institution for Representative

performing supervisory October 13 2022 to December 31 2024

responsibilities continuously As of December 31 2025 the project invested

during the reporting period Period of by raising funds from the Company’s initial

Continuous public offering of shares has not been

Supervision completed the sponsor institution still needs to

perform the supervisory responsibilities for the

storage and use of the raised funds.VII. Key Accounting Data and Financial Indicators for the Previous Three Years

(I) Key Accounting Data

In RMB Yuan

YoY Change

Key Accounting Data 2025 2024 2023

(%)

298850473320076973172008924995

Operating revenue 48.85.21.98.68

209292502.5153760188.6180777300.8

Total profit 36.12

489

Net profit attributable to 154546143.1 114402314.3 138590474.4

35.09

shareholders of listed companies 1 6 2

Net profit attributable to

154388632.7114319346.1136061341.3

shareholders of the listed company 35.05

730

after extraordinary gains and losses

Net cash flows from operating 144165160.5 133522931.2

-3708149.80 N/A

activities 3 3

YoY change

End of 2025 End of 2024 End of 2023

(%)

Net assets attributable to 1168451808 1110435199 1082257514

5.22

shareholders of listed companies .31 .21 .27

235995131819525108831904362490

Total assets 20.87.22.69.44

(II) Key Financial Indicators

YoY Change

Key Financial Indicators 2025 2024 2023

(%)

Basic earnings per share (RMB

1.551.1435.961.39

Yuan/share)

Diluted earnings per share (RMB

1.551.1435.961.39

Yuan/share)

Basic earnings per share after 1.54 1.14 35.09 1.36

9 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

extraordinary gains and losses

(RMB Yuan/share)

Weighted average return on net

13.6610.563.1013.67

assets (%)

Weighted average return on net

assets after extraordinary gains and 13.65 10.55 3.10 13.42

losses (%)

Explanation for key accounting data and financial indicators of the Company for the previous three years

as of the end of the reporting period

□ Applicable ? N/A

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

(I) Difference in net profit and net assets attributable to shareholders of the listed company between

the financial reports disclosed in accordance with international accounting standards and those

disclosed in accordance with China accounting standards

□ Applicable ? N/A

(II) Difference in net profit and net assets attributable to shareholders of the listed company between

the financial reports disclosed in accordance with overseas accounting standards and those disclosed

in accordance with China accounting standards

□ Applicable ? N/A

(III) Explanation for the Differences between Domestic and Overseas Accounting Standards:

□ Applicable ? N/A

IX. Key Financial Data of 2025 by Quarter

In RMB Yuan

Q4

Q1 Q2 Q3

(October-

(January-March) (April-June) (July-September)

December)

720497551.5

Operating revenue 574535583.39 821446425.58 872025172.70

4

Net profit attributable to

shareholders of listed 28951322.33 33512994.37 33182584.32 58899242.09

companies

Net profit after

extraordinary gains and

losses attributable to 28465867.03 34209965.43 32857945.83 58854854.48

shareholders of listed

companies

Net cash flows from 177026939.3

-70977694.9714752631.2423363284.88

operating activities 8

Explanation for differences between quarterly data and data in disclosed periodic reports

□ Applicable ? N/A

10 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

X. Non-recurring Profit and Loss and Amount

? Applicable □ N/A

In RMB Yuan

Amount for Note (If Amount for Amount for

Non-recurring Profit and Loss Item

2025 Applicable) 2024 2023

Profits or losses on disposal of non-

current assets including elimination of 442259.80 -8175.93 52564.23

provision for asset impairment

Government grants recognized in

current profit or loss except for those

government grants that are closely

related to the Company’s normal 3731552.0

227523.20433289.18

business operations in line with 0

national policies and in accordance with

defined criteria and have a continuing

impact on the Company’s profit or loss

Profits or losses from changes in fair

value of financial assets and liabilities

held by non-financial enterprises and

profits or losses from the disposal of

financial assets and liabilities except

for effective hedging business related to

the Company’s normal business

operations

Occupancy fees charged to non-

financial enterprises recognized in

profit or loss for the period

Profits or losses on entrusted

investment or asset management

Profits or losses on entrusted external

loans

Losses on assets due to force majeure

such as natural disasters

Reversal of provision for impairment of

receivables individually tested for

impairment

Gain arising from the difference

between the cost of investment in

subsidiaries associates and joint

ventures and the fair value of net

identifiable assets of the investee at the

time of investment acquisition

Subsidiaries arising from a business

combination under the same control Net

gain or loss for the period from the

beginning of the period to the date of

the combination

Gain or loss on exchange of non-

monetary assets

Profits or losses on debt restructuring

One-time costs incurred by the

enterprise due to discontinuation of

relevant business activities such as

employee relocation expenses

One-time impact on profit or loss due to

11 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

adjustments in tax accounting and

other laws and regulations.One-time share-based payment

expenses recognized due to cancellation

or modification of the share incentive

plan

Gains or losses arising from changes in

the fair value of employee remuneration

payable after the feasible date for cash-

settled share-based payments

Gains or losses from changes in fair

value of investment properties

subsequently measured using the fair

value model

Profits or losses from transactions with

an apparent unfair price

Gains or losses arising from

contingencies unrelated to the

Company’s normal business operations

Custodian fee income from entrusted

operations

Non-operating revenue and expenses

-505344.98-317988.82-811609.16

other than those mentioned above

Other profits or losses that meet the

definition of non-recurring profits or

losses

Less: Income tax effect 4785.03 24156.20 445099.41

Effect of minority interests (after tax) 2142.65 -1725.46

2529133.1

Total 157510.34 82968.23

2

The Company shall state why if it recognizes the items not listed in the Interpretative Announcement for

Information Disclosure of Companies Issuing Public Securities No. 1 - Non-Recurring Profit and Loss as

non-recurring profit and loss items and that the amount of such items is large or if it defines the non-

recurring profit and loss items listed in the Interpretative Announcement for Information Disclosure of

Companies Issuing Public Securities No. 1 - Non-Recurring Profit and Loss as recurring profit and loss.□ Applicable ? N/A

Ⅺ. Companies with Equity Incentive Plans or Employee Stock Ownership Plans May Choose to

Disclose Net Profit after Deducting the Effect of Share-based Payments

□ Applicable ? N/A

Ⅻ. Items Measured at Fair Value

? Applicable □ N/A

In RMB Yuan

Current period Amount of impact

Item Opening balance Closing balance

changes on current profit

Structured deposits 50025000.00 -50025000.00 -25000.00

Strategic

investments in 12947918.04 14523380.46 1575462.42

Wafer Works

Receivables

2499031.973581195.461082163.49

financing

Total 65471950.01 18104575.92 -47367374.09 -25000.00

12 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

XIII. Others

□ Applicable ? N/A

13 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section III Management Discussion and Analysis

Ⅰ. The Company’s Business during the Reporting Period

(Ⅰ) The Company’s Main Business Products and Applications

The Company specializes in cleanroom system integration engineering services covering the entire

EPCO industry chain of “engineering construction design + procurement + construction + maintenance.”

Its downstream sectors include IC semiconductors precision manufacturing PCB optoelectronic panels

biotech medical and other fields. Since 2007 the Company has gradually established subsidiaries in

Vietnam Malaysia Indonesia Thailand and other countries to explore the Southeast Asian market. It is

one of the few domestic general contractors with cross-sectoral and cross-border cleanroom engineering

service capabilities.Cleanrooms as key supporting facilities for semiconductor chip manufacturing and precision device

processing can precisely control core indicators such as cleanliness and temperature/humidity of the

production environment providing a stable production environment for high-end manufacturing processes.They are an essential infrastructure foundation for the implementation and upgrading of capacity in

downstream high-tech industries.The technological R&D and industrial application of cleanroom system integration engineering differ

from traditional industrial models. Their core lies in enhancing overall operational efficiency and

application value through the optimization of construction methods material adaptation and the organic

integration of equipment systems. This field requires customized system integration based on the industry

characteristics and specific needs of the project owner. By integrating multiple professional technical

systems such as architecture electromechanics air conditioning fire protection instrumentation control

pipeline installation and project management the Company constructs and delivers an overall operational

system and environmental solution highly tailored to the client’s production processes.(II) The Company’s Business Model

The Company as the one-stop professional service provider of clean room system integration

engineering solutions for advanced manufacturing industries is capable of implementing a complete

industry chain of system integration ranging from engineering design to procurement construction

operation and maintenance. While implementing projects the Company purchased the required

equipment and materials centrally based on the specific project conditions and subcontracted the clean

room system project construction. The Company was also responsible for organizing and coordinating the

contracting units of each system supervising and guiding them and coordinating the overall progress of

the project. The Company earned profits by providing clients with clean room project total solutions.

1. Sales Mode

The Company mainly provides clean room engineering services for large-scale enterprises in the

semiconductor electronics and other industries. The Company’s marketing staff obtains client resources

by serving existing clients continuously and cooperating with new clients recommended by the existing

ones exploring new clients through searching market information etc. and makes contact with them on

business. The Company mainly approaches clients through invitation for bidding and commercial

negotiation and clients’ bidding. The bidding mode of the Company is generally as follows: Obtaining

14 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

bidding information purchasing proposals passing tenderer’s qualification examinations paying bidding

deposit preparing bidding documents bidding for projects on sites opening bids on site obtaining the

notification of successful bid and signing the contract etc.

2. Procurement Mode

The Company procures construction materials in accordance with the contract signed with the owner

or contractor mainly including construction materials and equipment. The Company prepares the

procurement plan based on the project cost budget and the requirements of the project execution schedule;

prepares and executes the corresponding procurement plan based on the specific project. The person in

charge of the project prepares the procurement plan according to the project progress project material

input plan processing schedule of customized materials etc. and the procurement period of each type of

materials is clearly defined.

3. Engineering Contracting Mode

In accordance with the Construction Law of the People’s Republic of China Civil Code of the

People's Republic of China Labor Law of the People’s Republic of China Provisions on the

Administration of the Qualifications of Construction Enterprises and other relevant laws and regulations

as well as the project construction contract signed with the owner the Company subcontracts the clean

room construction projects according to the specific clean room projects during the implementation stage.In case of any restrictive clauses or explicit provisions in the general contract the Company shall obtain

the consent of the owner before selecting the contracting manufacturer. The Company centrally

coordinates organizes supervises guides and uniformly manages the subcontractors of each system

during the construction process.The Company’s Procurement Department is responsible for maintaining the list of suppliers and

evaluating subcontractors based on their qualifications financial strength engineering achievements etc.In case of any subcontracting needs the person in charge of the project will initiate a requisition for

subcontracting and the Procurement Department will sign a contract with the subcontractor which is

selected after comparing all subcontractors’ experience technology price etc. with the approval of the

corresponding supervisor. Subsequently the Company organizes engineers and technicians to give

technical briefings to the subcontractors and conducts training supervision and management of the

subcontractors in accordance with the terms of the contract design documents and construction

specifications to ensure the normal progress of the construction.(Ⅲ) Performance Drivers and Industry Adaptability

As a core supporting industry for the high-end manufacturing sector the overall demand for the

cleanroom engineering industry continues to grow steadily. The core driving logic is clear and strong: the

global semiconductor industry is experiencing a sustained recovery and rebound domestic semiconductor

capacity is undergoing iterative upgrades the localization substitution process is accelerating

comprehensively and the rapid development of the AI computing power industry is driving large-scale

expansion of high-end manufacturing capacity. The convergence of these multiple positive factors is

driving a steady increase in market demand for cleanroom engineering providing high-quality industry

conditions for the Company’s performance growth.Acter Group’s operating income achieved growth in 2025 which is aligned with the development

trend and demand direction of the high-tech cleanroom engineering industry confirming the consistency

between the Company’s business strategy and industry development. The Company deeply cultivates the

core semiconductor track accurately positions itself in the high-boom segment of the industry and

accelerates the advancement of overseas market layout. Its business layout is fully in line with the

development mainline and demand expansion direction of the cleanroom engineering industry with

performance growth rate matching the industry prosperity and no abnormal fluctuations deviating from

the industry development trend. In summary the Company’s performance growth in 2025 relies on the

general background of overall industry recovery and demand expansion combining industry

commonalities with its own operational advantages and the growth is supported by a solid industry

foundation and sustainability.Explanation of significant new non-core business activities conducted by the Company during the

reporting period.□ Applicable ? N/A

II. Situation of the Company’s Industry during the Reporting Period

(I) Basic Overview and Development Stage of the Industry

15 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

The Company is a professional service provider offering total solutions for cleanroom system

integration engineering to the advanced manufacturing industry. According to the classification standard

of the Industrial Classification for National Economic Activities (GB-T4754-2017) and the Guidelines for

the Industry Classification of Listed Companies (Revised in 2012) issued by the CSRC the Company’s

cleanroom engineering service business falls under “E Construction” and specifically the sub-category

“E49 Construction Installation Industry.” From the perspective of the industry chain the cleanroom

industry can be divided into upstream supply midstream construction and downstream application.Upstream industry involves the suppliers of raw materials and equipment such as building materials

system equipment and electromechanical equipment and exerts direct influence on the progress and

completion of projects. Their prices affect the industry’s costs directly and the profits of industry

enterprises significantly.The Company’s industry belongs to midstream which mainly includes engineering service

companies specialized in engineering survey engineering design and engineering construction. The

integration engineering service industry of clean room system refers to the engineering services for clients

such as the turnkey contracting services for clean rooms which are provided between project owners and

subcontractors of engineering materials equipment and projects based on owner’s needs and by virtue of

engineering technologies in different fields.The cleanroom engineering industry is a core supporting industry serving high-end manufacturing.Its downstream covers strategic emerging industries such as IC semiconductors optoelectronic displays

precision manufacturing and biopharmaceuticals. Industry development is deeply intertwined with

downstream industry capacity expansion technological iteration and the localization substitution process.In 2025 the cleanroom engineering industry entered a mature development stage characterized by

parallel large-scale expansion and high-quality upgrading. It has moved away from extensive growth

towards a refined development path of higher technical barriers specialized services and global expansion.Overall industry demand remains high particularly for high-end cleanroom engineering in the

semiconductor sector which continues to be robust and serves as the core engine of industry growth.(III) Cyclical Characteristics of the Clean Room Industry

The cleanroom engineering industry exhibits no significant independent cyclical characteristics. Its

development trend is highly tied to the capital expenditure cycles of downstream high-end manufacturing

industries national industrial policy orientation and the macroeconomic environment. It is also closely

linked to the technological iteration and capacity expansion of downstream industries such as

semiconductors new displays and new energy.When downstream industries are in a cycle of capacity expansion and technological upgrading

demand for cleanroom engineering rises correspondingly. Industry cycles are hedged by factors such as

policy support localization substitution and the transfer of global industrial chains leading to a flattening

of cyclical fluctuations and sufficient long-term growth resilience. In 2025 driven by technological

upgrades like 5G and AI chips the global semiconductor industry saw strong downstream capital

16 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

expenditure willingness and upward industry demand providing a favorable external environment for the

Company's business expansion.(IV) The Company’s Status in the Industry

The Company focuses on providing clean room system total solutions for high-tech industries. It is

also one of China’s few engineering service companies that are specialized in different industrial fields

and have accumulated experience of project construction in different countries and regions at the same

time.The Company has the capability and experience for cleanroom construction across the entire

semiconductor industry chain. It boasts a strong brand influence mature project implementation

experience and a comprehensive service system in the high-end cleanroom segment of IC semiconductors

and has established long-term stable strategic cooperative relationships with high-quality downstream

leading clients with significant competitive advantages in cleanroom fields such as packaging precision

manufacturing and PCB accumulating deep client resources among leading companies in various sectors.Leveraging the recovery of the global semiconductor industry accelerated localization substitution

and industry dividends from capacity expansion the Company’s market share is steadily increasing and

its industry recognition is continuously improving.(V) Major Laws and Regulations Applicable to the Industry and the Impact of Industrial Policies

The current laws and regulations on the clean room system integration engineering services provided

by the Company mainly cover industry qualification management business standards and quality

management. China has implemented strict qualification management for the clean room industry and

established a strict market access mechanism. The level of qualification is directly related to enterprises’

capacity of undertaking businesses.The 2025 Report on the Work of the Government for the Year stated the need to stimulate digital

economy innovation vitality continue promoting the “AI+” action better combine digital technology with

manufacturing advantages and market advantages support the widespread application of large models

and vigorously develop next-generation intelligent terminals such as intelligent connected new energy

vehicles AI-enabled mobile phones and computers intelligent robots as well as intelligent manufacturing

equipment. For strategic emerging industries like semiconductors and integrated circuits the State

continues to introduce supporting policies for production expansion support R&D subsidies and

industrial chain self-reliance increasing policy and financial support for high-end manufacturing directly

driving the continuous release of downstream cleanroom engineering demand.In 2025 multiple laws regulations departmental rules and standards were issued at the national and

industry levels continuously optimizing the industry development environment and improving the

standard system which is beneficial for the standardized and high-quality development of the cleanroom

engineering industry in the long term. The Ministry of Housing and Urban-Rural Development issued the

Standard for Construction and Acceptance of Pharmaceutical Industry Cleanroom (GB/T51466-2025)

further standardizing the construction and acceptance processes for cleanroom. Multiple national and

international standards in the cleanroom and related controlled environment fields were implemented

refining technical requirements for cleanliness monitoring micro-vibration control airborne chemical

contaminant control etc. promoting alignment of domestic industry technical standards with international

norms. The refinement of the standard system forces companies in the industry to enhance their

technological R&D engineering construction and quality control capabilities accelerating survival of the

fittest in the industry. This benefits high-quality companies with sufficient technical reserves and

standardized project management driving the entire industry towards higher-end and standardized

development.With the continuous advancement of clean production energy saving and emission reduction

policies green low-carbon and energy-efficient operations have become core development directions for

the cleanroom engineering industry. Policies encourage companies to research and apply energy-saving

equipment and low-carbon construction processes thereby promoting the industry’s green transformation.The Company closely follows policy orientation continuously optimizes engineering technical solutions

and layouts energy-saving and low-carbon cleanroom engineering projects. This not only aligns with

industry development trends but also further enhances product added value and market competitiveness.The Company and its subsidiaries have paid close attention to all key and latest policies and laws at

home and abroad continuously adjusted the Company’s business strategy based on the latest market trends

in order to effectively grasp the impact on the Company’s financial business.Ⅲ. Discussion and Analysis of Operating Conditions

17 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

In 2025 with the deep application of next-generation information technologies such as cloud

computing IoT big data 5G/6G artificial intelligence and industrial digitalization driven by the rapid

development of downstream industries like data centers and autonomous driving coupled with the

deepening localization process of the domestic semiconductor industry and the steady improvement of

self-sufficiency capabilities overall industry capital expenditure and capacity construction maintained a

growth trend. Simultaneously new technologies and processes within the industry continued to iterate and

upgrade further driving semiconductor production line renovations and technological innovations.Against this backdrop the cleanroom engineering industry as a key infrastructure provider for

semiconductor manufacturing has encountered a favorable development opportunity period driven by

both downstream market demand expansion and technological upgrades.The engineering industry market is full of changes. Only by complying with the latest market trends

and expanding the development potential of engineering undertakings can the industry survive and even

grow quickly under the market mechanism of selecting the superior and eliminating the inferior. In

consideration of the fiercer competition in China’s engineering sector economic scale operational

efficiency and integrated services play a decisive role in the success of this sector. A sound engineering

system and solid professional technology are the only ways to expand engineering business development

space and create an ecosystem. In the current competitive landscape of the engineering industry the ability

to quickly control raw material sources and provide clients with fast and advanced engineering services is

a key factor in achieving a leading position in the industry. The Company’s management adheres to a

sound business philosophy anchors its core business for continuous deep cultivation leverages the

diversified layout advantage of “multiple clients multiple industries multiple regions multiple trades”

maintains strategic focus in a complex and changing market environment successfully achieved its 2025

operating targets and set new historical records for both revenue and net profit.Leveraging its overseas operation experience and resource accumulation the Company has

accurately entered core regions of the global electronic industrial chain transfer such as Southeast Asia

and successively won bids for and implemented overseas cleanroom engineering projects in Thailand

Vietnam and other countries. Its localized service capabilities and project management and control havebeen continuously improved establishing an operational pattern of “two-way order receiving and two-way development” featuring “domestic semiconductor capacity upgrading + overseas industrial chaintransfer” with the business structure continuously optimized.IV. Analysis of the Company’s Core Competitiveness during the Reporting Period

? Applicable □ N/A

(Ⅰ) Diverse Industry Accumulation Better System Integration Faster Problem Solving

Diversified industrial layout is Acter Group’s core strength and a key advantage that distinguishes it

from ordinary cleanroom engineering enterprises. Instead of being confined to a single niche market the

Company has deeply laid out multiple high-tech industries including semiconductors optoelectronic

panels precision manufacturing and biotech/medical care. Through years of project practice and technical

refinement it has accumulated cleanroom engineering achievements covering multiple industries

scenarios and high standards precipitated rich industry experience and customized service capabilities

and truly realized “one enterprise adapting to multiple industries one solution addressing multiple needs”.This cross-industry diversified accumulation enables Acter Group to deeply understand the pain points

specification and standards and process details of cleanroom construction in different industries. It can

not only accurately match the personalized needs of a single industry but also avoid engineering

shortcomings by virtue of cross-field experience providing professional cleanroom solutions tailored to

the production characteristics of various clients.A cleanroom project is by no means a superposition of individual construction links but a full-chain

systematic project covering planning and design equipment selection construction commissioning and

operation and warranty maintenance. Only through efficient system integration can project quality be

guaranteed costs controlled and construction periods shortened. Relying on profound industrialaccumulation Acter Group has built a full-process integration system of “consultation + design +construction + management + operation and maintenance” coordinating various resources such as human

resources technology equipment and supply chains to achieve seamless connection from program design

to implementation and operation. It creates high-quality efficient and cost-effective cleanroom projects

helping clients quickly realize production capacity commissioning.High-tech industry projects feature tight schedules and high standards. In the construction and

operation of cleanroom projects delayed handling of any detailed issues will affect project progress and

production safety. Relying on diversified industrial experience and a sound management and control

18 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.system Acter Group has established a problem-solving mechanism of “rapid prediction efficient responseand precise disposal”. For unexpected problems and potential hazards in all links of cleanroom engineering

design construction and operation and maintenance it can achieve early detection quick handling and

comprehensive guarantee for the smooth progress of projects.(II) Wide-Ranging Service Layout Faster Response to Clients and More Convenient On-Site

Services

Against the backdrop of the global layout of the high-end manufacturing industry and the accelerated

pace of project implementation the service radius and response efficiency of cleanroom engineering

directly determine the commissioning progress of clients’ projects and the quality of subsequent operation

and maintenance support. Based on industry development trends and core client needs Acter Group hasbuilt a wide-ranging service network featuring “full domestic coverage in-depth overseas layout andprecise localized implementation” becoming a reliable partner for clients’ cross-regional layout and

global production.In terms of domestic layout Acter Group has deeply cultivated core domestic industrial clusters and

built multi-level service stations around high-tech industry-intensive regions such as the Yangtze River

Delta and the Pearl River Delta. Whether it is a semiconductor industrial park an optoelectronic

manufacturing base a biopharmaceutical factory or a precision manufacturing plant it can quickly

connect with local professional service teams without cross-regional resource coordination. From pre-

project site survey mid-term construction supervision to later operation and maintenance inspections the

entire process achieves on-site connection and efficient linkage greatly reducing communication costs

travel time and the risk of delayed response and ensuring the efficient progress and stable operation of

various domestic cleanroom projects.In terms of overseas layout adhering to a forward-looking strategic vision the Company has long

been deeply engaged in core Southeast Asian markets successively establishing localized subsidiaries in

Vietnam Thailand Malaysia Indonesia and other countries and building a sound overseas service system

to achieve cross-regional coordinated allocation of technology human resources and materials. Relying

on localized teams to deeply understand local policies and regulations industrial standards and

construction environments it provides localized and customized cleanroom engineering services for

overseas clients’ needs such as factory construction and commissioning production line upgrading and

cleanroom maintenance. This not only ensures the compliant implementation of projects but also realizes

on-site disposal of unexpected problems and rapid response to urgent needs helping overseas clients seize

industrial opportunities and quickly release production capacity. This is also the core reason for the

continuous growth of Acter Group’s overseas orders and the continuous improvement of its market

influence.

19 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(Ⅲ) Experienced Management Team Professional Technical Talents and Higher Execution

Efficiency

The Company’s core management team has been deeply engaged in the cleanroom engineering field

for more than 20 years with an average tenure of over 15 years. They have deeply participated in the

entire process of projects for leading clients in high-end industries such as semiconductors precision

manufacturing and optoelectronic displays boasting forward-looking layout and cross-industry

integration capabilities. Characterized by stable decision-making lean management and a global

perspective the team accurately grasps industry technological iteration and market trends and coordinates

the efficient implementation of domestic and overseas projects. 70% of the middle management team is

promoted from the grassroots with a low turnover rate ensuring service continuity and experience

inheritance and achieving precise control of project quality progress and costs through a mature

management system.The Company has an engineering and technical team of over 600 people including 365 employees

with vocational skill certificates 59 registered Level A and B constructors specialized in architecture

electromechanical engineering etc and 95 employees with intermediate and senior titles establishing a

full-chain talent echelon covering design construction R&D and operation and maintenance. The team

is proficient in core technologies such as ISO Class 1 ultra-high cleanliness construction AMC (Airborne

Molecular Contamination) control micro-vibration control and precise temperature and humidity

regulation. Relying on tools such as CFD simulation BIM digital modeling and engineering databases

and with hundreds of patents and mature processes it accurately meets the stringent environmental

requirements of semiconductors advanced packaging and other fields. With the triple guarantee of

“professional team + standardized processes + digital tools” it achieves an efficient closed-loop of project

execution with full-chain coordination from program design procurement and construction to operation

and maintenance services and efficient achievement of various milestone nodes.The team has both domestic and foreign engineering compliance and implementation experience

enabling rapid adaptation to different regional standards and synchronous and efficient advancement of

domestic and overseas projects.

20 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(Ⅳ) Accumulated Outstanding Achievements and Reputable Brand: Stronger Market

Competitiveness

High-tech workshop in high-end electronics industry entails huge investment and high stability of

clean room. For the purpose of reducing investment risks and costs and ensuring product yield owners

are apt to prefer leading well-experienced engineering service enterprises with outstanding performance.Adhering to the development strategy of “multiple clients multiple industries multiple trades andmultiple regions” the Company by virtue of its outstanding service quality efficient project execution

capabilities and professional talent team has expanded its business to major cities in many countries and

regions around the world cooperating with hundreds of world-renowned enterprises. The undertaken

projects cover industries such as semiconductors precision manufacturing optoelectronic panels

biotech/medical care commercial buildings government projects department stores and hospitals with

rich engineering achievements in air conditioning mechanical and electrical engineering cleanrooms and

other fields. As of the end of the reporting period the Company has accumulated more than 500

cleanroom-related projects including nearly 100 Class 100 and above cleanroom projects.Under the context of the rapid iteration and upgrading of high-tech industries such as semiconductors

electronic manufacturing and photoelectric display the Company as a system integration enterprise has

always worked with clients as closely as possible and witnessed each client’s growth in depth. The

Company has made transformations from technological breakthroughs to capacity expansion and from

process optimization to intelligent transformation. Based on its professional technical team flexible

solutions and efficient service system the Company offers tailored system integration services complying

with clients’ development strategies so as to help them stand out in the fierce competition.We feel blessed to establish a deep stable cooperative relationship with outstanding enterprises in

many industries during our development. Our clients cover the leading enterprises in various sub-sectors

and well-known enterprises in the upstream and downstream of the industry chain. Relying on the stable

client group duly established through long-term efforts the Company has formed the core resource

advantages to ensure the sustainable development of its business.V. Main Operations during the Reporting Period

(Ⅰ) Operational Overview

During the reporting period the Company achieved total operating revenue of RMB 2.989 billion a

YoY increase of 48.85%; the net profit attributable to shareholders of listed companies amounted to RMB

155 million a YoY increase of 35.09%; the total value of newly signed orders for the period amounted to

RMB 3.831 billion (tax-exclusive) a YoY increase of 59.99%; as of the end of the reporting period the

total value of orders in hand amounted to RMB 2.538 billion (tax-exclusive) a YoY increase of 46.28%.This was mainly because edge AI applications drove downstream industries to increase capital

expenditures. The Company seized opportunities from new construction or renovation and expansion

demands in the chip manufacturing and related supporting industries combined with continuous deep

cultivation of clients in precision manufacturing packaging and testing PCB and other industries in

Southeast Asia creating opportunities for the Company’s performance growth.

21 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

During the reporting period the gross profit margin of the Company’s main business was 10.21% a

YoY decrease of 2.3 percentage points. The level of gross profit margin is mainly determined by market

competition. Based on the comprehensive considerations of deepening cooperation with strategic clients

pre-layout in key market areas and consolidating market position the Company will strategically

undertake some projects. In the bidding for large-scale projects clients have stronger bargaining power

and competition is more intense. At the same time the projects themselves have higher requirements in

terms of system integration complexity cross-regional resource allocation and preliminary investment

which will put pressure on the overall gross profit margin in the short term. The Company will

continuously improve the overall profitability by strengthening project evaluation and cost control.In 2025 the Company achieved operating revenue of RMB 2.986 billion from its main business a

YoY increase of 48.92%.Specifically classified by the industry of downstream clients: the revenue from the IC semiconductor

industry amounted to RMB 1.784 billion accounting for 59.74% of total main business revenue a YoY

increase of 49.42%; the revenue from the precision manufacturing industry amounted to RMB 1.013

billion accounting for 33.94% a YoY increase of 63.43%; and revenue from the optoelectronics and other

industries amounted to RMB 189 million accounting for 6.32% a YoY decrease of 1.34%.Classified by engineering service content: the revenue from system integration engineering amounted

to RMB 1.689 billion accounting for 56.57% of total main business revenue a YoY increase of 73.68%;

the revenue from hook-up works amounted to RMB 265 million accounting for 8.88% a YoY decrease

22 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

of 8.01%; the revenue from other electromechanical installation engineering amounted to RMB 967

million accounting for 32.40% a YoY increase of 36.27%; and the revenue from equipment sales

amounted to RMB 64 million accounting for 2.15% a YoY increase of 86.89%.Classified by client location: the domestic revenue amounted to RMB 1.732 billion accounting for

58.01% of total revenue a YoY increase of 30.45%; the overseas revenue amounted to RMB 1.254 billion

accounting for 41.99% a YoY increase of 85.11%. The proportion of overseas operating revenue is

continuously increasing.Driven by the restructuring of global supply chains and the vigorous development of local electronics

manufacturing enterprises in Southeast Asia the Southeast Asian market has shown strong growth

potential in revenue for the cleanroom engineering industry. The Company’s subsidiaries in Vietnam

Thailand Malaysia Indonesia etc. are backed by the domestic market achieving efficient

complementarity and coordinated supply of raw materials technology and manpower. The subsidiaries

complement each other making business development increasingly flexible and resilient.Domestic projects target clients mainly across the IC semiconductor industry chain especially

upstream crystal growth cutting grinding polishing mask epitaxy factories and downstream packaging

and testing factories. Clients in the high-end PCB industry driven by AI edge applications also account

for a significant share. The laboratory engineering projects strategically undertaken by the Company

although impacting the gross profit margin during the reporting period allow the Company to accumulate

engineering track records in related industries potentially creating new revenue growth points in the future.Among all the overseas subsidiaries Acter (Vietnam) ranked among the top with 95 projects in

process. Thanks to its excellent project execution capacity and considerate services Acter (Vietnam) won

the trust of many famous clients. Its client base in Vietnam mainly consists of SMT assembly plants and

PCB manufacturers covering Wistron InfoComm ALPHA NETWORKS SIMPLO Darfon Goertek

Tripod etc. The total number of Acter (Vietnam)’s projects in process was 14 with a total amount of

RMB 1.298 billion and the main clients included UNIEQ and Peng Shen.(Ⅱ) Financial Conditions

Essentially speaking the engineering system service providers subcontract the projects that they

contract to a third party. On the basis of the nature of the project contract some of the materials and

equipment required for construction are purchased by the subcontractors while the rest are purchased in

advance according to the procurement procedure in order to satisfy the construction progress.Subcontractors must have sufficient capital and need to pay capital before undertaking large system

23 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

integration projects such as bid bond performance bond material & equipment price outsourcing costs

and warranty payment.During the reporting period the Company’s net cash flow from operating activities amounted to

RMB 144 million indicating a generally good cash flow position. At the end of the period the Company

had RMB 776 million in cash on hand and its asset-liability ratio was 49.60%. A sound financial structure

also enhances the owner’s trust in the Company.(Ⅲ) Human Resources Conditions

1. Stable Growth of Engineering and Technical Personnel

As of the end of the reporting period the Company had a total of 762 employees an increase of 6.72%

compared with the same period of last year with the number of engineering and technical personnel

increasing to 642. The number of employees with vocational skills certificates was 365 while the number

of registered Level A and B constructors specialized in architecture electromechanical engineering etc.was 59; the number of employees with intermediate and senior titles was 95. The Company has built the

3D patent matrix of “skill certification + professional qualification + title echelon” constantly which

improves the Company’s core competitiveness for large project bidding and technological innovation.

2. Continuous Advancement of Professional Skills Training

During the reporting period the Company offered internal and external courses and annual required

courses for employees who through offline face-to-face teaching were encouraged to discuss with

lecturers in depth thus promoting bilateral knowledge transfer realizing benign interaction helping

employees to improve their professional skills comprehensively and facilitating individual growth and

enterprise development at the same time. During the reporting period the Company organized 42 training

sessions by investing RMB 0.3428 million. With a total length of 10879 hours the training involved 504

employees with a per capita training length of 21.6 hours and training coverage of 96%.

3. Initial Success in Management Talent ReserveDuring the reporting period the Company successfully held the 6th “Reserve Director TrainingCamp”. Through the systematic training in such specialized fields as legal risk control cost actuarial

green construction etc. the Company built the interdisciplinary talent reserve system empowered from

different perspectives. The camp above has cultivated more than 200 reserved managers for the Company

thus improving team’ lean management level and project full-cycle control capacity effectively injecting

innovation power for the Company’s high-quality development and reinforcing the industry’s core

competitiveness constantly.(Ⅰ) Main Business Analysis

1. Analysis of changes in relevant items in the profit statement and cash flow statement

In RMB Yuan

Amount in the Same

Item Amount in the Period Change (%)

Period of Last Year

Operating revenue 2988504733.21 2007697317.98 48.85

Operating cost 2682042853.54 1755007424.22 52.82

Sales expenses 5301670.67 6781770.06 -21.82

Administrative expenses 66142614.00 62519012.85 5.80

Finance costs -15593381.84 -10917383.30 N/A

R&D expenses 31250454.73 33529705.96 -6.80

Net cash flows from operating

144165160.53 -3708149.80 N/A

activities

Net cash flows from investing

44471475.06 -78315303.53 N/A

activities

Net cash flows from fund-raising

-77864851.48 -57173481.03 N/A

activities

Taxes and surcharges 4861192.07 3455150.25 40.69

Other gains 227523.20 433289.18 -47.49

Investment income 958818.27 814005.65 17.79

Gain on change in fair value -25000.00 25000.00 -200

Credit impairment loss -11813453.19 2207755.91 -635.09

Impairment loss on assets 5508369.40 -6812588.09 N/A

24 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Gain on disposal of assets 449638.47 98152.04 358.10

Non-operating revenue 602379.74 37943.24 1487.58

Non-operating expenses 1115103.39 365007.19 205.50

Income tax expense 49281751.34 36650409.77 34.46

Minority interests 5464608.09 2707464.55 101.83

Translation differences in foreign

-7644568.62 -3756476.25 N/A

current statements

Net of tax of

other comprehensive

-319423.7740729.72-884.25

income attributable to minority

shareholders

Explanation for the changes in operating income: The operating income increased by 48.85% YoY which

was attributable to the significant growth in newly signed domestic and overseas orders and the large

volume of projects executed during the period;

Explanation for the changes in operating costs: The operating costs increased by 52.82% YoY which was

attributable to an increase in operating income that led to a corresponding increase in costs;

Explanation for changes in financial expenses: The financial expenses changed significantly compared

with the prior period which was attributable to the increase in exchange gains of overseas subsidiaries

during the period;

Explanation for the changes in net cash flow from operating activities: The net cash flow from operating

activities changed significantly compared with the prior period which was attributable to the increase in

advance project payments received and client collections during the period;

Explanation for the changes in net cash flow from investing activities: The net cash flow from investing

activities recorded a significant change compared with the prior period which was attributable to the full

redemption of structured deposits during the period;

Explanation for the changes in net cash flow from financing activities: The net cash flow from financing

activities recorded a significant change compared with the prior period which was attributable to the

repayment of bank loans by subsidiaries and the large amount of interim dividends distributed during the

period;

Explanation for the changes in taxes and surcharges: Taxes and surcharges increased by 40.69% YoY

which was attributable to the increase in prepaid value-added tax during the period that led to a

corresponding increase in accrued surtaxes;

Explanation for the changes in other income: Other income decreased by 47.49% YoY which was

attributable to the decrease in government subsidies received during the period;

Explanation for the changes in gains from fair value changes: The gains from fair value changes decreased

by 200% YoY which was attributable to the redemption of structured deposits during the period and the

reversal of the gains from fair value changes of structured deposits recognized in the prior period;

Explanation for the changes in credit impairment losses: The credit impairment losses recorded a

significant change compared with the prior period which was attributable to the increase in accounts

receivable during the period that led to a corresponding increase in the provision for bad debts;

Explanation of the changes in asset impairment losses: The asset impairment losses recorded a significant

change compared with the prior period which was attributable to the large amount of unexpired quality

deposits recovered during the period; the impairment provision of RMB 3.11 million for Boyuan’s

unexpired quality deposits made in the prior period became matured quality deposit payments and were

fully recovered during the period;

Explanation of the changes in gains on asset disposal: The gains on asset disposal increased by 358.10%

YoY which was attributable to the increase in gains from the sale of vehicles during the period;

Explanation of the changes in non-operating income: Non-operating income increased by 1487.58% YoY

which was attributable to the large amount of insurance claim payments received during the period;

Explanation of the changes in non-operating expenses: Non-operating expenses increased by 205.50%

YoY which was attributable to the payment of worker compensation and fines paid by overseas

subsidiaries during the period;

Explanation of the changes in minority interests: Minority interests increased by 101.83% YoY which was

attributable to the increase in net profits of Thai and Indonesian joint ventures during the period that led

to an increase in minority interests;

Explanation of the changes in translation differences on foreign current statements: The translation

25 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

differences on foreign current statements recorded a significant change compared with the prior period

which was attributable to the foreign currency translation differences caused by exchange rate fluctuations

in foreign currency statements during the period;

Explanation of the changes in the net of tax of other comprehensive income attributable to minority

shareholders: The net of tax of other comprehensive income attributable to minority shareholders

decreased by 884.25% YoY which was attributable to the significant fluctuation in the translation

differences on foreign current statements attributable to minority shareholders caused by exchange rate

fluctuations in foreign currency statements during the period compared with the prior period;

Explanation of the changes in income tax expense: Income tax increased by 34.46% YoY which was

attributable to the increase in total profit during the period and the relatively high overseas income tax

burden;

Detailed description of significant changes in the Company’s business type profit composition or profit

sources in the period

□ Applicable ? N/A

2. Revenue and cost analysis

? Applicable □ N/A

See the explanation of main business by industry product region and sales model for details.

(1). Information of main businesses by industry product region and distribution mode

In RMB Yuan

Main Business by Industry

YoY

YoY

Change

Gross Change in YoY Change

Operating Operating in

By Industry Profit Rate Operating in Gross

Revenue Cost Operatin

(%) Revenue Profit (%)

g Cost

(%)

(%)

IC

178365749 1614991631. Increased by

semiconduc 9.46 49.42 49.41

6.72940.01%

tor industry

Precision

101337488 902860146.3 Decreased by

manufactur 10.91 63.43 72.13

1.0604.49%

ing industry

Photoelectr

45395441.1 Decreased by

icity 45385724.01 0.02 -50.90 -38.89

119.64%

industry

Other 143223087. 117505275.1 Decreased by

17.9645.0657.88

industries 58 7 6.66%

298565090 2680742777. Decreased by

Total 10.21 48.92 52.82

6.47422.30%

Main Business by Product

YoY

YoY

Change

Gross Change in YoY Change

Operating Operating in

By Product Profit Rate Operating in Gross

Revenue Cost Operatin

(%) Revenue Profit (%)

g Cost

(%)

(%)

Clean room 195426265 1774666731. Decreased by

9.1955.0060.69

engineering 1.25 19 3.22%

Including:

168909353 1555531967. Decreased by

system 7.91 73.68 82.03

6.60204.22%

integration

Hook-up 265169114. 219134763.9 Decreased by

17.36-8.01-12.29

works 65 9 4.03%

26 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Other

electromec

967338675. 854431027.9 Decreased by

hanical 11.67 36.27 37.46

5400.77%

installation

works

Equipment 64049579.6 Decreased by

51645018.3319.3786.8983.33

sales 8 1.57%

298565090 2680742777. Decreased by

Total 10.21 48.92 52.82

6.47422.30%

Main Business by Region

YoY

YoY

Change

Gross Change in YoY Change

Operating Operating in

By Region Profit Rate Operating in Gross

Revenue Cost Operatin

(%) Revenue Profit (%)

g Cost

(%)

(%)

Domestic 173200189 1565204529. Decreased by

9.6330.4532.44

regions 4.51 31 1.36%

Including: 748945902. 625755944.2 Increased by

16.453.872.04

East China 52 8 1.49%

Central 764629148. 735466197.8 Decreased by

3.8185.2086.88

China 32 3 0.87%

Other 218426843. 203982387.2 Decreased by

6.6112.7316.54

regions 67 0 3.06%

Overseas 125364901 1115538248. Decreased by

11.0285.1194.90

regions 1.96 11 4.47%

Including: 654733308. 574551826.9 Decreased by

12.2581.5598.39

Vietnam 92 9 7.45%

113971753. Increased by

Indonesia 97389972.09 14.55 99.91 97.87

930.88%

462627852. 426064593.0 Decreased by

Thailand 7.90 161.00 172.60

6853.92%

Other 22316096.4 Increased by

17531855.9821.44-72.90-77.30

regions 3 15.24%

298565090 2680742777. Decreased by

Total 10.21 48.92 52.82

6.47422.30%

Explanation for main businesses by industry product region and distribution mode

During the reporting period the Company’s revenue from core business increased by 48.92% YoY

which was attributable to the rapid development of the artificial intelligence and semiconductor industries.The Company seized market opportunities and actively expanded its pool of new clients. Relying on the

advantages of its strategic layout in overseas markets the Company’s revenue from overseas regions

recorded significant growth while that from the domestic market maintained steady growth. By industry

segment both revenue and costs in the semiconductor sector precision manufacturing sector and other

sectors rose significantly whereas revenue in the optoelectronic sector declined as the projects undertaken

entered the final stage. By product segment cleanroom engineering other electromechanical installation

engineering and equipment sales all achieved substantial growth. The Company’s operating costs

increased by 52.82% YoY and its gross profit margin decreased by 2.30% YoY mainly due to fierce

market competition which led to a decline in the gross profit of new orders secured by the Company.

