The 2025 Annual Report of Hangcha Group Co. Ltd.Stock Code: 603298 Company Name: Hangcha Group

Hangcha Group Co. Ltd.2025 Annual Report

April 2026

1 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Important Notes

1. The Board of Directors and the Board of Supervisors of the Company and its directors

supervisors and senior executives hereby warrant that the information contained in this

annual report is true accurate and complete without any fictitious records misleading

statements or material omissions and severally and jointly assume legal responsibility

thereof.

2. All the directors of the Company attended the meeting of the Board of Directors.

3. Pan-China Certified Public Accountants LLP (Special General Partnership) has issued

a standard unqualified audit report for the Company.

4. Zhao Limin the person in charge of the Company Zhang Shutong the officer in charge

of accounting work and Yuan Guanghui the officer in charge of the accounting institution

(Accounting Officer) hereby declare and warrant that the financial statements in the annual

report are authentic accurate and complete.

5. The profit distribution plan or the plan for converting public reserve funds into

additional share capital for the Reporting Period after consideration by the Board of

Directors

According to Pan-China Audit [2026] No.7708 issued by Pan-China Certified Public Accountants

LLP as of December 31 2025 the consolidated financial statements of the Company indicated

operating revenue of RMB17738651997.86 net profit attributable to shareholders of the listed

company amounted to RMB2191315695.90 and distributable profit available to the parent

company at the end of the period was RMB6906647393.44. Neither statutory surplus reserve nor

discretionary surplus reserve was accrued for the year. Considering the future capital requirements

cash flow and sustained returns to shareholders the Board of Directors resolved on the following

profit distribution plan:

1. The Company intends to pay a cash dividend of RMB4 (tax inclusive) per 10 shares to all

shareholders. As of December 31 2025 based on the total share capital of13098120499 shares

of the Company the total cash dividend amount to be distributed is RMB523924819.60(tax

inclusive). The total cash dividends represent23.91% of the net profit attributable to shareholders

of the listed company for 2025. The remaining undistributed profits of the parent company

amounting to RMB6382722573.84 are carried over to the following year.On November 26 2025 the Company implemented the equity distribution for the first three

quarters of 2025 distributing a cash dividend of RMB2.00 (tax inclusive) per 10 shares

amounting to a total of RMB261962409.80. For details please refer to the Announcement on the

Implementation of Equity Distribution for the First Three Quarters of 2025 (Announcement No.

2025-062).

The cash dividends distributed by the Company for 2025 totalledRMB785887229.40 accounting

2 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

for 35.86% of the net profit attributable to shareholders of the listed company for 2025.

2. No bonus shares will be issued nor will the capital reserve be converted into share capital this

year.In case of any change to the total share capital of the Company prior to the registration date for the

equity distribution the per-share distribution amount will remain unchanged while the total

distribution amount will be adjusted accordingly.The profit distribution plan is subject to the deliberation at the 2025 Annual General Meeting of

the Company.Unrecovered Losses in the Parent Company as of the End of the Reporting Period and the

Impact thereof on the Company's Dividend and Other Matters

"□ Applicable" "√ Not applicable"

6. Risk statement regarding forward-looking statements

"√ Applicable" "□ Not applicable"

The forward-looking statements carried in this report such as future plans do not constitute any

substantial commitments of the Company to investors. Please be cautious about the investment

risks.

7. Whether there is any non-operating capital occupation by the controlling shareholder

and any other related party

No

8. Whether there is any external guarantee provided in violation of the prescribed

decision-making procedures

No

9. Whether there are more than half of the directors who cannot guarantee the

authenticity accuracy and completeness of the annual report disclosed by the Company

No

10. Significant risk statement

The Report has described the significant risks that may adversely affect the future development of

the Company and the realization of its business objectives in detail in "Section III ManagementDiscussion and Analysis”. Apart from this there are no other significant risks that the Company

needs to disclose separately.

11. Other

"□ Applicable" "√ Not applicable"

3 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Table of Contents

Chapter 1 Definitions ............................... 5

Chapter 2 Company Profile and Key Financial Indica....9

Chapter 3 Management Discussion and Analysis ........14

Chapter 4 Environmental Social and Corporate Gover...58

Chapter 5 Important Matters ........................ 87

Chapter 6 Share Changes and Shareholder Informatio. 105

Chapter 7 Bond-Related Information .................111

Chapter 8 Financial reporting ......................112

Financial statements signed and sealed by the legal representative of the Company

the officer in charge of accounting work and the officer in charge of the accounting

institution.Documents for Future

Original Audit Report bearing the seal of the accounting firm and the signatures of

Reference

the CPAs who have performed the audit.Originals of all company documents and announcements that are disclosed in the

newspapers designated by the CSRC during the Reporting Period.

4 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 1 Definitions

1. Definitions

Unless otherwise stated in the context the following words and terms in this report shall be construed as

follows:

Definition of frequently used words and terms

CSRC Securities Regulatory Refers to China Securities Regulatory Commission

Commission

SSE Stock Exchange Refers to Shanghai Stock Exchange

Company Law Refers to Company Law of the People's Republic of China

Securities Law Refers to Securities Law of the People's Republic of China

The Articles of Association Refers to The Articles of Association of Hangcha Group Co. Ltd.Hangcha Group the Company Refers to Hangcha Group Co. Ltd.Company

Zhejiang Hangcha Holding Co. Ltd. the controlling shareholder of the

Hangcha Holding Refers to

Company

HIIG Refers to Hangzhou Industrial Investment Group Co. Ltd. the state-owned legal

person shareholder of the Company

Hangzhou Forklift & Metal Refers to Hangzhou Forklift & Metal Working & Welding Co. Ltd. a subsidiary

Working & Welding of the Company

Hangzhou Forklift Frame Refers to Hangzhou Forklift Frame Co. Ltd. a subsidiary of the Company

Hangcha Bridge Box Refers to Hangzhou Hangcha Bridge Box Co. Ltd. a subsidiary of the Company

Hangzhou Hangcha KL Forklift Components Co. Ltd. a subsidiary of

KL Forklift Components Refers to

the Company

Hangcha Electric Appliance Refers to Hangzhou Hangcha Electric Appliance Co. Ltd. a subsidiary of the

Company

Hangcha Machinery Refers to Hangzhou Hangcha Machinery Processing Co. Ltd. a subsidiary of the

Company

Hangcha Casting Refers to Hangzhou Hangcha Casting Co. Ltd. a subsidiary of the Company

Hangcha Materials Refers to Hangzhou Hangcha Materials Trade Co. Ltd. a wholly owned

subsidiary of the Company

Hangcha Cab Refers to Hangzhou Hangcha Cab Co. Ltd. a subsidiary of the Company

Hangcha Aerial Platform Refers to Hangzhou Hangcha Aerial Platform Equipment Co. Ltd. a subsidiary

Equipment of the Company

Hangcha Machinery Equipment Refers to Hangzhou Hangcha Machinery Equipment Manufacturing Co. Ltd. a

subsidiary of the Company

Hangzhong Machinery Refers to Hangzhou Hangzhong Construction Machinery Co. Ltd. a subsidiary

of the Company

Zhejiang Hangcha Guozi Robotics Co. Ltd. a subsidiary of the

Guozi Robotics Refers to

Company

Baoji Hangcha Refers to Baoji Hangcha Engineering Machinery Co. Ltd. a subsidiary of the

Company

Hanhe Intelligent Refers to Hefei Hanhe Intelligent Logistics Technology Co. Ltd. a subsidiary of

the Company

Hangcha Tianjin New Energy Refers to Hangcha Group (Tianjin) New Energy Forklift Co. Ltd. a wholly

owned subsidiary of the Company

Hangcha Okamura Refers to Zhejiang Hangcha Okamura Intelligent Technology Co. Ltd a

subsidiary of the Company

Hangcha Precision Refers to Hangzhou Hangcha Precision Manufacturing Co. Ltd. a subsidiary of

the Company

Hangcha Yunrui Refers to Hangzhou Hangcha Yunrui Technology Co. Ltd. a subsidiary of the

Company

Zhejiang Hangbo Electric Refers to Zhejiang Hangbo Electric Drive Co. Ltd. a subsidiary of the Company

Zhejiang Zhichujia Refers to Zhejiang Zhichujia Material Handling Equipment Co. Ltd. a

5 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

subsidiary of the Company

Shanghai Hangcha Refers to Shanghai Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Wuxi Hangcha Refers to Wuxi Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Suzhou Hangcha Refers to Suzhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Wuhan Hangcha Refers to Wuhan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Nantong Hangcha Refers to Nantong Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Kunshan Hangcha Refers to Kunshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Taizhou Hangcha Refers to Taizhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Xuzhou Hangcha Refers to Xuzhou Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Beijing Hangcha Refers to Beijing Hangcha Forklift Co. Ltd. a subsidiary of the Company

Yancheng Hangcha Refers to Yancheng Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Gansu Hangcha Refers to Gansu Hangcha Forklift Co. Ltd. a subsidiary of the Company

Fujian Hangcha Refers to Fujian Hangcha Forklift Co. Ltd. a subsidiary of the Company

Taixing Hangcha Refers to Taixing Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Yantai Hangcha Refers to Yantai Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Jinan Hangcha Refers to Jinan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Qingdao Hangcha Refers to Qingdao Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Changchun Hangcha Refers to Changchun Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Nanning Hangcha Refers to Nanning Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Guiyang Hangcha Refers to Guiyang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Tangshan Hangcha Refers to Tangshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Xiangyang Hangcha Refers to Xiangyang Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Dongguan Hangcha Refers to Dongguan Hangcha Forklift Co. Ltd. a subsidiary of the Company

Henan Zhehang Refers to Henan Zhehang Forklift Sales Co. Ltd. a subsidiary of the Company

Heilongjiang Hangcha Refers to Heilongjiang Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Xi'an Hangcha Refers to Xi'an Hangcha Forklift Co. Ltd. a subsidiary of the Company

Guangzhou Zhehang Refers to Guangzhou Zhehang Forklift Co. Ltd. a subsidiary of the Company

Shenzhen Hangcha Refers to Shenzhen Hangcha Forklift Co. Ltd. a subsidiary of the Company

Foshan Hangcha Refers to Foshan Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Huizhou Hangcha Refers to Huizhou Hangcha Forklift Co. Ltd. a subsidiary of the Company

Inner Mongolia Hangcha Refers to Inner Mongolia Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Zhongshan Hangcha Refers to Zhongshan Hangcha Forklift Co. Ltd. a subsidiary of the Company

Yichang Hangcha Refers to Yichang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Zhanjiang Hangcha Refers to Zhanjiang Hangcha Forklift Co. Ltd. a subsidiary of the Company

Rizhao Hangcha Refers to Rizhao Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Qingyuan Hangcha Refers to Qingyuan Hangcha Forklift Co. Ltd. a subsidiary of the Company

Ningxia Hangcha Refers to Ningxia Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Lianyungang Hangcha Refers to Lianyungang Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Zhangjiagang Hangcha Refers to Zhangjiagang Hangcha Forklift Sales Co. Ltd. a subsidiary of the

Company

Yiwu Hangcha Refers to Yiwu Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Anhui Hangcha Refers to Anhui Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Dalian Zhehang Refers to Dalian Zhehang Forklift Sales Co. Ltd. a subsidiary of the Company

Guigang Hangcha Refers to Guigang Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Wuhu Hangcha Refers to Wuhu Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Zibo Hangcha Refers to Zibo Hangcha Forklift Sales Co. Ltd. a subsidiary of the Company

Zhumadian Hangcha Refers to Zhumadian Hangcha Forklift Co. Ltd. a subsidiary of the Company

6 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Hangcha Group (Tianjin) Forklift Sales Co. Ltd. a subsidiary of the

Hangcha (Tianjin) Sales Refers to

Company

Hangcha E-commerce Refers to Hangzhou Hangcha E-commerce Co. Ltd. a subsidiary of the

Company

Hangcha Leasing Refers to Hangcha Group Leasing Co. Ltd. a subsidiary of the Company

Zhejiang Hangcha Accessories Refers to Zhejiang Hangcha Accessories Sales Co. Ltd. a subsidiary of the

Company

Hangcha New Energy Refers to Hangcha New Energy Forklift (Wenzhou) Co. Ltd. a wholly owned

(Wenzhou) subsidiary of the Company

Hangcha Tianjin Financial Refers to Hangcha Group (Tianjin) Financial Leasing Co. Ltd. a wholly owned

Leasing subsidiary of the Company

Hangcha Property Management Refers to Hangzhou Hangcha Property Management Service Co. Ltd. a wholly

owned subsidiary of the Company

Hangcha Imp. & Exp. Refers to Zhejiang Hangcha Imp. & Exp. Co. Ltd. a subsidiary of the Company

Hangcha Thailand Refers to HANGCHA(THAILAND)CO. LTD. a wholly owned subsidiary of

the Company

Hangcha Global Service Refers to Zhejiang Hangcha Global Service Co. Ltd.Hangcha Manufacturing Refers to Hangcha Group Manufacturing (Thailand) Co. Ltd. a wholly-owned

(Thailand) subsidiary of the Company

Hangcha Brasil Refers to Hangcha Brasil Ltda. a wholly owned subsidiary of the Company

Hangcha Europe Refers to Hangcha Europe GmbH a wholly owned subsidiary of the Company

HC Forklift America Refers to HC Forklift America Corporation a wholly owned subsidiary of the

Company

Hangcha Forklift Canada Refers to Hangcha Forklift Canada Inc. a wholly owned subsidiary of the

Company

Hangcha Netherlands Refers to Hangcha Netherlands B.V a wholly owned subsidiary of the Company

HC Forklift Australia Refers to HC FORKLIFT AUSTRALIA PTY LTD a wholly owned subsidiary

of the Company

PT. Hangcha Indonesia Forklift a wholly owned subsidiary of the

Hangcha Indonesia Refers to

Company

Hangcha Japan Refers to Hangcha Japan Co. Ltd. a wholly owned subsidiary of the Company

Hangcha (Malaysia) Sdn. Bhd. a wholly owned subsidiary of the

Hangcha Malaysia Refers to

Company

Hangcha Forklift Vietnam Refers to Hangcha Forklift Vietnam Co. Ltd. a wholly owned subsidiary of the

Company

Hangcha Middle East Refers to Hangcha Middle East General Trading Fze a wholly owned subsidiary

of the Company

Hangcha America Smart Group Refers to Hangcha America Smart Group Logistics Solution Corporation a

Logistics sub-subsidiary of the Company

Hangcha Europe Rental Refers to Hangcha Europe Rental & Sales a wholly owned subsidiary of the

Company

Shanghai Hangcha Okamura Refers to Shanghai Hangcha Okamura Co. Ltd. a sub-subsidiary of the

Company

Guozi Intelligent Equipment Refers to Zhejiang Guozi Intelligent Equipment Co. Ltd. a sub-subsidiary of the

Company

Guozi Robotics Refers to Zhejiang Guozi Robotics Co. Ltd. a sub-subsidiary of the Company

Zhoushan Hangcha Refers to Zhoushan Hangcha International Financial Leasing Co. Ltd. a

sub-subsidiary of the Company

Cavohc Refers to Hangzhou CAVO Hangcha Intelligent Cleaning Equipment Co. Ltd. a

sub-subsidiary of the Company

Nanjing Hangcha Logistics Equipment Co. Ltd. a company with

Nanjing Hangcha Refers to

equity participation by the Company

Shijiazhuang Hangcha Refers to Shijiazhuang Hangcha Forklift Sales Co. Ltd. a company with equity

participation by the Company

Taiyuan Hangcha Refers to Taiyuan Hangcha Forklift Co. Ltd. a company with equity

participation by the Company

7 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Nanchang Hangcha Forklift Co. Ltd. a company with equity

Nanchang Hangcha Refers to

participation by the Company

Changsha Hangcha Refers to Changsha Hangcha Forklift Sales Co. Ltd. a company with equity

participation by the Company

Chongqing Hangcha Refers to Chongqing Hangcha Forklift Sales Co. Ltd. a company with equity

participation by the Company

Yunnan Hangcha Refers to Yunnan Hangcha Forklift Co. Ltd. a company with equity

participation by the Company

Shenyang Hangcha Refers to Shenyang Hangcha Forklift Sales Co. Ltd. a company with equity

participation by the Company

Zhejiang Huachang Hydraulic Machinery Co. Ltd. a company with

Huachang Hydraulic Refers to

equity participation by the Company

Okamura Transmission Refers to Hangzhou Okamura Transmission Co. Ltd. a company with equity

participation by the Company

Zhongchuan Transmission Refers to Changsha Zhongchuan Transmission Co. Ltd. a company with equity

participation by the Company

Henan Jiachen Refers to Henan Jiachen Intelligent Control Co. Ltd. a company with equity

participation by the Company

Eneroc New Energy Refers to Eneroc New Energy Technology Co. Ltd. a company with equity

participation by the Company

Zhongce Rubber Refers to Zhongce Rubber Group Co. Ltd. a company with indirect equity

participation by the Company

Zhongce Haichao Refers to Hangzhou Zhongce Haichao Enterprise Management Co. Ltd. a

company with equity participation by the Company

Zhejiang Hangli Dingsheng Machinery Co. Ltd. a company with

Hangli Dingsheng Refers to

equity participation by the Company

Hangcha Southeast Asia Refers to Hangcha Southeast Asia Co. Ltd. a company with equity participation

by the Company

Okamura Furniture Refers to Hangzhou Okamura Furniture Co. Ltd. a company with equity

participation by the Company

Yuan/Ten thousand yuan Refers to The Chinese currency of Renminbi/Tens of thousands of Renminbi

Reporting period Refers to January 1 2025–December 31 2025

Power-driven motor vehicles used for handling pushing pulling

Industrial vehicle Refers to lifting stacking or loading various goods which include forklifts tow

tractors stackers reach stackers etc.A variety of wheel loaders used for loading and unloading stacking

short-distance transport and heavy lifting of pallets of goods referred to

Forklift Refers to

as industrial vehicles in ISO/TC110 of the International Organization

for Standardization.Internal combustion forklift Refers to Forklifts powered by engines that run on diesel gasoline or liquefied

petroleum gas.Electric forklift Refers to Forklifts relying on batteries to power the motors that drive travel and

the hydraulic system to perform travel and handling operations.Forklifts with forks (or other replaceable devices) that can carry goods

Counterbalance forklift Refers to (with or without pallets). The load is cantilevered with respect to the

front wheels and is balanced by the mass of the vehicle.Tow tractor Refers to Industrial vehicles fitted with a traction linkage and specially designed

for pulling other vehicles on the ground.Attachment Refers to Load-bearing devices added to or in place of the forks of a forklift

which are used to perform a variety of operations.

8 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 2 Company Profile and Key Financial Indicators

1. Company Profile

Company Name in Chinese Hangcha Group Co. Ltd.Company Abbreviation in Chinese Hangcha Group

Company Name in English Hangcha Group Co. Ltd.Company Abbreviation in English None

Legal representative of the Company Zhao Limin

2. Contact Person and Contact Information

Sectary of the Board Representative of Securities Affairs

Name Jiang Yun

Securities Department9/F Building A

Contact Address Hangcha Science and Innovation Park No.

398 Shiqiao Road Gongshu District

Hangzhou City Zhejiang Province

Tel 0571-88141328

Fax 0571-88926713

Email jiangyun@zjhc.cn

3. Brief Introduction to Company Profile

Registered address of the Company No. 666 Xiangfu Road Lin'an District Hangzhou Zhejiang

Change history of registered address None

Office address of the Company No. 666 Xiangfu Road Lin'an District Hangzhou Zhejiang

Postal code of office address 311305

Website www.zjhc.cn

Email hcjt@zjhc.cn

4. Information Disclosure and Place for Inspection

Names and websites of media outlets for disclosure of

annual report of the Company Securities Times

Website of the stock exchange where the company

discloses its annual report http://www.sse.com.cn

Location for inspection of annual report of the Securities Department9/F Building A Hangcha Science and

Company Innovation Park No. 398 Shiqiao Road Gongshu DistrictHangzhou City Zhejiang Province

5. Stock Profile

Stock Profile

Class of stock Stock Exchange Stock name Stock code Stock name before

change

A-share Shanghai Stock Hangcha Group 603298 None

Exchange

6. Other Relevant Information

Item Pan-China Certified Public Accountants LLP (SpecialGeneral Partnership)

Domestic accounting firm appointed by Block B China Resources Building No.1366

the Company Office address Qianjiang Road Hangzhou Zhejiang Province

Accountants writing

signatures Huang Yuanxi Tang Zheren

9 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

7. Key Accounting Data and Financial Indicators for the Last Three Years

(1) Key accounting data

Unit: Yuan Currency:CNY

Key 2024 Increase/Decrease 2023

accounting 2025 compared with

data After adjustment Before adjustment previous year (%) After adjustment Before adjustment

Operating

income 17738651997.86 16749658536.93 16485830318.58 5.90 16298640931.47 16271834470.72

Total profits 2599106925.74 2459473196.09 2443735843.07 5.68 2087056319.78 2092860324.57

Net profit

attributable to

shareholders 2191315695.90 2012853136.12 2022025698.99 8.87 1715611831.59 1720313075.47

of the listed

company

Net profit after

deduction of

non-recurring

profits and

losses

attributable to 2148796228.95 1964865705.59 1988854674.00 9.36 1688027697.88 1687795537.69

the

shareholders

of the listed

company

(RMB)

Net cash flows

from operating 1683901243.07 1361574668.81 1336825600.12 23.67 1632087180.34 1621860863.22

activities

End of 2024 Increase/Decrease End of 2023

at the end of the

End of 2025 current Reporting

After adjustment Before adjustment Period compared After adjustment Before adjustment

with the end of the

previous year (%)

Net assets

attributable to

shareholders 11608341434.37 10116516467.53 10163895056.44 14.75 8619135437.22 8619865217.00

of the listed

company

Total assets 19709344651.12 16871203269.11 16362547960.72 16.82 13995079169.19 13894213061.92

(2) Key financial indicators

2024 Increase/Decrease 2023

Key financial indicators 2025 After Before compared with After Before

adjustment adjustment previous year (%) adjustment adjustment

Basic earnings per share (RMB/Share) 1.67 1.54 1.54 8.44 1.33 1.33

Diluted earnings per share (RMB/Share) 1.67 1.54 1.54 8.44 1.31 1.31

Basic earnings per share after the

deduction of non-recurring gains and 1.64 1.50 1.52 9.33 1.31 1.31

losses (RMB/Share)

Weighted average ROE (%) 20.34 21.68 21.64 Down by 1.34 22.17 22.17

percentage points

Weighted average ROE after the Down by 1.22

deduction of non-recurring gains and 19.95 21.17 21.29 percentage points 21.81 21.81

losses (%)

10 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Notes to the key accounting data and financial indicators of the Company for the last three years at the

end of the Reporting Period

"√ Applicable" "□ Not applicable"

In July 2025 Zhejiang Hangcha Guozi Robotics Co. Ltd. (renamed in August 2025) a controlled

subsidiary of the Company acquired 99.23% equity interest in Zhejiang Guozi Robotics Co. Ltd. by

way of capital increase and share expansion. Accordingly Zhejiang Guozi Robotics Co. Ltd. was

included in the scope of consolidation of the Company's consolidated financial statements during the

Reporting Period. As such acquisition constitutes a business combination under common control the

consolidated financial statements for the previous period were retrospectively adjusted in accordance

with the Accounting Standards for Business Enterprises.

2. The aforementioned earnings per share are calculated based on the latest share capital of the Company

as of December 31 2025.

3. The differences in the trailing digits of the quotients totals and sums of the addends after division in

the above table and this Report are due to rounding.

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

(1) Differences in net profit and net assets attributable to shareholders of the listed company in

financial reports disclosed in accordance with International Accounting Standards and China

Accounting Standards

"□ Applicable" "√ Not applicable"

(2) Differences in net profit and net asset attributable to shareholders of the listed company in

financial report disclosed in accordance with overseas accounting standards and China

Accounting Standards

"□ Applicable" "√ Not applicable"

(3) Explanation on the difference between the domestic and overseas accounting standards:

"□ Applicable" "√ Not applicable"

9. Key Financial Data for 2025 by Quarter

Unit: Yuan Currency: CNY

Q1 Q2 Q3 Q4

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

Operating income 4455524706.04 4846493118.57 4669589651.54 3767044521.71

Net profit attributable to

shareholders of the listed 431975966.52 687866792.47 632914648.33 438558288.58

company

Net profit attributable to the

shareholders of the listed

419311660.58663685128.27626749864.74439049575.36

company after the deduction of

non-recurring gains and losses

Net cash flows from operating 198826564.31 148587583.78 341311374.48 995175720.50

activities

11 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Explanation on the differences between the above quarterly data and what have been disclosed in past

periodic reports

"√ Applicable" "□ Not applicable"

In July 2025 Zhejiang Guozi Robotics Co. Ltd. a subsidiary of the Company acquired 99.23% equity

interest in Zhejiang Guozi Robotics Co. Ltd. through capital increase and share expansion. Since such

acquisition constitutes a business combination under common control the Company's relevant financial

data should be retrospectively adjusted and re-presented pursuant to the Accounting Standards for

Business Enterprises.

10. Non-recurring Gains and Losses Items and Amounts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Amount in Note (if Amount in Amount in

Non-recurring Gains and Losses Items

2025 applicable) 2024 2023

Gains or losses on disposal of non-current assets

(including write-off of provision for assets 478793.68 1064117.28 4545177.29

impairment)

Government grants included in the current profit or

loss (excluding those closely related to operating

activities of the Company and granted constantly 73249269.65 68958394.35 40699621.98

affecting the Company's profits or losses in accordance

with certain standards based on state policies)

Gain or loss from changes in fair value of value and

disposal of financial assets and liabilities held by

non-financial enterprises excluding those arising from -463932.23 898977.77 -13653244.56

hedging business related to the Company's normal

operating activities

Fund occupancy fees collected from non-financial 357568.72

enterprises and recognized in current gains or losses

Gain or loss on assets under entrusted investment or 1231024.48 41881.97 2205647.70

management

Reversal of impairment provision for accounts 4221892.32 612384.24 2233814.00

receivable subject to separate impairment testing

Net profit or loss of subsidiaries from the beginning of

the period to the date of consolidation arising from a -16004728.24 2597740.64 -5804004.79

business combination under the same control

Other non-operating revenue or expenditures -2939750.40 1856247.13 1409267.51

Less: Effect of income tax 10250998.57 11878791.40 4175472.28

Non-controlling shareholders' equity affected (after 7002103.74 16163521.45 234241.86

tax)

Total Amount 42519466.95 47987430.53 27584133.71

For items of non-recurring gains and losses defined by the Company that are of a significant amount and

not listed in the "Explanatory Announcement No. 1 on Information Disclosure for Companies Offering

Their Shares to the Public—Non-recurring Gains and Losses" as well as for items of recurring gains and

losses defined by the Company that are listed in the "Explanatory Announcement No. 1 on Information

Disclosure for Companies Offering Their Shares to the Public—Non-recurring Gains and Losses" as

non-recurring gains and losses reasons shall be specified."□ Applicable" "√ Not applicable"

12 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

11. Net profit after deducting the effect of share-based payments as may be optionally disclosed

by the Company with equity incentive plans or employee stock ownership plans

"□ Applicable" "√ Not applicable"

12. Items Measured at Fair Value

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Name Opening balance Closing balance Change in the period Effect on profit of

current period

Held-for-trading financial

85755439.73100347215.2314591775.501231024.48

assets

Receivables financing 294961893.92 472523678.61 177561784.69

Other non-current financial

26325621.6228104279.771778658.15

assets

Derivative financial 366815.63 -366815.63 366815.63

liabilities

Derivative financial assets 1635304.53 -1635304.53 -830747.86

Total Amount 409045075.43 600975173.61 191930098.18 767092.25

13. Other

"□ Applicable" "√ Not applicable"

13 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 3 Management Discussion and Analysis

1. Introduction to the Company’s Business During the Reporting Period

1. The major business of the Company

The Company's core business encompasses the research development manufacture and distribution of

a full spectrum of industrial vehicles and intelligent derivatives such as forklifts warehouse trucks

autonomous industrial vehicles and logistics handling robots as well as aerial work platforms dynamic

compaction machinery and cleaning equipment along with critical components. Dedicated to the

delivery of integrated smart logistics solutions and full-lifecycle aftermarket services for industrial

vehicles including parts selling equipment leasing and repair and maintenance services.

14 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

2. The business model of the Company

While deepening its core competencies across R&D manufacturing marketing and service the

15 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Company efficiently mobilized and combined upstream and downstream resources along the industrial

chain to forge an integrated business model. Anchored in its core business of industrial vehicles the

Company resolutely executes an innovation-driven strategy by concentrating its efforts on shaping new

quality productive forces featuring advanced technology superior efficiency and premium quality.Drawing upon the formidable technological innovation capabilities an excellent quality assurance

regime a highly resilient secure and efficient supply chain as well as a global marketing and service

network of extensive reach the Company has successfully repositioned itself as an industry-leading

provider of "high-end intelligent manufacturing + service-oriented manufacturing + comprehensive

solutions". In addition to the constant refinement of "direct sales + distribution + e-commerce" sales

architecture the Company has been actively building a highly responsive and professionally adept

global marketing pattern through wholly-owned subsidiaries authorized distributors franchise networks

and e-commerce platforms in a bid to furnish global customers with premium intelligent industrial

vehicles and bespoke smart logistics solutions.Explanation of New Important Non-core Businesses during the Reporting Period

"□ Applicable" "√ Not applicable"

2. Introduction to the Industry Where the Company Operates During the Reporting Period

Industrial vehicles with forklifts at the epicenter constitute the indispensable part underpinning

materials handling operations across every sector of the national economy and serve as the critical

backbone for the efficient functioning of logistics warehousing intelligent manufacturing and

commercial circulation. The industry's development is intimately correlated with macroeconomic

conditions industrial upgrading and global logistics landscape exhibiting the rigid demand and

enduring resilience. In 2025 the global industrial vehicle industry maintained a stable growth while the

domestic sector started a profound transformation characterized by structural refinement and

fundamental shift in growth drivers toward electrification intelligentization and globalization

propelling the industry's high-quality development. As the world's single largest market for industrial

vehicles China continued to command global leadership in industrial scale underpinned by a deep

market foundation and a firmly entrenched industrial base. According to statistics total annual sales of

powered industrial vehicles in 2025 once again exceeded the one-million threshold reaching 1451800

a 12.93% increase over 2024; domestic market sales amounted to 906800 units a year-on-year increase

of 12.65%; while export-oriented sales reached 545000 units growing 13.41% over2024 all indicators

attaining historic peaks that reflected robust industrial momentum. Considering the industry sales

structure by model electric forklifts have maintained good growth momentum. In contrast internal

combustion forklifts have seen a decrease of over 5% with a particularly significant decline of 9.34% in

the domestic market. The warehouse forklift has achieved the highest increase and the sales volume of

electric ride-on warehouse forklifts and electric walkie warehouse forklifts increased by over 18%

respectively with respective increases of 19% and 15% in the domestic and international markets.

16 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Trend of Annual Total Sales Volume of China's Industrial Vehicle Industry

From the perspective of product mix optimization the industry steps up its electrification across all

fronts. Electric forklifts on the defining advantages of energy conservation environmental compatibility

high operational efficiency low energy consumption and intelligent adaptability witnessed a soaring

market penetration securing a dominant position in the domestic market. Lithium battery forklifts

distinguished by stable endurance rapid recharge capability and zero emissions became the core driver

for electrification. In contrast traditional internal combustion forklifts buffeted by the new energy

substitution the environmental policy constraints and the upgrading demand of downstream customers

are experiencing a structural recalibration from sales volumes and sustained market share shrinkage

necessitating product iteration and structural optimization. Propelled by the iterative advancement of

new energy technologies the pervasive adoption of intelligent control systems and downstream

escalating demand for high-end equipment a portfolio of premium new-energy-powered and intelligent

products engineered to specific scenarios and integrated solution requirements has been progressively

displacing traditional low-end offerings as the core growth driver for industry sales volumes product

added value and industry profitability.The competitive landscape and developmental logic of the industry reveals two defining shifts: 1) The

ongoing optimization and recalibration of global trade pattern coupled with the implementation of

China's "dual carbon" strategy has been compelling the industry to accelerate green transformation and

value enhancement and driving competitive paradigm to fundamentally evolve from traditional

single-dimensional competition centered on product cost-performance toward comprehensive

full-value-chain competition encompassing "product + service + integrated solutions + industrial

ecosystem" which imposes greater demands on technological R&D prowess supply chain governance

capabilities global operational sophistication and full-lifecycle service proficiency. 2) The industry

concentration maintained its uptrend. Industry leaders endowed with core technological innovation

17 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

advantages global distribution capabilities well-established industrial ecosystem and full-value-chain

service system are continuously fortifying their competitive moats further accentuating their market

dominance. The industry is accelerating its progression toward standardization intensification and

specialization.In 2025 from a model structure perspective electric ride-on counterbalance forklifts (Class I vehicles)

achieved sales of 230000 units up 23.70% YoY; electric ride-on warehouse forklifts (Class II vehicles)

achieved sales of 35300 units up 18.77% YoY; electric walkie warehouse forklifts (Class III vehicles)

achieved sales of 866600 units up 18.61% YoY; and internal combustion counterbalance forklifts

(Class IV and V vehicles) achieved sales of 319900 units down 5.71% YoY. Lithium-ion forklifts

accounted for 46.52% of electric forklift sales with 562200 units sold. Lithium-ion counterbalance

forklifts accounted for 77.17% of electric counterbalance forklift sales. In 2025 the sales volume of

lithium-ion battery models in the three major electric forklift categories (Class I II and III) is as follows:

lithium-ion ride-on counterbalance forklifts of 177500 units lithium-ion ride-on warehouse forklifts of

13800 units and lithium-ion walkie warehouse forklifts of 371000 units. In terms of regional

distribution lithium-ion forklifts achieved domestic sales of 313200 units and export sales of 249000

units with the export sales accounting for 44.29% of the total.

3. Discussion and Analysis on Operations

The year 2025 marked the conclusion of the "14th Five-Year Plan" and the envisioning of the "15th

Five-Year Plan" blueprint and also represented a pivotal juncture for the Company to build upon

outstanding achievements and chart a course for the future towards our vision "to be the best forklifttruck manufacturer in the world”. Amid the increasingly complicated global economic landscape

intensifying geopolitical conflicts and the manifold uncertainties engendered by trade barriers the

industry experienced contracting demand and heightened competition manifesting a palpable dialectic

18 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

of "ferocious domestic rivalry with mounting external competition". Under the leadership of the Board

of Directors the Company deployed forward-looking holistic strategies and innovation-driven

initiatives with targeted measures to buck the prevailing headwinds. Adhering to the central theme of

high-quality development around the core impetus of "innovation-led navigation" the Company has

achieved remarkable breakthroughs across multiple domains including technological R&D market

expansion global expansion industrial collaboration intelligent manufacturing and digital

transformation. In 2025 the Company registered an operating revenue of RMB 17.739 billion with a

year-on-year increase of 5.90% and net profit attributable to shareholders of the listed company of RMB

2.191 billion a year-on-year increase of 8.87%. These results not only signified the successful

attainment of all annual operational targets but also represented a holistic leap in product

competitiveness brand influence and sustainable development markedly strengthening the Company's

core competitiveness and laying a solid foundation for high-quality development during the "15th

Five-Year Plan" period.Key Business Data for 2025

During the Reporting Period the company won numerous awards in many fields thanks to its excellent

comprehensive strength and innovative development achievements demonstrating its strong industrial

competitiveness and social influence. The Company was successively honored with recognitions

including National Service-Oriented Manufacturing Enterprise 2025 China's Top 500 Manufacturing

Enterprises 2025 World-Class Machinery Enterprise Certificate Zhejiang Export Famous Brand 2025

China’s Top 500 Listed Companies with High Credit the 14th China Listed Companies Value

Assessment Main Board Value Top 100 the 16th China Listed Companies Investor Relations

Management Tianma Award and the Sino-Securities Index "2025 Green and Low-Carbon Pioneer".During the Reporting Period the Company delivered outstanding performance across a spectrum of

honorary awards and industry recognitions while deepening the presence in key areas including product

R&D market expansion intelligent manufacturing and digital transformation thus building a

collaborative innovation system from various dimensions. With further integration of technological

innovation and industrial upgrading the Company accelerated the commercial application of new

technologies and products in both overseas and domestic markets yielding new breakthroughs in its

19 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

market footprint. The enhancement of smart manufacturing and digital management capabilities also

injected fresh momentum into the optimization of operation efficiency and management effectiveness

further reinforcing the Company's leading position in the global industrial vehicle sector.

1. Sustained R&D advancement to fully unleash innovation momentum

Capitalizing on the opportunity as the industry pivots toward intelligent ecological and international

operations the Company has anchored its strategy in the diversified demands of global markets. With a

product philosophy centered on high technological intensity high added value and high reliability the

Company steps up its innovation momentum with equal stress on product and technologies driven by

“technical R&D and global promotion” achieving a leap forward from isolated breakthroughs to

systemic leadership towards mid-to-high end of the industrial and value chains.During the Reporting Period the Company maintained a sharp focus on green intelligent and high-end

product evolution successfully introducing over 60 new products and technologies throughout the year

some of which have filled voids in both domestic and overseas markets offering robust support to the

execution of our high-end global and diversified growth strategy. Key highlights include: 1) X-Series

Hybrid Forklift (5t–10t).The world's first mass-produced 309V diesel-electric hybrid forklift with a

pioneering dual-power design that integrates diesel propulsion with lithium battery energy storage

featuring less fuel consumption by up to 40% compared to conventional internal combustion forklifts

effectively addressing a gap in the domestic market. 2) High-Voltage Lithium-Ion Off-Road Forklift

(1.5t–1.8t). An extension of high-voltage lithium product portfolio that delivers performance on par with

internal combustion off-road forklifts with extensive application in demanding sectors such as mining

and infrastructure construction. 3) Four-Wheel Narrow-Tread Lithium-Ion Dedicated Forklift (1.5t–4t).A pioneering lithium platform for narrow-tread configurations that ensures operational efficiency safety

20 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

and reliability engineered to meet the specialized requirements of the North American market. 4)

XA-Series Stand-On/Sit-On Pallet Truck. An innovative dual-mode operation design that seamlessly

balances high-throughput performance with ergonomic driving comfort. 5) X-Series Omnidirectional

Side-Loading Electric Forklift (2t–3t).A multi-purpose model supporting six driving modes for complex

environments such as narrow aisles and high-density warehousing with exceptional agility substantially

improving space utilization and operational flexibility.The Company has intensified its pursuit of core technological breakthroughs centering on new energy

intelligence and human-machine interface with breakthroughs in such pivotal areas as adaptive zone

control system highly environment-resilient on-board charger localized dual-drive transmissions VNA

truck aisle safety control steer-by-wire chassis technology safety detection system for container reach

stacker spreaders universal handheld unit VCU deployment an electric vehicle electronic/electrical

architecture and a next-generation intelligent interactive dashboard all dedicated to fortifying the core

competitiveness of our product lineup. Typical cases include: 1) VNA Aisle Safety Control Technology.A dual mechanism of self-recognizing aisle and end-of-aisle safety control technologies remarkably

enhances operation efficiency safety and intelligence in warehousing applications. 2) Vehicle Control

Unit (VCU). A self-developed mechanism that delivers integrated precision control over power delivery

safety protocols intelligent regulation and operator comfort through seamless synergy of intelligent

algorithms and safety-rated hardware. 3)Highly Environment-Resilient On-Board Charger. A module

engineered to overcome the challenges posed by extreme temperatures high humidity and high salinity

and fully accommodate diverse operating conditions across global markets.During the Reporting Period the Company substantially scaled investment in innovation and R&D

while expanding patent portfolio and standards development with a record of 142 patent applications

(including 118 invention patents) filed and 163 patents (including 93 invention patents) granted a dual

increase in both patent quantity and quality over the same period in 2025. The Company led the drafting

21 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

of 19 national and industry standards initiated three new industry standards including the Technical

Specification for High-Voltage Industrial Vehicles and acquired the approval to join the Humanoid

Robot Standard Working Group of the National Robot Standardization Technical Committee and

participated in the compilation of two national standards for humanoid robots. Of particular significance

the Company spearheaded the drafting of the national standard Greenhouse gases—Quantification

Methods and Requirements for Carbon Footprint of Products—Industrial Trucks which fills a critical

industry void and provides a scientific foundation for carbon emission reduction and carbon trading

within the sector underscoring our technological foresight in the green and low-carbon arena.With an acute insight over growth opportunities within future industrial ecosystems notably the

industrial Internet and robotics the Company draws upon profound technological advantages in

industrial vehicles and sustained investment in frontier technologies including artificial intelligence

cloud computing big data and the Internet of Things to initiate the R&D of robotic products centering

on material handling formulating a clearly defined industrial development roadmap. During the

Reporting Period our subsidiary Hangcha Guozi Robotics completed the acquisition of a controlling

interest in Guozi Robotics and then Guozi Robotics became a core business segment of Hangcha Guozi

Robotics which represented a strategically vital move to integrate premium resources along the

industrial chain and deepen technological footprint. .Guozi Robotics is home to a top-tier team of talents specialized in intelligent product software and

algorithms with its core members from the RoboCup world champions in the State Key Laboratory of

Industrial Control Technology of Zhejiang University. The team augmented our capabilities in software

algorithm and system-level solutions with R&D framework and forms a powerful complement to our

existing core strengths in hardware designing manufacturing quality management and supply chain

management empowering our intelligent transformation with full autonomy.In 2025 at the launchpad for intelligent strategy the Company unveiled the X1 Series logistics robot at

CeMAT ASIA in Shanghai. Trained through vast datasets from industrial logistics scenarios the robot is

built upon a dual-core driver of "efficient wheel mobility + flexible joint manipulation" with the former

featuring a travel speeds of 2 m/s based on highly adaptable wheeled chassis and complex terrains such

as narrow warehouse aisles and a millimeter-level navigation based on multimodal perception

integrating 3D vision and LiDAR while the latter achieving end-effector repeatability of ±0.1 mm and

comprehensive operational accuracy of ±5 mm through a bionic upper-limb architecture of 22

independent joints and exhibiting zero-shot generalization for handling such objects as totes and cartons

in particular flexible operations like transferring loading/unloading and depalletizing/palletizing. The

robot is adaptive to complex operations in warehousing and manufacturing effectively bridging the gap

left by traditional automation in flexible applications and affirming the Company's technological

foresight and industry leadership in the logistics robotics domain.

22 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

The Company with resolute focus on industrial logistics seized the valuable opportunities from the

intelligent logistics equipment sector. The global intelligent logistics market already surpassed the

threshold of trillion where a new generation of AI-powered handling logistics robots is approaching a

pivotal inflection point. China with its complete manufacturing and logistics infrastructure has emerged

as the world's largest application market and a nexus of technological innovation. Based on over six

decades of expertise in industrial vehicles and the advantage of a global service network the Company

is deeply committed to the industrial application of next-generation intelligent technologies in logistics

scenarios striving to establish itself as a benchmark for global logistics handling robots and intelligent

logistics solutions.The Company prioritizes intelligent product R&D as its core strategy developing full-stack capabilities

across four critical pillars: Model data hardware and scenario. In addition to our high-caliber model

development team of over 200 members the Company is now building a proprietary computing

platform and a comprehensive R&D toolchain. By integrating the existing core technological assets of

Guozi Robotics we developed the logistics vertical domain model HC-Robo 1.0 along with HC-Sim

digital twin simulation system established the TransEasy software framework and advanced a

three-year R&D plan targeting "out-of-the-box" deployment realizing an industrial-grade closed loop

encompassing perception decision-making and execution. By leveraging technological heritage and

scenario data assets in the industrial vehicle sector we have built an exclusive industrial data repository

that fuels algorithm iteration through a dual engine of simulation and field data boosting the

technological convergence of humanoid intelligent products and forklift robots and reinforcing strategic

implementation in the intelligent logistics arena.Our technological innovations are highly recognized by the industry with prestigious scientific andtechnological awards that attest to our formidable technical prowess. Particularly the project “KeyTechnologies and Industrialization of High-Performance High-Voltage Electric Forklifts” was certified

by the appraisal committee led by academicians as having achieved "world-leading overall technology"

23 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

and won the Third Prize of the Science and Technology Progress Award of Zhejiang Province; the

project “45-Ton Highly Adaptable High-Voltage Lithium-Ion Container Reach Stacker” was recognizedas a the first-of-its-kind equipment within the province; the project “Research and Application of KeyTechnologies for 1.5t–2t Lithium-Ion Dedicated Mini Pallet Trucks” won the First Prize of the ZhejiangMechanical Industry Science and Technology Award; and the project “X1 Series Wheeled HumanoidLogistics Robot” was granted the Zhejiang Robot Annual Product Award. The Company led theapplication for the 2026 Zhejiang "Pioneer" Science and Technology Program titled “Humanoid RobotMachine for Precise and Dexterous Operations and Typical Industrial Application Demonstration”

securing more policy and resource support for advanced technology R&D and industrial application.

2. Agile Response to Market Reform with Steady Expansion of Market Share

In the face of intensely competitive industry landscape the Company adheres to a core marketing tenet

of "defending market share over short-term pricing". By pioneering innovative marketing models

refining channel architecture and elevating customer service standards the Company stable growth in

domestic sales achieved breakthroughs in export markets and realized leapfrog expansion in the rental

business.Guided by the objective of "high-quality development" our sales organization has been deepening its

regional penetration while accelerating product portfolio transformation to support channel construction.Electric forklift sales secured the top position featured by the outstanding distribution outcome of the

XA series substantial sales of A-series MINI and competitive edge of Internal combustion trucks in the

existing market through exclusive direct-sales and dynamic incentive policies.The Company capitalized on the emerging opportunities in the rental market to drive the integration of

rental and sales operations and build a holistic model encompassing "rental + sales + spare parts +

service". The rental business generated an annual revenue of RMB 580 million an 85% year-on-year

surge with coverage extending across 30 provinces municipalities and autonomous regions nationwide

and serving a customer base exceeding 3000. In terms of business development we forged long-term

partnership with logistics giants such as SF Express and Cainiao while rolling out flexible solutions

tailored to small and medium-sized enterprises (SMEs) significantly scaling the rental business with key

accounts as the primary growth driver. On the operational management front we built a dedicated rental

vehicle dispatch platform shortening maintenance response time to two hours or less for customersdeveloping a cycle where "rental boosts sales and sales fuel rental growth”.

24 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

We have built a dual-cycle brand communication ecosystem characterized by "internal-external synergy

and omni-channel coverage". Digital media marketing strategic exhibition participation and open-day

events were designed to amplify brand visibility and outreach efficiency delivering robust market

support for our business growth.

3. Extend Global Reach for Leapfrog Growth in International Business Operation

During the Reporting Period the Company under the overarching theme of "overseas operation

capability building + structural growth" has been propelling its overseas operations from a

25 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"sales-centric" to an "operations-centric" paradigm with an institutionalized process-empowered and

data-driven management system taking initial shape. The Company also achieved a phased leap from"proof of concept" to "scalable replication” in the new rental business model positioning overseas

markets as a core engine in the Company's growth trajectory.The Company yielded substantial results in global business development with the establishment of theglobal operation pattern of "one core base + N regional hubs”. Following the commencement of

construction in April 2025 the Thailand manufacturing base was basically completed with the main

structure by the year end and expected to start operation in Q2 2026 with an annual planned capacity of

10000 forklifts and aerial work platforms. Our business-based subsidiaries in eight countries including

France Vietnam Malaysia and Japan were inaugurated. By the close of 2025 the Company had

established over 20 overseas subsidiaries worldwide forging an efficient global service network in

collaboration with more than 300 dealers marking a transformative upgrade of overseas marketing and

service network from broad-based planning to precision operations as an impetus for global expansion.

26 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

During the Reporting Period the Company registered an overseas product sales exceeding 120000 units

representing a year-on-year growth of over 27% with electric industrial vehicles accounting for over

77% of exports and overseas revenue climbing to 43.38%. Bu precisely addressing the demands of key

account the Company became the supplier of several international industry leaders such as Coca-Cola

Tesla Holcim and Saint-Gobain. External projects served as critical pillars: The Manitou project in

France registered significant growth; the MG off-road vehicle project in Italy advanced to the batch

promotion stage; and the Taylor large truck project in the U.S. established standardized service protocols

enhancing responsiveness and driving a substantial uptick in sales of large trucks and port machinery.

27 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Notably a major milestone was achieved during the Reporting Period with the shipment of over 350

large-tonnage forklifts to the Southeast Asian region.

4. Diversified Industrial Structure to Fully Unleash Synergies

Anchored in the core industrial vehicle business the Company has strategically deepened the presence

in emerging sectors involving intelligent logistics new energy lithium batteries and core components to

foster coordinated development across the entire industrial chain while developing the competitive

"Hangcha Ecosystem" where all business segments advance in concert with mutual complement.During the Reporting Period Hangcha Guozi Robotics acquired Guozi Robotics through capital increase

and share expansion further strengthening our R&D capabilities in intelligent logistics system building

and product R&D while rounding out our mobile robot product matrix. Our product portfolio now

covers system integration AGV/AMR intelligent warehousing equipment and inspection robots under

a dual-driver pattern of "hardware + solutions" dedicated to fortifying the Company's overall

competitiveness and industrial added value. Following the acquisition Zhejiang Hangcha Guozi

Robotics Co. Ltd. as the main carrier for the Company's intelligent logistics business generated

revenue approaching RMB 1 billion in 2025 with contract value for intelligent logistics solutions

surging substantially over 2024 maintaining our leadership in China's unmanned forklift-type

AGV/AMR segment. The Company has established a comprehensive AGV and AMR product matrix

powered by the GRACE core dispatch system that support operation among different machinery in

collaboration secured orders from prominent enterprises across the power automotive and FMCG

sectors and delivered several landmark projects at home and abroad. The newly commissioned

intelligent manufacturing base continues to ramp up capacity further consolidating our market

advantage in intelligent logistics solutions.With the expedition of independent and controllable high-end supply chain system our capabilities in

the in-house R&D and manufacturing of core components have been reinforced. Hangcha Electric

developed over 2000 lithium battery varieties and acquired numerous international domestic and

industry certifications. Daily lithium battery production capacity scaled to 400 units while the

28 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

warehousing and wiring harness production systems were upgraded with digital empowerment. Zhejiang

Hangbo Electric Co. Ltd. (“Hangbo Electric Drive”) completed the conversion and validation of 19

Enpower motor models developed eight products and set up five automated production lines achieving

an annual capacity of 75000 units. Cloudree primarily engaged in the sales manufacturing and

creation of chargers developed a total of 162 products throughout the year to support the marketing of

complete vehicles for the Company. During the Reporting Period the Company through efficient

synergy within the "Hangcha Ecosystem" expanded and renovated the Qingshan Industrial Park and

Hengfan Science and Technology Park to improve in-house capabilities for structural components

driving the upgrade of new energy power battery drive motor and motor controller as well as the

intelligent logistics solutions. The combo of resource integration technological breakthroughs and

ecosystem synergies also contributed to the establishment of a modern industrial landscape with

independent and controllable core components as the foundation for efficient industrial chain

connectivity.

5. Digital-Physical Upgrading for Production Efficiency Enhancement

Starting from technology transformation the Company pioneered intelligent factory development by all

means such as artificial intelligence smart manufacturing technologies and intelligent equipment to

architect a responsive high-yield and synergistic smart production line ecosystem.Hangcha Hengfan Science and Technology Park (Phase IV) with a capital investment exceeding RMB

100 million started operation yielding 10000+ annual units of AGV/AMR fleets inspection robots

stacker cranes and intelligent conveying systems. The efficient integration of R&D manufacturing and

system significantly enhanced capacity assurance and delivery precision for intelligent logistics

solutions establishing the cornerstone for end-to-end smart logistics offerings. In January 2026 Shiqiao

Science and Technology Innovation Park industrial was put into operation with optimized functions

depicting a well-defined growth trajectory.The "machine-for-human" substitution contributed to the world’s largest standalone productivity of

400000 units per year and a top-tier flexible manufacturing system accommodates 10000+ bespoke

configurations. Structural component lines became fully automated in feeding and welding; painting

operations were completed autonomously via robotic systems; and the assembly lines were armed with

traceable human-robot collaboration. Thanks to the "intelligent transformation" we engineered an

end-to-end digital workflow from order to delivery: MES enables real-time visual production

orchestration; IoT & digital twins power proactive equipment maintenance; and AS/RS-AGV synergy

empowers millimeter-perfect material routing.

29 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Digital transformation to boost management efficiency revolution

The Company has built an intelligent manufacturing architecture covering the whole value chain upon

five digital pillars - digital business operations digital process management digital administration

digital marketing and digital service.Our RMB 100+ million industrial Internet platform has been running in full swing. With SAP as its core

infrastructure the platform integrates PLM CRM MES and WMS systems that enable seamless

workflow and data transmission within different sections of the Group. With full-element connectivity

across 2000+ intelligent devices it serves as the central nervous system for enterprise-wide digital

transformation.During the Reporting Period the Company completed the data center the Group which established

infrastructure for future IT evolution and localized AI deployment. While advancing AI framework

construction the Company has been depicting vertical knowledge graph of industrial vehicles in a bid to

increase R&D efficiency and empower manufacturing optimization precision marketing and intelligent

aftermarket service.

30 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

4. Core Competencies Analysis for the Reporting Period

"√ Applicable" "□ Not applicable"

During the Reporting Period the Company capitalized on the pivotal shift of the automotive sector

toward green intelligent and high-end solutions. Drawing on the specialized expertise and sustained

innovation for the past five decades the Company focused on six core dimensions namely technology

R&D industrial deployment market expansion intelligent manufacturing ecosystem integration and

talent culture to erect integrated competitive barriers spanning R&D innovation full-chain

manufacturing global marketing and services and smart logistics integration. Backed up by

industry-leading technological capabilities full-chain integration and global operational competence

the Company has reinforced its market leadership providing robust support for high-quality growth

global expansion and intelligent transformation with core competitive edges to be strengthened.

1. Product R&D and intelligent technology integration

Anchored in the green intelligent and high-end transformation the Company adheres to the R&D

philosophy of philosophy of "targeting benchmarks surpassing competitors and developing the world'sbest forklift products” and has built a technological innovation system characterized by "one core two

wings and comprehensive coordination" thus cementing our R&D leadership. The Company draws on

an array of high-level platforms such as the national enterprise technology center national accredited

laboratory national industrial design center national postdoctoral research station and several

provincial research institutes to form a systematic and full-chain R&D support framework thereby

providing infrastructure and talent essential for frontier technology breakthroughs and core product

iteration. We increased investment in key technologies with focus on the in-depth convergence of AI

new energy 5G and IoT with industrial vehicle application in green intelligence comfort and safety

high efficiency and reliability intelligent logistics and digital research and development and achieved

breakthroughs in hybrid power systems zone-mode adaptive control VNA aisle safety technology

steer-by-wire chassis and localized dual-drive transmissions accelerating the translation of R&D

31 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

outcomes into market-ready solutions. Leveraging sustained technological accumulation the Company

has assembled the most comprehensive new energy product portfolio with the 309V diesel-electric

hybrid forklift high-voltage lithium off-road forklift four-pivot small-wheelbase lithium forklift and

X-series omnidirectional lateral electric forklift making global or domestic debuts filling market gaps

and reinforcing the Company's new energy leadership.Constant R&D investments consolidated our dominance in electric forklift while accelerating business

operation in smart logistics and other strategic emerging businesses. Core technologies are rapidly

transitioning from lab to market with R&D serving as the central engine of transformation. The R&D

team has expanded steadily with a rising proportion of master's and doctoral degree holders and an

increasingly optimized talent structure which underpinned the Company's continued breakthroughs in

new energy intelligent systems and autonomous driving.

2. Advantages in new energy industry chain

The Company has forged deeply integrated and independently controllable industrial chain advantages

in new energy. Through a comprehensive ecosystem for core components a full coverage has been

achieved across battery electric drive and electric control technologies. In hydrogen energy the

Company has yielded deep collaboration with partners Just Power with fruitful outcome including

delivery of hundreds of hydrogen forklifts and validation of hydrogen powertrain reliability for the

future extensive adoption. Strategic partnership with upstream battery leaders like EVE Energy evolvedfrom simple procurement to "ecological symbiosis” with focus on joint R&D and scenario creation on

advanced battery technology with intelligent equipment. The Company has also built a green evaluation

system for suppliers to motivate over 300 core partners in a collective upgrade fortifying our new

energy leadership and global expansion.

32 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

3. Global operation and brand strength

The Company has established a three-tier service network of "Headquarters – Overseas Subsidiaries –

Dealers" with over 20 overseas subsidiaries across Europe North America and Southeast Asia and

over 300 authorized dealers worldwide an efficient coverage of key global markets. Supported by

Hangcha Europe Rental & Sales Co. Ltd. Hangcha Middle East and a planned Thailand manufacturing

base with an annual capacity of 10000 units the Company has been reinforcing the capabilities of local

manufacturing and rapid response to align with market demand. The partnership with global leaders

such as Coca-Cola Tesla Holcim and Saint-Gobain has markedly elevated the international standing of

"Hangcha" brand.

33 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

4. Intelligent manufacturing and digital transformation

Committed to the continued iteration of our “Future Factory” a pioneer in Zhejiang and in-depthempowerment of the full value chain the Company has launched "Future Factory 3.0” with aninvestment of hundreds of millions for upgrading. Through "5G+AGV Smart Logistics" “MESIntelligent Manufacturing Platform” and digital twin system we have achieved full-process automation

and data-driven control from blanking to assembly with key equipment networking exceeding 95%

order delivery cycles shortened by 40% and overall equipment effectiveness amounting to 85%. Our

“Industrial Internet Platform” has become a provincial key platform integrating PLM and WMS for

full-lifecycle digital management. In AI application the Company employed multimodal technology to

build a vertical knowledge graph for industrial vehicles that encompass vehicle parameters operational

34 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

data and customer behavior shifting aftermarket service mode from reactive response to proactive

prediction featuring a significant increase of diagnostic accuracy and service efficiency. Data

accumulated from various terminals fuels continuous iteration of intelligent industrial vehicles and

robots accelerating the transition from traditional equipment manufacturer to full-scenario smart

logistics provider.

5. Smart logistics solution integration

The Company has built full-stack capability from core hardware to intelligent systems with in-depth and

scenario-specific deployment. The 2025 global launch of the X1 series logistics robot marked a strategic

milestone for a highly coordinated "hand-foot-eye-brain" operation under unstructured conditions with

millimeter navigation precision hence a great breakthrough in the upgrade to full-scenario smart

logistics solutions. Through in-depth integration with Guozi Robotics our smart logistics segment has

achieved a quantum leap in both scale and quality forming a dual-wheel drive of "hardware + solutions".Our product portfolio covers AGVs/AMRs intelligent warehousing inspection robots and system

integration with benchmarks established across over 20 industries like new energy and automotive

highlighting the great leap from single device supply to replicable industry benchmarking.

35 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Cultural leadership and talent development

After six decades of accumulation and two decades of renovation the Company has effectively

combined a market-driven and flexible employment mechanism with systematic standardized

management and a deep humanistic ethos towards the mission to "Make material handling easier" the

vision "To be the best forklift truck manufacturer in the world" the core values of "Integrityresponsibility sharing” the spirit of “Progressive practical creative harmonious” and the "family"

culture that "Hangcha is our home built by all serving all loved by all". Leaders set the example to

foster the philosophy of accountability pioneering innovation and collaborative unity with cultural

cohesion anchoring enterprise development. The Company holds annual skill competitions to celebrate

craftsmanship and enrich employee life further strengthening team spirit and sense of belonging

making the “family” culture a key engine for our innovation and progress.The Company regards talent as its primary resource while shaping a global multi-level empowerment

system to underpin high-quality development and world-class business building. While refining

36 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

transnational talent incentive and training mechanism the Company has dispatched outstanding

management and technical talents to overseas subsidiaries in Vietnam Japan Malaysia and Indonesia to

strengthen localized operations; optimized the independent evaluation system for intermediate

professional titles in special equipment engineering and accelerated the recruitment and cultivation of

advanced innovative talent under the support of National Postdoctoral Research Station and Zhejiang

University; initiated the "Star Plan" program to deepen industry-education integration for the

development of high-skilled professionals in smart logistics and aftermarket service; and set up an

independent professional skill evaluation system across seven professions covering skill training and

certification in pursuit of high-quality industrial workforce. The advanced cultural philosophy and talent

empowerment strategy significantly enhanced the loyalty satisfaction and sense of belonging and

strengthened internal dynamism and core competitiveness offering robust value guidance cultural

cohesion spiritual impetus and talent assurance for global expansion and intelligent transformation.

5. Main Operating Results during the Reporting Period

For the Reporting Period the Company achieved an operating income of RMB 17.739 million

representing a YoY increase of 5.90% net profit attributable to shareholders of the listed company of

RMB 2.191 million a YoY increase of 8.87% and net profit after deduction of non-recurring gains and

losses attributable to the shareholders of the listed company of RMB 2.149 million a YoY increase of

9.36%.

(1) Main Operating Results

1. Analysis of changes in related items of income statements and cash flow statements

Unit: Yuan Currency: CNY

Item Current period cumulative Preceding period Change (%)

comparative

37 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Operating income 17738651997.86 16749658536.93 5.90

Operating cost 13342717775.81 12775733409.22 4.44

Selling expenses 889497442.79 751517469.51 18.36

Administrative expenses 488776232.52 425264957.02 14.93

Financial expenses 6557982.24 -37979616.30 N/A

R&D expenses 858946791.62 817491897.92 5.07

Net cash flows from operating activities 1683901243.07 1361574668.81 23.67

Net cash flows from investing activities -554696292.21 -463213874.23 N/A

Net cash flows from financing activities -944445772.66 -680831617.02 N/A

Reason for change in operating income: N/A

Reason for change in operating cost: N/A

Reason for change in selling expenses: N/A

Reason for change in administrative expenses: N/A

Reason for change in financial expenses: Mainly due to increase in interest income and changes in

foreign exchange rates.Reason for change in R&D expenses: N/A

Reason for change in net cash flows from operating activities: N/A

Reason for change in net cash flows from investing activities: N/A

Explanation of Changes in Net Cash Flows from Financing Activities: The change was primarily

attributable to an increase in dividend payments during the current period.Details of significant changes in business types profit composition or profit sources of the Company in

the current period

"□ Applicable" "√ Not applicable"

2. Income and cost analysis

"√ Applicable" "□ Not applicable"

During the Reporting Period the Company logged an operating revenue of RMB17.739 billion a

year-on-year increase of 5.90% and operating cost of RMB13.343 billion a year-on-year increase of

4.44%.

(1). Main operating results by industry product region and sales model

Unit: Ten thousand yuan Currency: CNY

Main operating results by product

Operating Gross

Increase/decrease Increase/decrease Increase/decrease

By product Operating cost profit in operating in operating cost in gross profit overincome

(%) income over the over the previous the previous year

previous year (%) year (%) (%)

Forklift and 1744649.05 1311604.29 24.82 5.77 4.58 Increase by 0.86

spare parts pp

Main operating results by region

Gross Increase/decrease Increase/decrease Increase/decrease

By region Operating Operating cost profit in operating in operating cost in gross profit over

income (%) income over the over the previous the previous year

previous year (%) year (%) (%)

Domestic 975132.17 778261.92 20.19 1.99 0.86 Increase by 0.89

pp

Overseas 769516.88 533342.37 30.69 10.97 10.51 Increase by 0.29

38 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

pp

Notes for main operating results by industry product region and sales model

None

(2). Analysis of production and sales volumes

"√ Applicable" "□ Not applicable"

Increase/decrease in Increase/decrease in Increase/decrease in

Main Production Sales Inventory

Unit production volume sales volume over inventory volume

products volume volume volume over the previous the previous year over the previous

year (%) (%) year (%)

Forklifts Unit 341447 334360 26141 22.02 19.41 37.19

etc.Notes for production and sales volumes

None

(3). Performance of significant purchase and sales contracts

"□ Applicable" "√ Not applicable"

(4). Cost analysis

Unit: Ten thousand yuan Currency:CNY

By product

Change in

Proportion Proportion amount in

Amount for of total cost Amount over of total cost the current

By product Cost the current in the the same in the same Information

components period of the period overperiod current period last Note

previous year the same

period (%) year (%) period last

year (%)

Forklifts etc. Raw materials 1198881.65 92.87 1113029.40 92.97 7.71

and accessories

Forklifts etc. Labor and 42657.22 3.30 35852.78 2.99 18.98

and accessories wages

Forklifts etc. Depreciation 8296.49 0.64 7714.61 0.64 7.54

and accessories

Forklifts etc.Energy 10403.76 0.81 8485.60 0.71 22.60

and accessories

Forklifts etc. Other 30714.03 2.38 32188.12 2.69 -4.58

and accessories

Notes for other information in cost analysis

None

(5). Changes in the scope of consolidation resulting from changes in equity interests in major

subsidiaries during the Reporting Period

"□ Applicable" "√ Not applicable"

(6). Details regarding significant changes or adjustments in the Company's business products

or services during the Reporting Period

"□ Applicable" "√ Not applicable"

39 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(7). Key clients and suppliers

Customers or suppliers controlled by the same controller are presented on a consolidated basis as a

single customer or supplier unless being controlled in effect by the same state-owned asset management

authority.Explanation of the Presentation of the Following Customer and Supplier Information on a Consolidated

Basis under the Same Control

None

A. Major Sales Customers and Major Suppliers for the Company

"□ Applicable" "√ Not applicable"

Sales to the top five customers amounted to RMB115243.55 accounting for 6.50% of total annual sales

among which sales to related parties within the top five customers was RMB0 accounting for 0% of the

total annual sales.Purchases from the top five suppliers amounted to RMB279426.40 accounting for 20.30% of total

annual purchases among which purchases from related parties within the top five suppliers was

RMB120605.67 accounting for 8.76% of the total annual purchases.B. During the Reporting Period the proportion of sales to a single customer exceeds 50% of the

total or there are new customers or a heavy reliance on a few customers among the top 5

customers

"□ Applicable" "√ Not applicable"

During the Reporting Period the proportion of purchases from a single supplier exceeds 50% of

the total or there are new suppliers or heavy reliance on a few suppliers among the top 5 suppliers

"□ Applicable" "√ Not applicable"

C. Delisting Risk Warning or Other Risk Warnings to the Company’s Shares During the

Reporting Period

Top Five Sales Customers

"□ Applicable" "√ Not applicable"

Top Five Suppliers

"□ Applicable" "√ Not applicable"

D. Revenue from Trading Business during the Reporting Period

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Changes in operating

Trading Business Operating revenue for the Operating revenue for the revenue for the current

current period previous period period vs the previous period

(%)

Trading business 16270.57 12820.99 26.91

Top five sales customers with trading business revenue exceeding 10% of operating revenue

"□ Applicable" "√ Not applicable"

Top five suppliers with trading business revenue exceeding 10% of operating revenue

"□ Applicable" "√ Not applicable"

40 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Other notes:

None

3. Expenses

"√ Applicable" "□ Not applicable"

Unit: RMB 10000 Currency: RMB

Amount for Preceding period

Item the current comparative Change (%) Reason for change

period

Financial 655.80 -3797.96 N/A Mainly due to decrease in interest income and

expenses changes in foreign exchange rates.

4. R&D investment

(1). R&D investment

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

R&D investment as expenses in the current period 858946791.62

R&D investment as capital in the current period

Total R&D investment 858946791.62

Proportion of total R&D investment to Operating 4.84

income

Proportion of R&D investment as capital

(2). R&D personnel

"√ Applicable" "□ Not applicable"

Number of R&D personnel 1337

Proportion of number of R&D personnel to total number of employees (%) 18.48

Educational background of R&D personnel

Educational background category Personnel by educational background

Doctor 2

Master 153

Bachelor's degree 703

Junior college 327

Senior high school or below 152

Age composition of R&D personnel

Age composition category Personnel by age composition

Younger than 30 (excluding 30) 553

30 - 40 (including 30 excluding 40) 494

40 - 50 (including 40 excluding 50) 203

50 - 60 (including 50 excluding 60) 80

60 and elder 7

(3). Notes

"□ Applicable" "√ Not applicable"

(4). Reasons for material changes in the composition of R&D personnel and their impact on the

Company's future development

"□ Applicable" "√ Not applicable"

41 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

5. Cash flows

"√ Applicable" "□ Not applicable"

Unit: RMB 10000 Currency: RMB

Amount for Preceding Change

Item the current period (%) Notes

period comparative

Primarily attributable to the increase in

Receipts of tax refund 94745.26 70190.80 34.98 export tax rebates received during the

current period.Primarily attributable to the increase in

Cash payments for taxes and 104042.98 76997.00 35.13

rates value-added tax paid during the current

period.Primarily attributable to the increase in cash

Cash receipts from withdrawal received from the redemption of wealth

of investments 18506.50 3540.26 422.74 management products during the current

period.Cash receipts from investment Primarily attributable to the decrease in1358.78 3030.36 -55.16

income dividends received from associates during

the current period.Net cash receipts from the Primarily attributable to the decrease in

disposal of fixed assets

981.27 1968.25 -50.15 gains on disposal of fixed assets during the

intangible assets and other current period.long-term assets

Net cash receipts from the Primarily attributable to the increase in cash

disposal of subsidiaries & other 282.28 100.00 received from the disposal of any

business units sub-subsidiary during the current period.Primarily attributable to the decrease in

Other cash receipts related to 42.89 539.36 -92.05 amounts recovered from fixed assets leased

investing activities out under finance leases during the current

period.Cash payments for investments 21470.07 9864.43 117.65 Mainly due to increase in scale of wealth

management in current period.Primarily attributable to the absence of

Other cash payments related to 176.22 -100.00

investing activities relevant business activities during the

current period.Cash receipts from absorbing Primarily attributable to the increase in

7466.07 5001.20 49.29 capital contributions from minority

investments

shareholders during the current period.Cash payments for distribution Primarily attributable to the increase in

of dividends or profits and for 103002.93 59225.03 73.92 dividend payments during the current

interest expenses period.Other cash payments related to Primarily attributable to the increase in the45043.42 23085.99 95.11

financing activities repayment of bill financing during the

current period.Primarily attributable to the impact of

IV. Effect of foreign exchange

rate changes on cash & cash 1063.66 1635.43 -34.96 exchange rate fluctuations on foreign

equivalents currency-denominated assets held by the

Company.

(2) Notes for Significant Changes in Profits due to Non-Operating Activities

"□ Applicable" "√ Not applicable"

(3) Analysis of Assets and Liabilities

"√ Applicable" "□ Not applicable"

42 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

1. Assets and liabilities

Unit: Ten thousand yuan Currency: CNY

Proportion

Proportion Proportion of change in

of closing of closing closing

Closing balance of Closing balance of

balance of balance of balance ofItem Name the current the previous

the current the previous the current

Notes

period period to period period to period to

total assets total assets that of the

(%) (%) previous

period (%)

Primarily attributable to the

Derivative 163.53 0.01 -100.00 settlement of forward foreign

financial assets exchange contracts during the

current period.Mainly due to increase in

Receivables 47252.37 2.40 29496.19 1.75 60.20 unendorsed bankers'

financing acceptance bills retained at the

end of the current period.Primarily attributable to the

Long-term

10982.20 0.56 8289.35 0.49 32.49 expansion of the financial

receivables leasing business during the

current period.Primarily attributable to the

transfer of completed

construction in progress and

Fixed assets 324412.22 16.46 220271.04 13.06 47.28

the increase in leasing

activities during the current

period.Primarily attributable to the

Construction in conversion of construction in

progress 11595.40 0.59 58483.70 3.47 -80.17 progress to fixed assets during

the current period.Mainly due to increase in

Right-of-use assets 25716.32 1.30 17462.65 1.04 47.26 housing lease and lease terms

in the current period.Primarily attributable to the

Deferred tax assets 15635.06 0.79 11682.84 0.69 33.83 increase in deductible

temporary differences arising

from leasing transactions.Short-term Primarily attributable to the

borrowings 80968.12 4.11 50378.22 2.99 60.72 increase in short-term bank

borrowings.Primarily attributable to the

Derivative

36.68 0.002 -100.00 settlement of forward foreign

financial liabilities exchange contracts during the

current period.Mainly due to increase in

Notes payable 169301.70 8.59 90216.63 5.35 87.66 bankers' acceptance bills issued

for settlement for materials in

the current period.Primarily attributable to the

Advances received 264.22 0.01 91.35 0.01 189.23 increase in advance receipts of

rental payments during the

current period.Other payables 8984.82 0.46 22642.14 1.34 -60.32 Primarily attributable to the

43 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

repayment of current accounts

during the current period.Primarily attributable to the

Non-current decrease resulting from the

liabilities due 4584.34 0.23 62979.88 3.73 -92.72 reclassification of long-term

within one year borrowings during the current

period.Long-term Mainly due to increase in

borrowings 49800.00 2.53 5471.71 0.32 810.14 long-term bank borrowings in

the current period.Mainly due to increase in

Lease liabilities 21640.11 1.10 14390.99 0.85 50.37 housing lease and lease terms

in the current period.Primarily attributable to the

Long-term

5006.37 0.25 457.90 0.03 993.34 increase in sale and leasebackpayables transactions during the current

period.Other Mainly due to changes in other

comprehensive income that can

comprehensive 2734.97 0.14 -415.45 -0.02 N/A

income be reclassified to profit or loss

in equity method.Primarily attributable to the

provision for special reserves

Special reserve 71.21 0.004 212.15 0.01 -66.43 less than the actual amount

applied during the current

period.Other notes:

None

2. Overseas assets

"√ Applicable" "□ Not applicable"

(1). Size

Where: The overseas assets were 259114.09 (Unit: Ten thousand yuan Currency: CNY) accounting for

13.15% of the total assets.

(2). Notes for the relatively high proportion of overseas assets

"□ Applicable" "√ Not applicable"

3. Major asset restrictions as of the end of the Reporting Period

"√ Applicable" "□ Not applicable"

Unit: RMB Currency: RMB

Item Book value at the end of the Reason for restriction

period

Cash and bank balances 40769564.91 Guarantee deposits foreign exchange derivative deposits

bank acceptance bill deposits performance bond

Fixed assets 46617155.54 Restrictions to sale and leaseback

4. Other notes

"□ Applicable" "√ Not applicable"

(4) Industry Operating Information Analysis

"√ Applicable" "□ Not applicable"

44 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

For details refer to the relevant information in "Section III Management Discussions and Analyses" of

the report.

45 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(5) Investment Analysis

Overall Analysis of External Equity Investments

"√ Applicable" "□ Not applicable"

The Company continued business expansion along the industry chain on its principal business while strengthening key business operation intelligent business

strategies and aftermarket service capabilities. In July 2025 Zhejiang Hangcha Guozi Robotics Co. Ltd. a subsidiary of the Company acquired 99.23% equity

interest in Zhejiang Guozi Robotics Co. Ltd. through capital increase and share expansion. During the Reporting Period the Company increased contributions

totaling RMB71 million to companies including Hangcha Electric Hangcha Leasing and Tianjin New Energy and invested RMB188 million in the establishment

of new entities such as Hangcha Manufacturing (Thailand) and Hangcha Europe Rental & Sales with investment for the year totaling RMB259 million.

1. Significant equity investments

"□ Applicable" "√ Not applicable"

2. Significant non-equity investments

"□ Applicable" "√ Not applicable"

3. Financial assets measured at fair value

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Gains and losses Cumulative fair

Asset category Opening balance from fair value value changes

Impairment in Purchase amount in Amount sold/redeemed

Other changes Closing balance

changes in the recognised in the current period the current period in the current period

current period equity

Other 388923771.97 347215.23 6160719601.69 5949015415.28 600975173.61

Total Amount 388923771.97 347215.23 6160719601.69 5949015415.28 600975173.61

Securities investment

"□ Applicable" "√ Not applicable"

Notes for securities investment

"□ Applicable" "√ Not applicable"

46 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Investment in private equity funds

"□ Applicable" "√ Not applicable"

Investment in derivative

"√ Applicable" "□ Not applicable"

(1). Investment in derivatives for hedging purpose during the Reporting Period

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Proportion of

Gains and Cumulative Book closing book

Book value at losses from fair value Purchase amount Sales amount in value at value to the

Type Initial investment the beginning fair value changes in the Reporting the Reporting the end Company's

amount net assets at

of the period changes in the recognised in Period Period of the

current period equity period the end of the

Reporting

Period (%)

Bank of Ningbo RMB Swap 167000.00 14359000.00 14526000.00

Bank of Ningbo RMB Swap 71400.00 14359000.00 14430400.00

Bank of Ningbo Forward Foreign Exchange 185955.50 35897500.00 36083455.50

Transactions

Bank of Ningbo Foreign Currency-to-Foreign Currency

35897500.0035897500.00

Options

China Merchants Bank Forward Foreign Exchange 43077000.00 -366815.63 366815.63

Contracts

Total Amount 43077000.00 -366815.63 791171.13 100513000.00 100937355.50

Significant changes in the accounting policies and

specific accounting principles of hedging business No significant changes

during the Reporting Period compared to the same

period in the previous year

Actual gains or losses during the Reporting Period The actual gains from derivative transactions undertaken for hedging purposes amounted to RMB79120 during the Reporting Period.Effect of hedging The Company mitigated foreign exchange market risks through foreign currency hedging. Exchange rate fluctuations during the

Reporting Period had no material adverse impact on the Company.

47 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Source of funds for investment in derivatives Self-owned funds

Position risk analysis and control measures for

derivatives during the Reporting Period (including but

not limited to market risk liquidity risk credit risk

operational risk legal risk etc.)

Changes in the market prices or the fair values of the

invested derivatives during the Reporting Period the

analysis of the fair values of derivatives shall disclose

the specific method used and the setting of relevant

assumptions and parameters

Whether it is involved in litigation (if applicable)

Date of announcement of the Board Meeting to approve

investment in derivatives (if any)

Date of announcement of the Shareholders' Meeting to

approve investment in derivatives (if any)

(2). Investment in derivatives for speculative purposes during the Reporting Period

"□ Applicable" "√ Not applicable"

Other notes:

None

4. Details on progress of major asset restructuring and integration during the Reporting Period

"□ Applicable" "√ Not applicable"

Opinions of Independent Directors

None

(6) significant asset and equity sales

"□ Applicable" "√ Not applicable"

(7) analysis of major companies with controlling or minor interests

"√ Applicable" "□ Not applicable"

48 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Details of main subsidiaries and equity participation companies that affect the Company's net profit by 10% or more

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Company name Type Principal business Registered capital Total assets Net assets Operating income Operating profit Net profit

Hangzhou Subsidiary Forklift mast production 5040.00 63328.97 15296.58 171903.39 2903.98 2837.03

Forklift Frame

Hangzhou Subsidiary

Forklift & Forklift structural

4000.0026185.899355.4478691.472295.272165.90

Metal Working component production

& Welding

Hangcha Bridge Subsidiary Forklift axle production 3000.00 19845.31 10496.02 92532.47 1885.79 1707.26

Box

Jinan Hangcha Subsidiary Forklift sales 1275.00 3676.55 3121.63 19838.30 936.73 679.07

Guangzhou Subsidiary Forklift sales 1100.00 5602.26 2106.66 23867.46 309.23 223.38

Zhehang

Shanghai Subsidiary Forklift sales 1300.00 12459.32 3226.69 25860.51 653.69 551.11

Hangcha

Hangcha Subsidiary Forklift sales 2070.00 248969.24 8973.89 696589.56 700.10 399.05

Imp.&Exp.Hangcha Subsidiary

Forklift casting production 4500.00 13373.86 8114.72 112545.44 406.13 304.22

Casting

Hangcha Subsidiary Forklift electrical

Electric component production 5000.00 37288.63 13846.59 117461.39 3652.43 3156.02

Appliance

Zhongce Equity Corporate management and

participation 350000.00 5411986.18 2593477.63 4495623.03 416914.31 403436.28Haichao equity investment

company

Acquisition and disposal information of subsidiaries during the Reporting Period

"√ Applicable" "□ Not applicable"

Acquisition and

Company name disposal method of Impact on overall production operation and performance

subsidiaries during

49 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

the Reporting

Period

This matter will not have an adverse impact on the production operation or financial position

HANGCHA FORKLIFT VIETNAM CO. LTD. New of the Company nor will it prejudice the lawful rights and interests of the Company and all

shareholders.This matter will not have an adverse impact on the production operation or financial position

HANGCHA MIDDLE EAST GENERAL TRADING FZE New of the Company nor will it prejudice the lawful rights and interests of the Company and all

shareholders.This matter will not have an adverse impact on the production operation or financial position

HANGCHA GROUP MANUFACTURING(THAILAND) CO. LTD. New of the Company nor will it prejudice the lawful rights and interests of the Company and all

shareholders.This matter will not have an adverse impact on the production operation or financial position

Zhejiang Zhichu Jia Material Handling Equipment Co. Ltd. New of the Company nor will it prejudice the lawful rights and interests of the Company and all

shareholders.This matter will not have an adverse impact on the production operation or financial position

Hangzhou Hangcha Property Management Service Co. Ltd. New of the Company nor will it prejudice the lawful rights and interests of the Company and all

shareholders.Other notes

"□ Applicable" "√ Not applicable"

(8) Structured entities controlled by the company

"□ Applicable" "√ Not applicable"

50 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Discussions and Analyses of the Company's Future Development

(1) Industry Landscape and Trends

"√ Applicable" "□ Not applicable"

1. Industry competition landscape

In 2025 in the face of global political and economic complexity and volatility as well as the challenges

of industrial chain restructuring China's industrial vehicle sector demonstrated remarkable resilience.While leading global production and sales the industry is undergoing a profound transformation from

scale expansion to value enhancement. Since the fundamental logic of competition has shifted decisively:

The homogenized "battle for volume" has given way to a "contest of value" where technology brand

equity service excellence and ecosystem synergy constituted the new battlegroundquot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524".Amid the accelerating concentration at a pronounced pace market resources are gravitating toward

industry leaders endowed with competitive edges forming a distinct pattern of "consolidation at theapex differentiation across regions”. Industry pacesetters armed with deep-rooted legacy formidable

R&D prowess refined channels and life-cycle service capabilities have erected formidable competitive

moats fortified by scale effects and bargaining power on the industry chain quot;

https://news.yiche.com/hao/wenzhang/105302407/"quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524". In contrast those bereft of distinctive

technologies or scale edge find their operation space constantly compressed as the forces of

consolidation and natural selection intensify rendering the polarization increasingly stark quot;

https://news.yiche.com/hao/wenzhang/105302407/". Such trend is also manifest on and through the

supply chain where vehicle manufacturers are imposing more stringent demands on the reliability

efficiency and local security of core components such as powertrain systems while suppliers possessing

proprietary core technologies and integrated solutions are seeing their comparative advantages

decisively pronounced quot; https://www.huaon.com/channel/trend/1101723.html".Cross-sector incursions and new contender participation are injecting fresh variables into the competitive

landscape. In such arenas as new energy and intelligent systems players from the passenger vehicle and

construction machinery domains are swiftly gaining traction by means of capital technology or

business model to mount challenges in specific segments compounding the intricacy and intensity of

market competition quot; https://www.bitauto.com/article/1003103896084/"quot;

http://field.10jqka.com.cn/20260126/c674300347.shtml" beyond product pricing and performance

extending to comprehensive value proposition of energy solution intelligent integration and

full-lifecycle service delivery. future success. In summation the industrial vehicle sector falls into a

paradigm where "the strong grow stronger" while "innovators forge new paths". A single pillar no longer

suffices to underwrite long-term viability and a systemic competitiveness pattern of technology product

portfolio supply chain integrity service sophistication and global operational acumen has emerged as

51 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

the decisive factor quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524".

2. Industry trends

As the global technological revolution and industrial transformation advance intensively and extensively

the industrial vehicles are growing towards digital ecological and intelligent momentum that injects

formidable vitality into the industry’s high-quality development. Digital intelligence new energy

transition and international shift constitute the defining threads of industry evolution driving the

continuous reconfiguration of product architectures business models and competitive frontiers quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524"quot;

https://auto.cri.cn/20251128/16f1421b-2c56-4e6b-9fbd-32e362e9739e.html".First the new energy transition is now driven by market demand with booming electrification across the

board. Propelled by the "dual carbon" strategy and the cost advantage of full lifecycle new energy

industrial vehicles have transitioned from policy-catalyzed adoption to market-demand proliferation quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524"quot; https://www.xd56b.com/m/view.php

aid =52579 ". In 2025 the electrification penetration rate of industrial vehicles continued its

upward trend represented by the displacement of lead-acid batteries by lithium-based alternatives and

the ongoing exploration of diversified technologies like hydrogen fuel cells in specific applicationscenarios forming a multi-energy architecture of "lithium as the mainstay hydrogen as the complement”

quot; https://www.huaon.com/channel/trend/1101723.html".quot;

https://www.huaon.com/channel/trend/1101723.html" The market space for conventional internal

combustion vehicles is projected to contract further with green low-carbon product configurations

becoming the prevailing norm within the industry quot; https://www.xd56b.com/m/view.php aid

=52579 ".Second intelligence technologies are transitioning from conceptual abstraction to scenario-specific

implementation as the linchpin of value creation. With the further fusion of AI with commercial

operation the industry shifted its focal point from baseline configuration to customized solutions to

operation efficiency and safety-specific applications in intelligence enhancement quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524". Intelligence is no longer a mere product

differentiator but a critical pillar for building defensible competitive barriers and executing the strategic

metamorphosis from equipment suppliers to comprehensive logistics solution providers quot;

http://dianzibao.cb.com.cn/html/2025-12/01/content_338741.htm div = -1 "quot;

https://www.xd56b.com/m/view.php aid =52579 ".Finally internationalization is undergoing a qualitative elevation from "product export" to "ecosystemexport” as the players worldwide are deeply engaged in system deployment. Confronted with

52 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

stock-based competition within the domestic market the overseas arena has become the major engine of

industry growth quot; https://www.bitauto.com/article/1003103896084/"quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524". In 2025 the internationalization

strategies of preeminent enterprises have transcended trade-based export pivoting toward the

establishment of an all-round ecosystem integrating indigenous R&D manufacturing in-market sales

service delivery and financial support quot;

https://finance.sina.cn/stock/relnews/hk/2025-12-30/detail-inheqqfn4224447.d.html vt =4&wm

=3049_0005632640601&cid =76524&node_id =76524"quot;

https://auto.cri.cn/20251128/16f1421b-2c56-4e6b-9fbd-32e362e9739e.html". Competition

priorities have ascended from price-centric rivalry to a comprehensive contest of brand resonance

technological standards promotion and industrial chain orchestration prowess thereby driving upwards

Chinese industrial vehicle brands along the global value chain quot;

http://dianzibao.cb.com.cn/html/2025-12/01/content_338741.htm div = -1 "quot;

http://field.10jqka.com.cn/20260126/c674300347.shtml".

(2) Company Development Strategy

"√ Applicable" "□ Not applicable"

Dedicated to the mission to “make materials handling easier make logistics Intelligent smarter” and thestrategy of “professional manufacturing brand-driven operation group-based management andinternational integration" the Company has been concentrating its strategic resources on six pivotal

vectors: New energy vehicles intelligent logistics systems aftermarket services construction machinery

core components and cleaning equipment. Upholding the corporate ethos of "progressive practical

creative harmonious" the Company is resolutely committed to value creation and societal contribution

striving with unwavering determination toward the realization of its aspirational vision: "To be the bestforklift truck manufacturer in the world.”

(3) Operational Plan

"√ Applicable" "□ Not applicable"

2026 marks the inaugural year of the "15th Five-Year Plan” of the Company with steadfast commitment

to its six strategic priorities guided by the overarching principle of "stabilizing growth optimizing

structure driving innovation and strengthening synergy". The Company will further empower its

high-quality development across the board through collaborative development of various sectors: New

energy vehicles lead the iteration of lithium battery and hydrogen energy products; smart logistics propel

the application of cutting-edge intelligent technologies like robotics; core components bolster in-house

mastery of the three core electric systems; aftermarket service optimization expedite the transition

toward full-lifecycle value delivery; global expansion intensify localization strategy while establishing a

growth engine centering on new energy for the global market.

1. Deepen Technological Innovation and Form New Quality Productive Forces

53 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Guided by the new energy strategy the Company will build a technological innovation system on

lithium battery hydrogen energy and hybrid power foundations with intelligent technology at its core

and globally coordinated distribution to place energy products on the industry's top tier. The Company

will leverage the opportunity presented by the Hengfan Science and Technology Park (Phase IV) to

enrich product matrix to expedite technological breakthroughs and development for intelligent products

and advance the strategic implementation and industrial upgrading of the smart logistics segment.

2. Accelerate Worldwide Business Expansion and Consolidate Global Competitive Advantages

The Company will maintain its dual-engine drive across domestic and international markets. In the

domestic market we will continue to optimize marketing workforce and achieve leapfrog development

in the aftermarket on leasing spare parts and services. In the overseas market we will further drive the

global deployment of products and technologies across such dimensions as brand momentum and

product portfolio.In building an agile and efficient global operation system the Company will push forward the operation

of the Thailand manufacturing base as a strategic pivot for international market expansion. Additional

overseas subsidiaries in underrepresented regions such as Central Asia the Middle East and Africa will

be established to further enhance international partnerships for the sustainability of our overseas lithium

battery joint venture.

3. Optimize Industrial Ecosystem and Strengthen Collaboration among Parks

The Company is expected to forge a highly synergistic industrial ecosystem among the three flagship

industrial parks in Qingshan Hengfan and Shiqiao: 1) Qingshan Innovation Park - Complete vehicle

R&D and high-end manufacturing; 2) Hengfan Science and Technology Park - Intelligent logistics

equipment and core components; 3) Shiqiao Innovation Park - Wellspring of frontier technology

innovation gateway for international business and showcase for the Company's corporate image. We

will step up the commercialization of innovation outcome and foster upstream-downstream industrial

chain integration to improve operational efficiency and industrial resilience.

4. Leverage Artificial Intelligence and Accelerate Transformation and Upgrading

Towards the strategic vision of becoming the world's foremost logistics equipment supplier the

Company is driving all-round upgrading across organizational structure technology R&D

manufacturing marketing and services. By consolidating the Group-wide resources and technical

expertise of our intelligent logistics segment the Company will establish an intelligent logistics research

institute an embodied AI research institute and a robotics innovation center and bring up to market

more competitive AGV AMR and inspection robot products for sustaining our industry leadership. We

will build a project management-centric capability framework covering the project management talent

through the Company and refine an end-to-end project delivery system. We will also advance the

construction and mass production of the embodied robotics pilot base develop a broader array of

intelligent logistics robots. Intelligent technologies will be harnessed to transform and upgrade our

conventional product lines including forklifts aerial work platforms and cleaning equipment while our

manufacturing marketing and service functions will be fully improved to support intelligent logistics

54 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

solutions.

5. Strengthen Talent Development and Fortify Talent Base

Guided by the talent-empowered enterprise initiative and in the principles of targeted talent acquisition

systematic development institutionalized retention and synergistic deployment the Company will

introduce more high-caliber interdisciplinary professionals in new energy and artificial intelligence

enhance full-cycle talent development system with more focus on the young and high-potential talent

and optimize incentive mechanism and career promotion system and enhance the collaboration across

different divisions. The Company is building a talent ecosystem fully aligned with industrial architecture

to elevate organizational vitality and innovation momentum to support sustainability.

6. Reinforcing Risk Management and Practice Social Responsibility

The Company will fortify the full-chain risk management framework by strengthening proactive

preemptive oversight of operation risks at home and abroad with more emphasis on mitigating

international trade barriers managing exchange rate volatility strengthening regulatory compliance of

overseas subsidiaries and formulating risk early-warning and response protocols. In terms of ESG

governance the Company will continue to implement the Sustainable Development (ESG) Management

Policy incorporating ESG requirements into both strategic decision-making and routine businesses

regularly publish bilingual ESG reports in both Chinese and English and safeguard the rights and

interests of employees in line with the philosophy of safety inclusivity and sustainability.

(4) Possible Risks

"√ Applicable" "□ Not applicable"

The Company's development is closely intertwined with the global macro-economy industry policies

market competition landscape and operation capabilities. In its way to global leadership for a good start

of the "15th Five-Year Plan" the Company is clearly aware of possible risks and challenges in future

operations to which purpose it has taken active measures.

1. Risks from external complexity and volatility

The current global economic recovery remains sluggish overall geopolitical conflicts continue to disrupt

the global economic and trade order uncertainties are highlighted in the macroeconomic policy

adjustments by major economies and international trade barriers are being intensified. In overseas

markets particularly strategically significant regions possible shifts in the business climate regulatory

frameworks and geopolitical conditions may engender material headwinds for the Company's

international expansion in operational integrity of overseas manufacturing facilities resilience of the

global supply chain and momentum of export activities. In domestic markets economy finds itself

navigating a pivotal inflection point of structural metamorphosis and high-quality development where

tectonic realignments in market demand might exert short-term compression on business performance.The Company will remain resolutely anchored to its innovation-driven strategy systematically

sharpening its core competitive edge through synergistic advances across management technology

marketing and production thereby fortifying its institutional resilience against risks. On the global

business landscape the Company will deepen its "localized operations + structural growth" doctrine to

55 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

prudently steward overseas production bases while aggressively setting footprints in high-potential

emerging markets such as Central Asia the Middle East and Africa. By shaping a global operation

landscape of "one core hub + N regional centers" the Company will nimbly navigate the labyrinth of

tariff and non-tariff barriers across different regions and effectively diversify away from the risk of

single-market concentration.

2. Risks from intensified industry rivalry and constant technological innovation

China's industrial vehicle sector continues to operate at a massive sales volume of one million units in

annual throughput with the ongoing electrification and intelligentization inexorably characterized by a

palpable dialectic of "ferocious domestic rivalry with mounting external competition". The increasing

homogenization of electric product offerings is fueling acute price compression while cross-sector

businesses and global energy powers are redoubling capital allocation toward new energy and intelligent

logistics dramatically boosting technological innovation. Should the Company prove unable to sustain

its technological leadership product iteration velocity and cost control edges its market share and

profitability profile could come under tangible strain.To address the risks the Company will deepen its "system primacy" R&D and innovation strategy tobuild competitive moats through the frontier intelligent technologies. Towards the “New EnergyStrategy” the Company will continuously curate and refine a diversified new energy product portfolio

covering lithium battery hydrogen fuel cell and hybrid powertrain solutions to maintain its technical

performance benchmark and market competitiveness indelibly ensconced within the industry's apex tier.Meanwhile the Company will harness intelligent manufacturing and our own IoT platform to elevate

production agility efficiency and cost performance and deepen customer entanglement and augment

full life-cycle value through a "hardware + solutions" combo for intelligent logistics under a

sophisticated aftermarket service ecosystem thereby consolidating and extending its market hegemony.

3. Risks in volatile exchange rate and cross-border trade settlement

With the continued expansion of the Company's overseas sales its international business involve an

increasing number of currencies in settlement where the exchange rate volatility may directly impact the

gains and losses from exchange rate conversion and operating results. Against a backdrop of intractable

geopolitical conflicts and changing monetary policies the heightened unpredictability of currency

movements may materially impinge upon profitability.To address the risks the Company will maintain vigilant over the trend of major currencies and the

evolution of monetary policies buttress its exchange rate risk early-warning architecture and governance

mechanisms deploy a calibrated array of financial instruments for hedging purposes to immunize

against undue exposure. In the international trading the Company will proactively champion settlement

in Renminbi or currencies exhibiting relative stability while embedding exchange rate risk-sharing

covenants within contractual frameworks. Furthermore the Company plans to speed up overseas

localization by routing sales and procurement through foreign subsidiaries thereby compressing

cross-border capital flows and achieving a natural hedge against risks on exchange rate.

4. Risks for scale amplification and global operations

56 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

The Company's asset base headcount and business scope are undergoing sustained and compounding

expansion with a total workforce surpassing 7200 (including 380+ foreign nationals) across 20+

overseas subsidiaries. The emergence of a diversified industrial ecosystem imposes heightened

exigencies upon corporate governance cross-cultural stewardship resource synergy compliance and

risk control and operational efficiency. If the management system business flows and talent

development fail to keep synchronous pace the Company may encounter operation effectiveness decline

internal control deficiencies or overseas compliance transgression.To address the risks the Company will vigorously boost its digital transformation leveraging its

established industrial Internet platform and group data center to instantiate five integrated pillars - digital

operation digital business management digital administration digital marketing and digital services for

the purposes of global business visualization process standardization and data-driven decision-making.The Company will also refine and promote its excellence-centric performance management model and

build a "full-chain risk control system" with particular emphasis on fortifying compliance governance

and risk pre-screening across the overseas subsidiaries. On the human resources enhancement the

Company will systematically advance its "Talent-Strengthening Enterprise Initiative" intensify the

recruitment cultivation and retention of internationally adept and specialized professionals while

optimizing incentive mechanism to ensure that managerial capability in lockstep with organizational

scale.

5. Risks in uncertainties from incubation of new technologies and emerging industries

The Company is prosecuting forward-looking R&D and industrial positioning in frontier domains such

as intelligent robotics and autonomous systems that are characterized by profound uncertainties in

technical path market demand and commercialization. If technical breakthroughs fail to be achieved as

anticipated or the market adoption fall materially short of expectations investments may not yield

near-term economic returns exerting certain inertial pressure on consolidated performance.To address such risks the Company will pursue a strategy blending "indigenous R&D with open-endedcollaboration” and leverage newly instantiated research entities on core technological breakthroughs.With more emphasis on technological trend and market signaling the Company has been forging

technology stacks and business models through pilot deployment for the creation of flagship intelligent

product lines. The scale and pacing of upfront investment will be prudently governed with R&D vectors

and market strategies subject to milestone-based recalibration for the purpose of well-defined risk

management over capital investment in innovation projects.