(2). Analysis of production and sales volume

□ Applicable ? N/A

(3). Fulfilment of major purchase contracts and major sales contracts

□ Applicable ? N/A

27 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(4). Cost analysis table

In RMB Yuan

By Industry

Proportio

n of

Change

Proportio of the

Proportion

n of Total Amount

in the Amount in

Amount Costs for in the Explanat

Total cost the Same

By Industry Cost Item in the the Same Period ion

for the Period of

Period Period of Compare Remarks

Current Last Year

Last Year d with the

Period (%)

(%) Same

Period of

Last Year

(%)

Equipment

14317598926248

and 53.41 50.89 60.40 Note 1

185.0151.04

materials

Constructio Labor

10835617363095

n and subcontract 40.42 41.98 47.16 Note 1

071.7579.09

installation ing

industry Labor cost 8438163 7491588

3.154.2712.64

9.587.06

Other 8104088 5029254

3.02 2.86 61.14 Note 1

expenses 1.08 6.70

26807421754142

Total 100.00 100.00 52.82 Note 1

777.42863.89

Explanation for other cost analysis

Note 1: During the reporting period the Company’s main business operating cost increased by 52.82%

YoY. Specifically equipment and materials cost increased by 60.40% labor subcontracting cost

increased by 47.16% and other expenses increased by 61.14% which was attributable to the increase in

operating revenue and the expansion of project scale leading to a significant increase in material

subcontracting and engineering costs.

(5). Change of merger scope caused by the equity change of major subsidiaries during the reporting

period

□ Applicable ? N/A

(6). Major changes in or adjustments to the Company’s business products or services during the

reporting period

□ Applicable ? N/A

(7). Major clients and major suppliers

Clients or suppliers under the same controlling party are considered as a single client or supplier for

disclosure purposes except those actually controlled by the same state-owned asset management

institution.Explanation for the presentation of the following client and supplier information calculated on a combined

basis under the same control scope

None

A. The Company’s major clients and major suppliers

? Applicable □ N/A

28 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

The sales volume of the Company’s top 5 clients amounted to RMB 1.5724508 billion accounting for

52.62% of the Company’s total annual sales volume. To be specific the sales volume of related parties in

the volume above amounted to RMB 0 million accounting for 0% of the Company’s total annual sales

volume.The procurement amount of the top 5 suppliers is RMB 355.7298 million accounting for 14.11% of the

total annual procurement amount; among them the procurement amount of related parties among the top

5 suppliers is RMB 0 million accounting for 0% of the total annual procurement amount.

B. The proportion of sales to a single client exceeding 50% of the total amount the existence of new

clients among the top 5 clients or heavy reliance on a small number of clients during the reporting

period

□ Applicable ? N/A

The proportion of procurement from a single supplier exceeding 50% of the total amount the

existence of new suppliers among the top 5 suppliers or heavy reliance on a small number of

suppliers during the reporting period

□ Applicable ? N/A

C. Company stock being subject to delisting risk warning or other risk warnings during the

reporting period

Top 5 clients

□ Applicable ? N/A

Top 5 suppliers

□ Applicable ? N/A

D. Existence of trading business revenue during the reporting period

□ Applicable ? N/A

Top 5 clients where trading business revenue accounts for over 10% of operating revenue

□ Applicable ? N/A

Top 5 suppliers where trading business revenue accounts for over 10% of operating revenue

□ Applicable ? N/A

Other notes:

None

3. Fees

? Applicable □ N/A

In RMB Yuan

2025 2024 Proportion of

Change of the

Amount in the

Proportion in Proportion of Period

Item

Amount Operating Amount Operating Compared

Revenue (%) Revenue (%) with the Same

Period of Last

Year (%)

Sales expenses 5301670.67 0.18 6781770.06 0.34 -21.82

Administrative

66142614.002.2162519012.853.115.80

expenses

R&D expenses 31250454.73 1.05 33529705.96 1.67 -6.80

29 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Finance costs - -

-0.52-0.5442.83

15593381.8410917383.30

4. R&D investment

(1). Table of R&D investment

? Applicable □ N/A

In RMB Yuan

Expensed R&D investment in the period 31250454.73

Capitalized R&D investment in the period

Total of R&D investment 31250454.73

Proportion of total R&D investment in the

1.05

operating revenue (%)

Proportion of capitalized R&D investment

(%)

(2). Table of R&D personnel

? Applicable □ N/A

Number of the Company’s R&D personnel 80

Proportion of R&D personnel in the total number of the

10.50

Company’s staff (%)

Educational Structure of R&D Personnel

Educational Structure and Number

Category of Educational Structure

of R&D Personnel

Doctorate 0

Master’s degree 2

Bachelor’s degree 60

College degree 18

Senior high school and below 0

Age Structure of R&D Personnel

Category of age structure Number

Below 30 (excluding 30) 48

30-40 (including 30 but excluding 40) 22

40-50 (including 40 but excluding 50) 9

50-60 (including 50 but excluding 60) 1

60 and above 0

(3). Remarks

□ Applicable ? N/A

(4). Reason for significant changes in the composition of R&D personnel and its impact on the

Company’s development

□ Applicable ? N/A

5. Cash flow

? Applicable □ N/A

In RMB Yuan

Item Amount in the Period Amount in the Same Change (%)

Period of Last Year

30 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Net cash flows from 144165160.53 -3708149.80

N/A

operating activities

Net cash flows from 44471475.06 -78315303.53

N/A

investing activities

Net cash flows from -77864851.48 -57173481.03

N/A

fund-raising activities

Net increase in cash and 112228989.96 -135100740.92

N/A

cash equivalents

Note: The significant change in the net increase of cash and cash equivalents compared to the prior period

is mainly due to higher sales collections during the current period resulting in a significant YoY increase

in net cash flow from operating activities.(II) Explanation for Significant Changes in Profit Due to Non-principal Business

□ Applicable ? N/A

(III) Analysis of Assets and Liabilities

? Applicable □ N/A

1. Assets and liabilities

In RMB Yuan

Proportion

Proportion of Proportion of

of Change of

Closing Closing

Closing Closing Amount at

Balance of Balance of

Balance of Balance of the End of

Item the Current the Prior Remarks

the Current the Prior Current

Period in the Period in the

Period Period Period over

Total Assets Total Assets

the Prior

(%)(%)

Period (%)

Monetary fund 77646210 57538270

32.90 29.47 34.95 Note 1

2.036.17

Trading 50025000

2.56 -100.00 Note 2

financial assets .00

Bills receivable 14984752 27398673

0.63 1.40 -45.31 Note 3.50.04

Accounts 57222894 36223357

24.25 18.55 57.97 Note 4

receivable 0.18 7.57

Receivables 3581195. 2499031.

0.15 0.13 43.30 Note 5

financing 46 97

Prepayments 85047840 11064706

3.605.67-23.14.360.26

Other 10399844 9824375.

0.440.505.86

receivables .12 86

Inventory 7003896. 3585610.

0.30 0.18 95.33 Note 6

9706

Contract assets 62772240 56590405

26.6028.9810.92

5.480.40

Other current 13230293 12151215

5.616.228.88

assets 2.48 9.50

Long-term

2421125.2342859.

equity 0.10 0.12 3.34

4223

investment

Investments in

1452338012947918

other equity 0.62 0.66 12.17.46.04

instruments

Investment 1865182. 0.08 531707.64 0.03 250.79 Note 7

31 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

properties 18

Fixed assets 59703226 56924292

2.532.924.88.02.01

Construction in 2577156.- 0.13 -100 Note 8

progress 79

Intangible 7473299. 7693073.

0.320.39-2.86

assets 32 36

Right-of-use 4247874. 4064612.

0.180.214.51

assets 96 80

Deferred tax 18987559 12755515

0.80 0.65 48.86 Note 9

assets .65 .14

Other non- 20995760 23661503

0.891.21-11.27

current assets .63 .85

Short-term 46106867 23866103

1.95 1.22 93.19 Note 10

loan .32 .44

Accounts 84807835 59878819

35.94 30.67 41.63 Note 11

payable 8.80 3.06

Payroll payable 55268012 41972766

2.34 2.15 31.68 Note 12.27.98

Tax payable 27347923 15374255

1.16 0.79 77.88 N ote 13.11.49

Other payables 24903726 24647083

1.061.261.04.87.82

Contract 12307541 88601839

5.22 4.54 38.91 Note 14

liabilities 3.44 .41

Non-current

1894011.2421048.

liabilities due 0.08 0.12 -21.77

3435

within one year

Lease 1499843. 1585929.

0.060.08-5.43

liabilities 57 64

Estimated 12951146 11183840

0.550.5715.80

liabilities .25 .39

Long-term

84420.86-65569.85-28.75

payroll payable

Deferred tax 29287330 17711782

1.24 0.91 65.36 Note 15

liabilities .01 .30

Capital stock 10000000 10000000

4.245.12

0.000.00

Capital 56263277 56263277

23.8428.82

reserves 5.45 5.45

Other - -

comprehensive 8568151. -0.36 2502891. -0.13 242.33 Note 16

income 93 67

Special 43710985 44175259

1.852.26-1.05

reserves .63 .38

Earned surplus 53063723 45818775

2.252.3515.81.06.40

Undistributed 41761247 36031128

17.7018.4515.90

profits 6.10 0.65

Minority 21002456 15857271

0.89 0.81 32.45 Note 17

interest .07 .75

Other notes:

Note 1: The monetary fund increased by 34.95% YoY which was attributable to an increase in advance

receipts from engineering contracts and higher collections from construction projects during the current

period;

32 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Note 2: The trading financial assets decreased by 100% YoY which was attributable to the redemption of

structured deposits purchased at the end of the prior period during the current period;

Note 3: The bills receivable decreased by 45.31% YoY which was attributable to a decrease in commercial

acceptance notes at the end of the current period and the maturity and cashing of bank acceptance notes

from the prior period;

Note 4: The accounts receivable increased by 57.97% YoY which was attributable to an increase in

receivables at the end of the period resulting from more construction projects during the current period;

Note 5: The receivables financing increased by 43.30% YoY which was attributable to an increase in

bank acceptance notes with high credit ratings at the end of the current period;

Note 6: The inventory increased by 95.33% YoY which was attributable to an increase in equipment and

materials stocked domestically at the end of the current period compared to the end of the prior period;

Note 7: The investment properties increased by 250.79% YoY which was attributable to the leasing of

idle company properties during the current period;

Note 8: The construction in progress decreased by 100% YoY which was attributable to the completion

of the R&D building under construction during the current period and its transfer to fixed assets;

Note 9: The deferred tax assets increased by 48.86% YoY which was attributable to an increase in

deductible temporary differences resulting from increased provisions for impairments during the current

period;

Note 10: The short-term loans increased by 93.19% YoY which was attributable to a tight cash flow

situation caused by the large scale of newly contracted engineering projects in Vietnam leading to bank

borrowings that have not yet been repaid;

Note 11: The accounts payable increased by 41.63% YoY which was attributable to an increase in

payments for materials equipment and subcontracting works resulting from more construction projects

during the current period;

Note 12: The employee compensation payable increased by 31.68% YoY which was attributable to an

increase in the amount of year-end bonuses payable;

Note 13: The tax payable increased by 77.88% YoY which was attributable to an increase in total profit

for the period and a higher overseas income tax burden leading to an increase in the amount of income

tax payable;

Note 14: The contract liabilities increased by 38.91% YoY which was attributable to an increase in

advance receipts from engineering contracts for newly received projects;

Note 15: The deferred tax liabilities increased by 65.36% YoY which was attributable to a higher amount

of deferred tax resulting from higher overseas profits during the current period;

Note 16: Other comprehensive income increased by 242.33% YoY which was attributable to significant

fluctuations in foreign currency statement exchange rates during the current period;

Note 17: The minority interests increased by 32.45% YoY which was attributable to an increase in net

profit of subsidiaries leading to an increase in income attributable to minority interests.

2. Foreign assets

? Applicable □ N/A

(1) Asset scale

Including: overseas assets of 720535222.87 (RMB Yuan) accounting for 30.53% of the total assets.

(2) Explanation for the high proportion of overseas assets

? Applicable □ N/A

In RMB Yuan

Operating Net Profit for

Name of Reason for

Operation Model Revenue for the the Reporting

Overseas Asset Formation

Reporting Period Period

Sheng Huei

Engineering

Overseas cleanroom

Technology Subsidiary 637991106.16 54428276.72

engineering business

Company

Limited

33 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

3. Restrictions on major assets as of the end of the reporting period

? Applicable □ N/A

In RMB Yuan

Balance at the

Item Balance at the End of the Year

Beginning of the Year

Margin/special purpose funds 89337129.96 486724.06

Total 89337129.96 486724.06

The Group’s other monetary funds primarily consist of margins and project-specific funds specifically

including margin deposits deposited with banks for the application of guarantee letters and project funds

that are required to be used for specific purposes as per regulations.

4. Others

□ Applicable ? N/A

(IV) Analysis on the Industry Operating Information

? Applicable □ N/A

For details please refer to “II. Situation of the Company’s Industry during the Reporting Period” in

“Section III Management Discussion and Analysis”.

34 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Analysis on the operating information of the construction industry

1. Projects completed and accepted during the reporting period

? Applicable □ N/A

In RMB 10000

House Architectur

Breakdown by Infrastructu Specialized

Constructio al Others Total

Industry res Engineering

n Decoration

Number of

685238725

projects

Total 127456.77 28.62 4735.36 132220.75

? Applicable □ N/A

In RMB 10000

Project Regions Number of Projects Total

Domestic 459 86860.52

Overseas 266 45360.23

Including:

Vietnam 195 36496.99

Indonesia 46 4690.59

Thailand 21 2471.07

Other 4 1701.58

Total 725 132220.75

Other notes:

□ Applicable ? N/A

2. Projects in process during the reporting period

? Applicable □ N/A

In RMB 10000

House Architectur

Breakdown Infrastructu Specialized

Constructio al Others Total

by Industry res Engineering

n Decoration

Number of

1475033509

projects

Total 3669.72 727028.03 - 19291.44 749989.19

? Applicable □ N/A

In RMB 10000

Project Regions Number of Projects Total

Domestic 341 470924.44

Overseas 168 279064.75

Including:

Vietnam 95 109655.22

Indonesia 53 17625.35

Thailand 14 129845.47

Other 6 21938.71

Total 509 749989.19

Other notes:

□ Applicable ? N/A

3. Major projects in process

35 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

? Applicable □ N/A

In RMB 10000

Amount Paymen

Project

Collect t

Progres

Comple Income Income ed Progres

s in

Busines Constru tion Recogn Recogn Cumula s in

Item Line

Item s ction Percent ized in ized tively Line

Amount with

Mode Period age the Cumula as of with

Expecta

(%) Period tively the End Expecta

tions or

of the tions or

Not

Period Not

Constru

Project 28371. 27428. 26846.ction 790 96.68 -437.74 Yes Yes

1494460

contract

Constru

Project 39195. 2584.4 38070. 32541.ction 480 97.13 Yes Yes

23464146

contract

Constru

Project 30459. 8452.1 28826. 20059.ction 713 94.64 Yes Yes

38001520

contract

Constru

Project 74849. 22 43775. 58522. 62935.ction 78.19 Yes Yes

4 94 months 53 61 01

contract

Constru

Project 101113 15 59191. 59191. 56405.ction 58.54 Yes Yes

5 .62 months 46 46 36

contract

Turnke

y

Project 24451. 19 14329. 14329. 13129.constru 58.60 Yes Yes

6 43 months 64 64 36

ction

contract

Tripod

Vietna

m

(Chau

Duc) Turnke

Electro y

28576.14212.14212.5654.0

nics constru 231 49.74 Yes Yes

2163630

Co. ction

Ltd. contract

Utility

System

Engine

ering

Other notes:

? Applicable □ N/A

The cost inputs in the period and cumulative cost inputs are not disclosed after considering the

Company’s commercial secrets and the sensitive information contained in the two items;

1. As the relevant transaction in Project 1 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

details of the relevant announcement please refer to the No. 2023-005 announcement disclosed by

the Company on the website of the Shanghai Stock Exchange on March 10 2023 and the difference

in the contract amount is for the additional and deducted works to be incurred in the subsequent period;

2. As the relevant transaction in Project 2 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

36 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

details of the relevant announcement please refer to the No. 2023-032 announcement disclosed by

the Company on the website of the Shanghai Stock Exchange on August 1 2023 and the difference

in the contract amount is for the additional works to be incurred in the subsequent period;

3. As the relevant transaction in Project 3 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

details of the relevant announcement please refer to the No. 2024-011 announcement disclosed by

the Company on the website of the Shanghai Stock Exchange on March 15 2024 and the difference

in the contract amount is for the additional works to be incurred in the subsequent period;

4. As the relevant transaction in Project 5 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

details of the relevant announcement please refer to the No. 2025-001 announcement disclosed by

the Company on the website of the Shanghai Stock Exchange on January 1 2025 and the difference

in the contract amount is for the additional works to be incurred in the subsequent period;

5. As the relevant transaction in Project 5 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

details of the relevant announcement please refer to the 2025-028 announcement disclosed by the

Company on the website of the Shanghai Stock Exchange on April 29 2025 and the difference in the

contract amount is for the additional works to be incurred in the subsequent period;

6. As the relevant transaction in Project 5 includes some confidential terms and for the consideration of

commercial secrets and strategic development the rivals’ specific project status is not disclosed. For

details of the relevant announcement please refer to the 2025-004 announcement disclosed by the

Company on the website of the Shanghai Stock Exchange on February 14 2025 and the difference

in the contract amount is for the project being one of the sub-projects of the winning contract.

7. The contract amount for Tripod Vietnam (Chau Duc) Electronics Co. Ltd. Utility System Engineering

differs from the amount in the 2025-056 announcement disclosed on the website of the Shanghai Stock

Exchange on October 24 2025 which was attributable to exchange rate fluctuations.

4. New projects signed cumulatively during the reporting period

? Applicable □ N/A

A total of 815 new projects were signed accumulatively during the reporting period with a total amount

of RMB 4095.9121 million (tax-inclusive) and RMB 3830.7592 million (tax-exclusive).

5. Orders in hand as of the end of the reporting period

? Applicable □ N/A

The total amount of orders in hand as of the reporting period was RMB 2.538 billion (tax-exclusive). To

be specific the amount of projects for which contracts had been signed but which hadn’t been

commenced was RMB 0 million while that of the uncompleted part of the projects in process was RMB

2.538 billion.

Other notes:

□ Applicable ? N/A

6. Others

□ Applicable ? N/A

37 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(V) Analysis on Investment Status

Overall analysis on the external equity investments

□ Applicable ? N/A

1. Significant equity investments

□ Applicable ? N/A

2. Significant non-equity investments

□ Applicable ? N/A

3. Financial assets at fair value

? Applicable □ N/A

In RMB Yuan

Accumulated

Gain or Loss

Fair Value Impairment Amount of Amount Amount at the

Opening on Fair Value

Asset Category Changes Provision in the Procurement in Sold/Redeemed Other Changes End of the

Balance Changes in the

Recognized in Period the Period in the Period Period

period

Equity

Structured

50025000.00-25000.00255000000.00305000000.00

deposits

Investments in

other equity 12947918.04 1575462.42 14523380.46

instruments

Receivables

2499031.971082163.493581195.46

financing

Total 65471950.01 -25000.00 1575462.42 255000000.00 305000000.00 1082163.49 18104575.92

Investment in securities

? Applicable □ N/A

In RMB Yuan

Securities Securities Securities Initial Capital Opening Gain or Accumula Amount Amount Investme Ending Accounti

Variety Code Abbreviat Investme Source Book Loss on ted Fair of Sold in nt Gain or Book ng Item

38 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

ion nt Cost Value Fair Value Procurem the Period Loss in Value

Value Changes ent in the the Period

Changes Recogniz Period

in the ed in

Period Equity

Stock Wafer Self- Investme

Works owned nts in

capital 1294791 1575462 1452338 other

688584

8.04 .42 0.46 equity

instrumen

ts

Total 1294791 1575462 1452338

////

8.04.420.46

Explanation for investment in securities

□ Applicable ? N/A

Investment in private equity funds

□ Applicable ? N/A

Investment in derivatives

□ Applicable ? N/A

4. Specific progress of major asset reorganization and integration during the reporting period

□ Applicable ? N/A

Independent director opinions

None

(VI) Sales of Major Assets and Equities

□ Applicable ? N/A

39 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(VII) Analysis on Major Holding and Participating Companies

? Applicable □ N/A

Information on major subsidiaries whose net profit impact exceeds 10% of the Company’s net profit

? Applicable □ N/A

In RMB 10000

Registered Operating

Company Name Company Type Main Business Total Assets Net Assets Operating Profit Net Profit

Capital Revenue

Shenghuei

Domestic

Engineering

cleanroom

Technology Subsidiary 3529.67 5352.15 4458.15 480.39 -453.45 -450.53

engineering

(Shenzhen) Co.business

Ltd.Shenzhen Domestic

Dingmao Subsidiary equipment 500.00 9825.33 6339.81 11488.89 2060.53 1545.40

Trading Co. Ltd. trading

Acter Overseas

International Subsidiary investment 2260.03 5008.74 2166.60 1085.62 352.13 294.03

Limited platform

Acter

Overseas

Technology

Subsidiary investment 1726.31 1642.01 1633.10 -19.64 -19.64

Singapore Pte.platform

Ltd.Sheng Huei

Engineering

Technology Subsidiary 3827.37 42561.29 18487.80 63799.11 6896.06 5442.83

Company

Limited Overseas

PT Acter cleanroom

Technology Subsidiary engineering 527.73 3181.80 2353.30 6992.75 683.82 522.56

Indonesia business

Acter

Technology

Subsidiary 1902.84 3140.01 1971.19 2231.61 252.27 188.58

Malaysia Sdn.Bhd

40 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Acter

Technology Co. Subsidiary 651.90 12471.47 7918.56 46262.79 3964.96 3179.34

Ltd

PT Acter

Integration

Subsidiary 2306.90 4048.21 2794.92 4385.74 675.16 536.20

Technology

Indonesia

Information on subsidiaries acquired or disposed of during the reporting period

□ Applicable ? N/A

Other notes

? Applicable □ N/A

Revenue and profits from the main business of a single subsidiary and with net profits exerting 10% or above impact on the Company’s total net profits:

In RMB 10000

Company Name Revenue from Main Business Profit from Main Business

Shenzhen Dingmao Trading Co. Ltd. 11488.89 2426.10

Sheng Huei Engineering Technology Company Limited 63799.11 7886.71

Acter Technology Co. Ltd 46262.79 3656.33

(VIII) Structured Entities Controlled by the Company

□ Applicable ? N/A

41 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

VI. Discussion and Analysis of the Company’s Future Development

(I) Industry Pattern and Trend

? Applicable □ N/A

Cleanroom engineering is a typical demand-driven industry serving as core infrastructure for high-

end manufacturing sectors including semiconductors precision manufacturing and PCBs with its

industrial development deeply integrated with industrial upgrading. Relying on the upgrading of high-end

manufacturing the cleanroom industry boasts broad market space and strong resilience with high-growth

segments such as semiconductors PCBs and edge AI serving as the core growth drivers.The latest report by the World Semiconductor Trade Statistics (WSTS) indicates that the global

semiconductor market size is projected to reach USD 772 billion in 2025 representing a YoY increase of

22.5% a growth rate significantly exceeding earlier expectations. The explosive growth of artificial

intelligence applications and the continuous expansion of data center infrastructure are driving up demand

for both logic chips and memory chips. Looking ahead to 2026 the global semiconductor market size is

expected to surpass USD 975 billion up 26.3% YoY approaching the USD 1 trillion mark. A further

report from SEMI shows that global semiconductor equipment sales are expected to hit a record high of

USD 133 billion in 2025 and are likely to exceed USD 150 billion for the first time in 2027. Driven by

sustained computing power demand the AI chip market is expanding at an accelerated pace. As large

models gradually enter large-scale application consumption of basic resources such as computing power

and storage has increased significantly and the global volume of token calls is growing exponentially.High-end demand for AI servers optical communications IC substrates and various AI application

products remains robust.Against the trend of miniaturization of electronic components only enterprises with R&D and full-

chain service capabilities can gain a foothold in the high-end market. The current cleanroom engineering

industry features a pattern of industry concentration among leading players and tiered differentiation.Leveraging its core technologies and EPCO full-chain service capabilities the Company continues to

strengthen its leading position. Amid the restructuring of the global supply chain industrial clusters have

taken shape in Vietnam Thailand Malaysia and other regions generating massive demand for

cleanrooms. The Company has made forward-looking arrangements by establishing subsidiaries in

Southeast Asia to deliver localized services and its overseas business has become a new engine for

performance growth.Future industry competition will focus on comprehensive strengths such as full-life cycle solutions

green energy conservation and cross-border services further expanding the advantages of leading

enterprises. Cleanrooms are high-energy-consumption systems and under dual-carbon policies and

enterprises’ demand for cost reduction energy conservation and low carbon emissions have become

mandatory requirements. The cleanroom engineering industry takes technology and quality as the core of

competition with energy conservation digitalization and globalization as development trends. Relying

on its core technologies full-chain services and global layout Acter Group will deepen its presence in

the high-end cleanroom engineering sector.(II) The Company’s Development Strategies

? Applicable □ N/AThe Company has always adhered to the development strategy of “multiple clients multipleindustries multiple trades and multiple regions. Client-oriented and supported by technological R&D the

Company takes cleanroom engineering services as its core business focuses on serving high-tech

industries fully implements the concept of green and energy-saving projects and follows the five-step

development path of “production sales human resources R&D and finance” committing to becoming

an internationally leading enterprise in cleanroom system integration engineering services for high-tech

industries.The Company will actively seek high-quality M&A targets continuously improve its service layout

through strategic integration accurately meet clients’ demand for single-point customization and

integrated package services further enrich its product portfolio enhance the completeness and diversity

of its product lines and continuously build core competitive advantages.

42 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(III) Operation Plan

? Applicable □ N/A

1. Short-term business development plan

(1) Multi-dimensional layout market explorationThe Company will continue to follow the strategic direction of “multiple clients multiple industriesmultiple regions and multiple trades to create a differentiated niche. It will leverage the advantages of its

multi-regional market layout deepen cooperation with existing clients seize opportunities for downstream

clients to invest and expand production in the international market collaborate with its parent company to

secure cleanroom and electromechanical engineering projects for international clients expand intoSoutheast Asia and other international markets and foster a business model of “two-way order receivingand two-way development” featuring “domestic semiconductor capacity upgrading + overseas industrialchain transfer”. It will continue to accumulate client resources in the AI upstream and downstream sectors

the full semiconductor industry chain data centers university-industry-research collaboration laboratories

and other fields and further consolidate its key role in the industrial chain.

(2) Fostering of a famous brand setting off to a new journey

The Company will continuously improve engineering quality management refine supply chain

construction and expand its professional engineering and technical service team to ensure project

construction quality and enhance the Group’s operational efficiency. It will strengthen coordination among

pre-sales in-sales and after-sales services improve service efficiency and quality respond to client needs

in a timely manner resolve client issues and enhance client stickiness and loyalty.

(3) Energy conservation environmental protection and sustainable green development

The Company will integrate technological research in green development emission reduction and

intelligence into its daily operations and project management gradually increase the application of

modularization and standardization and achieve low-carbon innovation in prefabricated construction.Through the full integration of “green planning green procurement and green construction methods” and

the application of green engineering technologies the Company will reduce operating costs improve

economic benefits minimize environmental impact and enhance its corporate image and competitiveness.

(4) Industry-university cooperation for talent cultivation

The Company will establish incentive mechanisms to encourage employees to obtain professional

qualifications in construction environmental protection and other fields and support on-the-job learning.It will adopt mentorship programs and reserve supervisor training adhering to the philosophy of “selectingcultivating employing and retaining talents” to develop grassroots cadres and core backbone personnel.Professional management training will be provided to senior talents to enhance their strategic vision and

leadership capabilities building a reserve management team.

2. Long-term business development plan

Focusing on its core business the Company will optimize and upgrade its engineering and technical

capabilities. On the basis of consolidating and maintaining existing clients in the domestic and Southeast

Asian markets it will actively expand new client resources and increase market share. It will formulate

differentiated business strategies based on market characteristics and demand in different regions and

establish a comprehensive efficient and wide-ranging marketing and service system. Through industrial

integration the Company will optimize resource allocation enhance its overall strength and give full

play to its core competitive advantages.The Company will improve its corporate governance mechanism optimize its organizational

structure strengthen internal management continuously deepen corporate culture development foster a

positive working atmosphere and build a cohesive and united team. Adhering to an open and inclusive

talent philosophy it will attract outstanding professionals from various fields focus on the cultivation and

development of its management team inject new vitality and innovative thinking into the Company and

build a high-quality management team with strategic vision innovation awareness and execution

capabilities.The Company will continue to invest in R&D resources strengthen technological innovation and

R&D capabilities and strive to achieve greater breakthroughs and progress in the field of green energy

and environmental protection. By providing advanced green energy and environmental technologies and

solutions the Company will help clients reduce energy consumption and pollutant emissions contribute

to sustainable development and fulfill its corporate social responsibilities.

43 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(IV) Possible Risks

? Applicable □ N/A

1. Risk of macroeconomic fluctuations

The Company is mainly engaged in cleanroom engineering services for high-tech industries

including IC semiconductors and optoelectronics. The markets of its downstream industries are highly

correlated with the macroeconomic cycle. Changes in economic growth rate and macroeconomic

fluctuations will directly affect the operation and development of the entire downstream industry thereby

impacting the Company’s cleanroom engineering services business. Therefore slowing economic growth

and macroeconomic fluctuations may affect the Company’s business development and pose certain risks

to its development and operations.

2. Risk of intensified industry competition

After years of development China’s cleanroom engineering industry has grown substantially and

entered a stage of steady development. With the influx of various social capital into the cleanroom industry

the number of enterprises in the sector has increased year by year resulting in fierce market competition.The Company mainly serves the electronics industry segment with strong competitiveness and certain

leading advantages. As one of the few enterprises in the industry capable of undertaking implementing

and providing full-cycle operation and maintenance services for cross-field and cross-regional projects

the Company ranks among the top players in the industry in terms of operating performance business

capabilities market brand and management level and enjoys certain industry recognition. With the

growing number of new market entrants the Company will face competition from its peers. Therefore if

the Company fails to maintain its advantages in technology management brand craftsmanship and other

aspects its industry position may be affected to a certain extent.

3. Risk of declining gross profit margin

During the reporting period the Company’s total gross profit showed an overall upward trend while

the gross profit margin of its main business continued to decline. In the future if the Company fails to

maintain its advantages in technology management brand craftsmanship and other aspects fails to adapt

to changes in market demand or is affected by intensified market competition and inadequate cost control

it may face the risk of declining gross profit margin.

4. Capital and liquidity risks

In the course of its cleanroom business there is a certain time lag between the settlement and

collection of project payments and the settlement and payment of costs such as raw materials and labor.The recovery of quality deposits after project completion and acceptance also takes a long period requiring

the Company to maintain a certain scale of working capital to ensure normal project execution.As the Company’s business scale continues to expand the amount of funds advanced by the Company

will increase accordingly leading to growing capital demand. A large number of large-scale concurrent

projects may occupy a substantial amount of the Company’s working capital within a relatively

concentrated period. If the Company fails to obtain timely financial support it may face tight cash flow

which will affect business development and expose the Company to capital and liquidity risks.

5. Exchange rate risks

The Company primarily operates within Chinese territory. With the continuous development of its

overseas business in recent years the scale of its revenue and expenditure activities in multiple currencies

across various overseas countries and regions has kept rising. Fluctuations in the exchange rate of RMB

against relevant foreign currencies and currency conversions may affect the Company’s operating costs

posing certain risks to the Company’s development and operations.(V) Others

□ Applicable ? N/A

VII. Information and Reasons for the Company’s Failure to Disclose Information in Accordance

with the Guidelines Due to Non-application of the Guidelines or for Special Reasons such as State

or Commercial Secrets

? Applicable □ N/A

For the consideration of commercial secrets the Company is exempted from disclosing the names of some

clients and suppliers.

44 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section IV Corporate Governance Environment and Social

Responsibility

I. Explanation for Corporate Governance

? Applicable □ N/A

During the reporting period the Company continuously improved its corporate governance structure

internal management and internal control system and standardized its operation in accordance with the

requirements of the Company Law the Securities Law relevant laws and regulations of the Shanghai

Stock Exchange and based on its realities. The shareholders’ meeting and the board of directors of the

Company have clear division of powers and responsibilities and each of them performs its own duties

and the decision-making is independent efficient and transparent. The board of directors of the Company

has set up specialized committees such as the Remuneration and Appraisal Committee the Audit

Committee the Nomination Committee and the Strategy and Sustainable Development Committee to

further improve the corporate governance structure of the Company. Details of the corporate governance

of the Company are as follows:

(I) The Company and its controlling shareholders: The controlling shareholders of the Company

exercise their rights and obligations in accordance with laws and effectively fulfill their obligations of

good faith to the Company and other shareholders. The Company and its controlling shareholders are

completely independent in five aspects namely business assets personnel organization and finance

and the Company has a complete business system and the ability to operate independently in the market.(II) The shareholders’ meeting is the Company’s highest authority. The Company strictly

standardizes the convening holding and deliberation procedures of the shareholders’ meeting as per the

provisions and requirements of the Articles of Association the Rules of Procedure for Shareholders’

Meetings and other regulations; invites lawyers to issue legal opinions on the legality of the shareholders’

meeting ensures the equal status of all shareholders especially minority shareholders fully exercises the

legitimate rights and interests of shareholders and ensures shareholders' right to know participate and

vote on major corporate matters.(III) The board of directors strictly exercises its powers in accordance with the Company Law the

Articles of Association the Rules of Procedure for the Board of Directors etc. including organizing and

implementing the resolutions of the shareholders’ meeting deciding on the Company’s business plans and

investment plans formulating the Company’s annual financial budget final settlement and profit

distribution plans drafting major acquisition plans and appointing or dismissing the Company’s general

manager and other senior management. All directors faithfully and diligently perform their duties actively

participate in the decision-making of the Company’s major matters and actively attend relevant training.The specialized committees under the board of directors operate well convene meetings and make

resolutions as per relevant systems and could exert their roles normally.(Ⅳ) The Company strictly follows the requirements of the Information Disclosure Management

System and the Registration Management System for Insiders; by implementing measures such as insider

registration and external information reporting registration it strengthens the management of insiders

standardizes the review process for external information reporting clarifies the obligations and

responsibilities of relevant personnel to maintain the confidentiality of undisclosed information and

enhances the Company’s awareness of information disclosure which as a result effectively avoids the

occurrence of violations in information disclosure. Meanwhile the Company strengthens communication

and interaction with investors and pays attention to maintaining favorable relations with them.Whether there is any material difference between corporate governance and the laws administrative

regulations and CSRC’s regulations on the governance of listed companies; if so state why.□ Applicable ? N/A

II. Specific Measures Taken by the Controlling Shareholders and Actual Controllers of the

Company to Ensure the Independence of the Company in Terms of Assets Personnel Finances

Organization and Business as well as the Solutions Work Progress and Follow-up Plans in Case

of the Company’s Independence Being Affected

□ Applicable ? N/A

45 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Controlling shareholders actual controllers and other parties controlled by them engaged in business that

are the same as or similar to the Company horizontal competition and impact of significant changes in

horizontal competition on the Company solutions adopted working progress and subsequent solution

plans

□ Applicable ? N/A

46 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

IV. Directors and Senior Management

(I) Changes in Shareholdings and Remuneration of In-service and Outgoing Directors and Senior Management during the Reporting Period

? Applicable □ N/A

In Share

Total Pre-

tax

Whether

Remunerati

Shareh Remunerati

Shareh on

olding on

oldings Changes Received

s at the Received

Gend Starting Date of Expiration Date of at the of Shares Reasons for from the

Name Post Age Begin from the

er Appointment Appointment End of in the Change Company

ning of Company’s

the Year during the

the Related

Year Reporting

Year Parties or

Period

Not

(RMB

10000)

Liang July 1 2019

Chairman Male 64 June 24 2028 0 0 0 Unchanged 49.53 Yes

Jinli

Vice July 1 2019

Chairman and

June 24 2028

Board

Chen Unchanged

Secretary Male 60 0 0 0 105.49 No

Zhihao Unchanged

Vice July 1 2019

Chairman January 30 2026

(Resigned)

Director and July 1 2019

Zhu

General Male 53 June 24 2028 0 0 0 Unchanged 105.31 No

Qihua

Manager

Zhang June 24 2025

Director Male 44 June 24 2028 0 0 0 Unchanged 64.21 No

Jinbao

Independent June 24 2025

Liu Qiong Male 52 June 24 2028 0 0 0 Unchanged 4.42 No

Director

Liu Independent Femal June 24 2025

55 June 24 2028 0 0 0 Unchanged 4.42 No

Tiehua Director e

47 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Dong Independent June 24 2025

Male 60 June 24 2028 0 0 0 Unchanged 4.42 No

Binghe Director

Chief July 1 2019

Xiao Femal

Financial 57 June 24 2028 0 0 0 Unchanged 37.49 No

Jingxia e

Officer

Su Director

Male 50 July 1 2019 June 24 2025 0 0 0 Unchanged 23.99 No

Yuzhou (Resigned)

Independent

Wu

Director Male 55 July 1 2019 June 24 2025 0 0 0 Unchanged 4.00 No

Weihua

(Resigned)

Independent

Femal

Gu Hailan Director 54 July 1 2019 June 24 2025 0 0 0 Unchanged 4.00 No

e

(Resigned)

Independent

Shi Kang Director Male 61 July 31 2020 June 24 2025 0 0 0 Unchanged 4.00 No

(Resigned)

Total / / / / / 0 0 0 / 411.28 /

Name Main Working Experience

Born in October 1962 with Chinese nationality of Taiwan no permanent residence in foreign countries master’s degree of EMBA senior engineer.He was the Engineering Manager of Gongshan Air Conditioning & Refrigeration Co. Ltd.; the Director and Chairman of the Board of Directors of

Sheng Huei Limited; Supervisor of Winmax (Shanghai); and Supervisor of Winmax (Suzhou); Chairman of the Board of Directors of Hengji

Construction Company Limited. Currently he is the CEO and Chairman of Acter (Taiwan); Chairman of HERSUO (Taiwan); Director of Acter

(Shenzhen); Director of Acter (Hong Kong); Director of New Point (Seychelles); Director of Sheng Huei International; Chairman of NOVA (Taiwan);

Liang Jinli

Director of Acter (Singapore); Director of Acter (Malaysia); Director of Shenzhen Dingmao; Director and CEO of Enrich (Taiwan); Chairman of

Winmega (Taiwan); Director of Winmax (Singapore); Chairman of Winmax Technology; Chairman of Winmax (Shanghai); Managing Partner of

Suzhou Songhuei; Director of Sheng Huei (Vietnam); Director of WASTE; Chairman of the Board of Directors of Rayzher Industrial; Director of

Acter (Thailand); Director of Indonesia Joint Venture; Director of Winmax (Malaysia); he has been the Chairman of the Board of Directors of Acter

Group since July 2019.Born in May 1966 with Chinese nationality of Taiwan no permanent residence in foreign countries bachelor’s degree senior engineer. He was the

Deputy General Manager of Wuhan Ronghuei Industry and Trade Co. Ltd; the Deputy General Manager of Guangzhou Danli International Trade

Co. Ltd; the Deputy General Manager of Zhongshan Acter Mechanical and Electrical Engineering Co. Ltd.; the Deputy General Manager and General

Chen Zhihao

Manager of Acter (Shenzhen); General Manager and Director of ShengHuei Limited; the Director of Acter (Singapore); and the Director of Space

(Thailand). He served as Vice Chairman of Acter Group from July 2020 to January 2026. Currently he is the Director of Acter (Hong Kong); the

Chairman of Acter (Shenzhen); the Chairman of Shenzhen Dingmao; the Director of Lantia Innovation Co. Ltd.; the Director of Sheng Huei

48 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(Vietnam); and the Director of Indonesia Joint Venture; the Director of GREAT SERENE LIMITED; the President of Taiwan Compatriot Investment

Enterprises Association of Suzhou; he has been the Chairman and Board Secretary of Acter Group since July 2019.Born in April 1973 with Chinese nationality of Taiwan no permanent residence in foreign countries master’s degree in EMBA mid-level engineer.He was the Assistant Manager of the Engineering Department of Kuang I Engineering Co. Ltd.; the Director of Acter (Taiwan) the Assistant Manager

of the Engineering Department of Suzhou HongHuei Mechanical and Electrical Engineering Co. Ltd.; the Director of Malaysia and served as the

Zhu Qihua Assistant Manager Manager Associate Manager Deputy General Manager General Manager and Director of Sheng Huei Limited. Currently he is

the Director and General Manager of Acter (Shenzhen); the Director and General Manager of Shenzhen Dingmao; the Supervisor of Sheng Huei

(Vietnam); the Director of Acter (Hong Kong); the Director of Acter (Thailand); the Supervisor of Acter (Indonesia); the Supervisor of Indonesia

Joint Venture; and the Director of Acter (Singapore); he has been the Director and General Manager of Acter Group since July 2019.Born in April 1982 with Chinese nationality no permanent residence in foreign countries bachelor’s degree. He was the Director Deputy Manager

Zhang Jinbao Manager and Associate Manager of Sheng Huei Limited. Has been the Director and Engineering Deputy General Manager of Acter Group since June

2025.