(5) Others

"□ Applicable" "√ Not applicable"

7. Notes for non-disclosure according to the standards due to special reasons such as

non-applicability of the standards or state secrets and commercial secrets and reasons

"□ Applicable" "√ Not applicable"

57 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 4 Environmental Social and Corporate Governance

1. Statement on Corporate Governance

"√ Applicable" "□ Not applicable"

During the Reporting Period the Company strictly complied with the provisions of the Company Law of

the People's Republic of China the Securities Law of the People's Republic of China the Code of

Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on Shanghai

Stock Exchange and other relevant laws and regulations as well as the normative documents on

corporate governance issued by the China Securities Regulatory Commission and the Shanghai Stock

Exchange. Taking into account its own circumstances the Company revised its Articles of Association

and other corporate governance systems further refined the reform of its corporate governance structure

abolished its Board of Supervisors and strengthened the competence of the Audit Committee. Through

the iterative upgrades of our information platform we further strengthened the internal control system to

ensure scientific and efficient decision-making precise execution and comprehensive supervision. We

consistently enhanced the quality of information disclosure to ensure that the information is real

accurate and complete while also being expressed in a clear straightforward and easily understandable

manner. We actively expanded communication channels with investors to effectively protect the legal

rights of investors especially those of small and medium-sized investors. Our directors and senior

executives strictly comply with laws and regulations as well as the company’s internal rules faithfully

fulfilling their responsibilities to promote the company’s legal compliance integrity and steady

development.

(1) Improvement of the System Framework: We revised and added governance systems to

enhance the company's standardization level.In accordance with the latest laws regulations exchange rules and guidelines and reforms to its

corporate governance structure the Company revised five existing systems namely the Articles of

Association the Rules of Procedure for the General Meeting of Shareholders the Rules of Procedure for

the Board Meeting the Working Rules for Independent Directors and the Rules of Procedure for the

Audit Committee. The Rules of Procedure for the General Meeting of Shareholders were renamed as the

Rules of Procedure for the Shareholders' Meeting. To strengthen its market capitalization management

further standardize its market capitalization management practices effectively protect the legitimate

rights and interests of the Company investors especially small and medium-sized ones and other

stakeholders and enhance the company's investment value the Company formulated a Market

Capitalization Management System based on the Company Law of the People's Republic of China the

Securities Law of the People's Republic of China the Rules Governing the Listing of Stocks on

Shanghai Stock Exchange the Guidelines for the Regulation of Listed Companies No. 10—Market

Value Management and other relevant laws and regulations as well as its Articles of Association and

own circumstances. Through these efforts the Company ensures that its governance system adapts to the

times and regulatory requirements.

(2) Effective and standardized operation of Shareholders' Meetings and Board Meetings

58 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Since its listing the Company has established relevant governance systems including the Rules of

Procedure for the Shareholders' Meeting and the Rules of Procedure for the Board Meeting and has

ensured the effective implementation of the internal governance system featuring a clear reasonable

rigorous and standardized division of responsibilities. All operational procedures comply with the

provisions of relevant laws and regulations as well as the Articles of Association of the Company.Meeting records are standardized and complete and file management is logical and orderly.

1. Shareholders and Shareholders' Meetings: During the Reporting Period the Company held four

sessions of shareholders' Meetings. The Company convened and held shareholders' meetings in strict

accordance with the Company Law of the People's Republic of China the Rules Governing the Listing

of Stocks on Shanghai Stock Exchange and the Rules of Procedure for the Shareholders' Meeting. The

preparation proposals procedures voting resolutions and information disclosure of the meetings met

the stipulated requirements. The company ensured that all shareholders exercised their legal rights

through various channels. A mechanism for separate voting for small and medium-sized investors was

established for the relevant resolutions reviewed at the Shareholders' Meeting which utilized a

combination of on-site voting and online voting for decision-making. All meetings were conducted in

the presence of lawyers who provided formal legal opinions.

2. Directors Board Meetings and Specialized Committee Meetings: During the Reporting Period the

Company held thirteen sessions of board meetings six sessions of audit committee meetings four

sessions of nomination committee meetings one session of remuneration and evaluation committee

meeting and one session of strategy committee meeting. All directors attended the meetings with

diligence and integrity stayed informed about relevant laws and regulations and carefully reviewed

proposals to ensure the scientific and rational nature of major decisions. The independent directors

maintained their independence actively participated in their duties expressed independent opinions on

relevant matters played a supervisory role and safeguarded the interests of the company and medium to

small shareholders. The four specialized committees under the Board of Directors—namely the Strategy

Committee the Audit Committee the Nomination Committee and the Remuneration and Evaluation

Committee—boasted reasonable member structures and strong professional expertise working

collaboratively to ensure the Board's efficient performance. The Strategy Committee under the

Company's Board of Directors plays a comprehensive role in coordinating and guiding the ESG

practices of the Company continuously improving and promoting strategic goals for the Company's

ESG development.

(3) Standardization of the Behavior of Controlling Shareholders and Actual Controllers.

The company's controlling shareholder exercises rights and fulfills obligations in accordance with the

law strictly adhering to the principle of good faith without interfering in the company's

decision-making and operations beyond the authority of the Shareholders' Meeting. The Company

maintains independence from its controlling shareholder with regard to personnel assets finance

institutions and business ensuring the independent operation of the Board of Directors Board of

Supervisors Audit Committee and internal management mechanism. There are no actions taken by the

59 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

controlling shareholder or actual controller that would infringe on the company's funds or assets or harm

the interests of the company and other shareholders through related party transactions asset

restructuring external investments guarantees profit distributions etc. During the review of relevant

proposals a strict conflict-of-interest avoidance system is implemented.

(4) Strengthening Information Disclosure and Preventing Insider Trading.

The company strictly follows the requirements of relevant laws and regulations as well as its own

"Information Disclosure Management System" ensuring that company information is disclosed in a

truthful accurate complete and timely manner through the Shanghai Stock Exchange website and the

Securities Times among others. This guarantees that the company's information disclosure is public fair

and just ensuring that all investors can access company information equitably enhancing the target

specificity and effectiveness of the information disclosed and facilitating investors' value judgments and

investment decisions. The company also manages confidentiality prior to information disclosure and

maintains a registry of insiders related to major matters.The Company conducted insider information registration in strict accordance with the Registration

Management System of Insiders continuously strengthening its insider information management.Adhering to the principle of prevention first the Company handled all confidential matters in a prudent

manner striving to minimize the access scopes and registered insiders at meetings such as the

shareholders' meetings and management team meetings prior to the disclosure of periodic reports. The

company strictly controls the external transmission of undisclosed financial information.

(5) Active Efforts in Investor Relations Maintenance and Management

The Company has focused on balancing its sustainable development with shareholder investment returns.It successfully implemented its equity distribution plan for 2024 and the first three quarters of 2025

providing substantial financial returns to investors. The Company attaches great importance to investor

relations. The Board Office has personnel responsible for investor relations management. Led by the

Board Secretary such personnel explain the company's operating status to investors answer their

questions solicit their views and suggestions on corporate governance and development and improve

the two-way communication mechanism between the Company and investors in a comprehensive and

systematic manner via multiple channels including phone calls emails online performance briefings

investor strategy meetings by securities firms industry exhibitions SSE E-interactive on-the-spot

communication visits to listed companies investor reception days roadshows and reverse roadshows.Is there a significant difference between company governance and the regulations of the China Securities

Regulatory Commission (CSRC) If there are significant differences the reasons should be explained."□ Applicable" "√ Not applicable"

2. Specific measures taken by the company's controlling shareholders and actual controllers to

ensure the independence of company assets personnel finances organizational structure and

business as well as solutions work progress and future work plans related to issues affecting

company independence

"√ Applicable" "□ Not applicable"

60 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Hangcha Holding as the actual controlling entity of the company strictly fulfills its relevant obligations

in accordance with the Company Law Securities Law and other legal regulations ensuring

independence in terms of personnel assets finances organizational structure and business. During the

Reporting Period the company made and implemented major decisions independently and there were

no instances of the actual controlling entity intervening in the company's decisions or operational

activities bypassing the Shareholders' Meeting.The Situation Regarding the Controlling Shareholder Actual Controllers and Their Controlled Entities

Engaging in Similar or Related Businesses the Impact of Significant Changes in Industry Competition

on the Company Measures Taken Progress of Solutions and Future Resolution Plans

"□ Applicable" "√ Not applicable"

61 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

3. Information on Directors and Senior Managers

(1) changes in shareholdings and remuneration of current and former directors and senior managers during the reporting period

"√ Applicable" "□ Not applicable"

Unit: Share

Total pre-tax

remuneration Whether to

Change in received from receive

Commencement date Termination date of Beginning of End of Year Shareholding Reason the Company remunerationName Title Gender Age of term term Year Shareholding During the for

Shareholding Change during the

from related

Year Reporting parties of the

Period (Ten Company

thousand yuan)

Chairman of the 09/26/2019 09/07/2028

Board

Zhao Limin Male 69 28616014 28616014 0 236.50 No

General 09/26/2019 12/31/2025

Manager

Fang Xiang Vice chairman Male 51 05/08/2025 09/07/2028 0 0 0 Yes

Qiu Director Male 64 09/26/2019 09/07/2028 0 0 0 Yes

Jianping

Qiu Fei Director Female 36 09/08/2025 09/07/2028 0 0 0 Yes

Sheng Director Female 42 09/08/2025 09/07/2028 0 0 0 Yes

Leijia

Deputy General 09/09/2022 12/31/2025

Manager

Employee

Jin Huashu Representative Male 48 09/08/2025 09/07/2028 229211 229211 0 155.10 No

Director

General 12/31/2025 09/07/2028

Manager

Zhu Yaer Independent Female 63 09/09/2022 09/07/2028 0 0 0 10.00 No

Director

Zhu Lihong Independent Female 62 09/08/2025 09/07/2028 0 0 0 3.33 No

Director

62 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Zou Manli Independent Female 74 09/08/2025 09/07/2028 0 0 0 3.33 No

Director

Xu Director 09/26/2019 09/08/2025

Zhengyu Male 56 3482445 3482445 0 185.70 NoChief Engineer 09/26/2019 09/07/2028

Deputy Chief Male 49 09/26/2019 09/08/2025

Li Engineer

Yuansong 416380 416380 0 131.40 NoDeputy General Male 49 09/08/2025 09/07/2028

Manager

Assistant

General 09/26/2019 12/31/2025

Manager

Chen Personal

Saimin Sectary of the Male 60 09/26/2019 12/31/2025 4270000 4260000 -10000 funding 153.30 No

Board needs

Deputy General 12/31/2025 09/07/2028

Manager

Assistant

General Male 09/09/2022 12/31/2025

Wu Jianxin Manager 61 660044 660044 0 166.20 No

Deputy General 12/31/2025 09/07/2028

Manager

Marketing 09/08/2025 09/07/2028

Shi Director Male 46 0 0 0 34.00 No

Quanhong Deputy General 12/31/2025 09/07/2028

Manager

Jin Zhihao Chief Designer Male 62 09/26/2019 09/07/2028 5129161 5129161 0 148.80 No

Chief 06/28/2020 09/08/2025

Accountant

Zhang Persons in

Shutong Charge of Male 61 06/28/2020 09/07/2028 0 0 0 121.00 No

Finance

Chief Financial 09/08/2025 09/07/2028

Officer

Deputy Chief 09/26/2019 12/31/2025

Zhou Suhua Engineer Female 62 856684 856684 0 131.30 No

Assistant 12/31/2025 09/07/2028

63 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

General

Manager

Deputy Chief 09/08/2025 12/31/2025

Engineer

Li Minghui Assistant Male 51 0 0 0 24.50 No

General 12/31/2025 09/07/2028

Manager

Sectary of the

Jiang Yun Female 37 12/31/2025 09/07/2028 0 0 0 - No

Board

Lu Hongbo Vice chairman Female 50 09/07/2020 04/07/2025 0 0 0 Yes

(Former)

Xu Zheng Director Female 42 09/26/2019 09/08/2025 0 0 0 Yes

(Former)

Zhao

Yuchen Director Male 37 05/10/2023 09/08/2025 0 0 0 Yes

(Former)

Shou Jian Independent Male 55 09/26/2019 09/08/2025 0 0 0 7.50 No

(Former) Director

Cai Independent

Yunfeng Male 48 09/26/2019 09/08/2025 0 0 0 7.50 NoDirector

(Former)

Wang Deputy General Personal No

Guoqiang Male 61 09/09/2022 09/08/2025 1209439 1191939 -17500 funding 124.60

Manager

(Former) needs

Ren Haihua Chief Economist Male 46 09/26/2019 09/08/2025 606239 606239 0 105.60 No

(Former)

Total / / / / / 45475617 45448117 -27500 / 1749.66 /

Name Main Work Experience

Born in October 1956 Chinese nationality member of the Communist Party of China Senior Economist. Served as Deputy Director of the Dispatch Office Factory Director

Zhao Head of the Manufacturing Department and Deputy General Manager at Hangzhou Forklift Co. Ltd. From April 2000 to May 2003 served as the General Manager of Hangzhou

Limin Forklift Co. Ltd. From June 2003 to December 2008 served as the General Manager of the Company. Has held the position of Chairman and General Manager of the Company

since December 2008 and has been the Party Secretary since May 2018. Currently serves as the Party Secretary and Chairman of the Company.Fang Born in December 1975 Chinese nationality member of the Communist Party of China Master's degree. From August 1998 to December 2002 served as a technician at the

64 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Xiang Hangzhou Industrial Information Center in Zhejiang Province. From December 2002 to May 2015 served as Staff Member Senior Staff Member Principal Staff Member and

Deputy Division Director of the Technological Progress and Equipment Division of the Hangzhou Municipal Economic Commission in Zhejiang Province. From May 2015 to

October 2016 served as Deputy Division Director of the Intelligent Manufacturing Industry Division of the Hangzhou Economy and Information Technology Commission in

Zhejiang Province. From October 2016 to May 2019 served as Division Director of the Information Security Industry Division (Safety Production Industry Division) and Division

Director of the Cloud Computing and Big Data Industry Division of the Hangzhou Economy and Information Technology Commission in Zhejiang Province. From May 2019 to

July 2023 served as Division Director of the Information Infrastructure Division (Cloud Computing and Big Data Industry Division) of the Hangzhou Municipal Bureau of

Economy and Information Technology in Zhejiang Province. Has been Director of the Investment and Development Department and the Science and Technology Industry

Department of Hangzhou Industrial Investment Group Co. Ltd. since July 2023 and Director of Hangzhou Goldfish Electrical Appliances Group Co. Ltd. since March 2024. Has

held the position of Chairman and General Manager of Zhejiang Hanghua New Material Technology Co. Ltd. since March 2025. Has been Director and Vice Chairman of the

Company since May 2025.Born in January 1962 Chinese nationality holds a master's degree in engineering. Served as Chairman and President of Hangzhou GreatStar Technology Co. Ltd. and Chairman

of GreatStar Holding Group Co. Ltd. from July 2008 to March 2011. From March 2011 to October 2014 held positions as Chairman and President of Hangzhou GreatStar

Technology Co. Ltd. Chairman of GreatStar Holding Group Co. Ltd. Chairman of Zhejiang Hangcha Holding Co. Ltd. and Director of Hangcha Group Co. Ltd. From October

2014 to October 2019 continued as Chairman and President of Hangzhou GreatStar Technology Co. Ltd. Chairman of GreatStar Holding Group Co. Ltd. Chairman of Zhejiang

Qiu Hangcha Holding Co. Ltd. Director of Hangcha Group Co. Ltd. and Director of Zhejiang Guozi Robot Technology Co. Ltd.Jianping From October 2019 to December 2019 again held similar positions at Hangzhou GreatStar Technology Co. Ltd. GreatStar Holding Group Co. Ltd. Zhejiang Hangcha Holding

Co. Ltd. Hangcha Group Co. Ltd. and was a Director of Zhejiang Guozi Robotics Co. Ltd. and Zhongce Rubber Group Co. Ltd. Since December 2019 serves as Chairman of

Hangzhou GreatStar Technology Co. Ltd. Chairman of GreatStar Holding Group Co. Ltd. Chairman of Zhejiang Hangcha Holding Co. Ltd. Director of Hangcha Group Co.Ltd. Director of Zhejiang Guozi Robot Technology Co. Ltd. Director of Zhongce Rubber Group Co. Ltd. and Director of Zhejiang Xinchai Co. Ltd. Has been a director of the

company since March 2011.Born in April 1990 Chinese nationality without permanent residence abroad Master's degree. From October 2012 to August 2013 served as Manager of the Investment Banking

Qiu Fei Division at the Hangzhou Branch of CITIC Bank. From November 2014 to October 2023 served as Deputy General Manager of GreatStar Holding Group Co. Ltd. Has held the

position of General Manager at GreatStar Holding Group Co. Ltd. since October 2023. Has been a Director of Zhejiang Hangcha Holding Co. Ltd. since January 2019 and has

been a Director of Zhongce Rubber Group Co. Ltd. since September 2021. Has been a Director of the Company since September 2025.Born in December 1984 Chinese nationality member of the Communist Party of China Master's degree. From September 2008 to April 2015 served as a member of the Project

Management Department of Hangzhou GreatStar Technology Co. Ltd. From April 2015 to July 2021 served as the Director of the Board Office of Hangzhou GreatStar

Sheng Technology Co. Ltd. From July 2021 to May 2022 served as the Deputy Secretary of the Party Committee and Minister for Economic Development of GreatStar Holding Group

Leijia Co. Ltd. From May 2022 to February 2024 served as the Deputy Secretary of the Party Committee and Director of the Chairman's Office of GreatStar Holding Group Co. Ltd.Has been the Deputy Secretary of the Party Committee and Vice President of GreatStar Holding Group Co. Ltd. since March 2024. Has been a Director of the Company since

September 2025.Born in December 1978 Chinese nationality member of the Communist Party of China committee member of the company's Party Committee holds a bachelor's degree Master

of Engineering Senior Economist. From August 2001 to May 2003 served as a technician and planner in the Manufacturing Department of Hangzhou Forklift Co. Ltd. Since

Jin Huashu June 2003 has served as a technician planner assistant minister deputy minister minister production director and deputy general manager of the Manufacturing Department at

the Company and Chairman and Executive Director of subsidiaries such as Hangzhou Forklift & Metal Working & Welding Co. Ltd. Currently serves as Employee

Representative Director and General Manager of the Company.Zhu Yaer Born in March 1964 holds a master’s degree Chinese nationality member of the Jiusan Society Associate Professor. Does not hold permanent residency abroad. From 2000 to

65 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

present serves as an Associate Professor at the Analytical Testing Center of Zhejiang University. Became an Independent Director of the company in September 2022.Born in 1964 Chinese nationality member of the China Democratic League without permanent residency abroad postgraduate degree associate professor. Joined Zhejiang

Zhu Gongshang University in 1999 engaging in undergraduate and postgraduate education at the School of Accounting of Zhejiang Gongshang University and serving as a lecturer

Lihong for finance-related courses in high-end training programs at Zhejiang University and other institutions. Served as an Independent Director for Tederic Machinery Co. Ltd. Allied

Machinery Co. Ltd. Zhejiang Xinhua Chemical Co. Ltd. Joy Kie Co. Ltd. Asia Silicon (Qinghai) Co. Ltd. Zhejiang Asia Pacific Electromechanical Co. Ltd. and Shanghai

Balance Automotive Equipment Co. Ltd. Has been an Independent Director of the company since September 2025.Born in 1952 Chinese nationality bachelor's degree senior political engineer. Has held the position of Deputy Secretary General and Director of the Office of the Hangzhou

Zou Manli Ningbo Promotion Association for Economic Construction since September 2001. Has been the Executive Director of Hangzhou Hangzhou Bay Advertising Media Co. Ltd. since

June 2004 and has been the Secretary General of the Ningbo Chamber of Commerce in Hangzhou since April 2011. From September 2016 to September 2022 served as

Independent Director of Hangcha Group Co. Ltd. Has been Independent Director of the Company since September 2025.Born in October 1970 Chinese nationality member of the Communist Party of China committee member of the company's Party Committee holds a bachelor's degree Senior

Engineer enjoys special government allowances from the State Council. From July 1992 to February 2000 served as a technician designer at the research institute and Deputy

Xu Chief Designer at Hangzhou Forklift General Factory. From March 2000 to May 2003 served as Chief Designer at the research institute of Hangzhou Forklift Co. Ltd. Since June

Zhengyu 2003 has served as Deputy Section Chief Section Chief Deputy Chief Designer Deputy Chief Engineer and Chief Engineer of the research institute at the Company and as a

Director of Henan Jiachen Intelligent Control Co. Ltd. From September 2019 to September 2025 served as a Director of the Company. Has been Chief Engineer of the Company

since September 2019.Born in October 1977 Chinese nationality member of the Communist Party of China holds a bachelor’s degree Master of Engineering Senior Engineer. Since August 2000 has

Li served as a designer of the research institute Deputy Section Chief of the internal combustion forklift research institute Section Chief of the heavy-duty vehicle research institute

Yuansong Section Chief of the dynamic compaction machine research institute Director of the R&D center in North America and Deputy Chief Engineer at the Company and as Executive

Director and General Manager of Hangcha Group (Tianjin) New Energy Forklift Co. Ltd. Currently serves as Vice General Manager of the Company.Born in June 1966 Chinese nationality member of the Communist Party of China committee member of the company’s Party Committee holds a bachelor’s degree Senior

Engineer and Senior Economist. From July 1987 to March 2000 served as a salesperson in the sales department of Hangzhou Forklift General Factory an R&D designer in the

Chen research institute an assistant engineer and a sales manager at KL Forklift Components. From October 2000 to May 2003 served as Sales Manager General Manager and

Saimin Executive Director at Hangzhou Hangcha KL Forklift Components Co. Ltd. Since June 2003 has served as Executive Director and General Manager Assistant General Manager

Chief Engineer and Board Secretary of Hangzhou Hangcha KL Forklift Components Co. Ltd. and as Executive Director and Director of subsidiaries such as Hangzhou Hangcha

KL Forklift Components Co. Ltd. Currently serves as Vice General Manager of the Company.Born in February 1965 Chinese nationality member of the Communist Party of China holds a bachelor’s degree Senior Economist. From August 1985 to March 2000 served as

a technician in the Technological Section workshop technician Deputy Director of the workshop equipment department technician and planning office technician at Hangzhou

Wu Jianxin Forklift General Factory. From March 2000 to November 2005 served as a planner in the Board Office and Deputy Director of the Import and Export Department of the Group

Company. Since November 2005 has served as Deputy General Manager General Manager General Manager of the International Department and Assistant General Manager of

Zhejiang Hangcha Imp. & Exp. Co. Ltd. and as Executive Director of Hangcha Forklift America and Hangcha Forklift Canada. Currently serves as Vice General Manager of the

Company.Shi Born in April 1980 Chinese nationality bachelor's degree member of the Communist Party of China. From September 2004 to October 2006 served as a designer at the research

Quanhong institute. From October 2006 to February 2013 served as a salesperson and Assistant Manager at Guangzhou Hangcha Forklift Co. Ltd. From February 2013 to December 2015

served as Manager of the Dongguan Branch and Shenzhen Branch. Since December 2015 has served as Head of the Key Client Department Head of the Warehouse and Vehicle

66 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Sales Department General Manager of the Sales Company and Marketing Director at the Company. Currently serves as Vice General Manager and Marketing Director of the

Company.Born in September 1964 Chinese nationality holds a bachelor’s degree Senior Engineer and recipient of the State Council Special Government Allowance. From August 1985 to

Jin Zhihao February 2000 served as a designer Chief Engineer and Deputy Section Chief of the research institute at Hangzhou Forklift General Factory. From March 2000 to May 2003

served as Deputy Section Chief of the research institute at Hangzhou Forklift Co. Ltd. Since June 2003 has served as Deputy Section Chief Section Chief and Chief Designer of

the research institute at the Company. Currently serves as Chief Designer of the Company.Born in December 1965 Chinese nationality member of the Communist Party of China holds a university degree Senior Accountant. From August 1985 to April 1995 served as

Zhang Head of the Planning Statistics Accounting and Finance Departments at Hangzhou Measuring Tool Co. Ltd. From May 1995 to March 2000 served as the accountant and

Deputy Division Director of the Finance Division at Hangzhou Forklift General Factory. From April 2000 to October 2007 served as Deputy Director of the Finance Department

Shutong

at the Company. Since November 2007 has served as Director of the Finance Department Deputy Chief Accountant Chief Accountant and Head of Finance at the Company.Currently serves as Chief Financial Officer and Head of Finance at the Company.Born in May 1964 Chinese nationality holds a bachelor’s degree Senior Engineer. From August 1985 to March 2000 served as a technician and Assistant Director of heat

Zhou treatment workshop at Hangzhou Forklift General Factory. From April 2000 to May 2003 served as Factory Director of heat treatment branch at Hangzhou Forklift Co. Ltd.Suhua Since June 2003 has served as Factory Director of heat treatment branch Director of the process research institute Head of the product inspection department and Deputy Chief

Engineer at the Company. Currently serves as the Assistant General Manager of the Company.Born in September 1975 Chinese nationality bachelor's degree and master's degree in engineering senior engineer. From May 2004 to November 2007 served as a designer and

Li Minghui test engineer at the research institute. From November 2007 to January 2022 served as Deputy Director of the pilot production workshop Director of the testing and inspection

center and Director of the research institute. Since January 2022 has served as General Manager and Deputy Chief Engineer of Hangzhou Hangcha Electric Appliance Co. Ltd.and Zhejiang Hangbo Electric Drive Co. Ltd. Currently serves as the Assistant General Manager of the Company.Born in March 1989 Chinese nationality master's degree in finance. From 2015 to 2017 served as an analyst at China Merchants Securities Co. Ltd. From 2017 to 2021 served

Jiang Yun as the Board Secretary of Zhejiang Guozi Robotics Co. Ltd. From 2021 to 2025 served as the Chief Financial Officer and Deputy General Manager of Zhejiang JYSS

Bio-Engineering Co. Ltd. Since May 2025 has served as Deputy Director of the Board Office Director of Investor Relations and Head of the Securities Investment Department

of Hangcha Group Co. Ltd. Currently serves as the Board Secretary of the Company.Born in October 1976 Chinese nationality member of the Communist Party of China holds a master's degree in science Senior Economist. From August 1999 to March 2000

served as Administrative Assistant in the Administration and Human Resources Department of Shanghai Sanjing Optoelectronics Medical Equipment Co. Ltd. From April 2000

to November 2005 served as Secretary to the General Manager and Youth League Secretary at Shanghai Feile Co. Ltd. From December 2005 to August 2016 held various

positions at Hangzhou City Investment Asset Management Group Co. Ltd. including Deputy Manager of the Comprehensive Department Manager of the Comprehensive

Lu Hongbo Department Deputy General Manager General Manager Party Branch Member and Deputy Secretary of the Party General Branch; concurrently served as Chairman of

Hangzhou City Scenery Industrial Co. Ltd. (formerly Hangzhou Hejing Real Estate Co. Ltd.) and Chairman of Hangzhou Chenglian Industrial Co. Ltd. From September 2016 to

June 2018 served as Deputy Secretary of the Party Committee and General Manager of Hangzhou Residential Development Center Co. Ltd. Since September 2018 has served as

Party Branch Secretary Chairman and General Manager of Hangshi Asset Management (Hangzhou) Co. Ltd. Became a director of Zhongce Rubber Group Co. Ltd. from June

2020 to June 2025 and served as Deputy Chairman of the company from September 2020 to April 2025.

Born in March 1984 Chinese nationality member of the Communist Party of China holds a bachelor's degree Senior Economist. From March 2011 to September 2017 served as

Xu Zheng Secretary to the Chairman of GreatStar Holding Group Co. Ltd. and as a Director of Hangzhou GreatStar Technology Co. Ltd. and Hangcha Group Co. Ltd. From September

2017 to April 2018 continued as Secretary to the Chairman of GreatStar Holding Group Co. Ltd. and served as a Director of Hangzhou GreatStar Technology Co. Ltd. Hangcha

67 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Group Co. Ltd. and Zhejiang Guozi Robotics Co. Ltd. From April 2018 to October 2019 served as Director of the Chairman's Office of GreatStar Holding Group Co. Ltd. and

as a Director of Hangzhou GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. and Zhejiang Guozi Robotics Co. Ltd. From October 2019 to May 2020 held the position

of Director of the Chairman's Office of GreatStar Holding Group Co. Ltd. and was a Director of Hangzhou GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. Zhejiang

Guozi Robot Technology Co. Ltd. and Chairman of the Supervisory Board of Zhongce Rubber Group Co. Ltd. Since May 2020 serves as Director of the Chairman's Office of

GreatStar Holding Group Co. Ltd. a Director of Hangzhou GreatStar Technology Co. Ltd. Hangcha Group Co. Ltd. and Chairman of the Supervisory Board of Zhongce

Rubber Group Co. Ltd. Served as a Director of the Company from March 2011 to September 2025.Born in December 1989 Chinese nationality holds a master's degree. Since December 2016 has served as Assistant to the General Manager and Deputy General Manager of

Zhao Hangzhou West Lake Tiandi Development Co. Ltd.; concurrently held positions as a Director of Zhejiang Xinchai Co. Ltd. and Hangzhou Jinsong Younuo Electric Appliance

Yuchen Co. Ltd. as well as Executive Director of Hangzhou West Lake Tiandi Property Service Co. Ltd. and Hangzhou Taifeng Management Co. Ltd. and Executive Director and

General Manager of Hangzhou Liangya Building Material Co. Ltd. Currently serves as Deputy General Manager of Hangzhou West Lake Tiandi Development Co. Ltd. and

Executive Director and General Manager of Hangzhou Liangya Building Material Co. Ltd. Served as a Director of the Company from May 2023 to September 2025.Born in October 1971 Chinese nationality holds a bachelor's degree in law and a master's degree in Public Administration from Nottingham Trent University UK; qualified

lawyer since 1995 member of the Communist Party of China. Previously worked at the Hangzhou Public Security Bureau holding positions such as Chief of the Legal Affairs

Shou Jian Section and Police Station Chief. Since February 2012 served as the Director of the Integrity Department at Alibaba Group responsible for corporate discipline supervision and

integrity culture development; currently serves as a Senior Director in the Security Department of Alibaba Group focusing on major risk control. Served as an Independent

Director of the Company from September 2019 to September 2025.Born in November 1978 Chinese nationality member of the China Democratic League holds a bachelor's degree. A Certified Public Accountant Tax Advisor and Senior

Cai Accountant. From December 2002 to May 2013 served as Deputy Section Chief at Hangzhou Jiangnan Tax Consulting Firm. Since June 2013 has served as Deputy Section

Yunfeng Chief and Section Chief at Hangzhou Zhongming Tax Consulting Firm. Since December 2018 also holds the position of Chief Accountant at Hangzhou Zhongyin Accounting

Firm. Served as an Independent Director of the Company from September 2019 to September 2025.Born in October 1965 Chinese nationality member of the Communist Party of China committee member of the company’s Party Committee Senior Economist. From December

1983 to February 2000 served as a worker in the assembly workshop and a dispatcher in the dispatching department of Hangzhou Forklift General Factory. From March 2000 to

Wang May 2003 served as a dispatcher in the dispatching department Deputy Division Director of the marketing division and Manager of Guangzhou Branch at Hangzhou Forklift

Guoqiang Co. Ltd. From June 2003 to November 2014 served as Manager of Guangzhou Branch and Manager of Shenzhen Branch General Manager of Guangzhou Hangcha Forklift Co.Ltd. and Guangzhou Zhehang Forklift Co. Ltd. and General Manager of the Guangdong Region. From December 2014 to September 2025 served as Assistant General Manager

Marketing Director and Deputy General Manager of the Company.Born in March 1979 Chinese nationality member of the Communist Party of China holds a bachelor's degree Master of Engineering Senior Economist. From August 2002 to

Ren May 2003 served as a technician in the Quality Management Department of Hangzhou Forklift Co. Ltd. Since June 2003 has served as a quality management technician

Assistant Factory Director Deputy Director and Director of the Comprehensive Management Department and Deputy Chief Economist at the Company and as Director of the

Haihua

Information Management Office and the Human Resources Department Chairman and General Manager of Zhejiang Hangcha Guozi Robotics Co. Ltd. and Executive Director

of Hefei Hanhe Intelligent Logistics Technology Co. Ltd. From September 2019 to September 2025 served as Chief Economist of the Company.Additional Information

"□ Applicable" "√ Not applicable"

68 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2) Positions of current and former directors and senior managers during the Reporting Period

1. Employment in corporate shareholders

"√ Applicable" "□ Not applicable"

Employee name Corporate shareholder name Position Commencement Termination date

date of term of term

Qiu Jianping Zhejiang Hangcha Holding Co. Ltd Chairman of January 2011

the Board

Qiu Fei Zhejiang Hangcha Holding Co. Ltd Director January 2019

Xu Zheng Zhejiang Hangcha Holding Co. Ltd Supervisor January 2011

Director of the

Investment and

Development

Department

Fang Xiang Hangzhou Industrial Investment and the Science ?June 2023Group Co. Ltd.and

Technology

Industry

Department

Explanation of

employment in None

corporate shareholders

2. Employment in other organizations

"√ Applicable" "□ Not applicable"

Employee Other Organizations Position Commencement Termination

name date of term date of term

Hangzhou Zhongce Haichao Enterprise Director February 2020

Management Co. Ltd.Zhongce Rubber Group Company Limited Director October 2019

Baoji Hangcha Engineering Machinery Co. Director May 2018

Ltd.Zhejiang Huachang Hydraulic Machinery Co.Zhao Limin Director April 2018Ltd.Hangzhou Forklift Mast Co. Ltd. Director April 2018

Hangzhou Forklift Sheet Metal Welding Co. Director April 2018

Ltd.Zhejiang Hangcha Import and Export Co. Ltd. Executive director August 2020

Zhejiang Hangcha Guozi Robotics Co. Ltd. Director August 2025

Zhejiang Hanghua New Material Technology Chairman and March 2025

Co. Ltd. General Manager

Hangzhou Goldfish Electrical Appliances Director January 2024 August 2025

Group Co. Ltd.Fang Xiang Zhejiang Huafeng Paper Group Co. Ltd. Director January 2024 May 2025

Hangzhou Low-Altitude Industry Development Director May 2024 April 2025

Co. Ltd.Hangzhou Industrial Digital Technology

Director July 2025

(Hangzhou) Co. Ltd.Hangzhou Chaoyang Haoyun Enterprise Executive Partner April 2019

Management Partnership (Limited Partnership)

Hangzhou Chaoyang Wenxing Enterprise

Executive Partner January 2021

Qiu Jianping Management Partnership (Limited Partnership)

GreatStar Holding Group Co. Ltd. Chairman of the August 2009

Board

Hangzhou GreatStar Industrial Co. Ltd. Chairman of the August 2010

69 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Board

Zhejiang Xinchai Co. Ltd. Director December 2019

Xinjiang Lianhe Investment Co. Ltd. Executive Partner November 2001

Hangzhou Kunxia Enterprise Management Executive Partner January 2018

Partnership (Limited Partnership)

Zhejiang Zhongtai GreatStar Real Estate Co. Director May 2005

Ltd.Hangzhou Chaoyang Risheng Enterprise Executive Partner January 2021

Management Partnership (Limited Partnership)

Zhejiang United Investment Co. Ltd. Director April 2015 October 2025

Hangzhou Zhongce Haichao Enterprise Chairman of the April 2019

Management Co. Ltd. Board

Zhongce Rubber Group Company Limited Director October 2019

Zhejiang Equity Service Group Co. Ltd. Director November 2017

Zhejiang Youbon Small Loan Co. Ltd. Director December 2009

Hangzhou Xihu Tiandi Development Co. Ltd Director November 2012 January 2025

Zhejiang Guozi Robot Technology Co. Ltd. Director October 2014

Zhejiang Hangcha Guozi Robotics Co. Ltd. Director August 2025

Hangzhou Great Star Precision Machinery Co. Chairman of the

December 2018

Ltd Board

Changzhou Huada Kejie Opto-Electro Director August 2015

Instrument Co. Ltd.Chairman of the

Dongguan Ouda Electronics Co. Ltd. March 2017

Board

Hangzhou Lujing Culture and Creativity Co. Executive director November 2015

Ltd.Executive Director

Hangzhou GreatStar Energy Co. Ltd. and General December 2022 July 2025

Manager

Hangzhou Chaoyang Risheng Enterprise Executive Partner February 2021

Management Partnership (Limited Partnership)

Hangzhou GreatStar Industrial Co. Ltd. Executive director December 2018

Hangzhou GreatStar Lianhe International Director and January 2026

Holding Co. Ltd. Manager

Hangzhou Oak Private Fund Management Co. Executive director March 2018

Ltd.Hangzhou Zhongce Haichao Enterprise

Manager Director April 2019

Management Co. Ltd.Zhejiang Guozi Robot Technology Co. Ltd. Director May 2020

GreatStar Holding Group Co. Ltd. Director and January 2020

General Manager

Hangzhou BeA Machinery Equipment Legal

Representative and April 2025Manufacturing Co. Ltd.Director

Hangzhou Jinsong Younuo Electrical Co. Ltd. Vice chairman November 2025

Qiu Fei Hangzhou Weina Technologies Co. Ltd. Director August 2025

Hangzhou Great Star Precision Machinery Co. General Manager March 2020

Ltd

Hangzhou Lujing Culture and Creativity Co. Manager April 2020

Ltd.Hangzhou GreatStar Industrial Co. Ltd. Manager February 2022

GH Optics (Jiangsu) Co. Ltd. Director May 2021

Hangzhou Quanlin Investment Partnership Executive Partner November 2015

(Limited Partnership)

Zhongce Rubber Group Company Limited Director October 2021

Hangzhou GreatStar Industrial Co. Ltd. Director May 2024

70 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Zhejiang Xinchai Co. Ltd. Director December 2023

Sheng Leijia GreatStar Holding Group Co. Ltd. Vice president March 2024

Hangzhou Jingsheng Enterprise Management Executive Partner January 2023

Partnership (Limited Partnership)

Baoji Hangcha Engineering Machinery Co. Director May 2023

Ltd.Hangzhou Pengcheng New Energy Technology Director July 2018

Co. Ltd.Hangzhou Hangcha Materials Trading Co. Executive director April 2018

Ltd.Hangzhou Forklift Mast Co. Ltd. Chairman of the May 2017

Board

Hangzhou Gangcun Transmission Co. Ltd. Director November 2022

Hangzhou Hangcha Foundry Co. Ltd. Chairman of the May 2018

Board

Hangzhou Forklift Sheet Metal Welding Co. Chairman of the

January 2017

Ltd. Board

Hangzhou Hangcha Bridge Box Co. Ltd. Chairman of the April 2018

Board

Jin Huashu Hangzhou Hangcha Aerial Equipment Co.Executive director August 2020

Ltd.Changsha Zhongchuan Transmission Co. Ltd. Director August 2020

Hangzhou Hangcha Machinery Equipment Chairman of the May 2018

Manufacturing Co. Ltd. Board

Hangzhou Hangcha Precision Manufacturing Executive director February 2021

Co. Ltd.Hangzhou Hangcha Electric Appliance Co. Executive director April 2018

Ltd

Hangzhou Hangcha Machining Co. Ltd. Executive director April 2018

Hangzhou Zhiban Enterprise Management Executive Partner March 2024

Partnership (Limited Partnership)

Zhejiang Hangbo Electrical Drive Co. Ltd. Chairman of the August 2024

Board

Zhejiang Zhichu Jia Material Handling Chairman of the January 2025

Equipment Co. Ltd. Board

Hangzhou Hangcha Yunrui Technology Co. Chairman of the June 2024

Ltd. Board

Hangzhou Shaohai Information Technology Director January 2019

Co. Ltd.Zhu Yaer

Zeda Precision (Hangzhou) Biopharmaceutical Supervisor January 2023

Co. Ltd.Shanghai Balance Automotive Equipment Co. Independent May 2025

Ltd. Director

Zhu Lihong

Hangzhou Xiangbin Electronic Technology Independent September 2025

Co. Ltd. Director

Zou Manli Hoshine Silicon Industry Co. Ltd. Independent September 2021

Director

Xu Zhengyu Henan Jiachen Intelligent Control Co. Ltd. Director April 2018

Shanghai Hangcha Okamura Co. Ltd. Director April 2022

Li Yuansong Hangcha Group (Tianjin) New Energy Forklift Executive Director September 2020

Co. Ltd. and General

Manager

Hangzhou Zhongce Haichao Enterprise

Director May 2019

Management Co. Ltd.Chen Saimin

Baoji Hangcha Engineering Machinery Co. Director January 2018

Ltd.

71 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Hangzhou Hangcha Kangli Forklift

Executive director January 2007

Attachments Co. Ltd.Hangzhou Hangcha Cab Co. Ltd. Executive director December 2012

Hangzhou Forklift Mast Co. Ltd. Director May 2024

Hangzhou Forklift Sheet Metal Welding Co. Director May 2024

Ltd.Hangcha Europe GmbH Executive director December 2021

Zhejiang Hangcha Siweis International Trade

Executive director May 2023

Co. Ltd.Zhejiang Hangcha Import and Export Co. Ltd. General Manager November 2021

HC Forklift America Corporation Executive director August 2017

Hangcha Forklift Canada Inc. Executive director October 2019

Wu Jianxin

Hangcha Australia Pty. Ltd. Executive director June 2022

Hangcha Forklift Mexico Inc. Executive director December 2022

Hangcha Group Manufacturing (Thailand) Co. Executive director October 2024

Ltd.Hangcha Europe Rental & Sales Executive director November 2024

Hangcha Group (Tianjin) Financing Leasing Chairman of the

August 2020

Co. Ltd. Board

Hangzhou Hangzhong Engineering Machinery Executive director September 2025

Co. Ltd.Zhejiang Huachang Hydraulic Machinery Co.Supervisor August 2020

Ltd.Hangzhou Forklift Mast Co. Ltd. Director August 2020

Hangzhou Gangcun Transmission Co. Ltd. Director November 2022

Hangzhou Hangcha Foundry Co. Ltd. Director October 2020

Hangzhou Forklift Sheet Metal Welding Co. Director August 2020

Ltd.Hangzhou Hangcha Bridge Box Co. Ltd. Director August 2020

Hangzhou Hangcha E-commerce Co. Ltd. Executive director October 2023

Zhang Shutong Hangcha New Energy Forklift (Wenzhou) Co. Executive director July 2023

Ltd.Hangzhou Hangcha Yunrui Technology Co. Director June 2024

Ltd.Hangcha International Leasing (Tianjin) Co. Executive director May 2025

Ltd.Zhoushan Hangcha International Financial Director February 2026

Leasing Co. Ltd.Hangcha Forklift (Vietnam) Co. Ltd. Legal February 2025

Representative

Hangzhou Hangcha Property Management Executive Director

Service Co. Ltd. and Chief January 2025

Financial Officer

Hangcha International Leasing (Tianjin) Co. Director May 2025

Ltd.Hangzhou Hangcha Electric Appliance Co. General Manager January 2022

Ltd

Zhejiang Hangbo Electrical Drive Co. Ltd. Director and July 2024

General Manager

Li Minghui

Hangzhou Hongmai Intelligent Control Chairman and February 2026

Technology Co. Ltd. General Manager

HM Battery Solutions (France) Chairman of the January 2026

Board

Zhongce Rubber Group Company Limited Director July 2020 July 2025

Lu Hongbo Hangshi Asset Management (Hangzhou) Co. Chairman and October 2018 March 2025

Ltd. General Manager

72 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Hangzhou Zhongce Haichao Enterprise

Supervisor April 2019

Management Co. Ltd.Employee

Hangzhou GreatStar Industrial Co. Ltd. Representative June 2025

Xu Zheng Director

Zhongce Rubber Group Company Limited Chairman of the October 2019 Demcember

supervisory board 2025

GreatStar Holding Group Co. Ltd. Supervisor February 2016

Zhejiang Hangcha Holding Co.Ltd Supervisor January 2011

Hangzhou Jinsong Younuo Electrical Co. Ltd. Director November 2021 November

2025

Zhejiang Xinchai Co. Ltd. Director May 2018

Hangzhou Taifeng Business Management Co. Executive director February 2023

Ltd.Hangzhou West Lake Tiandi Property Service Executive director January 2021

Zhao Yuchen Co. Ltd.Hangzhou Liangya Building Materials Co. Executive Director

Ltd. and General

March 2023

Manager

Hangzhou Xihu Tiandi Development Co. Ltd Director January 2025

Hangzhou GreatStar Lianhe International Manager Director March 2025 January 2026

Holding Co. Ltd.Hangzhou Zhouzhang Network Technology Supervisor August 2020

Co. Ltd.Hangzhou Chengying Data Technology Co. Director October 2018 February

Ltd. 2026

Hangzhou Yuexin Network Technology Co. Executive Director

Shou Jian Ltd. and General August 2020

Manager

Hangzhou Yunfu Network Technology Co. Supervisor September 2020

Ltd.Independent

Vala Inc. (Hong Kong) Non-Executive May 2022

Director

Executive Director

Hangzhou Zhongming Tax Firm Co. Ltd. and General December 2014

Manager

Hangzhou Zhongyin Accounting Firm Co. Executive Director

Ltd. and General December 2018

Cai Yunfeng Manager

Hangzhou Zhongyin Technology Service Co. Executive Director

and General September 2019Ltd.Manager

Hangzhou Beisheng Financial Consulting Co.Supervisor July 2010

Ltd.Hangcha Group Leasing Co. Ltd. Executive director May 2015 September

Wang 2025

Guoqiang September

Zhejiang Hangcha Parts Sales Co. Ltd. Executive director May 2021

2025

Shanghai Hangcha Okamura Co. Ltd. Chairman of the April 2022

Board

Director and

Zhejiang Hangcha Guozi Robotics Co. Ltd. February 2018

Ren Haihua Manager

Shanghai Hangcha Okamura Co. Ltd. Executive director August 2022

Hefei Hanhe Intelligent Logistics Technology Executive Director May 2024

Co. Ltd. and General

73 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Manager

Zhejiang Guozi Intelligent Equipment Co.Executive director January 2024

Ltd.Hangzhou Kangqian Enterprise Management Executive Partner March 2024

Partnership (Limited Partnership)

Hangcha America Smart Logistics Solution

Executive director January 2025

Corporation

Note on

positions with None

other

organizations

(3) Remuneration of directors and senior managers

"√ Applicable" "□ Not applicable"

The Company's remuneration practices for directors are reviewed and approved

at the Board Meetings and Shareholders' Meetings. Non-independent directors

and senior managers who hold positions or undertake management functions in

Decision-making processes of

remuneration for directors and senior the Company are remunerated in accordance with relevant remuneration

managers regulations of the Company based on their specific management positions in

the Company or its subsidiaries. Independent directors receive a fixed

allowance. The remuneration of senior managers is implemented according to

the standards reviewed at the Board Meetings.Do Directors Abstain From Voting on Yes

Their Own Compensation Matters

Details of recommendations made by the

Remuneration and Evaluation On April 17 2025 the Company held its 7th Meeting of the Remuneration and

Committee or by independent directors Evaluation Committee of the Board of Directors to review the 2024

at special meetings regarding the remuneration of senior managers in operational and management roles within

remuneration of directors and senior the Company.managers

Basis for determining the remuneration The remuneration was determined based on the Company's position-based

of directors and senior managers remuneration practices position responsibilities term-based performance

assessments and operating performance.Actual payments were made in accordance with the aforementioned principles

Payment of remuneration for directors and relevant documents. The specific amounts are detailed in the "Changes in

and senior managers Shareholdings and Remuneration of Current and Former Directors and Senior

Managers During the Reporting Period" table in this section.Total remuneration actually paid to all

directors and senior managers at the end RMB 17496600 (pre-tax).of the Reporting Period

Assessment basis and completion status In accordance with the Remuneration Management System of the Company for

of the remuneration actually paid to all Directors and Senior Managers as well as other relevant regulations the

directors and senior managers at the end Company's directors and senior managers have performed their duties

of the Reporting Period diligently and the remuneration assessment has been completed.Deferred payment for the actual

remuneration paid to all directors and

N/A

senior managers at the end of the

Reporting Period

Cessation of payments and recovery of

the remuneration actually paid to all

N/A

directors and senior managers at the end

of the Reporting Period

74 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(4) Changes in directors and senior managers of the Company

"√ Applicable" "□ Not applicable"

Name Position Changes Reason for change

Lu Hongbo Vice chairman Resignation Job Transfer

Fang Xiang Vice chairman Election Succession

Qiu Fei Director Election Succession

Sheng Leijia Director Election Succession

Director Election Succession

Jin Huashu General Manager Appointment

Job Transfer

Deputy General Manager Resignation

Xu Zheng Director Resignation Succession

Xu Zhengyu Director Resignation Succession

Zhao Yuchen Director Resignation Succession

Shou Jian Independent Director Resignation Succession

Cai Yunfeng Independent Director Resignation Succession

Zhu Lihong Independent Director Election Succession

Zou Manli Independent Director Election Succession

Deputy General Manager Appointment

Chen Saimin Assistant General Manager and Job TransferResignation

Board Secretary

Wang Guoqiang Deputy General Manager Resignation Succession

Shi Quanhong Vice General Manager and Appointment Succession

Marketing Director

Deputy General Manager Appointment

Wu Jianxin Job Transfer

Assistant General Manager Resignation

Jiang Yun Sectary of the Board Appointment Job Transfer

Deputy General Manager Appointment

Li Yuansong Job Transfer

Deputy Chief Engineer Resignation

Assistant General Manager Appointment

Zhou Suhua Job Transfer

Deputy Chief Engineer Resignation

Assistant General Manager Appointment

Li Minghui Job Transfer

Deputy Chief Engineer Resignation

(5) statement on penalties from securities regulators in the last three years

"□ Applicable" "√ Not applicable"

(6) Other

"□ Applicable" "√ Not applicable"

4. Directors' Performance of Duties and Attendance

(1) Attendance of directors at Board Meetings and Shareholders' Meetings

Attendance

Attendance at Board Meetings at

Shareholders'

Meetings

Director Is Has the

Name Independent Total

Director NumberRequired Number of Number of Number of Directorof Number of

Board Personal Attentions via Proxy Missed Two Meetings

Meetings Attendances Communication Attendances Absences Consecutive Attended

This Year Personal

Attendances

Zhao No 13 13 0 0 0 No 4

75 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Limin

Lu No 0 0 0 0 0 No -

Hongbo

Fang No 10 10 0 0 0 No 3

Xiang

Qiu No 13 13 0 0 0 No 4

Jianping

Qiu Fei No 3 3 0 0 0 No 2

Sheng No 3 3 0 0 0 No 2

Leijia

Jin 0 0 0 No

No 3 3 2

Huashu

Xu Zheng No 10 10 0 0 0 No 2

Xu 0 0 0 No

No 10 10 2

Zhengyu

Zhao No 10 10 0 0 0 No 2

Yuchen

Zhu Yaer Yes 13 13 0 0 0 No 4

Shou Jian Yes 10 10 0 0 0 No 2

Cai 0 0 0 No

Yes 10 10 2

Yunfeng

Zhu Yes 3 3 0 0 0 No 2

Lihong

Zou Yes 3 3 0 0 0 No 2

Manli

Explanation for Consecutive Absences from Board Meetings:

"□ Applicable" "√ Not applicable"

Number of Board Meetings Held in the Year: 13

Among these: Number of in-person meetings: 13

Number of meetings held via communication: 0

Number of meetings held using both in-person and 0

communication methods:

(2) 3. Objections raised by directors on matters related to the company

"□ Applicable" "√ Not applicable"

(3) other

"□ Applicable" "√ Not applicable"

5. Specialized Committees under the Board of Directors

"√ Applicable" "□ Not applicable"

(1) Members of Specialized Committees

Specialized Committee Category Member Names

Audit Committee Zhu Lihong Zou Manli Fang Xiang Cai Yunfeng (resigned) Shou Jian (resigned)

Lu Hongbo (resigned)

Nomination Committee Zou Manli Zhu Ya'er Jin Huashu Shou Jian (resigned) Xu Zhengyu (resigned)

Remuneration and Evaluation Zhu Ya'er Zhu Lihong Qiu Fei Cai Yunfeng (resigned)

Committee

Strategy Committee Zhao Limin Qiu Jianping Zhu Yaer

Note: Ms. Lu Hongbo resigned in April 2025 and no longer serves as the director of the Company or

76 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

holds a position on the relevant specialized committee; Mr. Xu Zhengyu Mr. Cai Yunfeng and Mr.Shou Jian no longer serve as the director of the Company or hold a position on the relevant specialized

committee after the election of new directors for the board at the 2nd interim meeting of the shareholders’

meeting of 2025 held on September 8 2025.

(2) The Audit Committee held six sessions of meetings during the Reporting Period

Date of Important Other

convening Agenda Opinions and Performance of

Suggestions Duties

Members of the Audit Committee communicated with the audit firm

01/20/2025 for the Company's annual report regarding matters related to the

2024 annual report

Consideration and adoption: Company's 2024 Audit Report

Company's 2024 Annual Report and Summary Company's 2024

Financial Statement 2024 Internal Control Evaluation Report

Proposal on Renewal of the Company’s Audit Firm for 2025

04/17/2025 Evaluation Report on the Performance of Pan-China Certified

Public Accountants LLP Report on the Audit Committee's

Performance of Duties in 2024 Report on the Audit Committee's

Performance of Supervisory Duties over Pan-China Certified Public

Accountants LLP and Internal Audit Report.

04/21/2025 Resolutions Passed: "Company 2025 First Quarter Report"

Consideration and adoption: Proposal on the Subsidiary's Proposed

07/07/2025 Capital Increase and Share Expansion to Acquire 99.23% equity

shares in Zhejiang Guozi Robotics Co. Ltd. and Related Party

Transactions

08/21/2025 Consideration and adoption: Company's 2025 Semi-Annual Report

and Summary.

10/22/2025 Resolutions Passed: "Company 2025 Third Quarter Report"

(3) The Strategy Committee held one session of meetings during the Reporting Period

Important Other

Date of convening Agenda Opinions and Performance of

Suggestions Duties

The meeting discussed topics such as the company's 14th

Five-Year Technology Transformation Project renewable energy

04/17/2025 development strategy international layout mergers and

acquisitions in domestic and foreign industries and the Hengfan

Phase IV Logistics Project planning for the achievement of the

company's high-quality development.

(4) The Remuneration and Evaluation Committee held one session of meeting during the

Reporting Period

Date of Important Other

convening Agenda Opinions and Performance of

Suggestions Duties

Consideration and adoption: Proposal on the Remuneration and

04/17/2025 Evaluation of the General Manager and Other Senior Executives for

2024

(5) The Nomination Committee held four sessions of meeting during the Reporting Period

Date of Important OtherAgenda

convening Opinions and Performance of

Suggestions Duties

77 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Consideration and adoption: Proposal on the Election of Additional

04/17/2025

Directors

08/22/2025 Consideration and adoption: Proposal on the Election of

Independent Directors for the 8th Board of Directors

Consideration and adoption: Proposal on the Election of the

Chairman of the Company Proposal on the Election of the Vice

09/08/2025 Chairman of the Company Proposal on the Election of Members

and Chairs of the Specialized Committees of the Board of Directors

Proposal on the Employment of the General Manager and Proposal

on the Employment of Senior Managers

Consideration and adoption: Proposal on the Adjustment of the

12/31/2025 Positions of Certain Senior Managers and Proposal on the

Employment of the Board Secretary

(6) specifics of disputed matters:

"□ Applicable" "√ Not applicable"

6. Description of Risks Identified by the Audit Committee within the Company

"□ Applicable" "√ Not applicable"

The Audit Committee raised no objection to the supervisory matters during the Reporting Period.

7. Employee Situation at the End of the Reporting Period for the Parent Company and Major

Subsidiaries

(1) Employee

Number of employees in the parent company 1920

Number of employees in major subsidiaries 5313

Total number of employees 7233

Number of retired employees whose expenses are borne by the 0

parent company and main subsidiaries

Specialty composition

Specialty category Number of Specialty Personnel

Production personnel 3228

Sales personnel 1959

Technical personnel 1739

Financial personnel 182

Administrative personnel 125

Total Amount 7233

Education level

Education level category Employees (person)

Master's degree or above 238

Bachelor's degree and above 1555

Associate degree 1536

Senior high school or below 3904

Total Amount 7233

(2) Compensation policy

"√ Applicable" "□ Not applicable"

The company strictly manages employee compensation in accordance with the national Labor Contract

Law and other relevant policies establishing a comprehensive compensation management system. The

compensation is determined based on job positions and guided by labor market prices providing

employees with a highly competitive external and fair internal compensation policy. The company offers

78 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

various incentive measures including position allowances and professional qualification subsidies.

(3) Training plan

"√ Applicable" "□ Not applicable"

The training plan is closely aligned with the company’s production and operational development

strategy combined with the annual education and training plan to effectively promote talent

development. Through various forms of online and offline training such as collaborations with

universities internal training external training and lectures the company strives to foster a

learning-oriented corporate culture to provide talent support for sustainable development.

(4) Labor outsourcing

"□ Applicable" "√ Not applicable"

8. Profit Distribution or Capital Reserve Increase Plan

(1) Cash dividend policy development execution or adjustment status

"√ Applicable" "□ Not applicable"

The company's Articles of Association clearly specify the principles and forms of profit distribution

especially detailing the conditions and proportions for cash dividends. When proposing a dividend plan

the Board of Directors strictly adheres to the regulations on cash dividends issued by the China

Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange (SSE). The

decision-making procedures on profit distribution by the Board of Directors and the shareholders'

meeting are relatively standardized. During the Reporting Period the Company's profit distribution

policy complies with the aforementioned profit distribution plan and review procedures of the China

Securities Regulatory Commission (CSRC) and conforms to the Company Law the CSRC's Regulatory

Guidelines for Listed Companies No. 3—Distribution of Cash Dividends of Listed Companies (2025

Revision) the Articles of Association and other relevant policies and procedural requirements. The

legitimate rights and interests of minority investors were fully protected. No adjustments were made to

the cash dividend policy.

(2) Special note of the cash dividend policy

"√ Applicable" "□ Not applicable"

Conforming to the provisions of the Company's Articles of Association or the requirements of the "√ Yes" "□ No"

General Meeting of Shareholders resolutions:

The distribution standards and ratios were clear and unambiguous: "√ Yes" "□ No"

The relevant decision-making procedures and mechanisms were complete: "√ Yes" "□ No"

The independent directors performed their duties diligently and played their due role: "√ Yes" "□ No"

Minority shareholders had sufficient opportunities to express their opinions and appeals and their "√ Yes" "□ No"

legitimate rights and interests were fully protected:

(3) If the company is profitable during the Reporting Period and the parent company's

distributable profits for shareholders are positive but no cash dividend distribution plan has been

proposed the company should disclose the reasons in detail and the intended use and plans for the

undistributed profits."□ Applicable" "√ Not applicable"

79 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(4) Profit Distribution and Capital Reserve Increase Plan for This Reporting Period

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Number of bonus shares distributed for every 10 shares (shares)

Cash dividends distributed for every 10 shares (RMB) (including tax) 4.00

Bonus shares added for every 10 shares

Total cash dividend amount (inclusive of tax) 523924819.60

Net profit attributable to ordinary shareholders of the listed company in the consolidated 2191315695.90

financial statements

Cash dividend amount as a percentage of net profit attributable to ordinary shareholders of 23.91

the listed company in the consolidated financial statements (%):

Amount spent on repurchasing shares counted as cash dividends

Total dividend amount (inclusive of tax) 523924819.60

Total dividend amount as a percentage of net profit attributable to ordinary shareholders of 23.91

the listed company in the consolidated financial statements (%):

Note: On November 26 2025 the Company implemented its equity distribution plan for the first three

quarters of 2025 distributing a cash dividend of RMB 2.00 (including tax) to all shareholders for every

10 shares. The total amount of cash dividends is RMB 261962409.80. For details please refer to the

Announcement on the Implementation of Equity Distribution for the First Three Quarters of 2025

(Announcement No. 2025-062). For the year of 2025 the Company's total cash dividends amounted to

RMB 785887229.40 accounting for 35.86% of the net profit attributable to the parent company in

2025.

(5) Cash Dividend Situation for the Last Three Accounting Years

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Cumulative cash dividend amount for the last three accounting years (inclusive of 1908583271.40

tax) (1)

Cumulative amount repurchased and canceled in the last three accounting years (2)

Cumulative amount of cash dividends and repurchased and canceled shares in the last 1908583271.40

three accounting years (3) = (1) + (2)

Annual average net profit for the last three accounting years (4) 1973260221.20

Cash dividend ratio for the last three accounting years (%) (5) = (3) / (4) 96.72

Net profit attributable to ordinary shareholders of the listed company in the 2191315695.90

consolidated financial statements for the most recent accounting year

Undistributed profits at the end of the most recent accounting year in the parent 6906647393.44

company's financial statements

9. Status of the company's equity incentive plan employee stock ownership plan or other

employee incentive measures and their impact

(1) Related incentive matters have been disclosed in a temporary announcement and there has

been no progress or change in subsequent implementation."□ Applicable" "√ Not applicable"

(2) Status of incentive matters not disclosed in the temporary announcement or with subsequent

progress

Equity incentive status

80 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

Employee stock ownership plan status

"□ Applicable" "√ Not applicable"

Other incentive measures

"□ Applicable" "√ Not applicable"

(3) Equity incentive status granted to directors and senior executives during the Reporting

Period

"□ Applicable" "√ Not applicable"

(4) Evaluation mechanism for senior executives during the Reporting Period and the

establishment and implementation of the incentive mechanism

"□ Applicable" "√ Not applicable"

10. Development and Implementation of Internal Control Systems During the Reporting Period

"√ Applicable" "□ Not applicable"

Please refer to the "2025 Annual Internal Control Evaluation Report" disclosed by the company on April

22 2026 on the Shanghai Stock Exchange website (www.sse.com.cn).

Explanation of Significant Deficiencies in Internal Control During the Reporting Period

"□ Applicable" "√ Not applicable"

11. Management Control Over Subsidiaries During the Reporting Period

"√ Applicable" "□ Not applicable"

The Company has established operational strategies and risk management strategies for its holding

subsidiaries in accordance with documents such as the Subsidiary Management System and Regulations

on the Management of Overseas Institutions. It supervises holding subsidiaries to develop relevant

business operation plans risk management procedures and internal control systems based on these

frameworks. The Company also formulates performance evaluation and incentive systems for its holding

subsidiaries and establishes internal reporting systems for significant matters and for the disclosure of

major issues. The Company regularly obtains and analyzes monthly or quarterly reports from each

holding subsidiary while the internal audit department and relevant business management departments

conduct timely inspections of holding subsidiaries to standardize various operational practices.According to relevant regulations the Company entrusts accounting firms to audit the financial reports

of its holding subsidiaries and is able to evaluate the implementation and supervision of internal control

systems of holding subsidiaries.Risk warning regarding abnormal management and control of subsidiaries

"□ Applicable" "√ Not applicable"

12. Description of the Internal Control Audit Report Related Circumstances

"√ Applicable" "□ Not applicable"

81 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

In accordance with the "Guidelines for Internal Control Audits" and relevant requirements of Chinese

CPA professional standards Tianjian Accounting Firm (Special General Partnership) audited the

effectiveness of the internal control of the company's financial report as of December 31 2025 and

issued a report stating that "Hangcha Group Co. Ltd. maintained effective internal control over financial

reporting as of December 31 2025 in all material respects in accordance with the 'Basic Norms for

Enterprise Internal Control' and related regulations."

Is the Internal Control Audit Report Disclosed

Type of Internal Control Audit Report Opinion:

Was a non-standard audit opinion on internal controls issued during the Reporting Period or the previous

year

"□ Yes" "√ No"

13. Self-Inspection Issue Rectification Status for Listed Company Governance Special Action

None

14. Environmental information of listed companies and their major subsidiaries included in the

List of Enterprises Legally Required to Disclose Environmental Information

"√ Applicable" "□ Not applicable"

Number of enterprises included in

the List of Enterprises Legally 2

Required to Disclose Environmental

Information (Number)

No. Company name Index to the reports regarding law-based disclosure of environmental information

Ecology and Environment Department of Zhejiang - System on Corporate

1 Hangcha Group Co. Ltd. Environmental Information Disclosed in accordance with the Law

https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=9133000014304182XR

&uniqueCode=09de553501ecf2aa&date=2025&type=true&isSearch=true

Ecology and Environment Department of Zhejiang - System on Corporate

Hangzhou Hangcha Environmental Information Disclosed in accordance with the Law

2 Foundry Co. Ltd. https://mlzj.sthjt.zj.gov.cn/eps/index/enterprise-morecode=913301856680044581

&uniqueCode=2a512d63e2373654&date=2025&type=true&isSearch=true

Other notes

"√ Applicable" "□ Not applicable"

In accordance with the provisions of the Measures for the Administration of the Law-Based Disclosure

of Environmental Information by Enterprises (Order No. 24 of the Ministry of Ecology and Environment

of the People's Republic of China issued on December 11 2021 and effective from February 8 2022)

the Notice on Issuing the Format for Law-Based Disclosure of Environmental Information by

Enterprises (Huanban Zonghe [2021] No. 32) and the Implementation Plan for the Reform of the

Law-Based Disclosure System of Environmental Information in Zhejiang Province (Issued in April 2022

by the Ecology and Environment Department of Zhejiang) as well as the industry background

corresponding to the 2025 List of Companies Disclosing Environmental Information published in

various regions the Company and its relevant subsidiaries have completed the environmental

information filing and disclosure work for 2025.

82 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

15. Social Responsibility Work Status

(1) Whether a social responsibility report sustainable development report or esg report is

disclosed separately

"√ Applicable" "□ Not applicable"

Please refer to the 2025 Sustainable Development (ESG) Management Report disclosed by the Company

on April 22 2026 on the website of Shanghai Stock Exchange (www.sse.com.cn).

(2) Specific details of social responsibility work

"□ Applicable" "√ Not applicable"

Specific Statement

"□ Applicable" "√ Not applicable"

16. Consolidation and Expansion of Achievements in Poverty Alleviation and Rural

Revitalization

"√ Applicable" "□ Not applicable"

Poverty Alleviation and Rural Quantity/Content Notes

Revitalization Projects

Total investment (Ten thousand yuan) 220.58

Including: funds (Ten thousand yuan) 0.80 One-on-one assistance

Material value (Ten thousand yuan) 219.78 Purchase of products that better support farmers

Number of Beneficiaries: (Persons) 7000

Forms of Assistance (e.g. Industrial

Poverty Alleviation Employment

Poverty Alleviation Educational

Poverty Alleviation etc.)

Specific Statement

"√ Applicable" "□ Not applicable"

Guided by a sense of mission and responsibility the Company fulfills its legal obligations to consumers

communities and the environment while generating profits and fulfilling its legal obligations to

shareholders and employees. It does not take profit as its sole goal and places greater emphasis on

human concern in the production process and the enhancement of personal value. The Company

continues to fulfill its corporate social responsibility and to promote employee value enhancement

environmental protection and social welfare. Through these efforts the Company contributes to

sustainable development.Main achievements of the Company in poverty alleviation and rural revitalization are as follows:

(1) Industrial poverty alleviation: Strengthen the rural-urban cooperation mechanism focus on assisting

Zitong Town in Chun'an County promote the collective economic income increase project of Fushi

Village and continue to consolidate the dual-drive model of "economic weakness elimination and

income increase + art industry". The Company promotes sustainable rural development through

industrial development.

(2) Employment-based poverty alleviation: Drive the development of rural industries in villages such as

Guifangqiao Village in Lin'an District through the co-construction mechanism for alliance building

Party building and industry development of the Tianmu Common Prosperity Alliance and create over

83 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

150 new jobs. The Company promotes farmers' income growth and prosperity through industrial

development.

(3) Education-based poverty alleviation: In conjunction with the Party building co-construction unit the

Party Branch of Zhejiang Sinopec Lubricating Oil the Company conducts one-on-one assistance and

relief activities annually to care for He Yun a student from Yuqian Town in Lin'an District.

(4) Public welfare assistance: Respond positively to the call of the "Ten Thousand Enterprises Helping

Ten Thousand Villages" campaign and deepen the Lin'an-Baiyu counterpart support. The Company

contributes to rural revitalization through human settlement environment improvement projects. The

Company's continuous investment in social responsibility has earned it recognition and it has been rated

as one of the "Top 100 Private Enterprises in Social Responsibility in Zhejiang" for two consecutive

years.The company actively responded to the call of the Hangzhou municipal government and was among the

first units to become a member of the Hangzhou Assistance Group. Since 2000 it has paired assistance

with "Zuokou Township" and "Zitong Town" in Chun'an County as well as Tianmushan Town in Lin'an

District. For nearly two decades the Company has provided over RMB 16 million in financial and

material assistance.During the Reporting Period the Company continued to strengthen the co-construction mechanism for

alliance building Party building and industry development via the platform of Tianmu Common

Prosperity Alliance. The Company has expanded the scope of enterprise-village cooperation through

joint alliance building strengthened the leading role of organizations through joint Party building and

driven industrial development through talent support. As a representative of the Tianmu Common

Prosperity Alliance in Lin'an District Hangcha Group actively fulfills its corporate social responsibility.The company contributes to the common prosperity efforts in Guifangqiao Village in Lin'an District and

supports the implementation of the rural revitalization strategies.During the Reporting Period the Company continued its efforts in social responsibility and sustainable

development. With its exceptional practices in environmental governance and green and low-carbon

transformation the Company was included in the 2025 Sino-Securities Index Green and Low-Carbon

Pioneer list among fewer than 30 companies nationwide. This fully demonstrates the leading position of

the Hangcha Group in the field of sustainable development. The company was included in

Sino-Securities' list of the top 100 A-share listed companies in terms of initial ESG reports.

84 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

In fulfilling its social responsibility the company attaches great importance to the integration of product

safety and social value. In June 2025 the Company was invited to participate in the main event of the

2025 National Special Equipment Safety Day which was hosted by the State Administration for Market

Regulation and had the theme "Safeguarding Special Equipment Safety Sharing a Better Life". The

Company provided three new energy products including a lithium-ion high voltage forklift and a

hydrogen fuel cell forklift for a forklift skills demonstration and organized a team to conduct the on-site

demonstration. This fully demonstrates Hangcha Group's high sense of mission and responsibility as an

industry leader in the field of special equipment safety. In October the Company unveiled its X1 Series

logistics robot at CeMAT ASIA 2025 marking the completion of its strategic upgrade from a traditional

industrial vehicle manufacturer to a provider of intelligent logistics solutions for all scenarios. During

the exhibition the Company held the "Agent New Ecosystem" Hangcha Group Industrial Technology

Innovation Forum inviting experts and scholars from Zhejiang University Manycore Tech and other

institutions to engage in in-depth exchanges with company representatives on "The Industrialization of

Embodied Intelligence".Regarding the construction of its ESG governance system the Company formulated and released the

Sustainable Development (ESG) Management System in April 2025 establishing an ESG management

system under the leadership of the Board of Directors. It clearly defines the responsibilities of the Board

of Directors the Strategy Committee the ESG Working Group and various implementing units

providing institutional guarantees for the Company's systematic promotion of ESG. The company

continues to expand its global network accelerating the implementation of its "localization of

production + globalization of market + localization of service" strategy. Construction has commenced on

85 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

its production base in Thailand and its European leasing company its subsidiaries in Vietnam Malaysia

and Indonesia and the American intelligent logistics company are operational. With over 20 overseas

subsidiaries it has formed a global network encompassing marketing R&D manufacturing and leasing.Over the past few years Hangcha Group has adhered to the core value of "Integrity as the Foundation

Efficiency as the Priority; Sustainable Development and Giving Back to Society" actively improving

the working environment fulfilling social responsibilities and refining its governance system. The

company incorporates various elements of social responsibility into its daily management and operations

striving for harmonious and win-win development between the enterprise and its employees the

enterprise and society and the enterprise and the environment. It seeks to organically combine its

development with social progress and embodies the win-win philosophy in fulfilling the social

responsibilities of a listed company.Going forward Hangcha Group will further solidify its commitment to social responsibility further

contribute to Zhejiang's high-quality development and demonstrate a new look in establishing itself as a

socially responsible brand. The Company will achieve new breakthroughs in improving its ESG

governance capabilities continue to focus on the direction of its green intelligent and international

development strategies accelerating its progress towards becoming one of the world's top five forklift

manufacturers and contributing to sustainable social development.

17. Other Matters

"□ Applicable" "√ Not applicable"

86 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 5 Important Matters

1. Commitment Fulfillment Status

(1) The commitments made by the company's actual controllers shareholders related parties acquirers and other relevant parties during the Reporting

Period or continuing into the Reporting Period."√ Applicable" "□ Not applicable"

If not

Is It If not timely timely

Commitment Commitment Commitment Is There a Deadline of Timely fulfilled specify

Background Type Made by Content Made on Fulfillment commitment and

fulfilled

the reasons for the

Deadline Strictly specify

Fulfilled non-fulfillment. the next

steps.

1. The Company will not directly or indirectly

engage in or participate in any business activity

that constitutes potential direct or indirect

competition with the business activities of the

listed company and its subsidiaries and the

Company will ensure that effective legal measures

are taken to prevent other companies controlled by

the Company from engaging in or participating in

any business activities that competes with the

Commitments Resolution of

Related to Competing Hangcha business activities of the listed company and its

Major Asset Business Holding subsidiaries. 2. If the listed company further

Long-term No Long-term Yes N/A N/A

Restructuring Issues expands its scope of business the Company and

other companies under its control will not

compete with the listed company's business

activities under the expanded scope. If there is

potential competition with the listed company's

business activities under the expanded scope the

Company and other companies under its control

will exit the competition with the listed company

in the following ways: A) ceasing the business

activities that constitute or may constitute

87 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

competition with the listed company; B)

integrating the competing business activities into

the listed company's operations; C) transferring

the competing business activities to an unrelated

third party. 3. If the Company or other companies

under its control have any commercial opportunity

to engage in or participate in any activity that may

compete with the listed company's operations the

Company or other companies under its control

will immediately notify the listed company of

such commercial opportunity. If the listed

company confirms its willingness to take

advantage of the opportunity within the reasonable

period specified in the notification the Company

or other companies under its control will make all

efforts to provide the commercial opportunity to

the listed company. 4. If I breach the above

commitments the Company is willing to bear all

liability arising therefrom and fully indemnify the

listed company for all direct or indirect losses.

1. I will not directly or indirectly engage in or

participate in any business activity that constitutes

potential direct or indirect competition with the

business activities of the listed company and its

subsidiaries and I will ensure that effective legal

measures are taken to prevent other companies

Resolution of controlled by me from engaging in or participating

Competing Qiu Jianping in any business activities that competes with the Long-term No Long-term Yes N/A N/A

Business business activities of the listed company and its

Issues subsidiaries. 2. If the listed company further

expands its scope of business I and other

companies under my control will not compete

with the listed company's business activities under

the expanded scope. If there is potential

competition with the listed company's business

activities under the expanded scope I and other

88 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

companies under my control will exit the

competition with the listed company in the

following ways: A) ceasing the business activities

that constitute or may constitute competition with

the listed company; B) integrating the competing

business activities into the listed company's

operations; C) transferring the competing business

activities to an unrelated third party. 3. If I or

other companies under my control have any

commercial opportunity to engage in or participate

in any activity that may compete with the listed

company's operations I will immediately notify

the listed company of such commercial

opportunity. If the listed company confirms its

willingness to take advantage of the opportunity

within the reasonable period specified in the

notification I will make all efforts to provide the

commercial opportunity to the listed company. 4.If I breach the above commitments I am willing

to bear all liability arising therefrom and fully

indemnify the listed company for all direct or

indirect losses.

1. The Company and the companies under its

control will reduce related party transactions with

the listed company as much as possible and will

not seek treatment more favorable than that given

to other third parties in business cooperation with

Resolution of the listed company by taking advantage of its

Hangcha position as the controlling shareholder of the listed

Related Holding Long-term No Long-term Yes N/A N/A

Transactions company. 2. The Company will not seek

preference in reaching transactions with the listed

company by taking advantage of its position as the

controlling shareholder of the listed company. 3.If any related party transaction is indeed necessary

and unavoidable I and the companies under my

control will sign agreements with the listed

89 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

company in accordance with the principles of

equality fairness and equal consideration

perform legal procedures fulfill information

disclosure obligations and relevant internal

decision-making and approval procedures as

required by relevant laws regulations normative

documents and the Company's Articles of

Association ensure that transactions with the

listed company will not be conducted under terms

that are evidently unfair compared to market

prices and refrain from any acts that harm the

legitimate rights and interests of the listed

company and other shareholders through such

transactions.

1. I and the companies under my control will

reduce related party transactions with the listed

company as much as possible and will not seek

treatment more favorable than that given to other

third parties in business cooperation with the

listed company by taking advantage of my

position as the actual controller of the listed

company. 2.I will not use my position as the

actual controller of a listed company to seek the

Resolution of right to prioritize transactions with the listed

Related Qiu Jianping company. 3.In the event that there are necessary Long-term No Long-term Yes N/A N/A

Transactions and unavoidable related transactions I and the

enterprises I control will enter into agreements

with the listed company in accordance with the

principles of fairness equity and equivalent

compensation. We will follow the legal

procedures and in compliance with the

requirements of relevant laws regulations and

normative documents as well as the provisions of

the "Articles of Association" we will fulfill our

information disclosure obligations and follow the

relevant internal decision-making and approval

90 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

procedures. We will ensure that we do not conduct

transactions with the listed company under

conditions that are significantly unfair compared

to market prices nor will we engage in any

actions that harm the legal rights and interests of

the listed company and other shareholders through

such transactions.The Company undertakes that after the completion

of this transaction it will ensure that the listed

company continues to improve its corporate

governance structure and independent operating

Hangcha management system in accordance with theOther

Holding requirements of relevant laws regulations and its

Long-term No Long-term Yes N/A N/A

Articles of Association and the listed company

will maintain its independence in terms of

business assets finance institutions staffing and

other aspects to effectively protect the interests of

all shareholders.I undertake that after the completion of this

transaction I will ensure that the listed company

continues to improve its corporate governance

structure and independent operating management

Other Qiu Jianping system in accordance with the requirements of Long-term No Long-term Yes N/A N/A

relevant laws regulations and its Articles of

Association and the listed company will maintain

its independence in terms of business assets

finance institutions staffing and other aspects to

effectively protect the interests of all shareholders.The Company undertakes that the net profit

achieved by Zhejiang Guozi Robotics Co. Ltd.(hereinafter referred to as "Guozi Robot" or the

"Target Company") during the profit commitment 2025 2026 2025 2026

Other Qiu Jianping Yes Yes N/A N/A

period (hereinafter referred to as "actual net and 2027 and 2027

profit") will not be lower than the net profit

predicted in the Asset Appraisal Report issued by

the appraisal institution for the same period

91 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(hereinafter referred to as "net profit

commitment"). Otherwise the party responsible

for the performance commitment shall

compensate Party C in accordance with the

Capital Increase and Asset Purchase Agreement

and this Agreement. According to the appraisal

report issued by the appraisal institution the

Target Company's net profit commitments for

2025 2026 and 2027 are RMB 12.92 million

RMB 26.01 million and RMB 48.15 million

respectively. All parties agree that if during the

profit commitment period the cumulative net

profit of the target asset over three years is lower

than the cumulative committed net profit of RMB

87.08 million the party responsible for the

performance commitment shall provide cash

compensation to Party C for the loss due to the

underperformance of the target company acquired

by Party C through the issuance of new shares.The amount of compensation to be paid by the

party responsible for the performance

commitment shall be calculated according to the

following formula: Total amount to be

compensated = Cumulative committed net profit

during the profit commitment period - Cumulative

realized net profit during the profit commitment

period.If the prospectus for this public offering of shares

contains false records misleading statements or

Commitments significant omissions that materially affect the

Related to judgment of whether the company meets the legal

Initial Public Other Co. Ltd. conditions for issuance the company will Long-term No Long-term Yes N/A N/A

Offering (IPO) promptly propose a share repurchase plan and

submit it for discussion by the board of directors

and the shareholders' meeting. The company will

legally repurchase the newly issued shares from

92 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

the initial public offering (excluding shares

publicly offered by original shareholders). For

shares that have been issued but not yet listed the

repurchase price will be determined based on the

issuance price plus the interest on bank deposits at

the same period; for shares that have been listed

the repurchase price will be determined based on

the company's stock issuance price plus the

interest on bank deposits for the same period and

the higher of the average closing price of the stock

for the twenty trading days preceding the

recognition of the above matters. The

implementation of the above share repurchase will

be carried out in accordance with the relevant

laws regulations and procedures stipulated in the

company's articles of association. If there are other

stipulations in laws regulations or the company's

articles of association during the implementation

of the repurchase those stipulations shall prevail.If the company’s stock undergoes any distribution

of dividends bonus shares or capitalization of

reserves the issuance price shall be adjusted

accordingly. If the company's prospectus contains

false records misleading statements or significant

omissions that cause investors to suffer losses in

securities trading the company will compensate

investors for their losses in accordance with the

law. After such illegal facts are recognized by the

China Securities Regulatory Commission

securities exchanges or judicial authorities the

company will simplify procedures actively

negotiate provide advance payments and take

practical measures to protect the interests of

investors especially small and medium-sized

investors and will compensate investors for their

direct economic losses incurred as a result by

93 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

choosing to settle with investors mediating with

investors through third parties and establishing an

investor compensation fund among other means.If the prospectus of the company contains false

records misleading statements or significant

omissions that lead to investor losses in securities

trading I will compensate investors for their

losses in accordance with the law. After such

illegal facts are recognized by the China Securities

Directors and Regulatory Commission securities exchanges or

judicial authorities the company will simplify

Other senior

managers of procedures actively negotiate provide advance

Long-term No Long-term Yes N/A N/A

the Company payments and take practical measures to protect

the interests of investors especially small and

medium-sized investors and will compensate

investors for their direct economic losses incurred

as a result by choosing to settle with investors

mediating with investors through third parties and

establishing an investor compensation fund

among other means.

(1) I/this company is currently not engaged in the

same business operations as Hangcha Group and

will not have direct or indirect industry

competition with Hangcha Group. In the future

Controlling I/this company will not engage in any form of

Shareholder: business activities that are the same as or similar

Resolution of to the existing business and related products of

Competing Hangcha

Holdings Hangcha Group including not engaging in anyBusiness Long-term No Long-term Yes N/A N/A

Actual form of industry competition with Hangcha GroupIssues

Controller: through investment acquisition or merger with

Chou Jianping companies or other economic organizations that

operate the same or similar businesses and related

products as Hangcha Group. (2) The enterprises

that I/this company currently or will invest in and

control will also not engage in the same business

operations as Hangcha Group and will not have

94 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

direct or indirect industry competition with

Hangcha Group. (3) If there are business

opportunities within the scope of Hangcha Group's

operations I/this company will prioritize

transferring or introducing such opportunities to

Hangcha Group.

(1) I/this company will not overstep my/its

authority to interfere with the company's

management activities or infringe upon the

company's interests; I/this company will not

provide benefits to other units or individuals on an

unpaid basis or under unfair conditions nor will

I/it engage in other actions that harm the

company's interests. (2) As of the date of this

Controlling commitment if the China Securities Regulatory

Shareholder: Commission (CSRC) issues new regulatory

provisions regarding compensation measures and

Hangcha

Other Holdings commitments that the above commitments do not Long-term No Long-term Yes N/A N/A

Actual meet I/this company commits to providing

Controller: supplemental commitments in accordance with theCommitments

Chou Jianping latest regulations of the CSRC at that time. (3) IfRelated to I/this company violates these commitments or

Refinancing refuses to fulfill them I/this company willingly

accepts relevant penalties or management

measures imposed by the CSRC the Shanghai

Stock Exchange and other securities regulatory

agencies; if violating these commitments causes

losses to the company or its shareholders I/this

company is willing to bear legal liability for

compensation.

(1) I will not provide benefits to other units or

Directors and individuals on an unpaid basis or under unfair

conditions nor will I engage in other actions that

Other senior Long-term No Long-term Yes N/A N/A

executives harm the company's interests. (2) I will strictly

adhere to the company's budget management and

any expenses incurred in my capacity will only be

95 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

within the necessary scope of fulfilling my

responsibilities subject to strict supervision and

management by the company to avoid waste or

premature spending. (3) I will not use company

assets for investment or consumption activities

unrelated to my responsibilities. (4) I will make

my utmost effort to promote the implementation

of measures for timely returns. I will be

responsible for linking the execution of the

compensation system established by the board of

directors or the compensation committee with the

company's measures for filling returns. (5) I will

be responsible for linking the exercise conditions

(if any) of the company's proposed equity

incentive plans to be published in the future with

the execution of the company's measures for

filling returns. I will support relevant proposals

that tie to the implementation of the company's

measures for filling returns and will be willing to

vote in favor (if I have voting rights). (6) As of the

date of this commitment if regulatory agencies

introduce additional requirements regarding

measures for filling returns and their

commitments and if the above commitments do

not meet the relevant requirements I promise to

provide supplemental commitments according to

the relevant regulations at that time. (7) If I violate

or refuse to fulfill the above commitments I am

willing to bear corresponding responsibilities

according to the relevant regulations and rules of

the China Securities Regulatory Commission and

the Shanghai Stock Exchange.

96 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2) If the Company has profit forecasts for its assets or projects and the Reporting Period is still

within the profit forecast period the Company shall provide an explanation of whether the assets

or projects have met the original profit forecasts and the reasons for it

"□ Achieved" "□ Not Achieved" "√ Not applicable"

(3) Performance Commitments

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Commitment Made by Commitment

Actual

Commitment Indicator Commitment Completion

Background Period Amount Amount Rate (%)

Achieved

1. According to the appraisal

report issued by the appraisal

institution the net profit

commitments of Guozi Robot

for 2025 2026 and 2027 are

RMB 12.92 million RMB

26.01 million and RMB 48.15

million respectively. 2.During the profit commitment

Commitments period if the cumulative net

Related to the Qiu profit of the target asset over

Acquisition of Jianping 2025-2027 three years is lower than the 8708 512.10 5.88

cumulative committed net

Guozi Robot

profit of RMB 87.08 million

the party responsible for the

performance commitment

shall provide cash

compensation to Party C for

the loss due to the

underperformance of the

target company acquired by

Party C through the issuance

of new shares.Changes in performance commitments

"□ Applicable" "√ Not applicable"

Other notes

"□ Applicable" "√ Not applicable"

2. Non-operating Fund Occupation by Controlling Shareholders and Other Related Parties

During the Reporting Period

"□ Applicable" "√ Not applicable"

3. Illegal Guarantee Situations

"□ Applicable" "√ Not applicable"

4. Board of Directors' Explanation Regarding "Non-standard Opinion Audit Report" from the

Accounting Firm

"□ Applicable" "√ Not applicable"

97 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

5. Analysis and Explanation of the Reasons and Impact of Changes in Accounting Policies

Accounting Estimates or Corrections of Significant Accounting Errors

(1) explanation of reasons and impact of changes in accounting policies and estimates

"√ Applicable" "□ Not applicable"

1. Changes in significant accounting policies

"√ Applicable" "□ Not applicable"

On December 5 2025 the Ministry of Finance of the People's Republic of China (hereinafter referred to

as the "Ministry of Finance") issued the Interpretation No. 19 of the Accounting Standards for Business

Enterprises (No. 32 [2025] of the Ministry of Finance) which stipulates the following: Accounting

Treatment of Compensating Assets in Business Combinations Involving Enterprises Not Under

Common Control Accounting Treatment of Related Capital Reserves in Disposal of Subsidiaries

Acquired Through Business Combinations Involving Entities Under Common Control Derecognition of

Financial Liabilities Settled Using Electronic Payment Systems Assessment and Disclosure of Cash

Flow Characteristics of Financial Asset Contracts and Disclosure of Equity Instruments Measured at

Fair Value Through Other Comprehensive Income.The aforementioned accounting treatment regulations took effect on January 1 2026. The Company's

implementation of such standards has no impact on the financial statements for the current Reporting

Period.

2. Changes in significant accounting estimates

"□ Applicable" "√ Not applicable"

(1) The Company's analysis and explanation of the reasons and impact of corrections of

significant accounting errors

"□ Applicable" "√ Not applicable"

(2) Communication status with the former accounting firm

"□ Applicable" "√ Not applicable"

(3) Approval procedures and other explanations

"□ Applicable" "√ Not applicable"

6. Appointment and Dismissal of Accounting Firms

Unit: Ten thousand yuan Currency: CNY

Current Appointment

Accounting firm in China Pan-China Certified Public Accountants LLP

(Special General Partnership)

Remuneration for Domestic Accounting Firm: 180.00

Audit Tenure for Domestic Accounting Firm: 25

Name of the CPAs from accounting firm in China Huang Yuanxi Tang Zheren

Cumulative Audit Service Tenure of Certified Public Accountants

1 years 3 years

from Domestic Accounting Firm:

Item Remuneration

98 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Internal Control Audit Accounting Pan-China Certified Public Accountants LLP

30.00

Firm (Special General Partnership)

Explanation of Appointment and Dismissal of Accounting Firms

"√ Applicable" "□ Not applicable"

On April 17 2025 the Company held its 20th meeting of the 7th Board of Directors which reviewed

and approved the Proposal on Renewal of the Company’s Audit Firm for 2025 resolving to reappoint

Pan-China Certified Public Accountants LLP (Special General Partnership) as the Company's audit firm

for 2025.Explanation of the Situation Regarding the Reappointment of Accounting Firms During the Audit Period

"□ Applicable" "√ Not applicable"

Explanation of Audit Fees Decreasing by More Than 20% Compared to the Previous Year (Including

20%)

"□ Applicable" "√ Not applicable"

7. Situations Facing Delisting Risk

(1) Reasons leading to the warning of delisting risk

"□ Applicable" "√ Not applicable"

(2) Proposed measures to address the situation

"□ Applicable" "√ Not applicable"

(3) Situations and reasons for facing termination of listing

"□ Applicable" "√ Not applicable"

8. Matters Related to Bankruptcy Reorganization

"□ Applicable" "√ Not applicable"

9. Major Litigation and Arbitration Matters

"□ The Company has major litigation or arbitration matters this year."

"√ The Company does not have any major litigation or arbitration matters this year."

On September 25 2025 the Company disclosed an announcement regarding matters in dispute

involving the original shareholders of the target company in the acquisition of assets from a related party

through capital increase by a controlling subsidiary (Announcement No.: 2025-055) on the website of

Shanghai Stock Exchange (http://www.sse.com.cn). The Company and its controlling subsidiary

Hangcha Guozi Intelligent are not parties involved in the aforementioned case and it will not have an

adverse impact on the daily production and operation of the Company or its subsidiaries.

10. Punishment due to suspected violations of laws and regulations by listed companies and their

directors senior managers controlling shareholders and actual controllers and rectification

measures."□ Applicable" "√ Not applicable"

99 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

11. Explanation of the Integrity of the Company Its Controlling Shareholders and Actual

Controllers During the Reporting Period

"□ Applicable" "√ Not applicable"

12. Major Related Party Transactions

(1) Related party transactions on daily operations

1. Matters disclosed in the temporary announcement with no subsequent progress or changes

"√ Applicable" "□ Not applicable"

Item Overview Search Index

Estimated matters regarding related-party transactions http://www.sse.com.cn (Announcement No.: 2025-011)

of the Company in 2025

2. Matters disclosed in the temporary announcement but with subsequent progress or changes

"□ Applicable" "√ Not applicable"

3. Matters Not Disclosed in the Temporary Announcement

"□ Applicable" "√ Not applicable"

(2) Related party transactions occurring from asset or equity acquisitions or sales

1. Matters disclosed in the temporary announcement with no subsequent progress or changes

"√ Applicable" "□ Not applicable"

Item Overview Search Index

Acquisition of a 99.23% equity interest in Zhejiang Guozi

Robotics Co. Ltd. by the Company's controlling subsidiary http://www.sse.com.cn (Announcement No.: 2025-035)

through capital increase and share expansion as well as

related-party transactions

2. Matters disclosed in the temporary announcement but with subsequent progress or changes

"□ Applicable" "√ Not applicable"

3. Matters Not Disclosed in the Temporary Announcement

"□ Applicable" "√ Not applicable"

4. If Involving Performance Agreements Performance Achievement During the Reporting

Period Should Be Disclosed

"□ Applicable" "√ Not applicable"

(3) major related party transactions of joint external investment

1. Matters disclosed in the temporary announcement with no subsequent progress or changes

"□ Applicable" "√ Not applicable"

2. Matters disclosed in the temporary announcement but with subsequent progress or changes

"□ Applicable" "√ Not applicable"

3. Matters Not Disclosed in the Temporary Announcement

"□ Applicable" "√ Not applicable"

100 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(4) Related party debt and creditor transactions

1. Matters disclosed in the temporary announcement with no subsequent progress or changes

"□ Applicable" "√ Not applicable"

2. Matters disclosed in the temporary announcement but with subsequent progress or changes

"□ Applicable" "√ Not applicable"

3. Matters Not Disclosed in the Temporary Announcement

"□ Applicable" "√ Not applicable"

(5) Financial Transactions Between the Company and Financial Companies with Related

Relationships and Financial Companies Controlled by the Company with Related Parties

"□ Applicable" "√ Not applicable"

(6) Others

"□ Applicable" "√ Not applicable"

13. Significant Contracts and Their Performance

(1) Entrustment contracting and leasing matters

1. Entrustment

"□ Applicable" "√ Not applicable"

2. Contracting Situation

"□ Applicable" "√ Not applicable"

3. Leasing Situation

"□ Applicable" "√ Not applicable"

101 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2) Guarantee Situation

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Company's External Guarantee Situation (Excluding Guarantees for Subsidiaries)

Relationship Date of

Between the Guarantee Guarantee Performance Is the Amount

Guarantee

Guarantor Guarantor Occurrence Guarantee Type of Collateral of Counter-Guarantee

for Related

and the Guaranteed party Amount (Date of Starting Maturity guarantee (if any) completed Guarantee related Relationship

Listed Agreement date or not Overdue

Overdue Situation

Guarantee parties or

Company Signing) not

Guarantee

Co. Ltd. Company Financial lease

with joint

headquarters guarantee 279365322.45 / / / and / No No 0 No Noseveral

liabilities

Total Guarantee Amount During the Reporting Period (Excluding

Guarantees for Subsidiaries) 292160127.86

Total Guarantee Balance at the End of the Reporting Period (A)

(Excluding Guarantees for Subsidiaries) 279365322.45

Company and Its Subsidiaries' Guarantees for Subsidiaries

Total Guarantee Amount for Subsidiaries During the Reporting

Period 520000000.00

Total Guarantee Balance for Subsidiaries at the End of the

Reporting Period (B) 520000000.00

Total Guarantee Situation of the Company (Including Guarantees for Subsidiaries)

Total Guarantee Amount (A + B) 799365322.45

Total Guarantee Amount as a Percentage of Company's Net Assets

(%)6.89

Including:

Amount of Guarantees Provided for Shareholders Actual

Controllers and Their Related Parties (C)

Debt Guarantee Amounts Provided Directly or Indirectly for

Guaranteed Parties with Liabilities Exceeding 70% (D) 500000000.00

Amount of Guarantees Exceeding 50% of Net Assets (E)

Sum of the Above Three Guarantee Amounts (C + D + E) 500000000.00

Explanation of Joint and Several Liability for Guarantees That Have

Not Yet Expired

Guarantee Situation Explanation At the 20th meeting of the 7th Board of Directors on April 17 2025 and at the 2024 Annual General Meeting of Shareholders on May 8 2025

102 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

the Company approved the Proposal on the Company's Estimated External Guarantees for 2025. It was agreed that from the date of the approval

by the 2024 Annual General Meeting of Shareholders until the date of the 2025 Annual General Meeting of Shareholders the Chairman of the

Company is authorized to sign relevant Guarantee Contracts and other legal documents with banks and other financial institutions within the

authorized scope of guarantee.

(3) Situation of Entrusting Others for Cash Asset Management

1. Entrustment Wealth Management Situation

(1). Overall situation of entrustment wealth management

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Type Risk profile Balance not yet due Overdue Amount Not Collected

Securities Firm Wealth Management Products Controllable risks featuring good liquidity 10000.00

Other Situations

"□ Applicable" "√ Not applicable"

(2). Single entrusted wealth management

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Types of Amount of fundsfor entrusted Start date of End date of Allocation of Existence of Actual gains or Outstanding Overdue Amount

Trustee Entrusted Wealth Risk profile entrusted wealth entrusted wealth funds restrictions losseswealth amount Not CollectedManagement management management

management

China CITIC Securities Firm Controllable risks

Wealth Securities Wealth featuring good

Management 4000.00 07/10/2025 Fixed income No 4000.00Co. Ltd. Products liquidity

Securities Firm

China CITIC Wealth Controllable risks

Wealth Securities featuring good 6000.00 07/11/2025 04/06/2026 Fixed income No 6000.00

Co. Ltd. Management liquidity

Products

Other Situations

"□ Applicable" "√ Not applicable"

103 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(3). Impairment provision for entrusted wealth management

"□ Applicable" "√ Not applicable"

2. Entrusted Loan Situation

(1). Overall situation of entrusted loans

"□ Applicable" "√ Not applicable"

Other situations

"□ Applicable" "√ Not applicable"

(2). Single entrusted loan situation

"□ Applicable" "√ Not applicable"

Other situations

"□ Applicable" "√ Not applicable"

(3). Impairment provision for entrusted loans

"□ Applicable" "√ Not applicable"

3. Other Situations

"□ Applicable" "√ Not applicable"

(4) other significant contracts

"□ Applicable" "√ Not applicable"

14. Progress Explanation of Raised Funds Usage

"□ Applicable" "√ Not applicable"

15. Explanation of Other Significant Matters That Have a Major Impact on Investors' Value

Judgments and Investment Decisions

"□ Applicable" "√ Not applicable"

104 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 6 Share Changes and Shareholder Information

1. Changes in Share Capital

(1) Changes in share

1. Changes in share

During the Reporting Period the total number of shares and share capital structure of the company

remained unchanged.