Born in January 1974 with Chinese nationality no permanent residence in foreign countries master’s degree Public Accountant (Australia) Financial

Accountants (UK) Certified Public Accountant (Hong Kong). He was the Deputy Division Chief of Anhui Swan Air-Conditioner Co. Ltd.; the Staff

Member of Bengbu New Urban Area Finance Bureau; the General Ledger Accountant of Suzhen Thermal Power Co. Ltd.; the Financial Manager of

Lexy Electrical Appliances Co. Ltd.; the Chief Financial Officer of Suzhou Royal Investment Co. Ltd.; the Supervisor of Jiangsu Suzhou Rural

Commercial Bank Co. Ltd. Currently he is the Director Board Secretary and Chief Financial Officer of Suzhou Maxwell Technologies Co. Ltd.;

Liu Qiong

the Independent Director of Freewon China Co. Ltd.; the Independent Director of Wuxi Langshion Lightweight Technology Co. Ltd.; the Financial

Director of Shanghai Maixinrui Information Technology Co. Ltd.; the Financial Director of Shanghai Shenchenwei Information Technology Co.Ltd.; the Financial Director of Zhuhai Maxwell Development Co. Ltd.; the Financial Director of Xuancheng Maxwell Intelligent Equipment

Manufacturing Co. Ltd.; the Financial Director of Shanghai Maidirui Information Technology Co. Ltd.; he has been an Independent Director of

Acter Group since June 2025.Born in July 1971 with Chinese nationality no permanent residence in foreign countries master’s degree. She was the Staff Member of Shanghai

Construction Group; the Director and Regional CEO of Fulagai Consulting (Shanghai) Co. Ltd.; the Technology Transfer Expert Consultant of

Shanghai Jiao Tong University Industry Technology Research Institute; the Supervisor of Ningbo Xiaoxiang Huijia Technology Co. Ltd. Currently

Liu Tiehua she is Executive Director of Best Choice Management Consulting (Shanghai) Co. Ltd.; the Executive Director and General Manager of Ningbo

Yinzhou Kuanlun Enterprise Consulting Co. Ltd.; the Supervisor of Ningbo Ailida Technology Co. Ltd.; the Independent Director of Longyoung

Electronics (Kunshan) Co. Ltd.; the Supervisor of Ningbo Markda Enterprise Management Consulting Co. Ltd.; the Executive Director of Best

Choice Technology Services (Shanghai) Co. Ltd.; she has been an Independent Director of Acter Group since June 2025.Born in August 1966 with Chinese nationality no permanent residence in foreign countries doctoral degree. He was the Teaching Assistant Lecturer

and Associate Professor of the Law Department of Yantai University; the People’s Juror of Huqiu District People’s Court of Suzhou City; the Part-

time Lawyer of Grandall Law Firm (Suzhou); the Independent Director of Suzhou Yunzhong Electronic Technology Co. Ltd. Currently he is the

Dong Binghe

Professor of Wang Jian Law School of Suzhou University; the Part-time Lawyer of Co-effort Law Firm LLP (Suzhou); the External Director of

Suzhou Urban Construction & Investment Development (Group) Co. Ltd.; the Independent Director of Suzhou Fushilai Pharmaceutical Company

Limited; he has been an Independent Director of Acter Group since June 2025.

49 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Born in April 1969 with Chinese nationality of Taiwan no permanent residence in foreign countries and bachelor’s degree. She was the Team Leader

of the Audit Department of the First Joint Accounting Firm; the Assistant Manager of the Underwriting Department of Fubon Securities Co. Ltd.;

Xiao Jingxia the Financial Manager of Taiwan Green Point Enterprises Co. Ltd.; the Financial Director of Megaforce Company Limited; the Accountant of Shen

Chuan Paper (Suzhou) Co. Ltd.; the Finance Manager of Sheng Huei Limited; and the Supervisor of Suzhou Yumanchang Food Technology Co.Ltd. She has been the Chief Financial Officer of Acter Group since July 2019.Born in May 1976 with Chinese nationality of Taiwan no permanent residence in foreign countries bachelor’s degree senior engineer. He was an

Su Yuzhou

engineer at Acter (Taiwan); the Manager of the Engineering Department of Sheng Huei Limited; the Director of Space (Thailand); and the Director

(resigned)

of Acter Group. Currently he is the Managing Partner of Suzhou Shengzhan and the Manager of the Engineering Department of Acter Group.Born on August 15 1965 with Chinese nationality no permanent residence in foreign countries bachelor’s degree. He was the Secretary of the Youth

League Committee and President of the Youth League School of the School of Computer and Information Engineering of Jiangsu University; President

of the Youth League School of Jiangsu University Youth League Committee; the Lecturer of the Specialized Vehicle Teaching and Research

Department of the School of Automotive Engineering in Jiangsu University; the Assistant General Manager of Jiangsu University Industrial

Shi Kang Corporation; the Professional Lecturer of the Automobile Teaching Department of the School of Automobile Engineering in Jiangsu University; the

(resigned) Director of Office of the School of Business Administration in Jiangsu University; the Deputy Secretary of the Party Committee and Vice Dean of

the College of Finance and Economics in Jiangsu University; the Vice President and Deputy Secretary of Jiangsu University Press and Magazines;

the Deputy Director of the Labor Union of Jiangsu University; the President General Manager and Executive Director of Jiangsu University Press

Co. Ltd.; and the Director of Jiangsu University Asset Management Co. Ltd. Currently he is a Grade 5 staff member of the Logistics Department

(Logistics Group) of Jiangsu University; he was an Independent Director of Acter Group from July 2020 to June 2025.Born in November 1971 with Chinese nationality no permanent residence in foreign countries master’s degree holding the practicing qualification

of lawyer in China. He was a practicing lawyer of Suzhou Foreign Law Firm a practicing lawyer of H&Z Group Law Firm a practicing lawyer of

Suzhou Renhai Fangzhou Law Firm a Director of the Finance and Insurance Committee of the Suzhou Lawyers Association a member of the Suzhou

Wu Weihua Hi-Tech District Government Lawyers’ Advisory Group and a Standing Director of the Bankruptcy Law Research Association of Jiangsu Law

(resigned) Society. Currently he is a lecturer of Suzhou University of Science and Technology; a practicing lawyer of Jiangsu Lantern Law Firm; the Deputy

Secretary-General of the Small and Medium-sized Enterprises Committee of Jiangsu Federation of Industry and Commerce; the Vice President of

Suzhou Bankruptcy Administrators’ Association; a Director of Suzhou Lawyers’ Association; he was an Independent Director of Acter Group from

July 2019 to June 2025.Born in October 1972 with Chinese nationality no permanent residence in foreign countries master's degree in MBA Chinese certified public

accountant. She was the Financial Manager of Kunshan Huaheng Welding Equipment Technology Co. Ltd; the Financial and Administrative Manager

of Hangzhou Zhixing Automobile Co. Ltd. and Hangzhou Dongxingxing Auto Repair Co. Ltd.; the Chief Financial Officer of Kunshan Huaheng

Gu Hailan

Welding Equipment Co. Ltd.; Chief Financial Officer Deputy General Manager and Chief Financial Officer Deputy General Manager and Board

(resigned)

Secretary of Shanghai Qinsen Landscape Co. Ltd.; the Board Secretary and Chief Financial Officer of Origincell Technology Group Ltd.; and the

Independent Director of Acter Group. Currently she is the Board Secretary and Chief Financial Officer of Jiaxing Hechang Elevator Control

Technology Co. Ltd.; she was an Independent Director of Acter Group from July 2019 to June 2025.Other information

50 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

□ Applicable ? N/A

51 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(II) Occupation of In-service and Outgoing Directors and Senior Management during the Reporting

Period

1. Post in shareholder’s site

? Applicable □ N/A

Position Held in Starting Date Expiration

Name of the Staff Name of Shareholder the Shareholder’s of Date of

Site Appointment Appointment

CEO and

Liang Jinli Acter (Taiwan) Chairman of the August 1993

Board

Liang Jinli Sheng Huei International Director May 2008

Liang Jinli Suzhou Songhuei Managing Partner April 2018

Su Yuzhou Suzhou Shengzhan Managing Partner April 2018

Explanation for

the post in None

shareholder’s site

2. Post in other organizations

? Applicable □ N/A

Starting Date Expiration

Name of Other Post Held in Other

Name of the Staff of Date of

Organizations Organizations

Appointment Appointment

New Point (Seychelles) Director March 2008

Enrich (Taiwan) Director and CEO June 2014

HER SUO (Taiwan) Chairman April 1998

NOVA (Taiwan) Chairman March 2009

Winmega (Taiwan) Chairman July 2014

Winmax (Singapore) Director June 2016

Winmax (Shanghai) Chairman May 2023

Winmax Technology Chairman May 2023

Rayzher Industrial Chairman June 2021

WASTE Director October 2019

November

Acter (Singapore) Director

2009

Liang Jinli December

Acter (Malaysia) Director

2011

Acter (Shenzhen) Director June 2005

Shenzhen Dingmao Director October 2012

September

Acter (Thailand) Director

2019

November

Acter (Hong Kong) Director

2007

September

Acter (Vietnam) Director

2018

Indonesia Joint Venture Director April 2023

November

Winmax (Malaysia) Director

2024

Acter (Shenzhen) Chairman October 2009

Shenzhen Dingmao Chairman October 2012

November

Acter (Hong Kong) Director

Chen Zhihao 2007

Acter (Vietnam) Director July 2019

September

Acter (Singapore) Director October 2018

2025

52 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Space (Thailand) Director October 2019 March 2025

Lantia Innovation Co. September

Director

Ltd. 2015

Indonesia Joint Venture Director April 2023

GREAT SERENE September

Director

LIMITED 2024

Taiwan Compatriot

September

Investment Enterprises President

2024

Association of Suzhou

Director and

Acter (Shenzhen) January 2018

General Manager

Director and

Shenzhen Dingmao January 2018

General Manager

December

Acter (Vietnam) Supervisor

2018

Acter (Hong Kong) Director July 2019

Zhu Qihua September

Acter (Malaysia) Director January 2025

2019

September

Acter (Thailand) Director

2019

Acter (Indonesia) Supervisor January 2023

Indonesia Joint Venture Supervisor April 2023

September

Acter (Singapore) Director

2025

Director Board

Suzhou Maxwell Secretary and

April 2020

Technologies Co. Ltd. Chief Financial

Officer

Jiangsu Suzhou Rural

September

Commercial Bank Co. Supervisor August 2025

2020

Ltd.Wuxi Langshion

Independent December

Lightweight Technology

Director 2021

Co. Ltd.Independent

Freewon China Co. Ltd. July 2022

Director

Hainan Maxwell

Financial Director January 2022

Technology Co. Ltd.Liu Qiong

Shanghai Maixinrui Financial Director

Information Technology January 2023

Co. Ltd.Shanghai Shenchenwei Financial Director

Information Technology January 2023

Co. Ltd.Zhuhai Maxwell Financial Director

June 2023

Development Co. Ltd.Xuancheng Maxwell Financial Director

December

Intelligent Equipment

2024

Manufacturing Co. Ltd.Shanghai Maidirui Financial Director

September

Information Technology

2025

Co. Ltd.Best Choice

September

Management Consulting Executive Director

Liu Tiehua 2015

(Shanghai) Co. Ltd.Ningbo Yinzhou Executive Director March 2016

53 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Kuanlun Enterprise and General

Consulting Co. Ltd. Manager

Ningbo Ailida

Supervisor May 2016

Technology Co. Ltd.Ningbo Xiaoxiang Huijia December November

Supervisor

Technology Co. Ltd. 2019 2025

Longyoung Electronics Independent December

(Kunshan) Co. Ltd. Director 2020

Ningbo Markda

Enterprise Management Supervisor January 2022

Consulting Co. Ltd.Best Choice Technology

Services (Shanghai) Co. Executive Director June 2022

Ltd.Wang Jian Law School of

Professor July 1999

Suzhou University

Suzhou Urban

Construction & September

External Director

Investment Development 2021

(Group) Co. Ltd.Co-effort Law Firm LLP

Part-time Lawyer April 2025

(Suzhou)

Dong Binghe

Suzhou Fushilai

Independent

Pharmaceutical March 2025

Director

Company Limited

Grandall Law Firm

Part-time Lawyer March 2019 March 2025

(Suzhou)

Suzhou Yunzhong

Independent December December

Electronic Technology

Director 2019 2025

Co. Ltd.Su Yuzhou Space (Thailand) Director October 2019 March 2025

Jiaxing Hechang Board Secretary

November

Gu Hailan Elevator Control and Chief

2022

Technology Co. Ltd. Financial Officer

Logistics Department

Grade 5 staff

Shi Kang (Logistics Group) of January 2024

member

Jiangsu University

Suzhou University of

Lecturer July 1993

Science and Technology

Jiangsu Lantern Law

Practicing lawyer December

Firm

2004

Small and Medium-sized

Enterprises Committee of Deputy Secretary-

Wu Weihua October 2018

Jiangsu Federation of General

Industry and Commerce

Suzhou Bankruptcy

Administrators’ Vice President June 2019

Association

Suzhou Lawyers’

Director February 2016

Association

Explanation for

the post in other None

organizations

(III) Remuneration of Directors and Senior Management

54 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

? Applicable □ N/A

With reference to the remuneration level of the Company’s industry and

the region and taking into account the Company’s actual operating

Decision-making procedure

conditions and job responsibilities the Company shall draw up a plan

for the remuneration of

and implement it after approval by the board of directors and

directors and senior

shareholders’ meeting through consideration. Among them the

management

remuneration of directors shall be decided by the shareholders’ meeting

and that of senior management shall be decided by the board of directors.Whether a director recuses

himself/herself from the

discussion on his/her own Yes

remuneration by the board of

directors or not

On March 28 2025 the Remuneration and Appraisal Committee

approved the Proposal on the Remuneration Plan for Senior

Details of the

Management for the Year 2025 through consideration. The

recommendations made by the

Remuneration and Appraisal Committee of the Board of Directors put

Remuneration and Appraisal

forward proposals in respect of the Proposal holding that the

Committee or the special

remuneration plan for the Company’s senior management is in line with

meeting of independent

the remuneration level of the industry in which the Company operates

directors in respect of the

and the actual operating conditions of the Company the payment of

remuneration of directors and

remuneration complies with the Company’s remuneration policies and

senior management

appraisal standards and there is no circumstance impairing the interests

of the Company and its shareholders.Except for the allowance for the Company’s independent directors the

remuneration of directors and senior management who are in receipt of

Basis for determining the remuneration from the Company shall be determined on the basis of the

remuneration of directors and Company's overall remuneration policy salary standards the specific

senior management executive positions held by them in the Company their work

performance as well as the actual circumstances of the fulfillment of the

Company’s annual business plan.The actual payment of the remuneration of directors and senior

Actual payment of

management was made on time in accordance with the relevant

remuneration to directors and

provisions mentioned above and the remuneration data are true and

senior management

accurate.Total actual remuneration

received by all directors and

RMB 4.1128 million

senior management as of the

end of the reporting period

Appraisal basis and In 2025 the allowances received by independent directors were subject

completion status in respect of to no performance appraisal; non-independent directors and senior

remuneration actually received management of the Company received corresponding remuneration in

by all directors and senior accordance with the Company’s performance appraisal provisions. The

management as of the end of performance appraisal has been effectively implemented and completed

the reporting period in accordance with the Company’s performance appraisal provisions.Deferred payment

arrangements for remuneration

actually received by all

N/A

directors and senior

management as of the end of

the reporting period

Stop-payment and recovery

arrangements for remuneration

actually received by all N/A

directors and senior

management as of the end of

55 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

the reporting period

(IV) Changes in the Company’s Directors and Senior Management

? Applicable □ N/A

Name Position Held Change Reason for Change

Employee

Zhang Jinbao Election Job transfer

Representative Director

Liu Qiong Independent Director Election Re-election

Liu Tiehua Independent Director Election Re-election

Dong Binghe Independent Director Election Re-election

Su Yuzhou Director Resignation Re-election

Gu Hailan Independent Director Resignation Re-election

Shi Kang Independent Director Resignation Re-election

Wu Weihua Independent Director Resignation Re-election

1. The Company convened a meeting of employee representatives on May 29 2025. Upon election and

approval at the meeting Mr. Zhang Jinbao was unanimously appointed as the employee representative

director of the Company with a term consistent with that of the third board of directors of the Company.For details please refer to the Announcement on the Election of Employee Representative Director for the

3rd Board of Directors of Acter Group (2025-030) disclosed by the Company on the website of the

Shanghai Stock Exchange (www.sse.com.cn) on May 30 2025.

2. The Company held the 1st extraordinary general meeting of 2025 on June 24 2025 which reviewed

and approved the Proposal on the Re-election of the Board of Directors and Nomination of Candidates

for Non-independent Directors of the 3rd Board of Directors and the Proposal on the Re-election of the

Board of Directors and Nomination of Candidates for Independent Directors of the 3rd Board of Directors.Su Yuzhou a director of the 2nd Board of Directors and Gu Hailan Wu Weihua and Shi Kang

independent directors of the 2nd Board of Directors resigned from their positions as directors. For details

please refer to the Announcement on the Completion of Re-election of the Board of Directors and

Appointment of Senior Management and Securities Affairs Representative of Acter Group (2025-036) and

the Announcement on the Resolutions of the First Extraordinary General Meeting of 2025 of Shenghui

Integration (2025-035) disclosed by the Company on the website of the Shanghai Stock Exchange

(www.sse.com.cn) on June 25 2025.(V) Explanation for Penalties Imposed by Securities Regulators over the Past Three Years

□ Applicable ? N/A

(VI) Others

□ Applicable ? N/A

Ⅳ. Fulfillment of Duties by Directors

(I) Directors' Attendance at Board Meeting and Shareholders’ Meeting

Attending

of

Attending of Board Meeting

Shareholder

Indepe s’ Meeting

ndent Required Times Whether

Director

Direct Times of Times of Times There Have Number of

s

or or Attending of Attendin of Absen Been Two Attending

Not the Board Attendi g by Attendi ces Consecutive of

Meeting ng in Telecom ng by Times Failures to Shareholder

in the Person municati Proxy Attend in s’ Meeting

Year on Person

Liang 6

No 6 2 0 0 No 3

Jinli

Chen No 6 6 4 30 0 No 3

56 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Zhihao

Zhu 6 6

No 1 0 0 No 3

Qihua

Zhang

No 3 3 0 0 0 No 1

Jinbao

Liu

Yes 3 3 0 0 0 No 1

Qiong

Liu

Yes 3 3 0 0 0 No 1

Tiehua

Dong No

Yes 3 3 0 0 0 1

Binghe

Su 3 3 No

No 3 0 0 2

Yuzhou

Shi No

Yes 3 3 2 0 0 2

Kang

Wu No

Yes 3 3 3 0 0 2

Weihua

Gu No

Yes 3 3 3 0 0 2

Hailan

Explanation for two consecutive failures to attend in person

□ Applicable ? N/A

Times of board meeting during the year 6

Including: Times of on-site meetings 1

Times of meetings held via telecommunication 0

Times of meetings held on site and via

5

communication

(II) Objections Raised by Directors to Matters Relating to the Company

□ Applicable ? N/A

(III) Others

□ Applicable ? N/A

Ⅴ. Specialized Committees under the Board of Directors

? Applicable □ N/A

(I) Membership of Specialized Committees under the Board of Directors

Category of Specialized

Members

Committees

3rd Session: Liang Jinli Liu Qiong Liu Tiehua

Audit Committee

2nd Session: Liang Jinli Gu Hailan Wu Weihua

3rd Session: Liang Jinli Liu Tiehua Dong Binghe

Nomination Committee

2nd Session: Liang Jinli Wu Weihua Shi Kang

Remuneration and 3rd Session: Liang Jinli Dong Binghe Liu Qiong

Appraisal Committee 2nd Session: Liang Jinli Shi Kang Gu Hailan

Strategy and Sustainable

Liang Jinli Chen Zhihao Zhu Qihua

Development Committee

(Ⅱ) The Audit Committee Held 5 Meetings during the Reporting Period

Important

Other

Date of Opinions

Contents of Meetings Fulfillment

Meeting and

of Duties

Recommen

57 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

dations

1. Proposal on the Internal Control Evaluation Report for

the Year 2024;

2. Proposal on the Internal Control System Declaration

for the Year 2024;

3. Proposal on the Report of the Company’s Post

Performance Evaluation on Accounting Firm in 2024;

4. Proposal on the Report of the Audit Committee of the

Board of Directors on the Supervision of the Performance

of Duties by the Accounting Firm for the Year 2024;

5. Proposal on the Report on the Performance of the Audit

Committee of the Board of Directors for the Year 2024;

6. Proposal on the Full Text and Summary of the Annual

Report for the Year 2024;

7. Proposal on the Financial Settlement Report for the

Year 2024;

8. Proposal on the Financial Budget Report for the Year

2025;

9. Proposal on the Confirmation of Routine Related

Transactions for the Year 2024 and the Expected Routine

Passed after

March 28 Related Transactions for the Year 2025;

consideratio None

2025 10. Proposal on the Total Estimated Guarantee for the

n

Year 2025;

11. Proposal on the Application for Comprehensive Credit

Limit from Financial Institutions for the Year 2025;

12. Proposal on the Special Report on the Deposit and

Actual Use of Funds Raised by the Company in 2024;

13. Proposal on Using Some Idle Own Funds for Cash

Management;

14. Proposal on the Profit Distribution Plan for the Year

2024;

15. Proposal on the Reappointment of the Accounting

Firm;

16. Proposal on Seeking the Board’s Approval for

Relevant Matters;

17. Proposal on Confirming that Overdue Accounts

Receivable Exceeding Normal Credit for 3 Months Are

Not Included in Fund Lending;

18. Proposal on Requesting the General Meeting of

Shareholders to Authorize the Board of Directors to

Determine the 2025 Interim Dividend Plan;

Passed after

April 25

Proposal on the Q1 Report for 2025; consideratio None

2025

n

Passed after

Proposal on the Appointment of the Chief Financial

June 24 2025 consideratio None

Officer of the Company;

n

1. Proposal on the Full Text and Summary of the Semi-

Annual Report for the Year 2025;

2. Proposal on the Special Semi-Annual Report on the

Deposit and Actual Use of Funds Raised by the Company

Passed after

August 7 in 2025;

consideratio None

2025 3. Proposal on the Profit Distribution Plan for the First

n

Half of the Year 2025;

4. Proposal on the Application for Comprehensive Credit

Limit from Huaxia Bank Co. Ltd. Suzhou Branch by the

Company;

58 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

1. Proposal on the Q3 Report for 2025;

2. Proposal on the Postponement of Some Raised Passed after

October 17

Investment Projects; consideratio None

2025

3. Proposal on Using Some Idle Raised Funds for Cash n

Management;

(III) The Nomination Committee Held 2 Meetings during the Reporting Period

Important Opinions

Other Fulfillment of

Date of Meeting Contents of Meetings and

Duties

Recommendations

1. Proposal on the Re-election of

the Board of Directors and

Nomination of Candidates for

Non-independent Directors of

the 3rd Board of Directors Passed after

May 23 2025 None

2. Proposal on the Re-election of consideration

the Board of Directors and

Nomination of Candidates for

Independent Directors of the 3rd

Board of Directors

Proposal on the Appointment of

Passed after

June 24 2025 Senior Management of the None

consideration

Company

(Ⅳ) The Remuneration and Appraisal Committee Held 1 Meeting during the Reporting Period

Important Opinions

Other Fulfillment of

Date of Meeting Contents of Meetings and

Duties

Recommendations

Proposal on the Remuneration

Passed after

March 28 2025 Plan for Senior Management for None

consideration

the Year 2025;

Proposal on the Remuneration of

Passed after

June 3 2025 Directors of the 3rd Board of None

consideration

Directors;

Proposal on the Distribution of

Mid-Year Performance Bonuses Passed after

October 17 2025 None

to Senior Management of the consideration

Company for the Year 2025;

(Ⅴ) The Strategy and Sustainable Development Committee Held 1 Meeting during the Reporting

Period

Important Opinions

Date of Other Fulfillment of

Contents of Meetings and

Meeting Duties

Recommendations

March 28 Proposal on the Company’s Sustainable Passed after

None

2025 Development Report for the Year 2024; consideration

(Ⅵ) Details of Disagreements

□ Applicable ? N/A

Ⅵ. Explanation for the Company’s Risks Discovered by the Audit Committee

□ Applicable ? N/A

The Audit Committee had no disagreement on the supervised matters during the reporting period.Ⅶ. Employees of the Parent Company and Major Subsidiaries during the Reporting Period

(I) Employees

Number of in-service employees of the parent

487

company

Number of in-service employees of major 275

59 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

subsidiaries

Total of in-service employees 762

Number of retired employees subject to expenses of

2

parent company and major subsidiaries

Specialty Composition

Category of Specialty Composition Number of Employees of Specialty Composition

Production staff 0

Sales staff 4

Technical staff 642

Financial staff 32

Administrative staff 84

Total 762

Educational Background

Category of Educational Background Number (person)

Master’s degree 14

Bachelor’s degree 436

College 259

Below 53

Total 762

(II) Remuneration Policy

? Applicable □ N/A

The company adheres to the principle of “efficiency first considering fairness” formulates

management systems such as the Employee Remuneration Management Measures Employee

Performance Assessment Management Measures and Employee Rewards and Punishments Measures

and constructs a standardized and scientific remuneration management system. It links employee

remuneration with job value performance appraisal and personal value ensures the reasonable growth of

employees’ income and rewards employees with outstanding performance.(III) Training plan

? Applicable □ N/A

Upholding the idea that “talents drive company development” the Company regards the

improvement of employees’ capacity as the core for strategy implementation. During the reporting periodthe Company built a hierarchical and systematic training system by following the idea of “strategicadaptation ability progress and innovation leadership” and highlighted four fields including digital

transformation technical tackling improvement of management efficiency and sustainable development

in order to facilitate employee growth and improvement of organization efficiency.Reserve of strategic talents: As for the layout of emerging businesses (such as AI and the green and

low-carbon field) the Company opened a special technical research class built an industry-university-

research training platform in partnership with colleges and universities and an industrial think tank and

intensified the reserve of cutting-edge technologies;

Popularization of digitalization ability: Promote the application of digitalization and intelligence

technology intensify the involvement rate of technicians in digitalization skill training;

Leadership progress plan: Offer special trainings on strategy decision-making cross-cultural

collaboration and ESG governance for the medium and high-level managers to improve the organization

toughness;

Compliance and risk management: Deepen the education on compliance awareness of all staff

intensify the required courses such as industrial regulatory policies anti-spam mechanism and

information security and consolidate the risk control bottom line.(IV) Labor Outsourcing

? Applicable □ N/A

Total working hours of labor outsourcing 18960 hours

Total of reward paid for labor outsourcing (RMB 39.12

60 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

10000)

Ⅷ. Proposed Profit Distribution or Capitalization of Capital Reserves

(I) Formulation Implementation or Adjustment of Cash Dividend Policy

? Applicable □ N/A

1. Interim dividend distribution

In accordance with the CSRC’s Notice on Further Implementation of Matters Relating to Cash

Dividends for Listed Companies the Supervisory Guideline for Listed Companies No. 3 - Cash Dividends

for Listed Companies etc. the Company has formulated the cash dividend policy; specified the decision-

making procedures and mechanisms relating to profit distribution matters clearly in the Company’s

Articles of Association. The Company held the 2nd Meeting of the 3rd Board of Directors on August 7

2025 which reviewed and adopted the Proposal on the Profit Distribution Plan for the First Half of the

Year 2025. The profit distribution plan for the first half of 2025 is as follows: on the basis of the total share

capital registered on the record date for equity distribution a cash dividend of RMB 1.5 per 10 shares (tax-

inclusive) will be distributed to all shareholders. The interim dividend distribution was completed on

September 5 2025 with a total distribution amount of RMB 15000000 (tax-inclusive).

2. Annual dividend distribution

The Company held the 5th Meeting of the 3rd Board of Directors on March 27 2026 which reviewed

and adopted the Proposal on the Profit Distribution Plan for the Year 2025. The proposed profit

distribution plan for 2025 is as follows: It is proposed to distribute a cash dividend of RMB 6.5 per 10

shares (tax-inclusive) to all shareholders on the basis of the total share capital registered on the record date

for equity distribution. As of December 31 2025 the total share capital of the Company was 100000000

shares and based on this the total proposed cash dividend to be distributed amounted to RMB 65000000

(tax-inclusive). The profit distribution proposal is subject to review and approval at the annual general

meeting of 2025.In summary the total estimated cash dividend to be distributed by the Company for 2025 is RMB

80000000 (tax-inclusive) accounting for 51.76% of the net profit attributable to shareholders of listed

companies for 2025.During the reporting period the Company did not adjust or change its profit distribution policy.(II) Special Explanation for Cash Dividend Policy

? Applicable □ N/A

Compliance with the Company’s Articles of Association or the resolutions of the

? Yes □ No

shareholders’ meeting

Whether the criteria and proportion of dividend distribution are clear and

? Yes □ No

unambiguous

Whether the relevant decision-making procedures and mechanisms are complete ? Yes □ No

Whether the independent directors have performed their duties and played their

? Yes □ No

due role

Whether small and medium-sized shareholders have sufficient opportunities to

express their opinions and demands and whether their legitimate rights and ? Yes □ No

interests are adequately protected

61 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(III) If the Company Made Profits and the Parent Company Had Positive Profit Available for

Distribution to Shareholders but Has not Put Forward a Proposal for a Cash Profit Distribution

Plan during the Reporting Period the Company Shall Disclose in Detail the Reasons as well as the

Use of the Undistributed Profit and the Plan for its Utilization

□ Applicable ? N/A

(IV) Proposals for Profit Distribution and Capitalization of Capital Reserve for the Reporting

Period

? Applicable □ N/A

In RMB Yuan

Number of bonus shares per 10 shares (share)

Dividend per 10 shares (RMB Yuan) (tax-

8.00

inclusive)

Dividend per 10 shares (share)

Cash dividend amount (tax-inclusive) 80000000.00

Net profit attributable to the listed company’s

common shareholders in the consolidated 154546143.11

statement

Proportion of cash bonus amount in the net profits

attributable to the listing company’s common 51.76

stockholders in the consolidated statements (%)

Amount of shares repurchased for cash included in

cash dividends

Total amount of dividends (tax-inclusive) 80000000.00

Ratio of total dividend amount to net profit

attributable to the listed company’s common 51.76

shareholders in the consolidated statement (%)

Note: The cash dividend amount in the above table includes the interim dividend amount of the

Company for 2025.(V) Cash Bonus over the Past Three Accounting Years

? Applicable □ N/A

In RMB Yuan

Cumulative amount of cash bonus over the past 3

235000000.00

accounting years (tax-inclusive) (1)

Amount cumulatively repurchased and cancelled over the

0.00

past 3 accounting years (2)

Amount of cash bonus and amount cumulatively

repurchased and cancelled over the past 3 accounting 235000000.00

years (3)=(1)+(2)

Annual average net profits over the past 3 accounting

135846310.63

years (4)

Proportion of cash bonus over the past 3 accounting

172.99

years (%) (5)=(3)/(4)

Net profits attributable to listed company’s common

shareholders in the consolidated statements of the latest 154546143.11

accounting year

Undistributed profits at the end of the parent company’s

158264272.37

statement year in the latest accounting year

Ⅸ. Status of the Company’s Share Incentive Scheme Employee Shareholding Plan or Other

Employee Incentives and Their Impacts

(I) Where the Relevant Incentive Matters Have Been Disclosed in the Interim Announcement and

There Is no Progress or Change in Subsequent Implementation

62 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

□ Applicable ? N/A

(II) Incentives Not Disclosed in the Interim Announcement or With Subsequent Progress

Equity incentives

□ Applicable ? N/A

Other notes:

□ Applicable ? N/A

Employee Stock Ownership Plan

□ Applicable ? N/A

Other incentives

□ Applicable ? N/A

(III) Share Incentives Granted to Directors and Senior Management during the Reporting Period

□ Applicable ? N/A

(IV) Evaluation Mechanism for Senior Management and Establishment and Implementation of

Incentive Mechanism during the Reporting Period

? Applicable □ N/A

The Company has established a performance evaluation system for all staff. The employee

remuneration consists of a fixed salary a performance bonus and a long-term incentive salary. The fixed

salary is determined based on the post value and market level and can safeguard employees’ basic rights

and interests; the performance bonus which is linked with the Company’s overall performance and

personal performance reflects the employees’ short-term contribution and value creation; the long-term

incentive salary is paid to the core management and key technicians with a view to promoting the long-

term consistency of employees’ and shareholders’ interests.Ⅹ. Construction and Implementation of Internal Control System during the Reporting Period

? Applicable □ N/A

The Company attaches great importance to the establishment and implementation of internal control

systems. Under the Basic Standards for Enterprise Internal Control and its supporting guidelines the

Company has established an internal control system compatible with its development strategy business

scale and operational complexity. During the reporting period the Company continuously optimized its

internal control system updated and improved internal control rules established an internal control

organizational structure and risk management mechanism which were effectively implemented in practice.The Audit Committee of the Board of Directors performs its oversight responsibilities by supervising the

establishment and implementation of internal control systems by the Board of Directors. The management

performs the functions of planning organization and control and is responsible for the daily operation of

the enterprise’s internal control. This reasonably ensures the truthfulness and fairness of financial

statements enables the sound operation and higher operational efficiency of the Company’s various

business activities ensures the implementation of relevant national laws regulations and the Company’s

internal rules and regulations and safeguards the safety and integrity of the Company’s assets.For the evaluation of the Company’s internal control please refer to the Internal Control Evaluation

Report for the Year 2025 disclosed by the Company on March 28 2026 on the website of Shanghai Stock

Exchange (www.sse.com.cn).Explanation for the existence of significant deficiencies in internal control during the reporting period

□ Applicable ? N/A

Ⅺ. Management Control over Subsidiaries during the Reporting Period

? Applicable □ N/A

63 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

During the reporting period the Company strictly complied with the Subsidiary Management System

further strengthened the management of its subsidiaries and established an effective control mechanism.Based on the internal control system covering the internal environment risk assessment control activities

information and communication and internal supervision the Company exercised effective management

and control over the group headquarters and its subsidiaries. The subsidiaries have established effective

governance structure rules of procedure decision-making procedures financial control system and risk

management framework. Through control over key areas including fund management overseas

investment management derivative commodity transaction management external guarantee management

internal control management procurement management financial management contract management

connected transaction management and information disclosure management the Company further

improved its operation and management level and risk prevention capability. No internal control

deficiencies were identified during the reporting period.Risk alert regarding abnormalities in the management and control over subsidiaries

□ Applicable ? N/A

Ⅻ. Explanation for the Relevant Information of the Internal Control Audit Report

? Applicable □ N/A

The Company has hired ShineWing Certified Public Accountants LLP for independently auditing the

internal control of the Company and issued a standard unqualified opinion. Details of the internal control

audit report can be found in the Internal Control Audit Report of Acter Technology Integration Group Co.Ltd. for the Year 2025 disclosed by the Company on March 28 2026 on the website of the Shanghai Stock

Exchange (www.sse.com.cn).Whether to disclose the internal control audit report: Yes

Type of opinion of the internal control audit report: Standard unqualified opinion

Whether a qualified internal control audit opinion was issued in the reporting period or the prior year

□Yes ? No

XIII. Self-Inspection and Rectification of Issues in the Special Action on the Governance of Listed

Companies

The Company has established a sound board of directors and general meeting of shareholders system.The board of directors has established the Strategy and Sustainable Development Committee the Audit

Committee the Nomination Committee and the Remuneration and Appraisal Committee. The Company

strengthens corporate governance and optimizes decision-making procedures by incorporating

professional opinions from independent directors. During the reporting period in accordance with the

latest provisions of the Company Law of the People’s Republic of China and the Transitional

Arrangements for the Implementation of Supporting Rules of the New Company Law issued by the CSRC

the Company revised the Detailed Working Rules of the Audit Committee (Revised in 2025) giving full

play to the oversight role of the Audit Committee in pre-audit and professional audit deepening the

scientific governance structure ensuring the scientificity and effectiveness of the Company’s various

decisions and effectively safeguarding the interests of the Company and investors.Through a special self-inspection on corporate governance the Company’s various institutional

development and implementation organization operation and decision-making internal control standard

system development information disclosure mechanism and other aspects are operating in a standardized

and sound manner and no problems requiring rectification have been identified.XIV. Environmental Information of Listed Companies Included in the List of Enterprises Required

to Disclose Environmental Information in Accordance with the Law and Their Principal

Subsidiaries

□ Applicable ? N/A

Other notes

□ Applicable ? N/A

64 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

XV. Social Responsibility Performance

(I) Whether a Separate Social Responsibility Report Sustainable Development Report or ESG

Report is Disclosed

? Applicable □ N/A

For details please refer to the 2025 Sustainable Development Report of Acter Technology Integration

Group Co. Ltd. disclosed on the website of Shanghai Stock Exchange (www.sse.com.cn) on March 28

2026 by the Company.

(II) Details of Corporate Social Responsibility Work

? Applicable □ N/A

External Donations and Public Welfare Item Number/Content Remarks

Total input (RMB 10000) 21.70

Including: of which: funds (RMB 10000) 21.70

Material discount (RMB 10000) -

Number of persons benefited (person) -

Details

□ Applicable ? N/A

XVI. Consolidate and Expand the Results of Poverty Alleviation Rural Revitalization etc.□ Applicable ? N/A

Details

□ Applicable ? N/A

XVII. Others

□ Applicable ? N/A

65 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section V Milestone Events

I. Fulfillment of Commitments

(I) Commitments Made by the Company’s Actual Controllers Shareholders Connected Parties Acquirers and Other Parties Related to the Company’s

Commitments during the Reporting Period or Continuing into the Reporting Period

? Applicable □ N/A

If Not

Deadline If Not

Timely Fulfilled in

Type of Commitm Date of for Fulfilled in

Background of Commitment and Strict Time Next

Commitm Committed By ent Commitm Fulfillme Time

Commitments Period Complian Steps Shall

ent Content ent nt Set or Please State

ce Be

Not Why

Indicated

Restriction Sheng Huei October 13 2022

June 22

on sale of International Acter Note 1 Yes to October 12 Yes N/A N/A

2021

shares (Taiwan) 2025

Restriction October 13 2022

Suzhou Songhuei June 22

on sale of Note 2 Yes to October 12 Yes N/A N/A

Suzhou Shengzhan 2021

Commitments shares 2023

relating to the IPO Liang Jinli Chen

Zhihao Zhu Qihua

Restriction October 13 2022

Su Yuzhou Huang June 22

on Sale of Note 3 Yes to October 12 Yes N/A N/A

Yaping Liao 2021

Shares 2023

Chongyou Wang Yu

and Xiao Jingxia

Resolution

of Sheng Huei

Commitments June 22

horizontal International Acter Note 4 No Long-term Yes N/A N/A

relating to the IPO 2021

competitio (Taiwan)

n

Acter Group Sheng

Commitments Huei International June 22

Others Note 5 No Long-term Yes N/A N/A

relating to the IPO Acter (Taiwan) 2021

directors and senior

66 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

management of the

Company

Acter Group Sheng

Huei International

Acter (Taiwan) October 13 2022

Commitments June 22

Others directors (excluding Note 6 Yes to October 12 Yes N/A N/A

relating to the IPO 2021

independent directors) 2025

and senior

management

Acter Group Sheng

Huei International

Acter (Taiwan)

Commitments June 22

Others directors supervisors Note 7 No Long-term Yes N/A N/A

relating to the IPO 2021

senior management

Suzhou SongHuei

Suzhou Shengzhan

67 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Note 1:

The direct controlling shareholder of the Company Sheng Huei International and the indirect

controlling shareholder of the Company Acter (Taiwan) hereby undertake that:

(1) Within 36 months from the date of listing of the company's shares the company will not transfer

or entrust others to manage the shares issued before the public offering of the company directly or

indirectly held by the Company nor will the company repurchase such shares.

(2) Within 6 months after the listing of the company if the closing price of the company's shares is

lower than the issue price for 20 consecutive trading days or if the closing price of the company's shares

is lower than the issue price at the end of the 6-month period after the listing (or if such day is not a trading

day then it shall be the first trading day thereafter) the lock-up period for the Company's shareholdings

in the company shall be automatically extended for 6 months. During the extended lock-up period the

company shall not transfer or delegate the management of the shares directly or indirectly held by the

company that were issued prior to the public offering of the company nor shall the company repurchase

such shares.

(3) Within two years after the expiration of the aforesaid lock-up period the Company shall reduce

its shareholding in each year by not more than 25% of the total number of shares held by the company

directly and indirectly at a price not lower than the issue price. The said issue price refers to the issue price

of the company's IPO. In case of ex-rights and ex-dividends due to equity distribution capitalization of

provident fund share allotment etc. the ex-rights and ex-dividends shall be dealt with as per relevant

provisions of the Shanghai Stock Exchange. The methods of share reduction include centralized bidding

transactions block trading transfer by agreement and other methods in compliance with the regulations

of the CSRC and the Shanghai Stock Exchange.

(4) The Company reduces the corporate shares held as per the provisions of the Securities Law of the

People’s Republic of China Certain Provisions on Reduction of Shareholdings by Shareholders

Directors and Supervisors of Listed Companies Implementing Rules for the Reduction of Shareholdings

by Shareholders Directors Supervisors and Senior Management of Listed Companies of the Shanghai

Stock Exchange Rules for Listing of Stocks of the Shanghai Stock Exchange and other relevant laws

regulations and standardized documents. If the CSRC and the Shanghai Stock Exchange issue other

regulations before the company reduces its corporate shares held the company undertakes to strictly

comply with the regulations in force at the time of the reduction of the company's shareholding in the

company to implement the reduction.

(5) In the event that the company violates the aforesaid undertakings the proceeds from the transfer

of the company's shares in breach of the undertakings ("proceeds from the transfer in breach of the

undertakings") shall belong to the company. If the company fails to hand over the gains arising out of the

illegal transfer above to the company the company shall have the right to freeze the remaining shares of

the Company held by the company and may withhold the cash dividends payable to the company for

offsetting the gains from the illegal transfer that the company shall hand over to the company until the

gains from the illegal transfer that the company shall hand over are remedied.Note 2:

The shareholders of the Company Suzhou Songhuei and Suzhou Shengzhan hereby undertake that:

(1) Within 12 months from the date of listing of the company's shares the company will not transfer

or delegate the management of the shares held directly or indirectly by the company prior to the public

offering of the company's shares nor will the company repurchase such shares.

(2) If the company reduces its holdings of the company's shares within two years after the expiration

of the lock-up period for the company's shares the price of such reduction shall not be less than the issue

price of the company’s IPO. The said issue price refers to the issue price of the company's IPO. In case of

ex-rights and ex-dividends due to equity distribution capitalization of provident fund share allotment

etc. the ex-rights and ex-dividends shall be dealt with as per relevant provisions of the Shanghai Stock

Exchange.

(3) In addition to the aforesaid lock-up period in the period when the shareholders/partners of the

company serve as directors/senior management of the company the shares of the company to be

transferred by the company each year shall not exceed 25% of the total number of shares of the company

directly or indirectly held by the company; and the shareholders of the company shall not transfer the

shares of the company directly or indirectly held by the company within half a year after they have ceased

to serve as directors/senior management of the Company.

68 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(4) The Company shall reduce the corporate shares held as per the Securities Law of the People’s

Republic of China Certain Provisions on Reduction of Shareholdings by Shareholders Directors and

Supervisors of Listed Companies Implementing Rules for the Reduction of Shareholdings by Shareholders

Directors Supervisors and Senior management of Listed Companies of the Shanghai Stock Exchange

Rules for the Listing of Stocks on the Shanghai Stock Exchange and other relevant laws regulations and

standardized documents. If the CSRC and the Shanghai Stock Exchange have any other regulations before

the company reduces its shareholding in the company the company undertakes to strictly comply with the

regulations in force at the time of the reduction of the company's shareholding in the company to

implement the reduction.