2. Explanation of Share Changes

"□ Applicable" "√ Not applicable"

3. Impact of Share Changes on Financial Indicators such as Earnings Per Share and Net Assets

Per Share for the Last Year and the Most Recent Period (if applicable)

"□ Applicable" "√ Not applicable"

4. Other contents that the Company considers necessary or are required by the securities

regulators to disclose

"□ Applicable" "√ Not applicable"

(2) changes in restricted shares

"□ Applicable" "√ Not applicable"

2. Securities Issuance and Listing Situation

(1) Securities issuance situation up to the reporting period

"□ Applicable" "√ Not applicable"

Explanation of securities issuance situation up to the reporting period (for bonds with different interest

rates during the duration please explain separately):

"□ Applicable" "√ Not applicable"

(2) Changes in total shares and shareholder structure of the company and changes in asset and

liability structure

"□ Applicable" "√ Not applicable"

(3) Existing internal employee shares situation

"□ Applicable" "√ Not applicable"

3. Shareholder and Actual Controller Information

(1) Total Number of Shareholders

Total number of common stock shareholders as of the end of the Reporting Period 19194

(households):

Total number of common stock shareholders as of the end of the previous month prior to 19681

the annual report disclosure:

Total number of preferred stock shareholders with restored voting rights as of the end of 0

the Reporting Period (households):

Total number of preferred stock shareholders with restored voting rights as of the end of 0

the previous month prior to the annual report disclosure:

105 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2) Shareholding Information of the Top Ten Shareholders and Top Ten Circulating

Shareholders (or Shareholders with No Sale Restrictions) as of the End of the Reporting Period

Unit: Share

Shareholding Information of the Top Ten Shareholders (excluding shares lent through margin trading)

Change Number Pledged marked or

During ShareholdingName of shareholder at Period Percentage

of frozen Nature of

(Full Name) the (%) Restricted shareholder

Reporting End Shares Share

Period Held status

Quantity

Domestic

Zhejiang Hangcha Holding -2780100 538662844 41.13 0 None 0

Co. Ltd non-state-owned

legal person

Hangzhou Industrial 267011704 20.39 0 None 0 State-owned

Investment Group Co. Ltd. Entity

Hong Kong Securities 14883776 39973313 3.05 0 None 0 Other

Clearing Company Limited

Zhao Limin 28616014 2.18 0 None 0 Domestic

natural person

National Social Security Fund

-1147910 10429485 0.80 0 None 0 Other

406 Portfolio

Dai Jingjing 47000 9944024 0.76 0 None 0 Domestic

natural person

Agricultural Bank of China

Limited—CSI 500 Exchange 285962 7758168 0.59 0 None 0 Other

Traded Open-End Index

Securities Investment Fund.Domestic

Xu Lida -218900 7432758 0.57 0 None 0

natural person

Schroder Investment

Management (Hong Kong)

Limited - Schroder Global 7386500 7386500 0.56 0 None 0 Other

Fund Series Chinese A-shares

(Exchange)

China Merchants Bank

Corporation - Foresight -961000 6315276 0.48 0 None 0 Other

Growth Value Hybrid

Securities Investment Fund

Shareholding Situation of the Top Ten Shareholders with No Sell Restrictions (Excluding Shares Lent through Transfer

for Financing)

Name of shareholder Number of Circulating Shares with

Type and amount of shares

No Sell Restrictions Type Quantity

RMB Ordinary

Zhejiang Hangcha Holding Co. Ltd 538662844 538662844

Shares

Hangzhou Industrial Investment Group 267011704 RMB Ordinary 267011704

Co. Ltd. Shares

Hong Kong Securities Clearing Company 39973313 RMB Ordinary 39973313

Limited Shares

Zhao Limin 28616014 RMB Ordinary 28616014

Shares

National Social Security Fund 406 10429485 RMB Ordinary 10429485

Portfolio Shares

Dai Jingjing 9944024 RMB Ordinary 9944024

Shares

Agricultural Bank of China Limited—CSI RMB Ordinary

77581687758168

500 Exchange Traded Open-End Index Shares

106 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Securities Investment Fund.Xu Lida 7432758 RMB Ordinary 7432758

Shares

Schroder Investment Management (Hong RMB Ordinary

Kong) Limited - Schroder Global Fund 7386500 7386500

Shares

Series Chinese A-shares (Exchange)

China Merchants Bank Corporation - RMB Ordinary

Foresight Growth Value Hybrid Securities 6315276 Shares 6315276

Investment Fund

Explanation of the Repurchase Special

Account Situation Among the Top Ten N/A

Shareholders

Explanation of the Delegation of Voting

Rights Entrusted Voting Rights or N/A

Waiver of Voting Rights by the Above

Shareholders

Description of the relationship or

The company is unaware of any relationships or concerted actions among the

concerted action among the above above shareholders.shareholders

Explanation of Preferred Shareholders

with Restored Voting Rights and Their N/A

Shareholding Amounts

Status of Shareholders Holding More than 5% of Shares the Top Ten Shareholders and the Top Ten

Shareholders with Unrestricted Circulating Shares Participating in Transfer for Financing Activities

"□ Applicable" "√ Not applicable"

Changes in the Top Ten Shareholders and the Top Ten Shareholders with Unrestricted Circulating

Shares Due to Lending/Returning of Shares in Transfer for Financing

"□ Applicable" "√ Not applicable"

Number of Shares Held and Lock-up Conditions of the Top Ten Shareholders with Restricted Shares

"□ Applicable" "√ Not applicable"

(3) strategic investors or general corporations becoming top 10 shareholders due to the

distribution of new shares

"□ Applicable" "√ Not applicable"

4. Situation of Controlling Shareholders and Actual Controllers

(1) Controlling shareholder

1. Legal Entity

"√ Applicable" "□ Not applicable"

Item Zhejiang Hangcha Holding Co. Ltd

Person in Charge or Legal Representative Qiu Jianping

Date of Incorporation 01/23/2003

Main Business Operations Industrial investment development property management real estate

leasing

Shareholdings of other domestic and

overseas listed companies that controlled None

and owned during the Reporting Period

Additional information None

107 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

2. Natural Person

"□ Applicable" "√ Not applicable"

3. Special Explanations for the Absence of Controlling Shareholders in the Company

"□ Applicable" "√ Not applicable"

4. Explanation for Changes in Controlling Shareholders During the Reporting Period

"□ Applicable" "√ Not applicable"

5. Diagram of Property Rights and Control Relationship Between the Company and the

Controlling Shareholder

"√ Applicable" "□ Not applicable"

(2) Situation of actual controllers

1. Legal Entity

"□ Applicable" "√ Not applicable"

2. Natural Person

"√ Applicable" "□ Not applicable"

Name Qiu Jianping

Nationality China

Whether to obtain

residency permits in other No

countries or regions

Main occupation and Chairman and Actual Controller of Zhejiang Hangcha Holdings Co. Ltd.; Company Director

position

1.Hangzhou GreatStar Technology Co. Ltd. Stock Code: 002444

Stock Abbreviation: GreatStar Technology this company was listed on the Shenzhen Stock

Exchange on July 13 2010. Main businesses include hand tools handheld electric tools

smart tools etc.Overseas listed companies 2.Zhejiang Xinchai Co. Ltd. Stock Code: 301032 Stock Abbreviation: Xinchai Co. Ltd.controlled over the past This company was listed on the Shenzhen Stock Exchange on July 22 2021 mainly engaged

decade in diesel engines and parts engineering machinery agricultural machinery casting engine

components and mechanical parts etc.

3. Zhongce Rubber Group Co. Ltd. Stock code: 603049 Stock name: Zhongce Rubber. The

company was listed on the Shanghai Stock Exchange on June 5 2025 and is mainly

engaged in the production and sales of tires car tires and rubber products; wholesale and

retail of auto parts auto oils and auto decorations; and import and export of goods and

108 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

technology (excluding items prohibited by laws and administrative regulations; items

restricted by laws and administrative regulations may be included only after obtaining a

license).

3. Special Explanations for the Absence of an Actual Controller in the Company

"□ Applicable" "√ Not applicable"

4. Explanation for Changes in Company Control During the Reporting Period

"□ Applicable" "√ Not applicable"

5. Block diagram showing the property rights and control relationships between the Company

and the actual controller

"√ Applicable" "□ Not applicable"

6. The actual controller controls the Company via asset management methods such as trust

"□ Applicable" "√ Not applicable"

(3) Other information on controlling shareholders and actual controllers

"□ Applicable" "√ Not applicable"

5. Have the Number of Pledged Shares of the Controlling Shareholder or the Largest

Shareholder and Their Concerted Actors Reached 80% or More of the Shares Held by Them

"□ Applicable" "√ Not applicable"

109 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Other Legal Entity Shareholders Holding More Than 10% of Shares

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency:CNY

Person in Charge Main Business

Name of Legal Entity or Legal Date of Organization Code Registered Activities or

Shareholder Representative Incorporation capital Management

Activities

Hangzhou Industrial Industrial

Investment Group Co. Niu Jian 11/13/2001 91330100730327291G 600000 investment etc.Ltd.Notes None

7. Explanation of Shareholding Restrictions on Reductions

"□ Applicable" "√ Not applicable"

8. Implementation progress of share repurchase during the Reporting Period

"□ Applicable" "√ Not applicable"

9. Information Related to Preferred Shares

"□ Applicable" "√ Not applicable"

110 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 7 Bond-Related Information

1. Company Bonds (Including Corporate Bonds) and Non-Financial Enterprise Debt Financing

Instruments

"□ Applicable" "√ Not applicable"

2. Convertible Corporate Bonds

"□ Applicable" "√ Not applicable"

111 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Chapter 8 Financial reporting

1. Audit Report

"√ Applicable" "□ Not applicable"

To all shareholders of Hangcha Group Co. Ltd.I. Opinion

We have audited the accompanying financial statements of Hangcha Group Co. Ltd. (hereinafter

referred to as “Hangcha Group Company”) which comprise the consolidated and parent company's

balance sheets as at December 31 2025 the consolidated and parent company’s income statements the

consolidated and parent company’s statements of cash flows the consolidated and parent company’s

statements of changes in owners’ equity for the year then ended and the related notes to the financial

statements.In our opinion the accompanying financial statements have been prepared in all material respects in

accordance with the Accounting Standards for Business Enterprises and give a fair view of the

consolidated and parent company’s financial position of Hangcha Group Company as at December 31

2025 and the consolidated and parent company’s operating results and cash flows for the year then

ended.II. Basis for Opinion

We conducted our audit in accordance with the provisions of China CPA Standard on Auditing (CSA).Our responsibilities under those standards are further described in the CPA's Responsibilities for the

Audit of the Financial Statements section of the Audit Report. We are independent of Hangcha Group

and have fulfilled our other ethical responsibilities in accordance with the Independence Standards for

Chinese Certified Public Accountants No. 1—Independence Requirements for Financial Statement

Audits and Review Engagements Effective and the China Code of Ethics for Certified Public

Accountants. In our audit we adhered to the independence requirements for audits of public interest

entities. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.III. Critical Audit Matters

Critical audit matters are those matters that in our professional judgment were of most significance in

our audit of the Financial Statements of the current period. These matters shall be addressed in the

context of our audit of the Financial Statements as a whole and in forming our opinion thereon and we

do not provide a separate opinion on these matters.(i) Revenue

1. Description

For details on relevant information disclosures please refer to Notes 3.26 and 5.2.1 to the financial

statements.The operating revenue of Hangcha Group Company primarily stems from the sales of forklifts and parts.In 2025 its operating revenue amounted to RMB 1773865.20.Hangcha Group Company mainly engages in the sales of forklifts and parts which represent

112 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

performance obligations satisfied at a point in time. Domestic sales revenue is recognized when

Hangcha Group Company delivers the products to the buyer as agreed in the contract receives the

payment or obtains the right to payment and it is probable that the associated economic benefits will

flow into Hangcha Group Company. Export sales revenue is recognized when Hangcha Group Company

completes customs clearance as agreed in the contract receives a bill of lading receive the payment for

goods or obtains the right to payment and it is probable that the associated economic benefits will flow

into Hangcha Group Company.As operating revenue is one of the key performance indicators of Hangcha Group Company there exists

an inherent risk that management of Hangcha Group Company (hereinafter referred to as “Management”)

may meet specific targets or expectations through inappropriate revenue recognition. Therefore we

included revenue recognition as a critical audit matter.

2. Audit response

(1) Obtained an understanding of the key internal controls related to revenue recognition evaluated the

design of these controls identified whether they are implemented and tested whether the relevant

internal controls function effectively;

(2) Perform analytical procedures on operating revenue by year month product and customer to

identify significant or unusual fluctuations and investigate their causes;

(3) Analyze business models and sales contracts to identify contractual terms and conditions related to

the transfer of control over goods and related performance obligations and evaluate whether revenue

recognition policies comply with the Accounting Standards for Business Enterprises;

(4) For domestic sales revenue: Select items to verify supporting documents including sales contracts

delivery notes shipping documents sales invoices and acceptance certificates. For export sales revenue:

Select items to verify supporting documents such as sales contracts export customs declarations bills of

lading and sales invoices and conduct interviews with certain key customers;

(5) Perform confirmation procedures on accounts receivable and select key customers to confirm sales

revenue for the current period;

(6) Performed a cut-off test on the operating revenues recognized before and after the balance sheet date

to evaluate whether the operating revenues have been recognized within the appropriate period; and

(7) Assessed whether the information related to the operating revenues has been appropriately presented

in the Financial Statements.(ii) Impairment of accounts receivable and contract assets

1. Description

For details on relevant information disclosure please refer to Notes 3.12 5.1.5 and 5.1.10 to the

financial statements.As of December 31 2025 Hangcha Group Company reported a book balance of accounts receivable of

RMB 315583.05 with the provision for bad debts of RMB 23591.05 resulting in the carrying amount

of RMB 291992.00 and a book balance of contract assets of RMB 21556.06 with the provision for

impairment of RMB 2522.23 resulting in the carrying amount of RMB 19033.83.

113 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Management measures loss provisions for amounts receivable and contract assets at an amount equal to

lifetime ECL either individually or collectively based on their credit risk characteristics. Due to the

significant amounts of accounts receivable and contract assets and the significant management judgment

involved in their impairment testing we identified the impairment of accounts receivable and contract

assets as a key audit matter.

2. Audit response

We performed the following audit procedures for impairment of accounts receivable and contract assets

among others:

Obtain an understanding of internal controls relevant to the impairment of accounts receivable and

contract assets evaluate the design of these controls determine whether they have been implemented

and test the operational effectiveness of relevant internal controls;

Review the results of Management’s estimates of provisions for bad debts and impairment in previous

years or subsequent re-estimates thereof made by Management;

Review the relevant considerations and objective evidence of Management’s credit risk evaluation of

accounts receivable and contract assets and evaluate whether Management has properly identified the

credit risk characteristics of all accounts receivable and contract assets;

For accounts receivable and contract assets measured for expected credit losses on an individual basis

review Management’s forecast of expected cash flows evaluate the appropriateness of significant

assumptions and the appropriateness relevance and reliability of data used in the forecast and verify

them against the external evidence obtained;

(5) for accounts receivable and contract assets measured for expected credit losses on a portfolio basis

evaluate the reasonableness of Management’s classification of portfolios by credit risk characteristics;

evaluate the reasonableness of the expected credit loss rates for accounts receivable and contract assets

determined by Management including the appropriateness of significant assumptions used and the

appropriateness relevance and reliability of data; and test the accuracy of Management’s calculation of

provisions for bad debts and impairment;

(6) Evaluate the reasonableness of Management’s provision for bad debts and impairment by combining

the confirmation procedures on accounts receivable and contract assets with the subsequent payments

after the period;

(7) Verify whether the information related to the impairment of accounts receivable and contract assets

has been appropriately presented in the financial statements.IV. Other information

The Management of the Company are responsible for the other information. The other information

comprises all the information included in the annual report other than the Financial Statements and our

Audit Report thereon.Our audit opinion on the Financial Statements does not cover the other information and we do not

express any form of appraisal conclusion thereon.We are responsible for reading the other information based on our audit of the Financial Statements and

114 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

in doing so consider whether the other information is materially inconsistent with the Financial

Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.If we conclude that there is a material misstatement of the other information based on the work we have

performed we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and those charged with governance for the Financial

Statements

The Management of the Company is responsible for the preparation of the Financial Statements that give

a true and fair view in accordance with the Accounting Standards for Business Enterprises and for the

design implementation and maintenance of such internal controls so as to ensure that the Financial

Statements are free from material misstatement whether due to fraud or error.In preparing the financial statements Management is responsible for assessing Hangcha Group

Company’s ability to continue as a going concern disclosing as applicable matters related to going

concern and using the going concern basis of accounting unless management either intends to liquidate

Hangcha Group Company or to cease operations or has no realistic alternative but to do so.Those charged with governance of Hangcha Group Company (hereinafter referred to as “Those Chargedwith Governance”) are responsible for overseeing the preparation of those financial statements of

Hangcha Group Company.VI. Responsibilities of the CPAs for the audit of the Financial Statements

We aim to obtain reasonable assurance about whether the Financial Statements are free from material

misstatement whether due to fraud or error and to issue an audit report that includes our audit opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in

accordance with the CSA will always detect a material misstatement when it exists. Misstatements can

arise from fraud or error and are considered material if individually or in the aggregate they could

reasonably be expected to influence the economic decisions of users taken on the basis of these Financial

Statements.As part of an audit in accordance with the CSA we exercise professional judgment and maintain

professional scepticism throughout the audit. We also:

(I) Identify and assess the risks of material misstatement of the Financial Statements whether due to

fraud or error design and perform audit processes responsive to those risks and obtain audit evidence

that is sufficient and appropriate to provide a basis for our opinion. As fraud may involve collusion

forgery intentional omissions misrepresentations or the override of internal control the risk of failing

to detect a material misstatement resulting from fraud is higher than the risk of failing to detect a

material misstatement resulting from error.(II) Obtain an understanding of internal controls relevant to the audit in order to design appropriate audit

processes.(III) Evaluate the appropriateness of accounting policies used by the Management and the rationality of

accounting estimates and related disclosures made by the Management.(IV) Conclude on the appropriateness of the Management's use of the assumption of ongoing concern

115 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

and based on the audit evidence obtained whether a material uncertainty exists related to events or

conditions that may cast significant doubt on Hangcha Group Company’s ability to continue as a going

concern. In accordance with the CSA we are required to draw attention in our audit report to the related

disclosures in the Financial Statements if we conclude that a material uncertainty exists or to issue an

audit report containing the modified opinion if such disclosures are inadequate. Our conclusions are

based on the audit evidence obtained up to the date of our audit report. However future events or

conditions may cause Hangcha Group Company to cease to continue as a going concern.(V) Evaluate the overall presentation structure and content of the Financial Statements and whether the

Financial Statements give a true and fair view of the underlying transactions and events.(VI) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or

business activities within Hangcha Group Company to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit and we remain

solely responsible for our audit opinion.We communicate with those charged with governance regarding matters such as the planned scope and

timing of the audit and significant audit findings including any significant deficiencies in internal

control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant

ethical requirements regarding independence and to communicate with them on all relationships and

other matters that may reasonably be considered to bear on our independence and relevant preventive

measures which are applicable.Based on the matters communicated with those charged with governance we determine the matters that

are of most significance in the audit of the Financial Statements of the current period and are therefore

the critical audit matters. We describe such matters in our audit report unless law or regulation precludes

public disclosure of the matters or when in extremely rare circumstances we determine that a matter

should not be communicated in our report because the adverse consequences of doing so would

reasonably be expected to outweigh the public interest benefits of such communication.Pan-China Certified Public Accountants LLP CPA: Huang Yuanxi

(Special General Partnership)

(Project Partner)

Hangzhou China CPA: Tang Zheren

April 21 2026

2. Financial Statements

116 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Consolidated Balance Sheet

12/31/2025

Prepared by: Hangcha Group Co. Ltd.Unit: Yuan Currency: CNY

Item Notes: 12/31/2025 12/31/2024

Current assets:

Cash and bank balances 7.1 4377218636.29 4182694613.32

Settlement funds

Loans to other banks

Held-for-trading financial assets 7.2 100347215.23 85755439.73

Derivative financial assets 1635304.53

Notes receivable 7.4 16088216.14 17251330.80

Accounts receivable 7.5 2919920070.26 2589834496.78

Receivables financing 7.7 472523678.61 294961893.92

Advances paid 7.8 429678941.88 363036264.12

Premiums receivable

Reinsurance accounts receivable

Reinsurance reserve receivable

Other receivables 7.9 243522905.71 278088446.68

Including: Interest receivable

Dividend receivable

Financial assets under reverse repo

Inventories 7.10 3149016928.70 2510734301.65

including: data source

Contract assets 7.6 190338290.04 150249010.24

Assets held for sale

Non-current assets due within one

7.12171096826.36183727543.92

year

Other current assets 7.13 164767630.48 151565268.90

Total current assets 12234519339.70 10809533914.59

Non-current assets:

Loans and advances

Debt investments

Other debt investments

Long-term receivables 7.16 109821993.28 82893465.17

Long-term equity investments 7.17 3036220631.75 2364393754.75

Other equity instrument investments

Other non-current financial assets 7.18 28104279.77 26325621.62

Investment property 7.20 61930796.97 67035373.96

Fixed assets 7.21 3244122167.29 2202710412.14

Construction in progress 7.22 115954043.69 584836969.86

Productive biological assets

Oil & gas assets

Right-of-use assets 7.25 257163174.61 174626534.71

Intangible assets 7.26 433268003.62 404975671.44

including: data source

Development expenditures

including: data source

Goodwill 7.27 10652989.76 10652989.76

Long-term prepayments 7.28 21236643.16 26390164.95

Deferred tax assets 7.29 156350587.52 116828396.16

Other non-current assets 7.30

117 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Total non-current assets 7474825311.42 6061669354.52

Total assets 19709344651.12 16871203269.11

Current liabilities:

Short-term borrowings 7.32 809681176.76 503782164.19

Central bank loans

Loans from other banks

Held-for-trading financial liabilities

Derivative financial liabilities 7.34 366815.63

Notes payable 7.35 1693016977.19 902166339.40

Accounts payable 7.36 2885704219.99 2661188555.82

Advances received 7.37 2642224.15 913546.17

Contract liabilities 7.38 504427817.49 455721742.21

Financial liabilities under repo

Absorbing deposit and interbank

deposit

Deposit for agency security

transaction

Deposit for agency security

underwriting

Employee benefits payable 7.39 157351690.54 145346351.92

Taxes and rates payable 7.40 178395700.20 180477087.33

Other payables 7.41 89848213.54 226421414.75

Including: Interest payable

Dividend payable 40000.00 40000.00

Handling fee and commission payable

Reinsurance accounts payable

Liabilities held for sale

Non-current liabilities due within one 7.43 45843434.26 629798754.44

year

Other current liabilities 7.44 90269550.67 72085065.58

Total current liabilities 6457181004.79 5778267837.44

Non-current liabilities:

Insurance policy reserve

Long-term borrowings 7.45 498000000.00 54717119.68

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 7.47 216401126.07 143909897.42

Long-term payables 7.48 50063656.75 4578954.00

Long-term employee benefits payable

Provisions 7.50 10458112.92 10559000.00

Deferred income 7.51 107370404.53 95177574.52

Deferred tax liabilities 7.29 790688.48 647003.11

Other non-current liabilities

Total non-current liabilities 883083988.75 309589548.73

Total liabilities 7340264993.54 6087857386.17

Owners' (shareholders’) equity:

Paid-in Capital (or Share Capital) 7.53 1309812049.00 1309812049.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserve 7.55 1684194323.19 1496911479.72

Less: Treasury shares

Other comprehensive income 7.57 27349658.38 -4154529.98

118 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Special reserve 7.58 712145.51 2121472.10

Surplus reserve 7.59 654906024.50 654906024.50

General risk reserve

Undistributed profit 7.60 7931367233.79 6656919972.19

Total owners' equity (or shareholders'

equity) attributable to the parent 11608341434.37 10116516467.53

company

Non-controlling shareholders' equity 760738223.21 666829415.41

Total Owner's Equity (or 12369079657.58 10783345882.94

Shareholder's Equity)

Total Liabilities and Owner's Equity 19709344651.12 16871203269.11

(or Shareholder's Equity)

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

Parent Company’s Balance Sheet

12/31/2025

Prepared by: Hangcha Group Co. Ltd.Unit: Yuan Currency: CNY

Item Notes: 12/31/2025 12/31/2024

Current assets:

Cash and bank balances 3179361400.83 3009319307.95

Held-for-trading financial assets 100347215.23 80000333.33

Derivative financial assets

Notes receivable 12898520.65 10289951.17

Accounts receivable 19.1 3834178950.08 3036808048.50

Receivables financing 304231995.64 241700512.87

Advances paid 51387100.54 42474339.91

Other receivables 19.2 28069458.44 36385301.01

Including: Interest receivable

Dividend receivable

Inventories 953942909.96 886530210.32

including: data source

Contract assets 27289061.13 14916040.74

Assets held for sale

Non-current assets due within one

year

Other current assets 25231062.52

Total current assets 8516937675.02 7358424045.80

Non-current assets:

Debt investments

Other debt investments

Long-term receivables

Long-term equity investments 19.3 4687031800.41 3809634099.42

Other equity instrument investments

Other non-current financial assets 25591400.00 25591400.00

Investment property 105032983.07 116934882.69

Fixed assets 1677541552.25 971997970.63

Construction in progress 66088474.50 485529865.89

Productive biological assets

Oil & gas assets

Right-of-use assets

119 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Intangible assets 352635416.29 321547885.32

including: data source

Development expenditures

including: data source

Goodwill

Long-term prepayments 12009643.67 15845397.68

Deferred tax assets 44379275.42 31848322.16

Other non-current assets

Total non-current assets 6970310545.61 5778929823.79

Total assets 15487248220.63 13137353869.59

Current liabilities:

Short-term borrowings 378906318.72 100000000.00

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 1533600000.00 1017600000.00

Accounts payable 2059951863.58 1769306207.71

Advances received

Contract liabilities 127449380.21 91006780.99

Employee benefits payable 54424102.14 53208863.39

Taxes and rates payable 85243404.23 105503344.63

Other payables 5637127.42 36652318.12

Including: Interest payable

Dividend payable

Liabilities held for sale

Non-current liabilities due within one

2314166.67600388888.89

year

Other current liabilities 16568419.42 11830881.53

Total current liabilities 4264094782.39 3785497285.26

Non-current liabilities:

Long-term borrowings 498000000.00

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities

Long-term payables 4578954.00 4578954.00

Long-term employee benefits payable

Provisions

Deferred income 102248391.60 89096793.31

Deferred tax liabilities

Other non-current liabilities

Total non-current liabilities 604827345.60 93675747.31

Total liabilities 4868922127.99 3879173032.57

Owners' (shareholders’) equity:

Paid-in Capital (or Share Capital) 1309812049.00 1309812049.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserve 1724495301.21 1546607800.60

Less: Treasury shares

Other comprehensive income 21029243.45 -14670146.36

Special reserve 280670.44 1484527.12

Surplus reserve 656061435.10 656061435.10

Undistributed profit 6906647393.44 5758885171.56

Total Owner's Equity (or 10618326092.64 9258180837.02

120 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Shareholder's Equity)

Total Liabilities and Owner's Equity 15487248220.63 13137353869.59

(or Shareholder's Equity)

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

Consolidated Income Statement

January - December 2025

Unit: Yuan Currency: CNY

Item Notes: 2025 2024

I. Total operating revenue 7.61 17738651997.86 16749658536.93

Including: Operating revenue 7.61 17738651997.86 16749658536.93

Interest income

Premiums earned

Revenue from handling charges and commission

II. Total operating cost 7.61 15697543127.32 14806937422.16

Including: Operating cost 7.61 13342717775.81 12775733409.22

Interest expenses

Handling charges and commission expenditures

Surrender value

Net payment of insurance claims

Net provision of insurance policy reserve

Premium bonus expenditures

Reinsurance expenses

Taxes and surcharges 7.62 111046902.34 74909304.79

Selling expenses 7.63 889497442.79 751517469.51

Administrative expenses 7.64 488776232.52 425264957.02

R&D expenses 7.65 858946791.62 817491897.92

Financial expenses 7.66 6557982.24 -37979616.30

Including: Interest expense 43043092.17 47435277.98

Interest income 29642658.04 63611335.96

Add: Other earnings 7.67 153258065.53 235964301.69

Investment income (losses presented by “-”) 7.68 470405856.40 384508706.52

Including: Earnings from the investment in associates 470173646.58 384526122.84

and joint ventures

Gains from derecognition of financial assets at

amortized cost

Foreign exchange gains (“-” for losses)

Net exposure hedging income(“-” for loss)

Gains from changes in fair value (“-” for losses) 7.70 714030.86 1277679.89

Credit impairment losses (losses presented by “-”) 7.71 -33802338.76 -65600157.11

Assets impairment loss (losses presented by “-”) 7.72 -29937453.68 -43639661.18

Gains on disposal of assets (“-” for losses) 7.73 311586.41 2773129.92

III. Operating profit (losses presented by “-”) 2602058617.30 2458005114.50

Add: Non-operating revenue 7.74 1524515.20 2726395.54

Less: Non-operating expenditure 7.75 4476206.76 1258313.95

IV. Profit before tax (or less: total loss) 2599106925.74 2459473196.09

Less: Income tax expenses 7.76 281470880.35 282969949.56

V. Net profit ("-" for net loss) 2317636045.39 2176503246.53

(I) Categorized by the continuity of operations

1. Net profit from continuing operations (“-” for net 2317636045.39 2176503246.53

loss)

2. Net profit from discontinuing operations (losses

121 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

presented by “-”)

(II) Categorized by the portion of equity ownership

1. Net income attributable to shareholders of the 2191315695.90 2012853136.12

parent company ("-" for net loss)

2. Net profit attributable to non-controlling 126320349.49 163650110.41

shareholders ("-" for net loss)

VI. Other comprehensive income after tax 31623883.25 6390468.42

(I) Items attributable to the owners of the parent 31504188.36 6525444.42

company

1． Not to be reclassified subsequently to profit or

loss

1. Remeasurement gains or losses of a defined benefit

plan

2. Other comprehensive income using the equity

method that will not be reclassified to profit or loss

3. Changes in fair value of other equity instrument

investments

4. Changes in fair value of enterprise’s own credit

risk

2． To be reclassified subsequently to profit or loss 31504188.36 6525444.42

1. Other comprehensive income that can be 35699389.81 18067000.13

reclassified to profit or loss in equity method

2. Changes in fair value of other debt investments

3. Amount of financial assets reclassified into other

comprehensive income

4. Provision for credit impairment of other debt

investments

5. Cash flow hedging reserves

6. Exchange differences on translation of foreign -4195201.45 -11541555.71

currency financial statements

(7) Others

(II) Items attributable to non-controlling shareholders 119694.89 -134976.00

VII. Total comprehensive income 2349259928.64 2182893714.95

(I) Items attributable to the owners of the parent

2222819884.262019378580.54

company

(II) Items attributable to non-controlling shareholders 126440044.38 163515134.41

VIII. Earnings per share (EPS):

(i) Basic earnings per share (RMB/share) 1.67 1.54

(ii) Diluted earnings per share (RMB/share) 1.67 1.54

Regarding the combination of enterprises under common control that occurred during the current period the net profit

realized by the combined company before the combination was RMB -16004728.24 and net profit realized by the

combined company in the prior period was RMB 44849461.29.Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

Parent Company’s Income Statement

January - December 2025

Unit: Yuan Currency: CNY

Item Notes: 2025 2024

I. Business revenue 19.4 14260939137.95 13528371666.54

Less: operating cost 19.4 11717459410.81 11302992882.10

Taxes and surcharges 63796580.27 46934744.75

Selling expenses 80225521.30 72535257.70

122 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Administrative expenses 220375237.50 193636017.07

R&D expenses 497942529.67 461983610.00

Financial expenses 5530615.15 -29315709.93

Including: Interest expense 17976160.89 18974465.11

Interest income 15972876.45 51462498.51

Add: Other earnings 76265182.13 133462206.87

Investment income (losses presented by “-”) 19.5 608059737.76 514438460.63

Including: Earnings from the investment in

470640722.61385124878.33

associates and joint ventures

Gains from derecognition of financial assets at

amortized cost

Net exposure hedging income(“-” for loss)

Gains from changes in fair value (“-” for losses) 347215.23 333.33

Credit impairment losses (losses presented by “-”) -59442839.44 -62361253.54

Assets impairment loss (losses presented by “-”) -20649256.78 -20465711.51

Gains on disposal of assets (“-” for losses) 140184.97 -815733.52

II.Operating profit (“-” for loss) 2280329467.12 2043863167.11

Add: Non-operating revenue 259007.11 983010.65

Less: Non-operating expenditure 122272.60 112067.23

III. Total profit (“-” for loss) 2280466201.63 2044734110.53

Less: Income tax expenses 215835545.45 192016202.96

IV. Net profit (losses presented by “-”) 2064630656.18 1852717907.57

(I) Net profit from continuing operations (losses 2064630656.18 1852717907.57

presented by “-”)

(II) Net profit from discontinued operations (losses

presented by “-”)

V. Other comprehensive income after tax 35699389.81 18067000.13

(I) Not to be reclassified subsequently to profit or

loss

1. Remeasurement gains or losses of a defined

benefit plan

2. Other comprehensive income using the equity

method that will not be reclassified to profit or loss

3. Changes in fair value of other equity instrument

investments

4. Changes in fair value of enterprise’s own credit

risk

(II) To be reclassified subsequently to profit or loss 35699389.81 18067000.13

1. Other comprehensive income that can be

35699389.8118067000.13

reclassified to profit or loss in equity method

2. Changes in fair value of other debt investments

3. Amount of financial assets reclassified into other

comprehensive income

4. Provision for credit impairment of other debt

investments

5. Cash flow hedging reserves

6. Exchange differences on translation of foreign

currency financial statements

7. Others

VI. Total comprehensive income 2100330045.99 1870784907.70

VII. Earnings per share (EPS):

(i) Basic earnings per share (RMB/share)

(ii) Diluted earnings per share (RMB/share)

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

123 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Consolidated Statement of Cash Flows

January - December 2025

Unit: Yuan Currency: CNY

Item Notes: 2025 2024

I. Cash flows from operating activities:

Cash receipts from sales of goods or rendering of 12603325590.38 12384233717.65

services

Net increase of client deposit and interbank

deposit

Net increase of central bank loans

Net increase of loans from other financial

institutions

Cash receipts from original insurance contract

premium

Net cash receipts from reinsurance

Net increase of policy-holder deposit and

investment

Cash receipts from interest handling charges and

commission

Net increase of loans from others

Net increase of repurchase

Net cash receipts from agency security transaction

Receipts of tax refund 947452567.68 701908043.64

Other cash receipts related to operating activities 546328159.83 632869489.54

Subtotal of cash inflows from operating activities 14097106317.89 13719011250.83

Cash payments for goods purchased and labor 8910764619.29 9397198385.68

services received

Net increase of loans and advances to clients

Net increase of central bank deposit and interbank

deposit

Cash payments for insurance indemnities of

original insurance contracts

Net increase of loans to others

Cash payments for interest handling charges and

commission

Cash payments for policy bonus

Cash paid to and on behalf of employees 1550738999.75 1362440564.97

Cash payments for taxes and rates 1040429808.34 769970004.14

Other cash payments related to operating 911271647.44 827827627.23

activities

Subtotal of cash outflows from operating 12413205074.82 12357436582.02

activities

Net cash flows from operating activities 7.78 1683901243.07 1361574668.81

II.Cash flows from investing activities:

Cash receipts from withdrawal of investments 185065020.00 35402557.18

Cash receipts from investment income 13587772.00 30303633.72

Net cash receipts from the disposal of fixed 9812690.55 19682492.20

assets intangible assets and other long-term assets

Net cash receipts from the disposal of subsidiaries 2822782.42

& other business units

Other cash receipts related to investing activities 428907.16 5393558.92

Subtotal of cash inflows from investing activities 211717172.13 90782242.02

124 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Cash payments for the acquisition of fixed assets

551712726.19453589564.78

intangible assets and other long-term assets

Cash payments for investments 214700738.15 98644301.62

Net increase of pledged borrowings

Net cash payments for the acquisition of

subsidiaries and other business units

Other cash payments related to investing activities 1762249.85

Subtotal of cash outflows from investing activities 766413464.34 553996116.25

Net cash flows from investing activities 7.78 -554696292.21 -463213874.23

III. Cash flows from financing activities:

Cash receipts from absorbing investments 74660724.00 50011960.00

Including: Cash received by subsidiaries from 74660724.00 50011960.00

non-controlling shareholders as investments

Cash receipts from borrowings 1690068485.64 1499950244.00

Other cash receipts related to financing activities 257114268.01 284298383.57

Subtotal of cash inflows from financing activities 2021843477.65 1834260587.57

Cash payments for repayment of borrowings 1485825796.01 1691982028.06

Cash payments for distribution of dividends or 1030029278.81 592250291.38

profits and for interest expenses

Including: Cash paid by subsidiaries to

80990896.3590540278.7

non-controlling shareholders as dividend or profit

Other cash payments related to financing 450434175.49 230859885.15

activities

Subtotal of cash outflows from financing 2966289250.31 2515092204.59

activities

Net cash flows from financing activities 7.78 -944445772.66 -680831617.02

IV. Effect of foreign exchange rate changes on 10636627.91 16354286.57

cash and cash equivalents

V. Net increase in cash and cash equivalents 195395806.11 233883464.13

Add: Opening balance of cash and cash 4141053265.27 3907169801.14

equivalents

VI. Closing balance of cash and cash 4336449071.38 4141053265.27

equivalents

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

Parent Company’s Statement of Cash Flows

January - December 2025

Unit: Yuan Currency: CNY

Item Notes: 2025 2024

I. Cash flows from operating activities:

Cash receipts from sales of goods or rendering of

10480834248.919299141930.83

services

Receipts of tax refund 11523667.57 9582046.49

Other cash receipts related to operating activities 187844533.25 310268611.38

Subtotal of cash inflows from operating activities 10680202449.73 9618992588.70

Cash payments for goods purchased and labor 7973139910.98 7226509155.32

services received

Cash paid to and on behalf of employees 446547809.83 401061289.17

Cash payments for taxes and rates 583205946.95 416745006.83

Other cash payments related to operating activities 280850501.06 259234757.32

Subtotal of cash outflows from operating activities 9283744168.82 8303550208.64

Net cash flows from operating activities 1396458280.91 1315442380.06

125 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

II.Cash flows from investing activities:

Cash receipts from withdrawal of investments 80980000.00

Cash receipts from investment income 125872734.66 162803581.30

Net cash receipts from the disposal of fixed assets 1829748.89 67460648.96

intangible assets and other long-term assets

Net cash receipts from the disposal of subsidiaries & 76561000.00 1.00

other business units

Other cash receipts related to investing activities

Subtotal of cash inflows from investing activities 285243483.55 230264231.26

Cash payments for the acquisition of fixed assets 396482198.75 250180904.83

intangible assets and other long-term assets

Cash payments for investments 359164474.14 428812610.00

Net cash payments for the acquisition of subsidiaries

and other business units

Other cash payments related to investing activities

Subtotal of cash outflows from investing activities 755646672.89 678993514.83

Net cash flows from investing activities -470403189.34 -448729283.57

III. Cash flows from financing activities:

Cash receipts from absorbing investments

Cash receipts from borrowings 800000000.00 1000000000.00

Other cash receipts related to financing activities 178789096.50 100000000.00

Subtotal of cash inflows from financing activities 978789096.50 1100000000.00

Cash payments for repayment of borrowings 700000000.00 1250000000.00

Cash payments for distribution of dividends or profits 934802095.19 487118302.05

and for interest expenses

Other cash payments related to financing activities 100000000.00

Subtotal of cash outflows from financing activities 1734802095.19 1737118302.05

Net cash flows from financing activities -756012998.69 -637118302.05

IV. Effect of foreign exchange rate changes on cash

and cash equivalents

V. Net increase in cash and cash equivalents 170042092.88 229594794.44

Add: Opening balance of cash and cash equivalents 3009319307.95 2779724513.51

VI. Closing balance of cash and cash equivalents 3179361400.83 3009319307.95

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan

Guanghui

126 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Consolidated Statement of Changes in Owners’ Equity

January - December 2025

Unit: Yuan Currency: CNY

2025

Owners' equity attributable to the parent company

Item Non-controllinPaid-in Capital Other equity instruments Less: Other Genera

Special Surplus Undistributed Othe g shareholders' Total equity

(or Share Preferre Perpetua Othe Capital reserve Treasur comprehensiv l risk Subtotalreserve reserve profit r equity

Capital) d shares l bonds r y shares e income reserve

I. Year-end

1309812049.01407448822.4654906024.56793507969.210163895056.410885628623.5

balance of the -3901280.77 2121472.10 721733567.12

000146

previous year

Add: Changes in

accounting

policies

Correction for

previous errors

Other 89462657.32 -253249.21 -136587997.02 -47378588.91 -54904151.71 -102282740.62

II. Opening

1309812049.01496911479.7654906024.56656919972.110116516467.510783345882.9

balance for the -4154529.98 2121472.10 666829415.41

020934

current year

Amount of

increase/decreas

1274447261.6

e within the 187282843.47 31504188.36 -1409326.59 1491824966.84 93908807.80 1585733774.64

0

current period

("-" for less)

(I) Total

2191315695.9

comprehensive 31504188.36 2222819884.26 126440044.38 2349259928.64

0

income

(II) Owners'

investment and

9395342.869395342.8648459659.7757855002.63

reductions in

capital

1. Common

shares invested 50231224.00 50231224.00

by owners

2. Capital

contribution

from holders of

other equity

127 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

instruments

3. Amount of

share-based

payments

recognized in

owners' equity

4. Other 9395342.86 9395342.86 -1771564.23 7623778.63

(III) Profit

-916868434.30-916868434.30-80990896.35-997859330.65

distribution

1. Withdrawal of

surplus reserves

2. Withdrawal of

general risk

reserve

3. Distribution to

owners (or -916868434.30 -916868434.30 -80990896.35 -997859330.65

shareholders)

4. Other

(IV) Internal

carry-forward of

owners' equity

1. Capital

reserves

converted into

capital (or stock)

2. Surplus

reserves

converted into

capital (or stock)

3. Makeup for

loss of surplus

reserves

4. Changes from

re-measurement

of defined

benefit plan

carried over to

retained earnings

5. Other

comprehensive

income carried

over to retained

earnings

128 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Other

(V) Special

-1409326.59-1409326.59-1409326.59

reserve

1. Withdrawn for

the current 11874136.77 11874136.77 11874136.77

period

2. Used for the -13283463.3 -13283463.36 -13283463.36

current period 6

(VI) Others 177887500.61 177887500.61 177887500.61

IV. Ending

1309812049.01684194323.1654906024.57931367233.711608341434.312369079657.5

balance of the 27349658.38 712145.51 760738223.21

090978

current period

2024

Owners' equity attributable to the parent company

Item Non-controllinPaid-in Capital Other equity instruments Less: Other Genera

Special Surplus Undistributed Othe g shareholders' Total equity

(or Share Preferre Perpetua Othe Capital reserve Treasur comprehensiv l risk Subtotalreserve reserve profit r equity

Capital) d shares l bonds r y shares e income reserve

I. Year-end

1797762921.3559673773.25334504538.9

balance of the 935580035.00 -10529703.70 2143872.40 8619135437.22 630937164.72 9250072601.94

057

previous year

Add: Changes in

accounting

policies

Correction for

previous errors

Other 53266448.50 -150270.70 -127415434.15 -74299256.35 -64946110.90 -139245367.25

II. Opening

1851029369.8559673773.25207089104.8

balance for the 935580035.00 -10679974.40 2143872.40 8544836180.87 565991053.82 9110827234.69

052

current year

Amount of

increase/decreas

1449830867.3

e within the 374232014.00 -354117890.08 6525444.42 -22400.30 95232251.25 1571680286.66 100838361.59 1672518648.25

7

current period

("-" for less)

(I) Total

2012853136.1

comprehensive 6525444.42 2019378580.54 163515134.41 2182893714.95

2

income

(II) Owners' 13649748.72 13649748.72 27863505.88 41513254.60

investment and

129 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

reductions in

capital

1. Common

shares invested 49893160.00 49893160.00

by owners

2. Capital

contribution

from holders of

other equity

instruments

3. Amount of

share-based

payments

recognized in

owners' equity

4. Other 13649748.72 13649748.72 -22029654.12 -8379905.40

(III) Profit

95232251.25-563022268.75-467790017.50-90540278.70-558330296.20

distribution

1. Withdrawal of

95232251.25-95232251.25

surplus reserves

2. Withdrawal of

general risk

reserve

3. Distribution to

owners (or -467790017.50 -467790017.50 -90540278.70 -558330296.20

shareholders)

4. Other

(IV) Internal

carry-forward of 374232014.00 -374232014.00

owners' equity

1. Capital

reserves

374232014.00-374232014.00

converted into

capital (or stock)

2. Surplus

reserves

converted into

capital (or stock)

3. Makeup for

loss of surplus

reserves

4. Changes from

re-measurement

130 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

of defined

benefit plan

carried over to

retained earnings

5. Other

comprehensive

income carried

over to retained

earnings

6. Other

(V) Special

-22400.30-22400.30-22400.30

reserve

1. Withdrawn for

the current 11895166.88 11895166.88 11895166.88

period

2. Used for the -11917567.1 -11917567.18 -11917567.18

current period 8

(VI) Others 6464375.20 6464375.20 6464375.20

IV. Ending

1309812049.01496911479.7654906024.56656919972.110116516467.510783345882.9

balance of the -4154529.98 2121472.10 666829415.41

020934

current period

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan Guanghui

Parent Company’s Statement of Changes in Owners’ Equity

January - December 2025

Unit: Yuan Currency: CNY

2025

Other equity instruments

Item Less: OtherPaid-in Capital (or

Share Capital) Preferred Perpetual

Capital reserve Treasury comprehensive Special reserve Surplus reserve Undistributed profit Total equity

Other

shares bonds shares income

I. Year-end balance of the

1309812049.001546607800.60-14670146.361484527.12656061435.105758885171.569258180837.02

previous year

Add: Changes in

accounting policies

Correction for previous

errors

Other

II. Opening balance for

1309812049.001546607800.60-14670146.361484527.12656061435.105758885171.569258180837.02

the current year

131 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Amount of

increase/decrease within

177887500.6135699389.81-1203856.681147762221.881360145255.62

the current period ("-" for

less)

(I) Total comprehensive

35699389.812064630656.182100330045.99

income

(II) Owners' investment

and reductions in capital

1. Common shares

invested by owners

2. Capital contribution

from holders of other

equity instruments

3. Amount of share-based

payments recognized in

owners' equity

4. Other

(III) Profit distribution -916868434.30 -916868434.30

1. Withdrawal of surplus

reserves

2. Distribution to owners

-916868434.30-916868434.30

(or shareholders)

3. Other

(IV) Internal

carry-forward of owners'

equity

1. Capital reserves

converted into capital (or

stock)

2. Surplus reserves

converted into capital (or

stock)

3. Makeup for loss of

surplus reserves

4. Changes from

re-measurement of

defined benefit plan

carried over to retained

earnings

5. Other comprehensive

income carried over to

retained earnings

132 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

6. Other

(V) Special reserve -1203856.68 -1203856.68

1. Withdrawn for the 11874136.77 11874136.77

current period

2. Used for the current

-13077993.45-13077993.45

period

(VI) Others 177887500.61 177887500.61

IV. Ending balance of the 1309812049.00 1724495301.21 21029243.45 280670.44 656061435.10 6906647393.44 10618326092.64

current period

2024

Other equity instruments

Item Less: OtherPaid-in Capital (or

Preferred Perpetual Capital reserve Treasury comprehensive Special reserve Surplus reserve Undistributed profit Total equityShare Capital) Other

shares bonds shares income

I. Year-end balance of the

935580035.001914375439.40-32737146.491223802.51560829183.854469189532.747848460847.01

previous year

Add: Changes in

accounting policies

Correction for previous

errors

Other

II. Opening balance for 935580035.00 1914375439.40 -32737146.49 1223802.51 560829183.85 4469189532.74 7848460847.01

the current year

Amount of

increase/decrease within

374232014.00-367767638.8018067000.13260724.6195232251.251289695638.821409719990.01

the current period ("-" for

less)

(I) Total comprehensive

18067000.131852717907.571870784907.70

income

(II) Owners' investment

and reductions in capital

1. Common shares

invested by owners

2. Capital contribution

from holders of other

equity instruments

3. Amount of share-based

payments recognized in

owners' equity

133 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

4. Other

(III) Profit distribution 95232251.25 -563022268.75 -467790017.50

1. Withdrawal of surplus 95232251.25 -95232251.25

reserves

2. Distribution to owners

-467790017.50-467790017.50

(or shareholders)

3. Other

(IV) Internal

carry-forward of owners' 374232014.00 -374232014.00

equity

1. Capital reserves

converted into capital (or 374232014.00 -374232014.00

stock)

2. Surplus reserves

converted into capital (or

stock)

3. Makeup for loss of

surplus reserves

4. Changes from

re-measurement of

defined benefit plan

carried over to retained

earnings

5. Other comprehensive

income carried over to

retained earnings

6. Other

(V) Special reserve 260724.61 260724.61

1. Withdrawn for the

11910872.1111910872.11

current period

2. Used for the current

-11650147.50-11650147.50

period

(VI) Others 6464375.20 6464375.20

IV. Ending balance of the

1309812049.001546607800.60-14670146.361484527.12656061435.105758885171.569258180837.02

current period

Head of the Company: Zhao Limin Chief Accountant: Zhang Shutong Head of Accounting Department: Yuan Guanghui

134 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

3. Basic Company Information

1. Company Profile

"√ Applicable" "□ Not applicable"

Hangcha Group Co. Ltd. (hereinafter referred to as the “Company”) headquartered in Hangzhou

Zhejiang Province was established with approval from the Leading Group of the People’s Government

of Zhejiang Province for Enterprise Listing (Document ZSS [2003] No. 25). It was jointly initiated by

Zhejiang Hangcha Holding Co. Ltd. (formerly Zhejiang Hangcha Group Co. Ltd.) Hangzhou Industrial

Investment Group Co. Ltd. (formerly Hangzhou Industrial Assets Management Co. Ltd.) Hangzhou

High-Tech Investment Co. Ltd. and 7 natural person shareholders including Zhao Limin and registered

with the Zhejiang Administration for Industry and Commerce on May 6 2003. The Company currently

holds a business license with the Unified Social Credit Code 9133000014304182XR a registered capital

of RMB 1309812049 and the total shares of 1309812049 (with a par value of RMB 1 per share). All

of the shares are non-restricted outstanding A-shares. The Company’s stock has been listed on the

Shanghai Stock Exchange since December 27 2016.The Company is a player in the special equipment manufacturing industry. the Company primarily

engages in the R&D production and sales of forklifts and other industrial vehicles. Its main products

include internal combustion forklifts electric forklifts and other industrial vehicles.The Financial Statements have been authorized for issuance with the approval of the 4th Meeting of the

8th Board of Directors on April 21 2026.

4. Basis for Preparation of Financial Statements

1. Basis for preparation

These Financial Statements of the Company are prepared on a going concern basis.

2. Going concern

"√ Applicable" "□ Not applicable"

There is no matter or circumstance that results in any significant doubt about the Company's ability to

continue as a going concern for a period of 12 months from the end of the Reporting Period.

5. Significant Accounting Policies and Accounting Estimates

Reminder to specific accounting policies and accounting estimates:

"√ Applicable" "□ Not applicable"

The Company formulated specific accounting policies and estimates for transactions and matters such as

impairment of financial instruments inventories depreciation of fixed assets depreciation of

right-of-use assets amortization of intangible assets and revenue recognition based on its actual

production and operational characteristics.

1. Statement of compliance with Accounting Standards for Business Enterprises

The financial statements prepared by the Company comply with the requirements of the Accounting

Standards for Business Enterprises and give a true and complete view of the financial position

operating results changes in shareholders' equity and cash flows of the Company.

135 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

2. Fiscal period

The Company's fiscal year runs from January 1 to December 31 of the calendar year.

3. Operating cycle

"√ Applicable" "□ Not applicable"

The Company features a short period of business operations with 12 months as the standard for the

liquidity of its assets and liabilities.

4. Bookkeeping currency

The Company adopts RMB as its functional currency.

5. Determination method and selection basis of materiality standard

"√ Applicable" "□ Not applicable"

Item Materiality standard

Notes receivable with provisions for bad debts on an Individual amounts exceeding 0.3% of total assets

individual basis

Recovery or reversal of provisions for bad debts of Individual amounts exceeding 0.3% of total assets

significant notes receivable

Significant accounts receivable with the provision for bad Individual amounts exceeding 0.3% of total assets

debts made on an individual basis

Recovery or reversal of provision for bad debts of

Individual amounts exceeding 0.3% of total assets

significant accounts receivable

Significant Write-offs of Accounts Receivable Individual amounts exceeding 0.3% of total assets

Significant other receivables with the provision for bad Individual amounts exceeding 0.3% of total assets

debts made on an individual basis

Recovery or reversal of provision for bad debts of Individual amounts exceeding 0.3% of total assets

significant other receivables

Significant Write-offs of Other Receivables Individual amounts exceeding 0.3% of total assets

Significant Prepayments Aged over 1 Year Individual amounts exceeding 0.3% of total assets

Important construction in progress The total investment of a single project exceeds 0.3% of the

total assets

Significant Accounts Payable Aged over 1 Year Individual amounts exceeding 0.3% of total assets

Significant Other Payables Aged over 1 Year Individual amounts exceeding 0.3% of total assets

Significant Contract Liabilities Aged over 1 Year Individual amounts exceeding 0.3% of total assets

Important cash flow from investing activities Individual amounts exceeding 0.3% of total assets

Important subsidiary and non-wholly owned subsidiary Revenue exceeding 15% of the Group’s total revenue

Significant joint ventures and associates The carrying amount of an individual long-term equity

investment exceeds 1% of total assets

Important events subsequent to the balance sheet date Profit distribution after the balance sheet date

6. Accounting treatment for merger of enterprises under or not under the joint control

"√ Applicable" "□ Not applicable"

1. Accounting methods for merger of enterprises under the joint control

Assets and liabilities acquired by the Company in a merger are measured at the book value of the party

being consolidated in the consolidated financial statements of ultimate controlling party at the date of

merger. The Company adjusts capital surplus by the difference between the share of the book value of

the owners' equity of the party being consolidated in the consolidated financial statements of the ultimate

controlling party and the book value of the consideration paid for the consolidation or the total nominal

value of the shares issued. If capital surplus is insufficient for write-down the retained earnings shall be

136 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

adjusted.

2. Accounting methods for merger of enterprises not under the joint control

The Company recognizes the difference of the cost of consolidation minus the share of fair value of the

identifiable net assets of the acquiree acquired in the consolidation at the date of purchase as the

goodwill. If the cost of consolidation is less than the share of fair value of the identifiable net assets of

the acquiree acquired in the consolidation the Company firstly reviews the fair value of each of

identifiable assets liabilities and contingent liabilities acquired from the acquiree as well as the

measurement of consolidation cost; and if the cost of consolidation remains less than the share of fair

value of the identifiable net assets of the acquiree acquired in the consolidation upon review the

difference is recognized in the current gains or losses.

7. Determination criteria of control and preparation of consolidated financial statements

"√ Applicable" "□ Not applicable"

1. Recognition of control

Control is recognized if one entity has the power over the invested entity enjoying variable returns

through participating in related activities of the invested entity and has the ability to use the power over

the invested entity to influence its variable return amount.

2. Method of preparing consolidated financial statements

The parent company includes all subsidiaries it controls in the scope of the consolidated financial

statements. The consolidated financial statements are based on the financial statements of the parent

company and its subsidiaries and are prepared by the parent company in accordance with Accounting

Standards for Business Enterprises No. 33 – Consolidated Financial Statements with reference to other

information.

8. Classification of joint venture arrangements and accounting treatment for joint operations

"√ Applicable" "□ Not applicable"

1. Joint venture arrangements are divided into joint operation and joint venture.

2. Where the Company is a joint party in a joint operation the following items related to the share of

interest in the joint operation shall be recognized:

(1) To recognize the assets held assumed solely by the Company and the assets held assumed jointly as

per the shares of the Company;

(2) to recognize the liabilities held assumed solely by the Company and the assets held assumed jointly

as per the shares of the Company;

(3) to recognize revenue from disposal of the share of joint operations of the company to be sold;

(4) to recognize revenue from joint operations arising from the sale of assets based on the shares held by

the Company; and

(5) to recognize fees solely incurred by Company and recognize fees from joint operations in

appropriation to the share of the Company.

9. Recognition criteria of cash and cash equivalents

Cash equivalents are the Company’s short-term (generally due within three months from the date of

137 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

purchase) highly liquid investments that are readily convertible to known amounts of cash and which

are subject to an insignificant risk of changes in value.

10. Translation of transactions and financial statements denominated in foreign currencies

"√ Applicable" "□ Not applicable"

1. Translation of foreign-currency transactions

A foreign currency transaction is on initial recognition translated into RMB at the spot exchange rate

prevailing at the date of the transaction. At the balance sheet date monetary items denominated in

foreign currency are translated using the spot exchange rate prevailing at the balance sheet date and

exchange differences arising from the differences between the spot exchange rates are recognized in

profit or loss for the period except for those attributable to principal and interest of borrowings

denominated in foreign currency that have been taken out specifically for the acquisition construction or

production of qualifying assets; non-monetary items denominated in foreign currency measured at

historical costs are still translated using the spot exchange rate at the date of the transaction without

changing the amount in RMB; non-monetary items denominated in foreign currency that are measured at

fair value are translated using the spot exchange rate prevailing on the date when fair value is

determined and the resulting exchange differences will be recognized in profit or loss for the period or

other comprehensive income.

2. Translation of foreign-currency financial statements

Assets and liabilities in the balance sheet are translated at the spot exchange rates prevailing at the

balance sheet date. Among the owners’ equity items the items other than “Retained earnings” are

translated at the spot exchange rates at the date of the transaction. Revenue and expense items in the

income statement are translated using the spot exchange rates at the date of the transaction. Differences

in translation of foreign-currency financial statements arising from the foregoing are stated as other

comprehensive income.

11. Financial instruments

"√ Applicable" "□ Not applicable"

1. Classification of financial assets and financial liabilities

Financial assets are classified into the three categories at initial recognition: (1) Financial assets

measured at amortized cost; (2) financial assets measured at fair value through other comprehensive

income; and (3) financial assets measured at fair value through current gains/losses.Financial liabilities are classified into four categories at initial recognition: (1) Financial liabilities

measured at fair value through current gains/losses; (2) financial liabilities resulting from unqualified

transfer of financial assets on derecognition or from continued involvement in the transferred financial

assets; (3) financial guarantee contracts that do not fall under (1) or (2) above and loan commitments

that fall out of (1) above and that are loaned out at a lower-than-market interest rate; and (4) financial

liabilities measured at amortized cost.

2. Basis of recognition measurement method and derecognition conditions of financial assets and

financial liabilities

138 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(1) Basis of recognition and initial measurement of financial assets and financial liabilities

The Company recognizes an item of financial asset or financial liability at the time when it becomes one

party to a contract of the financial instruments. On initial recognition a financial asset or financial

liability is measured at fair value; for financial assets and financial liabilities at fair value through current

gains or losses the related transaction costs are recognized directly in the current gains or losses; for

other categories of financial assets or financial liabilities relevant transaction costs are included in the

amount of initial recognition. However if the receivables initially recognized by the Company exclude

significant financing components or if the Company does not consider any financing component in a

contract of less than a year the Company initially measures the receivables in accordance with the

transaction price as defined in Accounting Standards for Business Enterprises No. 14 -Revenue.

(2) Subsequent measurement of financial assets

1) Financial assets measured at amortized cost

Such financial liabilities are measured subsequently at amortized cost by the actual interest rate method.Gains or losses arising from financial assets measured at amortized cost that are not part of any hedging

relationship are recognized in the current gains or losses when they are derecognized reclassified

amortized by the effective interest rate method or recognized as impairment.

2) Investment in debt instruments measured at fair value through other comprehensive income

Such financial asset is measured subsequently at fair value. Interest impairment losses or gains and

exchange gains/losses calculated using the method of effective interest rate are recognized in the current

gains or losses for the period. Upon derecognition the cumulative gains or losses previously recognized

in other comprehensive income are transferred out and recognized in current gains/losses.

3) Investment in equity instruments at fair value through other comprehensive income

Such financial asset is measured subsequently at fair value. Dividends received (except for those

attributable to the investment costs recovered) are recognized in current gains/losses and other gains or

losses are recognized in other comprehensive income. Upon derecognition the cumulative gains or

losses previously recognized in other comprehensive income are transferred therefrom to retained

earnings.

4) Financial assets measured at fair value and the changes are included in current profits and losses

Gains or losses arising from subsequent measurement at fair value including interest and dividend

income are stated as current gains/losses unless the financial assets are part of a hedging relationship.

(3) Subsequent measurement of financial liabilities

1) Financial liabilities at fair value through current gains/losses

Such financial liabilities comprise those held for trading (including derivatives that are financial

liabilities) and those designated for measurement at fair value through current gains/losses. Such

financial liabilities are measured subsequently at fair value. The amount of changes in the fair value of

financial liabilities designated for measurement at fair value through current gains/losses arising from

changes in the Company's credit risk is recognized in other comprehensive income unless such disposal

would create or enlarge the accounting mismatch in gains/losses. Other gains or losses arising from such

139 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

financial liabilities (including interest cost and changes in fair value other than those arising from

changes in the Company's credit risk) are recognized in current gains/losses unless the financial

liabilities are part of a hedging relationship. Upon derecognition the cumulative gains or losses

previously recognized in other comprehensive income are transferred therefrom to retained earnings.

2) Financial liabilities resulting from unqualified transfer of financial assets on derecognition or from

continued involvement in the transferred financial assets

Such financial liabilities are measured in accordance with Accounting Standards for Business

Enterprises No.23 -Transfer of Financial Assets.

3) Financial guarantee contracts that do not fall under (1) or (2) above and loan commitments that fall

out of (1) above and that are loaned out at a lower-than-market interest rate

Subsequent measurement after initial recognition is based on whichever is higher: * The amount of

the provision for losses determined in accordance with the regulations on impairment of financial

instruments; or * difference between the amount initially recognized minus the amount of cumulative

amortization defined in accordance with Accounting Standards for Business Enterprises No. 14 -

Revenue.

4) Financial liabilities measured at amortized cost

Such financial liabilities are measured at amortized cost using the effective interest method. Gains or

losses arising from financial liabilities measured at amortized cost and not part of any hedging

relationship are recognized in the current gains/losses at the time of derecognition and amortized by

effective interest method.

(4) Derecognition of financial assets and financial liabilities

1) Financial assets are derecognized if one of the following conditions is satisfied:

* The contractual right to receive cash flows from financial assets is terminated;

* The financial asset is transferred and such transfer satisfies the regulations on derecognition of

financial assets under Accounting Standards for Business Enterprises No.23 - Transfer of Financial

Assets.

2) Where a financial liability (or a portion thereof) is discharged from a present obligation such

financial liability (or such portion thereof) is derecognized accordingly.

3. Basis of recognition and measurement methods of financial assets

If the Company transfers nearly all the risks and rewards of ownership of a financial asset such financial

asset is derecognized and the right and obligation arising from or retained in the transfer is recognized

as an asset or a liability; if nearly all the risks and rewards on the ownership of a financial asset are

retained the transferred financial asset continues to be recognized. If the Company neither transfers nor

retains nearly all risks and rewards on the ownership of a financial asset the Company shall: (1)

derecognize the financial asset and recognize the right and obligation arising from or retained in the

transfer if it has no control over the asset; and (2) recognize the relevant financial asset and relevant

financial liability by the extent of its continued involvement in the transferred financial asset if it has

control over the said financial asset.

140 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

If the overall transfer of a financial asset satisfies the conditions for derecognition the difference

between (1) the book value of the transferred financial asset on the date of derecognition; and (2) the

sum of the consideration from the transfer of the financial asset and the amount of derecognized portion

in the accumulated changes of fair value originally stated as other comprehensive income (the financial

asset involved in transfer is an investment in a debt instrument measured at fair value through other

comprehensive income) is recognized in current gains/losses. Should a portion of a financial asset be

transferred and such transferred portion as a whole is qualified for derecognition the book value of such

financial asset as a whole before the transfer is apportioned between the derecognized portion and the

portion for continued recognition based on their respective fair value on the date of transfer; and the

difference between (1) the book value of the derecognized portion and (2) the sum of the consideration

for the derecognized portion and the amount of derecognized portion in the accumulated changes of fair

value originally stated as other comprehensive income (the financial asset involved in transfer is an

investment in a debt instrument measured at fair value through other comprehensive income) is

recognized in current gains/losses.

4. Methods for determining the fair value of financial assets and financial liabilities

The Company employs the appraisal technique that is applicable in current period and is supported by

sufficient available data and other information to determine the fair value of financial assets and

financial liabilities. The Company categorizes the inputs used in the valuation technique in the following

levels and applies such inputs in a certain order:

(1) Level-1 inputs are unadjusted offers in any active market for identical assets or liabilities that are

available on the measurement date;

(2) Level-2 inputs are those other than the Level-1 inputs and observable for underlying assets or

liabilities directly or indirectly including offers for similar assets or liabilities in any active market;

offers for identical or similar assets or liabilities in any inactive market; observable inputs other than

offers (e.g. interest rates and yield curves observable in normal intervals of offering; and

market-validated inputs;

(3) Level-3 inputs are unobservable inputs for the underlying assets or liabilities including interest rates

that are not directly observable or cannot be verified with observable market data stock volatility future

cash flows assuming retirement obligations in a business merger and financial projections with

self-owned data.

5. Impairment of financial instruments

The Company impairs and recognizes provisions for loss based on expected credit losses on financial

assets measured at amortized cost investments in debt instruments at fair value through other

comprehensive income contract assets receivables from leasing loan commitments other than those

classified as financial liabilities measured at fair value through current gains/losses and financial

guarantee contracts that are not classified as financial liabilities measured at fair value through current

gains/losses or financial liabilities resulting from unqualified transfer of financial assets on derecognition

or from continued involvement in the transferred financial assets.

141 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Expected credit loss refers to the weighted average of credit loss of financial instruments weighted by

the risk of default. Credit loss represents the difference between all contractual cash flows discounted at

the original effective interest rate and receivable under the contract and all cash flows expected to be

collected i.e. the present value of the entire cash shortfall. In particular for any financial asset

purchased or originated by the Company with credit impairment such asset is discounted at effective

interest rate upon credit adjustment.For any financial asset purchased or originated by the Company with credit impairment the Company

recognizes only the cumulative changes in expected credit losses over the entire period of existence from

initial recognition as the provision for losses on the balance sheet date.For lease receivables receivables resulting from transactions regulated by Accounting Standards for

Business Enterprises No. 14 - Revenue and contract assets the Company measures the provision for

losses based on the amount equal to the expected credit loss for the entire life under simplified approach.For any financial asset other than those measured by the above-mentioned methods the Company

evaluates on each balance sheet date whether the credit risk of such asset sees significant increase after

initial recognition. If the credit risk has increased significantly since initial recognition the Company

measures the provision for losses based on the number of expected credit losses over the entire period of

existence; if not the Company measures the provision for losses based on the number of expected credit

losses of such financial instrument over the next 12 months.The Company uses reasonably available and supportable information including forward-looking

information to determine whether the credit risk of a financial instrument sees significant increase after

initial recognition by comparing the risk of default of the said financial instrument on the balance sheet

date with the risk of default on the date of initial recognition.On the balance sheet date if the Company believes that a financial instrument features a low credit risk

it shall be assumed that its credit risk has not increased significantly since initial recognition.The Company evaluates expected credit risks and measures expected credit losses based on a single

financial instrument or a portfolio of financial instruments. Where a portfolio of financial instruments is

applied the Company classifies financial instruments into portfolios based on common risk features.The Company remeasures expected credit losses on each balance sheet date from which the amount

increased or reversed from the provision for losses resulted is recognized as impairment gains or losses

in current gains/losses. For any financial asset measured at amortized cost the provision for losses is

offset against the book value of such financial asset as stated in the balance sheet; for any debt

investment measured at fair value through other comprehensive income the Company recognizes its

provision for losses in other comprehensive income without offsetting the book value of the financial

asset.

6. Offset between financial assets and financial liabilities

Financial assets and financial liabilities are presented separately in the balance sheet and are not

mutually offset. However where both of the following conditions are met the financial assets and

financial liabilities will be presented in the balance sheet with the net amount after mutual offset: (1) The

142 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Company has the legal right to offset the recognized amount which is executable for; and (2) the

Company plans to make settlement in net amount or realizes the financial assets and settles the financial

liabilities simultaneously.When a financial asset is transferred without satisfying the conditions for derecognition the Company

does offset such transferred financial asset and related liabilities.

12. Notes receivable

"√ Applicable" "□ Not applicable"

Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the

credit risk characteristics and the basis for determination

"√ Applicable" "□ Not applicable"

For details on the Company’s determination methods and accounting treatment for expected credit losses

on notes receivable please refer to “5.11 Financial Instruments under Section VIII Financial Reports”.Aging calculation method for portfolio of credit risk characteristics recognized based on aging

"□ Applicable" "√ Not applicable"

Determination criteria for provision for bad debts on an individual basis

"□ Applicable" "√ Not applicable"

13. Accounts receivable

"√ Applicable" "□ Not applicable"

Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the

credit risk characteristics and the basis for determination

"√ Applicable" "□ Not applicable"

Basis for

Category portfolio Methods to measure expected credit losses

determination

The Company calculates expected credit losses by reference to

Bankers' acceptances receivable Acceptance bill historical credit loss taking into current conditions and projections

drawer of future economic conditions through default exposures and

expected credit loss rate over the entire period of existence.Commercial acceptances receivable Prepare a comparison table between the aging of accounts

Receivables - Ageing combination receivable commercial acceptance bills receivable and contract

Ageing assets and the expected credit loss rate for the entire life and

combination calculate the expected credit losses based on current conditions

Contract assets - Aging portfolio and forecasts of future economic conditions with reference to

historical credit loss experience

Other receivables - Portfolio of

deposits and margins receivable

Other receivables - Temporary The Company calculates expected credit losses by reference to

payments receivable

Nature of historical credit loss taking into current conditions and projections

Other receivables - Temporary payment of future economic conditions through default exposures and

employee borrowings expected credit loss rate within the next 12 months or over the

Other receivables - entire period of existence.Cross-borrowing

Other receivables - Others

Long-term receivables - Finance Prepare a comparison table between the overdue aging and the

Overdue aging expected credit loss rate for the entire life and calculate the

lease portfolio

expected credit losses based on current conditions and forecasts

143 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

of future economic conditions with reference to historical credit

loss experience

Aging calculation method for portfolio of credit risk characteristics recognized based on aging

"√ Applicable" "□ Not applicable"

1) Comparison table of aging in the aging portfolio and expected credit loss rate for the entire life

Aging Accounts receivable Expected credit loss rate on

Contract assets

Expected credit loss rate (%) notes receivable (%) Expected credit loss rate

(%)

Within one year (inclusive the

555

same below)

1-2 years 10 10 10

2-3 years 30 30 30

3-5 years 50 50 50

More than 5 years 100 100 100

2) Long-term receivables - Comparison table of finance lease portfolio and expected credit loss rate for

the entire life

Long-term receivables

Overdue aging

Expected credit loss rate (%)

Not past due 1

Less than 3 months past due 10

3 - 6 months past due 30

6 - 12 months past due 50

Over one year past due 100

The aging of accounts receivable contract assets and long-term receivables is calculated from the month

in which they are actually incurred.Determination criteria for provision for bad debts on an individual basis

"√ Applicable" "□ Not applicable"

For accounts receivable and contract assets whose credit risk is significantly different from the portfolio

credit risk the Company measures expected credit losses on a single item basis.

14. Receivables financing

"√ Applicable" "□ Not applicable"

Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the

credit risk characteristics and the basis for determination

"√ Applicable" "□ Not applicable"

For details on the Company’s determination methods and accounting treatment for expected credit losseson receivables financing please refer to “11.(5) Impairment of Financial Instruments under Section XFinancial Reports”. The Company prepares a table of comparing the ageing of receivables and expected

credit losses over the entire period of existence by reference to historical credit loss taking into current

conditions and projections of future economic conditions in a bid to calculate the expected credit losses.Aging calculation method for portfolio of credit risk characteristics recognized based on aging

"□ Applicable" "√ Not applicable"

Determination criteria for provision for bad debts on an individual basis

"□ Applicable" "√ Not applicable"

144 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

15. Other receivables

"√ Applicable" "□ Not applicable"

Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the

credit risk characteristics and the basis for determination

"√ Applicable" "□ Not applicable"

For details on the Company’s determination methods and accounting treatment for expected credit losseson receivables financing please refer to “11.(5) Impairment of Financial Instruments under Section XFinancial Reports”. The Company prepares a table of comparing the ageing of receivables and expected

credit losses over the entire period of existence by reference to historical credit loss taking into current

conditions and projections of future economic conditions in a bid to calculate the expected credit losses.Aging calculation method for portfolio of credit risk characteristics recognized based on aging

"□ Applicable" "√ Not applicable"

Determination criteria for provision for bad debts on an individual basis

"□ Applicable" "√ Not applicable"

16. Inventories

"√ Applicable" "□ Not applicable"

Inventory categories methods for inventory valuation on dispatch inventory system methods of

amortization of low-value consumables and packaging materials

"√ Applicable" "□ Not applicable"

1. Category of inventories

Inventories include finished products or commodities held for sale in daily operations or work in

progress or materials and supplies to be consumed in production or provision of labour.

2. Method for appraising outgoing inventories

The Company appraises outgoing inventories with weighted-average system at the end of the month.

3. Stocktaking system of inventories

Stocktaking is based on perpetual inventory system.

4. Amortization of low-value consumables and packages

(1) Low-value consumables

Low-value consumables are amortized by lump sum.

(2) Packages

Low-value consumables are amortized by lump sum.Recognition criteria and accrual method for provision for decline in value of inventories

"√ Applicable" "□ Not applicable"

Recognition criteria and accrual method for provision for decline in value of inventories

Inventories are valued at lower of cost and NRV (net realizable value) at the balance sheet date and the

provision for the decline in the value of inventories is made based on the difference between cost and

NRV. The net realizable value of an inventory directly for sale is determined in the normal production

and operation by its estimated selling price minus estimated selling expense(s) and related tax(es); and

145 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

that of an inventory requiring processing is determined in normal production and operation by the

estimated selling price of the finished product minus estimated cost(s) to incur by the time of completion

estimated selling expense(s) and related tax(es). In case the price of part of an inventory is specified in

the contract but that of the other parts is not specified in the contract by the balance sheet date their net

realizable values are determined separately and compared with their corresponding costs in order to

determine the amount for withdrawal or reversal of provision for inventory depreciation.Portfolio categories for which the provision for depreciation of inventories on a portfolio basis and

the basis for determination and basis for determination of net realizable value of different

categories of inventories

"□ Applicable" "√ Not applicable"

Calculation method and basis for determination of net realizable value of each inventory aging

portfolio recognized based on inventory aging

"□ Applicable" "√ Not applicable"

17. Contract assets

"√ Applicable" "□ Not applicable"

Recognition method and criteria of contract assets

"√ Applicable" "□ Not applicable"

The Company presents contract assets or contract liabilities in the balance sheet based on the

relationship between the fulfillment of performance obligations and clients' payment. The contractual

assets and liabilities under the same contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.depending only on the passage of time) as a receivable and the right to receive consideration for a

commodity transferred to a client (depending on any factor other than the passage of time) as a contract

asset.The obligation to transfer goods to a client for which consideration has been received or is receivable

from the client is shown as a contractual liability.Portfolio categories for which the provision for bad debts is made on a portfolio basis based on the

credit risk characteristics and the basis for determination

"□ Applicable" "√ Not applicable"

Aging calculation method for portfolio of credit risk characteristics recognized based on aging

"□ Applicable" "√ Not applicable"

Determination criteria for provision for bad debts on an individual basis

"□ Applicable" "√ Not applicable"

18. Non-current assets or disposal groups held for sale

"√ Applicable" "□ Not applicable"

The Company classifies non-current assets or disposal groups as held for sale where both of the

following conditions are satisfied: (1) The sale is imminent under current conditions based on the

common practice of selling such assets or disposal groups in similar transactions; and (2) the sale is

146 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

highly possible i.e. the Company has resolved on a plan for the sale and obtained a firm commitment to

purchase and the sale is expected to be completed within one year.Non-current assets or disposal groups acquired by the Company for the sole purpose of resale are

classified as held for sale on the date of acquisition if on the date of acquisition the condition that "the

sale is expected to be completed within one year" is satisfied and other conditions for classification as

held for sale are also likely to be satisfied within a short period of time (normally three months).If any transaction between or among unconnected parties fails to be completed within one year for any

of the following reasons beyond the control of the Company and the Company remains committed to

selling the non-current assets or disposal groups such assets or groups will continue to be classified as

held for sale: (1) The buyer or any other party unexpectedly sets conditions that result in a delay in the

sale and the Company has acted on those conditions in a timely manner and expects to successfully

resolve the delay within one year upon the setting; (2) any rare event occurs that causes the sale of the

non-current assets or disposal groups held for sale not to be completed within one year and the

Company has addressed such event within the initial year for which the conditions for classification of

those held for sale have been satisfied.Recognition criteria and accounting treatment for non-current assets or disposal groups classified

as held for sale

"√ Applicable" "□ Not applicable"

(1) Initial measurement and subsequent measurement

At the initial measurement of and remeasurement on balance sheet date of non-current assets or disposal

groups held for sale if the book value is higher than the fair value less costs to sell the book value is

written down to a net amount of fair value less costs to sell and the amount of write-down is stated as an

impairment loss on the assets through current gains/losses and a provision for impairment of the assets

held for sale is withdrawn.Non-current assets or disposal groups classified as held for sale on the date of acquisition measured at

whichever is lower amount of initial measurement that would have been determined assuming that they

were not classified as held for sale or the net amount of fair value less costs to sell. Except for the

non-current assets or disposal groups acquired in a business merger the difference arising from the

initial measurement of a non-current asset or disposal group at fair value less costs to sell is recognized

in current gains/losses.The amount of asset impairment loss recognized for a disposal group held for sale is offset against the

book value of goodwill in the disposal group and then against the book value of each non-current asset

on a pro rata basis by its proportion in the disposal group.Non-current assets held for sale or in the disposal groups shall not be depreciated or amortized and

interest and other expenses of liabilities in the disposal groups held for sale shall be recognized.

(2) Accounting treatment for reversal of assets impairment loss

If the net amount of the fair value of non-current assets held for sale after subtracting the selling expense

increases at subsequent balance sheet dates the amount previously written down shall be restored.

147 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Moreover the amount of assets impairment loss recognized after non-current assets are classified as held

for sale shall be reversed and recorded in profit or loss for the current period. The assets impairment loss

recognized before non-current assets are classified as held for sale shall not be reversed.If the net amount of the fair value of disposal groups held for sale after subtracting the selling expense

increases at subsequent balance sheet dates the amount previously written down shall be restored.Moreover the amount of assets impairment loss recognized after non-current assets are classified as held

for sale shall be reversed and recorded in profit or loss for the current period. The book value of

goodwill that has been written off and the assets impairment loss recognized before non-current assets

are classified as held for sale shall not be reversed.For the subsequently reversed amount of the assets impairment loss recognized on disposal groups held

for sale the book value shall be increased based on the proportion of the book value of each non-current

asset except goodwill in the disposal group.

(3) Discontinued classification as held for sale and derecognition

When non-current assets or disposal groups are no longer classified as held for sale because they do not

meet the corresponding conditions or non-current assets are removed from disposal groups held for sale

they shall be measured at the lower of the following: 1) the book value before being classified as held

for sale adjusted for depreciation amortization or impairment that would have been recognized had they

not been classified as held for sale; 2) the recoverable amount.At the time of derecognition of non-current assets or disposal groups held for sale the unrecognized

gains or losses shall be recorded in profit or loss for the current period.Criteria for determination and presentation of discontinued operations

"√ Applicable" "□ Not applicable"

A separately distinguishable component that has been disposed of or is held for sale and meets one of the

following conditions is recognized as a discontinued operation:

(1) The component represents an independent main business or an independent main business area;

(2) The component is part of a plan concerning the proposed disposal of an independent main business

or an independent main business area;

(3) This component is a subsidiary acquired exclusively for resale.

The Company presents the profit or loss from continuing operations and the profit or loss from

discontinued operations separately in the income statement. Operating profit or loss and profit or loss

from disposal such as the impairment loss and the reversed amount from discontinued operations are

reported as profit or loss from discontinued operations. For the discontinued operations reported in the

current period the data originally presented as the profit or loss from continuing operations shall be

re-presented as the profit or loss from discontinued operations for the comparable period in the current

financial statements. If the discontinued operation no longer meets the criteria to be classified as held for

sale the data originally presented as the profit or loss from discontinued operations shall be re-presented

as the profit or loss from continuing operations for the comparable period in the current financial

statements.

148 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

19. Long-term equity investments

"√ Applicable" "□ Not applicable"

1. Recognition of joint control and significant influence

Joint control refers to the shared control over an arrangement regarding which activities can be decided

on only with the unanimous consent of the parties sharing control as agreed upon. Significant influence

refers to the power to participate in decision-making on the financial and operating policies of the

investee but with no control or joint control over the formulation of these policies.

2. Determination of investment cost

(1) For business combination under common control where long-term equity investments are obtained

by cash paid non-Cash and bank balances paid assumed liabilities or equity securities issued as

consideration by the combining party on the combination date the initial investment cost shall be taken

as the share of the owner's equity of the combined party at book value in the final control party's

consolidated financial statements. According to the difference between the initial investment cost of

long-term equity investments and the book value of the consideration paid or the aggregate nominal

value of shares issued capital reserve shall be written down. If the capital reserve is not sufficient to be

written down then the retained earnings shall be written down.For long-term equity investments resulting from business combinations involving entities under

common control which are achieved step by step in multiple transactions the Company will assess

whether these transactions constitute a "package deal". Each of these transactions shall be accounted for

as a transaction for acquisition of control if they constitute a "package deal". Otherwise the initial

investment cost shall be recognized on the combination date according to the share of the combined

party's net assets to be acquired after combination at book value in the final control party's consolidated

financial statements. According to the difference between the initial investment cost of long-term equity

investments on the combination date and the sum of the book value of long-term equity investments

before combination plus the book value of the consideration paid for further acquisition of shares on the

combination date capital reserve shall be written down. If the capital reserve is not sufficient to be

written down then the retained earnings shall be written down.

(2) For business combination not under common control on the combination date the initial investment

cost of long-term equity investments shall be taken as the fair value of the consideration paid.For long-term equity investments resulting from business combinations involving entities not under

common control which are achieved step by step in multiple transactions different approaches in

accounting treatment are adopted for individual financial statements and consolidated financial

statements as follows:

1) For individual financial statements the initial investment cost is calculated as the sum of the book

value of investments in equity originally held plus the additional investment cost using the cost method.

2) For consolidated financial statements whether these transactions constitute a "package deal" will be

assessed. Each of these transactions shall be accounted for as a transaction for acquisition of control if

they constitute a "package deal". For transactions that do not constitute a "package deal" the target

149 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

entity's equity held before the purchase date shall be remeasured at the fair value of the equity on the

purchase date and the difference between the fair value and book value of the equity shall be recorded

in investment income for the current period; if the target entity's equity held before the purchase date

involves other comprehensive income accounted with the equity method other comprehensive income

associated except when arising from the changes due to remeasurement of net liabilities or net assets of

defined benefit plan by the investor shall be transferred to income for the current period on the purchase

date. However this excludes other comprehensive income generated by changes in the remeasurement

of the net liabilities or net assets of the investee related to the defined benefit plans.

(3) Other long-term equity investments not resulting from business combination: For long-term equity

investments obtained by cash paid the initial investment cost shall be the amount actually paid. For

those obtained by equity securities issued the initial investment cost shall be the fair value of equity

securities issued. For those obtained by debt restructuring the initial investment cost shall be recognized

according to Accounting Standards for Business Enterprises No. 12 - Debt Restructuring. For those

obtained by the exchange of non-Cash and bank balances the initial investment cost shall be recognized

according to Accounting Standards for Business Enterprises No. 7 Exchange of Non-Cash and bank

balances.

3. Subsequent measurement and recognition of profit or loss

Where the Company is able to exercise control over an investee long-term equity investments are

accounted for using the cost method. Long-term equity investments in associates and joint ventures are

accounted for using the equity method.

4. Accounting treatment for disposal of investments in subsidiaries step by step in multiple transactions

and loss of control

(1) Judgment principles of whether the transactions constitute a "package deal"

Where the equity investment in a subsidiary is disposed of step by step through multiple transactions

until it loses control the Company shall judge whether the transactions constitute a "package deal" based

on information including the terms of the transaction agreement the consideration of disposal obtained

the object of the sale of the equity the method of disposal and the time of disposal for each step of the

step-by-step transaction. The multiple transactions constitute a "package deal" when the terms

conditions and economic impacts of the multiple transactions meet the following one or more

conditions:

1) These transactions are entered into at the same time or after considering their impacts on each other;

2) These transactions as a whole may reach a complete business result;

3) The occurrence of a transaction depends on at least the occurrence of another transaction;

4) An individual transaction is not deemed as economic but is deemed as economic when considered

with other transactions.

(2) Accounting treatments do not constitute a "package deal"

1) Individual financial statements

For the equity to be disposed of the difference between its book value and the actual acquisition price

150 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

shall be recorded in profit or loss for the current period. The residual equity that still has a significant

influence on the investee or for which joint control is exercised over the investee shall be accounted for

using the equity method. If no control or joint control is exercised over the investee or there is no

significant influence on the investee the accounting treatment shall be subject to Accounting Standards

for Business Enterprises No. 22 Recognition and Measurement of Financial Instruments.

2) Consolidated financial statements

Prior to the loss of control according to the difference between the disposal price and the share of

long-term equity investments disposed of in the net assets of subsidiaries to be held and continuously

calculated from the combination date capital reserve (capital premium) shall be written down. If the

capital reserve is not sufficient to be written down then the retained earnings shall be written down.For the loss of control over former subsidiaries the residual equity shall be remeasured at the fair value

on the date of such loss. The difference between the sum of the consideration received from the disposal

of the equity plus the fair value of the residual equity and the share of former subsidiaries' net assets to

be held and continuously calculated from the combination date based on the shareholding ratio shall be

recorded in investment income for the current period in which the loss of control occurs and goodwill

shall be written down. Other comprehensive income related to equity investments in former subsidiaries

shall be transferred to investment income for the current period at the time of the loss of control.

(3) Accounting treatments constitute a "package deal"

1) Individual financial statements

Each of these transactions shall be accounted for as a transaction relating to disposal of investments in

subsidiaries and loss of control. However the difference between the disposal price and the book value

of the long-term equity investment corresponding to the disposal investment shall be recognized as other

comprehensive income in individual financial statements prior to the loss of control and at the time of

the loss of control transferred to profit or loss for the current period in which the loss of control occurs.

2) Consolidated financial statements

Each of these transactions shall be accounted for as a transaction relating to disposal of investments in

subsidiaries and loss of control. However the difference between the disposal price and the share of

investments disposed of in the net assets of subsidiaries to be held shall be recognized as other

comprehensive income in consolidated financial statements prior to the loss of control and at the time of

the loss of control transferred to profit or loss for the current period in which the loss of control occurs.

20. Investment property

(1). If the investment properties are measured at cost:

Method of depreciation or amortization

1. Investment properties include land use rights leased out land use rights held and to be transferred

after appreciation and buildings leased out.

2. Investment properties are measured initially at cost and subsequently using the cost model and

depreciated or amortized in the same way as fixed assets and intangible assets.

151 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

21. Fixed assets

(1). Recognition criteria

"√ Applicable" "□ Not applicable"

Fixed assets refer to tangible assets held for the purpose of commodity production services rendering

renting or business administration with useful lives exceeding one accounting year. Fixed assets shall be

recognized when economic benefits are likely to flow in and costs can be measured reliably.

(2). Depreciation method

"√ Applicable" "□ Not applicable"

Category Depreciation method Term of depreciation Residual rate (%) Annual depreciation

(year) rate (%)

Buildings Straight-line method 20-40 5 2.38-4.75

Machinery and Straight-line method 3-10 5 9.50-31.67

equipment

Transportation Straight-line method 5-10 5 9.50-19.00

facilities

Other equipment Straight-line method 3-10 5 9.50-31.67

22. Construction in progress

"√ Applicable" "□ Not applicable"

1. The construction in progress shall be recognized when the economic benefits are likely to flow to the

Company and the cost can be measured reliably. The construction in progress is measured at the actual

cost incurred before it is ready for its intended use.

2. The construction in progress shall be transferred to fixed assets at actual cost when it is ready for its

intended use. It shall be transferred to fixed assets at estimated value when it is ready for its intended use

but the final settlement of account has not been finished. The estimated value shall be adjusted according

to the actual cost after the final settlement of account while the accrued depreciation shall not be

adjusted.Category The standard and time node for the construction in progress to be transferred to fixed

assets

Buildings Ready for intended use upon the project completion

Machinery equipment and other The machinery and equipment meet the design requirements or the standards

equipment stipulated in the contract

Other construction in progress Ready for intended use upon the project completion

23. Borrowing costs

"√ Applicable" "□ Not applicable"

1. Recognition criteria for capitalization of borrowing costs

Borrowing costs are capitalized when they are directly attributable to the acquisition construction or

production of a qualifying asset and included in the cost of related assets. Other borrowing costs are

recognized as expenses and recorded in profit or loss for the current period when incurred.

2. Capitalization period of borrowing costs

(1) Borrowing costs can only begin to be capitalized if the following three conditions are all met

simultaneously: 1) The expenditures to acquire assets have been incurred; 2) The borrowing costs have

been incurred; 3) The acquisition construction or production activities to make the asset ready for its

152 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

intended use or sale have begun.

(2) If the acquisition construction or production of assets that meet the conditions for capitalization is

suspended abnormally and the suspension lasts for more than 3 months the capitalization of borrowing

costs will be suspended. The borrowing costs incurred during the suspension period will be recognized

as current expenses until the acquisition construction or production of such assets is resumed.

(3) When the acquired constructed or produced asset that meets the conditions for capitalization is ready

for its intended use or sale the capitalization of borrowing costs will be stopped.

3. Capitalization rate and capitalized amount of borrowing costs

If a special loan is borrowed for the acquisition construction or production of assets that meet the

capitalization conditions the amount of interest expenses (including amortization of discounts or

premiums determined using the effective interest method) actually incurred in the current period of the

special loan shall be recognized as the interest amount to be capitalized after deduction of the interest

income obtained by depositing the unused loan funds in the bank or the income from temporary

investment. If general borrowings are occupied for the purpose of acquisition construction or production

of assets that meet the capitalization conditions the Company shall calculate and determine the amount

of interest of general borrowings to be capitalized based on the weighted average value of asset

expenditures over which the accumulated asset expenditure exceeds the special borrowings multiplied

by the capitalization rate of the occupied general borrowings.

24. Biological assets

"□ Applicable" "√ Not applicable"

25. Oil & gas assets

"□ Applicable" "√ Not applicable"

26. Intangible assets

(1). Useful life and the basis for determination estimates amortization method or review process

thereof

"√ Applicable" "□ Not applicable"

1. Intangible assets include land use rights software proprietary technology and emission permit which

are initially measured at cost.

2. Intangible assets with limited useful lives shall be systematically and reasonably amortized during

their useful lives according to the expected realization mode of economic benefits relating to such assets

and where the expected realization mode cannot be reliably determined the assets shall be amortized

using the straight-line method. The details are listed below:

Item Useful life and basis for determination Amortization method

Land use rights The useful life is determined as 50 years based on the Straight Line Method

property right registration period

Software The useful life is determined as 2 - 10 years based on the Straight Line Method

expected beneficial period

Proprietary technologies The useful life is determined as 10 years based on the Straight Line Method

expected beneficial period

Emission permit The useful life is determined as 20 years based on the Straight Line Method

153 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

expected beneficial period

The Company does not amortize intangible assets with indefinite useful lives and the Company reviews

the useful lives of these intangible assets in each accounting period.

(2). Adscription ranges of expenditures on research and development and relevant accounting

treatment

"√ Applicable" "□ Not applicable"

(1) Personnel and labor costs

Personnel and labor costs cover the wages and salaries of the Company's R&D personnel basic

endowment insurance premiums basic medical insurance premiums unemployment insurance

premiums work-related injury insurance premiums maternity insurance premiums and housing

provident funds as well as labor costs for external R&D personnel.For R&D personnel serving multiple R&D projects at the same time the labor costs are confirmed based

on the working hours records of the R&D personnel of each R&D project provided by the management

department of the Company and are distributed among different R&D projects on a proportional basis.For personnel directly engaged in R&D activities and external R&D personnel engaged in non-R&D

activities at the same time the Company will distribute the actual personnel and labor costs incurred

among R&D expenses and production and operation expenses based on working hours records of R&D

personnel in different positions by adopting reasonable methods such as the proportion of actual working

hours.

(2) Direct investment costs

Direct investment costs refer to the relevant expenses actually incurred by the Company for the

implementation of R&D activities including: 1) the cost of materials fuel and power directly consumed;

2) the development and manufacturing cost of molds and process equipment for intermediate testing and

trial production the purchase cost of samples prototypes and general testing methods that do not

constitute fixed assets and the inspection cost of trial products; 3) the operation and maintenance

adjustment inspection testing and overhaul of instruments and equipment for R&D activities.

(3) Depreciation expense and long-term deferred expenses

Depreciation expense represents the depreciation expense of instruments equipment and buildings in

use used in R&D activities.For instruments equipment and buildings in use used both in R&D activities and non-R&D activities

the necessary records shall be kept on the use of such instruments equipment and buildings in use and

the actual depreciation expense incurred is allocated between R&D expenses and production and

operating expenses by reasonable methods with reference to factors such as actual working hours and

usable area.Long-term deferred expenses represent the long-term deferred expenses in the process of reconstruction

modification decoration and repair of R&D facilities which are aggregated according to actual

expenditures and amortized in equal installments over a specified period of time.

(4) amortization expense of intangible assets

154 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

The amortization costs of intangible assets mean that of software proprietary technology and land used

for research and development activities.

(5) Other expenses

Other expenses refer to expenses other than those mentioned above that are directly related to the R&D

activities including information costs for technical books data translation fees expert consultation fees

high-tech research and development insurance premiums search demonstration review appraisal and

acceptance fees of R&D results intellectual property rights application fees registration fees agency

fees conference fees travel costs communication fees etc.

4. Expenditures for the research phase of internal R&D projects are recognised in the profit and loss for

the current period when incurred. Expenditures incurred during the development phase of internal

research and development projects shall be recognized as intangible assets if the following conditions

are all met simultaneously: (1) It is technically feasible to complete the intangible asset so that it can be

used or sold; (2) There is intention to complete the intangible asset for use or sales; (3) The methods for

intangible assets to generate economic benefits are useful and there is a potential market for the

products manufactured by applying the intangible assets or for the intangible assets themselves (for

intangible assets to be used internally the usefulness can be proved); (4) Adequate technical financial

and other resources are available to finish the development of the intangible assets and use or sell the

intangible assets; (5) The expenditure attributable to the intangible asset during its development phase

can be measured reliably.

27. Impairment of long-term assets

"√ Applicable" "□ Not applicable"

For long-term equity investments investment properties measured using the cost model fixed assets

construction in progress right-of-use assets intangible assets with limited useful lives and other

long-term assets where there are indications of impairment at the balance sheet date the recoverable

amount shall be estimated. For goodwill arising from a business combination or intangible assets with

indefinite useful lives regardless of whether there are indications of impairment an impairment test

shall be conducted every year. Goodwill shall together with the related asset group or combination of

asset groups be subject to the impairment test.If the recoverable amount of any of the above-mentioned long-term assets is lower than its book value

the provision for assets impairment shall be recognized according to the difference and recorded in profit

or loss for the current period.

28. Long-term prepayments

"√ Applicable" "□ Not applicable"

Long-term amortized expenses refer to expenses that have been paid and whose amortization period is

more than 1 year (excluding 1 year). Long-term amortized expenses are recorded at the actual amounts

incurred and amortized evenly over the benefit period or specified period. If a long-term amortized

expense item does not bring benefits over the subsequent accounting periods the amortized value of the

item that has not been amortized shall be fully transferred to profit or loss for the current period.