(5) In the event that the company violates the aforesaid undertakings the proceeds of the violation

shall belong to the company. If the enterprise fails to hand over to the company the proceeds of the

aforesaid violation of transfer the company shall have the right to freeze the remaining shares of the

company held by the enterprise and may withhold the cash dividends payable to the enterprise and apply

them against the proceeds of the violation of transfer due to the company until it makes up for the proceeds

of the violation of transfer due to the enterprise.Note 3:

Directors supervisors and senior management who indirectly hold shares of the Company Liang

Jinli Chen Zhihao Zhu Qihua Su Yuzhou Huang Yaping Liao Chongyou Wang Yu and Xiao Jingxia

hereby undertake that (among whom Su Yuzhou Huang Yaping Liao Chongyou and Wang Yu have

resigned from their positions in June 2025):

(1) Within 12 months from the date of listing of the company's shares I will not transfer or delegate

the management of the shares held by me directly or indirectly that were issued before the company's

public offering nor will the company repurchase such shares.

(2) Within 6 months after the listing of the company if the closing price of the company's shares is

lower than the issue price for 20 consecutive trading days or if the closing price of the company's shares

is lower than the issue price at the end of the 6-month period after the listing (or if that day is not a trading

day then it is the first trading day thereafter) the lock-up period of the company's shares held by me shall

be automatically extended for 6 months. During the extended lock-up period I will not transfer or delegate

the management of the shares held directly or indirectly by me that were issued prior to the public offering

of the company nor will the company repurchase such shares.

(3) If I reduce my holdings of the company's shares within two years after the expiration of the lock-

up period the price of such reduction shall not be less than the issue price of the company's IPO. The said

issue price refers to the issue price of the company's IPO. In case of ex-rights and ex-dividends due to

equity distribution capitalization of provident fund share allotment etc. the ex-rights and ex-dividends

shall be dealt with as per relevant provisions of the Shanghai Stock Exchange.

(4) In addition to the foregoing lock-up period during the period in which I serve as a director

supervisor and senior management of the Company and if I leave office before the expiration of my term

of office during the term of office determined at the time of my assumption of office and within 6 months

after the expiration of the term of office: * The transfer of the shares shall not exceed 25% of the total

number of the shares of the Company held directly or indirectly by me each year; and * I shall not

transfer the shares of the Company held directly or indirectly by me within 6 months of my leaving office.

(5) In case of reducing my shareholding in the Company I will strictly comply with the provisions

of the Securities Law of the People’s Republic of China Certain Provisions on Reduction of Shareholdings

by Shareholders Directors and Supervisors of Listed Companies Implementing Rules for the Reduction

of Shareholdings by Shareholders Directors Supervisors and Senior Management of Listed Companies

on the Shanghai Stock Exchange Rules for Listing of Stocks on the Shanghai Stock Exchange and other

relevant laws regulations and standardized documents. If the CSRC and the Shanghai Stock Exchange

have other regulations before I reduce my shareholding in the Company I undertake to strictly comply

with the regulations in force at the time I reduce my shareholding in the Company.

(6) I will not refuse to fulfill the above undertakings due to a change of position or departure from

office. If I violate the above undertaking the proceeds of the violation of the transfer shall belong to the

Company. If I fail to hand over to the Company the proceeds of the aforesaid illegal transfer the Company

shall have the right to freeze the remaining shares of the Company held by me and may withhold the cash

dividends payable to me and apply them against the proceeds of the illegal transfer due to the Company

until it makes up for the proceeds of the illegal transfer due to me.

69 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Note 4:

(I) Sheng Huei International the direct controlling shareholder of the Company has issued the

Commitment Letter on the Avoidance of Competition in the Same Industry in respect of the avoidance of

competition in the same industry with specific commitments as follows:

1. As of the date of this commitment letter except for the investment company the Company and the

subsidiaries directly or indirectly controlled by the Company have not engaged in any business which is

or may be in the same line of competition with the Company and its subsidiaries in any manner directly

or indirectly within or outside the PRC.

2. The Company and the subsidiaries directly or indirectly controlled by the Company will not in the

future engage in any form of business or activity that constitutes or has the potential to constitute

competition in the same line of business with the business operated by the Company and its subsidiaries

and will not directly or indirectly take a controlling interest in acquire or merge with any enterprise or

other economic organization that competes or is likely to compete with the business operated by the

Company and its subsidiaries.

3. If the Company and its subsidiaries directly or indirectly controlled by the Company have any

business opportunities to participate in or acquire shares in any business which may compete with or may

compete with the business operated by the Company and its subsidiaries the Company will immediately

notify the Company and provide such business opportunities to the Company and its subsidiaries in an

appropriate manner with priority and the Company and its subsidiaries will have priority to acquire the

assets or equity involved in the business under the same conditions. The Company will immediately notify

the Company of such business opportunities in an appropriate manner and the Company and its

subsidiaries will have priority in acquiring the assets or equity interests involved in the relevant business

under the same conditions so as to avoid competing with the Company and its subsidiaries.

4. From the date of this Undertaking if the Company further expands its main products and main

business scope the Company and other enterprises controlled by the Company at that time guarantee that

they will not compete with the Company's expanded main products or main business; in case of

competition with the Company's expanded main products or main business the Company and other

enterprises controlled by the Company at that time guarantee to withdraw from the competition with the

Company in accordance with the following methods including but not limited to

(1) Cessation of production of products that compete or may compete with the Company's expanded

principal products;

(2) Cessation of the operation of businesses that compete or may compete with the Company's

expanded main business;

(3) Incorporate into the Company with the Company's consent businesses that compete with the

Company’s expanded principal business;

(4) Transferring the business competing with the Company's expanded main business to an unrelated

third party.

5. This commitment letter shall be effective from the date of issuance and shall remain effective in

the period in which the Company is the controlling shareholder of Acter Group.

6. In case of any breach of the above undertakings the Company is willing to bear the corresponding

compensation liability arising from the breach of the above undertakings in accordance with laws.(II) Acter (Taiwan) the indirect controlling shareholder of the Company has issued the Commitment

Letter on the Avoidance of Competition in the Same Industry in respect of avoidance of competition in the

same industry. On August 28 2024 Acter (Taiwan) changed the commitment on avoidance of competition

in the same industry with specific commitments as follows:

1. As of the date of this commitment letter except for the investment company the Company and the

subsidiaries directly or indirectly controlled by the Company have not engaged in any business in any

manner directly or indirectly other than in the Taiwan region of the PRC that is in the same business

competition or potential same business competition with the Company and its subsidiaries.

2. Except for the situation described in Article 3 of this commitment letter the Company and the

subsidiaries directly or indirectly controlled by the Company will not in the future engage in any form of

business or activities that compete or potentially compete with the business operated by the Company and

its subsidiaries in any manner directly or indirectly in other regions outside of the Taiwan region of China

and will not directly or indirectly in other regions outside of the Taiwan region of China take a controlling

stake in acquire merge or amalgamate businesses that compete or potentially compete with the business

operated by the Company and its subsidiaries.

70 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

3. If the Company and its subsidiaries directly or indirectly controlled by the Company have any

business opportunities in other regions outside of the Taiwan region of China to participate in or acquire

shares in any business that may compete or potentially compete with the business operated by the

Company and its subsidiaries the Company will immediately notify the Company and provide such

business opportunities to the Company and its subsidiaries on a priority basis in an appropriate manner so

that the Company and its subsidiaries can acquire the business involved on a priority basis under the same

terms and conditions. The Company will immediately notify the Company to provide such business

opportunities to the Company and its subsidiaries on a priority basis in an appropriate manner and the

Company and its subsidiaries will acquire the assets or equity involved in the relevant business on a

priority basis under the same conditions so as to avoid horizontal competition with the Company and its

subsidiaries.If Acter Group determines that the aforementioned business opportunity/operation aligns with the

development needs of Acter Group and its subsidiaries but due to objective factors beyond its control -

such as changes in laws regulations policies or force majeure events such opportunity/operation is

unsuitable for direct execution by Acter Group or its subsidiaries or if direct execution by Acter Group or

its subsidiaries would adversely affect the protection of Acter Group’s interests then in support of Acter

Group’s growth the Company may after full consultation with Acter Group proceed with investment

acquisition or interim cultivation of such opportunity/operation through the Company or other entities

under the Company’s control. The Company hereby commits that once the relevant business or assets

meet the conditions for transfer to Acter Group or its subsidiaries we shall prioritize the transfer of such

business or assets to Acter Group or its subsidiaries at a fair price provided that such transfer complies

with applicable laws regulations regulatory requirements and the interests of Acter Group.

4. From the date of this commitment letter if Acter Group further expands its main products and

main business scope the Company and other enterprises controlled by the Company at that time guarantee

that they will not compete with the Company's expanded main products or main business; in case of

competition with Acter Group's expanded main products or main business the Company and other

enterprises controlled by the Company at that time guarantee that they will withdraw from the competition

in accordance with the following methods The Company and other enterprises controlled by the Company

at that time undertake to withdraw from competition with the Company in the following manner including

but not limited to the following:

(1) Cessation of production of products that compete or may compete with the Company's expanded

principal products;

(2) Cessation of the operation of businesses that compete or may compete with the Company's

expanded main business;

(3) Incorporate into the Company with the Company's consent businesses that compete with the

Company's expanded principal business;

(4) Transferring the business competing with the Company's expanded main business to an unrelated

third party.

5. This commitment letter shall be effective from the date of issuance and shall continue to be

effective in the period in which the Company is an indirect controlling shareholder of the Company.Note 5:

(I) In order to ensure that the Company’s measures to fill the immediate returns can be effectively

fulfilled the Company's direct controlling shareholder Sheng Huei International and its indirect

controlling shareholder Acter (Taiwan) have made the following undertakings:

1. Do not intervene in the operation and management activities of the Company beyond their authority.

2. Do not encroach on the interests of the Company.

3. Do not harm the interests of the Company.

4. Do not effectively fulfill any commitments made by the Company in relation to the measures to

fill in the returns. If the Company violates such commitments and causes losses to the Company or the

investors the Company is willing to bear the compensation liability to the Company or the investors in

accordance with laws.The Company as the responsible party for the above undertakings will be liable for compensation

in accordance with laws if it violates the above undertakings and causes losses to the Company or investors.(II) In order to guarantee that the Company's measures to fill in the immediate returns can be

practically fulfilled the directors and senior management of the Company undertake that:

71 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

1. Do not transfer benefits to other units or individuals without compensation or on unfair terms nor

use other means to harm the interests of the Company;

2. Restrain my consumption behavior in the office;

3. Do not use the Company’s assets to engage in investment and consumption activities unrelated to

the performance of their duties;

4. Fully support the remuneration system when it is formulated by the Board of Directors or the

Remuneration and Appraisal Committee to link the remuneration system with the implementation of the

Company's measures to fill in the returns and to vote in favor of the relevant motions when they are being

considered (if I have the right to vote);

5. If the Company subsequently launches the equity incentive policy I undertake to fully support the

proposals in the meeting of the board of directors and shareholders’ meeting which are to be announced

and about the exercise conditions of the Company's equity incentives and the implementation of the

Company's measures to fill in the returns; I will be willing to vote in favor of (if I have the right to vote)

such motions;

6. After the date of this undertaking and before the completion of the implementation of the IPO and

listing of the Company if the CSRC makes any other new regulatory provisions on the measures and

undertakings for filling the returns and if the above undertakings fail to satisfy such provisions of the

CSRC I undertake to issue supplementary undertakings in accordance with the latest provisions of the

CSRC at that time;

7. I undertake to effectively fulfill the relevant measures formulated by the Company to fill in the

returns and any commitments I have made in relation to the measures to fill in the returns and I am willing

to bear the responsibility of compensating the Company or investors in accordance with the laws in the

event of any violation of such commitments by me and any loss caused to the Company or investors.

8. As one of the parties responsible for the measures to fill in the returns if I violate the above

undertakings or refuse to fulfill the above undertakings I agree to be punished or take relevant

management measures in accordance with the relevant regulations and rules formulated or issued by the

CSRC and the Shanghai Stock Exchange and other securities regulatory authorities.(III) In order to protect the right to know and the interests of small and medium-sized investors the

Company has conducted a careful analysis of the impact of the IPO on the dilution of immediate returns

and has put forward specific measures and undertakings to cover the diluted immediate returns:

1. Comprehensively enhance the management level of the Company and improve the efficiency of

capital utilization

To improve the Company's operational efficiency strengthen budget management control the

Company's expenses improve the efficiency of capital utilization comprehensively and effectively

control the Company's operation and risk management and enhance operational efficiency and

profitability. In addition the Company will improve the remuneration and incentive mechanism introduce

outstanding talents in the market fully exert employee’s working passion and explore their creativity and

potentials. Through the above measures the Company will comprehensively improve the operational

efficiency reduce costs and enhance the Company's operating results.

2. Strengthen the supervision of investment projects to ensure the reasonable and legal use of funds

raised.The Company has formulated the Proceeds Management System and other relevant systems in order

to standardize the use and management of the Company's issue proceeds and ensure that the issue proceeds

are used in a standardized safe and efficient manner. The board of directors has passed a resolution on the

establishment of a special account for the use and management of the issue proceeds which will be

deposited in the special account designated by the board of directors and used for the specific purpose

only. The Company will strictly manage the use of proceeds in accordance with relevant laws and

regulations and the requirements of the Proceeds Management System and will actively cooperate with

the regulatory banks and sponsoring organizations in the inspection and supervision of the use of proceeds

so as to ensure that the proceeds are reasonably used in a normal manner and to reasonably guard against

the risk of the use of proceeds.

3. Accelerate the investment progress of the fund-raising projects and strive to realize the expected

benefits of the projects as soon as possible.The implementation of the fund-raising investment projects of the Offering is in line with the

Company's development strategy which can effectively enhance the Company's business capacity and

profitability and is conducive to the Company's sustainable and rapid development. Prior to the

availability of the proceeds the Issuer intends to actively raise funds through a variety of channels to

72 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

accelerate the investment progress of the fund-raising projects and strive to realize the expected benefits

of the projects as early as possible so as to enhance the shareholders' returns in the next few years and to

reduce the risk of dilution of the current returns caused by the Issue.

4. Further improve the profit distribution system and strengthen the investor return mechanism.

The Company has amended the Articles of Association (Draft) in accordance with relevant laws and

regulations and established a sound and effective shareholder return mechanism. Upon completion of the

Offering the Company will in accordance with relevant laws and regulations and the Company’s Articles

of Association (Draft) actively promote the distribution of profits to shareholders where the conditions

for profit distribution are met so as to effectively maintain and increase the returns to shareholders.Note 6:

As per relevant provisions of the Opinions on Further Promoting the Reform of the New Issue System

of New Shares issued by the CSRC the Proposal of Stabilizing the Share Price of Acter Technology

Integration Group Co. Ltd. was passed in the Company’s 2021 2nd interim shareholders’ meeting through

consideration in order to protect the interests of investors and further specify the measures to stabilize the

share price of the Company when the share price of the Company is lower than the net asset per share

within three years after the listing of the Company.(I) Effective Period of the PLAN

The Plan shall be valid for three years from the date of listing of the Company's shares.(II) Conditions for Activation and Cessation of the Share Price Stabilization Plan

1. Conditions for activation

Within three years after the listing of the Company's shares if the closing price of the Company's

shares for 20 consecutive trading days is lower than the Company's audited net asset value per share as of

the end of the most recent period (in the event that the closing price of the said shares is not comparable

with the Company's audited net asset value per share as of the end of the most recent period due to ex-

rights and ex-dividend matters the said net asset value per share shall be adjusted accordingly) and if the

provisions of relevant laws regulations and standardized documents relating to the buyback and holding

of additional shares are also met the plan shall be triggered then the measures for stabilizing the

Company’s stock price by the Company controlling shareholders directors (excluding independent

directors) and senior management shall be taken.

2. Cessation Conditions

During the implementation period if any of the following circumstances occurs the implementation

of the stock price stabilization measures and the fulfillment of the commitments shall be deemed to be

completed and the announced stock price stabilization plan shall cease to be implemented:

* The closing price of the Company's shares for 5 consecutive trading days is higher than the

Company's unaudited net assets per share for the latest period (if the closing price of the said shares is not

comparable with the Company's audited net assets per share at the end of the latest period due to ex-rights

and ex-dividend matters the said net assets per share shall be adjusted accordingly);

* Continuing to repurchase or hold additional shares of the Company will result in the Company's

shareholding distribution failing to meet the listing conditions;

* Continuing to hold additional shares will result in the need to fulfill the obligation to make a

tender offer and it has not planned to implement the tender offer.

3. Specific measures of the share price stabilization plan

(1) Buyback by the Company

* The Company shall convene the Board of Directors within 10 trading days from the date of

triggering the activation conditions of the share price stabilization measures in accordance with laws

regulations and the Articles of Association of the Company. The Board of Directors shall formulate a

clear and specific buyback plan the content of which shall include but not be limited to the types of

shares to be repurchased by the Company the number of ranges the price ranges the period of

implementation etc. and submit it to the Shareholders’ Meeting of the Company for deliberation and

approval; the buyback plan will become effective upon consideration and approval by the General Meeting.The buyback plan shall become effective after it is considered and approved by the general meeting of the

Company. However the program will not be implemented any longer if the share price of the Company

before or during the implementation of the share buyback plan already fails to meet the conditions for

initiating measures to stabilize the Company's share price.* After the share buyback plan is approved by the shareholders' meeting the Company will notify

creditors in accordance with laws and submit relevant materials to the competent authorities such as the

73 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

securities regulatory authorities and stock exchanges for approval or filing. The buyback price of the

Company shall not be higher than the Company's audited net asset value per share as of the end of the

most recent period (if the closing price of the said shares is not comparable to the Company's audited net

asset value per share as of the end of the most recent period due to ex-rights and ex-dividend matters the

said net asset value per share shall be adjusted accordingly) and the method of buyback of shares shall be

by way of centralized competitive bidding and trading by way of an offer or by other methods approved

by the securities regulatory authorities.* If the share price of the Company triggers the above conditions for price stabilization measures

several times in a fiscal year the Company will continue to implement the above share price stabilization

plan as per the following principles: I. The amount of funds used for share buyback in a single buyback

shall not be higher than 10% of the audited net profit attributable to the shareholders of the parent company

of the previous fiscal year; II. The total amount of buyback funds used to stabilize the share price in a

single fiscal year shall not exceed 30% of the audited net profit attributable to shareholders of the parent

company in the preceding fiscal year. If the above criteria are exceeded the relevant share price

stabilization measures will not be continued in the current year. However in the event that circumstances

requiring the activation of share price stabilization measures continue to arise in the following year the

Company will continue to implement the share price stabilization plan in accordance with the above

principles.

(2) Increase in shareholdings by controlling shareholders

* If the board of directors fails to formulate and announce a share buyback plan within 10 trading

days after triggering the obligation or if the share buyback plan is rejected by the shareholders' meeting

or if the company fails to fulfill or is unable to fulfill the obligation to repurchase shares within 30 days

after announcing the specific implementation plan for the buyback or if the company fails to stabilize the

closing price of its stock above the audited net asset value per share for more than 5 consecutive trading

days after reaching the upper limit of the buyback plan it will trigger the obligation for the controlling

shareholder to increase its shareholding.* On the premise of not affecting the company's listing conditions the company's controlling

shareholders shall be triggered within 3 trading days from the date of the obligation to increase the

proposed plan to increase the company's shareholding (including the number of shares to be increased

price range time etc.) and in accordance with laws to carry out the necessary approvals and notify the

company within 3 trading days of approval the company shall be in accordance with the relevant

provisions of the disclosure of the plan for the increase in the purchase of shares. The Company shall

disclose the plan to increase its shareholding in accordance with the relevant regulations. Three trading

days after the Company discloses the plan to increase its shareholding in accordance with the plan the

Company shall commence the implementation of the plan to increase its shareholding in accordance with

the plan.* The method for the controlling shareholder of the Company to increase its shareholding shall be

by way of centralized bidding and trading offer or other methods approved by the securities regulatory

authorities and the price of the additional shareholding shall not exceed the audited net asset value per

share as of the end of the most recent period (in the event that the closing price of the aforesaid shares is

not comparable with the audited net asset value per share as of the end of the most recent period due to

ex-rights and ex-dividend etc. the aforesaid net asset value per share shall be adjusted accordingly).However if the share price of the Company no longer meets the conditions for activating the measures to

stabilize the Company's share price prior to or in the course of the implementation of the plan to increase

the shareholding of the Company the plan may not be continued.If the Company's share price triggers the above conditions for the need to take share price stabilization

measures several times within a fiscal year the controlling shareholder will continue to implement the

share price stabilization plan in accordance with the above but shall follow the following principles: I.The amount of funds used to increase shareholdings on a single occasion shall not be less than 20% of the

amount of after-tax cash dividends received by the controlling shareholder from the Company on the most

recent occasion; II. The amount of funds used to stabilize the share price to increase shareholdings in a

single year shall not exceed 50% of the amount of after-tax cash dividends received by the controlling

shareholder from the Company on the most recent occasion. If the above criteria are exceeded the relevant

share price stabilization measures will not be continued in the current year. However in the event that

circumstances requiring the activation of share price stabilization measures continue to arise in the

following year the Company will continue to implement the share price stabilization plan in accordance

with the above principles. In the event that the share price stabilization measures are triggered in the

74 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

following year the amount of funds already used for share price stabilization in prior years will no longer

be counted as part of the cumulative cash dividends.

(3) Increase in shareholdings by directors (excluding independent directors) and senior management

* If the controlling shareholder of the Company fails to propose a plan to increase the shareholding

of the Company within 10 trading days from the date of triggering the obligation to increase shareholding

or fails to commence the implementation of the plan to increase shareholding within 30 days from the date

of the Company's announcement of the plan to increase shareholding or if after the controlling

shareholder of the Company has reached the maximum limit of the plan to increase shareholding the

closing price of the Company's shares still fails to be stabilized at a level higher than the Company's

audited net asset value per share as of the end of the most recent period for a period of more than 5 trading

days then the obligation of the Company's directors (excluding independent directors) and senior

management will be triggered to increase their holdings of the Company's shares.* Without affecting the listing conditions of the company the company's directors (excluding

independent directors) senior management shall be triggered within 3 trading days from the date of the

obligation to increase the proposed plan to increase the company's shares (including the number of shares

to be increased the price range time etc.) and comply with the law to carry out the necessary approval

procedures and notify the company within 3 trading days of approval the company shall disclose the plan

to increase the acquisition of shares in accordance with the relevant provisions. Three trading days after

the Company discloses the plan to increase its shareholding in accordance with the plan the Company

shall commence the implementation of the plan to increase its shareholding in accordance with the plan.* The directors (excluding independent directors) and senior management of the Company will

purchase the Company's shares through competitive bidding transactions to stabilize the Company's share

price at a price not higher than the Company's audited net asset value per share as of the end of the most

recent period (in the event that the closing price of the aforesaid shares is not comparable to the audited

net asset value per share as of the end of the most recent period due to ex-rights and ex-dividend etc. the

aforesaid net asset value per share shall be adjusted accordingly). However if the share price of the

Company does not meet the conditions for the activation of measures to stabilize the Company's share

price within 3 trading days of the disclosure of the Company's purchase plan or in the course of the

implementation of the plan the Company may cease to implement the above plan to increase the

Company's shareholding. If the share price of the Company triggers the above conditions for price

stabilization measures several times within a fiscal year the directors (excluding independent directors)

and senior management of the Company will continue to implement the above share price stabilization

plan but shall comply with the following principles: I. The amount of funds used for the purchase of

shares on a single occasion shall not be less than 20% of the after-tax remuneration that he/she received

from the Company during the previous fiscal year while he/she was serving as a director or a senior

management; II. The amount of funds used to stabilize the share price in a single year shall not exceed 50%

of the after-tax remuneration received from the Company in the previous fiscal year in the period in which

he or she held the position of director or senior executive. If the above criteria are exceeded the relevant

share price stabilization measures will not be continued in the current year. However in the event that

circumstances requiring the activation of price stabilization measures continue to arise in the following

year the share price stabilization plan will continue to be implemented in accordance with the above

principles.If the Company appoints new directors (excluding independent directors) and senior management

the Company will require the new directors and senior management to fulfill the corresponding

commitments made by the directors and senior management when the Company was listed.

4. Restrictive measures for failure to activate share price stabilization measures

If the Company controlling shareholders directors (excluding independent directors) and senior

management fail to take the specific measures above for stabilizing the share price when the conditions

for the activation of the price stabilization measures are met the Company undertakes to accept the

following restrictive measures:

(1) The Company controlling shareholders directors (excluding independent directors) and senior

management will publicly explain the reasons why the above measures are not taken and apologize to the

Company’s shareholders and public investors at the general meeting of the Company and in the disclosure

media designated by the CSRC.

(2) The controlling shareholder of the Company undertakes that: (2) If the controlling shareholder

fails to take the specific measures above for stabilizing the share price when the conditions for the initiation

of the share price stabilization measures are met the Company shall have the right to withhold or deduct

75 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

the cash dividends payable to the unit in an amount equal to the amount used for the implementation of

the Share Increase Plan.

(3) The directors (excluding independent directors) and senior management of the Company

undertake that: when the conditions for the activation of the share price stabilization measures are met the

Company shall have the right to withhold or reduce the remuneration and cash dividends payable to the

Company if the Company fails to take the specific measures above to stabilize the share price.

5. Legal procedures of the proposal

In the event that the Company needs to adjust the proposal which is inconsistent with the relevant

provisions due to revisions of laws and regulations or changes in policies such adjustments shall be

approved by more than two-thirds of the total number of voting shares held by shareholders present at the

shareholders’ meeting.Note 7:

(I) Restrictive Measures by the Company Regarding Non-fulfillment of Public Commitments:

The Company will strictly fulfill all matters of public commitments made by the Company in

connection with the IPO and listing of shares and actively accept social supervision. Unless otherwise

specifically constrained if the Company fails to fully and effectively fulfill the undertakings made in the

course of its IPO and listing the Company undertakes to take the following restrictive measures:

1. If the Company fails to fulfill its public commitments or if the fulfillment of the commitments is

not conducive to the protection of the Company's rights and interests due to reasons other than force

majeure the Company shall propose to replace the original commitments with new commitments or

propose to waive the fulfillment of the obligations under the commitments. The above changes shall be

submitted to the shareholders’ meeting for consideration and the Company will provide shareholders with

the means of internet voting and urge the shareholders involved in the commitment matters to abstain from

voting. If new commitments are proposed to replace the original ones the relevant commitments shall

comply with the prevailing laws regulations and the Company’s Articles of Association; and the

Company undertakes to accept the following constraints until the fulfillment of the commitments or the

implementation of the corresponding remedial measures is completed:

(1) Publicly explain the specific reasons and apologize to the shareholders and public investors in the

shareholders’ meeting and the disclosure media designated by the CSRC;

(2) Reduction or suspension of the remuneration or allowances of directors supervisors and senior

management who are personally liable for the Company's failure to fulfill the undertakings (if such persons

are on the Company's payroll);

(3) Not to approve the application for voluntary departure of directors supervisors and senior

management who have failed to fulfill their undertakings but may make changes in their positions;

(4) In case of losses caused to investors the Company will be liable to compensate investors in

accordance with laws;

(5) In accordance with laws regulations and the requirements of the relevant regulatory bodies

assume the corresponding responsibilities.

2. If the company fails to fulfill its public commitments or fails to fulfill its public commitments on

schedule due to force majeure the Company shall propose new commitments (the relevant commitments

shall comply with the laws regulations articles of association and fulfill the relevant approval procedures)

and shall be subject to the following constraints until the commitments have been fulfilled or the

corresponding remedial measures have been implemented:

(1) Publicly explain the specific reasons and apologize to the shareholders and public investors in the

shareholders’ meeting and the disclosure media designated by the CSRC;

(2) To expeditiously study solutions for minimizing the loss of investors' interests and submit them

to the shareholders’ meeting for consideration so as to protect the interests of the Company's investors as

far as possible.(II) Controlling Shareholders’ Restrictive Measures on Failure to Fulfill Public Undertakings

Unless otherwise specifically constrained if Sheng Huei International the direct controlling

shareholder of the Company and Acter (Taiwan) the indirect controlling shareholder of the Company

fail to fully and effectively fulfill the undertakings they have made in the course of the IPO and listing of

Acter Group they undertake to take the following restrictive measures:

1. In the event that the Company fails to fully and effectively fulfill its obligations or responsibilities

under the aforementioned undertakings the Company undertakes to actively cooperate with the relevant

regulatory authorities in their investigations and accept the corresponding penalties;

76 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. To compensate public investors with its own funds for direct losses suffered as a result of relying

on the relevant undertakings to implement the transactions with the amount of compensation to be

determined on the basis of the amount negotiated between the Company and the investor or in the manner

or in the amount determined by the relevant regulatory authorities or judicial organs;

3. If income is obtained as a result of non-performance of the undertakings (i.e. such income cannot

be obtained in the case of performance of the undertakings) the income obtained shall belong to the

Company which will pay the aforesaid income to the Company's designated account within 5 days of

obtaining the income; and if losses are incurred by the Company or other investors as a result of the non-

performance of the undertakings the Company or other investors shall be held liable for compensation

according to laws.(III) Restrictive Measures for Directors Supervisors and Senior Management of the Company in

Respect of Non-fulfillment of the Undertakings:

The directors supervisors and senior management of the Company undertake:

I have made relevant undertakings in the process of IPO and listing of shares of Acter Group and if

I fail to fulfill them or if I am unable to fulfill them or if I am unable to fulfill them on schedule (except

for those due to relevant laws and regulations policy changes natural disasters and other force majeure

and other objective reasons beyond my control) or if the fulfillment of the relevant undertakings will be

detrimental to the safeguarding of the rights and interests of the Company and the investors I will take

the following measures:

1. Disclose the specific reasons why I have failed to fulfill my commitments was unable to fulfill

them or fulfill them on schedule in time through the Company;

2. Submit to the Company and its investors an application for change of undertakings or exemption

from fulfillment of undertakings and submit it to the shareholders’ meeting for consideration in order to

protect the rights and interests of the Company and its investors. I will recuse myself from voting at the

shareholders' meeting when the matter is considered (if I am a shareholder of the Company at that time);

3. Submit the proceeds from my breach of my undertaking to the Company.

If the Company or the investor suffers any loss by my failure to fulfil my undertaking or incapacity

to fulfil or fulfil an undertaking on time I will compensate the Company or investors in accordance with

the laws and the following procedures:

1. I agree that the Company shall reduce or cease to pay my salary bonus allowance dividend (if

any) etc. and use the reduced or ceased salary bonus allowance dividend (if any) etc. to implement

the unfulfilled commitments or to compensate for the losses caused to the Company and the investors as

a result of the unfulfilled commitments;

2. If I reduce my shareholding before the compensation is completed the funds obtained from the

reduction will be supervised by the Board of Directors of the Company and used exclusively for the

fulfillment of the commitments or compensation until I have fulfilled my commitments or compensated

for the losses incurred by the Company and the investors (if I am a shareholder of the Company at that

time).In the event that I fail to fulfill my commitments am unable to fulfill them or fulfill them on schedule

due to objective reasons beyond my control such as the changes in relevant laws regulations and policies

natural disasters etc. I will make disclosure the reason in time via the Company and actively take

measures to change my commitments supplement my commitments and other means to safeguard the

rights and interests of the Company and the investors.I will not refuse to fulfill the above commitments due to a change of position dismissal etc.(IV) Restrictive measures of Suzhou Songhuei and Suzhou Shengzhan against the failure to fulfill

the commitments

The shareholders of the Company Suzhou Songhuei and Suzhou Shengzhan hereby undertake that:

As shareholders of the Company unless otherwise specified if the Company fails to fully and

effectively fulfill the undertakings made in the course of the Company's IPO and listing the Company

undertakes to take the following restrictive measures:

1. If the Company fails to fully and effectively fulfill the obligations or responsibilities in the

foregoing undertakings the Company undertakes to actively cooperate with the relevant regulatory

authorities in their investigations and accept the corresponding penalties;

2. Compensate public investors with its own funds for direct losses suffered as a result of relying on

the relevant undertakings to implement the transactions with the amount of compensation to be

determined on the basis of the amount negotiated between the Company and the investor or in the manner

or in the amount determined by the relevant supervisory authorities or judicial organs;

77 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

3. If the Company obtains income from the failure to fulfil the commitments (i.e. such income cannot

be obtained in the case of fulfillment of the commitments) the income obtained shall belong to the

Company which shall pay the aforesaid income to the designated account of the Company within 5 days

upon obtaining the income; and if the non-fulfillment of the commitments causes losses to the Company

or other investors the Company shall compensate for the losses to the Company or other investors

according to laws.(II) If There is a Profit Forecast for the Company’s Assets or Projects and the Reporting Period is

Still in the Profit Forecast Period the Company Shall Make a Statement on Whether the Assets or

Projects Have Met the Original Profit Forecast and the Reasons Thereof

□ Achieved □ Not Achieved ? N/A

(III) Performance Commitments

□ Applicable ? N/A

Change in performance commitments

□ Applicable ? N/A

Other notes

□ Applicable ? N/A

78 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

II. Non-operational Appropriation of Funds by Controlling Shareholders and Other Connected Parties during the Reporting Period

□ Applicable ? N/A

III. Violation of Guarantees

□ Applicable ? N/A

79 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.IV. Explanation for the Board of Directors of the Company on the “Non-standard Opinion AuditReport” of the Accounting Firm

□ Applicable ? N/A

V. Explanation for the Company’s Analysis of the Reasons for and Impact of Changes in Accounting

Policies Accounting Estimates or Correction of Material Accounting Errors

(I) Explanation for the Company’s Analysis of the Reasons for and Impact of Changes in Accounting

Policies and Accounting Estimates

□ Applicable ? N/A

(II) Explanation for the Company’s Analysis of the Reasons for and Impact of the Correction of

Significant Accounting Errors

□ Applicable ? N/A

(III) Communication with the Former Accounting Firm

□ Applicable ? N/A

(IV) Approval Procedures and Other Notes

□ Applicable ? N/A

VI. Appointment and Dismissal of Accounting Firm

In RMB Yuan

Current Appointment

ShineWing Certified Public Accountants LLP

Name of domestic accounting firm

(special general partnership)

Remuneration of domestic accounting firm 849056.60

Years of audit experience of domestic accounting

4

firm

Name of certified public accountants of the

Liu Yuehua Wang Ping

domestic accounting firm

Cumulative years of audit service of the certified

4

public accountants of the domestic accounting firms

Name of overseas accounting firm N/A

Remuneration of the overseas accounting firm N/A

Years of audit by overseas accounting firms N/A

Firm Name Remuneration

ShineWing Certified Public

Internal control audit accounting

Accountants LLP (special 188679.25

firm

general partnership)

Financial consultant N/A

Sponsor N/A

Appointment and dismissal of accounting firm

? Applicable □ N/A

The Company passed the Resolution on the Re-appointment of Accounting Firm at the 18th Meeting

of the 2nd Board of Directors on March 28 2025 and the 2024 annual shareholders’ meeting on April 18

2025 and agreed to re-appoint ShineWing Certified Public Accountants LLP as the auditing organization

of the Company's annual financial report and internal control for the year 2025.

80 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Explanation for the reappointment of the accounting firm during the audit period

□ Applicable ? N/A

Explanation for the decrease of 20% or more in the audit fee as compared with that of the prior year

□ Applicable ? N/A

VII. Situations Facing the Risk of Delisting

(I) Reasons for Delisting Risk Warning

□ Applicable □ N/A

(II) Countermeasures to be Taken by the Company

□ Applicable ? N/A

(III) Circumstances and Reasons for Termination of Listing

□ Applicable ? N/A

VIII. Matters Relating to Bankruptcy and Reorganization

□ Applicable ? N/A

IX. Significant Litigation and Arbitration Matters

□ Major litigation and arbitration matters in the current year

√ No major litigation and arbitration matters in the current year

X. Punishment and Rectification on the Listed Company Its Directors Senior Management

Controlling Shareholders and Actual Controllers Due to Suspect of Law Violations.□ Applicable ? N/A

XI. Explanation for the Integrity Status of the Company Its Controlling Shareholders and Actual

Controllers during the reporting period

□ Applicable ? N/A

XII. Significant Related Transactions

(I) Related Party Transactions Related to Daily Operations

1. Matters disclosed in the interim announcement and with no progress or change in subsequent

implementation

□ Applicable ? N/A

2. Matters disclosed in the interim announcement but with progress or changes in subsequent

implementation

? Applicable □ N/A

On March 28 2025 the Company held the 18th Meeting of the 2nd Board of Directors and the 16th

Meeting of the 2nd Board of Supervisors at which it approved the Proposal on the Confirmation of

Routine Related Transactions for the Year 2024 and the Expected Routine Related Transactions for the

81 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Year 2025 respectively through consideration. As of the end of the reporting period the daily related party

transactions between the Company and the proposed connected persons are as follows and have not

exceeded the projected amounts:

Estimated Amount

Category of Related Party Actual Amount in 2025

Related party for 2025

Transactions (RMB 10000)

(RMB 10000)

Rental of buildings to

500343.42

related parties Suzhou Winmax

Acceptance of rental Technology Corp. and its

housing from related subsidiaries 10 5.22

parties

Total 510.00 348.64

Note: The actual amount incurred in 2025 includes collected and paid water and electricity expenses

on behalf of relevant parties.For details of the relevant matters please refer to the Proposal of Acter Group on the Confirmation

of Routine Related Transactions for the Year 2024 and the Expected Routine Related Transactions for the

Year 2025 (Announcement No. 2025-007) disclosed by the Company on the website of the Shanghai Stock

Exchange (www.sse.com.cn) and the designated media on March 29 2025.

3. Matters not disclosed in the interim announcement

□ Applicable ? N/A

(II) Related Party Transactions Arising from the Acquisition or Disposal of Assets or Equity

Interests

1. Matters disclosed in the interim announcement and with no progress or change in subsequent

implementation

□ Applicable ? N/A

2. Matters disclosed in the interim announcement but with progress or changes in subsequent

implementation

□ Applicable ? N/A

3. Matters not disclosed in the interim announcement

□ Applicable ? N/A

4. If performance agreement is involved the performance realization of the reporting period shall

be disclosed

□ Applicable ? N/A

(III) Significant Related Party Transactions of Joint Foreign Investment

1. Matters disclosed in the interim announcement and with no progress or change in subsequent

implementation

□ Applicable ? N/A

82 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. Matters disclosed in the interim announcement but with progress or changes in subsequent

implementation

□ Applicable ? N/A

3. Matters not disclosed in the interim announcement

□ Applicable ? N/A

(IV) Related Debt Transactions

1. Matters disclosed in the interim announcement and with no progress or change in subsequent

implementation

□ Applicable ? N/A

2. Matters disclosed in the interim announcement but with progress or changes in subsequent

implementation

□ Applicable ? N/A

3. Matters not disclosed in the interim announcement

□ Applicable ? N/A

(V) Financial business between the Company and finance companies with which it has a connected

relationship and between the Company's holding company and connected parties

□ Applicable ? N/A

(VI) Others

□ Applicable ? N/A

XIII. Significant Contracts and Their Fulfillment

(I) Trusteeship Contracting and Leasing Matters

1. Trusteeship

□ Applicable ? N/A

2. Contracting

□ Applicable ? N/A

3. Leasing

□ Applicable ? N/A

83 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(II) Guarantees

? Applicable □ N/A

In RMB Yuan

External Guarantees of the Company (Excluding Guarantees to Subsidiaries)

Relation Date of Whether

Whether

ship Amount Guarantee Guarante the Amoun Guarante Relationshi

Guarante Type of the

Guaranto with the Guarantee of (Signature e Collatera Guarante t Counter- e for p

e Starting Guarante Guarante

r Listed d Party Guarante Date of Expiratio l (if any) e Has Overdu guarantee Related Relationshi

Date e e Is

Compan e Agreemen n date Been e Parties p

Overdue

y t) Fulfilled

Total amount of guarantees incurred during the reporting period

(excluding guarantees to subsidiaries)

Total guarantee balance at the end of the reporting period (A)

(excluding guarantees to subsidiaries)

Guarantees by the Company and its Subsidiaries to Subsidiaries

Total amount of guarantee incurred for subsidiaries during the

384702246.00

reporting period

Total balance of guarantees to subsidiaries as of the end of the

833740603.05

reporting period (B)

Status of Total Corporate Guarantees (Including Guarantees to Subsidiaries)

Total amount of guarantees (A+B) 833740603.05

Proportion of total guarantees in the Company’s net assets (%) 71.35

Including:

Amount of guarantees in favor of shareholders actual controllers and

0

their related parties (C)

Amount of debt guarantees provided directly or indirectly for

guaranteed objects with asset-liability ratio exceeding 70% (D)

Amount of the portion of total guarantees exceeding 50% of net assets 249514698.89

(E)

84 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Total amount of the above three guarantees (C+D+E) 249514698.89

Explanation for possible joint and several liability for outstanding

guarantees

At the 14th Meeting of the Audit Committee of the 2nd Board of Directors the 18th Meeting

of the 2nd Board of Directors the 16th Meeting of the 2nd Board of Supervisors on March 28

2025 and the 2024 shareholders’ meeting on April 18 2025 the Company passed the Proposal

on the Total Estimated Guarantee for the Year 2025 through consideration. According to the

Description of guarantees proposal above the Company can provide guarantees for its subsidiaries mutual guarantees

between subsidiaries and guarantees provided by subsidiaries for the Company with the total

amount not exceeding RMB 6500000000 in 2025. For details please refer to the

Announcement on the Estimated Total Guarantee Quota for 2025 (Announcement No. 2025-

008) disclosed by the Company on March 29 2025.