155 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

29. Contract liabilities

"√ Applicable" "□ Not applicable"

The Company presents contract assets or contract liabilities in the balance sheet based on the

relationship between the fulfillment of performance obligations and clients' payment. The contractual

assets and liabilities under the same contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.depending only on the passage of time) as a receivable and the right to receive consideration for a

commodity transferred to a client (depending on any factor other than the passage of time) as a contract

asset.The obligation to transfer goods to a client for which consideration has been received or is receivable

from the client is shown as a contractual liability.

30. Employee compensation

(1). Accounting treatment for short-term compensation

"√ Applicable" "□ Not applicable"

In the accounting period in which employees have rendered services the Company recognizes the

short-term employee benefits actually incurred as a liability and charges to profit or loss for the current

period or the cost of related assets.

(2). Accounting treatment for post-employment benefits

"√ Applicable" "□ Not applicable"

Post-employment benefits are divided into defined contribution plans and defined benefit plans.

(1) During the accounting period in which employees have rendered services the Company recognizes

the contributions to be paid according to the defined contribution plans as a liability and charges to profit

or loss for the current period or the cost of related assets.

(2) The accounting treatment of defined benefit plans generally covers the following steps:

1) It is necessary to use unbiased and mutually compatible actuarial assumptions based on the projected

unit credit method to estimate related demographic variables and financial variables measure the

obligations under the defined benefit plans and determine the periods to which the obligations are

attributable. Furthermore the obligations under the defined benefit plans shall be discounted to

determine the present value of the defined benefit plan obligations and the current service cost;

2) When a defined benefit plan has assets the deficit or surplus by deducting the present value of the

defined benefit plan obligations from the fair value of the defined benefit plan assets shall be recognized

as a net liability or net asset of the defined benefit plan. The net asset of the defined benefit plan shall be

measured at the lower of the surplus in the defined benefit plan and the asset ceiling.

3) At the end of the period the employee benefit costs arising from defined benefit plans shall be

recognized as the cost of service the net interest on net liabilities or assets of defined benefit plans and

the changes resulting from the remeasurement of net liabilities or assets of defined benefit plans. The

cost of service and the net interest on net liabilities or assets of defined benefit plans are recorded in

profit or loss for the current period or the cost of related assets while the changes resulting from the

156 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

remeasurement of net liabilities or assets of defined benefit plans are included in other comprehensive

income and shall not be transferred back to profit or loss in subsequent accounting periods. However the

amounts recognized as other comprehensive income may be transferred within the scope of equity.

(3). Accounting treatment for termination benefits

"√ Applicable" "□ Not applicable"

Termination benefits provided to employees are recognized as an employee benefit liability and charged

to profit or loss for the current period at the earlier of the following dates: (1) The Company cannot

unilaterally withdraw the offer of termination benefits because of an employment termination plan or a

curtailment proposal; (2) The Company recognizes costs or expenses related to the reconstructing that

involves the payment of termination benefits.

(4). Accounting treatment of other long-term employee benefits

"√ Applicable" "□ Not applicable"

Other long-term employee benefits provided to employees are accounted for in accordance with the

requirements relating to defined contribution plans if the conditions for classifying as a defined

contribution plan are met and otherwise are accounted for in accordance with the requirements relating

to defined benefit plans. To simplify the relevant accounting treatment process the employee benefit

costs incurred are recognized as the cost of service the net interest on net liabilities or assets of other

long-term employee benefits and the changes resulting from the remeasurement of net liabilities or

assets of other long-term employee benefits. The total net amount is included in profit or loss for the

current period or the cost of related assets.

31. Provisions

"√ Applicable" "□ Not applicable"

1. The Company recognizes an obligation arising from the provision of external guarantees litigation

matters product quality assurance loss contract and other contingencies as a present obligation of the

Company when it is probable that the performance of the obligation will result in an outflow of

economic benefits from the Company and the amount of the obligation can be measured reliably as a

provision for liabilities.

2. The Company initially measures the provision for liabilities based on the best estimate of the

expenditures required to meet the relevant present obligations and reviews the carrying amount of the

provision for liabilities at the balance sheet date.

32. Share-based payments

"□ Applicable" "√ Not applicable"

33. Preferred shares perpetual bonds and other financial instruments

"√ Applicable" "□ Not applicable"

Pursuant to the relevant standards for financial instruments and the Regulations on Accounting

Treatment for Perpetual Bonds (CK [2019] No. 2) the Company classifies financial instruments issued

by it such as preferred shares/perpetual bonds (e.g. long-term medium-term notes with embedded

157 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

options)/warrants/convertible corporate bonds or their components as financial assets financial

liabilities or equity instruments at initial recognition based on the contractual terms of the issued

financial instruments and their economic substance rather than their legal form in conjunction with the

definitions of financial assets financial liabilities and equity instruments.At the balance sheet date for financial instruments classified as equity instruments their interest

expenses or dividend distributions are treated as profit distributions of the Company and their

repurchase or cancellation is accounted for as changes in equity; for financial instruments classified as

financial liabilities their interest expenses or dividend distributions are accounted for as borrowing costs

and gains or losses arising from their repurchase or redemption are recognized in profit or loss for the

period.

34. Revenue

(1). Disclosure of accounting policies used in revenue recognition and measurement by business

type

"√ Applicable" "□ Not applicable"

At the commencement date of a contract the Company performs an assessment of the contract

identifies the individual performance obligation contained in the contract and determines whether the

individual performance obligation is performed within a certain period of time or at a certain point in

time.A performance obligation is satisfied within a certain period of time when one of the following

conditions is met; otherwise the performance obligation is satisfied at a certain point in time: (1) the

client obtains and consumes the economic benefits brought by the performance of the company while

the company performs; (2) the client is able to control the goods under construction during the

performance of the Company; (3) Commodities produced in the course of the Company's performance

have an irreplaceable use and the Company is entitled to collect payments for the part of performance

that has been completed so far during the entire contract period.For performance obligations performed over a period of time the Company recognizes revenue based on

the progress of the performance over that period of time. When the performance progress cannot be

reasonably determined if the costs incurred are expected to be compensated revenue is recognized

based on the number of costs incurred until the performance progress can be reasonably determined. For

performance obligations performed at a certain point in time revenue is recognized at the point in time

when the client obtains control of the related goods or services. In determining whether the client has

obtained control of the commodity the Company considers the following indicators: (1) the Company

has a present collection right in respect of the commodity i.e. the client has a present payment obligation

in respect of the commodity; (2) the Company has transferred the legal ownership of the commodity to

the client i.e. the client has owned the legal ownership of the commodity; (3) The Company has

physically transferred the commodity to the client i.e. the client has physically occupied the commodity;

(4) the Company has transferred the principal risks and rewards of ownership of the commodity to the

client i.e. the client has obtained the principal risks and rewards of ownership of the commodity; (5) the

158 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

client has accepted the commodity; (6) Other indicators that the client has obtained control of the

commodity.

(2). Adoption of different business models for similar business types involves different revenue

recognition methods and measurement approaches

"√ Applicable" "□ Not applicable"

Revenue measurement principles

(1) The Company measures revenue at the transaction price allocated to the individual performance

obligation. The transaction price is the amount of consideration to which the Company is expected to be

entitled to collect for the transfer of goods or services to the client excluding amounts received on

behalf of third parties and amounts expected to be returned to the client.

(2) Where there is a variable consideration in the contract the Company determines the best estimate of

the variable consideration based on the expected value or the amount that is most likely to occur but the

transaction price that contains the variable consideration does not exceed the amount by which it is

highly probable that a significant reversal of the cumulative revenue recognized will not occur when the

relevant uncertainty is eliminated.

(3) Where there is a significant financing component in the contract the Company determines the

transaction price based on the amount payable that is assumed to be paid in cash when the client obtains

control of the goods or services. The difference between the transaction price and the contract

consideration is amortised using the effective interest method over the contract period. At the

commencement date of the contract if the company expects the client to obtain control of the goods or

services within one year of the customer paying the price it does not consider the significant financing

component in the contract.

(4) If the contract contains two or more performance obligations the Company shall on the

commencement date of the contract allocate the transaction price to the individual performance

obligation based on the relative proportion of the individual selling prices of the commodities promised

by the individual performance obligation.Specific methods of revenue recognition

The Company mainly engages in the sales of forklifts and parts which represent performance

obligations satisfied at a point in time. Domestic sales revenue is recognized when the Company delivers

the products to the buyer as agreed in the contract receives the payment or obtains the right to payment

and it is probable that the associated economic benefits will flow into the Company. Export sales

revenue is recognized when the Company completes customs clearance as agreed in the contract

receives a bill of lading receive the payment for goods or obtains the right to payment and it is probable

that the associated economic benefits will flow into the Company.

35. Contract costs

"√ Applicable" "□ Not applicable"

The Company presents contract assets or contract liabilities in the balance sheet based on the

relationship between the fulfillment of performance obligations and clients' payment. The contractual

159 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

assets and liabilities under the same contract are shown on a net basis after mutual offset.The Company presents the right to receive consideration from a client that it owns unconditionally (i.e.depending only on the passage of time) as a receivable and the right to receive consideration for a

commodity transferred to a client (depending on any factor other than the passage of time) as a contract

asset.The obligation to transfer goods to a client for which consideration has been received or is receivable

from the client is shown as a contractual liability.

36. Government grants

"√ Applicable" "□ Not applicable"

1. A government grant is recognized when both of the following conditions are met: (1) the Company is

able to meet the conditions attached to the government grant; (2) The Company is able to receive

government grants. Where government grants are Cash and bank balances they are measured at the

amount received or receivable. Government grants that are non-Cash and bank balances are measured at

fair value; Where the fair value cannot be reliably obtained the non-Cash and bank balances shall be

measured at the nominal amount.

2. Basis for judging government grants related to assets and accounting methods

Government documents provide that government grants used to purchase build or otherwise forming

long-term assets are classified as government grants related to the assets. If the government documents

are not clear the judgment shall be based on the basic conditions necessary to obtain the grant and the

government grant whose basic conditions are to purchase build or otherwise form long-term assets shall

be deemed as the government grant related to the asset. Government grants relating to assets offset

against the carrying amount of the related assets or are recognized as deferred income. Where

government grants relating to assets are recognized as deferred income they are credited to profit or loss

over the useful life of the relevant assets in a reasonable and systematic manner. Government grants

measured at nominal amounts are credited directly to profit or loss for the current period. Where the

relevant asset is sold transferred scrapped or damaged before the end of its useful life the undistributed

balance of the relevant deferred income is transferred to the profit or loss of the current period in which

the asset is disposed of.

3. Basis for judging government grants related to income and accounting method

Government grants other than those relating to assets are classified as income-related government grants.For government grants that contain both asset-related and revenue-related components those that are

difficult to distinguish between asset-related and income-related are classified as income-related

government grants in their entirety. Government grants relating to income that compensate for related

costs expenses or losses in subsequent periods are recognized as deferred income and are credited to

profit or loss or reduced to related costs in the current period in which the related costs expenses or

losses are recognized; Those used to compensate the related costs or losses incurred are directly included

in the current profit or loss or offset against the related costs.

4. Government grants relating to the Company's daily operating activities are included in other revenue

160 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

or offset against related costs and expenses in accordance with the substance of the economic business.Government grants that are not related to the Company's daily activities are included in the

non-operating revenue and expenses.

5. Accounting treatment for preferential loan with interest subsidy subject to the policy

(1) If the Ministry of Finance allocates the fund for interest subsidy to the lending bank and the lending

bank provides the loan to the Company at the preferential interest rate the Company accounts for the

loan at the actual amount of the loan received and calculates the borrowing costs based on the principal

and the preferential interest rate of the loan.

(2) When the government directly allocates the interest subsidy funds to the company the corresponding

subsidy amount is deducted from the relevant borrowing costs.

37. Deferred tax assets/deferred tax liabilities

"√ Applicable" "□ Not applicable"

1. A deferred income tax asset or a deferred income tax liability is recognized based on the difference

between the carrying amount of an asset or liability and its tax basis (or the difference between the

carrying amount of an item that is not recognized as an asset or liability and the tax basis if its tax basis

can be determined in accordance with the provisions of the tax law) at the tax rates applicable in the

period in which the asset is expected to be recovered or the liability is settled.

2. Deferred income tax assets are recognized to the extent of the amount of the taxable income that is

likely to be obtained and deducted from deductible temporary difference. On the balance sheet date

deferred income tax assets that have not been recognized in previous accounting periods shall be

recognized if there is conclusive evidence that sufficient taxable income is likely to be obtained in the

future period to offset deductible temporary differences.

3. On the balance sheet date the carrying value of deferred income tax assets is reviewed and if it is

probable that sufficient taxable income will not be available in future periods to offset the benefits of the

deferred income tax assets the carrying value of the deferred income tax assets is written down. The

amount written down is reversed when it is probable that sufficient taxable income will be available.

4. The current corporate income tax and deferred income tax are included in the current profit or loss as

income tax expense or earnings but do not include income tax arising from (1) business combination; (2)

Transactions or events recognized directly in owner's equity.

5. The Company will list the deferred tax assets and deferred tax liabilities as the net amounts upon

offsetting where all the following conditions are met: (1) It has the statutory right to offset current tax

assets against current tax liabilities; (2) The deferred tax assets and deferred tax liabilities are related to

the income tax levied by the same tax administration department on the same taxpayer or related to

different taxpayers but during any future period in which important deferred tax assets or liabilities are

reversed the taxpayers involved have the intention to offset the current tax assets against the current tax

liabilities or acquire assets and settle liabilities concurrently.

38. Lease

"√ Applicable" "□ Not applicable"

161 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Basis for determination of simplified treatment of and accounting treatment for short-term leases

and leases of low-value assets as lessee

"√ Applicable" "□ Not applicable"

At the commencement date of the lease term the Company considers a lease that has a lease term of not

more than 12 months and does not contain a purchase option as a short-term lease; Leases that have a

lower value when the individual leased asset is an entirely new asset are considered to be leases of

low-value assets. Where the Company subleases or expects to sublease the leased asset the original

lease is not deemed as a lease of low-value assets.For all short-term leases and leases of low-value assets the Company includes the amount of lease

payments into the relevant asset cost or current profit and loss according to the straight-line method

during each period of the lease term.In addition to the short-term leases and leases of low-value assets with simplified treatment described

above the Company recognizes right-of-use assets and lease liabilities for leases at the commencement

date of the lease term.

(1) Right-of-use assets

Right-of-use assets are initially measured at cost which includes: 1) the amount initially measured for

the lease liability; 2) the number of lease payments paid on or before the commencement date of the

lease term if there is a lease incentive less the amount of the lease incentive already enjoyed; 3) initial

direct costs incurred by the lessee; 4) the costs that the lessee expects to incur to dismantle and remove

the leased asset restore the site on which the leased asset is located or restore the leased asset to the

condition agreed upon in the lease terms.The Company depreciates the right-of-use assets on a straight-line basis. If it is reasonably certain that

the ownership of assets leased will be obtained at the end of the lease term the Company conducts

depreciation during the remaining useful life of the leased assets. Otherwise depreciation is conducted

during the lease term or the remaining useful life of the leased assets whichever is shorter.

(2) Lease liabilities

At the commencement date of the lease term the Company recognizes the present value of the unpaid

lease payments as the lease liabilities. The present value of lease payments is calculated using the

interest rate implicit in the lease as the discount rate. If the interest rate implicit in the lease cannot be

determined the corporate incremental borrowing rate is used as the discount rate. The difference

between the lease payments and their present value is treated as an unrecognized finance charge. Interest

expense is recognized in profit or loss for each lease term period at the discount rate used to recognize

the present value of the lease payments. Variable lease payments that are not included in the

measurement of lease liabilities are included in current profit or loss when they actually occur.After the commencement date of the lease term when there is a change in the amount of substantially

fixed payments a change in the amount expected to be payable for the remaining value of the guarantee

a change in the index or rate used to determine the amount of the lease payments a change in the

outcome of an assessment of a purchase option a renewal option or a termination option or a change in

162 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

the actual exercise the Company remeasures the lease liability based on the present value of the changed

lease payments and adjusts the carrying value of the right-of-use asset accordingly. If the carrying value

of the right-of-use asset has been reduced to zero but the lease liability still needs to be further reduced

the remaining amount is included in the current profit or loss.The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in

accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company measures the

right-of-use asset resulting from the sale-and-leaseback at the portion of the original asset's carrying

value that relates to the right-of-use acquired through the leaseback and recognizes a gain or loss related

to the right transferred to the lessor only.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company continues to

recognize the transferred asset and at the same time recognizes a financial liability equal to the transfer

proceeds and accounts for the financial liability in accordance with Accounting Standards for Business

Enterprises No. 22 - Recognition and Measurement of Financial Instruments.Lease classification criteria and accounting treatment as lessor

"√ Applicable" "□ Not applicable"

At the commencement date of a lease the Company classifies a lease as a finance lease in which

substantially all the risks and rewards associated with ownership of the leased asset are transferred with

the exception of an operating lease.

(1) Operating leases

The Company recognizes lease receipts as rental income on a straight-line basis over each period of the

lease term capitalises the initial direct costs incurred and allocates them on the same basis as rental

income recognition and is credited to profit or loss in installments. Variable lease payments relating to

operating leases obtained by the Company that are not included in the lease receipts are included in

profit or loss as they actually occur.

(2) Finance lease

At the commencement date of the lease term the Company recognizes the finance lease payments

receivable based on the net investment in the lease (the sum of the unguaranteed residual value and the

present value of the lease receipts outstanding at the commencement date discounted at the interest rate

implicit in the lease) and derecognizes the finance lease asset. The Company calculates and recognizes

interest income at the interest rate implicit in the lease for each period of the lease term.Variable lease payments received by the Company that are not included in the measurement of net lease

investment are included in profit or loss as they actually occur.The Company assesses whether the transfer of assets in a sale-and-leaseback transaction is a sale in

accordance with the provisions of Accounting Standards for Business Enterprises No. 14 - Revenues.If the transfer of an asset in a sale-and-leaseback transaction is a sale the Company accounts for the

purchase of assets in accordance with other applicable Accounting Standards for Business Enterprises

and accounts for the lease of assets in accordance with Accounting Standards for Business Enterprises

163 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

No. 21 - Leases.If the transfer of an asset in a sale-and-leaseback transaction is not a sale the Company does not

recognize the transferred asset but recognizes a financial asset equal to the transfer proceeds and

accounts for the financial asset in accordance with Accounting Standards for Business Enterprises No.

22 - Recognition and Measurement of Financial Instruments.

39. Other significant accounting policies and accounting estimates

"√ Applicable" "□ Not applicable"

1. Basis for hedge accounting and accounting treatment

(1) Categories of hedges include fair value hedge/cash flow hedge/hedge of a net investment in a foreign

operation.

(2) Hedges that meet the following criteria are accounted for using hedge accounting: 1) the hedging

relationship consists solely of eligible hedging instruments and hedged items; 2) at the inception of the

hedge the Company formally designates the hedging instruments and hedged items and documents in

writing the hedging relationship as well as the risk management strategy and objectives for undertaking

the hedge; 3) the hedging relationship meets the hedge effectiveness requirements.A hedging relationship is deemed to meet the hedge effectiveness requirements only if all of the

following criteria are satisfied: 1) there is an economic relationship between the hedged item and the

hedging instrument; 2) the effect of credit risk does not dominate the value changes that result from that

economic relationship; 3) the hedge ratio of the hedging relationship is the same as that resulting from

the quantity of the hedged item that the Company actually hedges and the quantity of the hedging

instrument that the Company actually uses to hedge that quantity of hedged item. However that

designation shall not reflect an imbalance between the weightings of the hedged item and the hedging

instrument.The Company assesses on an ongoing basis both at the inception of the hedge and in subsequent periods

whether the hedging relationship meets the hedge effectiveness requirements. If a hedging relationship

no longer meets the hedge effectiveness requirements due to changes in the hedge ratio but the risk

management objective for designating the hedging relationship has not changed the Company will

rebalance the hedging relationship.

(3) Accounting treatment for hedges

1) Fair value hedge

* Gains or losses arising from hedging instruments are recognized in profit or loss for the period. If the

hedging instrument is to hedge a non-trading equity instrument (or a component thereof) to be measured

at fair value through other comprehensive income the gains or losses arising from the hedging

instruments are recognized other comprehensive income.* Gains or losses arising from risk exposure of hedged items are recognized in profit or loss for the

period while adjusting the carrying amount of recognized hedged items not measured at fair value. If the

hedged item is a financial asset (or a component thereof) classified as measured at fair value through

other comprehensive income in accordance with Article 18 of the Accounting Standards for Business

164 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Enterprises No. 22 - Recognition and Measurement of Financial Instruments the gains or losses arising

from the hedged risk exposure are recognized in profit or loss for the period and its carrying amount

will be not adjusted as it has been measured at fair value; if the hedged item is a non-trading equity

instrument investment (or a component thereof) designated by the Company to be measured at fair value

through other comprehensive income the gains or losses arising from the hedged risk exposure are

recognized in other comprehensive income and its carrying amount will be not adjusted as it has been

measured at fair value.If the hedged item is an unrecognized firm commitment (or a component thereof) the cumulative change

in fair value attributable to the hedged risk after the designation of the hedging relationship is recognized

as an asset or liability with the related gains or losses recognized in profit or loss in each relevant period.When fulfilling the firm commitment to acquire an asset or assume a liability the initial recognition

amount of such asset or liability is adjusted to include the cumulative change in the fair value of the

hedged item that was recognized.If the hedged item is a financial instrument (or a component thereof) measured at amortized cost the

adjustment made by the Company to the carrying amount of the hedged item is amortized based on the

recalculated effective interest rate at the date amortization begins and recognized in profit or loss for the

period. If the hedged item is a financial asset (or a component thereof) classified as measured at fair

value through other comprehensive income in accordance with Article 18 of the Accounting Standards

for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments the

cumulative recognized hedging gains or losses are amortized in the same manner and recognized in

profit or loss for the period but the carrying amount of the financial asset (or a component thereof) will

not be adjusted.

2) Cash flow hedge

* The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge

is recognized in other comprehensive income as a cash flow hedge reserve while the ineffective portion

is recognized in profit or loss for the period. The amount of the cash flow hedge reserve is recognized at

the lower of the following (in absolute amounts): A. the cumulative gain or loss on the hedging

instrument from inception of the hedge; B. the cumulative change in present value of the expected future

cash flow of the hedged item from inception of the hedge.* The hedged item is an anticipated transaction and if that anticipated transaction subsequently results

in the recognition of a non-financial asset or non-financial liability by the Company or when the

anticipated transaction for non-financial assets and liabilities forms a firm commitment eligible for fair

value hedge accounting the amount of the cash flow hedge reserve originally recognized in other

comprehensive income is removed and included in the initial recognition amount of that asset or

liability.* For other cash flow hedges the amount of the cash flow hedge reserve originally recognized in other

comprehensive income is removed in the same period when the hedged anticipated transaction affects

the profit or loss and recognized in profit or loss for the period.

165 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

3) Hedge of a net investment in a foreign operation

The portion of the gain or loss arising from hedging instrument that is determined to be an effective

hedge is recognized in other comprehensive income and subsequently reclassified to current profit or

loss upon disposal of the foreign operation; the ineffective portion of the gain or loss arising from

hedging instrument is recognized in profit or loss for the period.

2. Accounting treatment related to repurchase of the Company’s shares

For share repurchases due to capital reduction or employee incentives the actual amount paid is

accounted for as treasury shares and registered for future reference. If the repurchased shares are

canceled the difference between the total par value of the canceled shares calculated based on the face

value of the canceled shares and the number of canceled shares and the actual amount paid for the

repurchase will be offset against the capital reserve. If the capital reserve is insufficient the retained

earnings will be offset against. If the repurchased shares are granted to employees of the Company as

equity-settled share-based payment when the payment is received from the employees for exercise of

their right to purchase the Company’s shares the carrying amount of the treasury shares allocated to

employees and the cumulative capital reserve (other capital reserves) recognized during the vesting

period shall be de-recognized while any difference arising from this transaction shall be adjusted against

the capital reserve (share premium).

40. Changes in significant accounting policies and accounting estimatesPlease refer to Section V Significant Matters for “Analysis and Explanation of the Reasons and Impactof Changes in Accounting Policies Accounting Estimates or Corrections of Significant AccountingErrors”

41. First application of new accounting standards or their interpretations from 2025 involves

adjustments to the financial statements at the beginning of the first application year

"□ Applicable" "√ Not applicable"

42. Other

"□ Applicable" "√ Not applicable"

6. Taxes

1. Main tax types and rates

Main tax types and rates

"√ Applicable" "□ Not applicable"

Taxes Tax basis Tax rate

The output tax is calculated based on the income from sales of goods

Value-added tax and taxable services calculated in accordance with the provisions of the [Note 1]

tax law. After deducting the deductible input tax for the current period

the difference is the value-added tax payable.If levied on an ad valorem basis calculated and paid at 1.2% of the

Property tax residual value after deducting 30% from the original value of the 1.2%12%

property; If levied on the rental calculated and paid at 12% of the rental

income

Urban maintenance Actual turnover tax paid [Note 2]

166 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

and construction tax

Education surcharge Actual turnover tax paid 3%

Local education Actual turnover tax paid 2%

surcharge

Business income tax Taxable amount of income 15%-29.66%

[Note 1] The subsidiary Hangcha Europe GmbH is subject to a business income tax rate of 19%. The

subsidiary Hangcha Forklift Canada Inc. is subject to a business income tax rate of 14.975%. The

subsidiary Hangcha Netherlands B.V. is subject to a business income tax rate of 21%. The subsidiaries

Hangcha (Thailand) Co. Ltd. and Hangcha Group Manufacturing (Thailand) Co. Ltd. are subject to a

business income tax rate of 7%. The subsidiary HC Forklift Australia Pty Ltd is subject to a business

income tax rate of 10%. The subsidiary Hangcha Brasil Ltda is subject to a business income tax rate of

12%. The subsidiary PT Hangcha Indonesia Forklift is subject to a business income tax rate of 11%. The

subsidiaries Hangcha Japan Co. Ltd. and Hangcha (Malaysia) Sdn. Bhd. are subject to a business

income tax rate of 10%. The subsidiary Hangcha Europe Rental & Sales is subject to a business income

tax rate of 20%. The subsidiary Hangcha Forklift Vietnam Co. Ltd. is subject to a business income tax

rate of 8%. The subsidiary Hangcha Middle East General Trading FZE is subject to a business income

tax rate of 5%. The company and its other subsidiaries are subject to a business income tax rate of 13%

on sales of goods and the provision of taxable services 6% on sales services and 9% on income from

real estate leasing (5% on income from real estate acquired before 30 April 2016 based on the simplified

method of tax calculation). Exported goods are eligible for the "exemption deduction and refund"

policy with a tax rebate rate of 13% for complete vehicles and major components and 0% for certain

batteries and tires.[Note 2] The subsidiaries Shanghai Hangcha Forklift Sales Co. Ltd. Zhongshan Hangcha Forklift Co.Ltd. Ningxia Hangcha Forklift Sales Co. Ltd. Zhanjiang Hangcha Forklift Co. Ltd. Inner Mongolia

Hangcha Forklift Sales Co. Ltd. Anhui Hangcha Forklift Sales Co. Ltd. Beijing Hangcha Forklift Co.Ltd. Fujian Hangcha Forklift Co. Ltd. and Zhejiang Zhichujia Material Handling Equipment Co. Ltd.pay 5% of the payable goods turnover tax. The company and its other subsidiaries pay 7% of the payable

goods turnover tax.Disclosure of details when taxpayers are subject to different enterprise income tax rates

"√ Applicable" "□ Not applicable"

Name of tax payer Income tax rate

The Company and 13 subsidiaries and sub-subsidiaries including 15%

Hangzhou Forklift Sheet Welding Co. Ltd.HANGCHA NETHERLANDS B.V. 15% 25.80% [Note 1]

HC FORKLIFT AMERICA CORPORATION 23.50% [Note 2]

HANGCHA FORKLIFT CANADA INC. 26.50% [Note 3]

HANGCHA EUROPE GMBH 29.66% [Note 4]

HANGCHA (THAILAND) CO.LTD. and HANGCHA GROUP 20% [Note 5]

MANUFACTURING (THAILAND) CO.LTD.HANGCHA BRASIL LTDA. 15% 25% [Note 6]

PT HANGCHA INDONESIA FORKLIFT 20% 25% [Note 7]

HANGCHA JAPAN CO.LTD. 15% 23.20% [Note 8]

HANGCHA (MALAYSIA) SDN.BHD. 24% [Note 9]

167 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

HANGCHA FORKLIFT VIETNAM CO.LTD. 20% [Note 10]

HANGCHA MIDDLE EAST GENERAL TRADING FZE 0% [Note 11]

Taizhou Hangcha Forklift Sales Co. Ltd. and 49 subsidiaries and 20%

sub-subsidiaries

Other taxpayers other than those mentioned above 25%

[Note 1] The subsidiary HANGCHA NETHERLANDS B.V is subject to corporate income tax in

accordance with the tax policies of the Netherlands where it is registered. The portion of taxable income

not exceeding EUR 395000.00 is subject to the tax rate of 15% and the portion exceeding EUR

395000.00 is subject to the tax rate of 25.80%

[Note 2] The subsidiary HC FORKLIFT AMERICA CORPORATION is subject to corporate income

tax in accordance with the tax policies of the USA where it is registered including federal tax of 21%

and North Carolina tax of 2.50%

[Note 3] The subsidiary HANGCHA FORKLIFT CANADA INC. is subject to corporate income tax in

accordance with the tax policies of Canada where it is registered including federal tax of 15% and

Quebec income tax of 11.50%

[Note 4] The subsidiary HANGCHA EUROPE GMBH is subject to corporate income tax in accordance

with the tax policies of Germany where it is registered including corporate income tax of 15%

solidarity surcharge of 0.83% and business tax of 13.83%

[Note 5] The subsidiaries Hangcha (Thailand) Co. Ltd. and Hangcha Group Manufacturing (Thailand)

Co. Ltd. are subject to corporate income tax at a rate of 20% in accordance with the tax policies of

Thailand where it is registered

[Note 6] The subsidiary HANGCHA BRASIL LTDA. is subject to corporate income tax in accordance

with the tax policies of Brazil where it is registered. The tax rate is 15% for the portion of the

Company’s profit less than BRL 240000 and 25% for the portion of the Company’s profit exceeding

BRL 240000

[Note 7] The subsidiary PT HANGCHA INDONESIA FORKLIFT is subject to corporate income tax in

accordance with the tax policies of Indonesia where it is registered. If the Company’s annual turnover is

less than IDR 50 billion the applicable tax rate is 20%; if more than IDR 50 billion the applicable tax

rate is 25%

[Note 8] The subsidiary HANGCHA JAPAN CO. LTD. is subject to corporate income tax in accordance

with the tax policies of Japan where it is registered. The tax rate is 15% for the portion of taxable income

less than JPY 8 million and the applicable tax rate is 23.20% for the portion of taxable income above

JPY 8 million

[Note 9] The subsidiary HANGCHA (MALAYSIA) SDN.BHD. is subject to corporate income tax at a

rate of 24% in accordance with the tax policies of MALAYSIA where it is registered

[Note 10] The subsidiary Hangcha Forklift Vietnam Co. Ltd. is subject to corporate income tax at a rate

of 20% in accordance with the tax policies of Vietnam where it is registered

[Note 11] The subsidiary Hangcha Middle East General Trading FZE is subject to corporate income tax

in accordance with the tax policies of the UAE where it is registered. The tax rate is 0% for taxable

income below AED 375000 and 9% for taxable income above that amount

168 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

2. Tax incentives

"√ Applicable" "□ Not applicable"

Relevant basis and explanations for the reduction and exemption of corporate income tax

1. Pursuant to the Announcement on the Filing of High-Tech Enterprises Certified and Reported by

Zhejiang Provincial Certification Agency in 2025 issued by the National High-Tech Enterprise

Certification Management Leading Group Office on December 19 2025 the sub-subsidiary Zhejiang

Guozi Robotics Co. Ltd. has been certified as a high-tech enterprise which remains valid for a period of

three years. Subject to the relevant regulations including the Corporate Income Tax Law it is entitled to

a corporate income tax rate of 15% for national high-tech enterprises during the period from January 1

2025 to December 31 2027. Consequently the reduced income tax rate of 15% is applicable to this

period.

2. Pursuant to the Announcement on the Filing of High-tech Enterprises Certified and Reported by

Zhejiang Provincial Certification Agency in 2023 issued by the National High-tech Enterprise

Certification Management Leading Group Office on December 28 2023 the Company Hangcha Group

Co. Ltd. and its subsidiaries Hangzhou Forklift Sheet Welding Co. Ltd. Hangzhou Forklift Mast Co.Ltd. Hangzhou Hangcha Electric Appliance Co. Ltd. Hangzhou Hangcha Machinery Equipment

Manufacturing Co. Ltd. Zhejiang Hangcha Guozi Robotics Co. Ltd. Hangzhou Hangcha Aerial

Equipment Co. Ltd. and Hangzhou Hangcha Precision Manufacturing Co. Ltd. have been certified as

high-tech enterprises which remains valid for a period of three years. Subject to the relevant regulations

including the Corporate Income Tax Law they are entitled to a corporate income tax rate of 15% for

national high-tech enterprises during the period from January 1 2023 to December 31 2025.Consequently the reduced income tax rate of 15% is applicable to this period.

3. Pursuant to the Announcement on the Filing of High-tech Enterprises Certified and Reported by

Zhejiang Provincial Certification Agency in 2024 issued by the National High-tech Enterprise

Certification Management Leading Group Office on December 26 2024 the subsidiaries Hangzhou

Hangcha Bridge Box Co. Ltd. and the sub-subsidiary Zhejiang Hangcha Okamura Intelligent

Technology Co. Ltd. have been certified as high-tech enterprises which remains valid for a period of

three years. Subject to the relevant regulations including the Corporate Income Tax Law they are

entitled to a corporate income tax rate of 15% for national high-tech enterprises during the period from

January 1 2024 to December 31 2026. Consequently the reduced income tax rate of 15% is applicable

to this period.

4. Pursuant to the Notice on Announcing the List of the Second Batch of High-tech Enterprises to be

Certified by Shaanxi Province in 2023 issued by the Shaanxi Province High-tech Enterprise Certification

Management Leading Group Office on July 31 2023 the subsidiary Baoji Hangcha Engineering

Machinery Co. Ltd. has been certified as a high-tech enterprise which remains valid for a period of

three years. Subject to the relevant regulations including the Corporate Income Tax Law it is entitled to

a corporate income tax rate of 15% for national high-tech enterprises during the period from January 1

2023 to December 31 2025. Consequently a reduced income tax rate of 15% is applicable to this

169 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

period.

5. Pursuant to the Announcement on the Filing of High-tech Enterprises Certified and Reported by

Zhejiang Provincial Certification Agency in 2025 issued by the National High-tech Enterprise

Certification Management Leading Group Office on December 19 2025 the subsidiaries Hangzhou

Hangcha Kangli Forklift Attachments Co. Ltd. and Hangzhou Hangcha Cab Co. Ltd. have been

certified as high-tech enterprises which remains valid for a period of three years. Subject to the relevant

regulations including the Corporate Income Tax Law they are entitled to a corporate income tax rate of

15% for national high-tech enterprises during the period from January 1 2025 to December 31 2027.

Consequently the reduced income tax rate of 15% is applicable to this period.

6. Pursuant to the Announcement of the Ministry of Finance and the State Taxation Administration on

Implementing the Preferential Income Tax Policies for Micro and Small Enterprises and Individual

Industrial and Commercial Households (Announcement No. 12 [2021] of the Ministry of Finance and

the State Taxation Administration) and the Announcement of the Ministry of Finance and the State

Taxation Administration on the Relevant Tax and Fee Policies for Further Supporting the Development

of Micro and Small Enterprises and Individual Industrial and Commercial Households (Announcement

No. 12 [2023] of the Ministry of Finance and the State Taxation Administration) 49 subsidiaries and

sub-subsidiaries including Taizhou Hangcha Forklift Sales Co. Ltd. have been qualified as micro and

small enterprises. For annual taxable income below RMB 3 million a reduced income tax rate of 25% is

applicable to their taxable income with corporate income tax levied at 20% (with an actual levy rate of

5%).

7. Pursuant to Article 2 of the Announcement of the Ministry of Finance and the State Taxation

Administration on Tax and Fee Policies for Further Supporting the Development of Small and Micro

Enterprises and Individual Businesses (Announcement [2023] No. 12 of the Ministry of Finance and the

State Taxation Administration) from January 1 2023 to December 31 2027 the small-scale VAT

taxpayers small low-profit enterprises and individual businesses are entitled to a 50% reduction in

resource tax (excluding water resource tax) urban maintenance and construction tax property tax urban

land use tax stamp duty (excluding stamp duty on securities transactions) cultivated land occupation tax

education surcharges and local education surcharges. The 49 subsidiaries and sub-subsidiaries of the

Company are eligible to enjoy a 50% reduction in the Construction Tax the Educational Surcharge and

the Local Educational Surcharge.

8. Pursuant to the relevant provisions of the Announcement of the Ministry of Finance and the State

Taxation Administration on the Additional Value-added Tax Deduction Policy for Advanced

Manufacturing Enterprises (Announcement [2023] No. 43 of the Ministry of Finance and the State

Taxation Administration) from January 1 2023 to December 31 2027 the eligible advanced

manufacturing enterprises are permitted to claim an additional 5% deduction in their current deductible

input VAT against the VAT amount payable for the period. During the current period this Company

Hangcha Group Co. Ltd. and its 14 subsidiaries including Hangzhou Forklift Sheet Welding Co. Ltd.are entitled to this preferential policy.

170 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

9. Pursuant to the Notice on Value-added Tax Policies for Software Products (No. 100 [2011] of the

Ministry of Finance) the Company Hangcha Group Co. Ltd. and its subsidiaries Hangzhou Hangcha

Aerial Equipment Co. Ltd. Hangzhou Hangcha Cab Co. Ltd. and Zhejiang Hangcha Guozi Robotics

Co. Ltd. and sub-subsidiaries Zhejiang Guozi Robot Technology Co. Ltd. Zhejiang Guozi Intelligent

Equipment Co. Ltd. Zhejiang Hangcha Okamura Intelligent Technology Co. Ltd. and Hefei Hanhe

Intelligent Logistics Technology Co. Ltd. enjoy the Preferential VAT Policies of Immediate Refund

upon Payment for the proportion of value-added tax on the sales of software products exceeding 3%.

10. Pursuant to the relevant provisions of the Suggestions to Encourage Foreign Capital to Establish

Research and Development Institutions and Certifying Standard and Managing Measures for Software

Enterprises (Proposed) the sub-subsidiary Zhejiang Guozi Robotics Co. Ltd. has been recognized as a

software enterprise by the Economy and Information Technology Commission of Zhejiang Province.Therefore from the first profitable year onwards the company is eligible for a “two-year exemption andthree-year half reduction” policy for corporate income tax. The sub-subsidiary Zhejiang Guozi Robotics

Co. Ltd. has not yet begun to enjoy corporate income tax preferential policies.

3. Other

"□ Applicable" "√ Not applicable"

7. IV. Notes to the Consolidated Financial Statements Items

1. Cash and bank balances

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Cash on hand 5932401.96 1232590.16

Bank deposits 4329553230.58 4151444191.61

Other cash and bank balances 41733003.75 30017831.55

Deposits with Finance Companies

Total Amount 4377218636.29 4182694613.32

Of which: Total amount of funds deposited 359028095.25 375717155.94

beyond China.Other notes:

Other cash and bank balances at the end of the period included guarantee deposits of RMB

14005121.23 deposits for foreign exchange derivatives of RMB 147933.08 bank acceptance deposits

of RMB 23318691.63 performance bonds of RMB 3297818.97 and deposits held in third-party

payment accounts of RMB 963438.84.

2. Held-for-trading financial assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance Designated Reason and

Basis

Financial assets measured at fair 100347215.23 85755439.73 /

value and the changes are included

171 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

in current profits and losses

Including:

Wealth management products 100347215.23 85755439.73 /

Total Amount 100347215.23 85755439.73 /

Other notes:

"□ Applicable" "√ Not applicable"

3. Derivative financial assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Foreign exchange derivatives [Note] 1635304.53

Total Amount 1635304.53

Other notes:

[Note] Foreign exchange derivative instruments have been adjusted from held-for-trading financial

assets to derivative financial assets in accordance with the Compilation of the Guidelines for the

Application of Enterprise Accounting Standards (2024).

4. Notes receivable

(1). Notes Receivable Listed by Category

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Bank acceptance bill

Commercial acceptance bills 16088216.14 17251330.80

Total Amount 16088216.14 17251330.80

(2). Notes receivable pledged by the Company at the end of the period

"□ Applicable" "√ Not applicable"

(3). Notes receivable endorsed or discounted by the Company at the end of the period and not yet

due at the balance sheet date

"□ Applicable" "√ Not applicable"

(4). Disclosure of notes receivable by bad debt accrual method

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book value Book value

Percentage Percentage Percentage Percentage

Amount Amount of Provision Value Amount Amount of Provision Value

(%)(%)

(%)(%)

Provision

made on a 16996771.97 100.00 908555.83 5.35 16088216.14 18247890.00 100.00 996559.20 5.46 17251330.80

portfolio

basis

Including:

Commercial

acceptance 16996771.97 100.00 908555.83 5.35 16088216.14 18247890.00 100.00 996559.20 5.46 17251330.80

bill

Total 16996771.97 / 908555.83 / 16088216.14 18247890.00 / 996559.20 / 17251330.80

Amount

Provision for bad debts made on an individual basis:

172 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"√ Applicable" "□ Not applicable"

Items accrued in portfolio: Commercial acceptance bill

Unit: Yuan Currency: CNY

Closing balance

Item

Book balance Provision for bad debts Percentage of Provision (%)

Commercial acceptance

16996771.97908555.835.35

bill as a combination

Total Amount 16996771.97 908555.83 5.35

Notes to the provision for bad debts by portfolio

"□ Applicable" "√ Not applicable"

Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in carrying amount of notes receivable with provision for bad debts

during the period

"□ Applicable" "√ Not applicable"

(5). Provision for bad debts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Amount of change during the period

Category Opening Closing

balance Make Recovery or Write-off or Other balance

provision reversal Cancellation changes

Commercial

acceptance bill as 996559.20 -88003.37 908555.83

a combination

Total Amount 996559.20 -88003.37 908555.83

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(6). Actual notes receivable written off during the period

"□ Applicable" "√ Not applicable"

Of which significant write-offs of notes receivable

"□ Applicable" "√ Not applicable"

Description of notes receivable write-off:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

173 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

5. Accounts receivable

(1). Disclosure by ageing

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Ageing Closing book balance Opening book balance

Within 1 year (including 1 year) 2752587865.98 2452222943.20

Subtotal within one year 2752587865.98 2452222943.20

1-2 years 254491538.11 201974270.53

2-3 years 70638034.68 90742545.98

More than 3 years

3-4 years 35697125.02 22456609.73

4-5 years 26263894.70 18939828.22

More than 5 years 16152074.42 12408819.36

Total Amount 3155830532.91 2798745017.02

(2). Disclosure of notes receivable by bad debt accrual method

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Percentage Book value Percentage Book value

Percentage of Percentage of

Amount (%) Amount

Value

Provision Amount Amount

Value

(%) Provision

(%)(%)

Provision

for bad

debts

made on 7969168.28 0.25 7969168.28 100.00 7945132.95 0.28 7945132.95 100.00

an

individual

basis

Provision

made on a

3147861364.6399.75227941294.377.242919920070.262790799884.0799.72200965387.297.202589834496.78

portfolio

basis

Total 3155830532.91 / 235910462.65 / 2919920070.26 2798745017.02 / 208910520.24 / 2589834496.78

Amount

Provision for bad debts made on an individual basis:

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance

Item

Book balance Provision for bad Percentage of Rationale for the

debts Provision (%) provision

Provision for bad debts 7969168.28 7969168.28 100.00

made on an individual basis

Total Amount 7969168.28 7969168.28 100.00 /

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"√ Applicable" "□ Not applicable"

Items accrued in portfolio: Ageing combination

Unit: Yuan Currency: CNY

Item Closing balance

174 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Book balance Provision for bad debts Percentage of Provision (%)

Within 1 year 2752587865.98 137629393.31 5.00

1-2 years 252355638.11 25235563.83 10.00

2-3 years 67679044.68 20303713.40 30.00

3-5 years 60932384.12 30466192.09 50.00

More than 5 years 14306431.74 14306431.74 100.00

Total Amount 3147861364.63 227941294.37 7.24

Description of the provision for bad debts by portfolio：

"□ Applicable" "√ Not applicable"

Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in carrying amount of accounts receivable with provision for bad

debts during the period

"□ Applicable" "√ Not applicable"

(3). Provision for bad debts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Amount of change during the period

Category Opening balance Recovery or Write-off or Closing balanceMake provision Other changes

reversal Cancellation

Provision for

Individual 7945132.95 84035.33 60000.00 7969168.28

bad debt

Provision

made on a 200965387.29 30624462.96 -284430.65 2727278.07 1205708.46 227941294.37

portfolio

basis

Total 208910520.24 30708498.29 -284430.65 2787278.07 1205708.46 235910462.65

Amount

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(4). Accounts receivable actually written off during the current period

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Amount written off

Accounts receivable actually written off 2787278.07

Of which significant accounts receivable write-offs:

"□ Applicable" "√ Not applicable"

Description of notes receivable write-off:

"□ Applicable" "√ Not applicable"

175 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(5). Accounts receivable with top five closing balances grouped by party in default

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Total Ending Percentage of total

Balance of accountsClosing balance of Ending Balance of Closing balance of

Unit name Accounts receivable and provision for bad

accounts receivable Contract Assets Receivable and contract assets at debts

Contract Assets the end of the

period (%)

Customer 71882234.40 16307800.00 88190034.40 2.62 4409501.72

One

Customer

80392079.8080392079.802.384019603.99

Two

Customer 74299451.13 74299451.13 2.20 3714972.56

Three

Customer 65226992.69 65226992.69 1.93 3261349.63

Four

Customer 51078797.71 51078797.71 1.52 2553939.89

Five

Total 342879555.73 16307800.00 359187355.73 10.65 17959367.79

Amount

Other notes:

None

Other notes:

"□ Applicable" "√ Not applicable"

6. Contract assets

(1). Contract Assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Item

Book balance Provision for Book value Book balance Provision for Book value

bad debts bad debts

Warranty

deposits 215560611.77 25222321.73 190338290.04 171528001.84 21278991.60 150249010.24

receivable

Total 215560611.77 25222321.73 190338290.04 171528001.84 21278991.60 150249010.24

Amount

(2). Amount of and reasons for significant changes in the book value during the Reporting Period:

"□ Applicable" "√ Not applicable"

(3). Disclosure of notes receivable by bad debt accrual method

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Percentage Book value Percentage Book value

Percentage of

Amount Amount Value

Percentage of

Amount Amount Value(%) Provision (%) Provision

(%)(%)

Provision 215560611.77 100.00 25222321.73 11.70 190338290.04 171528001.84 100.00 21278991.60 12.41 150249010.24

176 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

made on a

portfolio

basis

Total 215560611.77 / 25222321.73 / 190338290.04 171528001.84 / 21278991.60 / 150249010.24

Amount

Provision for bad debts made on an individual basis:

"□ Applicable" "√ Not applicable"

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"√ Applicable" "□ Not applicable"

Items accrued in portfolio: Ageing combination

Unit: Yuan Currency: CNY

Closing balance

Item

Book balance Provision for bad debts Percentage of Provision (%)

Ageing combination 215560611.77 25222321.73 11.70

Total Amount 215560611.77 25222321.73 11.70

Notes to the provision for bad debts by portfolio

"□ Applicable" "√ Not applicable"

Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in carrying amount of contract assets with provision for bad debts

during the period

"□ Applicable" "√ Not applicable"

(4). Provision for bad debts on contract assets during the period

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Amount of change during the period

Item Opening Provision

Recovery Closing

balance during the or reversal

Write-offs/Reversals Other Reasonbalance

during the during the period changesperiod

period

Provision for

impairment 21278991.60 3943330.13 25222321.73

by

combination

Total Amount 21278991.60 3943330.13 25222321.73 /

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

177 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(5). Contract assets actually written off during the period

"□ Applicable" "√ Not applicable"

Including: Significant contract assets written off

"□ Applicable" "√ Not applicable"

Contract asset write-off:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

7. Receivables financing

(1). Receivables financing by category

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Bank acceptance bill 472523678.61 294961893.92

Total Amount 472523678.61 294961893.92

(2). Receivables financing pledged by the Company at the end of the period

"□ Applicable" "√ Not applicable"

(3). Receivables financing endorsed or discounted by the Company at the end of the period and

not yet due at the balance sheet date

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Amounts derecognised at the end of the Amounts not derecognised at the end of

period the period

Bank acceptance bill 2292376609.36

Total Amount 2292376609.36

(4). Disclosure of notes receivable by bad debt accrual method

"□ Applicable" "√ Not applicable"

Provision for bad debts made on an individual basis:

"□ Applicable" "√ Not applicable"

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"□ Applicable" "√ Not applicable"

Provision for bad debts using the general model for expected credit losses."□ Applicable" "√ Not applicable"

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in the carrying amount of receivables financing due to loss provision

changes in the current period:

178 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"□ Applicable" "√ Not applicable"

(5). Provision for bad debts

"□ Applicable" "√ Not applicable"

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(6). Actual write-offs of receivables financing during the current period

"□ Applicable" "√ Not applicable"

Including: Significant receivables financing write-offs

"□ Applicable" "√ Not applicable"

Description of write-off:

"□ Applicable" "√ Not applicable"

(7). Increase and decrease in receivables financing during the period and changes in fair value

"□ Applicable" "√ Not applicable"

(8). Other notes

"√ Applicable" "□ Not applicable"

The acceptors of bankers' acceptance bills are commercial banks with a high credit standing. The

Company derecognises such bankers' acceptance bills that have been endorsed or discounted as the

commercial banks have a high level of creditworthiness and the likelihood of non-payment of bankers'

acceptance bill at maturity is low. However if such bills are not paid at maturity the Company will still

be jointly and severally liable to the bearer in accordance with the provisions of the Bills of Exchange

Act.