(III) Entrusted Cash Asset Management

1. Entrusted financial management

(1) Overall entrusted wealth management

? Applicable □ N/A

In RMB Yuan

Type Risk Characteristics Outstanding Balance Overdue Amount not Recovered

Bank financial products Low risk 0 0

Others

□ Applicable ? N/A

(2) Individual entrusted financial management

□ Applicable ? N/A

Others

□ Applicable ? N/A

85 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(3) Provision for impairment of entrusted finance

□ Applicable ? N/A

2. Entrusted loans

(1) Overall situation of entrusted loans

□ Applicable ? N/A

Others

□ Applicable ? N/A

(2) Individual entrusted loans

□ Applicable ? N/A

Others

□ Applicable ? N/A

(3) Provision for impairment of entrusted loans

□ Applicable ? N/A

3. Others

□ Applicable ? N/A

(IV) Other Significant Contracts

□ Applicable ? N/A

XIV. Explanation for the Progress of the Use of Proceeds

? Applicable □ N/A

86 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(I) Overall Utilization of Proceeds Raised

? Applicable □ N/A

In RMB Yuan

Cumulati

Including: Cumulati

ve Input

Total Cumulati Cumulati ve Input

Progress

Committe ve Total ve Total Progress Percenta

of Over-

d Amount Amount of ge of Total

raised

Investmen Amount of of Over- Proceeds Current Amount

Time of Total Funds as Amount

Source of Net t of of Over- Proceeds raised as of the Year’s of

Arrival of Amount of the Invested

Fund- Proceeds Proceeds raised Invested funds End of Input Proceeds

the Fund- of Fund- End of during the

raising (1) (2) in Funds (3) as of the Invested the Amount from

raising raising the Year (8)

Prospectu = (1) – (2) End of as of the Reporting (%) Change

Reporting

s or the End of Period (9)=(8)/( of Use

Period

Offering Reporting the (%) 1)

(%)

Circular Period (4) Reporting (6)=(4)/(1

(7)=(5)/(3

Period (5) )

)

IPO Septembe 5450000 4853471 4853471 4748126 5678923

0097.8301.17/

r 29 2022 00.00 60.34 60.34 60.30 .12

54500004853471485347147481265678923

Total / 0 0 / / /

00.0060.3460.3460.30.12

Others

□ Applicable ? N/A

(II) Details of the Fund-raising Projects

? Applicable □ N/A

1. Use of proceeds

? Applicable □ N/A

In RMB 10000

Commi Relat Total Amo Cum Cumulativ Date Close Whet Specific Bene Benefits Has

Source Proje Amou

Item tted ed to Amou unt ulati e Progress Project d or her Reasons fits Realized There

of ct nt of

Invest Chan nt of Inves ve of Inputs reaches Not the Why Inputs Reali or R&D Been a

87 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Fund- Natur ment ged Fund- ted in Total as of the Intende Progr Did Not zed Results Signifi Saving

raising e Project Inves raising this amo End of the d ess of Progress as Duri of the cant s

in tment Plan Year unt Reporting Useabl Inputs Planned ng Project Chang

Prospe (1) of Period (%) e is in the e in the

ctus or Proc (3)=(2)/(1) Conditi Line Year Feasibi

Offerin eeds on with lity of

g Inves the the

Circula ted Plann Project

r as of ed and If

the Sched so

End ule Please

of Provid

the e

Repo Details

rting

Perio

d (2)

Supp

leme

nt al

Clea

n

Roo

m

Proje

439

ct 43764

IPO Other Yes No 0.00 88.4 100.51% / Yes Yes / N/A N/A No /

Supp .42

7

ortin

g

Wor

king

Capit

al

Proje

ct

88 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

R&D

Cent

er

Decem

Cons 2539. 567.8 125

IPO R&D Yes No 49.40% ber No Yes / N/A N/A No /

tructi 50 9 4.55

2026

on

Proje

ct

Mark

eting

and

Servi

Oper

ce

ation Septem

Netw 2230. 223

IPO mana Yes No 0.00 100.33% ber Yes Yes / N/A N/A No /

ork 80 8.25

geme 2024

Cons

nt

tructi

on

Proje

ct

474

48534567.8

Total / / / / 81.2 / / / / / / /.729

7

2. Specific circumstances of the re-demonstration of the fund-raising projects during the reporting period

□ Applicable ? N/A

(III) Changes in or Termination of Fund-raising Investments during the Reporting Period

□ Applicable ? N/A

89 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(IV) Other Use of Proceeds during the Reporting Period

1. Prior investment and replacement of issue proceeds investment projects

□ Applicable ? N/A

2. Temporarily supplementing liquidity with idle proceeds

□ Applicable ? N/A

3. Cash management of idle issue proceeds and investment in related products

? Applicable □ N/A

In RMB 10000

Effective Whether

Cash

Consider the

Manage

ation Maximum

ment

Amount Balance

Balance

Considered by the of for the

Starting Date Ending Date at the

Board of Directors Proceeds Period

End of

Used for Exceeds

the

Cash the

Reportin

Managem Authorize

g Period

ent d Amount

October 25 2024 2000.00 October 25 2024 October 24 2025 / No

October 17 2025 1200.00 October 17 2025 October 16 2026 1200.00 No

Others

None

4. Others

□ Applicable ? N/A

(V) Conclusion Opinions of Intermediaries on the Special Inspection and Verification of the

Storage and Use of Raised Funds

? Applicable □ N/A

For details of the relevant matters please refer to the Verification Opinion of Soochow Securities Co.Ltd. on the Deposit and Use of Raised Funds of Acter Technology Integration Group Co. Ltd. for the Year

2025 and the Verification Report on the Annual Deposit and Use of Raised Funds disclosed by the

Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and the designated media

on March 28 2026.Explanation for relevant abnormal situations found in the inspection

□ Applicable ? N/A

(VI) Follow-up Rectification on Unauthorized Change in the Use of Raised Funds and Illegal

Occupation of Raised Funds

□ Applicable ? N/A

XV. Explanation for Other Significant Matters that Have a Significant Impact on Investors’ Value

Judgment and Investment Decisions

□ Applicable ? N/A

90 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section VI Changes in Shares and Information about Shareholders

I. Changes in Share Capital

(I) Table of Changes in Shares

1. Table of changes in shares

In Share

Before the

Changes in the Period (+-) After the Change

Change

Capital

New Reserv

Numbe Ratio Bonus Subtota Numbe Ratio

Shares e Others

r (%) Shares l r (%)

Issued Conver

sion

I. Shares

--

Subject to 64997

65.0064997649970

Selling 250

250250

Restrictions

1. State-

owned

shares

2. State-

owned legal

person

shares

3. Other

domestic

shares

Including:

domestic

non-state-

owned legal

person

shares

Domestic

individual

shares

4. Foreign- - -

64997

owned 65.00 64997 64997 0

250

shares 250 250

Including:

--

overseas 64997

65.0064997649970

legal person 250

250250

shares

Overseas

individual

shares

II. Shares

Subject to 64997 64997 10000

3500235.00100.00

No Selling 250 250 0000.0

750.00

Restrictions 0

1. RMB

649976499710000

ordinary 35002 35.00 100.00

2502500000.0

shares 750.00

0

91 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. Foreign-

listed

domestic

shares

3. Foreign-

listed

foreign

shares

4. Others

III. Total 10000 10000

100.00100.00

Shares 0000.0 0000.0

00

2. Description of changes in shares

□ Applicable ? N/A

3. Impact of changes in shares on financial indicators such as earnings per share and net assets per

share for the last year and the prior period (if any)

□ Applicable ? N/A

4. Other disclosures deemed necessary by the Company or required by securities regulatory

authorities

□ Applicable ? N/A

(II) Changes in Restricted Shares

? Applicable □ N/A

In Share

Number of Number of Number

Number of

Restricted Restricted of Reason

Restricted Lifting Date

Shares at Shares Restricte for

Shareholder Name Shares Lifted of

the Increased d Shares Restrictio

During the Restriction

Beginning During the at End of n

Year

of the Year Year Year

SHENG HUEI

INTERNATIONA October 13

64997250 64997250 0 0 IPO

L 2025

CO. LTD.Total 64997250 64997250 0 0 / /

II. Issuance and Listing of Securities

(I) Issuance of Securities Up to the Reporting Period

□ Applicable ? N/A

Explanation for securities issuance as of the reporting period (for bonds with different interest rates

during the subsistence period please explain separately):

□ Applicable ? N/A

(II) Changes in the Total Number of Shares and Shareholder Structure of the Company and

Changes in the Company’s Asset and Liability Structure

92 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

□ Applicable ? N/A

(III) Existing Internal Employee Shares

□ Applicable ? N/A

III. Shareholders and Actual Controllers

(I) Total Number of Shareholders

Total number of common shareholders as of the end

15167

of the reporting period (shareholder)

Total number of common shareholders as of the end

of the month prior to the date of the annual report 16980

(shareholder)

Total number of preferred stockholders with voting

rights restored as of the end of the reporting period N/A

(shareholder)

Total number of preferred stockholders with voting

rights restored at the end of the month preceding the N/A

annual report disclosure date (shareholder)

(Ⅱ) Shareholdings of top 10 shareholders and top 10 outstanding shareholders (or shareholders

with unlimited rights to sell) as of the end of the reporting period

In Share

Shareholdings of the Top 10 Shareholders (Excluding Shares Lent through Transfer)

Number Pledged Marked or

Number of Frozen

of Shares

Increase/Decr

Name of Shares Held Nature of

ease during Proporti

Shareholders Held at under Sharehold

the Reporting on (%) Sharehold Numb

(Full Name) the End Limited ers

Period ing Status er

of the Selling

Period Conditio

ns

SHENG HUEI

Overseas

INTERNATIO 649972

0 65.00 0 None 0 legal

NAL 50

person

CO. LTD.Suzhou

Songhuei

Enterprise

Management 812250

0 8.12 0 None 0 Other

Consulting 0

Partnership

(Limited

Partnership)

Suzhou

Shengzhan

Enterprise

Management 131475

565500 1.31 0 None 0 Other

Consulting 0

Partnership

(Limited

Partnership)

93 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Shanghai

Pudong

Development

Bank Co. Ltd. –

GF Small-Cap 657200 657200 0.66 0 None 0 Other

Growth Hybrid

Securities

Investment

Fund (LOF)

China

Construction

Bank

Corporation –

Southern

435800 435800 0.44 0 None 0 Other

Innovation-

Driven Hybrid

Securities

Investment

Fund

Bank of Beijing

Co. Ltd. –

Penghua

Shuangzhai Jiali 352000 352000 0.35 0 None 0 Other

Bond Securities

Investment

Fund

Domestic

Xu Gang 340000 340000 0.34 0 None 0 natural

person

China

Construction

Bank

Corporation –

GF Growth

Leader One- 314300 314300 0.31 0 None 0 Other

Year Holding

Hybrid

Securities

Investment

Fund

China Southern

Fund Steady

Value-Added

Hybrid Pension 251100 251100 0.25 0 None 0 Other

Product – China

Merchants Bank

Co. Ltd.Overseas

UBS AG 223438 250917 0.25 0 None 0 legal

person

Shareholdings of the Top 10 Shareholders with Unlimited Sales Conditions (Excluding Shares Lent

through Transfer)

Number of Shares Held in Type and Number of Shares

Name of Shareholders Circulation with Unlimited

Type Number

Selling Conditions

94 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

SHENG HUEI

RMB ordinary

INTERNATIONAL 64997250 64997250

shares

CO. LTD.Suzhou Songhuei Enterprise

Management Consulting RMB ordinary

81225008122500

Partnership (Limited shares

Partnership)

Suzhou Shengzhan Enterprise

Management Consulting RMB ordinary

13147501314750

Partnership (Limited shares

Partnership)

Shanghai Pudong Development

Bank Co. Ltd. – GF Small-Cap RMB ordinary

657200657200

Growth Hybrid Securities shares

Investment Fund (LOF)

China Construction Bank

Corporation – Southern RMB ordinary

435800435800

Innovation-Driven Hybrid shares

Securities Investment Fund

Bank of Beijing Co. Ltd. –

RMB ordinary

Penghua Shuangzhai Jiali Bond 352000 352000

shares

Securities Investment Fund

RMB ordinary

Xu Gang 340000 340000

shares

China Construction Bank

Corporation – GF Growth Leader RMB ordinary

314300314300

One-Year Holding Hybrid shares

Securities Investment Fund

China Southern Fund Steady

Value-Added Hybrid Pension RMB ordinary

251100251100

Product – China Merchants Bank shares

Co. Ltd.RMB ordinary

UBS AG 250917 250917

shares

Description of buyback special

accounts among the top 10 None

shareholders

Explanation for the above

shareholders' proxy voting

None

rights entrusted voting rights

and waiver of voting rights

Description of the above

shareholders' affiliation or None

concerted action

Description of preferred

stockholders whose voting rights

None

have been restored and the

number of shares they hold

Note: Among the top 10 ordinary shareholders as of the end of the reporting period the 4th 5th 6th

7th 8th and 9th shareholders were not listed in the Company’s top 200 shareholder register at the

beginning of the reporting period. As the Company could not accurately obtain its shareholding data as of

the beginning of the reporting period (i.e. December 31 2024) their shareholding quantities at the

beginning of the reporting period have been calculated as zero for the purposes of this report.Participation of shareholders holding 5% or more top 10 shareholders and top 10 shareholders with

unlimited sales conditions in lending of shares in the transfer and financing business

95 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

□ Applicable ? N/A

Changes in the top 10 shareholders and top 10 shareholders with unlimited sales conditions in

lending/return of shares in the transfer and financing business compared with the prior period

□ Applicable ? N/A

Number of shares held by the top 10 shareholders with limited selling conditions and the conditions of

limited selling

□ Applicable ? N/A

(III) Strategic Investors or General Corporations Becoming Top 10 Shareholders as a Result of

Placing of New Shares

□ Applicable ? N/A

IV. Controlling Shareholders and Actual Controllers

(I) Controlling Shareholders

1. Legal person

? Applicable □ N/A

Firm Name SHENG HUEI INTERNATIONAL CO. LTD.Person in Charge of the Organization

Liang Jinli

or Legal Representative

Date of Establishment July 15 2003

Main Businesses Equity investment

Equity Interests in Other Domestic

and Overseas Listed Companies Held

None

and Participated in during the

Reporting Period

Other Information None

2. Natural persons

□ Applicable ? N/A

3. Special Explanation for the absence of controlling shareholders of the Company

□ Applicable ? N/A

4. Explanation for the change of controlling shareholders during the reporting period

□ Applicable ? N/A

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

controlling shareholders

? Applicable □ N/A

96 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(II) Situation of actual controllers

1. Legal person

□ Applicable ? N/A

2. Natural persons

□ Applicable ? N/A

3. Special explanation on the absence of actual controllers of the Company

□ Applicable ? N/A

4. Explanation for the change of control of the Company during the reporting period

□ Applicable ? N/A

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

controller

□ Applicable ? N/A

6. Control of the Company by the actual controller through trust or other asset management

methods

□ Applicable ? N/A

(III) Other Information of Controlling Shareholders and Actual Controllers

□ Applicable ? N/A

97 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

V. The Proportion of Shares Pledged by Controlling Shareholders or the Largest Shareholder and

Persons Acting in Concert with Them to the Number of Shares Held by Them Reaches More than

80%

□ Applicable ? N/A

VI. Other Legal Shareholders Holding More than 10% of the Company’s Shares

□ Applicable ? N/A

VII. Explanation for the Restriction on the Reduction of Shareholding

□ Applicable ? N/A

VIII. Specific Implementation of Share Buyback during the Reporting Period

□ Applicable ? N/A

Ⅸ. Preferred Stock

□ Applicable ? N/A

98 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Section VII Relevant Information of Bonds

I. Enterprise Bonds (Including Corporate Bonds) and Debt Financing Instruments for Non-

financial Enterprises

□ Applicable ? N/A

II. Convertible Corporate Bonds

□ Applicable ? N/A

Section XIII Financial Statements

I. Audit Report

? Applicable □ N/A

Audit Report

XYZH/2026SUAA1B0027

Acter Technology Integration Group Co. Ltd.To all shareholders of Acter Technology Integration Group Co. Ltd.I. Audit Opinion

We have audited the financial statements of Acter Technology Integration Group Co. Ltd.(hereinafter referred to as “Acter Group”) which comprise the consolidated balance sheet and the

parent company’s balance sheet as of December 31 2025 the consolidated profit statement and the

parent company’s profit statement the consolidated cash flow statement and the parent company’s

cash flow statement and the consolidated change statement in shareholders’ equities and the parent

company’s change statement in shareholders’ equities for the year ended December 31 2025 and the

notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the

consolidated and parent company financial position of Acter Group as of December 31 2025 and

the consolidated and parent company results of operations and cash flows for the year ended

December 31 2025 in conformity with the Accounting Standards for Business Enterprises (ASBE).II. Basis of Audit Opinion

We have performed our audit in accordance with the provisions of the Standards on Auditing

for Chinese Certified Public Accountants. Our responsibilities under those standards are furtherdescribed in the “Responsibilities of Certified Public Accountants for the Audit of FinancialStatements’ section of the audit report. In accordance with the independence requirements for

financial statement audits of public interest entities as set out in the Independence Standards for

Chinese Certified Public Accountants and the Code of Ethics for Certified Public Accountants of the

99 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

People's Republic of China we are independent from Acter Group and have fulfilled our other

responsibilities with respect to independence and professional ethics. We believe that the audit

evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.III. Key Audit Matters

Key audit matters are matters that in our professional judgment are of most significance to the

audit of the financial statements. These matters are dealt with in the context of the audit of the

financial statements as a whole and the formation of an audit opinion and we do not express an

opinion on these matters separately.

1. Revenue recognition for construction contractsPlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 32 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 35 in the notes to the financial statements.Key Audit Matters Audit Response

Acter Group is mainly engaged The audit procedures related to the evaluation of

in the design and construction of MEP revenue recognition of construction contracts mainly

related to clean room projects and the include the following procedures:

revenue from construction contracts (1) Understanding and evaluating the design and

in FY2025 amounted to RMB operating effectiveness of key internal controls over

2921601326.79 accounting for financial reporting related to revenue recognition for

97.76% of the operating revenue in construction contracts;

the consolidated profit statement. (2) Selecting the construction contracts signed

Acter Group evaluated the terms of between Acter Group and its clients examining the

the contracts and business main terms of the contracts and evaluating whether the

arrangements and concluded that accounting policies of Acter Group for revenue

construction contracts are recognition are in compliance with the requirements of

performance obligations to be the Accounting Standards for Business Enterprises

fulfilled within a certain period of (ASBE);

time and recognized revenue based (3) Selecting construction contracts and examining the

on the progress of performance over basis for the estimated total cost of the contracts and

the period of time in which the the related cost budget information. If there is any

construction contracts are performed. adjustment to the estimated total cost of the contract

The progress of performance is check whether the adjustment to the estimated total

determined based on the proportion of cost has been approved and inquire the management

actual contract costs incurred by Acter about the reasons and basis for the adjustment to

Group to the estimated total contract evaluate whether the estimation made by the

costs.

100 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

1. Revenue recognition for construction contractsPlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 32 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 35 in the notes to the financial statements.Key Audit Matters Audit Response

The management of Acter Group management is reasonable and based on sufficient

is required to make reasonable information;

judgments regarding the progress of (4) Selecting contract costs actually incurred during

completion or performance of the reporting period and checking relevant supporting

construction contracts. During the documents such as procurement contracts purchase

course of execution of the contracts orders material receipts requisition ratios invoices

Acter Group is required to continually etc. to evaluate the authenticity and accuracy of the

evaluate and make adjustments to the actual construction costs;

contract amounts and estimated total (5) Contract costs incurred around the balance sheet

contract costs which involves the date are selected and reconciled to the relevant

exercise of significant management supporting documents including purchase contracts

judgments. purchase orders material receipts requisition ratios

Revenue is one of the key invoices and other relevant supporting documents in

performance indicators of Acter order to evaluate whether the relevant contract costs

Group which gives rise to an inherent are recorded in the appropriate accounting period;

risk that the Company may (6) Selecting construction contracts that have not been

manipulate revenue to achieve completed at the end of the reporting period

specific targets or expectations. reviewing the accuracy of the calculation of the

Meanwhile revenue recognition percentage of completion or progress of performance

under construction contracts involves and recalculating the cumulative revenue recognized

significant management judgments. and the revenue to be recognized in the period and

Accordingly we have identified reconciling them with the financial records;

revenue recognition from (7) Selecting clients and conducting correspondence

construction contracts as a key audit regarding the amount of construction contracts and

matter. receivables signed between Acter Group and them

during the reporting period.

(8) Selecting construction contracts checking the total

costing sheet of the approved contract budget and the

actual implementation of the budget during the

reporting period reviewing the difference between the

total budgeted cost and the actual cost of completed

contracts and evaluating whether there is any

indication of management bias;

101 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

1. Revenue recognition for construction contractsPlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 32 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 35 in the notes to the financial statements.Key Audit Matters Audit Response

(9) Evaluating whether the revenue from construction

contracts has been appropriately disclosed in the

financial statements.

(Continued)

2. Evaluation of bad debt provision for accounts receivablePlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 13 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 4 in the notes to the financial statements.Key Audit Matters Audit Response

As of December 31 2025 the original The audit procedures related to the evaluation of

value of accounts receivable in the the bad debt provision for accounts receivable

consolidated balance sheet of Acter Group included the following procedures:

was RMB 609253252.66 and the (1) Understanding and evaluating the design and

provision for bad debts was RMB operating effectiveness of Acter Group’s key

37024312.48. Based on the expected internal controls over financial reporting related

credit loss rate of accounts receivable the to credit risk control collection and provisioning

management measured the bad debt for bad debts;

provision for accounts receivable at an (2) Evaluating whether the accounting policy for

amount equivalent to the expected credit bad debt provision of Acter Group for the

losses over the life of the accounts reporting period complies with the requirements

receivable. of enterprise accounting standards;

The expected credit loss rate takes (3) Evaluating the appropriateness of the aging of

into account the age of the accounts accounts receivable by selecting items from the

receivable historical payment current accounts receivable aging table reviewing

market conditions and forward-looking relevant supporting documents and taking into

information and this assessment involves account the information on the credit periods

significant management judgment and granted by Acter Group to its clients;

estimates. (4) Understanding the key parameters and

assumptions used in Acter Group’s expected

credit loss model including management’s

judgment on whether to group accounts

receivable based on clients’ credit risk

102 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. Evaluation of bad debt provision for accounts receivablePlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 13 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 4 in the notes to the financial statements.Key Audit Matters Audit Response

characteristics and the historical loss data

included in Acter Group’s expected loss ratio;

(5) Evaluating the appropriateness of Acter

Group’s estimate of expected credit losses by

examining the information used by Acter Group

to make the estimate including examining the

accuracy of the historical loss data and

evaluating whether management has adjusted the

historical loss rate by taking into account the

current market conditions and forward-looking

information in determining the expected credit

loss rate;

(6) Recalculation of bad debt allowance as of

December 31 2025 based on the expected credit

loss model of accounts receivable of Acter

Group.

(Continued)

3. Recognition of contract assetsPlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 17 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 9 in the notes to the financial statements.Key Audit Matters Audit Response

As of December 31 2025 the original The audit procedures related to the evaluation of

value of contract assets in the consolidated contract assets included the following

balance sheet of Acter Group was RMB procedures:

632339549.35 and the provision for bad (1) Understanding and evaluating the design of

debts was RMB 4617143.87. As the internal controls relating to the recognition of

amount of contract assets is material and contract assets and testing whether key internal

has a significant impact on the financial controls have been effectively implemented;

statements we have identified contract (2) Selecting significant projects conducting

assets as a key audit matter. The audit interviews to understand the actual conditions of

procedures relating to the evaluation of the projects combining revenue recognition and

103 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

3. Recognition of contract assetsPlease refer to the accounting policies described in “IV. Significant Accounting Policies andAccounting Estimates” 17 in the notes to the financial statements and “VI. Notes to theFinancial Statements” 9 in the notes to the financial statements.Key Audit Matters Audit Response

contract asset measurement mainly include accounts receivable confirmation procedures and

the following procedures: reviewing the amounts of contract assets by

examining contract amounts and payment terms

bases for estimated total costs and relevant cost

budget documents project progress

confirmations and other documents;

(3) Selecting contract costs incurred around the

balance sheet date and reconciling them to

relevant supporting documents including

procurement contracts purchase orders material

receipts payment proportion schedules invoices

and other relevant supporting documents to

evaluate whether relevant contract costs have

been recorded in the appropriate accounting

period;

(4) Selecting incomplete construction contracts

as of the end of the reporting period reviewing

the accuracy of the calculation of the percentage

of completion or performance progress

recalculating the cumulative recognized revenue

and the revenue to be recognized in the current

period and reconciling such amounts to the

accounting records with no discrepancies

identified;

IV. Other Information

The management of Acter Group (hereinafter referred to as the “management”) is responsible

for the other information. Other information includes the information covered in the 2025 annual

report of Acter Group but excludes the financial statements and our audit report.Our audit opinion on the financial statements does not cover the other information and we do

not express any form of assurance conclusion on the other information.

104 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

In connection with our audit of the financial statements it is our responsibility to read the other

information and in doing so to consider whether the other information is materially inconsistent with

or appears to be materially misstated in relation to the financial statements or our knowledge gained

in the course of the audit.Based on the work we have performed if we determine that other information is materially

misstated we shall report that fact. We have no matters to report in this regard.V. Management’s and Governance’s Responsibility for the Financial Statements

The management is responsible for the preparation of financial statements that present fairly in

accordance with the provisions of the Ind AS and for designing implementing and maintaining

internal control necessary to enable the preparation of financial statements that are free from material

misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing Acter Group's

ability to continue as a going concern disclosing as applicable matters related to going concern and

applying the going concern assumptions unless management plans to liquidate Acter Group

discontinue operations or has no realistic alternative.Governance is responsible for overseeing the financial reporting process of Acter Group.VI. CPA’s Responsibility for the Audit of Financial Statements

Our objective is 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 audit report

containing an audit opinion. Reasonable assurance is a high level of assurance but it does not

guarantee that an audit performed in accordance with auditing standards will always detect a material

misstatement when it exists. Misstatements may result from fraud or error and are generally

considered to be material if it is reasonable to expect that the misstatements individually or in the

aggregate could affect the economic decisions of users of financial statements based on the financial

statements.We use professional judgment and maintain professional skepticism in performing the audit in

accordance with auditing standards. We also perform the following tasks:

(1) Identifying and assessing the risks of material misstatement of the financial statements due

to fraud or error design and perform audit procedures to address those risks and obtain sufficient

appropriate audit evidence as a basis for an audit opinion. The risk of not detecting a material

misstatement due to fraud is higher than the risk of not detecting a material misstatement due to error

because fraud may involve collusion forgery willful omission misrepresentation or overriding

105 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

internal controls.

(2) Obtaining an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances expressing an opinion on the effectiveness of

internal control.

(3) Evaluating the appropriateness of accounting policies selected and the reasonableness of

accounting estimates and related disclosures made by management.

(4) Expressing a conclusion on the appropriateness of management's use of the going concern

assumption. At the same time based on the audit evidence obtained we conclude whether there is a

material uncertainty regarding the matters or circumstances that may cast significant doubt on the

ability of Acter Group to continue as a going concern. If we conclude that a material uncertainty

exists auditing standards require that we draw the attention of users of the financial statements to the

relevant disclosures in our audit report; if the disclosures are not sufficient we shall express an

unqualified opinion. Our conclusions are based on information available at the date of the audit report.However future events or circumstances may cause Acter Group to be unable to continue as a going

concern.

(5) Evaluating the overall presentation structure and content of the financial statements and to

evaluate whether the financial statements present fairly the related party transactions and events.

(6) Obtaining sufficient and appropriate audit evidence about the financial information of the

entities or business activities of Acter Group to express an opinion on the financial statements. We

are responsible for directing supervising and performing the audit of the Group and accept full

responsibility for the audit opinion.We communicate with governance on matters such as the scope timing and significant findings

of the planned audit including internal control deficiencies of concern identified in our audit.We also provide governance with a statement of compliance with ethical requirements related

to independence and communicate with governance all relationships and other matters that could

reasonably be perceived to affect our independence as well as related safeguards.From the matters communicated with governance we determined which matters were most

significant to the audit of the current financial statements and therefore constituted key audit matters.We describe these matters in our audit report except where public disclosure of the matters is

prohibited by law or regulation or in rare circumstances we determine that a matter shall not be

communicated in the audit report if it is reasonably foreseeable that the adverse consequences of

communicating the matter would outweigh the benefits to the public interest.

106 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Chinese Certified Public Accountants:

ShineWing Certified Public Accountants (Project Partner)

LLP

Chinese Certified Public Accountants:

Beijing China March 27 2026

107 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

II. Financial Statements

Consolidated Balance Sheet

December 31 2025

Prepared by: Acter Technology Integration Group Co. Ltd.In RMB Yuan

Item Notes December 31 2025 December 31 2024

Current assets:

Monetary fund 776462102.03 575382706.17

Provision for settlement fund

Funds lent

Trading financial assets 50025000.00

Derivative financial assets

Bills receivable 14984752.50 27398673.04

Accounts receivable 572228940.18 362233577.57

Receivables financing 3581195.46 2499031.97

Prepayments 85047840.36 110647060.26

Bills receivable

Reinsurance receivables

Reserve for reinsurance

contracts receivable

Other receivables 10399844.12 9824375.86

Including: interest receivable

Dividends

receivable

Financial assets purchased

for resale

Inventory 7003896.97 3585610.06

Including: data resource

Contract assets 627722405.48 565904050.40

Assets held for sale

Non-current assets due within

one year

Other current assets 132302932.48 121512159.50

Total current assets 2229733909.58 1829012244.83

Non-current assets:

Loans and advances granted

Debt investments

Other debt investments

Long-term receivables

Long-term equity investment 2421125.42 2342859.23

Investments in other equity

14523380.4612947918.04

instruments

Other non-current financial

assets

Investment properties 1865182.18 531707.64

Fixed assets 59703226.02 56924292.01

Construction in progress - 2577156.79

Productive biological assets

Oil and gas assets

Right-of-use assets 4247874.96 4064612.80

Intangible assets 7473299.32 7693073.36

Including: data resource

Development expenditure

108 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Including: data resource

Goodwill

Long-term unamortized

expenses

Deferred tax assets 18987559.65 12755515.14

Other non-current assets 20995760.63 23661503.85

Total non-current assets 130217408.64 123498638.86

Total assets 2359951318.22 1952510883.69

Current liabilities:

Short-term loan 46106867.32 23866103.44

Borrowing from the central

bank

Funds borrowed

Trading financial liabilities

Derivative financial liabilities

Notes payable

Accounts payable 848078358.80 598788193.06

Receipts in advance

Contract liabilities 123075413.44 88601839.41

Amounts for sale and

buyback of financial assets

Deposit-taking and interbank

deposits

Securities trading agency

Underwriting of securities

Payroll payable 55268012.27 41972766.98

Tax payable 27347923.11 15374255.49

Other payables 24903726.87 24647083.82

Including: interest payable

Dividends payable

Fees and commissions

payable

Sub-insurance payable

Liabilities held for sale

Non-current liabilities due

1894011.342421048.35

within one year

Other current liabilities

Total current liabilities 1126674313.15 795671290.55

Non-current liabilities:

Reserves for insurance

contracts

Long-term borrowings

Bonds payable

Including: preferred stock

Perpetual bond

Lease liabilities 1499843.57 1585929.64

Long-term accounts payable

Long-term payroll payable 84420.86 65569.85

Estimated liabilities 12951146.25 11183840.39

Deferred income

Deferred tax liabilities 29287330.01 17711782.30

Other non-current liabilities

Total non-current liabilities 43822740.69 30547122.18

Total liabilities 1170497053.84 826218412.73

109 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Owners’ equity (or shareholders’ equity)

Paid-in capital (or capital

100000000.00100000000.00

stock)

Other equity instruments

Including: preferred stock

Perpetual bond

Capital reserves 562632775.45 562632775.45

Less: treasury stock

Other comprehensive income -8568151.93 -2502891.67

Special reserves 43710985.63 44175259.38

Earned surplus 53063723.06 45818775.40

Provision for general risks

Undistributed profits 417612476.10 360311280.65

Total owners’ equity (or

shareholders’ equity)

1168451808.311110435199.21

attributable to the parent

company

Minority interest 21002456.07 15857271.75

Total owners’ equity (or

1189454264.381126292470.96

shareholders’ equity)

Total liabilities and

owners’ equity (or 2359951318.22 1952510883.69

shareholders’ equity)

Director of the Company: Liang Person in charge of accounting: Director of the accounting firm:

Jinli Zhu Qihua Xiao Jingxia

110 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Balance Sheet of the Parent Company

December 31 2025

Prepared by: Acter Technology Integration Group Co. Ltd.In RMB Yuan

Item Notes December 31 2025 December 31 2024

Current assets:

Monetary fund 437982801.21 380432761.39

Trading financial assets 50025000.00

Derivative financial assets

Bills receivable 8802413.62 22280273.04

Accounts receivable 371227331.54 253020398.64

Receivables financing 3581195.46 2499031.97

Prepayments 46697305.77 30799227.20

Other receivables 20160353.84 40526268.65

Including: interest receivable

Dividends

receivable

Inventory 2385353.18 3585610.06

Including: data resource

Contract assets 510910460.83 434173370.14

Assets held for sale

Non-current assets due within

one year

Other current assets 53909146.96 47671752.21

Total current assets 1455656362.41 1265013693.30

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investment 129112645.74 129112645.74

Investments in other equity

14523380.4612947918.04

instruments

Other non-current financial

-

assets

Investment properties 1865182.18 531707.64

Fixed assets 56791140.50 54401188.46

Construction in progress 2577156.79

Productive biological assets

Oil and gas assets

Right-of-use assets 1331752.92 1568748.83

Intangible assets 7469614.32 7677609.57

Including: data resource

Development expenditure

Including: data resource

Goodwill

Long-term unamortized

expenses

Deferred tax assets 7580384.43 7129206.99

Other non-current assets 6468622.64 18335783.47

Total non-current assets 225142723.19 234281965.53

Total assets 1680799085.60 1499295658.83

Current liabilities:

Short-term loan

Trading financial liabilities

111 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Derivative financial liabilities

Notes payable

Accounts payable 631023815.49 497199486.43

Receipts in advance

Contract liabilities 83964140.01 30810177.25

Payroll payable 40593168.25 32084942.60

Tax payable 2729410.96 803928.13

Other payables 2041777.74 2008316.98

Including: interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due

686422.751348687.81

within one year

Other current liabilities

Total current liabilities 761038735.20 564255539.20

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: preferred stock

Perpetual bond

Lease liabilities 686261.79 598144.48

Long-term accounts payable

Long-term payroll payable

Estimated liabilities 7852747.35 6745749.68

Deferred income

Deferred tax liabilities 199762.99 235312.43

Other non-current liabilities

Total non-current liabilities 8738772.13 7579206.59

Total liabilities 769777507.33 571834745.79

Owners’ equity (or shareholders’ equity)

Paid-in capital (or capital

100000000.00100000000.00

stock)

Other equity instruments -

Including: preferred stock

Perpetual bond

Capital reserves 564223330.95 564223330.95

Less: treasury stock

Other comprehensive income -476610.48 -2052072.90

Special reserves 35946862.37 36411136.12

Earned surplus 53063723.06 45818775.40

Undistributed profits 158264272.37 183059743.47

Total owners’ equity (or

911021578.27927460913.04

shareholders’ equity)

Total liabilities and

owners’ equity (or 1680799085.60 1499295658.83

shareholders’ equity)

Director of the Company: Liang Person in charge of accounting: Director of the accounting firm:

Jinli Zhu Qihua Xiao Jingxia

112 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Consolidated Income Statement

January-December 2025

In RMB Yuan

Item Notes 2025 2024

I. Total Operating Revenue 2988504733.21 2007697317.98

Including: operating revenue 2988504733.21 2007697317.98

Interest income -

Earned premiums -

Fee and commission income -

II. Total Operating Costs 2774005403.17 1850375680.04

Including: operating cost 2682042853.54 1755007424.22

Interest expenses

Handling fee and commission

expenses

Surrender premiums

Net claims expenses

Net withdrawal of insurance

liability reserve

Policy dividend expense

Reinsurance expenses

Taxes and surcharges 4861192.07 3455150.25

Sales expenses 5301670.67 6781770.06

Administrative expenses 66142614.00 62519012.85

R&D expenses 31250454.73 33529705.96

Finance costs -15593381.84 -10917383.30

Including: Interest expense 3308843.65 1902046.69

Interest income 9815274.04 9191452.30

Add: other gains 227523.20 433289.18

Investment income (loss

958818.27814005.65

denoted by "-")

Including: Investment income

-

from associates and joint

Gain on derecognition of

financial assets measured at amortized

cost

Foreign exchange gains (loss

-

denoted by "-")

Gain on net open hedges (loss

-

denoted by "-")

Gain on change in fair value

-25000.0025000.00

(loss denoted by "-")

Credit impairment loss (loss

-11813453.192207755.91

denoted by "-")

Impairment loss on assets (loss

5508369.40-6812588.09

denoted by "-")

Gain on disposal of assets (loss

449638.4798152.04

denoted by "-")

III. Operating Profit (loss denoted by

209805226.19154087252.63

"-")

Add: non-operating revenue 602379.74 37943.24

Less: non-operating expenses 1115103.39 365007.19

IV. Total Profit (total loss denoted by

209292502.54153760188.68

"-")

Less: income tax expense 49281751.34 36650409.77

V. Net Profit (net loss denoted by "-") 160010751.20 117109778.91

113 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(I) Classification by continuity of operations

1. Net profit from continuing

160010751.20117109778.91

operations (net loss denoted by "-")

2. Net profit from discontinued

operations (net loss denoted by "-")

(II) Classification by ownership attribution

1. Net profit attributable to

shareholders of the parent company 154546143.11 114402314.36

(net loss denoted by "-")

2. Gains and losses of minority

5464608.092707464.55

shareholders (net loss denoted by "-")

VI. Other Comprehensive Income Net

-6384684.03-5780309.56

of Tax

(I) other comprehensive income

attributable to owners of the parent -6065260.26 -5821039.28

company net of taxes

1. Other comprehensive income

that cannot be reclassified to profit or 1579308.36 -2064563.03

loss

(1) Remeasurement of changes in

3845.94-12490.13

defined benefit plans

(2) Other comprehensive income

that cannot be reclassified to profit or

loss under the equity method

(3) Changes in fair value of

investments in other equity 1575462.42 -2052072.90

instruments

(4) Changes in fair value of own

credit risk

2. Other comprehensive income

-7644568.62-3756476.25

to be reclassified to profit or loss

(1) Other comprehensive income

available for reclassification to profit

or loss under the equity method

(2) Changes in fair value of other

debt instruments

(3) Reclassification of financial

assets to other comprehensive income

(4) Provision for credit impairment

of other debt investments

(5) Cash flow hedge reserve

(6) Translation difference of foreign

-7644568.62-3756476.25

currency financial statements

(7) Others

(II) Other comprehensive income

attributable to minority shareholders -319423.77 40729.72

net of taxes

VII. Total Comprehensive Income 153626067.17 111329469.35

(I) Total comprehensive income

attributable to owners of the parent 148480882.85 108581275.08

company

(II) Total comprehensive income

5145184.322748194.27

attributable to minority shareholders

VIII. Earnings per Share:

(I) Basic earnings per share (RMB

1.551.14

Yuan/share)

114 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(II) Diluted earnings per share

1.551.14

(RMB Yuan/share)

In the event of a business combination under the same control during the current period the net profit

realized by the party to be merged before the merger was RMB 0. The net profit realized by the party to

be merged in the prior period was RMB 0.Director of the Company: Liang Person in charge of accounting: Director of the accounting firm:

Jinli Zhu Qihua Xiao Jingxia

115 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Income Statement of the Parent Company

January-December 2025

In RMB Yuan

Item Notes 2025 2024

I. Operating Revenue 1625096104.95 1262326181.62

Less: operating cost 1491445839.93 1129673762.04

Taxes and surcharges 4377822.95 3100212.09

Sales expenses 3019677.65 3028310.28

Administrative expenses 38312129.93 38586761.64

R&D expenses 31250454.73 33529705.96

Finance costs -4473484.24 -6843699.37

Including: interest expense 92660.25 122518.97

Interest income 5669855.88 6782505.00

Add: other gains 215589.26 366259.15

Investment income (loss

15921643.199787838.84

denoted by "-")

Including: Investment income

-

from associates and joint

Gain on derecognition of

financial assets measured at amortized

cost

Gain on net open hedges (loss

-

denoted by "-")

Gain on change in fair value

-25000.0025000.00

(loss denoted by "-")

Credit impairment loss (loss

-3259901.746354192.97

denoted by "-")

Impairment loss on assets (loss

4538508.63-5578254.36

denoted by "-")

Gain on disposal of assets (loss

448514.1849525.62

denoted by "-")

II. Operating Profit (loss denoted by "-

79003017.5272255691.20

")

Add: non-operating revenue 472863.43 7993.84

Less: non-operating expenses 510410.78 349457.90

III. Total Profit (total loss denoted by

78965470.1771914227.14

"-")

Less: income tax expense 6515993.61 8739486.94

IV. Net Profit (net loss denoted by "-") 72449476.56 63174740.20

(I) Net profit from continuing

72449476.5663174740.20

operations (net loss denoted by "-")

(II) Net profit from discontinued

operations (net loss denoted by "-")

V. Other Comprehensive Income Net

1575462.42-2052072.90

of Tax

(I) Other comprehensive income

that cannot be reclassified to profit or 1575462.42 -2052072.90

loss

1. Remeasurement of changes in

defined benefit plans

2. Other comprehensive income

that cannot be reclassified to profit or

loss under the equity method

3. Changes in fair value of

1575462.42-2052072.90

investments in other equity

116 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

4. Change in fair value of own

credit risk

(II) Other comprehensive income to

be reclassified to profit or loss

1. Other comprehensive income

that can be reclassified to profit or loss

under the equity method

2. Changes in fair value of other

debt investments

3. Reclassification of financial

assets to other comprehensive

4. Provision for credit impairment

of other debt investments

5. Cash flow hedge reserve

6. Translation differences on

foreign currency financial statements

7. Others

VI. Total Comprehensive Income 74024938.98 61122667.30

VII. Earnings per Share:

(I) Basic earnings per share

(RMB Yuan/share)

(II) Diluted earnings per share

(RMB Yuan/share)

Director of the Company: Liang Person in charge of accounting: Director of the accounting firm:

Jinli Zhu Qihua Xiao Jingxia

117 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Consolidated Cash Flow Statement

January-December 2025

In RMB Yuan

Item Notes 2025 2024

I. Cash Flows from Operating Activities:

Cash received from sales of

2400715260.522066354453.31

goods and rendering of services

Net increase in client deposits

and deposits from other banks

Net increase in borrowings

from the central bank

Net increase in borrowings

from other financial institutions

Cash received from premiums

for primary insurance contracts

Net cash received from

reinsurance business

Net increase in policyholders'

deposits and investment funds

Cash received from interest

fees and commissions

Net increase in funds received

Net increase in buyback

transactions

Net cash received from

securities trading

Tax rebates received 33753434.73 24266329.55

Cash received from other

17183243.1528677150.09

operating activities

Subtotal of cash inflow from

2451651938.402119297932.95

operating activities

Cash paid for goods and

2035956348.471889084764.24

services

Net increase in loans and

advances to clients

Net increase in deposits with

central banks and interbanks

Cash paid for original insurance

contract claims

Net increase in funds

withdrawn

Cash paid for interest fees and

commissions

Cash paid for policy dividends

Cash paid to and for employees 137749554.83 139290057.43

Taxes paid 94579287.97 52768919.68

Cash paid for other operating

39201586.6041862341.40

activities

Subtotal of cash outflow

2307486777.872123006082.75

from operating activities

Net cash flows from

144165160.53-3708149.80

operating activities

II. Cash Flows from Investing Activities:

Cash received from recovery of

305000000.00272000000.00

investments

118 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Cash received from investment

1867803.53908884.79

income

Net cash received from the

disposal of fixed assets intangible 371679.94 185947.08

assets and other long-term assets

Net cash received from the

disposal of subsidiaries and other

operating units

Cash received from other

investing activities

Subtotal of cash inflow from

307239483.47273094831.87

investing activities

Cash paid for acquisition and

construction of fixed assets

7768008.4114410135.46

intangible assets and other long-

term assets

Cash paid for investment 255000000.00 336999999.94

Net increase in pledged loans

Net cash paid for acquisition of

subsidiaries and other business

units

Cash paid for other investing

activities

Subtotal of cash outflow

262768008.41351410135.40

from investing activities

Net cash flows from

44471475.06-78315303.53

investing activities

III. Cash Flows from Financing Activities:

Cash received from investment

5401529.09

absorption

Including: Cash received by

subsidiaries from minority 5401529.09

investments

Cash received from loans 158632846.46 23530223.00

Cash received from other

49923087.2653586215.59

financing activities

Subtotal of cash inflow from

208555933.7282517967.68

financing activities

Cash paid for debt repayment 135602649.39 363860.00

Cash paid for distribution of

dividends profits or repayment of 91761152.65 80284876.55

interest

Including: Dividends and

profits paid to minority

shareholders by subsidiaries

Cash paid for other financing

59056983.1659042712.16

activities

Subtotal of cash outflow

286420785.20139691448.71

from financing activities

Net cash flows from fund-

-77864851.48-57173481.03

raising activities

IV. Impact of Exchange Rate

Changes on Cash and Cash 1457205.85 4096193.44

Equivalents

V. Net Increase in Cash and

112228989.96-135100740.92

Cash Equivalents

119 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Add: cash and cash equivalents

574895982.11709996723.03

balance at beginning of period

VI. Cash and Cash Equivalents

687124972.07574895982.11

at the End of the Period

Director of the Company: Liang Person in charge of accounting: Director of the accounting firm:

Jinli Zhu Qihua Xiao Jingxia

120 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Cash flow Statement of the Parent Company

January-December 2025

In RMB Yuan

Item Notes 2025 2024

I. Cash Flows from Operating Activities:

Cash received from sales of

1088937319.641314384391.28

goods and rendering of services

Tax rebates received 2036955.40 20949749.59

Cash received from other

8789511.3514137521.18

operating activities

Subtotal of cash inflow from

1099763786.391349471662.05

operating activities

Cash paid for goods and

966989560.801171316565.82

services

Cash paid to and for employees 89419240.56 98868327.73

Taxes paid 32525601.48 22869036.91

Cash paid for other operating

38586746.7435203084.77

activities

Subtotal of cash outflow

1127521149.581328257015.23

from operating activities

Net cash flows from operating

-27757363.1921214646.82

activities

II. Cash Flows from Investing Activities:

Cash received from recovery of

305881433.21250000000.00

investments

Cash received from investment

15093095.979823263.66

income

Net cash received from the

disposal of fixed assets intangible 355013.27 106847.09

assets and other long-term assets

Net cash received from the

disposal of subsidiaries and other

operating units

Cash received from other

investing activities

Subtotal of cash inflow from

321329542.45259930110.75

investing activities

Cash paid for acquisition and

construction of fixed assets

6736619.3213075164.41

intangible assets and other long-

term assets

Cash paid for investment 255000000.00 314999999.94

Net cash paid for acquisition of

subsidiaries and other business 40627356.41

units

Cash paid for other investing

activities

Subtotal of cash outflow

261736619.32368702520.76

from investing activities

Net cash flows from

59592923.13-108772410.01

investing activities

III. Cash Flows from Financing Activities:

Cash received from investment

absorption

Cash received from loans

121 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Cash received from other

28482750.6814808512.29

financing activities

Subtotal of cash inflow from

28482750.6814808512.29

financing activities

Cash paid for debt repayment

Cash paid for distribution of

dividends profits or repayment of 90000000.00 80000000.00

interest

Cash paid for other financing

780942.9029250223.75

activities

Subtotal of cash outflow

90780942.90109250223.75

from financing activities

Net cash flows from fund-

-62298192.22-94441711.46

raising activities

IV. Impact of Exchange Rate

Changes on Cash and Cash -861918.79 310148.42

Equivalents

V. Net Increase in Cash and

-31324551.07-181689326.23

Cash Equivalents

Add: cash and cash equivalents

380408402.32562097728.55

balance at beginning of period

VI. Cash and Cash Equivalents

349083851.25380408402.32

at the End of the Period

Director of the Company: Person in charge of accounting: Director of the accounting firm:

Liang Jinli Zhu Qihua Xiao Jingxia

122 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Consolidated Statement of Changes in Owners’ Equity

January-December 2025

In RMB Yuan

2025

Owner’s Equities Attributable to Parent Company

Item Paid-in Other Equity Instruments Other

Total of

Provisi Minority

Capital Capital Less: Compr Special Undistr Owner’s

Earned on for Interest Equities

(or Preferre Perpetu Other Reserv Treasur ehensiv Reserv ibuted Others Subtotal Surplus Genera

Capital d Stock al Bond s es y Stock e es Profits l Risks

Stock) Income

I. Closing Balance of 10000 56263 - 36031

44175458181110431585727112629247

the Prior Year 0000.0 2775.4 25028 1280.6

259.38775.405199.211.750.96

0591.675

Add: change in

accounting policy

Correction of

prior-period errors

Others

II. Opening Balance 10000 56263 - 36031

44175458181110431585727112629247

for the Year 0000.0 2775.4 25028 1280.6

259.38775.405199.211.750.96

0591.675

III.Increases/Decreases - -

7244957301580166514518463161793.4

in the Period 60652 46427

47.66195.4509.10.322

(decrease denoted by 60.26 3.75

"-")

(I) Total - 15454

1484805145184153626067.

comprehensive 60652 6143.1

882.85.3217

income 60.26 1

(II) Owners' inputs

and capital reduction

1. Ordinary shares

invested by owners

2. Contribution of

capital by holders of

other equity

instruments

123 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

3. Share-based

payments recognized

in owners' equity

4. Others

(III) Profit - - -

72449

distribution 97244 900000 90000000.0

47.66

947.6600.000

1. Withdrawal of -

72449

surplus reserves 72449 - -

47.66

47.66

2. Provision for

--

general risks

3. Distribution to - - -

owners (or 90000 900000 90000000.0

shareholders) 000.00 00.00 0

4. Others - -

(IV) Internal transfer

of ownership interest

1. Capitalization of

capital surplus to

capital (or capital

stock)

2. Transfer of surplus

reserves to capital (or

capital stock)

3. Surplus reserves to

cover losses

4. Amount of

changes in defined

benefit plan carried

forward to retained

earnings

5. Other

comprehensive

income Transfer of

other comprehensive

income to retained

earnings

6. Others

124 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(V) Special reserves - -

46427464273.-464273.75

3.7575

1. Amount withdrawn

--

the period

2. Amount used in 46427 464273.

464273.75

the period 3.75 75

(VI) Others

IV. Closing Balance 10000 56263 - 41761

43710530631168452100245118945426

of the Period 0000.0 2775.4 85681 2476.1

985.63723.061808.316.074.38

0551.930

125 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2024

Owner’s Equities Attributable to Parent Company

Paid-in Other Equity Instruments Total of Item Other Provisi Minority

Capital Capital Less: Special Undistri Owner’s

compre Earned on for Interest

(or Reserv Treasur Reserv buted Others Subtotal Equities Preferre Perpetu Other hensive Surplus Genera

Capital d Stock al Bond s es y Stock es Profits Income l Risks

Stock)

I. Closing Balance of 10000 56263 10822

33181445783950133222677075481089965

the Prior Year 0000.0 2775.4 57514.

47.61849.52301.38440.31.39062.66

0527

Add: change in

accounting policy

Correction of

prior-period errors

Others

II. Opening Balance 10000 56263 10822

33181445783950133222677075481089965

for the Year 0000.0 2775.4 57514.

47.61849.52301.38440.31.39062.66

0527

III.Increases/Decreases - -

6317428084828177814972336327408

in the Period 58210 40359

74.0240.34684.94.36.30

(decrease denoted by 39.28 0.14

"-")

(I) Total -

114402108581274819411132946

Comprehensive 58210

314.36275.08.279.35

Income 39.28

(II) Owners' inputs 5401529 5401529.and capital reduction .09 09

1. Ordinary shares 5401529 5401529.

invested by owners .09 09

2. Contribution of

capital by holders of

other equity

instruments

3. Share-based

payments recognized

in owners' equity

4. Others

126 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(III) Profit - - -

63174

distribution 863174 80000 80000000

74.02

74.02000.00.00

1. Withdrawal of -

63174

surplus reserves 631747

74.02

4.02

2. Provision for

general risks

3. Distribution to - - -

owners (or 800000 80000 80000000

shareholders) 00.00 000.00 .00

4. Others -

(IV) Internal transfer

------

of ownership interest

1. Capitalization of

capital surplus to

-

capital (or capital

stock)

2. Transfer of surplus

reserves to capital (or -

capital stock)

3. Surplus reserves to

-

cover losses

4. Amount of changes

in defined benefit

-

plan carried forward

to retained earnings

5. Other

comprehensive

income Transfer of

-

other comprehensive

income to retained

earnings

6. Others -

(V) Special reserves - -

-

40359403590

403590.14

0.14.14

1. Amount withdrawn

the period - -

2. Amount used in the 40359 403590

403590.14

period 0.14 .14

127 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(VI) Others - -

IV. Closing Balance 10000 56263 - 11104

441754581836031115857271126292

of the Period 0000.0 2775.4 25028 35199.

259.38775.40280.651.75470.96

0591.6721

Director of the Company: Liang Jinli Person in charge of accounting: Zhu Qihua Director of the accounting firm: Xiao

Jingxia

128 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Statement of Changes in Equity of the Parent Company

January-December 2025

In RMB Yuan

2025

Paid-in Other Equity Instruments Other Less: Total of

Item Capital (or Capital comprehen Special Earned Undistribu

Preferred Perpetual Treasury Owner’s Capital Others Reserves sive Reserves Surplus ted Profits Stock Equities

Stock) Stock Bond Income

I. Closing Balance of the Prior -

1000000056422333364111364581877183059792746091

Year 2052072.

0.000.95.125.4043.473.04

90

Add: change in accounting

policy

Correction of prior-

period errors

Others

II. Opening Balance for the -

1000000056422333364111364581877183059792746091

Year 2052072.

0.000.95.125.4043.473.04

90

III. Increases/Decreases in the - -

1575462.-7244947.

Period (decrease denoted by " 2479547 16439334

42464273.7566

-")1.10.77

(I) Total comprehensive 1575462. 7244947 74024938

income 42 6.56 .98

(II) Owners' inputs and capital

reduction

1. Ordinary shares invested by

owners

2. Contribution of capital by

holders of other equity

instruments

3. Share-based payments

recognized in owners' equity

4. Others

(III) Profit distribution - -

7244947.

972449490000000

66

7.66.00

1. Withdrawal of surplus -

7244947.

reserves 7244947. -

66

66

129 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. Distribution to owners (or - -

shareholders) 9000000 90000000

0.00.00

3. Others

(IV) Internal transfer of

ownership interest

1. Capitalization of capital

surplus to capital (or capital

stock)

2. Transfer of surplus reserves

to capital (or capital stock)

3. Surplus reserves to cover

losses

4. Amount of changes in

defined benefit plan carried

forward to retained earnings

5. Other comprehensive

income Transfer of other

comprehensive income to

retained earnings

6. Others

--

(V) Special reserves

464273.75464273.75

1. Amount withdrawn the

-

period

2. Amount used in the period 464273.75 464273.75

(VI) Others

IV. Closing Balance of the -

1000000056422333359468625306372158264291102157

Period 476610.4

0.000.95.373.0672.378.27

8

130 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2024

Paid-in Other Equity Instruments Other Less: Total of

Item Capital (or Capital Comprehe Special Earned Undistribu

Preferred Perpetual Treasury Owner’s Capital Others Reserves nsive Reserves Surplus ted Profits Stock Equities

Stock) Stock Bond Income

I. Closing Balance of the 10000000 56422333 36814726 3950130 2062024 94674183

Prior Year 0.00 0.95 .26 1.38 77.29 5.88

Add: change in accounting

policy

Correction of prior-

period errors

Others

II. Opening Balance for the 10000000 56422333 36814726 3950130 2062024 94674183

Year 0.00 0.95 .26 1.38 77.29 5.88

III. Increases/Decreases in the - - -

-6317474.period (decrease denoted by " 2052072. 2314273 19280922

403590.1402

-")903.82.84

(I) Total comprehensive -

631747461122667

income 2052072.

0.20.30

90

(II) Owners' inputs and

capital reduction

1. Ordinary shares invested

by owners

2. Contribution of capital by

holders of other equity

instruments

3. Share-based payments

recognized in owners' equity

4. Others

(III) Profit distribution - -

6317474.

863174780000000

02

4.02.00

1. Withdrawal of surplus -

6317474.

reserves 6317474. -

02

02

2. Distribution to owners (or - -

shareholders) 8000000 80000000

0.00.00

3. Others -

131 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(IV) Internal transfer of

---

ownership interest

1. Capitalization of capital

surplus to capital (or capital

stock)

2. Transfer of surplus

reserves to capital (or capital

stock)

3. Surplus reserves to cover

losses

4. Amount of changes in

defined benefit plan carried

forward to retained earnings

5. Other comprehensive

income Transfer of other

comprehensive income to

retained earnings

6. Others

--

(V) Special reserves

403590.14403590.14

1. Amount withdrawn the

-

period

2. Amount used in the period 403590.14 403590.14

(VI) Others

IV. Closing Balance of the -

1000000056422333364111364581877183059792746091

Period 2052072.

0.000.95.125.4043.473.04

90

Director of the Company: Liang Jinli Person in charge of accounting: Zhu Qihua Director of the accounting firm: Xiao

Jingxia

132 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

III. Basic Information of the Company

1. Company profile

? Applicable □ N/A

Acter Technology Integration Group Co. Ltd. (the “Company”) formerly known as Sheng Huei

(Suzhou) Engineering Co. Ltd. (“Sheng Huei Limited”) was incorporated on September 3 2003 in

Suzhou City Jiangsu Province. At the time of its establishment the Company's initial registered capital

was USD 450000. After a series of capital increases as of December 31 2017 the registered capital of

Sheng Huei Limited was USD 7980000 and the sole shareholder of Sheng Huei Limited was SHENG

HUEI INTERNATIONAL CO. Ltd.In January 2018 Sheng Huei International increased the capital of Sheng Huei Limited and the

registered capital was increased from USD 7980000 to USD 9030000. In May 2018 Acter Group

entered into an equity transfer agreement with Suzhou Songhuei Enterprise Management Consulting

Partnership (Limited Partnership) (“Suzhou Songhuei”) and Suzhou Shengzhan Management Consulting

Partnership (Limited Partnership) (“Suzhou Shengzhan”). Pursuant to the agreement Acter Group agreed

to transfer the corresponding registered capital of Sheng Huei Limited of USD 977918 and USD 226430

held by Sheng Huei Limited to Suzhou Songhuei and Suzhou Shengzhan at RMB 14282400.00 and RMB

3306600.00 respectively. After the completion of the above transactions the registered capital of Sheng

Huei Limited is USD 9030000 and the equity structure is as follows:

Amount of Investment Shareholding

No. Shareholder

(USD 10000) Ratio (%)

1 Sheng Huei International 782.5679 86.6630

2 Suzhou Songhuei 97.7918 10.8300

3 Suzhou Shengzhan 22.6403 2.5070

Total 903.0000 100.0000

In June 2019 all investors of Sheng Huei Limited entered into a promoter agreement agreeing tochange the whole of Sheng Huei Limited into a joint stock limited company and rename it as “ActerTechnology Integration Group Co. Ltd.”. All the investors converted the net assets of Sheng Huei Limited

as of April 30 2019 into 60000000.00 shares with a par value of RMB 1 each. The shareholding structure

after the overall change is as follows:

Capital Stock (RMB Shareholding

No. Shareholder

Yuan) Ratio (%)

1 Sheng Huei International 51997800.00 86.6630

2 Suzhou Songhuei 6498000.00 10.8300

3 Suzhou Shengzhan 1504200.00 2.5070

Total 60000000.00 100.0000

On August 23 2022 the Company applied for the IPO of A shares of not more than 20000000.00

shares by CSRC (Official Reply to the Approval of the IPO of Acter Technology Integration Group Co.Ltd.) (Z.J.X.K. No. [2022] 1915) which was approved by the CSRC. As of December 31 2022 the

Company had received the monetary funds obtained through the public offering of A shares of which the

paid-in capital (share capital) amounted to RMB 20 million (SAY RMB TWENTY MILLION Only).Capital sTock (RMB Shareholding

No. Shareholder

Yuan) Ratio (%)

1 Sheng Huei International 51997800.00 64.9973

RMB ordinary shares (A shares)

220000000.0025.0000

shareholders

3 Suzhou Songhuei 6498000.00 8.1225

4 Suzhou Shengzhan 1504200.00 1.8803

133 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Capital sTock (RMB Shareholding

No. Shareholder

Yuan) Ratio (%)

Total 80000000.00 100.0000

Pursuant to the resolution of the 2022 annual shareholders’ meeting held on April 28 2023 the

Company paid a cash dividend of RMB 0.8125 per share (tax-inclusive) to all shareholders on the basis

of the total share capital of 80000000.00 shares as of June 14 2023 and transferred 0.25 shares to all

shareholders by way of capital reserve to increase the share capital by a total of 20000000.00 shares with

par value of RMB 1 per share increasing the share capital by RMB 20000000.00 in total.As of December 31 2025 the shareholding structure after the overall change was as follows:

Capital stock Shareholding

No. Shareholder

(RMB Yuan) Ratio (%)

1 Sheng Huei International 64997250.00 65.0000

RMB ordinary shares (A shares)

225565500.0025.5652

shareholders

3 Suzhou Songhuei 8122500.00 8.1200

4 Suzhou Shengzhan 1314750.00 1.3148

Total 100000000.00 100.0000

The Company's parent company is Sheng Huei International and its ultimate holding company is

Acter Co. Ltd. (Acter (Taiwan)). The Company’s business term is from September 3 2003 to an indefinite

period.Scope of Business: Engaged in system integration services; design and related equipment installation

of mechanical and electrical systems HVAC systems aseptic systems and building equipment

management systems; construction of air purification engineering fire engineering building construction

engineering interior and exterior decoration engineering municipal public works pipeline engineering

and provision of related technical consultation and after-sales service; R&D and manufacturing of

industrial switch power converters and components; wholesale import and export of similar products

produced by the company and building materials dust-free aseptic purification equipment and related

equipment and assembly parts (for products involving quotas and license management applications shall

be handled according to relevant national regulations). Category III medical device business; Category II

medical device sales; manufacturing of metal structures; manufacturing of building decoration plumbing

parts and other metal products for construction (the project shall be carried out only after approval by

relevant authorities in accordance with laws).Licensed Projects: Construction engineering design; intelligent building system design (the specific

business projects shall be subject to the approval results and only after approval by relevant authorities in

accordance with laws can the business activities be conducted).The financial statements were approved by the Board of Directors of the Group on March 27 2026

by resolution.IV. Basis of Preparation of the Financial Statements

1. Basis of preparation

The financial statements of the Company are prepared in accordance with the Accounting Standards

for Business Enterprises released by the Ministry of Finance (hereinafter collectively referred to as the

"ASBE") and its application guidance interpretations and other relevant regulations as well as the

disclosure requirements of the China Securities Regulatory Commission's (hereinafter collectively

referred to as the ") General Provisions of Financial Reports - No. 15 - Rules on the Information Disclosure

of Companies Issuing Securities (revised in 2023) based on actual transactions and events.

134 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2. Going concern

? Applicable □ N/A

The Group evaluated its ability to continue as a going concern for the twelve months ended December

31 2025 and found no matters or circumstances that cast significant doubt on its ability to continue as a

going concern. The financial statements are presented on a going concern basis.V. Significant Accounting Policies and Accounting Estimates

Specific accounting policies and accounting estimates

? Applicable □ N/A

The preparation of financial statements requires the management of the Group to make estimates and

assumptions that affect the application of accounting policies and the amounts of assets liabilities income

and expenses. Actual results may differ from these estimates. The Group's management continually

evaluates its judgment regarding critical assumptions and uncertainties involved in making estimates. The

effects of changes in accounting estimates are recognized in the period in which the estimate is changed

and in future periods.The following accounting estimates and critical assumptions have a significant risk of causing a

material adjustment to the book value of assets and liabilities in future periods.

(1) Revenue recognition

Under the new revenue standard the Group recognizes revenue from construction contracts over a

period of time. The recognition of revenue and profit from construction depends on the Group's estimation

of the outcome of the contract and the progress of performance. If the actual amount of total revenues and

total costs incurred is higher or lower than management's estimates it will affect the amount of revenue

and profit recognized by the Group in future periods;

(2) Impairment of receivables and contract assets

The Group used the expected credit loss model to assess the impairment of financial instruments

since January 1 2019. The application of the expected credit loss model requires significant judgments

and estimates that take into account all reasonable and supportable information including forward-looking

information. In making such judgments and estimates the Group extrapolates the expected changes in the

credit risk of debtors based on historical repayment data and factors such as economic policies

macroeconomic indicators and industry risks. Therefore the amount of provision for impairment of

receivables and contract assets may change in accordance with the changes in the above estimates and the

adjustments to the provision for impairment of receivables and contract assets will affect the profit or loss

in the period in which the estimates are changed.

(3) Accounting estimates for provision for impairment of fixed assets and investment properties

The Group performs impairment tests on fixed assets such as buildings machinery and equipment

and investment properties at the balance sheet date if there is any indication of impairment. The

recoverable amount of property plant and equipment and investment properties is the higher of the present

value of estimated future cash flows and the fair value of the assets less costs of disposal which requires

the use of accounting estimates.If management revises the gross margins used in the calculation of future cash flows for asset groups

and portfolios of asset groups and the revised gross margins are lower than the currently used gross

margins the Group is required to increase the provision for impairment for property plant and equipment

and investment properties.If the pre-tax discount rate used for discounting cash flows is revised by the management and the

revised pre-tax discount rate is higher than the current rate the Group is required to make additional

provision for impairment of fixed assets and investment properties.If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's

estimate the Group cannot reverse the provision for impairment of fixed assets and investment properties.

(4) Useful lives of fixed assets and investment properties

The Group reviews the estimated useful lives of fixed assets and investment properties at least

annually at the end of each year. The estimated useful lives are determined by the management based on

historical experience of similar assets reference to estimates generally used in the industry and expected

technological updates. Depreciation and amortization expenses for future periods are adjusted accordingly

when there is a significant change in the previous estimates.

(5) Income tax expense

135 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

The Group recognizes current and deferred taxes in profit or loss except for those arising from

business combinations and transactions or events directly attributable to owners' equity (including other

comprehensive income).Current income tax is the expected income tax payable calculated on the basis of the taxable income

for the year at the rates specified in the tax law plus adjustments to prior years' income tax payable. At

the balance sheet date if the Group has a legal right to settle on a net basis and intends to settle on a net

basis or to acquire assets and settle liabilities simultaneously current income tax assets and current

income tax liabilities are shown net of tax. Deferred tax assets and deferred tax liabilities are recognized

for deductible temporary differences and taxable temporary differences respectively. A temporary

difference is the difference between the book value of an asset or liability and its tax basis including

deductible losses and tax credits that can be carried forward to future years. Deferred tax assets are

recognized to the extent that it is probable that taxable income will be available against which the

deductible temporary differences can be utilized. Deferred tax is not recognized for temporary differences

arising from transactions that are not part of a business combination and that at the time of the transaction

affect neither the accounting profit nor taxable income (or deductible losses). At the balance sheet date

the Group measures the book value of deferred tax assets and liabilities based on the expected manner of

recovering or settling those assets and liabilities in accordance with enacted tax laws at the tax rates that

are expected to apply to the period when the assets are recovered or the liabilities are settled. The book

value of deferred tax assets is reviewed at the balance sheet date. The book value of deferred tax assets is

written down to the extent that it is more likely than not that sufficient taxable income will not be available

to allow the benefit of the deferred tax assets to be realized in future periods. When it is more likely than

not that sufficient taxable income will be available to offset the deferred tax assets the amount written

down is reversed.On the balance sheet date deferred tax assets and liabilities are netted out when the following

conditions are met:

A taxable entity has a legal right to settle current income tax assets and current income tax liabilities

on a net basis;

Deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority

on the same taxable entity or on different taxable entities provided that in each future period in which

significant deferred tax assets and liabilities reverse the taxable entity intends to settle the current tax

assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

1. Statement of Compliance with ASBE

The financial statements prepared by the Company comply with the requirements of the ASBE and give

a true and complete account of the Company’s financial position operating results changes in

shareholders’ equity cash flows and other relevant information.

2. Accounting period

The Company’s fiscal year begins on January 1 and ends on December 31 of the Gregorian calendar.

3. Business cycle

? Applicable □ N/A

The Group uses 12 months as the business cycle and the criteria for classifying the liquidity of assets and

liabilities.

4. Recording currency

The Group and its Chinese subsidiaries use Renminbi ("RMB") as the local recording currency; Acter

International Limited ("Acter (Hong Kong)") uses United States dollars ("USD") as the local recording

currency; Acter Technology Singapore Pte. Ltd ("Acter (Singapore)") is denominated in Singapore dollars

(“SGD”); PT Acter Technology Indonesia ("Acter (Indonesia)") and PT Acter Integration Technology

Indonesia ("Indonesia Joint Venture") are denominated in Indonesian Rupiah (“IDR”); Acter Technology

Malaysia Sdn. Bhd ("Acter (Malaysia)") is denominated in MYR and Sheng Huei Engineering Technology

Company Limited ("Sheng Huei (Vietnam)") is denominated in VND; Acter Technology Company

Limited ("Acter (Thailand)") uses THB as its local currency. The Group and its subsidiaries have selected

136 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

the local recording currencies based on the currency of valuation and settlement of major business receipts

and expenditures. Some subsidiaries of the Group have adopted currencies other than the Group's local

currency as their local currency and the foreign currency financial statements of these subsidiaries have

been translated in accordance with this Section V.10 in the preparation of these financial statements.

5. Method of determining materiality criteria and basis of selection

? Applicable □ N/A

Item Materiality Criteria

Significant accounts payable with an age of Individual amount exceeding RMB 3 million

more than one year

Important prepaid accounts with an age of Individual amount exceeding RMB 1 million

more than one year

6. Accounting treatment of business combinations under the same control and non-same control

? Applicable □ N/A

(1) Business combination under the same control

Assets and liabilities acquired by the Group as a consolidated party in a business combination under

the same control are measured at the book value of the party being consolidated in the consolidated

statements of the party ultimately in control at the date of consolidation. The difference between the book

value of net assets acquired and the book value of the consideration paid for the merger is adjusted to

capital surplus; if the capital surplus is not sufficient to cover the difference it is adjusted to retained

earnings.

(2) Business combination not under common control

A business combination under non-identical control occurs when the parties involved in the

combination are not under the ultimate control of the same party or parties before and after the combination.Identifiable assets liabilities and contingent liabilities of the acquiree acquired in a business combination

not under common control are measured at fair value at the acquisition date. The cost of consolidation is

the sum of the fair values of cash or non-cash assets paid liabilities issued or assumed and equity

securities issued by the Group at the date of acquisition for the purpose of obtaining control over the

acquiree as well as all directly related expenses incurred in the business combination (for business

combinations effected in stages through multiple transactions the cost of consolidation is the sum of the

costs of each individual transaction). If the cost of combination is greater than the fair value of the

acquiree's identifiable net assets goodwill is recognized. If the cost of combination is less than the fair

value of the acquiree's identifiable net assets the fair value of the identifiable assets liabilities and

contingent liabilities acquired in the combination as well as the fair value of the non-cash assets or equity

securities issued as consideration for the combination are first reviewed. If after the review the cost of

consolidation is still less than the fair value of the net identifiable assets of the acquiree the difference is

recognized as non-operating revenue in the period of consolidation.

7. Criteria for judging control and method of preparing consolidated financial statements

? Applicable □ N/A

The scope of consolidation of the Group's consolidated financial statements is determined on the

basis of control which includes the Company and all subsidiaries controlled by the Company (including

enterprises divisible parts of invested entities and structured entities controlled by enterprises etc.). The

Group determines control on the basis of the Group's power over an investee the Group's ability to earn

variable returns from participating in the investee's activities and the Group's ability to exercise its power

over the investee to affect the amount of the investee's returns.In the preparation of consolidated financial statements if the subsidiaries adopt accounting policies

or accounting periods that are different from those of the Company the subsidiaries' financial statements

shall be adjusted as necessary in accordance with the Company's accounting policies or accounting

periods.The effects on the consolidated financial statements of internal transactions between the Company

and its subsidiaries and between subsidiaries are eliminated on consolidation. The share of ownership

137 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

interest of subsidiaries that is not attributable to the parent company and the share of net profit or loss

other comprehensive income and total comprehensive income that is attributable to minority interests are

presented in the consolidated financial statements under the headings of "Minority interests minority

interests in profit or loss other comprehensive income attributable to minorities and total comprehensive

income attributable to minorities" respectively.The results of operations and cash flows of subsidiaries acquired in a business combination under

the same control are included in the consolidated financial statements from the beginning of the period

in which the combination occurs. In preparing the comparative consolidated financial statements

adjustments are made to the relevant items in the prior year's financial statements and the consolidated

entity is deemed to have been in existence since the point in time when the ultimate controlling party

began to exercise control.For subsidiaries acquired in a business combination not under common control the results of

operations and cash flows are included in the consolidated financial statements from the date the Group

obtains control. In preparing the consolidated financial statements the financial statements of subsidiaries

are adjusted on the basis of the fair value of each identifiable asset liability and contingent liability

determined at the date of purchase.

8. Classification of joint arrangements and accounting treatment of joint operations

? Applicable □ N/A

The Group's joint venture arrangements include joint operations and joint ventures. Joint operation

refers to a joint arrangement in which the parties to the arrangement are entitled to the assets and bear the

liabilities related to the arrangement. A joint venture is a joint arrangement in which the joint venturers

have rights only to the net assets of the arrangement.For joint ventures the Group recognizes assets held and liabilities assumed individually or in

proportion to the assets held and liabilities assumed by the Group as a joint venturer and recognizes

revenues and expenses individually or in proportion to the relevant agreements. When a joint venture

enters into a transaction for the purchase or sale of an asset that does not constitute part of the business

only the portion of the gain or loss arising from the transaction that is attributable to the other participants

in the joint venture is recognized.

9. Criteria for determining cash and cash equivalents

For the purposes of the Group’s cash flow statement cash comprises cash on hand and deposits available

for immediate payment. Cash equivalents are investments with a maturity of no more than three months

highly liquid readily convertible to a known amount of cash and subject to an insignificant risk of changes

in value.

10. Foreign currency operations and translation of foreign currency statements

? Applicable □ N/A

(1) Foreign currency transactions

The Group's foreign currency transactions are translated into RMB at the spot exchange rate on the

date of the transaction. At the balance sheet date foreign currency monetary items are translated into RMB

using the spot exchange rate at the balance sheet date and the resulting translation differences are

recognized directly in current profit or loss except for exchange differences arising from special loans in

foreign currencies for the purpose of purchasing constructing or producing assets eligible for

capitalization which are dealt with in accordance with the principle of capitalization. Non-monetary items

carried at fair value that are denominated in foreign currencies are translated using spot exchange rates at

the date when the fair value is determined and the difference between the translated amount in the local

currency of the account and the original amount in the local currency of the account is treated as a change

in fair value (including exchange rate changes) and recognized in profit or loss for the period. Capital

received from investors in foreign currencies is translated using the spot exchange rate on the date when

the transaction occurs and the difference in the translated amount between the invested capital in foreign

currencies and the corresponding local currency of the monetary items does not result in a difference

138 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

between the foreign-currency capital and the corresponding local currency of the monetary items.

(2) Translation of foreign currency financial statements

Assets and liabilities in the foreign currency balance sheet are translated at the spot exchange rate at

the balance sheet date; owners' equity items except for "undistributed profits" are translated at the spot

exchange rate at the time of occurrence of the business; and income and expenses in the income statement

are translated at the spot exchange rate at the date of occurrence of the transaction. Translation differences

arising from the above translations are recognized in other comprehensive income. Cash flows in foreign

currencies are translated using the spot exchange rate on the date of cash flows. The effect of exchange

rate changes on cash is shown separately in the statement of cash flows.

11. Financial instruments

? Applicable □ N/A

The Group recognizes a financial asset or a financial liability when it becomes a party to a financial

instrument contract.The effective interest method is a method of calculating the amortized cost of a financial asset or a

financial liability and of allocating interest income or interest expense over the accounting period.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 book balance of the financial asset or the

amortized cost of the financial liability. In determining the effective interest rate the expected cash flows

are estimated by taking into account all contractual terms of the financial assets or liabilities (e.g. early

repayment rollover call option or other similar options etc.) but not the expected credit losses.The amortized cost of a financial asset or a financial liability is the initial recognized amount of the

financial asset or the financial liability less the principal repaid plus or minus the cumulative amortization

using the effective interest rate method to amortize the difference between the initial recognized amount

and the maturity amount and less the cumulative loss allowance (only applicable to financial assets).

(1) Classification recognition and measurement of financial assets

The Group classifies financial assets into the following three categories based on the business model

of the financial assets under management and the contractual cash flow characteristics of the financial

assets:

1) Financial assets measured at amortized cost

2) Financial assets at fair value through other comprehensive income (FVOCI).

3) Financial assets at fair value through profit or loss (FVTPL).

Financial assets are measured at fair value on initial recognition except for accounts receivable or

bills receivable arising from the sale of goods or provision of services etc. which do not contain

significant financing components or do not take into account the financing components that are not more

than one year old which are measured initially at the transaction price.For financial assets at fair value through profit or loss (FVTPL) transaction costs are recognized

directly in profit or loss while transaction costs related to other types of financial assets are recognized in

their initial recognition amounts.Subsequent measurement of financial assets depends on their classification. All affected financial

assets are reclassified when and only when the Group changes its business model for managing financial

assets.

1) Financial assets classified as of amortized cost

The Group classifies a financial asset as amortized cost if the contractual terms of the financial asset

stipulate that the only cash flows to be generated at a specific date will be payments of principal and

interest based on the amount of principal outstanding and the business model for managing the financial

asset is to collect the contractual cash flows. The Group recognizes interest income on these financial

assets using the effective interest method partially measured at amortized cost bills receivable accounts

receivable other receivables investments in debt securities and long-term receivables.The Group uses the effective interest rate method to recognize interest income on these financial

assets which are subsequently measured at amortized cost. Gains or losses arising from impairment or

derecognition or modification of such financial assets are recognized in current profit or loss. The Group

determines interest income by multiplying the book balance of the financial assets by the effective interest

rate except in the following cases.

139 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

a. For financial assets acquired or originated that are impaired the Group determines interest income

on the basis of the amortized cost of the financial assets and the effective interest rate adjusted for

creditworthiness from the initial recognition of the financial assets.b. For financial assets acquired or originated without credit impairment that become impaired in a

subsequent period the Group determines interest income in the subsequent period based on the amortized

cost of the financial assets and the effective interest rate. If in a subsequent period the credit risk of a

financial instrument has improved and the financial instrument is no longer impaired the Group calculates

interest income by multiplying the effective interest rate by the book value of the financial asset.

2) Financial assets at fair value through other comprehensive income (FVOCI)

If the contractual terms of a financial asset stipulate that the cash flows to be generated at a specific

date will consist solely of payments of principal and interest based on the outstanding principal amount

and the business model for managing the financial asset is based on the objective of collecting the

contractual cash flows as well as the objective of selling the financial asset the Group classifies the

financial asset as the financial asset at fair value through other comprehensive income (FVOCI).The Group recognizes interest income on such financial assets using the effective interest method.Changes in fair value are recognized in other comprehensive income except for interest income

impairment losses and exchange differences which are recognized in profit or loss. When the financial

assets are derecognized the cumulative gain or loss previously recognized in other comprehensive income

is transferred from other comprehensive income and recognized in profit or loss.Bills receivable and accounts receivable at fair value through other comprehensive income (FVOCI)

are presented as receivables financing and other financial assets are presented as other creditor’s right

investments of which. Other debt investments maturing within one year from the balance sheet date are

presented as non-current assets with maturity of less than one year and other debt investments with

original maturity of less than one year are presented as other current assets.

3) Financial assets designated as of fair value through other comprehensive income

On initial recognition the Group may irrevocably designate investments in non-trading equity

instruments as financial assets at fair value through other comprehensive income (FVOCI) on an individual

financial asset basis.Changes in the fair value of such financial assets are recognized in other comprehensive income and

no provision for impairment is required. Upon derecognition of the financial assets the cumulative gain

or loss previously recognized in other comprehensive income is transferred from other comprehensive

income to retained earnings.The Group recognizes dividend income and recognizes it in profit or loss when the Group's right to

receive dividends has been established it is probable that the economic benefits associated with the

dividends will flow to the Group and the amount of dividends can be measured reliably in the period in

which the Group holds the investment in the equity instrument. The Group reports such financial assets

under investments in other equity instruments.Investments in equity instruments are classified as financial assets at fair value through profit or loss

(FVTPL) if they meet one of the following conditions: the financial asset is acquired principally for the

purpose of selling in the near future; it is part of a centrally managed portfolio of identifiable financial

assets at initial recognition and there is objective evidence that a pattern of short-term profit-taking

actually exists in the near future; and it is a derivative (except for derivatives that meet the definition of a

financial guarantee contract and are designated as effective hedging instruments).

4) Financial assets classified as the financial assets at fair value through profit or loss (FVTPL)

Financial assets that do not meet the criteria for classification as financial assets at amortized cost or

at fair value through other comprehensive income and are not designated as fair value through other

comprehensive income are classified as financial assets at fair value through profit or loss (FVTPL).The Group uses fair value for subsequent measurement of these financial assets and recognizes gains

or losses arising from changes in fair value as well as dividend and interest income related to these

financial assets in current profit or loss.The Group reports these financial assets under the items of trading financial assets and other non-

current financial assets according to their liquidity.

5) Financial assets designated as the financial assets at fair value through profit or loss (FVTPL)

At initial recognition the Group may irrevocably designate financial assets as financial assets at fair

value through profit or loss (FVTPL) on an individual basis in order to eliminate or significantly reduce

accounting mismatches.

140 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

If a hybrid contract contains one or more embedded derivatives and the host contract is not one of

the above financial assets the Group may designate the entire contract as a financial instrument at fair

value through profit or loss. However except for the following situations:

a. The embedded derivatives will not materially alter the cash flows of the hybrid contract.b. When determining for the first time whether a similar hybrid contract needs to be unbundled little

analysis is required to clarify that the embedded derivatives it contains shall not be unbundled. For

example if the embedded loan has an early repayment right that allows the holder to repay the loan early

at an amount close to amortized cost the early repayment right does not need to be spun off.The Group uses fair value for subsequent measurement of these financial assets and recognizes gains

or losses arising from changes in fair value as well as dividend and interest income related to these

financial assets in current profit or loss.The Group reports these financial assets under the items of trading financial assets and other non-

current financial assets according to their liquidity.

(2) Classification recognition and measurement of financial liabilities

The Group classifies a financial instrument or its component parts as a financial liability or an equity

instrument upon initial recognition based on the contractual terms of the financial instrument issued and

the economic substance reflected therein rather than in legal form only taking into account the definitions

of financial liabilities and equity instruments. Financial liabilities are classified on initial recognition as

financial liabilities at fair value through profit or loss (FVTPL) other financial liabilities and derivatives

designated as effective hedging instruments.Financial liabilities are measured at fair value on initial recognition. For financial liabilities at fair

value through profit or loss (FVTPL) transaction costs are recognized directly in profit or loss; for other

types of financial liabilities transaction costs are recognized in the initial recognition amount.The subsequent measurement of financial liabilities depends on their classification.

1) Financial liabilities at fair value through profit or loss (FVTPL)

Financial liabilities at fair value through profit or loss (FVTPL) include trading financial liabilities

(including derivatives that are financial liabilities) and financial liabilities at fair value through profit or

loss (FVTPL) on initial recognition.Financial liabilities are classified as the trading financial liabilities if they meet one of the following

conditions: they are assumed principally for the purpose of selling or repurchasing in the near future; they

are part of a centrally managed portfolio of identifiable financial instruments and there is objective

evidence that the enterprise has recently adopted a short-term profit-taking model; they are derivatives

except for those designated as effective hedging instruments and those subject to financial guarantee

contracts. Trading financial liabilities (including derivatives that are financial liabilities) are subsequently

measured at fair value with all changes in fair value recognized in profit or loss except for those related

to hedge accounting.At initial recognition in order to provide more relevant accounting information the Group

irrevocably designates financial liabilities as financial liabilities at fair value through profit or loss (FVTPL)

if they meet one of the following conditions:

a. Eliminating or significantly reducing accounting mismatches.b. Managing and evaluating the performance of a portfolio of financial liabilities or a portfolio of

financial assets and financial liabilities on a fair value basis in accordance with an enterprise risk

management or investment strategy as set out in a formal written document and reporting to key

management personnel within the enterprise on this basis.The Group subsequently measures such financial liabilities at fair value with changes in fair value

recognized in profit or loss except for changes in fair value arising from changes in the Group's own credit

risk which are recognized in other comprehensive income. The Group recognizes all fair value changes

(including the effect of changes in the Group's own credit risk) in profit or loss unless the recognition of

fair value changes in other comprehensive income caused by changes in the Group's own credit risk would

result in an accounting mismatch in profit or loss or would magnify the accounting mismatch in profit or

loss.

(2) Other financial liabilities

Except for the following items the Company classifies its financial liabilities as financial liabilities

measured at amortized cost which are subsequently measured at amortized cost using the effective interest

method with gains or losses arising from derecognition or amortization recognized in current profit or

loss.a. Financial liabilities at fair value through profit or loss (FVTPL).

141 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

b. Financial liabilities resulting from transfers of financial assets that do not meet the conditions for

derecognition or from continuing involvement in the transferred financial assets.c. Financial guarantee contracts that do not fall into the first two categories of this article and loan

commitments to lend at below-market interest rates that do not fall into category 1) of this article.A financial guarantee contract is a contract that requires the issuer to pay a specified amount of money

to the holder of the contract who suffers a loss when a specified debtor fails to make payments when due

in accordance with the terms of the original or modified debt instrument. Financial guarantee contracts

that are not financial liabilities designated as fair value through profit or loss are measured at the higher

of the amount of the allowance for losses and the amount initially recognized net of accumulated

amortization over the guarantee period after initial recognition.

(3) Derecognition of financial assets and financial liabilities

1) A financial asset is derecognized i.e. removed from the accounts and balance sheet when one of

the following conditions is met.a. The contractual right to receive cash flows from the financial asset is terminated.b. The financial asset is transferred and the transfer meets the requirements for derecognition of

financial assets.