8. Advances paid

(1). Prepayments by ageing

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Ageing

Amount Percentage (%) Amount Percentage (%)

Within 1 year 413560377.91 96.25 358224154.24 98.67

1-2 years 12806322.80 2.98 3342386.23 0.92

2-3 years 2243268.16 0.52 891991.98 0.25

More than 3 1068973.01 0.25 577731.67 0.16

years

Total Amount 429678941.88 100.00 363036264.12 100.00

A description of the reasons why prepayments aged more than one year and with significant amounts

have not been settled in a timely manner:

None

179 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2). Prepayments with the top five ending balances aggregated by prepayment recipients

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Unit name Closing balance Percentage of total closing balance of

prepayments (%)

Supplier I 36116064.97 8.41

Supplier II 26875981.49 6.25

Supplier III 22936166.22 5.34

Supplier IV 21660300.72 5.04

Supplier V 20428236.12 4.75

Total Amount 128016749.52 29.79

Other notes:

None

Other notes:

"□ Applicable" "√ Not applicable"

9. Other receivables

Items

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Interest receivable

Dividend receivable

Other receivables 243522905.71 278088446.68

Total Amount 243522905.71 278088446.68

Other notes:

"□ Applicable" "√ Not applicable"

Interest receivable

(1). Interest receivable

"□ Applicable" "√ Not applicable"

(2). Significant overdue interest

"□ Applicable" "√ Not applicable"

(3). Disclosure of notes receivable by bad debt accrual method

"□ Applicable" "√ Not applicable"

Provision for bad debts made on an individual basis:

"□ Applicable" "√ Not applicable"

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"□ Applicable" "√ Not applicable"

(4). Provision for bad debts using the general model for expected credit losses.

"□ Applicable" "√ Not applicable"

180 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in carrying amount of interest receivable with provision for bad debts

during the period

"□ Applicable" "√ Not applicable"

(5). Provision for bad debts

"□ Applicable" "√ Not applicable"

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(6). Actual write-offs of interest receivable during the current period

"□ Applicable" "√ Not applicable"

Including: Significant write-offs of interest receivable

"□ Applicable" "√ Not applicable"

Description of write-off:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

Dividend receivable

(7). Dividend receivable

"□ Applicable" "√ Not applicable"

(8). Significant dividend receivables aged over 1 year

"□ Applicable" "√ Not applicable"

(9). Disclosure of notes receivable by bad debt accrual method

"□ Applicable" "√ Not applicable"

Provision for bad debts made on an individual basis:

"□ Applicable" "√ Not applicable"

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

"□ Applicable" "√ Not applicable"

(10).Provision for bad debts using the general model for expected credit losses.

"□ Applicable" "√ Not applicable"

Basis for classification of phases and proportion of provision for bad debts

N/A

Description of significant changes in carrying amount of dividends receivable with provision for bad

181 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

debts during the period

"□ Applicable" "√ Not applicable"

(11). Provision for bad debts

"□ Applicable" "√ Not applicable"

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(12).Actual write-offs of dividends receivable during the current period

"□ Applicable" "√ Not applicable"

Including: Significant write-offs of dividends receivable

"□ Applicable" "√ Not applicable"

Description of write-off:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

Other receivables

(13).Disclosure by ageing

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Ageing Closing book balance Opening book balance

Within 1 year (including 1 year) 227735098.03 256288642.67

Subtotal within one year 227735098.03 256288642.67

1-2 years 10253741.60 17407195.86

2-3 years 9839940.94 13676484.46

More than 3 years

3-4 years 7859352.56 4263968.50

4-5 years 5602588.04 3104267.88

More than 5 years 4158040.10 5212424.94

Total Amount 265448761.27 299952984.31

(14).By nature of amount

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Nature of payment Closing book balance Opening book balance

Export tax refund 178039545.56 217123393.52

Deposits 53536533.70 54430339.72

Temporary borrowings by employees 16804741.74 15299254.76

Temporary advance payment receivable 10954537.13 8570459.64

Other 6113403.14 4529536.67

Total Amount 265448761.27 299952984.31

182 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(15).Provision for bad debts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Phase I Phase II Phase III

Expected credit Expected credit Expected credit lossesProvision for bad debts Total Amount

losses for the next losses for the entire for the entire duration

12 months duration (no credit (credit impairment

impairment) occurred)

Balance as of January 1 1958262.45 1166712.14 18739563.04 21864537.63

2025

Balance as of January 1

2025 during the period

-- Transferred to Phase II -512687.08 512687.08

-- Transferred to Phase III -845710.72 845710.72

-- Reversed to Phase II

-- Reversed to Phase I

Provision during the period 853061.56 193122.56 179342.93 1225527.05

Reversal during the period -66768.48 -66768.48

Transfer to COGS during

the period

Write-offs during the period 1223603.68 1223603.68

Other changes 3687.04 1436.88 2250.00 7373.92

Balance as of December 31

2294949.891025374.1818605531.4921925855.56

2025

Basis for Classification of Stages and Provision Rate for Bad Debts

None

Description of significant changes in carrying amount of other receivables with provision for bad debts

during the period

"□ Applicable" "√ Not applicable"

Basis for using the amount of the provision for bad debts for the current period and basis for evaluating

any significant increase in the credit risk of the financial instruments

"□ Applicable" "√ Not applicable"

(16).Provision for bad debts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Amount of change during the period

Category Opening balance

Make provision Recovery or Write-off or Other

Closing balance

reversal Cancellation changes

Provision for

bad debts

made on an 7665891.59 -425337.16 1171403.68 6069150.75

individual

basis

Provision

made on a 14198646.04 1650864.21 -66768.48 52200.00 7373.92 15856704.81

portfolio basis

Total Amount 21864537.63 1225527.05 -66768.48 1223603.68 7373.92 21925855.56

183 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Of which the amount of provisions for bad debt reversed or recovered during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(17).Other receivables actually written off during the period

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Amount written off

Other receivables actually written off 1223603.68

Of which significant write-offs of other receivables:

"□ Applicable" "√ Not applicable"

Note on write-off of other receivables:

"□ Applicable" "√ Not applicable"

(18).Other receivables of the top 5 in ending balance of the debtor

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Percentage of Provision for

Unit name Closing balance total closing Nature ofbalance of other payments Ageing bad debts

receivables (%) Closing balance

State Taxation Export tax Within 1

Administration 178039545.56 67.07 refund year

Zhejiang

Hangzhou

Qingshan Lake

Science and 4250000.00 1.60 Deposits 3-5 years 2125000.00

Technology

City Investment

Group Co. Ltd.Tokokosen Within 1

Corporation 1425070.08 0.54 Deposits year 71253.50

Changchun

FAW

International 1372000.00 0.52 Deposits Within 1 68600.00

Tendering Co. year

Ltd.CITIC

International Within 1

Tendering Co. 1146200.00 0.43 Deposits year 3-5 159100.00

Ltd. years

Total Amount 186232815.64 70.16 / / 2423953.50

(19).Listed as other receivables due to centralized management of funds

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

184 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

10. Inventories

(1). Inventories by category

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Closing balance Opening balance

Provision for Provision for

decline in decline in

value of value of

Item

Book balance inventories orimpairment of Book value Book balance

inventories or

impairment of Book value

contractual contractual

performance performance

costs costs

Raw materials 1018092279.76 24590076.58 993502203.18 845635552.82 22585083.91 823050468.91

Work in

progress 334113802.95 3979108.54 330134694.41 279286565.88 4023268.57 275263297.31

Inventory 1513416349.33 10939743.29 1502476606.04 1136805647.31 16592185.08 1120213462.23

Commissioned

processing 7005129.83 7005129.83 15011086.54 15011086.54

materials

Contract

performance 323072249.71 7173954.47 315898295.24 290029512.37 12833525.71 277195986.66

costs

Total Amount 3195699811.58 46682882.88 3149016928.70 2566768364.92 56034063.27 2510734301.65

(2). Data resources recognized as inventories

"□ Applicable" "√ Not applicable"

(3). Provision for decline in value of inventories and impairment of contract performance costs

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Amount of increase during Amount of decrease during

the period the period

Item Opening balance Closing balance

Make provision Other Reversal or Other

Transfer to COGS

Raw materials 22585083.91 11678726.66 9673733.99 24590076.58

Work in progress 4023268.57 3965503.23 4009663.26 3979108.54

Inventory 16592185.08 6790428.98 12442870.77 10939743.29

Contract 12833525.71 3559464.68 9219035.92 7173954.47

performance costs

Total Amount 56034063.27 25994123.55 35345303.94 46682882.88

Reasons for reversal or write-off of provision for decline in value of inventories in the current period

"√ Applicable" "□ Not applicable"

Item Specific basis for

Reasons for Reasons for

determining net realizable value provision for transfer to provision for transfer toCOGS COGS

Raw materials Consumption of inventories

Net realizable value is determined as for which provision for

the estimated selling price of the Increase in net realizable decline in value of

Work in progress relevant finished goods less costs value of provisions madein previous periods for a inventories has been madeestimated to be incurred to during the period

Finished goods completion estimated selling expenses

decline in value of

and related taxes inventories Sales of inventories for

Contract performance which provisions had

185 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

costs previously been made for a

decline in value during the

current period

Allowance for Inventory Write-Down by Category

"□ Applicable" "√ Not applicable"

Recognition Standards for Allowance for Inventory Write-Down by Category

"□ Applicable" "√ Not applicable"

(4). Amount of borrowing costs capitalized included in the closing balance of inventories and the

criteria and basis for calculation

"□ Applicable" "√ Not applicable"

(5). Explanation of the amount of amortisation of contract performance costs for the period

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

11. Assets held for sale

"□ Applicable" "√ Not applicable"

12. Non-current assets due within one year

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Long-term receivables matured within one

171096826.36183727543.92

year

Total Amount 171096826.36 183727543.92

Debt investments matured within one year

"□ Applicable" "√ Not applicable"

Other debt investments matured within one year

"□ Applicable" "√ Not applicable"

Other description of non-current assets matured within one year:

None

13. Other current assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Value-added tax to be deducted 134308580.61 135772623.11

Prepaid enterprise income tax 30459049.87 15792645.79

Total Amount 164767630.48 151565268.90

Other notes:

None

186 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

14. Debt investments

(1). Debt investments

"□ Applicable" "√ Not applicable"

Changes in provision for impairment of debt investments during the current period

"□ Applicable" "√ Not applicable"

(2). Significant debt investments at the end of the period

"□ Applicable" "√ Not applicable"

(3). Provision for impairment

"□ Applicable" "√ Not applicable"

Basis for classification of phases and proportion of impairment provisions

N/A

Description of significant changes in carrying amount of equity investment with provision for bad debts

during the period:

"□ Applicable" "√ Not applicable"

Basis for using the amount of the impairment provision for Less debts for the current period and basis

for evaluating any significant increase in the credit risk of the financial instruments

"□ Applicable" "√ Not applicable"

(4). Actual write-off of debt investments during the current period

"□ Applicable" "√ Not applicable"

Including: Significant write-offs of debt investments

"□ Applicable" "√ Not applicable"

Description of write-offs of debt investments:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

15. Other debt investments

(1). Other debt investment

"□ Applicable" "√ Not applicable"

Others changes in provision for impairment of debt investments during the current period

"□ Applicable" "√ Not applicable"

(2). Other significant debt investments at the end of the period

"□ Applicable" "√ Not applicable"

(3). Provision for impairment

"□ Applicable" "√ Not applicable"

Basis for classification of phases and proportion of impairment provisions

N/A

Description of significant changes in carrying amount of other equity investment with provision for bad

187 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

debts during the period:

"□ Applicable" "√ Not applicable"

Basis for using the amount of the impairment provision for Less debts for the current period and basis

for evaluating any significant increase in the credit risk of the financial instruments

"□ Applicable" "√ Not applicable"

(4). Other debt investments actually written off during the current period

"□ Applicable" "√ Not applicable"

Including: Other significant write-offs of debt investments

"□ Applicable" "√ Not applicable"

Description of write-offs of other debt investments:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

16. Long-term receivables

(1). Long-term receivables

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Discount rate

Item Provision for Provision for

Book balance Book value Book balance Book value range

bad debts bad debts

Financial

lease 114988892.30 5166899.02 109821993.28 85976464.39 3082999.22 82893465.17 3.07%-24.56%

payments

Of which:

unrealised

-3821346.99-3821346.99-4643114.21-4643114.21

financing

gains

Total

114988892.305166899.02109821993.2885976464.393082999.2282893465.17/

Amount

(2). Disclosure of notes receivable by bad debt accrual method

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Book balance Provision for bad debts Book balance Provision for bad debts

Category Percentage Book value Percentage Book value

Amount Percentage Amount of Value Amount Percentage Amount of Value

(%) Provision (%) Provision

(%)(%)

Provision

made on a

114988892.30100.005166899.024.49109821993.2885976464.39100.003082999.223.5982893465.17

portfolio

basis

Total 114988892.30 / 5166899.02 / 109821993.28 85976464.39 / 3082999.22 / 82893465.17

Amount

Provision for bad debts made on an individual basis:

"□ Applicable" "√ Not applicable"

Description of provision for bad debts by individual item

"□ Applicable" "√ Not applicable"

Provision for bad debts by combination:

188 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"√ Applicable" "□ Not applicable"

Items accrued in portfolio: Portfolio

Unit: Yuan Currency: CNY

Closing balance

Item

Book balance Provision for bad debts Percentage of Provision (%)

Provision made on a

114988892.305166899.024.49

portfolio basis

Total Amount 114988892.30 5166899.02 4.49

Notes to the provision for bad debts by portfolio

"□ Applicable" "√ Not applicable"

(3). Provision for bad debts using the general model for expected credit losses.

"□ Applicable" "√ Not applicable"

Basis for Classification of Stages and Provision Rate for Bad Debts

N/A

Description of significant changes in carrying amount of long-term receivable with provision for bad

debts during the period

"□ Applicable" "√ Not applicable"

Basis for using the amount of the provision for bad debts for the current period and basis for evaluating

any significant increase in the credit risk of the financial instruments:

"□ Applicable" "√ Not applicable"

(4). Provision for bad debts

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Amount of change during the period

Category Opening balance Recovery Write-off or Other Closing balanceMake provision

or reversal Cancellation changes

Provision made

on a portfolio 3082999.22 2083899.80 5166899.02

basis

Total Amount 3082999.22 2083899.80 5166899.02

Of which the amount of provisions for bad debt recovered or reversed during the period is significant:

"□ Applicable" "√ Not applicable"

Other notes:

None

(5). Long-term receivables actually written off during the current period

"□ Applicable" "√ Not applicable"

Including: Significant long-term receivables written off

"□ Applicable" "√ Not applicable"

Description of long-term receivables written off:

"□ Applicable" "√ Not applicable"

Other notes:

189 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"□ Applicable" "√ Not applicable"

190 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

17. Long-term equity investments

(1). Long-term equity investments

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Increase and decrease during the period

Gains and Closing

Opening losses on Adjustment to Declaration of Closing balance of

Invested units Balance (Book Additional Decrease in investments other Other changes issuing cash

Provision Balance (Book provision

value) for accrual Otherinvestments investments recognised comprehensive in equity dividends or value) forimpairment

under the income profits impairment

equity method

I. Joint ventures

Subtotal

II. Associated enterprises

HANGCHA SOUTHEAST

1803887.311148592.7993323.833045803.93

ASIA CO. LTD

Zhejiang Huachang Hydraulic 87281260.57 13563247.31 567491.93 7344000.00 94067999.81

Machinery Co. Ltd.Hangzhou Gangcun 31151179.27 2686948.12 33838127.39

Transmission Co. Ltd.Hangzhou Pengcheng New 33955470.77 81543.76 34037014.53

Energy Technology Co. Ltd.Hangzhou Zhongce Haichao

Enterprise Management Co. 2047807325.14 431318130.83 35606065.98 177188579.44 2691920101.39

Ltd.Henan Jiachen Intelligent 123457317.16 15832689.56 56527.52 139346534.24

Control Co. Ltd.Changsha Zhongchuan 10819695.70 78457.38 74901.72 10973054.80

Transmission Co. Ltd.Nanjing Hangcha Logistics 2683211.40 652776.01 560000.00 2775987.41

Equipment Co. Ltd.Nanchang Hangcha Forklift 4061714.33 604695.44 630000.00 4036409.77

191 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Co. Ltd.Changsha Hangcha Forklift 3087017.47 582009.50 562000.00 3107026.97

Sales Co. Ltd.Shijiazhuang Hangcha 4566676.15 652851.18 630000.00 4589527.33

Forklift Sales Co. Ltd.Taiyuan Hangcha Lift Truck 2717581.57 370251.18 420000.00 2667832.75

Co. Ltd.Chongqing Hangcha Forklift 3816344.01 42840.00 811536.95 728000.00 3942720.96

Truck Sales Co. Ltd.Yunnan Hangcha Lift Truck 3187646.54 887097.68 472500.00 3602244.22

Co. Ltd.Shenyang Hangcha Lift Truck 3192681.46 854060.84 630000.00 3416742.30

Sales Co. Ltd.Beijing Guozi Robot

804745.9048758.05853503.95

Technology Co. Ltd.Subtotal 2364393754.75 42840.00 470173646.58 35699389.81 177887500.61 11976500.00 3036220631.75

Total Amount 2364393754.75 42840.00 470173646.58 35699389.81 177887500.61 11976500.00 3036220631.75

192 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2). Impairment testing of long-term equity investments

"□ Applicable" "√ Not applicable"

Other notes:

None

193 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

18. Other equity instrument investments

(1). Investment in other equity instruments

"□ Applicable" "√ Not applicable"

(2). Description of the existence of derecognition during the current period

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

19. Other non-current financial assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Financial assets measured at fair value and

the changes thereof are included in current 28104279.77 26325621.62

profits and losses

Including: Investment in other equity

28104279.7726325621.62

instruments

Total Amount 28104279.77 26325621.62

Other notes:

"√ Applicable" "□ Not applicable"

As of December 31 2025 the Company held a 16.67% equity stake in Zhejiang Hangli

Dingsheng Machinery Co. Ltd. The Company is unable to exercise control significant influence

or joint control over Hangli Dingsheng. Therefore this equity investment shall not be considered a

long-term equity investment. According to the latest version of Accounting Standards for Business

Enterprises No. 22—Recognition and Measurement of Financial Instruments this equity

instrument investment fails the Solely Payments of Principal and Interest test (SPPI test).Therefore it is classified as a financial asset measured at fair value through current profits and

losses. However since Zhejiang Hangli Dingsheng Machinery Co. Ltd. has not been traded on

the open market the cost is the best estimate of fair value according to Standard No.

39—Measurement of Fair Value. Therefore it is listed under other non-current financial assets.

As of December 31 2025 the Company held a 10.00% equity stake in Hangzhou Okamura

Furniture Co. Ltd. According to the Articles of Association and relevant resolutions the

Company does not have the authority to participate in the decision-making regarding Okamura's

financial and operational policies. Therefore it is a long-term equity investment not intended for

trading which does not constitute a material impact. As a result it is reported under other

non-current financial assets.The increase in the current period arises from the payment of the remaining 70.00% of the

purchase price for equity in NFL Forklifts Group by HC Forklift Australia Pty Ltd. amounting to

USD 235516.18 (equivalent to RMB 1778658.15). As of December 31 2025 100.00% of the

purchase price for equity in NFL Forklifts Group has been paid amounting to USD 338993.86

(equivalent to RMB 2512879.77). The Company holds a 15.00% equity stake in the NFL

194 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Forklifts Group. It is unable to exercise control significant influence or joint control over NFL

Forklifts Group. Therefore it is a long-term equity investment not intended for trading and it is

reported under other non-current financial assets.

20. Investment property

Measurement model of investment properties

(1). Investment properties by using cost measurement model

Unit: Yuan Currency: CNY

Item Houses buildings Land use rights Total Amount

I. Original book value

1. Opening balance 116336568.36 3718843.99 120055412.35

2. Increase amounts during the period 16512680.08 16512680.08

(1) Outsourcing

(2) Transfer from inventories\fixed

16512680.0816512680.08

assets\construction in progress

(3) Increase in business combination

3. Decrease amounts during the period 12082389.89 12082389.89

(1) Disposals

(2) Other transfers out

(3) Reversal of fixed assets 12082389.89 12082389.89

4. Closing balance 120766858.55 3718843.99 124485702.54

II. Accumulated depreciation and accumulated amortization

1. Opening balance 51719637.58 1300400.81 53020038.39

2. Increase amounts during the period 16824996.02 166117.21 16991113.23

(1) Accrual or amortization 6446098.19 166117.21 6612215.40

(2) Transfer from fixed assets 10378897.83 10378897.83

3. Decrease amounts during the period 7456246.05 7456246.05

(1) Disposals

(2) Other transfers out

(3) Reversal of fixed assets 7456246.05 7456246.05

4. Closing balance 61088387.55 1466518.02 62554905.57

III. Provision for impairment

1. Opening balance

2. Increase amounts during the period

1) Accrual

3. Decrease amounts during the period

(1) Disposals

(2) Other transfers out

4. Closing balance

IV. Book value

1. Closing book value 59678471.00 2252325.97 61930796.97

2. Book value at the beginning of the 64616930.78 2418443.18 67035373.96

period

(2). Investment properties with outstanding title certificates

"□ Applicable" "√ Not applicable"

(3). Impairment testing of investment properties by the cost measurement model

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

195 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

21. Fixed assets

Items

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Fixed assets 3244122167.29 2202710412.14

Liquidation of fixed assets

Total Amount 3244122167.29 2202710412.14

Other notes:

"□ Applicable" "√ Not applicable"

Fixed assets

(1). Fixed assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Buildings Machinery and Transportation Other Total Amount

equipment facilities equipment

I. Original book value:

1. Opening balance 1357771231.06 993855868.02 1345021027.55 150053596.36 3846701722.99

2. Increase amounts 705954919.21 126300127.44 794807808.69 18419041.13 1645481896.47

during the period

(1) Acquisitions 3253096.73 20265745.60 44870485.72 11026140.59 79415468.64

(2) Transfer from

construction in 690619432.59 105626161.05 6477333.23 7392900.54 810115827.41

progress

(3) Increase in

business

combination

(4) Transferred

from finished 408220.79 743459989.74 743868210.53

goods

(5) Transfer from

investment 12082389.89 12082389.89

properties

3. Decrease

amounts during the 16512680.08 8353446.12 257394925.80 3550215.46 285811267.46

period

(1) Disposal or 8353446.12 17839248.15 3539772.98 29732467.25

retirement

(2) Transfer from

investment 16512680.08 16512680.08

properties

3) Transfer to 238394207.52 238394207.52

inventories

(4) Others [Note] 1161470.13 10442.48 1171912.61

4. Closing balance 2047213470.19 1111802549.34 1882433910.44 164922422.03 5206372352.00

II. Accumulated depreciation

1. Opening balance 532435992.39 472044513.26 542782516.00 93757254.10 1641020275.75

2. Increase amounts 78800606.88 81058889.90 229902373.48 16603495.06 406365365.32

during the period

1) Accrual 71344360.83 81058889.90 229902373.48 16603495.06 398909119.27

196 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(2) Transfer from

investment 7456246.05 7456246.05

properties

3. Decrease

amounts during the 10378897.83 6671797.58 68683473.87 2306388.27 88040557.55

period

(1) Disposal or 6671797.58 11455574.88 2298286.63 20425659.09

retirement

(2) Transfer from

investment 10378897.83 10378897.83

properties

3) Transfer to 56589912.73 56589912.73

inventories

(4) Others [Note] 637986.26 8101.64 646087.90

4. Closing balance 600857701.44 546431605.58 704001415.61 108054360.89 1959345083.52

III. Provision for impairment

1. Opening balance 89206.35 2280781.03 134331.01 466716.71 2971035.10

2. Increase amounts

during the period

1) Accrual

3. Decrease

amounts during the 65933.30 0.61 65933.91

period

(1) Disposal or 65933.30 0.61 65933.91

retirement

4. Closing balance 89206.35 2214847.73 134330.40 466716.71 2905101.19

IV. Book value

1. Closing book 1446266562.40 563156096.03 1178298164.43 56401344.43 3244122167.29

value

2. Book value at

the beginning of 825246032.32 519530573.73 802104180.54 55829625.55 2202710412.14

the period

[Note] Other decreases are due to the disposal of corresponding fixed assets transferred out by the

sub-subsidiaries during the current period including the original value and the accumulated

depreciation

(2). Temporarily idle fixed assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Original book value Accumulated Provision for Book value Remarks

depreciation impairment

Buildings 180355.00 82130.90 89206.35 9017.75

Machinery and 8982114.64 6318161.60 2214847.73 449105.31

equipment

Transportation 383918.60 230392.26 134330.40 19195.94

facilities

Other equipment 1335136.96 801668.89 466716.71 66751.36

Subtotal 10881525.20 7432353.65 2905101.19 544070.36

(3). Fixed assets leased through operating leases

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Book value at the end of the period

197 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Machinery and equipment 99657257.05

Transportation facilities 1060550608.82

Other equipment 1701670.20

Subtotal 1161909536.07

(4). Fixed assets for which title certificates have not been issued

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Book value Reasons for failure to obtain title

certificates

Plant of Hangcha Guozi Intelligent Automated

Equipment Project with an Annual Production of 155971745.20 Under Processing

10000 Sets

Subtotal 155971745.20

(5). Impairment testing of fixed assets

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

Liquidation of fixed assets

"□ Applicable" "√ Not applicable"

22. Construction in progress

Items

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Construction in progress 115954043.69 584836969.86

Engineering materials

Total Amount 115954043.69 584836969.86

Other notes:

"□ Applicable" "√ Not applicable"

Construction in progress

(1). Construction in progress

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Closing balance Opening balance

Item Provision Provision

Book balance for Book value Book balance for Book value

impairment impairment

Project for the

Annual

Production of

39517282.0539517282.05

6000 Aerial Work

Platforms and

5000 Forklifts

Intellectualization 26394809.64 26394809.64 21774574.45 21774574.45

Reform Project of

198 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Hangzhou Cha on

Core Process

Capability with an

Annual Output of

3000

High-tonnage

Forklifts for

High-end Markets

Hangcha Guozi

Intelligent

Automated

Equipment Project 19860851.75 19860851.75 96369579.73 96369579.73

with an Annual

Production of

10000 Sets

Hangcha Group

Shiqiao Factory

Upgrading 14226011.05 14226011.05 450626697.66 450626697.66

Construction

Project

Prepayment of

Equipment 12676872.00 12676872.00 12328740.56 12328740.56

Project Payment

and Other Projects

Information 3278217.20 3278217.20 3737377.46 3737377.46

project

Total Amount 115954043.69 115954043.69 584836969.86 584836969.86

(2). Changes in important construction projects in progress during the current period

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

The

Other Of

Amo Amou

proport

decre which:

nts ion of Amount Interest

Openi unt of transfe ase Closi cumula Proje Accumu of capitaliz

Budg ng increa rred to in ng tive ct lated interest ation Source

Item Name eted Acco se fixed amou Acco invest progr interest c rate for of

numb unt durin nts unt ment capitaliz

er Balan g the assets durin Bala ess ation apitaliz the funds

ce perio during

in the

g the nce (%)project amounts

ation period

the during (%)

d period perio of the the

d budget period

(%)

Hangcha

Group

Shiqiao 68000 4506 8743. 52384. 1422. Self-o

Factory .00 2.67 94 01 60 98.45 98.45 wned

Upgrading funds

Constructio

n Project

Hangcha

Guozi

Intelligent 40000 9636. 1528 21481. 1452. 1986.Self-o

85.21 85.21 wned

Automated .00 96 2.71 05 53 09 funds

Equipment

Project

199 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

with an

Annual

Production

of 10000

Sets

Intellectuali

zation

Reform

Project of

Hangzhou

Cha on

Core

Process Self-o

Capability 16000 2177. 4102. 3640.4 2639. 48.64 48.64 wned

with an .00 46 47 5 48

funds

Annual

Output of

3000

High-tonna

ge Forklifts

for

High-end

Markets

Project for

the Annual

Production

of 6000 Self-o14000 7045. 3094. 3951.Aerial 56.87 56.87 wned.00 95 22 73

Work funds

Platforms

and 5000

Forklifts

Total 5687 3517 77505. 4546. 9999. / / / /

Amount 7.09 5.07 52 75 90

[Note 1] The increase in the budget for the Hangcha Group Shiqiao Factory Upgrading

Construction Project and the Hangcha Guozi Intelligent Automated Equipment Project with an

Annual Production of 10000 Sets is due to an expansion in the scale of construction and an

improvement in construction standards as required by the Company during the project

implementation process.[Note 2] Other decreases in the Hangcha Guozi Intelligent Automated Equipment Project with an

Annual Production of 10000 Sets and the Project for the Annual Production of 6000 Aerial Work

Platforms and 5000 Forklifts have been transferred to intangible assets.

(3). Provision for impairment of construction in progress during the current period

"□ Applicable" "√ Not applicable"

(4). Impairment testing of construction in progress

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

200 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Engineering materials

(5). Construction materials

"□ Applicable" "√ Not applicable"

23. Productive biological assets

(1). Productive biological assets measured using the cost measurement model

"□ Applicable" "√ Not applicable"

(2). Impairment testing of productive biological assets measured at cost

"□ Applicable" "√ Not applicable"

(3). Productive biological assets using the fair value measurement model

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

24. Oil & gas assets

(1).Oil and gas assets

"□ Applicable" "√ Not applicable"

(2).Impairment testing of oil and gas assets

"□ Applicable" "√ Not applicable"

Other notes:

None

25. Right-of-use assets

(1). Right-of-use assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Buildings Total Amount

I. Original book value

1. Opening balance 239054588.55 239054588.55

2. Increase amounts during the period 131672990.89 131672990.89

Leased 131672990.89 131672990.89

3. Decrease amounts during the period 28137263.85 28137263.85

1) Disposal on lease termination 8264359.48 8264359.48

2) Disposal upon lease expiration 18018742.60 18018742.60

3) Others [Note] 1854161.77 1854161.77

4. Closing balance 342590315.59 342590315.59

II. Accumulated depreciation

1. Opening balance 64428053.84 64428053.84

2. Increase amounts during the period 45374055.13 45374055.13

1) Accrual 45374055.13 45374055.13

3. Decrease amounts during the period 24374967.99 24374967.99

(1) Disposal on lease termination 5050477.59 5050477.59

Disposal on lease expiration 18018742.60 18018742.60

Others [Note] 1305747.80 1305747.80

4. Closing balance 85427140.98 85427140.98

201 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

III. Provision for impairment

1. Opening balance

2. Increase amounts during the period

1) Accrual

3. Decrease amounts during the period

(1) Disposals

4. Closing balance

IV. Book value

1. Closing book value 257163174.61 257163174.61

2. Book value at the beginning of the 174626534.71 174626534.71

period

[Note] Other decreases are due to the disposal of corresponding right-of-use assets transferred out

by the sub-subsidiaries during the current period including the original value and the accumulated

depreciation

(2). Impairment testing of right-of-use assets

"□ Applicable" "√ Not applicable"

Other notes:

None

26. Intangible assets

(1). Intangible assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Land use rights Software Proprietary Emission permit Total Amount

technologies

I. Original book value

1. Opening balance 381833255.00 129717082.81 604813.49 669191.66 512824342.96

2. Increase amounts 34350525.77 14942021.63 49292547.40

during the period

(1) Acquisitions 3408340.77 416723.81 3825064.58

(2) Internal R&D

(3) Increase in

business combination

(4) Transfer from

construction in 30942185.00 14525297.82 45467482.82

progress

3. Decrease amounts

during the period

(1) Disposals

4. Closing balance 416183780.77 144659104.44 604813.49 669191.66 562116890.36

II. Accumulated amortization

1. Opening balance 73824542.96 32650974.51 580043.26 226763.44 107282324.17

2. Increase amounts 7896305.10 13055873.92 15120.34 32915.86 21000215.22

during the period

1) Accrual 7896305.10 13055873.92 15120.34 32915.86 21000215.22

3. Decrease amounts

during the period

(1) Disposals

4. Closing balance 81720848.06 45706848.43 595163.60 259679.30 128282539.39

202 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

III. Provision for impairment

1. Opening balance 566347.35 566347.35

2. Increase amounts

during the period

1) Accrual

3. Decrease amounts

during the period

(1) Disposals

4. Closing balance 566347.35 566347.35

IV. Book value

1. Closing book value 334462932.71 98385908.66 9649.89 409512.36 433268003.62

2. Book value at the

beginning of the 308008712.04 96499760.95 24770.23 442428.22 404975671.44

period

Proportion of intangible assets formed through in-house R&D at the end of the current period to

the balance of intangible assets is 0%.

(2). Data resources recognized as intangible assets

"□ Applicable" "√ Not applicable"

(3). Land use rights for which title certificates have not been issued

"□ Applicable" "√ Not applicable"

(4). Impairment testing of impairment of intangible assets

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

27. Goodwill

(1). Original carrying amount of goodwill

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Increase for the Decrease for the

period period

Name of investee or matters forming Closing

goodwill Opening balance Resulting from balance

business Disposals

combinations

Hangzhou Forklift Sheet Metal 1099023.98 1099023.98

Welding Co. Ltd.Hangzhou Forklift Mast Co. Ltd. 1662110.47 1662110.47

Hangzhou Hangcha Bridge Box Co. 6571.29 6571.29

Ltd.Hefei Hanhe Intelligent Logistics

612684.02612684.02

Technology Co. Ltd.HC FORKLIFT AUSTRALIA PTY 7272600.00 7272600.00

LTD.Total Amount 10652989.76 10652989.76

(2). Provision for impairment of goodwill

"□ Applicable" "√ Not applicable"

203 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(3). Information about the asset group or combination of asset groups in which goodwill is

located

"√ Applicable" "□ Not applicable"

Item Composition and basis of the asset group or Operating segment

Consistency

portfolio to which the goodwill belongs and basis with previous

years

Goodwill was formed upon the acquisition

of equity interests and the asset group Business on

Hangzhou Forklift Sheet Metal

where the goodwill belonged at the end of forklift trucks and YesWelding Co. Ltd.the period was consistent with the asset accessories

group identified at the purchase date.Goodwill was formed upon the acquisition

Business on

Hangzhou Forklift Mast Co. of equity interests and the asset group

where the goodwill belonged at the end of forklift trucks and YesLtd.the period was consistent with the asset accessories

group identified at the purchase date.Goodwill was formed upon the acquisition

Hangzhou Hangcha Bridge Box of equity interests and the asset group Business on

Co. Ltd. where the goodwill belonged at the end of forklift trucks and Yes

the period was consistent with the asset accessories

group identified at the purchase date.Goodwill was formed upon the acquisition

Hefei Hanhe Intelligent of equity interests and the asset group Business on

Logistics Technology Co. Ltd. where the goodwill belonged at the end of forklift trucks and Yes

the period was consistent with the asset accessories

group identified at the purchase date.Goodwill was formed upon the acquisition

HC FORKLIFT AUSTRALIA of equity interests and the asset group Business on

where the goodwill belonged at the end of forklift trucks and Yes

PTY LTD.the period was consistent with the asset accessories

group identified at the purchase date.Changes in asset groups or its portfolio

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

(4). Specific method to determine recoverable amount

The recoverable amount is determined based on the fair value less costs of disposal."□ Applicable" "√ Not applicable"

The recoverable amount was determined based on the present value of expected future cash flows

"√ Applicable" "□ Not applicable"

Unit: Ten thousand yuan Currency: CNY

Key Key

parameter Basis for parameters Basis for

s for the determining for the determinin

Amount of Years the g key

Item Book Recoverabl of the

forecast stabilizatio

impairmen parameters

value e amount forecas period n period

parameters

t (growth in thet period (growth

for the

rate profit forecast rate profit stationary

margin period margin phase

etc.) discount

204 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

rate etc.)

The

Average

revenue Management Average

growth determines revenue

rate of key growth rate

Hangzhou 10% parameters of 10% Reference

Forklift Sheet average for the average to the data

forecast at the end

Metal 9509.43 28763.27 3 profit gross profit

Welding Co. margin of period based

of the

margin of forecast

Ltd. 2.24% on historical 2.32%

pre-tax data and pre-tax period

discount forecasts of discount

rate of market rate of 15%

development

15%.Average The

revenue Management Average

determines

growth revenue

rate of key growth rate Reference

10% parameters of 10%

for the to the dataHangzhou average average

Forklift Mast 15552.2 28857.60 3 profit forecast gross profit at the end

Co. Ltd. 9 margin of period based margin of of the

on historical forecast

1.25%1.18%

data and periodpre-tax pre-tax

discount forecasts of discount

rate of market rate of 15%

15% development.Average The

revenue Management Average

growth determines revenue

rate of key growth rate

10% parameters of 10% Reference

Hangzhou for the to the data

Hangcha 10497.0 average average

19438.69 3 profit forecast

at the end

Bridge Box 7 gross profitperiod based of themargin of margin of

Co. Ltd. 1.62% on historical 1.59% forecast

pre-tax data and pre-tax period

discount forecasts of discount

market

rate of rate of 15%

15% development.Average The

revenue Management Average

growth determines revenue

rate of key growth rate

Hefei Hanhe 10% parameters of 10% Reference

for the to the data

Intelligent average average at the end

Logistics 1068.38 2027.90 3 profit forecast gross profit

period based of theTechnology margin of margin of

Co. Ltd. 14.85% on historical 14.50% forecast

pre-tax data and pre-tax period

discount forecasts of discount

market

rate of rate of 15%

15% development.HC 727.26 773.80 3 Average The Average Reference

205 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

FORKLIFT revenue Management revenue to the data

AUSTRALI growth determines growth rate at the end

A PTY LTD. rate of key of 20% of the

20% parameters average forecast

average for the gross profit period

profit forecast margin of

margin of period based 3.41%

1.18% on historical pre-tax

pre-tax data and discount

discount forecasts of rate of 15%

rate of market

15% development.Total 37354.4 79861.26 / / / / /

Amount 3

Reasons for Differences Between the Above Information and the Information or External

Information Used in Previous Years' Impairment Tests

"□ Applicable" "√ Not applicable"

Reasons for the Significant Discrepancy Between the Information Used in Previous Years'

Impairment Tests and the Actual Situation in the Current Year

"□ Applicable" "√ Not applicable"

(5). Performance commitments and corresponding goodwill impairment

Performance commitments existed at the time of the formation of goodwill and this Reporting

Period or the previous reporting period falls within the performance commitment period."□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

28. Long-term prepayments

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Amount of Amortization Other decreases

Item Opening balance increase during amounts for the Closing balance

in amounts

the period period

Operating

expenses on 26390164.95 2372445.54 7525967.33 21236643.16

improvement of

fixed assets leased

Total Amount 26390164.95 2372445.54 7525967.33 21236643.16

Other notes:

None

29. Deferred income tax assets / Deferred income tax liabilities

(1). Deferred income tax assets not offset

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

206 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Deductible temporary Deferred income Deductible Deferred income

differences tax temporary tax

Assets differences Assets

Provision for impairment of 252952859.12 52269662.89 217379232.03 43144385.81

assets

Unrealized profits of

409815343.1994100034.72295228190.2369936545.60

internal transactions

Deferred income 105620404.53 15843060.68 93427574.52 14014136.18

Changes in fair value of

derivative financial 366815.63 91703.91

liabilities

Deductible losses 48615704.19 9718561.30 67068213.75 10088544.77

Lease transactions 249991117.36 61635336.49 166355768.98 42466522.93

Total Amount 1066995428.39 233566656.08 839825795.14 179741839.20

(2). Deferred income tax liabilities not offset

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Closing balance Opening balance

Item Deferred income Deferred incomeTaxable temporary Taxable temporary

differences tax differences tax

Liabilities Liabilities

Accelerated depreciation 115135894.19 17270384.12 138715544.04 20807331.60

differences

Lease transactions 248808887.44 60736372.92 173928041.98 42753114.55

Total Amount 363944781.63 78006757.04 312643586.02 63560446.15

(3). Deferred income tax assets or liabilities listed by the net value of offsets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Closing balance Opening balance

Offset Amount Balance of deferred Offset Amount Balance of deferred

Item between deferred tax assets or between deferred tax assets or

tax assets and liabilities after tax assets and liabilities after

deferred tax offsetting deferred tax offsetting

liabilities liabilities

Deferred tax assets 77216068.56 156350587.52 62913443.04 116828396.16

Deferred tax liabilities 77216068.56 790688.48 62913443.04 647003.11

(4). Details of unrecognized deferred income tax assets

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Deductible temporary differences 119832556.31 115255663.59

Deductible losses 799357965.07 744102319.92

Total Amount 919190521.38 859357983.51

(5). The deductible losses for which no deferred income tax assets have been recognized will

expire in the following years

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Years Closing amount Opening amount Remarks

207 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

202519680582.80

202621015193.2121015193.21

202723408357.0123408357.01

202829748528.5629748528.56

202941694177.6141694177.61

203069919794.9326287297.36

2031117449168.77117449168.77

2032220919948.00220919948.00

2033243899066.60243899066.60

2034

203531303730.38

Total Amount 799357965.07 744102319.92 /

Other notes:

"□ Applicable" "√ Not applicable"

30. Other non-current assets

"□ Applicable" "√ Not applicable"

31. Assets with restricted ownership or right of use

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Closing Opening

Item

Book balance Book value Types of Restricted Book balance Book value Types of Restricted

restrictions Situation restrictions Situation

Guarantee Letter of

deposits guarantee

foreign bond letter

exchange of credit

Cash and derivative bond

bank 40769564.91 40769564.91 Other deposits 29600228.05 29600228.05 Other bankers'

balances bank acceptance

acceptance bill bond

bill deposits and

performance performance

bond bond

Restricted

use due to

incomplete

Cash and bank

bank 12041120.00 12041120.00 Other account

balances information

of a newly

established

company

Fixed Restrictions

assets 55168182.83 46617155.54 Other to sale andleaseback

Intangible Mortgage of

assets 31687875.00 31159743.70 Mortgaged borrowings

Total

Amount 95937747.74 87386720.45 73329223.05 72801091.75

Other notes:

None

208 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

32. Short-term borrowings

(1). Short-term borrowings by category

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Credit borrowing 765278121.20 394507404.74

Guaranteed borrowing 44403055.56 109274759.45

Total Amount 809681176.76 503782164.19

Notes on classification of short-term borrowings:

None

(2). Overdue short-term borrowings

"□ Applicable" "√ Not applicable"

Including: Significant overdue short-term borrowings as below

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

33. Held-for-trading financial liabilities

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

34. Derivative financial liabilities

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Foreign exchange derivatives [Note] 366815.63

Total Amount 366815.63

[Note] Foreign exchange derivatives were converted from financial liabilities held for trading to

the derivative financial liabilities in accordance with the Compilation of Application Guidelines

for Business Accounting Standards 2024.Other notes:

None

35. Notes payable

(1). Notes payable

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Type Closing balance Opening balance

Commercial acceptance bill

Bank acceptance bill 1693016977.19 902166339.40

Total Amount 1693016977.19 902166339.40

209 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

The total amount of notes payable that were due and unpaid at the end of the current period was 0

Yuan. Reason for notes payable due and unpaid: Not applicable

36. Accounts payable

(1). Accounts payable

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Materials 2692273743.23 2484702913.82

Project equipment 171548294.41 146750146.17

Other 21882182.35 29735495.83

Total Amount 2885704219.99 2661188555.82

(2). Significant accounts payable aged over one year or overdue

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

37. Advances received

(1). Details on payments received in advance

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Rent 2642224.15 913546.17

Total Amount 2642224.15 913546.17

(2). Significant accounts received in advance aged over one year

"□ Applicable" "√ Not applicable"

(3). Amount of and reasons for significant changes in the book value during the Reporting

Period:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

38. Contract liabilities

(1). Contract liabilities

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Closing balance Opening balance

Payments for goods 504427817.49 455721742.21

Total Amount 504427817.49 455721742.21

(2). Important contract liabilities with aging over 1 year

"□ Applicable" "√ Not applicable"

210 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

(3). Amount of and reasons for significant changes in the book value during the Reporting

Period:

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

39. Employee benefits payable

(1). Payroll payable

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Opening balance Increase for the period Decrease for the Closing balance

period

I. Short-term employee 130841543.21 1423863535.03 1415073109.48 139631968.76

benefits

II. Post-employment

benefits - defined 14488380.71 138361782.40 135130441.33 17719721.78

contribution plans

3. Termination 16428.00 1356601.70 1373029.70

Benefits

IV. Other benefits due

within one year

Total Amount 145346351.92 1563581919.13 1551576580.51 157351690.54

(2). 1. Short-term remunerations

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency: CNY

Item Opening balance Increase for the Decrease for the Closing balance

period period

I. Salary bonus subsidy and 72430173.03 1193846155.91 1186430607.65 79845721.29

grant

II. Employee welfare 50247640.40 50247640.40

III. Social insurance 11839909.27 90141573.93 88466534.77 13514948.43

premium

Including: Medical 10714577.91 78574905.13 77393658.44 11895824.60

insurance premiums

Work injury compensation 886323.36 11167824.13 10675552.99 1378594.50

insurance premiums

Maternity insurance 239008.00 398844.67 397323.34 240529.33

premiums

IV. Housing provident fund 838433.23 73506421.49 73016572.41 1328282.31

V. Trade union fee and staff 45733027.68 16121743.30 16911754.25 44943016.73

education fee

VI. Short-term compensated

absence

VII. Short-term

profit-sharing plan

Total Amount 130841543.21 1423863535.03 1415073109.48 139631968.76

(3). Defined contribution plan

"√ Applicable" "□ Not applicable"

211 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

Unit: Yuan Currency:CNY

Item Opening balance Increase for the Decrease for the Closing balance

period period

1. Basic pension insurance 14101536.84 133614948.07 130473900.99 17242583.92

2. Unemployment insurance 386843.87 4746834.33 4656540.34 477137.86

premiums

3. Enterprise pension

contribution

Total Amount 14488380.71 138361782.40 135130441.33 17719721.78

Other notes:

"□ Applicable" "√ Not applicable"

40. Taxes and rates payable

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Business income tax 106794058.82 117854715.76

Value-added tax 33064965.87 28155867.49

Property tax 13509163.75 13942413.58

Land use tax 7570287.55 7348258.54

Individual income tax 6339949.44 5502513.73

Stamp duty 5171168.08 3488024.50

Urban maintenance and 2712329.16 1687423.38

construction tax

Education surcharge 1183392.22 803757.84

Local education surcharge 794023.14 520847.80

Disability insurance fund 637831.30 386571.09

Local water conservancy 72525.46 74966.85

development fund

Vehicle and vessel tax 3902.00

Other 542103.41 711726.77

Total Amount 178395700.20 180477087.33

Other notes:

None

41. Other payables

(1). Items

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY

Item Closing balance Opening balance

Interest payable

Dividend payable 40000.00 40000.00

Other payables 89808213.54 226381414.75

Total Amount 89848213.54 226421414.75

Other notes:

"□ Applicable" "√ Not applicable"

(2). Interest payable

By category

212 / 286The 2025 Annual Report of Hangcha Group Co. Ltd.

"□ Applicable" "√ Not applicable"

Significant overdue interest payable

"□ Applicable" "√ Not applicable"

Other notes:

"□ Applicable" "√ Not applicable"

(3). Dividend payable

By category

"√ Applicable" "□ Not applicable"

Unit: Yuan Currency:CNY