2) Conditions for derecognition of financial liabilities

A financial liability (or a portion of a financial liability) is derecognized when the present obligation

of the financial liability (or the portion of the financial liability) has been discharged.If the Group enters into an agreement with the lender to replace the original financial liability by

assuming a new financial liability and the contractual terms of the new financial liability are substantially

different from those of the original financial liability or the contractual terms of the original financial

liability (or a portion thereof) are substantially modified the original financial liability is derecognized

and a new financial liability is recognized at the same time. The difference between the book value and

the consideration paid (including non-cash assets transferred or liabilities assumed) is recognized in profit

or loss.When the Group repurchases a portion of a financial liability the Group allocates the book value of

the financial liability as a whole according to the proportion that the fair value of the continuing portion

and the derecognized portion of the financial liability bears to the fair value of the financial liability as a

whole at the date of buyback. The difference between the book value allocated to the derecognized portion

and the consideration paid (including non-cash assets transferred or liabilities assumed) shall be

recognized in profit or loss.

(4) Basis of recognition and measurement of transfer of financial assets

The Group assesses the extent to which it retains the risks and rewards of ownership of a financial

asset when a transfer of a financial asset occurs and handles the transfer in each of the following situations:

1) If substantially all the risks and rewards of ownership of a financial asset are transferred the

financial asset is derecognized and the rights and obligations arising from or retained in the transfer are

separately recognized as assets or liabilities.

2) If substantially all the risks and rewards of ownership of the financial asset are retained the

financial asset continues to be recognized.

3) If neither the transfer nor substantially all the risks and rewards of ownership of the financial asset

are retained (i.e. in cases other than those in 1) and 2)) the financial asset is recognized and treated as

follows depending on whether or not control over the financial asset is retained:

a. If control over the financial asset is not retained the financial asset is derecognized and the rights

and obligations arising from or retained in the transfer are recognized separately as assets or liabilities.b. If control over the financial asset is retained the financial asset continues to be recognized to the

extent of its continuing involvement in the transferred financial asset and the related liability is recognized

accordingly. The extent to which the Group continues to be involved in the transferred financial asset is

the extent to which it bears the risk or rewards of changes in the value of the transferred financial asset.In determining whether a transfer of financial assets meets the above conditions for derecognition of

financial assets the principle of substance over form is applied.The Company distinguishes between transfers of financial assets as a whole and partial transfers of

financial assets:

1) If the transfer of financial assets as a whole meets the conditions for derecognition the difference

between the following two amounts is recognized in profit or loss:

a. The book value of the transferred financial asset at the date of derecognition.

142 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

b. The sum of the consideration received for the transfer of the financial asset and the amount of the

derecognized portion of the cumulative change in the fair value of the transferred financial asset that is

recognized in other comprehensive income (the transferred financial asset is a financial asset at fair value

through other comprehensive income).

2) If part of a financial asset is transferred and the transferred part meets the conditions for

derecognition the book value of the financial asset as a whole before the transfer is apportioned between

the derecognized part and the derecognized part (in which case the retained service asset shall be regarded

as a part of the derecognized financial asset) in accordance with their respective relative fair values at the

date of transfer and the difference between the following amounts is recognized in current profit or loss:

a. The book value of the derecognized portion at the date of derecognition.b. The sum of the consideration received for the derecognized portion and the amount corresponding

to the derecognized portion of the cumulative changes in fair value previously recognized in other

comprehensive income (involving transfers of financial assets at fair value through other comprehensive

income (FVOCI)).If the transfer of a financial asset does not meet the conditions for derecognition the financial asset

continues to be recognized and the consideration received is recognized as a financial liability.

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

The fair value of a financial asset or a financial liability for which there is an active market is

determined using quoted prices in an active market unless there is a period of restriction on the sale of the

financial asset. The fair value of a financial asset that is subject to a sales restriction on the asset itself is

determined based on quoted prices in an active market less the amount of compensation that a market

participant would require to assume the risk of not being able to sell the financial asset in the open market

within a specified period of time. Quoted prices in active markets include quoted prices for the relevant

assets or liabilities that are readily and regularly available from exchanges dealers brokers industry

groups pricing agencies or regulatory bodies etc. and that are representative of actual and regularly

occurring market transactions on an arm's length basis.The fair value of financial assets or liabilities that are initially acquired or derived from financial

assets or liabilities assumed is determined on the basis of quoted market prices.The fair value of financial assets or financial liabilities for which no active market exists is determined

using valuation techniques. In valuing financial assets or financial liabilities the Group uses valuation

techniques that are appropriate in the circumstances and supported by sufficient available data and other

information and selects inputs that are consistent with the characteristics of the assets or liabilities that

would be considered by a market participant in a transaction for the relevant assets or liabilities giving

priority to the use of relevant observable inputs where possible. Unobservable inputs are used where

relevant observable inputs are not available or practicable to obtain.

(6) Impairment of financial instruments

The Group applies impairment accounting for financial assets carried at amortized cost financial

assets classified as fair value through other comprehensive income lease receivables contract assets loan

commitments that are not financial liabilities at fair value through profit or loss (FVTPL) financial

liabilities that are not financial liabilities at fair value through profit or loss (FVTPL) and financial

guarantee contracts that do not meet the conditions for derecognition due to the transfer of financial assets

or financial liabilities arising from continued involvement in the transferred financial assets based on

expected credit losses and recognizes a loss provision.Expected credit losses are the weighted average of credit losses on financial instruments that are

weighted by the risk of default. Credit loss is the difference between all contractual cash flows receivable

and all cash flows expected to be received by the Group under the contract discounted at the original

effective interest rate i.e. the present value of all cash shortfalls. Financial assets purchased or originated

by the Group that are credit-impaired are discounted at the financial asset's credit-adjusted effective

interest rate.For receivables contract assets and lease receivables arising from transactions governed by the

Income Standards the Group applies a simplified measurement approach and measures the allowance for

losses as an amount equal to the expected credit losses over the life of the asset.For purchased or originated financial assets that are impaired only the cumulative change in expected

credit losses over the life of the asset since initial recognition is recognized as a loss allowance at the

balance sheet date. At each balance sheet date the amount of the change in expected credit losses for the

entire duration of the asset is recognized as an impairment loss or gain in profit or loss. Even if the expected

credit losses determined at that balance sheet date are less than the amount of expected credit losses

143 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

reflected in the estimated cash flows at the time of initial recognition the favorable change in expected

credit losses is recognized as an impairment gain.For financial assets other than the above simplified measurement method and purchased or originated

financial assets that have been impaired the Group assesses at each balance sheet date whether the credit

risk of the relevant financial instruments has increased significantly since initial recognition and measures

the allowance for losses recognizes expected credit losses and the changes in expected credit losses in

accordance with the following scenarios:

1) If the credit risk of the financial instrument has not increased significantly since initial recognition

and is in the first stage the allowance for losses is measured at an amount equal to the expected credit

losses of the financial instrument in the next 12 months and interest income is calculated on the basis of

the book balance and the effective interest rate.

2) If the credit risk of the financial instrument has increased significantly since initial recognition but

credit impairment has not yet occurred in the second stage the Group measures the allowance for losses

at an amount equal to the expected credit losses for the entire duration of the financial instrument and

calculates interest income based on the book value and the effective interest rate.

3) If the financial instrument has been impaired since initial recognition in the third stage the Group

measures the allowance for credit losses at an amount equal to the expected credit losses over the life of

the financial instrument and calculates interest income at amortized cost and effective interest rate.Any increase or reversal of the allowance for credit losses on financial instruments is recognized as

an impairment loss or gain in profit or loss. The allowance for credit losses is offset against the book value

of the financial asset except for financial assets classified as fair value through other comprehensive

income. For financial assets classified as fair value through other comprehensive income the Group

recognizes the allowance for credit losses in other comprehensive income which does not reduce the book

value of the financial assets in the balance sheet.If the Group has measured the allowance for losses in a previous accounting period at an amount

equal to the expected credit losses over the entire life of the financial instrument but at the current balance

sheet date the financial instrument no longer represents a significant increase in credit risk since initial

recognition the Group measures the allowance for losses for the financial instrument at an amount equal

to the expected credit losses over the next 12 months at the current balance sheet date. The reversal of the

resulting loss provision is recognized as an impairment loss.

1) Significant increase in credit risk

The Group uses available reasonable and reliable forward-looking information to determine whether

there has been a significant increase in the credit risk of a financial instrument since initial recognition by

comparing the risk of default at the balance sheet date with the risk of default at the date of initial

recognition. For financial guarantee contracts the Group applies the provisions for impairment of financial

instruments by considering the date on which the Group became a party to the irrevocable commitment as

the initial recognition date.The Group considers the following factors when assessing whether there has been a significant

increase in credit risk:

a. Whether there has been a significant change in the debtor's operating results actual or expected;

b. Whether there has been a significant adverse change in the regulatory economic or technological

environment in which the debtor operates;

c. Whether there has been a significant change in the value of the collateral pledged as security for

the debt or in the quality of guarantees or credit enhancements provided by third parties which is expected

to reduce the debtor's financial incentive to repay the debtor within the contractual timeframe or affect the

probability of default; and

d. Whether there has been a significant change in the debtor's expected performance and repayment

behavior;

e. Changes in the Group's approach to credit management of financial instruments.At the balance sheet date if the Group determines that a financial instrument has only low credit risk

the Group assumes that there has been no significant increase in the credit risk of the financial instrument

since initial recognition. A financial instrument is considered to have low credit risk if the risk of default

is low the borrower's ability to meet its contractual cash flow obligations in the short term is high and the

borrower's ability to meet its contractual cash flow obligations may not necessarily be reduced by

unfavorable changes in the economic situation and business environment in the long term.

2) Financial assets that have suffered credit impairment

144 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

A financial asset is impaired when one or more events that have an adverse effect on the expected

future cash flows of the financial asset occur. Evidence that a financial asset is impaired includes

observable information such as

a. Significant financial difficulty of the issuer or debtor; or

b. A breach of contract by the debtor such as a default or delinquency in interest or principal

payments; or

c. The creditor has made concessions to the debtor that the debtor would not have made otherwise

because of economic or contractual considerations related to the debtor's financial difficulties;

d. The debtor is likely to enter into bankruptcy or other financial reorganization;

e. The disappearance of an active market for the financial asset as a result of financial difficulties of

the issuer or the debtor; or

f. A financial asset is purchased or acquired at a significant discount that reflects the fact that a credit

loss has been incurred.The occurrence of a credit impairment of a financial asset may be the result of a combination of

events and not necessarily the result of separately identifiable events.

3) Determination of expected credit losses

The Group assesses expected credit losses on financial instruments on an individual and portfolio

basis. In assessing expected credit losses the Group takes into account reasonable and supportable

information about past events current conditions and forecasts of future economic conditions.The Group categorizes financial instruments into different portfolios based on common credit risk

characteristics. The common credit risk characteristics adopted by the Group include: aging portfolio

construction bidding deposit receivables within the scope of consolidation etc. The individual evaluation

criteria and portfolio credit risk characteristics of related financial instruments are described in the

accounting policies of related financial instruments.The Group determines the expected credit losses of related financial instruments in accordance with

the following methods.a. For financial assets credit losses represent the present value of the difference between the

contractual cash flows to be received by the Group and the cash flows expected to be received.b. For lease receivables the credit loss is the present value of the difference between the contractual

cash flows to be received by the Group and the cash flows expected to be received.c. For financial guarantee contracts the credit loss is the present value of the difference between the

amount the Group expects to pay to the holder of the contract in respect of credit losses incurred by the

holder of the contract less the amount the Group expects to collect from the holder of the contract the

debtor or any other party.d. For financial assets that are impaired at the balance sheet date but not purchased or originated the

credit loss is the difference between the book balance of the financial asset and the present value of the

estimated future cash flows discounted at the original effective interest rate.The Group's method of measuring expected credit losses on financial instruments reflects factors

such as: an unbiased probability-weighted average amount determined by evaluating a range of possible

outcomes; the time value of money; and reasonable and substantiated information about past events

current conditions and projections of future economic conditions that is available at the balance sheet date

without undue additional cost or effort.

4) Write-down of financial assets

When the Group no longer has a reasonable expectation that the contractual cash flows of a financial

asset will be recovered in whole or in part the book value of the financial asset is written down directly.Such write-downs constitute derecognition of the related financial assets.

(7) Offsetting financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and are not offset.However if the following conditions are met they are presented in the balance sheet as net amounts after

offsetting:

1) The Group has a legal right to offset the recognized amounts and the legal right is currently

enforceable; and

2) The Group intends to settle the net amount or to realize the financial asset and settle the financial

liability at the same time.

145 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

12. Bills receivable

? Applicable □ N/A

Categories of bad debt provision according to credit risk characteristics and the basis of

determination

? Applicable □ N/A

When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost at the level

of individual instruments the Group classifies bills receivable into certain portfolios based on credit risk

characteristics with reference to historical credit loss experience current conditions and judgment of

future economic conditions and calculates expected credit losses on a portfolio basis. The basis for

determining the portfolio is as follows:

Risk portfolio Basis of portfolio determination Method of calculation

The risk characteristics of

commercial acceptances are Expected credit losses are

Commercial acceptances

substantially the same as those of accrued by reference to accounts

(Portfolio 1)

accounts receivable for similar receivable.contracts.The acceptors have high

credit ratings no historical Expected credit losses are

defaults very low risk of credit measured based on historical

Bank acceptance bill portfolio

loss and strong ability to fulfill credit loss experience current

(Portfolio 2)

their obligations to pay conditions and expectations of

contractual cash flows in the short future economic conditions.term.Aging method for recognizing a portfolio of credit risk characteristics based on the age of the

accounts.? Applicable □ N/A

For commercial paper receivables the expected credit loss accrual method is based on the bad debt

policy for accounts receivable and the aging point of commercial paper receivables is retroactively

adjusted to the aging point of the corresponding accounts receivable.Judgmental criteria for individual provisioning according to individual provisioning for bad

debts

? Applicable □ N/A

If there is objective evidence that an item is impaired the Group makes a provision for bad debts and

recognizes expected credit losses for that item.

13. Accounts receivable

? Applicable □ N/A

Categories of bad debt provision according to credit risk characteristics and the basis of

determination

? Applicable □ N/A

The Group provides for expected credit losses on an individual basis for accounts receivable with

significantly different credit risks from those of the portfolio. The Group determines credit losses

separately for receivables for which sufficient evidence of expected credit losses can be assessed at a

reasonable cost at the level of individual instruments.When sufficient evidence of expected credit losses cannot be assessed at a reasonable cost for an

individual instrument the Group divides accounts receivable into portfolios based on credit risk

characteristics by reference to historical credit loss experience current conditions and judgment of

future economic conditions and calculates expected credit losses on the basis of the portfolios. The basis

for determining the portfolio is as follows:

146 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Segmentation of Portfolio by Credit Risk Characteristics

Risk Portfolio

Based on Aging of Receivables

Portfolio of related party

The relationship between the receivable and the

transactions within the scope of

counterparty is used to characterize the credit risk.consolidation

Provisioning Method for Bad Debts by Portfolio

Risk portfolio (Portfolio 1) Provision for bad debts by aging analysis method

Portfolio of related party

Unless there is evidence of impairment no provision for

transactions within the scope of

bad debts is generally made.consolidation (Portfolio 2)

Aging method for recognizing a portfolio of credit risk characteristics based on the age of the

accounts.? Applicable □ N/A

The Group combines accounts receivable classified as risky portfolios with similar credit risk

characteristics (aging) and estimates the accrual proportion of bad debt for such accounts receivable

based on all reasonable and supportable information including forward-looking information.The following is a table comparing the aging of the accounts receivable - credit risk characteristics

portfolio with the expected credit loss rate over the entire life of the portfolio:

Expected Credit Loss Rate of Accounts

Aging

Receivable (%)

1-6 months (including 6 months) 3.00

7-12 months (including 12 months) 5.00

1-2 years (including 2 years) 10.00

2-3 years (including 3 years) 20.00

3-4 years (including 4 years) 50.00

4-5 years (including 5 years) 80.00

Above 5 years 100.00

Determination of bad debt provisioning according to individual items Individual item

provisioning judgment criteria

? Applicable □ N/A

If there is objective evidence that a receivable is impaired the Group makes a separate provision for bad

debts and recognizes expected credit losses on that receivable.

14. Receivables financing

? Applicable □ N/A

Categories of bad debt provision according to credit risk characteristics and the basis of

determination

? Applicable □ N/A

For details of the Group's method of determining expected credit losses on receivables financing and

accounting treatment please refer to this Section V.11. (6) Impairment of financial instruments.Aging method for recognizing a portfolio of credit risk characteristics based on the age of the

accounts.? Applicable □ N/A

For receivable financing classified as a portfolio the Group calculates the expected credit losses by

referring to the historical credit loss experience taking into account the current situation and the forecast

of the future economic situation through the default risk exposure and the expected credit loss rate for the

entire duration.

147 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Judgmental criteria for individual provisioning according to individual provisioning for bad

debts

? Applicable □ N/A

15. Other receivables

? Applicable □ N/A

Categories of bad debt provision according to credit risk characteristics and the basis of

determination

? Applicable □ N/A

For other receivables the Group is unable to obtain sufficient evidence of significant increase in

credit risk at a reasonable cost at the level of individual instruments and it is feasible to assess whether

there is a significant increase in credit risk on a portfolio basis. Therefore the Group groups other

receivables according to the type of financial instruments credit risk ratings initial recognition dates and

remaining contractual maturities as the common risk characteristics and considers them on a portfolio

basis. The Group assesses whether there is a significant increase in credit risk.To measure expected credit losses on a portfolio basis the Group groups the expected credit loss

accrual proportion according to the corresponding aging credit risk characteristics.Basis of Portfolio Determination

The Aging of Other Receivables is Used as the Credit Risk

Risk Portfolio

Characteristic to Classify the Portfolio

Portfolio of related party

The credit risk characteristics of other receivables are based

transactions within the scope of

on the relationship between the receivables and the counterparties.consolidation

Portfolio of risk-free

The credit risk characteristics of other receivables are based

receivables such as social

on the nature of the receivables.security receivables

Provisioning Method for Bad Debts by Portfolio

Risk Portfolio Provision for Bad Debts by Aging Analysis Method

Portfolio of risk-free

Unless there is evidence of impairment no provision for bad

receivables such as social

debts is generally made.security receivables

Portfolio of related party

Unless there is evidence of impairment no provision for bad

transactions within the scope of

debts is generally made.consolidation

Aging method for recognizing a portfolio of credit risk characteristics based on the age of the

accounts.? Applicable □ N/A

The Group combines other receivables classified as risky portfolios with similar credit risk

characteristics (aging) and estimates the accrual proportion of bad debt for such other receivables based

on all reasonable and supportable information including forward-looking information.A table comparing the aging of the other receivables - credit risk characteristics portfolio with the

expected credit loss rate over the entire duration is shown below:

Expected Credit Loss Rate of Other Receivables

Aging

(%)

Within 1 year (including 1 year) 5.00

1-2 years (including 2 years) 10.00

2-3 years (including 3 years) 30.00

3-4 years (including 4 years) 50.00

4-5 years (including 5 years) 80.00

148 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Expected Credit Loss Rate of Other Receivables

Aging

(%)

Above 5 years 100.00

Judgmental criteria for individual provisioning according to individual provisioning for bad

debts

? Applicable □ N/A

Other receivables arising from non-operating low-risk businesses are individually impaired according

to the nature of the business.For other receivables secured by mortgage the original value less the recoverable value of the

collateral is recognized as the risk exposure for credit losses.

16. Inventory

? Applicable □ N/A

Categories of inventories issue valuation method inventory system amortization method of

low-value consumables and packages

? Applicable □ N/A

The actual cost of inventories issued is measured using the individual valuation method.Recognition criteria and accrual method for provision for decline in value of inventories

? Applicable □ N/A

Net realizable value is the estimated selling price of inventories in the ordinary course of business

less estimated costs to be incurred to completion estimated selling expenses and related taxes. The net

realizable value of inventories held for the purpose of executing sales or service contracts is calculated on

the basis of the contract price.Categories and basis for determining the provision for decline in value of inventories based on

portfolios and basis for determining the net realizable value of different categories of inventories

? Applicable □ N/A

The net realizable value of inventories is determined on the basis of reliable evidence obtained taking

into account the purpose of holding the inventories the impact of events after the balance sheet date and

other factors.* The net realizable value of inventories held for sale such as finished goods merchandise and

materials for sale is determined as the estimated selling price of the inventories in the ordinary course of

production and operation less estimated selling expenses and related taxes. The net realizable value of

inventories held for the purpose of executing sales contracts or labor contracts is measured at the contract

price; if the quantity of inventories held exceeds the quantity ordered under the sales contract the net

realizable value of the excess quantity is measured at the normal selling price. The net realizable value of

materials for sale is measured at market price.* The net realizable value of inventories of materials requiring processing is determined in the

normal course of production and operation by the estimated selling price of finished goods produced less

estimated costs to be incurred until completion estimated selling expenses and related taxes. If the net

realizable value of finished goods produced from the materials is higher than the cost the materials are

measured at cost; if the decrease in the price of the materials indicates that the net realizable value of the

finished goods is lower than the cost the materials are measured at the net realizable value and a provision

for decline in value of inventories is made for the difference.* Provision for decline in value of inventories is generally made on the basis of individual inventory

items; for large quantities of inventories with low unit prices provision is made on the basis of categories

of inventories.* If the factors affecting the write-down of inventories have disappeared as of the balance sheet date

the amount of the write-down is restored and reversed to the extent of the provision for decline in value

of inventories and the amount of the reversal is recognized in profit or loss.

149 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Calculation method and basis for determining the net realizable value of each age group of

inventories for which the net realizable value of inventories is recognized based on the age of the

inventories

□ Applicable ? N/A

17. Contract assets

? Applicable □ N/A

Methods and criteria for recognizing contract assets

? Applicable □ N/A

A contract asset is a right to receive consideration for merchandise that the Group has transferred to

a client and which depends on factors other than the passage of time. If the Group sells two clearly

distinguishable commodities to a client and has the right to receive payment because one of the

commodities has been delivered but the receipt of such payment is also dependent on the delivery of the

other commodity the Group recognizes the right to receive payment as a contract asset.Categories of bad debt provision according to credit risk characteristics and the basis of

determination

? Applicable □ N/A

The Group classifies contract assets into portfolios based on credit risk characteristics by reference

to historical credit loss experience current conditions and judgment of future economic conditions and

calculates expected credit losses on the basis of the portfolios. The basis for determining the portfolio is

as follows:

Risk Portfolio Basis of Portfolio Determination Method of Calculation

The risk characteristics of Provision for expected

Outstanding guarantee outstanding warranties are substantially credit losses is made by

deposits (Portfolio 1) the same as those of accounts receivable reference to accounts

for similar contracts. receivable.Completed unsettled assets resulting

from construction contracts do not result Expected credit losses

in true accounts receivable; therefore the are measured by reference

Completed unsettled

expected credit loss rate for completed to historical credit loss

assets arising from

unsettled assets is generally no higher experience taking into

construction contracts

than the expected credit loss rate for account current conditions

(Portfolio 2)

accounts receivable within one year and and expectations of future

0.5% is used as the expected credit loss economic conditions.

rate for contracted assets

Aging method for recognizing a portfolio of credit risk characteristics based on the age of the

accounts

? Applicable □ N/A

For details please refer to Section V.13. Accounts receivable

Criteria for identifying and judging individual items for which provision for bad debts is

made on an individual basis

□ Applicable ? N/A

18. Non-current assets held for sale or disposal groups

□ Applicable ? N/A

Recognition criteria and accounting treatment for non-current assets or disposal groups

classified as held for sale

□ Applicable ? N/A

Recognition criteria and presentation of discontinued operations

150 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

? Applicable □ N/A

Discontinued operation means a separately distinguishable component of the Group that has been

disposed of or classified as held for sale if one of the following conditions is met: (1) The component

represents a separate principal business or a separate principal operating region; (2) The component is part

of an associated plan to dispose of a separate principal business or a separate principal operating region;

and (3) The component is a subsidiary acquired exclusively for resale.In the profit statement the Group has added the items "Net profit from continuing operations" and"Net profit from discontinued operations" to the item "Net profit” reflecting the profit or loss from

continuing operations and the profit or loss from discontinued operations respectively on a net after-tax

basis. Gains and losses related to discontinued operations shall be reported as discontinued operations

and the discontinued operations gains and losses shall be reported for the entire reporting period not only

for the reporting period after it is recognized as discontinued operations.

19. Long-term equity investment

? Applicable □ N/A

The Group's long-term equity investments are mainly investments in subsidiaries investments in

associates and investments in joint ventures.The Group judges joint control on the basis that all participants or a portfolio of participants

collectively control the arrangement and that the policies governing the activities of the arrangement must

be agreed upon by those participants who collectively control the arrangement.The Group is generally considered to have significant influence over an investee when it owns

directly or indirectly through subsidiaries more than 20% but less than 50% of the investee's voting rights.If the Group owns less than 20% of the voting power of an investee it is necessary to consider the facts

and circumstances such as having representatives on the board of directors or similar authority of the

investee or participating in the process of formulating the financial and operating policies of the investee

or engaging in significant transactions with the investee or dispatching management personnel to the

investee or providing key technological information to the investee etc. and determine that the Group

has significant influence on the investee.The investee is a subsidiary of the Group if the investor exercises control over the investee. Long-

term equity investments acquired through a business combination under the same control are initially

recognized at cost based on the share of the book value of the net assets of the party being consolidated in

the consolidated statements of the party ultimately in control at the date of consolidation. If the book value

of the net assets of the party being consolidated is negative at the date of consolidation the cost of long-

term equity investment is determined as zero.Long-term equity investments acquired through a business combination not under common control

are recognized at the cost of the combination.Except for the long-term equity investments acquired through business combination mentioned above

the cost of long-term equity investments acquired by cash payment is based on the actual purchase price

paid; the cost of long-term equity investments acquired by issuance of equity securities is based on the fair

value of the equity securities issued; and the cost of long-term equity investments invested by investors is

based on the value agreed in the investment contract or agreement.The Group's investments in subsidiaries are accounted for using the cost method and investments in

joint ventures and associates are accounted for using the equity method.The book value of long-term equity investments accounted for under the cost method is increased by

the fair value of additional investment and related party transaction costs incurred when additional

investment is made. Cash dividends or profits declared by the investee are recognized as investment

income at the amount to which they are attributable.The book value of long-term equity investments accounted for under the equity method shall be

increased or decreased accordingly to the changes in the ownership interest of the investee. In recognizing

the share of net profit or loss of an investee the fair value of the identifiable assets of the investee at the

time of investment acquisition is used as the basis for recognizing the net profit of the investee in

accordance with the Group's accounting policies and accounting periods after offsetting the portion of

gains or losses on internal transactions with associates and joint ventures that are attributable to the

investor based on the Group's proportionate interest in the investor's net assets and liabilities.On disposal of long-term equity investments the difference between the book value and the actual

acquisition price is recognized as investment income. For long-term equity investments accounted for

151 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

under the equity method other comprehensive income accounted for under the equity method shall be

accounted for on the same basis as the direct disposal of the related assets or liabilities by the investee

upon termination of the equity method and any changes in the equity of the investee due to changes in the

equity of the investee other than net profit or loss other comprehensive income and profit distribution

shall be fully transferred to current investment income upon termination of the equity method. The entire

amount shall be transferred to investment income when the equity method of accounting is discontinued.If an investee loses joint control or significant influence over the investee due to the disposal of a

portion of the equity investment the remaining equity interest after disposal shall be accounted for in

accordance with the relevant provisions of the Guidelines on the Recognition and Measurement of

Financial Instruments and the difference between the fair value of the remaining equity interest and its

book value at the date of the loss of joint control or significant influence shall be recognized in current

profit or loss. Other comprehensive income recognized as a result of the adoption of the equity method

shall be accounted for on the same basis as the direct disposal of the related assets or liabilities by the

investee and carried forward on a pro rata basis upon the termination of the adoption of the equity method

and all other changes in equity recognized as a result of changes in the investee's ownership interest other

than net profit or loss other comprehensive income and distribution of profits shall be transferred to

investment income on a pro rata basis for the current period.If the investee loses control of a portion of the long-term equity investment due to disposal and the

remaining equity interest after disposal is capable of exercising joint control or significant influence over

the investee it shall be accounted for under the equity method instead and the difference between the

book value of the equity interest disposed of and the disposal consideration shall be recognized in

investment income and the remaining equity interest shall be adjusted as if it were equity-method

accounted for from the time of acquisition; if the remaining equity interest after disposal is not capable of

exercising joint control or significant influence over the investee it shall be accounted for under the equity

method instead. If the remaining equity interest after disposal cannot exercise joint control or significant

influence over the investee the accounting shall be conducted in accordance with the relevant provisions

of the Guidelines on Recognition and Measurement of Financial Instruments and the difference between

the book value of the equity interest disposed of and the consideration for disposal shall be recognized as

investment income while the difference between the fair value of the remaining equity interest at the date

of the loss of control and its book value shall be recognized in current profit or loss.

20. Investment properties

(1) If the cost measurement model is used:

Depreciation or amortization method

The Group classifies real estate held to earn rentals or for capital appreciation or both as investment

property. The Group uses the cost model to measure investment properties that is use the cost to subtract

the accumulated depreciation amortization and impairment provision and display them in the balance

sheet. The Group depreciates the cost of investment properties net of estimated net salvage value and

accumulated impairment allowances over their useful lives using the average annualized method. For

details of the impairment test method and the method of making provision for impairment please refer to

Section V.11. (6) Impairment of financial instruments. The useful lives residual values and annual

depreciation rates for each type of investment property were as follows.Annual

Depreciable Life Estimated Salvage

No. Category Depreciation

(years) Value (%)

Rate (%)

1 House buildings 20 5-10 4.5-4.75

2 Land use rights 36.75 2.72

21. Fixed assets

(1). Recognition conditions

? Applicable □ N/A

The Group’s fixed assets are tangible assets with the following characteristics i.e. held for use in the

152 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

production of goods provision of services leasing or business management and with a useful life of more

than one year. Fixed assets are recognized when it is probable that the economic benefits associated

with them will flow to the Group and their costs can be measured reliably. The Group’ fixed assets

include buildings transportation equipment office and electronic equipment. The Group depreciates

all fixed assets except for fully depreciated fixed assets that are still in use and land that is separately

accounted for. The average life method is used for depreciation.

(2). Depreciation method

? Applicable □ N/A

Depreciation Depreciable Life Residual Value Annual

Category

Method (Year) Rate Depreciation Rate

House Average life 10-20 5-10 4.50-9.50

buildings method

Transportation Average life 4 5 23.75

equipment method

Office and Average life 3 5 31.67

electronic method

equipment

The Group reviews the estimated useful lives estimated residual values and depreciation methods

of fixed assets at the end of each year. Any changes are accounted for as changes in accounting estimates.

22. Construction in progress

? Applicable □ N/A

(1) Construction in progress is categorized and accounted for by standing items.

(2) Criteria and point in time for carrying forward construction in progress to fixed assets

Construction in progress is recognized as a fixed asset on the basis of all expenditures incurred

before the asset is constructed and brought to its intended state of use. This includes construction

costs the original cost of machinery and equipment other necessary expenses incurred to bring the

construction in progress to its intended state of use as well as borrowing costs incurred before the

asset reaches its intended state of use for borrowing specifically for the project and borrowing costs

incurred for general borrowing used for the project. The Group transfers construction in progress to

property plant and equipment when the project has been installed or constructed to its intended state

of use. Fixed assets that have reached the intended state of use but for which final accounts have not

yet been finalized are transferred to fixed assets from the date they reach the intended state of use at

their estimated value based on the project budget construction cost or actual cost of the project and

depreciation is provided for in accordance with the Group's policy on depreciation of fixed assets

and after final accounts have been finalized the original provisional value is adjusted according to

the actual cost but the amount of depreciation provided for is not adjusted. The original provisional

value will be adjusted according to the actual cost after the completion of the final accounts without

adjusting the depreciation originally provided.

23. Borrowing costs

? Applicable □ N/A

(1) Recognition principles and capitalization period for capitalization of borrowing costs

Borrowing costs incurred by the Group for the acquisition construction or production of assets

directly attributable to the assets eligible for capitalization shall be capitalized to the cost of the relevant

assets when the following conditions are simultaneously met:

* Expenditures on assets have been incurred;

* Borrowing costs have been incurred;

* The construction or production activities necessary to bring the asset to its intended state of use

have begun.

153 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Other borrowing interests discounts or premiums and exchange differences are recognized in profit

or loss in the period in which they are incurred.The capitalization of borrowing costs is suspended when there is an abnormal interruption in the

construction or production of assets eligible for capitalization for more than three consecutive months.The capitalization of borrowing costs ceases when the assets eligible for capitalization have reached

their intended use or saleable condition; any subsequent borrowing costs are recognized as expenses in the

period in which they are incurred.

(2) Calculation of the capitalization rate and amount of capitalized borrowing costs

If a special loan is borrowed for the purpose of purchasing constructing or producing an asset

eligible for capitalization the capitalized amount of interest expense on the special loan shall be

determined by the actual interest expense incurred on the special loan in the period less the interest income

from depositing the unused borrowed funds in a bank or the investment income from making a temporary

investment.If general borrowings are used for the acquisition construction or production of assets eligible for

capitalization the amount of interest to be capitalized on general borrowings shall be calculated by

multiplying the weighted average amount of cumulative asset expenditures in excess of the portion of

special-purpose borrowings by the capitalization rate of the general borrowings used to calculate the

amount of interest to be capitalized on general borrowings. The capitalization rate is based on the weighted

average interest rate of general borrowings.

24. Biological assets

□ Applicable ? N/A

25. Oil and gas assets

□ Applicable ? N/A

26. Intangible assets

(1). Useful life basis for determining useful life estimation amortization method or review

procedure

? Applicable □ N/A

Intangible assets including land use rights and software are measured at cost and amortized

equally over their estimated useful lives.

(1) Land use rights

Land use rights are amortized equally over their useful lives of 50 years. If it is difficult to allocate

the purchase price of land and buildings between land use rights and buildings all of them are

recognized as fixed assets.

(2) Computer software

Acquired computer software is capitalized on the basis of the costs incurred to acquire and put into

use the specific software. The related costs are amortized on a straight-line basis over the estimated useful

lives of 2 to 10 years. Costs related to the maintenance of computer software programs are recognized as

expenses as they are incurred.

(3) Periodic review of useful lives and amortization methods

The estimated useful lives and amortization methods of intangible assets with finite useful lives are

reviewed and appropriately adjusted at the end of each year. The Group considers intangible assets for

which the duration of future economic benefits is not foreseeable as intangible assets with indefinite useful

lives and does not amortize such intangible assets. As of the end of the reporting period the Group had no

intangible assets with indefinite useful lives. Expenditures on the Group's internal R&D projects are

recognized in profit or loss as incurred.

(4) Impairment of intangible assets

When the recoverable amount of an intangible asset is less than its book value the book value is

written down to the recoverable amount.

154 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(2). Scope of attribution of R&D expenditures and related accounting treatment

? Applicable □ N/A

The specific criteria for distinguishing between the research phase and the development phase of

internal R&D projects are as follows:

* The Group classifies preparatory activities which are conducted for further development

including data and related aspects as the research phase. Expenditures incurred during the research phase

of intangible assets are recognized in profit or loss as incurred.* The Group classifies development activities which are commenced after the completion of the

research phase as the development phase.Specific conditions for capitalizing development phase expenditures:

Only when the expenditures in the development stage meet the following conditions can they be

recognized as intangible assets:

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

B. Having the intention to complete the intangible asset and use or sell it;

C. The ways in which intangible assets generate economic benefits including the ability to prove that

the products produced by using the intangible assets exist in the market or the intangible assets themselves

exist in the market and the intangible assets will be used internally which can prove their usefulness;

D. Having sufficient technical financial and other resources to support the development of intangible

assets and having the ability to use or sell the intangible assets;

E. Expenditure attributable to the development stage of intangible assets can be measured reliably.

27. Impairment of long-term assets

? Applicable □ N/A

The Group examines items such as long-term equity investments property and equipment

construction in progress right-of-use assets and intangible assets with finite useful lives at each balance

sheet date and performs impairment tests when there are indications of impairment. Goodwill and

intangible assets with indefinite useful lives are tested for impairment at the end of each year regardless

of whether there is any indication of impairment.The recoverable amount is determined as the higher of the asset's fair value less costs of disposal and

the present value of the asset's estimated future cash flows. The Group estimates the recoverable amount

of an asset on an individual basis; if it is difficult to estimate the recoverable amount of an individual asset

the recoverable amount of an asset group is determined on the basis of the asset group to which the asset

belongs. An asset group is identified on the basis of whether the major cash inflows from the asset group

are independent of those from other assets or groups of assets.When the recoverable amount of an asset or an asset group is less than its book value the Group

writes down its book value to its recoverable amount and the amount of the write-down is recognized in

profit or loss and a corresponding provision for asset impairment is made.For the purpose of impairment testing of goodwill the book value of goodwill arising from a business

combination is allocated to the relevant asset group on a reasonable basis from the date of purchase; if it

is difficult to be allocated to the relevant asset group the book value is allocated to a portfolio of the

relevant asset groups. The relevant asset group or portfolio of asset groups is one that can benefit from the

synergies of the business combination and is not larger than the Group's reportable segments.When testing for impairment of the relevant asset group or portfolio of asset groups containing

goodwill if there is any indication of impairment for the asset group or portfolio of asset groups related

to goodwill the asset group or portfolio of asset groups that does not contain goodwill is first tested for

impairment the recoverable amount is calculated and the corresponding impairment loss is recognized.Then carry out impairment test on the asset portfolio or asset portfolio group which contains goodwill

and compare the book value and recoverable amount. If the recoverable amount is lower than the book

value the amount of the impairment loss shall first be offset against the book value of the goodwill

allocated to the asset group or portfolio of assets and then against the book value of the other assets

proportionally according to the proportion of the book value of the other assets excluded from the asset

group or portfolio of assets.

155 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

If the book value of an asset exceeds its recoverable amount after an impairment test the difference

is recognized as an impairment loss which is not reversed in subsequent periods.

28. Long-term unamortized expenses

? Applicable □ N/A

Long-term amortized expenses are expenses incurred by the Group but shall be borne by the Group

in the current and future periods with an amortization period of more than one year. Long-term

amortization expenses These expenses are amortized equally over the period of benefit. If a long-term

amortized expense item does not benefit a future accounting period the amortized value of the item that

has not been amortized is transferred to current profit or loss.

29. Contract liabilities

? Applicable □ N/A

Contract liabilities reflect the Group's obligations to transfer goods to clients for consideration

received or receivable from clients. If the client has paid the contractual consideration or the Group has

obtained the unconditional right to receive the contractual consideration before the Group transfers the

goods to the client contract liabilities are recognized for the amount received or receivable at the earlier

of the actual payment made by the client and the amount due.

30. Employee remuneration

(1). Accounting treatment of short-term remuneration

? Applicable □ N/A

The Group's employee remuneration includes short-term remuneration post-employment benefits

and termination benefits.Short-term remuneration mainly includes employees’ salaries welfare fees housing fund etc.Short-term remuneration actually incurred during the accounting period in which the employees render

services is recognized as a liability and charged to current profit or loss or the cost of the relevant assets

according to the beneficiary.

(2). Accounting treatment of post-employment benefits

? Applicable □ N/A

Post-employment benefits mainly include basic pension insurance premiums unemployment

insurance etc. which are categorized as defined contribution plans in accordance with the risks and

obligations assumed by the Company. Contributions to a defined contribution plan are recognized as a

liability at the balance sheet date on the basis of contributions made to a separate entity in exchange for

services rendered by employees during the accounting period and are recognized in profit or loss or at the

cost of the related assets depending on the beneficiary.

(3). Accounting treatment of termination benefits

□ Applicable ? N/A

(4). Accounting treatment of other long-term employee benefits

□ Applicable ? N/A

31. Estimated liabilities

? Applicable □ N/A

The Group recognizes a projected liability when the obligation relating to the contingency is a present

obligation incurred by the Group it is probable that the performance of the obligation will result in an

outflow of economic benefits to the Group and the amount can be measured reliably. A projected liability

is initially measured at the best estimate of the expenditure required to settle the present obligation. Where

the effect of the time value of money is material the projected liability is determined on the basis of the

156 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

discounted amount of the expected future cash flows. In determining the best estimate the Group considers

a portfolio of factors such as the risks and uncertainties associated with the contingency and the time value

of money. Where there is a continuous range of required expenditures and the likelihood of each outcome

within that range is equal the best estimate is determined at the midpoint of the range; in other cases the

best estimate is treated as follows:

- Where the contingency relates to a single item it is determined on the basis of the most probable

amount to be incurred.- Where a contingency relates to more than one item it is determined on the basis of various possible

outcomes and related probabilities.The Group reviews the book value of the estimated liability at the balance sheet date and adjusts the

book value to the current best estimate.

32. Share-based payment

? Applicable □ N/A

(1) Types of share-based payment and accounting treatment

Share-based payment is a transaction in which a company grants an equity instrument or assumes a

liability determined on the basis of an equity instrument in order to obtain services from employees. Share-

based payment is categorized into equity-settled share-based payment and cash-settled share-based

payment.

1) Equity-settled share-based payment

Stock option plans are equity-settled share-based payments in exchange for services rendered by

employees and are measured at the fair value of the equity instruments granted to employees at the grant

date. Options may be exercised only upon completion of services or fulfillment of specified performance

conditions during the waiting period. During the waiting period based on the best estimate of the number

of equity instruments that can be exercised the services acquired in the period are recognized in the related

costs or expenses at the fair value of the equity instruments on the grant date and the capital surplus is

increased accordingly.

2) Cash-settled share-based payment

The stock appreciation rights plan is a cash-settled share-based payment which is measured at the

fair value of the liability assumed by the Company based on the number of shares of the Company. The

cash-settled share-based payment is subject to the completion of services or the fulfillment of performance

conditions during the waiting period. At each balance sheet date during the waiting period based on the

best estimate of the feasibility of the rights the services acquired in the period are recognized as a cost or

expense at the amount of the fair value of the liabilities assumed by the Company and the liabilities are

increased accordingly. The fair value of the liability is remeasured at each balance sheet date until the

liability is settled and at the date of settlement with the change recognized in profit or loss.

(2) Method of determining the fair value of equity instruments

The fair value of shares granted to employees is measured at the market price of the Company's shares

adjusted to take into account the terms and conditions under which the shares were granted (excluding the

conditions for exercising the rights other than market conditions).For stock options granted to employees the fair value of the options granted is estimated using an

option pricing model.

(3) Basis for recognizing the best estimate of feasible equity instruments

At each balance sheet date during the waiting period the number of equity instruments expected to

become exercisable is revised by making a best estimate based on the latest available subsequent

information such as changes in the number of employees with exercisable rights.

(4) Handling of modification and termination of the share-based payment plan

If the modification of a share-based payment plan increases the fair value of the equity instruments

granted the increase in services received shall be recognized accordingly to the increase in the fair value

of the equity instruments.If a modification of a share-based payment plan increases the number of equity instruments granted

the increase in the fair value of the equity instruments shall be recognized as an increase in services

received accordingly.If the conditions for exercising rights are modified in a way that is favorable to the employee such

as shortening the waiting period or changing or eliminating performance conditions (instead of market

conditions) the company takes the modified conditions into account when dealing with the conditions for

exercising rights.

157 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

If the terms and conditions are modified in a manner that reduces the total fair value of the share-

based payment or is otherwise unfavorable to the employee the services received continue to be accounted

for as if the change had never occurred unless some or all of the equity instruments granted are canceled.If the granted equity instruments are canceled during the waiting period the canceled equity

instruments are treated as accelerated exercise and the remaining amount to be recognized during the

waiting period is immediately recognized in profit or loss and capital surplus is recognized. If the

employees or other parties can choose to meet the non-optional conditions but fail to do so within the

waiting period the cancellation is treated as a cancellation of the granted equity instruments.

33. Preferred stock perpetual bonds and other financial instruments

□ Applicable ? N/A

34. Revenue

(1). Disclosure of accounting policies adopted for revenue recognition and measurement by type

of business

? Applicable □ N/A

The Group recognizes revenue when it has fulfilled its performance obligations under a contract i.e.when the client obtains control of the related goods or services.If a contract contains two or more performance obligations the Group allocates the transaction price

to each individual performance obligation on the basis of the relative proportion of the individual selling

price of the goods or services promised under each individual performance obligation at the inception date

of the contract and measures revenue on the basis of the transaction price allocated to each individual

performance obligation. For contracts with quality assurance clauses the Group analyzes the nature of the

warranty provided and treats the warranty as a separate performance obligation if the warranty provides a

separate service from guaranteeing to the client that the goods sold meet the established standards.Otherwise the Group accounts for them in accordance with the provisions of ASBE No. 13 -Contingencies.The transaction price is the amount of consideration that the Group expects to be entitled to receive

for the transfer of goods or services to the client excluding amounts received on behalf of third parties.The Group recognizes a transaction price that does not exceed the amount by which it is more likely than

not that a material reversal of the cumulative revenue recognized will not occur when the related

uncertainty is removed. Amounts expected to be returned to clients are recognized as a liability for returns

and are not included in the transaction price.The Group has a performance obligation at a point in time when one of the following conditions is

met; otherwise the Group has a performance obligation at a point in time:

- The client acquires and consumes the economic benefits arising from the Group's performance at

the same time as the Group's performance;

- The client is able to control the goods under construction in the course of the Group's performance;

- The goods produced in the course of the Group's performance have a non-substitutable use and the

Group is entitled to receive payment for the cumulative portion of performance completed to date

throughout the term of the contract.The Group recognizes revenue on the basis of the progress of performance over a period of time for

performance obligations that are to be fulfilled within that period. When the progress of performance is

not reasonably determinable the Group recognizes revenue on the basis of the amount of costs incurred

until the progress of performance is reasonably determinable provided that the costs incurred by the Group

are expected to be reimbursed.For performance obligations fulfilled at a certain point in time the Group recognizes revenue at the

point in time when the client obtains control of the related goods or services. In determining whether a

client has obtained control of goods or services the Group considers the following indications:

- The Group has a present right to receive payment for the good or service;

- The Group has physically transferred the good to the client;

- The Group has transferred legal title or the principal risks and rewards of ownership of the good to

the client;

- The client has accepted the goods or services etc.

158 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

The Group accounts for changes in the scope or price of a contract that have been approved by the

parties to the contract separately under the following circumstances:

- If a contract change adds clearly distinguishable goods and contract prices and the new contract

price reflects the separate selling price of the new goods the changed part of the contract is accounted for

as a separate contract;

- If a contract change does not fall into the above category and if the goods transferred or services

provided are clearly distinguishable from those not transferred or provided at the date of the contract

change the original contract is deemed to be terminated and the unperformed portion of the original

contract and the changed portion of the contract are combined and accounted for as part of a new contract;

- If a contract change does not fall under the above circumstances i.e. if there is no clear distinction

between goods transferred or services provided and goods not transferred or services not provided at the

date of the contract change the changed portion of the contract is accounted for as an integral part of the

original contract and the resulting impact on the recognized revenue is adjusted to current revenue at the

date of the contract change.The right to receive consideration for goods or services that the Group has transferred to a client (and

which is dependent on factors other than the passage of time) is recognized as a contract asset which is

impaired on the basis of expected credit losses. The Group's unconditional right to receive consideration

from clients which is dependent only on the passage of time is presented as receivables. The Group's

obligations to transfer goods or services to clients for which the Group has received or shall receive

consideration from the clients are presented as contractual liabilities.The specific accounting policies related to the Group's major revenue-generating activities are

described as follows:

1) Revenue from sales of goods

Revenue is recognized when the Group transfers control of goods to the client upon delivery to the

purchaser and obtains a signed receipt or when the goods are shipped on board a vessel.

2) Revenue from construction

The client controls the merchandise during the construction of the project. Under this type of contract

the relevant goods are constructed in accordance with the client's specifications and if the client terminates

the contract the Group is entitled to receive an amount that compensates it for the costs incurred and a

reasonable profit for the portion of the performance that has been performed to date. Accordingly the

Group recognizes revenues and costs associated with the construction of the works over time. The Group

determines the progress of performance based on the proportion of the cumulative actual contract costs

incurred to the estimated total contract costs and recognizes revenue in accordance with the progress of

performance. If revenue is recognized but not yet billed the Group recognizes it as a contract asset.

(2). The adoption of different operating models for the same type of business involves different

revenue recognition and measurement methods

□ Applicable ? N/A

35. Contract costs

□ Applicable ? N/A

36. Government subsidies

? Applicable □ N/A

(1) Recognition of government grants

Government grants are recognized only when the following conditions are simultaneously met:

1) The Group is able to fulfill the conditions attached to the government grants;

2) The Group is able to receive government grants.

(2) Measurement of government grants

If government grants are monetary assets they are measured at the amount received or receivable. If

the government grants are non-monetary assets they are measured at fair value; if the fair value cannot be

reliably obtained they are measured at a nominal amount of RMB 1.

159 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(3) Accounting treatment of government grants

1) Asset-related government grants

Government grants obtained by the Company for the purpose of purchasing constructing or

otherwise forming long-term assets are classified as asset-related government grants. Asset-related

government grants are recognized as deferred income and recognized in profit or loss in a reasonable and

systematic manner over the useful lives of the related assets. Government grants that are measured at

nominal amounts are recognized directly in profit or loss. If an asset is sold transferred retired or

destroyed before the end of its useful life the unallocated balance of the deferred income is transferred to

profit or loss in the period in which the asset is disposed of.

2) Government grants related to income

Government grants other than those related to assets are classified as revenue-related government

grants. Government grants related to income are accounted for as follows:

Government grants used to compensate the Group for costs or losses incurred in future periods are

recognized as deferred income and recognized in profit or loss in the period in which the costs or losses

are recognized;

For the purpose of compensating the Group for the related costs or losses already incurred they are

recognized directly in current profit or loss.Government grants that contain both asset-related and revenue-related components are accounted for

separately; if it is difficult to distinguish between the two they are categorized as revenue-related

government grants as a whole.Government grants related to the Group's daily activities are recognized in other income in

accordance with the substance of the economic operations. Government grants that are not related to the

Group's daily activities are recognized as non-operating revenue and expenses.

3) Policy-based preferential loan subsidies

If the finance disburses the subsidized interest rate funds to a lending bank and the lending bank

provides loans to the Group at a preferential interest rate the actual amount of the loan received shall be

regarded as the recorded value of the loan and the related borrowing costs shall be calculated on the basis

of the principal amount of the loan and the preferential interest rate of the policy.When the subsidized interest rate funds are directly allocated to the Group by the financial authorities

the Group will offset the corresponding subsidized interest rate against the relevant borrowing costs.

4) Return of government grants

When recognized government grants are to be returned the book value of the assets shall be adjusted

if the book value of the assets is reduced upon initial recognition; if there is a balance of deferred income

the balance of deferred income shall be reduced and the excess shall be recognized in current profit or

loss; otherwise the balance of deferred income shall be recognized directly in current profit or loss.

37. Deferred tax assets/deferred tax liabilities

? Applicable □ N/A

The Group’s deferred tax assets and deferred tax liabilities are calculated and recognized according

to the difference between the tax basis and book values of assets and liabilities and the difference

(temporary difference) between the tax basis and book values of items that are not recognized as assets

and liabilities but whose tax basis can be determined according to the provisions of tax law.The Group recognizes deferred tax liabilities for all taxable temporary differences except the

following circumstances: (1) Temporary differences arising from the initial recognition of goodwill or the

initial recognition of assets or liabilities arising from non-business consolidation transactions that neither

affect accounting profits nor taxable income (or deductible losses); (2) For taxable temporary differences

related to investments of subsidiaries associated enterprises and joint ventures the Group can control the

time when the temporary differences have reversal and the temporary differences are unlikely to have

reversal in the foreseeable future.The Group recognizes deferred tax assets for deductible temporary differences deductible losses and

tax deductions to the extent that it is likely to obtain future taxable income to offset deductible temporary

differences deductible losses and tax deductions: (1) Temporary differences arising from the initial

recognition of assets or liabilities generated by non-business consolidation transactions that neither affect

accounting profits nor taxable income (or deductible losses); (2) The deductible temporary differences

related to the investment of subsidiaries associated enterprises and joint ventures cannot meet the

following conditions at the same time: Temporary differences are likely to have reversal in the foreseeable

160 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

future and taxable income used to deduct deductible temporary differences is likely to be obtained in the

future.The Group recognizes deferred tax assets for all deductible losses that have not been utilized to the

extent that it is possible to have enough taxable income to offset the deductible losses. The management

estimates the time and amount of taxable income in the future by using a lot of judgments and determines

the amount of deferred tax assets to be confirmed in combination with tax planning strategies so there is

uncertainty.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates that are

expected to apply in the periods when the assets are realized or the liabilities are settled.

38. Leases

? Applicable □ N/A

At the inception date of a contract the Group assesses whether the contract is a lease or contains a

lease. A contract is a lease or contains a lease if one of the parties to the contract transfers the right to

control the use of one or more identified assets for a period of time in exchange for consideration.

(1) Separation of Lease Contracts

When a contract contains several individual leases the Group splits the contract and accounts for

each individual lease separately. When a contract contains both leases and non-leases the Group splits the

leases and non-leases and the leases are accounted for in accordance with the leasing standards while the

non-leases are accounted for in accordance with other applicable accounting standards.

(2) Consolidation of lease contracts

Two or more contracts containing leases entered into by the Group with the same counterparty or its

affiliates at the same or similar times shall be consolidated into one contract for accounting purposes when

one of the following conditions is met.a. The two or more contracts are entered into for an overall business purpose and constitute a package

transaction the overall business purpose of which cannot be understood unless considered as a whole.b. The amount of consideration for one of the two or more contracts is dependent on the pricing or

performance of the other contracts.c. The right to use the asset granted by the two or more contracts together constitutes a single lease.Basis of judgment and accounting treatment for simplified treatment of short-term leases and

leases of low-value assets as a lessee

? Applicable □ N/A

Short-term leases are leases that do not include an option to purchase and have a lease term of less

than 12 months. Low-value asset leases are leases with a lower value when the individual leased asset is

a brand new asset.The Group does not recognize right-of-use assets and lease liabilities for the following short-term

leases and low-value asset leases and the related lease payments are charged to the cost of the related

assets or to current profit or loss on a straight-line basis over the lease term. The Group recognizes right-

of-use assets and lease liabilities for leases other than short-term leases and leases of low-value assets.Lease classification criteria and accounting treatment as lessor

? Applicable □ N/A

The Group classifies leases as finance leases and operating leases at the commencement date of the

lease. A finance lease is a lease that transfers substantially all the risks and rewards incidental to ownership

of the leased asset which may or may not ultimately be transferred. Operating leases refer to leases other

than finance leases. During the reporting period the Group’s leases were all operating leases and lease

payments under operating leases were recognized as rental income using the straight-line method or other

systematic and reasonable methods in each period of the lease term: Initial direct costs incurred in

connection with the operating leases were capitalized and apportioned over the lease term on the same

basis as the rental income and were charged to current profit or loss; and variable lease payments relating

to operating leases that were not included in the lease payments were charged to current profit or loss

when they were actually incurred. Variable lease payments relating to operating leases that are not

recognized as lease receipts are recognized in profit or loss when they are actually incurred.

161 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

39. Other significant accounting policies and accounting estimates

? Applicable □ N/A

The preparation of financial statements requires the management of the Group to make estimates and

assumptions that affect the application of accounting policies and the amounts of assets liabilities income

and expenses. Actual results may differ from these estimates. The Group's management continually

evaluates its judgment regarding critical assumptions and uncertainties involved in making estimates. The

effects of changes in accounting estimates are recognized in the period in which the estimate is changed

and in future periods.The following accounting estimates and critical assumptions have a significant risk of causing a

material adjustment to the book value of assets and liabilities in future periods.

(1) Revenue recognition

Under the new revenue standard the Group recognizes revenue from construction contracts over a

period of time. The recognition of revenue and profit from construction depends on the Group's estimation

of the outcome of the contract and the progress of performance. If the actual amount of total revenues and

total costs incurred is higher or lower than management's estimates it will affect the amount of revenue

and profit recognized by the Group in future periods;

(2) Impairment of receivables and contract assets

The Group used the expected credit loss model to assess the impairment of financial instruments

since January 1 2019. The application of the expected credit loss model requires significant judgments

and estimates that take into account all reasonable and supportable information including forward-looking

information. In making such judgments and estimates the Group extrapolates the expected changes in the

credit risk of debtors based on historical repayment data and factors such as economic policies

macroeconomic indicators and industry risks. Therefore the amount of provision for impairment of

receivables and contract assets may change in accordance with the changes in the above estimates and the

adjustments to the provision for impairment of receivables and contract assets will affect the profit or loss

in the period in which the estimates are changed.

(3) Accounting estimates for provision for impairment of fixed assets and investment properties

The Group performs impairment tests on fixed assets such as buildings machinery and equipment

and investment properties at the balance sheet date if there is any indication of impairment. The

recoverable amount of property plant and equipment and investment properties is the higher of the present

value of estimated future cash flows and the fair value of the assets less costs of disposal which requires

the use of accounting estimates.If management revises the gross margins used in the calculation of future cash flows for asset groups

and portfolios of asset groups and the revised gross margins are lower than the currently used gross

margins the Group is required to increase the provision for impairment for property plant and equipment

and investment properties.If the pre-tax discount rate used for discounting cash flows is revised by the management and the

revised pre-tax discount rate is higher than the current rate the Group is required to make additional

provision for impairment of fixed assets and investment properties.If the actual gross profit margin or pre-tax discount rate is higher or lower than the management's

estimate the Group cannot reverse the provision for impairment of fixed assets and investment properties.

(4) Useful lives of fixed assets and investment properties

The Group reviews the estimated useful lives of fixed assets and investment properties at least

annually at the end of each year. The estimated useful lives are determined by the management based on

historical experience of similar assets reference to estimates generally used in the industry and expected

technological updates. Depreciation and amortization expenses for future periods are adjusted accordingly

when there is a significant change in the previous estimates.

(5) Income tax expense

The Group recognizes current and deferred taxes in profit or loss except for those arising from

business combinations and transactions or events directly attributable to owners' equity (including other

comprehensive income).Current income tax is the expected income tax payable calculated on the basis of the taxable income

for the year at the rates specified in the tax law plus adjustments to prior years' income tax payable. At

the balance sheet date if the Group has a legal right to settle on a net basis and intends to settle on a net

basis or to acquire assets and settle liabilities simultaneously current income tax assets and current

income tax liabilities are shown net of tax. Deferred tax assets and deferred tax liabilities are recognized

162 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

for deductible temporary differences and taxable temporary differences respectively. A temporary

difference is the difference between the book value of an asset or liability and its tax basis including

deductible losses and tax credits that can be carried forward to future years. Deferred tax assets are

recognized to the extent that it is probable that taxable income will be available against which the

deductible temporary differences can be utilized. Deferred tax is not recognized for temporary differences

arising from transactions that are not part of a business combination and that at the time of the transaction

affect neither the accounting profit nor taxable income (or deductible losses). At the balance sheet date

the Group measures the book value of deferred tax assets and liabilities based on the expected manner of

recovering or settling those assets and liabilities in accordance with enacted tax laws at the tax rates that

are expected to apply to the period when the assets are recovered or the liabilities are settled. The book

value of deferred tax assets is reviewed at the balance sheet date. The book value of deferred tax assets is

written down to the extent that it is more likely than not that sufficient taxable income will not be available

to allow the benefit of the deferred tax assets to be realized in future periods. When it is more likely than

not that sufficient taxable income will be available to offset the deferred tax assets the amount written

down is reversed.On the balance sheet date deferred tax assets and liabilities are netted out when the following

conditions are met:

-A taxable entity has a legal right to settle current income tax assets and current income tax liabilities

on a net basis;

-Deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority

on the same taxable entity or on different taxable entities provided that in each future period in which

significant deferred tax assets and liabilities reverse the taxable entity intends to settle the current tax

assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously.

40. Changes in significant accounting policies and accounting estimatesFor details refer to the “Explanation for the Company's Analysis of the Reasons for and Impact ofChanges in Accounting Policies Accounting Estimates or Correction of Material Accounting Errors” by

the Company under “Milestone Events”.

41. Adjustments to the financial statements as of the beginning of the year of first-time

implementation of new accounting standards or interpretations of accounting standards for the

first-time implementation of new accounting standards or interpretations of accounting

standards from 2025 onwards

□ Applicable ? N/A

42. Others

? Applicable □ N/A

(1) Special reserves

The Administrative Measures for the Extraction and Use of Enterprise Safety Production Fees (CZ

No. 136 [2022]) was released on and implemented as of November 21 2022 by the Ministry of Finance

and the Ministry of Emergency Management. The Group extracted and used safety production fees

according to the provisions of CZ No. 136 [2022].The Group's production safety fees when being extracted are recognized as the cost of the relevant

products or current profit or loss and at the same time are included in the “special reserves”.When the extracted safety production fees are used within the prescribed scope and belong to cost

expenditure the special reserves will be directly reduced. If the fixed assets are formed the expenditures

incurred through the subject of "construction in progress" will be recognized as fixed assets when the

project is completed and reaches the scheduled usable state; meanwhile the cost of forming the fixed asset

is deducted from the special reserves and accumulated depreciation of the same amount is recognized. No

depreciation will be accrued against the fixed assets in future periods.

(2) Discontinued operation

Discontinued operation means a separately distinguishable component of the Group that has been

disposed of or classified as held for sale if one of the following conditions is met: (1) The component

represents a separate principal business or a separate principal operating region; (2) The component is part

of an associated plan to dispose of a separate principal business or a separate principal operating region;

and (3) The component is a subsidiary acquired exclusively for resale.

163 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

In the profit statement the Group has added the items "Net profit from continuing operations" and"Net profit from discontinued operations" to the item "Net profit” reflecting the profit or loss from

continuing operations and the profit or loss from discontinued operations respectively on a net after-tax

basis. Gains and losses related to discontinued operations shall be reported as discontinued operations

and the discontinued operations gains and losses shall be reported for the entire reporting period not only

for the reporting period after it is recognized as discontinued operations.

(3) Segment reporting

The Group determines its operating segments based on its internal organizational structure

management requirements and internal reporting system. Two or more operating segments may be

consolidated into one if they have similar economic characteristics and at the same time are identical or

similar in terms of the nature of the individual products the nature of the production process the types of

clients for the products the manner of selling the products and the impact of laws and administrative

regulations on the products produced. The Group determines its reportable segments on the basis of

operating segments and on the principle of materiality.In preparing segment reports the Group measures revenue from inter-segment transactions on the

basis of actual transaction prices. The accounting policies used in the preparation of segment reports are

consistent with those used in the preparation of the Group's financial statements.VI. Taxation

1. Major tax variety and tax rate

Major tax variety and tax rate

? Applicable □ N/A

Tax Variety Tax Basis Tax Rate

Value-added tax (VAT) Based on the provision of

technical services sale of goods 3.00-13.00

etc.Urban maintenance and Levied on the taxable turnover

5.007.00

construction tax amount

Education surcharge Levied on the taxable turnover

3.002.00

amount

Enterprise income tax Levied on the taxable income

Varies by taxing entity

amount

Property tax Property tax is calculated based on

the residual value of the property

1.2012.00

after deducting 30% of the

original value of the property

Imposed on the provision of

Sales and services tax (SST) technical services sales of goods 6.00 8.00

and other relevant activities

Disclosure of taxable entities with different corporate income tax rates

? Applicable □ N/A

Name of Taxable Entity Income Tax Rate (%)

The Company 15Acter Engineering Technology (Shenzhen) Co. Ltd. (“Acter

25(Shenzhen)”)

Shenzhen Dingmao Trading Co. Ltd. (“Shenzhen Dingmao”) 25

Acter International Limited (“Acter (Hong Kong)”) 16.50

Acter Technology Singapore Pte. Ltd. (“Acter (Singapore)”) 17

PT. Acter Technology Indonesia (“Acter (Indonesia)”) 22

Construction service income isPT Acter Integration Technology Indonesia (“Indonesia Jointcollected by the owner at theVenture”)

rate of 2.65% when invoicing;

164 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

non-construction service income

is normally subject to the tax

rate of 22%

Acter Technology Malaysia Sdn. Bhd. (“Acter (Malaysia)”) 24Sheng Huei Engineering Technology Company Limited (“Acter

20(Vietnam)”)

Acter Technology Co. Ltd. (“Acter (Thailand)”) 20

2. Tax incentives

? Applicable □ N/A

On November 6 2023 the Company obtained the Certificate of High-tech Technology Enterprise

(Certificate No. GR202332006213 valid for three years from 2023 to 2025) jointly issued by Jiangsu

Provincial Department of Science and Technology Jiangsu Provincial Department of Finance and Jiangsu

Provincial Taxation Bureau of the State Administration of Taxation. During the reporting period the

Company enjoyed a preferential enterprise income tax rate of 15% for high-tech enterprises.

3. Others

□ Applicable ? N/A

VII. Notes to the Consolidated Financial Statements

1. Monetary fund

? Applicable □ N/A

In RMB Yuan

Item Closing Balance Opening Balance

Cash on hand 12187.35 12187.35

Bank deposits 687112784.72 574883794.76

Other monetary funds 89337129.96 486724.06

Deposits placed with

finance companies

Total 776462102.03 575382706.17

Including: total amount

235953238.94112491458.54

deposited abroad

In RMB Yuan

Other notes:

Including: monetary fund with restricted use

Balance at the Beginning

Item Balance at the End of the Year

of the Year

Margin/special purpose funds 89337129.96 486724.06

Total 89337129.96 486724.06

2. Trading financial assets

? Applicable □ N/A

In RMB Yuan

Reasons and

Item Closing Balance Opening Balance Justifications for

Designation

165 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Financial assets at fair value

50025000.00/

through profit or loss (FVTPL)

Including:

Structured deposits 50025000.00 /

Financial assets at fair value

through other comprehensive

income (FVOCI)

Including:

Total 50025000.00 /

Other notes:

□ Applicable ? N/A

3. Derivative financial assets

□ Applicable ? N/A

4. Bills receivable

(1). Classification of bills receivable

? Applicable □ N/A

In RMB Yuan

Item Closing Balance Opening Balance

Bank acceptance bills 7948419.65 524477.32

Financial acceptance bills 43500.00

Commercial acceptance bills 15422333.27 29202873.01

Less: provision for bad debts 8386000.42 2372177.29

Total 14984752.50 27398673.04

(2). Bills receivable pledged by the Company at the end of the period

□ Applicable □ N/A

(3). Bills receivable endorsed or discounted by the Company at the end of the period and not yet due

at the balance sheet date

? Applicable □ N/A

In RMB Yuan

Amount Derecognized at the End Amount not Derecognized at the

Item

of the Period End of the Period

Bank acceptance bill 214442.00 600424.59

Commercial acceptance bill

Total 214442.00 600424.59

(4). Disclosure by method of provision for bad debts

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Provision for Provision for

Book Balance Book Balance

Bad Debts Bad Debts

Accru Accru

Category Book Book

Propo al Propo al

Amou Amou Value Amou Amou Value

rtion Propo rtion Propo

nt nt nt nt

(%) rtion (%) rtion

(%)(%)

166 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Provision for

bad debts on

an individual

basis

Including:

Provision for 2337 8386 1498 2977 2372 2739

100.0100.0

bad debts by 0752. 000.4 35.88 4752. 0850. 177.2 7.97 8673.

00

portfolio 92 2 50 33 9 04

Including:

154283867036292423722687

Portfolio 1 2333. 65.99 000.4 54.38 332.8 6373. 98.24 177.2 8.11 4195.

272501972

79487948

52445244

Portfolio 2 419.6 34.01 419.6 1.76

77.3277.32

55

233783861498297723722739

Total 0752. / 000.4 / 4752. 0850. / 177.2 / 8673.

9225033904

Provision for bad debts on an individual basis:

□ Applicable ? N/A

Provision for bad debts by portfolio:

? Applicable □ N/A

Combined accrual item: Portfolio 1

In RMB Yuan

Closing Balance

Firm Name

Book Balance Provision for Bad Debts Accrual Proportion (%)

Commercial

acceptance bills due 15422333.27 8386000.42 54.38

within one year

Total 15422333.27 8386000.42 54.38

Explanation for provision for bad debts by portfolio

□ Applicable ? N/A

Provision for bad debts based on the general model of expected credit

? Applicable □ N/A

In RMB Yuan

Phase I Phase II Phase III

Expected Credit

Expected Credit

Losses for the

Expected credit Losses for the

Provision for bad debts Entire Duration Total

losses for the Entire Duration

(Credit

next 12 months (No Credit

Impairment

Impairment)

Incurred)

Balance as of January 1 2372177.2

2372177.29

20259

Balance as of January 1

2025 in the period

-- Transferred to Phase II

-- Transferred to Phase III

-- Reversed to Phase II

-- Reversed to Phase I

6013823.1

Provision in the period 6013823.13

3

167 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Reversal in the period

Write-offs in the period

Cancellations in the period

Other changes

Balance at December 31 8386000.4

8386000.42

20252

The basis for the classification of each stage and the accrual proportion for bad debts

None

Explanation for significant changes in the book balance of bills receivable for which changes in the

allowance for losses occurred in the period:

□ Applicable ? N/A

(5). Provision for bad debts

? Applicable □ N/A

In RMB Yuan

Change in the Period

Opening Closing

Category Recovery or Write-offs or Other

Balance Provision Balance

Reversal Cancellations Changes

Commercial

2372177.6013823.8386000.

acceptance

291342

bills

Total 2372177. 6013823. 8386000.

291342

Of which the amount of bad debt provision recovered or reversed in the period is significant:

□ Applicable ? N/A

Other notes:

None

(6). Actual write-off of bills receivable in the period

□ Applicable ? N/A

Write-off bills receivable of which significant:

□ Applicable ? N/A

Description of bills receivable written off:

□ Applicable ? N/A

Other notes:

□ Applicable ? N/A

5. Accounts receivable

(1). Disclosure by aging

? Applicable □ N/A

In RMB Yuan

Aging Closing Book Balance Opening Book Balance

Within 1 year (including 1 year) 540075270.62 358364551.48

1-6 months (including 6

496515708.62300616397.73

months)

168 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

6 months - 1 year (including 1

43559562.0057748153.75

year)

1 - 2 years 46926702.99 8953269.95

2 - 3 years 6919421.97 1927008.04

3 - 4 years 2915097.56 11830381.06

4 - 5 years 3689666.54

Above 5 years 12416759.52 8927092.98

Total 609253252.66 393691970.05

(2). Disclosure by method of provision for bad debts

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Provision for Provision for

Book Balance Book balance

Bad Debts Bad Debts

Accru Accru

Category Book Book

Propo al Propo al

Amou Amou Value Amou Amou Value

rtion propo rtion Propo

nt nt nt nt

(%) rtion (%) rtion

(%)(%)

Provision for

1034103410341034

bad debts on 100.0 100.0

3414.1.703414./3414.2.633414./

an individual 0 0

37373737

basis

Including:

Provision for 5989 2668 5722 3833 2111 3622

bad debts by 0983 98.30 0898. 4.45 2894 4855 97.37 4978. 5.51 3357

portfolio 8.29 11 0.18 5.68 11 7.57

Including:

609237025722393631453622

100.0100.0

Total 5325 4312. 2894 9197 8392. 3357

00

2.66480.180.05487.57

Provision for bad debts on an individual basis:

? Applicable □ N/A

In RMB Yuan

Closing Balance

Firm Name Provision for Accrual Reason for

Book Balance

Bad Debts Proportion (%) Provision

Qinghua Group Debtor’s financial

Xinjiang Coal difficulties

6570214.376570214.37100.00

Chemical Industry

Co. Ltd.Suzhou Mingqiao Debtor’s financial

Municipal 2158200.00 2158200.00 100.00 difficulties

Engineering Co. Ltd.Fujian Fuchen Debtor’s financial

1615000.001615000.00100.00

Technology Co. Ltd. difficulties

Total 10343414.37 10343414.37 100.00 /

Explanation for provision for bad debts on an individual basis:

□ Applicable ? N/A

Provision for bad debts by portfolio:

? Applicable □ N/A

169 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Combined accrual item: aging portfolio

In RMB Yuan

Closing Balance

Name

Book Balance Provision for Bad Debts Accrual Proportion (%)

1-6 months (including

496515708.6214895471.393.00

6 months)

6 months - 1 year

43559562.002177978.105.00

(including 1 year)

1-2 years (including 2

46926702.994692670.3010.00

years)

2-3 years (including 3

6919421.971383884.3920.00

years)

3-4 years (including 4

2915097.561457548.7850.00

years)

4-5 years (including 5

80.00

years)

Above 5 years 2073345.15 2073345.15 100.00

Total 598909838.29 26680898.11

Explanation for provision for bad debts by portfolio:

□ Applicable ? N/A

Provision for bad debts based on the general model of expected credit

? Applicable □ N/A

In RMB Yuan

Phase I Phase II Phase III

Expected Credit

Expected Credit

Expected Losses for the

Losses for the

Provision for Bad Debts Credit Losses Entire Duration Total

Entire Duration

for the Next 12 (Credit

(No Credit

Months Impairment

Impairment)

Incurred)

Balance as of January 1 31458392.4 31458392.

2025848

Balance as of January 1

2025 in the period

-- Transferred to Phase II

-- Transferred to Phase III

-- Reversed to Phase II

-- Reversed to Phase I

5793933.7

Provision in the period 5793933.70

0

Reversal in the period

Write-offs in the period

Cancellations in the period

Other changes -228013.70 -228013.70

Balance at December 31 37024312.4 37024312.

2025848

The basis for the classification of each stage and the accrual proportion for bad debts

See V. 13. Accounts receivable in this section

Explanation for significant changes in the book balance of accounts receivable for which changes in the

allowance for losses occurred in the period:

□ Applicable ? N/A

170 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(3). Provision for bad debts

? Applicable □ N/A

In RMB Yuan

Change in the Period

Write-offs

Opening Closing

Category Recovery or Other

Balance Provision Balance

or Reversal Cancellatio Changes

ns

Provision for 31458392. 37024312.

5793933.70-228013.70

bad debts 48 48

Total 31458392. 37024312.

5793933.70-228013.70

4848

Of which the amount of bad debt provision recovered or reversed in the period is significant:

□ Applicable ? N/A

Other notes:

None

(4). Accounts receivable actually written off in the period

□ Applicable ? N/A

Significant accounts receivable written off among them

□ Applicable ? N/A

Description of accounts receivable written off:

□ Applicable ? N/A

(5). Accounts receivable and contract assets with top five closing balances summarized by party

owed to the Company

? Applicable □ N/A

In RMB Yuan

Percentage of

Closing

Total Closing

Closing Closing Balance of Closing

Balances of

Balance of Balance of Accounts Balance of

Unit Name Accounts

Accounts Contract Receivable and Provision for

Receivable and

Receivable Assets Contract Bad Debts

Contract

Assets

Assets (%)

134591888.4134591888.4

Company 1 10.84 4037756.65

00

103870884.3103870884.3

Company 2 8.37 519354.42

88

Tripod

Technology 74382776.01 19464938.35 93847714.36 7.56 2328807.93

Corporation

Company 3 58709868.68 28296301.30 87006169.98 7.01 4161482.68

Company 4 85792871.34 85792871.34 6.91 438199.32

267684533.0237424995.3505109528.4

Total 40.69 11485601.00

976

Other notes:

171 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

None

Other notes:

□ Applicable ? N/A

6. Contract assets

(1). Status of contract assets

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Provision Provision

Item Book Book

for Bad Book Value for Bad Book Value

balance Balance

Debts Debts

Unexpired

337955831624424.032171159.61291470.7614564.853676905.

warranty.7747374886

deposits

Completed

unsettled assets

598543962992719.8595551245514801152574005.851222714

arising from

5.583.750.3514.54

construction

contracts

Total 63233954 4617143.8 627722405 57609262 10188570. 56590405

9.357.481.09690.40

(2). Amounts and reasons for significant changes in book value during the reporting period

□ Applicable ? N/A

(3). Disclosure by method of provision for bad debts

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Provision for Provision for

Book Balance Book Balance

Bad Debts Bad Debts

Accru Accru

Category Book Book

Propo al Propo al

Amou Amou Value Amou Amou Value

rtion Propo rtion Propo

nt nt nt nt

(%) rtion (%) rtion

(%)(%)

Provision for

31103110

bad debts on 100.0 100.0

867.1867.1/

an individual 0 0

00

basis

Including:

Provision for 6323 4617 6277 5729 7077 5659

100.0

bad debts by 3954 143.8 0.73 2240 8175 99.46 703.5 1.24 0405

0

portfolio 9.35 7 5.48 3.99 9 0.40

Including:

- Unexpired 3379 1624 3217 5818 4503 5367

warranty 5583. 5.34 424.0 4.81 1159. 0603. 10.10 697.7 7.74 6905.deposits 77 4 73 64 8 86

172 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

- Completed

unsettled

598529925955514825745122

assets arising

439694.66719.80.505124011589.36005.80.502714

from

5.5835.750.3514.54

construction

contracts

632346176277576010185659

Total 3954 / 143.8 / 2240 9262 / 8570. / 0405

9.3575.481.09690.40

Provision for bad debts on an individual basis:

□ Applicable ? N/A

Explanation for provision for bad debts on an individual basis:

? Applicable □ N/A

Provision for bad debts by portfolio:

? Applicable □ N/A

Combined accrual item: provision by portfolio

In RMB Yuan

Closing Balance

Firm Name

Book Balance Provision for Bad Debts Accrual Proportion (%)

- Unexpired warranty

33795583.771624424.044.81

deposits

- Completed unsettled

assets arising from 598543965.58 2992719.83 0.50

construction contracts

Total 632339549.35 4617143.87 0.73

Explanation for provision for bad debts by portfolio

□ Applicable ? N/A

Provision for bad debts based on the general model of expected credit

? Applicable □ N/A

In RMB Yuan

Phase I Phase II Phase III

Expected Credit

Expected Credit

Expected Losses for the

Losses for the

Provision for bad debts Credit Losses Entire Duration Total

Entire Duration

for the Next 12 (Credit

(No Credit

Months Impairment

Impairment)

Incurred)

Balance as of January 1 10188570.6 10188570.

2025969

Balance as of January 1

2025 in the period

-- Transferred to Phase II

-- Transferred to Phase III

-- Reversed to Phase II

-- Reversed to Phase I

-

-

Provision in the period 5542555.3

5542555.36

6

Reversal in the period

Write-offs in the period

173 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Cancellations in the period

Other changes -28871.46 -28871.46

Balance at December 31 4617143.8

4617143.87

20257

The basis for the classification of each stage and the accrual proportion for bad debts

See V. 17. Contract assets in this section

Explanation for significant changes in the book balance of contract assets for which changes in the

provision for losses occurred in the period:

□ Applicable ? N/A

(4). Provision for bad debts on contract assets in the period

? Applicable □ N/A

In RMB Yuan

Change in the Period

Recovere Write-

Opening

Item Provision d or off/Cance

Closing

balance Other

Reason

in the Reversed llation in Balance

Changes

Period in the the

Period Period

Provision for -

1018857-4617143.

Bad Debts 5542555

0.6928871.4687.36

-

1018857-4617143.

Total 5542555 /

0.6928871.4687.36

Of which the amount of bad debt provision recovered or reversed in the period is significant:

□ Applicable ? N/A

Other notes:

None

(5). Contract assets actually written off in the period

□ Applicable ? N/A

Significant contract assets written off

□ Applicable ? N/A

Description of contract assets written off:

□ Applicable ? N/A

Other notes:

□ Applicable ? N/A

7. Receivables financing

(1). Classification of receivables financing

? Applicable □ N/A

In RMB Yuan

Item Closing Balance Opening Balance

Bank acceptance bills 3581195.46 2499031.97

174 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

Total 3581195.46 2499031.97

(2). Receivable financing pledged by the Company at the end of the period

□ Applicable ? N/A

(3). Receivable financing endorsed or discounted by the Company at the end of the period and not

yet due at the balance sheet date

□ Applicable ? N/A

(4). Disclosure by method of provision for bad debts

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Provision for Provision for

Book Balance Book Balance

Bad Debts Bad Debts

Accru Accru

Category Book Book

Propo al Propo al

Amou Amou Value Amou Amou Value

rtion Propo rtion Propo

nt nt nt nt

(%) rtion (%) rtion

(%)(%)

Provision for

bad debts on

an individual

basis

Including:

Provision for 3581 3581 2499 2499

bad debts by 195.4 195.4 031.9 031.9

portfolio 6 6 7 7

Including:

3581358124992499

Portfolio 2 195.4 195.4 031.9 031.9

6677

3581358124992499

Total 195.4 195.4 031.9 / / 031.9

6677

Provision for bad debts on an individual basis:

□ Applicable ? N/A

Explanation for provision for bad debts on an individual basis:

□ Applicable ? N/A

Provision for bad debts by portfolio:

? Applicable □ N/A

Combined accrual item: Portfolio 2

In RMB Yuan

Closing Balance

Firm Name

Book Balance Provision for Bad Debts Accrual Proportion (%)

Portfolio 2 3581195.46

Total 3581195.46

Explanation for provision for bad debts by portfolio

175 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

? Applicable □ N/A

Bad debt provisioning by portfolio 2: The Group measured the bad debt reserve of bank acceptance bills

according to the expected credit loss during the whole duration at the end of the reporting period. The

Group believes that there is no significant credit risk in the bank acceptance bills held by it and there will

be no significant loss due to the default of the bank or other drawer.The confirmation standards and explanation for bad debt provisioning by portfolio 2 are shown in this

section V.11.Provision for bad debts based on the general model of expected credit

□ Applicable ? N/A

The basis for the classification of each stage and the accrual proportion for bad debts

None

Description of significant changes in the book balance of receivables financing for which changes in the

allowance for losses occurred in the period:

□ Applicable ? N/A

(5). Provision for bad debts

□ Applicable ? N/A

Of which the amount of bad debt provision recovered or reversed in the period is significant:

□ Applicable ? N/A

Other notes:

None

(6). Receivables financing actually written off in the period

□ Applicable ? N/A

Write-off of receivables financing of which significant amount

□ Applicable ? N/A

Description of write-offs:

□ Applicable ? N/A

(7). Increase/decrease and change in fair value of receivables financing in the period:

□ Applicable ? N/A

(8). Others

□ Applicable ? N/A

8. Prepayments

(1). Prepayments by aging

? Applicable □ N/A

In RMB Yuan

Closing Balance Opening Balance

Aging

Amount Proportion (%) Amount Proportion (%)

Within 1 year 82315039.22 96.79 104537849.88 94.48

1 - 2 years 2732801.14 3.21 6109210.38 5.52

176 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

2 - 3 years

Above 3

years

Total 85047840.36 100.00 110647060.26 100.00

Explanation for the reasons for the delayed settlement of prepayments aged over 1 year and with

significant amounts:

None

(2). Prepayments with the top five closing balances grouped by prepayment recipients

? Applicable □ N/A

In RMB Yuan

Percentage of Total Closing

Suppliers Closing Balance

Balance of Prepayments (%)

CHRIST WATER

8385967.009.86

TECHNOLOGY GmbH

Shanghai Walsin Lihwa Power

4680363.545.50

Cable & Wire Co. Ltd.Air Liquide (China) R&D Co.

4575331.965.38

Ltd.Far East Cable Co. Ltd. 4288675.04 5.04

Company 1 3572683.00 4.20

Total 25503020.54 29.98

Other notes:

None

Other notes:

□ Applicable ? N/A

9. Other receivables

Item presentation

? Applicable □ N/A

In RMB Yuan

Item Closing Balance Opening Balance

Interest receivable

Dividends receivable

Other receivables 10399844.12 9824375.86

Total 10399844.12 9824375.86

Other notes:

□ Applicable ? N/A

Interest receivable

(1). Classification of interest receivable

□ Applicable ? N/A

(2). Significant overdue interest

□ Applicable ? N/A

177 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(3). Disclosure by method of provision for bad debts

□ Applicable ? N/A

Provision for bad debts on an individual basis:

□ Applicable ? N/A

Explanation for provision for bad debts on an individual basis:

□ Applicable ? N/A

Provision for bad debts by portfolio:

□ Applicable ? N/A

(4). Provision for bad debts based on the general model of expected credit

□ Applicable ? N/A

The basis for the classification of each stage and the accrual proportion for bad debts

None

Explanation for significant changes in the book balance of interest receivables for which changes in the

allowance for losses occurred in the period:

□ Applicable ? N/A

(5). Provision for bad debts

□ Applicable ? N/A

Of which the amount of bad debt provision recovered or reversed in the period is significant:

□ Applicable ? N/A

Other notes:

None

(6). Actual write-off of interest receivable in the period

□ Applicable ? N/A

Write-off of significant interest receivables

□ Applicable ? N/A

Description of write-offs:

□ Applicable ? N/A

Other notes:

□ Applicable ? N/A

Dividends receivable

(1). Dividends receivable

□ Applicable ? N/A

(2). Significant dividends receivable with an age of more than 1 year

□ Applicable ? N/A

178 / 2632025 Annual Report of Acter Technology Integration Group Co. Ltd.

(3). Disclosure by method of provision for bad debts

□ Applicable ? N/A

Provision for bad debts on an individual basis:

□ Applicable ? N/A

Explanation for provision for bad debts on an individual basis:

□ Applicable ? N/A

Provision for bad debts by portfolio:

□ Applicable ? N/A

(4). Provision for bad debts based on the general model of expected credit

□ Applicable ? N/A

The basis for the classification of each stage and the accrual proportion for bad debts

None

Explanation for significant changes in the book balance of dividend receivables for which changes in the

allowance for losses occurred in the period:

□ Applicable ? N/A